Brand Value Creator - Ipsos

Brand Value CreatorAutomotive Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary informationand may not be disclosed or reproduced without the prior written consent of Ipsos.

Brand Value Creator: A model that reflects howconsumers make decisionsAttitudinal EquityMarket Effects /The ability to create strongbrand desire within yourtarget audienceEffective Equity How well market effects aremanaged to enable this desireto be fulfilled at the point ofpurchaseThe outcome of desire and marketfactorsWhat’s the point of making a number go up if nothing changes inthe real world?BVC is the strongest, most validated measure toreflect business outcomes

Leverage the ability to understand how peoplefeel about your brand and their experience inthe market A successful brand creates strong brand desire and manages market forceseffectively to convert this desire into a relationship Attitudinal Equity is a purely attitudinal measure of equity that represents thelevel of desire to be in a relationship with a brand. In Automotive it tells you theprobability of purchase for each respondentAttitudinal EquityMercedes E Class17BMW 5 Series10Audi A69Mercedes C Class9Jaguar XF9BMW 3 SeriesAudi A486Volvo V705Lexus GS5Attitudinal Equity is a measure that is:-Linked to real world business outcomes- At respondent level – better profiling-Linked to purchase probability of a car3

You can’t always get the marque or model caryou want – sometimes market factors get in theway Market effects are physical barriers to purchase, such as affordability, dealernetwork, model range, etc. (bespoke to Automotive) Good management of market effects will steal share from competitors even ifyour brand’s desire might be lower. We can tell to which competitors yourbrands are most at risk and why.Attitudinal EquityMercedes E Class17BMW 5 Series9Mercedes C Class9Jaguar XF9BMW 3 Series3-1-1565Lexus GS5Enough dealer coverage 1.1Expense of maintaining other vehicles 1.0Quicker depreciation of other vehicles 0.918Volvo V70We can also identify the detail ofwhich market factors are at play-110Audi A6Audi A4Market Effects1-2-3Depreciates quickly – 1.4Expense to maintain – 0.3Lack of dealerships –1.34

Taking into account attitudinal desire and themarket effects give you a better understandingof what’s driving your brandThe outcome of desire and market effects within price and body styleowners/considerers – valid to what people actually buyAttitudinal EquityBrand 117Brand 29Brand 49Brand 59Brand 6168-11Brand 9510-185651338Brand 8Effective Equity-110Brand 3Brand 7Market Effects1317-2-3425

Why is BVC a better approach? Measures that relate to business outcomes Competitive set self defined by the respondent Respondent level modelling is crucial Rank matters – we look at the rating relative to thecompetitors in the market Our behaviours may differ from our desire due to marketeffectsIf you can successfully implement strategies that improve these numbers, realreturns will followThey tell us what Marques or models interest them, not defined by segmentBetter driver analysis, accurate profiling, better story tellingincrease desire or manage Market Effects Ipsos Laboratories66

BVC experience inAutomotive Ipsos Laboratories77

Our experience in automotiveBVC has been used over 800 timesin the Automotive sectorR2 0.94 between Effective Equityand Market Share across 125 datapoints in 9 countries** Countries include Australia, China, Germany, India, Romania, South Africa, Thailand, UK, USA8

BVC in Action Getting onto the shortlist Ipsos Laboratories99

Focus evaluation on key marketing issues.Are you getting on shortlists? Then are you firstin the re, but don’tconsiderLow AEMid AEHigh AEThe higher your ranking in the mind of thebuyer, the higher the probability that yourmodel or marque gets bought10

Your brand needs to get on a buyers ‘shortlist’to stand a chance BVC questions are only asked for brands that respondents include in their‘Consideration Set’o Reduce questionnaire length and timeo Collect information only relevant to the respondent Average number of marques or models owned: 1.33 Average number of marques or models considered: 3.41 Average number of marques or models in the Consideration Set: 4.74Before you can measure how much someonedesires your models, you need to get includedin their consideration set But it’s not easy!Current vehicle plus3 - 4 others aretypically mentioned11

BVC in Action Understanding Market Effects Ipsos Laboratories121

So what is a true Market Effect Identify the in-market factors that stop peoplefrom buying your brand when they want to. Your brand could also be gaining share whenmarket factors stop people from buyingcompetitor brands Identify and quantify which market factors arehelping your brand and which are hurting yourbrand Build strategies that help your brand increasedesire in the minds of buyers AND manage inmarket factors to increase the likelihood thatyour brand gets bought13

The more they desire your brand, the morewilling they are to overcome potential MarketEffectsLevel of AEAverage Gain dueto MEAverage Loss dueto MENet Impact onMarket Share0- 10 1.22%-1.34%-0.12%10 - 20 3.91%-3.53%1.11%20 - 40 7.39%-5.70%1.69% 40 9.88%-6.12%3.76%Small brands tend to suffer fromMarket Effects while biggerbrands gain. Driving your brandsdesire leads to increased MarketShare gains.Bigger brands typically gain share because:-They have more ‘committed’ users- Increased marketing budget-Improved dealer/service centre network- Larger model rangeMarket Effects have a real and measurable impact on the MarketShare a brand eventually gets.14

What are the biggest Market Effects inAutomotivePrice:- The vehicle is too expensive- The vehicle is expensive to maintain- The part are expensive- The lease payment is too highProduct Range- Does not have the engine size I want- Doesn’t have an SUV model- Doesn’t come in a hatchback- Don’t have the colour I’m looking forPrice44%Accessibility17%Product Range11%Promotion8%Purchaser3%Not recommended2%Contracts2%Lack of information1%Accessibility- Doesn’t have extensive dealer network- Long waiting list- Parts are hard to come by- No service centre near myhome/officePurchaser- My spouse prefers another car- I drive a company car and this makeisn’t on the supplier list*For Market Effects experienced in the Automotive sector, Price accounts for 44%, Accessibility for 17% and ProductRange for 11%Price, Accessibility and Product Range Market Effects make up thetop three in most product categories.15

Small butpowerfulmeasuresEconomy of MeasurementWithout Loss of Validity

APPENDIX Ipsos Laboratories171

BVC – Input QuestionsBVC requires a short list of questions, that get asked of the consideration set ofeach respondent. Here are the input questions per measure: Attitudinal Equity (AE): Meets Needs (1-10 scale), AND Personal Meaning(reported on 1-10 scale). (2 inputs) Market Effects (ME): ME question listing all possible ME in the category(12-15 statements usually, recommendations for standard categories existon the intranet). Effective Equity (EE): Is calculated by adding up AE and ME, so no extraquestions are required. In addition to the above, the Brand Usage and Brand considerationquestions are also asked at the beginning, to define the brandconsideration set per respondent (2 questions).18

Market Effects Statements for Automotive Below are some of the common Market Effects in AutomotiveAccessibilityIt has a long waiting listDoes not have an extensive dealer networkParts are difficult to come byDoes not have service centres located conveniently close to meThere is little information available about modelsPriceIt is too expensive/The model is not within my budgetThe parts are expensiveVehicle is expensive to maintainThe lease payment is too highProduct rangeRange does not contain a model that appeals to mePurchaserMy spouse/partner doesn’t like themI drive a company car and I don’t think this car is available to meRegulationComplicated application procedureNeed too many documents for application19

BVC Case Study Ipsos Laboratories202

Automotive study in the USAThe challengeA luxury car brand needed to get a better understanding ofwhat motivated car choice amongst drivers in the US, andhow the brand and its models were perceived in order toensure the success of a series of new model launches.What we didWe developed a quantitative market study using BVC, with arevolutionary approach to understanding brand and modelperceptions across the market, rather than in traditionalmarket segment silosWhat wediscoveredWe identified that while the client brand / models had several imagestrengths, they were weak in some areas that are crucial to people’schoice of car. We then used network analysis to identify how theclient could improve these perceptions with credible messagesbuilding on the brand’s existing and well-established strengthsWhat the clientdid as a result ofthe researchThe client was able to fine-tune its communications for thesubsequent new model launches to emphasise the aspects thatcombatted the existing imagery weaknesses in the context of acommunication that was still recognisably theirs

3 Leverage the ability to understand how people feel about your brand and their experience in the market A successful brand creates strong brand desire and manages market forces effectively to convert this desire into a relationship Attitudinal Equity is a purely attitudinal measure of equity that represents the level of desire to be in a relationship with a brand.