Brandz Model – Measuring Brand Equity
Developed by: Millward Brown and WPP
Marketing research consultants Millward Brown and WPP have developed the BRANDZ model of brand strength, at the heart of which is the Brand Dynamics pyramid. According to this model, brand building involves a sequential series of steps, where each step is contingent upon successfully accomplishing the previous step. The objectives at each step, in ascending order, are as follows:
- Presence. Do I know about it? Active familiarity based on past trial, saliency or knowledge of brand promise
- Relevance. Does it offer me something? Relevant to consumer’s needs, in the right price range or in consideration set
- Performance. Can it deliver? Felt to deliver acceptable product performance and is on the consumer’s short-list
- Advantage. Does it offer something better than others? Felt to have an emotional or rational advantage over other brands in the category
- Bonding. Nothing else beats it. Rational and emotional attachments to the brand to the exclusion of most other brands
Research has shown that bonded consumers, those at the top level of the pyramid, build stronger relationships with the brand and spend more of their category expenditures on the brand than those at lower levels of the pyramid. More consumers, however, will be found at the lower levels. The challenge for marketers is to develop activities and programs that help consumers move up the pyramid.
Advantages:
- BrandZ provides a proven diagnostic and predictive tool that evaluates the strength of brands and can relate it to future changes in market share.
- The Brand Dynamics Pyramid quantifies the extent to which a brand has converted consumers into a pool of bonded, or loyal and committed, consumers (helping companies identify how many loyal customers they have)
Disadvantages:
- The model is based on customer-based brands and not so much focus on business- business (B2B)
