SchmidPreissler Strategy Consultants at The Lion's House
D-83703 Gmund am Tegernsee. Represented in Berlin, Istanbul, Mumbai, New York, Shanghai and Tokyo
www.schmidpreissler.de
www.briefletter.de

 

Our philosophy: Successful corporate strategies are market strategies and market strategies are always brand strategies.

 

SchmidPreissler is the avant-garde among strategy consultants. We serve business leaders worldwide.

 

With this site we present our brand equity and performance program in the scope of the
subject-matter 'turn of an era and paradigm shift in brand marketing' as a key to safeguarding
brand marketing investments and expenditures. This program is a new norm.
We regard this program to be a milestone in brand marketing already today.

 

 

 
 

SchmidPreissler Brand Equity+Performance©  Programm

 
 

Issue: 5/2005 

Next Issue: Week 31/2005

 

 

Excerpt of further issues topics: Brand Equity and Brand Strategy, Brand Equity and Brand Diffusion, Brand Equity and Company Success, Brand Equity and Sales and Acquisition of Brands or Companies, Brand Equity and Marketing Investment

 

 

 

 

More about the Program (english | deutsch)

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Brand Equity and Brand Leadership
Christina Schmid-Preissler, SchmidPreissler Strategy Consultants

No doubt, brand equity is becoming more and more a topic among those responsible for brands. Hardly a day goes by where we do not get to read about the agreement in regards to brands being very important for the success of a business and that they are going to become even more important in the future. However, despite the acknowledged large success brands achieve for businesses, they are often still viewed as a simple psychological phenomenon comprised of a series of factors which are more or less defined. Often, they also are attributed to a myth which could be dominated and interpreted accordingly. The consequence being that when it comes to the monetary value of brands, generally, there are more estimates and appraisals than comprehensible facts and figures.

In the past, the knowledge of the monetary brand equity was, in general, determined in the case of sale or acquisition. We suggest giving priority to the monetary brand equity within brand leadership. Why?

Markets today are characterized through the implemented change from the sellers market to the highly competitive buyers market. And each business is confronted with changed economic parameters of competition: Stagnating and saturated markets, growing world-economical integration and international competition within the Single European Market, critical buyers and users, hardly distinguishable products. Technological progress is taking place faster and faster, the cycles of product life are growing continuously shorter and the lead in innovation is often only short lived. To name only a few things, fast changes and an innovative vigour are characteristics of our time, which challenge companies to rethink their previous marketing concepts. On the basis of these developments businesses have to rethink their previous concepts of brand leadership and they have to attach significance to the monetary brand equity for their success in future competition.

To generate enough knowledge about ones brand is an essential basis for the successful development of established brands: To recognize deficiencies, develop new potentials, help achieve new successes for the brand, all this can only happen if the brand manager and the company management have enough information at their disposal which is the basis for expedient and efficient brand decisions.

Only the knowledge of the monetary brand equity is going to lead to making successes in brand leadership visible, measurable and interpretable. If the monetary brand equity has not been established it will be up to all those involved as to how they evaluate the results of brand leadership and which consequences they draw. Only the knowledge of brand equity reveals which contribution the brand is making towards revenue. While the contribution of the brand is often seen as achieving a higher profit margin than without a brand, successful brand management nowadays and in the future requires a more fundamental grasp. Strictly speaking, brands are systems of value creation (whereas true brands possess a certain myth through the 7-elements-definition1 ), which go from processing of raw materials all the way to the presentation at the store and are geared towards lasting profitability. Therefore it does not suffice to ‘simply’ concede to a brand that earnings are higher for ones products with brand, but rather that brands are in fact a corporate asset in its own right which represent a monetary value just like other corporate assets, which consistently have to generate return-on-investment. A systematic, reliable and thorough analysis of brands and their monetary value is indispensable; and not just once but in regular intervals.

It is not always easy to make a valid statement in regards to the contribution brands make to the business results, but there are ways to determine, what brands could achieve and what they are worth. However, it is a prerequisite that those funds used for the brand support and brand promotion underlie strict result supervision and are accounted for in the calculation of products. It does not suffice to quite generally speak of X percent being spent on marketing. Marketing funds should not be seen as expenditures, but as investments which conform with the value of the item, just as it does with other assets. Then and only then can it be ensured that marketing funds benefit brand products and do not flow into the structure of conditions; that they will be solely and directly applied for the brand and not in accordance with the financial situation or discretion.

Successful brand leadership has to be set up in the future so that it is possible to determine the return-on-investment and to allocate it to the brands. Of course, all of this requires a lot of discipline and comprehensive knowledge of the correlation between brand performance and marketing performance. And it requires a grasp of what defines a brand because only thus can be determined, what the brand can achieve.

In the beginning there is always the knowledge in regards to the value of the brand. If it is known what a brand is worth, the performance can be tracked and the return-on-investment established. Just as it is the case with stocks. We can observe regularly today that brands are losing their character profile; without character, without a specific ‘face’ and thus without a chance to win over and keep its own clientele from the mass of consumers. And once a brand has become mistakable it becomes exchangeable. And once it is exchangeable, the only criterion of distinction that remains is the price. The knowledge in regards to the brand reduces the risk of diluting the character profile of the brand, because it reduces and minimizes the tendency to orient oneself on what the market and the (alleged) competition are doing.

The SchmidPreissler Brand Equity+Performance© model is a sophisticated method of structuring data which is already available in businesses today but is not always seen in connection with the value of the brand (i.e. number of customers, share of voice, price behavior, and many more) and deduct reliable data in regards to the monetary brand value; individually, for each case.

¹A name or a word are a brand if it possesses the elements origin, history, profile, positioning, image, awareness and protection.

 

 

Corporate Strategies

 

Market Strategies

 

Brand Strategies

 

Brand Development

 

Brand Diffusion

 

Brand Leadership

 

Brand Equity + Performance

 

Brand Positioning

 

Brand Protection

 

Brand Rating

 

Brand Rules

 

Brand Net-Added Value

 

Brand Driven Selective Distribution

 

The Waisted Rectangle©- The new picture of the consumer goods markets

 

Global Branding

 

Knowledge Society as Target Group

 

 

Editor: Dipl. Vw. Christina Schmid-Preissler - Assistant Editor: Regina Seago

Copyright © 2005 SchmidPreissler Strategy Consultants. All rights reserved.

© 2005 SchmidPreissler

 

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