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: 7/2005 

Next Issue: Week 39/2005

 

 

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

 

 

 

 

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Brand equity, what does that mean?
Christina Schmid-Preissler, SchmidPreissler Strategy Consultants

After brand equity ratings concentrating primarily on brands for consumer goods and investment industries over the past few years, we read recently in a study that for the first time the brand equity for 20 top models had been established. According to this study, the Czech native Karolina Kurkova is the most valuable top model in the world with an estimated value of Euro 42.6 million. German model Julia Stegner (36.5 million Euro) is followed by Heidi Klum (28.3 million Euro) on the ranking list of model brand equity on position three. Fourth is Russian model Natalia Vodianova (27.4 million Euro) ahead of French native Laetitia Casta (22.3 million Euro).

This example shows that even well-known experts sometimes do not clearly separate the terms market equity and brand equity or they even use it synonymously. However, for practical and daily work it is absolutely necessary to distinguish the different layers of impact of these terms and to know the relationship in order to correctly utilize them.

We speak of market equity in a business management and legal sense if we refer to the actual value of assets, whereas the value is assumed from the average of the customary business volume at the date of determination achieved, or achievable prices. This is why the market equity is often called the fair market value.

It is rather different when it comes to brand equity¹. Its determination is not simply a mechanical execution of a standardized procedure, but rather complex and it requires appreciation for the individual essence of the brand.

Brands do, in the truest sense of the word, ‘start a new trend’. They do not develop over night and short-term successes, either on the market or the catwalk, do not turn it into a brand in the twinkling of an eye. With their aura and mysticism brands offer the benefit of added value to the consumer which does not end with a rational consumption value but touches on important individual needs of people. Brands do not emerge over night, they are created and they then grow and develop. Sometimes this is a continuous process, sometimes it happens in leaps, but it is always a process that takes many years; sometimes even decades. Brands cannot be manipulated but they want to be shaped, nurtured, supported, protected and they want to be led intelligently and wisely.

The value of a brand is shaped decisively through its immaterial values which begin with the 7-elements: origin, history, profile, positioning, image, awareness and protection.

A brand is not a brand without immaterial values and thus there is no brand equity without immaterial value. But immaterial values alone are not enough either. And, even if money in itself does not ‘make’ a brand, it is without doubt that high immaterial values in connection with investments and expenditures lend strength and thus value to a brand through vivid care of origin and history, a clear profile opposite to the competition, support of the positioning of the image, the presentation of the brand, the process of communication between brand and consumer, the promotion of awareness and protection, positioning and customer loyalty.

Successful brands, in other words brands with a high material value, are not a by-product of entrepreneurial action. They are rather the result of consequent and continuous brand leadership whose core is the cumulation of the brand equity.

Prerequisite for this is that the funds used for brand support and promotion are controlled diligently and identified separately in the calculation of products. It is not enough to generally speak of a marketing budget without identifying what exactly they were used for. Marketing funds should not be seen as expenditures but as investments which must show a return-on-investment. Of course, all of this requires strict discipline and a comprehensive knowledge of the coherences between brand performance and marketing performance. All of this starts with the determination of brand and product profiles and their positioning on the market. And it requires a deep understanding of what constitutes a brand because only then it can be determined what a brand can accomplish.

Conclusion: The significance of brand equity is much more extensive than that of market equity and its increase, progression and promotion should not be a case of trial and error. The stakes on the market are too high and chances for success too vague.

With the SchmidPreissler Brand Equity+Performance© program we developed a program where the brand equity is calculated in terms of a ‘working’ capital’ which aims for return-on-investment of the brand equity.

If you do have questions in regards to this program, please do not hesitate to call Tel. +49/8022/91 78-22 Dipl. Vw. Christina Schmid-Preissler.

¹Brand equity according to SchmidPreissler = monetary value, comprised of material and immaterial value of a brand.

 

 

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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