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: 8/2005 

Next Issue: Week 43/2005

 

 

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)

Archiv

Zur deutschen Fassung wechseln

 

 

Marketing and the Spin-Off of Brand Equity
Christina Schmid-Preissler, SchmidPreissler International Strategy Consultants

Whether it is Boss or Porsche, Aspirin or Persil – the turnover of many brand marketers is growing year after year, on average 3% in 2004*. In comparison to other suppliers often even disproportionately well. Yes, in general it is brands which are the most important assets of businesses, today.

Without doubt, the determination of brand equity for business purposes in case of brand transfer or licensing is given highest priority. However, we have observed that the monetary brand equity is beginning to play a role if long-term oriented people responsible for brands hold discussions with financial and tax experts in companies in regards to the future of brand leadership. A topic which is slowly but surely moving into the focus of those responsible for brands is the spin-off of brand equity into independent business units whose core purpose is the development, preservation and support of brand equity.

Currently, the spin-off of brands is a rarely used practice. But other than machinery, cars and copiers, the brand is still often seen as an abstract commodity, generally emotionally charged and last but not least seen critically, because other than real estate, they are part of the core business.

In times of more intense competition, of benchmarking and the tendency to orient oneself on the competition, marketing is coming under pressure. Often whole departments of a company are engaged in keeping an eye on the competition. Field staff report weekly what others are better at: They offer better conditions, a bigger advertising budget and they sell at lower prices. And instead of developing a brand image, special promotions are being introduced in advertising which have to be implemented on the retail level.

Financial pressure, shifting of marketing channels and missing customer-oriented brand development which is based on data, deprives marketing more and more of funds and influence. Marketing agencies today usually work with a small number of employees who are mostly responsible for measures to secure consistent branding, the coordination of sub-brands for different product lines as well as the efficiency and uniformity when purchasing media time and public relations. And often it happens that due to a switch to a customer relations management budget, advertising campaigns targeted at consumers are withdrawn and diverted to the distribution and the courtship of retail. Marketing is suffering and consequently brand expertise and brand profile are lost.

But how could brand marketing reclaim the influence it deserves?

Experience shows that brands, which are lead in legally independent companies, usually have more living space and a better performance, because they allow for a better gauging of productivity and marketing activities as well as a better control of success. The marketing operation is thus no longer superimposed by sales, service and retail support, but the expansion and preservation of brand equity and the strategic relevance of branding are becoming the most important task. While sales success is being measured in shape of daily, weekly and quarterly changes in sales figures, gauging marketing successes requires a long-term perspective. Concepts are in demand which determine how the marketing effort affects aspects of the monetary value of the brand, the positioning, the profile and the image of the brand and in which proportion it contributes to changes in earnings performance and sales trends, in order to secure the future of brands in the long run. In brand associations whose business purpose is the development, preservation and support of brand equity, this is usually implemented more easily than in business hierarchies where marketing functions such as global brand development, current brand management, distribution concepts and pricing are residing in different areas of the corporate structure.

In the beginning stands the acknowledgement in regards to the value of the brand. If you know what a brand is worth, the equity development can be tracked and the return-on-investment can be established.

Brand utilization companies are a good value especially when companies are bought or sold. If a family sells a brand company of the same name, it would be wise to verify if the company should be sold without the name and then the name and the brands are offered to the buyer long-term via a brand utilization company. Thus the company can continue operations with its name and same name brands while the name giver retains a value which often has emerged into a concept in the course of generations.

With the SchmidPreissler Brand Equity+Performance© Program we have developed a program which can calculate the monetary brand equity in terms of a working capital and which aims at achieving 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.

*(Source: Markenverband, Handelsblatt, June 29th, 2005)

 

 

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

 

Impressum