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: 06/200

Next Issue: Week 27/2006

 

 

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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Maximization of Monetary Brand Equity – A reasonable Corporate Objective?
Christina Schmid-Preissler, SchmidPreissler International Strategy Consultants

In general, if you question a business in regards to its objectives, you will get to hear increase in sales and profits for the current year. And depending on this growth lying above or below industry development and the growth of the past, the year is seen as successful or somewhat less successful.

However, what is the value and benefit of such objectives? What is the significance of such business figures? Does yearly growth secure the long-term existence of a company? Questions like these are surely going to occupy entrepreneurs, business managers, banker, accountants and auditors and last but not least executive consultants more often in the future.

A German daily newspaper wrote recently, that a big American private investment firm carried out an investigation regarding future prospects of businesses and it came to the conclusion that for companies whose assets were mostly material commodities such as real estate, factories and machinery the likelihood of achieving long-term, lasting above average return-on-investment of the capital in use was lower. Such tangible commodities basically invite competitors to reproduction and this can lead to excess capacity, price competition and decreasing profits.

However, it is a lot tougher to newly create immaterial commodities such as brands or to be copied by competitors. As a consequence, this private equity firm recommends to investors to identify companies with strong brands and to invest in them.

With such a recommendation, this private equity firm in principle confirms our own experiences, that companies with strong brands have the better position on the market.

Well managed and maintained brands earn the money they cost and they are cost-effective and pay back the investments which are regularly necessary for their upkeep. The often mentioned argument that the consumer is unwilling to pay prices containing costs and investments for brands is disproved by the market. For most all industries the opposite is the case. It is however true, that the immaterial value depicted by brands has to be perceptible.

Consequently, this means: When it is about adopting the yearly objectives, the increase in brand equity should be on the priority list above sales planning and annual growth planning.

In our opinion, brands go all the way from processing the raw material to the presentation in the stores, they are in line with lasting profitability and thus constitute a monetary value that consequently has to show a return-on-investment. For that purpose, a systematic, reliable and detailed analysis of the brands and their monetary value is indispensable. Not just once, but in regular intervals.

Once one knows the value of a brand, the performance can be tracked and the return-on-investment can be determined.

Today, we often observe that brands lose their own identity. They become faceless and are thus without chances to win over their own clientele from the mass of consumers and to get them to be committed. Once a brand has become confusable, it’s also become interchangeable. And once it is interchangeable, only the price remains as distinguishing mark.

The knowledge of the value of the brand reduces the risk, the danger to do damage to the brand and thus the brand equity. To reduce brand equity or to jeopardize it.

The SchmidPreissler Brand Equity+Performance© model is a sophisticated method to structure data available in businesses today and to deduce reliable data regarding the monetary value of the brand and to be able to track changes in regular intervals. Individually - for every instance.

 

 

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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