First, we take a “decompositional” approach to analyzing the brand, measuring and defining each of the key brand equity dimensions, from awareness upward to loyalty. This is the Brand Pyramid.
Loyalty - How loyal are users to the brand? To what extent would they recommend the brand, reported as Net promoter Score (NPS)?
Usage - Purchase rates/shares/usage as defined in the past “X” period of time.
Choice - Brand Preference – which brand would consumers choose if they were deciding today? Analysis identifies drivers of brand choice.
Consideration - Consumers must be familiar enough with the brand to include it in their “consideration set” the next time they shop/purchase. Analysis identifies drivers of brand consideration.
Awareness - Assesses levels of Brand Awareness as the basis for brand engagement.
In addition to assessing the brand structure, we’ll also use brand imagery to identify points of brand distinctiveness and show how your brand is perceived relative to your key competitors. Perceptions, good or bad, are created in many ways - - by direct experience, by word of mouth, through advertising or other communications.
We’ll measure the net effect of this, and overall conclusions about your brand position can then be drawn, including any actions to improve or enhance it.
The closer your brand is to the measured imagery elements “in perceptual space”, the more it is associated with them, and conversely, the further away, the less it is related. This is your position, your image in the market.
For example, let’s say we evaluate “Gizmo Tech” relative to its main competitors, “eWidgets” and “Thingamajigs R Us”.
In this hypothetical space…
Gizmo Tech has a relatively solid and “safe” position, perceived most for its dependability, quality construction and good service. Their gizmo is easy to use and offers some fair entertainment value, but it is not perceived as being unique or innovative or technically superior
eWidgets owns this innovation space, but their product is also perceived as complicated to use and has confusing instructions - - they would be best served to simplify things for their customers, while still keeping their leading edge.
Thingamajigs has big problems, being mainly associated with poor quality and poor customer service, and while fairly priced, does not offer entertainment value.
So given this positioning, Gizmo Tech may decide that it needs to sharpen its tech edge if it wants to become the innovation leader, which is currently the space occupied by eWidgets. Internal development and communication strategies would follow.