Brands are like people, they EVOLVE over time, as consumers change with time, brands need to cope with changing consumers
Modern system of brand management was born in P&G in 1931 through an internal memo from Neil McElroy that changed how manufacturers sell products throughout the world.
Brands started as a description of what products provide consumers functionally and emotionally, and what make it different from other brands.
Neil McElroy’s formula for P&G’s success was: “Find out what the consumers want and give it to them.”
To manage brands, Brand Managers needed to know how effective they are in communicating their ‘brand’ to consumers.
Brand management relied primarily on monitoring “Core” brand attributes’ ‘scores’ versus competition to ensure that implementation of market communication leads to superiority of those “core” attributes.
BUT, classical brand monitoring systems did not really link brand to its market performance, or market Share
In 90s and the new millennium, it became obvious that consumers mindset are rapidly changing, due to many various reasons that characterized the start of the new 21st century
Brands need to evolve with consumers, otherwise they will fade away
How Brand Monitoring Evolved?
Actually, most brand monitoring today are the same as the classical system, just monitoring scores. They actually suffered from two key drawbacks
- Change in consumers’ choice criteria is not part of brand tracking
- Direct Link to brand performance & share is certainly missing
Brand managers with classical brand monitoring systems were trapped
How Market Research Evolved?
Market research evolved to different routes to address the pitfalls of the “classical” system
Main directions for contemporary system were:
Monitor change in consumers’ choice criteria by identifying how important each attribute is, through;
A– Direct questions about importance of each attribute
This method suffered from the “claim syndrome” i.e.: consumers claim rational and looking good answers
B– Derived importance, through link of purchase intends (PI) to consumers choice attributes
Though this is better & relevant approach, but led to proximity relation, not direct relation where brand is LINKED to market performance & share
A ‘Smart Approach’ is needed, where consumer feedback reflects behavior, not claims
To enable the link with market share, we need a reliable measurement method that can directly gauge brand performance and link it to brand evaluation
The Smart Measurement
Virtual shopping is an emerging measurement concept that demonstrated reliability of measuring consumers’ behavior and ‘brand value’.
Utilizing this measurement tool, and LINK it to the consumers brand evaluation led to a very powerful brand tracking system that actually LINK the brand, which we call it ‘Brand Power’ to actual market shares
This breakthrough in brand monitoring system brought a new Brand Management Tool to the brand management practice
The Smart LINK to the market share
Through numerous research across more than 35 emerging markets and 20+ consumer products categories, validation in EACH project showed a very strong ‘correlation’ between brand power and market shares
What does this mean to Brand Managers?
The LINK of brand power measurement to brand market performance change the way brand managers make decisions
- Can predict impact on brand performance as a result of branding decisions
- Provide ability to diagnose early than competitors how consumers’ are changing their choice criteria
- Provide the strategic brand management tools to adopt the brand to local markets and changing consumers needs