Demand Analysis

Sypnosis  Market Segmentation  Financial Analysis

Competitive Benchmarking  Brand Valuation

Role of Brand measures the portion of the purchase decision that is attributable to the brand, relative to other factors (for example, purchase drivers like price, convenience, or product features). The Role of Brand Index (‘RBI’) quantifies this as a percentage. Customers rely more on brands to guide their choice when competing products or services cannot be easily compared or contrasted, and trust is deferred to the brand (e.g. computer chips), or where their needs are emotional, such as making a statement about their personality (e.g. luxury brands such as Tiffany & Co).

RBI determinations can be derived in three ways:

  1. Primary research. Specifically designed research, such as choice modeling (although other techniques are available), where RBI isstatistically derived.
  2. Existing research plus Interbrand opinion. Existing research addressing the relative importance of purchase drivers is combined with Interbrand’s opinion on the extent to which the brand influences perception of how the product or service will perform against each driver.
  3. Qualitative assessment. Based on management discussions and past experience. This is used where no market research is available.

For our RBI derivations, we mainly use the first way, Primary Research, through our findings from Assignment 2(a) and (b).

The role of the brand plays a lower significance for Gift-Givers (50%), as Gift-Givers would first consider the tastes and preferences of their Gift-Receivers before considering which brands to purchase from. For example, a husband would think about his wife’s brand preferences and considerations before he decides what anniversary gift to buy for her. His own perceptions and preferences are secondary, since his wife’s happiness comes first. Hence, the role of the brand does not matter much to them. Their purchase decisions are influenced by what the gift receivers think and feel about the brand.

Sypnosis  Market Segmentation  Financial Analysis

Competitive Benchmarking  Brand Valuation


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