Chapter 21
Brand Contribution and Review Analysis
Measurement Need
To help maximize brand value, marketers need to determine each brand’s tangible and intangible contributions to the company’s market capitalization. As a consequence, investment decisions, resource allocation, repositioning, and even divestments can be more easily determined.
Solution i
The following tool provides management with a snapshot review of financial and nonfinancial criteria of each brand’s contribution.
Financial (annual)
| Revenues (attributed to the brand) | $ _____________________ |
| Subtract Brand-Specific Marketing Costs | $ _____________________ |
| Gross Brand Contribution | $ _____________________ |
| -------------------------------------------------------------------------------------------------------------------- | |
| Brand contribution as % of firm’s total revenues | _____________________ % |
| Brand contribution as % of firm’s total profits | _____________________ % |
| Brand contribution as % of firm’s total customers | _____________________ % |
| Brand market share | _____________________ % |
| -------------------------------------------------------------------------------------------------------------------- | |
| Brand value increase/decrease | $_________& % _________ |
| -------------------------------------------------------------------------------------------------------------------- | |
Impact
Beyond determining resource allocation, the Brand Contribution and Review Analysis can serve as a brand dashboard, useful in strategic planning, including relationships among and between brands in a multibrand company. Management can also gain a stronger sense of which brands are capturing customer attention and if that implies changing trends and/or investment opportunities. Positive responses should be explored further for opportunities to exploit. Negative responses should lead to additional investigation to determine severity.
Data for the Brand Contribution and Review Analysis would be captured from internal financial reports, customer surveys and customer relationship management profiles, sales performance reports, and research about market trends.
iJohn A. Davis, Competitive Success—How Branding Adds Value (John Wiley & Sons, 2010), 83–86.