september 2005rashi glazer and teck ho1 brand equity assessment study september 2 nd 2005
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September 2005 Rashi Glazer and Teck Ho 1
Brand Equity Assessment Study
September 2nd 2005
September 2005 Rashi Glazer and Teck Ho 2
Goals of Brand Equity Study
The value of an “extra” unit of brand equity – e.g., if we move from “x” to “y” on a brand equity “scale,” how much is this “worth” (compared to other attributes)?
The investment required or cost to achieve an extra unit of brand equity – this is the brand equity “response function”.
September 2005 Rashi Glazer and Teck Ho 3
Project Scope
Measure Autodesk’s brand equity in three product categories (Revit, Inventor, and Civil 3D)
Determine the appropriateness of an umbrella branding strategy (e.g., Autodesk Civil 3D versus Civil 3D)
Assess the potential ROI of advertising campaign in brand equity enhancement
Understand how customers choose and make tradeoffs among product features in purchasing decision
Demonstrate the “proof of concept” of the Conjoint methodology
September 2005 Rashi Glazer and Teck Ho 4
Conjoint Methodology
A product or service is simply a bundle of relevant features
Relevant features include brand, price, functionality, compatibility, ease of use, technical support (determined by focus groups)
The Conjoint methodology allows us to quantify the importance of each feature (and its levels) in customers’ purchase decision
It is the most widely used methodology in marketing research in figuring out brand equity and customer utility function
September 2005 Rashi Glazer and Teck Ho 5
Product Features and Levels
Brand Autodesk Competitor 1 Competitor 2Autodesk Revit ArchiCAD Bentley Microstation
Price Low Medium High$3,695 $4,195 $4,695
Functionality High Medium LowBuilding Design flavored
drafting systemObject oriented CAD
systemParametric Building Information Modeler
Compatability High Medium Low
Seamless translation of data between different
software; looks and feels the same
Requires a few steps and keyboard commands to
translate between different software
Difficult to export and/or import to and from other
software without extensive commands
Ease of Use High Medium LowExtremely intuitive: easy to figure out commands
without the use of a manual or technical
support
Can figure out commands with trial and
error and moderate technical support or the
use of a manual
Need to rely extensively on a manual and
technical support to figure out commands
Technical Support High Medium LowImmediate 24/7 “live
person” support, including site visits if required; less than 1
minute telephone wait-time
Menu-driven automated technical support
supplemented by live-person telephone support (within 1 hour) if required
Menu-driven automated support; if required, live-person call-back within
24 hours
September 2005 Rashi Glazer and Teck Ho 6
Approach
Qualitative phase: Six focus groups 3 Products – Revit, Inventor, Civil 3D
Customers and Prospects
Relevant product features: Brand, price, functionality, compatibility, ease of use, technical support
Quantitative phase Involving 557 customers and prospects Web-based Survey asking participants to indicate relative liking for product
profiles
Statistical models to estimate relative importance of features
September 2005 Rashi Glazer and Teck Ho 7
Experimental Design
For each product category, we have 3 treatment conditions:Umbrella brand + advertisement (e.g., Autodesk Civil 3D
+ Print Ad.)
Umbrella brand (e.g., Autodesk Civil 3D)
Product brand (Civil 3D)
The print ad allows us to estimate the potential ROI of advertising in brand equity enhancement
September 2005 Rashi Glazer and Teck Ho 8
Print Ad Example: Civil 3D
September 2005 Rashi Glazer and Teck Ho 9
Conjoint Dial
1
2
3
4
5
6
7
Bentley MicroStation (Base)
AutodeskRevit
Base product: For example, in Revit category, we choose the Base product to be Bentley Microstation, priced at $4,695, has low compatibility, low ease of use, low usability, and low technical support. The needle is at 2.24.
Incremental feature: For example, Brand moves from Bentley Microstation to Autodesk Revit. The needle stops at 2.87 (an increment of 0.63)
September 2005 Rashi Glazer and Teck Ho 10
Lesson 1: Autodesk has a superior brand power
2
4
6
2
4
6
Bentley MicroStation (Base)
Bentley InRoads(Base)
2
4
6
ArchiCAD
AutodeskRevit
ProEngineer
Autodesk Inventor
Autodesk Civil 3D
Bentley GeoPAK
SolidWorks(Base)
September 2005 Rashi Glazer and Teck Ho 11
Lesson 2: Adopt the umbrella branding strategy
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4
6
2
4
6
Bentley MicroStation (Base)
Bentley InRoads(Base)
2
4
6
Revit
AutodeskRevit
SolidWorks(Base)
Autodesk Inventor
Autodesk Civil 3D
Civil 3D
Inventor
September 2005 Rashi Glazer and Teck Ho 12
Lesson 3: Print ad can enhance brand equity
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4
6
2
4
6
Bentley MicroStation (Base)
Bentley InRoads(Base)
2
4
6
Autodesk Revit W/O Print Ad
AutodeskRevit withPrint Ad
SolidWorks(Base)Autodesk
Inventor with Print Ad Autodesk
Civil 3D with Print AD
Autodek Civil 3D W/O Print Ad
AutodeskInventorW/O PrintAd
Only prospects’ data are considered in Inventor’s dial because there are a few valid customers’ data.
September 2005 Rashi Glazer and Teck Ho 13
Lesson 4: Key customers features
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4
6
2
4Bentley MicroStation (Base)
Bentley InRoads(Base)
2
4
6
Ease of Use24/7Technical Support
SolidWorks(Base) 24/7 Technical
support
Ease of Use
Compatibility
Price ($1000 less)
Autodesk Revit BrandCompatibility
6
Ease of Use
Price ($1000 less)
Price
Autodesk Civil 3D Brand
Compatibility
September 2005 Rashi Glazer and Teck Ho 14
Lesson 5: Autodesk’s brand premium
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4
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4
6
Bentley MicroStation at $3,695
Autodesk Revit at $4,695 Bentley
InRoads at $4,595
Autodesk Civil 3D at $5,595
September 2005 Rashi Glazer and Teck Ho 15
Brand Value Function
BentleyMicrostation
Autodesk Revit
X
X
$1,000
September 2005 Rashi Glazer and Teck Ho 16
Lesson 6: Return of Print Ad
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4
6
Autodesk Civil 3D without Print Ad at $4,595
Autodesk Civil 3D with Print Ad at $5,595
2
4
6
Autodesk Revit without Print Ad at $3,695
Autodesk Revit with Print Ad at $4,695
September 2005 Rashi Glazer and Teck Ho 17
Lesson 6: Return of Print Ad
2
4
6
Autodesk Civil 3D without Print Ad at $4,595
Autodesk Civil 3D with Print Ad at $5,595
2
4
6
Autodesk Revit without Print Ad at $3,695
Autodesk Revit with Print Ad at $4,695
September 2005 Rashi Glazer and Teck Ho 18
Brand Equity Response Function
Without Print AdAutodesk Revit(No Investment)
With Print AdAutodesk Revit(Investment)
X
X$3,695
$4,695
$1,000
ROI = Number of Customers x $1,000 / Investment I
I
September 2005 Rashi Glazer and Teck Ho 19
Lesson 7a: Customers vs. Prospects (Autodesk Revit)
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4
62
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6
Bentley MicroStation (Base)
Autodesk Revit
Autodesk Revit
Bentley MicroStation (Base)
Customers Prospects
September 2005 Rashi Glazer and Teck Ho 20
Lesson 7b: Customers vs. Prospects (Autodesk Inventor)
2
4
62
4
6
SolidWorks(Base)
Autodesk Inventor
Autodesk Inventor
SolidWorks (Base)
Customers Prospects
September 2005 Rashi Glazer and Teck Ho 21
Lesson 7c: Customers vs. Prospects (Autodesk Civil 3D)
2
4
62
4
6
Bentley InRoads(Base)
Autodesk Civil 3D
Autodesk Civil 3D
Customers Prospects
Bentley InRoads(Base)
September 2005 Rashi Glazer and Teck Ho 22
Key Takeaways
Autodesk has a superior brand power
Adopt the umbrella branding strategy (definitely use Autodesk brand in Revit, Inventor, and Civil 3D)
The value of branding investment (e.g., print ad) can be significant
Ease of use and compatibility are the most important and functionality is the least important feature
Autodesk has a higher brand equity among customers than prospects
The Conjoint methodology works
September 2005 Rashi Glazer and Teck Ho 23
Next Steps
Having demonstrated “proof of concept”:
Modify stimuli (e.g., more price points) and tighter data collection process to reduce noise and improve predictive power
Apply methodology to a broader set of key brands
Identify preference differences between customers and prospects and by segments
Evaluate marketing campaigns before launch