An Innovative Unified Brand and Market Measurement System for Strategic Investment Decisions

Abstract

Describes experimental work by Whitbread aimed at creating a research system to facilitate board decisions about brands. Companies like Whitbreads are constantly faced with decisions whether to enter or exit a market (illustrated). Brand research is less helpful than it might be, because it tends to be too much focused on the brand's product category competition; brand image data is often too rational and ‘obvious’. Two markets were studied: beer (Stella Artois) and Coffee Shops (Starbucks). First, the markets were considered in terms of two key factors: how far they are commoditised (are brands important?), and the market dynamics (is the market getting more interesting?). The pattern of answers to these questions helps managers to look at the market more broadly, in terms of its value to the business. Brand measures were then sought in terms which cross category boundaries. Two brand models (both described in detail) are used: a ‘mechanical metaphor’ (a combination of ‘motivators’, what the brand promises, and ‘hygiene factors’, required for its fitness to do its job, but where increases above the required level add no value), and an ‘organic metaphor’, in which the brand is viewed as a person to whom the consumer relates. These models are described operationally and illustrated from the Guinness and Starbucks research. The value of thinking about brands in both these ways, and their integration, is discussed. The approach helps management to think about brands strategically and make strategic decisions, such as market entry or exit, increasing or reducing brand support, etc., in time to take the necessary actions.