Optimising Brand Equity and Marketing Performance with Implications in Building and Evaluating A Premium Profit Brand Valuation Model
Brand equity is one of the most intangible and valuable asset for organisations as discussed within the marketing and accounting literature. Though practitioners are aware of the growing importance of brand equity in their organisations, they are seen to be reserved in their usage of brand valuation. Hence, the literature recommended that brand equity indicators and drivers need to be refined to the needs of practicing managers so that they could be applied more effectively. Based on the importance of improving brand equity indicators and drivers as explained in the thesis’ substantive literature review and the importance of applying these within a practice-oriented brand equity framework the first focus of this thesis is concerned with examining the difference between theory and practice, in particular, what the practicedriven reasons are and any significant variations to theory. The second focus is about developing solutions, based on the analysed requirements, which practitioners would need for a successful long-term brand valuation implementation into marketing performance and company valuation systems. The third focus was on the development of a brand valuation model to avoid a situation that the individual developed solutions could be ineffective and not relevant for the marketing and accounting experts because of a relevant but missing combination. So the aim and objectives for research was to offer the practitioners a feasible solution that considered the experts’ prerequisites and requirements to a high degree, thereby increasing the acceptance of brand valuation in practice. This thesis adopts a qualitative research approach and follows the principles of a realism paradigm to gain crucial information about brand equity in practice. To ensure attention to the requirements of quality, validity, reliability and generalisation the three field research methodologies were applied to enable triangulation of the data for showing and describing the valuation and organisational processes of a brand equity model. The first methodology contained 33 expert interviews in German consumer goods companies. The second was a small survey examining the impact of price premium and the method of data collection based on 60 participants. The third methodology was a case study of brand valuation in cooperation with a German mineral water company to further increase reliability and to give validity to the developed model. The findings of the field research reported in the thesis incorporated with the results of the literature review had a fundamental impact on the developed brand-valuation model. Based on the premium construct and the integration of the marketing mix, 6 consumer-based indicators (brand awareness, image and associations, sympathy, perceived brand quality and benefit, satisfaction and loyalty) and 4 financial-based indicators (brand-related costs and investments, price premium, volume premium and brand extension) were arrived at. The model included considerations of the brand-related input and output with the monetary and non-monetary added value as generated by the brand. The integrated brand monitoring system followed performance principles and the considered added-value chain followed the principles of value-based management and shareholder value. These factors with the use of a practice-oriented live company case study allowed a better integration of the model in its valuation system and a future-oriented perspective of the brand. In summary, this thesis contributes knowledge to the literature by giving deeper qualitative insights into the problems and requirements of brand valuation by companies and the solutions for companies to overcome them with a brand valuation model, in a symbiotic relationship. Further, there is contribution to practice in the developed brand valuation model, as it has incorporated within its construction, attention to details concerning the demands, problems and requirements of managers to a high degree. The model as developed in the thesis is, therefore, a valid contribution, combining the results of the literature review and researches with companies.
- PhD