Dear Client,

Brand equity is a term surrounded by confusion. This month Amandeep, a Consultant at Cognosis, explores the definition of the term, the ways we can measure it, and gives her Ten Golden Rules for dashboard development.

In this edition we also feature two recent Cognosis events. The first was the second in our ‘Alcohol Issue’ series and our guest speaker Claire Davidson of Gardant Communications gave us the ‘lobbyist’s perspective’. The highly energetic debate at this event suggested this is an issue high on many people’s agenda right now and one we are dedicating a lot of time to.

Our second breakfast was with Phil Parnell, CEO of Drambuie, who laid out the Drambuie story and how his team is transforming the Drambuie brand. Cognosis worked with Phil to build the brand repositioning, consumer strategy and underpin distributor engagement. This is a classic example of a client embracing the Whole-Minded approach with fantastic results.

As usual if you would like to discuss any of the areas covered this newsletter, please do not hesitate to get in touch.

Best wishes,

Richard Brown, Managing Partner

How do you define the success, or equity, of your brand?

Is it the brand’s financial performance; its health; its “value”; its consumer perception; all or none of the above?

If you don’t have a straight answer to this question, you’re not alone.

Cognosis has conducted an independent piece of research asking a range of industry professionals which definition, from a selection of four taken from leading experts in the field, best matched their own interpretation of the term brand equity.

There was some overlap between the definitions, but each one contained a distinct concept within it. For example, while Yoo and Donthu speak in terms of the “incremental value” of a product within the market, Lassar’s definition of brand equity centres more on consumer confidence as against its competitors. Similarly, while Keller focuses his definition on the customer, Aaker prefers to use the implements designed to create customer confidence in his definition.

Perhaps unsurprisingly, the results showed an even spread amongst respondents. Professionals differ widely in their answer to this common question and academics remain at loggerheads. However, in increasingly straitened economic times, marketers have come under ever growing pressure to justify their budgets.

Marketing measurement has become a hot topic. The question of brand equity and how to measure it has never been more pertinent to marketers, and a precise answer never in greater demand.

The good news is that while we may yet not be able to agree on the precise definition of the term, creating an actionable equity dashboard to track your brand doesn’t have to be a complex exercise. Take the time to identify the right metrics for your brand, commit to monitoring them consistently, and the results are well worth the effort!

Cognosis Event - “The Alcohol Issue: A Lobbyist’s Perspective”

Following publication of the Health Committee’s Alcohol Report in January, Cognosis hosted a special breakfast briefing to address the possible impact of its recommendations on the drinks industry. The event was a great success, heavily subscribed and attracting senior attendees from many of the industry’s leading drinks businesses.

By popular demand on the 5th of May we held the second breakfast in the series- ‘The Alcohol Issue: A Lobbyist Perspective’. Claire Davidson, Managing Partner of Gardant Communications, was our guest speaker for the event.

The debate focused on the challenges facing the drinks industry in 2010 with the imminent election and the political parties’ proposed alcohol policies featuring prominently. Claire spoke about her experience with Gardant Communications and how it has ‘been there’ and ‘done that’ with other industrial sectors and shared her thoughts about the workings of governments, civil servants and parties of all colours.

Cognosis Event - “Back from the Brink: The Drambuie Story”

Perhaps one of the most daunting challenges a leader can face is how to transform a tired brand which is in decline. When Phil Parnell became CEO of Drambuie in 2005, he was faced with the challenge to rediscover, revitalise and relaunch the brand to a new generation of consumers around the world.

Phil Parnell, CEO of Drambuie, joined us on the 27th of May to share his experience of how he and his team transformed the Drambuie brand.

“Wodka under siege”

Russia has long been associated with its love of vodka and indeed its consumption of the spirit remains increasingly high. However, with increasing Western influence on consumer attitudes and behaviour, and with the government’s latest pledge to halve per capita consumption of spirits in the coming decade, the long-time love affair with vodka may be starting to wane. This creates potentially lucrative opportunities for international spirits companies with ambition.

The imported spirits market is growing and evolving fast, and newly affluent Russian consumers are hugely brand and luxury-conscious.

However the market is fiercely competitive and the culture decidedly different from the West’s, so for many Russia remains a country surrounded in a veil of mystique, making the thought of setting up shop somewhat daunting.

Cognosis recently produced some simple analyses for the Spirits Business which we hope offer a little insight into the working of this complex and exciting company.

Cognosis
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This month we are pleased to announce two promotions in the team:

Ash Brar has been promoted to Manager.

Matthew Bambrough has been promoted to Senior Consultant.

Please join us in congratulating them.

• Breakfast Briefing
• Date: Tuesday 13th July 2010
• Time: 8.00-10.00 am
• Venue: TBC
• Guest speaker: Peter Farquhar (Managing Director of Dorset Cereals)

The Spirits Business,
May 2010
"Wodka under Siege"

For further information on future events and seminars please contact Marketing - marketing@cognosis.co.uk
Cognosis Ltd., 95 Aldwych London WC2B 4JF Tel: +44 (0) 20 63206 0351.
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