Why does a brand cost more than others that are offering the same product? What defines brand value?
The answer lies in the added value that brands give to products as perceived by consumers themselves. Today brands offer consumers an experience that exceeds the initial functions that products had before.
For this reason, it is important to quantify it and analyze its position vis-a-vis competitors.
We collected data through a CATI survey (Computer-Aided Telephone Interviewing) of consumers in the selected category. Through the questionnaire, a number of different pricing scenarios were proposed to respondents, allowing us to know what would be the brand of choice in the different contexts.
Additionally, questions related to brand awareness, advertising recall, brand preference, image and valuation of each of the brands analyzed were included.
We combined subjective results (brand health) with objective results (market share) to quantitatively measure the strengths and weaknesses of each brand.
We obtained accurate pricing curves that estimate the market share of each brand based on the fixed prices
With this process of brand valuation we identify and evaluate which are the differentiating drivers of each brand.
Brand valuation is useful to the company because it helps to know the current value of the brand and that of competing brands.
The results obtained allow us to also obtain the optimal price for each analyzed brand, i.e., the price that customers are willing to pay for each one of them.