Leveraging the power of the brand for pricing using digital data

Leveraging the Power of Brand for

Pricing Using Digital Data

- Blueocean Market Intelligence

© 2016 Blueocean Market Intelligence 2

Relevance of Brand Value“A brand is the identity that your company, product, or service has over time. It incorporates both the visual and communicated aspects as defined by the enterprise, as well as the perceived identity from others outside the company..”

of people recommend a brand they like or follow on social media

38%

64%3x

of respondents will open an email if they trust the brand

Is the marketing exposure received by brands with higher emotional intensity


Relevance of Brand Value

“A brand is a product, service, or concept that is publicly distinguished from other products, services, or concepts so that it can be easily communicated and usually marketed..”

77%of brand conversations on social media are people looking for advice, information, or help

increase in brand recall when a recognized brand appeared in search results16%

21%of consumers say they purchased a new product because it was from a brand they like


Brand Value – Influencing FactorsBRAND VALUE

Need stateWhat is the purpose of the product for the Customer?

General sentiment

What is the current perception of your

brand?TIMING!

Product differentiationWhat are the unique attributes?

Frame of referenceWhich category do the products belong to?

Market segmentsIs it Millennials or Gen Z?

Category ImpactHow important is the category to the Customer?


Brand Value & Price

Are you leveraging the power of your brand to price your products?



Typical Price Determination Process

Competition Market segment

Product lifecycle

stage

Product costs

Demand estimated

Desired Market Share

PRICE


Brand Value to the Mix!

Market segment

Demand estimated

Desired Market Share

PRICE

Brand ValueCompetition

Product lifecycle

stage

Product costs


Challenges faced - Brand Value & Price

© 2016 Blueocean Market Intelligence

How much can I charge for my brand

value?

There is so much data out

there, I am confused! How do I

start?

I do not have the teams in

place to support me on this initiative!

My competitor has just started off and they

are already commanding similar prices! How did this

happen?

I have a digital media team.

Could I leverage them?

My company has internal revenue goals I need to

meet. I am unsure if I

should indulge in this?

7


Brand Value – Digital Media Metrics

Amplification rate Applause rate Average engagement

rate Comment rate Conversation rate

Blog subscribers Bounce rate Click-throughs Email subscriptions Pageviews Traffic

Brand evangelists Customer retention

rate Customer

reviews/ratings Customer satisfaction Customer testimonials Net Promoter Score

Audience growth rate Average position Brand awareness Fans/followers Keyword frequency Post reach Potential impressions Potential reach Video views


Brand Value Measurement – Framework Objective

Expansion Opportunity

Premium Pricing power

Significant riskSignificant efforts required

Spread

Sentiment

Reach

Engagement

Influence Impact

Advocacy

Loyalty


Brand Value Measurement – FrameworkMinerva Solution Framework

Digital media properties Customer priorities Deployment & Measure

Brand value factored Product Pricing

SPREAD SENTIMENT

Distributed computing

ETL & Data processing

Statistical analytics

Infrastructure solution Visualizatio

ns

Discovery & Source

validations

Mining & Transformatio

nAlignment & Optimization

Solution & validationStage

Technology

Elements

Metrics


Case Study

A leading PC device manufacturerSituation: Significant investments & efforts made towards marketing & brand

building High volume of Customer interactions available in the digital media Information spread across multiple digital media properties

Problem: Challenges in factoring the brand value into product pricing models


Case Study – Framework Deployment

Ratings ReviewsSatisfaction InfluencersLikes/Dislikes

Data mining using Spark

Informatica for ETL &

ProcessingTableau

Visualizations

AWS Infrastructu

re

Statistical analytics using R

Segment Geography Category ChannelProduct

Discovery & Source

validations

Mining & Transformation

Alignment & Optimization


Case Study – Solution Deployment

Solution


Case Study – Solution Validation

• Utilized Customer systems to track changes in RUM (Revenue, Units, Margins) metrics

• Tracked impact of price changes on RUM

REVENUE

• Captured incremental digital data from same sources used to build the model

• Leveraged models to observe relevant volume changes

SPREAD

• Analysed incremental data using text analytics to mine sentiments for price changes

• Analysed data for sentiment on price changes

SENTIMENT


Conclusion

Brand value is very relevant & warrants monetization Digital media properties personify brand value Simplification of digital media metrics to measure

brand value is critical A working framework has been developed by Blueocean

to incorporate these metrics & monetize the brand value

THANK YOU

360 Discovery

For more information:

Nishchay [email protected] United States | United Kingdom | India | United Arab Emirates

www.blueoceanmi.com

mailto:[email protected]

http://www.blueoceanmi.com/

https://www.linkedin.com/company/blueoceanmarketintelligence?trk=tyah

Leveraging the power of the brand for pricing using digital data

Data & Analytics

Transcript of Leveraging the power of the brand for pricing using digital data