Energy: igniting brands to drive enterprise value

John Gerzema
Young & Rubicam Brands

Ed Lebar
BrandAsset® Valuator, Worldwide

Michael Sussman
Y&R, North America

Jason Gaikowski
Young & Rubicam Brands

INTRODUCTION

The many models used to assess the health and performance of a brand tend to take one of two forms: brand equity or brand value. Brand equity models measure consumer perceptions and brand associations (Aaker 1991; Keller 2003), or simplified measures of familiarity and favourability (Gregory & McNaughton 2004). On the other hand, brand value models use a variety of techniques – ranging from a modular index of consumer perceptions (Hupp & Powaga 2004) to a weighted scorecard of marketing directors' assessments (Stobart & Perrier 1997), and to calculating incremental pricing power versus a commodity equivalent – seeking to identify a monetary value of the brand (often for tax or financial accounting purposes). Each approach has its merits and its limitations. Brand value models are generally less sensitive to the changing and fragile perceptive nature of consumer relationships, while brand equity models struggle to sufficiently quantify the financial impact resulting from brand-building investments.