Brand Equity Assessment Study September 2nd 2005 September

Brand Equity Assessment Study September 2nd 2005 September

Brand Equity Assessment Study September 2nd 2005 September 2005 Rashi Glazer and Teck Ho 1 Goals of Brand Equity Study The value of an extra unit of brand equity e.g., if we move from x to y on a brand equity scale, how much is this worth (compared to other attributes)? The investment required or cost to achieve an extra unit of brand equity this is the brand equity response function. September 2005 Rashi Glazer and Teck Ho 2 Project Scope Measure Autodesks brand equity in three product categories (Revit, Inventor, and Civil 3D) Determine the appropriateness of an umbrella branding strategy (e.g., Autodesk Civil 3D versus Civil 3D) Assess the potential ROI of advertising campaign in brand equity enhancement Understand how customers choose and make tradeoffs among

product features in purchasing decision Demonstrate the proof of concept of the Conjoint methodology September 2005 Rashi Glazer and Teck Ho 3 Conjoint Methodology A product or service is simply a bundle of relevant features Relevant features include brand, price, functionality, compatibility, ease of use, technical support (determined by focus groups) The Conjoint methodology allows us to quantify the importance of each feature (and its levels) in customers purchase decision It is the most widely used methodology in marketing research in figuring out brand equity and customer utility function September 2005 Rashi Glazer and Teck Ho 4 Product Features and Levels Brand Autodesk Autodesk Revit Competitor 1

ArchiCAD Competitor 2 Bentley Microstation Price Low $3,695 Medium $4,195 High $4,695 Functionality High Building Design flavored drafting system Medium Object oriented CAD system Low Parametric Building Information Modeler Compatability

High Medium Low Seamless translation of Requires a few steps and data between different keyboard commands to software; looks and feels translate between the same different software Ease of Use Technical Support September 2005 Difficult to export and/or import to and from other software without extensive commands High Extremely intuitive: easy to figure out commands without the use of a manual or technical support Medium

Can figure out commands with trial and error and moderate technical support or the use of a manual Need to rely extensively on a manual and technical support to figure out commands High Immediate 24/7 live person support, including site visits if required; less than 1 minute telephone waittime Medium Low Menu-driven automated technical support supplemented by liveperson telephone support (within 1 hour) if required Menu-driven automated support; if required, liveperson call-back within 24 hours Rashi Glazer and Teck Ho

Low 5 Approach Qualitative phase: Six focus groups 3 Products Revit, Inventor, Civil 3D Customers and Prospects Relevant product features: Brand, price, functionality, compatibility, ease of use, technical support Quantitative phase Involving 557 customers and prospects Web-based Survey asking participants to indicate relative liking for product profiles Statistical models to estimate relative importance of features September 2005 Rashi Glazer and Teck Ho 6 Experimental Design For each product category, we have 3 treatment conditions: Umbrella brand + advertisement (e.g., Autodesk Civil 3D + Print Ad.) Umbrella brand (e.g., Autodesk Civil 3D) Product brand (Civil 3D)

The print ad allows us to estimate the potential ROI of advertising in brand equity enhancement September 2005 Rashi Glazer and Teck Ho 7 Print Ad Example: Civil 3D September 2005 Rashi Glazer and Teck Ho 8 Conjoint Dial Base product: For example, in Revit category, we choose the Base product to be Bentley Microstation, priced at $4,695, has low compatibility, low ease of use, low usability, and low technical support. The needle is at 2.24. Incremental feature: For example, Brand moves from Bentley Microstation to Autodesk Revit. The needle stops at 2.87 (an increment of 0.63) September 2005 4

Autodesk Revit 3 5 Bentley Micro Station (Base) 2 Rashi Glazer and Teck Ho 6 1 7 9 Lesson 1: Autodesk has a superior brand power 4 Autodesk Revit ArchiCAD Bentley Micro 2 Station (Base)

SolidWorks 4 (Base) 6 ProEngineer Autodesk Inventor 2 Autodesk Civil 3D 4 6Bentley GeoPAK Bentley InRoads (Base) 6 2 September 2005 Rashi Glazer and Teck Ho

10 Lesson 2: Adopt the umbrella branding strategy 4 Autodesk Revit Revit Bentley Micro 2 Station (Base) SolidWorks 4 (Base) Autodesk 6 Inventor Inventor Autodesk Civil 3D 2 6 4 Bentley InRoads

(Base) Civil 3D 6 2 September 2005 Rashi Glazer and Teck Ho 11 Lesson 3: Print ad can enhance brand equity Autodesk Revit with Print Ad Autodesk Revit W/O Print Ad Bentley Micro 2 Station (Base) 4 SolidWorks 4 (Base) Autodesk

6 Inventor with Print Ad Autodesk Inventor W/O Print Ad 2 Autodesk Civil 3D with Print AD 4 Autodek Civil 3D W/ 6 O Print Ad Bentley InRoads (Base) 6 2 Only prospects data are considered in Inventors dial because there are a few valid customers data. September 2005

Rashi Glazer and Teck Ho 12 Lesson 4: Key customers features Compatibility 4 Ease of Use Autodesk Revit Brand Price ($1000 less) 24/7Technical Support Compatibility 4 Bentley Micro 2 Station (Base) Ease of Use 6 SolidWorks (Base) Price ($1000 less) 24/7 Technical support Ease of Use 2 Compatibility Autodesk

4 Civil 3D Brand Price 6 Bentley InRoads (Base) 6 2 September 2005 Rashi Glazer and Teck Ho 13 Lesson 5: Autodesks brand premium Autodesk Civil 3D at $5,595 4 Autodesk Revit at $4,695 Bentley Micro

Station at $3,695 2 September 2005 4 Bentley InRoads at $4,595 6 2 Rashi Glazer and Teck Ho 6 14 Brand Value Function X $1,000 X Bentley Microstation

September 2005 Autodesk Revit Rashi Glazer and Teck Ho 15 Lesson 6: Return of Print Ad Autodesk Revit without Print Ad at $3,695 2 September 2005 Autodesk Revit with Print Ad at 4 $4,695 Autodesk Civil 3D without Print Ad at $4,595 6 2

Rashi Glazer and Teck Ho Autodesk Civil 3D with Print Ad at $5,595 4 6 16 Lesson 6: Return of Print Ad Autodesk Autodesk Revit Revit without with Print Ad at Print Ad at 4 $4,695 $3,695 2 September 2005 Autodesk Civil 3D without Print Ad at $4,595 6

2 Rashi Glazer and Teck Ho Autodesk Civil 3D with Print Ad at $5,595 4 6 17 Brand Equity Response Function X $4,695 $1,000 $3,695 X I Without Print Ad Autodesk Revit (No Investment) With Print Ad Autodesk Revit (Investment) ROI = Number of Customers x $1,000 / Investment I

September 2005 Rashi Glazer and Teck Ho 18 Lesson 7a: Customers vs. Prospects (Autodesk Revit) 4 Autodesk Revit 4 Bentley MicroStation (Base) Autodesk Revit 6 2 Bentley MicroStation 2 (Base) Customers

September 2005 Rashi Glazer and Teck Ho 6 Prospects 19 Lesson 7b: Customers vs. Prospects (Autodesk Inventor) 4 SolidWorks (Base) Autodesk Inventor Autodesk Inventor SolidWorks (Base) 6 2 6 2

Customers September 2005 4 Rashi Glazer and Teck Ho Prospects 20 Lesson 7c: Customers vs. Prospects (Autodesk Civil 3D) Autodesk Civil 3D 4 4 Autodesk Civil 3D Bentley InRoads (Base) Bentley InRoads (Base) 6 2

Customers September 2005 6 2 Rashi Glazer and Teck Ho Prospects 21 Key Takeaways Autodesk has a superior brand power Adopt the umbrella branding strategy (definitely use Autodesk brand in Revit, Inventor, and Civil 3D) The value of branding investment (e.g., print ad) can be significant Ease of use and compatibility are the most important and functionality is the least important feature Autodesk has a higher brand equity among customers than prospects The Conjoint methodology works September 2005 Rashi Glazer and Teck Ho 22 Next Steps Having demonstrated proof of concept: Modify stimuli (e.g., more price points) and tighter

data collection process to reduce noise and improve predictive power Apply methodology to a broader set of key brands Identify preference differences between customers and prospects and by segments Evaluate marketing campaigns before launch September 2005 Rashi Glazer and Teck Ho 23

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