Leaders are in the business of creating shareholder value whether they manage consumer or manufacturing companies. Brand creators are in the business of creating valuable assets; and marketers are in the business of influencing the customer experience and capturing brand value.
If you are focused on valuing your brand, then you have your sights set on improving your P&L. However, as we speak with manufacturing executives about brand equity, few understand its full power and the profit improvement they could gain.
Various indices have been developed to help B2C companies understand the value of their brand. However, most of the measurements rely on soft (qualitative) data. We believe it is important to use a statistically valid method of quantifying brand value in dollars and cents. B2B companies are now just realizing the power of combining price optimization with branding strategies.
The key advantage includes product and value pricing. Enter author, Jerry Bernstein, President, Value Pricing Group, one of the top-tier pricing experts for manufacturing companies with engineered and technology based products. He has a superb understanding of branding and pioneered the now proven "black box" formula he developed, appropriately named, Brand Contribution Analysis™.
Bernstein's quantitative pricing analytics, combined with branding expertise is so powerful, that improvements in profitability are guaranteed. Here is how we overlaid our experience:
Brand Design > Pricing Analytics > Value Pricing(1) > Marketing > Customer Experience > Brand Equity
Result = The Brand Contribution Analysis™ and related services are enablers for quantifying the dollars that pricing and brand equity can bring to the P&L. Fortunately, for manufacturing executives, the knowledge and methodologies for brand value and profit improvement are demonstrable and attainable.
Ref: 1Value Pricing includes analytical tools and processes designed to capture the full value of products and services. The result is measurable improvements in revenue and profitability.