MSW’s RDE Analytic Framework rests on a study that found that three equity dimensions (Relevance, Differentiation, Emotion) are responsible for driving a significant portion of brand growth.  Our ongoing Chart of the Week series is dedicated to sharing RDE results for a variety of categories.

If you have questions about your category or want your own Chart of the Week – give us a call.

TBSM / RDE Assessment of 10 streaming video service brands collected in December 2019 among about 400 male and female steaming video service users led to the following insights:

• In its second month in existence, Disney+ finds itself already competing with the big streaming players in terms of preference and RDE composite.  This is not surprising given that it achieved 10 million sign-ups on day one and is estimated to reach 25 million by the end of the first quarter of 2020.

• Netflix holds a strong lead in both preference and RDE – leading other brands in all three dimensions.  This is not surprising giving its industry leading 60.6 million US subscribers (note Amazon doesn’t report number of Prime Video users and the 100 million Prime subscribers get a bundle of benefits including free one-day shipping).

• However, comparing to August 2019 tracking results, Netflix appears to be hit hard by the Disney+ in terms of preference.  Netflix preference dropped over 10 percentage points in December vs August, nearly the same as the total Disney preference level in December of 11.7%.  Netflix RDE also appears to be affected most by the Disney entry, particularly relevance.

• Disney+ lags somewhat in relevance, as this dimension is typically most strongly tied to current sales level.  However, expect Disney+ relevance to rapidly increase as subscribers continue to be added and for its overall RDE to move past Hulu’s.  With Disney+ already leading Hulu in Differentiation and Emotional connection, expect also Disney+ subscribers to quickly surpass Hulu’s 28.5 million in the U.S.

• Preference for Disney+ skews more strongly among younger and middle age women and somewhat toward more lighter users of streaming video services.  Hulu also skews towards younger women but skews much more toward heavy users.  On the other hand, Netflix preference is strongest among older women and medium users.

• Then which services have preference skewed more towards males?  Primarily the YouTube properties as well as some of the smaller sports-oriented services.

MSW’s RDE Analytic Framework rests on a study that found that three equity dimensions (Relevance, Differentiation, Emotion) are responsible for driving a significant portion of brand growth.  Our ongoing Chart of the Week series is dedicated to sharing RDE results for a variety of categories.      

If you have questions about your category or want your own Chart of the Week – give us a call.      

TBSM / RDE Assessment of 8 mid-range hotel brands among over 800 male and female users of hotel services led to the following insights:

• Courtyard by Marriott leads all brands in terms of both RDE composite and brand preference, followed by Hilton Garden for both metrics.  As mid-plus properties, it makes sense that they have the highest levels of both Differentiation and Emotion versus all other brands studied (Hyatt Place is also mid-plus but is likely constrained overall by a relatively low number of locations).

• In addition, Courtyard, Hilton Garden and Hyatt Place are each particularly strong in terms of RDE among heavy and moderate hotel services users.  In contrast, Holiday Inn Express is the overall RDE composite leader among light hotel services users.

• Holiday Inn Express is the lone brand for which Relevance is the strongest of the three RDE dimensions.  This is likely due to the chain’s very large number of locations.

• The contrast between Holiday Inn Express and Holiday Inn is interesting.  Express has a slight lead in Relevance due to its ubiquity.  Moreover, Express holds a much more commanding lead in terms of Differentiation.  This may be due to generally newer properties and perks (free breakfast, free wifi) that differentiate it from Holiday Inn or also its business orientation that would appeal to road warriors.  On the other hand, Holiday Inn holds an advantage in Emotion over Express, possibly due to heritage and also the presence of full-service restaurants, bars and event space.

• Fairfield Inn and La Quinta bring up the rear in terms of RDE composite with remarkably similar profiles.  Comparing the two, Fairfield is somewhat stronger among younger people while La Quinta is relatively stronger with 55+.  Fairfield is also stronger in the Northeast, especially in terms of relevance, while LaQuita is relatively stronger among lower income individuals.

• The RDE composite is strongly related to brand preference in this category, with a correlation of 0.89.  Hyatt Place exhibits somewhat lower preference than might be expected from its RDE level, likely due to the relatively lower number of properties versus the other brands studied.

MSW’s RDE Analytic Framework rests on a study that found that three equity dimensions (Relevance, Differentiation, Emotion) are responsible for driving a significant portion of brand growth.  Our ongoing Chart of the Week series is dedicated to sharing RDE results for a variety of categories. 

If you have questions about your category or want your own Chart of the Week – give us a call.

RDE Assessment among major Credit Card brands was taken among 500 men and women. Comparison of the results between American Express, Discover and one of the leading bank card issuers (Capital One) led to the following insights:

• American Express lagged its rivals in terms of Relevance, likely due to the brand being accepted at fewer retailers given the higher fees the brand charges retailers.  Capital One leads in Relevance likely due to broad acceptance of the Visa and Mastercard networks and the fact that in terms of cards in circulation the brand is close to parity with Chase as leader in the category.

• On the other hand, American Express leads in terms of Differentiation.  The card is still viewed as a luxury brand which is typically a strong differentiator in the minds of consumers.

• Capital One and Discover lead American Express in terms of Emotion.  Capital One likely builds emotional connection with consumers through heavy advertising often featuring celebrities such as Jennifer Garner.  Discover also has a strong advertising presence and appeals such as no annual fee and first year cash-back match may build loyalty and likelihood to recommend.

• Capital One’s lead in overall RDE score reflects its lead versus American Express and Discover in terms of both brand preference and share of cards in circulation.

• On the other hand, American Express leads the other two brands in RDE among heavy credit card users, driven by very strong Differentiation and Emotion levels among these key consumers.

• Discover has a relative strength among women, but also surpasses Capital One among heavy users.