In previous blogs we have commented on the validity and practicality of applying the MASB Brand Investment and Valuation model.  In those articles we focused on the value the brand derives from cash flows from existing offerings.  But what about potential future cash flows from planned brand extensions not yet launched – both within existing categories and into new categories?  Can the model be successfully applied to those cases?

The answer is a resounding yes!  All that is required is a measurement of brand strength for the extension before it launches.  Traditionally this has been tried by measuring brand recall among a group of consumers exposed to either launch copy (if available) or a video concept and using this and expected media support to project awareness.  While it is possible to accurately project awareness levels in this way, ATU validation studies show this provides only a partial answer as brand awareness explains only about 40% of the variance in trial rates (correlation of 0.65).  In essence, just because a consumer is aware of a brand doesn’t mean she will try it.

However, using the MSW•ARS system it is possible to also gather brand preference before launch.  When awareness is multiplied by brand preference, the relationship improves with approximately 90% of the variance being explained (correlation of 0.94).

Please contact your MSW●ARS representative to learn more about how our brand preference approach has been integrated across our entire suite of solutions.