How to Value Brand

THE ASSIGNMENT: measure brand value. THE METHOD: ask top executives, brand specialists and consultants to define it. It's clear from our e-mail responses that the key value is profits and/or return on investment. Here are the questions and a sampling of responses.

  1. How do you measure brand value?

  2. In measuring brand value, how do you rank the following on a scale of 1-10, with 10 being the top rank?

    • Reservation contribution of brand.com
    • Profits
    • ROI
    • Purchasing programs
    • Technology
    • Support services
  3. How does a company's culture affect brand value?

We begin with World Hotels

  1. We measure our relative value in two very distinct manners. The first is the bookers and guests; second is our owners and operators. We have organized ourselves to insure that travel agents, meeting planners and corporate travel managers have confidence when recommending our hotels. For owners and operators, we measure our value through our Membership Services team, creation of partnerships and delivery of revenue through our sales teams and reservation processes.

  2. Reservation contribution of brand.com 9
    Profits 10

    ROI 9
    Purchasing programs 7
    Technology 8
    Support services 10

  3. Our team is focused on things which add the most value to our hotels, whether that be training, adoption of electronic marketing and distribution, processing RFPs or building relationships to create revenue opportunities or lower distribution costs.

Integrated Hospitality Solutions Views

  1. I measure brand value based on consumer awareness and impressions of the brand, ability to drive business and, most of all, ROI to the owner.

  2. Reservation contribution of brand.com 8
    Profits 9
    ROI 10
    Purchasing programs 5
    Technology 5
    Support services 7

  3. What is the focus on ROI and enhancing the owner's asset? Does the company place priority on marketing as a driver of customers or does it focus on flash without substance? If the company places a priority on identifying customer service drivers and measures them, the culture should align in a way that enhances the brand value.

The Hilton take

  1. Ultimately, any brand has to be of value to the customer or it's not going to be of value to whoever owns the brand.

  2. A strong brand will have high marks in all of these categories…Your questions were really focused on what is the brand value to an owner of the hotel.

  3. If you don't have a culture that cares about how you deliver customer service at the hotel level, you're not going to wind up with a brand that's very valuable. Our company's vision is to be the first choice of the world's travelers.

The USFS Response

  1. In market share.

  2. Reservation contribution of brand.com 4
    Profits 8
    ROI 10
    Purchasing programs 1
    Technology 6
    Support services 5

  3. A company's culture affects the amount of attention paid to quality, image, market share, accumulation and individual commitment to enhancing the brand, as opposed to just looking at the bottom line.

The Best Western response

  1. You measure brand value through factors such as brand image and consideration, rank in competitive set, consumer satisfaction rank in competitive set, marketing effectiveness in terms of brand awareness-ad spend comparison, total reservation net revenue and Internet net revenue. Others include sales effectiveness and loyalty program contribution to rooms revenue.

  2. Reservation contribution of brand.com 8
    Profits 7(many factors can influence profits)
    ROI 6
    Purchasing programs 6
    Technology 7
    Support services 7
    Market share (RevPAR Index) and ADR Index would rank 10 in my view.

  3. The company's culture defines the focus of the company and therefore, its competencies. Three core competencies result in market leadership. A company desiring a high brand value must excel in at least two (achieved through the company's culture). The three competencies/culture are:

    • Customer intimacy (i.e., Nordstrom)
    • Product innovation (i.e., Apple)
    • Operational efficiency (i.e., Wal-Mart)

The Felcor Response

  1. Factors contributing to brand value measurement include name, distribution, frequency program, and overall customer perception. I look at a hotel as a piece of real estate with location being most important and brand, second. You have to decide which brand will bring the most value to the hotel.

  2. Reservation contribution of brand.com 7
    Profits 10
    ROI 10
    Purchasing programs 3
    Technology 7
    Support services 5

  3. Pride in the brand makes a huge difference in attitude, how you treat people and the message delivered to the customer in obvious and subtle ways.

The Boutique Viewpoint

  1. We measure brand value through our guests, employees, media and competitive sales status.

  2. Reservation contribution of brand.com 8
    Profits 9
    ROI 10
    Purchasing programs 7
    Technology 6
    Support services 5

  3. If a company doesn't ‘walk the talk,’ there is no true value to its brand.

The Choice Point of View

  1. You measure brand value through:

    • ROI to the owner
    • Performance (RevPAR)
    • Guest satisfaction
    • Size/distribution/brand awareness
  2. Res delivery 10
    Profits 10
    ROI 10
    Purchasing programs 6
    Technology 6
    Support services 9

  3. For a franchise company, culture is critical to creating brand value because the franchisor does not directly control the guest experience. The franchisor must rely on franchisee interaction with the guest to deliver on the brand's promise. A culture that fosters franchisee engagement is better able to deliver on that promise because a franchisee that is actively engaged (through the culture created by the franchise company) will offer:

    • Better execution of brand initiatives
    • Better feedback loop and cooperation with the implementation of initiatives
    • More investment in that property.

The Choice Point of View

  1. You measure brand value through:

    • ROI to the owner
    • Performance (RevPAR)
    • Guest satisfaction
    • Size/distribution/brand awareness
  2. Res delivery 10
    Profits 10
    ROI 10
    Purchasing programs 6
    Technology 6
    Support services 9

  3. For a franchise company, culture is critical to creating brand value because the franchisor does not directly control the guest experience. The franchisor must rely on franchisee interaction with the guest to deliver on the brand's promise. A culture that fosters franchisee engagement is better able to deliver on that promise because a franchisee that is actively engaged (through the culture created by the franchise company) will offer:

    • Better execution of brand initiatives
    • Better feedback loop and cooperation with the implementation of initiatives
    • More investment in that property

The Boutique Viewpoint

  1. We measure brand value through our guests, employees, media and competitive sales status.

  2. Reservation contribution of brand.com 8
    (six percent of reservations generated through Kimpton.com)

    Profits 9
    ROI 10
    Purchasing programs 7
    Technology 6
    Support services 5

  3. If a company doesn't ‘walk the talk,’ there is no true value to its brand.

Roger Bloss Speaks Out

  1. We measure brand value by the return on investment our members achieve through affiliation with our brand. We also provide every member with an ROI analysis highlighting well-performing properties and those that need extra attention. Another measure is membership renewal; the rate is 99 percent at ABVI. Also, we have been committed to being one step ahead of the technology curve and expanding the scope of revenue channels available to our members.

  2. Reservation contribution of brand.com 8
    Profits 10
    ROI 10
    Purchasing programs 6
    Technology 6
    Support services 8

  3. Our goal is to provide a better life for our members and their families. Our members are loyal because we believe in educating, not mandating. Their direct involvement with setting brand standards and guidelines, QA programs, marketing campaigns, etc., enhances their personal interest and commitment.

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