If the rise of the internet changed the world, the arrival of the smartphone sped up the revolution. With 80% of the UK population going online regularly in 2017, almost four out of every five internet users do it via a smartphone.
These near-ubiquitous devices are the communications success story of the last decade, with 42.7 million UK smartphone users this year. Although the growth is likely to slow as penetration increases, it is thought that over two-thirds of the population will be using a smartphone by 2019.
But where there’s a smartphone, there’s a network, and the UK is dominated by four network providers: market leader EE with a 30% share, along with O2, Three and Vodafone.
Measuring Brand Equity
A brand is more than just a name or logo associated with a product. The impact that a brand has on the customer and their purchase decision or other behaviours is known as brand equity.
Vision One specialise in understanding brands and helping brand owners improve their brand equity. Brand equity can be measure in a range of ways, but the most effective go beyond delivering a range of key performance indicators (KPI’s) and deliver a clear indication of where the brand’s strength and opportunities lie.
This case study highlights and measures the brand equity of Mobile provider Giffgaff Mobile against its competitors such as o2, Three and EE.
The Brand Equity Wheel
The Brand Wheel is at the hub of Brand Equity measurement and comprises of four key themes:
1. The Brand Pyramid (or brand funnel) reflects the theoretical journey towards building a strong brand relationship & brand loyalty.
2. Brand stature reflect the uniqueness and leadership within the market.
3. Brand Delivery reflects the ability to satisfy customers and generate brand recommendations.
4. Brand Utility is arguably the most important. Needs identifies the rational and emotional needs in the market and how brands perform.
Value identifies the ability of a brand to command a price premium.
Network Provider Brand Equities
Giffgaff Achieves a strong and in face the strongest brand equity rating with 58pts. This is largely due to the high performance on the brand wheel with satisfaction and recommendations from consumers. Despite Giffgaff’s Brand strength, o2 is very close behind them because of its lack of uniqueness.
The Brand Pyramid
The brand pyramid is made up of 5 key metrics:
Every brand has a unique brand structure. Comparisons with key competitors will help identify future opportunities. Giffgaff performs relatively well when it comes to awareness, but this high score does not feed through to loyalty and satisfaction, and consequently the overall brand pyramid score is low. However, the below-average brand loyalty metric does give plenty of scope for identifying opportunities.
Meeting Rational And Emotional Needs
Brand Values vary considerably by individual brand – but more own or has strength of most important value ‘Convenience’. Each of the brands have their own ’emotional’ strength which is an opportunity to exploit their own emotional positioning.
With all 6 providers having very similar values, consumers have rated with a functional view rather than emotional need.
Whilst O2 scores the highest with quality, Giffgaff’s top values are Ease and Value for money.
£ Value is a KPI that helps identify the ability of a brand to command a premium price – i.e. a brand customers would potentially be happy to pay more for.
~ Differentiation & Leadership ~
Brand Stature comprises of two key components. Brand Differentiation which is universally regarded by brands as a fundamental component of any brand and reflect the ability of the brand to standout from the crowd. Leadership is key and reflects the stature of the brand – as many shoppers will tend to follow conventional wisdom and buy ‘big’ brands.
Brand Uniqueness is universally regarded by brands as a fundamental component of any brand and reflects the ability of the brand to standout from the crowd.
How well the brand or product delivers – this includes satisfaction and recommendation (NPS) – promotors of the brand.
We can see that Giffgaff holds a leading place in Both Satisfaction & Recommendation.
With O2 and Three coming below Giffgaff’s strong performance in brand delivery.