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Understanding Brand Health Index

Understanding Brand Health Index


Brand Health Tracking technique, is now becoming a board-room agenda in Iranian brands. Among Marketing research companies in Iran, a few firms have this knowledge to evaluate and track brands’ health. Rahbar Bazaar as a leading Marketing research company in Iran, benefiting from the shared experience with KANTAR, has outstanding projects on this field. Below is a brief introduction to brand health tracking concept.


Many different concepts, theoretical frameworks and ideas have seen the light of day and, as a result, a wide spectrum of different perspectives on how a brand ought to be conceptualized and managed is in play today. Therefore, to obtain an overview of the field of brand management is an overwhelming task. As a quick overview on Brand Management concept, below words are some main words that are considered as a keyword in the field of Brand Management.


Brand Management

All these word in accordance with other words can define the scope of brand management. As a brand manager having a look at these concepts and words can help to improve Brand power in the Market. As aim of this essay reveals we should take a look at Brand Audit among all these words.

A Brand Audit assesses the health of a brand. Typically, it consists of a brand inventory and a brand exploratory. The brand inventory is a detailed internal description of exactly how the brand has been marketed. The brand exploratory is an external investigation of what the brand means to consumers (through focus groups and other marketing research techniques).


Brand health tracking marketing research technique, same as other techniques, has parameters that should be calculated and categorized in order to get a good outcome of the survey.


Brand health has below items that should be measured:

  • Awareness
  • Penetration
  • Communication Evaluation
  • Differentiation
  • Relationship
  • Profile

Awareness: Getting consumers to “think” about your brand more often, and in more purchase situations, is one of the most under-rated marketing challenges that brands face today. Being aware of a brand is the first step of choosing a brand in consumer’s mind. So to calculate a brand awareness we should record the Top of Mind brand name (TOM) then we go through spontaneous awareness and aided awareness.


Penetration: penetration means, how the consumer uses your brand. By recording ever use (used in the last 1 year), used currently (used in last 1 month) & used most often we can calculate the penetration factor.


Communication Evaluation: Communication is an important, if not most important, marketing stimuli that companies use to create desired results. A disproportionate amount of marketing budgets are spent on communication to consumers, both ATL and BTL. By evaluating the effect of the advertisement, weather ATL or BTL, we can understand how the company advertisement effects on consumers mind.


Differentiation: basically reveal how brands work differently from each other in the market. We can understand it form the phrases which show the relevance of consumers’ mind to the brand performance. By normalizing the data, each brand finds out its position within their competitors and differentiation reveal.


Relationship: customer’s strength of the relationship with the brand is an important factor that should be figured out by the brand managers. Some sub-indices of this parameter are such as: being recommended to others, amount of increase in the level of spending, being easy to replace.


Profile: the main question is that do brands know what to do with different types of customers they have?


Profiling can be related to the demographic criteria of the consumers as well as their behavior to the brand such as:

  • Idealizes- consumers who have the greatest involvement with the brand
  • Favors- Consumers who consider the brand as one of their most probable purchase options
  • Is familiar with- in this group although consumers are aware of the brand and are free of any negative feelings about it. For them, brand is just one more among many options available in the market.
  • Rejects- This category has consumers who do not consider the possibility of using the brand for various reasons.
  • Is unaware of- These consumers are not aware of the brand

The above stages can be illustrated in different ways, but one of the most common used shapes is a brand pyramid. Actually, brand pyramid is a way of showing brand adoption model and is the outcome of the awareness and penetration part of brand health tracking. Below is the illustration of the brand pyramid:


Brand Pyramid

Above pyramid is not the unique one and based on different studies can have some other layers, but the most common parameters are mentioned in above one.


Taking the correct decision about each parameter that has a low performance is a key factor in improving the brand health and worth. Every above stage needs a particular set of actions to recover if they have low performance. For example, if total awareness of a brand is low, the company should make decisions on doing advertising activities, or if a BUMO is low, the brand should take loyalty program and improve its CRM system.


In the end, brand health index or brand health tracking is one of the useful tools in Iran marketing research area for the brands to understand their strength and worth.


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