Value of a brand shows us the amount of money, for which we can sell our brand. Power of a brand is one of the aspects – it is softer view of brand’s value. 

Brand’s power can tell us if consumer is familiar with a brand. PGM model is relatively new model of measuring and monitoring brands on the basis of consumer’s perception. 

Function of the brand is to sell it to our customers. 

Model’s evolution

There have been two types of consumers, actual and potential ones. From this statement, several brands were developed, such as AID and its derivatins.
Insipration for PGM model was another model, designeed by Lavidg and Steiner. PGM is a tool, which enables us optimum of resources for marketing researches and provides you a fast overview of the dynamics in the market by saving you time and money
As a tool, PGM is consumer-friendly because of its easily understandable graphical presentations (pyramids) and its posibility of transfering results into the other applications and among users.
PGM was created by prominent experts from the field of marketing research and is being performed by the most respected companies in this field of sciences. Its users are some of the biggest companies from the field of consumer goods.

foto:IPAK


Brand strenght in PGM

The basis of our model ist brand’s pyramid.
With its hierarchical structure the marketing model in PGM offers you identification of opportunity and possible problems for specific brand. Comparing to some other tools, the PGM tool is unique because the pyramid for the category is based on all highest conversion rates within the selected category. This indicates currently the strongest possible pyramid in the environment we choose.
The indicators that are shown in the pyramids are:
Recognition, experience, consideration, usage, primary user. There are also other 10 additional indicators and one of them is particularly important. It is called BPI - Brand performance indeks. Its function is clasification of brands on the basis of brand’s power review.

BPI characteristics are:
• To show us brand’s power in 5 mentioned indicators of brand’s pyramid
• Higher levels of pyramid have higher value as lower levels
• BPI has range from 0 to 100. 0 means that nobody in population knows the brand. 100 means that the whole population is using the brand.

 
How does power’s brand look in practice?

* PGM brand’s pyramid from PGM data of 2006 for the regions: Slovenia, Croatia, , BiH, Serbia and Macedonia.

• Extremely high value by Milka chocolate (the strongest brand in region). Value of BPI is 55-65, span of strongest brands
• Comparison between brand’s power of Coffee Grand kava and mineral water Radenska: mineral water Radenska has lower power than Coffee Grand kava, the level of recognition is very low, Coffee Grand Kava has more users and loyal users in region. These levels are not easy to reach and this is why Coffee Grand kava has higher BPI.
• Extremely low value by recognition of Guiness brand. (11 % of consumers know the brand)