Proactive and VWSA clinch title at international marketing conference

Proactive Insight's research director, Jeanette Deetlefs and VWSA marketing research manager Carrin Merkel co-authored the paper on the application of Proactive's proprietary Brand Value Index (BVI) in determining the value and ideal positioning of the Jetta brand when the current model was introduced two years ago.

Proactive and VWSA's pre-launch market share forecast for the current series Jetta was virtually spot-on, with a mere 0,1 percentage point difference between actual and predicted market penetration.

The Proactive BVI offers a traditional brand health check among users and non-users of the brand, but takes this a step further.

"The Proactive BVI distinguishes its ability to predict loyalty and conversion by proving a direct link to market share. If the BVI score increases, so will market share," says Proactive Insight managing director, Albert McLean.

The outright majority of automotive manufacturers in South Africa use the Proactive BVI extensively, while the index is also gaining ground in other sectors.

According to Deetlefs, the BVI also allows Proactive to simulate an accurate value of a brand. "And, perhaps even more useful, it allows us to answer the 'what if' scenario planning questions marketing managers face." In the case of the new Jetta, Deetlefs and Merkel had to determine the effect dramatic design changes and an international name change would have on the marque's market positioning.

Proactive applied a combination of traditional research techniques, including a vehicle clinic and focus groups, in conjunction with their BVI to recommend the ideal vehicle positioning, the name to be used for the new product, and accurate forecasting of market share given the recommended positioning.

Proactive originally developed the BVI in 1995, based on research of 33000 new vehicle owners. This survey tested the relationship of the various attributes that make up the image of a brand. This research was subjected to a structural equation modeling hypothesis in 1997 with the help of academics from Denmark and Belgium, which revealed a direct relationship between the value of a brand and the benefits offered, as well as an indirect relationship with certain of the price issues.

"The BVI allowed us to predict the impact of the design changes and appeal of the new VW Jetta on its market share. It furthermore suggested how the new Jetta could maximise its volumes based on the recommended positioning," Deetlefs explains.

Proactive Insight is the result of the recent merger between Proactive Marketing Research, Insight Customer Satisfaction and Customer Feedback Systems. It is now the second largest market research company in South Africa.

McLean explains that Proactive Insight evolved in response to shifting market requirements. "Customer requirements have altered marketing and a new set of priorities has emerged. The ability to deliver knowledge quickly, in an appropriate format, and with strategic intelligence will define the 'new' research company," says McLean.