Stage 3: Role of Branding Index (RBI)

In this step, we are examining the role Hang Ten plays as a brand in driving demand for its products in the market. The figures that we attribute to the RBI of the 4 segments are an indication of the proportion of intangible earnings attributable to the brand.

For example, the RBI for Youths looking for casual apparel is 40%, which means that if in 2010, Hang Ten had $1 million from the youth segment, $400,000 of the earnings can be said to be “earned by the brand”.

Segments	RBI (%)
A)     Price-conscious individuals ("Aunties", "uncles", foreign workers)	10
B)     Working adults who value simplicity and comfort	20
C)     Youths looking for casual apparel	40
D)     Events-specific purchases (e.g. National Day)	15

In determining the figures for RBI, we conducted secondary research, and re-looked at the qualitative and quantitative studies done previously. The main results of the studies are as follows. It must be noted that the value of RBI for Hang Ten is relatively low because this is a brand that

Segment A: Price-conscious individuals are not as concerned about the brand as about the price of the products. Therefore, we can expect high price elasticity of demand, but that is not the case for brand.

Segment B: Similarly, for working adults, the brand does not matter to them as much as the comfort of the apparel. There is a distinction between Segment A because we expect the latter to be more stringent about prices.

Segment C: We believe branding will have the most impact on youths because they value emotional and social qualities the most and this touches the highest stage of CBBE. If a brand is able to make the wearer feel good, popular and induce positive judgment and feelings, the RBI of the brand will be very high. Currently, Hang Ten is not beyond salience yet, hence our rebranding efforts that aim to build brand equity.

Segment D: Events-specific purchases are usually sporadic, therefore, we do not attribute a high score as the absolute amount of sales are relatively low.