brand valuation methods and strategies-
TRANSCRIPT
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BRAND VALUATION METHODSAND STRATEGIES
Presented By,
Pradeep Choudhary
Omkar Palsuledesai
Vijay Gopalakrishnan
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BRAND VALUATION METHODS
These can be broadly classified into:
Cost based Income based
Market based
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COST BASED METHODS
Book value
Replacement value
Liquidation value
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1.Book value method
Current cost valuation
All assets are taken at current value and summed to
arrive at value This includes tangible assets, intangible assets,
investments, stock, receivables
VALUE = ASSETS - LIABILITIES
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2. Replacement value method
Cost of replacing existing business is taken as
the value of the business
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3. Liquidation value method
Value if company is not a going concern
Based on net assets or piecemeal value of net
assets
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INCOME BASED METHODS
Earnings capitalization method.
Discounted cash flow method (DCF)
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1.Earnings capitalisation method
This method is also known as the Profitearnings capacity value (PECV)
Companys value is determined bycapitalizing its earnings at a rate consideredsuitable
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2.Applicability of DCF method
Cash flow to equity
Discount rate reflects cost of equity
Cash flow to firm
Discount rate reflects weighted average cost of
capital
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Limitations
Companies in difficulty Negative earnings
May expect to lose money for some time in
future
Possibility of bankruptcy
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MARKET BASED METHOD
Also known as relative method
Assumption is that other firms in industry
are comparable to firm being valued Standard parameters used like earnings,
profit, book value
Adjustments made for variances fromstandard firms, these can be negative orpositive
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Applicability
Simple and easy to use
Useful when data of comparable firms and
assets are available
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Limitations
Easy to misuse
Selection of comparable can be subjective
Errors in comparable firms get factored intovaluation model
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Brand StrategyStep of brand strategys success is to check
Where Brand CAN & CANNOT Go.
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Steps in Brand Strategy
Branding Vision
Brand Positioning
Brand Personality
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Types of Branding Strategy
Product Branding
Product-line Branding
Product range Branding Corporate Branding
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Integrated Communications Strategy
Current Beliefs
Current Actions
Message Desired Belief
Desired Actions
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Points of Parity and Difference
BrandConsumers
Competition
Our
PODs
POPsTheir
PODs
.
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Brand Strategy and Marketing Strategy
Brand Strategy is separate from the
4Ps. It guides and inform
decisions about every aspect ofthe marketing mix.
I. Corporate Objectives & Brand Portfolio
II. Marketing Objectives
III. Brand Strategy
Communications Strategy
Product and Pricing Strategy
Channel and Distribution Strategy
IV. Marketing Execution & Monitoring
Strategic Marketing Process
Brand Strategy is an integral part of the overall strategic marketing
process. It helps to bridge the gap between business strategy and
marketing strategy.
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Brand Personality
The purposeof brand personality is to ensure a brandbehaves in a way that is consistent with its values in
orderto increase its appeal and create greater affinity
with its target. Brand personality can also help to
differentiate a brands imagery relative to competitors.
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Brand Elements
Brand Name
Brand Logos and Icons Colors
Symbols
Music/Earcons
Celebrities or Personalities Advertising slogans and jingles
Brand Alliances/Secondary Associations Co-branding
Licensing
Sponsorship Event Marketing
Celebrity Endorsement
Third-party Endorsements
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THANK U all Friends