PRESENTED BY MET STUDENST

Savio Fernandes 16 Rajesh Shetty 47 Austin Trindade 55 Ismile Shaikh 43 Francis Kori 23 Alistar Gomes 18 Amit Singh 49 Rahul Nair 32

Brand valuation pyramid tiers

These can be broadly classified into:

Cost based

Income based

Market based

Book value

Replacement value

Liquidation value

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

Cost of replacing existing business is taken as the value of the business

Value if company is not a going concern

Based on net assets or piecemeal value of net assets

Earnings capitalization method.

Discounted cash flow method (DCF)

This method is also known as the Profit earnings capacity value (PECV)

Company’s value is determined by capitalizing its earnings at a rate considered suitable

Cash flow to equity Discount rate reflects cost of equity

Cash flow to firm Discount rate reflects weighted average cost of

capital

Companies in difficulty Negative earnings May expect to lose money for some time in future Possibility of bankruptcy

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 from standard firms, these can be negative or positive

An example of a hypothetical valuation of a brand in one market segment

SAMPLE BRAND VALUATIONCALCULATION

Simple and easy to useUseful when data of comparable

firms and assets are available

Easy to misuse

Selection of comparable can be subjective

Errors in comparable firms get factored into valuation model

Branding Vision

Brand Positioning

Brand Personality

Product Branding

Product-line Branding

Product range Branding

Corporate Branding

Current Beliefs

Current Actions

MessageDesired Belief

Desired Actions

Brand Consumers

Competition

Our

PODs

POPsTheir PODs

.

Brand Strategy is separate from the 4P’s. It guides and inform decisions

about every aspect of the 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.

Resonance

Consumer Judgments

Consumer Feelings

Brand ImageryBrand Performance

Salience

The purpose of the brand equity pyramid is to outline the basic building blocks of a what the brand should stand for in order to guide the process of building brand equity. It is the basis for determining key elements of the brand strategy – brand vision, brand positioning, and brand personality and brand measurement.

Identity

Relationship

Response

Meaning

The purpose of brand personality is to ensure a brand behaves in a way that is consistent with its values in order

to increase its appeal and create greater affinity with its target. Brand personality can also help to differentiate a

brand’s imagery relative to competitors.

• 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

The contribution of brand to its owners will keep on increasing. Brand is just one of several factors that provide stable competitive advantage. Although many brand measures are available, few can link the brand to long- term financial value creation. Brand investments and their results are not followed in detail nearly as much as investments in other assets. As the importance of intangibles to companies increases, managers will inevitably need to install more value-based brand management systems that can align the management of the brand asset with that of other corporate assets and provide more reliable indicators on contribution of brand to the overall business performance. For that purpose, it is necessary to amend accounting standards. As the need for brand valuation is constantly increasing from both the management and the market, the first and most important step is the development of a unique economic use approach to brand valuation. Such a system may well become the most important management tool in the future.

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