Methodologies for Brand Valuation of Quality Marks / Labels.

1. Brand Valuation Methodologies
(For Silk Mark Brand)
Conceived–Developed by:
PKS Management Consultants
Bangalore
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2. Index
S. No. Topic Sl No.
1. Problem statement 4
2. About PKS 5
3. Background discussions 6-7
4. PKS-BV-Methodology No. 1 9-13
5. PKS-BV-Methodology No. 2 15-18
6. PKS-BV-Methodology No. 3 20-22
7. Decision making 24-26
8. Disclaimer 27
9. Team 29
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3. 3

4. 1. Problem Statement
• To identify the brand value of Silk Mark
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5. 2. About PKS
• PKS Management consultants is a generalist
business management consulting and internal
audit company.
• We help our clients do better!!
• Started in: 2012
• GST: 29AYMPS8310H1ZX
• MSME UAM: KR 03 A 00 69 159
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6. 3. Background discussions
• We are considering silk mark as a Label/Mark
which helps in pushing the sale of silk items.
• To our mind silk mark enhances the brand
value of silk outlets.
• There are no full-proof methods to arrive at
the brand valuation. Every methodology will
have its own pros and cons.
• Brand valuation can be based upon
on Cost, Price and Consumers.
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7. 3. Background discussions (Contd…)
• Methodologies can be a combination of
subjective and objective assessments.
• Our methodologies are based upon the ISO
10668 loosely.
• Objectives of brand valuation need to be
identified.
• We suggest that proper discussions with client
are must to arrive at the best methodologies.
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8. 8

9. 4. PKS-BV-Methodology 1
 Core Idea: Identify how much silk mark is
helping in selling the item.
 Description:
• Say in decision making by buyer it helps in
pushing the Item1 by X1%.
• Now monetized this X1% and say this is M1.
• Now repeat it for Item2 and say it is M2.
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10. 4. PKS-BV-Methodology 1 (Contd…)
• If the total number of Items1 are N1.
• And the total number of Items2 are N2
• Thus we will get the brand value (BV) of the
silk mark by
• BV= M1*N1 +M2*N2 +…...+Mn*Nn
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11. 4. PKS-BV-Methodology 1 (Contd…)
 How to find out the magic number Xn?
• A sample survey will be needed. And average
of that survey will give this Xn.
 How to Monetize this Xn to Mn?
• Put a percentage value on the average price of
item (depending upon the item)
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12. 4. PKS-BV-Methodology 1 (Contd…)
 Example:
• We did a survey for a specific saree (Item1) of
10,000 Rs.
• Found that average push rate for that Item1, (X)
is 20 %.
• Now Monetize value (M) can be taken as 20% of
item = 2000/-
• If (N) 100 sarees are sold.
• BV (Item1) = M*N = 2000*100 = 2,00000/-
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13. 4. PKS-BV-Methodology 1 (Contd…)
• Net BV = BV (Item1) + BV (Item2)… + BV (Item {n})
 Extension: This basic equation can be
extended depending upon the past sales,
future projections and other variables.
 Pros: Gives fair presentation of actual value
creation by the silk mark.
 Cons: Not very easy to collect data for every
item with silk mark in huge amounts.
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14. 14

15. 5. PKS-BV-Methodology 2
 Core Idea: Controlled experiment to
know the preference of silk mark
products
 Description:
• Have two identical shops or counters.
• One having silk mark items and other
without the silk mark.
• Buyer must be able to find out which
portion is for which.
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16. 5. PKS-BV-Methodology 2 (Contd…)
• Now find out the yearly sales of both the
counters.
• Difference between the estimated sales from
both the counters or shops will give the value
of silk mark for the particular duration.
 Example: Say for silk mark it is 120 Lakhs, for
other 100 Lakhs. Difference is 20 L. It will give
BV for one year for that one counter/shop for
the simulated duration.
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17. 5. PKS-BV-Methodology 2 (Contd…)
• So on 120 Lakhs turnover BV is 20 Lakhs.
• Now assume Overall turnover of silk mark =
100 Cr.
• Net BV for 100 Cr = 20*10000/120 = 1667 Lakhs
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18. 5. PKS-BV-Methodology 2 (Contd…)
 Extension: This basic equation can be
extended depending upon the past sales,
future projections and other variables.
 Pros: Represents simulated picture of the
brand valuation, customer awareness and
needs.
 Cons: Expensive method of data collection.
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19. 19

20. 6. PKS-BV-Methodology 3
 Core Idea: Brand awareness of silk mark
 Description: Let us say brand awareness is X.
Now in simplest form, brand valuation will be
X% of total silk items turnover. This brand
valuation is to be found out using the survey
method. A sample group of customers have to
be involved for conducting the survey so as to
determine the quantitative value of awareness
(X) of the silk mark.
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21. 6. PKS-BV-Methodology 3 (Contd…)
 Example:
• We created a survey questionnaire to
gauge the brand awareness of silk mark.
• Now after analysis of the survey, average
came out to be = 30%.
• Total turnover of overall silk items sale in
India = 500 Cr
• BV for that year = 30% of 500 Cr = 150 Cr.
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22. 6. PKS-BV-Methodology 3 (Contd…)
 Extension: This basic equation can be
extended depending upon the past sales,
future projections and other variables.
 Pros: Approximation of awareness of
customers regarding the quality standards in
silk market especially silk mark through
market survey is fairly easy.
 Cons: Sample dependent and may not depict
the fair picture.
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24. 7. Decision making
• Decide the core methodology.
• Extend it as per the requirements.
• Get the formal engine (equation) ready.
• Get the third party data (s
• urvey data).
• Put the data into the engine.
• You will get the brand value.
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25. 7. Decision making (Contd…)
• You can opt for two methodologies.
• Get the respective results.
• You can average them.
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26. 7. Decision Making (Contd...)
• It will be the best if two separate companies.
work on the same core methodologies.
• You can compare the results.
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27. 8. Disclaimer
• All the proposed methods must be considered
work- in-progress.
• Please feel free to use our methodologies.
• It is our gift to you!!
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29. 9. Team
• Sfoorti
• Sumit
• Priyanshi
• Radhika
• Gawakshi
• Nitin
• Sharada
• Pramod
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30. 30

31. An artefact of
PKS Management Consultants
+91 – 97411 94285
# 9, Site No. 14/15 B, 1st Vivekanda Layout
Outer Ring Road, Marathalli
Bangalore -560037
pramod@pksmanagementconsultants.com
www.pksmanagementconsultants.com
Images courtesy: Google, with respective trademarks
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32. Thanks!!
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