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BAV Solves Your Crisis!
BAV Consulting can help brands facing crises by measuring brand health, developing valuation models, tracking brand equity consistently, and assessing the impact of events on brand value. For Brand X, BAV analyzed how its crisis reduced perceived brand attributes and financial performance over time. While global sales remained flat, market value fell from $709 million in 2006 to $384 million in 2010. BAV proposes ways to work with Brand X, such as identifying experts to assess the crisis impact and developing recovery strategies.
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BAV Solves Your Crisis!
- 1. BAV Can SolveYour Brand Crisis!
- 2. 7/19/2013 2 Case study:the impact of a crisis on brand value Using a combination of financial and brand data, BAC determined Brand X’s implicit market value Source: Brand data and BrandAsset® Valuator Market to Sales Ratio Return on Sales Sales Market Value Relevance Rugged Brand Stature Unique & Visionary Internationally Brand Metrics 10 12 14 16 18 20 2.5 3 3.5 4 4.5 5 05Q1 05Q2 05Q3 05Q4 06Q1 06Q2 06Q4 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3 09Q4 10Q1 10Q2 10Q3 10Q4 11Q1 Brand Stature Relevance Rugged The brand’s perceptions on these dimensions have fallen over time; improving them would strengthen the brand’s financial performance and valuation Financial Metrics 28.50% 71.50% Brand contribution $274M $110M Percentage of Brand contribution to Market Value 0 100,000,000 200,000,000 300,000,000 400,000,000 500,000,000 600,000,000 700,000,000 800,000,000 2006 2007 2008 2009 2010 Implicit Market Value $384M $709M $193M Market Value Brand Performance(US) Construct score Percentage score
- 3. 7/19/2013 3 Many factorsinfluenced the brand’s business’ decline in value Ba d p r e s s Co mp e t i t i o n Co mp e t i t i v e c a n n i b a l i z a t i o n L i mi t e d i n v e s t me n t i n Br a n d
- 4. 7/19/2013 4 Brand X’sUS and European sales declined sharply after the crisis. While Latin America shows signs of recovery from a recent drop, Asia Pacific shows the most growth since 2006 Source: Brand Financial Data 2005-2011 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 200… 200… 200… 200… 200… 200… 200… 200… 200… 200… 200… 200… 200… 200… 200… 200… 200… 200… 200… 200… 201… 201… 201… 201… 201… US Net Sales $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 2006 2007 2008 2009 2010 EU Net Sales $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 2006 2007 2008 2009 2010 LA Net Sales $0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 2006 2007 2008 2009 2010 AP Net Sales Brand X Regional Sales
- 5. 7/19/2013 5 Implicit MarketValue of the brand = Market-to-Sales multiplier * Sales 2010 Market Value ($384M) Market to Sales Ratio (1.8) Return on Sales (21.6%) Sales ($213M, Global)
- 6. 7/19/2013 6 In 2006,Brand X had a market value of nearly $709M, which has fallen to just below $384M today, despite overall flat global sales Source: BrandAsset® Valuator International Data 2005-2011 0 100,000,000 200,000,000 300,000,000 400,000,000 500,000,000 600,000,000 700,000,000 800,000,000 0 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 2006 2007 2008 2009 2010 Total Global Sales Implicit Market Value $384M $709M Global Sales Brand Valuation $193M
- 7. 7/19/2013 • Measure brandhealth of brands insured • Develop sector valuation models for all brands insured • Track brand equity of insured brands consistently in the database • Assess impact of crises and events to brand value • Identify academics who can serve as experts on the impact of the crisis or event to the brand value 7 Ways BAV and Brand X can work together
- 8. 7/19/2013 BAV® Consulting 3 ColumbusCircle New York, NY 10019 www.bavconsulting.com 8 BAV® Consulting TeamBAV® Consulting Team 8 Anne Rivers SVP, Brand Director 917.836.9884 212.210.3553 gbedi@bavconsulting.com Geetu Bedi Vice President 917.858.3926 212.210.4108 arivers@bavconsulting.com Huei-Yu Lin Brand Analyst hlin@bavconsulting.com Oliver Palley Brand Analyst opalley@bavconsulting.com Liza Rtischev Brand Analyst lrtishchev@bavconsulting.co m Jennifer Xue Brand Analyst jxue@bavconsulting.com Anna Blender Brand Consultant ablender@bavconsulting.com Jessica Li Senior Brand Analyst jli@bavconsulting.com Swati Bhargava Brand Consultant sbhargava@bavconsulting.co m