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Brand valuation
Presented by,
R. Natarajan
₹3,37,84,71,27,40,000!
Can you say this value in words??
But I can..!
Contents
• Introduction
• Brand value chain
• Methods of valuation
• Interbrand model
• Best brands of 2015
• Applications
• M&A and brand valuation
• Individuals as brands
Brand valuation
• Brand has become an important asset
• Valuating a brand on basis of brand name,
logo
• Different from brand equity
• Valuation is the Financial aspect of brand
where equity is the customer’s perception of
brand
• Gives a common platform to compare brands
across the world
Brand value chain
• The influence of brands on current and
prospective customers significant driver
of economic value.
• By expressing their proposition
consistently across all touchpoints,
brands help shape perceptions, making
products and services less substitutable.
• In this way, brands create demand
• Strong brands also create continuity of
demand into the future, thus making
expected returns more likely – or less
risky.
• Brands, therefore, create economic value
by generating higher returns and growth,
and by mitigating risk.
Methods of valuation
• Income based method
• Market based method
• Cost based method
Interbrand
• Brand consultancy firm, World leader in brand
valuation
• Combines all three methods of valuation and
created a robust valuation method
• Takes all the stakeholders and value-creators
into account
Interbrand model
Top brands of 2015
Top Indian brands of 2015
Applications
Why facebook is the top riser?
M & A and brand value
• Increases brand valuation
• Brand valuation helps in estimating a
company’s value during M&A
• facebook example
Individuals as brands
Ranking Athlete Value
1 Tiger Woods $30 million
2 Phil Mickelson $28 million
T3 LeBron James $27 million
T3 Roger Federer $27 million
5 Mahendra Singh Dhoni $21 million
T6 Usain Bolt $18 million
T6 Kevin Durant $18 million
8 Cristiano Ronaldo $16 million
9 Rory McIlroy $12 million
10 Floyd Mayweather Jr. $11.5 million
Most valued persons
Questions..?

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Brand valuation

  • 2. ₹3,37,84,71,27,40,000! Can you say this value in words??
  • 4. Contents • Introduction • Brand value chain • Methods of valuation • Interbrand model • Best brands of 2015 • Applications • M&A and brand valuation • Individuals as brands
  • 5. Brand valuation • Brand has become an important asset • Valuating a brand on basis of brand name, logo • Different from brand equity • Valuation is the Financial aspect of brand where equity is the customer’s perception of brand • Gives a common platform to compare brands across the world
  • 6. Brand value chain • The influence of brands on current and prospective customers significant driver of economic value. • By expressing their proposition consistently across all touchpoints, brands help shape perceptions, making products and services less substitutable. • In this way, brands create demand • Strong brands also create continuity of demand into the future, thus making expected returns more likely – or less risky. • Brands, therefore, create economic value by generating higher returns and growth, and by mitigating risk.
  • 7. Methods of valuation • Income based method • Market based method • Cost based method
  • 8. Interbrand • Brand consultancy firm, World leader in brand valuation • Combines all three methods of valuation and created a robust valuation method • Takes all the stakeholders and value-creators into account
  • 11. Top Indian brands of 2015
  • 13. Why facebook is the top riser?
  • 14. M & A and brand value • Increases brand valuation • Brand valuation helps in estimating a company’s value during M&A • facebook example
  • 16. Ranking Athlete Value 1 Tiger Woods $30 million 2 Phil Mickelson $28 million T3 LeBron James $27 million T3 Roger Federer $27 million 5 Mahendra Singh Dhoni $21 million T6 Usain Bolt $18 million T6 Kevin Durant $18 million 8 Cristiano Ronaldo $16 million 9 Rory McIlroy $12 million 10 Floyd Mayweather Jr. $11.5 million Most valued persons
  • 17.

Editor's Notes

  1. Brand equity is definitely connected to the customer's perception of the brand, which may or may not be translated to the financial value (brand value). Brand equity is more difficult to estimate because it is a set of customer's perceptions, attitudes, knowledge, and behaviors.
  2. http://www.brandvaluation.co.uk/Brand-Valuation-Issues/Brand-valuation-methods~14.html