1. Prepared and Presented by Group 02 SPFINACC B10 December 2, 2008 The Hidden Power of Your Brand ESCALO • ESPIRITU • GOMEZ • LABRADOR • LEE MARKETING MANAGEMENT Brand Equity & Brand Valuation AUGUST 6, 2010 GROUP 4
2. Prepared and Presented by Group 02 SPFINACC B10 December 2, 2008 What is a “brand?” Brand Equity vs Brand Valuation How can you make your brand work for you? The Hidden Power of Your Brand Brand Equity & Brand Valuation
6. VALUE PROFITABILITY GROWTH RISK FINANCIAL SIGNIFICANCE CONSUMERS SUPPLIERS STAFF INVESTORS How Can You Make Your Brand Work For You?
7. Prepared and Presented by Group 02 SPFINACC B10 December 2, 2008 The Hidden Power of Your Brand ESCALO • ESPIRITU • GOMEZ • LABRADOR • LEE MARKETING MANAGEMENT Brand Equity & Brand Valuation AUGUST 6, 2010 GROUP 4
Editor's Notes
Your brand is more than just a name or a logo. Today we are going to tell you about its “HIDDEN POWER.” We will discuss WHAT a brand is Then we will differentiate BRAND EQUITY and BRAND VALUATION: both hidden powers of your brand And most importantly, we will show you HOW you can manage these hidden powers to boost your brand
To start, here are a few brands that you might be familiar with. DO YOU RECOGNIZE ANY OF THESE BRANDS? If you do, and if you associate good experiences with these brands, then most probably they are brands of good value. In fact, 3 of the brands shown here (Apple, Macintosh and McDonalds) are part of the Top 10 Most Valuable Global Brands of 2010.
To understand what makes a brand a good brand, we have to know WHAT a brand is. A brand, to put it simply, is made up of SYMBOLS, EXPERIENCES and ASSOCIATIONS connected with a particular entity. (For example, when you see the Jollibee brand, what are the images or words that come to mind? Are they good experiences? Specific products or taglines? All of that make up the “brand.”).
The “hidden powers” of the brand lie in its BRAND EQUITY or BRAND VALUE. These 2 give that extra “oomph” to your brand. Brand Equity: ultimately resides in the mind of the consumer Brand Value: financial value which takes into consideration many intangible factors also OR intangible factors that translate to financial value
Now that you are aware of the hidden powers of your brand, you have to manage it properly to make your brand work for you. (with great power comes great responsibility, etc) You have to be aware of the components that add value to your brand: PROFITABILITY, GROWTH, RISK (expound) Profitability - level of free cash flow generated by a company Growth - the prospects for increasing those cash flows Risk - volatility of these cash flows You also have to be aware of the needs of the following players which affect the financial significance of the brand (shareholders): Consumers -brand health drives both profitability and growth Suppliers - lower costs/ higher profitability Staff - lower costs/ higher profitability Investors/Financiers - lower funding costs
We hope our presentation has helped you understand the power of your brand. Thank you!
