The document discusses brand valuation and the Interbrand model for calculating brand value. It summarizes the key aspects of the Interbrand methodology which includes analyzing the financial performance, role of the brand, and brand strength to determine the economic value generated by a brand. The brand value is calculated by multiplying the economic profits by the role of brand index, and then discounting it using the brand strength score-derived discount rate. The document provides an example valuation of the Colgate and Dabur brands in India using a variation of this model.
MyGlamm is an Indian e-commerce company that sells beauty and cosmetic products, including makeup, skincare, and accessories. Founded in 2015, it operates an online marketplace and offers on-demand beauty services through a network of professionals. The company has a wide range of private label and partner brands, with products shipped across India and a flexible return policy for defective items.
The document provides an analysis of brand valuation for Cadbury Dairy Milk chocolate in India using the Interbrand methodology. It summarizes the brand equity analysis conducted in Phase 2 and then performs brand valuation in Phase 3. Key information used includes financial data from 2009-2011, assumed growth rates, and industry benchmarks. The analysis determines the Role of Brand Index and Brand Strength Score for Cadbury Dairy Milk and Cadbury 5 Star. It finds that Cadbury Dairy Milk has high brand strength and moderate role of brand, indicating potential to leverage the brand into new categories like cookies and cakes.
L'Oreal is the world's largest cosmetics company, headquartered in France. It develops and markets cosmetic products across hair color, skin care, sun protection, makeup, perfumes, and hair care. L'Oreal aims to provide the best quality cosmetic products to consumers worldwide through innovation and research. It currently markets over 500 brands across the beauty industry. With over 77,000 employees globally, L'Oreal invests heavily in research and development, with a budget of over $857 million in 2013. The company's core strategies include broadening its customer base, changing business operations, and increasing spending on research, promotion and advertising.
Assessing Your Brand Architecture August 2015Carol Phillips
THIS PRESENTATION IS OLD. SEE UPDATED VERSION 2019.
Learn more about how to optimize Brand Architecture to provide a clear and leverage able ‘face’ for your business strategy.
Procter & Gamble (P&G) is an American multinational consumer goods corporation founded in 1837 and headquartered in Cincinnati, Ohio. P&G specializes in a wide range of personal health, consumer health, and personal care products organized into several segments including beauty, grooming, health care, fabric and home care, and baby/feminine/family care. P&G's product portfolio includes over a dozen brands that each generate over $1 billion in annual sales, such as Tide, Pampers, Always, Head & Shoulders, Olay, Old Spice, Bounty, Charmin, Crest, and Gillette.
P&G is the world's largest consumer goods company and operates in India through subsidiaries. To strengthen its presence in India and increase sales 20-fold by 2015, P&G India launched "Project 2-3-4" aiming to double users, triple spending per user, and quadruple net sales. P&G distributes products through a limited number of large distributors to extend reach across India in an efficient and high-volume manner.
Hindustan Unilever (HUL) uses a hybrid distribution network in Kolkata, combining direct coverage of over 1 million stores with indirect coverage through a network of over 7,000 stockists and distributors. For the Dove soap brand in Kolkata specifically, HUL relies on a central & forwarding (C&F) agent who supplies products to authorized stockists classified as U1 and U2. These stockists then distribute to around 700-900 retail outlets each. HUL closely monitors inventory levels and sales through an eCRM software system.
MyGlamm is an Indian e-commerce company that sells beauty and cosmetic products, including makeup, skincare, and accessories. Founded in 2015, it operates an online marketplace and offers on-demand beauty services through a network of professionals. The company has a wide range of private label and partner brands, with products shipped across India and a flexible return policy for defective items.
The document provides an analysis of brand valuation for Cadbury Dairy Milk chocolate in India using the Interbrand methodology. It summarizes the brand equity analysis conducted in Phase 2 and then performs brand valuation in Phase 3. Key information used includes financial data from 2009-2011, assumed growth rates, and industry benchmarks. The analysis determines the Role of Brand Index and Brand Strength Score for Cadbury Dairy Milk and Cadbury 5 Star. It finds that Cadbury Dairy Milk has high brand strength and moderate role of brand, indicating potential to leverage the brand into new categories like cookies and cakes.
L'Oreal is the world's largest cosmetics company, headquartered in France. It develops and markets cosmetic products across hair color, skin care, sun protection, makeup, perfumes, and hair care. L'Oreal aims to provide the best quality cosmetic products to consumers worldwide through innovation and research. It currently markets over 500 brands across the beauty industry. With over 77,000 employees globally, L'Oreal invests heavily in research and development, with a budget of over $857 million in 2013. The company's core strategies include broadening its customer base, changing business operations, and increasing spending on research, promotion and advertising.
Assessing Your Brand Architecture August 2015Carol Phillips
THIS PRESENTATION IS OLD. SEE UPDATED VERSION 2019.
Learn more about how to optimize Brand Architecture to provide a clear and leverage able ‘face’ for your business strategy.
Procter & Gamble (P&G) is an American multinational consumer goods corporation founded in 1837 and headquartered in Cincinnati, Ohio. P&G specializes in a wide range of personal health, consumer health, and personal care products organized into several segments including beauty, grooming, health care, fabric and home care, and baby/feminine/family care. P&G's product portfolio includes over a dozen brands that each generate over $1 billion in annual sales, such as Tide, Pampers, Always, Head & Shoulders, Olay, Old Spice, Bounty, Charmin, Crest, and Gillette.
P&G is the world's largest consumer goods company and operates in India through subsidiaries. To strengthen its presence in India and increase sales 20-fold by 2015, P&G India launched "Project 2-3-4" aiming to double users, triple spending per user, and quadruple net sales. P&G distributes products through a limited number of large distributors to extend reach across India in an efficient and high-volume manner.
Hindustan Unilever (HUL) uses a hybrid distribution network in Kolkata, combining direct coverage of over 1 million stores with indirect coverage through a network of over 7,000 stockists and distributors. For the Dove soap brand in Kolkata specifically, HUL relies on a central & forwarding (C&F) agent who supplies products to authorized stockists classified as U1 and U2. These stockists then distribute to around 700-900 retail outlets each. HUL closely monitors inventory levels and sales through an eCRM software system.
In this case study, learn how Cathay Pacific uses social data to help inform the whole business, globally.
“Brandwatch helps us measure how many people are currently talking about an issue. This allows us to gauge how big the impact is. We can then be proactive with our updates and any communications with passengers.”
Priscilla Chok, Cathay Pacific
Cadbury sales force & channel managementMudit Bhargava
Cadbury India enjoys over 67% value market share in the chocolate category in India. Cadbury's brand Dairy Milk is considered the gold standard for chocolates. Cadbury operates in five categories: chocolates, beverages, biscuits, candy and gum. Cadbury's sales and distribution structure involves multiple levels including distributors, super stockists, and retailers. Cadbury uses various incentives and rewards to motivate its sales force and channel partners to meet sales targets. Cadbury's products are distributed through both traditional trade channels and modern trade channels like large retail stores.
This document is Hemas Holdings PLC's sustainability report for 2014/15. It provides an overview of Hemas' businesses, which include healthcare, fast moving consumer goods, leisure, and transportation. The report discusses Hemas' vision and sustainability framework, stakeholder engagement, and performance across economic, social, and environmental areas. It also includes a GRI index and information on Hemas' subsidiaries. The report is Hemas' first sustainability report and covers its operations in Sri Lanka.
Dove is a skincare brand owned by Unilever that was launched in 1957. In the 1970s, Dove increased in popularity as a milder soap. In the 2000s, Dove launched campaigns promoting "real beauty" by featuring ordinary women. This helped shift perceptions of beauty away from unrealistic standards. Dove also began the Self Esteem Project in 2002 to help raise girls' self-confidence. Through its campaigns and focus on diversity, Dove has grown its brand value while also facing some controversies related to Unilever's other brands.
Nestlé is the world's largest food and beverage company with over 2,000 brands. In the UK, Nestlé is strongly associated with confectionary, coffee, and cereal brands like KitKat, Nescafé, and Shreddies. While Nestlé has negative perceptions due to past issues, it maintains a 15% market share in confectionary through strong branding of popular brands. Nestlé uses brand acquisitions and innovations to enhance its image and limit competitive threats.
The document discusses brand identity and branding strategies. It defines a brand as the perception customers have about a product or service. It then describes the Brand Identity Prism model which examines a brand across six dimensions: physique, personality, culture, relationship, reflection, and self-image. The model helps position a brand, design marketing strategies, communicate the brand identity, and streamline marketing campaigns. The document provides examples of branding strategies such as brand extension, line extension, and family branding used by various companies.
The document discusses trends in the Indian skincare market and provides a framework for positioning a new brand called Brand Therapist. Key trends include skincare becoming more mature and focused on health, science-backed formulations, and holistic wellness. Emerging segments include advanced fairness solutions, sun protection, and anti-aging. The market is very cluttered, so differentiation and a clear proposition will be important for the new brand.
This document provides a marketing communication plan for repositioning Pond's talc powder in the Sri Lankan market. It analyzes the cosmetics market and Pond's competitors. The plan segments the target market and identifies a new positioning for Pond's as a high-quality product for teenagers and young adults. A marketing mix is developed using new branding, packaging, pricing, and placement. Communication strategies include advertising, public relations, sales promotions, and using a celebrity brand ambassador. The budget allocates 12% for the campaign launching in March 2015.
The L'Oréal Group is the world's largest cosmetics and beauty company, with its registered office in Paris and head office in France. It operates through four divisions: Consumer Products, Professional Products, Active Cosmetics, and Luxury Products. Some of its major brands include L'Oréal Paris, Garnier, Maybelline, L'Oréal Professionnel, Vichy, Lancôme, Biotherm, and Giorgio Armani.
Spencers retail limited : Repositioning in a changing retail environment - Ca...Bonny V Pappachan
Spencer's Retail Limited is the largest supermarket chain in India, operating over 350 stores under four formats: Spencer's express, daily, super, and hyper. It was founded in 1863 and is headquartered in Kolkata. Spencer's introduced its "Taste the World" concept to provide customers with a futuristic international shopping experience through store design and merchandise from around the world. A SWOT analysis identified strengths in branding and promotions, while weaknesses included high costs and supplier bargaining power. Big competitors included Reliance, Pantaloons, Bharati Walmart, and Big Bazaar. Spencer's uses strategies like product variety, pricing, store locations, and advertising to attract customers. However, a customer satisfaction
Revlon is a global cosmetics brand sold in 175 countries that was founded in the 1930s and has grown through acquisitions, new product lines, and celebrity endorsements. The document outlines Revlon's history, international expansion, product portfolio including collections and top-selling items, retail strategy focusing on modern outlets, and marketing approach involving brand ambassadors. It also provides a SWOT analysis of the company and its strategy to position itself as a premium beauty brand in India through price increases and new launches.
This document discusses Hindustan Unilever Limited (HUL), a leading Fast Moving Consumer Goods (FMCG) company in India. It provides an overview of HUL's history, financial performance, product portfolio, competitors, and marketing strategies. HUL has a variety of soap, personal care and food brands. It utilizes a multi-tier distribution network to reach both urban and rural markets nationwide. The company employs product segmentation, innovative branding, and celebrity endorsements in its promotional activities. While HUL dominates the Indian FMCG sector, it faces growth challenges from rising competition and changing consumer preferences.
This document discusses the creation of a luxury brand. It begins by defining luxury and luxury brands, noting that luxury involves great expense and comfort. It then discusses some of the largest luxury goods producers like LVMH. It explores the birth of luxury brands and how advertising expenditure is typically 5-15% of sales revenue. The document then examines rational and emotional aspects of luxury brands and different luxury sectors. It outlines eight pillars of luxury branding: performance, pedigree, paucity, persona, public figures, placement, PR, and pricing. Finally, it provides insights into marketing luxury brands in India, including that Indian consumers are brand conscious but price sensitive and have high expectations of service.
Diageo is a global spirits and beer company formed through mergers in 1997. It focuses on premium brands and has a diverse portfolio including Johnnie Walker, Smirnoff, Guinness, and others. Diageo uses acquisitions, geographic segmentation, complete category participation, and priority brand marketing to grow globally. It targets high-growth markets and categories. Diageo tailors its marketing strategies to different regions, emphasizing sponsorship and relationships in North America and sports in Australia.
Eureka Forbes is a leading direct sales company in India that sells water purifiers and vacuum cleaners. It has over 220 offices across 132 cities that are staffed by 'EuroChamps' sales professionals. The company relies on direct marketing through 2,80,000 home visits conducted daily by 'EuroSathis' franchisees to educate customers and maintain relationships. Eureka Forbes reaches over 1650 towns across 82% of urban India through this direct sales network and mailers that promote the health benefits of its water purifiers. The company also provides job opportunities for differently abled individuals and emphasizes growth and a supportive work culture.
ITC is one of India's largest conglomerates with diversified businesses including FMCG, hotels, paperboards, packaging, agri-business, and IT. It is a market leader in traditional businesses like hotels, paperboards, packaging, agri-exports, and cigarettes. The document provides an overview of ITC's vision, mission, products, revenues, employees, and eChoupal initiative to connect with rural farmers.
Secondary Brand Association - Leveraging Secondary Brand Associations to Buil...TanveerHossainRayvee
This document discusses various ways that brands can leverage secondary associations to build brand equity through three main strategies: creating strong favorable associations, reinforcing existing associations, and creating positive responses if existing associations fail. It provides examples of leveraging associations through company affiliations, country of origin, co-branding, celebrity endorsements, sponsored events, and endorsements from third-party sources. The case study examines how the brand Lifebuoy leveraged its association with Bangladeshi cricket star Shakib Al Hasan to promote its "Khelbe Tiger, Jitbe Tiger" campaign during the 2019 World Cup.
Marico Limited is an Indian consumer goods company founded in 1857 and headquartered in Mumbai. It produces coconut and edible oils, hair oils, hair care products, fabric care products, and personal care products which it sells in India and internationally. The company aims to put consumers first, promote excellence and innovation, and generate wealth for shareholders and growth. Its brand portfolio includes Parachute, Saffola, Hair & Care, Shanti Amla, and others. Managing its brand portfolio effectively allows it to utilize resources optimally, prioritize growth areas, increase efficiency, provide clarity to customers, and create leverage across brands.
This document provides an overview and analysis of Hindustan Unilever Limited (HUL). It discusses HUL's history, product portfolio, distribution network, rural market strategies, M&A strategy, core competencies, PESTLE analysis, SWOT analysis, Porter's Five Forces analysis, value chain and other strategic frameworks. Key points include:
1) HUL is India's largest FMCG company with over 80 years of history and 400+ brands including Lifebuoy, Surf Excel, Fair & Lovely, and Vaseline.
2) It has a wide distribution network reaching over 7 million outlets through over 7,000 redistribution stockists.
3) HUL's Project Sh
Tesco is a large international retailer that sells groceries, furniture, and other products. It employs over 360,000 people worldwide. Its objectives are long-term growth, market dominance, expansion into global markets, and strong customer loyalty through excellent service. To achieve these objectives, Tesco recruits and selects qualified employees, provides training and development opportunities, offers competitive compensation and benefits, and maintains good relationships with its workforce.
The document summarizes a study conducted to measure the brand equity of Colgate toothpaste using a modified version of the Winning Brands model of brand equity measurement. The study measured consumer loyalty, ability to charge a price premium, and brand leveragability. It found that Colgate has the highest Brand Equity Index of 6.415 out of 10, compared to indexes of 3.703 for Pepsodent and 2.421 for Dabur. Colgate's strong brand equity is attributed to its high consumer loyalty and ability to charge a price premium, though it is not considered a highly leveragable brand.
The report summarizes a study measuring the brand equity of Colgate toothpaste using a modified version of the Winning Brands model. The study measured consumer loyalty, price premium, and brand leveragability for Colgate compared to four other toothpaste brands. It found that Colgate has the highest Brand Equity Index of 6.415, indicating it can best withstand changes in the market. However, Colgate is not the most leveragable brand and can primarily extend to similar oral care products only. Regression analysis showed awareness and health associations most influence Colgate's brand equity.
In this case study, learn how Cathay Pacific uses social data to help inform the whole business, globally.
“Brandwatch helps us measure how many people are currently talking about an issue. This allows us to gauge how big the impact is. We can then be proactive with our updates and any communications with passengers.”
Priscilla Chok, Cathay Pacific
Cadbury sales force & channel managementMudit Bhargava
Cadbury India enjoys over 67% value market share in the chocolate category in India. Cadbury's brand Dairy Milk is considered the gold standard for chocolates. Cadbury operates in five categories: chocolates, beverages, biscuits, candy and gum. Cadbury's sales and distribution structure involves multiple levels including distributors, super stockists, and retailers. Cadbury uses various incentives and rewards to motivate its sales force and channel partners to meet sales targets. Cadbury's products are distributed through both traditional trade channels and modern trade channels like large retail stores.
This document is Hemas Holdings PLC's sustainability report for 2014/15. It provides an overview of Hemas' businesses, which include healthcare, fast moving consumer goods, leisure, and transportation. The report discusses Hemas' vision and sustainability framework, stakeholder engagement, and performance across economic, social, and environmental areas. It also includes a GRI index and information on Hemas' subsidiaries. The report is Hemas' first sustainability report and covers its operations in Sri Lanka.
Dove is a skincare brand owned by Unilever that was launched in 1957. In the 1970s, Dove increased in popularity as a milder soap. In the 2000s, Dove launched campaigns promoting "real beauty" by featuring ordinary women. This helped shift perceptions of beauty away from unrealistic standards. Dove also began the Self Esteem Project in 2002 to help raise girls' self-confidence. Through its campaigns and focus on diversity, Dove has grown its brand value while also facing some controversies related to Unilever's other brands.
Nestlé is the world's largest food and beverage company with over 2,000 brands. In the UK, Nestlé is strongly associated with confectionary, coffee, and cereal brands like KitKat, Nescafé, and Shreddies. While Nestlé has negative perceptions due to past issues, it maintains a 15% market share in confectionary through strong branding of popular brands. Nestlé uses brand acquisitions and innovations to enhance its image and limit competitive threats.
The document discusses brand identity and branding strategies. It defines a brand as the perception customers have about a product or service. It then describes the Brand Identity Prism model which examines a brand across six dimensions: physique, personality, culture, relationship, reflection, and self-image. The model helps position a brand, design marketing strategies, communicate the brand identity, and streamline marketing campaigns. The document provides examples of branding strategies such as brand extension, line extension, and family branding used by various companies.
The document discusses trends in the Indian skincare market and provides a framework for positioning a new brand called Brand Therapist. Key trends include skincare becoming more mature and focused on health, science-backed formulations, and holistic wellness. Emerging segments include advanced fairness solutions, sun protection, and anti-aging. The market is very cluttered, so differentiation and a clear proposition will be important for the new brand.
This document provides a marketing communication plan for repositioning Pond's talc powder in the Sri Lankan market. It analyzes the cosmetics market and Pond's competitors. The plan segments the target market and identifies a new positioning for Pond's as a high-quality product for teenagers and young adults. A marketing mix is developed using new branding, packaging, pricing, and placement. Communication strategies include advertising, public relations, sales promotions, and using a celebrity brand ambassador. The budget allocates 12% for the campaign launching in March 2015.
The L'Oréal Group is the world's largest cosmetics and beauty company, with its registered office in Paris and head office in France. It operates through four divisions: Consumer Products, Professional Products, Active Cosmetics, and Luxury Products. Some of its major brands include L'Oréal Paris, Garnier, Maybelline, L'Oréal Professionnel, Vichy, Lancôme, Biotherm, and Giorgio Armani.
Spencers retail limited : Repositioning in a changing retail environment - Ca...Bonny V Pappachan
Spencer's Retail Limited is the largest supermarket chain in India, operating over 350 stores under four formats: Spencer's express, daily, super, and hyper. It was founded in 1863 and is headquartered in Kolkata. Spencer's introduced its "Taste the World" concept to provide customers with a futuristic international shopping experience through store design and merchandise from around the world. A SWOT analysis identified strengths in branding and promotions, while weaknesses included high costs and supplier bargaining power. Big competitors included Reliance, Pantaloons, Bharati Walmart, and Big Bazaar. Spencer's uses strategies like product variety, pricing, store locations, and advertising to attract customers. However, a customer satisfaction
Revlon is a global cosmetics brand sold in 175 countries that was founded in the 1930s and has grown through acquisitions, new product lines, and celebrity endorsements. The document outlines Revlon's history, international expansion, product portfolio including collections and top-selling items, retail strategy focusing on modern outlets, and marketing approach involving brand ambassadors. It also provides a SWOT analysis of the company and its strategy to position itself as a premium beauty brand in India through price increases and new launches.
This document discusses Hindustan Unilever Limited (HUL), a leading Fast Moving Consumer Goods (FMCG) company in India. It provides an overview of HUL's history, financial performance, product portfolio, competitors, and marketing strategies. HUL has a variety of soap, personal care and food brands. It utilizes a multi-tier distribution network to reach both urban and rural markets nationwide. The company employs product segmentation, innovative branding, and celebrity endorsements in its promotional activities. While HUL dominates the Indian FMCG sector, it faces growth challenges from rising competition and changing consumer preferences.
This document discusses the creation of a luxury brand. It begins by defining luxury and luxury brands, noting that luxury involves great expense and comfort. It then discusses some of the largest luxury goods producers like LVMH. It explores the birth of luxury brands and how advertising expenditure is typically 5-15% of sales revenue. The document then examines rational and emotional aspects of luxury brands and different luxury sectors. It outlines eight pillars of luxury branding: performance, pedigree, paucity, persona, public figures, placement, PR, and pricing. Finally, it provides insights into marketing luxury brands in India, including that Indian consumers are brand conscious but price sensitive and have high expectations of service.
Diageo is a global spirits and beer company formed through mergers in 1997. It focuses on premium brands and has a diverse portfolio including Johnnie Walker, Smirnoff, Guinness, and others. Diageo uses acquisitions, geographic segmentation, complete category participation, and priority brand marketing to grow globally. It targets high-growth markets and categories. Diageo tailors its marketing strategies to different regions, emphasizing sponsorship and relationships in North America and sports in Australia.
Eureka Forbes is a leading direct sales company in India that sells water purifiers and vacuum cleaners. It has over 220 offices across 132 cities that are staffed by 'EuroChamps' sales professionals. The company relies on direct marketing through 2,80,000 home visits conducted daily by 'EuroSathis' franchisees to educate customers and maintain relationships. Eureka Forbes reaches over 1650 towns across 82% of urban India through this direct sales network and mailers that promote the health benefits of its water purifiers. The company also provides job opportunities for differently abled individuals and emphasizes growth and a supportive work culture.
ITC is one of India's largest conglomerates with diversified businesses including FMCG, hotels, paperboards, packaging, agri-business, and IT. It is a market leader in traditional businesses like hotels, paperboards, packaging, agri-exports, and cigarettes. The document provides an overview of ITC's vision, mission, products, revenues, employees, and eChoupal initiative to connect with rural farmers.
Secondary Brand Association - Leveraging Secondary Brand Associations to Buil...TanveerHossainRayvee
This document discusses various ways that brands can leverage secondary associations to build brand equity through three main strategies: creating strong favorable associations, reinforcing existing associations, and creating positive responses if existing associations fail. It provides examples of leveraging associations through company affiliations, country of origin, co-branding, celebrity endorsements, sponsored events, and endorsements from third-party sources. The case study examines how the brand Lifebuoy leveraged its association with Bangladeshi cricket star Shakib Al Hasan to promote its "Khelbe Tiger, Jitbe Tiger" campaign during the 2019 World Cup.
Marico Limited is an Indian consumer goods company founded in 1857 and headquartered in Mumbai. It produces coconut and edible oils, hair oils, hair care products, fabric care products, and personal care products which it sells in India and internationally. The company aims to put consumers first, promote excellence and innovation, and generate wealth for shareholders and growth. Its brand portfolio includes Parachute, Saffola, Hair & Care, Shanti Amla, and others. Managing its brand portfolio effectively allows it to utilize resources optimally, prioritize growth areas, increase efficiency, provide clarity to customers, and create leverage across brands.
This document provides an overview and analysis of Hindustan Unilever Limited (HUL). It discusses HUL's history, product portfolio, distribution network, rural market strategies, M&A strategy, core competencies, PESTLE analysis, SWOT analysis, Porter's Five Forces analysis, value chain and other strategic frameworks. Key points include:
1) HUL is India's largest FMCG company with over 80 years of history and 400+ brands including Lifebuoy, Surf Excel, Fair & Lovely, and Vaseline.
2) It has a wide distribution network reaching over 7 million outlets through over 7,000 redistribution stockists.
3) HUL's Project Sh
Tesco is a large international retailer that sells groceries, furniture, and other products. It employs over 360,000 people worldwide. Its objectives are long-term growth, market dominance, expansion into global markets, and strong customer loyalty through excellent service. To achieve these objectives, Tesco recruits and selects qualified employees, provides training and development opportunities, offers competitive compensation and benefits, and maintains good relationships with its workforce.
The document summarizes a study conducted to measure the brand equity of Colgate toothpaste using a modified version of the Winning Brands model of brand equity measurement. The study measured consumer loyalty, ability to charge a price premium, and brand leveragability. It found that Colgate has the highest Brand Equity Index of 6.415 out of 10, compared to indexes of 3.703 for Pepsodent and 2.421 for Dabur. Colgate's strong brand equity is attributed to its high consumer loyalty and ability to charge a price premium, though it is not considered a highly leveragable brand.
The report summarizes a study measuring the brand equity of Colgate toothpaste using a modified version of the Winning Brands model. The study measured consumer loyalty, price premium, and brand leveragability for Colgate compared to four other toothpaste brands. It found that Colgate has the highest Brand Equity Index of 6.415, indicating it can best withstand changes in the market. However, Colgate is not the most leveragable brand and can primarily extend to similar oral care products only. Regression analysis showed awareness and health associations most influence Colgate's brand equity.
The document discusses various methods for valuing brands, including cost-based, income-based, and market-based methods. It also covers strategies for developing an effective brand, including defining the brand vision, positioning, and personality. Key aspects of an integrated branding and marketing strategy are outlined.
Colgate has been in business since 1806 and began as a starch, soap and candle factory. It introduced its first toothpaste in 1873 and was the first to sell toothpaste in a tube in 1896. Over time, Colgate expanded globally through acquisitions and is now a leading oral care brand present in over 200 countries. Currently, Colgate focuses on innovation, emerging markets growth, and leveraging technology while facing competition from brands like HUL. It aims to increase rural penetration in India through affordable products and promotions.
The document discusses various approaches to valuing pharmaceutical brands. It covers the importance of brand valuation for strategic and financial decisions. Several approaches to brand valuation are described, including financial approaches like cost-based, market-based, and income-based methods. Cost-based approaches value a brand based on historical or replacement costs to develop the brand. Market-based approaches compare brand sales to guide valuations. Income-based approaches quantify the price premium consumers pay for branded products over generic alternatives.
This document provides a brand audit report on L'Oreal brand. It begins with an executive summary that introduces the purpose of the report. The introduction then defines key branding concepts like the difference between marketing and branding, what a brand is, and the importance of brand positioning. The research objectives are to evaluate L'Oreal's current brand image and identify any issues. The brand literature review covers internal and external brand management perspectives. The report also includes recommendations to improve L'Oreal's brand positioning and brand image.
The document discusses brand valuation and the total brand value, which has both an economic value and social value. The economic value is most visible during acquisitions when a brand's value can increase a company's shareholder value. Research-based, financially driven, and economic use approaches are used to value brands, with the economic use approach combining brand equity with financial measures. Brand valuation is now widely used for strategic brand management and financial transactions to increase shareholder value and properly account for brand assets.
The document provides a summary of the Brand Asset Valuator (BAV) analysis conducted for Colgate and its competitors (Pepsodent, Close Up, Anchor, Dabur) in India. A questionnaire was used to collect data from 31 respondents on the four BAV pillars: differentiation, relevance, esteem, and knowledge. Scores were calculated for each brand on each pillar. The analysis found that Colgate has the highest scores for relevance and esteem. On the BAV power grid, Colgate is in the leadership category. Pepsodent and Close Up were found to be declining brands, while Anchor is unfocused and Dabur has low brand stature. The BAV provided insights
Colgate is India's leading oral care brand with over 50% market share. It offers a wide range of oral care products including toothpaste, toothbrushes, toothpowder, and whitening products. Colgate drives its brand equity through strong brand elements like its name, logo, and taglines emphasizing dental recommendations. It also invests heavily in marketing activities such as advertising, promotions, establishing its products' availability in stores, and engaging in public health campaigns. Colgate further builds its brand through doctor recommendations and associating its products with oral health.
NEED OF BRAND VALUATION: A brand can be valued anytime and for many reasons, that includes- Brand strategy, Financial Reporting, Mergers and acquisitions, value reporting, licensing, legal transaction, accounting, strategic planning, management information, taxation planning and compliance, liquidation.
The document discusses corporate branding versus product branding strategies for firms entering emerging markets. It proposes that firms are more likely to use corporate branding when stakeholder interests are broad, corporate image is emphasized, markets are complex, marketing costs are high, and industrial products are being sold. Larger, more experienced international firms are also positively associated with corporate and product branding. Future research could develop and test additional hypotheses about branding strategies across different stages of market entry and expansion.
The document discusses brand evaluation and valuation. It begins by defining what a brand is and why brands need to be valued. It then describes several methods that can be used to assess the value of a brand, including historical cost, replacement cost, market value, premium price, royalty relief, Young and Rubicon's brand asset valuator model, and economic use methods. Each method is explained along with its advantages and limitations. The document concludes by reiterating that brands are important assets for organizations and that different valuation techniques can be used to determine a brand's financial worth.
Brands are an important asset that generates value either for customers or for shareholders. That value generates inflows of cash flow> There are different methods and this is a compact and efficient method>
Colgate began in 1806 as a starch, soap, and candle company founded by William Colgate in New York. It introduced the first toothpaste in 1873. Since then it has grown significantly and now operates in over 200 countries. It holds the top market share for toothpaste in India at 51% and has been India's most trusted brand for several years running. Colgate focuses on innovation through new products, targeting different age groups and populations. It uses advertising slogans and promotions like free dental checkups to promote oral health and build its brand recognition worldwide.
Colgate-Palmolive Company is an American multinational company focused on producing and distributing household, healthcare, and personal products. Founded in 1806, it is headquartered in New York City and manufactures oral care products like toothpaste and toothbrushes. With over 36,000 employees globally, Colgate has a leading market share in oral care and maintains a portfolio of trusted brands.
The document provides an overview of Samsung's history and operations in India. It details Samsung's entry into the Indian market in 1995 and its subsequent expansion, including establishing manufacturing facilities and R&D centers. It also outlines Samsung's product portfolio, core values and vision, and some of its key achievements in India such as becoming the largest mobile brand and a leader in product categories like LED TVs and refrigerators.
This document provides a project report on Colgate-Palmolive Ltd. It includes an introduction to the company, its history dating back to the 1800s, details on its marketing mix including product, price, place and promotion strategies. It also includes a BCG matrix analysis, SWOT analysis and STP analysis of Colgate's business and products. The project was submitted by five MBA students and provides a comprehensive overview of Colgate-Palmolive's business in 3 pages.
Brand equity refers to the added value that a brand name provides to products and services. It is created by the differential effect of brand knowledge on consumer response to marketing of the brand. There are several models for measuring brand equity, including brand asset valuing, Aaker's model, BrandZ, and brand resonance. Building strong brand equity involves choosing memorable and meaningful brand elements, developing positive brand associations through marketing, and indirectly transferring associations from other entities linked to the brand. Measuring brand equity provides benefits for companies such as increased customer loyalty and insulation from competitors.
The document provides information on the group members and operations of Johnson & Johnson. It lists Priyanka Gujral as CEO and VP Legal, and others in VP roles for Communications, Marketing, and Strategy. It then gives an overview of Johnson & Johnson as the world's sixth largest consumer health company and eighth largest pharmaceutical company, operating in over 60 countries with 128,000 employees worldwide. The headquarters is located in New Jersey. It focuses on research, innovation, and caring for people's well-being.
The document provides a summary of the brand valuation process for Colgate and Dabur oral care brands in India using the Interbrand valuation methodology. It analyzes the financial performance of the two companies, measures the role of branding index and brand strength scores through a consumer survey, and calculates the discounted cash flows to estimate the brand values. The valuation finds the brand value of Colgate to be Rs. 6088.29 crores and Dabur to be Rs. 678.21 crores for its oral care business in India. It recommends that Colgate continue its innovation strategy while Dabur needs to work on strengthening its brand connect.
1. The document outlines a brand valuation methodology used to estimate the value of the HP, IBM, and Dell brands.
2. Financial reports were analyzed to forecast cash flows over 5 years and in perpetuity, brand strength and role in purchase decisions were surveyed.
3. IBM was valued highest at $39,980 million, followed by HP at $23,980 million, and Dell at $557 million based on discounting brand earnings using brand strength-adjusted discount rates derived from Interbrand's methodology.
1. The document outlines a brand valuation methodology used to estimate the value of the HP, IBM, and Dell brands. It analyzes the annual reports of the companies to forecast cash flows and applies Interbrand's three pillar brand valuation model.
2. A survey was conducted to determine the role of branding and brand strength scores for each brand. These scores were used to calculate brand earnings and discount rates.
3. The brand values estimated were $23980.83 million for HP, $39980.23 million for IBM, and $557.48 million for Dell. IBM was valued the highest while Dell was valued the lowest.
Financial applications for brand valuation_Interbrand_MikeRochaMichael Rocha
The document discusses various financial applications for brand valuation, including brand management, strategy/business case development, and financial applications. It provides examples of how Interbrand has used brand valuation to help clients with investor relations, mergers and acquisitions, licensing and royalty rates, tax valuations, and other matters. The document also describes Interbrand's brand valuation methodology and how it assesses both internal and external factors to evaluate brand strength.
Brand valuation provides a strategic tool to quantify the value of a brand and assess its performance and contribution to business results. It considers the brand's influence on customers, employees, and investors. Interbrand's methodology measures the brand's financial performance, role in purchase decisions, and strength through factors like clarity, commitment, protection, and responsiveness. Brand valuation helps companies set strategy, invest in brands, and communicate their value to stakeholders.
Lacking a set standard, the finance function tends to avoid assigning value to its brands, and companies tend to focus instead on qualitative assessments, such as brand awareness, customer engagement and perception of quality. While these metrics can inform growth expectations, they do not assess the true value that the company might have created by growing its brands. This article, sponsored by Oracle, explores the brand valuation conundrum.
Lacking a set standard, the finance function tends to avoid assigning value to its brands, and companies tend to focus instead on qualitative assessments, such as brand awareness, customer engagement and perception of quality. While these metrics can inform growth expectations, they do not assess the true value that the company might have created by growing its brands.
1) Google has overtaken Apple as the world's most valuable brand, with a brand value of $109 billion compared to Apple's $107 billion.
2) Apple's brand value declined 27% as its technological advantage has diminished and it has failed to generate significant revenue from new products like the Apple Watch.
3) Google remains strong in its core search business, which generates most of its advertising revenue, and has improved its underlying brand equity, helping drive its continued growth.
Leggi il dossier completo Global 500, edizione 2017 Agi
1. The document summarizes Brand Finance's methodology for valuing global brands in its annual Brand Finance Global 500 report.
2. Brand Finance values brands using a royalty relief approach, estimating future revenues attributable to the brand and calculating a royalty rate brand owners would pay to use the brand if they did not already own it.
3. Brand strength, sector royalty rates, forecasted revenues, and post-tax discounting are used to determine individual brand values.
1) Google has overtaken Apple as the world's most valuable brand, with a brand value of $109 billion compared to Apple's $107 billion.
2) Apple's brand value declined 27% as its technological advantage has diminished and it has failed to generate significant revenue from new products like the Apple Watch.
3) Google remains strong in its core search business, which generates most of its advertising revenue, and has improved its underlying brand equity, helping drive its continued growth.
Leggi il dossier completo Global 500, edizione 2017 Agi
1) Google has overtaken Apple as the world's most valuable brand, with a brand value of $109 billion compared to Apple's $107 billion.
2) Apple's brand value declined 27% as its technological advantage has diminished and it has failed to generate significant revenue from new products like the Apple Watch.
3) Google remains strong in its core search business, which generates most of its advertising revenue, and has improved its underlying brand equity, helping drive its continued growth.
The document discusses brand valuation and provides information on:
1) What brand valuation is and why it is important as brands make up most of company value today rather than tangible assets.
2) The main methods for valuing brands including discounted cash flow, price premia, and book to market.
3) How brand valuation became more standardized over the last 30 years and is now accepted under IFRS accounting standards.
1) Konzept & Markt is a consulting firm that specializes in determining the monetary value of brands through scientifically validated valuation methods. They have valued over 1,000 brands.
2) Their brand valuation approaches combine perceptions of brands from consumers with principles of financial valuation. Valuations provide a valid measurement of brand value and can be relied upon for legal or business purposes.
3) Key services include the Brand Census tool for measuring brand strength in the consumer's mind and the Brand Performance System for analyzing secondary market data to assess a brand's market strength.
Can technology support better brand valuationMarketnet
This document discusses the history and importance of brand valuation. It notes that while tangible assets are carefully measured and managed, brand assets are often overlooked. Brand valuation is becoming an important management tool to evaluate brand performance and align brand strategy with financial goals. The document provides several examples of how brand valuation can be used for mergers and acquisitions, licensing, marketing investments, and other strategic decisions.
This presentation has my preliminary thoughts on the subject of brand valuations, which is an important part of brand-building nowadays.
Here, I focus on what brand valuation should be based on, what should be its components and what metrics should form part of it. I talk about the four critical dimensions of a brand and their components, as well as how they relate to each other.
Brand valuations can be for corporate brands as well as product brands. They can also be specific to an industry as well as cross-industry. It is important to focus on the right dimensions and their metrics for each type of brand valuation exercise.
This presentation deals with the different methods of measuring brand equity, focusing on the method adopted by Interbrand, one of the most famous business agencies in the world.
The pressure is on marketing to quantify the benefits of the huge spend including brand) it incurs. It\'s not particularly difficult, although it is a fair amount of work. This presentation shows you how! Let me know if you need help!
The document discusses brand valuation and outlines several key points:
1. Initially, tangible assets were seen as the main business value, but recognition of intangible value like brands grew with the increasing gap between book and market values.
2. Brands are valuable assets that can be quantified and valued using various approaches like discounted cash flow analysis and calculating the brand's contribution to profits.
3. A five step process for brand valuation includes market segmentation, financial analysis, demand analysis, competitive benchmarking, and calculating the brand value.
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1. “Brand is a valuable asset of the corporation,
and should be treated like any other asset.
This means it must be invested in, put to
work to generate value and held accountable
for the results.”
-Joanna Seddon, Millward Brown
2. 2 | P a g e
Brand Tracker
Phase III– Brand Value
Measurement
A report submitted to
Prof. Srinivas Govindrajan
In partial fulfilment of the requirement of the
course
Product and Brand Management
On 16th
September 2012
By
Abinas Mishra (B11002)
Anubhuti Anup (B11008)
Piyush Das (B11031)
Sumedha Dutta (B110047)
3. 3 | P a g e
Executive Summary
During the 1980’s when there were a series of merger and acquisition, a trend was observed
that the acquiring companies were paying over and above the book value of the acquired
companies. This created a ruffle in the accounting world and was resolved when experts
came up with the idea that brands have an inherent value of their own. During this period the
concept of Brand valuation was established. Brand valuation is the process in which the total
financial value of the brand is estimated. There are several models that are used for Brand
Valuation but Interbrand’s valuation model is the widely accepted one.
Interbrand’s method measures brand value under three pillars viz. financial
performance of the organization, role of the brand in the purchase decision and strength of the
brand to ensure expected future earnings. A variation of this model was used to calculate the
value of Brand Colgate and one of its competitors (Dabur).
The annual report of the two companies was analysed to create a model that will give
the estimated economic profits for the next five years as well as till perpetuity. The CAGR
that was used to forecast future cash flow was taken by taking industry reports (18%).
To calculate the role of branding index and brand strength score a survey was undertaken
with the help of questionnaire and with a sample size of 30. The above two parameters were
measured across ten dimensions: Clarity, Commitment, Protection, Responsiveness,
Authenticity, Relevance, Differentiation, Consistency, Presence and Understanding.
The brand value was calculated by multiplying the economic profit or the intangible
earnings with role of brand index and subsequently discounting it with the discounting rate
derived from the brand strength score. The value of Role of Branding Index for Colgate is
83.67 and that of Dabur is 68.27. Thus, for Colgate-Pamolive, 83.67% of its intangible
earnings are generated from the brand Colgate. From our valuation, we derived that Colgate
was valued at Rs 6088.29 Crores (For its Indian operation) while Dabur was valued at Rs
678.21 Crores (Oral Care business).
From this analysis we interpreted that Colgate should continue to follow its strategy
of redefining the oral care segment and bring in more innovative products for the different
identified segments. Dabur has been performing well but is not able to create a strong brand
connect and hence should try to reposition itself and make it relevant to a wider mass.
4. 4 | P a g e
Table of Contents
Executive Summary……....................................................................................... 3
Defining brand valuation.................................................................................... 5
Brand Value Measurement – Interbrand Model …………………………….6-9
Measurement of brand value………………………………………………………………10-15
Recommendation……………………………………………………………………………………..16
Annexure…………………………………………………………………………………………..17-20
References...............................................................................................................21
5. 5 | P a g e
What is a brand?
A brand is a future generator of cash flows, known for its values and an intangible asset.
For a common man it is just a name or a symbol through which he remembers or recalls a
particular product or a set of products .A brand enables a consumer to differentiate amongst
the available product. A brand is built by the consumer’s perception about the products.
Why is a brand valuable?
A brand is associated with tangible and emotional attributes that is intended to associate a
good or a service of one seller in order to differentiate them from other competitors selling
the same kind of goods or services. This makes a brand very valuable to the company that it
belongs to.
Why value a brand?
The concept of brand valuation emerged in late 1970's when conglomerates were looking at
low profile but sound, business houses for acquisition .At the time of negotiation the balance
sheet of such target company needed to be spruced up by the intangible but yet very much
real worth of the brands marketed by these businesses. Valuing brands therefore necessitate
breaking up a company into its component brands and then valuing these brand by some
applicable methods. The main argument against valuing a brand and pegging a financial
figure to it is a subjectivity and resulting arbitrariness in and infrequency of transactions. The
following are just some scenarios that might require a brand valuation
Transactional
Mergers and Acquisition
Joint Ventures
Licensing Negotiation
Regulatory and Accounting compliance
Litigation
Damage/loss calculation
Licensing and royalty rate issues
Marketing/Internal
Brand Management strategy
ROI/marketing investment allocation
7. 7 | P a g e
Interbrand valuation methodology
Interbrand, one of the premier brand valuation firms, evaluated a number of different
approaches in developing its brand valuation methodology. Its goal was to identify an
approach that incorporated marketing, financial and legal aspects, followed by fundamental
accounting concepts. Finally it decided to approach the problem of brand valuation by
assuming that the value of a brand, like the value of any other economic asset, was the
present worth of the benefits of future ownership. In other words, brand valuation is based on
an assessment of what the value is today of the earnings or cash flow that the brand can be
expected to generate in the future.
According to Interbrand, to estimate brand value, it is necessary to identify projected future
earnings for the brand and the discount rate to adjust these earnings for inflation and risk.
Based on all these criteria, Interbrand developed two step method of calculating brand value:
I. Identifying the true earnings and cash flow
II. Capitalizing the earnings by applying a multiple to historic earnings as a discount rate
to future cash flow
The three key aspects that contribute to the assessment are: the financial performance of the
branded products or services, the role of brand in the purchase decision process, and the
strength of the brand.
FINANCIAL
PERFORMANCE
ROLE OF THE
BRAND
BRAND
STRENGTH
BRAND VALUATION
Operating Profit –
Taxes =
NOPAT - WACC =
Economic Profit
X
Role of Brand =
Branded Earnings
X
Brand Strength
Discount Rate = $
8. 8 | P a g e
FINANCIAL PERFORMANCE
Financial performance measures an organization’s raw financial return to the investors. For
this reason, it is analyzed as economic profit, a concept akin to Economic Value Added
(EVA).
To determine economic profit, we remove taxes from net operating profit to get to net
operating profit after tax (NOPAT). From NOPAT, a capital charge is subtracted to account
for the capital used to generate the brand’s revenues; this provides the economic profit for
each analyzed year.
For purposes of the rankings, the capital charge rate is set by the industry weighted average
cost of capital (WACC). The financial performance is analyzed for a five-year forecast and
for a terminal value.
ROLE OF BRAND
Role of brand measures the portion of the decision to purchase that is attributable to brand.
The role of brand determinations for this study derives, depending on the brand, from one of
three methods: primary research, a review of historical roles of brand for companies in that
industry, or expert panel assessment.
BRAND STRENGTH
Brand strength measures the ability of the brand to secure the delivery of expected future
earnings. Brand strength is reported on a 0 to 100 scale, where 100 is perfect, based on an
evaluation across 10 dimensions of brand activation.
The ten dimensions are divided into internal and external factors.
INTERNAL FACTORS
CLARITY
Clarity internally about what the brand stands for in terms of its values, positioning and
proposition
COMMITMENT
It deals with internal commitment to the brand, and a belief internally in the importance
of brand. It gives the extent to which the brand receives support in terms of time,
influence, and investment
PROTECTION
Protection deals with how secure the brand is across a number of dimensions: legal
protection, propriety ingredients or design, scale or geographical spread
RESPONSIVENESS
It measures the ability to respond to market changes, challenges and opportunities. The
brand should have a sense of leadership internally and a desire and ability to constantly
evolve and renew itself
9. 9 | P a g e
EXTERNAL FACTORS
AUTHENTICITY
It measures the brand’s internal truth and capability, well defined heritage, well
grounded value set and delivery of high expectations that customers have of it
RELEVANCE
Relevance measures how well does the brand fit with customer/consumer needs,
desires, and decision criteria across all relevant demographics and geographics
DIFFERENTIATION
This is the degree to which customers perceive the brand to have a positioning that is
distinct from the competition
CONSISTENCY
This measures the degree to which a brand is experienced without fail across all
touch-points or formats
PRESENCE
Presence is the degree to which a brand feels omnipresent and is talked about
positively by consumers, customers and opinion formers in both traditional and social
media
UNDERSTANDING
The brand is not only recognized by customers, but there is also an in-depth
knowledge and understanding of its distinctive qualities and characteristics
10. 10 | P a g e
Measurement of brand value
(for detailed workings please check the excel sheets attached)
• A variation of the Interbrand brand valuation model was used to calculate the brand value
of Colgate and its competitors Dabur.
• For the purpose of the research a questionnaire was designed and 30 respondents were
surveyed. This was done to find out the role of branding index and the brand strength score.
(See annexure for the questionnaire).
FINANCIAL ANALYSIS
The annual reports of the parent companies of the 2 brands were analyzed to develop
the Discounted Cash Flow model.
For the financial years ending 2009, 2010 and 2011 the figures were directly picked
up from the audited financial statements and for the year ending 2012, data was
extrapolated from the unaudited quarterly reports published.
The financial statement of Colgate is given a weightage of 96% and that of Dabur is
given 18%, since that is the contribution of Oral care in the overall respectively.
The overall growth of the industry was taken from a industry report and keeping that
as the base the assumed YoY growth rate for the next 5 years was arrived at. This
growth rate was kept same for the 2 brands for the ease of comparison.
All expenses have been treated as a percentage of revenue while revenue, assets and
current liabilities were treated as a function of the growth rate.
For extrapolating the expenses for the next 5 years the average value of the last 3
years have been taken into consideration.
One WACC and cost of equity is taken care of as Colgate is not having any debt.
The industry WACC was taken as the capital charge to arrive at the intangible
earnings.
Total assets – Current Liabilities = Net Plant Property and equipments
(Net Plant Property and Equipments * Capital Charge) – NOPAT = Intangible
earnings
11. 11 | P a g e
Branding Index
• The Branding index is the parameter which leads to purchase of a particular brand apart
from price and feature.
• A research was conducted where the respondents were asked to rate, on a scale of 1 to 5
where 1 is the lowest and 5 is the highest, Colgate, Dabur and Pepsodent on the 10
parameters on the Interbrand Valuation model mentioned above.
• The mean scores for each parameter and for each brand have been taken and multiplied with
weights.
• 10% weight age have been assigned to each attribute. The weighted average total and
subsequently the brand index have been prepared for each brand.
• The above picture shows the position of each brand in the branding index.
• The closer the value to 100 the more sales is coming due to the brand. The closer to 100 the
more sales coming due to the feature of parent company i.e. supply chain etc. Colgate had
highest score among all 3 brands i.e. of 83.67.
Brand earnings = Intangible Earnings * Role of Brand Index
12. 12 | P a g e
Brand Strength
• For calculating the brand strength, the sum total of all the rates for the brands have been
taken.
• Since brand strength is a relative measure the total of each attribute have been taken and
accordingly, by calculating the average of the sum, weights have been assigned to each
attribute.
• The scores of each brand for each attribute have been calculated by multiplying the weights
with the average values.
• The sum total of all the attributes gives the brand strength score for the respective brands.
• The discount rate is used to calculate the risk associated with the cash flows of the brand.
• The industry WACC that has been calculated taking average of WACC and cost of equity
of 2 brands.
• Interbrand uses a proprietary algorithm which calculates the brand discounting factor from
the brand strength score.
• Here in our research, we have assumed that a brand strength score of 100 would entitle a
discounting rate which is equivalent to the industry WACC.
• The brand earnings were discounted with the brand discount rate (arrived from brand
strength score) to arrive at the present value of the future cash flows with year 0 being 2012.
13. 13 | P a g e
Particulars Brand Strength Score WACC
Industry 100 10.81%
Pepsodent 77.79 13.90%
Colgate 83.71 12.92%
Dabur 68.34 15.82%
14. 14 | P a g e
Brand Valuation
All the present values of the future cash flows including the terminal cash flows were
added to arrive at the value of the brand in the year 2011
Brands Value (as of 2012 )(in millions)
Colgate 6088.29
Dabur 678.21
Dabur
2012 2013 2014 2015 2016
Total Net Revenues 778.1813 894.9085 1020.196 1163.023 1314.216
Cost of Sales 645.1618 741.9361 845.8071 964.2201 1089.569
Cost of Sales as a % of
Revenue 82.91%
Gross Margin 133.0195 152.9724 174.3886 198.803 224.6474
Depreciation 8.526573 9.805559 11.17834 12.7433 14.39993
Depreciation as a % of
Revenue 1.10%
Overheads 645.1618 741.9361 845.8071 964.2201 1089.569
Overheads as a % of revenue 82.91%
EBITA 124.4929 143.1669 163.2102 186.0597 210.2474
Applicable Taxes 26.14352 30.06505 34.27415 39.07253 44.15196
NOPAT 98.34942 113.1018 128.9361 146.9871 166.0955
Total Assets 462.2248 531.5585 605.9767 690.8134 780.6192
Current Liabilities 266.6367 306.6322 349.5607 398.4992 450.3041
NET PPE 195.5881 224.9263 256.416 292.3142 330.3151
Capital Charge 21.15285 24.32578 27.73139 31.61378 35.72358
Intangible Earnings 77.19657 88.77606 101.2047 115.3734 130.3719
Role of Branding Index
Brand Earnings 52.69953 60.60446 69.08908 78.76155 89.00055
Brand Strength Score
Brand Discount Rate
Discounted Brand Earnings 45.50123 45.17909 44.46914 43.77035 42.70462
Terminal Growth Rate 414.42
Brand value 678.21
15. 15 | P a g e
Colgate
2012 2013 2014 2015 2016
Total Net Revenues 3091.2 3554.88 4052.563 4619.922 5220.512
Cost of Sales 2444.402 2811.062 3204.611 3653.256 4128.179
Cost of Sales as a % of
Revenue 79.08%
Gross Margin 646.7983 743.818 847.9525 966.6659 1092.332
Depreciation 48.16897 55.39432 63.14952 71.99045 81.34921
Depreciation as a % of
Revenue 1.56%
Overheads 2431.957 2796.751 3188.296 3634.658 4107.163
Overheads as a % of
revenue 78.67%
EBITA 598.6293 688.4237 784.803 894.6754 1010.983
Applicable Taxes 144.2697 165.9101 189.1375 215.6168 243.647
NOPAT 454.3596 522.5136 595.6655 679.0587 767.3363
Total Assets 1165.077 1339.838 1527.415 1741.253 1967.616
Current Liabilities 798.3415 918.0927 1046.626 1193.153 1348.263
NET PPE 366.735 421.7453 480.7896 548.1001 619.3531
Capital Charge 39.66239 45.61175 51.99739 59.27703 66.98304
Intangible Earnings 414.6973 476.9018 543.6681 619.7816 700.3532
Role of Branding Index
Brand Earnings 346.9634 399.0079 454.869 518.5506 585.9622
Brand Strength Score
Brand Discount Rate
Discounted Brand
Earnings 307.2648 312.9246 315.9175 318.939 319.165
Terminal Growth Rate 4231.354
Brand value 6088.293
16. 16 | P a g e
Inferences and recommendation
Colgate
Colgate with a wide range of products is the strongest brand in the country with a
brand strength of 83.72
Colgate leads with the brand value of almost $1.08 billion which shows that Colgate's
evolution from dental hygiene to oral care has been successful
In the course of evolution ,Colgate has been successful in creating needs for the
consumers
Colgate must continue introducing new variants in its products for satisfying the
evolving need-set of the consumers
Dabur
Dabur has a brand strength of 68.35
Dabur toothpastes are known for its herbal composition, hence a major portion of its
revenue comes from Babool , Meswak & Red
Dabur must introduce new variants other than herbal toothpaste to compete with
major brands like Colgate, Pepsodent which have a wide range of products.
Dabur must transform from toothpaste/toothpowder to a complete oral care brand to
increase its share in the oral care division of personal care
18. 18 | P a g e
Questionnaire
Please select "only" one option per brand
* Required
1. Rate the following companies on a score of 1-5 (1 being the lowest and 5 being the
highest) for "commitment" *Commitment - the extent to which the brand receives
support in terms of time, influence and investment *
1 2 3 4 5
Pepsodent
Colgate
Dabur
2. Rate the following companies on a score of 1-5 (1 being the lowest and 5 being the
highest) for "protection" *Protection - examines how secure a brand is across a
number of dimensions (legal protection, proprietary ingredient, design, scale or
geographic spread) *
1 2 3 4 5
Pepsodent
Colgate
Dabur
3. Rate the following companies on a score of 1-5 (1 being the lowest and 5 being the
highest) for "clarity" *Clarity - measures the degree to which the brand is truly
dedicated to understanding and defining their customer *
1 2 3 4 5
Pepsodent
Colgate
Dabur
19. 19 | P a g e
4. Rate the following companies on a score of 1-5 (1 being the lowest and 5 being the
highest) for "responsiveness" *Responsiveness - the brand's ability to adapt to market
changes, challenges and opportunity *
1 2 3 4 5
Pepsodent
Colgate
Dabur
5. Rate the following companies on a score of 1-5 (1 being the lowest and 5 being the
highest) for "authenticity" *Authenticity - if a brand has a defined heritage and a well
grounded value set as well as if it can deliver against customer's expectations *
1 2 3 4 5
Pepsodent
Colgate
Dabur
6. Rate the following companies on a score of 1-5 (1 being the lowest and 5 being the
highest) for "relevance" *Relevance - how well a brand fits with the customer's needs,
decision and decision criteria across all appreciate demographics and geographies *
1 2 3 4 5
Pepsodent
Colgate
Dabur
7. Rate the following companies on a score of 1-10 (1 being the lowest and 10 being the
highest) for "presence" *Presence - the degree of how positively consumers,
customers and opinion formers discuss it in both traditional and social media *
1 2 3 4 5
Pepsodent
20. 20 | P a g e
1 2 3 4 5
Colgate
Dabur
8. Rate the following companies on a score of 1-5 (1 being the lowest and 5 being the
highest) for "understanding"*Understanding - in-depth understanding of the brand
distinctive quality and characteristics *
1 2 3 4 5
Pepsodent
Colgate
Dabur
9.Rate the following companies on a score of 1-5 (1 being the lowest and 5 being the highest)
for "consistency" *Consistency - the degree to which a brand is experienced without fail
across all touch-points and formats *
1 2 3 4 5
Pepsodent
Colgate
Dabur
10.Rate the following companies on a score of 1-5 (1 being the lowest and 5 being the
highest) for "differentiation"*Differentiation - the degree to which customers perceive the
brand to a positioning that is distinct to its competition *
1 2 3 4 5
Pepsodent
Colgate
Dabur
Submit
21. References
Prof. Srinivas Govindrajan’s PPTs
Strategic Brand Management by Kevin Lane Keller
http://www.interbrand.com
Marketing Management : Philip Kotler- 13th
Edition
Wikipedia.org
http://money.cnn.com/magazines/fortune/fortune500/2012/snapshots/101.html
http://www.acrwebsite.org/volumes/display.asp?id=7644
http://lta.hse.fi/1999/1/lta_1999_01_a4.pdf