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    BRAND VALUATION METHODSAND STRATEGIES

    Presented By,

    Pradeep Choudhary

    Omkar Palsuledesai

    Vijay Gopalakrishnan

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    BRAND VALUATION METHODS

    These can be broadly classified into:

    Cost based Income based

    Market based

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    COST BASED METHODS

    Book value

    Replacement value

    Liquidation value

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    1.Book value method

    Current cost valuation

    All assets are taken at current value and summed to

    arrive at value This includes tangible assets, intangible assets,

    investments, stock, receivables

    VALUE = ASSETS - LIABILITIES

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    2. Replacement value method

    Cost of replacing existing business is taken as

    the value of the business

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    3. Liquidation value method

    Value if company is not a going concern

    Based on net assets or piecemeal value of net

    assets

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    INCOME BASED METHODS

    Earnings capitalization method.

    Discounted cash flow method (DCF)

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    1.Earnings capitalisation method

    This method is also known as the Profitearnings capacity value (PECV)

    Companys value is determined bycapitalizing its earnings at a rate consideredsuitable

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    2.Applicability of DCF method

    Cash flow to equity

    Discount rate reflects cost of equity

    Cash flow to firm

    Discount rate reflects weighted average cost of

    capital

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    Limitations

    Companies in difficulty Negative earnings

    May expect to lose money for some time in

    future

    Possibility of bankruptcy

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    MARKET BASED METHOD

    Also known as relative method

    Assumption is that other firms in industry

    are comparable to firm being valued Standard parameters used like earnings,

    profit, book value

    Adjustments made for variances fromstandard firms, these can be negative orpositive

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    Applicability

    Simple and easy to use

    Useful when data of comparable firms and

    assets are available

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    Limitations

    Easy to misuse

    Selection of comparable can be subjective

    Errors in comparable firms get factored intovaluation model

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    Brand StrategyStep of brand strategys success is to check

    Where Brand CAN & CANNOT Go.

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    Steps in Brand Strategy

    Branding Vision

    Brand Positioning

    Brand Personality

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    Types of Branding Strategy

    Product Branding

    Product-line Branding

    Product range Branding Corporate Branding

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    Integrated Communications Strategy

    Current Beliefs

    Current Actions

    Message Desired Belief

    Desired Actions

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    Points of Parity and Difference

    BrandConsumers

    Competition

    Our

    PODs

    POPsTheir

    PODs

    .

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    Brand Strategy and Marketing Strategy

    Brand Strategy is separate from the

    4Ps. It guides and inform

    decisions about every aspect ofthe marketing mix.

    I. Corporate Objectives & Brand Portfolio

    II. Marketing Objectives

    III. Brand Strategy

    Communications Strategy

    Product and Pricing Strategy

    Channel and Distribution Strategy

    IV. Marketing Execution & Monitoring

    Strategic Marketing Process

    Brand Strategy is an integral part of the overall strategic marketing

    process. It helps to bridge the gap between business strategy and

    marketing strategy.

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    Brand Personality

    The purposeof brand personality is to ensure a brandbehaves in a way that is consistent with its values in

    orderto increase its appeal and create greater affinity

    with its target. Brand personality can also help to

    differentiate a brands imagery relative to competitors.

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    Brand Elements

    Brand Name

    Brand Logos and Icons Colors

    Symbols

    Music/Earcons

    Celebrities or Personalities Advertising slogans and jingles

    Brand Alliances/Secondary Associations Co-branding

    Licensing

    Sponsorship Event Marketing

    Celebrity Endorsement

    Third-party Endorsements

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    THANK U all Friends