Brand Valuation

1. VALUATION OF BRANDS
Presented By:
Tapabrata Banerjee(13DM042)
Aishik Adhikary(13DM007)
Rinki Shaw(13DM024)

2. OUTLINES
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Brand Valuation
Reason behind Brand valuation
Brand Valuation Methodology
Inter-Brand valuation Methodology
Keller value chain
Value stages & Multipliers

3. BRAND VALUATION
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Brand valuation provides a common language
for brand performance around which a company
can be galvanized and organized. Responsibility
for Brand Strength factors can be allocated to
functions, building engagement and a sense of
responsibility for the brand across the
organization.

4. REASONS OF BRAND VALUATION
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Brand health monitoring
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Marketing budget allocation
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Internal brand licensing
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Brand portfolio management
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Brand architecture review
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Internal brand evaluation

5. BRAND VALUATION METHODOLOGIES
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Cost based approach
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Book to market
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Discounted cash flow method
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Price Premia Model

6. INTER-BRAND VALUATION METHODOLOGY
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Market Segmentation
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Financial Analysis
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Role of Branding Analysis
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Brand Strength Analysis
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Competitive Benchmarking
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Brand Value Calculation

7. KELLER
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BRAND VALUE CHAIN
The Brand Value Chain(BVC) is a structured approach to
assessing the sources and outcomes of brand equity and
the manner by which marketing activities create brand
value. It provides insights to support the various decision
makers in the company and stresses that every member
of the company contribute to this branding effort. It
believes that the value of rand ultimately resides with
customers. There are several steps to this when we look
at this value creation process.

8. KELLER VALUE CHAIN(CONT....)
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Step I) Firm invests in a marketing program targeting actual or
potential customers
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Step II) The associated marketing activity then affects the customer
mind-set –what the customers know and feel about the brand.
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Step III) This produces the brand’s performance in the marketplace
– how much and when customers purchase, the price that they pay
and so forth.
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Step IV) The investors considers this market performance and other
factors to arrive at an assessment of shareholder value in general and
a value of the brand.

9. VALUE STAGES
Value
stages
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Marketing Investment
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Customer Mind-set
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Brand Performance
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Shareholder value
& MULTIPLIERS
Multipliers
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Programme Multiplier
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Customer Multiplier
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Market Multiplier

10. EXAMPLE OF BRAND VALUATION
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Cadbury India was acquired by Kraft Foods in 2010 the balance
sheet was not available for 2010-11 &2011-12.
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Cadbury India’s 2009-2010 annual report was used to determine
the contribution of Cadbury Dairy Milk and Cadbury 5 Star to the
overall sales of Cadbury India from the calculation it was found
that 22.35% and 10.45% of the overall sales come from Dairy Milk
& 5 star respectively
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Cadbury’s growth rate was determined 20%
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Tax rate for chocolate category in 2010 and 2011 was 30%
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Capital charge was determined from a report on ‘Acquisition of
Cadbury’, it was considered to be the Industry WACC(5.48%)

11. ASSUMPTIONS TAKEN INTO CONSIDERATION
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Brand’s sales contribution percentage is the same till
2011
22.3% & 10.45% are the respective brands contribution
towards the expenses and capital charge in Cadbury
India
Gross margin % ,Marketing ,Overheads ,Miscellaneous
expenses as a percentage of sales, capital employed as a
percentage of sales are constant from 2009-2011
Brand Valuation
At the end of the valuation it was found that Cadbury
Dairy milk has a brand value of Rs 2630 crores and 5
star has a brand value of Rs 465 crores

12. THANK YOU