Why PR Matters in Branding and Business Valuation.
By Bolaji Okusaga

WHAT IS CORPORATE OBJECTIVE?
• Corporate Objective articulates a Company’s manner of doing business
and the kind of relationships it need to create with its Stakeholders to
deliver on its purpose.
• These objectives are summarized in the organisation’s mission, vision and
culture and help set the tone for interactions with its Stakeholders.
• Corporate Objective asks the questions: What is the purpose of our
organisation? What value do we intend to create? What kind of ideals bind
our stakeholders together?
• By answering these questions, Corporate organisations are able to
differentiate, plan, execute and deliver exceptional performance.

OUTCOMES OF A SOUND CORPORATE OBJECTIVE
Growth in Market
Share
Market Leadership
Impressive Turn-
over
Good Operating
Margin
Huge Gross Profit
Increase in Market
Capitalisation
Stock Price
Commands
Premium
Absence of Crisis
borne out of a
healthy Operating
Environment

IDENTIFYING STAKEHOLDERS
Anyone on the Street
Influencers
Core Target

POTENTIAL EMPLOYEES
EMPLOYEES
DISTRIBUTION / CHANNEL
PARTNERS
MAJOR
CUSTOMERS
REGULATORS
FINANCIAL ANALYST / BUSINESS PRESS
BUSINESS LEADERS
COMMUNITIES / PRESSURE GROUPS
PORTFOLIO MANAGERS / INVESTORS
CONSUMERS
STAKEHOLDER MANAGEMENT
Source: Regis McKenna

DEMANDS OF STAKEHOLDER ENGAGEMENT
• Every organisation relates with different publics - from the Shareholders,
Staff, Customers, Industrial Unions, Government and Regulatory Bodies,
Counter-parties, the Press to the local community.
• These stakeholders are different in terms of their interests and expectations.
• Organisation therefore need a deep-seated understanding of these interests
and expectations to maintain a dialogue, enhance relationships and retain its
goodwill among its stakeholders.

TYPES STAKEHOLDERS
Advocate stakeholders
• Active and supportive. should be approached with action-oriented messages and engaged
in third-party endorsements.
Dormant stakeholders
• Ready to be involved. Messages should focus on creating awareness and understanding of
issues, or on reducing barriers to action and increasing emotional attachment to the issue.
Adversarial stakeholders
• Don't respond to defensive messages, which actually can cause these opponents to dig in
deeper. Conflict resolution strategies that seek win-win solutions work better.
Apathetic stakeholders
• Should not be ignored, even though that is often management's style. A better strategy is
to increase awareness of the issue with an invitation to collaborate before the issue morphs
into a crisis.
Source: Brad Rawlins, Brigham Young University

UNDERSTANDING STAKEHOLDER DYNAMICS
Dormant
Stakeholders
Apathetic
Stakeholders
Advocate
Stakeholders
Adversarial
Stakeholders
INACTIVE
ACTIVE
NON-SUPPORTIVE SUPPORTIVE
Source: Brad Rawlins, Brigham
Young University

PUBLIC RELATIONS IN ORGANISATION/STAKEHOLDER DIALOGUE
• Public Relations is the art and science of building relationships.
• Public Relations engenders purposeful communications between an organisation and its
publics, it is proactive and future orientated, and has the goal of building and maintaining a
positive perception of an organisation in the mind of its publics.
• In the dialogue between Organisations and their stakeholders, the following branches of
Public Relations suffice:
Employee /
Labour
Relations
Customer
Relations
Investor
Relations
Media
Relations
Government
Relations
Community
Relations
Reputation
Management
Issues
Management
Crisis
Management

WHAT IS A BRAND?
• An identifiable entity
that makes specific
promises of value.
PROMISE
• Is a mixture of
attributes, tangible
and intangible,
which creates value
and influence.
POWER • Brands are created
for the sole purpose
of redirecting
consumer
preferences.
PREFERENCE

WHAT IS BRANDING?
• Branding is the differentiation of an entity or product from other
similar entities or products in the market place using a name, symbol
or colours or a combination of any of them.
• It is a programme designed for the creation of a positive perception
and pungent differentiation which will induce a preference for the
branded product above that of competition.

WHAT DO BRANDS DO?
• Brands produce intangible outputs which impact the bottom-line. Such outputs include :
Greater
customer
satisfaction
Reduced price
sensitivity
Fewer customer
defection
Greater share of
customer wallet
More referrals
Higher
percentage of
repeat business.

ATTRIBUTES OF A BRAND
A COMPELLING
IDEA:
This captures
customers
attention and
commands loyalty.
A RESOLUTE CORE
PURPOSE:
This remains the
platform on which
the brand concept
is built.
A CENTRAL
ORGANISATIONAL
PRINCIPLE:
This helps align the
brand strategy with
the corporate /
business strategy.

WHAT DO BRANDS THRIVE ON?
PATRONAGE
• Brands communicate
their promise to the
market, soliciting
customer patronage.
VERIFICATION
• Everything the customer
experience in the
process of evaluation,
trial, purchase and
adoption is a verification
of the promise.
PROMISE
• Brands, most
importantly, thrive on
promises and the ability
of customers to verify
these promises.
DIFFERENTIATION
Brands thrive on
the ability to
differentiate.

HOW DO BRANDS EVOLVE? (
BRAND AS COMMODITY
• Here Consumer’s perception is
utilitarian.
BRAND AS REFERENCE
• Here competitive pressure stimulates
a need for differentiation.
BRAND AS PERSONALITY
• Here are given a personality in order
to draw on emotional attributes, the
use of brands therefore become a
medium of self expression.
BRAND AS ICON:
• Here consumers draw associations
from the brand to boost their self
identity, the more the associations a
brand has, the greater its network in
the consumer’s memory.
BRAND AS COMPANY
• Here brand equals the company and
assumes a complex posture because
there are many points of contact
between the consumer and the
brand, this is the beginning of post-
modern marketing.
BRAND AS POLICY
• Here there is an alignment of the
company’s ethical, social and political
stance with the brand concept, this
stage draws heavily on emotion.

BRAND LOYALTY LADDER
•This is the pool from
which companies draw
their patronage
Availables
•These are the set who
initial accept the brand,
these will accept a
competing brand where
their favourite brand is
unavailable
Acceptors •These are loyalist of the
brand who will not accept
a competing brand but
may settle for other
alternative
Adopters
•These will not accept a
competing brand or an
alternative. This is the
highest level of loyalty
Adorers

WHY BRAND?
• In a global economy, with
changing market dynamics and
heightened competition, the role
of brands has become larger than
being just a medium of
recognition, brands now serve
for business success.
• Company’s must produce healthy
brands to stay competitive.
Brand
Strategy

IT’S ALL ABOUT VALUE DELIVERY
• Business Strategy is all about GOODWILL
Used
Value
•Strategy
Perceived
Used
Value
•Branding

IF BUSINESS IS WAR AND STRATEGY IS THE ARSENAL
THEN BRANDING IS THE BULLET
According to Shelly Lazarus , Chairman of Ogilvy & Mather:
“Once the enterprise understands what the brand is all about, it gives
direction to the whole enterprise. You know what products you are
supposed to make and not make. You know how you are supposed to
answer your telephone. You know how you’re going to package
things. It gives a set of principles to an entire enterprise”.

BRANDING AND MARKETING: WHERE DO THEY
MEET?
• Brands and branding gives character to marketing.
• Competition dictates a need to create a perception in the mind of the target that
there is no better product in the market than the one you are offering.
• Today, products are bought and not sold. Brands helps to pre-sell the product to
the target.
• To stay competitive therefore, companies must deliver superior value by
producing winning brands.
• If market leadership is a sign of business success, then branding is the key to
sustainable growth and business consolidation.

WHERE IS THE CONNECTION?
• Building a sustainable advantage in today’s globalised market,
requires the linking of the brand and business strategy with the
market planning and management framework of an organisation.

BRAND VALUATION
Companies are increasingly recognising the power of the
Brand following reasons:
A full-fledged brand
valuation exercise can
help a company
strengthen its inter-
departmental
communication and also
develop a reliable
information system
It indicates the strengths
and weaknesses of the
company's brands and is a
useful tool in devising
brand management
strategy
The recent trend of
acquiring established
brands to ensure growth
amid tough competition
has led to the wide
acclaim of the brand
valuation concept in
negotiating the
transaction price
The value of a brand
reflects not only what
earnings it is capable of
generating in the future,
but also the likelihood of
those earnings actually
being realised.
Brand valuation is largely focused the measure of goodwill that has accrued to the
business largely on account of the brand it has built.

MODELS OF BRAND VALUATION
Model 1: Shafer Model
• A model developed by
Trajectories Group in Irvine,
California.
Formula= B = (R + M + V) C
• Where B equals Brand
Valuation, R equals
reputation equals
momentum equals vision &
C equals connection.
Model 2: Price Premia Model
• In the price premia method,
the value is calculated as
the net present value of
future price premiums that
a branded product would
command over an
unbranded or generic
equivalent.
Model 3: Royalty Method
• A brand has a capability to
charge a premium. A
Royalty rate represent the
premium a brand is able to
charge above it competitive
set. In other words, if the
company does not own the
brand being valued, the
company would have to pay
the owner a royalty for the
right to use the brand.

BRAND VALUATION AND BUSINESS VALUE
GOODWILL AS A
STRATEGIC
INTANGIBLE ASSET
BRAND AS KEY
CONSIDERATION IN
BUSINESS VALUATION
• Goodwill is a balance sheet item
recognized under different account
models including the IFRS
• Brands are therefore intangible assets
that drive business value.
• Companies are known to command price
premiums during acquisition process
based on the strength of their brands.
• Acquisition of Gillette by P&G – the price
premium based on the strength of the
Brand was more than other balance sheet
items.

CONCLUSION
The Brand concept is
inseparable from business
strategy.
Brands lead the way in the
market space and confer value
which creates a sustainable
basis for businesses.

THANK YOU.