2. 7/19/2013 2
Case study: the impact of a crisis on brand value
Using a combination of financial and brand data, BAC determined Brand X’s implicit market value
Source: Brand data and BrandAsset® Valuator
Market to
Sales Ratio
Return on
Sales
Sales
Market
Value
Relevance
Rugged
Brand
Stature
Unique
&
Visionary
Internationally
Brand Metrics
10
12
14
16
18
20
2.5
3
3.5
4
4.5
5
05Q1
05Q2
05Q3
05Q4
06Q1
06Q2
06Q4
07Q2
07Q3
07Q4
08Q1
08Q2
08Q3
08Q4
09Q1
09Q2
09Q3
09Q4
10Q1
10Q2
10Q3
10Q4
11Q1
Brand Stature Relevance Rugged
The brand’s perceptions on these
dimensions have fallen over time;
improving them would strengthen
the brand’s financial performance
and valuation
Financial
Metrics
28.50%
71.50%
Brand contribution
$274M
$110M
Percentage of Brand
contribution to Market Value
0
100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
600,000,000
700,000,000
800,000,000
2006
2007
2008
2009
2010
Implicit Market Value
$384M
$709M
$193M
Market Value
Brand Performance(US)
Construct score
Percentage score
3. 7/19/2013 3
Many factors influenced the brand’s business’ decline in value
Ba d p r e s s
Co mp e t i t i o n
Co mp e t i t i v e
c a n n i b a l i z a t i o n
L i mi t e d
i n v e s t me n t
i n Br a n d
4. 7/19/2013 4
Brand X’s US and European sales declined sharply after the crisis.
While Latin America shows signs of recovery from a recent drop, Asia
Pacific shows the most growth since 2006
Source: Brand Financial Data 2005-2011
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
200…
200…
200…
200…
200…
200…
200…
200…
200…
200…
200…
200…
200…
200…
200…
200…
200…
200…
200…
200…
201…
201…
201…
201…
201…
US Net Sales
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
2006 2007 2008 2009 2010
EU Net Sales
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
2006 2007 2008 2009 2010
LA Net Sales
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
2006 2007 2008 2009 2010
AP Net Sales
Brand X Regional Sales
5. 7/19/2013 5
Implicit Market Value of the brand = Market-to-Sales multiplier * Sales
2010 Market
Value
($384M)
Market to
Sales Ratio
(1.8)
Return on Sales
(21.6%)
Sales
($213M,
Global)
6. 7/19/2013 6
In 2006, Brand X had a market value of nearly $709M, which has
fallen to just below $384M today, despite overall flat global sales
Source: BrandAsset® Valuator International Data 2005-2011
0
100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
600,000,000
700,000,000
800,000,000
0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
2006
2007
2008
2009
2010
Total Global Sales Implicit Market Value
$384M
$709M
Global Sales Brand Valuation
$193M
7. 7/19/2013
• Measure brand health of brands insured
• Develop sector valuation models for all brands insured
• Track brand equity of insured brands consistently in the database
• Assess impact of crises and events to brand value
• Identify academics who can serve as experts on the impact of the crisis or
event to the brand value
7
Ways BAV and Brand X can work together
8. 7/19/2013
BAV® Consulting
3 Columbus Circle
New York, NY 10019
www.bavconsulting.com
8
BAV® Consulting TeamBAV® Consulting Team
8
Anne Rivers
SVP, Brand Director
917.836.9884
212.210.3553
gbedi@bavconsulting.com
Geetu Bedi
Vice President
917.858.3926
212.210.4108
arivers@bavconsulting.com
Huei-Yu Lin
Brand Analyst
hlin@bavconsulting.com
Oliver Palley
Brand Analyst
opalley@bavconsulting.com
Liza Rtischev
Brand Analyst
lrtishchev@bavconsulting.co
m
Jennifer Xue
Brand Analyst
jxue@bavconsulting.com
Anna Blender
Brand Consultant
ablender@bavconsulting.com
Jessica Li
Senior Brand Analyst
jli@bavconsulting.com
Swati Bhargava
Brand Consultant
sbhargava@bavconsulting.co
m
