slide1 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Brand Equity PowerPoint Presentation
Download Presentation
Brand Equity

Loading in 2 Seconds...

play fullscreen
1 / 13

Brand Equity - PowerPoint PPT Presentation


  • 305 Views
  • Uploaded on

The Brand Equity Chain. Brand Meaning. Brand Equity. Brand Value.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Brand Equity' - Rita


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

The Brand Equity Chain

Brand Meaning

Brand

Equity

Brand

Value

slide2
“The value of brands as shareholder assets have been widely recognized, but the crucial role of marketing and advertising in building this brand equity and so enhancing these assets now on the balance sheet, is still not fully recognized”

David Bell, Chairman of the Financial Times

slide3

What We Know

  • Past studies have demonstrated that brand equity is associated with stock prices
      • Aaker and Jacobson (1994)
      • Kerin and Sethuraman (1998)
      • Sullivan and Simon (1993)
what we don t know
What We Don’t Know
  • Whether these stock prices provide greater returns to their shareholders than, say
  • The market as a whole
  • Some other relevant benchmark
what we don t know5
What We Don’t Know
  • Whether the difference in stockholder returns remain after adjusting for risk
brands matter an empirical demonstration of the creation of shareholder value through brands

Brands Matter: An Empirical Demonstration of the Creation of Shareholder Value Through Brands

Thomas J. Madden

Frank Fehle

Susan M. Fournier

portfolios

Portfolios

Strong Brands

Benchmark

monthly and yearly returns

Monthly and Yearly Returns

MonthlyYearly

T-Bills .42% 5.16%

Full Market 1.52% 19.84%

Reduced Market 1.34% 17.32%

Brand 1.98% 26.53%

economic significance

Economic Significance

$1,000 Dollar investment in 1994

Overall Stock Market $3,195

Brand Portfolio $4,525

results adjusting for risk

Results: Adjusting for Risk

Beta

Alpha

Full Market

.00

1.00

Portfolio

Brand

.57

.85

slide11

Financial

Success

Category

Success

Brand

Success

Forecast

EVA

Role

of

Branding

Brand

Strength

Score

Brand

Risk

Brand

Earnings

Brand

Value

results adjusting for risk12

Results: Adjusting for Risk

Beta

Alpha

Full Market

.00

1.00

Portfolio

Brand

.57

.85

.84

Brand weighted

1.32

slide13

Key Financial Ratios

Brand Asset EmphasisMatch

Gross Profit Margin 44.89 39.09

Net Profit Margin 7.35 5.78

Return on Assets 7.18 4.12

Return on Investment 13.03 7.75