36489674-Airtel-Brand-Valuation

36489674-Airtel-Brand-Valuation - Brand Valuation of Airtel...

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Brand Valuation of Airtel A report Submitted to Prof. S. Govindrajan In partial fulfilment of the requirements of the course Brand Management On 19.09.08 By Ankita Ghosh (b07006) Pratik Gupta (b07027) Raj Kumar Pari (b07030) Yatharth Bhuwalka (b07050)
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CONTENT Executive Summary Brand Valuation Need for Brand Valuation Different Models of Brand Valuation Price Premia Method Rationale Methodology Findings Recommendations Discounted Cash Flow Method Rationale Methodology Findings Book to Market Method Rationale Methodology Findings
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EXECUTIVE SUMMARY A brand is a name or a symbol - and it’s associated tangible and emotional attributes - that is  intended to identify the goods or services of one seller in order to differentiate them from  those of competitors. At the heart of a brand are trademark rights. Brand designates a  product or service as being different from competitors' products and services by signaling  certain key values specific to a particular brand. It is the associations which consumers make  with the brand that establish an emotional and a rational 'pact' between the supplier and the  consumer.  Generally, brand valuation are often focused on balance sheet valuations, the reality is that  the majority of valuations are now actually carried out to assist with brand management and  strategy.   Companies   have   recognized   the   importance   of   brand   guardianship   and  management as key to the successful running of any business. Thus, the values associated  with the product or service is communicated through the brand to the consumer. Consumers  no longer want just a service or product but a relationship based on trust and familiarity. In  return businesses will enjoy an earnings stream secured by loyalty of customers who have  'bought into' the brand. So brand valuation becomes so important in all cases. There are different methods to value a brand, like: Cost Based Approach Book to Market Discounted Cash Flow Method Price Premia Model To measure the brand Airtel we would follow the Book to Market, Discounted Cash Flow  Method and Price Premia method. Price Premia method : The brand value of Airtel will be tested, by whether or not the  consumers are ready to pay a premium for a pen introduced by Airtel. 50 respondents were 
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interviewed as to know how much price they would pay for a pen introduced by Airtel,  Vodafone, BSNL, Reliance and Tata. Assuming that a consumer uses 3 pens a month the  market size and price premium of each brand was calculated. It was found that the average  price that the respondents were willing to pay for a new pen was Rs.3.92. If, this same pen 
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This note was uploaded on 09/21/2011 for the course ECON 101 taught by Professor Flah during the Spring '10 term at Punjab Engineering College.

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36489674-Airtel-Brand-Valuation - Brand Valuation of Airtel...

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