bav solves your crisis!
TRANSCRIPT
BAV Can Solve Your Brand Crisis!
04/12/2023 2
Case study: the impact of a crisis on brand valueUsing a combination of financial and brand data, BAC determined Brand X’s implicit market value
Source: Brand data and BrandAsset® Valuator
Market toSales Ratio
Return on Sales
Sales
Market Value
Relevance
Rugged
BrandStature
Unique &
Visionary
Inte
rnati
onall
y
Brand Metrics
05Q
1
05Q
2
05Q
3
05Q
4
06Q
1
06Q
2
06Q
4
07Q
2
07Q
3
07Q
4
08Q
1
08Q
2
08Q
3
08Q
4
09Q
1
09Q
2
09Q
3
09Q
4
10Q
1
10Q
2
10Q
3
10Q
4
11Q
1
2.5
3
3.5
4
4.5
5
10
12
14
16
18
20
Brand Stature Relevance
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%
$274M
$110M
Percentage of Brand contribution to Market Value
2006
2007
2008
2009
2010
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
Implicit Market Value
$384M$709M
$193M
Market Value
Brand Performance(US)Construct score
Percentage score
04/12/2023 3
Many factors influenced the brand’s business’ decline in value
Bad pr es s
Compet i t i on
Compet i t i ve c anni bal i z at i on
Li mi t ed i nves t ment i n Br and
04/12/2023 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
20
02
00
20
02
00
20
02
00
20
02
00
20
02
00
20
02
00
20
02
00
20
02
00
20
02
00
20
02
00
20
12
01
20
12
01
20
1
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000US Net Sales
2006 2007 2008 2009 2010$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000EU Net Sales
2006 2007 2008 2009 2010$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
LA Net Sales
2006 2007 2008 2009 2010$0
$20,000,000$40,000,000$60,000,000$80,000,000
$100,000,000$120,000,000$140,000,000$160,000,000
AP Net Sales
Brand X Regional Sales
04/12/2023 5
Implicit Market Value of the brand = Market-to-Sales multiplier * Sales
2010 Market Value
($384M)
Market toSales Ratio
(1.8)
Return on Sales(21.6%)
Sales($213M, Global)
We know the Sales for the
brand globally
We also know Return on Sales
for the brand globally
We calculated the multiple by looking at the brand’s unique brand characteristics and financial data from comparable firms
04/12/2023 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
2006
2007
2008
2009
2010
0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
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
Total Global Sales Implicit Market Value
$384M$709M
Global Sales Brand Valuation
$193M
04/12/2023
• 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
04/12/2023
BAV® Consulting3 Columbus Circle
New York, NY 10019
www.bavconsulting.com
8
BAV ® Consulting TeamBAV ® Consulting Team
8
Anne RiversSVP, Brand Director
917.836.9884212.210.3553
Geetu BediVice President917.858.3926212.210.4108
Huei-Yu LinBrand Analyst
Oliver PalleyBrand Analyst
Liza RtischevBrand Analyst
Jennifer XueBrand Analyst
Anna BlenderBrand Consultant
Jessica LiSenior Brand Analyst
Swati Bhargava Brand Consultant