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Arriving at brand value
Brand valuation is in the news as of now, with the Vijay Mallya and Kingfisher Airlines affair. How does one really get a brand valued?
Mumbai
Naresh, brand valuation is a tricky terrain. There are a total of 11 different brand valuation methods. Most good practices use a mix of two. One of the first points to remember in brand valuation is that it can get to be a subjective assessment depending on the consultancy offering the brand valuation. To that extent, good corporate practice would invite three independent brand valuations and then offer all three to potential investors, shareholders, bankers, or whoever. While assigning brand valuation, one of the most reliable methods is the discounted cash-flow methodology which respects the robustness of the business as it exists and as it promises to pan out over a limited tenure. This tenure could even be as long as ten years.
The important point to remember is the fact that a brand has a value till it is alive. The moment a business is dead, brand value has a way of scraping the trough of the brand valuation number.
I am about to launch a brand of tea in an already crowded market. What’s a good way to make a difference?
West Bengal
Sunanda, tea is a cluttered market, for sure. In many ways it is the oldest marketed commodity in India. And there exist a total of 8,762 brands in the country.
If you want to make a difference, tea needs to get younger, and more in sync with the median age profile of the country which is 25. Tea needs to think young, think niche, think cold as well.
Tea needs to take the high ground of being a fun and healthy drink, in that order. It needs to shout the language of fun 90 per cent and the language of health 10 per cent for now.
How does a startup establish the brand?
Gurgaon
Revathi, a startup needs recognition. This recognition is all about the ability of the startup to command a virtual and real space in the minds of both investors and consumers alike.
A startup is best established by consumer experience. Pour your passion into creating positive experiences. Positive experiences deliver rich dividends. Do remember that a startup is a mere label till experienced. The brand label will get franchise on the basis of experience. If you are a brand that delivers meat at the doorstep, it is not enough for you to have a memorable and exciting brand name alone. It is important to ensure that every step of the consumer interaction is packed with delight. Most startups err on this count. They invest in a nice sounding brand name, and then they run after numbers. It is important to pour passion into every number that you count as a sale.
Startup brands that do this establish a reputation that is its most inalienable trait.
Harish Bijoor is a brand strategy expert and CEO, Harish Bijoor Consults Inc. Mail your queries to cat.a.lyst@thehindu.co.in
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