Question hour

What is the net worth of a celebrity brand endorser?

Mumbai

Anthony, the net worth of a celebrity is quite an amalgam of many things. First, there is the fee he/she charges from the team he/she plays for. It is a sum of all the salaries he might draw. It is a function of the endorsement value he derives from the several brands he promotes. It is a function of all the assets he owns, including the value of what he splurges on. It is a function of the many investments in his name. It is a function of the assets minus the liabilities in his name in terms of brand image.

Apart from the physical valuation as delineated above, the brand star has intangibles on offer that can be valued as well. It is about the fan following that he has, and the ability to monetise that in terms of being able to attract endorsement value from brands.

The net worth of a soccer star, for example, is therefore a function of many variables. It is also contextual to game and timing. In many ways, because of all the intangibles, it is a myth as well. A myth of a number that buoys up star appeal and establishes a pecking order people love to pore over. The net worth of a star can be established as a point of brand valuation as well, using the discounted cash flow method, which actually evaluates the star earning potential over the next five years, for instance.

A complex set of an issue that is 20 per cent tangible and 80 per cent intangible.

The “affordable housing “ brand is growing in India. Some tips for me, please?

Jalandhar

Passi saab , “affordable” is really a contextual terminology. It changes with context, location and society. As of today, “affordable homes” mean mid-market segment homes that people can buy with a small percentage of the payment being taken care of by a loan. What is affordable today was not affordable yesterday and the same will be true of the future, when the entire format of affordability will change.

As the Indian economy enters the boom phase with a 7.0 per cent GDP growth rate and assured jobs and a more secure job economy at large, affordable homes promise to emerge as the largest segment (in sheer numbers) in the housing market. This will be a segment that promises all the bells and whistles of apartment living with swimming pools, tennis courts and squash courts, good security and good-sized homes. The only missing aspect in affordable homes will be location. Expect the affordable homes movement to spread out from the heart of your city to its periphery. The edges of Jalandhar will develop dramatically with the best names in construction offering the best.

This market segment is already full of buzz. It is going to get noisier in the months to come.

This segment will require branding with all its positives. There is a clutter of names in this space. If consumers are to truly pick the better names, the role of branding is big here. Constructions must not only be built with integrity and care, but will need to convey that message directly to the consumers. Branding is an excellent tool to use towards this purpose.

The real estate market today is at large a commodity market. From amidst this commodity market need to emerge quasi-brand names that convey the pedigree of the builder. The real estate segment has earned for itself a less than optimal reputation to date.

This has been largely due to practices that have not been all that positive. Promising the sky and delivering the gutter has been one such issue. Delays in delivery have also been a disease in this segment. All new branding needs to focus on erasing such memories and establishing for the category a more responsible, committed, and integrity oriented image.

In terms of branding, I do believe there is a need for generic branding of the category as well, ensuring that the category is looked at with respect, rather than with suspicion by the consumers at large.

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