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Brand Analysis onFacebook, Inc.

Presented By2010/MBA/WE/MKT/15 - R Shyamali Dias2010/MBA/WE/MKT/14 - Nuwan Ireshinie De Silva

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Presentation Outline

Introduction to the Organization

Objective of the Study

Literature Review

Findings

Analysis of the Findings

Conclusion

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Introduction to Facebook

Social utility that connects people with friends and others who work, study and live around them

The Business of the Organization

Business/Revenue Model of Facebook

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Business - Revenue Model

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Management

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Objective of the study

To analyze the brand value, revenue, profitability,

advertising expenditure and share price(s) of the

organization and to understand the link and

relationship between these dimensions from a

strategic brand management perspective.

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Literature Review

Four Main Steps in Strategic Brand Management Process

Identify & Establish Brand Positioning & Value

Plan & Implement Brand Marketing Programs

Measure & Interpret Brand Performance

Grow & Sustain Brand Equity

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Literature Review

Brand Building Blocks

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Findings.. .

YearBrand Rating

Brand Value (USD)

Enterprise Value(USD)

Pre-tax Income (USD)

Sales Revenue

(USD) 

Advertising

Spent (USD)

Share PriceUSD

2013   - 59.67 Billion (Jan) - - - 31.04per share

2012 AAA 8.7 B 44.46 B (Sept 30th)64.78 B (Jun 30th)Avg. 56.30 B

775M 4.64 B  

- 38 per share

2011 A 3.6 B - 1.7 B 3.71 B 427M -

2010   - - 1.01 B 1.97 B 187M -

2009   - - 254 M 777 M 115M -

2008   - - (56) M 272 M - -

2007   - - (135) M 153 M - -

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Analysis

Comparing brand value, enterprise value, revenue and profit

Share prices

2007 2008 2009 2010 2011 2012

Sales Growth _ 77.78% 185.66% 154.05% 87.99% 25%

Pretax Income Growth _ 58.52% 296.85% 68.15% 555.57% -54%

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AnalysisAwareness Level and Usage of Facebook on Internet

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Analysis | Main Argument

“Brand” does not become valuable just because it has so many users but that it becomes valuable because it can derive Revenue.

Facebook revenue model and business model does not fit.

Customers and Users are different parties.

Employees and investors have less trust.

Facebook is banned in some countries and in many organizations around the world

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Analysis | Main Argument

Privacy fails in many situations.Mission - “make the world more open and connected”.

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AnalysisStrategic Brand Management Process at Facebook

Key Concept For Facebook Users For Facebook Customers

Mental Maps Social media platform Advertising platform

Competitive Frame of

Reference

Social Media website Online Advertising channel

Points of Parity & points of

difference

Points of Parity – allow users to

connect each other

Point of Difference –

Simplicity, Innovations, viral

networking

Points of Parity – Allow customers

to do advertising,

Point of Difference - ?Core Brand Association Connecting people Drive visitors to advertisers

and generate revenue.

Brand Mantra Social utility No Brand Mantra for

customers

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AnalysisFacebook Brand Analysis with Customer -Based Brand Equity Model

For users - Yes

For customers - No

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Analysis

Facebook Brand Analysis with Customer -Based Brand Equity Model

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Conclusion

Success as a Social Media Brand But not as an online advertising channel

Revenue model is not strong enough to have higher brand value

No information to justify the brand building expenditure other than R&D

Brand Rating is AAA with high awareness level among users

Rapid growth of mobile phone usage is a threat

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Thank You………

Future of Facebook?