Team A13
Branding – A Business Essential
“In a world of unlimited choice, brands will matter more than ever”
Michael Eisner, Walt Disney Company
Team A13
Index
• Why Branding?
• Valuing Brands
• Branding – An Exercise
• A Future Example
• Final Notes
Yadu Singh
Team A13
Why Brands Matter – A Company Perspective
Functionally, a brand is a competitive
differentiator that allows the company to:
• Gain market share at prevailing prices
• Maintain market share at a premium price
• Claim a premium price for your products
• Stabilize demand
Team A13
…taking into account the external world where relational assets drive value
Source: MIT Sloan School of Business
Brand Brand EquityEquity
Team A13
Index
• Why Branding?
• Valuing Brands
• Branding – An Exercise
• A Future Example
• Final Notes
Siarhei Novik
Team A13
How do brands add value?
They shift the demand curve …
… allowing to charge higher price at a given
sales volume
The company is known throughout the neighborhood
as "not the cheapest, just the best."
Team A13
How to Valuing Brands?
Several methods could be employed:
• Price premium
• Earnings valuation*
• Royalty payment
*Source: BusinessWeek Valuation (Interbrand)
• Market value
• Historical costEarnings valuation*
Team A13
Index
• Why Branding?
• Valuing Brands
• Branding – An Exercise
• A Future Example
• Final Notes
Herman Lombard
Team A13
INSEAD
What do you think and feel when you see this?
Do you think and feel?
Quality
Influence
Worth the investment
Status
Or?
Just another Business School
RSM competitor
Too expensive
Bastards didn’t let me in!
Team A13
The INSEAD Brand?
INSEAD
AttributesAttributes• ProfessionalProfessional• PrestigePrestige• ExclusiveExclusive
CultureCulture• RichRich• DiverseDiverse• Varied Varied
BenefitsBenefits• RecognitionRecognition• StatusStatus• Quality Education Quality Education
ValuesValues• AchievementAchievement• IntellectIntellect• Commitment Commitment
PersonalityPersonality• FrenchFrench• Business likeBusiness like• Customer focused Customer focused
UserUser• YoungYoung• Talented Talented • DynamicDynamic
Team A13
Key Brand Building Elements
• Alumni Network – Lifelong Network (Branding)
• Alliances -
• Faculty and Research:
– Publications: INSEAD Quarterly, In the News
– Special Interest: Thought Leadership Publications
– Case writing
• Event Marketing – Symposia, Conferences
• Sponsorships
• Public Relations and Press Releases
• Recruitment Events
Team A13
Index
• Why Branding?
• Valuing Brands
• Branding – An Exercise
• A Future Example
• Final Notes
Fang Liao
Chris Mourikis
Team A13
The Future of RSM
• Date: 2 March 2014• Place: MBA Insider Office, London• Interviewer: Chris Jr. Mourikis
(MBA Insider)• Interviewee: Ms. Michelle Page
Dean: Erasmus School of Management
Team A13
Index
• Why Branding?
• Valuing Brands
• Branding – An Exercise
• A Future Example
• Final Notes
Fang Liao
Team A13
Final Notes
• Branding is not everything
• Branding is time consuming and expensive
• It is not a sure path to success or survival
• However, a good brand allows you to
charge a higher price & bond with your customers
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