Brand Value Chain

Brand value chain is a structured approach to assessing the sources and outcomes of brand equity
and the manner by which marketing activities create brand value. Therefore it is important to
properly manage brands to maximize their value-or brand equity to the firm.

Marketing Program Investment

The brand value creation process begins when the firm invests in a marketing program
targeting actual or potential customers. Any marketing program that can be attributed to
brand value development, either intentional or not, falls into this category product
research development, and design; trade or intermediary support; and marketing
communications. Colgate-Palmolive (India) Limited spent 11 per cent more towards
advertisement and sales promotion at Rs 200.50 crore as compared to the Rs 180.55 in 2016
and 29.8 per cent more than the Rs 154.49 crore in the immediate trailing quarter.

 Program Multiplier
The program multiplier determines the ability of the marketing program to affect the
customer mind-set and is a function of the quality of the program investment. The customer
multiplier determines the extent to which value created in the minds of customers affects
market performance. This result depends on contextual factors external factors external to the
customer. The ability of the marketing programme to affect the mind set of the customer
depend on quality of marketing programme investment like Dentist ne Sujaya No.1 Brand
to create the effect in customer mind in such a way that whenever they think about toothpaste
Colgate comes in the mind.

Customer Mindset
The consumer mindset includes everything that exists in the minds of the customer with
respect to a brand. Colgate has a high brand awareness of its products amongst the
customers. Colgate has been successful in developing a positive attitude of the brand in the
minds of the customers through effective advertising and promotions. Colgate also has a
higher customer base because of its superior quality products and the lower pricing.

Consumer Multiplier
Success with consumers or customers may not translate to success in the marketplace,
however, unless other conditions also prevail. The ability of the customer mind set to create
value at the next stage depends on various contextual market factors external to the customer.

Market Performance
The consumer multiplier and market multipliers affect how customers react or respond in the
marketplace to the brand in a variety of ways. There are six key aspects or dimensions of that
response. They are Price Premium, Price Elasticity, Market Share, Category Extensions, Cost
structure & Brand Profitability. Colgate has been successful in achieving a high market share
due to its strategy of premium pricing amongst all its competitors. The company has also
gained a expansion success by moving onto different product categories.

 Market Multiplier
The market multiplier determines the extent to which the value shown by the market
performances of a brand is manifested in shareholder value. It depends, in part, on the actions
of financial analysts and investors.

Shareholder Value
Based on available information about a brand, as well as many other considerations, the
financial marketplace formulates opinions and makes various assessments that have direct
financial implications for the brand value. The stock price of Colgate is 67.53. P/E Ratio of
Colgate is 27.09.