Professional Documents
Culture Documents
CFO Alliance
Phoenix, Arizona
February 3, 2011
“In the past few decades there has been a dramatic shift,
a transformation, in what economists call the production
function of companies – the major assets that create value
and growth. Intangibles are fast becoming substitutes for
physical assets”
Baruch Lev, Accounting and
Finance Professor, NYU
The business impact of
marketing and branding
8.0
7.0
6.0
5.0
4.0
3.0
1.0
500 account for only 22% of their overall market value.
0.0
Artistic Copyright
The business impact of
marketing and branding
Brand Strength
Analysis of the relative valuation of 140
companies over a 10 year period
Companies allocated to quadrants
based on whether they had above- or 1.0 1.9
below-median performance on
profitability and brand strength Low
Low High
Profitability (EVA)
Tea
&
Toyotas
AC NIELSEN: Analysis of Category Sales For
Bagged (Non-Specialty) Tea
National Brands
Market Share
2.70/lb 81%
17% Price
Premium
4+x share
2.23/lb
19%
Separated At Birth:
Twin Products Meet Separate Fates
TOYOTA COROLLA Sales in 2000,
thousands of
15,223 14,973
250 units
3,556 11,417
230
CHEVROLET PRIZM
15,315 14,315
1,000
4,360 9,955
52
What did you hear today that may help improve the
dialogue and working effectiveness? Specific
examples? How to improve? Next steps?