The Annual Report on Sri Lanka's Most Valuable and Strongest Brands April
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Sri Lanka 100 2018 The annual report on Sri Lanka’s most valuable and strongest brands April 2018 Contents. Foreword - David Haigh 4 Foreword - Ruchi Gunewardene 5 About Brand Finance 6 Consulting Services 7 Definitions 8 Executive Summary 10 Consumer Brands Table 14 Understand Your Brand’s Value 16 Methodology 17 Our Clients 18 Our Services in Sri Lanka 19 Our People 20 Foreword. The Annual Review of Sri Lanka’s Brands. What is the purpose of a strong brand: to attract customers, to build loyalty, to Brand Finance Lanka has been publishing Sri Lanka’s brand league table consisting motivate staff? All true, but for a commercial brand at least, the first answer must of the most valuable brands for 15 consecutive years. Over the years, we have added always be ‘to make money’. and enhanced this so as to provide our readers with a well researched and definitive annual guide to the most valuable and strongest brands that are operating in Sri Huge investments are made in the design, launch, and ongoing promotion of Lanka. brands. Given their potential financial value, this makes sense. Unfortunately, most organisations fail to go beyond that, missing huge opportunities to Doing so requires data for a fact-based analysis and we use two sources. One is the effectively make use of what are often their most important assets. Monitoring of financial data available from listed companies on the Colombo Stock Exchange brand performance should be the next step, but is often sporadic. Where it does (CSE) and the other is the exclusive market research study that is conducted for take place, it frequently lacks financial rigour and is heavily reliant on qualitative Brand Finance Lanka. This data is provided through face to face interviews measures, poorly understood by non-marketers. conducted in the last quarter of 2017. Whilst the financial information from annual reports helps us in computing brand value, the market research data enables us to David Haigh As a result, marketing teams struggle to communicate the value of their work asses the consumer brand equity, both of which are key in our valuation model. Ruchi Gunewardene CEO, Brand Finance and boards then underestimate the significance of their brands to the business. Managing Director, Sceptical finance teams, unconvinced by what they perceive as marketing The landscape of businesses in Sri Lanka is changing, along with the need to Brand Finance Lanka mumbo jumbo, may fail to agree necessary investments. What marketing spend understand how brands are impacting the lives of everyday Sri Lankans. Companies there is, can end up poorly directed as marketers are left to operate with need to define their strategies which are aligned closely with the message they would insufficient financial guidance or accountability. The end result can be a slow like to communicate through their brand. The need to understand how your brand is but steady downward spiral of poor communication, wasted resources, and a performing against your competitors is as important as ever, considering the current negative impact on the bottom line. crop of Sri Lanka’s younger demography who hold brands that resonate with their inner beliefs in very high esteem. Gone are the days where brands only focused on Brand Finance bridges the gap between marketing and finance. Our teams price - consumers are now looking for much more. have experience across a wide range of disciplines from market research and visual identity to tax and accounting. We understand the importance of design, In addition to the consumer-facing brands, we have this year valued the advertising, and marketing, but we also believe that the ultimate and overriding conglomerate brands to commemorate our 15th year of publishing the Sri Lanka purpose of brands is to make money. That is why we connect brands to the league table. Since these businesses dominate the Colombo Stock Exchange and bottom line. account for a major share of value whilst also topping the revenue rankings, this sector warranted a closer review regarding how they are leveraging their corporate By valuing brands, we provide a mutually intelligible language for marketing and brands. Further, to provide a better independent analysis of the brands operating in finance teams. Marketers then have the ability to communicate the significance the country, we have used our market research to list Sri Lanka’s most loved brands, of what they do, and boards can use the information to chart a course that and the strongest brands in the following categories: corporate exporters, maximises profits. Without knowing the precise, financial value of an asset, how multinational corporates and the still nascent but emerging e-commerce brands. This can you know if you are maximising your returns? If you are intending to license information is available upon request. a brand, how can you know you are getting a fair price? If you are intending to sell, how do you know what the right time is? How do you decide which brands to discontinue, whether to rebrand and how to arrange your brand architecture? Brand Finance has conducted thousands of brand and branded business valuations to help answer these questions. Brand Finance’s research revealed the compelling link between strong brands and stock market performance. It was found that investing in highly-branded companies would lead to a return almost double that of the average for the S&P 500 as a whole. Acknowledging and managing a company’s intangible assets taps into the hidden value that lies within it. The following report is a first step to understanding more about brands, how to value them and how to use that information to benefit the business. 4. Brand Finance Report Sri Lanka 100 April 2018 Brand Finance Report Sri Lanka 100 April 2018 5. About Brand Finance. Consulting Services. Brand Finance is the world’s leading independent branded business valuation and strategy consultancy. 1. Valuation: What are my intangible 2. Analytics: How can I improve assets worth? marketing effectiveness? We are a specialist consultancy dedicated to the better understanding of marketing finances, offering a highly professional approach to Valuations may be conducted for technical Analytical services help to uncover drivers marketing accountability and brand evaluation. Brand Finance has purposes and to set a baseline against of demand and insights. Identifying the developed transparent and accessible brand evaluation which potential strategic brand factors which drive consumer behaviour methodologies grounded in marketing and investment practice. The scenarios can be evaluated. allows an understanding of how brands N 2. work we do often enables both marketing and finance departments to IO AN create bottom-line impact. + Branded Business Valuation T A come together to discuss issues, analyse opportunities and to A L + Trademark Valuation U Y Market Research Analytics + envisage future scenarios together, at the same table. Hence, we help L T + Intangible Asset Valuation A I Return on Marketing Investment + V C to bridge the gap between marketing and finance. + Brand Contribution . S Brand Audits + 1 Brand Scorecard Tracking + For more than 20 years we have helped companies to connect their brands to the bottom line, building robust business cases for brand decisions, strategies and investments. In so doing, we have helped finance people to Brand & evaluate marketing programmes and marketing people to present their case in the Board Room. We have worked Business Value S with companies of all shapes and sizes, from blue-chip internationals such as Vodafone and Shell, to small iconic brands 4. Transactions: N 3. Strategy: How can 3 . O such as Asprey and Ministry of Sound. We also work with tax authorities, IP lawyers and private equity firms. I Is it a good deal? S I increase the value of T T C R Can I leverage my A my branded business? A S Every year Brand Finance values over 3,500 brands – across all sectors and geographies. The results are tabulated T N E G intangible assets? A Strategic marketing services enable R and published in the media, with partners such as The Banker, to raise awareness of brands as valuable business Y T . 4 assets, which must be managed and invested in. Other Brand Finance studies include the Nation Brands 100, the Transaction services help buyers, brands to be leveraged to grow Football 50 and the Global Intangible Finance Tracker (GIFT). sellers, and owners of branded businesses businesses. Scenario modelling will get a better deal by leveraging the value of identify the best opportunities, ensuring Sri Lanka’s most valuable brands are published in The Brands Annual through Media Services / LMD. their intangibles. resources are allocated to those activities which have the most impact on brand and business value. + M&A Due Diligence For more information, please visit our website: Brand Governance + www.brandfinance.com + Franchising & Licensing + Tax & Transfer Pricing Brand Architecture & Portfolio Management + + Expert Witness Brand Transition + Contact Details. Brand Positioning & Extension + For further information on Brand Finance’s services and valuation experience, For business enquiries, please contact your local representative: please contact: Country Contact Email Address Ruchi Gunewardene Asia Pacific Samir Dixit [email protected] +65 906 98 651 Australia Mark Crowe [email protected] +61 282 498 320 Managing Director Canada Charles Scarlett-Smith [email protected] +1 647 3437 266 MARKETING FINANCE TAX LEGAL