02: Trung PLEASE REFER TO THE EXCEL FILE ON CAVAS . Calculate the adjusted operating income for the respective years Calculate average adjusted operating income for the time period designated (pay attention to the ratio for the adjustment) Calculate average net income after tax for the time period designated Calculate brand value by multiplying the average net income after tax by the brand strength multiple A B D E 1 J K L M N o P 1 Harrison F G Crawford Yr 1 Yr 2 Signet Yr 1 Yr 2 Comp Set Average Hamilton Yr 1 Yr 2 Parker Yr 1 Yr 2 Davis Yr 1 Yr 2 2 Yr 1 Yr 2 86% 86% 71% 71% 70% 67% 76% 72% 86% 85% 97% 32% 77% 83% 30% 3 Brand-Performance Indicators 4 Guest satisfaction 5 Return intent 6 Price-value perception 7 Business users' first choice 8 Leisure users' first choice 9 Mean performance Brand-performance Index 94% 36% 29% 83% 23% 32% 24% 29% 35% 84% 14% 14% 10% 87% 92% 34% 58% 63% 87% 91% 29% 50% 38% 62% 74% 27% 13% 18% 27% 10% 35% 84% 87% 41% 20% 20% 30% 11% 17% 14% 10% 32% 31% 17% 58.2 41% 58 100 10 11 21 21 8 10 28 70 24.6 14 55 14 24 15 15 12 Brand awareness 13 Top-of-mind recall 14 Brand-awareness Index 61.02 15 0 0 0 0 0 0 0 0 0 O 16 Brand-equity index and summary 17 Brand-performance index (80%) 18 Brand awareness index (20%) 100 61 0 0 0 0 0 0 0 0 0 0 0 0 19 O 0 0 0 0 0 0 0 0 0 92 0 20 Brand equity index 21 Kellogg's Estimated Brand Value ($5.5 billion worldwide sales in 1994) ($ billion) 1.000 1 1994 Worldwide Operating Income 2 1993 Worldwide Operating Income 0.931 3 Less: Estimated Operating Income of An Equivalent Unbranded Product 0.088 4 1994 Adjusted Operating Income 5 1993 Adjusted Operating Income 6 Weighted 2 year average of Adjusted Operating Income (1994/1993 = 2:1) 7 Less: US Corporate Tax 34% 8 Net Income After Tax (Weighted 2 year average) 9 Estimate of Brand Strength Multiple 18.760 (refer to InterBrand Formulary Approach in class discussion) 10 Estimated 1994 Brand Value A B D E F. G H 9 Estimate of Brand Strength Multiple 18.760 (refer to InterBrand Formulary Approach in class discussion) 10 Estimated 1994 Brand Value Net Income After Tax x Brand Strength 32% Median capital/sales ratio for the industry Estimated capital investment to produce sales of $5.5 bn for a unbranded product = 32%*$5.5 Assumed capital ROI for unbranded product Esimated operating income for unbranded product = 5%*1.76 1.760 5% 0.088 02: Trung PLEASE REFER TO THE EXCEL FILE ON CAVAS . Calculate the adjusted operating income for the respective years Calculate average adjusted operating income for the time period designated (pay attention to the ratio for the adjustment) Calculate average net income after tax for the time period designated Calculate brand value by multiplying the average net income after tax by the brand strength multiple A B D E 1 J K L M N o P 1 Harrison F G Crawford Yr 1 Yr 2 Signet Yr 1 Yr 2 Comp Set Average Hamilton Yr 1 Yr 2 Parker Yr 1 Yr 2 Davis Yr 1 Yr 2 2 Yr 1 Yr 2 86% 86% 71% 71% 70% 67% 76% 72% 86% 85% 97% 32% 77% 83% 30% 3 Brand-Performance Indicators 4 Guest satisfaction 5 Return intent 6 Price-value perception 7 Business users' first choice 8 Leisure users' first choice 9 Mean performance Brand-performance Index 94% 36% 29% 83% 23% 32% 24% 29% 35% 84% 14% 14% 10% 87% 92% 34% 58% 63% 87% 91% 29% 50% 38% 62% 74% 27% 13% 18% 27% 10% 35% 84% 87% 41% 20% 20% 30% 11% 17% 14% 10% 32% 31% 17% 58.2 41% 58 100 10 11 21 21 8 10 28 70 24.6 14 55 14 24 15 15 12 Brand awareness 13 Top-of-mind recall 14 Brand-awareness Index 61.02 15 0 0 0 0 0 0 0 0 0 O 16 Brand-equity index and summary 17 Brand-performance index (80%) 18 Brand awareness index (20%) 100 61 0 0 0 0 0 0 0 0 0 0 0 0 19 O 0 0 0 0 0 0 0 0 0 92 0 20 Brand equity index 21 Kellogg's Estimated Brand Value ($5.5 billion worldwide sales in 1994) ($ billion) 1.000 1 1994 Worldwide Operating Income 2 1993 Worldwide Operating Income 0.931 3 Less: Estimated Operating Income of An Equivalent Unbranded Product 0.088 4 1994 Adjusted Operating Income 5 1993 Adjusted Operating Income 6 Weighted 2 year average of Adjusted Operating Income (1994/1993 = 2:1) 7 Less: US Corporate Tax 34% 8 Net Income After Tax (Weighted 2 year average) 9 Estimate of Brand Strength Multiple 18.760 (refer to InterBrand Formulary Approach in class discussion) 10 Estimated 1994 Brand Value A B D E F. G H 9 Estimate of Brand Strength Multiple 18.760 (refer to InterBrand Formulary Approach in class discussion) 10 Estimated 1994 Brand Value Net Income After Tax x Brand Strength 32% Median capital/sales ratio for the industry Estimated capital investment to produce sales of $5.5 bn for a unbranded product = 32%*$5.5 Assumed capital ROI for unbranded product Esimated operating income for unbranded product = 5%*1.76 1.760 5% 0.088