Assessing Brand Value
A private equity firm client was conducting due diligence regarding the potential acquisition of a non-alcoholic beverage company and sought to incorporate a wider marketplace perspective in its evaluation. The research aimed to assess, from the consumer perspective, the brand’s strengths, relevance and growth potential.
1. Quick turnaround online quantitative brand study among 1,000 consumers.
2. In-depth assessment of beverage usage and attitudes, beverage purchase trends, purchase channels, brand perceptions and brand commitment.
While this brand had experienced tremendous growth over the prior three years, we determined that it was benefiting from category trends and strong marketing execution rather than innate brand strength. Whereas brands like Gatorade, Snapple, Red Bull and Vitamin Water defined their respective categories, our conclusion was that this brand was vulnerable to competitive entries and could not sustain its growth trajectory. Based on our research, our client decided to withdraw from the bidding process.