As we total up the various components of the valuation, we have valuated the value of the brand SK-II in the Singapore market to be $26,449,485.

 

However, there is no one universally agreed-upon approach when valuing brand equity. Like every other valuation approach, Interbrand’s brand valuation methodology has its own limitations. The primary disadvantage of the valuation approach is that they necessarily have to make a host of potentially oversimplified assumptions to arrive at one measure of brand equity, such as

 

1. Constant Discount Rate

2. Target segments remain constant

3. Constant Role of brand index

4. Fixed annual growth across 5 years

5. Only accounts for 5 years of earnings

 

Hence, we do recognizes that our brand valuation model may not be entirely accurate especially so as we have to make several other assumptions in our measurement dimensions such as the Role of Brand and the Brand Strength. This is so as SK-II is only one of the brands under P&G and its nearly impossible for us to get much in-depth knowledge of the brand. Thus, many of these values are only based on our impressions towards the company and brand or limited secondary resources that we can find from the various research platforms.

 

From our past assignments, they have proven again and again that Singaporeans are generally aware of the brand SK-II and have already formed a certain expectation of the brand performance. However, the brand is still perceived as expensive and only takes up 3.7% of the fragmented beauty and personal care industry in Singapore. Therefore, our group will like to look into strategies in our upcoming assignments to improve on the perceived price to equalize it to the perceived quality and create brand resonance with its customers, thereby boosting its brand value.