Analysis of brand valuation techniques for cereal brand: Kellogg

Pages: 31-34
Palak Agarwal, Rahul Chhugani, and Vedant Wanchoo (Anil Surendra Modi School of Commerce, Narsee Monjee Institute of Management Studies, Mumbai, Maharashtra)

This paper measures the brand value of the American cereal brand “Kellogg” that sells cereals and convenience food worldwide at a premium, generating high profit margins for the company. It uses brand valuation approaches in order to arrive at a monetary value for the brand “Kellogg” by analysing the financial advantage the company possesses because of the brand name. Kellogg’s Co is compared to Post Holdings Inc., a generic cereal manufacturing company. Generic operating margin approach, Generic return on capital approach, Generic excess returns approach and Relative valuation are four valuation approaches used to get a valuation range for the “Kellogg” brand. After using these techniques, we arrived at a brand value range of $10661 million to $21000 million for Kellogg’s Co.