Presentation on theme: "Finexp does not provide guarantee, warranty on analysis and the sources of information of analysis and any decision on the basis of analysis. The analyses."— Presentation transcript:
Finexp does not provide guarantee, warranty on analysis and the sources of information of analysis and any decision on the basis of analysis. The analyses and its source are assumed to be true fair and based on theoretical and empirical experience. Hence Finexp is not liable in explicit or implicit terms. Moreover any decision is subject to market risk and complete diversification or guaranteed investment return is not possible.
Who is your relative? 1+1=3, make synergy effect.
Be proactive Save the relationship coca cola continuously invested in advertisement, publicity, branding
Growth vs. competitors Rabbit vs. tortoise
Three criteria must be met for a communication to be classified as advertising. The communication must be paid for The communication must be delivered through mass media The communication must be attempting to persuade customers to try the product.
The Insurance Market in Bangladesh now consists of two state-owned corporations, forty three and seventeen private sector general & life insurance companies respectively, a total of 62 insurance companies. Thus the insurance sector in Bangladesh has grown up substantially and deepened remarkably with number of companies in both life and general segments. With the expansion of size of the insurance market, the volume of assets of the industry has also increased substantially.
Banking sector: In Bangladesh,in 90s janata bank,agrani bank and many other banks were doing well without any brand promotion,the reason was that the demand was more and supply was less. But now a days the scenario is different. More firm is there and due to intense competition and increase of supply,consumer is more like to go for brands.
AB Bank Stationary,advertisement and publicity 27,218, ,720, ,989,2 23 Pat profit after tax) 532,186, 349 1,903,4 93,845 2,300,62 1,640 Earnings per share
Sources of data Annual report up to Valuation date,31 December Industry analysis,2006 full year and 2007 (unaudited). Assumptions were made.
Gross premium sales. Profit before tax.
Wight avg of consumer survey.
PoorModerat e Goodweigh t averag e weighted average Standardrating Poor/no Moderate Good/yes yes no
Tk in million Profit after Tax Net Premium Income
Year net profit/gro ss premium advertising to gross prem.ratio adv/net profit %1.65%10.70% %1.08%6.71% %0.83%5.08%
Revenue SourceSales Revenue Marketing InvestmentROMI Existing Customers 1,803,605, N/A Portion due to marketing 402,855, ,324, Up-selling to Existing Customers 40,285, ,400, Customer Rescue 20,142, , New Customers4,028, , Branding 40,285, ,087, Other Marketing Investments 80,571, ,540, Totals/Averages 588,169, ,767,
Newspaper Ad11,324,160 (Existing customers) Magazine Ad6,33,600 (Customer rescue) TVC7,087,160 (Branding) RDC7,82,280 Billboards8,400,000 (Up selling) Making of the Audio Visuals1,540,000 (Other) Grand Total (BDT)29,767,200
In case of product,there is decline and in case of brand there is no decline.
Introduction -- During this stage, the product is introduced into the market and publicity campaigns are launched to promote its functions, features, quality and usage and attract customers to try out or buy the product. Growth -- The branded product begins to build up its following among consumers during this stage. The cumulative effect of marketing begins to show and the market share expands.
Maturity -- Brands or products in the maturity stage have a considerable market share and have reached their sales peak, with growth beginning to slow down. Brand influence at this stage is at its height and the kinds of marketing strategies to be adopted are many.
Decline -- Brand awareness is high but sales are on the decline. Other characteristics of this stage include falling prices, weakening competitiveness and emergence of new products. The same product or the same company may experience different life cycles in different markets
Bottom line Survey result, weighted average means there is demand of advertisement in the industry and already green delta has an positive impact in the industry. It can be increased through systematic publicity Survey results
Based on research based method,brand value of green delta is BDT 4,699 Million. This value can be increased through marketing investment.
Free cash flow to equity Value of share:835. and market price was about cash flow is expected to be positive, hence investment in marketing will not hamper their productivity. but for superior growth and they need to spend on promotion and their expected retention rate 45 % (recommended )so that this amount can be reinvested for growth. Green delta currently paid good dividends.
If green delta insurance company limited currently invest 2.97 core in advertisement,based on logical assumption it is expected that about 19 % MROI will be generated.
Strengths: awards, recognition, trust of corporate house Weaknesses: Historically no publicity Opportunities: Potential market SO strategies: branding to penetrate the market. WO strategies: advertisement. Threats :Competition, new entrants ST strategies: Corporate relation, new innovative product and wide communication. WT strategies: Perform some publicity, and be first mover (pioneer insurance sponsors news bulletin).