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Limitations in brand valuation

 

In deriving the net operating profit margin, a proxy estimate had to be used from Kimberly Clark’s personal care segment since there is no specific financial information about operating costs for the Kotex brand per se. Using a standard discount rate would not suffice for a professional brand valuation as it does not factor in external material events such as the economic cycle and industry related news.

 

 

Over the years, Kotex Singapore has launched several campaigns to build brand awareness amongst school girls through school talks and also to the independent working adults in the general public through advertisements. The recent Luxe series campaigns has also helped to differentiate the brand. This could explain why the brand valuation remains at a modestly decent level in Singapore at S$1,307,535.40. The brand could have done better in its value had it not been for the strong rivalry of incumbents, like Laurier and Whisper, in terms of their rigorous celebrity endorsement campaigns and timely development of latest product technologies in their sanitary pads. Some Kotex users could have switched to other competing brands because of Kotex’s failure to satisfy their needs or simply because they derive more satisfaction with other brands. Hence, Kotex would need to find ways to outperform its competitors in order to maintain and eventually improve its brand valuation in the Singapore market. Our group strives to improve the brand perception of Kotex in attempt to win over more non-Kotex users over to the Kotex brand through effective branding strategies.

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