the Scoot-Away
Assignment 3: Brand Valuation
Through our primary and secondary research, we will estimate the brand value of Scoot using the Interbrand Valuation Model and identify its main drivers to its brand value. The findings for each stage are summarized below.
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Summary for Stage 1
Based on our primary and secondary research, we identified 3 main target segments of Scoot based on their attitudes and purchase behaviors. Below are the 3 segments and their proportions of the total customers:
• Young
• Young at Heart
• Value Seeker
Summary for Stage 2
Using sources such as our primary research and reports on consumer trends, we derived at a conservative growth rate estimate for our target segments over the next five years. We assumed that the growth rate to be constant over this period of time. Based on our findings, we expect our growth rate to range from 1.5% to 3.5% depending on the segment.
Summary for Stage 3
From our research findings, we ascertained that the segment with the highest RBI is Young (80%), followed by Young at Heart (70%) and Value Seekers (30%). As RBI measures the intangible value that customers attribute to brands on their purchase decisions, customers with higher repeated purchases are therefore better able to understand the brand values and the result is a fair reflection of that.
Summary for Stage 4
Based on our findings, we found that Scoot had scored relatively well for the factors with at least a score of '7' in all aspects except for 'Protection', 'Authenticity' and 'Differentiation'. We eventually concluded the brand strength of 71 and a discount rate of 7.564%
Summary for Stage 5
By discounting the brand earnings by the discount rate of 7.56%, we derived Scoot’s brand value to be S$298,517,775.03.