Creating shareholder value : a case study of the PPC brand

Tomes, Richard (2011-03)

University of Stellenbosch Business School


The objective of this study is to determine whether brands create value for shareholders and the extent to which such value can be quantified. The research methodology is based on a case study of Pretoria Portland Cement, South Africa’s leading cement producer, and seeks to demonstrate how a commodity like cement can be successfully differentiated and branded. Primary data was gathered by conducting unstructured interviews with business leaders and key personnel involved with the development and execution of the company’s brand vision. Secondary data is based on the results of a customer loyalty survey by IPSOS Markinor as well as on customer perceptions from Millward Brown’s BrandDynamics™ model. The results of both these surveys, together with historic market share data and the company’s financial performance over a 15-year period, is analysed and interpreted before conclusions are made about the brand’s contribution to value creation. The study concludes by attempting to make generally applicable findings about the value of brands and their overall contribution to shareholder value. One of the major limitations of the study is the inability to assign a definitive value to the PPC brand because of the vast number of credible brand valuation models available and the lack of consensus among academics and industry experts regarding the determination of brand value.

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