Let’s take a broader approach to assess the brand value of Coffee Day Enterprises, considering both market potential and brand equity in India.
Revised Brand Valuation Approach
We will calculate the brand value by factoring:
- Market Size and Potential:
India's population is approximately 140 crores.
Urban population (35%) represents the primary market for coffee.
Coffee consumption in India is growing at 5-6% CAGR.
- Brand Strength in India:
Coffee Day has been a pioneer in India's café culture, giving it a first-mover advantage.
The brand operates at scale, with 440 outlets and significant vending machine coverage (54,912 units).
- Global Peer Benchmarking:
Brands like Starbucks and Dunkin’ Donuts have valuations based on global reach and revenue. We will compare Coffee Day's market dominance within India to Starbucks’ brand value on a per-capita basis, adjusted for India's lower per-capita income.
- Perceived Value (Market Influence):
Coffee Day’s share in the Indian market (measured by outlets and customer base) contributes heavily to its intangible value, beyond financial metrics like revenue.
Steps for Calculation
- Population-Weighted Valuation:
Estimate the brand value per capita for global peers like Starbucks and adjust for India's purchasing power.
- Market Share & Peer Benchmarking:
Compare Coffee Day's market penetration in India to Starbucks’ global presence.
- Intangible Value Adjustment:
Factor in intangibles like customer loyalty, café culture influence, and competitive advantage.
Let me calculate these factors.