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Brand Analysis on
Facebook, Inc.
Presented By
2010/MBA/WE/MKT/15 - R Shyamali Dias
2010/MBA/WE/MKT/14 - Nuwan Ireshinie De Silva

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Presentation Outline
Introduction to the Organization
Objective of the Study
Literature Review
Findings
Analysis of the Findings
Conclusion

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Introduction to Facebook
Social utility that connects people
with friends and others who work,
study and live around them
The Business of the Organization
Business/Revenue Model of
Facebook

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Business - Revenue Model

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Management

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Objective of the study
To analyze the brand value, revenue, profitability,
advertising expenditure and share price(s) of the
organization and to understand the link and
relationship between these dimensions from a
strategic brand management perspective.

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Literature Review
Four Main Steps in Strategic Brand Management Process
Identify & Establish Brand Positioning
& Value
Plan & Implement Brand Marketing
Programs
Measure & Interpret Brand
Performance
Grow & Sustain Brand Equity

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Literature Review
Brand Building Blocks

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Findings.. .
Year
Brand
Rating
Brand Value
(USD)
Enterprise Value
(USD)
Pre-tax
Income
(USD)
Sales
Revenue
(USD)
Advertis
ing
Spent
(USD)
Share Price
USD
2013 - 59.67 Billion (Jan) - - - 31.04per share
2012 AAA 8.7 B 44.46 B (Sept 30th)
64.78 B (Jun 30th)
Avg. 56.30 B
775M 4.64 B - 38 per share
2011 A 3.6 B - 1.7 B 3.71 B 427M -
2010 - - 1.01 B 1.97 B 187M -
2009 - - 254 M 777 M 115M -
2008 - - (56) M 272 M - -
2007 - - (135) M 153 M - -

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Analysis
Comparing brand value, enterprise value, revenue and
profit
Share prices
2007 2008 2009 2010 2011 2012
Sales Growth _ 77.78% 185.66% 154.05% 87.99% 25%
Pretax Income Growth _ 58.52% 296.85% 68.15% 555.57% -54%

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Analysis
Awareness Level and Usage of Facebook on Internet

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Analysis | Main Argument
“Brand” does not become valuable just because it has so
many users but that it becomes valuable because it can
derive Revenue.
Facebook revenue model and business model does not fit.
Customers and Users are different parties.
Employees and investors have less trust.
Facebook is banned in some countries and in many
organizations around the world

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Analysis | Main Argument
Privacy fails in many situations.
Mission - “make the world more open and connected”.

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Analysis
Strategic Brand Management Process at Facebook
Key Concept For Facebook Users For Facebook Customers
Mental Maps Social media platform Advertising platform
Competitive Frame of
Reference
Social Media website Online Advertising channel
Points of Parity & points of
difference
Points of Parity – allow users to
connect each other
Point of Difference –
Simplicity, Innovations, viral
networking
Points of Parity – Allow customers
to do advertising,
Point of Difference - ?
Core Brand Association Connecting people Drive visitors to advertisers
and generate revenue.
Brand Mantra Social utility No Brand Mantra for
customers

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Analysis
Facebook Brand Analysis with Customer -Based
Brand Equity Model
For users - Yes
For customers - No

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Analysis
Facebook Brand Analysis with
Customer -Based Brand Equity Model

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Conclusion
Success as a Social Media Brand But not as an online
advertising channel
Revenue model is not strong enough to have higher brand
value
No information to justify the brand building expenditure
other than R&D
Brand Rating is AAA with high awareness level among users
Rapid growth of mobile phone usage is a threat

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Thank You………
Future of Facebook?