The evasive & baffling A&P ROI
Investment in a brand is like any other investment. An organization either has enough cash in its kitty to be able to invest it in building the brand quity or the organization borrows from the bank. The ultimate objective of any investment is to generate return. How much the required rate of return is varies from market to market and form environment to environment. These are times of economic recession. Even the BRICs are now coming to around 7% GDP growth (with the exception of Russia which itself is heavily dependent on International Gas prices). Recessionary times are the true litmus test of marketers. Getting growth and developing market and categories are not easy. These are times of high interest rates in Pakistan with the discount rate being 10.5% and 1 year KIBOR at 12%. This means that an organization investing in the brand could alternatively invest in the risk free Banking sector and obtain a 12% return with the principal intact. So the investment in the brand should resul...