In stage 1 of the brand valuation process, there are two key pieces of information that we derived, the Net Operating Profits After Taxes (NOPAT) and the percentage of sales by segment. These numbers form the basis of calculating Hang Ten's financial value.
NOPAT
Hang Ten's NOPAT was taken from Hang Ten Group Holdings Limited Annual Report 2011 at SGD 2 276 820 (HKD 12.6 million).
% of Sales by Segment
Four key segments were identified as seen in the table. Identifying these segments were a result of both the quantitative and observatory research conducted by our team over the course of the past few assignments. From this research we uncovered the interests and motivations of these different groups as well as their buying pattern in-store. Subsequently, we extrapolated these consumption patterns into % of sales estimation.
Price-conscious individuals: This group formed the highest sales segment. Based on observatory research they were the group most seen in Hang Ten stores and this was no surprise as their motivations match Hang Tens promotion strategy.
Working adults who value simplicity and comfort: The second highest sales segment was identified based on their appearance and demeanor. They often gravitated to a more expensive collection than the first segment which indicated their higher spending power.
Youths looking for casual apparel: The youth segment is one of the smallest seen in store. Past research as indicated Hang Ten is not a strong brand for them and purchase intentions is dismal.
Events-specific purchases: While the events-specific segment may be smallest in absolute terms, this was due to the minimal number of events supported by Hang Ten. The main event was National Day and Hang Ten experienced note-worthy sales as respondents preferred Hang Ten's simple designs over competitors Giordano and Bossini.
Working adults who value simplicity and comfort: The second highest sales segment was identified based on their appearance and demeanor. They often gravitated to a more expensive collection than the first segment which indicated their higher spending power.
Youths looking for casual apparel: The youth segment is one of the smallest seen in store. Past research as indicated Hang Ten is not a strong brand for them and purchase intentions is dismal.
Events-specific purchases: While the events-specific segment may be smallest in absolute terms, this was due to the minimal number of events supported by Hang Ten. The main event was National Day and Hang Ten experienced note-worthy sales as respondents preferred Hang Ten's simple designs over competitors Giordano and Bossini.
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