Luxury goods brand - analysing diversification plan
The PricewaterhouseCoopers' valuation team were asked to validate a joint venture strategic plan prepared by a luxury goods company seeking to diversify its activities. The plan involved establishing a joint venture with the aim of exploiting its worldwide luxury goods brand. The company sought validation of the financial viability of a proposed new brand offering and the rationale for entering into a joint venture.The PwC team critically appraised the company's strategic plan. This appraisal comprised of a blend of qualitative and quantitative analysis. The qualitative assessment involved developing an understanding of the core brand proposition and evaluating whether the new venture would boost income. PwC brought to the company's attention some weaknesses in their joint venture strategy.
As a result of these findings the PwC team was engaged to undertake further research, including conjoint analysis to validate the proposition within one particular geographic consumer segment. Through this analysis the client was convinced that the joint venture was supported by robust qualitative benchmarking, and that it could proceed with plans to find a partner and develop the new brand proposition.
