This document discusses brand valuation and provides an overview of key concepts and models. It introduces the brand value chain which explains how brands create economic value by generating demand, continuity of demand, and mitigating risk. It also outlines several methods of brand valuation, highlighting the Interbrand model which combines income, market, and cost-based approaches. Examples are provided of top global brands from Interbrand's 2015 rankings as well as applications of brand valuation to mergers and acquisitions and evaluating individuals as brands.
4. Contents
• Introduction
• Brand value chain
• Methods of valuation
• Interbrand model
• Best brands of 2015
• Applications
• M&A and brand valuation
• Individuals as brands
5. Brand valuation
• Brand has become an important asset
• Valuating a brand on basis of brand name,
logo
• Different from brand equity
• Valuation is the Financial aspect of brand
where equity is the customer’s perception of
brand
• Gives a common platform to compare brands
across the world
6. Brand value chain
• The influence of brands on current and
prospective customers significant driver
of economic value.
• By expressing their proposition
consistently across all touchpoints,
brands help shape perceptions, making
products and services less substitutable.
• In this way, brands create demand
• Strong brands also create continuity of
demand into the future, thus making
expected returns more likely – or less
risky.
• Brands, therefore, create economic value
by generating higher returns and growth,
and by mitigating risk.
8. Interbrand
• Brand consultancy firm, World leader in brand
valuation
• Combines all three methods of valuation and
created a robust valuation method
• Takes all the stakeholders and value-creators
into account
16. Ranking Athlete Value
1 Tiger Woods $30 million
2 Phil Mickelson $28 million
T3 LeBron James $27 million
T3 Roger Federer $27 million
5 Mahendra Singh Dhoni $21 million
T6 Usain Bolt $18 million
T6 Kevin Durant $18 million
8 Cristiano Ronaldo $16 million
9 Rory McIlroy $12 million
10 Floyd Mayweather Jr. $11.5 million
Most valued persons
#6: Brand equity is definitely connected to the customer's perception of the brand, which may or may not be translated to the financial value (brand value).
Brand equity is more difficult to estimate because it is a set of customer's perceptions, attitudes, knowledge, and behaviors.