brandXpress blog

Let me share with you how we think about brand. There is a very important difference between brand value and brand recognition. Brand value means something to the end user. Brand recognition, all it means is a bunch of advertising to make people recognize the brand name. At HTC we care about brand value, not brand recognition. Building brand value is like earning respect; you have to earn respect, you cannot buy respect

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Interesting article on brand valuation on 4hoteliers.com website. First off all the author is corectly placing the brand as a independent category among the intangible assets of a company:
Brand and relationship intangibles: these include trade names, trademarks and trade symbols, domain names, design rights, trade dress, packaging, copyrights over associated colours, smells, sounds, descriptors, logotypes, [...]

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Brand value is calculated as the net present value of the earnings the brand is expected to generate and secure in the future for the time frame from July 1, 2005 to June 30, 2006. To be considered the brands must have a minimum brand value of US$2.7 billion, achieve about one third of their earnings outside of their home country, have publicly available marketing and financial data, and have a wider public profile beyond their direct customer base.

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Value has different meanings to different people. The objective of the valuation is determined by its use. Some of the more common valuation approaches are market based/direct measurement method; brand communication investments based method; awareness and franchise valuation method; finance based/indirect measu- rement method; excess-earnings method and relief-from-royalty method.

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Brand equity is that incremental value that accrues to a product when it is branded. Simple brand awareness is one source of brand equity. If you can get your name to pop up in people’s minds when they think of the product category, you’ve won a big part of the battle.
[There are] two other sources [...]

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Despite its dominance, Interbrand/BusinessWeek global brand league table has inherent weaknesses. This is not news to anyone who works in branding: most marketers accept that the Top 100 is an imprecise but important approximation of global brand equity.

But all this is about to change. Next month global agency group WPP will launch an alternative brand valuation league table that will directly challenge Interbrand’s calculations. The system has been masterminded by chief research officer Andy Farr and his marketing quant jocks at Millward Brown Optimor (MBO).

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Consumers love brands because they offer an extra value—that is, one in addition to the core product or service. That value becomes the major motivation for consumers to buy or use the product.
How precisely is this value being added and incorporated into the brand? Advertising professionals say it is advertising. Consumers love the ad—so they’ll [...]

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Since seven seems to be the magic number which relates with brand value and brand valuation let’s check seven applications of brand valuation:

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Professor David Jobber identifies seven main factors in building successful brands:
Quality
Quality is a vital ingredient of a good brand. The core benefits must be delivered well, consistently. Research confirms that, statistically, higher quality brands achieve a higher market share and higher profitability that their inferior competitors.
Positioning
Positioning is about the position a brand occupies in a [...]

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The [tag]Interbrand[/tag] model of brand strength is a useful framework to consider the performance of your own brand. Consider these seven points and you should get a better sense of the strength of your own brand, as well as some ideas on how to move forward.
Market: 10% of brand strength. Brands in markets where consumer [...]

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