What’s A Good Brand Worth?

Funny, but true: your company’s greatest assets aren’t inventory, real estate, equipment or even cash. The assets that hold the most worth are intangible. They are your employees and your brand.
In fact, on average, determinants of company worth are comprised of 69 percent trademark, perceptions and brand and 31 percent cash, receivables, real estate and investments. An Interbrand analysis of the top global companies published in Business Week demonstrates the economic worth of a strong brand. Comparing book value to intangible brand value, a snapshot of some of the world’s leading brands defines their percentage of corporate worth: Coca-Cola,64 percent; BMW,61 percent; McDonald’s 71 percent; Disney,46 percent.
So what’s a good brand worth? How do you quantify your brand? Put simply, it’s the difference between being a preferred product or service and being a commodity driven alone by low price.
More and more companies are thinking about their brands in quantifiable terms. It is now viewed as having a measurable value and a direct correlation to the bottom line. There is growing support for managing the brand as an asset and having it drive every strategic and investment decision. (It shouldn’t be a surprise to you that we heartily agree with this viewpoint, after all, it’s BrandSavants’ corporate manifesto.)
At its most powerful, a good brand is an income-producing asset and one that should be adeptly managed and measured over time. After all, it translates directly to your company’s worth, perhaps at two-to-one over your tangible assets. Internally,a strong brand allows for premium pricing, protection against price wars, greater new product success, better leverage with channel partners, better recruitment advantage, stronger employee loyalty and heightened internal focus and brand execution. A great brand can earn loyal customers who are more likely to discount your competitors in the purchase process, request your brand by name, recommend your brand, accept new products or services, refuse substitutes and pay a price premium.
In a study conducted by Equitrend, brand equity was measured for its impact on ROI over time. Brand equity is defined as a combination of consumer awareness of the brand, the brand’s perceived quality, consumers’associations with the brand and consumers’ brand loyalty. The result: firms experiencing the largest gains in brand equity saw their ROI average 30 percent, while those with the largest losses in brand equity saw their ROI average a negative 10 percent. A 40 point spread.
Develop your brand vision and bring it to life. When your brand stature is on the rise, your company’s worth is increasing. All because you offer something distinct in the market. And that distinction is worth a premium.
Are you ready for success? Become a valued brand and claim it.
Discovery
Meet to discuss aspects of your brand that need to change if you are going to grow.
Detect
Pick the objectives that will make the biggest difference for your company and craft a solution.
Implement
Work together to facilitate the process of making the changes needed.