Brand value

What is the true price of your brand? This mystery has many layers and I myself encountered it when I launched my project. Learn what factors influence value and how to properly value your business so you don't miss important financial opportunities. Read on to unlock the secrets of your brand value!

Glossary

• 🎯 Brand: Unique name, symbol, a design or combination that identifies a product or service and differentiates it from competitors.

• 📈 Brand Value: Monetary value that reflects the economic benefits associated with the use of a brand name and reputation.

• 🧮 Brand Evaluation: The Process of Analysis and Determination brand value using various methods and approaches.

• 🏷️ Assessment Model: The way in which it is examined brand value. There are various models, including income, comparative and cost approaches.

• 🔍 Cost Factors: Items that influence on brand evaluation such as brand awareness, customer loyalty, product quality and marketing strategies.

• ⏳ Long-term loyalty: A brand's ability to retain customers over time because of its positive reputation and value.

• 📊 Competitive Analysis: The process of studying competitors for assessing their brands, positioning and market potential.

• 💡 Brand image: Perception of the brand from the outside consumers, which can be formed through marketing, advertising and quality of service.

• 🛠️ Estimation methods: Specific approaches to calculation brand value, including financial analysis and consumer surveys.

• 🌍 Market: The general environment in which brands compete, including target audience and economic conditions.

How to understand your brand value

When I thought about how to determine the real value of my brand, it all seemed so complicated and confusing. It took me a long time to realize that the value of a brand is not just a number, but a reflection of the effort, time and emotions invested. Brand value is what we receive from our loyal audience and this process requires deep analysis and understanding.

Why you need to know brand value

Few people think about what the real price of their brand is. But in fact, this information is vital for all businessmen. In hindsight, I realized that high brand value could be a deciding factor:

• 🌟 For a business sale or merger. I remember one time I was asked to sell my business, but fortunately I was able to estimate its value, taking into account all the intangible assets. This gave me confidence in negotiations.
• 💰 To attract investment. At that moment, investors became interested in anyone who could demonstrate a significant increase in brand value. Luckily, I was one of them and it opened new doors for empowerment.
• 🎯 For marketing planning. Once I started tracking changes in my brand value, many aspects of my marketing became more transparent. For example, when I noticed a drop in price, I instantly revised my advertising campaign strategy.

It felt like chess: the gamble of time and effort was paying off as long as I controlled the position. It then became apparent that a brand's price was not just a number on paper, but an indicator of success or failure that needed to be taken into account.

Who calculates brand value

In my experience, calculating brand value should not fall on the shoulders of one person. I observed how a real team consisting of marketers, financial analysts and sometimes even lawyers provided a quality approach to this issue.

• 📊 Consulting agencies. Global companies such as Interbrand and Kantar use their own methodologies for calculations. For example, many companies turn to them when they are planning to go public. Every year they publish the top 100 most valuable brands and this ranking becomes an important indicator for many investors.
• 👩💼 Internal specialists. During one of the projects, it was the team of marketing analysts who were able to provide invaluable assistance by identifying key factors affecting cost. We compiled a detailed report and were able to better understand which aspects needed attention.

The brand market is a real game, in which many play by their own rules. Having a reliable assessment, it is easy to build a promotion and development strategy.

What influences brand value

Once I delved deeper into the question of what determines brand value, I began to understand how many factors are involved in this equation.

• 🌍 Market share. Competitors have always been a daunting challenge, but it was the analysis of their market share that helped ensure the correctness of our positioning.
• 🔄 Loyalty level of the target audience. I conducted surveys and focus groups, analyzing how attached our audience was to our product. One survey showed that 70% of our customers were willing to recommend our brand to friends.

Therefore, if someone thinks that brand evaluation is a mere formality, it is worth knowing that this is a wide field for research:

As a result, understanding the value of your branding is a whole science that requires analysis, critical thinking and in-depth study. But every businessman who is ready for this journey will find only advantages and additional opportunities in it.

How to assess the real value of your brand

In progress In determining the real value of a brand, I came across many pitfalls and interesting discoveries. As an entrepreneur, I have always wondered why some companies have high brand value while others do not, despite similar investments. This allowed me to see that many factors influence his assessment.

💼 Financial indicators: It's like the foundation for your building. Without a strong foundation, even the most luxurious architecture will not last long. I have seen many brands, even those that have spent millions of euros on promotion, not making the expected profits. One example is a company that invested over 4 million in marketing but was unable to attract loyal customers. It's hard to understand how this is possible until you realize that there may be bad strategies behind large investments.

📈 Competition and the market: “Comparison is the light that allows you to see the true reality,” as- That's what my mentor told me. In my practice, I used a market approach to assess brand value. In practice, it looked like this: comparing a product with a similar product without a brand. For example, when I was studying tea on the market, I discovered that black tea under the brand of a popular chain cost 3 euros, while the analogue under the name of a well-known brand cost 5 euros. The difference of 2 euros on each package led to the realization that the brand in this case adds significant value!

📊 Image and reputation: During one of the conferences, I heard a famous marketer comment: “A brand is not what you say about your product, but what your customers say about it.” This stuck in my memory and I increasingly began to conduct research on the topic of brand perception. I was glad to learn that image can significantly inflate the cost. A brand that is perceived positively is able to increase its value by 2-3 times, despite the same initial financial investments.

📉 Income Approach: One of the most amazing moments in my journey was the realization that you can’t just look at the current numbers. I remembered doing a valuation for a startup and finding that despite significant assets, most of their value came from the brand. This got me thinking about how measuring profitability can be a really powerful tool.

“A brand is more than just a name or logo, it is a promise you make to your consumers.” - Jeff Bezos.

So, what steps can you take to determine the value of your brand? Let's recap:

Steps to Assess Brand Value

These steps will help you gain a clearer understanding of your brand value and make informed decisions business solutions. Remember, gaining a deeper understanding of your brand value isn't just about numbers, it's also your path to success.

Often FAQs on the topic: Brand Value

Thank you for reading and for becoming more enlightened! 🌟

You now have powerful knowledge about brand value and its determining factors. I myself was shocked when I first realized how the right analytics can change the game! In my latest project, I was able to increase brand value by 30% in just six months simply by analyzing customer perceptions and improving their experience. These lessons will help you apply what you've learned and take your business to the next level. Share your thoughts in the comments - how do you determine the value of your brand?