World of Luxury

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World of Luxury

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Brand Evaluation

We try to help your company to evaluate your Brand!

Brand evaluation is a method used to determine the tangible and intangible assets of a corporate or product brand. The goal is to quantify the overall impact of a brand and – partly – to convert it to monetary terms. There are more than 40 different approaches and models for brand evaluation.

Three approaches apply: purely monetary, finance-oriented philosophies consider brand value from the point of view of the brand owner and evaluate the brand on the basis of profits or sales clearly attributable to the brand and that would not have been achieved without the brand. Behavioral science or consumer-oriented approaches believe that brand value is essentially dependent upon perception of the brand, brand images in the minds of the consumer, and the associations conjured up as a result. Integrative models combine consumer and market approaches: economic data and positive and negative associations are considered equally important in terms of defining and determining brand value.

The diversity of methods produces very different results that are not inter-comparable. Brand value depends on the underlying attitude, the reason for evaluation (e.g. Mergers & Acquisitions, control, protection) and the model-specific definition and operationalization of indicators and factors.

 

Indicators


Brand income: Brand income is the income share of the total income of the company, based on the brand's design. It also features the brand generated by the added value of a product or service as compared to an unmarked offer.

Brand equity: Brand equity is the portion of a company's overall equity that is attributable to the brand. It also describes the added value of a product or service generated by the brand versus an unbranded offering.

Brand image: Brand image describes the attitudes, connotations and associations connected with a particular brand in the minds of existing or potential consumers.

Stability: Brand stability refers to the steadfastness of a brand in the face of social and market changes and influences.