This is a good reference for both established and new brands. Particularly new brands, so you can start thinking about building your brand asset from day 1.
The weightings will vary dependent on your market and business strategy.
When addressing the measures, also think about your brand value in the eyes of an interested buyer. For example, if you have high brand awareness, an engaged audience, but a relatively low profit margin, this can present a good opportunity to a potential investor. Therefore, if one variable is not in a good position, it’s not doom and gloom, in actual fact it does present an ‘opportunity’, for example, addressing product ranging / tiering, business costs, brand extension in to another market.
The 10 Measures of Brand Value:
- Brand Awareness – How many people actually know about your brand?
- Brand Preference – How many people would choose your brand over someone else’s brand?
- What does the brand own? Systems, IP, Database, Products, etc.
- Sales History & Projections (Volume & Value) – How has your brand performed in the last five years?
- Profit Margin History & Projections – What is the year-on-year profit margin on your brand? What factors have contributed to where you are today?
- Market Share Current & Projects (Volume & Value) – What is your percentage of the market. Are you growing, declining, or on par, with market growth?
- Market Place Projections – What changes are anticipated and is your brand ready: Technology, Environment, User, Indirect & Direct Competition, etc.
- How engaged is your customer? Consider both online and offline environments. Are they so engaged that they are directing new customers to you?
- What customer data can you derive from engagement with your brand? Is this data of any value? How can it become of value?
- Leverage Power – What doors can your brand open up for you?
If you can’t remember the 10, all you have to really know is Brand Asset building is well orchestrated business strategy.
How is your business building your brand asset to drive your long term value?