Brand Value

Coca Cola's market cap including brand value = $228 Billion. Coca Cola brand value = $70 Billion. So why are you not valuing your brand like a 'real' asset?

If a major purchase or investment is to be made you want to see a business case. And that’s the way it should be.

So when it comes to branding how can we convince you that you’ll get value for money?

Arguably the two most important assets of any organisation never find their way on to the balance sheet. People and brands are intangible and, we suspect, unintelligible to those that are responsible for crunching the numbers.

Research has been conducted on the impact of design on company performance. This is relevant because of the role design plays in expressing the brand. The British Design Council studied the performance of 63 companies that were identified as design-led over a 10 year period and found they outperformed the FTSE by 200%.

Another way to measure the effectiveness of brand related activities is to focus on brand equity which is made up of:

1. Brand awareness
2. Brand loyalty
3. Positive associations

These elements can be surveyed on a regular basis to gauge the extent to which brand value increases or decreases. The information gathered from the research will also point to what brand buttons need to be pushed in order to enhance brand performance.

What other benefits can you expect if you make a significant investment in your brand:

4. Easier access to funding
5. Lower customer churn
6. Ability to charge premium rates
7. Lower cash flow volatility and vulnerability
8. Ease in attracting and retaining high quality staff
9. Lower cost to launch complementary offers

Treat your brand as if it were a real asset. Anoint it with the same status as the newest model Mercedes, the latest Heidelberg Speedmaster SM 74-2-P-H or the Ralph Hotere hanging in the board room (you know who you are).

Do this and you will elevate the status of the brand internally and ensure that it is properly looked after. This means regular service checks and from time-to-time major maintenance. And like the Hotere it will keep on appreciating in value.