Brand valuation assesses the financial value of a brand for a clear picture of how it contributes to business results today, and in the future.
Brand Valuation is particularly useful if you want to quantify brand value associated with losing or acquiring a particular brand asset, determine licensing or royalty rates, rationalize a brand portfolio or name change, or measure the ROI of your brand and marketing investments. The goal of brand valuation is not to provide just a dollar number – numbers change every day – but to inform business strategy on how to leverage the brand as a true asset, the same way a company leverages factories, inventory, and intellectual property.
The most important benefit of valuation is that it outlines and quantifies sources and drivers of value creation. The model can be used to size the prize of various strategies using "what-if" scenario analysis to help guide decision-making and prioritization. The net effect is that you are armed with a language and tools that enable you to demonstrate, test and maximize the power of your ideas, creating a platform for the ideas to travel more broadly within your organization.