The ISO 10668 standard sets out the appropriate process of valuing brands, and sets out six key requirements: . Brand Finance Ltd. is a UK based consulting organization which undertakes brand valuation by means of identifying the position of the brand in the competitive marketplace, the total business earnings from the brand, the added value of total earnings attributed specifically to the brand and beta risk factor associated with the earnings. By identifying the value created by a brand for its business, combined with an evaluation of the relative bargaining power of the parties involved, we are able to Identified in their methodology, Interbrand discusses the importance of brand valuation: “Having pioneered brand valuation in 1988, Interbrand has a deep understanding of the impact a strong brand has on key stakeholder groups that influence the growth your business, namely (current and prospective) customers, employees, and investors.

Interbrand, a consulting firm focused on brand strategy, corporate design, brand valuation and digital marketing, has recently released their 19th Best Global Brands … Interbrand’s brand valuation methodology can also be used to complement other more traditional techniques for setting royalty rates for brands. The calculations of brand value using the royalty rate method is shown below:-Thus, using the royalty relief method we see that the brand value of Kingfisher is 224.52 crores which is almost equal to the brand value we have obtained from the Interbrand brand valuation method. Brand valuation is the job of estimating the total financial value of the brand. Shortly dividing market, Interbrand evaluates brand value based on financial performance, the Role of Brand Index (RBI), and brand strength [12]. Example of Brand Valuation Using Interbrand Method When using Interbrand method, brand value is the net present value of the forecast brand earnings, discounted by the brand discount rate. BrandZ, similarly to Interbrand, uses a so-called “income split method” to estimate the value of a brand. Marketers’ Methodologies for Valuing Brand Equity ... and law, Interbrand’s Brand Valuation Methodology is “based on the cash flow that the brand can be expected to generate in the future” (Keller 2008).

“BrandZ Top 100 Most Valuable Global Brands” by Millward Brown. Rankings - 2007 - Best Global Brands - Best Brands - Interbrand You are now leaving this site and you'll be redirected to the Interbrand Global website. The brand strength analysis module is used to determine the discount rate required for re-expressing future brand’s earnings at present value. The initial process looks similar as it is about analysing the brand’s profits and estimating future profits. What happens next is what differentiates BrandZ’s ranking. Ranking the world’s most valuable brands. financial potential of the target brand. Like the valuation of any product, or self review, a conflict of interest exists if those that value the brand also were involved in its creation.