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which estimates the amount that has been invested in creating a brand, and replacement value method which creates a rough estimate of the total number of resources that will be needed in the brand building process for a brand that has a similar share and market position.

Market Based Approach

This Valuation method relies on the estimation of value, based on similar market transactions of comparable brand tights.

Other forms under this do include P/E ratio method which is a price to earning method of brand valuation multiples the Brand's profit by a multiple derived from similar transactions and also turnover multiples method.

Income Approach

Income approach is employed mainly to o determine the value of reference or quite simply, the market value of the economic benefits received for the duration of a brand’s life. There are six ways this method is applied;

-Price premium and volume premium mode

Estimates the value of the brand by the price premium it generates when compared to a similar but unbranded product or service. It takes into account the volume price premium. On the other side, the volume price premium mode also considers the price premium.

-Incremental Cash Flow Mode

Identified the extra cash flows in a branded business when compared to an unbranded and comparable business. The challenge seems to be this-  it is quite rare to find conditions for this mode to be successfully applied since finding similar unbranded companies can be difficult.

Uses and Purposes of brand valuation include Value Reporting, Business buying and Selling decisions, Tracking shareholder's value, Licensing, Dispute resolution, Legal Transactions, Accounting, Strategic planning, Management Information, Taxation planning and compliance, Liquidation, Litigation support, investors presentation/shareholder's report, Raising funds, and Brand Identity.


 

This is defined as how consumers perceive the business or services. It may also be defined as the visible aspects of a brand such as colours, designs, logos, name and symbol. It differs slightly from brand image in that it deals with the public perception of the busines. Instances of world examples of this may include but are not limited to the following

Coca-Cola company(KO)

Nike Inc. (NKE)

Starbucks corporation(SBUX)

The essence of a brand identity is to effectively communicate a company's personality and it's products to a potential consumer and in return, build the brand recognition, association and loyalty.

Again, it helps in setting guidelines and consistency in brand management.