1. The most influential international brand awareness measurement method.
The most influential brand value in the world at present is the "100 Most Valuable Brands in the World" published every year by "Business Weekly". This is calculated by the British company interbrand and published simultaneously with "Business Week" ***. The calculation formula is:
Value = brand income * multiplier
Brand income is mainly the annual income before interest and tax of the brand, which is obtained by subtracting the industry average profit margin. Weighted average of profits for the previous three years.
The multiplier is obtained by scoring seven factors. The specific factors are:
Factor content
Leadership is mainly market share
Stability mainly depends on the length of brand existence
Market characteristics: fast moving consumer goods are more valuable than industrial and high-tech brands
Regional influence: international brands are more valuable than local brands
Development trends and long-term development space
Income support and company support
Legal protection of trademark registrations
2. Three types of brand calculations currently emerging in China method.
1. Calculation method of Beijing Famous Brand Appraisal Co., Ltd.
P＝M＋S＋D
P is the comprehensive value of the brand; M is the brand's market share capability, mainly based on sales revenue; S is the brand's value-for-money share capability, mainly based on Exceeding the average profit-making level in the same industry is an indicator; D is the development potential of the brand, which is mainly calculated by predicting future potential based on indirect factors such as the company's export status, trademark protection status, advertising support, and brand usage history.
2. China's "World Manager" magazine, its affiliated World Brand Laboratory calculation method.
Brand value = E * BI * S
E: Adjusted annual business income. It is the average business income obtained by adding different weights to the operating income of the previous three years including the current year and the forecast income of the next two years.
BI: Brand added value index. Use the "Brand Value Added Tools" (BVA Tools) to calculate the brand's contribution to current revenue, expressed as the proportion of brand added value in business revenue, which includes the calculation of the proportion of brand added value in economic added value. .
S: Brand strength coefficient. Taking into account the uniqueness of China's industry and market economy development, eight elements of the brand strength coefficient are proposed: industry nature, external support, brand awareness, brand loyalty, leadership, brand management, expansion ability and brand Innovation. These 8 aspects are a qualitative analysis of the brand from both the external macro environment and the micro environment. They can be obtained through market research and financial analysis and reflect the brand's future earnings.
3. Calculation method of "Peking University Business Review" magazine.
Brand value = brand premium rate * sales revenue of the brand in the Chinese market * brand value sustainability factor * discount factor
Brand premium rate refers to the consumer price compared to unbranded goods. The premium rate that consumers are willing to pay for a certain brand is obtained through consumer questionnaires.
Brand value sustainability factor refers to the time a brand can maintain a premium level without further investment, ranging from 2 to 8 years.
Discount factor refers to the one-year bank loan interest rate.
3. The advantages and disadvantages of the above methods.
In 1974, Interbrand was founded and created the current method, which first established that brand value is based on profit value, not revenue value. Brand value comes from the brand's excess profits, not excess revenue. The basis for calculating brand value is the excess of the brand's profit margin over the industry's average profit margin. This profit is the profit before interest and tax. Secondly, a measurement model of brand strength was proposed for the first time, summarizing the brand's performance in the market and proposing seven measurable factors, which transformed brand value from perceptual to rational.
Several domestic methods, including the calculation method of Beijing Famous Brand Appraisal Co., Ltd., calculate brand value at the income level, with insufficient reasons. The methodology of "World Manager" magazine is exactly the same as that of Interbrand, except that the seven factors for measuring market strength have been adjusted to eight.
The brand premium rate of "Peking University Business Review" is obtained through consumer questionnaires, which inevitably involves large subjective factors, and the assumption of the sustainability factor of 2-8 years is still questionable.
In addition to the above reasons, we believe that the brand value calculation method led by Interbrand has several major flaws:
1. The measurement of brand income is insufficient. The source of brand value is not only that the brand sells more expensively, but also that the brand sells more. Brand value should not only come from the brand's excess profit, but also from the brand's excess market share profit.
2. There is no distinction between company brand and product brand. Often, company brands and product brands such as Second Automobile, Hongqi, Peking University, and China are measured using the same formula and the same indicators, which is not very scientific.
3. It does not reflect the brand status. Since Trout proposed the brand "positioning" theory in 1981, our understanding of brands has undergone a huge leap forward. Brand positioning, structure, management, etc. have long since transitioned from perceptual to rational. The status of these brands , for example, Tongrentang (Quote Comment Information) acquired Goubuli, which means that the brand structure has a certain negative effect on the brand value. The status of these brands plays a huge role in brand value and should be factored into the measurement of the brand.
4. Calculation framework of the China Brand Strategy Research Institute.
V＝(P1+P2) ＊ F＊ S
Brand value = profit ＊Brand strength ＊Brand status
Profit includes profit margin, excess income and market Share excess income
Brand strength comes from the following six aspects:
a) The nature of the enterprise, which mainly determines whether it is a monopoly enterprise or a market-oriented enterprise. Brands are market products, and the brand value of monopolistic companies is low.
b) The nature of the industry mainly distinguishes upstream companies, midstream companies and downstream companies. Fast moving consumer goods that have direct contact with consumers have higher brand value.
c) Leadership, market share.
d) Stability, determined by the duration of the brand.
e) Internationality, the number of overseas income and exporting countries or regions.
f) Development trends are mainly divided into industry trends and company prospects.
2. Brand status mainly includes the following four aspects.
a) Positioning. Compelling, authentic
b) Architecture. Simply divide it into four architectures: single brand architecture, parent and child brand architecture, endorsement brand architecture and multi-brand architecture, and then distinguish the clarity of brand architecture
c) Communication. Popularity, reputation, and management of major events of the year
. Trademark registration and protection status, corporate management organization, functions and processes, and brand capitalization status.