Brand evaluation is a new evaluation system. Although it is derived from financial evaluation indicators, after establishing its own unique evaluation system, efforts should be made to overcome the shortcomings of using financial indicators. Because the brand is a long-term investment, but indicators such as sales volume, cost analysis, marginal return, profit and return on assets are mostly short-term data, and they are all "self-sufficient". Using short-term indicators to evaluate brand performance often causes some harm to brand investment decisions. In terms of understanding, we must first understand that brand evaluation focuses on value, not cost. The real value of a brand comes from its future market competitiveness. Secondly, it is important to note that in order to overcome the uncertainty of future cash flows in the present value method, the brand's current excess profits must be used as the basis for evaluating brand value. At the same time, in order to overcome the lack of value components in the evaluation process and establish an indicator system for brand market power, a method should be adopted to combine existing excess profits with market power indicators to adjust existing profitability to the future market competitiveness. Finally, in order to ensure the reliability and validity of the assessment results, necessary reliability and validity analyzes and checks should be carried out.
To this end, a scientific evaluation system must be established, reasonable evaluation steps must be set, and appropriate evaluation methods must be selected.
The first step is to evaluate the brand’s current profitability. First, some specialized independent appraisers, economists, engineers and other experts determine the annual sales revenue, costs and taxes of the products identified by the brand, and determine the net profit after tax. The specific method is to use the formula: sales revenue of the brand's products - corresponding costs - corresponding product sales tax - corresponding income tax = net profit after tax. Secondly, the industry average net profit is deducted from the product's net profit to obtain the brand's current profitability, represented by P.
For this method: The indicator calculated by this method is net profit, not total profit and tax, because we use the brand value calculated by net profit to eliminate the impact of different tax rates on different products driven by different brands. Comparability; secondly, this method calculates product net profit, not corporate net profit, because brands are used to distinguish products, not companies.
The second step is to establish an indicator evaluation system for the brand's comprehensive capabilities and calculate the brand's comprehensive strength coefficient (L). These indicators include: market share, brand protection, brand support, brand market characteristics, the sense of trend represented by the brand itself, the international power of the brand, and the longevity of the brand.
The method used in this step is mainly the expert scoring method, that is, first set the existing base value of each indicator to 1, and then use the expert group to judge the rate of change of each indicator in the future life years. If a certain The change rates of the six indicators assessed before the year were Ai, Bi, Ci, Di, Ei, and Fi, then the market power coefficient of the year was Li= (1 Ai) × (1 Bi) × (1 Ci) × (1 Di ) × (1 Ei) × (1 Fi), the sum S of the market power factor coefficients in each year is the total market power coefficient in the future life cycle. Therefore, using market power factors to adjust future market competitiveness is based on market power indicators and excess profit indicators that reflect market competitiveness from different aspects. However, due to the complexity of realistic factors, the two are not consistent. In order to improve the evaluation results Objectivity and accuracy, so a question is evaluated from two perspectives.
The key to this method is that the selected experts have a clear grasp of the various indicators of the brand's future market power, so that the evaluated indicators of the brand's future market power are feasible. However, due to the late start of my country's market economy, we do not yet have a full understanding of certain economic methods under market conditions. In fact, in the operation of the market economy, most models and information are obtained through judgment by appraisers, marketers, and mathematicians. The set weights should be determined by an evaluation firm with considerable market experience, because they have a much more accurate grasp of the laws of the problem. Therefore, combined with an experienced and knowledgeable expert team, they can predict the future brand market power. The estimation of changes in indicators can fully enable the implementation of this evaluation system.
The third step is to determine the value of the brand (V). This is the most critical and most effective but also the simplest step. Just use the formula: V=P×L to calculate the final result.
The fourth step is to check and test. Any evaluation result may be biased. Therefore, in order to be true, effective, and fairly and objectively reflect the value of the assets being evaluated, after all evaluation work is basically completed, a feedback test to verify credibility and validity must be conducted. If the results of multiple calculations are similar or the same, it means that the reliability of the assessment is high and the assessment results are reliable. Validity verification based on statistical data and adjusted factors is a common method to ensure the validity and objectivity of evaluation results. In view of the fact that there is currently very little historical data on brand evaluation in my country, we can learn from foreign experience, such as the value and sales of foreign brands. The ratio is one to one, and we can use this as a reference to verify the validity of the assessment work. This approach focuses on the brand's profitability while balancing various factors. Use the brand's existing profitability as the base to establish the brand's value on an objective basis. Only with a real present can there be an objective future; through the calculation and analysis of the brand's market power factor coefficients, the brand's profit The value content other than the indicators (market power indicators) is reflected in it and extends to the future, covering the profitability of future periods. It examines an issue from two angles complementary to each other, ensuring the integrity of the brand value and Make brand value reflect future market competitiveness. Comprehensive, objective, realistic and combined with the future are the characteristics of this method. ⑥