Brand Valuation Methodologies and Practices

• Author: Duguleana, L. - Duguleana, C.
• Position: Dept. of Management and Economic Informatics,Transilvania University from Brasov - Dept. of Finances, Accounting and Economic Theory, Transilvania University from Brasov
• Pages: 43-52

Bulletin of the Transilvania University of Braşov

Series V: Economic Sciences • Vol. 7 (56) No. 1 - 2014

BRAND VALUATION

METHODOLOGIES

AND PRACTICES

L. DUGULEAN;1 C. DUGULEAN;2

Abstract: There are few companies which act on the market of brand

management; they offer ranking lists for top brands in certain industries,

activities, countries, regions or just global brands. The rankings of best

global brands are different, depending on the company which elaborated

them. The brand valuation methods are subject to a standard and some

guideline notes, but they represent rather a niche for these companies of

brand rankings. The brand value which contains future aspects, combined

with difficulties in the valuation of the intangible assets of brands, analysed

in a dynamic and complex global framework, becomes very difficult to be

estimated. Brand owners and investors are interested in the brand potential

value, considered to be the creative value force on markets. The paper brings

forth some common aspects and some criticism of brand valuation

methodologies and practices. Some questions about the credibility of the

ranking lists of best global brands arise.

Key words: brand equity, brand valuation, brand rankings.

1 Dept. of Management and Economic Informatics,Transilvania University from Braşov.

2 Dept. of Finances, Accounting and Economic Theory, Transilvania University from Braşov.

1. Introduction

Well known companies create, develop,

manage brand values and promote

successful brands. They produce annual

rankings of top 10, top 50 or top 100 Best

Global Brands, as Single or as Corporation

Brands, for certain countries, regions,

within envisaged industries - at World or

European level.

Such companies are: Interbrand,

Millward Brown Optimor which produces

BrandZ list, the European Brand Institute

in Vienna, Brand Finance, Global Finance

and many others.

Interbrand was founded in 1974 and has

now nearly 40 offices in Asia, America,

Europe and Africa, being one of the

world’s largest brand consultancy

companies. Since 2000, when the report

“Best Global Brands” was launched, each

year Interbrand has continued this

commitment of promotion of the “brands

as key value creators for business and

society” (www.interbrand.com).

About its BrandZ, Millward Brown

Optimor (MBO) says that it represents a

database that provides a “detailed,

quantified, understanding of consumer’

decision-making worldwide” and “t he

most reliable, comprehensive and useful

brand valuation ranking available” [14].