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
SUMMARY

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... (see full summary)

 
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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].

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