MAM

Is Your Brand Identity Worth Billions?

Is your brand valuation worth a billion dollars today? Maybe yes or maybe no, but it surely is worth something pretty big. At the end of the day, all the work you have put in pushing your name identity and your range of products and services in your marketplace adds up in an abstract space of the consumer's mind, where it acquires some great value. This equity can be measured as a real, soft asset. It can have a monetary value like that of a certain type of goodwill or particular reputation. Brand identity is something you might not use to pay the bills but can surely use to negotiate a better price in an M&A or sale of the company.

To measure the value, there are many rules, mostly according to the sales volume and how it has increased over the years, monies spent in promotion and advertising, and how the brand has climbed and at what rate. There also are many other factors, like financial performance, customer perceptions and actual market share.

Published Figures

Most valuations are in billions of dollars; otherwise they don't get media attention. Most top brands of any country are often valued in tens of billions of dollars, and unless you gather a team of forensic accountants, there is no way to prove it wrong or to challenge how a US$50 billion brand value slipped to $25 billion and vice versa.

Most high-profile valuations are done without any input from the management and the owners of the brands, as it is done from published figures. Sometimes brand owners get pretty upset as they are moved seemingly arbitrarily up and down the scale against their competitors.

Normally, year after year, Coke, IBM, Microsoft, Disney, Toyota and Gillette are given a combined value of close to half a trillion dollars.

Most people would think that if Coke were to restart its entire branding history, it would easily cost a trillion dollars, as the company marshaled a global country-by-country marketing and branding launch in a bid to repeat its branding success. The brand valuation of Coke is over $50 billion or so, but somehow the total stock value of Coke is still about $40 billion. Strange math.

Let's explore reality.

Brand Name Dilution

A globally protected unique brand with a unique name identity and steady sales growth can be valued by multiplying annual sales a few times, adding in all the advertising and promotional costs spent on that brand from its inception, and adding in expected sales and the value of each client spread over years. From that, subtract some key things, like competition, lawsuits and other risks, such as possibly losing ownership claim to the brand name and so on. The bottom line is that you might easily end up with a billion dollar number.

Certain things are very tangible and black and white, such as the brand name and its ownership; simply put, either you own this name outright or you don't. Most managers try hard to convince themselves that their single trademark filed in the country of origin is sufficient. They ignore the global e-commerce reality. Most CEOs are simply shy to check the dilution of their brand names on Google.Because less than 1 percent of names are globally protected, the chance is that the entire evaluation is on shaky ground. During any M&A, a price is established on hard and soft assets. Brand valuation is really a soft asset, as opposed to trademarks and intellectual property, which are hard assets.

Imagine, Amazon without its globally protected name identity and URL is just a warehouse with books. E-trade is just an office. What about EBay or Google? The message should be pretty clear.

Recommendations

Management should formulate a small committee and take a quick inventory of issues to calculate some brand value numbers. As long as the resulting valuations are a few times over total stock value, you are doing OK. However, if for some reason it is way less than total assets, then you need to figure out all about your branding and the real issues surrounding the ownership of the brands, names, trademarks and URLs, etc.

Today, branding correctly with the right image and a universal name identity is still a very easy thing to do. All it requires is the right skills. However, the old mass-advertising model is dead. Now, one-to-one marketing offers extremely unique opportunities to become a viable brand with the smallest budget in the shortest time. Apply the correct expertise and correct methodologies. Old models are dead.

If for some reason your brand is not worth a billion dollars, start the right image development process today. It won't take long. Just go for the new rules and new laws of creating billion dollar brand name identities. It is very easy.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/18/sabia.jpg?itok=UPFNUZeB
Madame Tussauds in India; WATConsult wins media mandate

WATConsult, one of India’s leading media agency, which is now a part of the Dentsu Aegis Network, has won the digital and social media mandate of the world-renowned wax museum, Madame Tussauds, which is soon to be launched in the capital city of India.

MAM Media and Advertising AD Agencies
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/18/PC-advrt.jpg?itok=Q6eLTowD
Priyanka in new Pantene ad

Pantene, one of India’s leading hair care brands along with new brand ambassador Priyanka Chopra, launches a new and improved formula. The brand launches its biggest breakthrough in 30 years: Pantene’s new formula with PRO-V and goodness of oils making hair thicker, stronger in just 14 days.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/17/shanu-singh.jpg?itok=M5jb_3ds
E-com: Godrej Interio, IBM tie up

IBM has announced that Godrej Interio, the furniture division of Godrej & Boyce Mfg. Co. Ltd., is collaborating with IBM to capture the attention of the growing number of home furniture and accessories consumers.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/17/Unpack-Your-Dreams.jpg?itok=YDAX1_lp
'Unpack Your Dreams', advise cricketers

Aristocrat has appointed Indian cricket champions Rohit Sharma and R. Ashwin as its ambassadors to endorse the brand’s new identity and stylish product line.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/17/dish-tv.jpg?itok=cnk3-jZ2
Jahan Desh ke Rakshak wahan tak DishTV; special offer launched

There is no greater love, than the love for one’s country. As India celebrated the 69th Army Day on 15 January, DishTV paid tribute to the valour, indomitable spirit and determination of the brave soldiers of the Indian Armed Forces.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/16/raj-nayak-and-asish-bashin.jpg?itok=kl9F_1OQ
Ad Club, AAAI to fight violence against women together

The Advertising Club (TAC) and the Advertising Agencies Association of India (AAAI) have combined forces to launch a campaign to pitch communication as a force for good and battle the scourge of violence against women.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/16/policy-bazar.jpg?itok=tOsXapRD
Bhool Kar Bhi Mat Bhoolna Policybazaar.com

Policybazaar.com, India’s largest insurance website and comparison portal, has launched a new television campaign, with the tagline “Policybazaar.com Par Term Insurance Lena Bhool Kar Bhi Mat Bhoolna.” The campaign aims to highlight the importance of having a term insurance plan.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/17/anita-nayyer-800x800.jpg?itok=s_sM-f5v
Havas Media's new identity tells story of brand ethos; new logo embodies integration of services

Created by Havas (the creative division of the group, formerly known as Havas Worldwide) New York team, the new ‘h’ logo lockup comes from the concept that Havas (Group) is great because of the sum of its parts. In this spirit, the logo concept developed embodies the integration of services,...

MAM Media and Advertising Media Agencies
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/13/bluestone-800x800.jpg?itok=aHphRh4_
'Choose Your Twinkle' on Valentine's

BlueStone.com has launched a new campaign to further strengthen its position as the go to destination for modern contemporary jewellery. Reaching out to consumers through a new television commercial (TVC), the ad film showcases how beautiful jewellery connects emotionally, summing it up with the ‘...

MAM Media and Advertising Ad Campaigns

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories