In economic terms, brands create value by affecting both supply and demand curves. On the demand side, it allows a product to be sold at a higher price, given a determined sales volume. Strong brands can also increase their sales volume and decrease their customer defection rate. On the supply side, brands may reduce operating costs by increasing distributors ’ loyalty, improving personnel recruiting and retention costs, capital financial costs, and finally, by increasing economies of scale through greater volumes.
Valuation for Brand Management purposes is necessary for Brand Architecture, Brand Portfolio Management, Marketing Strategy, Marketing Budget Allocation, and Management Scorecards.
Valuation for accounting or transactional purposes is done for Financial Reporting, Tax Planning, Litigation Support, Securitization, M&A, and Investor Relations. Thus, they focus on a value at a given point in time.
Most top executives recognize that intangible assets, and brands in particular, play an important role in long – term financial success and of course, Brand strength helps a business to generate cash flows and sustainably grow profits over the longer term.
We help the corporates in determining the value of Brand and we do the qualitative research in your business domain and help to build your Brand value.
Valuation I Investment Banking I Transaction I Regulatory Advisory