Brand Equity as Business Imperative

BRAND EQUITY – BUSINESS IMPERATIVE

 

Why is Brand Equity important, mostly misunderstood and not very topical?  Some Fortune 500 companies have in recent years introduced brand valuation research in their organisations.  The surveyed value findings, are ultimately reflected as goodwill on their balance sheets.  More prominent coverage has been afforded to the various annual Top Global Brands rankings, which are brand value based.  Technology brands dominate the higher rankings and have become the top overall performers in many of these surveys.  In the past, consumer brands like Coca Cola dominated the top spots.

Is there a single universal methodology to measure brand value?  One can understand the researchers in this specialist field operate in a highly competitive and lucrative environment; not all methodologies are available for public consumption. Accountants apply their own methodology when determining brand value as discovered.  In most cases the findings of the valuation exercise exceeds Client expectations. It occurs naturally, when introduced for the first time by a brand to determine its value.  Brand and Marketing professionals should consider reviewing the value of their brands at least once every three years, initially.  Annual measurement provides companies with a clear indication whether their strategies managed to deliver on their stated objectives.  A comprehensive study unpacks and simplify all the brand equity elements; highlighting their value contribution percentage.  

Next step is to communicate the valuation findings to as many key stakeholders as possible.  Your Board should be your primary target audience when the findings are communicated and presented.  Ensure your translation simplify the findings, pitched strategically; your end-goal to achieve majority support, understanding and appreciation for your brand and its value as a business imperative.  Inspire and influence your Board to become champions/advocates of the Brand; remain top of mind, especially during business re-engineering considerations. Define, outline and explain the medium to long term pragmatic interventions, geared towards achieving annual brand value growth. Brand Equity considerations become more prominent when growth strategies options are considered, like mergers and acquisitions.  Brand valuation surveys are no longer “a-nice-to-have”; critical to know the value of your Brand.

The model as seen above has been designed to capture and articulate all the brand elements, which contributes to the equity and ultimate value of a brand.

Most Brand Navigators expect clearly defined actions and behaviour from their Employees. These actions and behaviours are intended to achieve positive and beneficial outcomes for their brands.  Strive towards Clarity of what your expectations are, which will result in Consistency in their actions/behaviour, Aligned to your Brand Objectives.

To conclude; in order to manage your Brand Equity better, develop Brand Equity Goals, which are monitored and measured.