In addition, brand performance is relevant in order to determine the correct value of a brand with other factors. A lot is invested in the brand every year, but what is the brand really worth and is that investment justified? Being able to determine brand equity is therefore crucial for any organization.
A brand with unique visual brand attributes such as Lila Pause has more brand value
Brand value of B2C brands can usually be determined fairly unambiguously.
There are already several existing brand valuation methods to determine the brand value of B2C brands. Although they only include a limited part of the brand performance in their value calculation. Often these are financial parameters such as turnover, profit and other financial factors. It is striking that these financial valuers such as Brandz, Interbrand, Forbes and others calculate different values for the same brand.
An example: McDonalds brand:
- Statista -2020- $ 129 billion
- Interbrand -2019- $ 45 billion
- Brandz -2019- $ 130 billion
- Forbes -2020- $ 46 billion
A good brand value model also includes other important factors that lie in the field of branding, marketing and commerce. Together with the financial factors, this then indicates a weighed value of a brand, if properly analyzed and calculated. The value of a brand differs per sector and also depends on market conditions; that is why customization is necessary for brand valuation.
The advantage of calculating the value of B2C brands is that in many cases it contains hard data and / or research data. This makes the valuation method more stable and objective.
Picnic’s brand value is increasing very quickly, as is turnover
Brand value of B2B brands is more difficult to determine.
Whereas with B2C brands you can often fall back on hard data, brand tracking research and other research data, this is much less the case with B2B brands. There, this type of data is much less available and data is often less hard.
Nevertheless, it is also very important for B2B organizations to know what a brand is worth and therefore which brand performance is being achieved.
The financial data is often the same factors as with B2C brands, so you can determine them, but the other factors are different. Factors such as value proposition, customer satisfaction, quality of the products or services delivered, size of customer base, reputation of the company, reputation, service orientation, visibility, delivery reliability, innovative ability, problem-solving ability, business prospects, and pricing / cost-efficiency also play an important role. The trick is to put all those factors in a balanced and measurable model so that other B2B brands can also be objectively compared with them. Easier said than done.
In order to determine how a B2B brand scores, these kinds of factors should be measured annually in order to determine the brand performance.
In addition to being able to use relevant brand, marketing and commercial data, there is another very important deviating facet in the valuation, namely the conversion key that is used to express the ultimate brand value in euros.
Goals often differ between B2C and B2B brands
A well-managed brand creates a larger market share, higher prices, more loyal customers and greater reach by expanding the brand. By investing in your B2B brand you can also have a competitive advantage in the long term.
It is nice to know the current value of a brand or package of brands in a planned takeover or sale of a company. The value and growth potential of the brand is very important in that case.