How Interbrand Calculate Brand Values

How Interbrand Calculate Brand Values - How Interbrand...

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How Interbrand Calculate Brand Values: Financial Analysis This measures the overall financial return to an organization’s investors, or its ‘economic profit.’ Economic profit is the after-tax operating profit of the brand minus a charge for the capital used to generate the brand’s revenues and margins. Role of Brand Role of Brand measures the portion of the purchase decision that is attributable to the brand, relative to other factors (for example, purchase drivers like price, convenience, or product features). The Role of Brand Index (‘RBI’) quantifies this as a percentage. RBI determinations can be derived in three ways (and are described in order of preference below): 1. Primary research. Specifically designed research, such as choice modeling (although other techniques are available), where RBI is statistically derived.
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Unformatted text preview: 2. Existing research plus Interbrand opinion. Existing research addressing the relative importance of purchase drivers is combined with Interbrand’s opinion on the extent to which the brand influences perception of how the product or service will perform against each driver. 3. Qualitative assessment. Based on management discussions and past experience. This is used where no market research is available. Brand Strength Brand Strength measures the ability of the brand to create loyalty and, therefore, to keep generating demand and profit into the future. Brand Strength is scored on a 0-100 scale, based on an evaluation across ten key factors that Interbrand believes make a strong brand. Performance on these factors is judged relative to other brands in the industry and relative to other world-class brands....
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