Brand valuation

Abstract

The world has become increasingly global and the competition has intensified. Competitive advantages such as technological innovation will tend to have shorter life cycle and the contribution of Brand to shareholder value will rise. Brand is perhaps one of the few attributes that will always have a sustainable competitive advantage as we go ahead. Even in the event of this realization and the utility of the Brand in the commercial market space there are hardly any agreeable and robust process to manage the brand asset. With increased competition and the rising importance of intangibles components to the organizations, managers will want to install more value based brand management systems that can align the management of the brand asset with that of other corporate assets. Not enough data is available about the contribution of brands to its financial statements. Investments in and returns from tangible assets are reported at sophisticated and detailed levels, but the same is not true for intangible assets. Therefore, there is increasing need for valuation of the Brand in both managerial and transactional cost. The purpose of this literature review is to understanding the concept of Brand Valuation and discusses the various approaches used in Brand Valuation. Finally it ends with the creation of a typology for classifying all the methods, procedures and research papers.