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Brand name can be considered as the most valuable assets in their business, but its value is not generally reflected in the statement of accounts. Along with the intellectual property others, the value of it is calculated on the balance accounting, when achieved from work or other business as a result of the combined business, but not when export from the internal. How, then the manager will have to look for value brand and make the decision to have the same understanding with regard to assets are regarded as the most valuable in business.

The answer lies in the pricing of their business – in its theoretical and practical. The methods used in evaluating business can be applied in the evaluation of intangible property and intellectual property, including trademarks. First we have to define: “A brand contains what?” A brand name can include a label goods, Logo, to create more comprehensive look in the commercial, packaging, marketing strategy, color and all the factors that customers interact with the brand image. We must also remember that some brands also have the brand name (for example, Coca – Cola Classic Coke has, Diet Coke, Cherry Coke, Zero). Moreover, the value of a brand can be the main reason for the intangible property created another. As an example Coke, special formula has created successful brand names. We need to focus precisely on what we are assessing.

Continue with Coke for example, Interbrand estimates the value of brand Coca – Cola approximately 65.3 billion dollars in 1997, considered it as a global brand. Compare with, the value of intangible property by Coca – Cola announced in the financial reports, it is only 3.7 billion dollars. This says that the value of the brand is not recognized correctly in the block assets of the company. Also, if assessed by the capital market (the value of the company on the stock market) was estimated as 140 billion dollars, this is when compared with the value of the brand is 65.3 billion dollars for see market value far exceeds the value of both brands are estimates.

There are 3 ways to access basic needs taken into consideration in determining the value of the brand.

Access by costs
Access by income
Access by market
Approach based on the cost of the accumulated costs to build brand since the beginning, as the cost of advertising, promotion, the campaign creation, the fee, the cost of post Up brand … However, it is often approach worst in determining the value of brand names, because the cost of developing brand names do not always reflect the relationship to the ability of brand advantage. Finally, investors interested in the profitability of the brand in the future.

Approaches under income-based methodology to value the last current, this approach aims to measure economic benefits of the brand in the creation of a flow of profits arising in the future or the flow of cash. Part of this approach is the method of “value added”, based on a false doctrine, that those goods bearing a brand name can create a price benefit in comparison with similar products – The product is not well understood by.

However, the assessment will be increased costs needed to maintain the brand recognition higher than the products do not carry brand names. Forecasting, planning to create sources of income arising from the increased revenue and saving costs, the system of advertising costs to promote them, can be attributed to the brand. The value of the current source of income increased in the future incurred by the brand name is determined through a discounted rate. The rate of discount is based on the percentage of students an investor expectations on investments in brand name, based on the nature and experience related to the risk of it ru. Ru risk, the higher rate to your expectations higher.

A method can be applied in a way that can more income is the formation of the entire source of profit, not including the contribution of other assets (such as working capital and fixed assets, the intangible property other) in the creation of the entire source of income arising from trademark. Then revenue surplus associated with the brand will be discounted to present value.

Access by the market, this method estimates the value of brand names by reviewing the activities of buying and selling in the market affect the same brand. Using the most common method is relief – From – royalty, this approach acknowledges that people use the trademark must be granted the right to use it, if the user is not the trademark owners. Said another way, if a company’s own brand, it requires a license fee for the use of brand names. The ratio of copyright fees is the percentage of the market is determined based on the analysis of the copyright or the copyright date of similar assets.

Implementation of adjustments, necessary to reflect the difference between the ru risks, business conditions, the level of awareness of trademark and brand name strategy, the level of coverage of geographical location, and nature’s trademark for the brand on the market. Estimated percentage of license fees and then applied to forecasting sales of purebred generated from the brand, with the results of the discount on the current value using a rate profitable appropriate as described above. Difficulties of the approach the market is determining the business activities can compare and meaningful work for determining the value of brand names and job adjusted to reflect the difference between under the brand names comparative approach.

Abstract, the value brand can bring as much as art rather than science – but it is a work can help managers identify and develop value by bringing a brand name. Other professional organizations such as Chartered Business Valuators and members of the American Society of Appraisers, can provide nhun understanding and assistance in determining the value of brands and assets invisible other.

Tags: Bigest brand name, Brand Name, Business brand, Business Idea, How to, Marketing strategy, Value of brand

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