The following situations are brand attributes:
The price of a branded product is 15-40% higher than for a similar product without a brand.
A product that is a brand may have a larger market share than a similar product that is marketed as a trademark (but not a brand).
For branded goods, a significant portion of consumers (about 50%) show absolute loyalty; they are ready to refuse or postpone a purchase, but not to buy a substitute. For ordinary brands, the degree of absolute loyalty is no more than 10-15%.
Today, the demand for products sold under prestigious brands in the market is growing faster than for other products.
Companies producing branded products have advantages over wholesalers-intermediaries in obtaining conditions for their promotion.
What influences brand value
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Without these conditions, brands would not exist. Branded products essentially provide added value to the company, increasing cash flows and profits. How much is a brand worth in Russia?
If the price of a trademark includes expenses on registration and legal protection (only 5-10 thousand dollars in the Russian Federation), then a brand can cost millions and even tens of millions of dollars. For example, in 2004, Moskommertsbank provided a loan to Rover Computers using the RoverBook and RoverScan brands as collateral. The bank valued these brands at 6.5 million dollars, and issued a loan amount of 1.2 million dollars.
The Most Valuable band data package Brands of 2023
The most expensive world brands:
Apple – $502.6 billion;
Microsoft – $316.6 billion;
Amazon – $276.9 billion;
Google – $260.2 billion;
Samsung – $91.4 billion;
Toyota – $64.5 billion;
Mercedes-Benz – $61.4 billion;
Coca-Cola – $58 billion;
Nike – $53.7 billion;
BMW – $51.1 billion
The most expensive brands in Russia are:
Sberbank (not for the first year) – $12 billion;
Gazprom – $5.5 billion;
LUKOIL (private oil and gas company) – $5.1 billion.
Download a useful document on the topic:
Checklist: How to Achieve Your Goals in Negotiations with Clients
Frequently Asked Questions about Brand Value
"Brand value" is not an exact economic assessment, but a marketing term. It is used in the process of selling a business or opening a franchise, but there will not be many buyers precisely because of this amount after calculation. It is impossible to calculate with accuracy to the ruble - any method will only give an approximate value.
Brand valuation depends on many indicators, and it is basically impossible to influence them. Let's say that now some calculation method shows a certain amount, but tomorrow the brand will cost hundreds of times higher or lower. The famous British entrepreneur Richard Branson once said: "It is pointless to strive to become the biggest brand. It is much more important to become the most respected brand."
How much does it cost to start your own brand?
Research shows that the cost of branding, including the entire corporate set (development of a brand platform and positioning, mission statement, legend, naming, logo, style), ranges from 300 thousand to 5.5 million rubles.
What is brand power?
The degree of brand awareness among consumers is its strength. A popular brand has a difference between the cost price of the product and its selling price. In marketing language, this is called a price premium. Branded products are much more expensive than similar products in the same category.
What is the easiest way to determine brand value?
To find out how much a brand is worth, subtract the following from the company's value:
monetary assets for a certain period of time (all);
tangible assets (all);
intangible assets (also everything).
Should you count your company's brand value?
Of course, any organization will find a reason when brand valuation is simply necessary. However, this does not mean that you need to urgently call a professional appraiser for expensive calculations. Contact him only when you are going to sell the brand or transfer it under a franchise agreement. In other cases, for example, for regular purposes (brand management, evaluation of the effectiveness of investments in its development), the company's management and marketing staff usually make such calculations themselves.