By Jack Perlinski | Brand Strategist
Underpinning every brand strategy are the management and control systems that deliver your brand on a day-to-day basis. This includes the consistent delivery of your daily operations – everything you write, say and do. From the message you convey in your marketing collateral, proposals and daily communications, to the way your entire team answers the phone and interacts with your customers… everything should be a positive reflection of your brand.
It’s not an easy task and many businesses fail to understand that branding is a complex, demanding and all-encompassing strategic business tool. Branding is not a product – it is a process requiring continual and committed energy. The businesses that have learnt to master the art of brand performance, and those who have taken the time to invest in their brand process strategically, are a force to be reckoned with – they lead the pack and recoup substantial rewards.
Let’s talk real brands
The best known, most trusted and admired brands include some of the most valuable brands, in dollar terms, in the world. These businesses will tell you that their brand is their most valuable asset, and they have the valuations to prove it.
In the global 2018 BrandZ Top 100 Most Valuable Global Brands Report, Google topped the list, with the brand valued at $302 063 million. Following closely behind are two other technology giants – Apple valued at $300 595 million and Amazon valued at $207 594 million. Closer to home, Commbank is worth $19 286 million making it Australia’s most valuable brand.*
It certainly seems easier for the big guys, but some of you may recall the figure Zupps attracted for its sale in 2008. One of Queensland’s largest family-owned businesses, the Zupps Group – known for its use of the distinctive elephant as its icon – was sold to an Automotive Holdings Group for $117 million, $80 million of which was attributed to goodwill. Not bad for a man who started with such humble beginnings, from a small garage in Ipswich, Queensland.*
The Zupps Group – known for its use of the distinctive elephant as its icon – was sold to an Automotive Holdings Group for $117 million, $80 million of which was attributed to goodwill. Not bad for a man who started with such humble beginnings, from a small garage in Ipswich, Queensland.*
Calculating brand value
Gone are the days where brands are viewed as non-measurable, decorative ‘fluff’. Corporate brands are serious business and although it’s different for everyone, what we are all recognising in today’s new business economy is that brands have a real strategic value. A well-assessed, regularly measured brand is a powerful way of gauging how your business is being perceived in the market from year to year. What we need to develop however are new strategies for catching what has been an elusive shadow, that is, the valuation of what your brand is worth, by measuring the performance of your brand.
There are specific formulas for calculating your brand’s value and a few schools of thought regarding the valuation process, but they will generally be based on the value of trademarks and trademark licenses, plus associated goodwill, an analysis of future earnings and brand equity performance. For more consumer-orientated brands, an assessment will also be made on the brand’s value as a proportion of enterprise value. The most powerful brands are those that are valued at between 25% and 60% of their market capitalisation.
Why is it important?
A brand’s dollar value indicates how important that brand’s name is to earnings and the sort of ‘pull’ it has in the market. A valuable brand will not only help attract potential partners and investors, but will guarantee that buyers will be prepared to pay a premium to be associated with your brand. But let’s not forget the internal benefits. A valuable brand will also help you attract and retain high-calibre employees, board members and advisors, and motivate a host of other people to join forces with you and help you in your cause. Once you establish a team that is emotionally and intrinsically engaged with your brand, it will develop an energy all of its own.
What is your brand worth?
Do you know what your brand is worth? How do you think it would change the way you felt, if you knew the answer? Once you see the value of your brand represented as a figure on your financial profile, it’s no longer just a perception of value, it’s tangible and motivating everyone to work together to sustain the brand becomes a considerably easier sell. At the end of the day, it’s about a solid and unwavering belief that what your business does is worthwhile and that every effort you make towards promoting your brand is a valuable, meaningful activity, with a direct correlation to your financial integrity and drives you closer to the legacy you are working so hard to build.
Once you see the value of your brand represented as a figure on your financial profile, it’s no longer just a perception of value, it’s tangible and motivating everyone to work together to sustain the brand becomes a considerably easier sell.
It is this absolute belief and passion to both understand and value your brand that underpins what everyone in your business collectively does, or needs to do, to realise the value of a truly successful memorable and valuable brand.
*Source: Courier Mail, 22 March 2007