Brand value is the financial worth of a brand in its market. A brand is worth the amount that someone purchasing it would pay, and this worth is defined as brand Value.
For raising the brand value, businesses need good brand equity which is the consumers’ perception of the brand. Brands with good value in the market not only generate more revenues but also enjoy an optimized presence in the market, as good brand values protect the market share of the existing companies.
What is Brand Value?
Brand value is an accounting term that is the monetary amount describing the worth of a brand. It is found in the balance sheet and is the price at which a brand can be sold at a given time.
This brand value can be approached in two ways. First is market-based brand value. This is the price that a buying party would have to pay to use your business, its logo, name, products, and other operations.
Next is cost-based brand value, which is the replacement cost of the brand. This means the cost at which a brand new company would have to be planned, designed, and marketed to be in the same position as your brand.
How Value of a Brand Can Be Measured?
In the multi-faceted concept of businesses today, brand value does not alone dictate a business’s success, but it does contribute to it. Therefore, it is not easy to calculate one’s brand value without the proper tools.
One way to roughly gather an idea of your brand’s worth is by hearing out the amount that a party is willing to pay to acquire your brand and its assets. While they are likely to downplay it and negotiations might reveal a higher sum, it is one way to get a rough idea of your brand value. Another method is by conducting an internal study to assess the costs of building up a brand from scratch to your brand’s status. That amount would be called your brand value.
Brand Values vs Brand Equity vs Brand Loyalty
While brand value, as discussed above, is the total monetary worth of your brand, brand equity, on the other hand, involves the qualities that make your brand value. This involves brand image, perceptions about the brand in public, customer experiences, loyalty, etc.
Therefore, brand equity is an essential factor in building brand worth by enhancing the intangible qualities that a brand has. High brand equity contributes to high brand visibility, favorable publicity, and high sales. Brand equity is hard to measure, but its effects reflect in organization growth in the long run.
Brand Loyalty is used for the consumers who prefer buying from a particular brand repeatedly. In case you’ve ever heard someone saying, “I’m a Coke Lover” or something like that then it shows their brand loyalty.
Ways to Enhance Your Brand Value
All companies strive to increase their brand value so that their company stands to be an influential member of their industry. There are three ways that companies can build a strong brand value:
1. Putting the customer first
All business operations thrive by putting customers’ requirements first, so the same goes for building brand value as well. Proving an enriching customer experience is not limited to producing good products alone. Brands can use resources to build a powerful website, improving in-store ambiance, and engaging with customers even after a purchase. Customer loyalty is easily built, and it endures even when prices are increased.
2. Engaging in brand ambassadorship
People love to engage with brands that have a face to their name, so brand ambassadorship is highly profitable. Employ influential names such as singers, film stars, chefs, sports personalities, and even online influencers to promote your brand. By merging attention from their fans as well as fans of the brand, a lot of brand awareness is created.
3. Spreading the word with marketing
Marketing strategies are best to improve upon the brand value of a company. From huge billboard ads to cheap social media ads, there are plenty of ways to advertise your brand and products on any budget. The advent of social media has made marketing accessible for all brands. Marketing will help create a buzz about your brand, resulting in brand awareness and high sales.
Brand Values Examples
Different companies offer different brand experiences and hence their brand values also differ. Let us have a look at the core values of some of the top brands around the world-
- Leadership value that incorporates courage to shape a better future
- Collaboration values in leveraging collective genius
- Integrity to be real and unique
- Accountability to say that if it is to be, it’s up to me
- Passion to stay committed in heart and mind
- Diversity to be as inclusive as its brands
- Quality assurance by promising- what we do, we do well
- Performance-oriented as the sport is the foundation for what we do
- Passion-driven as we are always moving forward
- Integrity is intact because people trust us because we are honest and ethical
- Diversity is incorporated as it takes people with different backgrounds to make our company succeed
- Be bold that promises to take action and go
- Build relationships/deliver results because relationships deliver results, and we make a difference by working together
- Challenge and collaborate as the brand believes to have hard conversations, and does not assume anything
- Focus on the outcome as the brand likes to embrace learning curves to accomplish the goal.
- Start with the consumer as it is important to always put yourself in the consumer’s shoes.
- Stay open as the brand believes that differences strengthen the team, and combining experiences and expertise makes for better problem solvers
The value of a brand is one of the essential parts of its successful and sustainable presence in the market. From a physical store to an e-commerce site to an established brand, brand values ensure that your customers believe in your brand.
Therefore, you should try to not only incorporate strong core values but should always communicate them to your partners, employees, and target audiences.
How important do you consider brand values for a business? Share your opinion with us in the comment section below.
Pinky is an MBA in Marketing from the University of Mumbai. She loves helping people out in learning Marketing and sharing latest ideas and tactics for growing businesses.