Methodology Of Interbrand.com.ppt OF INTERBRAND.COM FOR RANKING OF TOP BRANDS IN WORLD Directory of...

METHODOLOGYOF INTERBRAND.COM

FOR RANKING OF TOP BRANDS IN WORLD

Directory of Management e.PublicationsJuly (2011) Vol. 1, No. 1

FOR RANKING OF TOP BRANDS IN WORLD

Prepared by:

Mujahid Hanif

Email:

© HRMARS, Pakistanwww.hrmars.com

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INTERBRAND.COM

Interbrand’s method looks at the ongoinginvestment and management of the brand as abusiness asset.

Method takes into account all of the many waysin which a brand touches and benefits itsorganization – from attracting and retainingtalent to delivering on customer expectation.

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THREE KEY ASPECTS THAT CONTRIBUTE TO THE

ASSESSMENT

The financial performance of the brandedproducts or services.

The role of brand in the purchase decisionprocess.

The strength of the brand.

3


FINANCIAL PERFORMANCE

Measures an organization’s raw financial return to theinvestors.

Remove taxes from net operating profit:

Get NOPAT Get NOPAT

NOPAT – Capital Charge

Gives Economic Profit for the year.

Industry Weighted Average Cost of Capital (WACC) isused for calculation.

4


Calculation is used for 5 year forecast andterminal value (expected value after five years).terminal value (expected value after five years).

Economic profit that is calculated is thenmultiplied against the role of brand.

The value obtained is added to Evaluation.

5


ROLE OF BRAND

Measures the portion of the decision to purchasethat is attributable to brand.

Not considering other aspects of the offer likeNot considering other aspects of the offer likeprice or feature.

Difference between the demand of branded andunbranded products with same features andprice.

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METHODS FOR DERIVING ROLE OF

BRAND

Primary Research

Review of historical roles of brand for companies in thatindustry.

Expert panel assessment.

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JUST TO REMIND . . .

Role of Brand is multiplied by economicprofit calculated in the previous stage to getprofit calculated in the previous stage to getthe value that is added to the finalevaluation.

8© HRMARS, Pakistanwww.hrmars.com

BRAND STRENGTH

Measures the ability of the brand to secure thedelivery of expected future earnings.

Reported on a 0 to 100 scale. 100 means PERFECT.

Based on an evaluation in 10 dimensions ofbrand strength.

Judged on relative scale.

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Brand strength determines, through a proprietaryalgorithm, a discount rate.

That rate is used to discount branded earningsThat rate is used to discount branded earningsback to a present value based on the likelihoodthat the brand will be able to withstandchallenges and deliver the expected earnings.

Gives Brand Value

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Summing up


BRAND STRENGTHBRAND STRENGTH


COMPONENTS OF BRAND STRENGTH

1. COMMITMENT

► A measure of an organization’s internal commitment toor belief in its brand.or belief in its brand.

► Commitment is the extent to which the brand receivessupport in terms of time, influence and investment.

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2. PROTECTION

► Examines how secure a brand is across a number ofdimensions.

► From legal protection and proprietary ingredients todesign, scale or geographic spread.



3. CLARITY► The brand’s values, positioning and proposition must

be: Clearly articulated

Shared across the organization

Having clear view of its target audiences, customerinsights and drivers.

► It is vital that those within the organization know andunderstand all of these elements.



4. RESPONSIVENESS

► A brand’s ability to adapt to market changes,challenges and opportunities.challenges and opportunities.

► The brand should have a desire and ability toconstantly evolve and renew itself.



5. AUTHENTICITY

► How soundly a brand is based on an internal capability.

► Does a brand has a defined heritage and a well-grounded► Does a brand has a defined heritage and a well-groundedvalue set?

► Can it deliver against customer expectations?

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6. RELEVANCE

► How well a brand fits with customer needs, desires anddecision criteria across all appropriate demographics anddecision criteria across all appropriate demographics andgeographies.



7. UNDERSTANDING

► Not only must customers recognize the brand, but theremust also be an in-depth understanding of its distinctivemust also be an in-depth understanding of its distinctivequalities and characteristics, as well as those of the brandowner.



8. CONSISTENCY

► This measures the degree to which a brand is experiencedwithout fail across all touch points and formats.without fail across all touch points and formats.



9. PRESENCE

► This measures the degree to which a brand feelsomnipresent and how positively consumers, customersomnipresent and how positively consumers, customersand opinion formers discuss it in both traditional andsocial media.



10. DIFFERENTIATION

► This is the degree to which customers perceive the brandto have a positioning that is distinct from the competition.

©H

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ARS,Pakista

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©H

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ARS,Pakista

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Methodology Of Interbrand.com.ppt OF INTERBRAND.COM FOR RANKING OF TOP BRANDS IN WORLD Directory of...

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