Brand value

Brand equity or sword esteem measures the total value of the brand to the brand owner, and reflects the extent of brand franchise.

A post tin can be an intangible asset, used by asnalysts to rationalize the difference between a company's "book value" and market value. For example, the market value of a company can far exceed its material asets (carnal assets owned of the company, such as stock or machinery), and its brand value can account for some of the difference. Up to 85 percent of a company’s market assess might be nonmaterial (for utilization formula, extant client relationships), and Interbrand, a mark consultancy, states that real assets may account for less than five percent of a company’s market value, for example in the case of Coca-Cola or Microsoft.

Marque valuate, especially in the instance of consumer production brands, may arise out of customer loyalty. Brand value may also arise in terms of staff retention benefits (e.g. the ability by the company to attract and retain skilled and/or talented employees offering competitive salaries).

Brand value can be negatively influenced. For example, in 1999 Nike's brand value was estimated at 8 billion US$. Facing media exposure and consumer boycotts over supply chain issues, Nike's post value slumped in coming after cardinal weeks to seven.sextet billion US$, and rose back to 9.26 billion US$ in 2004 after Nike addressed its supply chain makes out.

Electioneering radicals may deliberately mark a societies carry evaluate to force a company into dramatizing a certain position or practices. Some campaign groups have thought to do this by deliberately subverting a brand’s image, logo or message, creating a negative association among consumers. This attack may be optic, when pioneered by groups such every bit Adbusters, or focusing upon the message. For example, BP’s “Beyond Petroleum” branding is subverted by campaigners into headline such as “BP: Beyond Petroleum or Beyond Preposterous?” or "BP must move beyond petroleum as profits soar".