Brand Valuation

Brand value is the soul of a product that is offered in the market. Often brands become synonymous with the product, with the power of marketing and creating awareness among the customers. For a brand to establish its identity, appropriate market research, campaign and survey can change the whole story and the visibility of the product in the market.

What is brand value?

Brand value is an intangible asset that companies are ready to spend millions on brand. In easier words, the brand value is the awareness and knowledge about the brand. The brand value holds a high position. Often, the buyers forget the product's name and remember the brand name; like, people often refer to instant noodles as Maggi. Maggi is a brand name under the business group Nestle, and the product is instant noodles, but the brand name became synonymous with the product.

How is the brand value calculated?

• The brand value can be called the “revenue premium” over the non-branded products of a similar kind. Brand value is product advertising and marketing. To convince the buyer that the product does not have any alternative in quality, packaging, service, and other relevant factors.
• For the identification of revenue premiums, the market requires identification. Identifying challenges such as the acceptability of the product in the market can never be predicted; they can only be assumed. In certain situations, brands that are too good are not widely accepted compared to an average quality product.
• Getting loyal customers is not a day’s work; it takes years to gain trust. The “revenue premium” approach is used alternatively by valuing the customers rather than valuing the brand. 
• When preferences are identified, a product can be offered to them accordingly, instead of stressing much about making the product perfect itself.

Effect of brand value on daily operations

1. A brand value metric is the data acquired to identify the brand gaining value against the brand losing the value. In the investigation of determining the brand value metric, several factors are identified- the rate of defection campaigns bringing effect and other market development, such as changing preferences, recent trends, etc.
2. By analysing the market trends and the insights from the consumers, an effective campaign is created with a justified investigation.
3. An investigation followed by an effective campaign can change the brand value. The return from the campaign is the most critical metric, pushing the budget on marketing parameters, justifying the brand-related cost and future of the campaigns.

How is brand value different from brand equity?

Brand equity is the set of assets or liabilities forming the brand visibility, association of the brand, and the customers' loyalty that raises or decreases the value of the product taken into consideration.
On the other hand, the brand value is the financial credibility of the brand.