Shareholder receipt from the brand
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The brand value of the Company's strategic plan of business in modern times has come in no way at all. There is much to say about its classical definition. Simply put, what is the presence of existing or potential customers in a company and their product or service, their brand value? The most important asset of the good company is the company. Again weak brand can be seen in the opposite role. A trend is very clear in the new century, that the company's overall asset structure contributes to untouchable assets like brands, they are generating more cash flows than others. They are also overtaking others in profitability. Shares also know what it means ...
In 2012, a group of Stockholm School of Economics showed that long-term return comes when investing in strong and valuable brand owners. At the same time, the risk of the portfolio formed with the share of these companies is comparatively less.
Two researchers named Alexander Engel and Joachim Amadius Olson, who reviewed the returns of various European companies' brand equity, business data and shares, from 2005 to 2012, said that strong brand owners have given more returns than Portfolio Indices and other portfolios of shares of the companies. Average annual return was 12.7 percent. On the other hand, the beta value of the portfolio is lower than other compositional portfolios, even the average market share. This means that investors have got a lot of returns over the long-term from the share of strong brand companies with comparatively less risk. Less Beta and more alpha, the pursuit of the efficient fund manager is here.
The question is simple, why is it so.
In the north, firstly, the brand value is such a wealth, which reduces the pain of the company's sales team. Customers who are satisfied with good brands, loyal to the brand, have a well-known brand, can relieve the customer's doubts about the quality of good brand products or services. In addition, the good brand of the competition works as an additional power of the company's strategists, which also gives courage to determine their premium prices. In contrast to sales, a strong brand can also be seen to reduce the cost of promotions. Examples of this are we see every day. While there is a free or big discount offer with a general brand, there are strong brands doing good business even without such discount.
That is, the brand has an important role in the company's competitiveness and competitive position everywhere.
However, the brand value is to invest a long time. He is also financially financial, also meritorious, and also for a short period of time a lot of texts. On the contrary, the company has gained the respect of current and potential customers for its products or services. Companies like Coca-Cola, Apple, Samsung, Google, Gillette, Toyota, BMW or Honda are among the most straightforward examples of how this award can give to a company in the fight to simultaneously sell and increase profits. In our country, looking at the brand value and sales growth of British American Tobacco, Berger Paints, Grameenphone companies, it is also possible to understand this.
Brand Equity
The brand's equity and the combination of a company like Equity is called brand equity. These assets and liabilities are divided into five main categories, brand loyalty or brand loyalty to the brand, name contact, expected value, customer affiliation with brand and other assets including names, symbols, logos.
The greater the brand equity of the company that plays the role of selling and profits, the greater the brand equity. Companies have been running behind the valuation of their brands since the 1980s, to accurately reflect themselves to the investors. It is the start of this service by consulting company Interbrand, and to date they are the most acceptable names in brand value.
Two simple methods are used to determine the price of the brand: In the first method, it is calculated that, on the basis of the money used by the company in the form of fees against the sale of the brand from third company, The issue is like a relativistic valuation in the stock market.
The second method is called the Absolute Valuation, which uses the interband. Here the interbrand calculates three things. First of all. How the brand influences financial performance of the company's products and services. Secondly. How the Brand's role in consumer decision-making and selection process Thirdly. The brand gives the company the opportunity to keep premiums for pricing.
The Swedish Equity Tables were used mainly by the Swedish researchers. But where do we find the table for the shares?
The answer is, we will not be able to have a literal valuation of brands under our listed companies. But we can also ask questions like interbrand. It probably does not have a literal answer. However, keeping a small survey of family and friends, it is possible to make a ranking among some brands. We can also practice discounts for some premium and weaker brands in the value of valuation for good brands.
Management skills, good governance and brand value
Imagine a brand under a company
