Interbrand specializes in evaluating brand strategies, analytics, valuations, and management. Brand consultancy has been at the forefront of company branding for decades. The company produces a yearly ranking of the strongest and most valuable brands and is respected as an authoritative voice on brand equity and value.
Interbrand uses a specific methodology to evaluate brands. Interbrand considers:
• a financial forecast
• the role of brand
• a strength analysis.
Interbrand uses financial analysis to examine profits that the brand has generated for its products or services. This financial forecast determines a large portion of the brand’s valuation.
The role of brand analysis measures how the brand influences consumer choices. This analysis determines how to drive growth, position the brand, and show the areas where branded investments will have the greatest impact. This type of analysis determines earnings that are attributable specifically to the brand.
The strength analysis diagnoses the brand by measuring its performance versus competitors. Determining the strength of the brand is vital to measuring brand loyalty, reducing risk, and increasing company value.
After using these analysis tools Interbrand calculates the brand’s contributions, financial, and brand value.
Advantages of the Interbrand Method
The main advantages of the Interbrand methodology of brand valuation are the many years of evaluating brands that have helped them develop effective analysis tools that give a realistic idea of brand value. These tools help to identify clear strategies and opportunities that drive additional brand and business growth. Interbrand has built a reputation as an accurate brand evaluator.
One disadvantage to the Interbrand methodology is that the financial data they use to analyze the brand may not be final or accurate. The Interbrand method of brand evaluation is a professional, well-informed “guess” that is backed by financial information that may not be directly tied to brand value.
Evaluating a firm’s brand value is vital in determining strategies and opportunities that drive business growth. The Interbrand method of evaluating brands is a helpful way to determine a brand’s role in identifying opportunities, determining goals, and driving brand and business growth.