What is brand value?

From Encyclopedia of MBA Think Tank (/)

Brand value (brand value)

catalogue

[hide]

1 brand value overview

2 strategies to enhance brand value

3 brand value innovation

3. 1 What is brand value innovation?

3.2 Brand value innovation strategy

4 the relationship between brand culture and brand value

5 brand value evaluation

5. 1 The role of brand value evaluation

5.2 Classification of brand value evaluation

5.3 brand value evaluation procedures

5.4 The most valuable brand evaluation method

[Editor] Overview of brand value

Brand value is the core of brand management elements, and it is also an important symbol that distinguishes brands from similar competitive brands. Michael Porter once mentioned in Brand Competitive Advantage that the brand's assets are mainly reflected in the brand's core value, or that the brand's core value is also the essence of the brand.

With the diversification of value theory, brand value is endowed with different connotations. According to the theory of labor value, brand value is a series of joint actions taken by brand customers, channel members and parent companies, which can make brand products get more sales and more benefits than before, and also make brands gain stronger, more stable and more special advantages in the competition (kevin keller. 2003). This definition emphasizes the elements and reasons of brand value; According to neoclassical value theory, brand value is people's willingness to continue to buy a brand, which can be measured by customer loyalty and market segmentation. This definition focuses on evaluating brand value through customer's utility perception. It can be seen that the value of a brand as an intangible asset lies not only in the precipitation cost involved in the process of brand formation and development, but also in whether it can bring value to relevant subjects, that is, whether it can bring higher premium and stable income to its creators in the future, and whether it can satisfy a series of emotional and functional effects of users. Therefore, brand value is a systematic concept formed by the interaction between enterprises and consumers. It is embodied in the comprehensive material and cultural value obtained by enterprises through the exclusiveness and monopoly of brands and the functional and emotional value obtained by consumers through the purchase and use of brands.

[Editor] Strategies to Enhance Brand Value

First, "creating" is not as good as "buying"

According to the analysis report of international authoritative organizations, to create a famous brand, media investment alone needs at least $200 million. If an enterprise tries to enter a brand-new market or another country's market, it will undoubtedly invest more financial resources and energy in brand expansion, and will also be squeezed out by various forces in the original market.

At this time, using the power of capital to expand the brand and enhance the brand value has become the first choice strategy for some enterprises, and Unilever is one of the most successful models.

Unilever's 12 brand in China is almost the best of its kind. Lux and Xia Shilian are at the forefront in shampoo and bath products; Chinese toothpaste is an old brand in the toothpaste market; Lipton black tea market share exceeds 80%; The position of "He Luxue" in the ice cream market is irreplaceable.

Most of Unilever's more than 400 global brands are acquired and spread all over the world. The success of Unilever's multinational brand operation lies in its ability to acquire local brands and upgrade them to international brands.

Ponzi was originally an American brand, which was acquired by Unilever, developed into a well-known brand of skin care products and spread to China; Xia Shilian was originally a British brand promoted in Southeast Asia, and Unilever also introduced it to China. The acquisition of Zhonghua, the first toothpaste brand in China, is a continuation of its brand strategy.

Unilever's brand strategy not only makes it get rich returns on a global scale, but also establishes a stronger emotional bond between local brands and consumers. As the development liaison director of Unilever (China) Co., Ltd. once said, "The purpose of Unilever's acquisition of a local brand is by no means to weaken its influence on its own brand and put it on hold or even eventually eliminate it, but to promote it to the overall strategy of Unilever's global brand operation and become an international brand."

Second, the "strong" joint strategy.

The promotion of brand value can also rapidly expand its brand image by joining hands with other brands, thus creating more added value.

For well-known international enterprises, they are often very good at using their strong brand appeal and market advantages in their respective industries and joining hands with leaders of other industries to carry out "strong" brands in order to expand in greater market depth and breadth and strengthen their brand image. Because this cooperation is often based on the win-win situation of two or more brands, it is easier to get positive feedback from partners and the market.

Starbucks, as a well-known brand of "coffee fast food industry", joins hands with United Airlines. On the one hand, it has expanded new business areas and made products cover a broader market space; On the other hand, it is precisely because of this superior cooperation that their brand value in their respective fields has been really improved. Facts have proved that many original loyal customers have become customers of United Airlines because of its new measures, and now many Starbucks "supporters" have also met and begun to fall in love with this "coffee star" on United Airlines. Another classic case comes from Intel Corporation. The "WINTEL" empire created by him and Microsoft has brought them amazing market value, rich profits and the establishment of the most powerful first-class brand.

Strong cooperation between large enterprises can help them quickly establish brand value in new markets. Similarly, small and medium-sized enterprises can also form alliances with enterprises with strong brand awareness in this way, relying on the advantages of others to enhance their brand value, and the most important thing is to find the right cooperation points and give play to their comparative advantages. In the early years, Lenovo and Stone relied on their own comparative advantages, cooperated with internationally renowned large enterprises, and grew up on the shoulders of giants, which led to their own brands today.

Third, brand extension strategy.

Many brand strategies of China enterprises draw lessons from some specific practices of Japanese and other Asian enterprises. The most obvious similarity is that China enterprises, like Japanese enterprises, mostly adopt unified brand strategy, covering all products with one brand, and rarely adopt brand extension strategy.

Brand extension strategy includes sub-brand strategy and multi-brand strategy. Sub-brand strategy is a brand strategy between a brand with multiple products and a brand with one product. It uses consumers' trust and loyalty to existing successful brands to promote the sales of sub-brand products.

From the practice of Haier, the sub-brand strategy really complements the unified brand strategy effectively. It calls the 0.5 kg small washing machine "instant washing", the TV set "Pathfinder" and the beauty humidifier "Little Monroe", which consumers can see at a glance. For the same product, sub-brands can also be used to distinguish specifications, tastes, grades and functions, such as "Little Prince", "Handsome Prince" and "Little Prince" used in Haier refrigerators. This also avoids the mindset that "Haier is a refrigerator", "Changhong is a color TV" and "Little Swan is a washing machine". Choosing sub-brand strategy can effectively guide consumers to break through the original consumption pattern, accept and recognize new products, and quickly transfer their trust and loyalty to the main brand to new products.

When it comes to multi-brand strategy, it's hard not to mention the name "Procter & Gamble". Regarding brands, P&G's principle is: If there is still room in a certain market, other brands should be P&G's products. For example, in the American market, P&G has 8 brands of washing powder, 6 brands of soap, 4 brands of shampoo and 3 brands of toothpaste. Every brand has different needs, and P&G has won users with different needs and quality of life by taking advantage of the differences in functions and personalities between brands. Moreover, each brand has its own development space, and there will be no market overlap, so it has a very high market share in various industries.

The reason why P&G can carry out its multi-brand strategy so smoothly is that, in addition to accurate market positioning and grasping demand differences, the most important thing is to always seek and strengthen the golden thread that can "string" various brands together, a brand core spirit that is above all kinds of products, and a consistent consumer experience that brings users. As its advertising slogan "World-class products beautify your life" conveys, "P&G" has become a symbol of pursuing high-quality life.

Fourth, the intensive penetration of channels.

To expand and promote a brand, first of all, let your target users and potential users often see your brand, because the brand value ultimately comes down to users' buying behavior. In order for users to complete their buying behavior, we must first reduce the cost of implementing this behavior, including psychological cost and behavioral cost. That is to say, it is easier for users to think of you, get familiar with you, buy your products, and then buy you more easily when they think of you. To achieve this effect, we need strong channel support, especially to "intensively cultivate" sales terminals and increase the penetration rate of regional markets.

Coca-Cola Company is the best example. It has established sales channels all over the world and developed regional distributors all over the world. It is not only sold in vending machines, nozzle drinking fountains, supermarkets and convenience stores, but also shows its "cool" essence in cinemas, video stores and even taxis.

Nike has also opened up some new sales channels, including a large supermarket with remarkable effect-"Nike City", which has effectively strengthened the company's brand image. Nike also aggressively attacked the global market. Since 1994, its brand has been extended to more than 100 countries in Asia-Pacific, Europe, Latin America and North America.

Similarly, for enterprises in a relatively weak position, if effective channel infiltration is adopted, good results can be achieved. "Very Coke" is to quickly lay channels and effectively control this market segment at a lower price through the relatively low awareness rate of "Coca Cola" in rural areas.

Fifth, take a ride.

Hitchhiking is to be good at upgrading the brand by taking advantage of the situation, let others do the most difficult pioneering things in the early stage, and rely on personal advantages to pick up the achievements that others have already made. The strategy of "hitchhiking" is more suitable for the characteristics of small and medium-sized enterprises that are fast, flexible and elastic. In the face of new opportunities, we can cut in quickly, without thinking too much about whether the new market will follow its previous style or not, and whether it will have a negative impact on other products.

Coca-Cola hitched a ride with Coca-Cola to a certain extent, relying on the huge consumer groups and market base that Coca-Cola has developed, coupled with the appeal of "the whole people" and targeted channel penetration, it quickly established its own brand. On the other hand, as long as its market share and living space are controlled within a certain limit, Coca-Cola will not fully suppress it, because the cost of capital to suppress Coca-Cola nationwide is far greater than the loss of market share. It is also beneficial for Coca-Cola to let Wahaha, a relatively standardized enterprise, control this market share.

Sixth, challenge industry leaders.

Challenging industry leaders is like playing chess with a master, which can improve social status. On the one hand, it is easy to be recognized as a master; On the other hand, you can learn a lot of valuable things in the process of dealing with the master, and it is easier to become a real master.

As an enterprise that started with wireless communication, TCL was synonymous with telephone a few years ago. Although it has been involved in the field of home appliances such as color TV and air conditioner in recent years, the recognition of home computers has been low, far less than Lenovo, Founder, Great Wall and other brands. As a computer brand second only to Lenovo in China, its rapid growth in the PC industry is a process of constantly challenging Lenovo. Its fierce performance with Lenovo is in the summer of 200 1. 4. The confrontation of 4.LCD quickly made TCL a computer brand in the PC industry.

On the other hand, challenging industry leaders is also a very dangerous thing. It is important to find the breakthrough point of the challenge, so that it is possible to achieve a win-win situation, otherwise it may face extinction.

[Editor] Brand value innovation

[Editor] What is brand value innovation?

The so-called brand value innovation is to satisfy customers' pursuit of higher value of the original products or services with new brand value on the basis of continuous improvement of products and services within a certain cost range. Brand value innovation can be to change brand value attributes, or to endow brands with brand new value attributes (such as developing and extending the depth, breadth and relevance of existing brands and expanding new areas of brands), or to realize brand value management and maintenance through brand new business strategies, so as to achieve the purpose of brand value creation and value appreciation.

The reason why enterprises should carry out brand value innovation is because enterprises can improve customers' perceived value through brand value innovation, and on the one hand, they can reduce customers' sensitivity to cost. Through brand value innovation, it helps customers to sort out and process relevant brand value information and simplify customer purchase procedures; Can enhance customer confidence, improve loyalty and reduce purchase risk; It can increase the value of the image of products, improve the psychological and emotional perception value of customers, and reduce the cost sensitivity of customers. On the other hand, brand value innovation can create value for enterprises. Through brand value innovation, we can strengthen the extensive and lasting trust relationship between customers and related products, and increase the frequency and types of repeated purchases; It can promote the value overflow of brand reputation and the expansion of brand assets; It can establish effective barriers for competitors to enter.

[Editor] Brand Value Innovation Strategy

First, improve the differentiated value of brands.

The key of brand value lies in the competitive advantage of differentiated value. First, the differences in working performance, durability, reliability and convenience brought by product quality, performance specifications, packaging, design and style. Quality difference is the core of brand value difference, and technology is the final determinant of all quality. Enterprise brand value innovation must be technology-oriented. Advanced technology can make enterprises develop and launch new products earlier, and the "first-Mover advantage" formed by advanced technology can make enterprises form a short-term monopoly. For example, Intel's continuous technological innovation in computer memory has created new types of memory from generation to generation, and also created outstanding brand value differences. The second is the brand added value brought by the service. First of all, we must ensure the rapidity of service time. Customers have many service problems when they consume products. Enterprises should be sensitive to customers and act quickly, especially for complaints. Respond to customers quickly and solve customer problems in time is an important guarantee to maintain customer brand loyalty; Secondly, we must ensure the accuracy of technology. The accuracy of technology means that the measures, strategies and methods adopted by enterprises in providing support services must be appropriate, reliable and applicable, and can completely solve problems; Third, we must ensure the comprehensiveness of services. When providing services, enterprises must provide full-process and all-round services as promised; Finally, we must ensure that the service personnel have enough affinity. In the process of service, the intangible service becomes tangible, and the attitude and enthusiasm of employees will form different people's values, which is of great significance to customer's value perception and satisfaction. The third is to shape brand association and personality. Brand association can affect customers' purchasing psychology, attitude and motivation, so brands can enhance customers' perceived value. Brand association is the result of brand connotation shaping and personality strengthening. To create the value difference advantage of brand association, we must first shape the brand connotation and strengthen the brand personality. For example, Haier is associated with excellent service; Wal-Mart, Lenovo is low-priced and so on.

Second, the innovation of brand positioning

Brand positioning, brand positioning determines brand characteristics and brand development momentum. Common positioning are: (1) brand differentiation positioning: brand performance correlation. For example, those product features associated with brands can bring benefits to customers, thus promoting consumption; Lenovo is related to the brand's reliability, durability and service ability. Lenovo includes the effectiveness and efficiency of services; Lenovo consists of design and style; Lenovo related to price and value helps to distinguish your brand from competitors. Brand image association. For example, who uses it under what circumstances; Cultural characteristics of enterprises; Business content; The characteristics of products and even the spirit of enterprises. Insight into consumers' inner associations. For example, the diversification and personalization of consumer demand. (2) Competitive positioning of the brand: What kind of frame of reference is the brand in; How to deal with the brand characteristics of competitors? For differentiated positioning, differentiated features should be meaningful, practical and based on certain interests of customers, and should be proactive and easy to defend but difficult to attack. Finally, in the process of product development in the future, the following brand structure has been formed: brand DNA；; Brand proposition; Brand personality; Product range; Advantages of each product. After brand positioning, you must also have a clear and rich brand logo to create or maintain things and ideas related to the brand, such as Gome, blue and red logo; Ikea furniture, blue and yellow conspicuous signs; McDonald's, red and yellow signs and so on. Different from brand image, brand recognition is enlightening, suggesting what brand image needs to be added or changed. Brand recognition reflects what the enterprise organization wants the brand to represent. All people involved in brand work, including the brand team and its collaborators, should not only understand the content of brand identification, but also care about its development. If one thing can't be done, the brand may not play its potential, and it will be in danger of indiscriminate products and price competition. There are too many blind brands in the market, who like to advocate price advantage, are keen on discounts or flock to TV channels in disorder. These are typical symptoms of lack of honesty. Because brand recognition is used to promote the creation of all brands, its content must have depth, breadth and relevance, not just an advertising slogan or a positioning explanation. At the same time, brand reference system, similarities and differences, brand identification, value scheme, brand positioning, implementation, consistency and brand system (brand coordinates, such as SAIC-GM putting Buick, Cadillac, GL8 and other high-end brands in Shanghai for production; Production of low-end cars such as Sail in Shandong; Put Chevron in Guangxi for production), brand leverage (brand extension and brand cooperation after identification and confirmation), brand asset tracking, brand responsibility system, brand investment (brand sustainable development) and so on.

Third, grasp the history, present and future.

To build a strong brand and innovate brand value, we must first examine the brand history and the current truth. Discover major milestones or turning points in the brand history, such as the establishment and expansion of the company (brand), the redesign of the main packaging or identification system, communication activities, the first transformation action, major negative public relations or quality crisis, etc. Take a "snapshot" of today's brand: Who are the core consumers of the brand? What are the associations of brands? What can a brand really provide to consumers? Whether the brand conforms to the trend, etc. ; Compared with the main competitors, the brand's competitive strength and key differentiation factors with competitors are marked on the "competition map".

The second is to seize the opportunity of brand development. Analyze the industry trend of brand development in the future (from the surface description and psychological description of users, access, service mode, use expansion and so on). ), such as mobile phones, from male-dominated to gender-neutral, from high-end devices to convenient devices, from voice to text messages and pictures. In the future growth opportunities, it is not only to expand the user base and tap new users, but also to improve functions, increase the number and frequency of use and expand product uses. Through the study of consumer behavior and insight into market trends and fashion, we can find and grasp the opportunities for brand development.

Finally, the future of the brand. Effectively combine target group, brand proposition, personality and insight to find a differentiated brand platform that can stimulate creativity, so as to find brand DNA. Brand DNA is the shorthand of brand essence, which is concise, unique, lasting and attractive. It's a single point, not an advertisement, not a slogan. Such as Lux (soap)-beautiful dream, Nike-fate is with me, Disney-magical imagination and so on.

[Editor] The Relationship between Brand Culture and Brand Value

First, find the direction of brand development in the bridge between brand culture and brand value.

The direction of brand development is highlighted in three aspects: brand positioning, brand characterization and brand stereotypes. Defining the direction of brand development is to better highlight the exchange relationship between brand culture and brand value.

The establishment of this relationship can be fully reflected in the process of interpreting brand culture and brand value. From the brand diagnosis of Guangzhou Digital Lehua, a color TV brand, there is such a contradiction, that is, how to make a brand find a clear development direction in a declining and cruel competitive environment? In the process of deconstructing the culture and value of Lehua brand, we found that the corresponding channels of CRT-based product structure are in rural areas and secondary and tertiary markets, and the price-performance ratio that can be amplified is the advantage of Lehua brand. Popularizing the idea of a better life in the market brought by the innovation of TV digital technology is the three main characteristics of the brand. This ordinary and exquisite color TV life and the public's enjoyment of fashionable digital TV directly affect the development direction of the brand, that is, how to make the brand with the most life and the most popular technology based on the secondary and tertiary markets.

Clear brand development direction, guide brands to build communication means at a higher level, so as to further enhance brand value and brand cultural connotation.

Second, realizing the connotation transmission of brand culture is the premise of realizing image communication and brand value.

That is, fully tap the brand elements, find the interest exchange point between brand culture and brand value, so as to realize the formal unity of brand internal genes and external interests.

Under the strategy of successfully entering the international market, TCL immediately began to cooperate with the global R&D institution TBC for technology development, and kept up with the international trend in product innovation, all of which showed the characteristics of tolerance and atmosphere in brand culture. In the process of its connotation transformation, the brand value with international style is obviously supported more comprehensively in image.

This has also been a good attempt in Guangzhou real estate industry. With harmonious life and natural comfort, Guangzhou Poly Real Estate has built a harmonious image core in the image derived from its real estate Lily Garden, and "Let the beauty of harmony bloom" has become the core interest. Through this harmonious shaping, such as planting lilies in a large area, harmonious real estate summit forum, etc., it not only maintains the continuity and unity of brand output, but also applies it to the promotion of brand core concepts.

Third, brand culture promotes and extends brand value.

The international value of TCL image comes from the support of the brand's own culture, and the meaning of Lily Garden itself has the characteristics of natural harmony. Promoting brand value through various brand culture creation is also a transmission form to successfully realize the brand development direction.

In this process from culture to image to value transmission and exchange, shaping a specific brand culture will also affect the transformation of brand value and even the direction of brand development. Mengniu teamed up with Super Girl in 2005, which is actually a classic case of Mengniu successfully leveraging this specific event to successfully enhance its brand image. Mengniu's successful transformation from brand culture to Mengniu's brand value benefited from the young, neutral and slightly rebellious civilian draft event brought by Super Girl, which made the culture merge in the direction of youth and fashion, and expanded and cultivated the brand in the positioning market of the younger generation. Corresponding to the consumer value, through the innovation of yogurt products, the brand is passed on to the consumer value with Baby Zhang's slogan "Sweet and sour is me".

Looking back at the brand, everything is to find the value of integration in the consumer market. This kind of consumption value must also be the core content advocated by brand value, and this process is also applicable in the process of brand culture and value transmission; Moreover, in the process of transmitting brand culture and value, the factor to be considered is the excavation of the characteristics of mainstream consumer psychology, fashion and positioning groups.

If the essence of culture is thought, then there must also be the concepts of time period and regionality. Then what kind of brand idea is suitable for the market, the brand transmission and the content service delivered by the brand at this stage must be considered by examining the overall situation of the market, the competitive environment and all aspects of brand development itself, so as to form a real value transmission.

[Editor] Brand Value Assessment

[Editor] The role of brand value evaluation

Brand value evaluation can not only quantify the value of specific brands, but also intuitively understand the situation of famous brand enterprises, reveal the market position and changes of each brand in some aspects, and reveal the connotation and law of brand value. And it has created a good public opinion foundation and social foundation for enterprises to realize the reorganization and expansion of enterprises with brands as capital. Consumers strengthen their loyalty to certain brands through the influence of brand value. Investors decide their investment direction through the reference of brand value.

[Editor] Classification of brand value evaluation

The first category is the value evaluation related to shareholders' rights and interests, that is, the value quantification required by the change of enterprise's own property rights or the expansion of the right to use. This evaluation must be carried out item by item according to the evaluation purpose and the evaluation standards and methods promulgated by the state. It is specially aimed at the entrusted enterprises and provides reference for the reserve price of enterprise transactions.

The second category is the evaluation of the nature of research published in and serving the society. That is, value quantification for brand value comparison. This evaluation must be a unified group evaluation with the same standards, methods and benchmark dates. It does not serve a specific enterprise, but provides consulting reference for all walks of life.

The former emphasizes transaction, while the latter emphasizes comparability. No matter how many trademarks the former evaluates, there is no comparability. The former evaluation is limited by the purpose of the transaction or evaluation, the scale of the transaction to be completed, and the acceptance of both parties to the transaction, while the comparative evaluation is not affected by any external subjective factors, and the intrinsic value is estimated completely according to the objective indicators adopted under the system standards.

[Edit] brand value evaluation program

(1) Establish a team of senior managers and analysts who combine marketing and finance. The commander-in-chief may entrust it to a more neutral third party or to professionals outside the company.

(2) Re-examine the methods used by financial and marketing departments to evaluate brand value, and it is best to find out the relevant literature in the past and refer to international evaluation standards.

(3) We must adopt the evaluation method oriented by financial and consumer surveys, and only after acquiring knowledge can we successfully carry out the evaluation work and complete the task.

(4) At the same time, financial evaluation and necessary market research and investigation must be conducted, and the results obtained from both must be reasonable and compatible.

(5) Confirm the feasible brand evaluation methods and find out the differences of each method, so as to try out the most reasonable and uncontroversial brand value.

(6) Set marketing objectives according to the agreed asset value, so that your marketing strategy can be measured.

[Editor] The most valuable brand evaluation method

The evaluation formula of the world's most valuable brand can be simply expressed (details ignored) as follows:

(Operating profit-capital ×5%)× strength multiple

In its formula, operating profit is an important base.

It is very important to determine the numerical value and strength multiple. This multiple is generally 6 to 20, which is estimated by experts based on some data or impressions. The same profit 1 100 million dollars, if the intensity multiple is 6, the brand value is 6 billion dollars, if the intensity multiple is 2, the brand value is 20 billion dollars.

As for the reduction of 5%, it is believed that enterprises without brands can also get 5% capital gains. Usually, a dollar of income comes from 60 cents of capital. In this way, about 3% of the sales profit comes from the average social profit, so it is necessary to subtract 3% of the sales profit or 5% of the total capital. In other words, even if a general product has no brand, it will get 3% sales profit or 5% capital gain.

The evaluation formula of the most valuable brand in China can be simply expressed as: P = M+S+D s+d.

Among them: P is the comprehensive value of the brand; M is the market share of the brand; S is the value-added profitability of the brand; D is the development potential of the brand.