China 2015: RESOURCES | Methodology
All brand valuation methodologies are similar - up to a point.
All methodologies use financial research and sophisticated mathematical formulas to calculate current and future earnings that can be attributed directly to a brand rather than to the corporation. This exercise produces an important but incomplete picture.
What’s missing? The picture of the brand at this point lacks input from the people whose opinions are most important - the consumer. This is where the BrandZTM methodology and the methodologies of our competitors part company.
HOW DOES THE COMPETITION DETERMINE THE CONSUMER VIEW?
Interbrand derives the consumer point of view from panels of experts who contribute their opinions. The Brand Finance methodology employs a complicated accounting method called Royalty Relief Valuation.
WHY IS THE BRANDZ METHODOLOGY SUPERIOR?
BrandZTM goes much further. Once we have the important, but incomplete, financial picture of the brand, we communicate with consumers - constantly. Our on-going, in-depth quantitative research includes two million consumers and more than 10,000 brands in over 30 countries.
WHAT’S THE BRANDZ BENEFIT?
The BrandZTM methodology produces important benefits for two broad audiences.
- Members of the financial community -including analysts, shareholders, investors and CEOs - depend on BrandZTM for the most reliable and accurate brand value information available.
- Brand owners turn to BrandZTM to more deeply understand the causal links between brand strength, sales and profits and to translate those insights into strategies for building brand equity.