Living Your Brand is One Thing...Valuing it is Another

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Guest Writer, Jack Perlinski from DAIS gives us an insight into valuing your brand.

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Do you know the value of your brand?

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Underpinning every brand strategy lie the management and control systems that deliver your brand on a day-to-day basis. This includes the consistent delivery of your brand in every aspect of your daily operations - everything you write, say and do. From the message you convey in your marketing collateral, website, proposals and daily communications, to the way your entire team answers the phone and interacts with your customers...everything should be a positive reflection of your brand.


It’s not an easy ask and many businesses fail to understand that branding is a complex, demanding and all-encompassing strategic business tool. Branding is not a product – it is a process requiring continual and committed energy. The businesses that have learnt to master the art of brand performance, and those who have taken the time to invest in their brand process strategically, are a force to be reckoned with...they lead the pack and reap substantial rewards.

Let’s talk real brands

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The best known, most trusted and admired brands include some of the most valuable brands, in dollar terms, in the world. These businesses will tell you that their brand is their most valuable asset, and they have the valuations to prove it.

In a recent report by Interbrand (voted the third most influential industry benchmark by business leaders), Coca Cola’s brand was measured at $67,000 million, making it the global leader at the time. Google’s brand value was reported at $12,376 million and eBay an impressive $6,755 million. Closer to home, National Australia Bank’s group of brands (including NAB, MLC, Bank of New Zealand & the Clydesdale Bank in the UK) were, according to Brand Finance, worth a combined $6.4 billion, making it the most valuable brand portfolio owned by an Australian company.

It certainly seems easier for the big guys, but many of you will also recall the figure Zupps attracted for its sale last year. One of Queensland’s largest family-owned business, the Zupps Group – known for its use of the distinctive elephant as its icon - was sold to Automotive Holdings Group for $117 million, $80 million of which was attributed to goodwill. Not bad for a man who started with such humble beginnings, from a small garage in Ipswich¹.

Calculating brand value

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Gone are the days where brands were viewed as non-measurable, decorative 'fluff'. Brands are serious business and although it’s different for everyone, what we are all recognising in today’s new business economy is that brands have a real strategic value. A well-assessed, regularly measured brand is a powerful way of gauging how your business is being perceived in the market from year to year. What we need to develop however are new strategies for catching what has been an elusive shadow, that is, the valuation of what your brand is worth, by measuring the performance of your brand.

There are specific formulas for calculating your brand’s value and a few schools of thought regarding the valuation process, but they will generally be based on the value of trademarks and trademark licenses, plus associated goodwill, an analysis of future earnings and brand equity performance. For more consumer-orientated brands, an assessment will also be made on the brand’s value as a proportion of enterprise value. The most powerful brands are those that are valued at between 25% and 60% of their market capitalisation.

Why is it important?

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A brand’s dollar value indicates how important that brand’s name is to earnings and the sort of ‘pull’ it has in the market. A valuable brand will not only help attract potential partners and investors, but will guarantee that buyers will be prepared to pay a premium to be associated with your brand. But let’s not forget the internal benefits. A valuable brand will also help you attract and retain high-calibre employees, board members and advisors, furthermore, it will motivate a host of other people to join forces with you and help you with your cause. Once you establish a team that is emotionally and intrinsically attached to your brand, it will develop an energy all of its own.

What is your brand worth?

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Do you know what your brand is worth? How do you think it would change the way you felt, if you knew the answer? Once you see the value of your brand represented as a figure on your balance sheet, it’s no longer just a perception of value, it’s tangible...and motivating everyone to work together to sustain the brand becomes a considerably easier sell. At the end of the day, it’s about a solid and unwavering belief that what your business does is worthwhile and that every effort you make towards promoting your brand is a valuable, meaningful activity, with a direct correlation to your financial viability and the legacy you are working so hard to build.

It is this absolute belief and passion to both understand and value your brand that underpins what everyone in your business collectively does, or needs to do, to achieve and realise the value of a truly successful, memorable and valuable brand.

by Jack Perlinski | DAIS

Reflection by Brightlabs

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Jack highlights some very important points. People often underestimate the power of brands and the importance of your brand to your business. We have worked on a number of website development projects where clients have had only a vague conception of what their branding really means to them. Your website should be used as a tool to emphasise and reiterate your brand message so before starting any website development have think about your brand a little more. Don’t forget that in this digital age, news about your brand will travel fast and brand value can grow (or diminish) as quickly. A proper brand strategy has never been more important because you no longer need to consider how your brand will be portrayed in traditional methods of communication but also through the digital variants such as blogs, tweets, Facebook posts and the numerous consumer feedback sites. If all this sounds a bit worrying, don’t worry. If you need any help both Jack and Brightlabs will be happy to assist you.

¹ Source: Courier Mail, 22 March 2007