Brands are Assets
Brands are the most powerful assets any Enterprise can own.
Most assets depreciate in value, and are purposefully depreciated by accountants for the extortion of tax benefits, at the cost of the Enterprise Value (EV). Nett Asset Value (NAV) plays a big role in the valuation of the Enterprise - the greater the NAV, the greater the chance of an increased EV. It therefore makes logical sense that in order to grow the NAV, the Management Team should invest in assets that contribute towards the EV, such as property and also its own Brand.
Brand Value (BV) always appreciate, making it one of the most powerful assets any Enterprise can own.
Besides the many changes that can be made that has an impact on the revenue and profitability of the Brand there are many other levers that can be manoeuvred that has a direct impact on the Value of the Brand.
As this development journey unfolds and the Brand Value grows, Brand Equity is developed, year on year.
Brand owners who take much care of their Brands are thus able to see a return on the growth of their Brand, and realise optimised Enterprise performance, long-term sustainability and increased profit.
Prior to 2005 it was not permitted to list BV or the Brand as an asset on the balance sheet, however, on 1 January 2005 the IFRS released its updated international accounting standards, permitting Enterprises to list Brands and / or BV as an asset on their balance sheet. This now calls for the urgent obligation all Brand owners have towards the Brand Equity Development (BED) of their Brands, and to nurture it as assets.
BrandTracker Values, Measures, Monitors and track the development journey of the BED of Brands through its initial assessment, valuation and dashboard. Management Teams can utilise their BrandTracker dashboard to ensure that they stay on course and meet the KPI's identified for the BED of the Brand. It's powerful analytics also provide the Management Team with the critical information needed for accurate decision making and critical-thinking processes.
Increasing Brand Equity
As with any asset, the greater the input made toward developing the asset, the higher the probability of increased equity growth.
Brands that develop stable, efficient Marketing Intelligence Systems (MIS) and build reliable, high-performance Marketing Infrastructure (MI) create an “Equity Engine” that drive Brand Value (BV)
Once a full Brand Audit is done, a BED project plan can be formalised and utilised by the Management Team, to grow the equity of their Brand, either internally or outsource such development.
The Brand Value
In order to grow Brand Equity (BE), it is imperative for Management Teams to know the Brand Value (BV) of their Brands.
Brand owners such as Coca-Cola spend millions of Dollars each year to track its BV, which grew from $98Bn BV in 2022 to $106Bn BV in 2023, increasing the Brand Equity by almost 9%.
Brand owners who know the value of their Brands are not only able to track its equity growth, but also are able to measure the strength of their Brands in the market.