Brand
Brand is a tool for increasing profitability and recognition of the company. It is for this purpose that the concept of brand was introduced. When creating a brand, special attention should be paid to the relationship between business strategy and strategy brand, because it is the basis of its activities company and its success
Тhere are two different approaches. One of them is oriented on the buyer, the other is based on money
streams. A brand that does not createno additional threads, has low cost, regardless of its image and public awareness of it.
Branders can get excited about recognition and forget about brand equity—production, service, people, innovation, pricing and advertising, each of which is part of the brand building and associations that linger long in consumers’ memories.
Value of Brand
In the 1980s, the understanding of the brand changed.
The strength of a company like Heineken lies not only in its knowledge of brewing secrets; but that people all over the world want drink Heineken. The same can be said about IBM, Apple, McDonald’s, Audi or Dior.
In July 1990, the man who acquired the companyAdidas, said: “After Coca-Cola and Marlboro, Adidas is
the most famous brand in the world.”
Nestle bought Rowntree for nearly three times its stock market value and 20 times its earnings.
However, what served as the rationale for сuch prices were invisible and not recorded on the companies’ balance sheets. The purpose of these incredible transactions was intangible and was not recorded anywhere: the transactions were aimed at acquiring brands.
Brand Equity
Official Marketing Magazine
Science defines brand equity as follows: “This is a set of associations and behavior of some consumers brand, members of distribution channels and head office corporations that the brand causes that allows you to receive large sales volumes or greater profits thanwould have been possible without use of the brand name” (Leuthesser, 1988).
A brand exists only when it creates income.And it follows from this that a brand that does not provide an opportunity build a profitable business, does not have of the slightest value. In short, it’s time
connect the brand with economic formulas. Brand is a concept supported economic calculations of profit. without financial result, can we talk about capital brand? Let’s analyze it.
brand is a tool for business.
Brand Assets | Brand Strength | Brand Value
Brand value is nothing more than a long-term perspectiveto the future. The objectives of financial brand assessment arein measuring its value. In order tohave value, the brand must create additionalcost (Economic Value Added – EVA),
and part of it must be attributed to the brand itself, and not to other intangible assets ( such as patents, know-how or databases). And this is independs a lot on what the business model isdesigned for business.
Jean-Noel Kapferer
