An article to better understand how to value a brand? What are the valuation methods? How to protect a brand ? What is the value of the most famous brands ?
What is a brand?
A trademark is a generic term that designates any distinctive sign that identifies the products or services of a company and distinguishes them from those of competitors. It can be a name, a word, a logo, a slogan, a design, etc. The purpose of the trademark is to make the company and its products or services known, but also to create a relationship of trust with consumers and to build loyalty. In law, the trademark is protected by intellectual property law and can be registered with a competent authority, such as the INPI in France.
What value for iconic brands?
It is difficult to give precise estimated values for iconic brands, as the value of a brand can vary depending on many factors such as brand awareness, brand image, profitability, etc. However, some iconic brands are considered particularly valuable. For example, according to the BrandZ ranking of the world's most valuable brands in 2021, the most valuable brands were:
- Google: $177 billion
- Apple: $355 billion
- Amazon: $200 billion
- Microsoft: $238 billion
- Facebook: $71 billion
Which valuation method for a brand?
Here is a possible methodology to enhance brand awareness:
- Establish a consumer panel representative of the brand's target audience.
- Use satisfaction surveys and market research to gather brand awareness data from the panel.
- Use awareness indicators such as brand recognition rate, brand recall rate and brand loyalty rate to measure brand awareness.
- Use econometric models to estimate the value of brand awareness based on its awareness indicators and expected future benefits.
- Apply a weighting to the value of brand awareness based on the expected life of the brand and the stability of its expected future benefits.
It is important to note that this methodology is only a suggestion and that there are many other approaches to brand awareness. Do not hesitate to contact an expert in brand awareness at XVAL to get an accurate evaluation of your brand's value:
Learn more / contact us for an evaluation:
What is an econometric model to calculate the value of a brand?
An econometric model is a mathematical model used to analyze and predict the relationships between different economic variables. In the context of calculating the value of a brand, an econometric model can be used to estimate the value of the brand based on different factors such as sales, profits, brand awareness, product or service quality, etc.
There are several types of econometric models that can be used to estimate the value of a brand, such as regression models, pricing models, profitability models, etc. These models are usually based on historical data and use statistical techniques to predict the value of the brand in the future.
The choice of econometric model depends on the nature of the business and the brand, as well as the data available. It is important to understand the limitations and assumptions of the different models and to use them appropriately so as not to distort the estimation of the brand value.
You would like to have more information from a XVAL consultant to get your brand enhanced:
Why value a brand in your company's balance sheet?
It is important to value a brand in a company's balance sheet because the brand represents an intangible asset that has a value for the company. It can be considered as "goodwill", i.e. the added value that a company possesses due to its notoriety, its reputation, the quality of its products or services, etc. The brand can be an important asset for the company, which can allow it to stand out from its competitors and build customer loyalty.
The same is true for a company's intangible assets, such as patents, licenses, trademarks, copyrights, etc., as they have an economic value that can be significant.
The valuation of these assets allows us to better understand the value of the company and to make informed decisions regarding its development, sale, fund raising, etc.
How to register a trademark with the INPI :
To register a trademark with theINPI (National Institute of Industrial Property) in France, you must follow these steps
- Check the availability of the trademark: before registering a trademark, it is important to check that it is not already used or registered by another company. You can perform a search on the INPI website or on the WIPO website (World Intellectual Property Organization).
- Prepare the necessary documents: to file a trademark, you must fill out an application form and provide a graphic representation of the trademark (logo, drawing, etc.). It is also recommended to provide a precise description of the subject matter of the trademark (goods or services concerned).
- Choose the class of goods and services: trademarks are classified by categories of goods and services, according to the decree of October 1, 2007. It is important to choose the class or classes that best correspond to the purpose of your trademark.
- File online: once you have prepared all the necessary documents, you can file your application online on the INPI website. Filing online is faster and more convenient than filing on paper.
- Pay the filing fees: the cost of filing a trademark depends on the class of goods and services chosen and the number of classes involved. There are also fees for the examination and publication of the trademark.
- Waiting for the INPI's decision: once your trademark application has been filed, the INPI examines your application and makes a decision as to whether or not to accept it. This can take several months. If your application is accepted, your trademark is registered and protected for 10 years, renewable indefinitely. If your application is refused, you can appeal the decision to the courts.
