Ignoring Brand And Its Valuation Is Equivalent to Closing The Business Sooner Or Later
Whether at any time a thought crossed your mind stating of what is the value of your BRAND (here “Brand” means “Intellectual Property Rights which includes Trademark, Copyright, Patent, Design, etc”). Assume that you are in a conference with big business community people and suddenly show the interest in your business and ask you what is the value of your brand in market at present and just think that you are totally unaware of or not in a position to speak. This is the time you feel ignored or infact to say, losing an opportunity to take your business at further levels. If you have taken care of your Brands, then for sure you know the WORTH of the Brands and if you know the Worth of your Brands, then Why not valuing the BRANDS. I am sure that most of the MSME / Traditional Business / Family Business don’t have even heard of Valuing their Brands and infact I had faced with this with my good clients who are on TOP in business but when asked whether there is any mention of value of your Brand in Balance sheet or elsewhere, the answer is NO and infact NEVER HEARD OFF. You shall remember that Intellectual Property Rights is a Property first and to go further it is famously called as Intangible Assets and how big an Intangible Assets can be is very much there in market to see. At present, World saw that how JIO made its Brand stronger and in COVID 19 where all were trying to see where the business has gone, JIO (Mukesh Ambani Group) made money like anything and there is no exaggeration to say that kin 58 days, JIO (Mukesh Ambani Group) has paid all debt if around 20 Billion dollar and this is not a small thing but a businessmen with future perspective and hence this is where You need to talk to your Lawyer regularly and understand the updates and infact sharing the intention of your growth with your Lawyer is always make you think to grow further. It is true that Brand Valuation can be difficult to measure, since a brand is an intangible asset but knowing its worth is useful not only for your business strategy but also in shaping your marketing strategy and having a powerful brand in today’s competitive market is crucial to stand out.
Key Branding Statistics You Need to Know
• 94% of consumers say they’re likely to be loyal to a brand that offers complete transparency (Label Insight Transparency ROI Study)
• 64% of consumers say that shared values are the main reason that they have a trusted relationship with a brand (Harvard Business Review)
• 42% of consumers say they distrust brands (Reach Solutions via Zimmer Radio & Marketing Group)
• 65% of people that feel an emotional connection to a brand say it’s because “they care about people like me” (Customer Thermometer)
• 64% of consumers make a purchase after watching a branded social video. (Forbes)
• 64% of consumers say that shared values create a trusted relationship with a brand. (Forbes)
Why Brand Valuation Matters?
According to P. Kotler and K. Keller in their book Marketing Management, Brand Valuation is “an estimate of the total financial value of the Brand”
There is no doubt that Brands are the powerful drivers of choice and influence the decisions of the consumers, employees, business decision makers, and investors. For ex., customer pay for brand like Apple even if their price is sky high only because of its powerful branding. You can identify that all the Strong Brands in the market have created loyalty this helps in attracting the investors, beat competitors and reduce business risk. Brand valuation is a way to quantify all of these benefits.
According to Forbes, the world’s five most valuable brands recognised are the following:
• Apple: $182.8 billion
• Google: $132.1 billion
• Microsoft: $104.9 billion
• Facebook: $94.8 billion
• Amazon: $70.9 billion
How Do We Measure a Brand’s Value?
A brand’s value is measured according to three core components:
• The financial performance of the branded products or services
• The role the brand plays in purchase decisions,
• The brand’s competitive strength
Why a Strong Brand is important for Business?
1. Improves recognition
2. Acts as Trust Building
3. Adding to Financial Books at higher rate
4. It does inspires the employees
5. No doubt, generates new customers
Why Brand Valuation Matters for Business?
1. Investment.
2. Accountability.
3. Growth Opportunities.
4. Licensing Opportunities.
Many of the MSME / Traditional Business / Family Owners think that there is nothing in Branding and its Valuation and if so, then the best example is how WAMAN HARI PETE, Kalayn Jewellers have hit hard the already saturated retail jewellery shops and today the brand value of WAMAN HARI PETE, Kalayn Jewellers is more than may combine retail jewellery store. Delay in taking the steps in creating the brand and valuing is no loss to anyone but to yourself. Let me share one example of one Halwai at Kurla since good decades but in name of Branding, it is ZERO and hence they are existing but have no value in market. Just give a thought if they could have taken the help of Lawyer in IPR and took their branding and valuation, today they could have earned in huge without any investment as it is done in immoveable Properties.
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