1. business and industrial
2. advertising and marketing
3. brand management

Introduction to Brand Finance
League Table Reports 2015.
Introduction to Brand Finance 1.
League Table Reports
Brand Finance’s league tables
The world’s largest database of brand values
Why we publish the league tables:
•
Every year Brand Finance values over 3,500 public
brands – across all sectors and geographies.
•
The results are tabulated and published in the media
across the world in order to raise awareness of the
importance of brands as valuable business assets,
which must be managed.
•
Brand Finance is uniquely positioned. We take a
financially-driven approach to managing brands and
help companies to evaluate the impact that brandbased decisions and investments have on the bottom
line. We ultimately help brands to build business value.
•
Our League Table Reports provide a ‘baseline’ value
and are a cost-effective way to gaining a better
understanding of your position against competitors.
Introduction to Brand Finance 3.
What is a League Table Report
Content relevant to a wide range of internal brand stakeholders
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5
Module
Description
Benefits
Brand Valuation
Summary
Overview of the brand valuation including executive
summary, explanation of changes in brand value
and historic and peer group comparisons.
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Internal understanding of brand
Brand value tracking
Competitor benchmarking
Historical brand value
Brand Strength
Index (BSI)
A breakdown of how the brand performed on
various metrics of brand strength, benchmarked
against competitor brands in a balanced scorecard
framework.
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Brand strength tracking
Brand strength analysis
Management KPI’s
Competitor benchmarking
Royalty Rates
Analysis of competitor royalty rates, industry royalty
rate ranges and margin analysis used to determine
brand specific royalty rate.
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Transfer pricing
Licensing/ franchising negotiation
International licensing
Competitor benchmarking
Cost of Capital
A breakdown of the cost of capital calculation,
including risk free rates, brand debt risk premiums
and the cost of equity through CAPM.
• Independent view of cost of
capital for internal valuations and
project appraisal exercises
Trademark Audit
Analysis of the current level of protection for the
brands word marks and trademark iconography
highlighting areas where the marks are in need of
protection.
• Highlight unprotected marks
• Spot potential infringement
• Trademark registration strategy
Introduction to Brand Finance 4.
Pricing
The standard cost of a League Table Report is €10,000. We advise purchasing
the complete report (5 modules) to gain a holistic view of your brand,
however modules can also be purchased individually, as shown below:
 Complete Brand Valuation Report (5 modules)
€10,000
€1,000 saving
Basic and Additional Modules:
1. Brand Valuation Summary
€5,000
2. Brand Strength Index (incl. Visual Identity Audit)
€1,500
3. Royalty Rates (incl. Comparable Transactions)
€1,500
4. Cost of Capital Module
€1,500
5. Trademark Audit module (provided by third party)
€1,500
Introduction to Brand Finance 5.
League Table Reports
Our reports provide a complete breakdown of the assumptions, data sources
and calculations used to arrive at your brand’s value including expert
recommendations for growing brand value to drive business performance
Insight
Provide insight as to how the brand is performing vs. key competitors on
underlying measures and drivers of brand value and brand strength
Strategy
Understand where brand value is being generated by region and channel in
order to identity areas of opportunity that warrant further investigation
Benchmarking
Track year-on-year changes to brand value and set long term objectives
against which high level brand performance can be benchmarked
Education
Provide a platform of understanding which the company can employ to
educate fellow colleagues on the importance of the brand
Communication
Many leading global brands include the results of our studies in their financial
reporting and annual results to shareholders
Understanding
Understand and appreciate the value of your brand as an asset of the
business
Introduction to Brand Finance 6.
Standard League Table Reports
Sample outputs
Introduction to Brand Finance 7.
Extended League Table Reports
We also provide bespoke reports that are tailored to answer client-specific
questions, using our proprietary league table sector models and analysis
Typical questions answered in an Extended League Table Report:
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Where does my brand sit relative to other global, sector or regional competitor brands?
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How can I become the leading brand in my category or region?
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What is the breakdown in value across the brand portfolio and how it can it be better managed?
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What impact will a potential rebrand have on the value of my brand (e.g. during M&As)?
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What role does the corporate brand play in the business?
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What are the opportunities / ‘white spaces’ for differentiating my brand?
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Did certain key marketing activities or changes in the sector have an impact on brand value?
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How can I become the leading brand in my category or region?
Additional insight:
We may also be able to incorporate company-internal financial and brand-related data (where appropriate) to
give a more segmented view of where value is being generated within the business and to enhance the
accuracy and insightfulness of our analysis. Contact us to speak to us about your unique brand challenges.
Due to the bespoke nature of the extended reports, costs vary anywhere between €15,000-€30,000
Introduction to Brand Finance 8.
Extended League Table Reports
Sample outputs
Introduction to Brand Finance 9.
Brand Strength Index (BSI) Partners
A range of sources to determine relative brand strength
Partner
About
Contribution
BSI score
VI management company helping brands to
implement, monitor and control the visual elements
of their identity
High level visual identity and management
performance assessment benchmarked against
industry best practice
Visual identity score
Leading international patent and trademark
consultancy
Reviewed over 300 brands across Brand Finance’s
Global, Banking and Telecoms league tables
Trademark protection score
(input)
Global strategic consultancy specialising in brand
and customer insights and analytics
Access to BrandAsset® Valuator database – the
largest study of consumer and brand behaviour
covering 50,000 brands in 50 countries
Functional, emotional,
conduct and loyalty scores
(brand equity)
Leading media business who analyse and track the
connections brands have with human well-being
Access to Meaningful Brands index covering 700
brands, over 134,000 consumers and 23 countries
Emotional, conduct and
loyalty scores (brand equity)
World’s largest CSR (corporate social responsibility)
and sustainability ratings company
Access to CSR ratings and information database
covering 8,500 brands
CSR score (outputs)
The leading provider of global company web metrics
and analytics
Access to website rankings, unique visitor numbers
and pageviews covering thousands of brands
Brand performance
Bloomberg is a major global provider of 24-hour
financial news and information
Access to consolidated financials, forecast financials,
and key performance metrics which make up a key
part of our BSI
Brand performance and
Stakeholder opinion
ktMINE is an interactive intellectual property
database that provides direct access to royalty rates,
actual license agreements and detailed agreement
summaries.
Database consists of more than 15,000 agreements.
Royalty rate analysis
The Banker is a monthly international financial affairs
publication owned by The Financial Times Ltd.
The Banker magazine source a range of data on the
world’s leading banks which is used to benchmark
banking brands in the Banking 500
Sector specific KPI’s (brand
performance)
Note: In case where brands in our league tables are not covered by any of the featured BSI partners,
Brand Finance has relied on other public data sources to corroborate the brand strength score
Introduction to Brand Finance 10.
Methodology
What we are measuring
Our approach to valuing brands and branded businesses
• Businesses are made up of many different assets that can be valued, one of which is the brand
• A branded business refers to all businesses operating under the same brand
• Our role is to explain the impact that brands have on the branded businesses they form part of
• We care about increasing branded business value, not just brand value
• When looking at brand value, including the brands in our league tables, we first look at the value of the
branded business as a whole
Definitions:
•
Branded Business – the value of a single branded
business operating under the subject brand / trademark
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Brand Contribution – the total economic benefit
derived by a business from its brand
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Brand Value – the proportion of brand contribution
which can be legally transferred via sale or licensing,
i.e. the trademark. This is the value used in Brand
Finance’s brand league tables
Branded Business
Brand
Contribution
Brand
Value
Introduction to Brand Finance 12.
Brand Valuation methodology
‘Royalty Relief’ approach – technically robust and credible
Brand Strength
Index (BSI)
%
$
$
Brand
‘Royalty Rate’
Brand
revenues
Brand
value
Strong brand
Brand
Investment
Brand
Equity
X % X
=
Forecast revenues
Brand
Performance
$
Weak brand
Brand strength expressed
as a BSI score out of 100
BSI score applied to an
appropriate sector royalty
rate range
Royalty rate applied to
forecast revenues to
derive brand revenues
Post-tax brand revenues are
discounted to a net present
value (NPV) which equals
the brand value
Introduction to Brand Finance 13.
1. Brand Strength Analysis
Measure
Attribute*
Brand Strength Index
Inputs
(25%)
Consumers
(35%)
Brand
Equity
(50%)
Staff (5%)
Finance (5%)
External
(5%)
Outputs
(25%)
Score
Importance
Product/CX investment
XX
5.0%
Distribution
XX
5.0%
Online Presence
XX
5.0%
Visual Identity Consistency
XX
5.0%
Marketing & Ad Spend
XX
5.0%
Familiarity
XX
5.0%
Consideration
XX
7.5%
Preference
XX
7.5%
Satisfaction
XX
7.5%
Recommendation/NPS
XX
7.5%
Employee Score
XX
5.0%
Credit Rating
XX
2.5%
Analyst Recommendation
XX
2.5%
Sentiment Index
XX
1.25%
Community
XX
1.25%
Governance
XX
1.25%
Environment
XX
1.25%
Acquisition/Net Additions
XX
5.0%
Retention/Loyalty
XX
5.0%
Price Premium
XX
5.0%
Revenue
XX
2.5%
Spend per customer
XX
2.5%
Revenue Growth
XX
2.5%
Market Share
XX
2.5%
XX / 100
100%
Brand Strength Score:
Brand Strength Index
(‘BSI’) based on a wide
range of publicly
available data which
aims to capture the
views of a variety of
stakeholders, both
internal and external,
to determine the
overall strength of the
brand relative to its
competitors
*Illustrative BSI – attributes and weightings to be discussed and agreed
Introduction to Brand Finance 14.
2. Determine sector royalty rate range
%
Royalty rate ranges vary from sector to sector. Ranges based on
commercial reality (existing licensing agreements in the sector)
10.0%
8.0%
5.0%
4.0%
3.0%
2.0%
2.0%
Illustrative
0.5%
Financial Services
Telecoms
0.5%
1.5%
0.0%
Airlines
1.0%
Retail
Technology
Beverages
Clothing
1.0%
1.0%
0.0%
0.0%
Oil & Gas
3.0%
3.0%
Utilities
3.0%
Fragrances
Sector royalty rate range
15.0%
Introduction to Brand Finance 15.
3. Set brand royalty rate
%
BSI score applied to sector royalty rate range to determine
appropriate brand-specific royalty rate
2. Score applied to
sector royalty rate range
(e.g. 1-5%)
1. Brand strength
expressed as a
score out of 100
5%
75
4%
3. Set appropriate
royalty rate
1%
Illustrative
Introduction to Brand Finance 16.
4. Calculate brand value
$
Apply royalty rate to forecast revenues to derive brand value
Historic revenues
Brand value
2018
2017
2016
2015
2014
2013
2012
2011
X
2010
4%
Forecast revenues
2009
Royalty rate
=
$
Forecast revenues
Post-tax revenues discounted to a net present value (NPV)
Illustrative
Introduction to Brand Finance 17.
About Brand Finance
About Brand Finance
We are the world’s leading independent
brand valuation and strategy consultancy
Independence.
Brand Finance is impartial and independent. We manage brands, not
create them – so we have no vested interest in the outcome of a project.
Technical credibility.
Our brand assessments are ISO, IVSC and IASB compliant and are widely
accepted by regulatory bodies and tax authorities around the world.
Transparency.
There are no black boxes. We work openly, collaboratively and flexibly
with clients and always reveal the details of our modelling and analysis.
Expertise.
We possess a unique combination of marketing, research, management
and financial expertise, as well as ex-client side senior management.
Introduction to Brand Finance 19.
Our offices
We are headquartered in London and are present in over 20 countries
Introduction to Brand Finance 20.
What we do – Overview
We help companies to measure, manage, maximise and monitor
their brands to drive business performance.
Brand & Business Valuation
Brand Analytics
Valuations may be conducted for
technical purposes and to set a
baseline against which potential
strategic brand scenarios can be
evaluated.
Analytical services help to uncover
drivers of demand and insights.
Identifying the factors which drive
consumer behaviour allow an
understanding of how brands create
bottom-line impact.
Brand &
Business Value
Brand Tracking & Monitoring
Improve reporting and brand
performance management by
integrating market research,
investment, market and financial
metrics into a single insightful
scorecard model to track performance
and inform strategic decisions.
(Brand ROI)
Brand Strategy
Strategic marketing services enable
brands to be leveraged to grow
businesses. Scenario modelling will
identify the best opportunities,
ensuring resources are allocated to
those activities which have the most
impact on brand and business value.
Introduction to Brand Finance 21.
What we do – Services
We specialise in evaluating the financial impact (ROI)
of brand-based decisions and strategies.
1. Establish ‘Base-case’
2. Optimise Brand Equity
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Brand & Business Valuation
Brand Due Diligence
Brand Identity Audit
Trademark Audit
Customer Experience Audit
Sponsorship Evaluation
4. Evaluate Ongoing Performance
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Brand Tracking
Dynamic Brand Scorecards
Management KPIs and Target-setting
Competitor Benchmarking
League Table Reports
Brand &
Business Value
(Brand ROI)
Market Research Management
Brand Strength Analysis
Brand Equity Drivers Analysis
Brand/Price Trade-off Analysis
Return on Marketing Investment
Budget Setting & Allocation
3. Extend Brand Equity
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Scenario Modelling & Planning
Brand Architecture Evaluation
Brand Portfolio Evaluation
Brand Positioning Evaluation
Brand Migration Evaluation
Brand Extension Assessment
Brand Franchising and Licensing
BrandCo Strategy / Royalty Rates
Brand Governance
Introduction to Brand Finance 22.
Broader Service Offering
By audience
Marketing
Finance
Tax
Legal
We help marketers to
connect their brands to
business performance by
evaluating the financial
impact (ROI) of brand-based
decisions and strategies
We provide financiers and
auditors with an independent
assessment on all forms of
brand and intangible asset
valuations
We help brand owners and
fiscal authorities to
understand the implications
of different tax, transfer
pricing and brand ownership
arrangements
We help clients to enforce
and exploit their intellectual
property rights by providing
independent expert advice
in- and outside of the
courtroom
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Brand and business valuation
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Purchase Price Allocations
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Transfer Pricing
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Damages Claims
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Brand driver analysis
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Asset impairment reviews
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International Licensing
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Expert Witness Valuation
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Brand strength analysis
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Brand Valuation
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Patent/Technology Valuation
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Patent/Technology Valuation
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Market Research Design
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Patent Valuation
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Database Valuation
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Database Valuation
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ROMI
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IP Valuation
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Website Valuation
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Website Valuation
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Brand architecture evaluation
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Insolvency Reviews
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Copyright Valuation
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Copyright Valuation
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Brand portfolio management
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Bid Defence
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Customer Valuation
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Insolvency IP Valuations
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Brand migration evaluation
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Brand Due Diligence
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BrandCos
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Customer Valuation
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Brand extension assessment
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Securitisation
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Brand scorecards
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Information Memoranda
Trademark Registration
Strategy
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KPIs and target-setting
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Brand franchising/licensing
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Budget Allocation
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Competitor benchmarking
Corporate Recovery and
Reorganisation Analysis
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Finance Raising
Introduction to Brand Finance 23.
Notable clients
Technical experience
We work with some of the best brands from all
over the world. Here is a small selection of the
brands we have worked with recently.
Our work is frequently peer-reviewed by
independent audit practices and our approach has
been accepted by regulatory bodies worldwide.
Introduction to Brand Finance 24.
Contact us
Brand Finance
E. [email protected]
T. +44 20 7389 9400
Brand Exchange
3 Birchin Lane
London, EC3V 9BW
United Kingdom
Brand Finance plc is the leading brand valuation and strategy firm,
helping companies to manage their brands for improved business results.
www.brandfinance.com
Introduction to Brand Finance 25.