Intangible asset, including but not limited to, names, terms, signs, symbols, logos, and designs, or a combination of these, intended to identify goods, services or entities, or a combination of these, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefit/values.
Four principles of Brand Relevance according to Prophet:
1. Customer Obssessed – Brands we can’t imagine living without
2. Ruthlessly Pragmatic – Brands we depend on
3. Distinctive Inspired – Brands that inspire us
4. Pervasively Innovative – Brands that consistently innovate
Non-monetary, point-in-time calculation of relevant dimensions and indicators of a brand, which illustrates the perceived competitive strength, compared to its competitors amongst stakeholders.
Our FAVI Brand Strength measure the brand strength in many aspects such as: consumer behavior, employee experience, brand investment, etc.
Brand value is the economic value of the brand in transferable monetary units.
IVS 210 divides intangible assets into 5 categories:
Certain intangible assets, such as brands, may represent a combination of the above categories.
The Rule of Thumb suggests that the licensee pay a royalty rate equivalent to 25% of expected profits for the product that incorporates the IP at issue.
There are three common valuation approaches which are:
At FAVI, we commonly used Royalty Relief Method to measure brand value. This is aslo one of the most commonly used method for brand valuation.