Brand Valuation of the Russian Bank: Interbrand Model

Abstract

AbstractAt the moment, it is definitively believed that a brand of a product or service is one of the prerequisites for a company’s successful development, as well as for long-term operation in the market. Assessment of brand value is still one of the most relevant and controversial research subjects in marketing and finance. The choice of a particular model for brand assessment is based on goals and objectives (e.g. mergers and acquisitions, licensing), as well as the completeness of sources and inputs, and of course, the choice depends on reliability of results. The main problem with valuation is that brands are unique, so it is difficult to determine their market value. The basis for the investigation which was launched was the dramatically different results obtained by two independent agencies, Interbrand and Brand Finance, for PJSC “Sberbank” (a Russian bank) in 2013. In this paper, by analyzing the Interbrand brand equity valuation methodology, we have calculated the brand value for Sberbank in 2019–2020. The analysis is carried out by comparison of selected brand values (Amazon, Google, Apple, Microsoft, Sberbank) provided by Interbrand and Brand Finance. The findings of this study demonstrate the necessity for addressing different brand valuation models, taking into consideration country, industry specificity and overall demand as well as overall brand valuation goal. Results demonstrate an existence of drastic deviation of brand values and an existence of different dynamic.KeywordsBrand valuationThe Interbrand modelThe Brand Finance modelRussian banks