Abstract

Brand league tables are becoming very popular as a reflection of the performance of an organisation. Stakeholders also view the ranking of brands as an important yardstick when forming a brand image. This article reviews the available approaches to brand valuation. The research followed a case study methodology. The case site that was used for this study was The South African Gold Coin Exchange. The main objective of this study was to calculate the value of the corporate brand of one company using different methods. The aim was to show that the value of the brand is highly dependent on the method used. In total twelve senior managers and directors were interviewed. It then calculates the value of the South African Gold Coin Exchange Brand using a number of different models. There is a different result under each approach. It has been established that different models are more appropriate than others depending on the manager's valuation objectives. This research is a single case study and therefore future research should have an increased sample size and be a cross industry study. Managers are often confronted with the problem of deciding which valuation method to use as there are many alternative approaches. We provide guidance for managers who want to perform a brand valuation of their organisation.

Highlights

  • Ranking of brands and the publication of league tables has become a popular yardstick for consumers, investors and other stakeholders when forming a brand image about the 'best' brands

  • The main objective of this study was to calculate the value of the corporate brand of one company using different methods

  • Seven approaches were applied to the SA Gold Coin Exchange, each providing a different brand equity valuation result and thereby confirming that different brand equity valuation approaches will provide different brand equity valuation results

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Summary

Introduction

Ranking of brands and the publication of league tables has become a popular yardstick for consumers, investors and other stakeholders when forming a brand image about the 'best' brands. Many organisations have seen their brands grow in value to become a substantial asset, with brand valuation being used to measure the value of the brand in question and as a performance metric (Raggio & Leone, 2009). The problem with these league tables is that they often produce different scores and valuations, leading to confusion and scepticism amongst different groups of stakeholders. The aim was to show that the value of the brand is highly dependent on the method used Another purpose of this study was to investigate how to select a brand valuation approach to meet specific brand valuation objectives. These are used to calculate the brand value of The South African Gold Coin Exchange. (http://www.sagoldcoin.co.za/)

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