The rationale for building a strong brand lies in the fact that in every corporate valuation the key component of the value of a company is based on its “blue sky value”…its “brand value”.
Greater Brand Value = Greater Corporate Market Value.
Normally you will find that the average market valuation for a brand from various Dow Jones Stocks is based on:
70% is based on Brand & Intangible Asset value
30% is based on the Tangible Asset value / Book Value
The goal of any strong brand consulting company is to leverage all the goodwill and intangible assets to enhance the corporate tangible value (“Blue Sky Value”)
Examples of Public Companies who have built tremendous “Brand Value” / “Blue Sky Value” for their Shareholders….
Chart was updated from Aaker’s Book on “Measuring Brand Value”. In his book it is also referred to as an “Intangible Value” . (No attempt is being made to keep these figures accurate within this reference.)
Brand Value Can Be Measured
Hurt The Brand, Hurt the Value.
This is what happens when companies focus on building that Brand connection, building brand value, and bringing consumers closer to the brand…It is the foundation of a financially successful company.