Brand Evaluation Balanced Scorecard and KPI

Strong brand is the most valuable intangible asset of the company. Even if brands are not listed on corporate balance sheets, which play a key role in determining the success of the company in the long term. Successful brands allow companies to effectively manage premium prices, reducing the relative power of trade, increase the effectiveness of communication, attract management talent, and reduce the vulnerability of recession. Scorecards or KPI based on the drivers of brand value, measures targeted and useful for the optimal management of the brand.

According to research conducted by Interbrand, a leading brand consulting firm, strong brands represent over a third of shareholder value. The share prices of companies with well-known brands have yields significantly higher rate and lower risk than the stock market as a whole.

Brand has a clearly defined financial value conveyed in the price tag associated with a particular brand. This financial value represents the economic value of the brand owner. The brand equity is a fusion of the capitalized value of consumer confidence in the brand and its future potential volume of sales (commercial exploitation of the mark). Consumer awareness of the brand is a strong motivation for the customer to consider buying the brand name product. Furthermore, the strength of brand equity promotion and encouragement of consumer loyalty customers to purchase these products consistently and repeatedly over a long period of time. It should be noted that the brand value is created only if current flows positive gain can be generated as a result of customer purchases.

Brand equity is an intangible asset of the company. Therefore, to measure its financial value, the management company should identify key performance indicators (KPI) of the branded business, and then determine the degree to which each KPI is directly influenced by the brand. The data for the analysis comes from market research, seminars and interviews of clients (potential) customers.

The measures of brand can be classified into three categories: the perception of brand value, brand performance, financial and Brand. Each category consists of several KPIs, which contribute to the total value of the brand.

For example, the perception of the brand category consists of the following measures, or metrics: consumer awareness (brand recognition measures and differentiation), the strength of the brand (brand stability measures, compared to the market leader, the profitability , geographic spread, and protection), credibility (Measures the extent to which the brand is reliable and responsible for clients, and effectiveness (reliability) of brand advertising), relevance (Measure the modernity of the brand, the ability emotions, as well as its commitment to non-ethical or socially responsible consumer driven values), and consideration (Measures the influence of brand familiarity on consumer choice real).

The financial value of the brand consists of four main parameters: ability to generate income (measure the impact of familiarity on brand sales, including potential future sales volume of brand), return on investment (ROI measures the marketing of the brand) , the transaction value (Identify the product / serivce value of the transaction and measure the current value and potential of the brand adds a transaction), and sustainable growth rate (measuring the impact of the brand to maximum growth rate of the trademark owner may sustain without increasing financial leverage).

As a result of the evaluation of the brand using the Balanced Scorecard and KPIs, the company can determine the current value of brand equity in relation to its objectives in the short and long term. The bottom line includes the percentages of actual and expected performance of the brand, and identifies both areas of strength and weakness of the brand management of the company .......