Brand Is An Intangible Asset With Tangible Worth
Funny, but true: your company's greatest assets aren't inventory, real estate, equipment or even cash. The assets that hold the most worth are intangible. They are your employees and your brand.

In fact, on average, determinants of company worth are comprised of 69 percent trademark, perceptions and brand and 31 percent cash, receivables, real estate and investments. An Interbrand analysis of the top global companies published in BusinessWeek demonstrates the economic worth of a strong brand. Comparing book value to intangible brand value, a snapshot of some of the world's leading brands defines their brand's percentage of corporate worth: Coca-Cola, 64 percent; BMW, 61 percent; McDonald's 71 percent; Disney, 46 percent; Kodak, 66 percent.

It's An Asset You Need to Manage
At its most powerful, a good brand is an income-producing asset and one that should be adeptly managed and measured over time. Are you thinking about your brands in quantifiable terms? We believe it should be managed as an asset and that it should drive every strategic and investment decision.

After all, it translates directly to your company's worth, perhaps at two-to-one over your tangible assets.  Internally, a strong brand allows for premium pricing, protection against price wars, greater new product success, better leverage with channel partners, better recruitment advantage, stronger employee loyalty and heightened internal focus and brand execution. A great brand can earn loyal customers who are more likely to discount your competitors in the purchase process, request your brand by name, recommend your brand, accept new products or services, refuse substitutes and pay a price premium.

The Full Value of Brand is Still Evolving
Recently, Sears, in an innovative financial action that could have far-reaching implications to corporate America, decided to put a book value on three of their leading brands by securitizing their Kenmore, Craftsman and DieHard brands. To the tune of $1.8 billion, it is believed to be the largest securitization of intellectual property in history.

The market, and the business community, still does not fully comprehend the ramifications of this action. Nor do we know how it will play out in the future, as other companys follow suit and start to also assign a market value to their intangible asset.

brandsavants
Your Chief Strategy Officer®

5000 North Harbor Dr.
Suite 215
San Diego, CA 92106
Latitude/Longitude:
32.727°/-117.227°
619.296.6662
FAX 619.225.7870