1. Chapter 18 – Leveraging Brand to Generate Value From Ideas to Assets Siddharth Shah

2. What is a brand? There are a ton of services out there that I can use to make a video call, but I always use Skype. Why? Because it’s a name that I and other people know and trust. That’s a brand.

3. How much value can a brand really generate? In 1998, Coca-Cola’s market capitalization was nearly $200b. About 92% of that was tied to their intangible assets, which help make up brand. Coca-Cola is the most valuable brand in the world. In 2001, the 100 th most valuable brand, Benetton, had $1b in brand value.

4. What are some benefits of good branding? More efficient marketing Higher licensing and royalty fees Better M&A Internal best practices (leading to quicker better development of new products) Trademark protection

5. How is brand valuated? Cost-based approach (cost to re-create) –Brands are unique and can’t just be replaced Market-based approach (comparable market transactions, company transactions, or stock market quotations) –Companies often have more than one brand –Brand sales are not typically comparable

6. How is brand valuated? Income-based approach –Royalty-relief : company licenses brand from self –DCFs : discount rate that accounts for risks

7. How is brand valuated? Interbrand approach –Financial analysis : use P&L statements to determine the economic value added (EVA) –Market analysis : Role of Branding analysis (weighted factors that contribute to the brand) –Brand analysis : risk assessment of brand earnings in the future

8. How should brand value be managed? Circular relationship –Value –Role –Opportunity –Capacity –Strategy –Expression –Mobilization –Management