What is the value of your image? This is a trillion dollar question for many frontline companies given the trillions of dollars spent in the last two decades on branding, advertising and public relations worldwide.
Many companies in the Fortune 500, S&P 500, FTSE 100, CAC 40 Futures and even our own NSE 30 index have cumulatively committed trillions of dollars to advance the image of their brands to their consumers/customers/clients.
Should we then conclude that each of these companies can simply tally what they have spent and amortise to get a monetary value of their brand’s worth? Of course, this might work for accountants, the board of directors, potential or brand valuers but in the end, this does not mean anything to an average consumers/customers/clients.
This is because, in the end, the brand is worth what the consumers/customers/clients think it is. In a practical sense, when an average consumer walks through a shopping shelf, searches online for services and keywords to determine where to make the final purchase decision, they do not take into cognisance whatever value and billions we have accorded to our brands.
So whatever you do in the board room, bear in mind the consumer only accord value to brands based on how your brand fits into their life. What problem are you really solving? How indispensable are you? How reliable have you been in the past years? What is the confidence level they have in you?
These are very abstract factors that require deep introspection than mathematical models to determine where your brand stands
Credit: SBI Media