Brand Valuation

valoración marcaEach brand has its own price, which depends, in general, on the following five factors:

Importance of the brand: If primary or secondary, whether in use or intended to be used in the future

The market: The size of the market (volume and geographical scope), the number of services that are offered and the cost of each of them also has a significant impact on the value of a brand.

Validity of trademarks: Trademarks that have just been applied for and enter into force, of course, are of lower value.

Brand Type: A suggestive mark of the products or services to which it is intended or low distinctive will be considered weaker and therefore of less value.

Relevance of the brand: Each brand is important on its own in a particulararea and will generally be part of an overall Industrial Property (IP) strategy aimed at maximizing its potential benefits or to allow other secondary brands to maximize their own profits.

In the practical realization of the valuation, always according to the ISO standard, up to three different approaches can be followed:

The method based on costs: calculates the value of the brand on the basis of the cost invested in brand building.

The market-based method: Bases its analysis on what the consumer would pay for a similar brand with similar attributes in the market.

The income-based method: This approach involves an assessment of the economic benefits expected to be received by the brand for the remainder of its estimated useful life. It is considered the most appropriate method because the value of the brand lies in its ability to generate greater profits in the future.