Brand Index - Definition

Quantifying the brand's impact

For the purposes of global valuation studies (Example Brand Surveys) Brand Finance has created a simplified Brand Index methodology, which draws on publicly available data to score each brand in each product and service area.

The Brand Index is expressed on a scale of 0 to 100. It quantifies the strength of the brand (a bank's in this example) relative to its main competitors, with reference to key business and brand attributes.

Each competitor is scored out of 100 on each chosen attribute. The attributes are weighted and aggregated into an index for each brand. The exact weighting varies by product and service area, as the importance of each attribute fluctuates according to the specific drivers of demand.

Within this study, the Brand Index used both quantitative and qualitative data:

I. Input measures:

  • Quality of Brand Management
  • Brand Presence

II. Brand Equity:

  • Familiarity
  • Functional Performance
  • Emotional Connection
  • Brand Preference

III. Output measures:

  • Revenue Growth
  • Market Share
  • Profitability
  • Consensus Analyst Ratings

The quantitative data has been taken from Bloomberg, annual reports and Investor Relations materials. The qualitative data was compiled by Brand Finance via secondary research.

In a more detailed project we would rely on internally available market research information in addition to the sources mentioned above

The Brand Index score is used to pinpoint the exact rate within the predetermined royalty range.

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