Brand Strength is the efficacy of a brand’s performance on intangible measures, relative to its competitors.
In order to determine the strength of a brand, we look at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding rating up to AAA+ in a format similar to a credit rating.
A brand’s BSI score is taken into consideration when calculating the overall brand value.
Brand value represents the net present value of the estimated future cash flows attributable to a brand. It develops and grows as a result of the strengthening of the relationship between the brand and the consumer.
For more information check out our methodology here.