1. Brand Valuation Forum
Ten Principles
of monetary brand valuation

3. Ten Principles
of monetary brand valuation

4. BBDO Consulting GmbH B. R. Brand Rating GmbH Ernst & Young AG
Königsallee 92 Nymphenburger Str. 20b Mittlerer Pfad 15
40212 Düsseldorf 80335 München 0499 Stuttgart
Tel. +49 211 13 9-0 Tel. +49 89 523 02-02 Tel. +49 11 98 81-0
Fax +49 211 13 9-8 42 Fax +49 89 523 02-2 50 Fax +49 11 98 81-5 50
www.bbdo.de www.brand-rating.de www.de.ey.com
GfK Marktforschung GmbH Interbrand Zintzmeyer Lux AG Konzept Markt GmbH
Nordwestring 101 Kirchenweg 5 Rheingaustraße 88
90319 Nürnberg CH-8008 Zürich 5203 Wiesbaden
Tel. +49 911 3 95-0 Tel. +41 44 388 8 8 Tel. +49 11 90 1-0
Fax +49 911 3 95-22 09 Fax +41 44 388 90 Fax +49 11 90 1-59
www.gfk.com www.interbrand.ch www.konzept-und-markt.com
KPMG Deutsche Treuhand PricewaterhouseCoopers semion brand-broker Gmbh
Gesellschaft AG Elsenheimerstraße 33 Watteaustr. 12
Klingelhöferstraße 18 808 München 8149 München
1085 Berlin Tel. +49 89 5 90-50 Tel. +49 89 4 90 9 0
Tel. +49 30 20 8-0 Fax +49 89 5 90-59 99 Fax +49 89 91 22 29
www.kpmg.de www.pwc.com/de www.semion.de

5. Introduction

6. What is the purpose of some indication of value on the basis
the ten principles of brand of externally available data. Regrettably,
evaluation? here, too, major differences and countervailing
tendencies are visible. The valuation basis
Starting point is mostly less than transparent.
The monetary evaluation of brands
faces a dilemma: Fundamentally Standardisation of monetary brand
brand evaluation is considered to valuation
be extraordinarily important, however At present, a number of efforts are
its significance is neglected at present.
- under way to standardise the valuation
This dilemma has been illustrated by methods. For instance, the German
a number of studies. standards association, Deutsches Institut für
A striking starting point for the Normung, has elaborated a standard that it
present discussion of the monetary has submitted to an international ISO procedure.
evaluation of brands was provided Meanwhile, the institute of certified accountants
by the authors of these ten principl- in Germany, IDW, has published a standard on
es in the study that was initiated in the evaluation of intangible assets (IDW S 5, see
2004 by PricewaterhouseCoopers www.idw.de). Although compatible with each
and the trade journal absatzwirtsc- other, these standards focus on different valuation
haft: Die Tank AG: How nine occasions.
experts evaluate a fictitious brand.
The study made clear that the
different methods lead to a great
range in mon etary brand values.
Even if the divergence in valuation
may be explained partly by different
tax treatment, the perception arose
of a certain arbitrariness of the
values in the market.
A further source of uncertainty derives
from annually published brand values,
these being independent of the comp-
any concerned and intended to provide
6

7. Brand Valuation Forum
It is against this background that Hence it was not the aim to produce
the leading brand valuation experts any levelling among the valuation
involved in Die Tank AG met again methods in order to secure a standard.
and established the Brand Valuation Nor would this be desirable. Different
Forum (BVF). This is a workshop of occasions require individually adapted
the Gesellschaft zur Erforschung brand valuation approaches. For this
des Markenwesens (GEM) [– the reason, it is questionable whether a
association for the research of standardised method can ever do
brands –] and the Markenverband justice to all occasions.
[the brands association]. The aim Hence no attempt was made to
of the working group was to develop straitjacket the complexity of mone-
uniform principles on the basis of tary brand valuation into a single
the main valuation methods in the method; on the contrary, it was affir-
market in order to enable the med that different valuation methods
different methods on offer to be each have a right and proper place.
examined. None the less, consistency in
valuation is required in order to
ensure transparency and reproducibility.
The Brand Valuation Forum identified ten
principles which any serious valuation
method must measure up to. By means
of the ten principles, each interested party
will be able to make sense of a brand
valuation, i.e. what aspects have entered
into the valuation of its brand and what
might distin-guish its brand value from
others.
7

8. The members of the Brand
Valuation Forums and authors
of these ten principles are
(in alphabetic order):
BBDO Consulting GmbH Konzept Markt GmbH
Udo Klein-Bölting Dr. Ottmar Franzen
B.R. Brand Rating GmbH KPMG Deutsche Treuhand
Johannes Spannagl Gesellschaft AG
Dr. Marc Castedello
Ernst Young Wirtschaftsprüfungs-
gesellschaft AG PricewaterhouseCoopers Wirtschafts-
Dr. Matthias Schmusch prüfungsgesellschaft AG (PwC)
Dr. Jutta Menninger
GfK Marktforschung GmbH
Siegfried Högl semion brand broker GmbH
Jürgen Kaeuffer
Interbrand Zintzmeyer Lux AG
Nik Stucky
8

9. Ten Principles of
Monetary
Brand Valuation

10. The ten principles that any serious
brand valuation must measure up
to describe the most important steps
in an appraisal process that must be
found both in the valuation model
and in the expert report. These prin-
ciples include a summary valuation:
1. Consideration of the occasion 3. Consideration of brand
for the valuation and its protection
function Brands are intangible assets of a
Brand valuations are conducted for company. As such, they are volatile.
various purposes (e.g. value- The initial evidence that they actually
oriented brand introduction or exist is the brand protection. Any
finance-oriented communication). valuation must proceed on the basis
It must therefore be ensured that of secured brand rights.
the method applied is suitable for
the purpose. 4. Consideration of the brand
and target group relevance
2. Consideration of the kind Each valuation procedure should
of brand and its function be based on market data. Even
Brands occur in very different though brands are by definition unique,
guises, for example, as a product, any valuation must be based on
umbrella or company brand. There information involving comparisons.
should therefore first be an exact
definition of what sort of brand is 5. Consideration of the current
involved and its function in the brand status using representative
marketplace. This differentiation is data of the relevant target group
essential for any appropriate assess- The brand status is determined by
ment of the brand risks (see identifying the brand's success and
Principle 9 ). its strength.
10

11. 6. Consideration of the economic 8. Consideration of a net present
life of the brand value method and an appropriate
A monetary valuation that is based discount rate
on revenue surpluses concentrates
Valuation methods that focus on future
exclusively on the future brand-
cash flows are derived from financial
related receipts. Against the back-
theory, i.e. on valuations based on
ground of future and brand-specific
capital market theory. Most brand
income, each valuation will,
valuation methods are based on a net
therefore, provide the rationale for
present value calculation, i.e. expected
whatever is determined as the likely
future surpluses are discounted to the
useful life of the brand.
valuation date. In the net present value
7. Isolation of brand-specific calculation and therefore in the brand
cash flows valuation, there is also consideration
In principle, a number of valuation of the company risk, which is understood
methods may be conceived of for in terms of future capital costs.
brands. For some purposes, a
computation on the basis of licence
prices alone may be sufficient.
There is, however, considerable
consensus that the method to be
preferred will take into account the
income that a company obtains by
being able to distinguish itself from
its competitors in the marketplace
by virtue of its brand. Although
this brand-specific income may be
computed in very different ways, it
must lie at the heart of any valuation
method and be described exactly.
11

12. 9. Brand-specific risks 10. Reproducibility and
(market and competitive risks) transparency
Future income is, as is in the nature A valuation only has any significance if
of the future, subject to risk, i.e. it is based on the principles of validity,
uncertainty. The corporate risk reliability, objectivity and transparency.
may be different from the brand risk. Below you will find a more precise
Hence a consideration of the description of the ten principles of monetary
corporate risk – understood as brand valuation that should help you to
capital costs – may, depending on obtain more transparency. For each principle,
the circumstances, be insufficient. an explanation is provided of why it is important
Moreover, brand-specific risks for the judgement of the brand valuation
must be accounted for adequately. methods and what are the relevant aspects.
12

13. Preamble Basically, a brand fulfils three
economic functions:
The first step in evaluating a brand is 1. Seen as a communications
to examine the brand itself and platform, one of the fundamental
ponder the best approach to its tasks of the brand is to signal
valuation. Brand valuation is orientation and convey an unmista-
complex and requires an understan- keable message of the provenance
ding of the individuality of the brand of the product or service. This
concerned. The decisive factor in enables the brand to guarantee both
determining the valuation parame- recognition and communicative
ters is the question of what makes a continuity. In this respect, the brand
brand valuable in the first place. is a precondition for efficient
This involves looking at its economic investments in communication. The
functions. synergies are expressed in higher
operating efficiency and hence lower
The economic value of a brand lies investment, in relative terms.
in generating a higher demand for
the products and services it stands 2. By helping consumers differentia-
for and in securing this demand for te, brands shape perceptions and
the future. In order to record the use enable consumers to identify in
of the brand for the brand owner, the some way with the product or
brand value is defined as the net service, thereby influencing the
present value of future cash flows purchasing decision in favour of the
that can be attributed solely to the brand.
existence of the brand.
13

14. As technologies, markets, 3. The brand often constitutes the only
processes, know-how and indeed the recognisable constant in the relation-
specific range of offers become ever ship between the company and its
more similar, there is a shift in value customers. All experiences with the
creation to assets which successfully brand and the benefits represented by
set themselves apart over a long it are associated with the brand and,
period and cannot be copied. The as it were, stored in it. As an embodi-
specific property of the brand and its ment of higher valuation, the brand
differentiation enables the company creates customer loyalty and secures
to market its products or services at future demand. A strong brand
higher prices (price premium) and/or creates higher customer loyalty than a
to move into new business fields or weak one. The future cash flows of a
product generations and communi- weak and risk-prone brand must
cate these convincingly to their (new) therefore be weighted differently than
customers and other relevant the same future cash flows derived
groups. This function is reflected in from a strong and secure brand. A
higher future cash flows. brand that operates in a growth
market, enjoys a prominent position
there and high familiarity, is strong and
14

15. Principle 1
Consideration of the
occasion for the valuation
and its function
The valuation methods are in international commercial law or
principle suitable for use on the fiscal regulations must be obser-
following occasions: ved. In an individual case these
• Value-guided brand management may be more intricate than the
• Financial communication existing rules.
• Legal transactions with brands Transactions involving brands may
• Infringements of brand rights represent a valuation scenario if
• Fiscal occasions the value-in-use of the brand must
be determined. The value-in-use
Valuation for the purpose of brand defines the value that the brand
management is addressed to the represents for its owner or its legal
company control function and works successor at the time of valuation.
by determining the value drivers Brand protection infringements are
relevant for the brand value. The the occasion for brand valuations
valuation supports the control or the when there is a need to specify the
controlling of the brand management monetary damage caused by the
in connection with current business infringement. Similarly, the
activity. valuation serves to determine an
Financial occasions for the valuation appropriate license rate on awards
of the brands can exist in particular of licenses.
in accounting and other mandatory
or voluntary external reporting, for
transactions and in the identification
of factors influencing the company
control function. To the extent that
valuations are made for accounting
purposes, the valid national and
15

16. Fiscal triggers occur when the Principle 2
brand is transferred or with the Consideration of
licensing of brand rights to third the kind of brand
parties. The purpose of the and its function
monetary brand valuation is to
determine the commercial value of Brands occur in many guises, and this
a brand, to meet documentary variety must be reflected in the
obligations for transfer pricing, to framework of the monetary brand
avoid double taxation and, in valuation. Here it makes sense to
some circumstances, to optimise produce a taxonomy of brands:
tax rates at an international level.
Here consideration must be given with regard to geographic scope:
to the fact that fiscal laws may • Regional brand
deviate from the rules presented • National brand
here. • International brand
with regard to the kind of branded
products or services:
• Product brand
• Service brand
With regard to the brand architecture:
• Individual brand
• Brand family
• Umbrella brand
• Corporate brand
16

17. The brand serves to label the In appraising corporate brands,
product and generate value. consideration must be given to the
Beyond this, the brand also serves different stakeholder groups since the
the following functions: effects of corporate brands extend
beyond sales markets to encompass
• identification, understood as other markets of relevance to the
unique characterisation of the corporation such as procurement
provenance of the branded service markets, capital markets, labour
or product; markets and so on. All stakeholder
• a communicative function, groups must be identified and
understood as an activation of the accounted for. Where this is not
consumer's existing brand know- practicable, the stakeholder groups
ledge; considered in the brand valuation
• differentiation, understood as should at least be named.
distinguishing a product or service In the monetary valuation, the brand
from its competitors; functions should only be considered to
• a quality function, understood as a if the catalogue of criteria of the
guarantor of a homogenous service valuation method relates as far as
or product quality. possible to all functions.
A monetary valuation of a brand
must account for the kind of brand
and the brand function. In particular,
the nature of the brand must be
spelled out and an explanation given
by how a specific valuation method
does justice to the kind of brand
concerned. The region in which the
brand operates must be specified as
well as the level of the brand
architecture to which the monetary
brand value is to refer.
17

18. Principle 3 In analysing the legal status of the
Consideration of brand, the following criteria apply in
the legal protection determining and verifying whether
of the brand the brand owner has a sole right of
prohibition vis-à-vis third parties:
The first step in any brand valuation • Title
is verification that the brand is • Rights of third parties (licenses,
indeed protected by law (this is part pledges etc.)
of the risk analysis). • Catalogue of merchandise /
In valuations in which third parties services
are involved, it is recommended that • Usage situation
a detailed assessment of the brand • Defence situation
rights, if appropriate by a legal
expert, be made, and that this then The analysis of the scope of
be taken up in the overall computa- protection of the brand shows on the
tion, either increasing or decreasing basis of the examination of the
the value. The examination should following criteria how strong or weak
include the countries or regions and the legal position in the relevant
the register filings of relevance for countries is:
the valuation. • Type of brand (word, picture,
colour, sound, 3D)
• Brand environment / fungibility /
competition
18

19. Principle 4 for the existing scope of business as
well as for possible brand expansion
Consideration of the
provides the basis for the valuation of
brand and target group
a brand. Simultaneously, purchase
relevance
behaviour and attitude of the target
Each brand valuation must include group or target segments to the
an appraisal of the brand relevance brand must be differentiated accor-
in the specific market and industry ding to product, market and distributi-
environment. The brand relevance on factors. Against this background,
describes the influence of the brand a segmentation and separate
on the purchase decisions in the valuation of the brand relevance is
target group in a market. necessary by homogenous
The brand relevance must be target/customer groups.
considered both for the brand value
creation already realised and for
specifying the future value creation
contributions of the brand. Therefo-
re the valuation must encompass
expectations as to how the brand
relevance will develop in the market
or industry segment under exami-
nation.
The brand relevance can be
validated by behavioural analyses
(parameters of behaviour and
attitude) or through indicators of
value creation (e.g. share of the
brand value creation in the compa-
ny value creation).
The isolation and definition of the
target group or groups of a brand
19

20. Principle 5
If no suitable panel information is
Consideration of the
available, information on market
current brand status using
success may also be estimated by
representative data of the
referring to representative surveys of the
relevant target group
target group(s). This latter may apply
especially in the case of brands in the
In the course of a monetary service area, industrial goods or indeed
valuation, the brand status must be luxury goods.
appraised in terms of at least two Suitable instruments and methods must
components: be chosen to measure the success
• the success of the brand in its indicators mentioned. Attention is
market, and required here to ensure objectivity,
• the attractiveness of the brand for reliability and validity of the measure-
consumers (brand strength). ment in order that the brand valuation
can be considered valid. The latter
The market success of the brand is applies in particular to the recording of
modelled – ideally – using quantita- the brand strength, which is the second
tive market data reliably and validly crucial component in the valuation
– for example, with data from process.
consumer or trade panels. Impor-
tant indices for a brand's market Brand strength
success are: The success indicators described above
• the purchaser range and penetra- provide essential information for a
tion (purchaser range among the valuation of the brand status. However,
purchasers of the product group) they measure only the real behaviour of
of the brand the target groups in the past. These
• the re-purchase rate (brand success indicators do not permit any
loyalty) inferences on the individual causes and
• the market share (by volume and motives behind this behaviour.
value)
• the price and volume premium.
20

21. However, in any comprehensive measurement of the psychological
and future-oriented brand valuati- brand strength or attractiveness:
on, attention must none the less • Brand familiarity
be given to these behavioural • Brand sympathy
determinants. For they supple- • Identification with a brand /
ment and round off the analysis of a manufacturer
the present brand status. • Perceived brand quality or
satisfaction with the product
• Brand loyalty
• Readiness to recommend the brand
Finally, the emotional appreciation • Acceptance of the price
of a brand, i.e. its psychological
strength, must be secured for the As with an examination of a person's
future success of brands and state of health, it is only when a major
hence the maintenance of value. portion of these indicators are
Only brands that are attractive for analysed that any meaningful
the consumer continue to be measurement is arrived at of the
bought over the long term. And it brand strength.
is only with such brands that the The criteria mentioned share the
consumer will build up strong common feature that they are not
brand loyalty and also be prepa- subject to any direct and objective
red to purchase them at higher observation. For the analysis of these
prices than other products or components of the brand status, the
services. Hence an estimate of validity and reliability of the indicators
the future development of the applied must be secured, as with
brand value and of the specific brand success. There must not be
brand risk is not really meaningful any doubt about the substantial
without this second component of meaningfulness of the gauges used.
brand status. Measurement errors – i.e. effects
In the relevant literature, a number relating to the survey – must be
of indicators are proposed for the excluded.
21

22. Of special importance for the Principle 6
meaningful measurement of this
Consideration of
second component of the brand
the brand potential
status is the definition of the
and the economic life
relevant target group. This target
of the brand
group should include as representa-
tive a selection as possible of
purchasers of the category that the In order to forecast the future value
brand to be evaluated comes from. creation earnings of a brand, in each
In addition, the brand strength must brand evaluation an individual
also be determined for purchasers analysis must be undertaken of the
from other product categories in brand's potential. This is based, as a
which the brand is to be expanded rule, on the future potential earnings
in future. of a brand in the light of an adopted
business plan, this requiring validati-
on on the basis of behavioural
analyses with respect to the specific
brand.
In particular, for the purposes of a
value-oriented brand management,
brand value creation forecasts in
relevant fields may also be analysed.
In the valuation, estimates must be
made of the probable economic life
of the brand and hence the period of
capitalisation of the expected cash
flows. Here an explanation should
be given of the assumptions made in
estimating the useful life.
23

23. In evaluating product brands, a Principle 7
limited useful life might be derived
Consideration of
(for example) from product life
cycles and market analyses, arising
brand-specific cash flow
from technological change or
surpluses by empirical
changes in taste and behaviour. methods in the relevant
In the case of corporate or umbrella target group
brands, for instance, a limited useful
life may be derived on account of On the classical understanding, the
the competitive situation or the brand is a physical emblem of the
dominance of just a few strong provenance of the branded article.
brands, or indeed the absence of A brand has the purpose of lending
brand relevance in the market individuality to merchandise,
segment in question. services and companies and of
distinguishing them from their
competitors. This formal understan-
ding of the concept of a brand
emphasises the labelling function
that arises from the historical
development of merchandise and
corresponds to the understanding of
the brand as an industrial property
right. From today's point of view, a
brand serves not only to identify the
provenance of and to differentiate a
corporate product or service; it also
assists in the formation of prefe-
rences – assuming it succeeds in
building up a positive, relevant and
unmistakeable image in the eyes of
consumers.
23

24. From this behavioural perspective, communicating these convincingly
a brand is an unmistakable image of to old and new customers and
a product or service that is firmly indeed to other relevant groups.
anchored in the minds of its By helping consumers differentia-
consumers and other relevant te, brands create a sense of
groups. This intangible conception identification among consumers,
of the brand is subject to an thereby influencing the purchasing
independent and subjective decision in favour of the brand.
positioning in the minds of consu- The demand is seldom a matter of
mers and is fashioned by compon- the brand alone. The labelled
ents which are affective (emotional, performances are often based on
attitudinal), cognitive (knowledge, further differentiating demand
perception) and conative factors that influence the purchase
(behavioural intention, willingness to decision, such as the technologi-
purchase). cal innovation of the product, its
price, possible locational advan-
As technologies, markets, tages, etc.
processes, know-how and indeed
the specific range of offers become The valuation must clarify the role
ever more similar, there is a shift in of the brand in the demand
value creation to assets which behaviour of the consumers and
successfully set themselves apart users. The valuation method must
over a long period and cannot be be able to distinguish the brand-
copied. As a rule, the specific induced demand from the
features of the brand and its preference-formation effect of
distinctiveness enable the company other, intrinsic aspects, whether
to market its products or services at these be tangible or intangible.
higher prices (price premium) That is, the analysis must be able
and/or to move into new business to isolate the cash flow generated
fields or product generations, by the brand rather than by other
features.
24

25. To this end, the brand valuation Principle 8
must compute the share of the
brand in the creation of demand Consideration of a net
objectively by a suitable empirical present value method
method. This work step can be
and an appropriate
based on existing market research
discount rate
data (secondary research) or on a
specific investigation (primary
The value of the brand is determined
research). This investigation should
by discounting the future financial
be directed at the behaviour of the
surpluses attributed to it to the
target group and its specific motiva-
valuation date. In discounting the
tions in demanding services or
cash flows, the discount rate chosen
products of the brand.
must involve a premium to reflect the
risk factor. As a starting figure, the
weighted average cost of capital
(WACC) may be used. For the
valuation of the brand, the WACC
must be adjusted to the risk profile of
the brand. In evaluating a corporate
brand, it may be assumed that the
risk profile of the brand will be
identical with that of the corporation.
If the starting figure used is the
company's weighted average cost of
capital derived from capital market
data, the computation must encom-
pass the costs of equity, costs of
debt (after tax) and capital structure.
25

26. The equity costs are composed, Principle 9
following the capital asset pricing Brand-specific
model (CAPM), of a risk-free base risks (market and
rate and a market risk premium, competitive risks)
adjusted to the specifics of the
brand (risk surcharge). The base A strong brand creates higher
rate is arrived at on the basis of the customer loyalty than a weak one.
current yield curve. The residual The future cash flow of a weak and
term of the bonds chosen should risk-prone brand must therefore be
coincide with the residual life of the weighted differently than the same
brand. In the event that an end of future cash flow derived from a
the use of the brand cannot be strong and secure brand. A brand
foreseen, the life is assumed to be that operates in a growth market
indefinite. enjoys a prominent position there
and high familiarity, etc (see brand
strength) is strong and so is better
placed to actually realise the future
forecast cash flows.
A brand that, thanks to its presence
in the market, continuously
acquires new consumers and is
simultaneously able to tie in
existing customers will help reduce
the operating risk of the enterprise.
Reduced risk is reflected in turn in
lower financial costs. This advan-
tage must be taken into considera-
tion in the valuation.
26

27. A company or entrepreneurial The risks of a brand are diverse and
activity can be seen as the interac- can, in the nature of the case, only
tion of different tangible and be outlined here. The specific
intangible assets. Each asset situation is finally decisive for the
makes a specific contribution to the detailed risk definition and its
generation of earnings. The weighting. The following areas of
individual components here are risk can be made measurable and
exposed to different risks. In their comparable by using the attributes
aggregate, they constitute the listed immediately below:
company risk that is expressed in • The dynamics and competitive
the weighted cost of capital, concentration in the market
WACC. In quantifying the brand • Entry barriers
risk, it cannot be assumed that this • Market concentration
corresponds to the company risk, • Market growth
since this will in many cases • Volatility
diverge from the brand-specific risk.
The status of the brand
The strength – or else the inherent • Familiarity
risk – of a brand must always be • Brand attractiveness
seen in the context of the competi- • Relevant set
tive environment and the market in • First choice
question and must be accordingly • Loyalty
determined and quantified. The
valuation must include the competi-
tiveness of the brand and the
resulting reliability of the demand in
the future (brand risk).
27

28. Support of the brand In order to determine a suitable discount
• Investments in the brand for a brand to reflect adequately the risk of
(quantitative and qualitative) future realisation, the method applied must
• Homogeneity of the brand image account for the brand risk (or indeed the
• Continuity of the brand brand strength) in a discount rate that is
management reasonably transparent. This way of
proceeding places the company risk in the
Diversification of customer relation- context of the brand risk.
ship Valuation methods that fail to account for
• Geographic diversification the specific competitive strength – and
• Offer-specific diversification hence the reliability of future brand
earnings – fail to consider the risk inherent
Legal protection of brand rights in assessing the future value creation by
• Registration the brand and consequently lead to
• Monitoring and expansion excessively high brand valuations.
28

29. Principal 10 All measurement factors are
surveyed on the basis of a standar-
Reproducibility and dised and scientifically secure
transparency
method.
The brand valuation must meet the Objectivity involves the valuation
quality criteria for scientific work: risk being disclosed and quantified
The measurement of the brand as far as is possible. The data
value can claim to be valid if it is sources need to be specified and
free of systemic errors (such as the provenance of the data substan-
occur when influences are tiated.
measured twice) and if it is Transparency is achieved if the
complete and models exactly what measurement method is logical and
is to be measured. The validity of transparent and is presented with a
the findings must be verified by statement of the purpose for making
applying alternative criteria. the valuation. The relationship to
Reliability is arrived at if, after the purpose of the valuation must
repeated measurement using an be clear.
identical valuation scheme, the
same result is achieved reliably. Berlin, 30th June 2008
29

31. Imprint
Publisher:
Brand Valuation Forum -
An initiative of G·E·M German Society of Brand Research and
German Brands Association Markenverband e.V.
Unter den Linden 42
10117 Berlin
info@brand-valuation-forum.de
http://www.brand-valuation-forum.de
ViSdP / Legally responsible:
Christopher Scholz, Attorney-at-Law
Translation / English version
Paul Gregory
www.language-for-clarity.de
Layout//Design:
Interbrand Zintzmeyer Lux
Kirchenweg 5
CH-8008 Zürich
www.interbrand.ch
Printer:
Druckerei Chmielorz GmbH
Ostring 13
65205 Wiesbaden
www.druckerei-chmielorz.de
Status: 18 June 2008
Initial print-run: 2000