A Brand is defined as a “Name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers”.
It is important to understand and deal with your brand as essential intangible asset for your business which is considered as a valuable resource that belongs to your business but it does not always have a physical existence.
Estimating how much your brand is contributing to your net present value for your business is the brand valuation, so we define brand value as the net present value of the future earnings attributable to the brand, taking into account the impact of the brand on the business and the strength of the brand in its market.
In companies in which a brand is the key element of the competitive advantage, it is vital to collect and evaluate the right data about the brand, the brand value, and the brand awareness which will help with brand management strategies. Many companies spend up to 33% of their revenue on marketing per year on a single brand to increase their brand awareness since customers will not consider your brand if they are not aware of it.
Knowing the real value for your brand (brand valuation) can help you to look at your business, brand, brand awareness, and marketing expenditure from a different angle. If you want to buy, sell or lease a business you better know the accurate value of this business (tangible and intangible assets).
However, ranking means putting things together according to some criteria, or to put them in order. From this perspective, our idea was born; we are aiming to put Arab brands in order according to their popularity and famous reputation in the region. Ranking a brand or product to its competitors in the same market or industry is defined as brand ranking.
From brand valuation to brand ranking there is so much to talk about. We are not evaluating brands to know their monetary value, but to analyse the level of reputation for each brand in order to know which brand is more famous for the customers in certain region(s), so there was our challenge. We want to shed some light on the trademarks that customers are aware of, and make the less known brands more well known. Basically this is a customer oriented approach not corporate.
We were asked to find out a non-traditional yet credible approach for that purpose,it meant that we had to put our 25 years of expertise in brands and trademarks on the table, and combine it with the information available regarding brand statistics and dynamics. We analysed each business category’s risk, its advantages and disadvantages, and its importance in the market in order to set the path for our rankings, because knowing that information will lead to a validated process during the event.
Our ranking framework was designed to take into consideration the local sensitivity for each country to adopt the needs of the market and the society. They collate the variables and uncertain circumstances which may affect the customer’s perception and buying force in order to reach to an accurate formula, therefore presenting sustainable results.