Download - Brand Equity Ehab Dawoud
Valuing Brand Equity in the Arab World
Abu-Ghazaleh Intellectual Property
Ehab W. Dawoud
Amman , Jordan
Nov. 2007
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Contents
Defining Brand EquityBrand Equity ElementArab world Valuable Brands When Brand Valuation Is
Necessary?
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Defining Brand Equity
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Defining Brand Equity
“ The differential effect of brand knowledge on customer response”
“ A product, but one that adds other dimensions that differentiate it in some way from other products designed to satisfy the same need”
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Brand Equity Element
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Brand Equity Element
Differential Brand Knowledge Customer Response
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Differentiation
The most critical element Price premium. In some instances, differentiation is easy to
create . whereas in other instances this can be much
more challenging (e.g., gasoline and bottled water)
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Brand Knowledge
Customers should know about the differentiation.
Customers should be aware of it, Customers should appreciate that The differentiation is meaningful for them
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Customer Response
Customers should respond favorably to this differentiation.
Product loyalty, Pay a premium
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Valuing Brand Equity
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Valuing Brand Equity
Value is a function of three primary variablesProfitability (Level of cash flow )Growth ( Increasing cash flow)Risk (Volatility of cash flow)
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Valuing Brand Equity (Cont’d.)
Brands create Preference (the basis for profitability), Permission (the basis for growth), loyalty (the basis for stable revenues and
profits).
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Valuing Brand Equity (Cont’d.)
What is required is a methodology for quantifying the impact of brands in terms of the profit, growth and risk of the overall business.
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Arab world Valuable Brands
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Al-Jazeera
Voted the world 5th most influential brand.
Al-Jazeera came just behind Apple’s iPod, Google, IKEA Starbucks,
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Apple USD 7,985
Google USD 8,461
Ikea USD 7,817
Starbucks USD 2,576
Al Jazeera
Amazon.com USD 4,156
??????
( $ Mil)
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The 100 Top Brands
Each brand must derive about a third of its earnings outside its home country.
Be recognizable outside of its base of customers
Have publicly available marketing and financial data
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When Brand Valuation Is Necessary?
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When Brand Valuation Is Necessary?
Tables of brand values such as the one in magazines like BusinessWeek and Forbes have helped to raise awareness of the economic significance of brands.
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Necessary of Brand Valuation
Three situations in which a brand valuation may be necessary or desirable:
1.It is required for accounting purposes.2.It will inform the terms of a prospective
transaction.3.It will enhance the management of the
brand.
Thank you
Q & A