Question

what is a brand worth? What elements would you use to define the worth of a brand? Use the example of a brand that you think recently reinvented itself, and illustrate how it added value back to its brand

Answer 1

Brand worth is a process where we evaluate the total worth of the brand in terms of assets or we can say that the net present value of the brand in the market that attributable the brand personality and name is called the Brand worth.The worth of the brand always help the company to attract the investors as well as maintain the trust in the market.

There are two element are used to define the worth of a brand:

1) Brand Valuation - Brand value is a process that analyse and tells the value of the brand in the market.Because brand is intangible asset and help in the differentiate between the brand book value and the market value.The valuation of brand are two type - Income based valuation and Market based valuation.

• Income based valuation - This approach used to calculate the total income of the brand in a year.With the help of this strategy,Researchers will able to analyse the overall turnover of the brand.which help them to analyse the worth of the brand.
• Market based valuation - This approach tell the value of the brand in the market by analyzing the value of the stock of the brand

2) Brand association - This Process tells the connection between the brand and the customer,employees and the investors.Brand association help the brand to connect with the people, place, things and emotion.In the current world,every brand want to associate itself with something positive.Which will lead to increase there sales.

If we talk about the latest example of the company who had reinvented itself and added the value in the brand is PayPal .In the resent interview, PayPal founder Max Levchin said that PayPal is not founded for the online payment service.Bit, in his starting stage PayPal is working as cryptography company then, later it means to the transmitting money via PDAs.After the several years and failure, PayPal added the new value in there brand and able to attracting the many customer by giving his services.