Analysis On Master Kong Brand Valuation

Currently, with the rapid development of technology and the knowledge economy, intellectual property has become the focus of competition and the important strategic resource in the international competitiveness among countries. As an important part of intellectual property and intangible assets, brand has an increasingly prominent position in the market economy. Whether in the process of business innovation or operational, the role of Brand Value Management becomes more and more obvious. Correspondingly, an increase of brand-related litigation and merger cases in international and domestic markets leads to a large needs of brand value assessment services. It is an urgent need to establish a comprehensive brand assessment system to meet the demand of assessment in brand management and brand trading case.With the development of economy and the improvement of people’s living standard, people’s requirement for the quality and safety of food is also rising. Evaluating the value of brand equity scientifically not only helps companies pay attention to brand management, allocate business resources rationally, implement brand asset management and investment decisions effectively, it can also transmit the good news of enterprise strength and development potential to investors and consumers, which creates a favorable external conditions for the enterprises development. In short, to strengthen the brand value management is inseparable from the support of the brand value evaluation. However, in the long run, there are some phenomena and problems to be improved in China’s brand value assessment. Deep understanding of the meaning of brand value and proper separation between brand and other intangible assets are prerequisites for an accurate assessment of the brand assets value. Based on this, firstly this article gives a brief introduction about the meaning of the brand and brand value; second, on the basis of the original method, here propose a new evaluation method; finally, the new method is applied to the case of Master Kong brand valuation and according to the result, the article makes a comprehensive conclusion in the end.The paper is composed of seven parts:The first part is the introduction. At the beginning of this chapter explains the importance of brand assets evaluation in food enterprises. Brand is the sole of the company, which represents the strength of firm size, management, quality reputation, and other factors. Competition in the market in today’s world has moved from simple product competition, price competition into the brand competition. In the modern enterprise, the importance of brand equity value more and more prominent and it has practical significance to assess the value of the brand. However, China’s enterprises, especially SMEs are not emphasis on brand equity enough, coupled with the underdeveloped evaluation of brand, are all make a serious impact on the overall reputation of the brand valuation industry. This chapter presents research ideas and framework at the end, and strives to make a comprehensive summary and interpretation to the brand assessment system.The second chapter begins with a brief analysis of the case of this evaluation industries and enterprises, namely the characteristics and status of China’s food industry and Tingyi basic situation Limited. All kinds of food safety problems in China in recent years lead to a deep concentration to both the nutritional value of food and the food enterprises and brand awareness. Therefore, this paper choose the food industry as the appraisal object, in making estimates of the brand assets, the assessment results can also enable enterprises to understand the brand’s market performance, strengthen the brand management and marketing strategy.The third chapter is to select the Master Kong brand evaluation method. Firstly, it discusses the theory of brand value briefly; secondly, the three stages of the development of brand valuation lead to three sorts of brand valuation methods. Assessment model based on financial accounting point of view is the traditional asset valuation models, including the market approach, cost approach, income approach and the stock market capitalization method. However, the particularity of brand assets makes it not applicable while using traditional methods; Market-based assessment model angles including the Interbrand assessment model, the World Brand Laboratory Method, Beijing Famous-Brand Evaluation Co. Assessment Act; Consumer-based assessment model includes ten elements of the model, brand asset engine model. In the end, this chapter makes a comparative analysis, points out the disadvantages and unique features of each method and further concludes that different methods are needed. Finally, the rationality of the new method is analyzed.The fourth part is to determine the Evaluation Date of Master Kong brand value assessment and Valuation Assumptions. First, based on financial data obtained in this article, it selects December31,2012as the base date. Secondly, this paper identified Trading hypothesis and the continuing operation assumption as the basic assumptions of this evaluation.The fifth part is the calculation process of each index in the adjusted method. First, calculating the weighted average profit rate of last three years from the financial report and multiply it with sales in2012; Second, the paper tries to design a questionnaire to collect data of six pairs which have a greater impact on consumer buying behavior factors (including brand)and then calculate the weights of the factors; Meanwhile, it is important to determine the relative importance of factors among various factors and Master Kong brand’s performance through the design of questionnaire, too.Based on the part of each evaluation index and the formula of brand value evaluation, the sixth part obtained Master Kong brand value firstly. Then, Taiwan Global Brands survey data will be compared with the assessed value in order to verify the feasibility of the method. Meanwhile, this paper affirms the adjustment of brand revenue, brand index and brand strength, and it also analyses some limitations existing in the new method, such as less sample number, subjective factors in the process of calculating the brand strength etc. Finally, the rationality of the new method is analyzed. Part of the end of this part proposes some suggestions about enhancing the Chef Kang brand value.The seventh part is the conclusion which reviews the whole article. In this part, as a kind of special intangible assets, the method of the brand assets assessment is special, too. Finally, combined with the current situation of China’s brand value assessment, the last chapter put forward factors which need to be perfected in the application process and areas for further research.