The Valuation Of Brand

As the market economies develop, the role and value of brand is increasingly recognized. A good brand can not only help to expand the enterprise market share and scale, but also contribute to reduce the risk of consumers. Because of their different academic background and perspectives, scholars at home and abroad have different understanding of brand value, and the feasibility and applicability of existing brand valuation methods are to be further studied. Thus, there is lack of a unified valuation system. According to the existing conditions of China, it is necessary to improve the theory, method, and practice of brand valuation so as to contribute to the development of China’s brand valuation in the international society.This paper, based on literature review of brand valuation, first comparatively analyzed the existing brand valuation method from the perspectives of fiance, market and consumer, and then select Interbrand model for further study based on its advantages over other methods. The Interbrand was revised and used to estimate the brand value of Yunnan Baiyao so as to analyze its feasibility and applicability for valuing brands like Yunnan Baiyao in China. First, the parameters were revised to reflect the facts of China’s brand, and a base framework as set up the revision of Interbrand model. Second, a hiberarchical analysis method was applied to determine the functioning coefficients of brand, and then a ratio between the benefit of brand and that of intangible assets was calculated. In analyzing the brand strength, the brand multipliers was estimated using a set of quantified indicators, which are more objective and easily available, rather than using the traditional questionnaire-based survey data. It was concluded that the revised Interbrand model is suitable for the brand valuation of China’s firms. This thesis is expected to provide related firms with an improved brand valuation method and information for decision making in brand management.