iconannual 2018

Brand Global Council
Why Brand Standards
Everyone recognizes that
brands are important.
But why is the implementation
of standards for brand value
and brand management so
important?
BRANDS CREATE VALUE
To start with, we must realize that since the 1990s
investment in intangible assets (such as- R&D, software,
human resources and brands) has exceeded that of tangible
assets. The intangible asset value component of the
S&P stock index grew from 17 percent in 1975 to 87 percent
in 2015.
Intangible assets are now the key to economic growth
and increasing corporate value. Unfortunately, as with
intangible assets generally, it has historically been very
difficult assign a value to brands or identify the metrics
for brand management and reporting.
How can you create more value with a strong brand?
The Trend is moving from
tangible to intangible
assets
Therefore a different/
additional way to
manage your balance
sheet is required
Have the brand as one
of your cornerstones in
your strategic thinking
Intangible Assets
COMPONENTS OF S&P 500 MARKET VALUE
83 %
17 %
68 %
32 %
32 %
68 %
Tangible Assets 1975 1985 1995
Dr. Gerhard Hrebicek
Chairman Brand Global Council
BRANDS EXIST
IN THE MINDS
OF CUSTOMERS
Names, symbols and
the like are just ways of
referring to brands, ideally
in a way that itself
influences how consumers think about the brand. The
brand, however, is the ultimate meaning, or the idea, of
the product in the consumer’s head. It is how the consumer
thinks about the product, what he or she believes
to be true about it.
A brand is thus subjective, not objective. The key
point to realize is that it is the consumer
who owns the brand. The
brand exists in the consumer´s mind.
Although brands are created by
tangible investments in advertising
20 %
13 % and other marketing activities, the
resulting brand is the idea or meaning
that is created in the consumer’s
mind. It is an intangible asset. Beyond
80 %
87 % this, and unlike software or patents,
a brand only exists as a subjective
2005 2015
state in the consumer mind. From a
company’s point of view, the question
becomes, how do you assess the value
of a brand when brands are so intangible
as to be essentially subjective.
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