Literature for the business leader published by SchmidPreissler International Strategy Consultants, The Lion’s House, D-83703 Gmund am Tegernsee,,




SchmidPreissler Brand Equity+Performance©  Programm


Issue: 09/200

Next Issue: Week 40/2007



Excerpt of further issues topics: Brand Equity and Brand Strategy, Brand Equity and Brand Diffusion, Brand Equity and Company Success, Brand Equity and Sales and Acquisition of Brands or Companies, Brand Equity and Marketing Investment





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What is brand equity worth?
Franz Maximilian Schmid-Preissler

Just a few years ago Google was a small, likable internet start-up company of which little notice was taken. The business was rather small and brand equity was not all-too high. This has changed rapidly in an exceptionally short time, as the recently published Interbrand ranking shows, where Google, for the second time now, is the most successful international brand in terms of its valorization.

Of course one can endlessly debate the logic or absurdity of brand equity rankings and those who have been keeping track of our publication “Brand Equity+Performance” will have realized that SchmidPreissler is rather critical towards them. However, it is noticeable that are numerous similarities and parallels between those brands on the top ranks. All such brands are unique symbols for specific values; they are points of reference in the sea of product diversity and embody a world of experience in their own right.

When calculating brand equity according to our model, the “Brand Equity+Performance Program”, there are several important factors which are being included in our consideration. The brands significance in its home market plays an important role, just like a clear market position, the brands origin and history, as well as international and respective global presence and the concordant trademark protection. In addition we consider the brands unique sales proposition and the brand-specific target groups addressed. Of course we also incorporate the other elements of the SchmidPreissler brand definition, namely brand profile, image and brand awareness.

Decisive as well for the appraisal of a brand is, to take into account the structure of their human resources, the use of respectable and reliable channels in regard to product sourcing, the company’s financial situation, the level of corporate social responsibility, consistent and dependable relationships with customers, company respectability and of course business development over the past years. Furthermore we take into consideration the medium- and long term company strategy, as well as the company’s investment policies regarding the supplier markets, the sales market and the job market. Further factors to be considered depend on the brand in question.

Despite all the naysayers, the power of brands is much greater than has been postulated in these past few years. Equipped with tangible user advantages and strong emotional value added brands enjoy, today as ever, maybe even more so, very high levels of consumer appreciation and approval. However, nowadays caring for a brand and hence consistent brand management are an absolute necessity. This is because weaknesses in brand strategy and brand management, in the light of new and complex challenges such as the consequences of globalization, increasingly ruthless competition or the emergence of the enlightened consumer, impact more quickly and to a greater extent. This will ultimately express itself in the decline of monetary value.



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Editor: Dipl. Vw. Christina Schmid-Preissler - Assistant Editor: Regina Seago

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