SchmidPreissler Strategy Consultants at The Lion's House
D-83703 Gmund am Tegernsee. Represented in Berlin, Istanbul, Mumbai, New York, Shanghai and Tokyo


Our philosophy: Successful corporate strategies are market strategies and market strategies are always brand strategies.


SchmidPreissler is the avant-garde among strategy consultants. We serve business leaders worldwide.


With this site we present our brand equity and performance program in the scope of the
subject-matter 'turn of an era and paradigm shift in brand marketing' as a key to safeguarding
brand marketing investments and expenditures. This program is a new norm.
We regard this program to be a milestone in brand marketing already today.




SchmidPreissler Brand Equity+Performance©  Programm


Issue: 08/200

Next Issue: Week 40/2006



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





More about the Program (english | deutsch)


Zur deutschen Fassung wechseln



Brand Equity Ranking: Monetary or Image Values?
Christina Schmid-Preissler, SchmidPreissler International Strategy Consultants

For the longest time, the value of a brand was only interesting to marketing experts within a company – and this in general also only in the consumer goods industry and less in the capital goods industry. Today it is playing a central role in many segments:
During the sale, purchase or merger of a business, assessment of damage in case of brand piracy or infringement of trademark law, during allocation of brand utilization privileges, brand controlling and lately also increasingly for accounting of assets in companies.

For many businesses, the brand constitutes the outstanding property value. A survey by PricewaterhouseCoopers from 2002 among the 100 biggest businesses in Germany showed that on average brands account for 56% of the total value of the company.

In the meantime there are dozens of methods for the evaluation. We have also been dealing for years with this topic and in the center of our thinking is brand equity, a monetary value. The word ‘monetary’ is of great importance, because we require an adequate return-on-investment to be part of every product-cost accounting and because we are of the opinion that investments into brands can only be evaluated correctly, if the return-on-investment of the equity of the brand can be included in the profit and loss account.

Institutes regularly publish brand equity rankings, where the equity of popular brands are being issued, mostly of those whose owners are listed on the stock listing of daily press. In our opinion, these rankings have by and large little in common with the reality of brand evaluation if the brand equity is not understood the way it should be understood: As a monetary value.

A list, recently published by the Handelsblatt in Germany, shows how little helpful and even unreasonable these rankings are. Here, an example that proves how little essential information in regards to true brands is contained in this list. BMW is listed on position 15 with Euro 19.6 billion. And that even though the company has, according to its own announcement, generated a pre-tax operating profit across the whole corporation of Euro 947 billion with a profit growth of 32% in the automotive sector. This corresponds to an annual rate of return of 7.3%. Nowhere in the annual report does it mention the return-on-investment on the brand equity.

The like could be demonstrated at about half of the 50 named values.

The essence of brand equity evaluation is that every case has to be treated individually. Just to name a few facts, a profound knowledge of the corporate figures, the company history and development, the corporate culture and the corresponding brand performance, the market position and the future outlook are necessary in order to come to legitimate brand equity. A value that can be expressed in Euro and Cent.

In the end it is crucial that there is a confirmation that the determined valued is reflected in the creation of value, meaning in the return-on-investment of the brand equity. Brand equity without verifiable return-on-investment is of no value. The values mentioned on this list, in general, do not allow for brand performance and thus this does not really make sense.

Basically, brand equity and brand performance require a situation that in most cases is very different from what is common today, where brands are unvalued, buried within the company as ‘secret reserves’. Brands should be, as most globally operating companies are already handling it today, spun off into a company for commercial exploitation of brands, which is professionally going to take care of the brand utilization and its profitable efficiency and thus takes care of the return-on-investment. Just as real estate, fleet, data processing and other activity units are managed separately today.

We serve with our knowledge as consultants during the evaluation of solid brand equity and the development of strategies of how brand equity can be used so that the required investments and expenditures are profitable and in case of the sale of a company or a brand an adequate profit can be achieved.



Corporate Strategies


Market Strategies


Brand Strategies


Brand Development


Brand Diffusion


Brand Leadership


Brand Equity + Performance


Brand Positioning


Brand Protection


Brand Rating


Brand Rules


Brand Net-Added Value


Brand Driven Selective Distribution


The Waisted Rectangle©- The new picture of the consumer goods markets


Global Branding


Knowledge Society as Target Group



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

Copyright © 2005 SchmidPreissler Strategy Consultants. All rights reserved.

© 2005 SchmidPreissler