Brand Valuation

Brands are an important asset representing a significant value on the company's balance sheet. It can be very surprising therefore, to see how brands can be poorly handled, for example, after a merger or acquisition. Companies do not appreciate the dollar value that a brand represents, and they may not base their decision on re-branding scenarios, or scenarios regarding the re-staging of a brand, on a proper assessment on the dollar value of a branding scenario.

SKIM helps companies to accurately assess the value of its brands, alternative (re-) branding scenarios, or complete brand portfolios. An accurate dollar value of a brand over alternative brands or a no-brand situation can be estimated, allowing the company to estimate the premium it can command because of the brand. Also, companies can assess what different types of consumers it will attract because of the brand, helping them to quantify their market reach and potential.

SKIM uses Conjoint Analysis (aka Discrete Choice Modeling) to assess the value of branding scenarios in a dynamic competitive environment. This means that brand value will be assessed in conjunction with, and relative to, competitive brands. SKIM has helped several companies assess their brand portfolio, either in a process of optimizing an existing portfolio, or when considering candidates in a merger & acquisition process.

Read more about Conjoint Analysis in our Methodological Partner section