A Study On Brand Equity Evaluation

With the development of economic globalization, the enterprises'survival environment and market has changed a lot and enterprises are subject to impact from other markets and brands while the development of technology makes the need of scale economy and marketing efficiency begin to urge the enterprise to stride forward towards the trend of global competition. Thus, more and more enterprises have realized the necessity of a better grasp of the existing brand equity value. The feasible implement of the brand equity evaluation can make the stucture of the enterprises balance sheets more sound, bring benefits to marketing and management personnel to make a wise decision, distribute resources and reduce the waste of investment. The brand equity not only conveys the health state and development situation of the enterprise, but beliefs of the enterprise to internal employees encouraging their confidence. Thus, brand equity evaluation gets more and more attention from the management personnel and experts of brand equity evaluation, however, it is difficult to mearsure it accurately and there are many deficiencies in the current brand equity evaluation practice and in theory circle, explaination of the definition of brand equity evaluation and the evaluation method emerge one after another. It is crucial for the evaluation of brand equity value scitifically to recognize the nature of the brand equity, correctly distinguish the brand equity and other related intangible assets and choose the appropriate evaluation method. Regard this as the starting point, the paper puts forward an improved brand equity evaluation system through systematically carding the definition of brand equity evaluation and makes analysis with examples.The paper is composed of five chapters:Chapter 1 puts forward the significance of studying brand equity evaluation. Brand equity is a kind of unidentifiable-intangible assets and it is called one of the assets possessed of the potentials of development and the most valuable as well. In knowledge economy era when brand utility is increasingly important, making a reasonable and accurate brand equity evaluation has very important practical significance. Since the research is still in an initial and exploring stage, there are disputes in its definition and different evaluation methods emerge one after another and at present no evaluation method is widely accepted. This charpter in the end proposes the research thinking and stucture of system, aiming to expound comprehensively the definition and method system of brand equity evaluation.Chapter 2, firstly discusses the related concept and basic theory of brand equity evaluation. By reading the literature, this charpter sums up three categories for the definition of brand equity evaluation. Then, it elaborates the classification, the function and the feature of brand equity evaluation. Next, it introduces the different classification of brand equity evaluation to understand it from different perspectives and meanwhile the principal aspects considered in evaluation is presented as wellChapter 3 reviews on methods of brand equity evaluation. It discusses three different methods—financial-based method, market-based method and consumer-based method respectively. At first, this chapter discusses the method based on financial factor. It is the first method used in pratice which is divided into costing method, market method and income method. Costing method consists of historical cost method and replacement cost method which are now rarely used. Besides these basic methods, evaluation market value method is discussed as well. The market factor-based method includes Interbarnd method, the world brand lab method and assessment method of Beijing Brand Assets Appraisal Corporation. From perspective of the market, all these three methods evaluate brand equity value through calculating a series of index with different points of emphasis and parameter selection. Customer-based method, more subjective method, is composed of two catagories. One is completely based on customers'perception and the other is based on the brand relationship. In the end, this chapter makes a comparative analysis, points out the disadvages and unique features of each method and further concludes that different methods are needed.Chapter 4 is the key part of this paper. Based on aboved-mentioned concentration of different brand equity evaluation methods, this chapter proposes an improved method named Excess Income Present Value Adjustment Method in order to realize the combination of the financial, the market and the customer elements. Then it elucidates the theory basis of the new method. Meanwhile it introduces adjustment coefficient, selects nine kernel parameters combining the influencing factor of the market and customer, and calculates an adjustment coefficient to adjust the final value of brand equity evaluation. Finally, this chapter selects three leading enterprises in dairy industry using the new method and evaluates their brand equity respectively to draw a therotical conculsion.Chapter 5 is the conclusion. Fristly, the rationality of the new method is analyzed. Then the last chapter summerizes the disadvantages of the method proposed by this paper and areas for further research.Compared with the other domestic works, this thesis has made some characteristics and contributions:The main contribution of this paper lies in the analysis of some erroneous understanding and application in evaluation practice and the original view in calculation and selection of the index for the new method has reference value for further research.