Brand evaluation steps of brand evaluation

Brand evaluation is a new evaluation system, which originates from financial evaluation indicators. However, after establishing its own unique evaluation system, we should strive to overcome the shortcomings of using financial indicators. Because the brand is a long-term investment, but the indicators such as sales volume, cost analysis, marginal income, profit and return on assets are mostly short-term data, which are all "self-sufficient". Evaluating brand performance with short-term indicators will often do some harm to brand investment decisions. In understanding, we must first understand that the evaluation of brands focuses on value, not cost, and the real value of brands comes from future market competitiveness. Secondly, it should be noted that in order to overcome the uncertainty of cash flow in future years by the present value of income method, the current excess profit of the brand should be used as the base for evaluating the brand value. At the same time, in order to overcome the lack of value components in the evaluation process and establish an index system of brand market power, we should combine the existing excess profits with market power indicators and adjust the existing profitability to future market competitiveness. Finally, in order to ensure the reliability and validity of the evaluation results, it is necessary to analyze and test the reliability and validity.

Therefore, it is necessary to establish a scientific evaluation system, set reasonable evaluation steps and choose appropriate evaluation methods.

The first step is to evaluate the brand's current profitability. First of all, some specialized independent appraisers, economists, engineers and other experts will determine the annual sales revenue, cost and tax of the products identified by the brand, and determine the after-tax net profit. The specific method is to use the formula: the sales revenue of this brand product-corresponding cost-corresponding product sales tax-corresponding income tax = after-tax net profit. Secondly, the average net profit of the industry is deducted from the net profit of the product, and the existing profitability of the brand is obtained, which is expressed by P.

For this method, the index calculated by this method is net profit, not total profit and tax, because the brand value calculated by net profit excludes the influence of different brands and different products with different tax rates, which is comparable; Secondly, this method calculates the net profit of products rather than enterprises, because brands are used to distinguish products rather than enterprises.

The second step is to establish the index evaluation system of brand comprehensive ability and calculate the comprehensive strength coefficient (L) of the brand. These indicators include: market share, brand protection, brand support, brand market characteristics, brand's own sense of trend, brand's international strength and brand life.

The method adopted in this step is mainly the expert scoring method, that is, the existing base value of each index is set to 1 first, and then the expert group judges the change rate of each index in the future life year. If the change rates of six indicators are evaluated before a certain year, namely Ai, Bi, Ci, Di, Ei and Fi, then the market power coefficient of this year is Li = (1+AI) × (1+BI )× (1+CI )× (/kloc-) Therefore, adjusting the future market competitiveness with market power factors is based on market power index and excess profit index, which reflect the market competitiveness from different aspects, but due to the complexity of practical factors, the two are not consistent. In order to improve the objectivity and accuracy of the evaluation results, a problem is evaluated from two angles.

The key of this method is that the selected experts have a clear grasp of the indicators of the brand's future market power, thus making it feasible to judge the indicators of the brand's future market power. However, due to the late start of China's market economy, some economic methods under market conditions have not been fully understood. In fact, in the operation of market economy, most models and information are obtained by appraisers, marketers and mathematicians through judgment. The weight should be decided by the evaluation company with considerable market experience, because they have a more accurate grasp of the law of the problem. Therefore, combined with an experienced and knowledgeable expert group's estimation of the changes of brand market power index in the future, this evaluation system can be completely implemented.

The third step is to measure the brand value (V). This is the most critical, beneficial and simple step, and the final result can be calculated with the formula V = P× L.

The fourth step is inspection and testing. Any appraisal result may be biased, so in order to truly, effectively, fairly and objectively reflect the value of the appraised assets, after all the appraisal work is basically completed, feedback tests should be conducted to test its reliability and effectiveness. If the calculation results are similar or the same for many times, it shows that the evaluation reliability is high and the evaluation results are reliable. Validity verification based on statistical data and adjustment factors is a common method to ensure the validity and objectivity of evaluation results. In view of the lack of historical data of brand evaluation in China, we can learn from foreign experience, such as the ratio of value to sales of foreign brands is one to one, which can be used as a reference to verify the effectiveness of evaluation. This method not only pays attention to the profitability of the brand, but also balances various factors. Based on the existing profitability of the brand, the value of the brand can be established on an objective basis. With the real present, there is an objective future. Through the calculation and analysis of brand market power factor coefficient, it reflects the value content (market power index) other than brand profit index, and extends to the future, covering the future profitability. It examines a problem from two angles to ensure the integrity of brand value and make brand value reflect the future market competitiveness. Comprehensive, objective and realistic, combined with the future, are the characteristics of this method. ⑥