The value of owning a superbrand

Mohammad Wasfi Tamim

International superbrands such as Coca-Cola and Microsoft are valued at billions of dollars and this is often reflected in strongly branded public companies' share prices.

Brand assets also constitute a growing percentage of a company's total asset base. Brand Finance, a London-based global brand valuation consultancy, estimates intangible assets constituted 50 percent of total assets in the 1990s and this is set to grow to 70 percent by 2010.

A strong brand benefits its owner in many ways. It impacts positively on the volume and the value of the product or services sold by an organisation.

A research by NFO WorldGroup on behalf of Superbrands Ltd showed that between 40-60 percent of UK consumers would not switch brands at any price. Another study conducted on behalf of Superbrands UK has illustrated that brand loyalty and consumer willingness to pay a premium for a superbrand has remained high throughout the 1998-2003 period.

Strong brands can stabilise demand and help minimise the impact of macro-environmental change. Downturns have a greater impact upon weaker rivals who feel the pinch quicker and recover later.

Brands are essential to corporate performance as they represent a major source of value as evidenced by the continued out-performance of heavily branded organisations versus weak branded rivals. Yet, work still needs to be done to convince investors, banks, boardrooms and finance directors of the benefits of investing in a strong brand, whether it is a company, product or service.

The Superbrands organisation promotes this cause through its publications, website, events, media promotions and related activities.

Superbrands is a global brand recognition programme, a worldwide benchmark acknowledging brands with a strategic focus and commitment to achieving extraordinary results. The Superbrands publication -- part of its marketing tools -- is one of the most prestigious branding publications that are available.

Superbrands has recently announced its launch in Bangladesh, where its programme will be available to a cluster of elite brands which are deemed worthy of this status or award.