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A group of brand value measurement indicators has established itself parallel to the focus on psychographics values. Consulta ncy firms and
academicians have proposed many composite models of brand valuation. The Interbrand¶s brand valuation approach, AC Nielsen¶s brand balance
sheet and brand performancer, Gfk brand power model, Semion brand value approach and Sattler brand value approach are a few o f the famous
composite brand valuation models. ?
Interbrand consult ing firm¶s brand value system considers an earnings -based approach. The Interbrand model seeks to estimate the risk and
inflation-adjusted benefits ²the current and future earnings or cash flows ²flowing from brand ownership. Under this model, the value of a brand is
a function of two factors: its earnings and its strength. While the brand¶s earnings are a measure of potential profitability , the brand¶s strength is the
measure of its reliability of its future earnings. The greater the brand¶s strength, greate r is the reliability of its future earnings and lesser is the risk.
Since it is difficult to attribute all the earnings to the brand per se, adjustments need to be made to the earnings estimate s.

In this model first of all the unbranded profit i.e., earnin g that would have accrued on a basic unbranded version of the product is eliminated and
the historical profit at present day value is restated and adjusted for taxes. To calculate the actual brand earnings the pro fit attributable to other
intangible associated with the business of the brand is deducted.

The model calculates the brand value by multiplying brand earnings with the brand earning with the brand strength multiple. T his brand strength
multiple is a function of multiple of factors like leadership, stability, market, internationality, trend, support and protection. These factors have been
evaluated on a scale of 1 to 100 to calculate the brand multiplier. Some of the IT companies like Infosys, Rolta and Satyam a re following a similar
practice of valu ation for their brands.

The seven determinants of the brand value are:

‡ Brand leadership²which stands for the ability of the brand to influence the market;
‡ Brand stability ²the characteristic that has made the brand the inherent ³fabric´ of the market;
‡ Market²the structural attractiveness of the market, its projected growth, et al.;
‡ International presence of the brand ²the brand¶s attractiveness and appeal in a multiplicity of markets with a view to distinguish between regional,
national and international brands;
‡ Brand trend²the brand¶s ability to remain contemporary and relevant to the consumers;
‡ Marketing support²the quantity and quality of the investments made to support the brand and
‡ Legal protection enjoyed by the brand are the protection rec eived from the legal system, patents, trademarks, etc.

Based on these parameters, Interbrand consulting determines the value of brand. Interbrand has given weighting to all these s even parameters like
brand leadership has 25% weighting, brand stability enj oys 15%, market 10%, international presence of the brand 25%, brand trend 10%,
marketing support 10% and legal protection enjoyed by the brand has 5% weighting.

Measurement of the seven variables, based on a detailed audit would determine a brand¶s strengt h. This provides the discount rate that needs to be
applied to the adjusted estimates of the brand¶s earnings for determining its present value.

BV = Brand profit x Brand multiplier

The Interbrand approach while being valuable, especially in an acquisition and merger context, suffers from an accounting focus. This stems from
the desire to ensure that the value arrived at is auditable. Further from a marketer¶s perspective, the Interbrand approach d oes not explicitly
measure consumers¶ perception of the bran d, which is critical for marketing decision -making, especially on brand extension.

Schulz and Brandmeyer, of AC Nielsen have used scoring model to develop a brand valuation model called ³The AC Nielsen brand balance sheet´.
The brand balance sheet relies o n six criteria groups containing a total of 19 individual criteria that are deemed good indicators of brand value. The
fundamental idea of the brand balance sheet is to relate a correlation between complex market environments, the significance of long-term brand
cultivation and successful brand management. AC Nielsen felt that the brand balance sheet is not the absolute model for brand valuation and in
search of better brand valuation model, it has developed an advanced model based on Brand Performancer.

The Brand Performancer attempts to deliver an integrative consumer and company -oriented brand valuation system. It provides tailor made data to
the decision -makers for any specific information needed. The modular structure makes it possible to supplement gau ges of brand value with
analyses for the purpose of brand steering, financial brand valuation and tracking of brand leadership. The four modules are brand steering system,
brand value system, brand control system, and the central element ± brand monitor.

BV = [Annual sales of respective brands x Net operating margin x Relative brand strength x Perpetual annuity NPV discount fact or]

One approach, which relies strongly on behavioral and image data in addition to financial values, is µSemion brand value appr oach¶. He defines four
brand values ± financial value of the company, which is determined by earning before taxes and earning trends, brand strength that is determ ined
by market share, market influence, marketing activities, distribution rate degree of famil iarity, identity and potential, brand protection determined
by product classification, brand environment and intern protection and brand image determined by consumer association, image position on market
among consumer and vis -à-vis product.

BV = financial value x [financial value factor + brand protection factor + brand strength factor + brand image factor]

The market-oriented system of brand valuation, which combines a consumer -based perspective with a company -based perspective is proposed by
Bekmeier-Feuerhahn model that operates on the assumption that brand value is derived from brand strength and brand earnings, both assesse d on
the basis of market prices. It is a comprehensive, integrative approach to build brand valuation that takes into account the special requirements of
brand appraisal and yields a tangible monetary value.

The other well -known composite brand valuation approaches are Sattler brand value approach, Gfk brand power model and brand rating valuation
model. ?