Vincap - The brand valuation tool

John Hegarty probably said it best, "Always remember: a brand is the most valuable piece of real estate in the world; a corner of someone's mind." Vintegra concurs with this view, believing the intrinsic value of a brand resides in the consumer mind-space it occupies.

Therefore, the Vintegra approach to brand valuation blends both consumer-focused and financial-focused models. It uses a 360-degree format for evaluating brand performance - feedback from consumers or customers, channel partners, influencers, investors and other target groups. The methodology entails a step-by-step process detailed below.

BRAND STRENGTH ANALYSIS

A cumulative weighted average score is calculated to arrive at the overall Vintegra Index for the brand

ENVIRONMENTAL ANALYSIS

A thorough analysis of present and future macroeconomic conditions is undertaken to understand the factors which affect industry growth in the future. A situational analysis including the current scenario for the industry, competitive, trends and future outlooks is conducted.

MARKET PERFORMANCE ANALYSIS

A detailed view of the market performance of the company. This analysis provides a snapshot of the brand's performance as compared to other brands in the category and is used to arrive at the Market Performance index.

SALES FORECAST

Using the Market Performance Index and Environment Analysis, a future sales growth is arrived at.

BRAND VALUATION

Vintegra uses an income-based approach for arriving at a financial value for the Brand. Royalty Rate Determination. The Royalty rate is expressed as a percentage of sales and represents what the company would have to pay if it did not own the brand and only licensed it.