BRAND VALUATION: A RANKING APPROACH

Introduction. The issue of understanding the concept of “brand”, its characteristics, value and cost is becoming increasingly relevant both in terms of marketing and legal support, economic understanding and feasibility of the brand approach, accounting features, etc. This is necessary before the need to investigate what exactly is the value of a brand as an asset; the value of a brand in the understanding and perception of the consumer; that we have the ability to assess the value and value of a brand simultaneously and whether it is possible to model and forecast the growth of brand value and value in the future. With this vision in mind, it becomes imperative to learn the basic methods and methodology of brand valuation using the rating approach; brand valuation using the premium and loyalty factor methods; and brand valuation using a comprehensive and holistic perspective. Purpose. The purpose of the presented study is to analyse the most well-known and applied methods and methodologies for assessing the value of a brand as an asset using the rating approach. Materials and methods. The study uses analytical reports of the Interbrand division of Omnicom Group Inc. a global holding company for media, marketing and corporate communications, a specialised consulting company Brand Finance, the world leader in marketing research, consulting and analytics Kantar Group, and works of well-known authors whose research is the basis for understanding and measuring the value of a brand. In the course of the research, the following scientific methods were used: theoretical generalisation and grouping (to systematise methods, methodologies, brand valuation ratings and their analysis); formalisation, analysis and synthesis (to interpret analytical materials); logical generalisation of results (to draw conclusions). Results. The research article considers the issue of brand valuation using the rating approach and proves that the measurement of brand value is becoming more and more controversial every year, as brands are increasingly recognised as an asset and their value is included in company balance sheets. The study shows that for business entities it is not so important which rating of the best brands is correct, it is important to choose the methodology that is most appropriate for a particular business in a given period of time with further tracking of changes in brand value and comparisons between brands. Discussion. In further scientific research, it is proposed to focus on the analysis and peculiarities of applying the requirements of ISO 10668: Brand Valuation [13] and ISO 20671: Brand Evaluation [12] to assess the value of a brand and their correlation with International Financial Accounting Standards, which will make it possible to determine the strength of a brand as an intangible asset, the correctness of brand value assessment, differences in brand value when selling it and the consequences of changes in such value.