Well I am back with Part 3 of my blog on Why Branding Matters in Higher Education. I had hoped to get to this sooner but I have been on the road with my son at lacrosse tournaments the past few weeks. BTW, they went 6-1 this past weekend and lost in the final 6-5 at the Chicago Summer Classic. But I digress. The reason we are here today is to discuss Brand Value.
John Stewart, no not the Daily Show guy, John Stewart the former CEO of Quaker Oats said in early 1900’s, “If this business were split up, I would give you the land and bricks and mortar, and I would take the brands and trademarks and I would fare better than you.” We could take this discussion many different routes…about how brand value is determined, the accounting aspects of Net Asset Value and so on but we won’t. Thankfully, right? Let’s keep it simple.
According to the McKinsey Quarterly Analysis about ½ of the market value of the Fortune 250 is tied to intangible assets. Assets like their brands. Many of us have heard of Interbrand, the internationally renowned brand consultancy. Each year they rank the top 100 best global brands and their monetary value. They take a look at three aspects of a company in their methodology:
- Overall financial performance
- Role of the brand in the consumer purchasing decision
- Brand strength which is a measurement form 0 to 100 with 100 being perfect and they look at this across 10 different dimensions of brand activation These are things like brand consistency, so is the brand consistent in look, and brand differentiation, does the brand tout how and why they are different.
They combine all this data and come up with this list and the valuation. Here are the top 5 Global brand for 2011 in reverse order with their brand values:
|$71 Billion (on revenue of only $42 Billion)|
Pretty incredible and a pretty good reason to engage in branding for your educational institute or company. Whether you’re Coke, a service provider, a small for-profit college or West Virginia University, brand matters! That’s my story and I am sticking to it. Til next time!