Brand Valuation Project Meets Major Milestones

Frank Findley (MSW.ARS) and Lori Koehn (General Motors) presented findings at the August MASB meeting, indicating that the trials and their Analytics Sub-Team are well on the way to identifying an “ideal metric” for Consumer Brand Strength, demonstrating, empirically, its relationship to market results (market share, volume and price premium).

At the same time, Jonathan Short (PepsiCo/Frito-Lay) and Jim Meier (MillerCoors) revealed their Finance SubTeam’s convention around a simple Discounted Cash Flow model using the Brand Strength measure to advise future-year assumptions (e.g. pricing, volume growth/decline).

Once tested internally by project participants, the Brand Investment and Valuation Project (BIV), now three years old, will come to completion in 2015.

“Building these bridges empirically, and highlighting the measures as they link to each other, will be phenomenally powerful for our decision making process. It will allow us to make more informed ‘investment’ decisions based on a brand’s future cash flows, meet organic growth targets more often, and learn how to improve performance as measured by customer, market and financial outcomes.”