The Financial Value of Brands (FVB) Project was created in 2020 as the merger of the Financial Reporting of Customer and Brand (FRCB) Project (formerly Improving Financial Reporting ) and the Brand Investment and Valuation (BIV) Project, as the two projects were converging on similar agendas.
ISSUE
Demand intangibles are not well reported & Marketing’s role in generating cash flows is obscure.
PROJECT OBJECTIVE
Generate practical guidance for financially valuing marketing outcomes and in so doing encourage adherence to ISO 20671 for regular brand evaluation.
STRATEGY
Publish illustrative case studies and proactively assist brand owners in developing their specific financial valuation approach. Demonstrate the connection of marketing to cash flows, particularly the linkages between customer franchise, brand preference, core sales, and profits.
EXPECTED OUTCOME
Brand owners will systematically monitor the financial value of their brands and the corresponding drivers and, at some point, consider reporting this material information as appropriate.