A number of studies have shown that the percentage of a company’s value that is unaccounted for by tangible assets has increased. From 50% to 90% of a company’s total value is now attributable to factors other than tangible assets. The message is clear – strong brands = real impact.
• In December of 1993, Eclipse Holdings purchased the PanAm trademark for $1.3 million.
• Disney paid more than five times book value for Capital Cities/ABC*.
• In 1988, Phillip Morris Co. acquired Kraft Foods for $12.9 billion, $11.6 billion over book value.
Are you building a valuable brand?
*Source: Schultz, Don E. and Anders Gronstedt, “Making Marcom an Investment: Market-driven accounting system splits spending into business-building and brand-building activities.” Marketing Management. Fall 1997, p. 45.
The Blake Project Can Help: The Brand Positioning Workshop
Branding Strategy Insider is a service of The Blake Project: A strategic brand consultancy specializing in Brand Research, Brand Strategy, Brand Licensing and Brand Education
