Services on Demand
On-line version ISSN 1676-5648
CAPUTO, Érica Saião; MACEDO, Marcelo Alvaro da Silva and NOGUEIRA, Heloísa Guimarães Peixoto. Brand evaluation: an application in the case of Bombril. RAE electron. [online]. 2008, vol.7, n.2. ISSN 1676-5648. http://dx.doi.org/10.1590/S1676-56482008000200005.
This work aims to discuss two key issues: how brand contributes to the economic performance of companies and how the value of the brand is determined. The objective of the research is to value the Bombril brand, which is considered to be strong in the steel wool sponge segment, in which there is basically no differentiation between products, being characterized as a commodity. The main assumption of the applied model is that a strong brand allows for the practice of prices that are higher than those of companies that do not have the same brand recognition. This being so, in order to calculate brand value two cash flows were generated; one relative to the value of the company that has the brand attribute and the other that does not have this attribute. What differentiates the flows is marginal cash generation, which corresponds to the brand's added value. The results show that the brand's value, thus obtained, is R$ 190 million, based on accounting and financial information from 2005.
Keywords : Brands; intangible benefits; commodity; premium price; market value.