1、Portugal 25 2024 The annual report on the most valuable and strongest Portuguese brands July 2024Brand Finance Portugal 25 2 2024 All rights reserved.Brand Finance Plc.ContentsAbout Brand Finance 3Foreword 4David Haigh,Chairman&CEO,Brand FinanceForeword 5Pilar Alonso Ulloa,Managing Director,Iberia(S

2、pain,Portugal)and South AmericaRanking Analysis 8Brand Value Ranking(EURm)17Insights 18Impact of Sustainability on Consumer Decisions 19Robert Haigh,Strategy and Sustainability Director,Brand FinanceMethodology 21Our Services 27Our teams have experience across a wide range of disciplines from market

3、ing and market research,to brand strategy and visual identity,to tax and accounting.Unique combination of expertiseBrand Finance,a chartered accountancy firm regulated by the Institute of Chartered Accountants in England and Wales,is the first brand valuation consultancy to join the International Va

4、luation Standards Council.Our experts crafted standards(ISO 10668 and ISO 20671)and our methodology,certified by Austrian Standards,is officially approved by the Marketing Accountability Standards Board.Priding ourselves on technical credibilityWe put thousands of the worlds biggest brands to the te

5、st every year.Ranking brands across all sectors and countries,we publish over 100 reports annually.Quantifying the financial value of brandsBrand Finance was set up in 1996 with the aim of bridging the gap between marketing and finance.For more than 25 years,we have helped companies and organisation

6、s of all types to connect their brands to the bottom line.Bridging the gap between Marketing and FinanceAbout Brand FinanceThe worlds leading brand valuation consultancyFor business enquiries,please contact:Richard HaighManaging DFor media enquiries,please contact:Penny ErrickerGlobal Press EFor all

7、 other enquiries:+44 207 389 ForewordBrand Finance Portugal 25 4David Haigh Chairman&CEO,Brand FinanceBrand valuation helps companies understand the value of their brand and how it contributes to the overall value of the company.This important understanding can inform decision-making related to mark

8、eting and branding efforts,as well as provide a benchmark for future performance.It can also be used to help attract investors and secure financing,as a strong brand can be a valuable asset.Additionally,brand valuation can be useful in the event of a merger or acquisition,as it can help determine th

9、e value of the brand being acquired.Overall,brand valuation helps organisations understand the worth of their brand and how it fits into their overall business strategy.A strong brand can lead to improved business returns in several ways.First,a strong brand can help a company differentiate itself f

10、rom its competitors and establish a unique identity in the market,which can lead to increased customer loyalty and retention.This,in turn,can lead to higher sales and revenue.A strong brand can also help a company command a higher price for its products or services,as consumers are willing to pay mo

11、re for a brand they perceive as high-quality and trustworthy.In addition,a strong brand can help a company attract top talent,as employees may be more attracted to work for a well-known and reputable brand.Finally,a strong brand can provide a company with a competitive advantage and help it weather

12、economic downturns or industry disruptions.This year,Brand Finance has invested more in researching and understanding customer perception of brands across the world than ever before,with original research taking place in dozens of jurisdictions globally.The report you are reading is based on this ex

13、tensive original research,with the findings representing a catalyst for further conversations.If you want to help build a stronger brand,or if you want to better understand the value of your brand,please contact the Brand Finance team and I anytime.I look forward to the conversation and helping to b

14、uild a more profitable future for your brand.Brand Finance Portugal 25 5ForewordPilar Alonso Ulloa Managing Director,Iberia(Spain,Portugal)and South AmericaThe purchasing decision has become increasingly crucial.Consumers and investors are faced with important questions:what to buy,where to invest,a

15、nd who to trust.While price is a significant factor,it is not the sole determinant.Consumers and investors are placing growing importance on the impact of ESG policies and strategies when choosing products and services.Our research highlights how the most valuable brands distinguish themselves not o

16、nly through their strength but also through consumers perception of sustainability.The Brand Finance Sustainability Perception Index identifies the brands with the highest sustainability perception value.As part of our analysis,Brand Finance assesses the relative importance of sustainability as a va

17、lue driver for brands.Consumers tend to place a considerable amount of trust in brands sustainability communications.In fact,62%believe sustainability claims made by brands.However,according to our internal research,79%of consumers stated that they had reduced their consumption of a brand upon disco

18、vering its unsustainable practices.This reinforces the need for companies to communicate clearly,authentically,and accurately.Of the three pillars of ESG,recent years have seen a strong focus on the first pillar,the Environmental pillar.Companies have embraced the goals of the 2030 Agenda for Sustai

19、nable Development,with legislation aimed at protecting the environment.More recently,the social pillar(Social)has also played a significant role,addressing equality,diversity,and inclusion policies within the business landscape.However,what about the governance pillar?This pillar aims to mitigate an

20、d manage risks,including reputational risks.At Brand Finance,we emphasize reputation as a strategic asset that creates value in the medium and long term.We view corporate reputation management as a competitive differentiating factor.Through our extensive experience and data-driven approach,we demons

21、trate how effective reputation management impacts the value of brands and,consequently,the value of businesses.The following graph illustrates the impact of reputation on various business indicators and their brands:.Well-known brands with good brand equity have more leads,higher product trail,highe

22、r princes and stronger loyaltyA relative 1pt(/10)increase in reputation can lead to an increase in consideration of c.12.7%Customer ChoiceStock Price GrowthFinance CostsExecutive PayRegulatory RiskCustomer ChoiceProfitability&value growthMarketing12.7%The share value of businesses with strong brands

23、 grows 1.7x the speed of the marketStrong brand can borrow money at an average of 2.4%less than A-brandsCEOs of strong brands accept less than weaker brandsBrands with strong reputation are more likely to gain government contracts,and avoid legal and public actionStrong brands reduce risk and theref

24、ore reduce finance costs.Suppliers often want to work for strong brands.People want to work for well known brands,expect lower pay and are more likely to stay longerStrong brands make the public and regulators more accommodating1.7x2.4%CorporateIR&FinanceHRRisksLower finance&other costsEmployee attr

25、activenessReduce regulatory costsStrong brands help build profitability and the value of strongly branded businesses grow faster than other Gain InsightLeverage strategic insights to enhance your brands financial standing.Strategise effectively to position your brand as a market leader.Strategic Gui

26、danceBenchmark your brand against industry standards for a competitive edge in the corporate landscape.Benchmark Your PerformanceEmpower your marketing team with comprehensive knowledge about your brands financial value.Empower Your Marketing TeamOptimise communication channels by understanding and

27、articulating your brands financial significance.Enhance CommunicationDeepen your financial acumen and make well-informed decisions for corporate success.Deepen UnderstandingRequest your own Brand Value ReportBrand Finances Brand Value Report provides a complete breakdown of the assumptions,data sour

28、ces,and calculations used to determine your brands value,as well as brand equity research.Each report includes expert recommendations for growing brand value,driving performance,and gaining insights into your position against +6,000 brandsOriginal market research on global,market and sector leading

29、brands.Comprehensive coverage for market specific learnings that inform decision making.41 countriesBenchmark your brand against competitors and leverage industry level insights to empower your strategy.31 sectorsRobust market representation for a global perspective.+150,000 respondentsTake a longer

30、 view to track and learn from fast growing brands,market disrupters,and market leaders.Understand your brands standing in the market,what its known for relative to the competition,and what drives customer decision making so you can create a roadmap for success.8th consecutive yearStrategic InsightBr

31、and Finances Global Brand Equity Monitor Research utilises a comprehensive framework to track and measure the core building blocks that underpin strong brands,while delivering nuanced insights that direct strategy for understanding,maintaining and building brand strength.Brands,and customer relation

32、ship with brands,are complex.As such they require attention,direction and measured support if theyre to fulfil their potential.Our brand equity reports deliver expert insight and recommendations to power your brand strategies and valuation.Get Full Access to our Global DataRanking AnalysisGreen gian

33、t EDP tops Portugals brand rankings amid mixed signals +EDP tops Portuguese brands at 2.5 billion despite loyalty challenges +Top Portuguese brands weather economic storm:Galp and Pingo Doces resilience tested+Continentes 49%brand value surge:From supermarket to superbrand +Wholesale revolution:How

34、Recheio became Portugals fastest-growing brand +NOS rises to the top:Portugals strongest brand gets stronger +From watts to wealth:How EDPs eco-focus drives sustainable brand value Brand Finance Portugal 25 10Ranking AnalysisEDP(brand value up 4%to 2.5 billion)is most valuable Portuguese brandEDP(En

35、ergias de Portugal)has solidified its status as the most valuable Portuguese brand,with its brand value rising by 4%to reach EUR2.5 billion.This achievement reflects the companys resilience and strategic initiatives in a competitive market.EDPs growth aligns with the broader energy sector trend of s

36、ignificant increases in brand value.Despite this positive trajectory,the forecasted growth remains flat,indicating potential challenges ahead.One critical aspect affecting EDPs brand performance is the decline in its Brand Strength Index(BSI),which fell from 78.7 last year to 74.0 this year.This dro

37、p is primarily attributed to a decrease in forecasted revenue growth,price premium,and loyalty scores.The brands ability to command a price premium and retain customer loyalty has weakened,suggesting a need for EDP to revisit its value propositions and customer engagement strategies.Furthermore,the

38、brands rating for recommendation has experienced a substantial decline,reflecting potential issues in customer satisfaction or competitive positioning.Familiarity ratings also saw a slight fall,which may indicate a reduction in brand awareness or consumer engagement.However,there are positive signs

39、as well;consideration of the brand has increased significantly,demonstrating that EDP is highly regarded when consumers are making purchasing decisions.Additionally,the brands reputation has seen a modest improvement,suggesting that efforts to enhance corporate image and stakeholder trust are yieldi

40、ng results.While EDP faces challenges in maintaining revenue growth and customer loyalty,its position as the most valuable Portuguese brand highlights its strong market presence and strategic importance.The increase in brand consideration and reputation underscores the potential for EDP to leverage

41、its brand equity and drive future growth.To sustain and build upon this success,EDP will need to address the areas of decline and continue innovating to meet the evolving needs of its customers and market dynamics market dynamicsPilar Alonso Ulloa,Brand Finance DirectorBrand Finance Portugal 25 11Ga

42、lp Energia(brand value down 2%to 1.9 billion)and Pingo Doce(brand value down 5%to 1.1 billion)remain 2nd and 3rd most valuable Portuguese brandsDespite the overall positive performance in certain areas,Galp Energias brand value has decreased by 2%to EUR1.9 billion,maintaining its position as the sec

43、ond most valuable Portuguese brand.This dip in brand value comes amidst a complex backdrop where the companys profit has increased,in part due to big increases in refining margins.However,this was offset by a decline in crude production and oil prices.The mixed results highlight the volatility in th

44、e energy sector and the challenges Galp faces in balancing refining performance with upstream activities.The brands ability to navigate these fluctuations and maintain a strong market presence underscores its resilience,but the drop in brand value indicatesroom for strategic improvement to sustain a

45、nd enhance its market position.Pingo Doce,the third most valuable Portuguese brand,has experienced a 5%decrease in brand value to EUR1.1 billion.This decline is attributed to a drop Ranking AnalysisTop 10 Most Valuable Portuguese Brands 2024 Brand Finance Plc.202441531098726+4%-2%-5%+49%+13%+10%-2%+

46、10%0002110212.5 bn1.9 bn1.1 bn1.0 bn1.0 bn0.5 bn0.5 bn0.5 bn0zDDg+43%1.0 bng+57%0.9 bnHHthLin the brands strength,with Brand Finance finding a fall in its Brand Strength Index(BSI)from 81.7 to 80.0.Despite these challenges,Pingo Doce has managed to retain its rank within the top 10 most valuable bra

47、nds in Portugal,thanks to a robust promotional strategy that bolstered sales growth and reinforced the brands competitiveness.In the first nine months of the period,Pingo Doce achieved a significant sales increase.The brands proactive approach included opening eight new stores,closing one,and remode

48、lling 36 locations,demonstrating a commitment to enhancing customer experience and expanding its market footprint.Both Galp Energia and Pingo Doce have faced declines in brand value due to varying internal and external factors.For Galp,the challenge lies in managing the fluctuations in oil productio

49、n and prices,while for Pingo Doce,the focus must be on addressing the factors impacting its BSI.Nevertheless,their continued strong performance in respective markets and strategic initiatives highlight their enduring strengths and potential for future growth.By addressing the underlying issues and l

50、everaging their robust market strategies,both brands can aim to reverse the declines and strengthen their positions in the Portuguese market.Brand Finance Portugal 25 12Continente(brand value up 49%to 961 million)jumps from 6th to 4th most valuable Portuguese brandContinente has experienced a signif

51、icant surge in its brand value,increasing by 49%to reach EUR961 million,propelling it from the 6th to the 4th most valuable Portuguese brand.This impressive growth in brand value is primarily driven by a substantial rise in forecasted revenues,alongside broader macroeconomic benefits that have posit

52、ively impacted its business operations.The brands strategic initiatives and expansion into new business segments have played a crucial role in this upward trajectory.A key contributor to Continentes enhanced brand value is the groups new growth business segment,which includes the Wells pharmacy chai

53、n and the recently launched Cozinha Continente restaurant business.This segment reported the highest growth in sales and such ventures have diversified Continentes revenue streams and strengthened its market presence,demonstrating the brands ability to innovate and adapt to evolving consumer needs.T

54、he broader macroeconomic environment has also been favourable to Continente,providing a supportive backdrop for its business operations.Economic recovery and increased consumer spending have likely contributed to higher forecasted revenues,further enhancing the brands value.Continentes ability to ca

55、pitalise on these conditions reflects its robust strategic planning and market positioning.In addition to expanding its business segments,Continentes core supermarket operations have shown strong performance.The overall sales of Sonaes MC business have continued to increase,with big increases in sup

56、ermarket turnover.This growth was supported by both large-scale stores and smaller,proximity outlets,highlighting Continentes comprehensive approach to market coverage and customer reach.Continentes significant rise in brand value underscores its successful strategies and the positive impact of its

57、expansion into new business areas.By continuing to innovate and leverage favourable economic conditions,Continente is well-positioned to sustain its growth and further solidify its standing as one of Portugals most valuable brands.Pilar Alonso Ulloa,Brand Finance DirectorRanking AnalysisBrand Financ

58、e Portugal 25 13Ranking AnalysisBrand Value Change 2023-2024(%)Brand Finance Plc.202476%57%51%49%43%38%25%25%24%23%Recheio(brand value up 76%to 261 million)is the fastest growing Portuguese brandsRecheio,the wholesale cash-and-carry arm of Jernimo Martins,has emerged as the fastest-growing Portugues

59、e brand,with its brand value skyrocketing by 76%to reach EUR261 million.This substantial growth is attributed to a combination of factors,particularly forecast revenue growth and improved brand strength.Additionally,the enterprise value of Recheio has also seen a significant uptick,further bolsterin

60、g its brand value.Recheios sales continue to grow,primarily driven by the recovery of the HoReCa(Hotel,Restaurant,and Caf)channel,which had faced substantial challenges during the pandemic.The resurgence in the HoReCa sector has spurred demand for Recheios products,underscoring the brands pivotal ro

61、le in supplying this critical segment of the market.The increase in Recheios BSI from 61.4 to 67.7 reflects its strengthened market position and improved customer perceptions.This enhancement in brand strength is likely due to the companys effective strategies in customer engagement,product quality,

62、and service delivery.By capitalising on the recovery in the HoReCa channel,Recheio has been able to increase its market penetration and customer loyalty,contributing to its overall brand value.Furthermore,the favourable changes in the discount rate have positively impacted Recheios financial metrics

63、,making its future cash flows more valuable and thereby increasing its brand value.The combined effect of these financial and operational improvements has positioned Recheio as a dynamic and robust brand in the Portuguese market.Brand Finance Portugal 25 14Ranking Analysis Brand Finance Plc.2024Top

64、10 Strongest Portuguese Brands 202441531098726+0.7+2.4-1.8-0.2-3.8-2.0-2.0-0.502221130084.681.180.079.478.276.776.576.40gDgh-5.678.0H-77.6ohDzHNOS(brand value up 10%to 541 million)is strongest Portuguese brandNOS has solidified its status as the strongest Portuguese brand,with its brand value increa

65、sing by 10%to EUR541 million.The companys Brand Strength Index(BSI)has risen from 83.9 to 84.6,ensuring it retains the top position.The brand value of NOS is mainly due to a rise in revenues and a stronger brand.The relatively stable and high BSI,is a reflection of the strong market standing of NOS.

66、Additionally,favourable exchange rates have benefited the brand,enhancing its international competitiveness.These stable and positive financial indicators indicate a solid foundation for future growth,reflecting NOS robust operational performance and strategic planning.Fitchs expectations for NOS te

67、lecom revenue growth further underscore the brands strong outlook.With strong forecast telecom revenue increases,the company is poised to leverage several key market drivers.The recovery in roaming revenue,sustainedBrand Finance Portugal 25 15Ranking Analysisdemand for postpaid mobile and broadband

68、services,and the popularity of high-margin convergent bundles are expected to drive this growth.Although business-to-business revenue may face some variability,the overall revenue trajectory remains positive.NOS brand value and strength are further reinforced by its ability to adapt and thrive amids

69、t market fluctuations.The companys strategic focus on expanding high-demand servicesand improving operational efficiency positions it well for continued success.As the strongest Portuguese brand,NOS exemplifies resilience and forward-thinking strategies,ensuring its market leadership and continued g

70、rowth in a competitive landscape.Pilar Alonso Ulloa,Brand Finance DirectorBrand Finance Portugal 25 16Ranking AnalysisTop 10 Portuguese Brands by Sustainability Perceptions Value Brand Finance Plc.2024EURxx=Sustainability Perceptions Value x.x=Sustainability Perceptions Score/Sector Median4153109872

71、6E:1.02 S:1.00 G:0.97E:0.97 S:1.00 G:0.97E:0.99 S:0.98 G:0.97E:1.01 S:1.00 G:1.02E:1.00 S:1.00 G:1.00E:1.00 S:0.99 G:0.97E:1.03 S:1.00 G:1.03E:1.06 S:1.06 G:1.08E:1.04 S:1.04 G:1.07E:0.99 S:0.99 G:0.98258 m162 m72 m66 m65 m19 m18 m18 m42 m22 mzHggHoDDbLFrom watts to wealth:How EDPs eco-focus drives

72、sustainable brand value As the most valuable Portuguese brand,EDP also has the highest Sustainability Perceptions Value(EUR258 million)of any Portuguese brand included in the Brand Finance Sustainability Perceptions Index.This value represents the proportion of EDPs brand value attributable to its p

73、erceived sustainability on environmental,social,and governance topics.EDP has positioned itself as a leader in sustainability,with a strong public commitment to environmental management and renewable energy investment.This perception is reinforced by its explicit alignment with most UN Sustainable D

74、evelopment Goals.EDP positions its sustainability efforts as an integral part of business strategy,aimed at adding value to all stakeholders,including customers and suppliers.The brands clear communication of its sustainability objectives and achievements appears to resonate strongly with stakeholde

75、rs,solidifying its reputation as a sustainability leader in the energy sector.Following EDP,Galp Energia holds the second-highest Sustainability Perceptions Value at EUR162 million,while Meo ranks third with an SPV of EUR72 million.It is important to note that a brands position in the SPV table is n

76、ot an assessment of its overall sustainability performance,but rather indicates how much brand value it has tied up in sustainability perceptions.2024 Rank2023 RankBrandSector2024 Brand ValueBrand Value Change2023 Brand Value2024 Brand Rating2023 Brand Rating110EDPUtilities2,514+4.0%2,418AAAA+220Gal

77、p EnergiaOil&Gas1,926-2.2%1,969AA+AA+330Pingo DoceRetail1,121-5.0%1,181AAA-AAA-462ContinenteRetail961+48.9%645AA+AA+541Millennium BCPBanking954+12.7%846AAA-AA+651Caixa Geral de DepositosBanking952+43.2%665AA+AAA-770MeoTelecoms934+56.6%596AA+AAA-892NosTelecoms541+10.2%491AAAAAA-981FidelidadeInsurance

78、520-1.7%529AA10100Super BockBeers473+9.8%430AA+AA+11122Mota-EngilEngineering12111SagresBeers13-3GalloFood14140TAPAirlines15202RecheioRetail16160WortenRetail17131Banco BPIBanking18151Delta CafsSoft Drinks19212The Navigator CompanyEngineering20171CTTLogistics21191BrisaCommercial Services22242PestanaHo

79、tels23230Banco MontepioBanking24272Novo BancoBanking25262Corticeira AmorimEngineeringBrand Finance Portugal 25 17Brand Value Ranking(EURm)Top 25 most valuable Portuguese brands 1-25InsightsBrand Finance Portugal 25 19Brand Finance Portugal 25 19The Brand Finance Sustainability Index is a flagship st

80、udy that places a financial value on sustainability perceptions for the first time.Its second iteration launched earlier this year,quantifying the value of sustainability perceptions and the gap between perceptions and actual sustainability performance.As part of its analysis,Brand Finance evaluates

81、 the role that sustainability plays in driving choice in each industry.The firm researches the attitudes of over 150,000 members of the general public from over 40 countries about over 6,000 brands.Respondents are asked a wide range of questions,including marketing funnel questions about awareness,f

82、amiliarity and consideration.They are also asked the following question:“Which of these statements,if any,do you think apply to Brand X?”The list of statements varies by sector,but typically includes attributes such as value for money,reliable,etc.Using the response data,Brand Finance evaluates the

83、role that each attribute plays in driving choice using an analytical technique known as brand drivers analysis.Drivers analysis involves running multiple correlation analyses between the consideration of usage of a brand,and the various brand attributes to determine how much explanatory value each a

84、ttribute has.The results showed a varying role for sustainability across sectors.For example,a lower role for sustainability in consideration is observed in Airlines (6.5%)and Technology(6.6%),where attributes like trustworthiness and customer service are relatively more important.In contrast,sector

85、s like Supermarkets (11.1%)and Apparel(9.6%)have a more powerful role for sustainability.Further,the research indicates a significantly enhanced role for sustainability in driving choice in the luxury or premium market segment.This was evaluated in the Auto,Apparel,and Cosmetics sectors,where sustai

86、nability driver scores are over 1.5 times higher than for the sector overall.Robert Haigh Strategy and Sustainability Director,Brand FinanceImpact of Sustainability on Consumer DecisionsBrand Finance Portugal 25 20Brand Finance Portugal 25 20There may be multiple effects at play here.A brands sustai

87、nability commitments may imply a slight cost increase that necessitates more premium positioning.Premium-segment consumers also have less price sensitivity,enabling them to seek improvements on other attributes,including sustainability.Lastly,at the premium end of many markets,brands become more tha

88、n just a guarantee of attributes to the consumertheir products also signal the purchasers status,taste,identity,or ethics to others.This variation in the role of sustainability has significant implications for the financial returns brands can hope to gain from their sustainability action and communi

89、cation.Brand Finance also determined the relative importance of the environmental,social and governance(ESG)aspects of sustainability,which revealed significant variation across sectors.For example,the environmental dimension contributes most to the sustainability driver in Oil&Gas,as one might expe

90、ct from the growing urgency of action on climate change and the energy transition.In a sector like Insurance where fair dealing and prudent management are paramount,governance is the most important dimension.Despite a spectrum of values for all ESG attributes,social sustainability had the smallest e

91、ffect on consumer consideration across all sectors this year.Emphasis on climate action has steered ESG efforts and hiring practices of many businesses,to the point where many stakeholders view sustainability as exclusively environmental.This comes despite the UN Sustainable Development Goals clearl

92、y spanning many social and governance topics.Governance to combat financial misdeeds has been a priority for many years,and the emergence of generative AI and its potential for misuse further enhances the dimensions importance.The resulting crowding out of social sustainability is a concern of both

93、sustainability professionals and community-related stakeholder groups.Insights|Impact of Sustainability on Consumer DecisionsMethodologyDefinitionsEnterprise ValueBranded Business ValueBrand ContributionMetaFacebookFacebookFacebook+Enterprise ValueThe value of the entire enterprise,made up of multip

94、le branded businesses.Where a company has a purely mono-branded architecture,the enterprise value is the same as branded business value.Brand Value+Branded Business Value The value of a single branded business operating under the subject brand.A brand should be viewed in the context of the business

95、in which it operates.Brand Finance always conducts a branded business valuation as part of any brand valuation.We evaluate the full brand value chain in order to understand the links between marketing investment,brand-tracking data,and stakeholder behaviour.+Brand ContributionThe overall uplift in s

96、hareholder value that the business derives from owning the brand rather than operating a generic brand.The brand values contained in our league tables are those of the potentially transferable brand assets only,making brand contribution a wider concept.An assessment of overall brand contribution to

97、a business provides additional insights to help optimise performance.+Brand ValueThe value of the trade mark and associated marketing IP within the branded business.Brand Finance helped to craft the internationally recognised standard on Brand Valuation ISO 10668.It defines brand as a marketing-rela

98、ted intangible asset including,but not limited to,names,terms,signs,symbols,logos,and designs,intended to identify goods,services or entities,creating distinctive images and associations in the minds of stakeholders,thereby generating economic benefits.Brand ValueBrand Finance Portugal 25 22What is

99、Brand Value?Brand value refers to the present value of earnings specifically related to brand reputation.Organisations own and control these earnings by owning trademark rights.All brand valuation methodologies are essentially trying to identify this,although the approach and assumptions differ.As a

100、 result published brand values can be different.These differences are similar to the way equity analysts provide business valuations that are different to one another.The only way you find out the“real”value is by looking at what people really pay.As a result,Brand Finance always incorporates a revi

101、ew of what users of brands actually pay for the use of brands in the form of brand royalty agreements,which are found in more or less every sector in the world.This is sometimes known as the“Royalty Relief”methodology and is by far the most widely used approach for brand valuations since it is groun

102、ded in reality.It is the basis for a public rankings but we always augment it with a real understanding of peoples perceptions and their effects on demand from our database of market research on over 6000 brands in over 41 markets.Disclaimer Brand Finance has produced this study with an independent

103、and unbiased analysis.The values derived and opinions produced in this study are based only on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear.Brand Finance accepts no responsibility and will not be liable in the event that the

104、publicly available information relied upon is subsequently found to be inaccurate.The opinions and financial analysis expressed in the report are not to be construed as providing investment or business advice.Brand Finance does not intend the report to be relied upon for any reason and excludes all

105、liability to any body,government or organisation.Brand is defined as a bundle of trademarks and associated IP which can be used to take advantage of the perceptions of all stakeholders to provide a variety of economic benefits to the entity.Brand Valuation MethodologyBrand Finance Portugal 25 231.Br

106、and ImpactWe review what brands already pay in royalty agreements.This is augmented by an analysis of how brands impact profitability in the sector versus generic brands.This results in a range of possible royalties that could be charged in the sector for brands(for example a range of 0%to 2%of reve

107、nue).We adjust the rate higher or lower for brands by analysing Brand Strength.We analyse brand strength by looking at three core pillars:“Inputs”which are activities supporting the future strength of the brand;“Equity”which are real current perceptions sourced from our market research and other dat

108、a partners;“Output”which are brand-related performance measures such as market share.Each brand is assigned a Brand Strength Index(BSI)score out of 100,which feeds into the brand value calculation.Based on the score,each brand is assigned a corresponding Brand Rating up to AAA+in a format similar to

109、 a credit rating.2.Brand StrengthThe BSI score is applied to the royalty range to arrive at a royalty rate.For example,if the royalty range in a sector is 0-5%and a brand has a BSI score of 80 out of 100,then an appropriate royalty rate for the use of this brand in the given sector will be 4%.3.Bran

110、d Impact x Brand StrengthWe determine brand-specific revenues as a proportion of parent company revenues attributable to the brand in question and forecast those revenues by analysing historic revenues,equity analyst forecasts,and economic growth rates.We then apply the royalty rate to the forecast

111、revenues to derive brand revenues and apply the relevant valuation assumptions to arrive at a discounted,post-tax present value which equals the brand value.4.Forecast Brand Value Calculation credibilityBrand Valuation MethodologyBrand Finance Portugal 25 24Brand Strength MethodologyBrand Strength I

112、ndexMarketing InvestmentBusiness PerformanceStakeholder EquityWidely recognised factors deployed by marketers to create brand loyalty and market share.Perceptions of the brand among different stakeholder groups,with customers being the most important.Quantitative market and financial measures repres

113、enting the success of the brand in achieving price and volume premium.Analytical rigour and transparency are at the heart of our approach to brand measurement at Brand Finance.Therefore,in order to adequately understand the strength of brands we conduct a structured,quantitative review of data that

114、reflect the Brand Value Chain of brand-building activities,leading to brand awareness,perceptions and onwards to brand-influenced customer behaviour.To manage the Brand Value Chain process effectively we create and use the“Brand Strength Index”(BSI).This index is essentially a modified Balanced Scor

115、ecard split between the three core pillars of the Brand Value Chain:Brand Inputs,Brand Equity and Brand Performance.Brand Finance Portugal 25 251.Attribute Selection and WeightingAlthough we follow a general structure incorporating the three pillars(Brand Inputs,Brand Equity and Brand Performance),t

116、he attributes included are different depending on the sector.A brand strength index for a luxury apparel brand will differ in structure from an index designed for a telecommunications brand.An index for luxury apparel brand may emphasize the exclusiveness,word of mouth recommendation,and price premi

117、um,whereas an index for a telecommunications company may emphasis customer service and ARPU as important metrics.These attributes are weighted according to their perceived importance in driving the following pillar:Brand Investment measures in driving Brand Equity;Brand Equity measures for Brand-Rel

118、ated Business Performance measures;and finally the relevance of Brand-Related Business Performance measures for driving business value.In order to convert raw data in to scores out of 10 that are comparable between attributes within the scorecard,we then have to benchmark each attribute.We do this b

119、y reviewing the distribution of the underlying data and creating a floor and ceiling based on that distribution.Each brand is assigned a Brand Strength Index(BSI)score out of 100,which feeds into the brand value calculation.Based on the score,each brand is assigned a corresponding rating up to AAA+i

120、n a format similar to a credit rating.Analysing the three brand strength measures helps inform managers of a brands potential for future success.3.Benchmarking and Final ScoringBrands ability to influence purchase depends primarily on peoples perceptions.Therefore,the majority of the Brand Strength

121、Index is derived from Brand Finances proprietary Global Brand Equity Research Monitor research,a quantitative study of a sample of over 100,000 people from the general public on their perceptions of over 4,000 brands in over 25 sectors and 37 countries.However,at Brand Finance we also believe that t

122、here are other measures that can be used to fill gaps that survey research may not capture.These include total investment levels for example in marketing,R&D,innovation expenditure,that can a better guide to future performance than surveys.They also include online measures such as ratings by review

123、sites and social media engagement that can give a more granular understanding of marketing effectiveness.Finally they also include real behaviour for example net additions,customer churn and market share,to overcome the tendency for surveys to incorporate intended behaviour rather than real.Over a p

124、eriod of 3 to 4 months each year,we collect all this data across all the brands in our study in order to accurately measure their comparative strength.2.Data CollectionBrand Strength MethodologyBrand Finance Portugal 25 26Our ServicesBrand Research What gets measured.+Brand Audits+Primary Research+S

125、yndicated Studies+Brand Scorecards+Research Analytics+Soft PowerAre we building our brands strength effectively?How do I track and develop my brand equity?How strong are my competitors brands?Are there any holes in my existing brand tracker?What do different stakeholders think of my brand?Brand Eval

126、uations are essential for understanding the strength of your brand against your competitors.Brand Strength is a key indicator of future brand value growth whether identifying the drivers of value or avoiding the areas of weakness,measuring your brand is the only way to manage it effectively.Question

127、s we can help answer:Brand Finance Portugal 25 28Consulting ServicesMake branding decisions using hard dataBrand Finance Portugal 25 28In-depth external benchmarking comparisons against direct competitors across key KPIs through the Brand Strength Index framework.BenchmarkingDiagnose Brand Strengths

128、&Weaknesses What is my brand known,and not known for?How do I leverage or optimize my brand position to grow brand value?Brand Associations&Market PositioningStatistical correlation analysis to understand what is important in driving Brand Consideration,Reputation,Brand Strength and Value.Drivers An

129、alysisBrand Insights Make your brands business case.Consulting ServicesBrand Finance Portugal 25 29Brand Finance Portugal 25 30+Brand Impact Analysis+Tax&Transfer Pricing+Litigation Support+M&A Due Diligence+Fair Value Exercises+Investor ReportingBrand Valuations are used for a variety of purposes,i

130、ncluding tax,finance,and marketing.Being the interpreter between the language of marketers and finance teams they provide structure for both to work together to maximise returns.How much is my brand worth?How much should I invest in marketing?How much damage does brand misuse cause?Am I tax complian

131、t with the latest transfer pricing?How do I unlock value in a brand acquisition?Questions we can help answer:Brand Valuation Make your brands business case.Consulting ServicesOnce you understand the value of your brand,you can use it as tool to understand the business impacts of strategic branding d

132、ecisions in terms of real financial returns.Which brand positioning do customers value most?What are our best brand extension opportunities in other categories and markets?Am I licensing my brand effectively?Have I fully optimised my brand portfolio?Am I carrying dead weight?Should I transfer my bra

133、nd immediately?Is a masterbrand strategy the right choice for my business?+Brand Positioning +Brand Architecture+Franchising&Licensing +Brand Transition+Marketing Mix Modelling +Sponsorship StrategyQuestions we can help answer:Brand Strategy Make branding decisions with your eyes wide open.Consultin

134、g ServicesBrand Finance Portugal 25 31Sustainability and ESG have never been more important considerations for marketers,finance professionals,and the brands they serve.Our sustainability services bring clarity,allowing you to make the right decisions to add value,protect yourself from risk,and do t

135、he right thing.+Perceptions Evaluation and Tracking +Sustainability ROI Analysis +Competitor Insights and Positioning Recommendations +Materiality Exercises +Stakeholder Engagement and Workshops +Sustainability Reporting and Disclosure Support How important is sustainability in driving the choices o

136、f customers,employees,and investors?Which sustainability issues are most relevant to my brand?How sustainable is my brand perceived to be versus competitors?What is the potential value of enhancing perceptions?Could value be at risk?If so,how much?How do I secure investment or budget allocation?How

137、do I improve performance and perceptions?Questions we can help answer:Brand Sustainability Understand perceptions and align them with performance.Consulting ServicesBrand Finance Portugal 25 32Sponsorships are often amongst the most extensive,influential,and expensive brand building activities a com

138、pany can undertake.We use the same techniques applied in brand valuation,such as research,financial modelling,and strategic analysis.This approach helps marketing and finance managers to understand the effectiveness of sponsorships and maximise ROI.Advertising equivalency,and traditional research in

139、terpretation of sponsorships,fails to adequately address key questions around brand building and value creation.Brand Finance takes a broader view to understand sponsorships in the context of achieving brand and business objectives.Can I develop a sponsorship strategy to match commercial objectives?

140、Is the partnership a good fit?What is the short-term impact on business performance?What impacts there on long-term brand building metrics?What is my financial return from the sponsorship investment?Should the partnership be renewed,and if so,at what price?How does my sports partnership compare to t

141、he market?Questions we can help answer:Sponsorship ServicesMaximise value from your sponsorships.Consulting Services+Sponsorship Strategy+Partnership Opportunity Analysis+Return on Investment Analysis+Partnership Tracking+Sports Investment Due Diligence+Sponsorship Prospectus building+Activation Mea

142、surement&StrategyBrand Finance Portugal 25 33Brand Dialogue Limited is a member of the Brand Finance Plc Group.With strategic planning and creative thinking,we develop communications plans to create dialogue with stakeholders that drives brand value.Our approach is integrated,employing tailored solu

143、tions for our clients across PR and marketing activations,to deliver strategic campaigns,helping us to establish and sustain strong client relationships.We also have a specific focus on geographic branding,including supporting nation brands and brands with a geographical indication(GI).Brand Dialogu

144、e Services+Brand&Communications Strategy+Campaign Planning+Market Research&Insights+Media AnalysisResearch,Strategy&Measurement+Promotional Events+Conference Management+Native Advertising+Retail MarketingMarketing&Events+Crisis Communications+Brand Positioning&Reputation+Corporate Social Responsibil

145、ity+Geographic BrandingStrategic Communications+Press Releases+Bespoke Publications,Blogs&Newsletters+Marketing Collateral Design+Social Media ContentContent Creation+Media Relations+Press Trips&Events+Strategic Partnerships&Influencer Outreach+Social Media ManagementPublic Relations&CommunicationsF

146、or further information on our services and valuation experience,please contact your local representative:Market ContactEmailAfricaJeremy Sampsonj.sampsonbrandfi Asia Pacifi cAlex Haigha.haighbrandfi AustraliaMark Crowem.crowebrandfi BrazilEduardo Chavese.chavesbrandfi CanadaLaurence Newelll.newellbr

147、andfi China Scott Chens.chenbrandfi Denmark/Norway/SwedenCristobal Pohle Vazquezc.pohlebrandfi East Africa Walter Seremw.serembrandfi FranceBertrand Chovetb.chovetbrandfi Germany/Austria/SwitzerlandUlf-Brun Drechselu.drechselbrandfi IndiaAjimon Francisa.francisbrandfi IrelandAnnie Browna.brownbrandf

148、i ItalyMassimo Pizzom.pizzobrandfi MexicoLaurence Newelll.newellbrandfi Middle EastAndrew Campbella.campbellbrandfi NigeriaTunde Odumerut.odumerubrandfi PhilippinesGary de Ocampog.deocampobrandfi PolandKonrad Jagodzinskik.jagodzinskibrandfi PortugalPilar Alonso Ulloap.alonsobrandfi RomaniaMihai Bogd

149、anm.bogdanbrandfi South AmericaPilar Alonso Ulloap.alonsobrandfi SpainPilar Alonso Ulloap.alonsobrandfi Sri LankaDhanushika Shanmuganathand.shanmuganathanbrandfi SwedenMike Rocham.rochabrandfi TurkeyMuhterem Ilgnerm.ilgunerbrandfi United KingdomAnnie Browna.brownbrandfi USALaurence Newelll.newellbrandfi VietnamQuyen Luongq.luongbrandfi Brand Finance Network Brand Finance Portugal 25 35Contact usT:+44(0)20 7389 9400E:W: