Understanding, measuring and using brand equity.

Paul Dyson
Andy Farr
Nigel Hollis

Millward Brown International, United Kingdom

INTRODUCTION

It is a well recognised but still widely debated concept that there is a financial value which attaches to a brand name. A brand can and should be an enduring and profitable asset for its owners. Recognizing this fact, many brand owners have sought to place the monetary value of a brand on the balance sheet, in the same way that they would that of a capital asset, such as a factory.

A brand, however, does not have foundations built of concrete and steel. When John Stuart, then Chairman of Quaker Oats Ltd., stated,

'If the business were split up, I would take the brands, trademarks, and goodwill, and you could have all the bricks and mortar - and I would fare better than you'