Citation
(2001), "Brand value reporting (from Brand Finance)", International Journal of Retail & Distribution Management, Vol. 29 No. 7. https://doi.org/10.1108/ijrdm.2001.08929gab.003
Publisher
:Emerald Group Publishing Limited
Copyright © 2001, MCB UP Limited
Brand value reporting (from Brand Finance)
Brand value reporting (from Brand Finance)
Brand Finance Plc has released the fourth instalment of its brand value reporting survey of city analysts. The report takes into account the views of 292 city analysts and 47 investor relations executives of FTSE 350 companies. The report also reviews the accounts of the FTSE 350.
Highlights and issues arising from this year's report include:
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A total of 78 per cent of analysts and 72 per cent of companies thought that public companies should publish more information on brand values.
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A total of 77 per cent of analysts and companies questioned believe that branding will become more important in the next five years.
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A total of 68 per cent of analysts and companies questioned believe that branding is becoming more important in M&A activity.
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The report measures the performance of individual companies based on the views of equity analysts following those stocks. Across all 11 criteria measured Skandia achieved the highest score in the Brand Finance Report 2000, with a total ranking of 90 per cent. WPP was second, with Securitas third (see Table II).
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BMW was rated as having the best corporate brand, Akzo Noble had the best annual report. The CEO and CFO of Securitas were the highest rated CEO and CFO respectively. Skandia was rated highest for being focussed on shareholder value.
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While the report revealed analysts' strong demands for better company reporting and particularly for increased marketing/brand value disclosure, analysis of the FTSE 350 accounts shows that fewer companies than last year are reporting brand values in their balance sheet.
This report shows the growing importance of marketing and particularly brands. The city and investors are clearly after more information on the marketing performance of companies as these impact more and more on the bottom line. Investor relations practises must adjust to provide investors with the information required, while accounting practises must make it easier for companies to write in these important assets.