Methodology Overview

What is the Corporate Branding Index?

  • CoreBrand’s proprietary database of financial information, advertising spending, and brand image measures for over 1,000 of the world’s best brands
  • Financial information acquired public sources — ValueLine, Bloomberg, Thomson Financial and others
  • Brand image ratings (BrandPower, familiarity, favorability) are derived from annual survey of more than 8,000 business decision-makers from the top 20% of U.S. businesses. This senior business audience (VP level and above) represents the investment community, potential business partners, and business customers across 54 key industries.

Survey audience

Individuals impacting corporate brands from two important perspectives:

Business decision-makers
  • Executives at companies with sales revenue greater than $50 million
  • 80% involved in B2B purchase decisions
    – 90% determine purchase needs
    – 72% select specific companies partners
    – 68% authorize purchases
 High-level consumers
  • Valuable demographics
    – 72% ages 35+
    – 83% HH size 2 or more
    – 87% college degrees
    – 74% above $75K HHI

BrandPower methodology

BrandPower is a measure of size (familiarity) and quality (favorability).

Familiarity
A weighted percentage of survey respondents who are familiar with the brand being evaluated. Familiarity is rated on a five point scale, respondents are considered to be familiar with a brand if they state that they know more than the company name only.

Favorability
Those familiar with a corporation are then asked favorability dimensions, overall reputation, perception of management, and investment potential. Favorability attributes are evaluated on a 4-point scale.

Familiarity and favorability are then combined into a single BrandPower score.

BrandPower rankings

BrandPower ranking compare the size and quality of a brand to all other brands in the Corporate Branding Index. The BrandPower rankings provide a market-view evaluation of brand strength regardless of industry affiliation.

Measuring CoreBrand Equity

The corporate brand is an asset that contributes millions or even billions of dollars to a company’s stock price and market valuation.

  • Understanding your corporate brand’s value is the first step toward managing this fundamental asset.
  • Brand strength data from the Corporate Branding Index are updated quarterly.
  • Brand strength ratings and each company’s financial data are used in CoreBrand’s statistical model to determine the percentage of market capitalization that is directly derived from the corporate brand. Once that percentage is calculated, a dollar value is assigned.

Determining the value of the brand

A base level of BrandPower will be achieved based on a company’s size in revenue and shareholder value alone. Any level of BrandPower above that base level is generated by a company’s brand (either intentionally or accidentally).

  • Our statistical model determines how changes in the brand drive changes in stock performance.
  • A change in BrandPower can have a significant impact on its stock price and the dollar value of the brand.

The effect of CoreBrand Power on market capitalization depends on familiarity/favorability mix. Stronger brands generate a higher impact on equity.

  • Increasing BrandPower increased the brand’s ability to drive premium value for the company.
  • CoreBrand Equity can be evaluated for the return it generates for a given investment in brand support.