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Evaluation of the brand of a trading company

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  • B. G. Kiselev

Abstract

The aim of the article is to test basing on real data one of the methods to evaluate the cost of the brand of a trading company and to confirm the effectiveness of its branding. The brand of a trading company is one of its assets (resources) and the most effective one judging on the «cost / result» ratio. The availability of the brand (trade marks) presents the basis for competitiveness and development of the company. Evaluation of the brand presents not only a theoretical but also a practical task. The interaction between theoretical research and practical calculations allows to construct a theory of evaluation of intangible assets and, in practice, to increase the market value of the company. The article presents a brief analysis of the Premium Profit method of brand evaluation and calculation of the cost of brands owned by CB trading company. The results show the effectiveness of branding. The method of such brand effectiveness calculation can be applied in trade companies as well as on other companies having a well arranged calculation of sell and profit of certain types of products or services. Methods of calculating the value of the brand (trade marks) is recommended for traders to increase their capitalization and competitiveness.

Suggested Citation

  • B. G. Kiselev, 2016. "Evaluation of the brand of a trading company," Russian Journal of Industrial Economics, MISIS, issue 4.
    • Handle: RePEc:ach:journl:y:2016:id:487
    DOI: 10.17073/2072-1633-2015-4-61-70
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