Brand Margin®
Our Brand Margin® methodology is designed to discover the true value of a brand – the premium that people are willing to pay for that brand over the alternatives.
Brand Margin® illustrates brand value by using an innovative ‘wisdom of crowds’ methodology. It offers a unique perspective from other rankings by investigating consumer perceptions of brand value rather than market value.
The way customers think of brands is critical; they are the only true deciders of brand value, not the experts or executives from the company itself. BVA BDRC has now applied Brand Margin® across multiple sectors, including FMCG, Hotels, and most recently, Airlines. We have also measured the impact on Brand Margin® of over a dozen advertising campaigns.
At its inception, Brand Margin® data informed the Marketing Week cover article on the 8th of May 2014: ‘How to prevent slashed prices – Four strategies to stop your brand becoming a commodity’. The research quantified how some brands (such as the AA and British Airways) have the power to command a strong price premium in their sector. Since then, Brand Margin® has gone from strength to strength and has been applied from sector to sector, remaining the definitive methodology for assessing brand value. More recently BVA BDRC CEO, Dr. Cris Tarrant published an essay in the Journal of Brand Strategy, outlining Brand Margin and its implications. Download the article here:
Never mind the love, smell the money: What is the ‘value-add’ of a brand?
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Why airline brand value matters
Adapting Brand Margin for the hospitality industry
