Interbrand’s Brand Valuation methodology seeks to provide a rich and insightful analysis of your corporate brand—providing a clear picture of how your brand is contributing to business results today—together with a road map of activities to ensure that it is delivering even more tomorrow.
A strategic tool for ongoing brand management, Brand Valuation brings market, brand, competitor, and financial data into a single framework that assesses the performance of a brand, identifies areas for improvement, and quantifies the financial impact of investing in the brand.
Best Pharma Brands criteria for inclusion
There are several criteria for inclusion in the InterbrandHealth Best Pharma Brands report, the first biopharmaceutical company ranking of its kind. A brand must be an established biopharmaceutical company with a global presence. In measurable terms, this requires that:
• The parent company generates revenue from the sale of prescription products
• The corporate brand has generated global awareness among healthcare professionals (General Practitioners, Specialists, Pharmacists, Nurses, Policymakers, and Payers) and is the primary, external-facing manufacturer brand
• The parent company is publicly traded and there is sufficient publicly available financial data that indicate the ratio of revenues generated from prescription drug sales
• The company keeps an active pipeline of potential future prescription medicines that generate a positive forecast for longer-term economic profit
In 1988, Interbrand pioneered Brand Valuation, harnessing our deep understanding of the impact strong brands have on the key stakeholder groups that influence business performance—namely, current and prospective customers, employees, and investors. Strong brands influence customer choice and create loyalty; attract, retain, and motivate talent; and lower the cost of financing. Our Brand Valuation methodology has been specifically designed to take all of these factors into account.
Interbrand was the first company to have its methodology certified as compliant with the requirements of ISO 10668 (requirements for monetary Brand Valuation) and has played a key role in the development of the standard itself. There are three key components analyzed in all of Interbrand’s brand valuations: the financial performance of the branded products or services, the role the brand plays in purchase decisions, and the brand’s competitive strength.
This process measures the overall financial return to an organization’s investors, or its ‘economic profit.’ Economic profit is the after-tax operating profit of the brand minus a charge for the capital used to generate the brand’s revenue and margins. InterbrandHealth considers revenue generated from prescription drug sales for the financial analysis. Revenue from the sale of consumer or over-the-counter health products, medical devices, diagnostics, and animal health products is excluded from this analysis.
Role of Brand
Role of Brand measures the portion of a prescribing decision that can be attributed to the corporate brand, relative to other factors (e.g., product efficacy and safety, product formulation, other product features, and/or reimbursement). The Role of Brand Index quantifies the corporate brand’s influence as a percentage. The Role of Brand Index for Best Pharma Brands is calculated from data generated from a global online survey of healthcare professionals (HCPs) only, as they are the primary decision makers in a prescribing context.
Brand Strength measures the ability of the corporate brand to create loyalty and, therefore, sustain demand and profit into the future. Brand Strength is based on an evaluation of ten factors that Interbrand believes make a strong brand. These factors are: Clarity, Commitment, Protection, Responsiveness, Authenticity, Relevance, Differentiation, Consistency, Presence, and Understanding. Performance on these factors is evaluated relative to other brands in the biopharmaceutical industry. The Brand Strength analysis delivers an insightful snapshot of the strengths and weaknesses of the brand and is used to generate a road map of activities to enhance the value of the brand in the future. Scores for the external Brand Strength factors are calculated from the data generated from a global online survey of HCPs. Scores for the internal Brand Strength factors are generated from publicly available data and InterbrandHealth’s expert assessment.
Financial Data: GlobalData and Company Annual Reports