The Role Of Financial Performance In Difference Of Two Manufacturer’S Brand Value

Brands are becoming more and more important for enterprises that spend significant amounts on building strong ones. Howewer, the value of brands and the way it should be represented in financial reports is still controversial. Our general objective is to present a calculation method able to estimate brand value that we establish for the calculation method of Interbrand corporation and results of our own survey research. Our specific objective in the course of analysis is to determine Daimler AG Mercedes-Benz’s and Nestlé cereal’s brand value based on data of 2022. Firstly we calculated the so-called Economic Value of researched enterprises by analysing their financial reports. Applying the results from our survey research we determined the role of brand plays in gaining EVA, which is Brand Income. Finally we calculated a ratio using WACC which we discounted the Brand Income with we obtained the Brand Value. Our survey research is assembled according to Keller’s Brand Equity Model. During our research we have confirmed our hypothesis that people filling the survey consider brand to be a more important purchasing aspect in case of Mercedes-Benz than Nestlé cereals; purchasing Nestlé cereals respondents consider brand as the most important purchasing aspect out of the given list; respondents choose analysed brands contra unknown ones which has the same features and price. Final results show that Mercedes-Benz and Nestlé cereals have strong brand knowledge, the Mercedes brand value was several times higher, while the difference between these brand values caused by not the different financial performance but rather the devation of brand power and strength of the analysed manifacture companies.