Brand Value Matters: How ISO 10668 Defines and Measures It

In today’s competitive marketplace, a company’s brand is more than just a logo or a catchy slogan—it’s a strategic asset. Brand value influences customer loyalty, market positioning, investor confidence, and even a company’s bottom line. But how can something as intangible as a brand be measured? That’s where ISO 10668, the international standard for brand valuation, comes in.

This framework provides a structured, globally recognized approach to defining and assessing brand value. Let’s break it down.

How does ISO 10668 turn brand value from abstract to measurable?

Strong brands don’t just compete — they compound value. ISO 10668 sets the benchmark for measuring this invisible yet powerful force.

What Is ISO 10668?

ISO 10668 is an international standard established in 2010 by the International Organization for Standardization. Its purpose is to set out the principles and requirements for valuing brands in a consistent, reliable, and transparent way.

Unlike ad-hoc valuation methods, ISO 10668 ensures that brand valuations are credible and can be compared across industries and geographies. This makes it especially useful for businesses, investors, regulators, and even legal professionals in cases like mergers, acquisitions, or disputes.

The Three Pillars of ISO 10668

The framework rests on three essential lenses for brand valuation:

1. Legal Analysis

The legal perspective ensures that the brand in question is properly protected and enforceable. This involves examining:

• Trademark registrations
• Intellectual property rights
• Licensing agreements
• Potential infringements or risks

A brand without solid legal foundations may not hold sustainable value, no matter how strong its market presence is.

2. Behavioral Analysis

This dimension looks at how stakeholders (customers, employees, partners, investors) perceive and interact with the brand. Key considerations include:

• Customer loyalty and retention
• Market share and awareness
• Emotional connections and trust
• Influence on purchasing decisions

In essence, this analysis examines how much of a company’s success can be directly attributed to its brand rather than its physical assets or operations.

3. Financial Analysis

This is where the numbers come in. The financial analysis quantifies brand value by linking it to business performance. Methods include:

• Income Approach: Estimating future earnings attributable to the brand
• Market Approach: Comparing with similar brands in the market
• Cost Approach: Assessing the cost of creating or replacing the brand

By combining these financial models with insights from the legal and behavioral dimensions, ISO 10668 provides a robust and balanced valuation.

Why Brand Valuation Matters

Adopting ISO 10668 for brand valuation brings multiple benefits:

• Transparency for Investors: Helps investors see the true worth of intangible assets.
• Stronger M&A Negotiations: Informs fair pricing during acquisitions or partnerships.
• Strategic Decision-Making: Guides brand investments, marketing budgets, and expansion plans.
• Legal Protection: Reinforces the importance of securing intellectual property.
• Credibility: A standardized method builds trust with stakeholders and regulators.

Real-World Applications

• Mergers & Acquisitions: Determining how much of a company’s purchase price is tied to its brand.
• Licensing & Franchising: Establishing fair licensing fees based on brand equity.
• Litigation: Calculating damages in trademark infringement cases.
• Internal Benchmarking: Tracking brand performance over time and across markets.

Final Thoughts

In the age of intangible assets, brand value has become a cornerstone of business success. ISO 10668 provides the much-needed clarity, consistency, and credibility to measure this value effectively. By considering legal, behavioral, and financial factors, it ensures that brand valuation is not just about numbers—it’s about the true impact of a brand in the marketplace.

For companies looking to strengthen their competitive edge, embracing ISO 10668 is not just a best practice—it’s a strategic necessity.