Graphical depictions of the model

The BrandMetrics process The shape depicts the full Brand Premium Profit projection for a hypothetical brand. The Franchise Run is the period that is influenced by the brand relationship and in this example is seven years. Based on this and other variables the Decay Phase is calculated to capture, in this instance, nineteen years expected life. These future premium profits are discounted to present value using the Cost of Capital as the discount rate. The capitalised result is the brand value. In this table a selection of dilution percentages for current clients in a variety of industries are shown. When applied to the economic profit, the portion attributable to the brand is isolated.

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