BS ISO 20671-1:2021

Brand evaluation

Part 1: Principles and fundamentals

bsi.
BS ISO 20671-1:2021 BRITISH STANDARD

National foreword

This British Standard is the UK implementation of ISO 20671-1:2021. It

supersedes BS ISO 20671:2019, which is withdrawn.

The UK participation in its preparation was entrusted to Technical

Committee SVS/12, Brand Evaluation/Valuation Services.

A list of organizations represented on this committee can be obtained on

request to its committee manager.

Contractual and legal considerations

This publication has been prepared in good faith, however no
representation, warranty, assurance or undertaking (express or
implied) is or will be made, and no responsibility or liability is or will be
accepted by BSI in relation to the adequacy, accuracy, completeness or
reasonableness of this publication. All and any such responsibility and
liability is expressly disclaimed to the full extent permitted by the law.

This publication is provided as is, and is to be used at the

recipient's own risk.

The recipient is advised to consider seeking professional guidance with

respect to its use of this publication.

This publication is not intended to constitute a contract. Users are

responsible for its correct application.

©The British Standards Institution 2021

Published by BSI Standards Limited 2021

ISBN 978 0 539 15473 3

ICS 03.140

Compliance with a British Standard cannot confer immunity from

legal obligations.
This British Standard was published under the authority of the
Standards Policy and Strategy Committee on 31 December 2021.

Amendments/corrigenda issued since publication

Date Text affected
 BS ISO 20671-1:2021

INTERNATIONAL ISO
STANDARD 20671-1

First edition
2021-11

Brand evaluation -

Part 1:
Principles and fundamentals
Evaluation des marques-
Partie 1: Principes et fondamentaux

Reference number
ISO 20671-1:2021 (E)

© ISO 2021
BS ISO 20671-1:2021
ISO 20671-1:2021(E)

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ii ©ISO 2021- All rights reserved

 BS ISO 20671-1:2021
ISO 20671-1:2021(E)

Contents Page

Foreword ........................................................................................................................................................................................................................................ iv
Introduction .................................................................................................................................................................................................................................v
1 Scope . .
.......................................................................................... ......................... ............................................................................................................ 1
2 Normative references ..................................................................................................................................................................................... 1
3 Terms and definitions .................................................................................................................................................................................... 1
4 Principles of conducting a brand evaluation 2
.........................................................................................................................

4.1 General principles.. .. .. . .. .. . .. .. . .. .. .. .. .. .. . .. .. .. . .. .. .. .. .. .. .. ..... ............................................................................... 2

.. . .. . .. . .. . .. . .. . . . .. . .. . . .. . . . . . . .. . . ..

4.2 Transparency 3
...........................................................................................................................................................................................

4.3 Consistency . . .. .. . .. .. .. .. .. .... .. .. .. .. .. . .. .. . . .. .. .. . . .. .. . .. .. ........ ............................................................................... 3

. .. .. . .. . .. . . . .. .. . . . .. . .. . . . .. .. . . . . . . .. . .. . .. . ..

4.4 Objectivity 3
..................................................................................................................................................................................................

5 Brand evaluation fundamentals 3

.........................................................................................................................................................

5.1 General .. .. .. . . .. .. . .. .. . .. .. . .. .. .. .. .. .. . .. .. .. . .. .. .. . . .. .. .. .. .. . ....................................................................................... 3

.. . . .. .. .. . .. . .. . .. . .. . .. . . . .. . .. . . .. .. . . .. .. .. . . . .. . .

5.2 Elements .. .. . . .. .. . .. .. . .. .. . .. .. .. .. .. .. . .. .. .. . .. .. .. . . .. .. .. .. ... . ... ................................................................................... 3

. . .. .. .. . .. . .. . .. . .. . .. . . . .. . .. . . .. .. . . .. . . . . . . . . . . .

5.2.1 General ..
............................................................................ 3 ..........................................................................................................

5.2.2 Tangible elements . .. .. .. .... .. .. . .. .. .. .. .. .. . .. .. .. . .. .. ..... ... ............................................................................... 4

. . . .. .. . .. . .. . . . .. . .. . . .. .. . . . .

5.2.3 Quality elements 4

.................................................................................................................................................................

5.2.4 Innovation elements. .. .. . .. .. .. . .. .. . .. .. . .. .. . .. .. .. ..... ... ............................................................................... 4

. .. . .. . .. . .. . .. . .. . .. . .. . .. . . . .

5.2.5 Service elements .. . .. .. . .. .. .. . .. .. .. .. .. .. . .. .. .. . .. ..... ... . ................................................................................ 4

.. . .. . .. . .. . .. . .. . . . .. . .. . . .. .. . . . .

5.2.6 Intangible elements 4

.........................................................................................................................................................

5.3 Dimensions . .. .. .. . .. .. . .. .. . .. .. .. .. .. .. . .. .. .. .. . .. .. .. .. .. .. . ... .. ..... ..... .. .. ...................................................................... 4

. . .. . .. . .. . .. . .. . .. . . . .. . .. . . .. .. . .. . . . .. . . . . .. . . .

5.3.1 Legal dimension 4

..................................................................................................................................................................

5.3.2 Customer/other stakeholder dimension .. .. .. .. ........... ..... ...................................................................... 4 .. . . . .. . .

5.3.3 Market dimension 4

..............................................................................................................................................................

5.3.4 Economic and political environment dimension ... .. ..... ...................................................................... 5 . . .

5.3.5 Financial dimension ........................................................................................................................................................ 5

6 Brand evaluation considerations .. .. . .. .. . .. .. .. .. .. .. . .. .. .. .. .. .. .. . ................................................................................... 5
. .. . .. . .. . .. . . . .. . .. . . . .. . . .. .

6.1 Personnel . .. . .. .. .. . .. .. . .. .. . .. .. .. .. .. .. . .. .. .. .. . .. .. .. .. .. .... .. .. .. .. .. ........ ...................................................................... 5

. .. . .. . .. . .. . .. . .. . .. . . . .. . .. . .. . .. . .. . . . .. .. . . . .. . .

6.2 Practices and processes 5

.................................................................................................................................................................

6.3 Brand evaluation audit .. .. .. .. .. .. . .. .. . .. .. . .. .. . . .. .. .. . .. .. .. ..... ........... ................................................................... 5

. .. . . . .. . .. . .. . .. . .. . .. .. .. . . .. .. . . . .. .

6.4 Data sourcing ........................................................................................................................................................................................... 5

6.5 Brand evaluation results .. .. .. .. .. . .. .. . .. .. . .. .. . . .. .. .. . .. ..... ..... ................................................................................ 6
. . . .. . .. . .. . .. . .. . .. .. . . . . .. .. . . .

Annex A (informative) Examples of indicators for elements and dimensions........................................................ 7

Bibliography .. . . .. .. . .. .. .. .. .. .... .. .. .. .. .. . .. .. . . .. .. .. . . .. .. . .. .. .. .. .. .. . .. .. .. . ... ................................................................................ 12
... .. .. .. . .. . .. . . . .. .. . . . .. . .. . .. .. .. . . .. .. .. . .. . .. . . . .. . .. . . .. . .

©ISO 2021- All rights reserved iii

BS ISO 20671-1:2021
ISO 20671-1:2021(E)

Foreword

ISO (the International Organization for Standardization) is a worldwide federation of national standards
bodies ( ISO member bodies). The work of preparing International Standards is normally carried out
through ISO technical committees. Each member body interested in a subject for which a technical
committee has been established has the right to be represented on that committee. International
organizations, governmental and non-governmental, in liaison with ISO, also take part in the work.
ISO collaborates closely with the International Electrotechnical Commission ( IEC) on all matters of
electrotechnical standardization.

The procedures used to develop this document and those intended for its further maintenance are
described in the ISO/ IEC Directives, Part 1. In particular, the different approval criteria needed for the
different types of ISO documents should be noted. This document was drafted in accordance with the
editorial rules of the ISO/IEC Directives, Part 2 (see www.iso.org/directives).

Attention is drawn to the possibility that some of the elements of this document may be the subject of
patent rights. ISO shall not be held responsible for identifying any or all such patent rights. Details of
any patent rights identified during the development of the document will be in the Introduction and/or
on the ISO list of patent declarations received (see www.iso.orgjpatents).

Any trade name used in this document is information given for the convenience of users and does not
constitute an endorsement.

For an explanation of the voluntary nature of standards, the meaning of ISO specific terms and
expressions related to conformity assessment, as well as information about !SO's adherence to
the World Trade Organization (WTO) principles in the Technical Barriers to Trade ( TBT) see
www.iso.orgjisojforeword.html.

This document was prepared by Technical Committee ISO/TC 289, Brand evaluation.

This first edition of ISO 20671-1 cancels and replaces ISO 20671:2019, of which it constitutes a minor
revision. The changes are as follows:
- The document has been renumbered as ISO 20671-1 as part of the ISO 20671 series.

A list of all parts in the ISO 20671 series can be found on the ISO website.

Any feedback or questions on this document should be directed to the user's national standards body. A
complete listing of these bodies can be found at www.iso.org/members.html.

iv © ISO 2021- All rights reserved

 BS ISO 20671-1:2021
ISO 20671-1:2021(E)

Introduction

0.1 General
Brands are one of the most valuable yet least understood assets.

A brand identifies an entity's goods, services or the entity itself as distinct from what is offered by
another entity. A brand can thus be connected to an entity, a product/service, lines/portfolios of
products, a city, a region, etc. The offering entity can be commercial or not-for-profit. In all cases,
however, the function of the brand is to establish a distinctive identity for the entity in the market.
In practice this has traditionally implied communicating the unique benefit(s) of the entity's goods or
services as compared to other goods or services that might otherwise be seen as similar. This benefit(s)
can be functional as well as emotional or social. Increasingly, brands also seek identification with
experiences that are connected with an entity through its actions, services or other operations. These
experiences go beyond the mere usage of the product or service and lead to a higher-level engagement
with them. Brands ultimately exist in the minds of stakeholders as the impressions, benefits, and
experiences that they associate with a good or service.

Brands have value to both, the entities that have rights to the brand and to stakeholders who value
the functionaljemotionaljsocial benefits and experiences they associate with the brand. The primary
purposes of a brand are to increase the total business value of the brand-using entity, reduce risk, and
extend the sustainable existence of the brand-owning entity. Even though brands vary markedly in
terms of the benefits or experiences that define them, it is undisputable that a strong brand can bring
financial benefits. In practice, strong brands attract customers and add revenue through increased
price and/or volume premiums including repeat purchase loyalty. More broadly it is also the case that
brands can reduce costs and create a competitive advantage in the minds of stakeholders. A brand thus
has an impact on revenue and profitability and can influence corporate value.

0.2 Brands as financial assets

From an entity's viewpoint, a strong brand is a valuable asset. Its value ultimately depends on the value
of the brand to stakeholders. Therefore, there are two different vantage points from which an offering
entity can assess the value of its brands. One is through a financial valuation approach. ISO 10668
provides more details on approaches for doing brand valuations. The second vantage point is through
a non-financial evaluation approach. This document puts forth a rigorous framework for the latter and
a set of principles for conducting a brand evaluation from an input/output point of view. As such, it
is intended to serve as the standard for the development and implementation of other standards for
brand evaluation and valuation. Since it is a meta-standard, it is anticipated that further development
will result in greater precision in defining terms, measures, and processes.

0.3 Brand evaluation and brand valuation

Brand evaluation refers to the measurement of the value of a brand using relevant indicators of input
brand development elements and output dimensions that assess the impact of the brand on consumers.
Brand valuation refers to the estimation of the monetary value of a brand to a company in a transaction
whether it be internal or external (as with an investment, purchase, sale or licensing agreement). It is
the financial equity the company has in the brand as a transferrable asset. Brand evaluation is broader
and includes non-monetary considerations.

Brand evaluation and brand valuation are related and synergetic with each other. Brand valuation is
defined from the entity's point of view. Brand evaluation derives from the stakeholder's point-of-view.

This document focuses on brand evaluation but considers this within a general framework that
recognizes the relationship between brand evaluation and brand valuation.

0.4 Brand evaluation framework

The complete brand evaluation and brand valuation framework is illustrated in Figure 1. The
framework has three parts. Each part calls for identifying the value of a brand in a particular way. Each
part builds on the prior part in moving from evaluating the brand from the stakeholder's to the entity's

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ISO 20671-1:2021(E)

point-of-view. It identifies input elements used to develop brands and output dimensions that assess
brand strength, which leads to brand performance, financial results, and ultimately brand valuation.
Emphasis in this document is on the overall principle of analysing and reporting brand value and
on details of the input and output components of this framework. It should be noted it is possible to
consider each of the three parts of the framework separately.

BRAND EVALUATION BRAND VALUAT ION

Brand development Brand strength and brand performance Monetary value

Inputs Outputs

BRAND
LEGAL
STRENGTH
BRAND
SUPPORT CUSTOMER/
STAKEHOLDERS -INCOME APPROACH
---+ -COST APPROACH
BRAND BRAND -MARKET APPROACH
CTIVITIIE MARKET
PERFORMANCE

ECONOMIC
POLITICAL
A
I
I FINANCIAL
I
I
I I
I� - ---- ____________________ I
1 CONTINUOUS IMPROVEMENT
L --------------------------------------- �

CONTINUOUS IMPROVEMENT

Figure 1 - Brand evaluation framework

0.5 Brand development

Brand development is based on the contribution of the five elements: tangible resources, quality,
service, innovation (technology or process), and intangible resources. These five elements underlie the
success of any brand, and can be (eventually) considered as causal determinants of the strength of the
brand. Brand-operating entities contribute necessary input or investment in the five elements, which
form the foundation of brand value. Brand value is then delivered and communicated to the market
through tactical brand support and brand activities.

0.6 Brand strength and brand performance

Brand strength is the extent to which a brand is positive or negative in its potential to affect customers
and other stakeholders. This can be measured in many ways. Different dimensions, such as the legal
strength of the brand or its strength as measured by consumer ratings, can be used. For any one
dimension there are multiple possible indicators.

Possible indicators of each dimension for assessing brand strength are detailed in this document. In
assessing the value of a particular brand, it is necessary to select indicators that are appropriate and
relevant to that brand. Different indicators and weights might be used, for example, for fast moving
consumer goods versus luxury services versus industrial goods versus destination cities.

Brand performance evaluates the brand's impact in the market. For instance, a strong brand might have
a weak impact in a market category if other purchase factors are more important than the brand. A
weaker brand might have a greater impact if other purchase factors are not important. ( The level of
competition would be an example of other purchase factors.)

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Evaluating brand performance requires an in-market comparison or simulated market test to estimate
the extent to which a selected measure of brand strength translates into a different level of sales or
acceptance. The second part of the framework, the middle section of Figure 1, calls for determining
brand performance as a measure of the extent to which brand strength is correlated with or affects
brand performance in a market test appropriate to the brand. In other words, brand performance
provides an estimate of the extent to which brand strength affects market level customer/stakeholder
behaviour. This can also include measures of financial results.

0.7 Brand valuation

Brand valuation reflects the process of assessing the monetary value of a brand. Brand strength and
performance can be applied to a financial cash flow metric such as sales velocity or margin levels in
order to attribute a brand's contribution to cash flow. This provides a final measure of monetary brand
value. Thus, a brand performance assessment naturally feeds into a monetary brand valuation.

0.8 Continuous improvement

Continuous improvement is informed by changes in brand evaluation results between two periods.
Presently brands are too often taken as incidental business expenses necessary for the sake of having
a name, a logo or a trademark. Brands can be proactively managed and measured at least annually
to increase entity value. Therefore, brands shall be managed using this brand evaluation document to
increase entity value as established by improvements in brand strength and brand performance and
ultimately indicators of financial results.

For organizations that seek to increase brand value, brand evaluation thus creates a feedback loop for
the continuous improvement of a brand that leads to greater value for the entity over time. By investing
(changing the composition and level of brand input elements) based on such feedback, brands can be
improved to provide greater benefits and better experiences to customers and other stakeholders and
higher returns on the brand asset to the entities which use and own the brand. This document therefore
constitutes a basis or departure point for high-level corporate planning and governance, including best
practices for brand management.

The principles of this framework also apply to external investors and lenders. By evaluating brand
strength, brand performance, and financial results, targets can be defined not only for the internal
planning process but also for investors and lenders who realize the importance of brands as valuable
assets.

The three-part framework recognizes that any brand evaluation is complex and multidimensional, and
it constitutes information for multiple uses. Moreover, brand evaluations for some purposes may be
restricted to brand strength. Improvements to brand strength can be identified through continuous
measurement of the relationship between brand input elements and the dimensions that make up brand
strength. In this framework, however, brand strength is a first step in evaluating brand performance,
the impact of the brand in the market, where other variables such as competition can affect outcomes.
Brand performance can in turn be used as part of a method for determining a monetary brand valuation.

©ISO 2021- All rights reserved vii

BS ISO 20671-1:2021
 BS ISO 20671-1:2021

INTERNATIONAL STANDARD ISO 20671-1:2021(E)

Brand evaluation -

Part 1:
Principles and fundamentals

1 Scope

This document specifies the fundamentals and principles for brand evaluation, including an integrated
framework for brand evaluation containing necessary brand input elements, output dimensions and
sample indicators.

This document can be used in internal and external brand evaluation.

2 Normative references

There are no normative references in this document.

3 Terms and definitions

For the purposes of this document, the following terms and definitions apply.

ISO and IEC maintain terminology databases for use in standardization at the following addresses:

ISO Online browsing platform: available at https:/jwww.iso.orgjobp

IEC Electropedia: available at https:/jwww.electropedia.org/

3.1
brand
intangible asset, including but not limited to, names, terms, signs, symbols, logos and designs, or a
combination of these, intended to identify goods, services or entities, or a combination of these, creating
distinctive images and associations in the minds of stakeholders (3.1.2), thereby generating economic
benefit/values

3.1.1
entity
individual or group of people structured as a sole-trader, corporation, company, joint venture, not­
for profit organization, firm, enterprise, authority, partnership, charity or institution, or part or
combination thereof, whether incorporated or not, public or private, that owns and/or has the legal
ownership or legally/contractually authorized rights to use and/or promote the brand (3.1) in the
category (3.1.3) for some economic or societal benefit

3.1.2
stakeholder(s)
person(s) or discernible group(s) of individuals that can affect, be affected by, or perceive itself
(themselves) to be affected by a brand strength (3.2)

3.1.3
category
segment of the market, economy or society where discernible goods or services associated with the
brand (3.1) are offered

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3.2
brand strength
non-monetary, point-in-time calculation of relevant dimensions (3.4) and indicators (3.6) of a brand (ll),
which illustrates the perceived competitive strength, compared to its competitors amongst stakeholders
(3.1.2)

3.3
brand performance
evaluation of the brand's (3.1) impact in the category (3.1.3) as established by a market test (3.3.1) of its
brand strength (.3.2)

3.3.1
market test
research activity conducted in a category (3.1.3) amongst stakeholders (3.1.2) to assess the impact of
brand strength (.3.2) on brand performance (.3.3)

3.4
dimensions
consistent group of validated indicator categories (3.1.3) or indicators (3.6) that make up a component
of brand strength (.3.2)

3.5
elements
discernible components of a brand (ll) comprised of tangible, intangible, quality, service and
innovation components

3.6
indicator
validated metric that is measurable as part of the market test (3.3.1) and informs the brand strength
(3.2), brand performance (3.3) or brand valuation (3.9) exercise

3.6.1
indicator category
set of consistent and dependent indicators (3.6) that can be represented as a single dimension (3.4)

3.6.2
measure
piece of information or data that is regularly and reliably collectible and can be represented as a
numerical metric

3.7
brand evaluation
measurement of brand strength (.3.2), brand performance (.3.3) and financial results using relevant
elements (.3.,_5_) and dimensions (3.4)

3.8
brand value
worth of a brand as an asset for an entity

3.9
brand valuation
measurement of monetary brand value at a point-in-time

4 Principles of conducting a brand evaluation

4.1 General principles

The evaluator assesses the brand on both elements and dimensions using the relevant indicators and
justifies their inclusion and relevance to the brand.

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 BS ISO 20671-1:2021
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The internal or external evaluator conducts a brand evaluation using the framework and principles
contained in this document.

The evaluator has an obligation to justify the strength of the indicator, the sources of data that inform it,
the frequency of data accessibility and its limits in reflecting the contribution of the dimension toward
brand value.

When necessary, independent experts shall be drawn upon to aid in an objective audit of the indicators.

Furthermore, the evaluation shall reflect the following principles:

The brand evaluator shall be conscious of the fact that different stakeholders may have different
importance, represented by relative weight, for the elements and dimensions, and have differing,
representative indicators that are used for evaluating the specific stakeholder group.

The brand evaluation shall be conducted using the multiple elements and dimensions and conscious
of differing perspectives. Different elements and dimensions may use different methods to evaluate
the impact of the elements and dimensions with the relevant stakeholder group. Qualitative analysis
methods and quantitative analysis methods may both be used in the process of brand evaluation.

4.2 Transparency

Brand evaluation processes shall be transparent. This requirement includes disclosure and
quantification of evaluation inputs, outputs, assumptions and risks.

4.3 Consistency

To achieve comparable results in an evaluation, the methodology used for the evaluation shall be
consistent. If the methodology shall be changed, changes shall be noted and the ability to compare
results explained.

4.4 Objectivity

The evaluation shall be performed free of partiality.

5 Brand evaluation fundamentals

5.1 General

The fundamentals of brand evaluation focus on evaluating brand value using both elements and
dimensions, thereby determining brand strength, brand performance, and financial results. Elements
determine the input which the brand operating entities allocate to the brand, while dimensions measure
the external reactions to the brand.

Applicable indicators shall be determined, e.g. according to company size, particular type of brand,
purpose of the brand evaluation, different external regulating environment. Each of them may require
a different type of analysis. They shall be compared with major competitors or alternative brands.

Lists of indicators for elements and dimensions for different types of brands are provided in Annex A.

5.2 Elements

5.2.1 General

Elements refer to internal allocations to activities or resources influencing brand value, mainly in
perspectives of tangible, quality, service, innovation, and intangible elements.

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5.2.2 Tangible elements

Tangible elements refer to identifiable and directly measurable resources which are controlled by the
entity. Indicators of these elements include, e.g. material resources and financial resources.

5.2.3 Quality elements

Quality elements refer to resources allocated to quality commitment, quality management and perceived
quality. Indicators of these elements include, e.g. quality management system implementation, process
documentation and qualified quality managers.

5.2.4 Innovation elements

Innovation elements refer to resources allocated to innovation activities. Indicators of these elements
include, e.g. innovation capability, sustainability and effectiveness.

5.2.5 Service elements

Service elements refer to activities which aim to satisfy the needs of customers and enhance brand
perception and engagement. Indicators of these elements include, e.g. service capability and service
effectiveness.

5.2.6 Intangible elements

Intangible elements refer to intellectual, strategic and cultural resources. Indicators of these elements
include, e.g. history, heritage/tradition, brand positioning and personality, brand image, human
resources and knowledge management.

5.3 Dimensions

5.3.1 Legal dimension

Legal dimension refers notably to the brand's status of protection and the scope of brand rights and
their ownership. Indicators of this dimension include, e.g. assessments of trademarks, trade names,
copyrights, patents, Internet domains, and other intellectual property related aspects.

5.3.2 Customer/other stakeholder dimension

Customer/other stakeholder dimension refers to both, the psychological and behavioural perception
and response. Other stakeholders also may play an important role in brand evaluation, such as
employees, trade/supply chain partners, investors, banks, government, media, community.

Indicators of this dimension include for example, how customers/stakeholders think and feel about the
brand and how the discuss it in positive or negative ways, customer/stakeholder actions that reflect
positive or negative reactions.

These indicators often require direct measurement with customers through market research regarding
the functional, emotional, andjor experiential qualities associated with the brand.

5.3.3 Market dimension

Market dimension refers to the actual status of the market and opportunities for the development of a
brand and the structural limitations that market conditions may impose.

Indicators of this dimension include for example, market size, number of competitors, strength
of competition, competitive innovation, distribution channels, the favourable or unfavourable
market forces or trends that affect a brand due to specific market conditions, market potential and
internationality.

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5.3.4 Economic and political environment dimension

Economic and political environment refers to the macro environment in which a brand is operating.
This dimension includes the indicators of favourable or unfavourable external forces or events outside
of the market itself. This includes for example, trade agreements and government monetary policies
that may positively or negatively affect the performance of the brand.

5.3.5 Financial dimension

Financial dimension refers to the financial status and the financial potential of a brand. This information
is often derived from profit and loss accounts and balance sheets or other financial reports of companies,
cities or regions. Indicators of this dimension include, e.g. profits, cost savings, margins, income, brand
investment, volatility, revenue, cash-flow, GOP, ROI and payback period, channel investments and risk
rates.

6 Brand evaluation considerations

6.1 Personnel

A period of relevant professional experience for a qualified brand evaluation manager and qualified
brand evaluator is required before brand evaluators/managers and brand valuators independently
take responsibility as specified in this document.

6.2 Practices and processes

The brand evaluator is responsible to:

Identify the relevance of elements and dimensions, and monitor and measure their indicators.

Identify which indicators are valid and which are not.

Disclose the rationale for the selection of/exclusion of measurable indicators and their assembly.

Disclose the calculation of any specific formula used to calculate an indicator, and when appropriate
a sensitivity analyses to the main parameters used in the evaluation models.

Identify the nature and frequency of monitoring and reporting of the indicators.

Disclose the assumptions in case an indicator is prohibitive to measure.

Describe the context in which the evaluation is carried out.

The entity shall retain appropriate documented information as evidence of the results.

6.3 Brand evaluation audit

A brand evaluation audit establishes or validates the minimum practices to conduct a brand evaluation
for a specific entity. The entity may conduct audits at planned intervals or as required.

A brand evaluation auditor confirms the integrity of the brand evaluation system, its compliance with
this document and/or reviews whether the brand evaluation practices of the entity are effectively
implemented and maintained.

6.4 Data sourcing

The evaluator shall make sure that the data required for the evaluation are available in an adequate
form and quality with a commercially reasonable effort and relating to competitors. The data shall
either be provided by the brand's owner or by qualified external parties.

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ISO 20671-1:2021(E)

In the course of the evaluation, all the input data and assumptions shall be checked for relevance,
consistency, accuracy and validity at the evaluation date.

If data are lacking or are of insufficient quality, the evaluator shall make estimates and assumptions
for individual categories in exceptional cases. At any rate, these estimates shall be clearly declared and
documented in the course of the evaluation.

6.5 Brand evaluation results

The results of the brand evaluation exercise can be referred to as a point-in-time representation of
brand strength based on applying appropriate and relevant indicators.

As indicated in the discussion of dimensions, it is recommended that brand evaluation reporting be

considered within the context of the broader market and the competitive brands. This can be done by
either direct comparison of the data, normalizing the information against a simple scale, e.g. to a brand
strength indicator, or another method that has been agreed upon between the evaluator and the brand
using entity reviewing and applying the findings.

Potential applications of this brand evaluation can take the form of an indicator scorecard, scenario
analysis framework, brand-tracking program, or as an input to an analysis of brand performance and
brand valuation. Additionally, it can be applied to any other purpose deemed useful by the evaluator
and the brand using entity.

The audiences for a brand evaluation report can include, but are not limited to, brands using entity
management, employees, shareholders, investors, licensees, general public disclosure, etc.

6 © ISO 2021- All rights reserved

 BS ISO 20671-1:2021
ISO 20671-1:2021(E)

AnnexA
(informative)

Examples of indicators for elements and dimensions

Tables A.1 to A.4 give examples of indicator categories to illustrate the elements and dimensions of
brand evaluation. Each indicator category can be analysed with specific indicators. The evaluator shall
decide which indicators apply, e.g. for small and medium size enterprises (SME) vs. large companies,
city brands or any other types of brands. The examples are given for companies and cities and regions.

Table A.l - Indicators for elements for companies

Elements Examples of indicator categories Examples of specific indicators
Tangible - Material resources - Land, equipment, raw materials
and natural resources
- Financial resources
- Liquidity
- Brand investments
- Marketing budget
- Legal protection
- Legal costs

- Long-term brand investment

Quality - Quality commitment - Quality management system
implementation
- Quality management
- Process documentation
- Customer involvement
- Qualified quality managers
- Perceived quality
- Price elasticity of demand
- Price quality relationship
Service - Service offerings - Number of services

- Service capability - Number of qualified persons for

services
- Service effectiveness
- Service responsiveness

- Customer service satisfaction

Innovation - Innovation capability - R&D spending

- Innovation effectiveness - Numbers of patents/new products/

new markets
- Sustainable development
- Qualified research employees
- Market research confirmed
customer need
Intangible - Cultural resources - Company history/heritage/
tradition
- Intellectual resources
- Brand strategy (brand positioning
- Strategic resources personality, image, campaign, etc.)

- Human skills

- Knowledge management

- Reporting

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BS ISO 20671-1:2021
ISO 20671-1:2021(E)

Table A.2 - Indicators for dimensions for companies

Dimensions Examples of indicator categories Examples of specific indicators
Legal - Extent of protection - Trademarks registered/
non registered
- Brand registrations/trademarks
(in different levels: local, national, - Trademark classes
international)
Ownership and limitations
Extent of use
Domain registrations/
Number of top-level domains

Registered patents

Number and type of regulations

Customer/Stakeholders Brand awareness - Aided awareness

- Brand image - Website hits, visits, search volume/

downloads
- Social media engagement
Signups for email permissions
Brand customer relations
Social media likes/
- Brand preference followers/subscribers

Behavioural response Customer satisfaction

Customer loyalty Net promoter score

- Social/ecologic responsibility, - Number of conversions
Sustainability
Number of loyal customers

Number of new customers

Number of drop-out customers

Market Market size Market size in volume/value

Market share Market growth

Change of total market Market potential

- Segmentation - Market/media exposure

- Competition/differentiation Distribution channels

Number of direct competitors/

peer group

Internationality
Economic/ Legal environment Security
Political Environment
Regulations Number of regulations

Economic indicators Unemployment rate

Governance Entry barriers

Labour shortages

Potential risks

Trade agreements

8 © ISO 2021- All rights reserved

 BS ISO 20671-1:2021
ISO 20671-1:2021(E)

Table A.2 (continued)

Dimensions Examples of indicator categories Examples of specific indicators
Financial -
Profits -
Revenue
-
Cost savings -
Cash flow
-
Margins -
Year-over-year cost per unit
-
Income -
Operating contribution
-
Brand/marketing investment -
Earnings before interest and taxes
(EBIT)
-
Volatility
-
Channel investments
-
Cost of capital rate
-
Return on investment (ROI)
-
Risk rate

Table A.3 - Indicators for elements for cities and regions

Elements Examples of indicator categories Examples of specific indicators
Tangible -
Investment/financial resources -
Government spending
-
Tourism infrastructure -
Number of inhabitants
-
Healthcare infrastructure -
Number of hospital beds/
hotel rooms/schools/universities
-
Safety infrastructure
-
Marketing and communication
-
Education infrastructure spending
-
Cultural infrastructure
-
Reception capacity
-
Roadjairjrail access and capacity
Quality -
Quality of infrastructure -
Number of doctors/1 000
-
Quality of services -
Police/1 000
-
College/university spots/1 000
-
Primary education spaces/1 000
-
Quality of life
Service -
Service offerings -
Customer service satisfaction
-
Service capability -
Number of qualified persons
-
Service effectiveness -
Service access
Innovation -
Innovation capability -
Number of new companies
-
Innovation effectiveness -
R&D spending
-
Intellectual property -
Number of trademarks/
patents registered
-
Sustainable development
-
Position in international rankings
-
Qualified research and development
employees

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BS ISO 20671-1:2021
ISO 20671-1:2021(E)

Table A.3 (continued)

Elements Examples of indicator categories Examples of specific indicators
Intangible - Cultural resources - History / heritage/tradition

- Intellectual resources - Brand strategy -

positioning,
personality, image, campaigns
- Strategic resources
- Human skills, knowledge
- Sponsorship/partner activities
- Internationality

- Numberjvalue of sponsor partners

- Reporting

Table A.4 - Indicators for dimensions for cities and regions

Dimension Examples of indicator categories Examples of specific indicators
Legal - Extent of protection - Trademarks registered/
non registered
Brand registrations/trademarks
(in different levels: local, national, - Trademark classes
international)
Ownership and limitations
Extent of use
- Domain registrations/
number of top-level domains
Customer/Stakeholder Brand awareness Unaided awareness

- Brand image - Website hits, visits, search volume/

downloads
- Social media engagement
Social media likesjfollowersj
Brand customer relations subscribers

Brand preference Image index

Customer loyalty Stakeholder satisfaction

Socialjecologic responsibility, _
Tourism choice (%)
sustainability
Net promoter score
Market - Tourism Market potential and size

Market size/share Media exposure

Segmentation Number of direct competitors

Competition/differentiation Market growth rate

Market share development

Internationality
Economic/Political - Legal environment - Number of regulations
Environment
- Regulations - Unemployment rate

Economic indicators - Voters of the voting age population

(%)
Safety and governance
Crime ratejl 000

- Access to social/labour welfare

10 © ISO 2021- All rights reserved

 BS ISO 20671-1:2021
ISO 20671-1:2021(E)

Table A.4 (continued)

Dimension Examples of indicator categories Examples of specific indicators
Financial -
Domestic product -
GDPjGDP per capita
-
Financial status -
Budget surplus/deficit
-
Cost of debt -
Cash flow
-
Investments -
Interest rate
-
Foreign investment -
Foreign direct investment
-
Brand investment -
Communication budget
-
Private debt

©ISO 2021- All rights reserved 11

BS ISO 20671-1:2021
ISO 20671-1:2021(E)

Bibliography

[1] ISO 10668:2010, Brand valuation- Requirements for monetary brand valuation

[2] ONORM A 6800:2010, Monetdre Markenbewertung

12 © ISO 2021- All rights reserved

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