Further to my recent post on evaluating brand damage, in a recent article in Marketing Week, brand valuation consultancy Brand Finance is quoted as saying,” BP has been leaking $72m (£45.1m) worth of brand value every day since its Deepwater Horizon rig exploded and started polluting the Gulf of Mexico in May… The brand valuation consultancy says BP’s brand value fell by 61% to $4.7bn (£2.95bn) by late June after the offshore spill.”
So here is one approach to calculating brand damage – use your own model to track brand value, then use the same model to compare the value after an event.
There is always a concern however, that these measures just represent a snapshot in time. Brand Finance had BP ranked number 7 in its list of the top British brands, however the list was compiled before the disaster. The markets appear to have been more tolerant of BP than its brand valuers – they seem confident that the company’s value will recover, so can we expect its brand value to climb back also? I have a sneaky suspicion that we will. Tony Hayward has stepped down and almost simultaneously, the capping exercise looks like a success and scientists reckon recovery is happening faster than predicted.
I look forward with interest to the next brand valuation snapshot.