Brands Hitting The Rough

Tiger Woods, Goldman Sachs ... Some mighty brands have hit the rough recently, with resulting speculation as to how this type of publicity has impacted on the commercial value of the brands. In this article, we talk about some more common ways in which brand value can be eroded.

At the best of times, brand values are hard to estimate. When things are not going quite so well, there may be a few more tools available to help calculate the impact on the brand. The drop in an auto-maker's share price following a recall might provide a means to measure the drop in the brand's value. Similarly, the impact on Tiger Woods' brand value could be measured by the value of lost endorsements following the much publicised scandals. These are dramatic examples of venerable brands losing brand equity.