Methods Assessing the Brand Value and the Problems Connected with their Implementation into Corporate Telecommunication Sector in Russia Federation

Despite the global growth of merges and acquisitions and that during recent decades brand value has been a prime topic for practitioners and academics, this index remains difficult for calculations. Initially the problem with brand valuation in an economic area appeared in the 1980s. Today we have about 40 different methodologies and most of them patented by different consulting firms, also they are all used in practice. There are methods of assessment of the brand value by companies “Interbrand” and “Brand Finance” and these methods have been famous due to the annual ranking “the most expensive brands” from these companies. Unfortunately, brands from Russia include in such ranking rarely. As a result the practice of assessment the value of Russian brands very scarce. Brand is one of the main assets for company. This fact becomes more relevant in current economic situation in Russia. The paper aims to analyze the most common practice methods of the brand valuation and using them to assess the value of brands “MTS” and “Megafon”. Methods by companies “Interbrand” and “Brand Finance” using expert opinions in calculations of this specific criteria “role of the brand”, because of this in my bachelor thesis has been proposed own an alternative approach to calculation of this criteria. This approach based “marginal effect” from the brand which determine by conjoint-analysis and econometric probit-model. From research have been received the following results: • The cost of JSC “MTS” and JSC “Megafon” have been assessed based on free cash flow on firm • Different methods of assessment of brand value have been given different results; • Assessment value of the “MTS” brand higher, than value of the “Megafon”; • Both brands have been presented the highest price in 2013 and after that have been had downward trend; • The part of brand in the company’s value and in market capitalization have been presented downward trend in 2014 and 2015