RCA brand valued at £57million
The Royal College of Art commissioned Interbrand to value its brand in order to reinforce the case for premium funding from government.
Interbrand's in-depth financial analysis proved that the College owns and manages a powerful brand asset that creates 'economic advantage' for RCA as a whole.
The study showed that the RCA brand creates value by positively influencing a variety of stakeholders - including students, staff, business partners, sponsors, donors and specialist suppliers - that interact with the College.
The brand enables the RCA, through its impact on stakeholder behaviour, to command premium fees in some areas while enjoying lower costs in others.
According to Julian Dailly, Director of Valuation at Interbrand, 'The strength and stability of the brand and its international reputation secures this advantage over time and creates a virtuous cycle of economic value whereby the organisation can reinvest its advantage, thus building further strength to its brand.'
Interbrand developed a customised methodology to value the RCA brand. Now other not-for-profit organisations, including universities, could follow suit in finding out what their brand is worth.
For commentary on the RCA brand valuation by Julian Dailly, Director of Valuation at Interbrand, download PDF here (16KB)