Tracking the value added by brands over time and across market segments can be an important input to corporate strategic planning. Unfortunately, measures of value added by brands have relied on elaborate consumer experiments or surveys. We propose a measure or index of value added by brands (IVAB) that can be computed from market price-sales data. As a practical and low-cost tool, the IVAB can be used to monitor on a regular basis a company's brand management activity and its relative position in markets where competitors influence each other's performance. The computation of IVAB is illustrated with secondary price-sales data on the Indian toilet soap market.
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