Sunday, July 5, 2009

Top 10 Brands : 2008

What better way to Startoff than by having a look at the top 10 Brands in the world by Businessweek in association with Interbrand. Most of us have already seen the list but still for those who havent. Here it goes.

The Interbrand method for valuing brands is a formula that examines brands through the lens of financial strength, importance in driving consumer selection, and the likelihood of ongoing branded revenue. The method evaluates brands much like analysts would value any other asset (on the basis of how much they're likely to earn in the future) There are three core components to their proprietary method:

1. Financial Analysis : Forecasting the current and future revenue specifically attributable to the branded products.

2.
Role of Brand Analysis: A measure of how the brand influences customer demand at the point of purchase is applied to the economic earnings to arrive at Branded Earnings.

3. Brand Strength Score : This is a benchmark of the brand's ability to secure ongoing customer demand (loyalty, repurchase and retention) and thus sustain future earnings, translating branded earnings into net present value.

Brand value is calculated as the net present value of the earnings the brand is expected to generate and secure in the future. All brands were then subject to the following criteria that narrowed candidates significantly:
  • There must be substantial publicly available financial data
  • The brand must have at least one-third of revenues outside of its country-of-origin
  • The brand must be a market-facing brand
  • The Economic Value Added (EVA) must be positive
  • The brand must not have a purely B2B single audience with no wider public profile and awareness
The Top 10 list remains more or less unchanged, except Google making an entry in the top 10 jumping 10 places from 20th last year.
2008 Rank2007 RankBrandSector2008 Brand Value ($m)
11Coca-ColaBeverages66,667
23IBMComputer Services59,031
32MicrosoftComputer Software59,007
44GEDiversified53,086
55NokiaConsumer Electronics35,942
66ToyotaAutomotive34,050
77IntelComputer Hardware31,261
88McDonald'sRestaurants31,049
99DisneyMedia29,251
1020GoogleInternet Services25,590

For detailed report visit : http://www.interbrand.com/

The next few posts will be on the above mentioned Top 10 Brands only.

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