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 Rank	2007 Rank	Brand	Sector	2008 Brand Value ($m)
1	1		Beverages	66,667
		Coca-Cola has once again retained its status as the world’s most valuable brand. Proving that it still has a few tricks up its sleeve, current trends toward healthier diets have seen Coke shift focus to better-for-you drinks in the last year, with the launch of products like the vitamin and mineral enriched Diet Coke Plus and the continued push behind Coke Zero, which is now available in more than 80 countries. Coke has also worked hard to engage consumers, with innovative online campaigns such as “Design Your Own” that invited people to design their own Coke containers and share them with the world. 2008 66,667 2007 65,324 2006 67,000 2005 67,525 2004 67,394 2003 70,453 2002 69,637 2001 68,945
2	3		Computer Services	59,031
		Big Blue’s transformation from PC vendor to solutions provider continues. Recognizing that we live in an increasingly connected world, IBM has positioned itself as the partner of choice for businesses that operate across borders. This position has been solidified through a number of smart strategic acquisitions in recent years. Lenovo’s announcement to remove the IBM brand from the ThinkPad range earlier than planned will create more distance between the IBM name and PCs in customers’ minds, which in turn will clarify what the new IBM is really all about. 2008 59,031 2007 57,090 2006 56,201 2005 53,376 2004 53,791 2003 51,767 2002 51,188 2001 52,752
3	2		Computer Software	59,007
		Despite maintaining its position as one of the world’s biggest brands, Microsoft has had a slightly rocky year. The new operating system, Vista, was poorly received, not least of all by Intel, which refused to install it on its machines due to compatibility issues. The failed takeover of Yahoo! and Bill Gates’ decreasing role piled further pressure on a brand already struggling to articulate how its offering fits together. Looking ahead, the company is hoping a diversification from software into the broader online and entertainment arenas, coupled with a US$300 million advertising campaign starring Jerry Seinfeld, will breathe new life into the brand and pave the way for a brighter future. 2008 59,007 2007 58,709 2006 56,926 2005 59,941 2004 61,372 2003 65,174 2002 64,091 2001 65,068
4	4		Diversified	53,086
		Few companies are in as strong a position to push the green agenda as GE. Its Ecomagination program has been incredibly successful in raising sustainability awareness and has reflected positively on the brand. As GE continues to expand internationally it has a unique opportunity to shape the way that businesses all over the world approach sustainability and in doing so, can cement its green credentials. 2008 53,086 2007 51,569 2006 48,907 2005 46,996 2004 44,111 2003 42,340 2002 41,311 2001 42,396
5	5		Consumer Electronics	35,942
		Despite increased competition from the likes of Apple, Nokia has solidified its position as the #1 mobile phone brand, increasing its global market share to 38%. The iPhone and the Blackberry have certainly raised consumer expectations of what devices can do, but Nokia has not stood still. It recently launched the E61 in direct response to the Blackberry and is currently developing the “Nokia Tube”, an eagerly awaited touch screen device that will see it compete head-to-head with the iPhone. It’s this spirit of constant innovation, coupled with an innate ability to segment its customers (be it on an attitudinal, geographical or demographic basis) that’s added to Nokia’s brand value this year. 2008 35,942 2007 33,696 2006 30,131 2005 26,452 2004 24,041 2003 29,440 2002 29,970 2001 35,035
6	6		Automotive	34,050
		Toyota continues to benefit from the "green halo effect" of the Prius, which is still widely talked about in the media. Like its sister brand Lexus, Toyota has managed to control the perception of its national heritage where helpful, but also ply its trade as a truly global brand. 2008 34,050 2007 32,070 2006 27,941 2005 24,837 2004 22,673 2003 20,784 2002 19,448 2001 18,578
7	7		Computer Hardware	31,261
		Having just announced its most profitable quarter ever, Intel is reaping the benefits of continued innovation and a partnership with Apple that has seen it get inside some of the most desirable computers of the moment. Going forward the brand will shift half of its advertising budget to the Internet channel to better target technology-savvy consumers who are spending more and more time online. 2008 31,261 2007 30,954 2006 32,319 2005 35,588 2004 33,499 2003 31,112 2002 30,861 2001 34,665
8	8		Restaurants	31,049
		McDonald’s has never been a brand to sit still and its ability to adapt to consumer needs is almost as fast as its food. McDonald’s has been addressing the healthy eating issues that have dogged it in the past. Its french fries are now trans-fat free, and its offering of healthier meal options keeps increasing. Looking ahead, the chain aims to become the #1 destination for chicken and to significantly boost its coffee credentials by introducing 14,000 coffee bars at its US outlets. With specialist baristas serving cappuccinos and lattes at a time when consumers are less willing to fork out for a pricey Starbucks, it’s a shrewd move. Further afield, aggressive expansion in emerging markets will see 120 restaurants open in China and an innovative series of smaller kiosks sprout up in India. 2008 31,049 2007 29,398 2006 27,501 2005 26,014 2004 25,001 2003 24,699 2002 26,375 2001 25,289
9	9		Media	29,251
		The magic has stalled somewhat for Disney, with the brand taking a bit of a back seat to those it partners, and its core target becoming more distant from the Disney brand as a result. Still, the phenomenon of High School Musical and its spin-offs is keeping the tills singing around the world, and it’s also bearing rich fruit from its partnership with Pixar. As consumers upgrade to high-definition TV, Disney should see strong sales of its back-catalogue, offsetting the decline in profitability of theatrical releases. To really advance the brand, it needs to make big inroads with emerging markets, adapting its product to win over a whole new generation of families from different cultures. 2008 29,251 unchanged 2007 29,210 2006 27,848 2005 26,441 2004 27,113 2003 28,036 2002 29,256 2001 32,591
10	20		Internet Services	25,590

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

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