Tuesday 31 July 2007

WORLD'S TOP 100 BRANDS.

These are the latest stats on the Top 100 Brands by Businessweek. Its notable that among the top 10 of the top 100, no oil company is in. The first oil company we have here is BP at 76 cited ‘Not even an Alaskan oil spill or an explosion at a Texas refinery has put a dent in BP's strong performance’ That Coca Cola is the most valuable brand worlw-wide isn’t in doubt. Position 1 to 9 seems to rotate among the leaders of the industry while Mercedes Benz comes in at 10 from 11 after the drop to 12 of Marlboro the cigarette maker mainly due to the global onslaught against smoking. Marlboro has maintained its good brand thanks to its rising sales outside US where sales can only go one way – up.

And How does Businessweek get to the value of the brand? Here: “BUSINESSWEEK CHOSE Interbrand's methodology because it evaluates brands much the way analysts value other assets: on the basis of how much they're likely to earn in the future. The projected profits are then discounted to a present value, taking into account the likelihood that those earnings will actually materialize.
THE FIRST STEP IS figuring out what percentage of a company's revenues can be credited to a brand. (The brand may be almost the entire company, as with McDonald's Corp., or just a portion, as it is for Marlboro.) Based on reports from analysts at J.P. Morgan Chase, Citigroup, and Morgan Stanley, Interbrand projects five years of earnings and sales for the brand. It then deducts operating costs, taxes, and a charge for the capital employed to arrive at the intangible earnings. The company strips out intangibles such as patents and management strength to assess what portion of those earnings can be attributed to the brand.
FINALLY, THE BRAND'S strength is assessed to determine the risk profile of those earnings forecasts. Considerations include market leadership, stability, and global reach—or the ability to cross both geographic and cultural borders. That generates a discount rate, which is applied to brand earnings to get a net present value. BusinessWeek and Interbrand believe this figure comes closest to representing a brand's true economic worth.”






1 1 Coca-Cola
U.S. 67,000 67,525 -1% Flagging appetite for soda has cut demand for Coke, but the beverage giant has a raft of new products in the pipeline that could reverse its recent slide.


2 2 Microsoft
U.S. 56,926 59,941 -5% Threats from Google and Apple haven't yet offset the power of its Windows and Office monopolies.


3 3 IBM
U.S. 56,201 53,376 5% Having off-loaded its low-profit PC business to Lenovo, IBM is marketing on the strategic level to corporate leaders.


4 4 GE
U.S. 48,907 46,996 4% The brand Edison built has extended its reach from ovens to credit cards, and the "Ecomagination" push is making GE look like a protector of the planet.


5 5 Intel
U.S. 32,319 35,588 -9% Profits and market share weren't the only things slammed by rival AMD. Intel's brand value tumbled 9%, as it loss business from high-profile customers.


6 6 Nokia
Finland 30,131 26,452 14% Fashionable designs and low-cost models for the developing world enabled the mobile phone maker to regain ground against competitors.


7 9 Toyota
Japan 27,941 24,837 12% Toyota is closing in on GM to become the world's biggest automaker. A slated 10% increase in U.S. sales this year will help even more.


8 7 Disney
U.S. 27,848 26,441 5% New CEO Robert Iger expanded the brand by buying animation hit-maker Pixar and beefing up digital distribution of TV shows through the Internet and iPods.


9 8 McDonald’s
U.S. 27,501 26,014 6% A new healthy-living marketing campaign—and the premium-priced sandwiches and salads that came with it—have led to a fourth year of sales gains.


10 11 Mercedes-Benz
Germany 21,795 20,006 9% The new S-Class sedan and M-Class SUV are helping repair a tarnished quality reputation. High costs and weak margins will take longer to fix.


Sourced from Businessweek and posted here by assidous.

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