Let’s talk brands, as we always do. On Monday, Bloomberg released their 2011 greatest brand rankings, something that we at Quaintise are very keenly watching. As part of Interbrand’s Best Global Brands of 2011, the list includes the most influential, highest value brands in the world. What did they come up with? Take a look.
Top Ten ‘Best Global Brands’ of 2011
- Coca-Cola – Brand Valued at $71,861million
- IBM – Brand Valued at $69,905million
- Microsoft – Brand Valued at $59,087
- Google – Brand Valued at $55,317million
- PG&E – Brand Valued at $42,808million
- McDonald’s – Brand Valued at $35,593million
- Intel – Brand Valued at $35,217million
- Apple – Brand Valued at $33,492million
- Disney – Brand Valued at $29,018million
- HP – Brand Valued at $28,479
Apple had the best year out of the entire list of ranking brands, jumping from number 17 to number 9 in just one year. Apple increased its brand value by 58% in just one year, the largest growth of any brand monitored in the report. Amazon also had a tremendous year, with a 32% growth in 2011 and placing that brand in 26th place.
Measuring a Brand’s Value and Worth
How do Bloomberg and Interbrand determine the value of a brand? According to Forbes.com, quantifying the net worth of any particular brand isn’t easy, as you might imagine. There are all kinds of factors to consider – from brand recognition to target audience to first-mover advantage. But regardless of the factors at play, ultimately the value of a brand is tied to its capacity to increase profits for its owner.
“First, a strong brand protects the volume of business that a company gets.”
This simply means that as a brands equity grows, it is essentially protecting its long-term sales. When a brand becomes preferred over others, when customers turn into fans and eventually brand advocates, a brand’s equity rises. When a brand’s equity rises, it secures it’s future sales because brand advocates will purchase that preferred product or service over all others, no matter what the cost.
“Second, a strong brand boosts margins.”
Being able to boost margins depends greatly on the first step of establishing brand advocates and brand equity. When you have fans that will purchase from your no matter what the cost because they are so emotionally attached to the brand experience, you can successfully increase prices without losing customers.
“Third, a strong brand buffets a company from external circumstances.”
As other’s cut back their marketing, advertising and production efforts due to the poor economy, you increase your efforts and reap the benefits. As the competition cuts back, they leave the door wide open for you to step in and take advantage of ‘external circumstances.’
How much is your brand worth? Do you have any idea how to calculate this? Let the marketing experts at Quaintise help you determine your brand value.