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Tuesday, September 22, 2009

Twenty Best Global Brands Ranked By Economic Worth

Based on data collected between July 1, 2008 and June 30, 2009, BusinessWeek & Interbrand released their 2009 report on the 100 Best Global brands. According to this report, that's a $68 billion dollar logo to the right. Frank M. Robinson, the bookkeeper of Coke's inventor (Dr. John Stith Pemberton) thought "the two C's would look well in advertising," when he wrote out 'Coca-Cola' in his unique script back in 1886. It's held up pretty well for Coke over the last 123 years.

Apple made it into the top 20 for the first time, increasing its brand value by 12 percent since last year. Microsoft experienced its first year-over-year decline in its public history. Were the Seinfeld ads that bad? Probably. Here's how Interbrand ranks global brands for their annual list:
1. A brand must derive at least a third of its earnings from outside its home country, be recognizable beyond its base of customers, and have publicly available marketing and financial data. Those criteria eliminate most telecoms, heavyweights such as Wal-Mart, which sometimes operates under different brand names internationally, and private companies.

2. BusinessWeek chose Interbrand's methodology because it evaluates brand value in the same way other corporate assets are valued—on the basis of how much it is likely to earn for the company in the future. Interbrand uses analysts' projections, company financial documents, and its own qualitative and quantitative analysis to arrive at a net present value of those earnings.

3. Step one is calculating how much of a company's total sales falls under a particular brand. Step two is calculating how much of those earnings derives from the power of the brand. Interbrand strips out operating costs, taxes, and charges for the capital employed to arrive at earnings attributable to intangible assets. Interbrand then estimates the brand's effect on earnings relative to other intangible assets, such as patents and management strength.

Finally, those future earnings are discounted to arrive at a net value. Interbrand discounts against interest rates and also against the brand's overall risk profile to factor in brand strength. Ingredients include market leadership, stability, and global reach—or the ability to cross geographic and cultural borders. The final result values the brand as a financial asset. BusinessWeek and Interbrand believe this figure comes closest to representing a brand's true economic worth.

Rank 2009Rank 2008Company2009
Brand value
($millions)
2008
Brand value
($millions)
Percent change
(%)
Country of Ownership
---------------------------------------------------
11Coca-Cola
68,734 66,667 0.03U.S.
22IBM
60,211
59,031
0.02U.S.
33Microsoft
56,647
59,007 -0.04U.S.
44GE47,777 53,086 -0.1U.S.
55Nokia
34,864
35,942
-0.03Finland
68McDonald's
32,275
31,049
0.04U.S.
710Google
31,980
25,590 0.25U.S.
86Toyota31,330 34,050 -0.08Japan
97Intel30,636 31,261 -0.02U.S.
109Disney28,447 29,251 -0.03U.S.
1112Hewlett-Packard24,096 23,509 0.02 U.S.
1211Mercedes-Benz23,867 25,577 -0.07Germany
1314Gillette22,841 22,069 0.04U.S.
1417Cisco22,030 21,306 0.03U.S.
1513BMW21,671 23,298 -0.07Germany
1616Louis Vuitton21,120 21,602 -0.02France
1718Marlboro19,010 21,300 -0.11U.S.
1820Honda17,803 19,079 -0.07Japan
1921Samsung17,518 17,689 -0.01S. Korea
2024Apple15,443 13,724 0.12U.S.

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