The Value of a Strategic Global Brand
In this class we are fortunate to be able to discuss a subject that has tremendous value. Each year, Business Week, publishes a report along with Interbrand that calculates the value of a global brand. Now, it is important to understand the way the value is calculated, because there are a number of companies that may be absent from the list. Nonetheless, it is important that we look at the components of this calculation and the relative value placed on the factors.
Strategically, it is imperative to recognize that many stakeholders, clients, and customers place high value on these companies.
The article "The Top 100 Brands 2006" is an interesting scan. More important however is the method used to calculate the top brand value, held by Coke, at $67 BillionUS and that it actually dropped since 2006. If you click on the company names (start with Coke) you will be treated to a "slide show" featuring a commentary of the brand value of each company.
What do you think about this value calculation? Can an "intangible" be made tangible by putting a $ value on it? Does this valuation go beyond "marketing value"? Why?
Gene A. Wright
posted by Gene A. Wright @ 10:13 AM
3 Comments:
I have trouble with calculating how much money a name (brand) is worth. I know and believe that the name means a lot. But even after the explaintion of how the value is calcualated I think that it is still very subjective. The actual dollar amount is the probelm I have. From the article the author feels that interbrand takes a lot of time and effort to get accurate and reliable results. Int he business world a dollar amount is what many people want to see so for some companies this looks like the list to make to either prove it was worth spending the marketing daollars or a reason to start spending more marketing dollars.
Starbucks rank is 91 for the 100 Top Brands 2006, however it was ranked 99 for 2005. this big progress in one year not only because Starbucks brings in customers with lifestyle marketing, pushing music, books, and lunch food to get them to stick around, but also because Starbucks is committed to sourcing and serving high quality coffee, tea, food and merchandise and to being environmentally and socially responsible. For example The World Environment Center has selected Starbucks Coffee Company to receive its 21st Annual Gold Medal for International Corporate Achievement in Sustainable Development for international leadership in sustainable development within the specialty coffee industry.
I think the value calculation is somewhat misleading. It is very hard to quantify the actual amount of revenue that can be attributed by the brand. The other weakness in the method is the effect of the global market on the monetary valuation of the dollar.
I think it is an ok attempt to take a look at for comparison sake but I would hate to attempt to measure my actual business success against this mark as the number of countries, home origin of the company and many additional variables would need to be taken into consideration.
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