Monday, January 24, 2011

Brand Valuation: The Best Brands of The World

I'm on the way writing a thesis related to brand valuation. I just remember a quote in Interbrand report:

“If this business were split up, I would give you the land and bricks and mortar, and I would take the brands and trade marks, and I would fare better than you.” — John Stuart, Chairman of Quaker (ca. 1900)

According to the Interbrand report, here is the top 10 brands in the world in 2010: Coca Cola, IBM, Microsoft, Google, General Electric, Mac Donald, Intel, Nokia, Disney, Hewlett Packard

So, how they valuing a brand? The basic principles of valuing a brand is by count their financial performance, then compare with total market valuation. For public listed company, the market value can calculated by price in the stock exchange. The difference between stock price and financial performance can calculated with other formula and then they get the brand value.

For some company brand is everything. But, don't always see company by a brand. Sometimes people/consumer trust a person rather than a brand. Like in the general election of Indonesia, many people chosen Democratic Party because of Susilo Bambang Yudhoyono (SBY) figure. So, when the trust level to SBY declining, the voting for the party will be decline. That's a personal brand! So, before buy a brand, always see the factor that affect a brand value is because of a person in the company or by the brand itself.


grace said...

very interesting...:)

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