Brand Finance Global 500 February 2017 1.
Global
500
2017
The annual report on the world’s most valuable brands
February 2017
Brand Finance Global 500 February 2017Brand Finance Global 500 February 2017 2. 3.Brand Finance Global 500 February 2016 2.Brand Finance Airlines 30 30 February 2015 2.Brand Finance Global 500 February 2017 2.
Foreword
What is the purpose of a strong brand; to attract
customers, to build loyalty, to motivate staff All
true, but for a commercial brand at least, the frst
answer must always be ‘to make money’. Huge
investments are made in the design, launch and
ongoing promotion of brands. Given their
potential fnancial value, this makes sense.
Unfortunately, most organisations fail to go
beyond that, missing huge opportunities to
effectively make use of what are often their most
important assets. Monitoring of brand
performance should be the next step, but is
often sporadic. Where it does take place it
frequently lacks fnancial rigour and is heavily
reliant on qualitative measures poorly
understood by non-marketers. As a result,
marketing teams struggle to communicate the
value of their work and boards then
underestimate the signifcance of their brands to
the business. Skeptical fnance teams,
unconvinced by what they perceive as marketing
mumbo jumbo may fail to agree necessary
investments. What marketing spend there is can
end up poorly directed as marketers are left to
operate with insuffcient fnancial guidance or
accountability. The end result can be a slow but
steady downward spiral of poor communication,
wasted resources and a negative impact on the
bottom line.
Brand Finance bridges the gap between the
marketing and fnancial worlds. Our teams have
experience across a wide range of disciplines
from market research and visual identity to tax
and accounting. We understand the importance
of design, advertising and marketing, but we
also believe that the ultimate and overriding
purpose of brands is to make money. That is
why we connect brands to the bottom line. By
valuing brands, we provide a mutually intelligible
language for marketers and fnance teams.
Marketers then have the ability to communicate
the signifcance of what they do and boards can
use the information to chart a course that
maximises profts. Without knowing the precise,
fnancial value of an asset, how can you know if
you are maximising your returns If you are
intending to license a brand, how can you know
you are getting a fair price If you are intending
to sell, how do you know what the right time is
How do you decide which brands to discontinue,
whether to rebrand and how to arrange your
brand architecture Brand Finance has
conducted thousands of brand and branded-
business valuations to help answer these
questions.
Brand Finance’s recently conducted share price
study revealed the compelling link between
strong brands and stock market performance. It
was found that investing in the most highly
branded companies would lead to a return
almost double that of the average for the S&P
500 as a whole. Acknowledging and managing a
company’s intangible assets taps into the hidden
value that lies within it. The following report is a
frst step to understanding more about brands,
how to value them and how to use that
information to beneft the business. The team
and I look forward to continuing the conversation
with you.
David Haigh, CEO
Brand Finance
Defnitions 4
Methodology6
Executive Summary 8
Full Table 18
Understand Your Brand’s Value28
How We Can Help30
Contact Details 31
Contents
淘宝店铺
“Vivian研报”
首次收集整理
获取最新报告及后续更新服务请在淘宝搜索店铺“Vivian研报”
或直接用手机淘宝扫描下方二维码
Brand Finance Global 500 February 2017 5.Brand Finance Global 500 February 2017 4.
Defnitions
Defnitions
+Enterprise Value – the value of the
entire enterprise, made up of
multiple branded businesses
+Branded Business Value – the
value of a single branded business
operating under the subject brand
+Brand Contribution– The total
economic beneft derived by a
business from its brand
+Brand Value – the value of the
trade marks (and relating
marketing IP and ‘goodwill’
attached to it) within the branded
business
‘Branded
Business’
‘Branded
Enterprise’
E.g.
Unilever
Persil
E.g.
Persil
‘Brand
Value’
‘Branded
Business’
‘Branded
Enterprise’
‘Brand’
Contribution’
E.g.
Persil
Branded Business Value
A brand should be viewed in the context of the
business in which it operates. For this reason
Brand Finance always conducts a Branded
Business Valuation as part of any brand
valuation. Where a company has a purely mono-
branded architecture, the business value is the
same as the overall company value or
‘enterprise value’.
In the more usual situation where a company
owns multiple brands, business value refers to
the value of the assets and revenue stream of
the business line attached to that brand
specifcally. We evaluate the full brand value
chain in order to understand the links between
marketing investment, brand tracking data,
stakeholder behaviour and business value to
maximise the returns business owners can
obtain from their brands.
Brand Contribution
The brand values contained in our league
tables are those of the potentially transferable
brand asset only, but for marketers and
managers alike. An assessment of overall
brand contribution to a business provides
powerful insights to help optimise performance.
Brand Contribution represents the overall uplift
in shareholder value that the business derives
from owning the brand rather than operating a
generic brand.
Brands affect a variety of stakeholders, not just
customers but also staff, strategic partners,
regulators, investors and more, having a
signifcant impact on fnancial value beyond
what can be bought or sold in a transaction.
Brand Value
In the very broadest sense, a brand is the focus
for all the expectations and opinions held by
customers, staff and other stakeholders about
an organisation and its products and services.
However, when looking at brands as business
assets that can be bought, sold and licensed, a
more technical defnition is required.
Brand Finance helped to craft the internationally
recognised standard on Brand Valuation, ISO
10668. That defnes a brand as “a marketing-
related intangible asset including, but not limited
to, names, terms, signs, symbols, logos and
designs, or a combination of these, intended to
identify goods, services or entities, or a
combination of these, creating distinctive
images and associations in the minds of
stakeholders, thereby generating economic
benefts/value”
Brand Strength
Brand Strength is the part of our analysis most
directly and easily infuenced by those
responsible for marketing and brand
management. In order to determine the
strength of a brand we have developed the
Brand Strength Index (BSI). We analyse
marketing investment, brand equity (the
goodwill accumulated with customers, staff and
other stakeholders) and fnally the impact of
those on business performance.
Following this analysis, each brand is assigned
a BSI score out of 100, which is fed into the
brand value calculation. Based on the score,
each brand in the league table is assigned a
rating between AAA+ and D in a format similar
to a credit rating. AAA+ brands are
exceptionally strong and well managed while a
failing brand would be assigned a D grade.
Effect of a Brand on Stakeholders