FinancialTimesChartsBrands

FinancialTimesChartsBrands - BRAND POWER Financial Times...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
BRAND POWER Financial Times Special Report and Brandz Top 100 Brand Power Rankings 2008
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
SOURCE: Financial Times Special Report: Global Brands Date Retrieved: Sept. 9, 2008. http://media.ft.com/cms/931c76d2-0d39-11dd-b90a-0000779fd2ac.pdf
Background image of page 2
Highlights from “METHODOLOGY: HOW THE RANKING TABLE IS COMPILED” by: Joanna Seddon Since companies are realizing the importance of brand names, assessing the brand value has growing significance. The key to a brand’s success resides in the mind of consumers, but a brand is only valuable if it can translate consumer sentiment into share-holder value. Millward Brown Optimor’s Brandz ranking uses a methodology that combines consumer research and in-depth financial analysis. Analysts prepare financial models for each brand that tie consumer perceptions to revenues, cash flows, shareholder value, and brand value. Over 50,000 brands are studied, and Brandz operates within 23 categories, such as motor fuel, personal care, retail, technology, bottled water, etc. The Brandz system also breaks the study into regions, such as North America and Europe.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
The brand value is calculated in three steps: Millward Brown first determines the proportion of a company’s earnings that is generated “under the banner of the brand”. In the case of Disney, for instance, some earnings are not branded Disney, but come from their ESPN subsidiary. We also subtract capital charges to ensure we only capture value above and beyond what investors would require any investment in the brand to earn. This provides us with a bottom-up view of the earnings of the branded business. Only a portion of these earnings can actually be considered as being driven by
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 17

FinancialTimesChartsBrands - BRAND POWER Financial Times...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online