Indiantelevision.com Team

(31 July 2006 2:00 pm)

MUMBAI: Global brand consultancy, Interbrand, has again teamed up with BusinessWeek to publish their annual ranking of the Best Global Brands. Now in its sixth year, the Best Global Brands report identifies the top 100 global brands that have managed to create and sustain strong performance in today’s competitive market.

Coca Cola, Microsoft, IBM, GE and Intel are the top five global brands. Google, MTV, Disney and Reuters are the four media companies who feature in the top 100 list. Royal Philips Electronics was one of the largest gainers in brand value in the annual ranking of the top 100 global brands by brand consultant, Interbrand.

Philips chief marketing officer Andrea Ragnetti said that the growth in brand value demonstrated that Philips’ transformation into a market-driven healthcare, lifestyle and technology company was showing its merits. “The improved Interbrand ranking confirms that our brand promise ‘sense and simplicity’, which is also the framework for our future growth, is making a difference to the way the world sees and experiences Philips, and is reinvigorating faith in the Philips brand.

“Our commitment and presence in the growing healthcare market, which promises to be an engine for future economic growth, has also increased recognition of the brand strength and value”.

Interbrand Zintzmeyer and Lux CEO Jürgen Häusler said that Philips’ 14 per cent growth in brand value reflected the company’s success in managing the brand. “Philips clearly understands the importance of its brand, which supports the vision of transforming Philips into a healthcare, lifestyle and technology company. In this context the thorough management of a strong master brand, communicating the same values across a highly diversified product portfolio in a variety of countries, is of utmost importance” he says.

Likewise, Motorola at number 69 has historically struggled in the high end of the market…until the Razr. A hero product, it has in recent years helped the brand maintain its solid number two position in the category. The top gainer with a brand value increase of 46 per cent, Google (24) creates growth under with the strategy of 'do no evil' positioning itself at the opposite end of the spectrum from the more corporate Microsoft.

Overall growth of Internet commerce has perpetuated consumers’ acceptance of purchasing goods and services online enabling eBay (47) to skyrocket in value up 18 per cent and the third highest gainer this year. In the second spot with a value increase of 20 per cent Starbucks (91) has found financial success by leveraging the brand with a premium fast food and extending its product offering into music and publishing.

Top Decliners: The growth of mass retailers has taken market share from traditional apparel brands such as Gap (52). Losing the most brand value with a decline of 22 per cent, Gap has been unable to clarify its brand image and with a less distinct positioning the brand has been less effective at selling clothing causing reduced long-term stability. Ford (30) continues to lose money on every car sold – and brand value year after year. Down 16 per cent this year, Ford’s American heritage is an insufficient brand attribute to hold off growing competition from Japanese and German automakers.

Down 12 per cent this year, Kodak (70) has made valiant strides to catch up with the digital world. However, the reality is that competition is fierce and profitability is thin compared to Kodak’s film business and thus the brand’s value continues to decline.

The top 100 brands