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Comparison of the results of the 2013 brand value league tables published by Interbrand, Brand Finance, Millward Brown and the European Brand Institute. The presentation provides a summary of the methodologies used, and the valuations of the top 30 brands from each league table. It compares the values attributed to the 28 brands that appear on all 4 lists, and the assessment of whether they are increasing or decreasing in value.
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P1 Does Marketing Matter? January 2009
Brand Valuation: 2013 Results
Comparison of the 2013 League Tables from Interbrand, Eurobrand, Millward Brown & Brand Finance
Type 2 Consulting October 2013
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Brand Valuation
Three brand consultancies that have published annual brand value league tables since 2007: Interbrand “100 Best Global Brands” Published in October Millward Brown “Top 100 List” Published in May Brand Finance “The World’s 500 Most Valuable Brands” Published in February The European Brand Institute first published its annual league table in 2011
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Methodology
• All four agencies base their valuations on “economic use” methodologies: – The “earnings split” approach (which calculates the net present
value of the brand-specific earnings of the business) – The “relief from royalty” approach (which calculates the net
present value of the notional licensing fee that a company would have to pay for the use of its brand)
• Both methodologies are conceptually robust, but leave room for considerable subjectivity in choosing: – The proportion of profitability solely attributable to the brand – The selection of the appropriate royalty rate
• This subjectivity – not the methodologies – is the reason for the massive inconsistency between the agencies
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The four lists contain 213 different brands
Only 28 brands are common to all four lists
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There is an average difference of 2.2x between the high/low values of these 28 brands
For 15 of these 28 brands there is disagreement about whether the brand increased or decreased in value relative to 2012
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Top 30 brands according to each provider
Eurobrand data originally published in Euros and converted at €1 = $1.32
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Valuation of the 28 brands common to the four lists
Eurobrand data originally published in Euros and converted at €1 = $1.32
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Divergence of Opinion on YoY Change
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#1 & #2 Ranked Brand in Each Year
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Are the Results Converging?
• Sadly, the answer is “not appreciably”: – The number of brands appearing in the four top 100 lists was 213
in 2013 compared to 215 in 2012 and 213 in 2011 – The number of brands common to the four top 100 lists was 28 in
2013 compared to 27 in 2012 and 28 in 2011 – The number of brands common to the four top 30 lists was 11 in
2013 compared to 9 in 2012 and 9 in 2011 – There was disagreement on the year-on-year sign change for 15 of
the 28 common brands in 2013 compared to 11 of 27 in 2012 – The high/low valuations of the same brand each year differed by an
average multiple of 2.3 in all three years (simple average)
• However, 2013 was the first ever year that the same brand – Apple – is ranked as #1 by all four consultancies
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