|
The
100 Top Global Brands 2006
The table that follows ranks 100 global brands that have a
value greater than $1 billion. The brands were selected according to two
criteria. They had to be global in nature, deriving 20% or more of sales from
outside their home country. There also had to be publicly available marketing
and financial data on which to base the valuation.
Here's how we calculate the
power in a name:
INTERBRAND TAKES lots of ingredients into account when ranking the world's
most valuable brands. To even qualify for the list, each brand must derive about
a third of its earnings outside its home country, be recognizable outside of its
base of customers, and have publicly available marketing and financial data. One
or more of those criteria eliminate such heavyweights as Visa, Wal-Mart, Mars,
and CNN. Interbrand doesn't rank parent companies, which explains why Procter &
Gamble doesn't show up. And airlines are not ranked because it's too hard to
separate their brands' impact on sales from factors such as routes and
schedules.
BUSINESSWEEK CHOSE
Interbrand's methodology because it evaluates brands much the way analysts value
other assets: on the basis of how much they're likely to earn in the future. The
projected profits are then discounted to a present value, taking into account
the likelihood that those earnings will actually materialize.
THE FIRST STEP IS figuring out
what percentage of a company's revenues can be credited to a brand. (The brand
may be almost the entire company, as with McDonald's Corp., or just a portion,
as it is for Marlboro.) Based on reports from analysts at J.P. Morgan Chase,
Citigroup, and Morgan Stanley, Interbrand projects five years of earnings and
sales for the brand. It then deducts operating costs, taxes, and a charge for
the capital employed to arrive at the intangible earnings. The company strips
out intangibles such as patents and management strength to assess what portion
of those earnings can be attributed to the brand.
FINALLY, THE BRAND'S strength is assessed to determine the risk profile of those
earnings forecasts. Considerations include market leadership, stability, and
global reach—or the ability to cross both geographic and cultural borders. That
generates a discount rate, which is applied to brand earnings to get a net
present value. Business Week and Interbrand believe this figure comes closest to
representing a brand's true economic worth.
|
2006
Rank
 |
2005
Rank
 |
Name
 |
Country
 |
2006
Value
($Mil)
 |
2005
Value
($Mil)
 |
Change in
Value
(%)
 |
Description
 |
|
1 |
1 |
Coca-Cola |
U.S. |
67,000 |
67,525 |
-1% |
Flagging appetite for soda has cut demand for Coke, but
the beverage giant has a raft of new products in the pipeline that could
reverse its recent slide. |
|

|
|
2 |
2 |
Microsoft |
U.S. |
56,926 |
59,941 |
-5% |
Threats from Google and Apple haven't yet offset the
power of its Windows and Office monopolies. |
|

|
|
3 |
3 |
IBM |
U.S. |
56,201 |
53,376 |
5% |
Having off-loaded its low-profit PC business to Lenovo,
IBM is marketing on strategic level to corporate leaders. |
|

|
|
4 |
4 |
GE |
U.S. |
48,907 |
46,996 |
4% |
The brand Edison built has extended its reach from
ovens to credit cards, and the "Ecomagination" push is making GE look like a
protector of the planet. |
|

|
|
5 |
5 |
Intel |
U.S. |
32,319 |
35,588 |
-9% |
Profits and market share weren't the only things
slammed by rival AMD. Intel's brand value tumbled 9%, as it loss business
from high-profile customers.
|
|
6 |
6 |
Nokia |
Finland |
30,131 |
26,452 |
14% |
Fashionable designs &low-cost models for developing
world enabled the mobile phone maker to regain ground against competitors. |
|

|
|
7 |
9 |
Toyota |
Japan |
27,941 |
24,837 |
12% |
Toyota is closing in on GM to become the world's
biggest automaker. A slated 10% increase in U.S. sales this year will help
even more. |
|

|
|
8 |
7 |
Disney |
U.S. |
27,848 |
26,441 |
5% |
New CEO Robert Iger expanded the brand by buying
animation hit-maker Pixar &beefing up digital distribution of TV shows
through the Internet &iPods. |
|

|
|
9 |
8 |
McDonald’s |
U.S. |
27,501 |
26,014 |
6% |
A new healthy-living marketing campaign—and the
premium-priced sandwiches and salads that came with it—have led to a fourth
year of sales gains. |
|

|
|
10 |
11 |
Mercedes-Benz |
Germany |
21,795 |
20,006 |
9% |
The new S-Class sedan and M-Class SUV are helping
repair a tarnished quality reputation. High costs and weak margins will take
longer to fix. |
|

|
|
11 |
12 |
Citi |
U.S. |
21,458 |
19,967 |
7% |
Already the biggest U.S. bank, Citigroup's quest to
generate more revenues from world markets has it introducing its brand to
new emerging markets. |
|

|
|
12 |
10 |
Marlboro |
U.S. |
21,350 |
21,189 |
1% |
It remains firmly in the saddle, particularly outside
the U.S., as it expands into developing markets. |
|

|
|
13 |
13 |
Hewlett-Packard |
U.S. |
20,458 |
18,866 |
8% |
Under CEO Mark Hurd, HP is skipping glitzy image ads to
push specific products. Improving profits and a 40% stock price increase
haven't hurt. |
|
|
|
14 |
14 |
American Express |
U.S. |
19,641 |
18,559 |
6% |
A preeminent financial-services brand among high-end
customers, the company is recasting itself as hip to broaden its appeal to a
younger set. |
|

|
|
15 |
16 |
BMW |
Germany |
19,617 |
17,126 |
15% |
It continues to churn out hot models that buyers love
to drive &Japanese automakers can't seem to replicate. |
|

|
|
16 |
15 |
Gillette |
U.S. |
19,579 |
17,534 |
12% |
Gillette's new six-bladed Fusion razor met with
ridicule when it was introduced. But with Fusion sales soaring, it is still
king. |
|

|
|
17 |
18 |
Louis Vuitton |
France |
17,606 |
16,077 |
10% |
With a glitzy new flagship on the Champs Elysées, the
world's richest luxury brand celebrates yet another year of robust growth. |
|

|
|
18 |
17 |
Cisco |
U.S. |
17,532 |
16,592 |
6% |
Cisco's decision to lead with its Linksys brand for
consumers hasn't made the company a household name yet, but it's helping. |
|

|
|
19 |
19 |
Honda |
Japan |
17,049 |
15,788 |
8% |
As gas prices rise, Honda's gas sippers are helping the
Japanese carmaker gnaw into the Big Three's market share. |
|

|
|
20 |
20 |
Samsung |
S. Korea |
16,169 |
14,956 |
8% |
It is rolling out hot LCD TVs &ever more powerful
memory chips. But it is missing in action with low-end handsets, hurting
market share. |
|
|
|
21 |
25 |
Merrill Lynch |
U.S. |
13,001 |
12,018 |
8% |
It has made a dramatic transformation from sleepy,
stable brokerage to a lean and mean investment bank. |
|

|
|
22 |
23 |
Pepsi |
U.S. |
12,690 |
12,399 |
2% |
It tapped a growing obsession with obesity by shifting
marketing dollars to Diet Pepsi. Another boost? Rival Coke's move to copy
Pepsi Max with Coke Zero. |
|

|
|
23 |
24 |
Nescafe |
Switzerland |
12,507 |
12,241 |
2% |
Sales of instant coffee are piping hot in emerging
markets, while flavored coffees &new products have boosted appeal in Europe. |
|

|
|
24 |
38 |
Google |
U.S. |
12,376 |
8,461 |
46% |
Its recent inclusion as a verb in the Oxford English
Dictionary confirms what competitors feared:Google means search to an army
of Web users. |
|

|
|
25 |
21 |
Dell |
U.S. |
12,256 |
13,231 |
-7% |
The king of the inexpensive PC is trying to regain
trust with a campaign to bolster customer service and technical support.
|
|

|
|
26 |
28 |
Sony |
Japan |
11,695 |
10,754 |
9% |
Sony CEO Howard Stringer has fixed the TV biz, but
other electronics products are struggling. He's betting PlayStation 3 can
help turn things around. |
|

|
|
27 |
26 |
Budweiser |
U.S. |
11,662 |
11,878 |
-2% |
A price war and changing tastes left the No.1 beer
maker with a nasty hangover. The drop in profits for 2005 was its first in a
decade. |
|

|
|
28 |
29 |
HSBC |
Britain |
11,622 |
10,429 |
11% |
With retail, private, &investment banking operations in
76 countries, the world's local bank is fast becoming a major force in
financial services. |
|

|
|
29 |
27 |
Oracle |
U.S. |
11,459 |
10,887 |
5% |
Last year, Oracle bought another major software brand,
Siebel Systems. This year it will have to sew it together and keep its
customers happy. |
|

|
|
30 |
22 |
Ford |
U.S. |
11,056 |
13,159 |
-16% |
The iconic auto brand has declined in every measure.
Weak marketing, bad press, shallow product portfolio, and a bottomed-out
U.S. stock price hurt value. |
|

|
|
31 |
30 |
Nike |
U.S. |
10,897 |
10,114 |
8% |
Nike won in both the casual fashion and hard-core
athletic markets with innovative new products, marketing, and partnerships.
|
|

|
|
32 |
32 |
UPS |
U.S. |
10,712 |
9,923 |
8% |
China-to-U.S. routes are paying off handsomely, while a
big contract to consolidate shipments for Dell is providing a boost back at
home. |
|

|
|
33 |
34 |
JPMorgan |
U.S. |
10,205 |
9,455 |
8% |
Unlike other big banks selling money management units,
JPMorgan is building a brand in the business, as merger integration efforts
continue. |
|

|
|
34 |
36 |
SAP |
Germany |
10,007 |
9,006 |
11% |
New software aimed at smaller businesses helped SAP
extend its customer base beyond blue chips. |
|

|
|
35 |
35 |
Canon |
Japan |
9,968 |
9,044 |
10% |
Digital cameras and copiers helped Canon become one of
Japan's most profitable companies. New boss Tsuneji Uchida brings
technological knowhow. |
|

|
|
36 |
33 |
Morgan Stanley |
U.S. |
9,762 |
9,777 |
0% |
CEO John J. Mack is overhauling the firm, and its
brand, to restore its former reputation as the top investment bank. |
|

|
|
37 |
37 |
Goldman Sachs |
U.S. |
9,640 |
8,495 |
13% |
Goldman's repeated blockbuster trading results have
made it Wall Street's most profitable money machine. |
|

|
|
38 |
31 |
Pfizer |
U.S. |
9,591 |
9,981 |
-4% |
Sold its over-the-counter unit to focus on developing
new prescription drugs—a smart move as powerhouse brands such as Lipitor
face generic competition. |
|

|
|
39 |
41 |
Apple |
U.S. |
9,130 |
7,985 |
14% |
Apple continues to be the style master with its
expanded family of iPods and Mac PCs. Its latest hit: the MacBook line of
laptops. |
|

|
|
40 |
39 |
Kellogg’s |
U.S. |
8,776 |
8,306 |
6% |
The cereal maker is striking an effective balance
between healthy products like Special K and sugary treats like Pop Tarts to
attract both moms and kids. |
|

|
|
41 |
42 |
Ikea |
Sweden |
8,763 |
7,817 |
12% |
Its affordable Scandinavian designs have helped the
Swedish retailer become a household name from San Diego to Shanghai. |
|

|
|
42 |
44 |
UBS |
Switzerland |
8,734 |
7,565 |
15% |
Melding private banking and investment banking
continues to pay off big-time, especially in Europe and Asia. |
|

|
|
43 |
43 |
Novartis |
Switzerland |
7,880 |
7,746 |
2% |
The Swiss pharmaceutical giant is expanding across
everything from prescription drugs to generic medicines, vaccines, and
diagnostics. |
|

|
|
44 |
45 |
Siemens |
Germany |
7,828 |
7,507 |
4% |
New CEO Klaus Kleinfeld has disposed of poor-performing
telecom units, allowing Siemens to focus on businesses such as medical
equipment. |
|

|
|
45 |
46 |
Harley-Davidson |
U.S. |
7,739 |
7,346 |
5% |
Still the king of the hogs. Growing sales to women
augment the loyal customer base of baby boomers and hard-core bikers. |
|

|
|
46 |
49 |
Gucci |
Italy |
7,158 |
6,619 |
8% |
Designer Frida Giannini still can't match predecessor
Tom Ford's star power. But sales of apparel and leather accessories are
growing nicely. |
|

|
|
47 |
55 |
eBay |
U.S. |
6,755 |
5,701 |
18% |
Investors may not like increasing competition from the
likes of Google, but TV ads keep boosting the online marketplace's brand
appeal.
|
|

|
|
48 |
53 |
Philips |
Netherlands |
6,730 |
5,901 |
14% |
Buoyed by the success of its medical equipment and
high-tech consumer gadgets, Philip's focus on cutting-edge, easy-to-use
products is paying off. |
|

|
|
49 |
51 |
Accenture |
Bermuda |
6,728 |
6,142 |
10% |
Bundling consulting and outsourcing gigs is helping
Accenture stay fierce. Last year, sales grew by more than twice the rate of
other tech-services firms. |
|

|
|
50 |
48 |
MTV |
U.S. |
6,627 |
6,647 |
0% |
Now 25, MTV is pushing into broadband with the MTV
Overdrive site, where it faces competition with MySpace and YouTube for
teens' attention. |
|

|
|
51 |
50 |
Nintendo |
Japan |
6,559 |
6,470 |
1% |
Nintendo is No.1 in portable video-game consoles, but
the unconventional new Wii console machine due out this autumn could be a
harder sell. |
|

|
|
52 |
40 |
Gap |
U.S. |
6,416 |
8,195 |
-22% |
Still searching for its fashion identity, the
clothier's sales are fraying as it struggles to dress the twentysomething
crowd for both work and weekend. |
|

|
|
53 |
52 |
L’Oreal |
France |
6,392 |
6,005 |
6% |
This French cosmetics maker's finances are looking
prettier, thanks to a rebound in sluggish European sales. |
|
|
|
54 |
47 |
Heinz |
U.S. |
6,223 |
6,932 |
-10% |
Slimming its portfolio and adding products like Lea &
Perrins hasn't been enough for Heinz to compete with retailers' in-house
brands. |
|

|
|
55 |
58 |
Yahoo! |
U.S. |
6,056 |
5,256 |
15% |
The company risks looking like an also-ran next to
Google, but Yahoo is mining for hits in new areas like social networking and
digital content. |
|

|
|
56 |
56 |
Volkswagen |
Germany |
6,032 |
5,617 |
7% |
Maybe the most resilient brand in its industry. VW is
solving its quality and financial issues, and customers are coming back. |
|

|
|
57 |
54 |
Xerox |
U.S. |
5,918 |
5,705 |
4% |
Xerox' stable of color copiers is bringing in a good
supply of cash, but it has yet to make its mark in the digital world. |
|

|
|
58 |
60 |
Colgate |
U.S. |
5,633 |
5,186 |
9% |
Well into a four-year restructuring, Colgate now has
something to smile about with new launches such as Luminous toothpaste
finding strong demand. |
|

|
|
59 |
57 |
Wrigley’s |
U.S. |
5,449 |
5,543 |
-2% |
With new players chewing away at market share,
Wrigley's has been expanding into areas like candy and mints with brand
extensions and acquisitions. |
|

|
|
60 |
61 |
KFC |
U.S. |
5,350 |
5,112 |
5% |
Avian flu fears in early 2006 slowed KFC's growth in
China, the chain's hottest market, but KFC sales are rebounding. |
|

|
|
61 |
65 |
Chanel |
France |
5,156 |
4,778 |
8% |
Fresh-faced Keira Knightly is replacing bad-girl Kate
Moss as the face of Coco Mademoiselle perfume. |
|

|
|
62 |
59 |
Avon |
U.S. |
5,040 |
5,213 |
-3% |
Avon ladies have been struggling. Poor results in many
markets, including Eastern Europe, forced CEO Andrea Jung to launch a
restructuring this year. |
|

|
|
63 |
66 |
Nestle |
Switzerland |
4,932 |
4,744 |
4% |
Best known for chocolate, Nestlé posts stronger growth
from other products, such as Nestlé Aquarel bottled water. |
|

|
|
64 |
64 |
Kleenex |
U.S. |
4,842 |
4,922 |
-2% |
A mature brand that's working to fend off commodity
status. Emotional advertising is helping buoy its image against private
labels. |
|

|
|
65 |
68 |
Amazon.com |
U.S. |
4,707 |
4,248 |
11% |
Heavy spending on technology for digital media
initiatives has depressed the stock, but free shipping and reliability keep
customers happy. |
|

|
|
66 |
63 |
Pizza Hut |
U.S. |
4,694 |
4,963 |
-5% |
Pizza Hut sales have been drooping as Americans turn
increasingly to sandwiches and Mexican fare. |
|

|
|
67 |
67 |
Danone |
France |
4,638 |
4,513 |
3% |
A growing global appetite for yogurt keeps the French
food and beverage giant in good health. |
|
|
|
68 |
70 |
Caterpillar |
U.S. |
4,580 |
4,085 |
12% |
Demand for Caterpillar's rugged machines and engines
has never been stronger. Cat is on track to top $40 billion in sales this
year. |
|

|
|
69 |
73 |
Motorola |
U.S. |
4,569 |
3,877 |
18% |
New products like the RAZR and SLVR have been a hit, &
a hip marketing campaign behind them is adding luster to the Moto brand. |
|

|
|
70 |
62 |
Kodak |
U.S. |
4,406 |
4,979 |
-12% |
Kodak has defied skeptics by becoming a major player in
digital photography and printing, but profits remain disappointing. |
|

|
|
71 |
71 |
adidas |
Germany |
4,290 |
4,033 |
6% |
The World Cup was a bonanza for the sports-apparel
maker. Securing the sponsorship helped keep archrival Nike at bay before the
world's largest audience. |
|

|
|
72 |
72 |
Rolex |
Switzerland |
4,237 |
3,906 |
8% |
Rolex remains the ultimate luxury brand worldwide, and
with strong sales in China, its appeal continues to spread. |
|

|
|
73 |
77 |
Zara |
Spain |
4,235 |
3,730 |
14% |
With its focus on high fashion at low prices, Europe's
biggest clothing retailer is so popular that it's opening more than a store
a day in 2006. |
|

|
|
74 |
79 |
Audi |
Germany |
4,165 |
3,686 |
13% |
Eye-catching design, hot technology, and a new
American-size SUV called the Q7 are transforming Audi into a serious global
rival to BMW and Mercedes. |
|

|
|
75 |
84 |
Hyundai |
S. Korea |
4,078 |
3,480 |
17% |
Fast shedding its image as a cheap automaker. In the
latest J.D. Power quality survey of new car owners, Hyundai was No.3, behind
Porsche and Lexus. |
|

|
|
76 |
75 |
BP |
Britain |
4,010 |
3,802 |
5% |
Not even an Alaskan oil spill or an explosion at a
Texas refinery has put a dent in BP's strong performance. |
|

|
|
77 |
78 |
Panasonic |
Japan |
3,977 |
3,714 |
7% |
It's a force in flat-screen TVs, digital cameras, and
chips but hasn't turned first-rate technology into better brand equity. |
|

|
|
78 |
74 |
Reuters |
Britain |
3,961 |
3,866 |
2% |
The global news and financial information giant is
moving into derivatives trading with a collaboration with the Chicago
Mercantile Exchange. |
|

|
|
79 |
69 |
Kraft |
U.S. |
3,943 |
4,238 |
-7% |
Fierce competition and rising commodity costs have
dogged the U.S.'s largest foodmaker. Kraft's new CEO needs innovative new
products to revive sales. |
|

|
|
80 |
76 |
Porsche |
Germany |
3,927 |
3,777 |
4% |
ceo Wendelin Wiedeking extends his 10-year winning
streak with perfect timing and precision execution on the Cayman. |
|

|
|
81 |
82 |
Hermes |
France |
3,854 |
3,540 |
9% |
Best known for leather accessories and silk scarves,
Hermes is riding high on the success of a new perfume, Un Jardin Sur le Nil.
|
|

|
|
82 |
81 |
Tiffany & Co. |
U.S. |
3,819 |
3,618 |
6% |
With sales sparkling in many markets, the retailer's
focus on service and design has helped it battle a new set of discount
online competitors. |
|

|
|
83 |
86 |
Hennessy |
France |
3,576 |
3,201 |
12% |
As the brand gets a marketing assist from adoring hip
hop artists in the U.S., the French cognac maker is pushing for growth in
China and India. |
|

|
|
84 |
80 |
Duracell |
U.S. |
3,576 |
3,679 |
-3% |
Duracell has been gaining share in the market for
premium replaceable batteries, but will rechargeable batteries threaten the
long-term outlook? |
|

|
|
85 |
87 |
ING |
Netherlands |
3,474 |
3,177 |
9% |
ING continues its global expansion moving beyond
its banking and insurance roots into the asset management business. |
|

|
|
86 |
89 |
Cartier |
France |
3,360 |
3,050 |
10% |
The popularity of Pasha timepieces and Caresse
d'Orchidées jewelry is putting a sparkle in Cartier sales. |
|

|
|
87 |
92 |
Moet & Chandon |
France |
3,257 |
2,991 |
9% |
Global sales of Champagne are up 54% since 1990, &
Moet's "Be Fabulous" campaign has cemented the brand in the center of
market. |
|
|
|
88 |
91 |
Johnson & Johnson |
U.S. |
3,193 |
3,040 |
5% |
There's more than one way to grow, as J&J showed by
paying $16.6 billion for Pfizer's consumer-products unit.
|
|

|
|
89 |
90 |
Shell |
Britain |
3,173 |
3,048 |
4% |
Despite pension problems and pipeline explosions,
soaring oil prices fueled Shell to record 2005 profits of $23 billion. |
|

|
|
90 |
85 |
Nissan |
Japan |
3,108 |
3,203 |
-3% |
Starved for new models, Nissan's sales have slipped.
New launches, including a remodeled Altima, will be a timely boost for CEO
Carlos Ghosn. |
|

|
|
91 |
99 |
Starbucks |
U.S. |
3,099 |
2,576 |
20% |
Starbucks brings in
customers with lifestyle marketing, pushing music, books, and lunch food to
get them to stick around. |
|

|
|
92 |
NA |
Lexus |
Japan |
3,070 |
NA |
NA |
Toyota's relatively young
Lexus premium brand is No.1 in the U.S., but it's just getting started in
Asia and Europe. |
|

|
|
93 |
88 |
Smirnoff |
Britain |
3,032 |
3,097 |
-2% |
The vodka market continues
to attract new entrants; Smirnoff needs to better define a sophisticated
identity to stay ahead of the pack.
|
|
|
|
94 |
97 |
LG |
S. Korea |
3,010 |
2,645 |
14% |
This Korean electronics
maker is emulating its crosstown rival, Samsung, boasting stylish handsets
and digital TVs. |
|

|
|
95 |
94 |
Bulgari |
Italy |
2,875 |
2,715 |
6% |
Italian jeweler Bulgari
is powering growth with the help of a super-luxury hotel chain and customers
like Madonna. |
|

|
|
96 |
93 |
Prada |
Italy |
2,874 |
2,760 |
4% |
Anti-Establishment Italian
fashionista Miuccia Prada keeps testing the frontiers of taste: Edgy
clothing design, edgier store architecture. |
|

|
|
97 |
95 |
Armani |
Italy |
2,783 |
2,677 |
4% |
Fashion icon Giorgio Armani
proves his appeal extends beyond the closet, as he expands into everything
from minimalist sofas to five-star resorts. |
|

|
|
98 |
NA |
Burberry |
Britain |
2,783 |
NA |
NA |
Moving beyond its signature
plaid, Burberry is beefing up its accessories line and expanding its retail
profile in the U.S. |
|

|
|
99 |
98 |
Nivea |
Germany |
2,692 |
2,576 |
4% |
In a bid to shed its
austere image, the company is expanding into new products such as
skin-firming lotion and men's eye cream. |
|

|
|
100 |
96 |
Levi’s |
U.S. |
2,689 |
2,655 |
1% |
This iconic brand is
fighting to stand out among such high-end names as Earnest Sewn and, at the
mass level, discounters' private-label jeans. |
|
|
Submitted by : Sadia Naeem Awan
|
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