Has the economic downturn affected the strongest brands?

Each year Interbrand conducts a brand survey that evaluates which brands are the strongest. It’s based on valuing three dimensions: a financial strength measurement, a measure of how the brand influences customer demand at the point of purchase, and a benchmark of the brand’s ability to secure ongoing customer demand (measured through loyalty, repurchase and retention). The results are in and Coca Cola once again won as the brand with the estimated highest brand value, with IBM and Microsoft in close 2nd and 3rd positions. No big surprise.

So didn’t the bad economy and the struggles of many companies have any effect? Well, looking at the top 100 list it shows that companies like Citi (19th) and AIG (54th) declined from 11th and 47th places respectively last year. But their estimated brand values have actually not changed that much (Citi facing a 14% decline in brand value and AIG just a 6% decline). One interpretation could be, that once the brand value has been established, it benefits the brand long term and value doesn’t easily collapse in a tight economy – like sales.

If that’s the case then now, more than ever, is the time to invest in your brand. Now when the competition is struggling. No doubt that brands with a high brand value will be the winners in the future – when the economy finally makes its turn and allows for everybody to join the spending spree again.

A few of the companies worth watching are Apple (24th), Nike (29th) and Starbucks (85th). Each has been focused on their brand strategy so It will be interesting to see how they rank next year.

The biggest jump in the rankings was Google – coming from 20th position to the top 10. I predict we’ll see them move up even higher in the years to come. I’d be curious to know your thoughts on these or other brands…

For the full list of the top 100 brands in 2008, go to

http://www.interbrand.com/best_global_brands.aspx?year=2008&langid=1000

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