THE brand is king, at least this is the message from the world’s most powerful companies.
THE brand is king, at least this is the message from the world’s most powerful companies.
According to the Interbrand Corporation’s 2002 brand value survey, beverage giant Coca-Cola holds the world’s most valuable brand, which is estimated to be worth $US69.6 billion, followed by Microsoft ($US64.1 billion), IBM ($US51.2 billion) and General Electric ($US41.3 billion).
In a recent survey of top marketing people undertaken by WA Business News, BankWest was found to be the State’s most powerful brand, followed by retail giant Bunnings and dairy producer Peters & Brownes. Chicken Treat and the Lotteries Commission came in equal fourth.
The Brand Agency managing director Ken James said the brand was the most crucial thing to any business.
“If the brand and message are strong then a company will have a better response over a longer period of time,” he said.
“You only need to look at the brands around Australia that have a strong recognition. Those companies can afford to advertise less.”
Mr James said he believed RAC to be the most trusted brand in Australia.
“Everything it says, the public believes,” he said.
University of WA information management and marketing department head Dick Mizerski said a strong brand enabled a company to charge a premium for its products.
“If you don’t have a brand you get lumped into the low-cost producer category,” Professor Mizerski said.
“If you want to get distribution you need a brand name. Supermarket shelves are valuable real estate and a strong brand helps you get your product onto them.
“Look at the super brands in the beverage market, Coca-Cola and Pepsi. They have a stranglehold on distribution. They have control of the supermarket shelves and they are into fast food outlets as well.”
Adlink JLS managing director John Carlson said the success of the brand was critical.
“It’s the values built in to the brand that are tied to the company. The value of the business resides in the brand,” he said.
“There have been instances where companies have been bought solely for the brand.”
Just recently biscuit giant Arnotts – itself once an Australian-owned icon but now part of the US-owned Campbell Soups mix – announced its successful take over of Snack Foods. The takeover delivers it the brands Thins, CCs and Cheezels.
Proprietor of corporate image builder Telos, Mike Gleadell, said a company was its brand. He is responsible for creating such brands as the West Coast Eagles, the Chamber of Commerce and Industry and the Perth Wild-cats.
“When I started out 20 years ago it was corporate image. Somewhere along the line corporate image has become the brand,” Mr Gleadell said.
“The key is to tie some direct corporate value to the whole branding process.”
To this end Mr Gleadell has developed a software package that helps companies to build and then monitor the value of their brands.
Fast food monolith McDonald’s was ranked eight in the Interbrand survey, which estimates its value as $US26.4 billion.
However, its value shows the potential of a brand to a small business that wants to expand.
McDonald’s started out as a small roadside diner and grew to become a global franchising powerhouse. A large factor in its franchising success comes from the strength of its brand, typified by the internationally recognisable golden arches.
Retravision director and Franchise Council of Australia past president John Groppoli said the brand was critical in franchising.
“It will affect your ability to recruit franchisees. Without a strong brand you will struggle to persuade them to pay a premium for your franchise,” he said.
“When times are tough and money is tight, people go for the recognised brands.”
p Next week: Building the brand.
According to the Interbrand Corporation’s 2002 brand value survey, beverage giant Coca-Cola holds the world’s most valuable brand, which is estimated to be worth $US69.6 billion, followed by Microsoft ($US64.1 billion), IBM ($US51.2 billion) and General Electric ($US41.3 billion).
In a recent survey of top marketing people undertaken by WA Business News, BankWest was found to be the State’s most powerful brand, followed by retail giant Bunnings and dairy producer Peters & Brownes. Chicken Treat and the Lotteries Commission came in equal fourth.
The Brand Agency managing director Ken James said the brand was the most crucial thing to any business.
“If the brand and message are strong then a company will have a better response over a longer period of time,” he said.
“You only need to look at the brands around Australia that have a strong recognition. Those companies can afford to advertise less.”
Mr James said he believed RAC to be the most trusted brand in Australia.
“Everything it says, the public believes,” he said.
University of WA information management and marketing department head Dick Mizerski said a strong brand enabled a company to charge a premium for its products.
“If you don’t have a brand you get lumped into the low-cost producer category,” Professor Mizerski said.
“If you want to get distribution you need a brand name. Supermarket shelves are valuable real estate and a strong brand helps you get your product onto them.
“Look at the super brands in the beverage market, Coca-Cola and Pepsi. They have a stranglehold on distribution. They have control of the supermarket shelves and they are into fast food outlets as well.”
Adlink JLS managing director John Carlson said the success of the brand was critical.
“It’s the values built in to the brand that are tied to the company. The value of the business resides in the brand,” he said.
“There have been instances where companies have been bought solely for the brand.”
Just recently biscuit giant Arnotts – itself once an Australian-owned icon but now part of the US-owned Campbell Soups mix – announced its successful take over of Snack Foods. The takeover delivers it the brands Thins, CCs and Cheezels.
Proprietor of corporate image builder Telos, Mike Gleadell, said a company was its brand. He is responsible for creating such brands as the West Coast Eagles, the Chamber of Commerce and Industry and the Perth Wild-cats.
“When I started out 20 years ago it was corporate image. Somewhere along the line corporate image has become the brand,” Mr Gleadell said.
“The key is to tie some direct corporate value to the whole branding process.”
To this end Mr Gleadell has developed a software package that helps companies to build and then monitor the value of their brands.
Fast food monolith McDonald’s was ranked eight in the Interbrand survey, which estimates its value as $US26.4 billion.
However, its value shows the potential of a brand to a small business that wants to expand.
McDonald’s started out as a small roadside diner and grew to become a global franchising powerhouse. A large factor in its franchising success comes from the strength of its brand, typified by the internationally recognisable golden arches.
Retravision director and Franchise Council of Australia past president John Groppoli said the brand was critical in franchising.
“It will affect your ability to recruit franchisees. Without a strong brand you will struggle to persuade them to pay a premium for your franchise,” he said.
“When times are tough and money is tight, people go for the recognised brands.”
p Next week: Building the brand.
