Top 10 global Brands of 2012

1. Top 10 Global Brands of
2012
Presented by:
 Husain Karrar
 Nadir Rahim
 Wajahat Bukhari
 Ali Jiwani
 Salman Kaleem
 Ahmer Mehdi

2. Top 10 brands of 2012

3. Source
www.branddirectory.com

4. Methodology
Methodology:
1. Determine forecast revenues (5 years)
2. Assess the brand‟s strengths
3. Establish royalty rates (Analyze margins and
value drivers)
4. Determine the discount rates (to calculate
NPV)
5. Brand valuation calculation (the NPV of post-
tax royalties equals the brand value)
Royalty relief approach: Ties back to the
commercial reality of brands - their ability to
command a premium in an arm‟s length
transaction.

7.  Apple Inc. Is an American multinational that designs and
markets consumer electronics, computer software and
personal computers. Best known for its Macintosh
computers and line of iPods, iPhones and iPads
 After some ups and downs Apple really hit its stride in
1998 with the release of the iMac
 Apple surpassing Microsoft as the most valuable
technology company is the latest chapter in a stunning
turnaround for Apple and signals an important cultural
shift – consumer tastes have overtaken the needs of
business as the leading force behind shaping today‟s
technology
 The consumer is now more important than the business
and Apples value reflects this.

8. Products
 Despite some negative publicity with antenna
problems Apple can‟t make iPhone 4 units fast
enough to satisfy demand. At the
moment, consumers cannot get enough of Apple
products and with the iPad 3 on the way this
trend looks to continue.
 A testament to this is Regent Street‟s Apple Store
in London as the most profitable retail space in
the world, earning an incredible £2,000 a year
per square foot.
 Named as the most admired company in the US
for the last four years by Fortune
magazine, Apple has incredible brand loyalty.

9.  So successful have Apple been that as of July 2011 they have
bigger financial reserves than the US government; $76.4 billion.
Threats
 Competitors starting to get their handheld devices right it will take
clever strategy to maintain their position.
 2011 has seen Apple continue to pursue its competitors over
copyright infringements. Apple‟s court cases are an unpopular
strategy drawing negative publicity to their brand and the
technology sector as a whole.
 Apple could be greener.
 Apple‟s enthusiasm for litigation is not their only criticism, their
labor, environmental and business practices often come under
fire.
 How will the death of Steve Jobs affect apple in the long run is
yet to be seen.

12.  Google Inc. is an American multinational public
corporation best known for its search engine, cloud
computing and advertising technologies.
 98% of Google‟s revenue is through advertising, using
its popular and free software services to find an
audience.
 In recent years it has put a concerted effort into moving
away from being „just‟ a search engine, buying
YouTube, releasing its internet browser Chrome,
developing Android, a smart phone operating system
and in 2011 releasing the first iteration of its Facebook
alternative Google+ are just a few examples.
 Google plan to release a PC operating system in the
not too distant future.

13.  Since release in 2007, Android, Google‟s smart phone
operating system, has rapidly grown capturing 43.3% of the
smart phone market by the second quarter of 2011
 Meanwhile in more established Google territory their internet
browser Chrome is going from success to success. Released
in 2008, Chrome has grown rapidly capturing a large
proportion of the market and is now the 3rd most used
browser.
 Founded in 2005, Youtube was bought by Google in 2006.
After years of unprofitability it is now starting to emerge as a
chief revenue stream for Google.
 A key part of Google‟s brand position is its motto, „do no evil‟,
a very popular stance with consumers.
 As had made headlines in the news, Google took on China in
2010 when they refused to continue to adhere to the internet
censorship policies of China. This was a huge marketing
success for Google gaining universal support for their actions.

14. Threats
 Android are currently locked in a court case with Oracle
for „knowingly, directly and repeatedly infringing
Oracle‟s Java-related intellectual property.
 Microsoft is currently suing any manufacturers selling
mobile & tablet devices with Android installed.
 It looks as if Google may have spent too long working in
areas where it had no patent protection and is now
suffering from the copyright consequences. This worry
is reflected by Google‟s recent spate of patent
purchases, in the form of directly buying over a
thousand patents from IBM to acquiring Motorola
Mobility outright to gain access to their giant raft of
patents.
 Google‟s latest software launch Google+ is looking to
take on Facebook but with little success so far.

17.  Microsoft Corporation develops, manufactures, licenses
and supports a wide range of predominantly computing
related products.
 Established in 1975 Microsoft rose to domination in the
mid-1980s after the release of MS-DOS a home
computer operating system. Followed by the Microsoft
Windows line of operating systems, Microsoft soon
became the leading business in the office suite market
with Microsoft office.
 In recent years the software giant has diversified into
the games industry with the Xbox and into the
consumer electronics and digital services market with
MSN, Bing, Zune and the Windows Phone OS.
 After its entry into cloud computing Microsoft‟s latest
diversification is into Microsoft-branded retails stores,
the first opening in October 2009.

18.  Microsoft continues to dominate the office suite market with
its Microsoft Office range of products being the first choice for
businesses.
 Microsoft‟s latest operating system (OS), Windows 7,
received a much warmer critical reception than their previous
OS Vista and has sold strongly since release. As of May 2011
Windows 7 is installed on around 30% of computers and
rapidly gaining on first place - Microsoft‟s own Windows XP.
 Originally doing well in the smartphone market Microsoft
missed out on the transition to touch screens losing a large
amount of ground to Google‟s Android in particular. However,
there may be a comeback on the cards with Microsoft‟s latest
version of their Windows Phone 7 (WP7) OS, Mango, a
marked improvement.
 The release of the HTC Trophy with WP7 saw market share
grow by 97% and after Microsoft‟s technical partnership with
handset manufacturing giant Nokia more WP7 phones look
set to enter the market.

19.  May 2011 saw Microsoft buy leading internet communication
business Skype for $8.5bn. Among a host of advantages, the move
will give WP7 and Nokia a competitive offering to take on Google
Voice and Apple‟s Facetime in the smartphone OS market.
Threats
 Microsoft‟s Internet Explorer has been losing popularity for years
and for the first time in ten years more people are using alternative
browsers such as Mozilla‟s Firefox or Google‟s Chrome.
 Microsoft‟s media platform Zune failed to take off and
Bing, Microsoft‟s rebranded search engine, has failed to put a dent
in Google‟s search engine dominance.
 In 2010 Microsoft unveiled a new company tagline, „Be What‟s Next‟
in an attempt to rebrand as an innovative company. However with
no game-changing products on the way it seems a little difficult to
view Microsoft as the company of the future and the branding
change, for the moment at least, seems to be in vein.

21.  IBM is a multinational technology and consulting
firm and holder of more patents than any other US
based technology company.
 Since its inception in 1911, IBM has invented
many products that changed the way we live,
including the ATM, floppy disk, hard drive,
magnetic stripe card and the Universal Product
Code to name a few.
 Recent years have seen IBM move away from
building computers and more towards technology
services where they now get more than half their
revenue. Their current brand position is that of
innovation.
 IBM has managed to continue revenue growth by
expanding into infrastructure for emerging

22.  Coupled with 2010‟s acquisition of SPSS for $1.2bn, IBM will
look to further expand on their information on demand
portfolio and business analytics capabilities – a key area of
their core services business. (SPSS is a computer program
used for survey authoring and deployment, data mining, text
analytics, statistical analysis.)
 The mainframe business is a shrinking but strategically
important area for IBM; as the only real player in the market
their new products tend to only compete with their old ones.
With new machines faster, more powerful, more energy
efficient and with greater usability, IBM is looking to cement
their position as suppliers to governments and businesses.
 In particular IBM have invested heavily in expanding into
emerging markets and providing technology infrastructure to
developing nations. As citizens in China and India start to join
the middle classes, IBM are well positioned to take advantage
of their accompanying needs.

23.  IBM has been buying many different
companies throughout the years acquiring a
glut of patents in the process. As in the past,
the sale of over a thousand patents to Google
July 2011 would appear to be good business
for IBM selling of patents they do not need.
 IBM has a great brand legacy as the inventor
of so many life changing products. This brand
strength resonates with a host of highly
ranked positions in top publications. Fortune
considers IBM as the #1 company for leaders
and the 12th most admired. Newsweek
considers it the greenest company and Fast
Company rank IBM as their 8thmost
innovative business.

25.  Walmart Stores Inc. (Walmart) is the world‟s largest public
corporation by revenue, according to the Fortune Global 500
ranking.
 Walmart serves customers and club members more than 200
million times per week at more than 8,000 retail units under
53 different banners in 15 countries.
 However, the brand value of Walmart fell by $5,145m in 2011
to $36,220m. At the same time, enterprise value has fallen to
$239,634m.
 The company continues to dominate the US retail landscape,
providing employment to more than two million people. It is
also developing a laudable reputation for corporate
philanthropy and is pioneering sustainable practices across
its supply chain.
 The company‟s management is also focused on building up
its online proposition. Walmart‟s CEO Raul Vazuqez is quoted
as saying: „Our goal is to be the biggest and most visited
retail Web site‟.

26.  In uncertain economic times when conscious consumption is
expected to continue, consumers prefer shopping at
supermarkets and retailers they trust.
 With its strong sustainability management, Walmart aims at
increasing its efficiency while pursuing various environmental
goals such as creating zero waste, being supplied 100
percent by renewable energy and by selling products that
sustain both people and the environment.
 Walmart provides financial and volunteer support to more
than 100,000 charitable and community-focused
organisations, following the philosophy of “operating globally
and giving back locally”.
 Walmart follows a strong diversity management by making
diversity part of its business plan.
 With Walmart‟s new brand positioning including the launch of
a new logo in June 2008, the retailer now aims at appearing
more environmental friendly and technology savvy, reflecting
the corporation‟s increased focus on sustainability.

27. Threats
 In 2009, Walmart was involved in a child labour
scandal in the US after children as young as five
were found working on a farm that supplied
blueberries to the company.
 In 2010/2011, Walmart has been accused of
paying female employees less than males for the
same job.
 In 2010, Walmart was repeatedly listed in the
Sweatshop Hall of Shame published by the
International Labour Rights Forum.
 Looking at the recent sweatshop scandals
involving Walmart, consumers may lose trust,
resulting in lower brand loyalty and consequently a
lower brand value.

30.  The Samsung Group is a South Korean
multinational conglomerate with numerous
international affiliated businesses specialising in
everything from TV‟s to cars to insurance.
 Samsung Electronics is the most well known of
these as the world‟s largest tech company by
sales, overtaking HP in 2009.
 However, the size of its lesser known divisions
may surprise, Samsung Heavy Industries is the
world‟s second largest shipbuilder and Samsung
Everland - Korea‟s first theme park - is now the
fifth most visited in the world.
 Samsung Life Insurance is also particularly well
respected in its field.

31.  Founded in 1938, Samsung now has more than
275,000 employees and accounts for about a
fifth of South Korea‟s total exports.
 Samsung have created a strong brand based
around innovation and quality. Having
successfully taken on Japanese technology
giants in the TV market they are now looking to
break Apple‟s smart phone and tablet PC
dominance.
 As of April 2010 all mobiles and MP3 players
produced by Samsung will be free of PVC and
BFR‟s. Growing a „green‟ image is becoming an
increasingly important part of any company‟s
brand and Samsung look to be ahead of its major
competitors, listed 5th on Greenpeace‟s Guide to
Greener Electronics.

32.  Samsung are a World Wide partner of the
London 2012 Olympic Games. In a smart
move they have signed football star and
brand machine David Beckham to be there
Brand Ambassador and look to make major
brand awareness gains in the UK.
 Samsung‟s Japanese competitors are finding
life difficult after the unfortunate events of the
March Tsunami. However these Japanese
firms were already suffering from a
strengthening Yen and aging population
with, for example, Samsung rivals Sony
reporting net losses.

33. Threats
 There are question marks over whether Samsung
has the brand strength to take Apple‟s top spot.
 The two giants of the smart phone and tablet PC
industry continue to clash heads with a spate of
court cases over copyright infringement being
launched by both sides. With both keen to battle in
court it seems there will be no quick solution –
bringing negative publicity to both brands.
 Meanwhile, Samsung is also facing stiff
competition from below, the Taiwanese HTC and
Chinese RIM‟s cheap labour and high technology
are looking to steal Samsung‟s second spot in the
smart phone market.

38.  Coca-Cola is the world‟s best selling
soft drink by volume and one of the
most easily recognisable brands in the
world.
 The company‟s drinks are sold in
stores, restaurants, and vending
machines in more than 200 countries.
 Approximately 74% of the company‟s
volume sales stem from outside the
USA.

39. Threats
 The market for carbonates is under pressure from a strong health
and wellness trend. Non-carbonates continue to prevail as
consumers opt for bottled water, fruit juice, and RTD tea.
 Coca-Cola has responded by pushing its low calorie caffeine free
Coca Cola, but growth in the carbonates sector (low calorie or not)
is falling way short of soft drinks as a whole.
 Moreover, Coca Cola‟s parent company – The Coca Cola Company
(TCCC) – is over reliant on its carbonates sector. TCCC has a vast
portfolio of carbonates brands, and only a few that are really geared
towards health and wellness.
 Another factor that may explain Coca Cola‟s poor 2011 performance
is its 2010 acquisition of Coca Cola Enterprises (CCE), TCCC‟s
largest bottler. Although the move may well give long term benefits
to TCCC – products can be brought to market faster and for cheaper
– the deal has landed TCCC in a substantial amount of debt. Thus,
in the short term, and whilst the company reorganises its already
complex infrastructure, the effect is likely to be negative.

41.  Global Telecommunications Company
headquartered in London, United Kingdom.
 It is the world's largest mobile
telecommunications company measured by
revenues and the world's second-largest
measured by subscribers (behind China Mobile),
with around 341 million proportionate subscribers
as of November 2010.
 It operates networks in over 30 countries and has
partner networks in over 40 additional countries.
 It owns 45% of Verizon Wireless, the largest
mobile telecommunications company in the
United States measured by subscribers.

42.  Vodafone is looking to compensate for
underperformance across the board by restructuring the
company, starting with cuts to over 500 jobs and selling
off none-controlling stakes in various companies such
as China Mobile and SFR.
 As part of this restructuring Vodafone is pursuing
business in emerging markets with a £3.1 billion buyout
of Essar‟s 33% stake in their Indian joint venture.
 The selling off of certain minor stakes in various
Vodafone operations and the cutting of 500 jobs may
appear to be a negative however the overall picture will
show that the company‟s restructuring will result in a
more efficient and profitable Vodafone.
 Vodafone group revenue for 2011 was £45,884m
indicating 3.25% growth. Net profit was reported at
£ 8,776m showing a 3.6% growth.

44.  The e-commerce giant, Amazon, has had a year of
growing revenue and falling profits.
 Amazon, which has established itself as the world‟s
number one online retailer, sells more than three times
as much as its nearest rivals.
 It has the widest range of products as well as the
fastest delivery times and often charges the lowest
price.
 The company initially only sold books, but its success
soon led it to diversify into the many products it retails
today with separate websites for all of its major
country markets.
 It was able to grow very rapidly taking full advantage
of being able to charge prices that excluded sales tax
(within the USA) and other running costs that are
associated with running a brick and mortar business.

45.  Since its inception, the company has
developed from a US online book retailer into
the world‟s largest online merchant, selling its
own range of products, the most prominent of
which is the Amazon Kindle e-book reader.
 The company recently reached a milestone
by revealing that it now sells more e-books
than real books.
 Huge amount of excitement surrounding the
long anticipated Amazon multimedia tablet
which will serve as a platform for more of its
products such as music, games and film.

46. Threats
 Profit at Amazon was down 8%, the fall
was largely due to investments in a large
number of new distribution centres as
well as new technology.
 Amazon will be putting itself in direct
competition with Apple‟s iPad and other
third party tablet devices with the launch
of its own tablet. However, experts have
argued that, unless Amazon is highly
price competitive, it will be a very difficult
market to break into.

47. Thank You …