Our first step in valuing the brands was to determine revenue and earnings before interest and taxes for each one. P.S. As of July 2020, Apple was worth an estimated $704 billion, which makes the value of all its brands around $234 billion. Although they have the opportunity to pay less for other products in the same niche, Apple’s already won. Brands from 16 countries made the final cut. Brands are crucial when it comes to beverages and luxury goods, but less so with airlines and fuel, when price and convenience are more important. The company’s services division includes its App Store, Apple Pay, iTunes, cloud services and more. I've profiled a bunch of athletes that go by one name: LeBron, Shaq, Danica and others. Despite a globalized economy, developing relationships with local vendors is an important element of measuring brand equity. Social Media, https://robbenmedia.com/wp-content/uploads/2020/08/apple-brand-value-scaled.jpg, https://robbenmedia.com/wp-content/uploads/2018/07/logo-final-wrm.png. U.S. companies landed 56 brands among the top 100, as well as 80% of the top 10. We required brands to have more than a token presence in the U.S., which eliminated some large brands like multinational telecom firm Vodafone and Chinese e-commerce behemoth Alibaba. Website Design Your email address will not be published. Apple had a brand equity of $233.7B and we explain what that means. No, the forward thinking executives at the pioneering electronics company worked tirelessly to improve production process and service delivery times to optimize its brand equity. Facebook Ads Agency One more note about Apple and measuring brand equity. Apple tops Forbes’ annual look at the world’s most valuable brands for the ninth straight time. I also spend a lot of my time digging into what athletes. Next, we allocated a percentage of those earnings to the brand based on the role brands play in each industry. Amazon’s brand promise is the single greatest factor of their growth. Apple's brand is valued at over $200 billion, in part because of the iPhone. Understand your customers, make them aware of what you have to offer, and deliver the products and services that drive repeat visits by the same customers. Coca-Cola is the top brand outside of tech, with a value of $59.2 billion, up 3%, and ranked sixth overall. Simply, brand equity is the value of a brand. Apple is The Beatles of the electronics device niche. Customers trust the brand will work seamlessly across all categories in the Apple ecosystem, which has helped make the Cupertino, California-based company the most valuable in the world. Forbes averaged earnings before interest and taxes (EBIT) over the past three years and subtracted from earnings a charge of 8% of the brand’s capital employed, figuring a generic brand should be able to earn at least 8% on this capital. © 2020 Forbes Media LLC. Two critically important factors help your company measure brand loyalty. Now the same brand building strategies do not work identically for all companies. I joined Forbes in 1998 after working 3 years at Financial World magazine. This elusive quality is what most companies can only dream about. It is the first time a brand crossed the $200 billion threshold. Does your business rank at the top of Google for your main products or services? Tech brands were the top gainers, led by e-commerce giant Amazon, up 37% to $97 billion. The key is to develop a consistent brand message that implements one or more of the following branding strategies. A well-conceived SEO strategy might not be enough for measuring brand equity. The premium paid for a product can be tangible or intangible. Customers trust the brand will work seamlessly across all categories in the Apple ecosystem, which has helped make the Cupertino, California-based company … Building a powerful brand keeps you connected to current customers, as well as attracts potential customers to your business. It is now the second biggest segment for Apple after the iPhone, with revenue of $37 billion in 2018, and Morgan Stanley expects it to top $100 billion in 2023. Brand equity is like adding a layer of icing to an already decorated cake. Apple has made an art form of moving its customer base from one product category to another. Review the following financial metrics to determine where your company’s brands stand: Output is simply measuring brand equity through your company’s marketing efforts. Forbes applied the corporate tax rate in the parent company’s home country to that net earnings figure. One tech brand that was dinged over the past 12 months is Facebook, which ranks fifth overall. Services like Apply Pay are the next frontier for the world's most valuable brand. Consumers associate media interviews with credibility for businesses. Apple did not generate brand equity of $234 billion by relying only on introducing high-quality products. Dropbox represents one of the models for implementing a brand-building customer referral program. Tangible premiums cover the profit margin earned because of the sale of a superior product. For Apple, brand awareness is off the charts. Be consistent in performance to ensure your brand is always in top shape. Knowing this, does your logo powerfully promote your company’s brand message? Only on introducing high-quality products a unique set of preferences 2.33 trillion, up 12 % last. Products in the minds of customers for days to come habit ” principle selling a product can be or..., up 8 % over last year the stock jumped 5 % on the.! 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