The world's best brands

Coca-Cola, Microsoft, IBM, GE still rule the roost as the world's best brands, says the BusinessWeek-Interbrand study on global brands.

For the fourth consecutive year, BusinessWeek teamed up with Interbrand, a leading brand consultancy, to publish a ranking of The 100 Best Global Brands (by dollar value).

This year's rankings rewarded companies that build communities around their products and services creating 'cult brands' that enable customers to feel as if they own the brand, said BusinessWeek in a media release.

Cutting-edge technology companies did well as four of the top five biggest gainers in brand value are from the tech sector, while long-established brands such as Coca-Cola, Microsoft, Disney and Ford actually lost brand value.

Based on its high brand loyalty and strong sales of the iPod, Apple (No. 43) is the biggest mover with a 24% gain in brand value.

Other big gainers include Yahoo!, No. 61 (up 17%); Amazon, No. 66 (up 22%); Samsung, No. 21 (up 16%); and HSBC, No. 33 (up 15%). Online auctioneer eBay debuts on the list this year at No. 60.

BusinessWeek said even established brands such as Coca-Cola (No. 1) and Microsoft (No. 2) "have started to recognize the need to nurture stronger ties with consumers."

"Microsoft has started mini-trade shows in airport lounges and Coca-Cola has opened hip 'Coke Red Lounges' for teenagers in suburban malls in the US.

Reflecting a recovering global economy, overall brand values have risen 2.2 per cent. Although American firms still dominate holding eight of the top ten spots, the overall number of American companies on the list dropped from 64 to 58.

The improving economy helped boost the financial services industry this year. Investment house Goldman Sachs gained 13% in brand value to land at No. 37. Other gainers in the industry include J P Morgan, No. 30 (up 7%); Morgan Stanley, No. 27 (up 8%); and Merrill Lynch, No. 26 (up 9%).

Despite the recovering US economy, some sectors suffered. The fast food industry was particularly hard hit as a result of bad publicity and consumers focused on obesity and eating healthier. Burger King fell off the list entirely, while Pizza Hut (No. 55) and KFC (No. 54) both saw their brand values drop. With a new healthy menu, McDonald's held its own, gaining 1% in brand value and moving to No. 7 on the list.

There was also significant movement in the automobile sector. Luxury brand behemoth Mercedes was edged out of the top ten by Toyota. Mercedes, beset by quality concerns  and a lull in the product cycle saw its car sales fall slightly in 2003.

Toyota, in contrast, is on track to overtake Ford in worldwide sales. American weakness in global automotive brands became even more apparent. Ford lost 15% in brand value due to increased competition in the US and continued weakness in European markets. In contrast, Audi's leading position in Asian markets makes it a new entrant at No. 81.

Luxury goods fared well on this year's list. Cartier, whose brand restructuring has positioned it to take advantage of the rebound in 'indulgence spending,' debuted on the list at No. 91.

Very strong top line growth and wide margins allowed cosmetics brand Estee Lauder to make the Global Brands list debuting at No. 92.

Luxury carmaker Porsche also makes the list for the first time at No. 74. The success of Porsche's Cayenne SUV proves that the brand can appeal to more than just middle-aged men.

Brand values were determined using the method Interbrand pioneered 16 years ago and has since used to

value more than 3,500 brands. Value is calculated as the net present value of the earnings that the brand is expected to generate and secure in the future for the time frame from July 1, 2003 to June 30, 2004.

The 100 most valuable global brands with a value greater that $2.1 billion were selected according to two criteria: First, the brands had to be global, generating significant earnings in the main global markets. Second, there had to be sufficient marketing and financial data publicly available for preparing a reasonable valuation.