She added that how a company treats employees drives the conversation around reputation, which explains why — although Google is still reputable — is not in the top In November, Google fired four people it said had violated confidentiality policies , news of which went viral because the employees had organized or participated in protests against the company.
And in August, senators urged it to make contractors permanent after six months. Another notable brand on the list is Adidas , which has appeared in the top 10 for the past four years. It comes in at eighth place, way ahead of Nike , which comes 30 th. Nike's reputation has fallen since the Reputation Institute's survey, which could be due to its attention-grabbing advertising such as its Emmy-winning "Dream Crazy" ad starring Colin Kaepernick.
This year's top 10 all manage to balance elements such as financial performance with corporate responsibility, Levy added. They're all very deeply rooted in the history. Skip Navigation. Markets Pre-Markets U. Most fundamentally, it provides a true picture of the value of a business.
Internally generated intangible assets are generally omitted from company accounts, which means that they are often overlooked, leaving businesses undervalued. Brand valuations can therefore help entrepreneurs to achieve a fair price for their business, rather than selling themselves short. Similarly, a comprehensive view of a brand valuation can help defend against hostile takeover. This was in fact how the very first brand valuation, back in , was used.
For an acquiring organisation, brand value should be a critical concern too, it can help to identify value propositions but equally, identifying a sub-par brand should be a point of due diligence.
Finally, when franchising or licensing, a brand valuation is essential leverage to set the optimum price, as Lego will know from its panoply of media licensing deals. A valuation of the transferrable brand asset therefore has key uses.
Brands affect a variety of stakeholders however, not just customers. Blue-chip employers are able to pay lower wages and attract applicants in greater numbers due to their brand prestige and the endorsement effect for alumni.
Strategic partnerships are easier to form, regulators are more easily persuaded and media influencers, though fickle, are more likely to cover and promote well-known, respected brands.
Trust is, naturally, a hugely important consideration for lenders and so their relationship with a brand is critical. The same applies to investors, however of even greater interest to them is recent research showing that investment in the most heavily branded organisations those where brand value accounts for the highest proportion of enterprise value can nearly double returns from the market as a whole.
How can the average brand hope to emulate Lego? The firm has clearly been at pains to rebuild and preserve the strength of its brand. This can be achieved with an ultra-conservative approach, one which brands such as Ferrari have employed in the past, however that leads to missed opportunities for credible brand extension that could generate huge returns.
In contrast, Lego has invested heavily in research, providing a thorough understanding of what underpins brand strength, so that commercial opportunities can be pursued without compromising the brand. In truth, it can take years to accumulate the brand equity required to create, maintain and leverage a brand of such strength. However, with so much financial value underpinned by brands, even the slightest change to strategy or marketing investment can yield or cost millions.
Feel free to email me at editorial. You must be logged in to post a comment. David Haigh, CEO of Brand Finance and the face behind the Global rankings, gives us the scoop on exactly why the brick building giant is a marketing champion.
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