Tag Archives: Brand Finance

What’s the Cost of a Bad Brand and What’s a Good One Worth?

What’s your brand really worth to you? If you’re Coca Cola it’s a heck of a lot, in the past year alone Brand Finance estimate that Coke lost $9bn in Brand Value! In comparison BP and it’s recent Gulf of Mexico disaster lost $3.4bn in brand value last year, only a third of Coke’s loss? Does anyone recall a major Coke slick last year? So what did Coca Cola do so disastrously wrong last year? Not much actually, it appears to be more down to a shift in consumer interests, moving to more healthy and non-carbonated drinks, ouch!

Nokia took the biggest hit of anyone losing $8.8bn in Brand Value last year! The Top of the crop is Google, with a Brand Value (BV) of $44bn

But what does this all mean? To get a bit of perspective, Coke’s BV is now $26bn = 37% of it’s $70bn Market Capital (MC),  Nokia’s BV is $9.6bn = 28% of it’s $27bn MC, Google’s $44bn = 30% of it’s $143bn MC… while the likes of Apple, (whom appear to be in the press all the time) have a BV of $29.5bn which is only 12% of it’s $244bn MC, meaning Coke’s Brand Value is worth 3 times as much to it’s share price than Apple!

While ExxonMobil (the worlds largest company) with a MC of $312bn, has a BV of $14bn, which is just 4.3%

So as you can see, brands are very important, but they can be far more valuable to some companies than others.

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