Monday, 22 September 2008

Philips Claims “Significant” Increase in Brand Value

Royal Philips Electronics said that it has noticed a “significant” growth in its total brand value in the 2008 ranking of the top-100 global brands as compiled annually by leading brand consultant Interbrand.

In this year’s ranking, the total estimated value of the Philips brand has apparently increased by 8% to USD 8.3 billion, from USD 7.7 billion in 2007.

Philips is also ranked the 43rd most valuable brand in Interbrand’s 2008 ranking of best global brands.

“We are very proud that we have increased our brand value for the fifth year in a row in Interbrand’s annual assessment of the best brands worldwide. The consistency of our achievement clearly illustrates that our sense and simplicity brand promise, grounded in deep insights into customer and end-user needs, allows us to design and market truly differentiating products and solutions in the areas of Health and Well-being,” said Geert van Kuyck, Philips’ Chief Marketing Officer.

In 2004, when Philips launched its "sense and simplicity" brand campaign, Philips’ total brand value was USD 4.4 billion. In 2005, Philips increased its total brand value to USD 5.9 billion, and this has steadily increased since then to attain a total value today of USD 8.3 billion.

Brand values are determined using the method Interbrand pioneered nearly 20 years ago and has since used to value more than 5,000 brands. Brand value is calculated as the net present value of the earnings the brand is expected to generate and secure in the future. To be considered, the brands must have a minimum brand value of USD3.4 billion, achieve about one-third of their earnings outside of their home country, have publicly available marketing and financial data, and have a wider public profile beyond their direct customer base.