Philips doubles brand value to $8bn
Dubai, September 29, 2009
Royal Philips Electronics has nearly doubled its estimated total brand value in a span of five years to $8.1 billion, according to leading brand consultant Interbrand in its 'Best Global Brands 2009' report.
The Dutch electronics giant also moved one step up in the ranking of the top 100 global brands as compiled by Interbrand, becoming the 42nd most valuable brand in the world in 2009. Philips was ranked 43rd in 2008, the report said.
Since the company launched its “sense and simplicity” brand promise five years ago in 2004, Philips has outperformed its peer group by almost doubling its estimated total brand value from $4.4 billion at the time.
The brand values were 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 $3 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, said Interbrand CEO Jez Frampton.
Commenting on the announcement, Geert van Kuyck, chief marketing officer at Philips, said, 'We are very proud of the performance of the Philips brand, demonstrating our ability to translate our brand promise of ‘sense and simplicity’ into a positive customer experience designed around their needs.'
'This achievement clearly illustrates that Philips is creating value for its customers, and retains their trust in a very challenging market environment,' he added.
Frampton pointed out that this year has seen a general downward shift in brand value in most industries due to these unprecedented economic circumstances.
'However, the competitive strength of the Philips brand increased across all its businesses - this is a testament to the brand’s ability to sustain the business despite these conditions. We at Interbrand are convinced of the enduring strength of the Philips brand and are confident of its ability to reap the benefits of future opportunities,” he explained..-TradeArabia News Service