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THE 100
TOP BRANDS
What’s in a name? Plenty, if you play your cards right
t was a tough year to build a brand—or defend one percentage of overall revenues are accounted for by the

I against the corrosive effects of a bear market, financial

scandals, and shifting consumer priorities. For proof,
look no further than the fact that roughly half of the
100 global brands that Interbrand Corp. and Business-
Week ranked this year fell in value compared with a year
ago. In this environment, just holding your own is an
accomplishment.
power of the brand. Next, with the help of analysts from J. P.
Morgan Chase & Co., Interbrand projects net earnings for
that segment of the business. Interbrand then deducts a
charge for the cost of owning the tangible assets, on the
theory that whatever income is generated beyond that cost is
due to intangible factors. This is the economic value added by
things like patents, customer lists, and, of course, the brand.
To qualify for our ranking, brands had to have a value The next step is to winnow the earnings generated by the
greater than $1 billion. They were selected according to two brand from the earnings generated by other intangibles. For
criteria: They had to be global in na- example, are people buying Shell gaso-
ture, deriving 20% or more of sales line because of the brand name or be-
from outside their home country. They Special Report cause the gas station is conveniently
also had to have publicly available mar- located? Interbrand uses market re-
keting and financial data on which to base the valuation. search and interviews with industry executives to sift through
That excluded some big brands, such as Visa International, those variables.
the BBC, and Mars. The final phase is to analyze the strength of the brand to
How do you place a value on a brand? Some attempts figure out how risky those future brand earnings are. To
rely on little more than opinion polls or ad spending. Busi- calculate the brand’s strength, Interbrand looks at seven
nessWeek selected Interbrand’s method because it values factors, including the brand’s market leadership, its stability,
brands the same way analysts value other assets: on the and its ability to cross geographical and cultural borders.
basis of how much they’re likely to earn in the future. Those The risk analysis produces a discount rate that is applied to
projected profits are then discounted to a present value the brand earnings to come up with a net present value of
based on how risky the projected earnings are—that is, the the brand. BusinessWeek and Interbrand believe this figure
likelihood that they will in fact materialize. comes closest to representing the true economic value of
To start the process, Interbrand first figures out what that complex array of forces that make up a brand.

The Global Brand Scoreboard

RANK 2002 2001 PERCENT COUNTRY DESCRIPTION
BRAND VALUE BRAND VALUE CHANGE OF
$BILLIONS $BILLIONS OWNERSHIP

Still the best brand by far. Growth in the developing world offset so-so
1 COCA-COLA 69.64 68.95 +1% U.S. new products like Diet Coke with Lemon.
Its name is still dragged through the courtroom, but the biggest challenge
2 MICROSOFT 64.09 65.07 –2 U.S.
is stagnant PC purchases.
Good thing Big Blue was rebuilt on services, which remains the most
3 IBM 51.19 52.75 –3 U.S. promising segment for tech spending.
The retirement of Jack Welch and angst over Corporate America took a toll
4 GE 41.31 42.40 –3 U.S. on the GE name.
“Intel Inside” put it on the map, but now the brand faces tough competi-
5 INTEL 30.86 34.67 –11 U.S. tion and sluggish PC sales.
Still the cell-phone brand of choice among consumers, but overall sales of
6 NOKIA 29.97 35.04 –14 Finland mobile handsets are weak.
Even monster hit Monsters Inc. couldn’t compensate for a post-September
7 DISNEY 29.26 32.59 –10 U.S. 11 falloff at theme parks.
Who remembers Mad Cow disease? Global expansion continues as nega-
8 McDONALD’S 26.38 25.29 +4 U.S.
tive PR fades.
The iconic brand uses line extensions and merchandising clout to over-
9 MARLBORO 24.15 22.05 +10 U.S. come court challenges and skyrocketing price of cigs.
Data: Interbrand Corp., J.P. Morgan Chase & Co., BusinessWeek

BusinessWeek / August 5, 2002 95

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The Global Brand Scoreboard

RANK 2002 2001 PERCENT COUNTRY DESCRIPTION
BRAND VALUE BRAND VALUE CHANGE OF
$BILLIONS $BILLIONS OWNERSHIP

The leading luxury car brand, but its low-end models suffered from poor
10 MERCEDES 21.01 21.73 –3 Germany reviews.
At least Ford admitted to pursuing strategies that were “poorly conceived
11 FORD 20.40 30.09 –32 U.S. or poorly timed.” But where’s the fix?
Cruising along after capturing broad mid-market appeal in the U.S., in-
12 TOYOTA 19.45 18.58 +5 Japan cluding new SUVs and pickups.
A slowing U.S. economy and a hit from the Enron fiasco hurt both results
13 CITIBANK 18.07 19.01 –5 U.S. and image.
More and more, its printers are commodities. Bickering during the Com-
14 HEWLETT-PACKARD 16.78 17.98 –7 U.S. paq merger also didn’t boost HP’s image.
Wary U.S. consumers, penny-pinching corporations, and white-hot compe-
15 AMERICAN EXPRESS 16.29 16.92 –4 U.S. tition in credit cards made it a tough year for the prestigious brand.
The popping of the Internet bubble, and the plunge in telecom spending,
16 CISCO 16.22 17.21 –6 U.S. drew down brand value.
Nobody loves telecom these days. But at least it’s faring better than
17 AT&T 16.06 22.83 –30 U.S. WorldCom.
Solid, dependable, and nurturing a growing reputation for earth-friendly
18 HONDA 15.06 14.64 +3 Japan “hybrid” technology.
The King of Blades is still gaining share, as higher marketing boosts the
19 GILLETTE 14.96 15.30 –2 U.S. premium Mach 3 and Venus razors.
Bold new designs—from the space-age 7-series sedan to the athletic X5
20 BMW 14.43 13.86 +4 Germany SUV—helped BMW boost sales and profit margins.
Still known for its design flair, Sony gadgets have come under attack by
21 SONY 13.90 15.01 –7 Japan Samsung.
Cheap instant coffee is losing favor as people consume more java outside
22 NESCAFE 12.84 13.25 –3 Switzerland the home.
Look out below: Oracle’s value has eroded along with tech spending.
23 ORACLE 11.51 12.22 –6 U.S.

Nimble advertising for Bud and soaring Bud Light gives it continued dom-
24 BUDWEISER 11.35 10.84 +5 U.S. inance in the U.S. and U.K.
Investors have long memories, so Merrill’s conflict-of-interest fiasco be-
25 MERRILL LYNCH 11.23 15.02 –25 U.S. tween bankers and analysts could linger.
Few on Wall Street emerged unscathed from the earnings controversy, but
26 MORGAN STANLEY 11.20 N/A N/A U.S. Morgan Stanley also had a poor performance underwriting IPOs.
A big grab for market share by Dell, coupled with the histrionics over
27 COMPAQ 9.80 12.35 –21 U.S. Compaq’s merger with HP, hurt a tired brand.
Pfizer took the high ground on a hot-button issue with initiative to sell
28 PFIZER 9.77 8.95 +9 U.S. reduced-price drugs.
The market was bad enough, but J.P. Morgan also had big negative expo-
29 J.P. MORGAN 9.69 N/A N/A U.S. sure in the Enron collapse.
Kodak so far hasn’t transferred the equity from its longtime dominance of
30 KODAK 9.67 10.80 –10 U.S. photo into the digital market.
Proved that its built-to-order business model works in bad times as well as
31 DELL 9.24 8.27 +12 U.S. good.
On top of the price battle faced by its GameCube, the handheld Game
32 NINTENDO 9.22 9.46 –3 Japan Boy Advance was only a middling success.
Vioxx faces patent expiration and new-drug pipeline is dry. Now, investors
33 MERCK 9.14 9.67 –6 U.S. are ill over accounting questions.
Revved up brand value with brilliant product design and arresting
34 SAMSUNG 8.31 6.37 +30 S. Korea marketing.
Strides in penetrating soccer market, and signs it may do the same in
35 NIKE 7.72 7.59 +2 U.S. golf, augur well for this premium brand.
Its slide accelerated as consumers turned elsewhere for cutting-edge
36 GAP 7.41 8.75 –15 U.S. styles or lower prices.
A classic brand that exploits core markets with memorable extensions in
37 HEINZ 7.35 7.06 +4 U.S.
everything from ketchup to tuna.
Global car sales are down, and the new Beetle was not the megahit VW
38 VOLKSWAGEN 7.21 7.34 –2 Germany might have hoped for.
CEO Henry Paulson spoke out about declining corporate credibility, but so
39 GOLDMAN SACHS 7.19 7.87 –9 U.S. far it hasn’t rubbed off on the Goldman brand.
Data: Interbrand Corp., J.P. Morgan Chase & Co., BusinessWeek

96 BusinessWeek / August 5, 2002

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The Global Brand Scoreboard

RANK 2002 2001 PERCENT COUNTRY DESCRIPTION
BRAND VALUE BRAND VALUE CHANGE OF
$BILLIONS $BILLIONS OWNERSHIP

Stabs at innovation, and a Disney alliance that put Buzz Lightyear on ce-
40 KELLOGG’S 7.19 7.01 +3 U.S. real boxes, renewed the brand’s relevance.
Still a fashion must-have, particularly in Asia, but sales have been anemic
41 LOUIS VUITTON 7.05 7.05 0 France because of post-September 11 travel decline.
SAP has delivered on theme, “The best-run e-businesses run SAP.” The
42 SAP 6.78 6.31 +7 Germany software maker benefited from a flight to established suppliers.
A reasonable performance in a camera market that is exhibiting almost no
43 CANON 6.72 6.68 +2 Japan growth. And it’s gaining on Xerox in copiers.
Resonant brand benefited from the weak economy, which made more cus-
44 IKEA 6.55 6.01 +9 Sweden tomers willing to assemble their own tables.
Innovations keep coming, like lemon-flavored Pepsi Twist. But biggest
45 PEPSI 6.39 6.21 +3 U.S. challenge is a consumer shift to bottled water and juices.
Masterful job of selling Baby Boomers on a high-margin symbol of youth-
46 HARLEY-DAVIDSON 6.27 5.53 +13 U.S. ful rebellion.
Phenomenal success of The Osbournes shows MTV still has its spark. Un-
47 MTV 6.08 6.60 –8 U.S. fortunately, the ad market is dead.
Tough market, but the chain upgraded its restaurants and added new
48 PIZZA HUT 6.05 6.00 +1 U.S. products like P-Zone, Twisted Crust, and Quad.
Introduced Popcorn Chicken, new Chicken Twister sandwich, and restau-
49 KFC 5.35 5.26 +2 U.S. rants co-branded with corporate sibling Pizza Hut.
A well-received new iMac couldn’t overcome weak sales to consumers and
50 APPLE 5.32 5.46 –3 U.S. design professionals.
Trying to dodge its stodgy image, with digital and high-speed copiers. But
51 XEROX 5.31 6.02 –12 U.S. a financial cloud lingers.
The ongoing allure of lead designer Tom Ford could offset a slow start to
52 GUCCI 5.30 5.37 –1 Italy 2002.
In light of former parent Arthur Andersen’s fate, Accenture’s branding ini-
53 ACCENTURE 5.18 N/A N/A U.S. tiative looks like sheer brilliance.
No slowdown here. The brand now gets more than half its sales outside
54 L’OREAL 5.08 N/A N/A France Europe, thanks to smart acquisitions.
Kleenex held most of its value because of innovations like Kleenex Trav-
55 KLEENEX 5.04 5.09 –1 U.S. ellers, for car door pockets.
Sun still leads in servers, but must deal with the implosion of the once-
56 SUN 4.78 5.15 –7 U.S. fertile dot-com sector.
Innovations kept the Wrigley’s brand fresh. Can “functional” products like
57 WRIGLEY’S 4.75 4.53 +5 U.S. tooth-cleaning gum add further shine?
Reuters lost considerable ground to Bloomberg as customers fled its old-
58 REUTERS 4.61 5.24 –12 Britain fashioned image and poor service.
A toothpaste/mouthwash combo and other novelties helped offset slipping
59 COLGATE 4.60 4.57 +1 U.S. share in other product areas.
Potent in Europe but weak in North America, this brand was dogged by
60 PHILIPS 4.56 4.90 –7 Netherlands tough consumer-electronics markets and lackluster U.S. marketing.
The king of chocolate, cookies, and baby food is eating up U.S. ice cream
61 NESTLE 4.43 N/A N/A Switzerland with Dreyer’s.
A makeover of its sales force and product lines boosted U.S. sales. But
62 AVON 4.40 4.37 +1 U.S. Avon has stumbled with its foray into retail sales.
Few signs of promised synergies following merger with Time Warner, and
63 AOL 4.33 4.50 –4 U.S. AOL’s subscriber growth has slowed.
The perfume and fashion icon held its own in a tough global economy.
64 CHANEL 4.27 4.27 0 France

Still dominates lineup stretching from cheese to salad dressing, and isn’t
65 KRAFT 4.08 4.03 +1 U.S. afraid to use its muscle to get the best store display.
No. 1 in yogurt outside the U.S. and No. 2 in water, Danone is well-posi-
66 DANONE 4.05 N/A N/A France tioned to benefit from health worries.
Forget the ad slump, Yahoo needs to prove it is relevant to consumers as
67 YAHOO! 3.86 4.38 –12 U.S.
they become more experienced at browsing.
Benefited from World Cup fever, but still has little appeal among trend-
68 ADIDAS 3.69 3.66 +1 Germany setting black and Hispanic youth.
There’s nothing like a classy watch in bad times. But improved sales must
69 ROLEX 3.69 3.70 0 Switzerland wait.
Data: Interbrand Corp., J.P. Morgan Chase & Co., BusinessWeek

98 BusinessWeek / August 5, 2002

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The Global Brand Scoreboard

RANK 2002 2001 PERCENT COUNTRY DESCRIPTION
BRAND VALUE BRAND VALUE CHANGE OF
$BILLIONS $BILLIONS OWNERSHIP

Ads are way off but big news year has helped the magazine’s reputation.
70 TIME 3.68 3.72 –1 U.S.

Ericsson keeps falling further behind Nokia, Samsung, and Motorola.

71 ERICSSON 3.59 7.07 –49 Sweden

With sales down in Japan, the world’s most famous jewelry retailer has
72 TIFFANY 3.48 3.48 0 U.S. had to sell more lower-priced gold and silver.
Until new designs hit store shelves, Levi’s will continue to lose ground to
73 LEVI’S 3.45 3.75 –8 U.S. youth-oriented labels.
Suffered from softness in phone handsets and semiconductors, but its
74 MOTOROLA 3.42 3.77 –9 U.S. greater diversification was a hedge.
Forced to spend heavily on promotions to hold onto market share, cutting
75 DURACELL 3.41 4.14 –18 U.S. profit margins.
While efforts to recast itself as environmentally conscious are controver-
76 BP 3.39 3.24 +4 Britain sial, the BP brand is motoring along.
Rental car business suffered as more Americans stayed home.
77 HERTZ 3.36 3.62 –7 U.S.

Solid marketing and the cachet of its Cuban heritage have the rum brand
78 BACARDI 3.34 3.20 +4 Bermuda on a growth track.
The No.1 heavy-equipment brand has steamrolled into merchandise and
79 CATERPILLAR 3.22 N/A N/A U.S. clothing, playing off its rough-and-tumble image.
Amazon looks to extend its brand with more retail alliances like the ones
80 AMAZON.COM 3.18 3.13 +1 U.S. it has with Target and Toys ‘R’ Us.
It has overhauled product lines and chopped costs, but Panasonic hasn’t
81 PANASONIC 3.14 3.50 –10 Japan been able to pull off a Samsung-like makeover.
The grounding of airlines last fall hit Boeing hard. Now it wants to be
82 BOEING 2.97 4.06 –27 U.S. known as much for its space and defense businesses.
Ad spending got a boost in 2001, but the brand still has little exposure in
83 SHELL 2.81 2.84 –1 Brit./Neth. the U.S.
Smirnoff got a shot of relevance thanks to the explosive growth of ready-
84 SMIRNOFF 2.72 2.59 +5 Britain to-drink Smirnoff Ice.
The strong image of caring built up by its baby products stood the
85 JOHNSON & JOHNSON 2.51 N/A N/A U.S. company in good stead.
Fashion exposure was helped by two high-profile store openings but poor
86 PRADA 2.49 N/A N/A Italy market conditions have stalled moves to go public yet again.
The champagne brand should pick up fizz after clearing away unsold in-
87 MOET & CHANDON 2.45 2.47 –1 France ventory from Millennium celebrations.
Its reputation for quality—and high profits—remains intact despite efforts
88 HEINEKEN 2.40 2.27 +6 Netherlands to branch out through acquisitions.

Tough year for any oil company, but Mobil’s strong U.S. focus helped it
89 MOBIL 2.36 2.41 –2 U.S.
fare better than most.
Diageo’s poor supervision of franchisees led to inconsistent quality. Will a
90 BURGER KING 2.16 2.43 –11 U.S. new owner do better?
Nivea capitalized on an image of wholesomeness to branch out beyond its
91 NIVEA 2.06 1.78 +16 Germany core hand and body cream products.
Its staid format got a radical re-do, including color reproduction. But the Journal
92 WALL STREET JOURNAL 1.96 2.18 –10 U.S. still got smacked by the ad recession.
Starbucks hasn’t stumbled yet. There are still gaps to fill in the U.S., as it
93 STARBUCKS 1.96 1.76 +12 U.S. gears up for expansion in Asia and Europe.
Another year of brand erosion as little girls opted for more fashionable
94 BARBIE 1.94 2.04 –5 U.S. toys.
Modest growth and a U.S. focus helped this brand in a difficult year at
95 POLO RALPH LAUREN 1.93 1.91 +1 U.S.
the luxury end of the rag trade.
FedEx consolidated its leadership and secured more flights into Hong
96 FEDEX 1.92 1.89 +2 U.S. Kong to service booming Asian markets.
“Keep walking” ad message focusing on personal journeys seemed to
97 JOHNNIE WALKER 1.65 1.65 0 Britain strike a chord with younger drinkers.
Jack Daniel’s “birthday parties” celebrated the brand’s 150th year.
98 JACK DANIEL’S 1.58 1.58 0 U.S.

In a world of commodities, 3M churns out continual innovation to com-

99 3M 1.58 N/A N/A U.S. mand premium prices.
Twenty new stores slated to open from Milan to Hong Kong this year are
100 ARMANI 1.51 1.49 +1 Italy helping overcome the downturn.
Data: Interbrand Corp., J.P. Morgan Chase & Co., BusinessWeek

BusinessWeek / August 5, 2002 99

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