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What’s really important?

A multinational company or someone doing what they say they will when they say they will? A website that lists every book in the world or a website that works and gives you the information you need? A £2bn supermarket chain or someone on a checkout smiling at you? The world's favourite airline or getting to your destination on time? A glitzy advertising campaign or someone that picks up the phone after one ring?

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The power of a brand

This post was last edited by Alex Cohen, on March 8, 2010 @ 11:05 am

Coca-Cola is the ‘best global brand’ according to Interbrand’s 2008 survery. It is valued at just under $67m.

How is a brand, in most cases an intangible asset, worth that much?

I read an interesting study recently which helps to answer that question:

Coke and Pepsi are great rivals. When people drink Coke and Pepsi blind i.e. they can’t see their labels, 51% preferred Pepsi whilst only 44% preferred Coke (5% had no preference). However when consumers can see the labels only 23% prefer Pepsi and 65% prefer Coke.

Looking at this from the view of shareholders, in 2008 Coke’s revenues were $32bn, whilst Pepsi’s were $43bn, however analysts and investors have more confidence in Coke valuing the company at $112bn compared to Pepsi’s $83bn.

This is all down to the brand, Coke doesn’t sell fizzy water, as their website states: Coke ‘exists to benefit and refresh everyone it touches’.