Best Global Brands of 2018

What is a brand? Does a brand have a financial value? These are critical questions that drive the strategic marketing decisions of corporations around the world. In general, marketers define brand as the position that a company/product holds in the minds of the consumers. It follows then that if the brand holds a position in consumers’ minds, then it would definitely translate into a financial value for companies.

Each year, Interbrand does a financial analysis that seeks to define, in dollars, the value of a company’s brand – the result is the annual Best Global Brands ranking. In order to be included in the analysis the brand must be global – it must have successfully crossed geographic and cultural boundaries:

  • At least 30% of revenue must come from outside the brand’s home country.
  • It must have presence in at least three continents as well as broad geographic coverage in emerging markets.
  • There must be sufficient publicly available data on the brand’s financial performance.
  • Economic profit must be expected to be positive over the longer term, delivering a return above the brand’s operating and financing costs.
  • The brand must have a public profile and awareness above and beyond its own marketplace.

Interbrand’s brand valuation methodology seeks to determine, in customer and financial terms, the contribution of the brand to the company’s business results. There are three key components in the methodology for the valuations: analyses of the financial performance of the branded products or services, of the role the brand plays in the purchase decision, and of the competitive strength of the brand.

The results – well, see for yourself by viewing the interactive report at https://www.interbrand.com/best-brands/best-global-brands/2018/ranking/.

Group Activities and Discussion Questions:

  1. Ask students to define “brand.” What is it? Does it have value to a company?
  2. Have students take out a piece of paper (or write answer on laptops). Ask them to choose what they thing are the top 10 most valuable brands in the world. Then show the top 10 list from the Global Brand report.
  3. Bring up the Web site: https://www.interbrand.com/best-brands/best-global-brands/2018/
  4. Show the video explaining the report: https://www.interbrand.com/best-brands/best-global-brands/methodology/
  5. Show students several of the sections within the site and view some of the videos as a class.
  6. Divide students into teams and assign each team an industry category to examine: automotive, apparel, beverage, electronics, energy, etc.
  7. Have each team present key findings from the industry sector they examined.
  8. How can these findings be applied in marketing strategies?

Source: Brandchannel.com, Interbrand.com

Leave a comment

Filed under Classroom Activities

Hi-Tech Fitness

Hate working out? It can be such a hassle – there is travel time, using equipment with other sweaty people, showering in messy locker rooms, and not getting enough personal training attention to make a difference. But still, fitness and health are important. What can be done differently to make workouts more enjoyable and fulfilling? Where’s the technology?

Enter Tonal: a San Francisco-based start-up company that aims to revolutionize how people workout by using high-tech to reinvent the workout system. The innovative product and service combines unique hardware, software, and an interactive LED screen to create a workout experience that doesn’t rely on old-school barbells and plates. Tonal can even sense when a workout is too easy, and add more weights for the next set to set the right level of difficulty.

Tonal is high-tech and effective, but not cheap. The machine itself is $2,995, plus custom smart accessories at $495, and a monthly subscription of $49 per month for 12-months minimum. The Tonal system mounts to a wall (similar to flat-screen TV). For the optimal experience, the system only needs access to a 7-foot by 7-foot space. Tonal measures reps, sets, range of motion, time under tension, power, and volume. The monthly subscription provides expert coaching via video with step-by-step instructions.

No pain, no gain.

Group Activities and Discussion Questions:

  1. Poll students:Where do they work out? How much do they spend on gym memberships? On equipment?
  2. View Tonal’s Web site: https://www.tonal.com/
  3. Discuss the importance of clearly defining a target market.
  4. For Tonal, what is the target market?
  5. Divide students into teams and have each team develop a profile of a target market for Tonal. Include demographics, psychographics, behaviors, values, attitudes, etc.
  6. Based on the target market profile, what makes this product unique for these customers?
  7. Debrief the exercise.

Source:  New York Times

Leave a comment

Filed under Classroom Activities

SiriusXM Buys Pandora

SiriusXM satellite radio provider is buying music streaming service Pandora for a $3.5 billion stock deal. The deal will create the world’s largest audio entertainment company. Why should SiriusXM buy Pandora? Because SiriusXM wants to gain people who listen to music but don’t want to pay for the premium SiriusXM service.

SiriusXM offers streaming without advertisements for $10.99 to $20.99 per month per car with up to 140+ channels, or streaming on any device for the same amount of $10.99 to $20.99 per month, or combine both options for all-access streaming. SiriusXM has 36 million subscribers in North America.

On the other hand, Pandora, which has 70 million active listeners (5.6 million who are paying members) can be used at no-cost as long as listeners don’t mind listening to advertisements. Or, listeners can buy monthly subscriptions at $4.99 or $9.99 per month for services that eliminate advertisements and offer personalized stations and create playlists, plus other options.

SiriusXM isn’t new to Pandora; it provided $480 million of funding to Pandora last year. Pandora faces stiff competition from other music services such as Apple Music, Amazon, Tidal, and Spotify.

The war to gain new listeners is heating up!

Group Activities and Discussion Questions:

  1. Poll students:How much music do they listen to each day? Where is their music coming from? How much do they pay each month?
  2. View SiriusXM: https://www.siriusxm.com/
  3. View Pandora: https://www.pandora.com/
  4. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
  5. Which strategy is SiriusXM using? Why?
  6. Divide students into teams. Have each team research the different prices and packages offered by each music streaming company.
  7. Compare price structures. Which offers listeners the better deal?

Source:  Wall Street Journal, New York Times, other sources

Leave a comment

Filed under Classroom Activities