Toyota regains the most valuable brand title from BMW

[Sovereign]

Brand value can be a fickle thing. It’s impossible to measure accurately and it can be affected by numerous volatile factors. But at the end of the day, if a consumer is willing to pay more for one brand over another then brand value becomes a vital indicator of a company’s overall value.

Nowhere is this more apparent than in the auto industry, where a consumer’s perception of a brand can often be the main decisive factor when it comes to buying a new car. One of the best indicators of how valuable each brand is compared to its rivals is the annual BrandZ Top 100 global survey, conducted by influential market research firm Millward Brown.

In its latest study, Millward Brown researchers found that Toyota is once again the most valuable automotive brand in the world, with an estimated value of $24.5 billion, a gain of 12 percent on last year’s result. BMW, which has held the top spot since 2010, has been relegated to second, with its value coming in at $24 billion, a drop of 2 percent on last year.

Toyota’s strong gain was said to be brought about by increasing interest in hybridvehicles while BMW’s image was tarnished slightly by its performance in the slumping European market. Interestingly, only four other automakers made it into the BrandZ Top 100 global survey this year: Mercedes-Benz, Honda, Nissan and Volkswagen.

Apple, which has been the top ranking brand since 2011, is once again on top, with an estimated brand value of $185 billion.

For the study, brand value is essentially the sum of all earnings that a company’s brand alone is expected to generate. It is calculated based on information from surveyed consumers, who are asked to judge a brand based on attributes that are important to them.

World's most valuable car brands in 2013 in $ billion; rank in top global 100; % value change from 2012

1) Toyota $24.5 -- (23) +12
2) BMW $24.0 -- (24) -2
3) Mercedes-Benz $18.0 -- (43) +11
4) Honda $12.4 -- (71) -2
5) Nissan $10.2 -- (86) +3
6) Volkswagen $8.8 -- 3 (100) +3
7) Ford $7.6 -- (*) +8
8) Audi $5.5 -- (*) +18
9) Hyundai $4.0 -- (*) +11
10) Lexus $3.5 -- (*) +2

(number) = overall top 100 position
(*) = Did not rank in the top 100

Source:http://autos.yahoo.com/news/toyota-overtakes-bmw-to-regain-most-valuable-brand-title-202908276.html

I would like to ask a very difficult question here.

Which brand between the two would you like to buy if money is no object?

 

[Mr. Mercedes]

MERCEDES - THE ONLY WAY IS UP!

 

[Mr. Mercedes]

Why is Audi as a brand so undervalued, given it actually outsells Benz and is nipping at BMW's heals.

 

[EnI]

Why is Audi as a brand so undervalued, given it actually outsells Benz and is nipping at BMW's heals.

Because the most sales are coming from the low-end models like A1, Q3, A3 etc
A4 incl A5, A6 incl A7, A8 & Q7 sales are well behind BMW & MB models in the respected segments.

Axe the A1 sales from the total sales figures - a model that's completely lacking in the MB portfolio, and offered as MINI by BMW Group - and the Audi sales figures aren't that brilliant anymore. The fell behind MB sales instantly.

 

[ACE]

Because the most sales are coming from the low-end models like A1, Q3, A3 etc .

Nice theory. How does it work for Toyota?

Why is Audi as a brand so undervalued, given it actually outsells Benz and is nipping at BMW's heals.

For the study, brand value is essentially the sum of all earnings that a company’s brand alone is expected to generate.

Let me translate this for you: Brand Value = the premium you pay over what each unit costs to produce multiplied by the number of units expected to be sold, e.g. Apple is number one because they sell lots of units at more than double what they cost to produce.

I like to think of brand value as how much consumers are being ripped off or if I look at it from the retailers point of view; how well the marketing department is doing.

 

[Human]

BMW's my brand baby and surely moving forward. Also on track at keeping it up going forward.

Hyundai's no.9 position is not good

 

[DblPen]

Nice theory. How does it work for Toyota?


For the study, brand value is essentially the sum of all earnings that a company’s brand alone is expected to generate.

Let me translate this for you: Brand Value = the premium you pay over what each unit costs to produce multiplied by the number of units expected to be sold, e.g. Apple is number one because they sell lots of units at more than double what they cost to produce.

I like to think of brand value as how much consumers are being ripped off or if I look at it from the retailers point of view; how well the marketing department is doing.

so toyota rips ppl off their money and lexus dont?

 

[EnI]

Nice theory. How does it work for Toyota?

The question was about Audi being undervalued compared to BMW & MB even if selling almost as many cars as BMW and more than MB. There was no Toyota in that question at all.

Look at Lexus ... Selling much less than Audi, yet having almost no low-end models in the portfolio, apart from CT.

Regarding non-premium brands ... I guess the factor is reputation (quality, reliability, safety etc) & volume.

Comparing premium vs non-premium brands is like comparing apples to oranges.

 

[ACE]

so toyota rips ppl off their money and lexus dont?

Perhaps you missed this part: "multiplied by the number of units expected to be sold". Premium (brand value) per unit is probably similar.

PS. If they showed brand value per unit then Porsche would be number 1. Nobody charges for the badge on the car quite like Porsche.

 

[Human]

BMW's my brand baby and surely moving forward. Also on track at keeping it up going forward.

Hyundai's no.9 position is not good

I am not so sure anymore. When I did my write-up and replies to other threads I realised that lots of revenue could be lost in UKL + Brand-i, especially the latter Sh!t!

 

[DblPen]

Perhaps you missed this part: "multiplied by the number of units expected to be sold". Premium (brand value) per unit is probably similar.

PS. If they showed brand value per unit then Porsche would be number 1. Nobody charges for the badge on the car quite like Porsche.

so basically its how much profit do they generate?

 

[ACE]

so basically its how much profit do they generate?

It's how much profit they expect to generate due to the brand alone. Don't forget that making a brand valuable actually costs money through expenses like advertising.

In accounting, brand value is an intangible asset. It is notoriously difficult to value and the accounting values assigned to them should be taken with a large pinch of salt.

 

[DblPen]

It's how much profit they expect to generate due to the brand alone. Don't forget that making a brand valuable actually costs money through expenses like advertising.

In accounting, brand value is an intangible asset. It is notoriously difficult to value and the accounting values assigned to them should be taken with a large pinch of salt.

ok, thank you for explanation, but why audi is so much behind bmw then? they sell a bit less cars, but being owned by VW they should be able to make cars cheaper than bmw

 

[ACE]

ok, thank you for explanation, but why audi is so much behind bmw then? they sell a bit less cars, but being owned by VW they should be able to make cars cheaper than bmw

1. BMW sell more of the cars that have larger per unit brand value, which is what I think Eni was trying to say earlier in the thread.
2. The brand value numbers are made up. These numbers are from a survey and the first sentence of the article didn't try to hide this fact "Brand value can be a fickle thing. It’s impossible to measure accurately"