fERRARI
The Brand Finance Global 500, is an annual study
conducted by Brand Finance in which the world’s biggest brands are put to the
test and evaluated to determine which are the strongest and most valuable.
Brand Finance defines brand as the “Trademark and associated IP including the word mark and trademark iconography”
Brand Finance defines brand as the “Trademark and associated IP including the word mark and trademark iconography”
Financial accounting
and reporting standards requires a clear definition of what intellectual
property is included in the definition of ‘brand’.
IN 2014, FERRARI HAS BEEN NAMED THE WORLD’S MOST POWERFUL
BRAND
The legendary
Italian carmaker scores highly on a wide variety of measures on Brand Finance’s
Brand Strength Index, from desirability, loyalty and consumer sentiment to
visual identity, online presence and employee satisfaction.
Ferrari is one of
only eleven brands (including Google, Hermès, Coca-Cola, Disney, Rolex and F1
racing rivals Red Bull) to be awarded an AAA+ brand rating and has the highest
overall score.
Brand ratings are
derived from the Brand Strength Index which benchmarks the strength, risk and
future potential of a brand relative to its competitors on a scale ranging from
D to AAA. It is conceptually similar to a credit rating.
BRAND RATINGS DEFINITIONS
AAA Extremely strong
AA Very strong
A Strong
BBB-B Average
CCC-C Weak
DDD-D Failing
ALL BRAND VALUES IN THE REPORT ARE AS AT 30 JUNE 2014
Brand Finance Chief Executive David Haigh states, “The prancing horse on its yellow badge is instantly recognizable the world over, even where roads have yet to reach.”
In its home country
and among its many admirers worldwide Ferrari inspires more than just brand
loyalty; it’s more of a cultish, even quasi- religious devotion.
“Ferrari's Brand Power Is Indisputable” ~ David Haigh
Last year Ferrari
took the bold step of limiting production, capping the number of cars produced
each year at 7,000 to protect the exclusivity of the brand. Revenue growth will
continue to be driven through personalisation and retail opportunities.
With
many brands that are powerful in their own right willing to pay handsomely for
even fleeting associations with the Ferrari name, licensing and corporate
partnerships will continue to be another important and lucrative area.
Though Ferrari is
the world’s most powerful brand, being a niche, luxury brand with an officially
capped production, it is perhaps unsurprising that it is some way off being the
world’s most valuable.
Tech brands in
general have tightened their grip on the Brand Finance Global 500. Walmart is
the only non-tech brand remaining in the top 10. Walmart, once the world’s most valuable brand, now
sits in 9th having been overtaken by Amazon. The usurpation of the world’s
biggest retail brand by the biggest online retailer represents yet another coup
for tech brands over ‘real-world’ businesses.
BRAND FINANCEBrand Finance is an independent global business focused on advising strongly branded organisations on how to maximize value through the effective management of their brands and intangible assets.
Clients include international brand owners, tax authorities, IP lawyers and investment banks. Our work is frequently peer- reviewed by the big four audit practices and our reports have also been accepted by various regulatory bodies, including the UK Takeover Panel.
THE ABOVE EXTRACTS ARE FROM BRANDFINANCE® SOUTH AFRICA’S 50 MOST VALUABLE BRANDS - JULY 2014. THE ABOVE FERRARI PHOTOGRAPHS ARE TAKEN BY THE BLOG AUTHOR - GAIL MINGARD, AT KYALAMI RACE TRACK ON 19 JULY 2014
