SAP rises to 35th position among the world's top 100 brands

The company showed a record-breaking 14% rise in brand value this year, putting it a higher brand value than some mass consumption products like Nestle, MTV, Johnson & Johnson, Fedex and Yahoo!. The ranking is based on a detailed analysis of how much of the product's sales are driven by the brand name, weighted for factors such as market leadership, stability, and the ability to sell in different countries.

'SAP has survived the technology downturn to emerge more solid than ever, registering the third largest gain among the top 100 brands,' announced a BusinessWeek spokesperson, proving that SAP AG has withstood the intense pressure of fluctuation in global markets, and still surfaced as a strong contender among international technology giants.

Essam Enany, President, SAP Arabia, the exclusive regional partner of SAP AG in the Middle East said: 'This brand valuation indicates that now, more than ever, customers see the power of a strong brand. At a time when customers, investors, and even employees are questioning who they can trust, the ability of a trusted brand to deliver proven value is of the utmost importance. SAP Arabia intends to build on the brand value of the world's recognised leader in providing collaborative business solutions, by providing localised solutions that respond to the unique needs of the Middle East market'.

'The Middle East represents a growing market and SAP AG is strongly committed to providing onsite support to SAP Arabia, to offer its customers in the GCC region leading-edge solutions that can enhance their business operations,' said Michael Bluemner, General Manager for Arabian countries, SAP AG. 'In addition,' he continued, 'we want to ensure that the SAP Brand is going to be as highly ranked in the GCC region as it is elsewhere in the world.'

Unlike most brand surveys that depend on opinion polls or advertising expenditures to determine brand value, the BusinessWeek survey is based on the Interbrand methodology which values brands the same way analysts value other assets: on the basis of likely future earnings. The rating is based on two important criteria; the brands have to be global in nature, deriving 20% or more of sales from outside their home country and the public availability of marketing and financial data on which to base the valuation. The survey only ranks brands that have a value greater than US$ 1 billion.

To calculate the brand strength, Interbrand looks at seven factors, including the brand's market leadership, its stability, and its ability to cross geographical and cultural borders. It conducts a risk analysis to produce a discount rate, which is applied to the brand earnings to come up with a net present value of the brand. Business Week and Interbrand believe that this figure comes closest to representing the true economic value of the complex array of forces that make up a brand.

SAP AG has also been rated the third most valuable brand in Germany, after Mercedes and BMW.