Coca-Cola ranked 'world's most valuable brand'

The soft-drink giant saw an increase in brand value from $68.9 billion (AED 251 billion) in 2001 to $69.6 billion (AED 254 billion) in 2002. Microsoft, IBM and General Electric round out the top four slots respectively.

Coca-Cola's strong World Cup 2002 global campaign strategy significantly contributed to increased sales figures in developing markets. This marketing initiative bolstered the brand's value an additional $700 million (AED 2.555 billion), resulting in a one per cent gain in overall brand value.

Philippe Georgiou, Coca-Cola Arabia, said: "Being ranked the world's top valued brand is a testament to our corporate values which focus on maintaining good relationships with our customers and the communities in which we operate. A strong brand name is proving invaluable amidst a volatile global economy. As many consumers modify their spending habits, strong brands like Coca-Cola, are more likely to remain profitable due to their 'track-record', or ability to deliver a reliable and time-tested product.

"Coca-Cola Gulf brought the company's global World Cup campaign home to Gulf residents by launching the Live the World Cup with Coca-Cola promotion which continues to reward regional customers with over 40 million prizes. In addition, Coca-Cola flew Gulf Nationals from Bahrain, Oman, Qatar and the UAE to Korea for the FIFA 2002 World Cup," he added.

To be considered amongst the world's top 100 brands companies must have a value greater than $1 billion, be global in nature - deriving at least 20% of sales from outside their country of origin - and have publicly accessible financial data. Coca-Cola was ranked solely on its products bearing the 'Coca-Cola' brand name, thereby excluding the company's entire product range.

Analysts from J.P. Morgan Chase & Co calculated a value for the brand's profits based on estimated future earnings. The brand's strength was then analyzed to determine the security of those future brand earnings. Brand strength is calculated incorporating several factors including the brand's market leadership, its stability, and its ability to transcend geographical and cultural borders. This risk analysis generated a net value for the brand.