People often make purchasing decisions predominantly based on the brand. That is, they may pick one product over another based on a company's brand reputation, even if the quality of the offerings are the same. That's why brand value is important. So which Australian companies are deemed to be the most valuable in terms of brand? Here's the top 10 list.
Brand Finance specialising in appraising brand value of companies around the world. How it calculates the brand value of companies is based on a number of different factors including emotional connection of customers to the brand, financial performance and sustainability.
In Brand Finance's 2017 report for Australia, it had found the total value of the 100 most valuable Australian brands is nearly $143 billion. Here's the list of the 10 most valuable Australian brands. We've also included their brand value for 2017 and 2016 along with their brand rating:
|Rank||Brand||Brand Value 2017/2016||Brand Rating|
|1||Telstra||$14.275 billion/$14.581 billion (down 2%)||AAA-|
|2||Commonwealth Bank||$10.706 billion/$9.786 billion (up 9%)||AAA-|
|3||ANZ||$10.597 billion/$10.157 billion (up 4%)||AA+|
|4||NAB||$8.443 billion/$7.558 billion (up 12%)||AAA-|
|5||Woolworths||$8.378 billion/$10.560 billion (down 21%)||AA|
|6||Coles||$7.936 billion/$6.572 billion (up 21%)||AA+|
|7||Westpac||$7.604 billion/$7.961 billion (down 4%)||AA+-|
|8||BHP Billiton||$5.148 billion/$7.183 billion (down 28%)||AA|
|9||Optus||$4.325 billion/$4.933 billion (down 12%)||AA+-|
|10||Macquarie||$3.253 billion/$3.955 billion (down 18%)||AA-|
Telstra was top dog last year and has taken the number one spot again this year. It appears last year's multiple network outages haven't damaged the telco's brand position too much, although Brand Finance recognised that the company's customer brand equity fell slightly over 2016.
Brand Finance Australia’s managing director Mark Crowe said: “It is testimony to Telstra’s brand strength that despite a decline of 18% in enterprise value, Telstra’s brand value has only decreased slightly by 2%.”
Despite Optus retaining its 9th position on the list, its brand value has dropped by a significant amount, largely attributed to worsening business performance compared to last year.
Woolworth's brand value also plummeted; by a whopping 21%.
"Falling profits and a significant decline in brand strength, along with strong competition, will continue to put pressure on Woolworths brand value, unless an improvement in customer metrics can be achieved," Crowe said.
Coles, on the other hand, has increased its brand value by 21%.
"Coles is now poised to pass Woolworths as Australia’s most valuable retail brand,” Crowe said.