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					Best Russian
Brands 2008
Ranking by Brand Value




1 | Best Russian Brands 2008 | Interbrand | 10 November 2008
Agenda



                                                1. Creating and managing brand value
                                                2. The Best Russian Brands League Table
                                                3. Breakdowns by industry and trends
                                                4. New entrants
                                                5. Selected brand profiles
                                                6. Top four decliners
                                                7. Our approach and experience
                                                8. Appendices




2 | Best Russian Brands 2008 | Interbrand | 10 November 2008
1. Creating and managing
   brand value




3 | Best Russian Brands 2008 | Interbrand | 10 November 2008
Welcome to Best Russian Brands 2008



Interbrand in cooperation with Kommersant DENGI magazine              -the financial industry in Russia seems not (yet) affected as
presents the fourth annual ranking of the 40 most valuable            much as in others countries, there is even one newcomer from
Russian brands arranged by brand value.                               the insurance fields, losses are minor. Sberbank as the by far
                                                                      biggest and state-owned bank even gained value, representing
Interbrand pioneered with the method of brand valuation 20            “a safe financial heaven” for a lot of Russians. The leading
years ago and has since used to value more than 5000 brands.          financial brands in Russia are very B2C-oriented which seems to
The same brand valuation methodology has been employed to             help them compared to the international giants
arrive at the top 40 most valuable Russian brands.
                                                                      We also would like to stress the point that brand valuation is not
We present our ranking when economies all around the world            the same as pricing on a stock exchange. Brands are not so
including Russia are facing huge financial and possibly economic      volatile but obviously more stable assets. You can see that
problems. We based our calculations on the data available one         comparing the dynamics of brands’ values in our ranking and
month before the date of publication. We think that especially        the changes on a stock market. Stocks position themselves
the next ranking will be crucial and we will see who and how will     mostly to the investment community, while brands position
have handled this crisis.                                             themselves mostly to the consumer.
The following insights could highlight the specifics of this year’s   Overall we believe that in a crisis, where ‘trust’ is one of the
ranking and the situation of Russian brands:                          most used words the role of brands will incresae. Or to put it
-brands number 1 and 2 would from a pure value point of view          differently: you can downsize, rightsize, focus and outsource,
fit in the Best Global Brands around rank 50, the first three take    but, you can’t fire the brand. Instead, brands must become
more than 60% of the total value                                      more effective and efficient, in order to not only survive, but
                                                                      win.
-the top 10 again proved to be stable and demonstrate
increasing professional brand management capabilities                 We hope you enjoy this report and that it provides valuable
                                                                      information in the creation, management and measurement of
-from 40 brands only six come from a pre-soviet era with two          your brands. We would like to congratulate the brands that are
prominent new entries in Automotive. Maybe the beginning of a         featured in our 2008 brand league table and wish you every
trend                                                                 success in your exciting journey forward.
-10 newcomers prove the ongoing changes in the market, half           Sincerely,
of them entered due to newly available financial data
-the number of industries increased with entries from Real
Estate and increased number of brands in Retail and Automotive
                                                                      Nicola Stanisch
                                                                      Managing Director
                                                                      Interbrand Zintzmeyer & Lux, Moscow


4 | Best Russian Brands 2008 | Interbrand | 10 November 2008
Why the ranking is important



The Best Russian Brands study provides a brand                 It tells you whether you are investing
value that is a top-line measure of economic                   adequately into your brand. Putting an economic
performance driven by the brand, stating what the              value on a brand (overall and by segment) can help
particular brand is worth overall and among                    make a strong business case for marketing
competitors. Brand value brings to marketing what              investments, overall and across a company’s
“revenue goals” or “financial hurdle rates” bring to           portfolio.
other aspects of the business.
                                                               It tells you whether you have a marketing
The payoff comes when one looks behind the number              strategy that positions your brand around the
– a single number only tells you so much. It’s                 right messages. Your customers make decisions
important to understand what drives brand value:               every day between you and your competitor;
intangible earnings (the cash flow of a business not           analyzing the role of brand in those decisions helps
associated with tangible assets such as equipment or           focus your strategy on the attributes that
materials), the role of brand (a measure of how much           differentiate your brand from others and strengthen
brand influences purchasing decisions) and brand               your relationship with your best customers, ensuring
strength (a benchmark of a brand’s relative risk               future earnings.
compared to competitors).
                                                               It tells you whether you have the right short-
Understanding the drivers of brand value can inform            term tactics to drive value. By analyzing the
management action, from overall business strategy              strength of your brand, you can target marketing
to specific marketing tactics. It’s an easy-to-                campaigns to the most valuable customers and
understand metric to help brand owners determine               against your most formidable competitors, driving
where they are, where they’re going and how to get             short-term sales.
there. It helps to make branding a more important
                                                               There are many insights from this ranking, but the
aspect of global business management.
                                                               core message is clear: brands are important assets
                                                               requiring proactive and consistent investment,
                                                               management, and measurement.

5 | Best Russian Brands 2008 | Interbrand | 10 November 2008
2. The Best Russian Brands
   League Table




6 | Best Russian Brands 2008 | Interbrand | 10 November 2008
TOP 10 BRANDS




7 | Best Russian Brands 2008 | Interbrand | 10 November 2008
11-20 BRANDS




8 | Best Russian Brands 2008 | Interbrand | 10 November 2008
21-30 BRANDS




9 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 31-40 BRANDS




10 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 3. Breakdowns by industry
    and trends




11 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 Breakdown by number



 Break down 2008                                                Trends 2005-2007 (units)

                                                                   INDUSTRY BREAKDOWN        2008 2007 2006

                                                                ALCOHOLIC BEVERAGES           4    5    5
                                                                AUTOMOTIVE                    3    1    1
                                                                BEVERAGES                     4    5    4
                                                                CONFECTION RY                 2    3    3
                                                                ENERGY                        0    0    1
                                                                FINANCIAL SERVICES (BANKS)    5    5    7
                                                                FOOD                          2    3    5
                                                                CONSTRUCTION                  2    0    0
                                                                GAS                           0    0    1
                                                                INSURANCE                     2    2    1
                                                                MEDIA                         2    2    0
                                                                METAL                         2    2    0
                                                                OIL                           4    4    4
                                                                PERSONAL CARE                 0    0    1
                                                                RETAIL                        3    2    2
                                                                STEEL                         2    1    1
                                                                TELECOM                       3    5    3
                                                                WHITE GOODS                   0    0    1

12 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 Breakdown by brand value



 Break down 2008                                                Trends 2005-2007 ($b)

                                                                   INDUSTRY BREAKDOWN        2008 2007 2006

                                                                ALCOHOLIC BEVERAGES          2,97   3,17   2,29
                                                                AUTOMOTIVE                   0,34   0,14   0,03
                                                                BEVERAGES                    0,57   0,61   0,45
                                                                CONFECTION RY                0,40   0,53   0,45
                                                                ENERGY                        0      0     0,07
                                                                FINANCIAL SERVICES (BANKS)   1,35   1,38   1,35
                                                                FOOD                         0,56   0,63   0,70
                                                                CONSTRUCTION                 0,40    0      0
                                                                GAS                           0      0     0,19
                                                                INSURANCE                    0,30   0,32   0,17
                                                                MEDIA                        0,53   0,52    0
                                                                METAL                        0,33   0,32    0
                                                                OIL                          2,26   2,22   2,62
                                                                PERSONAL CARE                 0      0     0,04
                                                                RETAIL                       0,55   0,45   0,34
                                                                STEEL                        0,49   0,33   0,42
                                                                TELECOM                       0      0      0
                                                                WHITE GOODS                  14,9   13,8   10,6

13 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 4. New entrants




14 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 New entrants



                                                                     Brand Value
                                                            Rank      2008 (m)     Growth

                                                                20     $212         New

                                                                22     $195         New

                                                                23     $191         New

                                                                24     $187         New

                                                                32     $108         New

                                                                33     $106        Re-entry

                                                                34     $104         New

                                                                35     $98
                                                                      $3,338       Re-entry

                                                                36     $96
                                                                      $3,338        New

                                                                38     $82
                                                                      $3,338        New

15 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 New entrants



 • MIRAX is a brand which is well known in the world
   markets of real estate. It is associated with success,
   unconventional approach to any situation, drive and
   creativity. In conditions of ever growing competition,
   increasing interest of investors and presence of
   international developers the Russian real estate
   market becomes the most transparent and
   professional. Because of this we’ve got a chance to
   estimate the brand value and include the strongest
   developers’ brands in our 2008 ranking.
 • At present, MIRAX is active in the markets of Russia,
   the CIS, and in foreign markets, like France, Turkey,
   Cambodia, Montenegro, the USA, and Switzerland.
   The goal of MIRAX for the nearest two years is to
   become No.1 in Europe. Aggressively moving to this
   goal the company grows constantly. The competitive
   advantage is fastness: fast decision making, fast
   construction and, consequently, fast rate of
   development. Success of MIRAX is not a bottom but
   a start line to new ambitious goals and projects.




16 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 New entrants



 • CTC (pronounced STS) was launched in
   December’96 and is today the major private owned
   TV Channel and simultaneously a leading
   entertainment network in Russia. Focusing on
   entertainment, CTC broadcasts an optimal mix
   between Russian productions and international
   programming of interest to its target audience,
   viewers aged 6-54, with a particularly strong appeal
   to younger audiences. CTC’s powerful brand has
   strong recognition with a broad cross-section of
   viewers who are attracted by its original and
   dynamic programming which has a youthful and
   inspirational outlook.
 • For the last year media market and especially TV
   market high rapidly increased. The main reason was
   increase of advertising costs in 2-3 times. In spite of
   decreasing the overall audience share from 10,4% in
   2006 to 9,0% in 2007 CTC has been the fourth most
   -watched broadcaster in Russia for four consecutive
   years. At the moment CTC has become a really
   national TV network reaching the technical
   penetration of 87,4%.




17 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 New entrants



 • EVRAZ is one of the largest vertically-integrated
   steel, mining and vanadium businesses in the world.
   EVRAZ is an international player having activities as
   in Russia and CIS countries (in Ukraine) as in
   Europe (in Italy, in the Czech Republic), North
   America (in the United States, in Canada), Africa (in
   South Africa) and the Asia Pacific region (in China).
 • To the moment customers, investors and other
   authorities have been starting perceiving EVRAZ as
   a brand communicating widely and not only as a
   legal entity for group of companies. The company
   built the brand being one of the most powerful B2B
   brands in Russia. In our ranking the EVRAZ brand
   takes the 23th place with the value of US$191 mln.




18 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 New entrants



 • PIK is one of the leading residential developers in
   Russia, with a concentration in Moscow and the
   Moscow region and an increasing presence in many
   of Russia’s other regions. Its core activity is the
   development and sale of residential real estate in
   Russia with a focus on mass-market neighbourhood
   centres for raising middle class families.
 • On June 1, 2007 PIK successfully completed their
   Initial Public offering (‘IPO’) on the London and
   Russian stock exchanges and became a public
   company that gave us a chance to include the brand
   in the long list of Russian Brand League Table. In
   our ranking the PIK brand takes the 24th place with
   the value of US$187 mln.




19 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 New entrants



 • The Svyaznoy brand embodies a huge national
   mobile communications retail chain of 1,6 thousands
   point of sales covering all of Russia’s neighbourhood
   centres for rising middle class families. The
   differentiation of Svyaznoy is the high quality of
   provided services. The company has been investing
   heavily into the brand and plans the renovation of
   its outlets.
 • We notice that the time when the Russian retail
   industry was presented mostly by privately held and
   highly secretive organisations belongs to tha past.
   More and more of them are becoming public and
   transparent. As a consequence the Svyaznoy brand
   makes debut in our ranking at the 32d place with
   the value of US$108 mln.




20 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 New entrants



 • This is re-entry for one of the strongest originally
   local Russian oil brands.
 • For the last years the company has been becoming
   more and more national and even multinational after
   opening Ukrainian market than a regional player.
   After widening the retail network has reached 561
   gasoline stations. These changes were supported by
   rebranding and modernizing gas stations. A new
   Tatneft brand launched at the beginning of 2007
   embodies energy, ecology, transparency of the
   business and also represents the results of
   qualitative changes. A new brand has saved the
   heritage but combined it with the innovativeness
   and future achievements.
 • In our ranking the Tatneft brand returns at the 33d
   place with the value of US$106 mln.




21 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 New entrants



 • KAMAZ is the largest automobile corporation of the
   Russian Federation. KAMAZ ranks 11th among the
   world leading heavy truck manufacturers and takes
   8th place in the world by production volumes of
   diesel engines.
 • The last year was the most successful for KAMAZ
   after the crisis in 90s. They reached the highest
   production level for the last 13 years. Plus the
   highest export level since the beginning of
   production becoming a really international brand
   well-known all around the world. That success was
   based on innovations, launching a new sales
   program “leasing from manufacturer” and also was
   supported by high rapidly increased market demand.
 • In our ranking the KAMAZ brand takes the 34th
   place with the value of US$104 mln.




22 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 New entrants



 • The comeback of the major Soviet/Russian car
   brand is linked with serious changes which have
   been taken place with Avtovaz during the last and
   this year. First of all the collaboration with Renault
   influenced the perception of the brand and the
   internal processes within mother company Avtovaz
   positively. Secondly the brand continues innovating
   by launching new models like LADA Priora (2007)
   and simultaneously by improving sales and post-sale
   services.
 • At the moment the brand has a huge challenge
   based on brilliant heritage, new technologies from
   Renault. We expect a further positive trend for LADA
   as a consequence of the financial crisis when
   demand might shift from upper middle foreign car
   brands to mainstream not so expensive Russian
   brands.
 • In our ranking the LADA brand returns at the 35th
   place with the value of US$98 mln.




23 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 New entrants



 • RESO-GARANTIA. This is a case where a successful
   retail strategy has a big positive influence on the
   brand value. RESO-Garantia focused on auto
   insurance and this sector has increased multiple
   times since the last years after the state had
   launched the OSAGO program.
 • RESO-Garantia is an agent-based company. Its
   products are sold by over 18 thousand agents. Its
   sales network is one of the largest in Russia, and
   includes over 800 points of sale all over Russia.
   RESO-Garantia’s products and services are provided
   to over 3 million corporate and retail clients.
 • In our ranking the brand despite of the financial
   crisis debuts at the 36th place with the value of
   US$96 mln.




24 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 New entrants



 • SEVENTH CONTINENT was established in 1994 and
   today is an international retail chain and one of the
   leading Russian national chains. The Company
   operates in two major formats: supermarkets and
   hypermarkets. At the moment the Company has 138
   stores in Moscow and Moscow region, in Kaliningrad
   region, in Perm, in St-Petersburg, in Ryazan,
   Chelyabinsk, Yaroslavl and in Minsk, Byelorussia.
 • As we’ve already mentioned the Russian retail
   industry is becoming more and more public and
   transparent. Seventh Continent was one of the first
   retailers that completed its IPO in 2004.
 • The last year was one of the most successful for
   Seventh Continent therefore the brand makes debut
   in our ranking at the 38th place with the value of
   US$82 mln.




25 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 5. Selected brand profiles




26 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 Top 2008 risers




           19
                   %




           19
                   %




           14
                   %




           13
                   %




27 | Best Russian Brands 2008 | Interbrand | 10 November 2008
                                                     (+19%)



 • For the last year MTS was successful in market
   expansion in scope and depth.
 • Rebranding of the second Ukrainian mobile operator
   UMC fully changed its brand was the major event for
   MTS last year. Despite some opposition to
   innovations from some parts of the Ukrainian society
   the rebranding had been successful and after that
   the MTS brand could gain about 20 million
   Ukrainians’ confidence.
 • Acquisition of K-Telecom (the VivaCell brand), the
   leader of Armenian telecommunications having 60%
   market share, was the second successful activity of
   MTS in 2007. In penetration depth of 40% of
   Armenian mobile communications market MTS by                  6’917 $m                                19%

   this acquisition has shaped its future. The company
   has already announced its plans to launch the 3G              5’813 $m
   network in Armenia.
 • Among quality innovations for MTS we should notice
   the strategy of marketing politics on creating sub-
   brands/communities in cooperation with such brands           Brand                   MTS
   as Cosmopolitan, Central Partnership and,                    Sector                  Mobile Telecom
   especially, A1. It influences actual diversification of
   brand’s architecture, creating sub-brands and                Brand Value ($m)        6’917
   targeting special socio-cultural communities that            Brand Value (RUR mln)   176’727
   theoretically opens unlimited possibilities for the          Rank 2008               2
   growth of subscriber base and set of offering
   products for MTS.                                            Rank 2007               2



28 | Best Russian Brands 2008 | Interbrand | 10 November 2008
                                                     (+19%)



 • Last year Megafon has increased its market share
   from 19,5% to 20,5%. As a whole the Megafon
   brand has been perceived more consistent in
   compare with previous years. Huge investments into
   promotion together with consistent branding policy
   when promises are verified by the according
   activities gave positive impact.
 • Megafon became the leader in covering Russia and
   only one presenting in all Russian regions. Megafon
   won a pitch and got the first license in Russia to
   provide services of new generation based on 3G
   UMTS technology. Focus on innovations also has
   been verified by the tariff policy. Megafon has
   offered its B2C and B2B clients special proactive
                                                                 569 $m
   niche tariffs.                                                                                        19%




                                                                 477 $m




                                                                Brand                   Megafon
                                                                Sector                  Mobile Telecom

                                                                Brand Value ($m)        569
                                                                Brand Value (RUR mln)   14’547

                                                                Rank 2008               6

                                                                Rank 2007               6



29 | Best Russian Brands 2008 | Interbrand | 10 November 2008
                                                     (+14%)



 • KLINSKOYE. The brand is successfully managed by
   InBev. For the last year when the Russian beer
   market increased by 15,7% the growth of Klinskoye
   sales has been 26,8%. This dynamics was based on
   successful marketing policy. The brand has one of
   the best indicator of brand awareness in the market
   and simultaneously is perceived consistently.
 • The range of Klinskoye sub-brands has been added
   by the new one. Klinskoye Freez is a new lager beer
   launched in May 2007 which provides superior
   refreshment and a long lasting cooling sensation.
   Delivering strong appeal to young adults consumers
   in Russia, the brand is supported by innovative
   packaging such as twist-off bottle with a holographic
                                                                 88 $m
   label.                                                                                               14%




                                                                 78 $m




                                                                Brand                   Klinskoye
                                                                Sector                  Alcoholic Beverages

                                                                Brand Value ($m)        88
                                                                Brand Value (RUR mln)   2’249

                                                                Rank 2008               37

                                                                Rank 2007               37



30 | Best Russian Brands 2008 | Interbrand | 10 November 2008
                                                     (+13%)



 • The brand YA is successfully positioned in the
   premium segment of juice market. Because of
   changing customer preferences from cheap products
   to more expensive juices and therefore high rapidly
   extension of this segment the main its participants
   such as YA increased their market shares.
 • Progress of the YA brand was reasoned as by
   expanding a product range as by providing effective
   advertising activities. In 2007 Lebedyanskiy started
   a new advertising campaign supported the YA brand
   (series “Morning” and “The Main Instinct”) which
   consistently continued the previous ones combined
   by one concept named “Enjoyment”.
                                                                 175 $m                             13%




                                                                 154 $m




                                                                Brand                   Ya
                                                                Sector                  Beverages

                                                                Brand Value ($m)        175
                                                                Brand Value (RUR mln)   4’472

                                                                Rank 2008               25

                                                                Rank 2007               26



31 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 6. Top 4 decliners




32 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 Top 2008 fallers




            5
                   %




            9
                   %




           14
                   %




           18
                   %




33 | Best Russian Brands 2008 | Interbrand | 10 November 2008
                                                          (-5%)



 • RUSSIAN STANDARD BANK. It’s no surprise that the
   credit crunch has left a dent in the brand value of
   most financial services brands, but Russian Standard
   Bank is one of the worst affected in Russia. Negative
   news have already appeared at the end of 2007
   when the bank had to reduce some credit programs
   such as mortgage and some others. It was reasoned
   by the problems with liquidity and high risks.
   Simultaneously some rating agencies decreased the
   credit rating of the bank from “stable” to “negative”.
 • Also we expect the current deep financial crisis to
   influence the stability of the bank a lot. And only a
   wide retail network which Russian Standard Bank
   has can save it to avoid endangering the business
                                                                   219 $m
   and the brand.
                                                                                                             5%
                                                                   230 $m




                                                                  Brand                   Russian Standard Bank
                                                                  Sector                     Banks

                                                                  Brand Value ($m)           219
                                                                  Brand Value (RUR mln)      5’596

                                                                  Rank 2008                  18

                                                                  Rank 2007                  21



34 | Best Russian Brands 2008 | Interbrand | 10 November 2008
                                                          (-9%)



 • SEVERSTAL. The global economic crisis takes its toll
   on the basic steel industry. And Severstal are among
   those who has been facing the crisis. As a result of
   slower demand for steel products due to recent
   changes in global economic conditions, Severstal in
   October announced its decision to reduce production
   at its steel plants in Russia, North America and
   Europe. In Russia, Severstal will reduce production
   at its Cherepovets steel plant by approximately 25%
   for crude steel. In the United States, Severstal will
   be adjusting production to balance with customer
   needs to an aggregate of approximately 30% across
   its facilities. In Italy, Severstal is scheduling October
   production cuts of 30%. Simultaneously about 800
   employees at the Steubenville North Plant of                    303 $m
   Severstal Wheeling have been laid off.
 • The important thing that is also holding Severstal              334 $m
                                                                                                      9%


   back is its brand. There are a lot of problems with
   brand architecture, with a clear brand positioning
   and brand strategy. Also internal brand engagement
   seems to be an urgent topic. Severstal needs a                 Brand                   Severstal
   global brand to speak with a clear voice, to get them          Sector                  Steel
   noticed and better understood. A powerful brand
   that supports a powerful ambition and helps in crisis          Brand Value ($m)        303
   times.                                                         Brand Value (RUR mln)   7’746

                                                                  Rank 2008               12

                                                                  Rank 2007               12



35 | Best Russian Brands 2008 | Interbrand | 10 November 2008
                                                      (-14%)



 • YARPIVO. Last year the more expensive market
   segments were developing the most rapidly,
   especially the licensed beer segment, which grew
   three times faster than the overall market. The
   active growth of the licensed segment was caused
   by continuous changes in beer consumption profile
   closer to European and worldwide patterns and the
   transition of domestic consumers to more premium
   products. We expect this tendency will continue and
   our national brands except the leaders like Baltika,
   Klinskoye will continue losing its popularity and
   market share in strong competition with
   international brands.
 • For the last year Baltika has been concentrating on
                                                                 213 $m
   promoting and developing the title Baltika brand and
   its licensed brands (Tuborg, Carlsberg, Foster’s and
   Kronenbourg 1664) and reached great success                   248 $m
                                                                                                        14%


   becoming a leader in all beer segments.
   Simultaneously the role of other brands like Yarpivo
   in the Baltika’s brand portfolio became less
   important.                                                   Brand                   Yarpivo
                                                                Sector                  Alcoholic Beverages

                                                                Brand Value ($m)        213
                                                                Brand Value (RUR mln)   5’431

                                                                Rank 2008               19

                                                                Rank 2007               18



36 | Best Russian Brands 2008 | Interbrand | 10 November 2008
                                                      (-18%)



 • ARSENALNOE. Here we face the same situation as
   with Yarpivo. The active growth was caused mostly
   by the transition of domestic consumers to more
   premium products. The discount and low
   mainstream segment which Arsenalnoe belongs to
   reduced by 1,3% for the year. We expect this
   tendency will continue in future.
 • For the last year Baltika has been concentrating on
   promoting and developing the title Baltika brand and
   its licensed brands and reached great success with
   them: Baltika +33,5%, Tuborg +70%, Carlsberg
   +34%, Foster’s +63% and Kronenbourg 1664
   +132%. Simultaneously the role of other brands like
   Arsenalnoe in the Baltika’s brand portfolio has been
                                                                 294 $m
   becoming less important.
                                                                                                        18%
                                                                 357 $m




                                                                Brand                   Arsenalnoe
                                                                Sector                  Alcoholic Beverages

                                                                Brand Value ($m)        294
                                                                Brand Value (RUR mln)   7’516

                                                                Rank 2008               14

                                                                Rank 2007               11



37 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 7. Our approach and experience




38 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 The business purpose for brand
 valuation


 • Extending the business based
   on the brand’s equity
 • Assessing the economic
   impact on branding decisions,
   legitimizing brand
   investments and supporting
   risk management
 • Setting performance metrics
   for controlling purposes
 • Providing a fair opinion and
   investment advisory
 • Reporting, litigation and taxes
 • Financing projects and
   businesses, defining royalty
   rates


39 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 Interbrand’s method for valuing the
 2008 Best Russian Brands




40 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 Criteria for consideration



 • Using our database of Russian brands, populated with critical information over the past
   20 years of valuing brand and about 35 years of consulting with organizations,
   Interbrand formed an initial consideration set. All were then subject to the following
   criteria that narrowed candidates significantly:
       - There must be substantial publicly available financial data.
       - It must be a real brand communicated widely and not a pure legal entity.
       - The brand must be Russian origin and made for Russia using independently if it’s
         owned by Russian company or international company.
       - The brand must be a market-facing brand.
       - The brand must not be a monopoly brand as in a whole as within its sector of
         industry.
       - The Economic Value Added (EVA) must be positive.
       - The brand must not have a purely b2b single audience with no wider public profile
         and awareness.
       - The company to which it belongs is supposed to generate profit.
 • These criteria exclude heavyweights such as Gazprom, MGTS, Alrosa, RZD which are
   monopoly brands, leading brands in tourism and media which are privately held and
   not public, or some brands from the mining, energy, metal industries as not a market-
   facing brand and as having a purely b2b single audience with no wider public profile.




41 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 History



 • Interbrand pioneered the development of brand valuation techniques in 1988 for Rank
   Hovis McDougall (RHM), who was resisting a hostile takeover bid. The company needed
   to demonstrate that their value had been severely underestimated and hired
   Interbrand to quantify the value of RHM’s portfolio of brands.
      – Our approach is the industry standard, endorsed by
          Academics – Government bodies
          Auditor – High courts
          Accountancy firms – Management consultants
          Analysts – Stock exchanges
          Advertising agencies – Tax authorities
          Banks
      – Interbrand completed more than 5000 brand valuations
       – Valuation services used by more than 400 leading companies
       – We’ve conducted brand valuations in all industry sectors




42 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 Why Interbrand?



 • Accepted standard across the industry: Interbrand            • Provides a diagnostic tool for on-going
   invented brand valuation almost 20 years ago and               measurement: The methodology allows for not only
   has continued to innovate its methodology to                   measurement, but also management of the brand.
   remain the “gold standard” across the industry. We             The various inputs to the model provide insights into
   have been recognized by a range of constituencies              the drivers of brand value that inform both strategy
   that include academics (such as Harvard                        and tactics that ultimately maximize shareholder
   University), accountants (such as Accountants’                 value. We work with our clients to leverage insights
   Digest), business journalists (such as                         gained from the analysis to develop on-going brand
   BusinessWeek), and even our competitors.                       valuation metrics and tracking tools. Many of our
                                                                  clients conduct on-going brand valuations (yearly as
 • Measures brand as a financial asset: Our definition            well as quarterly) and incorporate these measures
   of brand value, as the current and future earnings             into their performance management systems.
   driven by the brand, gives management a
   defensible approach to quantify the value of an              • Focused on actionable results: These diagnostic tools
   intangible asset much like the valuation of tangible           and strategic insights lead to recommended actions.
   assets.                                                        We work with clients to identify both short and long-
                                                                  term actions that will protect and grow their brand
 • Incorporates rigorous analytic techniques: Our                 value based on the various insights gained from the
   brand value methodology is built on accepted                   analyses in the brand valuation model.
   practices in both finance and marketing. In finance
   we apply established principles of Economic Value            • Customized to fit specific client needs: Finally, we
   Added (EVA) and Net Present Value (NPV). In                    tailor brand valuation for each client based on its
   marketing we utilize the latest analytic techniques            specific branding and business needs. Our brand
   such as structural equation modeling (SEM) and                 valuation methodology provides a framework in
   choice modeling to quantify brand measures in an               which the various inputs to the model can be
   objective way. Our consultants stay on top of the              analyzed based on available data and to the level of
   latest industry trends and often pioneer new                   granularity most relevant for each client.
   techniques for the industry.



43 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 We have led over 5,000 brand
 valuation assignments




44 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 8. Appendices




45 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 Frequently asked questions



   What is brand value?                                         How did you take account of the fact that brands
                                                                are run through franchisees?
   Why value brands?
                                                                What is the relationship between the following
   How does Interbrand derive the value of brands?              terms: brand awareness, brand equity, brand
   What was the basis of the financial assessments?             share and brand value?
   What was the basis for the marketing                         Do the valuations reflect the underlying state of
   assessments?                                                 the economy?
   What was Kommersant DENGI’s role in the Best                 How should one understand the brand value as a
   Russian Brands ranking?                                      % of market capitalization?
   Why are certain brands not on the list?                      How does brand value rank against ad spending?
   Certain strong Russian brands are missing. Were              Is it possible to recognize brand value on a balance
   they considered?                                             sheet?
   Within certain large industry sectors there are no           What is Interbrand’s view on brands appearing on
   brands that appear on the list. Why?                         balance sheets?
   What new industries appear on the league table for           Why is Interbrand an expert in assessing brand
   the first time and why?                                      value?
   What are criteria for the Russian brands to be               Does Interbrand conduct other brand studies?
   presented in Best Global Brands ranking?                     What is the difference between the valuations in
   Was there a limit to the number of brands included           Best Russian Brands and consulting valuations for
   from any one industry?                                       clients?
   Are there any brands that have a sufficient brand
   value but did not make the list?



46 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 Frequently asked questions



   What is brand value?                                              How does Interbrand derive the value of brands?
   Brand value is the dollar value of a brand, calculated as Net     Our valuation approach is a derivative of the way businesses
   Present Value (NPV) or today’s value of the earnings the          and financial assets are valued. It fits with current corporate
   brand is expected to generate in the future. Like any other       finance theory and practice. There are three key elements and
   financial value, brand value is at a point in time based on the   they are detailed below:
   assumptions and information available at that point in time.
                                                                     Financial Forecasting
   Brand value is calculated according to the most widely
   accepted and used valuation principles. This makes brand          We identify the revenues from products or services that are
   value comparable to business - and all NPV-based asset            generated with the brand. From these Branded Revenues we
   values.                                                           deduct operating costs, applicable taxes and a charge for the
                                                                     capital employed to derive Intangible Earnings. Intangible
   The valuations of brands appearing in the Best Russian
                                                                     Earnings are the earnings that are generated by all of the
   Brands (BRB) are calculated in their current use to their
                                                                     business’s intangibles such as brands, patents, R&D and
   current owner. They, therefore, do not necessarily represent
                                                                     management expertise. This is a prudent and conservative
   the potential purchase, extension or licensing value of the
                                                                     approach as it only rewards the intangible assets after the
   brands.
                                                                     tangible assets have received their required return. The
   Why value brands?                                                 concept of Intangible Earnings is therefore similar to value-
                                                                     based management concepts such as economic profit or EVA
   The purpose of these valuations is to demonstrate to the
                                                                     (Economic Value Added is Stern Stuart’s branded concept).
   business community that brands are very important business
                                                                     Based on reports from financial analysts we prepare a forecast
   assets and in many cases the single most valuable company
                                                                     of Intangible Earnings for six years.
   asset. We also aim to show that branding and marketing are
   key business issues that have direct shareholder value            Role of Branding
   impact. Through six years of publishing Best Global Brands in
                                                                     Since Intangible Earnings include the returns for all intangibles
   Businessweek magazine we have created the world’s most
                                                                     employed in the business, we need to identify the earnings that
   significant and influential brand and marketing study. In fact,
                                                                     are specifically attributable to the brand. Through our
   the Businessweek/Interbrand best global brands ranking was
                                                                     proprietary analytical framework called role of branding, we can
   the third most sought-after benchmark report by CEOs and
                                                                     calculate the percentage of Intangible Earnings that are entirely
   CFOs. And in Russia at the fourth time we are creating the
                                                                     generated by the brand. In some businesses (e.g. fragrances or
   Russian most valuable brands based on the same method as
                                                                     packaged goods), the Role of Branding is very high as the
   we create Best Global Brands League Table.
                                                                     brand is the predominant driver of the customer purchase
                                                                     decision.
47 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 Frequently asked questions



   However, in other businesses (in particular b2b) the brand is      For example, $100 from the Lukoil brand in five years requires
   only one purchase driver amongst many and the Role of              a lower discount rate than $100 from the TNK brand in five
   Branding is therefore lower. For example, people are buying        years, as the Lukoil brand is stronger and therefore more likely
   Microsoft not only because of the brand but mostly because         to deliver the expected earnings.
   the company has an installed base of 80% of the market and
                                                                      The assessment of Brand Strength is a structured way of
   it would be for most users extremely difficult to switch their
                                                                      assessing the specific risk of the brand. We compare the brand
   existing files to a new software platform. In the case of Lukoil
                                                                      against a notional ideal and score it against common factors of
   people buy not only because of the brand, but also because
                                                                      Brand Strength. The ideal brand is virtually ‘risk free’ and
   of the location of the petrol stations.
                                                                      would be discounted at a rate almost as low as government
   For each of the brands (and categories) we have assessed           bonds or a similar risk free investment. The lower the Brand
   the Role of Branding. The Role of Branding is derived as a         Strength the further it is from the risk- free investment and so
   percentage - thus if it is 50%, we take 50% of the Intangible      the higher the discount rate (and therefore the lower the Net
   Earnings as Brand Earnings. If it is 10%, we only take 10%         Present Value).
   of the Intangible Earnings.
                                                                      What was the basis of the financial assessments?
   Brand Strength
                                                                      Published annual reports were used to examine the revenues,
   For deriving the net present value of the forecast Brand           earnings and balance sheets of the brand - owning companies.
   Earnings, we need a discount rate that represents the risk         Analyst reports and expert prognosis are used as the basis for
   profile of these earnings. There are two factors at play:          identifying the specific brand revenues and earnings and for
   firstly, the time value of money (i.e. $100 today is more          forecasting future earnings.
   valuable than $100 in five years because one can earn
                                                                      What was the basis for the marketing assessments?
   interest on the money in the meantime); and secondly, the
   risk that the forecast earnings will actually materialize. The     Unlike other brand value league tables, Interbrand does not
   discount rate represents these factors as it provides an asset-    rely on a single source of marketing information. Using a single
   specific risk rate. The higher the risk of the future earnings     brand study would limit the type of information (usually limited
   stream, the higher will be the discount rate.                      to perceptual data) and the type of customer (usually general
                                                                      public) that can be considered. Because many leading brands
   To derive today’s value of a future expected earnings stream
                                                                      operate in specific customer segments (especially b2b), only
   it needs to be ‘discounted’ by a rate that reflects the risk of
                                                                      considering the general public can be very restrictive. Instead,
   the earnings actually materializing and the time for which it is
                                                                      Interbrand refers to a wide array of primary and secondary
   expected.
                                                                      sources which are applicable to each brand.

48 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 Frequently asked questions



   Moreover, Interbrand utilizes its network of valuation brand     Certain strong Russian brands are missing. Were they
   experts from offices around the world.                           considered?
   What was Kommersant DENGI’s role in the Best Russian             In each case there was a reason why they could not be
   Brands ranking?                                                  evaluated based on purely public data.
   Kommersant DENGI did not influence the selection of brands
   or the determination of any of the values. Their role was to     RTR - a unique media organization since it’s a government-
   publish the study and to tie the reported performance of         owned corporation that is not supposed to generate a profit.
   brand value to some of the wider issues affecting these          There are, however, parts of it which are commercial and which
   brands. They also provided the specific one-line comments        do generate profits but these are still the minority of the
   that appear in the table. Interbrand is not responsible for      business. And also the company does not produce public
   these and they do not necessarily represent our views.           financial data.
   Kommersant DENGI is our local partner in publishing Best
   Russain Brands ranking.                                          Gazprom - is the biggest Russian company, “the face of
                                                                    modern Russia” and Russian property today. Obviously
   Why are certain brands not on the list?                          Gazprom is a monopoly brand and cannot be included in the
   This is a frequent question especially from companies who        BRB ranking.
   would expect their brands to be on the list. There are five
   reasons:                                                         Monopoly character or public available data are the most
   - The brand is not Russian origin.                               common causes that the strong brands are missing. And
   - The brand has a pure b2b single audience and has no wider      Interbrand can evaluate these brands as a separate project.
   public profile and awareness.
                                                                    Within certain large industry sectors there are no brands that
   - The company does not produce public data that enables us
                                                                    appear on the list. Why?
   to identify the branded business (the company has multiple
   brands or has unbranded production).                             Airlines - there has clearly been significant investment in airline
   - The brand is not big enough (brand value below $77 million     brands but they are still operating in situations where the brand
   falls below the 40 brand ranking).                               plays only a marginal role. In most cases, the customer decides
   - The business is driven by a number of intangible factors and   based on price, route, schedule, corporate policy or frequent
   it is difficult to separate the brand from the rest.             flyer points. The brand may often only have a real impact when
   - The brand is a monopoly brand.                                 all these other items are at parity. We have assessed the brand
                                                                    value for airlines by using internal data to strip out the impact
                                                                    of these other factors.

49 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 Frequently asked questions



   But from purely public information this is difficult to do         The brands first of all must be global. What does it mean?
   reliably.
                                                                      It means that minimum 30% of the branded business needs to
   Energy - although there are many large energy brands that          be outside the home country to be considered global. However
   are highly valuable, at present none of these brands fulfill our   if the home country of the brand is small (e.g. the Netherlands)
   criteria. They are or monopoly brands or pure b2b single           we required a higher percentage. For US brands, the overseas
   audience oriented.                                                 sales ratio can be smaller due to the size of the US market,
                                                                      which is nearly as big as all of Europe. Applying the one-third
   Pharmaceuticals - there are no pharmaceutical brands in this
                                                                      overseas sales requirement would penalize US brands for being
   year’s league table. In the pharmaceutical industry, it is the
                                                                      successful in their domestic market.
   product brand rather than the corporate brand with which the
   consumer builds a relationship.                                    We also need evidence that the brand is established in a wide
                                                                      number of markets around the world. At the very least it needs
   What new industries appear on the league table for the first
                                                                      to have a substantial presence in at least one country in each
   time and why?
                                                                      of the following 4 regions: North America, Latin America,
   For the first time Construction industry appears on the league     Europe and Asia-Pacific. It also needs to be managed
   table 2008.                                                        consistently as a global brand. As an example, Wal-Mart is a
                                                                      valuable brand however it is not consistently branded as Wal-
   Two real estate companies - Mirax and PIK - have entered
                                                                      Mart around the globe. From the Russian brands we see only
   the league table this year. It connects with our more detail
                                                                      Lukoil having the best chances to be presented in the Global
   view on before closed construction industry. In conditions of
                                                                      ranking in the years to come.
   ever growing competition, increasing interest of investors and
   presence of international developers the Russian real estate       Was there a limit to the number of brands included from any
   market becomes the most transparent and professional.              one industry?
   Because of this we’ve got a chance to estimate the brand
                                                                      No, however, one of the requirements of a leading Russian
   value and include the strongest developers’ brands in our
                                                                      brand is that it is in fact leading. The mark of leadership is not
   2008 ranking.
                                                                      just about market share but also about behaving as a leader -
   And as a whole we hope that Russian economy will continue          setting trends, quality standards, authority, etc. Thus, there
   the tendency of becoming more public and transparent and           are brands that are in the top three of their category’s market
   we will see more strong brands in our ranking.                     share but did not make the cut; and there are brands that are
                                                                      not top three that did make the ranking. The rules described
   What are criteria for the Russian brands to be presented in
                                                                      are guidelines and ultimately each brand was assessed for
   Best Global Brands ranking?
                                                                      inclusion on its own merits.

50 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 Frequently asked questions



   Are there any brands that have a sufficient brand value but       a customer thinks or does, it is not an assessment of the
   did not make the list?                                            economic value created by those thought or actions.
   There are certainly strong Russian brands that have a value       Do the valuations reflect the underlying state of the economy?
   exceeding $77 million but which did not make the list
                                                                     Yes - in two ways. The forecasts are prepared with an overall
   because they do not meet our ranking criteria. This would be
                                                                     view on economic growth at a point in time. The formula for
   true of many of the industrial and transport brands, but also
                                                                     converting the Brand Strength Score into a discount rate is tied
   surprisingly true of a lot of media, hi-tech (IT&Internet) and
                                                                     to the underlying government bond yield.
   leisure brands.
                                                                     How should one understand the brand value as a % of market
   How did you take account of the fact that brands are run
                                                                     capitalization?
   through franchisees?
                                                                     The market capitalization represents the market’s valuation of
   This was an issue with some of the oil retail brands - Lukoil,
                                                                     all the equity of a company. In theory, the market
   TNK, Tatneft. We based our valuation on the earnings that
                                                                     capitalization is the value of all tangible and intangible assets
   the brand owner makes from the brand and an estimate of
                                                                     owned by the company less all the debt owed by the company.
   the earnings that the franchisees make from the brand (what
                                                                     The brand value/market capitalization relationship can be read
   is called a total- system view). as in all other valuations,
                                                                     in a number of ways:
   these earnings were then reduced to take account of a return
   for the use of the tangible and other intangible assets.          - If the brand value percentage of market capitalization is low,
                                                                     it suggests that the business is driven by other kinds of assets
   What is the relationship between the following terms: brand
                                                                     (tangible and intangible) and that the brand is relatively
   awareness, brand equity, brand share and brand value?
                                                                     unimportant. It could also mean that the business is failing to
   Brand value is the only measure that looks at the economic        leverage the brand as much as it should be and that investors
   benefit of the brand to its owner. In other words, it is an end   should be concerned about that.
   in itself. Brand awareness and brand equity are a means to
                                                                     - If the brand value percentage of market capitalization is high,
   an end. Brand awareness is simply knowledge that a brand
                                                                     it suggests that the business is driven by the brand and that
   exists, thus brand awareness may prompt customers to
                                                                     investors should take care of how the brand is being managed
   consider buying a product. Brand equity is a measure of
                                                                     since this will have a very direct effect on shareholder value. It
   customer perceptions of a brand; thus it may give a customer
                                                                     could also mean that the business is under-valued by the
   reason to prefer a product over the alternatives. Brand share
                                                                     market and that they are failing to reflect the true value of all
   is simply the market share achieved by the brand. Thus
                                                                     the assets of the business of which the brand is one (but only
   brand awareness, equity and share are all measures of what
                                                                     one).

51 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 Frequently asked questions



   The comparison of brand value to market capitalization is        Unfortunately the Russian accounting standard RSBU doesn’t
   mainly useful for mono-branded businesses as the market          let our companies recognize brand value on a balance sheet.
   capitalization relates to all company assets. For companies
                                                                    What is Interbrand’s view on brands appearing on balance
   that own and operate under many different brands such as
                                                                    sheets?
   Nestle a comparison with market capitalization is less useful.
                                                                    We support the stance of the different accounting standards
   How does brand value rank against ad spending?
                                                                    which recognize the value of brands on the balance sheet.
   It is not really appropriate to try to correlate these two.      Interbrand has led the debate on this issue for many years.
   Brand value is a measure of the output from a series of brand    However, current accounting standards allow only for the
   investments and initiatives over a long period of time.          recognition of acquired brands, not internally developed
   Advertising is one element in wide spectrum of                   brands. Also, the impairment test for brands on the balance
   communications companies employ. Other communications            sheet allows only for a potential value reduction but not
   include sponsorships, online, point of sale, customer service,   increase. The acquisition criterion means that the Gucci
   and so on. In some cases brands are built with very little or    brand is recognized on the balance sheet of PPR as an
   no advertising as in the case of Pyaterochka where retail        intangible asset while the Louis Vuitton brand does not show
   space and employees are the key communications channels.         up on the balance sheet of LVMH.
   Is it possible to recognize brand value on a balance sheet?      We conclude that the recognition of acquired brands on the
                                                                    balance sheet is a step in the right direction for providing
   Several accounting standards - such as International
                                                                    shareholders with better information about the assets they
   accounting standards IFRS and US-GAAP - require the
                                                                    have invested in. However, it’s still not sufficient, as the
   recognition of acquired goodwill, including brands on the
                                                                    value of internally generated brands cannot be disclosed
   balance sheet. The standards clearly identify brands as
                                                                    despite making up the vast majority of the most valuable
   intangible assets with an infinite economic life. This means
                                                                    brands around the world.
   unlike other intangible assets (e.g. patents, databases) or
   goodwill (e.g. training, workforce) brand value does not have    As the need for some formal statement about brand value
   to be amortized through the income statement. However,           (and the value of other intangible assets) is becoming
   they are subject to an annual impairment test and their          increasingly important we would advocate some type of
   carrying value needs to be reduced if the value declined. The    statement in the annual report on the intangible business
   technique is consistent with the way in which Interbrand has     assets including brands. Whether this happens in the
   assessed brands for balance sheet inclusion - though of          traditional balance sheet or whether it happens in a new
   course using more extensive and proprietary data.                ‘Statement of Intangible Value’ would be a secondary
                                                                    concern.

52 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 Frequently asked questions



   Why is Interbrand an expert in assessing brand value?              France, Spain, Australia, Singapore, China, Taiwan, Mexico,
                                                                      Canada and Brazil. In April 2008, Interbrand also published a
   In 1988, Interbrand developed and introduced the first
                                                                      table of the 25 most valuable European retail brands.
   valuation of a portfolio of brands that used a brand-specific
   valuation approach. Since then we have continuously updated        What is the difference between the valuations in Best Russian
   and improved our valuation approach to make it the global          Brands and consulting valuations for clients?
   industry standard of brand valuation. The Interbrand brand
                                                                      The valuation methodology is the same, however, the level of
   valuation methodology is the widest endorsed and used
                                                                      detail and the data input significantly differ. The BRB valuations
   valuation approach around the world. Interbrand alone has
                                                                      are mostly consolidated top-line assessments based on publicly
   valued more than 5,000 brands in all industries worldwide.
                                                                      available marketing and financial data. We recognize segment
   Our valuations have been endorsed by leading academic              differences for diversified brands by product or service but not
   institutions including Harvard, Thunderbird, Columbia, Emory       geography or any other classification (e.g. financial services or
   and St. Gallen. Our valuation approach has the highest depth       technology). As the valuations are based on publicly available
   of applications including strategic brand management,              data, they are only as reliable as the data that the brand-
   marketing budget allocation, marketing ROI, portfolio              owning companies publish about themselves (in annual reports,
   management, brand extensions, M&A, balance sheet                   analysts briefings, press articles, syndicated market research
   recognition, licensing, transfer pricing and investor relations.   etc.).
   Our valuations have been audited for inclusion on the balance
                                                                      Consulting valuations are based on detailed customer
   sheet by all leading accounting firms. Also, many tax
                                                                      segmentations, as well as in-depth marketing and financial
   authorities and law courts around the world have accepted
                                                                      analyses. They have a much higher level of accuracy and
   our valuation approach.
                                                                      granularity. The purpose of a consulting valuation goes well
   Does Interbrand conduct other brand studies?                       beyond assessing financial worth. It identifies and quantifies
                                                                      value drivers, and helps the company to manage its brand to
   Since 2000, Interbrand has partnered with BusinessWeek to
                                                                      increase the shareholder value of the underlying business.
   produce an annual study of the Best Global Brands, creating
                                                                      However, if clients undertake consulting valuations we are in a
   the world’s most significant and influential brand and
                                                                      much better position to identify publicly available data that are
   marketing survey. PRWeek magazine conducted a survey of
                                                                      likely to align the BRB valuation with the consulting valuation.
   the important rankings to senior executives. Their survey
                                                                      In cases where companies make our consulting valuations
   concluded that the Best Global Brands study is regarded by
                                                                      publicly available, for example through a note in the balance
   senior management as the third-most influential ranking. In
                                                                      sheet, these values will also be published as the BRB ranking
   addition to the global study, Interbrand has established
                                                                      value.
   national or regional brand value league tables in Switzerland,

53 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 About Interbrand



   Creating and managing brand value                                 Interbrand has 34 offices in more than 20 countries around the
                                                                     globe and clients from among the most respected businesses.
   The Interbrand Brand Value Management Model                  TM
                                                                     Moscow office of Interbrand was opened in 2005, March, 24. It
   Brands do not become and remain successful on their own.          provides a whole complex of branding services - Creating,
   Nor are they ensured ongoing leadership without proactive,        Managing and Evaluating brands.
   diligent and detailed management. Interbrand works
                                                                     Interbrand is a wholly owned subsidiary of the Omnicom Group,
   collaboratively with clients to consistently and continually
                                                                     the industry leader in Marketing Communications.
   evaluate, create and manage their brand assets. We do this
   by employing the following model.
   The Brand Value Management model is a closed loop with
   neither a specific beginning nor definite end. The model
   begins at a different point for every brand, based on business
   need. However, one aspect does remain constant: once in
   progress, the model actually accelerates, by generating
   synergies and capturing new opportunities through carefully
   crafted and integrated activities. It becomes an inexhaustible
   source of energy and competitive advantage for every brand.
   Brand Value Management comprises three distinct, yet
   interrelated, phases: Evaluate, Create, and Manage - three
   phases where the brand and market opportunities are
   painstakingly examined, creatively brought to life, and
   thoroughly and holistically coordinated.
   For about 35 years, Interbrand has worked with leading
   global brands to create and manage brand value through an
   integrated set of offerings. We offer brand and business
   strategy, brand valuation, quantitative and qualitative
   research, retail design, brand architecture and portfolio
   optimization, naming, corporate identity design, packaging
   design, communications creation and online digital asset
   management tools.

54 | Best Russian Brands 2008 | Interbrand | 10 November 2008
 Contact us



   General inquiries:

   Nicola Stanisch
   Managing Director IBZL Moscow
   Tel: +7 495 787 4600
   nicola.stanisch@interbrand.com.ru

   Maxim Parfentchikov
   Managing Director IBZL Moscow
   Tel: +7 495 787 4600
   maxim.perfentchikov@interbrand.com.ru


   Media inquiries:

   Sergey Sharyukov
   Consultant, Project Coordinator, IBZL Moscow
   Tel: +7 495 787 4600
   sergey.sharyukov@interbrand.com.ru


   Additional information on brands

   www.interbrand.com
   www.brandchannel.com



55 | Best Russian Brands 2008 | Interbrand | 10 November 2008
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