A new report by Interbrand has been released that showcases Canada’s most valuable brands. The data was compiled over the past couple months and this year, specifically regarding telecom, they stated that “it’s no secret that the Canadian wireless industry is hugely concentrated,” and that the Big 3 still own the power in subscribers, revenue and brand value. Although it does mention the new entrants but notes they all “need to think about how they can challenge the incumbents in a meaningful way.”
To determine the “brand value” of a company, Interbrand stated the methodology came from financial information and analyst forecasts “to arrive at an economic value added (operating profits – taxes – cost of capital). We then apply a role of brand index, which is essentially the percentage of the purchase decision that is due to the brand (this number is generated by either primary research, a review of historical indexes, or expert-panel assessment). We then take the resulting “brand earnings” for the current year and next several years (sourced from analyst forecasts), and apply a discount rate based upon “Brand Strength”, which is an evaluation of 10 dimensions of a strong brand.”
The Canadian company that’s the most ‘valuable brand” is RIM’s BlackBerry. Amidst all their troubles, such as low stock price, few device launches, company layoffs, somehow managed to remain in the 4th position and increased their brand value by 7% to $6.4 billion. Interbrand stated that “With the category now highly penetrated, this year the brand is seeking to capture emerging markets and earn back respect with its upcoming BlackBerry 10 products.”
Shifting towards the carriers, the order goes Bell at 9th spot, followed by Rogers at 10th, and TELUS at 13th. Interbrand stated that “Bell continued to invest in technology” and praised them for making “strides in improving billing challenges” and “improvement to the customer experience,” but warned them that they “must reconsider its market positioning for the long term.” Regarding Rogers, they are “on the wave of strong sales with “nearly one inthree Canadians now carries a rogers phone. But the market is maturing and competition is fierce.” TELUS’ brand value increased the most, up 59%, to $1,978 billion. One of the key points that TELUS’ brand rose was because they was “the first wireless competitor to emphasize loyalty over acquisition.”
Check out the full report here at Interbrands
