Ferrari revealed as the world’s strongest brand, fighting off global tech giants
Italian supercar manufacturer, Ferrari, has claimed the title of the world’s strongest brand, according to the latest Brand Finance Global 500 2019 report launched at the World Economic Forum in Davos. Ferrari’s Brand Strength Index (BSI) score increased three points from 91.5 to 94.8 out of 100 over the past year, overtaking the likes of McDonald’s, Coca-Cola, Lego, and Disney. The iconic auto brand last held the title of the world’s strongest in 2014.
Brand Finance, the world’s leading independent brand valuation and strategy consultancy, determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. According to these criteria, Ferrari is the strongest of only 14 brands in the Brand Finance Global 500 2019 ranking of the world’s most valuable brands to be awarded the highest AAA+ rating.
Since its inception, Ferrari has remained synonymous with style and performance, enabling the brand to successfully extend into other sectors – from merchandise, such as hats and sunglasses, to theme parks, and even the Maranello Village, a Ferrari-themed hotel – without losing its appeal as a luxury brand. Upmarket auto brands in general continue to turn heads and win consumer approval. Porsche and BMW follow Ferrari as first-class brands with AAA brand strength ratings.
Along with the level of revenues, brand strength is a crucial driver of brand value. As Ferrari’s brand strength flourished this year, its brand value also improved, racing ahead 27% to US$8.3bn. Most of Ferrari’s limited production of models for 2018 and part of 2019 were already sold out by May 2018, and new Chief Executive Louis Camilleri presented a plan in September 2018 promising 15 new models including hybrids, which remains on trend with the shift to electric across the auto industry.
- Airbus unveils the construction of its new A220 manufacturing facility
- Toyota and Panasonic reportedly partner to produce batteries for electric vehicles
- Bosch granted approval to test autonomous driving tech in Victoria, Australia
As the world’s foremost luxury carmaker, Ferrari has an unparalleled level of brand recognition, upholding excellence for design and innovation. The prancing horse logo is a perfect symbol of the brand’s strength and vitality as it plans new models and reaches outside the auto industry," said David Haigh, CEO of Brand Finance.
The Big Four professional services firms also achieved noteworthy performance in terms of brand strength, with three of them posting the same elite AAA+ brand rating as Ferrari. Deloitte leads the charge as the strongest and most valuable of the accounting and audit giants with a BSI score of 91.2 (brand value US$29.6bn), pulling ahead of last year’s sector leader, PwC, this year with a BSI score of 89.8 (US$24.bn). EY also continues to attain elite AAA+ status, with a BSI of 89.7 (US$23.bn) having achieved fast growth in both brand strength and brand value in recent years. Though the Big Four hold steady overall among commercial services brands with regards to brand strength, KPMG trails behind with a BSI of 83.2, down 4% from last year.
While Ferrari is the world’s strongest, Amazon maintains its title as the world’s most valuable brand in the Brand Finance Global 500, growing nearly 25% to an impressive US$187.9bn, over US$30bn more than Apple who gained second place. Last year, Amazon recorded its most successful Prime Day to date, with consumers purchasing more than 100mn products. This was shortly followed by the brand crossing the US$1trl threshold on Wall Street for the first time in its history.
The tech sector has also carved out a clear space of its own, gaining the majority of positions in the top 10.
- #1 Amazon
- #2 Apple - $153.6bn brand value (BV)
- #3 Google - $142.8bn BV
- #4 Microsoft - $119.6bn BV (moving from #6 spot, it is the fastest growing brand on the list)
- #5 Samsung - $93.3bn BV (from #4 spot last year)
- #6 AT&T - $87bn BV (from #5 spot last year)
- #7 Facebook – BV $83.2bn
- #8 ICBC - $79.8bn BV (up from #10 position in 2018)
- #9 Verizon - $71.2bn BV (down from #8 position)
- #10 China Construction Bank – 69.7bn BV (slight rise from #11 spot in 2018)
SAP Whitepaper: Advantages of Intelligent Assets
A core pillar in SAP’s Industry 4.0 strategy, Intelligent Assets equip organisations to reduce downtime, empower employees and increase efficiencies across industrial equipment and manufacturing units.
In a whitepaper produced in partnership between SAP and BizClik Media Group, Rachel Romanoski, Solutions Manager, Digital Assets, SAP, dispels some of the myths surrounding asset intelligent, and shares insight into how even small investment in asset intelligence can pay dividends in minimising cost leakage and realising an asset’s potential.
As with all innovations, the ceiling for Intelligent Assets is as high as an organisation can dream, afford and implement. But Romanoski says that just a little intelligence can go a long way: “Oftentimes people think Intelligent Assets need to be the latest and greatest cutting-edge technology. They can be super advanced, such as leveraging physics-based engineering simulations to forecast potential failures, and help mitigate them. But it could be as simple as a temperature reading. You can pull a lot of simple information from most equipment, and by enhancing that data through ancillary solutions and digital capabilities, you can create that Intelligent Asset.”
One of the most immediate benefits is reducing or, in some cases, eliminating unplanned downtime. Equipment failure is one of the most common causes of disruption and can cause chaos throughout the supply chain.
“The true power of the Intelligent Asset is in changing the basic, reactive emergency work or time-based, planned maintenance and being more prescriptive and tailored to that specific asset and use case,” Romanoski says. “Ultimately, you can reduce the unplanned events that often carry a big price tag.”
"Oftentimes people think Intelligent Assets need to be the latest and greatest cutting-edge technology... But it could be as simple as a temperature reading"
Other financial benefits include stemming cost leakage and “sweating assets” to the full potential. “Maybe you can consider the lifecycle of the asset and understand whether you can push it a little bit further,” Romanoski explains. “It might be that the best course of action for a low-cost item is to run it to failure. Having this information that we collect over time empowers those people to make those better decisions, but also has a trickle down effect to building resiliency and efficiency into the entire supply chain.”
To read the full report, including insight from Intelligent Assets, Intelligent Factories, Empowered People, and exclusive insight from Dominik Metzger, the lead on SAP’s Industry 4.0 programme, CLICK HERE.