HP ranked 12th in Interbrand’s list of 100 Best Global Brands, as published in the August 2007 issue of BusinessWeek. According to the magazine, HP edged out its nearest competitor to become the world’s largest PC maker by market share. In 2007, HP’s brand value grew to $22.197 billion, up 9% from $20.458 the previous year.
Boosted by notebooks
According to Interbrand, one of the key contributors to HP’s leadership is its new lineup of consumer notebooks. The new notebook offerings, including the new Pavilion and Compaq Presario models, merge cutting-edge mobile technology with high-end entertainment features, enabling you to meet all your computing needs in style.
The new HP Notebook PCs also feature the unique HP Imprint, which gives your notebook a stylish look that’s resistant to wear and tear. The HP Imprint is an exclusive case design technology that is created through an advanced molding technique that integrates a hard-coat surface via film transfer process, resulting in a durable and long-lasting stylish design.
Interbrand’s ranking methodology
Interbrand, the world’s leading branding company, established several stringent measures to increase the reliability of its ranking system. First, to qualify a brand as global, it only retains brands that have at least a third of its profit outside their home company, a widespread recognition, outside its customer base, and a publicly available financial and marketing database. Additionally, to measure familiarity, it only ranks individual brand names, and not portfolios of brands.
Interbrand’s ranking methodology involves a complex combination of analyst projections, company financial documents, and its own quantitative and qualitative analysis to calculate each company’s net present value. Sequentially, Interbrand initially calculates a company’s total sales under a particular brand, using analyst reports from several sources to project five years of sales and earnings tied to each brand’s products and services. Then it measures the value of these earnings from the brand power by removing the operating cost taxes and charges for capital employment to yield the earnings that are attributable to intangible assets. The brand’s role is then calculated within the earnings vs the other intangible assets, which includes management strength and patents. Finally, the future earnings of the company are discounted to yield a net present value.
To factor in brand strength, Interbrand discounts current interest rates and the brand’s overall risk profile, considering market leaderhship, stability and global reach. This yields the financial asset of a brand, which both Interbrand and BusinessWeek believe to be the closest representation of a brand’s true economic worth.