2017烟草50强品牌报告（英文版）_7页_3mb

Summary of "Tobacco 50 2017"

Core Content

This document is the Tobacco 50 2017 report, an annual assessment of the world's most valuable tobacco brands. It provides insights into brand valuation, brand strength, and the impact of regulatory changes on the industry. The report is conducted by Brand Finance, a leading brand valuation firm, and includes a detailed methodology for calculating brand value.

Main Points

• Brand Value: A brand is defined as a marketing-related intangible asset that identifies goods, services, or entities and creates distinctive associations in stakeholders' minds.
• Brand Contribution: This refers to the uplift in shareholder value due to the brand, not just from its transactional value but from its influence on a range of stakeholders.
• Brand Strength Index (BSI): A metric used to evaluate brand strength, scored out of 100 and used to determine brand ratings (from AAA+ to D). It considers marketing investment, brand equity, and business performance.
• Valuation Methodology: The Royalty Relief approach is used, where brand value is calculated based on future revenue projections and a royalty rate applied to those revenues.
• Regulatory Impact: Increased regulation in many OECD countries and the introduction of plain packaging have threatened brand differentiation and product quality, but the top tobacco brands are still increasing in value.
• Market Trends: Brands are growing in regions with weaker regulations, such as China, Indonesia, and Africa. Marlboro is leading with a record brand value of US$32.47 billion in 2017.
• Brand Extension: Marlboro has successfully extended into new products, such as iQOS and Heatsticks, showing its adaptability and strength.
• Brand Value Change: The report includes brand value changes from 2016 to 2017, both in USDm and percentage terms, and highlights the performance of major tobacco brands.
• Competitor Benchmarking: Brands are compared based on their BSI scores, royalty rates, and other financial and marketing metrics.

Key Information

Top 50 Tobacco Brands (2017)

Brand Value Drivers

• Royalty Relief Approach: Future revenue is estimated and a royalty rate is applied to determine brand value.
• BSI Score: Brand strength is evaluated using a range of attributes, including emotional connection, financial performance, and sustainability.
• Royalty Rate Determination: Based on industry margins, comparable licensing agreements, and affordability.
• Discount Rate and Tax Rate: Used to calculate the net present value of future brand revenues.

Regulatory and Market Challenges

• Plain Packaging: A major threat to brand differentiation and product value, potentially commodifying the product.
• Market Growth: Despite regulatory pressures in Western markets, growth in emerging markets like China and Indonesia is offsetting declines.
• Brand Adaptation: Successful brand extension into new products is a key factor in maintaining and increasing brand value.

Brand Finance Services

• Valuation: Assessing the value of intangible assets.
• Analytics: Improving marketing effectiveness by understanding consumer behavior and brand performance.
• Strategy: Enhancing brand value through governance, architecture, and positioning.
• Transactions: Leveraging brand value in M&A, licensing, and transfer pricing.
• Legal and Tax Services: Enforcing intellectual property rights and understanding tax implications.

Conclusion

Despite the challenges posed by regulation, the world's top tobacco brands continue to grow in value, with Marlboro leading the way. Brand Finance's report provides a comprehensive view of brand performance and value, using a mix of financial, marketing, and strategic analyses. It underscores the importance of brand strength, adaptability, and effective management in maintaining and enhancing brand value in a highly regulated environment.