Woolworths is no longer Australia’s most valuable brand. In what can be called a brand-coup, Australia’s largest telecommunications provider Telstra pipped the retail brand to become the most valuable Aussie brand.
Telstra jumped with a 23 percent increase in brand value, according to the latest Brand Finance Global 500 rankings. It moved up 35 places and took the 110th rank in the Global 500 list, reports Business Insider.
The supermarket giant has been holding the crown since 2009. Analysts attribute its loss to the heavy competition and slowing sales. The brand was facing excessive heat of competition from traditional rivals as well as the new entrant Aldi. But Woolworths can take comfort that it is still part of the eight Aussie companies that made it to the list of Brand Finance Global 500.
Brand Finance Global determines brand value by assessing factors such as familiarity, marketing investment, loyalty, promotion, staff satisfaction and corporate reputation.
Commenting on Woolworth’s missed glory, Mark Crowe, Brand Finance Australia managing director mentioned the retailer’s slowing sales as a fall out of huge competitive pressure. “This threat is exacerbated by weak brand perceptions that resulted in a downgrade in Woolworths brand rating to AA,” he added.
Referring to Telstra’s brand surge, he said, the telecom giant marked a 23 percent increase in value despite the revenue growth at 3.6 percent. All the big four banks of Australia secured their place in the Australia brand list.
“ANZ has regained the number one bank rating through increased brand strength especially in terms of brand equity,” Crowe said.
Meanwhile, the Brand Finance Global 500 report named Disney as the world’s most powerful brand. According to media reports, the latest Star Wars film gave Disney a big fillip in terms of its brand equity. Reports added that Star Wars Episode VII ‘The Force Awakens’ made a record by being the fastest film to reach US$1 billion milestone.
Noting that Disney styles itself as ‘the happiest place on Earth,’ Brand Finance hailed Disney’s rich history, original creations and strategic acquisitions as the core that defined its immense brand equity, reports Ad News.