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AUSTRIA´S TOP 100 COMPANIES SUCCESSFULLY MANAGED TO INCREASE BRAND EQUITY

11. July 2016

According to eurobrand Austria, Austria´s top 100 companies boosted their brand value in 2016 by 1,3% on average yoy, with Red Bull (+2%), Swarovski (+5,3%), Novomatic (3,2 %) and Spar (2,3%) leading the group in value (see graph).

Brand equity can make up 40% and more of the value of a company, which is why this positive development is good news for the Austrian economy.  “It is the value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent.”  (Retrieved July 7, 2016 from http://www.investopedia.com/ )

Since brand equity is affected by many factors, there is no key strategy that promises positive results. Yet, especially the sponsoring of sports seems to be quite successful for 8 out of the top 10 most valuable Austrian companies in brand value. Red Bull , Austria's highest ranked corporation (EUR 15.11 bn) - that even made it to the list of the top 100 globally (#74) according to Forbes magazine - is the leading example. But loyalty and trust have also been indicated to ramp up the value of a brand; for many the goal is to become a heritage brand eventually. Another leading success story in Austria is Novomatic , a globally active gaming corporation with a current brand value of EUR 2.92 bn. The company has been able to constantly increase this KPI since the start of the study 13 years ago.

The Austrian brand value study eurobrand Austria was conducted the 13th time annually by the leading research institute for intangible assets, the European Brand Institute . Of the 500 largest companies in Austria measured by revenue, the study examines the brands which are at least 45% Austrian-owned. They are analyzed and evaluated using the following criteria: industry sector, brand strength, growth trends, brand potential and revenue.


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