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MTN again named SA’s top brand

MTN again named SA’s top brand

Photo by Brand SA

22nd July 2014

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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Telecommunications giant MTN has, for the second year running, been named the country’s most valuable brand, accounting for 16.5% of the total value of the country’s top 50 brands and potentially emerging as Africa’s first home-grown “superbrand”, Brand Finance revealed in its yearly report on South Africa’s 50 Most Valuable Brands on Tuesday.

“It’s been another year where MTN continues to widen the gap between itself and its nearest competitor, with an incredible 31% increase in value, showing businesses around the world what can really be achieved on the African continent if you have knowledge and respect for the local conditions,” the report read.

MTN was followed by petrochemicals group Sasol, which jumped one spot in the rankings to secure second position after achieving year-on-year brand value growth of 13%.

“Knocking Vodacom off second place with a 13% increase in value is a South African company with activities in 38 countries around the world. Sasol’s expansion into foreign markets – including notable new plants in the US – has yielded solid growth. It can thank a weakened rand value for its success too,” stated the report.

Third spot went to telecommunications group Vodacom, followed by banking groups Standard Bank, Absa and Nedbank in fourth, fifth and sixth place respectively.

With year-on-year brand growth of 17%, banking group First National Bank, meanwhile, secured seventh position, followed by private healthcare group Mediclinic in eighth position, financial services group Investec in ninth spot and retail group Woolworths in tenth position.

These top ten brands accounted for 52% of total brand value of the top 50, with 13 financial services brands represented in the top 50, generating R89-billion, or 26% of South Africa’s total brand value.

Similarly, five telecommunications brands generated 25% of the total brand value, while 16 food and beverage brands accounted for some 22.6%.

Despite another year of difficult trading conditions, the global brand valuation consultancy said the total brand value of South Africa’s top 50 brands increased 18%, from R291-billion in 2013, to R343-billion this year.

“It also comes as no surprise that more than half of the brands have a significant presence beyond South African borders,” Brand Finance Africa chairperson Thebe Ikalafeng said at the launch of the report.

Among brand promotion agency Brand Africa’s 100 Most Valuable Brands in Africa, South Africa led the continent with a 72% share, compared with Nigeria at 26% and Kenya at 2%.

“While Nigeria has the highest gross domestic product (GDP) on the continent, South Africa dominates the branding landscape across Africa – with 80% of the top 50 brands all essential staples on a continent that is turning the corner from being a consumer to becoming a creator.

“With its experience in building and creating portfolios of world-class brands, South Africa is in a good position to play a leading role in that African renaissance,” he commented.

Brand South Africa CEO Miller Matola added that individual brands were critical in building the overall brand strength of a country, while actively contributing to GDP and tax revenue.

“Competitiveness is all about how a country uses its enterprises to build its economy, with local brands carrying the reputation of a country,” he said.

Brand Finance calculates brand value using the royalty relief approach, which involves estimating the likely future sales attributable to a brand and calculating a royalty rate that would be charged for the use of the brand.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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