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What's in a brand?


BrandZ has released its list of the most valuable retail brands, and Target came in at number 5 out of 20 companies listed. According to the report, Target earned its spot by expanding its food selection and repositioning itself as a low-price leader and thereby countering the perception of it being a trendier, albeit pricier store than its competitors.

Out of the 100 global brands (including both retail and non-retail companies), Target came in at number 65.

The BrandZ list, developed by Millward Brown Optimor, is determined by a three-part valuation process: branded earnings (how much of a company’s earnings were generated under the brand banner), brand contribution (how much of the brand’s earnings were generated because of customer perception) and brand multiple (what is the growth potential of brand-driven earnings).

Target earned its ranking with a brand value of $12,471 million, brand contribution of 3 (out of 5) brand momentum of 3 (out of 5) and brand value change of 3%.

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