10 Brands Losing the Most Value

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5. Yahoo!
> Pct. brand value decline: 13%
> Brand value: $3.9 billion (97th)
> Parent company: Yahoo Inc. (NASDAQ: YHOO)
> 1-yr. change in revenue: -10.6%
> Industry: Internet services

In the past year, news stories about Yahoo! have centered around the firing of its foul-mouthed chief executive and the dismissal of her replacement due to discrepancies in his resume. Although the company looks to have finally found a CEO who can last long-term in Marissa Mayer, a change in Yahoo!’s fortunes will not come easily. Over the past several years the company has increasingly lost its share of the display ad market to Google Inc. (NASDAQ: GOOG) and Facebook Inc. (NASDAQ: FB). EMarketer now predicts that Yahoo! will have 9.3% of the web’s display ad revenue in 2012, below Google’s 15.4% and Facebook’s 14.4%. In 2011, Yahoo!’s share of display ad revenue was 11%, down from 14% in 2010, when it brought in more display ad revenue than any other web property. Nevertheless, Mayer is looking to make Yahoo! into a more mobile company, where it can begin to gain back revenue through smartphones and tablets.

4. Moët & Chandon
> Pct. brand value decline: 13% (tied for 5th)
> Brand value: $3.8 billion (98th)
> Parent company: LVMH Moët Hennessy Louis Vuitton
> 1-yr. change in revenue: 22.4%
> Industry: Alcohol

Part of French luxury conglomerate LVMH, Moët & Chandon’s brand value declined by more than $500 million in the past year. The brand lost value despite opening a boutique hotel in St. Tropez and launching celebrity-hosted tours worldwide. In order to help restore brand value, Moët & Chandon has signed a sponsorship contract with the America’s Cup, one of the most well-known sailing races worldwide. Interbrand’s Josh Feldmeth told 24/7 Wall St. that, “It’s not that the Moët & Chandon brand is any weaker, it’s that rituals are changing” as economic growth comes from parts of the world that do not yet associate champagne with celebration. The brand also remained the best-selling champagne in the United States last year, with sales volume rising 1.3% to reach 410,000 cases according to Shanken News Daily, a wine, spirits and beer industry news service.

Also Read: America’s Oldest Brands

3. Nokia
> Pct. brand value decline: 16%
> Brand value: $21.0 billion (19th)
> Parent company: Nokia Corp. (NYSE: NOK)
> 1-yr. change in revenue: -20.5%
> Industry: Electronics

Nokia has had a rough year. After Nokia lost market share for several years, Samsung finally overtook it as the largest manufacturer of mobile devices in the first quarter of 2012. The company’s stock price has been cut by more than half in the past year, and the company announced in June that it was cutting 10,000 jobs to preserve cash. Now the Finnish company is staking its hopes on the Microsoft (NASDAQ: MSFT) Windows’ mobile operating system. In September, the company previewed its Lumia 920 smartphone to investors, but they were not impressed. “The challenge is that the world is working on the 4th, 5th and 6th editions of their devices, while Nokia is still trying to move from Chapter 1,” RBC analyst Mark Sue told Reuters following Nokia’s presentation to investors. “It still has quite a bit to catch up.” But even Nokia’s catchup efforts were hurt in April when early buyers of the Nokia Lumia 900 had problems connecting to the web.

2. Goldman Sachs
> Pct. brand value decline: 16% (tied for 3rd)
> Brand value: $7.6 billion (48th)
> Parent company: Goldman Sachs Group Inc. (NYSE: GS)
> 1-yr. change in revenue: -23.2%
> Industry: Financial services

Goldman Sach’s brand has taken a major hit since the financial crisis because of its involvement in the sale of complex collateralized debt obligations and in the Greek debt crisis. The company’s practices returned to the spotlight this March when an executive director in the firm’s London office resigned in a scathing op-ed piece published The New York Times. Smith said, “The interests of the client continue to be sidelined in the way the firm operates and thinks about making money,” and he noted that managing directors would often refer to clients over email as “muppets.” Revenue in the first half of 2012 was at its lowest level since 2005 due primarily to weak trading volume. The company responded by cutting pay by 14% during the first six months compared to the previous year and reducing its headcount.

1. BlackBerry
> Pct. brand value decline: 39%
> Brand value: $3.9 billion (93rd)
> Parent company: Research in Motion Ltd. (NASDAQ: RIMM)
> 1-yr. change in revenue: -25.2%
> Industry: Electronics

The BlackBerry, built by Research In Motion, used to dominate the smartphone market, with loyal users often joking about their addiction to their “crackberry.” Yet blunders such as a BlackBerry outage in late 2011, the failure of its Playbook tablet and the stiff competition from Apple Inc.’s (NASDAQ: AAPL) iPhone and Google’s Android devices have led to a rapid decline of BlackBerry’s brand value. BlackBerry’s share of the smartphone operating platform market dropped from 21.7% in July 2011 to 9.5% just a year later, according to comScore. Meanwhile, Apple’s market share went from 27% to 33.4% in that time, while Google’s share went from 41.8% to 52.2%. The parent company has seen its stock decline nearly 90% in the past three years. RIM announced in June that it would cut approximately 5,000 jobs out of about 16,500 employees, or around 30% of its workforce. RIM is pinning its hopes on the BlackBerry 10, which will likely come out in early 2013.

Mike Sauter, Samuel Weigley, Alexander E.M. Hess, Brian Zajac

Also Read: Companies Paying Their CEOs More Than the Taxman

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