Analysis Part 1: Sector and Region wise Avg Ranks & Equities

What has been done: Data is available for 3 regions, namely Europe, Asia, US. The average equity of
each sector (all brands) has been calculated for the 3 regions. The same process has been carried for the
ranks.

Significance of Analysis: It would show which region’s brands are popular in the different sectors.

Imp Clarifications: A comprehensive comparison is not possible with the available data since very few
Asian brands have reached the top 100 and there is data for only three sectors in Asia.

Take Aways: The analysis can give a useful clue regarding the popular sectors in the three regions that
have been included and thus a possible hint regarding the preferences of the population of these
regions. Another important take away may be regarding the potential of an industry in a particular
sector. The lack of popular brands in a particular region may mean that there is untapped potential that
should be catered to.
Analysis Part 2: Rank Correlations

What has been done: Correlation between the rank of one year with its previous year has been
calculated. After calculating the respective correlations for the years 2002-2008, the average has been
calculated. The above calculation is for all sectors combined but each sector has been seperately
considered below.

Significance of Analysis: This analysis would show the strength of the relationship between a particular
rank with the previous year’s rank. In other words, it shows to what degree, the rank achieved in a
particular year, is dependant on the rank achieved in the previous years. Therefore, the averages can
give a rough estimate of the degree of “rank mobility” in each of the sectors.

Imp Clarifications:

 Ranks beyond the top 100 are not available, so accurate correlations could not be calculated
for brands that were in the top 100 for a particular year but went below the top 100 in the
next; this problem occurred due to the divide by zero error in the correlation calculation.
 Sectors in which data for only one brand was available were not included in the analysis; again,
this was due to the nature of calculation of correlation. Only 19 out of the total sectors in the
database could be included.

Take Aways: The degree of rank mobility or lack of it thereof in a particular sector can mean many
things:

 The size of the brands in a particular sector. High mobility  Small Size, Low Mobility Large
Size.
 The market demand situation for a particular sector; whether steady of volatile. High
MoblityVolatile, Low MobilityConsistent.
 Likewise, the growth potential for new entrants, threats for existing brands, nature of the
industry can be found out to some extent using these results.