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  • 1. Best GlobalBrands 2008 �. Intel ���,��� Million +�% from ���� �. Toyota ���,��� Million +�% from ���� �. Nokia ���,��� Million +�% from ���� �. GE ���,��� Million +�% from ���� �. Microsoft ���,��� Million +�% from ���� Lessons from the Best Global Brands �. IBM Building brand value ���,��� Million +�% from ���� Collaborative branding Activating employees Are you acting like a brand leader? Sustainability’s impact �. Coca�Cola ���,��� Million on brand value +�% from ���� Marketing and sector performance The Red Thread of brand value
  • 2. Contents ® Creating and managing brand value The business purpose for brand valuation p52p01 Introduction p54 The impact of risk on brand value by Sustainability and its impactA letter from Jez Frampton Jean-Baptiste Danet and Valérie Herdlicka on brand value p12 Brands create shareholder value and should bep02 Executive summary managed to mitigate risk of decreasing valueCreating and managing brand value p56 The future of future-proofing brand investments by Greg Silverman How will wep04 Guest contributor Harvard Business measure the unobservable and make informedSchool Professor Nancy Koehn speaks out brand investment?on managing brands p58 Planning your touchpoints to acceleratep08 The six laws of collaborative branding The Red Thread p16 profit by Rune Gustafson Understanding Each year our study of the world’s most My thanks go out to my friends and colleaguesby Jason Baer A guide to understanding the brand as a central organizing principle requires valuable brands has generated increasing who have contributed to this magazine,new era of branding in a consumer driven world the management of every touchpoint to build amounts of interest from the broad collection particularly Nancy Koehn, Professor of the experience for consumers of companies and practitioners associated Business Administration at Harvard Businessp12 Sustainability and its impact on brand with brands. We have enjoyed leading School, whose work we are delighted to havevalue by Paula Oliveira and Andrea Sullivan p60 Building brands in emerging markets by the discussion and joining debates to help as a contribution in this edition.Can organizations structure their green, or Interbrand’s leaders in Brazil, China, India, organizations recognize, appreciate and growsustainability, initiatives to produce value and Russia Aléjandro Pinedo, Nicola Stanisch, the value of their brands.growth for the brand? Iain Ellwood, and Jonathan Chajet talk about the challenges and opportunities to build This issue is a further progression of our Regards,p16 The Red Thread by Jez Frampton brands in developing economies annual report. It continues to focus on ourPutting the brand at core of the business pre-eminent Best Global Brands study but isbecomes a uniting force behind everything you p64 Brands create nations by JÜrgen now expanded to share the lessons from thesedo and say to drive value Häusler leading brands to enable us to give you more A look at the association between nations and practical advice within the opportunitiesp20 Taking action: acting like a brand leader their brands The six laws of collaborative and challenges of today’s market.by Graham Hales Practical steps for acting, branding p08behaving, and managing like a brand leader p66 The luxury kingdom by Manfredi Ricca We’ve also updated our website, Understanding the laws ruling the luxury www.interbrand.com, to offer broader market and deeper perspectives on creatingp24 Interbrand’s method for valuing the and managing the value of brands.2008 Best Global Brands Understanding our p68 It’s what on the inside that countsmethod and approach to looking at brands by Stephanie Colton and Carolyn Ray We hope you continue to find our perspective Jez Framptonthrough a financial lens An employee’s engagement with the brand on brands to be helpful, stimulating and Group Chief Executive means the difference between satisfied provocative. Interbrandp26 Profiles of the 2008 best global brands customers and bottom-line results It’s what’s on the inside that counts p20and industry insights A snapshot of the top100 global brands and insight into what’s p72 The value of creativity by Andy Paynedriving growth in each industry A creative director’s point of view on the value of brandsp52 The business purpose for brandvaluation by Nik Stucky A look at how we Appendixunderstand brands as business assets,and how brand value is a barometer for a p74 Commonly asked questionshealthy business p80 About Interbrand and our Best Global Brands study p80 Contact us Best Global Brands 2008 01
  • 3. Executive summary The past year has been one of the more dramatic and turbulent that global economies have endured. In some regions of the world, the anticipation of a troubled economy ahead Is my brand a leader? To understand your brand’s ability to lead retreat from evolving your brand or your offering to maximize your ability to create demand. Your competitors are experiencing the same climate;Best Global Brands has taught us time and time will undoubtedly make it more challenging for marketers to make effective plans. in these times, consider these questions. maintaining the status quo is rarely aagain that brand remains a far less volatile asset Patience wanes in a results-oriented, nervous Is my brand truly in sync with winner’s strategy.than other business assets – tangible economy. Brand management needs to constantly demonstrate value. And in regions my market? Consumers’ attitudes are constantly How is my competitive set likely toor intangible. with markets opening to the global stage for evolving. But when the economic climate change when I’m competing harder for a smaller share of wallet? the very first time, a new and unknown set of shifts, these changes quickly become When there’s less money to go around, challenges awaits. more evident. As consumers’ percep- discretionary spending habits change. tions of value change, your business Competitors start to cross market As the world becomes one global economy, model should adapt to meet this new segments. Brands stop competing in it becomes an increasingly complex place. criterion. The value of every purchase will category and start to compete beyond Will the economic woes of developed count for more in consumers’ pockets. category. It’s no longer the choice markets pollute emerging markets, or will Instinctively, they will take fewer risks between Nike or Adidas shoes. The developing markets provide the medicine and turn to brands they know and trust. question becomes, “Do I buy shoes or that the established world needs? Charting A valued brand will need to discount less an iPod?” the course for successful brand management and can even find their consumers will- requires a multifaceted perspective, ing to spend more if they believe they’re Do I fully understand how my brand even if it’s delivered through one brand. getting more value for their dollar, euro, makes money for my business? A connected and holistic approach to pound, rupee or yen. Your brand plays a significant role in brand management is a prerequisite. your supply chain. It is an assurance Are my employees prepared to meet of quality on the supply side and Best Global Brands has taught us time and greater service and quality demands a revenue source on the demand time again that brand remains a far less from customers? side. You need to understand its volatile asset than other business assets – The uncertainty of a downturn drives intricacies if you’re to maximize its tangible or intangible. consumers to want more for their money role and value to your business. and demand a more emotionally reward- In troubled economies, we know that business ing experience for their hard-earned and doesn’t cease. Companies may struggle, but limited cash. Consumer expectation ... And remember that downturns the practice of buying and selling continues grows and your employees must be ready are followed by upturns. Moods and no matter what. Leading Brands know this to deliver against these demands. Your appetites of the business may change, and come through difficult times stronger and people, and their sense of engagement to but organizations that understand readied to compete, rather than hibernating in your brand, have never been more impor- and respect their brands as assets will the comforts of business-as-usual. tant. Connecting your employees to the prosper. While it may be tempting to brand experience they provide is crucial. slash and burn, brands – like other In developing markets, we know there is a business assets – don’t thrive in a start, world of possibilities opening to consumers. Is innovation a necessity at this time? stop, pick-me-up, and put-me-down The idea of buying and selling is not new to If Henry Ford listened to customers mentality. Growing the value of a brand them - greater choice is the novel concept. he’d have made a faster horse! Don’t is a constant and cyclical process. Wealth is no longer an exciting idea, but a reality. The marketer’s challenge is showing people where and how to spend. Many of the Best Global Brands have seen the opportunities emerging and are bullish in establishing themselves. Regardless of your view of the world, in good times and bad, your brand is your company’s most valuable asset. Understanding how your brand creates value for you is key to maintaining market leadership or establishing it in the first place. We continue to see an increasingly sophisticated outlook on managing brands, and a growing importance on understanding the drivers of brand value.02 Best Global Brands 2008 Best Global Brands 2008 03
  • 4. Guest Contributor: Respected Harvard Business School professor and author Nancy Koehn speaks out on managing brands Employee Satisfaction 01 The difference Employee Loyalty Employee Productivity between the brand and the business Quality of Companies, and Countries Triumphed in Three She is a frequent commentator on National CustomerNancy F. Koehn Industrial Revolutions (1997); and Management Public Radio. experienceHarvard Business School Past and Present: A Casebook on American Business History (1995). She has written and supervised Before coming to HBS in 1991, Koehn was a cases on Oprah Winfrey, Starbucks Coffee member of Harvard University’s Faculty of Arts In companies with powerful brands, the brand Customer Satisfaction Company, Ernest Shackleton, Wedgwood, and Sciences for seven years, first as a graduate and the business are all bound up together, Williams-Sonoma, Estée Lauder, Henry Heinz, student in history and then as a lecturer in the and finding hard, fast lines of demarcation Customer Loyalty Milton Hershey, Celeste Walker, Marshall History and Literature concentration and the between the two is difficult. In such organiza- Source -The Service Profit Chain, Field, Dell Computer, and other leaders Department of Economics. During the years, tions, like Google or Apple or Starbucks, there Heskett, Sasser, Schlesinger Revenue/Profit GrowthNancy F. Koehn, an authority on business and organizations. she received the Allyn Young prize in 1989 is a collective understanding that the businesshistory, is the James E. Robison Professor and numerous Danforth commendations for would simply not exist without the brand. Itof Business Administration at Harvard At the Harvard Business School, she teaches excellence in teaching. shapes the idea of what the company is, at itsBusiness School. Koehn’s research focuses the MBA elective, Entrepreneurial Leadership: core; where it is going in the larger market;on entrepreneurship, leadership, and Past, Present, and Future. For many years, she A Phi Beta Kappa graduate of Stanford and the end toward which it is traveling. I have than it would in a company in which the brand experience is broader and richer than buyingconnecting with customers in the Information taught, The Coming of Managerial Capitalism, University, Koehn earned a Master of Public seen the force of this understanding at work was a discreet attribute and managed as a given product or service, as important asRevolution. She is currently working on a one of the School’s most popular courses. Policy from Harvard’s Kennedy School – in some companies, it evokes the passion of such. In truth, the brand remains the central, a given transaction is. Customer experiencebook about the most important leadership of Government in 1983. She worked as a a person serving a higher purpose. I have seen animating aspect of the organization and its includes how a consumer feels during a call tolessons from Abraham Lincoln and another Koehn consults with many companies and congressional aide before receiving her its reach and depth in virtually every aspect of most important tool for weathering market a help desk, how he or she reacts to learningon social entrepreneurs. Her most recent speaks frequently before business leaders on a M.A. and Ph.D. in European history from the company, from financial reporting to sup- turbulence. But in confusing times, it will not about a company’s offshore labor practices,book, Brand New: How Entrepreneurs Earned range of issues including leading in turbulent Harvard University. ply-chain management to product innovation. always be understood as such. It is the task of and what happens when he or she asks forConsumers’ Trust from Wedgwood to Dell (Harvard times, the power of strong brands, visionary company leaders to carry the brand standard advice from an employee but does not pur-Business School Press, 2001) examines six entrepreneurs, and learning from history. All these “ties that bind” carry important ben- high, to frame the stakes of the moment and chase the offering. In each of these examples,entrepreneurial visionaries who have created In 2001, Business 2.0 named Koehn one of efits, including engaged employees; profitable to keep the relevant stakeholders on the path customer experience (and thus brand assess-powerful brands and best-of-class companies 19 leading business gurus in the United States. differentiation in the marketplace; collective of effective brand stewardship. ment) is dependent on the engagement,in moments of great change. She has appeared on “Good Morning America,” (often unspoken) agreement on the criteria satisfaction, and competence of company CNBC’s “Moneywheel,” “Nightly Business by which most decisions are made; significant employees. And these are, in turn, a functionKoehn is also the author of The Power ofCommerce: Economy and Governance in the First Report,” and “Street Signs,” “The NewsHour with Jim Lehrer,” A&E’s “Biography,” CNN’s “Money competitive advantages (the more bound up the brand and the business are, the harder they 02 The brand and the of the service profit chain, of how manage- ment perceives the relationship betweenBritish Empire (1994), as well as a contributor to Line” and many other television programs. are for rivals to emulate); high levels of cus- service profit chain employee satisfaction and its financial perfor-Remember Who You Are: Life Stories That Inspire the tomer interest and loyalty; and the perception mance in the marketplace. For companies thatHeart and Mind (2004); The Intellectual Venture – both inside and out – of organizational con- honor the service profit chain (and benefitCapitalist: John H. McArthur and the Work of the sistency and coherence. But this intertwining accordingly), the growing sophistication andHarvard Business School, 1980-1995 (1999); of brand and business is also fraught with key confidence of consumers who rely so heavilyCreating Modern Capitalism: How Entrepreneurs, risks: if the brand or the business suffers a blow, Every firm has a brand and every firm has a on their experience is good news. For others, particularly an unexpected one, many aspects service profit chain, whether management particularly those led by executives who view of the company and its path may become recognizes such attributes or not. These two employees primarily as large cost centers and vulnerable. For example, if the external mar- aspects are part and parcel of each other, who talk a lot about great service while ket changes swiftly – as it did for Starbucks and becoming more so. Why? Because con- delivering poor experiences to people inside in the last 18 months – then the brand may sumers are increasingly evaluating brands and out of the business, the day of reckoning is be perceived as weaker or more problematic by their own experience with them. And this fast approaching.04 Best Global Brands 2008 Best Global Brands 2008 05
  • 5. In all this turbulence and seeking, brands the company’s service philosophy, its credo, worked to create a team of people within the03 The significance of 05 Harvard Business offer direction and clarity. For consumers, strong brands stake out a defined identity and motto, and other aspects of the Ritz-Carlton Gold Standards. The overall intention of the company who would be dedicated to each brand – to protecting and marketing their 10 Marketers’brand value: Brand value School and brands value proposition, advantages that become program is to prepare employees – mentally respective lines in it. Here we can see the nightmaresis an important measure even more important when households are as well as practically – to live and breathe the emergence of the brand as a business asset, as re-evaluating their spending patterns. For organization’s motto: “Ladies and gentlemen a feature that benefited the organization and companies, powerful brands act as a kind of serving ladies and gentlemen.” was thus worthy of attention and value. For touchstone or ballast in the storm, telling much of the 20th century, brands remained The Harvard Business School lives, indeed employees what the organization stands for, At its essence, this orientation is an such business assets. They were often more dif- Several of the marketers I know are lyingBrand value is used most frequently in the thrives, at a curious junction between theory where it came from, and why what the organi- investment in the Ritz-Carlton brand. ficult to put a dollar value on than other assets awake at night thinking about these twoaccounting context, as a means of measuring and practice. Between the rigors of scholarly zation does in the marketplace is distinctive. As such, it is also an investment in the on the balance sheet. But managers under- issues: a voracious global media that is increas-the asset that a brand represents. We hear a research with its explanatory models and confidence of the people – from bellmen to stood them to be important to the operation of ingly looking to business for the next “hotlot about the financial value of a brand when a the everyday reality of starting, running, Unfortunately, many executives overlook the room service waiters to maintenance staff – the business and treated them as such. scoop” and knowledgeable consumers whocompany is bought or sold. But this is not the and sustaining a business. How and what importance of brands in times of uncertainty. who hold the brand in their hands every day. are increasingly making decisions based notonly, or even the most important, application we teach reflects the institution’s position In the rush to cut costs, top managers often A clearly defined, powerful brand is like a In the last decade, the conception of the only on a company’s offerings, but on howof brand value. Having an accurate measure at this crossroads. We want our students to slash investments in brand, seeing these as light in the midst of a thick fog. It is a beacon brand as a business asset has grown more those offerings are produced and distributed.of brand value is extremely constructive day see how world-class scholars have thought (suddenly) too expensive. Such reaction is for men and women to steer by and thus a dynamic and complex. As consumers When we marry these issues to great leaps into day as managers make decisions about about brands, how various companies create understandable. But it can be shortsighted. source of self-assurance. (and employees) develop deeper and more connectivity, we have a brave new, completelyallocating resources across time and projects. and manage brands, and how these two Like important relationships, brands offer key engaged relationships with brands, executive transparent world. Marketers, CEOs, and otherIt’s interesting that most executives know the perspectives relate to one another. So it is not benefits – especially in times of trouble. But thinking about brands is changing as well. business leaders, it seems, now live in glassvalue of their plant, inventory, investments inpeople, IT systems, and other assets. They use surprising that our students today learn a lot about brands in the first-year curriculum and they don’t do this on command or on the spot. They do this as a result of ongoing investment 08 Brand as a In many companies today, leaders under- stand that the asset that brand represents houses. In this environment, where whom a company hires in an East Asian factory canthese numbers to help them steer their com- that, in their second year, many elect to take and commitment. business asset transcends marketing, that it is related to become the (scandalous) stuff of internet chatpany’s course. But far fewer know the value courses that deal centrally with brands. For other key aspects of the business. These rooms and where one’s sourcing policies canof their brand, treating it as a more intangible example, in my second-year MBA course on Given this, it makes good strategic sense for aspects include attracting and retaining tal- provide fodder for global activists, marketersand thus often more fungible resource. As a Entrepreneurial Leadership, one of the subjects CEOs to pay careful attention to brand in the ent, analysts’ perceptions of the business, and other executives are learning the powerresult, the brand risks being (subtly) devalued with which students are most engaged is how midst of turmoil and doubt. After all, most of supplier relationships and leverage, media of an old adage: the best defense is a good,relative to other more quantifiable resources specific individuals, such as Henry Heinz or one’s rivals are likely to be running away from Brands first became part of business parlance coverage, and more. fast offense. The best way to thrive whenand issues. For instance, a manager under Milton Hershey or Oprah Winfrey, built world- brand. So there is competitive advantage to in the late 19th and early 20th centuries. In everyone is looking at everything is: first, runshort-term pressure to cut customer-service class brands and why brand mattered so much be had. the United States and other countries, this a clean, smart shop; second, know how yourcosts sees Wall Street’s analysis of the firm’scost structure. She may not see a correspond- to their young companies’ success. was a time when integrated, national markets were developing and the economy was 09 Brand management shop is run – from the top of the supply chain to the bottom; and third, get the story of youring number for the financial effect on brand 07 Brand and internal industrializing. A range of young companies, in developing markets shop out before others beat you to it, telling itvalue if she slashes hotline employees. 06 The brand and CEO confidence from Ford to Coca-Cola to Gillette, began manufacturing and distributing consumer on their terms and for their agenda and almost always with less than all the relevant informa- priorities in uncertain products for millions of households. To tion. Brush up your story-telling powers. This04 Business school times communicate their products and distinguish is fast becoming an important requirement them from competing ones, companies One of the most interesting aspects of global for smart brand stewards.students and brands invested in packaging, advertising, national capitalism today is how quickly markets are My research suggests that brands play a vital sales forces, and, in some instances, employee evolving in developing countries. In places like role in sustaining confidence within a company. training. (It is not a coincidence that the China, India, and Brazil, everything is happen- It may seem counterintuitive, but brands This is most obvious in firms such as Southwest advertising industry emerged as a force in its ing much more quickly than it did in today’s actually matter more – not less – in uncertain Airlines, Apple, the Ritz-Carlton, or The own right during this period.) developed economies, places like the UnitedIn my 17 years at Harvard Business School, economic times. This is because in a downturn Container Store. These are all strong, market- States, Europe, and Japan. What took decadesI have seen MBA students’ interest in brand Most business leaders of this time did not or in a moment, such as ours right now, when leading brands. These are all brands that depend to happen in these industrialized countries ingrow markedly. Some of this is a result of the use the words “brand” or “brand management” there is so much confusion in the economy, on front-line employees to communicate the terms of consumer sophistication, brand man-increasing importance – strategic, organiza- to describe what they were up to. But entre- most people are running scared. Consumers core brand attributes and value propositions agement, and the application of technology,tional, cultural, and financial – of brands in a preneurs like Marshall Field, who created the are anxious about prices and jobs and cash to the consumer. These are all brands that is taking just a few years – sometimes less – incrowded, exciting, but also confusing global premier department store of the same name, flow and housing values. Company executives have proven tough to imitate. And these are all developing nations today. In some instances,marketplace. Some of this is a function of or Alfred Sloan, who did so much to build are anxious about revenues and profit margins brands in which the first customers whom the entrepreneurs and managers in places likethe rising importance of the internet and the and year-over-year comparables. And every- companies sought to win over were the very General Motors, knew they had something China are actually able to leapfrog over their It may seem counter-role brands play in helping people navigatethis astounding (and bewildering) new chan- one is nervous about the capital markets, employees who became passionate disciples for important in the recognition that consum- counterparts in the United States and Europe, intuitive, but brands particularly the stock market. So, in different the brand and its offerings. ers gave their products, and they worked to moving farther and faster with a new idea ornel. And some of students’ engagement with ways, most folks are looking for signposts or increase and strengthen such notice. new possibility in brand management. For actually matter more –brands is sui generis: brands themselves arebecoming more interesting – from the busi- guidelines or points to steer by. Some of this Take the Ritz-Carlton, for instance. Before any example, in China, brand communication via not less – in uncertain searching is conscious, such as an academic person takes up the reins of any position in a Managerial thinking about brand developed hand-held devices is way ahead of the sameness and the consumer side. calling a financial expert for advice on her company property, they undergo an intensive rapidly in the middle decades of the century. strategy in more developed countries. We will economic times. retirement portfolio. Some is unconscious, seven-day orientation. This involves skills In the 1930s and 1940s, brand management continue to see exciting innovations in brand such as company executives changing course training in the specific aspects of various posi- took a huge leap forward under the leadership management come from these young, impor- several times on budget issues (leaving his tions. But it also involves a kind of “baptism in of men like Neil McElroy at Procter & Gamble. tant economies, as well as from other nations reports confused and perhaps more anxious). the brand,” as new employees are exposed to McElroy, who would go on to become CEO, where global capitalism is just now taking hold.06 Best Global Brands 2008 Best Global Brands 2008 07
  • 6. The six laws of significant and far beyond the means of any one individual. But, with the proliferation of Coca-Cola entreats its customers to “Design the World a Coke” through a customization One last point on the numbers: try to have a few big opportunities for content creatorscollaborative personal technology and the rise of interactive tool on its website, while Ben & Jerry’s rather than a myriad of trivial opportunities. networks, the barriers to entry are gone. 01 The Law of recently completed an open “Video Conetest” Previous iterations of coca-cola.com had the Every consumer with an idea and an iMac is a potential visionary, willing and eager to Inevitability for ice cream lovers on its site. And more branded challenges and user generated same major flaw: too many opportunities in too little time for too small a reward. Webranding step into the role of brand ambassador. And this means you’re just as likely to find the next great creative director in an anonymous Consumer generated media is here to stay. Resistance is futile. Those who scorn the idea of non-professional creative work have done activities are appearing on the web every day. Aside from opening up communication are still in the very earliest stages of con- sumer generated content, and not everyone is prepared to write an ode to their favoriteby Jason Baer college dorm room as in the studio of a so largely from within the walls of the most channels with potential artists, writers, soft drink one week and design a new can massive advertising agency. conservative advertising agencies, often with a photographers, actors, and directors, the the next. Coca-Cola burned out its potential vested interest in more of the same. We’ve been internet enables us to distribute content in a advocates, posting far too many challenges in The ability to act as both content producer running some variation on the 30-second spot way not possible through print or broadcast just a few months. Doritos had it right when it and content consumer heralds the rise since 1941, when the Bulova Watch Company media. For many years, advocates of viral created one big challenge for one big reward: of the prosumer, but with this new paradigm paid NBC $9 to air the world’s first television marketing have written extensively about make your own commercial, and the winning comes a question: What is the role of brand commercial. But bombarding consumers’ the opportunities of the online environment, submission will air during the Super Bowl. in an environment that values disruptive senses no longer works. As Procter & Gamble’s but as social networks and the digital swarm Now McDonald’s is asking its customers to top ideas, constant reinvention, and personal soon-to-be-former Global Marketing Officer, usher in the age of the long tail, going digital its ad jingle. It’s no wonder the thousands of expression, over consistency and long-term James R. Stengel, attests, “the traditional mar- is no longer a luxury you can afford to pass thoughtful (and not so thoughtful) responses strategy? keting model we all grew up with is obsolete.” up (see Chris Anderson’s The Long Tail and the to these challenges dwarfed the handful of Biography: upcoming The Nature of Marketing: Marketing responses to Coca-Cola’s previous contests. As Interbrand’s Director of Verbal Identity Or more plainly: is branding dead? Only the brands that actively engage their to the Swarm As Well As the Herd by DDB’s CEO, in New York, Jason Baer combines an array audiences in a conversation will survive. Chuck Brymer). of experience in communications, brand When the wrong definition of “brand” is And this calls for more than friending our strategy and ideation to help harness the power of language in compelling new applied, the answer is unequivocally “yes.” Those who define brands by their collective customers on Facebook or inviting them to a forum on our corporate website. It means 04 The Law of Substance ways for his clients. Jason has worked with numerous large clients like AOL, Citi, assets – taglines, color palettes, typography – have no choice but to hold on tight and pray surrendering some of the creative control and asking them to share their ideas. This isn’t a 03 The Law of Numbers Brands that value style over substance won’t pass the test. and Comcast. that consumers will grow tired of expressing bad thing. Customers who choose to engage A new paradigm requires a new way Which is easier: writing an 800-word poem themselves and retreat quietly to their day with their brands become loyal brand ambas- of looking at numbers. in iambic pentameter on any topic of your jobs. After all, what value do brand guidelines sadors, and the work they create is far more You probably know what a set of eyeballs is choice, or writing anything you like aboutWe regret to inform you that your services are no have when true self-expression requires rein- credible than anything we could say about worth, but how about a pair of hands? If we your single greatest achievement? If you’re like terpretation and personalization? ourselves. If we don’t ask them to participate, value efforts in collaborative marketing most people, it’s probably the latter, becauselonger required. You’ve been a perceptive and judicious watch out, because they’ll happily take mat- strictly by impressions, then we’ll see them as ideas are inspirational, and rules are confining.marketer, and you should be proud of your outstanding But the meaning of a brand isn’t rooted in a ters into their own hands. Just look at the failures. But surely anyone who spends hours If your brand lacks a meaningful and relevant name or logo any more than the meaning of hundreds of homemade Apple commercials contemplating a brand and then creating, say, idea, all of the brand guidelines in the worldcontribution to the industry. However, we’ve found your life can be found in the clothes on your (or the more antagonistic Microsoft Zune a poster for that brand has had more than a won’t help your customers think creatively.someone younger and far more capable. back. A brand is a promise rather than the spoofs) on YouTube and you’ll see that this brand impression. They’ve had a brand conver- colors and images we use to express that can’t be stopped. So don’t fight this phenom- sion. They’ve become ambassadors, and are Over the last several months, creative icons promise. Of course, our assets are of tremen- enon. Embrace it. eager enough to show their brilliant work to like Shepard Fairey and will.i.am have createdSomeone whose pulse is tuned to the latest trends and dous value. Without them the concept behind friends and family that they’ll handle the dis- content for Barack Obama’s run for U.S.is inexhaustibly passionate about authenticity. Someone our brand remains a desired perception, never tribution as well. How can we compare that to President, and did so without being asked. to be realized. But if we base our understand- any number of glances at a banner ad? Miraculously, these artistic expressions havewith unlimited creative resources, and frankly, a greaternumber of ideas than you’ve ever had. Getting to the ing of brands in the fundamental idea rather than the execution, we may be able not only 02 The Law Of Let’s also recalibrate our expectations when it been on-brand, because the artists were inspired by a clear, resonant idea (change)point, we’re replacing you with... your customer. And by to survive this shift to collaborative market- Interactivity comes to participation rates. The vast major- and not by rules and regulations. In fact,this ing, but moreover, to strengthen our brands ity of consumers, while eager to be engaged, creative outpouring has influenced MoveOn.the way, she’s willing to work for free. because of it. Don’t just be active, be interactive. are far too busy to write a webisode or design org to launch a series of consumer generated How digital are you? If your only interactive a new packaging structure in their spare time, challenges on behalf of Brand Obama. Brands We’re in the infancy of this new era, contend- tool is your corporate website, the probable and will continue to play a passive role with with ideas as explicit as Obama’s – Staples’Consumer generated media is no passing fad. Commercials, print ads, taglines and more ing with everything from mobile apps to answer is “not very.” Most corporate websites the brands they love. But as we’ve seen from promise of an easy experience or Starbucks’Many of the world’s most successful brands are being produced by the very audiences mashups, and no one can say for sure where are akin to a megaphone, trumpeting YouTube and Flickr, a small number of con- promise of a third space – will have noare progressing beyond the centuries-old they are intended for and, at first glance, all of it will lead. But we’re undoubtedly information on a company’s history, mission tent creators can entertain a large number of problem passing this test. Brands withoutmodel of driving awareness through mass it looks as though many functions within the crossing over from marketing at people to and products, with little more than a “contact people. Like the endless flood of homespun, a clear idea will never inspire customers tomarketing, choosing instead to engage larger marketing community are becoming marketing with them, and could use a few us” page for complaints, new business, and teenage videos and late-night, curmudgeonly create, no matter how many brand assets youcustomers. In a well-documented rapidly obsolete. principles to help us through the transition. the press. By expanding corporate websites rants on YouTube, much of the content will be give them.phenomenon known by many names – from With these six basic laws of branding in the to house creative activities and contests, or of questionable value. Fortunately though, allCitizen Marketing to Crowdsourcing – Not so long ago, the technical skills and age of consumer generated media, we may by developing microsites for a similar purpose, it takes is one inspired idea to make an onlinemarketers are inviting their customers to distribution capabilities required to create find that our jobs aren’t disappearing we can communicate directly with aspiring sensation. So don’t underestimate the impor-take part in the creative process. and deliver a marketing campaign were quite so fast. creatives, hobbyists, and brand aficionados. tance of volume.08 Best Global Brands 2008 Best Global Brands 2008 09
  • 7. In the end, you’re still running the show. You conceive, create, and manage the brand, with a little help from your customers. You get to05 The Law of choose the form and specificity of contentImprovement you’re asking for, and to decide what to do with it once you’ve got it. You decide whether to circulate it or internalize it. If anything,Collaboration can be used to refine brands. you’re in a better position to manage yourThink of it as a form of research. While con- brand than ever before, because yoursumer generated marketing often strives to consumers are offering their help. You areengage customers around an already well- ceding some control, but you have very littledefined idea, it can also be used to optimize to give and a great deal to gain. So loosen up.a brand. If Harley-Davidson was to solicithomemade commercials and found that theresponses focused on precision and perfor-mance rather than the company’s decades oldpromise of freedom and personal expression, Many questions stillthen that would tell the company somethingabout the relevancy of its brand in the 21st remaincentury. Perhaps it would have to make a few At the end of these six basic laws, manyrefinements to its promise. If Geico were to questions still remain. What are the rewardsfind that submissions to a creative challenge that motivate consumers to act? Willyielded responses with a cautious, analytical consumers flock to functional brands thetone rather than the zany, humorous voice it way they’ve converged on lifestyle brands? Tohas been employing, this might force them to what degree will business-to-business brandsreassess their brand personality. participate in this social phenomenon?Looking at consumer generated media for Each of us will have to answer questions likequalitative clues into a brand also relieves these for ourselves, but with a sure-footed,these works of having to meet a company’s resonant brand idea behind our businesses,usual high standards. If we’re using these we should find our customers eager to sharecreative works to learn something rather than their side of the story. These basic lawsas a substitute for our professionally produced certainly don’t provide all of the answers,content, then it might not matter if the work but they do give us a framework for navigatingdoesn’t earn a Clio. this new terrain. And if we’re open to change, we’ll find that our jobs aren’t being completely outsourced to our customers. Not yet, anyway.06 The Law of FlexibilityThose that can’t bend will break.One thing is certain: the days of complete andtotal jurisdiction over your brand are gone.You’re playing with others now, and the samerules you’d apply to any collaborative environ-ment apply here. Accept that you don’t haveall the answers. Be open to the ideas of others,even if (and particularly because) those othersaren’t as immersed in this as you are. Useideas rather than rules to unite and inspirepeople, and let them come to their ownconclusions. Realize that multi-dimensionalbrands with one unifying idea but manyindividualized expressions can be far morepowerful than a “museum brand” that you cansee but can’t touch.10 Best Global Brands 2008 Best Global Brands 2008 11
  • 8. Figure � — Sustainability matrix, examples Figure � — Sustainability matrix, action pointsSustainability and its impacton brand value by Paula Oliveira A. Cost of doing business Factor: B. Leadership Relevance of sustainability for he sector Relevance of sustainability for he sector Must do Influence& Andrea Sullivan C. Laggard: D. Wasted Opportunity: Innovate and don’t greenwash Re-focus One of the latest buzz words found in man- social causes, and corporate governance. agement journals, websites, and corporate In boardrooms, this translates to the “triple documents is “sustainability.” Some people even bottom line,” i.e., a company’s initiatives must want to recognize it in a company’s balance consider environmental, social, and financial Brand differentiation regarding sustainable issues Brand differentiation regarding sustainable issues sheet as an asset. Okay, let’s not go that far. impacts. Yes, financial impacts. That means companies must make investment decisions It is undeniable that sustainability is a new that will benefit the environment and society, Civics and Fits. While reducing dependence of heating. They are also beneficial for P&G, there is also an opportunity for differentia- way of doing business, in the same way and guarantee the sustainability of the project gas-guzzling cars and increasing the number through revenues and positive opinion about tion. The same applies for automotive and “re‑engineering” or “just in time” were in the itself. We are not talking about charitable of fuel efficient models became a “must do” both brands. P&G made sustainability relevant diversified sectors. If the brand is perceived late 1980s. Sustainability is not an asset that causes – but ethical products and services in the automotive sector, Honda was first to in an unexploited category and is now influ- as differentiated, but sustainability is not can be bought or sold, rather it’s becoming that will change consumers’ behavior and help differentiate and is ahead of the debate. This encing consumer behavior – not only toward relevant to the sector yet (Figures 2C and 2D),Biography: an integral part of many a company’s philoso- them to live a more “sustainable” life. leading behavior contributed to an increase of its brands, but toward a new and more “sus- there is an opportunity to develop innovativeThe well-traveled Paula Oliveira phy. Just as company management practices 28% in Honda’s brand value since 2004. tainable” way of washing clothes. P&G has products and services that will raise aware-has managed brands and worked influence business value, so do sustainability Brands enter the debate right about here. similar initiatives in other product lines to save ness and relevance of sustainability for thewith clients across a wide range of initiatives. Therefore, the question is: How A leading brand translates to customers what The same can be said about GE, which energy and replace chemicals with more suit- category (like P&G). The prize is not only lead-geographies. As Interbrand’s Senior does it create value? is relevant in today’s world, influencing buying saw an increase in its brand value by more able alternatives. ing the category, but positively influencingConsultant in London, Paula is a key behavior. It also develops a strong relationship than US$6.0 billion since 2005, when consumer behavior.component of the Brand Valuation Moral motivations to invest in sustainability with customers because of its distinct offer- Ecomagination was launched by then-CEO, Honda and GE play in sectors in which sus-team, and has helped many clients are not in dispute: climate change, poverty, you ings, leading to repeated purchasing. In other Jeffrey Immelt. Among other goals, the pro- tainability is already a concern. Through For brands that are not differentiated, and dounderstand the value potential of name it. But what companies don’t know yet is words, a brand creates value in two ways: gram intended to increase spending on clean portfolio management and innovation, they not play in sectors in which sustainability istheir brands. what level of investment they should make and generating demand, and reducing risk and technologies, reduce greenhouse gas emis- are now ahead of the sustainability debate relevant (Figure 2C), there is an enormous risk what is the measurable benefit of investing. securing future earnings for the business. A sions, and generate US$20 billion in revenue and are influencing demand for their products of greenwashing, i.e., trying to differentiate When the benefit is not clear enough to justify sustainability program that is consistent with from green products, including jet engines, and services. P&G went even further, raising through communication but not investing in investments on economical grounds, manag- a brand’s positioning will create value for com- locomotives, and wind turbines. This created awareness of sustainability issues in a cat- sustainable development. A study published by ers easily turn to initiatives that guarantee panies by creating more value for its brands. a halo effect around other offers, improving egory apparently unrelated. See Figure 1. TerraChoice, an environmental marketing firm, short-term results and everyone’s jobs, espe- perceptions about the company and making it showed that 99% of 1,018 consumer products cially with recession knocking on the door. Generating demand for products top of mind in sustainability surveys. It moved These examples suggest that the first step in surveyed were guilty of greenwashing. These and services ahead of competitors, such as Siemens and developing a “sustainable” strategy is to iden- companies risk not only their reputation, but There are some direct benefits, such as: A study from Carbon Trust, a UK-based con- Phillips, which also have strong commitments tify the relevance of the issue for the sector also future earnings for the business. compliance with an increasingly rigorous sultancy that helps businesses to reduce their to such initiatives. But GE led the debate and and how differentiated the brand is regarding legislation; cost savings derived from carbon emissions, shows that social and envi- it is collecting the laurels – in the form of divi- sustainability issues. See Figure 2. Ann Hand, optimization of production lines and supply ronmental concerns can result in changes in dends – today. former SVP, Global Brand & Innovation at BP chains to reduce energy consumption; consumer behavior. Among several factors that adds, “Brands need to have a point of view on reduction in CO2 emissions; desire for more provoke this shift are “issues of immediate per- P&G is another example, but in a different the elements of sustainability that are rele- ethical products; and simply satisfying an emerging and cynical green consumer. sonal impact” and “realistic available choices.” That’s where brands can make a difference. way. A few years ago, sustainability was not a relevant issue in the washing powder or deter- vant to their brand… they can’t solve it all. For BP it’s about a lower carbon world: alterna- A leading brand But most importantly, incorporating gent category. Through investments in R&D, tive energy sources and lower emissions from translates to customersBiography:Andrea Sullivan is Interbrand’s sustainability as a business practice will not only increase companies’ brand value, but Let’s take a sector for which sustainability is a big issue: automotive. Companies such P&G developed Tide Coldwater, which does not require hot water for usage and, as it is traditional fuels. It also requires a clear, hard, baseline of where your firm is today; and com- what is relevantExecutive Director of Client Services guarantee a long life for the business. as Honda recognized that mineral fuels are more concentrated, allows reduced packaging mitment from the top in the CEO’s agenda, in today’s world,in New York. Among her manycontributions to the business, Relationship between sustainability limited and prices of petroleum are rising. This motivated it to adapt its product range materials. Another example, also from P&G, is Ariel’s “Turn to 30O “ campaign. The campaign backed with investment dollars that won’t get cut off in six or twelve months if earnings slip.” influencing buyingAndrea looks after client and brand value to fuel-efficient cars. Honda was one of the suggests consumers turn water temperature behavior.relationships and ensures that Although it’s hard to find consistency among first movers in this direction and this is paying in washing machines from 40O to 30O when For sectors such as energy and mining (Figureprograms are managed efficiently definitions of sustainability, it is common dividends today. It was the only car manufac- using Ariel with the same results guaranteed. 2A), there is a massive impact on the environ-and deliver long-term value. sense that it incorporates companies’ turer to report better US sales in June 2008 These developments are beneficial for the ment and communities. As such, investments relationships with the natural environment, than in June 2007, credited to fuel-efficient customer, who can save energy from water in sustainable initiatives are a “must do.” But12 Best Global Brands 2008 Best Global Brands 2008 13
  • 9. Brands create value byReducing risk and securing future Investment in water supply in India is not only Brands have the power toearnings for the business relevant to the population, but also to the sus- change the worldBrands create value by generating demand tainability of the business in the country. After Sustainability is not a fad – it’s a new way ofand securing future earnings for the business.So how can investments in sustainability influ- all, how would Coca-Cola produce soft drinks without water? This and other initiatives posi- doing business. We can determine the influ- ence this business practice has on the overall generating demand and securing future earningsence those future earnings and brand value? tively influenced the company’s share value at business and brands, but there is no standard the end of 2007 and its brand value increased solution. Companies need to assess the rel-A company’s value is today’s value of the earn- by 2% in 2008. evance of sustainable issues to their business,ings it will potentially generate in the future.It’s a function of the magnitude of those The same applies to oil and mining groups, as well as current perceptions about their brands on this matter, the potential upsides for the business.earnings and the risk associated with them. both heavy users of natural resources. BP had of investing in sustainability projects, and theTherefore, sustainability is strongly related been increasing its brand value since 1999 reputational risk of not doing so. Brand valueto value: the more a company proves to the mainly due to its large investments in safety is a way to summarize all of this.financial markets and other audiences that and renewable energy. However, its reputa-it is a sustainable business, the lower the risk tion suffered after an accident at a Texas City Most leading companies already understandassociated with that company (and the lower refinery in 2005, with shares dropping almost how sustainability issues can affect theirthe rate used to discount future earnings). 10% in a month. The company’s reputation businesses. The challenge is to embed a real has recovered, but the incident demonstrated sustainable behavior in everything a companySimilarly, brand value is today’s value of the the strong correlation between sustainable does; not only to attract new customers,earnings a particular brand will generate in the actions and value creation. but to help define future behavior and shapefuture. Brand risk is a function of company’s the market. In other words, to be a leader.risk, adjusted by the strength of particular This correlation is also seen in the Best Global “The transformational challenge is to makebrands. This depends on many factors, Brands 2008 ranking. Financial services “green” a part of the DNA of the enterprise,including the investments it receives (quantity institutions included in the 2007 and 2008 just the way companies had to make global-and quality), brand image (brand’s perceived studies lost a total of US$10 billion in brand ization and digital technology a part of nearlypersonality and reputation) and customer value. This reflects not only the financial every business consideration,” says Andrewfranchise (relationship with customers). impact from the US credit crunch but also L. Shapiro, founder and CEO of GreenOrder, a the reputational damage caused by breach business strategy and management consult-Coca-Cola is the most valuable brand in the of trust between these companies and the ing firm that specializes in the field.world. It consistently invests in its main brand investment community.and develops an emotional connection with Brands can be the engine towards a moreconsumers. So why did its brand value decline “The changing landscape of liability,” a report sustainable world. They should be ahead ofUS$5.1 billion between 2003 and 2007? published by the consultancy SustainAbility, the market and create products and services suggests a rapid convergence between com- that will be relevant to consumers while,Coca-Cola’s decline is due to the fact that it panies’ risk management and sustainable at the same time, helping them to live in ais seen as one of the bad guys by many orga- development programs, as technical compli- more sustainable manner. This will create anizations. Increasing health concerns have ance “may no longer be an adequate defense positive influence on the environment andbeen affecting brand earnings in developed against social and environment activists in the communities, as well as generate dividends tomarkets, despite its light, diet and zero ver- court of public opinion and even in the courts shareholders through growing demand.sions. Also, its image and reputation have of law.” This leads to a much more rigorous A sustainable brand will also enhance a com-been inconsistent around the world. On the approach to risk assessment or, at best, an pany’s reputation and secure future earningsupside, Coca-Cola has been investing in many opportunity to develop winning strategies through stakeholder loyalty and advocacy,initiatives, such as campaigns to improve from multiple stakeholders’ points of view – thus increasing brand value.community access to safe drinking water and an opportunity that can help secure futureadequate sanitation in India. Is this only a earnings and the sustainability of the business As the saying goes, “today’s best practice isform of CSR to boost the company’s reputa- in the long term. the standard of tomorrow.” Hopefully, today’stion after protests were held in the area? No. successful sustainability strategies will soon become standard, promoting long-term ben- efits for businesses and generations to come.14 Best Global Brands 2008 Best Global Brands 2008 15
  • 10. The Red Thread: The subject of brand value has been well consumption, lubricant temperatures, brak- documented since Interbrand first developed ing heat and even driver heart rate. When the concept in the early 1980s. Today, our the competition is fierce and the differencecreating and managing competitors, commentators in the press, the between winning and losing can be measured financial community, and the industry at large in fractions of a second, every detail must be have much to say about the topic. At heart, tuned to win. it’s a simple idea. If a brand plays a role inbrand value choice and a consumer must choose between Imagine how powerful it would be if you under- different competitive products or services in a stood how your brand creates value to the marketplace, then the brand must contribute same degree of detail. Are you as intimate withby Jez Frampton to earnings and profit and hence, must be the performance of your brand as Formula 1 quantifiable and valuable to the owner. In racing teams are with the performance of their order to really understand the creation of cars? Are you as prepared to battle the com- brand value, we need to understand what petition? Do you quantitatively understand factors drive demand, what role the brand exactly how your brand generates value? plays across each of those factors, and how strong the brand is versus its competitors. By using brand valuation as a diagnostic tool, we can now understand the precise But the Red Thread is about more than a value- economic benefits that brand has on every generating brand. It’s about understanding aspect of our businesses. It is now possible how that value is generated. It’s about creating, not only to quantify a brand’s contribution in managing, and measuring brand value across the decision-making process and to measure every aspect of the business. its competitive strength in acquiring and retaining customers, but to predict the value To put this into context, let’s consider an anal- of an innovation and understand at which ogy. Capable of accelerating from zero to 100 touchpoint our brand investment generates “ ll of the ropes of the royal fleet, A miles per hour and back to zero in under four the most demand. The Red Thread helps us seconds, a Formula 1 racing car represents the see where in the acquisition process we lose from the strongest to the thinnest, very edge of technology in the motor industry. potential customers to our competitors, Every car is fine-tuned for each individual race, which brand attributes are relevant at each are braided so that a red thread travels and every surface and element of the car can step in the customer journey, and far more. be altered to create the best aerodynamics, Most importantly, it helps us determine through all of them, and you cannot braking pressure, tire pressure, gear ratios, exactly what it is that must be changed, suspension and more. It is not the car but each and how, in order to maximize value. remove it without untying all of them. individual component of that car that must contribute to the vehicle’s ultimate success. Even the smallest fragment will stillBiography: What’s more, those components can be quan-Jez Frampton, Interbrand’s Group allow you to recognize that the rope titatively measured, giving the racing teamChief Executive, is responsible for the information necessary to optimize themanaging the firm’s worldwide belongs to the crown.” car’s performance in real time. Data streamsinterests and enhancing the strategic from car to trackside with detail about fueland creative offering. Jez’s experience From Goethe’s Elective Affinities (1809)has provided him the opportunityto work with different clientsacross multiple sectors, including The Red Thread is a concept woven smallest fragment to the whole, is powerfulpremier brands like Budweiser, through many cultures. According to Greek and captivating. In our world, this is aIBM and Toyota. mythology, Theseus found his way through wonderfully rich and simple metaphor for the Minotaur’s labyrinth by following brand value. Ariadne’s red thread, and a famous Chinese proverb describes an invisible red thread that The brands at the very top of our Best Global connects us to all of the people we’ll ever Brands ranking understand the reality behind meet. The Russians call it krasnaia nit, and this metaphor. For them, the notion of value the French le fil rouge. In German, roter faden – runs like a red thread through their brands, literally “red thread”  – is used to describe the driving demand throughout every aspect of central or recurrent theme of a larger work. their business. They know that their brands must function as assets, not as expenses, The idea of a bright, illuminating thread and that even the greatest brand idea is only that runs through everything, from the as powerful as its ability to generate value.16 Best Global Brands 2008 Best Global Brands 2008 17
  • 11. Brand building isn’t aseparate exercise fromthe day-to-day runningof the business. It isintegral to it.Consider our work for BMW. Everything in Or take Interbrand, an example that is near But to get there, we need to change the That’s a powerful shift in thinking in a rela-that organization is coerced and corralled and dear to me. For us, the notion of brand fundamental way that we think about our tively short period of time. Not everyone isinto a single unifying vision, all united by value itself is our Red Thread. We are the businesses. Most companies spend massive there yet, but the leaders are. The globalone value-generating idea. For BMW, this consultancy that sees brands as economic amounts of time and money optimizing their corporations at the top of the Fortune 500 orred thread is the commitment to please assets, as drivers of demand, and creators of supply chains, but few are willing to make an our own Best Global Brands ranking see thecustomers with the very best in automotive wealth. We believe that behind every great adequate investment in the demand side of world this way, and it’s only a matter of timeengineering. This manifests itself in a brand is a great idea that generates value. their businesses. This is most likely because before it becomes common practice.few obvious ways, such as its tagline and Our daily mission is to understand how that the supply side is physical and real. It’s easy tomessaging, but also guides management value is created across our clients’ businesses, understand the return on tangible investments. Some audiences, despite accepting the notiondecisions on everything from showroom providing strategic advice and creative The demand side of our businesses, though, is of a red thread, might believe that the currentplans to fabric choices, and ensures that the solutions that have a common purpose and often less clear. It requires courage to invest economic climate makes this the wrong timecompany’s outer voice (what it says it’s going foundation in generating demand. Whether in intangible assets. Thankfully, the ability to invest in measuring and managing brandto do) reflects its inner voice (what it actually we are producing the corporate identities that to measure these intangible assets through value. But this could be a costly mistake. Thisdoes). And, as 93% of employees believe that will fuel the iconic images of the 21st century precise analytics should help us refocus our is the ideal time to optimize budgets to ensureBMW Group is a great place to work, it’s no or crafting brand architectures to optimize attention on creating demand. that every dollar spent is driving demand andwonder this translates to a brand worth the way a major global enterprise manages its creating value. Every boardroom is subjectUS$23 billion and the highest brand value per assets, “value” is quite simply the lifeblood at We must also change the way we think about to greater degrees of scrutiny over the use ofautomobile sold. the very heart of our business, the common brands themselves. Ten years ago, brands shareholder funds and now, more than ever, theme that unites us and makes us stand out were seen as an extension of marketing: a we need to know where we’re likely to win, andThis is true of many of the world’s most from the crowd. kind of halo around a business that made it where we’re likely to lose.valuable brands. Look at Apple, whose emotionally appealing. Marketing depart-promise of a different experience through I believe that the concepts of brand and ments spent time creating “brand ads” withease of use creates a red thread that touches value are inseparable. To be truly effective, their agencies, an exercise seen as moreall aspects of their business, including brands must be built around the thing that strategic and separated from the day-to-dayproduct innovation and interface design. At generates the most value for your business. process of selling products, announcing pro-Disney, the commitment to create magicalexperiences produces undeniable value, A brand conceived in this fashion will create demand, in turn improving the monetary motions, or launching campaigns. All businesses that aspireforming a red thread that affects everything value of the business. Managed properly, Today, the world has come to realize that to build greater valuefrom the appearance and behavior of its “cast this ever-growing cycle of value creation will brands are an extension of business strategy.members” to its television programming. For define the very essence of the 21st century’s Now understood to define the essence of should consider their redNike, the idea of performance runs through eminent brands. differentiation and to serve as primary and thread. Without one, yourthe business from “Just do it” to how the integral drivers of demand, brands have asorganization gets it done. much to do with product, service, retail, pack- brand may not be aging, culture, web, pricing, channels, and environments, as they have to do with mar- generating real value. keting and communications.18 Best Global Brands 2008 Best Global Brands 2008 19
  • 12. Taking action: acting like observations and develop insights based on drives purchases – what really happens when The emotional connections of a brand can the needs and attitudes of your consumers. consumers leave focus groups and transform often be a key source of differentiation when Your market segments need to have enough themselves into real shoppers – the stronger rational brand attributes are broadly similar.a global brand leader difference to make them manageable and the foundations are for the brand. distinct from one another. The segregation All of the brand’s purchase drivers will offer of markets must always be based on objec- different opportunities to maximize your tive market data rather than popular opinion, brand’s effect. We need to consider purchase 03 Pinpoint the role yourby Graham Hales hearsay, or perceived wisdom. The relentless drivers within a context of the role that the search for new ways to consider your market brand plays in driving a brand can potentially play. is a great attribute in the quest for building a valuable brand. consumer to purchase It is not uncommon to find that one segment 04 Understand of your market may deliver more business the strengths and volume and another more business value or profit. Consequently, some segments will be Now, let’s understand the role your brand weaknesses of your Biography: Graham Hales is Group Chief Communications Officer People often look at the Best Global Brands study and say, “Well that’s fine if you’re more attractive to your business than others plays in affecting purchase drivers. brand in driving of Interbrand. His work consulting Coca-Cola, but my business just isn’t like as they hold more potential for profit. In the purchases for some of the firm’s most high- end, segmentation enables you to objectively We can bring this to life by comparing three that.” It’s a fair response. But whether your profile clients – and the Interbrand view whom your brand targets. possible purchase drivers that influence your brand is iconic or unheard of, consumer or brand – has taken him across a business-to-business, big or small, in a devel- consumers: location, price, and empathy diverse range of business agendas, Brands need to have a focal point. It’s fine for a (i.e., the brand feels like it connects with me oped market or a developing market, there geographies and cultures. brand to ripple out beyond this key focus, but and speaks my language). is always something to learn from the Best ubiquitous brands that aim to be for everyone Understanding the purchase drivers then Global Brands study. often struggle to be for anyone. Location is a classic driver for many brands, leads to a logical examination of how well a as it governs our access to products. While brand performs against them. This examina- A brand that is managed for growth feeds we can perceive a brand as having broad tion should stem from a market-driven and the actions and ambitions of the organiza- coverage, if it isn’t actually accessible or con- competitive basis, i.e., where and why do our tion. Brands come in all shapes and sizes, but 02 Know why your venient to us, it is a struggle to purchase. customers think we succeed or fail and what the principles at the heart of creating value for brands hold fundamentally true. Perhaps customers purchase Consequently, location can be a key purchase are our strengths and weaknesses versus our driver with a limited role of brand. competitors’ strengths and weaknesses. the most important principle is the need to limit the preconceptions and assumed Next is price. Price has a clear rational and These insights need to be taken into account knowledge of a brand. Consumers, and the factual component, as we can compare and when considering a business’s potential future societies they live in, never stop changing. contrast prices. But less rational and factual delivery, as well as its existing delivery of the As a consequence, organizations can never This has to be a preliminary step in any is the idea that price is rooted solely in a brand. A change to the existing delivery could stop learning. Any program that aims to build program that aims to deliver a valuable brand belief. We might believe that some brands are provide the key to increased customer satis- long-term value for a brand should know this. to an organization. What is driving purchases cheaper than other brands – or, although a faction or commitment. The nature of the steps necessary to build long- within your overall market? What drives brand may be more expensive than another loyalty? What creates customer satisfaction? brand, it may offer an additional perceived Your brand’s agenda is now beginning to term value for a brand is cyclical. Each step These answers are all linked. value. This level of complexity gives the brand unfold. We know what drives purchase. feeds on the next and yet they can be regarded a broader role as it starts to communicate We understand what role a brand plays within as distinct from one another to form a linear Loyalty and commitment to brands are a relative value to its customers. this decision process. We are aware of our process while still being intrinsically linked. key source of value. Pull back from the big relative competitive strengths and weak- picture and examine the details. What’s really Now empathy. One brand may feel like it is nesses within the purchase drivers. So let’s start from a logical beginning. making the difference between consumers’ meant for us while another fails to engage us We can now move on to the next step. selection of one brand versus another? in an emotional connection. This is clearly an The deeper your knowledge is of what truly area where the role of the brand is significant. 01 Know your customers It is not uncommon to find that one segment of your Any branding exercise should be driven by robust data. There’s no set guideline for how much data you need but you need enough to market may deliver more know your markets. business volume and another Ordinarily this involves breaking your market down into segments that enable you to make more business value or profit.20 Best Global Brands 2008 Best Global Brands 2008 21
  • 13. It is essential that the brand brand functions, or could potentially function, and cynicism. So it is essential that the brand select from so they do the “fun” bit. Such sys- against the purchase drivers. We know what purpose is as meaningful, evident, and tan- tems allow people to use their creativity so our people think. This analysis should focus gible inside the organization as it is outside. that they are engaged – but within a prescrip-purpose is as meaningful, evident your debate with the brand’s stakeholders, as it is grounded in market-driven, commercially The clarity of the brand purpose is sacrosanct. tive environment that promotes consistency.and tangible inside the organization focused, business insight. We now start to embark on a more creative Internally, you’ll want to focus on how you communicate with each other, what HR systems you use to recruit, how you commu- Just as critical to brand consistency is main- taining the momentum behind the internal workings of the brand. By now you’re in theas it is outside the organization. process: building a clear purpose for the brand. A brand’s purpose can be articulated through nicate the brand through your operations, and how you appraise and reward people. You’ll thick of a change program that needs to evolve from being dismissed as an “initiative” many alternative models. In truth, it doesn’t also want to focus on external behaviors, CRM to being reinforced as “the way things are matter which model you use so long as the programs, and customer service models. You done around here.” The best way to handle purpose is clear and your people get it. We have need to use the brand to create non-negotia- this is to re-engineer your internal systems so four filters that we put such ideas through. ble performance standards that, in time, will that the ambitions and intentions of the brand become the DNA of your brand culture. You’ll are true to your operations and ways of doing Firstly, is it credible – is the idea based on an need everyone across the organization to business. In time, this makes the brand’s stra- in the marketplace. In essence, it’s everyone acknowledged truth that the organization consider their job function as filtered through tegic goals and desired reputation a reality. that’s engaged in your company – from the 05 Create the business inside out. can deliver against? the brand and how they can tangibly deliver case Secondly, is it relevant – is the idea based upon the brand through their work. This is just as important for finance people as for sales The external world is ready for your message only after your brand undergoes internal Leadership teams can be nervous about includ- something that drives purchases, something teams. The brand will deliver your reputation. reforms. If you broadcast your new brand ing their people in the process. This sense of where the role of brand is strong and the before your employees can deliver it, you will insecurity is understandable but invalid. It is brand can deliver? Now let’s consider how we build the brand be in trouble as your brand won’t be able to important to understand that excluding your externally. External brand building begins meet the consumer’s expectations. employees from the dialogue will often lead to Thirdly, is the purpose distinct – is the brand with a brand strategy that becomes evi- The insights that the previous four steps have disengagement in the process. If you want peo- going to be able to achieve territory that it can dent in all communications. This may sound delivered (combined with an appropriate ple committed, they’ll need to feel respected. own and that allows it to stand out from restrictive but it shouldn’t be. The right brand amount of financial analysis) form the key They’ll need to see the business advantage the crowd? strategy should be a guide – it should act as a 10 Recognize it’s a never- components of a brand valuation exercise. Having undertaken such an analysis, we can that the brand can deliver, and they’ll need to understand it, ideally, in economic terms. launch pad, not as a straightjacket. ending journey Finally, does the idea stretch the brand – focus on the business end of things and find They’ll need to feel they have an opinion that does it feel like it will work for the business out what the brand is worth. connects to the direction of the brand. into the future? 09 Consistency, This defines the economic value (i.e. the brand’s worth), that, in its own right, allows Get your employees involved in helping to articulate the brand’s purpose. They’ll tell you The brand’s purpose is fundamentally its idea consistency, the brand to be recognized and developed like what’s important to them. This will help you and we need to lift this idea beyond strategic words so it communicates more fully. The brand consistency Sorry, I know we live in a world where we like to tick boxes and cross our achievements off any other asset. You should also be able to articulate a purpose for your brand that your now requires an appropriate identity system lists. But in this case, we conclude only by see the brand’s potential value, (i.e., what it employees are connected to and will conse- to ensure that every touchpoint of the brand is going back to the start. could be worth) if some changes were made to quently support. used to reinforce and convey the purpose. sharpen its desirability in the market and drive Can BMW turn around and say it has ever been demand still further. All brands should represent what the people able to provide “the ultimate driving pleasure?” behind the brand want to achieve. There’s a perception that brands should be No, because what it is capable of doing from 08 Be relentless in policed with a militaristic verve. It is tempting one year to the next will be dependent upon 07 Build a clear purpose following your but ultimately flawed. Consistency is key but so are the systems you put in place to make the technologies available to it and the evolu- for the brand 07 Build a clear purpose brand purpose consistency easy. tion of what “the ultimate driving pleasure” means to its segments as its markets develop. for the brand Today’s sophisticated digital asset manage­ The best brands are constantly looking for ment systems are certainly capable of new ways to more fully reflect their strategy. eradicating inconsistency. And while getting They do this by listening – listening to custom- the right system adopted can feel like an ardu- ers, listening to colleagues, listening to their If you are looking for your brand to be Like people, organizations may have an outer ous task, the easiest way is to create a system competitors and listening to their markets. successful, it will have to be supported and We now have the insights upon which the voice (what we say and do) and inner voice that feels comfortable and rewarding to use. They listen and adjust and respond to chang- well represented by the people who deliver brand strategy can be created. We know (what we really think). However, the broader ing needs. Every time you listen, you learn. the brand to your stakeholders. And I don’t our market. We know why they purchase. the gap between these two voices, the more Brand assets should be held online. Inter­ just mean front-line sales people. It’s every- We know the role the brand plays within the frustrating the organization is to work in or do activity can do the “dull” bit by undertaking due So we review the entire process and consider one that will touch and influence your brand purchase drivers. We know how well our business with. Any form of frustration – inter- diligence and providing policing. Meanwhile, what changes have taken place and ask nal or external – is highly toxic for a brand. It image libraries can hold a selection of ourselves the simple question, “What more pollutes. It creates apathy, disengagement, approved, on-brand images that people can can we do?”22 Best Global Brands 2008 Best Global Brands 2008 23
  • 14. Interbrand’s method �� %for valuing the 2008Best Global Brands �� %Criteria for Methodology ��consideration %Using our database of global brands, popu- The Interbrand method for valuing brands Role of Brand Analysislated with critical information over the past 20 is a proven, straightforward, and profound A measure of how the brand influences ��years of valuing brands and more than 30 years formula that examines brands through the customer demand at the point of purchase is %of consulting with organizations, Interbrand lens of financial strength, importance in applied to the economic earnings to arrive atformed an initial consideration set. All brands driving consumer selection, and the likelihood Branded Earnings.were then subject to the following criteria that of ongoing branded revenue. Our methodnarrowed candidates significantly: evaluates brands much like analysts would For this study, industry benchmark analysis �� value any other asset: on the basis of how for the role the brand plays in driving01 There must be substantial publicly much they’re likely to earn in the future. customer demand is derived from Interbrand’s %available financial data There are three core components to our database of more than 5,000 prior valuations02 The brand must have at least one-third proprietary method: conducted over the course of 20 years. In-house market research is used to establish Top risers and fallersof revenues outside of its country-of-origin Financial Analysis individual brand scores against our industry Our approach to valuation starts by fore­ benchmarks.03 The brand must be a market-facing brand casting the current and future revenue specifically attributable to the branded �� Brand Strength Score04 The Economic Value Added (EVA) must products. We subtract operating costs from This is a benchmark of the brand’s ability to %be positive revenue to calculate branded operating secure ongoing customer demand (loyalty, profit. We then apply a charge to the branded repurchase and retention) and thus sustain05 The brand must not have a purely B2B profit for capital employed. This gives us future earnings, translating branded earningssingle audience with no wider public profile economic earnings. into net present value. This assessment is a ��and awareness structured way of determining the specific All financial analysis is based on publicly risk to the strength of the brand. We compare %These criteria exclude brands such as Mars, available company information. Interbrand the brand against common factors of brandwhich is privately held, or Walmart, which culls from a range of analysts’ reports to build strength, such as: market position, customeris not sufficiently global (it does business in a consensus estimate for financial reporting. franchise, image, and support.some international markets but not under the ��Walmart brand). Financial Analysis Brand Value Calculation % Forecasted current and future revenue specifically attributable to the brand Role of Brand �� Analysis A measure of how the brand influences customer % demand at the point of Role of purchase Brand Analysis Brand Strength A benchmark of the brand’s ability to secure ongoing �� customer demand (loyalty, % repurchase, retention). Year � Year � Year � Year � Year � Brand Strength Analysis BRAND Brand Revenues = Discount Rate VALUE Economic Earnings Brand Earnings24 Best Global Brands 2008 Best Global Brands 2008 25
  • 15. Best Global Brands 20081 66,667 $m 4 53,086 $m 7 31,261 $m 9 29,251 $m INTEL. Having just announced its most profit- DISNEY. The magic has stalled somewhat forCOCA-COLA. Coca-Cola has once again GE. Few companies are in as strong a able quarter ever, Intel is reaping the benefits Disney, with the brand taking a bit of a backretained its status as the world’s most valuable position to push the green agenda as GE. Its of continued innovation and a partnership seat to those it partners, and its core targetbrand. Proving that it still has a few tricks up Ecomagination program has been incredibly with Apple that has seen it get inside some of becoming more distant from the Disneyits sleeve, current trends toward healthier successful in raising sustainability awareness the most desirable computers of the moment. brand as a result. Still, the phenomenon ofdiets have seen Coke shift focus to better-for- and has reflected positively on the brand. Going forward the brand will shift half of its High School Musical and its spin-offs is keep-you drinks in the last year, with the launch of As GE continues to expand internationally it advertising budget to the Internet channel to ing the tills singing around the world, and it’sproducts like the vitamin and mineral enriched has a unique opportunity to shape the way better target technology-savvy consumers also bearing rich fruit from its partnershipDiet Coke Plus and the continued push behind that businesses all over the world approach who are spending more and more time online. with Pixar. As consumers upgrade to high-Coke Zero, which is now available in more sustainability and in doing so, can cement its definition TV, Disney should see strong salesthan 80 countries. Coke has also worked green credentials. of its back-catalogue, offsetting the declinehard to engage consumers, with innovativeonline campaigns such as “Design Your Own” McDonald’s in profitability of theatrical releases. To really advance the brand, it needs to make big has neverthat invited people to design their own Coke inroads with emerging markets, adapting itscontainers and share them with the world. product to win over a whole new generation of families from different cultures. been a brand2 59,031 $m 5 35,942 $m 6 34,050 $m to sit still.IBM. Big Blue’s transformation from PC NOKIA. Despite increased competition from TOYOTA. Toyota continues to benefit from 8 10vendor to solutions provider continues. the likes of Apple, Nokia has solidified its posi- the “green halo effect” of the Prius, which isRecognizing that we live in an increasingly tion as the #1 mobile phone brand, increasing still widely talked about in the media. Like its 31,049 $m 25,590 $mconnected world, IBM has positioned itself its global market share to 38%. The iPhone sister brand Lexus, Toyota has managed toas the partner of choice for businesses that and the Blackberry have certainly raised control the perception of its national heritageoperate across borders. This position has consumer expectations of what devices can where helpful, but also ply its trade as a truly McDONALD’S. McDonald’s has never been GOOGLE. Google is the undisputed king 2008 25,590 $mbeen solidified through a number of smart do, but Nokia has not stood still. It recently global brand. a brand to sit still and its ability to adapt to of the internet world and the last year has 43%strategic acquisitions in recent years. Lenovo’s launched the E61 in direct response to the consumer needs is almost as fast as its food. seen it gain even more ground against rivals. 17,837 $m Toyota continues 2007 announcement to remove the IBM brand from Blackberry and is currently developing the McDonald’s has been addressing the healthy Innovations like Google Mobile, Google Docs | 0 | 5 | 10 | 15 | 20 25 | 30 |the ThinkPad range earlier than planned will “Nokia Tube”, an eagerly awaited touch screen & Spreadsheets and Google Book Search to benefit from the eating issues that have dogged it in the past. Brand Value $mcreate more distance between the IBM name device that will see it compete head-to-head Its french fries are now trans-fat free, and extend the brand’s reach and ubiquity and Brand Googleand PCs in customers’ minds, which in turn will with the iPhone. It’s this spirit of constantclarify what the new IBM is really all about. innovation, coupled with an innate ability to “green halo effect” its offering of healthier meal options keeps increasing. Looking ahead, the chain aims make it an increasingly important part of our everyday lives. Yet these projects wouldn’t Country of origin Sector US Internet Services segment its customers (be it on an attitudinal, geographical or demographic basis) that’s of the Prius. to become the #1 destination for chicken and to significantly boost its coffee creden- be possible without its core business – 99% of its revenues come from advertising on its Brand Value ($m) 25,590 Rank 2007 203 added to Nokia’s brand value this year. tials by introducing 14,000 coffee bars at its search result pages. Google’s meteoric rise 59,007 $m US outlets. With specialist baristas serving from small start-up to corporate behemoth Rank 2008 10 Nokia’s spirit of constant cappuccinos and lattes at a time when con- sumers are less willing to fork out for a pricey is not without its critics. As it becomes more powerful, the brand is forced to constantly Google isMICROSOFT. Despite maintaining its position Starbucks, it’s a shrewd move. Further afield, tiptoe around the ever changing landscape of increasingly testedas one of the world’s biggest brands, Microsofthas had a slightly rocky year. The new innovation, coupled with an aggressive expansion in emerging markets will see 120 restaurants open in China and an privacy and copyright laws. Google is increas- ingly tested by its unofficial corporate motto: by its unofficialoperating system, Vista, was poorly received,not least of all by Intel, which refused to innate ability to segment innovative series of smaller kiosks sprout up in India. “Don’t be evil.” corporate motto:install it on its machines due to compatibility “Don’t be evil.”issues. The failed takeover of Yahoo! and BillGates’ decreasing role piled further pressure its customers, has added to itson a brand already struggling to articulatehow its offering fits together. Looking ahead,the company is hoping a diversification brand value this yearfrom software into the broader online andentertainment arenas, coupled with aUS$300 million advertising campaign starringJerry Seinfeld, will breathe new life into thebrand and pave the way for a brighter future.26 Best Global Brands 2008 Best Global Brands 2008 27
  • 16. Cisco has invested11 25,577 $m 13 23,298 $m 15 21,940 $m heavily in researching 19 20,174 $m the needs of businessesMERCEDES-BENZ. The Mercedes-Benz E320 BMW. BMW reacted to the increased demand AMERICAN EXPRESS. The changing market and consumers and the CITI. It’s no surprise that the US credit crunch 2008 20,174 $mBLUETEC diesel was voted 2007 World GreenCar by automotive journalists from 22 for cleaner cars that are cheaper to run by investing in fuel-efficient engines like its conditions in the industry have helped AmEx. While the competition are busy focusing investment is already has left a dent in the brand value of most financial services brands, but Citi is one of 2007 23,443 $m 14%co­ ntries, endorsing the company’s environ­ u EfficientDynamics system. Currently, 40% of on internal business issues, AmEx is free to paying dividends. the worst affected. Negative news continues | 0 | 5 | 10 | 15 | 20 | 25 30 |mental credentials. It has also benefited from all cars sold have diesel engines. The brand expand market leadership and reorganize to plague the brand more than a year after Brand Value $mincreased demand for luxury cars in emerging is presenting efficiency as its future, with its corporate structure to better service the credit crisis began. It has been one of Brand Citimarkets. The brand recently launched a new the proviso that driving pleasure won’t be customers. It increased its marketing and the more high-profile sufferers, being forced Country of origin USvisual identity and slogan (“The Star always compromised. Increased demand for luxury card-member spend by 20% from the year to announce eye-watering losses and cut Sector Financial Servicesshines from above”). Mercedes appear to be in emerging markets and well-built cars that before, and launched new initiatives like the thousands of jobs. New CEO, Vikram Pandit, Brand Value ($m) 20,174striking a powerful balance between tradition hold their value has played into BMW’s hands. Plum card in the US. The brand furthered its has taken bold steps to refocus the business Rank 2007 11and forward thinking. Look out for an emission-free small car in the aspirational status by investing in big celebrity on its core areas, which has resulted in the Rank 2008 19 near future. advertising campaigns in the US and by form- closure of many unprofitable branches and ing some premium co-brand partnerships in the sell-off of some global operations. Europe, such as with Harrods and BMW. 17 21,306 $m12 23,509 $m Louis Vuitton continues CISCO. Cisco has invested heavily in under-HEWLETT-PACKARD. By putting theconsumer at the heart of product design, to grow in all regions and standing what businesses and consumers need and the investment is starting to pay dividends, taking the brand from strength to behave quite unlike most strength. The business is positioning itselfHP has received favorable coverage in all the well for the Web 2.0 revolution and is devel-right places. Never one to go down without oping tools to enable businesses to createa fight, the brand has made a concerted other luxury brands. stronger bonds with their customers. Theeffort to boost the design credentials of its acquisition of Pure Networks in July 2008 willproducts, with a single design philosophy also help to strengthen Cisco’s networkingacross the board. By creating a unified look credentials on the software side.and feel, along with consistent and intuitiveinteractivity, HP is creating a distinctivepresence in the marketplace that will help itcompete with its rivals. 14 22,069 $m 16 21,602 $m 18 21,300 $m 20 19,079 $m 21 17,689 $m GILLETTE. Gillette has maintained its high- LOUIS VUITTON. Louis Vuitton continues MARLBORO. With its hands becoming HONDA. Honda has a genuine stance on SAMSUNG. Samsung has recently overtaken profile with the US sponsorship of Major to grow in all regions and behave quite unlike increasingly tied in western countries in the sustainability, having introduced environ- Sony as the world’s biggest producer of League Baseball and the Gillette Champions most other luxury brands. For the first time, way it can market its products, Marlboro is mentally friendly cars early on. Its F1 team is, televisions. Its philosophy of bringing people Program, a strong promotional initiative unit- it advertised on television with a travel- focusing on emerging markets to increase somewhat paradoxically, a showcase for its the latest technology at a fair price has quickly ing three major sporting heroes. Continued themed 90-second spot that was shot in its market share and position itself as leader corporate citizenship program, Earthdreams. made it a firm consumer favorite, while its expansion of the Fusion range into new France, Spain, India, and Japan. An aggres- to stem the growth of rivals. The brand will But it has failed to leverage these credentials phones are now second only to Nokia. Looking markets during 2007 drove sales and helped sive expansion plan has seen 22 new stores always be plagued by health concerns, but as successfully as Toyota has in the media. ahead, the brand realizes the importance of solidify the leadership position of Gillette in open, including three in new markets, and the successful introduction of Marlboro Suns, Inventive marketing, such as the triumphant having stronger representation at the point the razors and blades market globally. New the brand has enjoyed significant growth in a smokeless tobacco product, and Marlboro live parachute jump advertising, has con- of sale, so it will open more Samsung retail lines have helped it consolidate its positioning its ready-to-wear footwear, watches, and Filter Plus, featuring extended filters, shows tributed to the goodwill people feel towards outlets to deliver the full brand experience. as “the best for men,” while the Venus razor accessories collections. it’s working to reduce the negative health the brand. has helped it gain big in the female side of the impacts of its range. Ultimately, the brand business, too. may well face decline as a more connected world means that emerging markets may change their cultural views on the effects of smoking quicker than expected.28 Best Global Brands 2008 Best Global Brands 2008 29
  • 17. Madonna, 22 13,840 $m NEW Kylie Minogue 25 13,583 $m 27 13,143 $m 30 12,621 $m H&M. Posting strong sales in difficult conditions, the inexpensive, trend-conscious 2008 13,840 $m and Roberto SONY. Despite fierce global competition in the category, Sony has had a great year, HSBC. Despite losing billions in the US market and being one of the fist major banks to suffer UPS. Responding to the downturn in the US economy, UPS expanded its online, supply Swedish brand continues to grow into an industry leader. It is aggressively pursuing 2007 | 0 | 5 | 10 | 15 Cavalli are thanks to the continued success of flagship brands, including Bravia, Vaio and Cyber-Shot, the effects of the US sub-prime lending crisis, HSBC has seen strong international growth, chain, and freight services. International markets are playing an increased role, with geographic expansion, specifically targeting expanding while the lower price of the PS3 has finally with a number of acquisitions under its belt UPS focusing on building strategic assets Brand Value $m China, Russia, the Middle East, and Egypt. Brand H&M convinced consumers to bite. Sony also won and an increasing presence in Asia helping to in China and India. The most profitable It has tapped into celebrity culture with the fan base Country of origin Sweden the Blu-Ray versus HD DVD war, standing stabilize the brand. company in its sector, it is continuing to gain collections from Madonna, Kylie Minogue Sector Apparel the brand in good stead for a future share ground through aggressive marketing such as and Roberto Cavalli expanding the fan base Brand Value ($m) 13,840 of the high-definition market. Sony clearly sponsorship of the Beijing Olympics and some of the brand and legitimizing its status on a world stage. Innovative channels for Rank 2007 Rank 2008 - 22 of H&M. understands the opportunities afforded by increased technology convergence. It unveiled 28 13,055 $m major US ad campaigns. connecting with the consumer, such as a strategy to deliver movie, TV and gaming 31 MySpace and the Sims2 computer game, content through the PS3 and its Bravia TVs, increase the frequency and depth of while in the process, making the most of its NESCAFÉ. Nescafé has benefitted from the 12,228 $m engagement. vast entertainment assets in Sony BMG Music increase in demand for premium coffees, with and Sony Pictures. By 2011, it plans to make its “Connoisseur Coffee” range and café style 90% of its products network enabled. coffees performing particularly well. It has SAP. SAP has continued to broaden its offering taken on the role of educating the public on through key acquisitions, most notably that of the health benefits of coffee and is beginning Business Objects. The “Best Run Businesses” 26 13,249 $m to engage and expand its customer base with online media. campaign has been successful in increasing the familiarity of the brand to different audiences, including small- and medium-sized businesses, which remain a strategic focus. PEPSI. Pepsi is fighting hard. Its online activ- ity, content, and promotions are broad and interactive, but focused on a young market 29 12,672 $m This effort helps position SAP as more than just a software brand and paves the way for diversification further down the line. with an emphasis on sports promotions and pop music. Like Coke, it has given consum- NIKE. Despite increased competition from 32 ers a chance to personalize their own cans. Adidas, Nike remains the world’s #1 sports It has even encroached on sacred territory by brand. Smart partnerships are never far 11,695 $m coloring its cans red in support of “Team China” away from Nike. It teamed up with Apple to23 13,831 $m 24 13,724 $m in the year leading up to the 2008 Olympic Games. Pepsi’s environmental stance is also launch an innovative MP3 player/sneaker for runners and it’s making further inroads with DELL. Despite sustained growth, Dell’s increasingly visible. It launched the “Have We emerging markets – helped, no doubt, by its direct sales strategy has been suffering. The Met Before” campaign, in which it printed sponsorship of China in the Beijing Olympics. increasing importance of design and aestheticORACLE. Through strategic acquisitions, APPLE. Can anything slow the ascent of 2008 13,724 $m 24% messages and facts on cans to educate cus- Along with the successful launch of women’s appeal in personal computing means there’sincluding that of Bridgestream Inc, Moniforce Apple? Its ability to identify new customer tomers on the benefits of recycling and, in innerware, Nike has been expanding its direct- been a greater shift to in-store purchase,and, most significantly, BEA Systems, Oracle needs and deliver products of beautiful 2007 11,037 $m March 2008, it opened the first 100% green to-consumer business, which it believes will where customers can see, feel and try thingshas established itself as a leader in middle- simplicity and desirability continue to put | | | | 0 5 10 15 sports arena in the US. The recent, restricted continue to grow. Also online, the brand out before buying. This has changed theware (software that connects components it in a league of its own. The latest iPods, Brand Value $m launch of Pepsi Raw in the UK is the first new launched interactive consumer concepts like way Dell sells computers. In January 2008, itacross networks). Its extended reach and iPhone and MacBook Air strike the perfect Brand Apple product in more than ten years. It’s made Nike ID and Nike + , creating an online buzz closed 140 retail kiosks that were, in effect,offering bring customers an all-in-one service. balance between coolness and mass appeal, Country of origin US from all-natural ingredients and contains no about the brand and new ways for fans to posh PR vehicles that didn’t sell products. To while the in-store Apple Genius bars shift Sector Consumer Electronics artificial preservatives, colors, flavorings or interact with it. get PCs in front of people, Dell has partnered consumer expectations of what after sales Brand Value ($m) 13,724 sweeteners. It’s a compelling but tentative big retail brands like Walmart in the US, Bic service should be. Add to that the improved Rank 2007 33 step into the healthier-drinks market. Camera in Japan, and Carphone Warehouse in company stance on sustainability and Rank 2008 24 the UK, which has offered great exposure, but Mr. Jobs and co. really do seem to be ticking has limited the control Dell has over the way all the boxes right now. Interactive consumer its products are presented and explained. concepts like Nike ID and Nike + are creating a buzz.30 Best Global Brands 2008 Best Global Brands 2008 31
  • 18. 33 ® 11,438 $m 34 11,399 $m 38 10,331 $m 40 8,772 $mBUDWEISER. While still the beer of choice in MERRILL LYNCH. Merrill Lynch is in the GOLDMAN SACHS. Even Goldman Sachs NINTENDO. In just a few short months, 2008 11,399 $m 2008 8,772 $m 13%the US, the King of Beers needs to ensure its unenviable position of being among the proved vulnerable to the economic turmoil in Nintendo pulled off something the gamingpersonality to drinkers shines through in other worst hit by the credit-crisis. Without a 2007 14,343 $m 21% the US, especially in credit markets. Its shares industry had been struggling to do for years – 2007 7,730 $mcountries if it’s to keep its crown. Non-beer retail side to their business to help support | 0 | 5 | 10 15 | were down a significant percentage from the widen the market. With the phenomenal | 0 | 5 10 |alternatives have gained popularity in recent and balance the business, they’ve been left Brand Value $m previous year and it was forced to write off success of the Wii and DS consoles, Nintendo Brand Value $myears, broadening consumer tastes. Following struggling with the reality of colossal losses. Brand Merrill Lynch over $2 billion. Yet, the firm’s ability to manage has fuelled the acceptance of video games Brand Nintendoits recent takeover by InBev, the Budweiser A brand which has traditionally thrived on Country of origin US its risks and still have time for philanthropy as a form of entertainment for all age groups Country of origin Japanbrand should prosper given its flagship role a reputation for not being a risk taker has Sector Financial Services has kept it in people’s good books. Despite a and genders, giving the games console Sector Consumer Electronicswithin such a large international portfolio and seen its involvement in packaging sub- Brand Value ($m) 11,399 fall, it has done better than many of its rivals a legitimate place in the living room and Brand Value ($m) 8,772the access it will gain to new markets. prime US homeowner securities backfire Rank 2007 22 and has actually strengthened its brand in people’s hearts. Innovation continues to drive Rank 2007 44 spectacularly. Rank 2008 34 relative terms. the brand as new concepts, such as Wii Fit and Rank 2008 40 the Brain Training series, push the boundaries of what video games can be and the ways in which people can engage with them. 39 9,710 $m KELLOGG’S. The Kellogg’s brand continues to thrive, both in the US and overseas. The 35 10,913 $m 36 10,876 $m greater public awareness of healthy eating has put pressure on some of its higher salt In just a few IKEA. Ikea continues to focus on global CANON. Traditionally known as a consumer and sugar content products, and the way its children’s products are marketed. This has 41 8,740 $m short months Nintendo pulled been cleverly offset by a big push behind the expansion with new stores opening in 11 brand, Canon is not as well positioned as benefits of its more healthy brands, such as countries. One of the most stable brands in the some of its rivals to make a real impact on UBS. Overall, UBS was one of the brands hit Special K. Kellogg’s has vowed to reformulate world, its products are consistently innovative, stylish, and a great value – an unbeatable mix the business-to-business market despite attempts to refocus its activity. Advances many of its flagship brands to healthier recipes and meet self-imposed health standards over the hardest by the credit crisis. It suffered massive losses on sizeable trading positions off something in times like these. Hoping to appeal to a new demographic of young people and to expand in mobile phone technology continue to threaten sales of digital cameras, as the next year and a half. Its healthy agenda was also supported by its purchase of Bear in the US and was hurt by the sudden collapse in the US mortgage securitization market. the gaming its brand recognition in new markets, Ikea reached a deal with Electronic Arts to create consumers are increasingly happy to capture and send pictures via their phones. Canon has Naked – the second-biggest maker of granola behind Quakers in the US – a brand bursting Disagreements on the inside fuelled a new lack of confidence that has damaged a brand industry had a special ad-on pack for the popular Sims 2 computer game featuring a wide range of Ikea done well within the environmental agenda, launching an innovative calculator partly with health benefits. that had always been known for its prudence. Litigation cases in the US have also contrib- been struggling products to decorate people’s virtual homes. made from recycled Canon photocopiers. It has also demonstrated good growth potential uted to reputational damage. Against this backdrop, expansion outside the US remained to do for years. in emerging markets. In India, Canon is steady, but unspectacular, and UBS still has an Innovative, opening stores targeting both businesses and consumers and marketing aggressively over-reliance on partnerships. stylish and to reposition Canon as a lifestyle brand. great value – 42 8,696 $m 37 10,773 $m Ikea is an MORGAN STANLEY. Morgan Stanley lost a lot of ground this year and will need to work 2008 8,696 $m unbeatable mix J.P. MORGAN. Despite having an innovative hard to reclaim its position. Like many of its 16% 2007 10,340 $m and more diversified business than many of its competitors, the bank has been involved in | 0 | 5 | 10 15 | in times like direct competitors, JP Morgan has still suffered a class-action suit with shareholders out- Brand Value $m at the hands of the US credit crunch. Along raged by its delay in disclosing the level of its Brand Morgan Stanley with a fall in overall performance, earnings per exposure to mortgage-backed-securities in these. Country of origin US share fell 49%. Compared to the competitors, the US. Economic crisis aside, the brand is Sector Financial Services however, JPMorgan was not viewed as carry- attempting to re-build trust by focusing on Brand Value ($m) 8,696 ing as much risk and therefore did not suffer as its illustrious heritage. Rank 2007 37 much damage to its reputation. Rank 2008 4232 Best Global Brands 2008 Best Global Brands 2008 33
  • 19. 43 8,325 $m 44 8,313 $m NEW 48 7,943 $m 49 7,896 $mPHILIPS. Philips has always been well- THOMSON REUTERS. The highly publicized SIEMENS. Siemens has led the charge in FORD. Despite recent changes to the 2008 8,313 $m 2008 7,896 $mregarded in the electronics field and is leading merger and rebranding of Thomson Reuters reaching consumers in emerging markets. product portfolio, Ford has struggled tothe way when it comes to sustainability. has created one of the strongest players in the 2007 With increased investments in infrastructure convince consumers that it does more than 2007 8,982 $m 12%It was awarded the Stars of Energy prize in industry, with a big presence in high-growth | 0 | 5 | 10 | 15 and services aimed at an older demographic, just produce big cars with big engines. | 0 | 5 10 |2008 in recognition of its work in energy regions such as India, China and the Middle Brand Value $m it has increased demand for its services in This is a problem of momentum – having Brand Value $mpreservation. The brand’s products are East. It will take time for the brand to reach Brand Thomson Reuters some interesting places. An investment in sus- invested heavily in owning the big-truck Brand Fordbecoming increasingly diversified and, after its true potential as the group restructures to Country of origin Canada tainable technologies and energy solutions, space in the past, it’s taking time to shift its Country of origin USrecognizing healthcare as a key growth area, become more efficient but, with exciting new Sector Media along with a willingness to be a spokesman image. This isn’t helped by negative media Sector Automotiveit has an innovative range of health diagnostic services for mobile devices and increasingly Brand Value ($m) 8,313 on the subject, is helping frame the brand in coverage on the company’s performance, Brand Value ($m) 7,896products at various stages of development. intelligent data management, Thomson Rank 2007 - a progressive light. However, a lack of strong undermining confidence in the brand with Rank 2007 41 Reuters is shaping up to be one to watch. Rank 2008 44 brand communications, coupled with reputa- internal and external audiences. Ford Rank 2008 49 tional damage following a recent corruption has started the change process and is scandal have limited brand value growth. producing smaller vehicles in the US, but needs to communicate with customers and employees to re-establish its reputation.Gucci has a firm grip on both its brand and therevenues it generates, something that willprovide advantage as it enters into emerging markets. 50 7,609 $m 51 7,508 $m 52 7,193 $m45 8,254 $m 46 7,991 $m 47 7,948 $m HARLEY-DAVIDSON. Despite its rich heritage and cult following, Harley-Davidson saw a 9% fall in revenues in the US, suggesting it is strug- L’ORÉAL. L’Oréal has reinforced its position as one of the world’s most prominent cosmetics companies by successfully expanding MTV. As a youth brand, MTV is expected to keep up with the times. In this era of social networking and user generated content, gling to stay relevant with its home audience. into emerging markets. It has also taken it has made the most of online and mobileGUCCI. One of the world’s most coveted EBAY. eBay has historically dominated the ACCENTURE. As the world’s largest Things look rosier overseas where it grew sales advantage of the growing demand for male channels, adapting content to suit theseluxury brands, Gucci can’t afford to rest on its world of online auctions but there appear to business processing outsourcer, Accenture by 40% by focusing on non-core audiences, grooming products by using celebrities to audiences and choosing partners that canlaurels. With an increased brand communica- be changes afoot. Recognizing that customers has benefited from its solid track record such as women and younger adults, particu- endorse the brand. The brand continues to help it to reach them in new and excitingtion budget of 41.5% over last year, the brand (both buyers and sellers) increasingly want to of efficiency as businesses are now more larly in Asia. The brand has enjoyed real equity use the slogan “Because You’re Worth It” – ways. But it’s the brand’s activities inhas capitalized on its lead positioning of cre- be able to trade without necessarily entering cautious about how they spend. The brand in the past, but it needs to find new ways to a consistent message that helps to reinforce emerging markets that could reap the biggestativity, quality, and the kudos of being “Made into an auction, eBay is encouraging fixed- is still benefiting from the halo effect of Tiger engage consumers to make sure the same is its identity. rewards. An expanded influence in China andin Italy.” With a retail network it directly price listings by making changes to its fee Woods, its celebrity sponsor, who reinforces true of its future. India sits alongside real headway in Arabicowns and operates, Gucci has a firm grip on structure. This demonstrates responsiveness the message that Accenture understands markets, as North Africa and the Middle Eastboth its brand and the revenues it generates, and a willingness to flex its business model what it takes to be “high-performance.” Harley-Davidson has adopt a more relaxed cultural attitude andsomething that will provide an advantage as it to meet changing needs. However, the move music increases in popularity.enters into emerging markets such as India. also represents a shift away from its auction enjoyed real equity in roots and makes its offering more closely resemble that of Amazon. International the past but it needs expansion has been good, though eBay is still struggling with the format in China and to find new ways to Japan, being forced to team up with partners with a better understanding of the local engage consumers to markets. Meanwhile, on home turf, its eBay make sure the same is Motors site is gaining momentum, thanks to a big promotional push. true of its future.34 Best Global Brands 2008 Best Global Brands 2008 35
  • 20. 53 7,047 $m 57 6,437 $m 60 6,355 $m 62 5,955 $mVOLKSWAGEN. This was another brand to COLGATE. Colgate’s brand growth this year CHANEL. Regarded as one of the world’s ZARA. Having expanded into eight new ter- 2008 5,955 $m 15%benefit from the deserved German reputation can be attributed to an increase in advertising most iconic fashion brands, Chanel maintains ritories in the last two years, Zara is nowfor solidity and reliability. VW has moved to spend, resulting in exceptional sales growth. its desirability through classic appeal that is a truly global force, with operations in 72 2007 5,165 $movertly own this territory with the simple, New products have been successfully constantly being reinterpreted for modern countries. It owes its status as the master of | 0 | 5 10 |category-claiming tagline, “Das Auto.” Walter launched, both in the US and internationally. times. More affordable ranges are offered impulse shopping to its truly original business Brand Value $mde Silva, the group’s new design chief, set The launches have been supported by in limited quantities and, during the fears of model. The retail stores are not just the end Brand Zarathreefold goals for the group in an attempt fully integrated campaigns that make the recession, Chanel has maintained price points of a highly efficient supply chain, they are the Country of origin Spainto create a distinctive look for the brand: most of online interactivity to engage with and exclusive positioning. Familiarity with the beginning of the design process. Design input Sector Apparel(1) create an identifiable design for each VW consumers. brand is sure to rocket following the release of comes from market specialists and buyers as Brand Value ($m) 5,955brand; (2) create a unique face for the Golf and the biopic “Coco avant Chanel.” well as designers, so its fast fashion is directly Rank 2007 64build a family of derivatives; and (3) simplify customer-driven. The weekly rollout of new Rank 2008 62the design of future VW cars. 58 6,434 $m stock gives people a reason to visit more reg- ularly than most outlets, and the price point 61 6,105 $m makes spontaneous purchase highly likely.54 How do you buck a downward trend? 7,022 $m Give the people what they want. WRIGLEY’S. Chewing gum sales may beAIG. The negative press surrounding the US down in the US, but this has not stoppedfinancial services industry, as well as AIG’s Wrigley’s from continuing its expansioninfighting and slowness to acknowledge internationally, including a growing presenceerrors publicly, has damaged the brand rela- in the Chinese market, thanks to speciallytive to more agile competition. AIG is on the tailored flavors and packaging. Wrigley’s are 63 65defensive, with less effort being spent on working hard to reduce any negative healthrebuilding its diminished image and a renewed AMAZON.COM. The world’s biggest book- associations through clever partnerships 5,592 $m 5,496 $m 2008 6,434 $mfocus on its balance sheet. store gets bigger, largely due to a shift in focus 19% with organizations like the American Dental away from books. Amazon is fast becoming 2007 5,411 $m Association, which gave the Extra and Orbit a super-mall, selling everything from toys, | | | brands its seal of approval – the first gums NESTLÉ. While increased advertising spend YAHOO! Despite continued innovations, such 0 5 1055 jewelry, clothes, and electronics alongside Brand Value $m ever to receive the accolade. The recent acqui- has helped keep Nestlé relevant in established as Yahoo Mobile, and its dominance in many 7,001 $m its core offering of books, CDs, DVDs and Brand Amazon.com sition by Mars should provide Wrigley’s with markets, it’s geographic expansion and an markets, the brand has suffered at the hands games. Recent innovations include the Kindle greater resources to further build their brand. expanding product range that keep the brand of a failed takeover by Microsoft. Ironically, Country of origin US (a wireless e-book reading device), Amazon Sector Internet Services growing. With such an extensive offering it’s by declaring that the offer “undervalued”AXA. Although its making some strategic MP3, DRM free music downloads, Checkout Yahoo! suffers Brand Value ($m) 6,434 inevitable that negative news stories and the brand, its rejection has resulted in law-acquisitions in relatively stable emerging (Amazon’s own online payment system to Rank 2007 62 health scares will never be far away, and this suits, management shake-ups, and strategicmarkets, AXA has not been immune to nega- rival PayPal) and the successful Amazon year it’s the presence of potentially harmful activities that have subsequently reduced its at the hands of a Rank 2008 58tive market conditions. Market sentiment has Prime unlimited free shipping service, which Bisphenol A in baby formula cans that made perceived value and angered shareholders.dented its share price and a series of blunders encourages repeat custom. Behind the scenes the headlines.led to clients being reimbursed for poor man-agement of their accounts, all at a time when Amazon’s web-services offering gives 330,000 developers access to some of Amazon’s tech- failed takeover byconsumer trust in the US financial sector is atan historic low. nology in exchange for a fee. Microsoft. 64 5,582 $m 66 5,408 $m56 6,646 $m 59 6,393 $m KFC. Dogged by the poor health perceptions of fried foods, the brand is taking strides to DANONE. Danone has joined the barrage of western brands making inroads in Asia and become more health conscious by piloting has successfully introduced a wide range grilled chicken in selected US markets. KFC is of products in new markets. Following aHEINZ. With sales struggling, Heinz has XEROX. When it comes to printers and pho- business purchase decisions. And, by refocusing also trying to appeal to diners for breakfast and prolonged restructuring of the business,embarked on an awareness drive, supported tocopiers, the hardware is becoming so cheap on services like document outsourcing and office lunch, as well as dinner, with portable options a new focus on health products is bearingby some innovative products (it is planning that it’s the cartridges and maintenance that are solutions, it’s opening up a whole new market. catering to those mealtimes. Like many of the fruit as Danone reorganizes its offerings toto launch 100 new lines around the world most profitable, making the B2B market more With its recently refreshed identity, Xerox is posi- brands in this year’s ranking, KFC is expanding cater to health-conscious consumers andthis year). The continued success of the brand appealing than the consumer market. Xerox tioned as a modern, dynamic provider that can by looking to emerging markets to back up shareholders.is driven by growth in emerging markets, has long been associated with the B2B market, adapt to the ever changing office world. flagging domestic sales, and is adjusting itsparticularly in Russia, India, China, Indonesia, so it’s in a great position to be front of mind in menu to suit. In China, for example, diners canand Poland. enjoy fried dough and preserved egg porridge along with their chicken.36 Best Global Brands 2008 Best Global Brands 2008 37
  • 21. The secret to Rolex’s67 5,407 $m success has been a long-term view on 71 4,956 $m 74 4,636 $m 77 4,357 $m its relationship withAUDI. Audi has shown the biggest gains in ROLEX. Rolex is the world’s biggest luxury KLEENEX. Saddled with a brand name that’s GAP. When it comes to fashion retailing,the sector by focusing on good, sustainable, consumers, focusing watch brand. The secret to its success has in danger of being seen as a generic descriptor the middle ground has always been a 2008 4,357 $mrecognizable design and smart positioning. on performance and been a long-term view on its relationship with like Rollerblades or Walkman, Kleenex is once battleground, and lately you’d be forgiven 2007 5,481 $m 20% for thinking that GAP has been on the losingIt has focused heavily on engine efficiency and continuity. consumers, focusing on performance and con- again trying to build equity in its brand name. | | | | | | 0 2 4 6 8 10emphasized the diesel range. A reputation tinuity – something demonstrated by the great Sponsorship of the Beijing Olympics gives side. Despite a slow increase in profits, thanks Brand Value $mfor reliability plays well to a market looking value collectors put on vintage Rolex watches. a relevant (yet expensive) tie-in for award- largely to cost-cutting, worldwide sales are in Brand Gapfor vehicles that hold value, and it has made Recent investments follow this strategy, with winning tear-jerkers that work nicely with its decline as budget-conscious consumers trade Country of origin USconsiderable advances in aligning the range enhanced after-sales services and distribution emotional “let it out” campaign. down or are lured away by more appealing 69 Sector Apparel competitors. Gap’s brand reputation hasunder a consistent design philosophy. In 5,264 $m benefiting from increased spending. Brand Value ($m) 4,357emerging territories like India, where it began suffered through child labor issues in India Rank 2007 61 75production this year, Audi has positioned itself and turning things around could take more Rank 2008 77 4,603 $m 72well for the growing high-end luxury market. than just boosting its online offering. AVON. While valiantly trying to crack new 4,846 $m markets, Avon’s real success has been in its traditional heartland. Although progress has68 5,288 $m been slow in the Far East and Latin America, a global rebranding campaign featuring Reese HYUNDAI. Korea’s national brand champion (and the world’s 6th-biggest car manufacturer) PORSCHE. Porsche has grown strongly in emerging markets like the Middle East, Russia, India, and China, where there is a growing When it comes to fashion retailing, the middle ground has always been Witherspoon has raised its profile.CATERPILLAR. Caterpillar has been one of now adds, as standard equipment, many of the advanced features of its higher-priced demand for conspicuous status symbols with heritage. By broadening its product range a battleground.the major beneficiaries of the rapid growth rivals – from both western and eastern sides of with models like the Cayenne, Porsche hasof emerging markets. As the world’s largestmaker of construction and mining equipment, 70 5,072 $m the globe. Paralleling Toyota’s Lexus, Hyundai has launched an upmarket prestige car brand managed to appeal to a broader demographic, shedding the stigma of being an ’80s Yuppiediesel and natural gas engines and industrial under the name Genesis, using the Super plaything, and has adopted a more grown-up,gas turbines, it is in an enviable position as Bowl football broadcast – the world’s most family-friendly persona. The build qualitythese new markets expand at an extraor- ADIDAS. The constant evolution and means they hold their value well, which is par- expensive commercial air time – to publicizedinary rate. From a brand-building point of re-investment in its brand has helped Adidas ticularly positive in the current climate. the new range and, along with a refined digitalview, its sponsorship of NASCAR in the US become one of the leaders in the industry, strategy, to promote the Hyundai brand inand a strong citizenship approach has helped second only to Nike. The acquisition of Reebok the US. As fuel prices soar, environmental and some well-chosen sponsorships have kept 76soften its image. concerns increase, and the economy shows it in the headlines and, more importantly, signs of weakness, it is the smaller, cheaper, 4,575 $m on the shirts and sneakers of some of the more efficient, far eastern manufacturers like 78 79 world’s biggest sporting heroes. The tagline Hyundai that stand to benefit. “Impossible is Nothing,” much like “Just Do It,” 4,281 $m 4,236 $m HERMÈS. One of the most exclusive and pres- enables it to talk to consumers both inside tigious fashion houses in the world continues and outside the sporting world, broadening its to pursue a strategy of creativity, quality, appeal as a sporty fashion brand with attitude. PANASONIC. With a strong line-up of CARTIER. Performing exceptionally well know-how, and artisan spirit. A strategic refocus on geographic expansion has seen products, Panasonic has made strides in jewelry and watches, Cartier is now inroads in India and China and the high-profile internationally and the brand has been helped looking to China to boost revenues, growing 73 opening of a store on Wall Street – one of 40 by unifying all markets under the Panasonic the number of outlets to capitalize on the 4,802 $m NEW planned in 2008. brand name, replacing the historic Matsushita strong demand from the Asian market. Electric Industrial Co. and National brand Looking ahead, the resilient nature of high- names in its native Japan. Once again it was a end consumers leaves Cartier in a strong BLACKBERRY. It was only a matter of time the move. The only cloud on the horizon for top sponsor of the Olympics this year, putting position, even against the backdrop of the 2008 4,802 $m before the brand, ubiquitous with corporate BlackBerry could be the threat of Apple’s its name in front of the world. Panasonic’s current economic climate. users, reached out to a wider consumer base iPhone as the ultimate business phone. But 2007 Lumix camera and Viera television brand and hit the big time. By concentrating more with a raft of new 3G products of its own in | | | | | | continue to do well and it’s benefiting from 0 1 2 3 4 5 on style and introducing pocket-friendly the pipeline, such as the Bold, a flip-phone, Brand Value $m some wise industrial partnerships, particularly models like the Pearl and Curve, the brand and BlackBerry’s first touch-screen model – in the LCD arena. Taking a slightly different Brand Blackberry now appeals to an audience eager to embrace the Thunder – the world’s addiction to the track to its rival Sony, Panasonic is continuing Country of origin Canada smarter phones with internet and email on nifty little devices looks set to continue. investment in the white goods sector, a Sector Consumer Electronics profitable category ignored by its rival. Brand Value ($m) 4,802 Rank 2007 - Rank 2008 7338 Best Global Brands 2008 Best Global Brands 2008 39
  • 22. The continued80 4,208 $m 83 3,951 $m 86 3,768 $m 89 3,590 $m 92 3,582 $m emphasis of familyTIFFANY & CO. Tiffany & Co.’s consistent brand MOËT & CHANDON. Still mopping up after ING. ING has continued to differentiate itself SMIRNOFF. Smirnoff has continued to be the JOHNSON & JOHNSON. The continued and ethical valuesstrategy and focus on the customer experienceensure that, regardless of economic conditions, years of worldwide prosperity, Moët & Chandon have continued to display strength and con- in the marketplace, emphasizing its reputa- tion of being “easy to work with.” While the worldwide vodka of choice, with sales steadily growing in all markets, particularly the US. emphasis of family and ethical values has helped the Johnson & Johnson brand maintain has helped thepeople will always find a little sparkle whenthey walk through the doors. That said, a fidence in its brand by increasing its price, in spite of changing economic conditions. Where bank has been hit by the US financial crisis, it has not been effected as dramatically as some The launch of Smirnoff Ice Light is appealing to a more health-conscious female market a place in people’s hearts, with a wide range of products and partnerships doing the balance Johnson & Johnsonpositioning of “affordable luxury” may leavethe brand exposed if mainstream consumers it has been most successful is in continuing to transform the category from being seen as others within the industry. ING has continued to build awareness through advertising and and builds on the success of its vodka-based alcopops range. The brand has been engaging sheet no harm either. With the acquisition of Pfizer, the brand has become a worldwide brand maintain acontinue to cut back on luxury spending whilehighly affluent consumers stay loyal to the something for a seasonal treat to an all year round drinking choice that is short-hand for its sponsorship of the Renault Formula One racing team. with consumers in new ways of late, making the most of interactive media such as blogs force, which may, in time, stretch the percep- tion of it being a family company. place in people’sultra-premium end of the market. It will beinteresting to see how consumers react to the “being fabulous.” As emerging markets continue to get a taste for the good life, this strategy will and video to appeal to younger drinkers, and building up a long list of action-movies where hearts. 87new “Collections” store format. stand them in good stead for years to come. its products have been placed. 3,721 $m81 4,097 $m 84 3,911 $m MOTOROLA. Motorola has lost its category 90 3,588 $m 93 3,527 $m NEW leadership position. Through a lack of inno- vation and growth into new segments, the FERRARI. Ferrari has always been a highlyPIZZA HUT. Squeezed by the desire for BP. Following a couple of nightmarish years, BP brand is in serious decline. While innovative LEXUS. Clever marketing in the US has 2008 3,527 $m desirable brand, but this year sees it breakhealthier eating, but from a cost-conscious is still trying to restore the value of its brand to new products from Apple, Samsung, Nokia, maintained the perception that Lexus is an into the list for the first time. Increasing 2007 consumer, Pizza Hut has worked hard to 2006 levels. Revenue has been boosted by and BlackBerry tap into fast-changing con- American brand, rather than Japanese. This global prosperity over the last decade has | | | | | |deliver affordable healthier options, such as record oil prices, but its reputation has been sumer needs, Motorola has been left behind is vital in a country where people prefer to 0 1 2 3 4 5 made the brand increasingly attainable. Brand Value $m“The Natural” pizza, to try and stay relevant. tarnished further by problems and incidents in and has seen its 2007 self-claimed 14% market buy home grown products. Elsewhere, the Ferrari has managed the growth well by Brand FerrariIn the US, its new Bistro concept tries to Alaska and Texas City, while instability in its share erode further. With the business due to brand is seen as less exciting and sporty than limiting production and maintaining a sense Country of origin Italyattract a broader customer base, by marrying Russian TNK-BP venture threatens to cause be split into two divisions, time will tell if the its nearest rivals, BMW and Mercedes, but of exclusivity to the brand. Despite a fall Sector Automotivethe restaurant’s traditional pizza and chicken more harm. On a more positive note, BP is now changes can lead to a sharper focus. this hasn’t stopped its growth. It has invested in the value of the US dollar, (which made Brand Value ($m) 3,527wing menu with more upscale items, such as seen as a leader in working towards greener heavily in hybrid cars with its sister brand the car relatively more expensive in one of Rank 2007 -Chicken Florentine and Sausage and Pepper energy. Its investments in sustainable energy Toyota. This makes it an increasingly popular Ferrari’s key markets), the brand achieved 88 Rank 2008 93Rustica. Convenience has always been key in sources work to reduce exposure to the price of choice in places like London where thisthe pizza business and Pizza Hut has rolled out oil and the ultimate threat of its exhaustion. 3,682 $m technology is exempt from the Congestion record-breaking sales last year. This was supported by huge growth in emerginga mobile ordering system that uses the latesttechnology to bring pizzas to people’s doors. Charge tax. markets where the brand is increasingly Fuelled by strong sales bought as a status symbol. in emerging markets 85However, despite all of these innovations, DURACELL. The Duracell bunny just keeps 3,879 $m 91Pizza Hut faces flat sales in core markets and,like other chains, is looking to China and India on going, albeit without spectacular ascent. With many gadgets now favoring recharge- 3,585 $m where the brand isfor sustained growth. able lithium batteries, you’d be forgiven for increasingly bought as STARBUCKS. Despite a challenging year for thinking the market is shrinking. But driven by the business, Starbucks has focused its ener- demand in developing markets, particularly PRADA. Prada has been the top spender on a status symbol.82 4,033 $m gies on rebuilding the brand. As the credit crunch bites, consumers are less willing to pay a premium for what has effectively become a in Latin America, where distribution has been vastly increased, the brand has built on the gains made last year. marketing and advertising among the luxury global brands. With the Chinese market expected to account for 10% of global sales daily staple. The success of Starbucks has made by 2010, the region has been a key focus forALLIANZ. Thanks to a more conservative other outlets up their game, with brands like development. The Prada phone, developed inapproach, Allianz has significantly improved McDonald’s offering coffee arguably as good conjunction with LG, was well received andits position over the competition since the US for a fraction of the price. In the US, Starbucks helped the brand to reach new audiences.credit crunch. The brand is strong on ethics is cutting costs through layoffs and shuttingand honesty, and along with the prudent down 600 under-performing shops. It’s a storyapproach, this has been reinforced by the repeated in Australia, where 61 of its 85 storesfact that they contact all customers over were closed as the brand offered no real benefitthe age of 74 to make sure they understand over local coffee houses. Despite its problems,the products they hold. In terms of growth, Starbucks is fighting back by focusing on theinroads in Scandinavia, Slovenia and Japan experience of its outlets, exploring music andbegan to pay off. entertainment initiatives, and improving ser- vice by retraining baristas and engaging them with the brand.40 Best Global Brands 2008 Best Global Brands 2008 41
  • 23. 94 3,526 $m NEW 98 3,401 $m 99 3,359 $m NEW NIVEA. Already a leader in skin care, it’s the ARMANI. As one of the world’s most FEDEX. Despite a downturn in the US 2008 3,526 $m expansion into areas such as hair care that’s 2008 3,359 $m dynamic fashion brands, Armani has a long market, FedEx is benefitting from the helping the brand build on its success in the last track record of promoting the luxury Italian 2007 growth in global trade and has continued to 2007 few years. Nivea has demonstrated an ability lifestyle. But recent investments in new | 0 | 1 | 2 | 3 | 4 | 5 strengthen its brand in emerging markets. | 0 | 1 | 2 | 3 | 4 | 5 to adapt to customer needs and tailor products categories have helped the brand reach out Brand Value $m Awareness has been raised after heavy Brand Value $m for the Asian and Latin American markets. The to new audiences. The Armani brand now Brand Armani investment in sponsorship and advertis- Brand FedEx “Beauty is” advertising campaign has resonated stretches into areas as diverse as fragrance Country of origin Italy ing, including a campaign for the rebranded Country of origin US well around the world, presenting beauty (Armani Code), home furnishings (Armani Sector Luxury Kinko’s, which is now called FedEx Office. Sector Transportation as something that is within everybody and Casa), technology (co-branding with Brand Value ($m) 3,526 Brand Value ($m) 3,359 challenging traditional stereotypes of what is Samsung) and hotels (the first Armani hotel Rank 2007 - Rank 2007 - considered beautiful. opened in 2008 in Dubai). Rank 2008 94 Rank 2008 99Armani reaches The FedEx brandout to new spread its wings and 96 3,502 $m NEW has compensated foraudiences through the downturn in itsthe brand. MARRIOTT. With a classic approach to 2008 3,502 $m home market. hospitality, Marriott has seen its focus on availability and assurance of service and 2007 quality pay dividends. By asserting itself as | 0 | 1 | 2 | 3 | 4 | 595 a class above competitors and continuing Brand Value $m 3,513 $m efforts to enhance its image among frequent Brand Marriott business travellers, it has demonstrated Country of origin US a strong grasp of the industry. It has also Sector HospitalityHENNESSY. While emerging markets like generated positive press for its long- Brand Value ($m) 3,502China and Russia fuel growth, the Hennessy standing sustainability initiatives, including Rank 2007 -brand is in decline in the US as consumers efforts to significantly reduce energy and Rank 2008 96switch to alternatives like whisky and carbon emissions across its network. As theother spirits. Recently the brand has triedto reinforce its brand message with an brand embarks on an ambitious project to roll out a series of boutique hotels under the brand “Edition,” its place as a leading 100 3,338 $m NEWadvertising campaign built on its values of“heritage” and “authenticity.” hospitality brand looks assured. VISA. Ironically, considering its position as 2008 3,338 $m the world’s #1 credit card brand, Visa has barely been affected by the US credit crunch. 2007 Unlike the lenders whose cards carry its | 0 | 1 | 2 | 3 | 4 | 5 brand name, Visa carries no consumer debt. Brand Value $m Instead it makes money from transaction Brand Visa fees, which have been increasing steadily 97 Country of origin US 3,471 $m over the years. The brand’s global nature Sector Financial Services makes it the perfect sponsor for interna- Brand Value ($m) 3,338 tional sporting events such as the Beijing Rank 2007 - Olympics, beaming its brand name into the Rank 2008 100 SHELL. Despite the problems affecting the industry, Shell has continued to bolster homes of millions of people the world over, its strength internationally. It is one of the many of whom may be taking their first most recognizable petroleum brands in the steps with credit. world, with a presence in 110 countries and a reputation for being a good employer. Shell believes so strongly in its business principles that its set up a whistle-blowing website for employees worldwide to report any violations they come across and, like its peers, it is investing heavily in alternative energy sources.42 Best Global Brands 2008 Best Global Brands 2008 43
  • 24. Industry insights of the brand. We’re seeing more emphasis on product support. Customers perceive valueComputer software Computer hardware in having a person on hand to help them withBill bows out Box clever any difficulties, even if they don’t end up solic- iting their help. The emphasis is on dialogue and relationships, and the personal touch, are great drivers of loyalty. While Dell’s move will give them tangible retail presence, it remainsIt has been a case of the rich get richer This year sees the continued march of to be seen whether people feel there is theagain this year. The industry is totally computer hardware into the mainstream. expertise to match the scale.dominated by the three major enterprise Whoever said “the geek shall inherit thesoftware giants, Microsoft, Oracle, and SAP, Earth” was spot on. Technology is not onlywhich continued to grow in brand value. cool these days, it’s part of the furniture.The compe­ ition is not even remotely close tto their level. This gap is maintained by the This ongoing shift from unsightly, confusing, generic boxes to ubiquitous, enabling, life- Computer servicesbig three continuing to use acquisition as a style accessories brings certain expectations Man and machineconsistent growth strategy, staying current in terms of design, price, distribution, andwith technologies, and keeping strong, support. The brands that have a vision of thediversified brands. The prominence of near-future drivers of demand and capture itacquisition over organic growth is cause for are the ones moving ahead of the pack. The US-dominated sector has grownconcern among industry watchdogs who steadily in brand value this year. It’s nowonder whether diversity and expertise are Product design is an obvious battleground. surprise, given the value of contracts andsustainable in such a climate. Apple, which has grown beyond this sector the long-term impact of IT investments, and now sits comfortably in consumer that B2B customers go for trusted brands,Despite remaining the biggest brand by value electronics, is the incumbent beauty queen especially in uncertain times. Reliability,in the sector, Microsoft has had a tough year. here. But Dell’s recent launch of a bamboo- accountability and products that last areThe retirement of Bill Gates leaves the cased computer suggests the sector is what count here. For companies who relycompany without its talisman. It was reacting to demand for more visually pleasing on technology to compete and connectparticularly scarred by the failure to acquire products. Consumers expect both form and with customers, it can be less a question ofYahoo!, and signs point to installed software function now. We’ve seen co-branded laptops whether they can afford to, and more of alosing relevance as SAAS gains traction, from Acer and Ferrari, and HP partnering question whether they can afford not to.which presents a threat to its traditional core with Microsoft in a move to bolster searchrevenue model. credentials that may prove beneficial for both We’re talking service, so the human touch is parties. Maintaining a pipeline of products a massive factor in this industry. This is mostThe face of software companies is increasingly with a distinctive aesthetic will separate the evident in customer relations and attractingbenefit-focused as communications emphasize contenders from the pretenders. talent. Companies want answers to busi-the human element of the brand. This is largely ness needs, and this requires both man andthanks to mass media advertising, especially in Sustainability is high on the agenda too. machine. IBM has engaged in advertisingairports and transportation locations, focusing Consumers are looking for energy efficiency, designed to make the brand meaningful toon the tangible and intangible results compa- and are increasingly savvy about the manufac- those outside the tech community. This hasnies can achieve through these products and ture and afterlife of hardware. As technology bridged the gap that remained after theyservices. Traditional ad campaigns aimed at evolves ever quicker, there is a growing divested their broadly appealing ThinkPadsmall business owners represent an emerging requirement to recycle components and build product line to Lenovo.touchpoint in the sector. green credentials into the processes as well as the end products. This is a long-term game, A brand that appeals to prospective custom-In promoting ease of use, productivity, and and an opportunity for brands to attract new ers and employees alike is a must. Accenture’sfriendly interfaces, software brands are creat- customers. Maintaining broad product port- continued Tiger Woods co-branding/endorse-ing new drivers of demand. Companies seek to folios, investing in research, and diversifying ment indicates the importance of emotionalprovide function and service, and court their geographically are emerging as tactics to attachment in a sphere that has traditionallyaudiences with promises of profitability and clean up on green. Virtualization is also a huge lacked it. He’s shown the ability to triumphadditional services waiting in the wings. opportunity for IT to help people to live more over adversity and the frailty of one-man sustainably, bringing people together without brands this year.Despite all this, consumers remain intimidatedby the software industry, viewing its products the need for physical transport. Whoever said “the geek shallas necessities rather than desirable packagecomponents. Still, a familiar name or offeringmakes a dramatic difference to the consumer Where you sell your products has become more important this year. Apple’s highly controlled branded retail environments are inherit the earth” was spot on –feeling safe and comfortable. If you don’tunderstand, go with a brand. in stark contrast to Dell’s arrangement with Walmart, intended to increase the exposure technology is not only cool these days, it’s part of the furniture.44 Best Global Brands 2008 Best Global Brands 2008 45
  • 25. Consumer electronicsBeautiful features Internet services Combine and conquer? Transportation An industry on the move Automotive Keen to be seen as green Anyone looking for a case study on complex globalPrettier, better, and cheaper seems to be This sector saw the biggest average growth Change is this year’s dominant theme Anyone looking for a case study on complex socio-economic forces should look no further than thethe order of the day. Design has become in brand value, reflecting the pervasive in transportation. Although customer global socio-economic forces should lookincreasingly important as a driver of influence of the internet on everyday life, demand is growing – particularly for trans- no further than the automotive industry.choice. In fact, people now view aesthetic and easier access from multiple platforms. national services – the economic slowdown With fears of recession, environmentalappeal as a given when buying electronicgoods. If it isn’t sleek and stunning, it One industry theme that won’t go away is the difficulty companies are having has made business difficult. So brands are searching for new ways to connect with pressures, rising affluence in developing markets, and a multitude of variables to be automotive industry.doesn’t sell. Some brands have learned this in monetizing the huge user bases they consumers and raise awareness. fine-tuned in different regions, it’s difficultthe hard way. attract. This has led to accusations of to know where to begin. inflated valuations and fears of another Three major approaches to brand manage-The battle of beauty has spilled beyond prod- dot-com bubble. ment have evolved. Cooperation between Production of many passenger cars, lightuct design onto the shelves, as brands ramp competitors has benefited some, such as DHL trucks and SUVs exceeded demand. This wasup point of sale to be the fairest of them all. Too many companies are too heavily reliant on and UPS in air transportation. Sponsorship of especially pronounced in North America andWe’re seeing FMCG-style brand management advertising, so the big brands are expanding key events has opened up a broader customer Europe, the main revenue and profit centers.driving choice in the form of sophisticated in- their offerings to try and spread risk and base for others. UPS is hoping its official status Excess capacity, coupled with a prolifera-store collateral and retailer strategies. increase reward. Google is engaging in retail as logistic and express delivery sponsor of the tion of new products being introduced in key with its increasingly popular online tools, like 2008 Beijing Olympics will dovetail nicely with segments, will continue to keep pressure onConvergence continues and in the home, Google Docs, which encroach on Microsoft its strategic focus on building assets in China. manufacturers’ ability to increase prices onthe television remains the icon we arrange territory. Why pay for something when you And there’s been more aggressive advertising their products. This could be offset, at leastour furniture around. It’s fast becoming can get it free? both online and offline – especially by UPS – as in part, by the long-term trend of consumersthe hub for internet access as well as more a way of changing brand perceptions. purchasing higher-end vehicles with moretraditional entertainment, retaining relevance Self-styled “Senior Maverick” at Wired features. In the US, for example, consumersthrough innovation. magazine, Kevin Kelly, astutely points out that, Businesses in this sector are looking to newer in the highest income brackets are buying “When copies are free, you need to sell things forms of relationship-building. Many com- upscale and more frequently. However, forBlackBerry enters the ranking for the first that cannot be copied.” One key quality that panies have posted short films online to give the mass market, choice is increasingly driventime this year. Having built a solid base of can’t be copied is trust. This is where brand and consumers greater insight into their brands, by more practical considerations such as fuelbusiness users, it has moved to broaden its reputation are at their most influential, and the while others, such as UPS, have created chari- efficiency, reliability and residual value.appeal by emphasizing the lifestyle features of reason why the likes of Google have the license table foundations in a bid to enhance theirits products. Apple’s iPhone was a significant to expand their offerings. reputation. Emerging markets will be the majorlaunch and, after first-generation reticence growth center for at least the next decade.from consumers, the combination of looks This is an extremely fluid sector, with fast Established global brands face a choice: theyand functionality is proving a hit with the waxing and waning of popularity and either have to position themselves for thefaithful. Motorola has struggled to shine in the relevance. The decline of AOL is already old rising middle class looking to trade up, orface of stiff competition. news – a stark warning against complacency for the low-cost mass market where they’d to any seemingly unassailable brand. With have to contend with the likes of the “one the stakes so high, it’s no wonder there are lakh” Tata. In addition to transport for all, the rumors of enormous mergers like Yahoo! and trend for democratized luxury will see more Microsoft abounding. comfort for less money. Look out for Hyundai’s affordable luxury car launch. For an industry based on innovations and exceptional technologies, brands have been Soaring oil prices combined with inefficient slow to address sustainability issues. Harper’s engines have hit consumers hard. The result is Magazine (March 2008) suggests that the a renaissance of the small car. Global demand efficiency (e.g.,BMW EfficientDynamics and Volume brands have tailored models to energy usage of data centers is extremely is expected to grow 30% to 27 million units Mercedes BlueTec) and reducing or eliminating market needs, while premium brands like large and problematic. Google appears to by 2013. BMW and Nissan are set to enter the emissions (e.g., Nissan electric concept). Audi have opened flagship showrooms, using be leading the industry in sustainability, market with emission-free models. Perception is everything though, and manu- architecture and experiences to communicate investing in clean energy with plans to be facturers are falling over one another to be brand values. We’re seeing more integrated carbon neutral by the end of 2008. Amazon. Sustainability looms large; no surprise there. seen as green. marketing campaigns, opening dialogs with com (despite being named after a rainforest) SUVs will take some of the hit for the percep- customers, and making use of Web 2.0. Expect and Yahoo! appear to have no official tion of vehicles as arch-polluters. This is The successful brands are managing no mercy in this war on many fronts. green policy. Google has announced a new compounded by global oil prices, and demand perceptions actively through touchpoints green building but, overall, the industry is is expected to fall by 4% in the next five years. and design. Almost every manufacturer has unimpressive in this regard. Chrysler, GM, and Ford look set to suffer most. worked on product design, strengthening The industry is investing heavily in environ- identity with common design attributes mentally friendly technologies, improving throughout ranges, and attention to detail.46 Best Global Brands 2008 Best Global Brands 2008 47
  • 26. Luxury customers expect immersive experi- general. Fewer people are travelling due to ences. Tiffany & Co. is a good example of a recession fears and rising oil prices – especiallySporting goods Apparel Luxury brand that is faltering somewhat as a result in the US and Western Europe. So it is more RestaurantsSearching for a Rags and riches Substance beneath of its loss of focus on service. By trying to serve different tiers of customer in the same important than ever for hotels to ensure their brand has a clear proposition that matches Better for everyone?winning streak the status location (something that no luxury brand has consumer expectations. A surplus of rooms really succeeded in doing), it has tarnished the across the sector makes brand the critical captivating experience from its consumers’ factor in driving choice. perspective. On the other hand, Rolex has Healthy eating is the dominant theme in supported the continued appeal of its product The green issue is another hot topic. But the restaurant sector. No surprise here, but“Faster, higher, stronger” aren’t just ideals The struggling economy has hit clothing During times of economic anxiety, product we’re not just talking about concerns over with investment in after-sale services that the winners in this year’s ranking havepursued by athletes. The sporting goods brands hard. In 2007, just 3.5% of personal quality and service are the two values that obesity in Europe and North America. extend the relationship with the customer moved beyond encouraging guests to re-usebrands behind them would no doubt love to consumption expenditure was on apparel consumers just aren’t willing to trade off, Restaurants are diversifying menus to and enhance interactions with the brand. towels and to reduce their use of water andsee similar market conditions. Key US sales and footwear, the lowest proportion in 30 according to a Yankelovich study. These attract customers with improved nutrition energy. Marriott’s microturbine farm in Newand margins have come under intense pres- years. With less money around, brands are rank well ahead of novelty and indulgence, and reduced fat content. And many This extends to personalization too; people’s York catches the eye – it’s the first hotel insure, and the industry is suffering. Overall having to fight hard to stay relevant and as people look for something solid amidst governments are introducing new willingness to pay top dollar comes with an Manhattan to use ultra clean technologydemand in the market is down as consum- appealing to consumers. all the uncertainty. Luxury customers are legislation relating to health issues, such as expectation that special efforts will be made to provide its own electricity, cooling, anders continue to spend with care. no different; the brands that look to have a ban on trans-fat. to accommodate them. This makes investing heating on site. Manufacturers have responded by divesting the most opulent futures are ones that in employee management, examining theLeading brands will hope that the stars made under-performing brands and focusing on have retained a very precise focus on these Sourcing natural ingredients has been an brand’s promise in a service context in excruci-at the Beijing Olympics will present reward- better-performing brands. Partnerships with two aspects of their brand promise. obvious response to demands for healthier ating detail, and training employees to delivering sponsorship opportunities even after theGames are finished. But while those might celebrities and famous designers have helped successful brands differentiate themselves In terms of product quality, consumers today accordingly, all vitally important. While posi- Food meals. It seems inevitable the sector will turn green sooner rather than later. Dinersprove useful to pique interest in the short from the competition and justify higher mark- appear to be making purchases that are tive service experiences are often attributed to the particular service person involved, neg- Health, wealth and are increasingly concerned about theterm, they’re unlikely to turn around flaggingsales in the long term. However, Adidas will ups with fewer markdowns. defensible in some way – there has to be real substance beneath the status. This is true ative experiences are most often attributed packaging environmental impact of eating out, and to the brand. Get all of this right, and you can the growing trend to support local farmers,expect its official status as an Olympic Games Retailers are offering more “shop-in-shops” across the board, even with the super-rich. manufacturers, and restaurants looks set to charge what you like.Partner to pay significant dividends. Coupled where floor space is dedicated to individual Brands like Hermès, Prada, and Rolex are continue. Brand owners will have to managewith its partnership with the NBA, the brand displays of specific brands with distinctive doing well because the continuity of their their sustainability credentials increasinglyhopes to re-ignite its performance in the US, signage and fixtures. This creates the atmo- designs makes their products appear to be The “perfect storm” of rising oil prices, carefully. economic decline, and pressure onin particular. sphere of a specialty store with focused expertise. purchases that will last. Brands like Gucci and Louis Vuitton stress innovation (noteworthy Hospitality land through increased population and In the race to respond to changing consumerProduct and customer experience innova- innovation, not just novelty) to a greater Combined = more affluence has put serious price pressure lifestyles, the big brands are exploring a vari- on food companies. The heightened costtion look more promising. The leading brandshave all invested in new retail concepts in an As business becomes more and more global, we’re seeing brands traveling more to miti- degree, which is another way of providing substance to their product offering. Although individual? of commodities has been passed on to ety of options. We’ve seen a rapid rise in the fast-casual segment. “To go” options fromeffort to reinvent the customer experience gate the impact of difficult times. Luxury this is a riskier approach, these consumers in an attempt to stay profitable. casual dining restaurants present one of theand keep loyalty strong. Building on the suc- brands are looking to capitalize on brands have been able To justify the hike, larger brands are fastest growing segments in the US, eatingcess of interactive product concepts, such as the rising affluence in Asia, and to mitigate this risk seeking innovative ways to keep their into market share from fast food brands.Nike ID and Nike+, Nike has shown again that foreign fast fashion retailers are through skilled man- There’s nothing new about guests looking products relevant and available. New Grocery chains and even convenience storesit is in touch with its customers by introducing scaling up their presence in the agement of their for hotels with a distinctly individual feel. packaging choices and brand extensions, are offering meal replacement options withwomen’s innerwear. US. Despite the general mood product portfolios. But we’re seeing new approaches from new distribution channels, acquisitions food cooked in store. of gloom – Gap’s brand value hotel operators and developers anxious to increase product access, and has fallen 20% and Levi’s has Service is even to meet the needs of demanding, well- partnerships to get the products onto the McDonald’s is poised to stretch its brand and dropped out of the top 100 – harder for consum- heeled consumers. shelves have all enabled brands to get in introduce premium coffee bars with lower some apparel brands like ers to trade off than front of all consumers. price points across the US, an interesting Zara and H&M are thriving product quality. Partnership with big name fashion icons is move given predictions of a production deficit by having streamlined the current favorite. We’ve known about Ritz- In response, consumers are being more selec- in global coffee markets and increasing prices operations and a Carlton’s association with Bulgari for some tive with their spending. Healthier foods have this year. But it’s still a clear challenge to the truly differentiated time, but this year we’ve seen Marriott hop become a major priority. Marketing focus has likes of Starbucks. Starbucks isn’t sitting still proposition. into bed with Ian Schrager to create the new shifted towards the healthier products in a however, and has introduced breakfast sand- Edition boutique hotel. Armani also opened portfolio in an attempt to bolster credentials. wiches in a bid to connect with the eating its first hotel at the start of 2008 in a venture This is also backed up with real product devel- habits of its customers. The question remains: supported by Emaar Hotels in Dubai. Other opment, as the big brands follow the success is Starbucks diluting their brand by going too entrants into the sector, such as Ikea, and of niche players in this area. As well as leading far? Store closings and decreased sales seem even the rapper, Jay-Z (under J Hotels), con- to acquisitions, the quest for new, differenti- to indicate so. firm that hospitality is a natural stretch for ated products, formulations, and formats has lifestyle brands. led many companies to increase their research In an interesting aside to the health craze, and development budgets. brands like McDonald’s and KFC are planning The result, of course, is an increasingly aggressive expansion into emerging markets. aggressive market in which establishing new In addition to reactive measures at home, all China and India are especially attractive given brands is becoming more difficult. That’s the brands featured have pushed hard in over- their growth potential. on top of tougher economic conditions in seas markets.48 Best Global Brands 2008 Best Global Brands 2008 49
  • 27. Smirnoff has been especially quick off the Even so, concerns over the credibility of the Despite reduced consumer confidence, Overall, the sector is facing a knotty conun- mark, equating healthier drinks with a drive green theme still shadow the sector. The big some credit card brands have prospered. drum. Companies must manage theirBeverages to boost sales among women. The release of boys are responding by shining their light else- American Express has reinforced its leader- brands more carefully than ever to build value. Personal careTop of the pops the lower-calorie Smirnoff Ice Light alcopop exemplifies its diversified product range and where in an effort to maintain favorable brand opinion. Sport continues to offer the required ship position with co-branding initiatives with luxury brands. It’s still the credit card to be But in order to embrace the full potential of the internet, they must accept that control of Substance + style = value is marketed as an alternative to light beer halo: GE chose the Olympics, and Philips is seen with. Visa enters the top 100 for the first their most valuable asset for women. It’s a strategy that certain other, sponsoring the Williams F1 team. time this year, benefiting from huge increases will diminish. more male-focused brands in this sector could in consumer spending in developing countries.Developments in the beverage industry do well to consider. The tendency to use plastic over cash to make Which is more important: style or sub-have focused on product, packaging, and payments in the developed world has also stance? In the last year we’ve seencustomer engagement, where brands have Promoting healthier products is just part of Financial services helped. Energy increased activity from brands keen tomade considerable advances. reveal their true depth to consumers. When a continued focus on reputation-building. “Drink responsibly” has been the underlying Crisis, what crisis? Old versus new it comes to personal care, it’s clear style isThe well-documented concerns over obesity mantra in this sector for some years now, but now nothing without substance.continue to persuade brands to develop health- the last year has seen a renewed focus on con- Mediaier options. We’ve seen a rise in the number of Sustainability is a central theme. Withwellbeing drinks with dietary supplements like trol and prevention for brand owners wanting to build trust. And they’ve extended their There are no prizes for guessing the Greater than the sum of When it comes to oil prices, it seems the consumer expectations – as well as demandwater with vitamins on offer. responsibility to the environment, introduc- dominant theme in financial services. its parts? only way is up. So the usual concerns about – for environmentally sensitive products on ing recyclable bottles and packaging to keep It’s virtually impossible to find any editorial the use of carbon and oil energies versus the increase, brands are responding withNo industry escapes the need for green. If we greener-minded consumers keen. which doesn’t mention the US credit crisis renewable sources have been brought into more eco-friendly ingredients and packaging.are to drink from plastic containers, they must and its global impact. But while no brand even sharper focus. L’Oréal is leading the way, continuallybe recycled. Bottles with a “waistline” that Both Smirnoff and Moët & Chandon have has come away completely unscathed on reducing the weight of its packaging and As the sector grows ever more complex,supposedly use less plastic have emerged. found innovative approaches to communicat- account of the interdependent nature of The big players have realized that brand is increasing the use of recyclable materials. global media brands are finding it increas-The consumer jury is still out as to whether ing their brand. If you’ve got a good story, the industry, some have weathered the the best way to communicate their global But others are beginning to follow. Kleenex ingly difficult to achieve the simplicity theythis is a credible environmental packaging you’ve got to find a better way of telling it, storm significantly better than others. strategies. Greener and safer are the favored recently launched a premium facial tissue need to cut through to consumers and buildsolution or a marketing gimmick. Water which these days means using the internet. themes, with BP making the most of its made with recycled fibers. meaningful relationships. There’s no short-brands SEI and Fred Water have differentiated Smirnoff, in particular, has created a more In this climate, prudence is valued. Goldman investments in renewable energies in the age of evidence: multiplatform technology,themselves with a flask-shaped bottle. experiential way of sharing its heritage using Sachs continues to live up to its reputation hope it offsets safety concerns in the US after The high cost of energy and raw materials has proliferation of media channels, the con- blogs, short films, and other media to show it as a leader, remaining relatively unfazed as problems in Alaska and Texas. dogged the industry, so companies have been tinued rise of the internet, devaluation ofNewsflash: people are spending more time on can connect with the internet generation. its fellow firms have announced write-down looking for new areas of growth. Many are content through piracy, free access to sitesthe internet, so it makes sense that beverage after write-down. In fact, it has strengthened But as economies around the world continue in the process of launching new products in such as YouTube, and the growing diversitycompanies are using that channel to connect its brand in relative terms because peers have to weaken, energy companies will need emerging markets, with a particular focus on of consumer tastes across the world. Allwith them. Packaging and engagement have struggled so much. Citi has taken a particu- to manage other parts of their PR more male grooming and products aimed at older this translates to fragmented market seg-aligned absolutely at Coke, which invites Diversified larly bad beating, reeling from internal power ments eroding brand value. effectively to maintain their reputations. consumers. Avon has made slow but steadyconsumers to design their own label. When struggles, debating over the sustainability of Enormous profits at the expense of consumers progress in markets such as China, whilePepsi launched its new product, Tava, with For the greener good its model, and huge losses. is one message that is unlikely to wear well L’Oréal and Gillette have seen more rapid sales In an effort to make sense of the chaos – or ata campaign aimed at 35–49 year-olds, it did into next year. increases. least stand out from it – brands are investingso entirely online. Blogs, and widgets like But the damage is self-inflicted. What started heavily. Through significant research and NPD,the Coke Tag, and social networking sites out as a business issue for banks has become Of course, style still plays a critical role in this they’re refocusing on the needs of their cus-like Sprite Yard are the preferred method of Demand for environmental solutions a brand issue: if you can’t manage your assets sector. Using celebrities to endorse products is tomers. It’s impossible to ignore the growingbuilding communities of beverage buddies is playing a crucial role in the sector. A properly, how do you expect people to trust more popular than ever. The message behind importance of mobile devices for consumersonline. This is Drink 2.0 – make it social, make general need for improved energy efficiency you? The reputational damage was not Gillette’s Champions Program with Henry, hungry for up-to-the-minute information. It’sit viral, and give people a place to be heard. has taken hold, sparking a rise in green contained just to the investment banking Federer, and Woods is blunt, but the fit of the been clear for some time that the internet is technologies. Some brands are already operations. Customers lost trust in the brands brand with these celebrities is razor sharp. the future for the media sector. The merger making the most of the opportunity and this carried over into other areas of the between Thomson and Reuters has created to grow positive perceptions. GE’s business, especially private banking, whereAlcohol Ecomagination initiative is a case in point, trust and relationships are the keys to success. opportunities to offer new services in mobile devices and data management. At the sameToasting good health having done wonders for the company’s reputation as an innovator in sustainability. Moving forward, consumers will seek firms who can substantiate their reassuring overtures. time, MTV is developing mobile TV in partner- ship with SFR in France, as well as a raft of new initiatives with other brands. Emerging markets and developing countries Trusted brands have been able to gain a are driving up demand for agricultural greater share of new business in these turbu-It was only a matter of time before people’s We’ve also seen media brands turn to other, products and infrastructure. The appetite lent times. Barclays, one of the UK’s leadingobsession with improved health hit the more established methods of increasing pres- appears insatiable, dominating this part – and oldest – retail banks, is perceived as aalcohol sector. Like we’ve seen elsewhere, ence. Both Thomson Reuters and MTV have of the sector. In an effort to enhance their relative safe-haven. It has made significantconsumers are searching for healthier expanded into China, India, and the Middle sustainability credentials, both John Deere gains from the collapse of UK bank Northernproducts and the big brands are responding East. And there’s been an increase in spend- and Caterpillar are increasingly supporting Rock, collecting new customers in search ofwith diet beers and low-calorie alcopops. ing on advertising, although a question mark cultural, educational, and environmental security. And insurance firms have managed hangs over the effectiveness of traditional projects in local communities. to avoid drastic losses through judicious “one direction” communications in the context brand management. After all, it’s not of the internet and its user generated content. their business models that are flawed.50 Best Global Brands 2008 Best Global Brands 2008 51
  • 28. The business purpose Setting performance metrics for Financing projects and businesses Providing investment advisory Stocks of controlling purposes The attention of Increasingly companies use intellectual prop- companies with strong brands tend to be the marketing management has to be focused erty rights such as brands as collateral to better performers on the stock market. Thesefor brand valuation on value creation. The value of a brand is a obtain debt financing. One option is securiti- days, it is important for analysts and investors meaningful parameter to establish financial zation of the brand asset. Securitization is a to understand the brand as it is often the key performance measurements and serves process that allows companies to raise loans value driver of the business. Brand valuation as a performance indicator for various in anticipation of future cash. Mostly the debt helps to identify the potential market out-by Nik Stucky controlling purposes. These key performance indicators have to be based directly on the economic function of the brand and need to be integrated into an all-around performance capital is secured by brand-related royalties or, in some cases, by the sheer value of the brand. The key benefits to this are the reduction of capital cost and that this transaction is the performers by ranking the stocks of a defined universe by brand value, brand strength, and several other brand-related criteria. A tested quantitative financial modeling helps to measurement system of the company. The balance sheet. The company’s finance can be weight these parameters. The interaction of purpose of performance measurement is to secured in a similar fashion through sales and these criteria are needed to select the stocks Brands are part of the capital of a business activities contribute to the company. The link brand management performance with lease-back of brands. Both schemes can be that lead to a portfolio with the strongest and, as such, they can be created, bought, assessment reveals the brand’s value drivers the strategic goals and the financial success of pursued by companies, which use self-created financial performance. Brand valuation sold, managed, and exploited in the same way and quantifies its contribution. Brand valua- the company. or acquired brands to expand success through provides a tool which can be implemented by as other business assets. With the emergence tion provides a way of focusing management’s acquiring other brands. These transactions are investors fund managers and assets mangers. of the global economy and increasing attention on these value drivers and aiming Defining transfer prices in tax related off the balance sheet. Brand valuation provides competition, brands and brand management the marketing activities at brand value cre- issues Brand valuation is key to defining the insight into the value, as well as the risk Legitimizing brand investments and have become a core element of corporate ation. The assessment also provides a detailed defendable arm’s length royalty rates when of the transaction, while also checking on the internal business case In many industry policy. Against this backdrop, assessment of insight into the brand’s contribution to the establishing an internal licensing program liquidity of the asset. sectors, branding is still a much undervalued brand value is gaining in relevance. Company company’s risk profile. between parent and subsidiary companies. issue and often perceived as a marketing gim- acquisitions occur with increasing frequency. Licensing can bring a range of financial, legal, Defining the royalty rates in third party mick belonging to the world of fast moving This, together with keener competition, Brand valuation creates added value for many and operative benefits. Because the incoming licensing agreements Brand valuation consumer goods. Convincing the company’s means that ongoing reporting, controlling stakeholders: public and social affairs, risk royalty stream is taxed at lower rates if the provides fair and robust brand royalty rates management and other stakeholders that a and monitoring of brand value development management, investor relations, credit rating brand is domiciled in a low-tax country. for optimal exploitation of the brand asset brand contributes to the value and the busi- now have a central function in determining agencies, controlling, taxes, marketing, And yet, the benefits of an internal licensing through its license of the brand to third ness is often the first step to professional and business success. strategic corporate development, mergers scheme are not only financial in nature. An parties. Our approach determines the fair systematic brand management. and acquisitions, and business development. internal licensing scheme can increase the split of the economic benefit from the brand Brand valuation is a complex process and The context in which brand valuation is legal protection of the asset, increase the as well as the share of risk and cost between Supporting risk management As these risks calls for an understanding of the individual used is multifaceted and hard to generalize, ability and leverage to manage the asset licensee and licensor. This analysis reveal the are mostly non-transferable, companies have character of a brand. Experience and expertise but can be looked at through the lens of across countries and divisions, establish brand most appropriate royalty rates for the use of to establish sophisticated risk monitoring in branding are key prerequisites, especially the business goals. management as a profit center and create a the brand. Our brand royalty rates apply to systems and action plans to mitigate such for the correct interpretation of input and brand-minded organization. all relevant commercial situations, including risks. Brand-related risk is still not sufficiently output data. Nevertheless, the value of a Extending the business based on the co-branding and licensing into new categories understood and hard for most companies brand is based on identifiable economic brand’s equity Brand valuation identifies Reporting on the value of the brand as well as geographical markets. to grasp. With the emergence of new and principles and can therefore be reliably the value contribution of the brand asset to Communication with investors and financial “soft” forms of liabilities such as reputation or assessed. The Interbrand method com- shareholder value and makes it comparable analysts is facilitated through the analysis Providing a fair opinion Brand valuation can brand, brand valuation and particularly brand bines formulas and procedures that to other intangible and tangible company and quantifying of the brand value. The intel- serve as a basis for negotiation if the ownership risk evaluation become critical to company are accepted as standards in general assets. Often the brand is the most valuable lectual capital statement is a management of a brand changes through, merger, acquisi- risk managers. Risk management is always business management, financial theory asset of the business and offers the biggest tool and an information source where employ- tion, or joint ventures. The current value, as tightly connected with the value, that is at and marketing doctrine. Because input opportunity to grow by extending the busi- ees, customers, co-operative partners, and well as the potential value of the brand can risk – therefore, brand valuation is the right data is usually obtained from primary ness activities under the brand. In this case, investors can see how a company generates be evaluated in the context of the new owner. tool with which to address the concerns of the sources, the brand values derived from it is key to understand the brand’s equity and value for them. Brand-related value reporting Furthermore, brand valuation ascertains the Chief Risk Officer. it are objective and highly reliable. The how this can be developed and extended into makes sense in the context of a full disclosure contribution that a brand offers to a joint ven- assessment process is based on a clear new business fields. of the intangible asset of the company and a tures. It allows for the joint venture’s share of concept of the brand’s economic func- corporate culture that is used to manage in profits, investment requests, and shareholding. tions. Brand valuation thus dovetails Assessing the economic impact on branding line with brand performance measurements. Biography: ® smoothly with established corporate decisions Brand valuation is an indispens- The statements usually include: the relevance Building the fundament in brand-related Nik Stucky is the Global strategic considerations and proce- able basis for successful brand management. (quantified) of the brand to the business, the litigations Brand valuation by Interbrand can Practice Leader of dures. In this way, value-oriented Its ultimate aim is to increase the value of a link between branding and corporate strat- assist in measuring the damage caused by Interbrand’s Brand brand management becomes an inte- company. Any decision to change a brand’s egy, the measures to track the performance brand law infringement and is recognized as a Valuation services. Since gral part of value-oriented corporate fundamentals – may it be its architecture, its of the asset, and the actions to sustain and support in claims for damages. As the damage joining the company management. color, or its strategic focus – will have long- grow the brand’s value. The goals of the com- is often incurred in a partial aspect of a brand’s in May of 1991, Nik term implications on the brand’s economic munication are: to create awareness for the total value, in a specific geographic region, has been instrumental The essential benefit from brand valu- contribution to the business. The upside importance of the brand to all stakeholders; or during a certain time period, it becomes in integrating brand ation is that it links branding decisions potential and the downside risks of these to establish commitment regarding measur- crucial to assess the damage of the brand’s valuation into the overall services of Interbrand, as with the resulting economic benefit. decisions can be analyzed and quantified with ing and managing the asset; and to voluntarily equity and translate it into a monetary value. well as taking part in valuation projects, publications, As such, brand valuation is the key the help of sophisticated prognostic models, fulfill additional information expectation. In a legal case, the fact-based arguments and lectures, and broadcasting on the topic of brand Great unbranded beer Same great taste, higher insight to bridge between creating and which can express their impact in terms of logical interlinking of facts become particularly valuation. price, more preferred managing a brand and the value these their financial implications. important for success.52 Best Global Brands 2008 Best Global Brands 2008 53
  • 29. The impact of risk on In the case of a brand like Exxon, ensuring a differentiated brand over time requires a Perceived high brand Managing and valuing tracking system and proactive management risk potentially destroys brand riskbrand value of other operational risk factors, such as shareholder value failed internal processes, people, or systems. In short, the lower the role brand has in gen- erating revenues, the higher the potentialby Jean-Baptiste Danet A brand that is legitimately noted on the The interest of brand management through operational risk for those branded revenues. The Exxon brand has a low role in influencing demand and generating revenue. However,& Valérie Herdlicka balance sheet may even show that an the risk management framework is to make a it is definitely in a very comfortable position intangible asset is the single most important brand indispensable, to be built and supported to face sudden exposures that affect the element that the CEO has to manage. in a most financially rewarding manner and to entire market. The reason is that the brand is Therefore, new dimensions start to be keep its competitive position over time. managed with a pure business perspective, integrated into the science of branding: focusing management to consider operational brand risk management is essential for a The analysis of brand value helps management and market risk rather than direct brand- company to survive and prosper. understand the degree to which the brand is related risk factors. This is especially true for an intangible driver of demand. Identifying companies where the brand plays a minor A strong brand creates current and future the key drivers that stimulate the preferred role and brand culture is low. A correct under- demand and ensures operational freedom. choice of one brand helps to define the part of standing of brand exposure to those types of How management of From a customer perspective, a brand is revenues that are directly attributable to the risk allows management to anticipate poten- brand value creates the company’s differentiator and creates preference on the market. It limits the brand. This means you would understand the extent of the loss if the brand was no longer tial risk factors that could weaken the brand’s relative position or its future development in shareholder value product’s or service’s substitutability on the an asset of the business. The loss of the Nike the market. market and leads to a higher market share and brand, for example, would be disastrous for a price premium. From a cost structure point the group, as a predominant proportion of The determination of brand value at risk is of view, a strong brand equals negotiation the Economic Earnings are attributable to the the analysis of the risk-adjusted sum of earn- power with suppliers and other stakeholders. brand. However, the ability to earn a profit in ings that will be generated solely from the For decades, industrialists considered first and A strong brand also lowers the perceived risk excess of a base return is only partly a function brand itself in the future. Optimizing the role foremost the tangible assets of a company to for the investment community and it improves of branding for an industrial leader like of the brand in the customer’s perception and be its principal source of value. a company’s access to capital and the cost of Exxon, which depends much more on other anticipating future potential operational risk capital employed. The higher the perceived intangibles, such as patents, technologies, factors allows management to establish a However, notorious acquisitions over the risk, the higher the required rate of return. and databases. strategy which surpasses the purely financial last decades have proven the opposite: What matters here is the risk perception of aspect of the brand to make it Nestlé bought Buitoni for 35 times the profit, investors. And the brand undoubtedly has an a tool for managing wealth. Adidas bought “Salomon Worldwide” for impact on this risk perception.Biography: Jean-Baptiste Danet Biography: Valérie Herdlicka is 37.6 times the net consolidated profit. Theis the Chief Executive Officer of the Brand Valuation Manager in increasing discrepancies between the market Translated in financial terms, this means thatInterbrand in Europe. With extensive France and has dedicated her career capitalizations and the prices that are paid at each brand has the capacity to add value to All brands have the capacityexperience in marketing, Jean- to the study of a brand’s impact the time of acquisitions show that intangibles the current business and to secure futureBaptiste has been successfully on the creation of shareholder have been recognized since the late 1980s, earnings. This is true for brands in direct rela-managing clients, dating back to his value. Having studied at the French as key values for a company. Looking for to add value to their current tion with the end user, as well as for brandsdays as the Marketing Director for Business School of La Rochelle, she transparency behind these outstanding in a purely B2B environment. Brands forPhilips Consumer Electronics. participated in a one-year research values, international financial reporting every type of company are essential drivers of businesses and secure future project on the development of a standards have obligated companies to shareholder value and this trend is constantly brand valuation methodology. recognize all acquired intangibles on the increasing. Brand-related risk is thus growing Today, Valérie continues to find new, balance sheet since 2005. earnings. proportionally. creative, and financially rewarding answers to strategic issues by Thus, brands – always at the heart of business combining the analysis of brand success – not only need to be clearly and truly value creation with Interbrand’s valued but also need to be understood as the creative and strategic thinking. key variables that create shareholder value.54 Best Global Brands 2008 Best Global Brands 2008 55
  • 30. The future of A new paradigm Agent-based modeling has already enabled: Many marketers today unnecessarily constrain themselves by saying, “You can only optimize what you know.” With •  US healthcare provider to accurately predict the Afuture-proofing brand today’s consumers riding on waves of unobserved and hard adoption of a new plan among seniors to track patterns, new tools are needed to provide a future- looking perspective on brand-related value creation. The •  global sports organization to launch a rebranding A breakthrough in measurement will come in agent-based campaign that creates free buzzinvestments modeling (ABM). An agent-based model is a computational model for simulating the actions and interactions of •  automotive company to effectively reduce incentives An autonomous individuals in a network. It is capable of assessing while growing market shareby Greg Silverman an individual’s effects on the system as a whole by combining elements of game theory, complex systems, emergence, •  major consumer goods retailer to lower store size 30% A computational sociology, multi-agent systems, and and increase sales evolutionary programming. Monte Carlo methods are used to introduce randomness. The future Media mix optimization drives cost management, which can The models simulate the simultaneous operations of help “meet the street,” but often sacrifices investment in new multiple agents, in an attempt to recreate and predict the revenue streams. Discrete choice modelling can evaluate Biography: Greg Silverman is the The web search definition is important because it suggests actions of complex phenomena. The process arises out of changes in the know. Although both offer insights into brand, Global Practice Leader of Analytics. that brands are competing with each other for consumers. a multiplicity of relatively simple interactions. The tool not neither delivers on the imagination required to generate With over 20 years of experience When focusing on competition, the branding industry only captures the efficiency requirements of media models, growth for brands. In the end, revenue sustainability is the in the business, Greg and his team traditionally looks to the role of the brand, as it is a measure of but also accounts for emerging forms of behavior that hallmark of a good brand. Its strength lies in its ability to measure brand investment to show influence and compares the brand against other decision fuel innovation. Currently, it is being applied to forward- protect future earnings during down markets and unlock value in advance whether an idea has the criteria. This measure of influence is capitalized on when a looking business decisions. where brand can play a role. potential to earn brand equity. brand’s equity unlocks value by connecting with end-users. He has done work on an extensive Unlocked value is brand strength – the ability to protect list of clients that boast some of the future revenue. There is no better time than now for biggest brand names in the world, including AT&T, Bank of America, The new order Lexus, and Gillette. This relatively static picture of competition and branding has dominated the landscape for decades. However, over the last decade, this framework has broken down with the increasing strong brands to understand modelsUnderstanding brand today dominance of social networks. Social networks are moving the branding debate from the traditional and hierarchical to the latent and networked. As such, the long-held view of that uncover the hidden behaviorBefore defining the way a brand works, it is necessary tounderstand the role of the brand and brand strength. The role competition and branding no longer works because the forces behind the collective value of all social networks have changed. behind these new revenue streams.of brand explains what percentage of any purchase decision In short, our customers’ culture is trumping our strategy.is attributable to the brand. It is a measure of the influencebrand has on customer demand. This understanding informs Along with the declining relevance of old strategy models,decision-makers on how the brand is doing today. Brand we are witnessing a decline in the impact of the measuresstrength, on the other hand, is a series of benchmarks that attached to them. The greatest advance in the past decademeasure a brand’s ability to secure ongoing customer demand has been in the realm of choice-based research and marketing(choice, repurchase, retention). mix models that measure change in a limited number of issues in a marketplace. Marketing mix models are rooted in the Seemingly disparate groups of information become value creating segmentsTogether, the role of brand and brand strength provide manag- conventional wisdom that, if you track spending and sales -ers with the knowledge to understand the future outcomes simultaneously controlling for all other variables - then youof marketing decisions made today. When incorporated with can clearly identify what is optimal. A question still remains:current computing and analytics capabilities, the combina- What company can actually control for all the variability oftion is no longer just informed speculation. Rather, it offers the market? Media mix optimization has clearly improvedmeasurable scenarios that can provide insights that lead to efficiency, but the process is backward-looking. Additionally,courageous decisions. the rigid data requirements do not accommodate the most important factor: emergent social network influences are notIf you type ”brand management” in the Google search box simple to track.and follow the link to the first definition available, this iswhat appears: “Branding seeks to distinguish your company, Here’s a common example: Apple’s new iPhone specs wereproduct or service from the competition and create a lasting posted among friends on Facebook and the specs receivedimpression in your prospect’s mind.“ (1000ventures.com) poor feedback, which magnified critics’ reviews. How canGiven the relevancy scores that Google is presumed to obtain – Apple account for word of mouth that could change the prod-90% – it is safe to assume that this definition is the common uct launch environment? The challenge now is to predict theunderstanding of brand management. unpredictable in a new market environment.56 Best Global Brands 2008 Best Global Brands 2008 57
  • 31. Planning your touchpoints Classic touchpoint management mistakes Fact-based touchpoint strategy Making bolder, fact- based investmentto accelerate profit decisionsby Rune Gustafson 01 Targeting too many customer segments Businesses often try to appeal to the widest The only way to develop a touchpoint strategy that will increase business performance The InterContinental Executive Board boldly decided to invest heavily in its staff as its possible audience. But without defining a (and avoid these four mistakes) is with a fact- primary touchpoint, with the statistical narrow, attitudinally based audience, the based, analytical approach. knowledge that this would deliver the highest touchpoint experience will be fragmented and ROI. In fact, it would provide almost double any other stakeholder) in many different ways, “Use your good judgment in all situations.” often results in conflicting perceptions. InterContinental Hotels is an excellent the ROI compared to any other touchpoint. be it through advertising, product, packaging, example of a traditional brand that has Had it made many of the classic touchpoint and its people. Each contact or touchpoint This is followed by, “There are no additional 02 Dilution of the brand investment across re-invigorated itself by developing a new mistakes outlined above and invested too builds up an experience that endures well rules.” Nordstrom recognizes that building too many touchpoints brand positioning and executing it perfectly little in too many touchpoints with too many beyond the product or service. It defines and customer relationships is done one cus- There are literally hundreds of possible touch- by embedding it in the customer experience customer segments, it would certainly not reinforces the perceptions that customers tomer at a time. Nordstrom shares fantastic points and no brand in the world has the time and offer. It used a sophisticated statistical have achieved such strong business results. have about the brand. Conversely, it is equally relationship-building stories throughout the or resources to deliver each contact to the Return on Investment (ROI) model designed InterContinental’s brand has revived in the powerful at defining negative perceptions of organization to illustrate and train everyone highest level. to identify where and how to invest in the year following the 2006 rebrand. There was a brand. about what its service ethos of “going the customer experience. First, it identified a an increase in positive brand perception of extra mile” means in practice. For example, 03 Competing on basic factors only narrow target audience that had a clear 10% and an increase in revenue per room of For service businesses, touchpoints are often a customer at its Chicago store was searching In an increasingly competitive environment, attitudinal preference for luxury travel 12% (source: IHG.com). The success of this time-based and are perishable experiences for a black bow tie: classic benchmarking activities ensure that experiences that enriched their life and rebranding was the ability of the business to that increase reputation risks. But touch­ brands copy each others’ differentiators provided them with the additional social put their brand positioning, “In the Know,” at points also provide a golden opportunity to “I was going to a black-tie party, and resulting in a zero sum game. They are mistak- currency of local knowledge and stories. the heart of their operations and translate this create a powerful moment of intimacy needed a ready-made bow tie. Nordstrom’s enly all trying to compete on best practices Then, InterContinental cleverly used the into a valuable touchpoint. through staff-customer interactions. Shifting didn’t stock one, but the guy there said, rather than boldly challenging convention. statistical model to identify which specific these perceptions is the crucial foundation to “If you have ten minutes, how about I Those that do, like Virgin or Disney, have been parts of the customer experience truly drove In a world where consumers are bombardedBiography: Rune Gustafson is Chief staying closer to current customers and teach you how to tie one?” And, in the able to create an unassailable differentiation them to choose InterContinental and, as a by multiple messages every minute and inter-Executive Officer of Interbrand in engaging new customers to try your brand for middle of a busy Saturday afternoon, he did with their chosen target customers. result, strongly increased their satisfaction. nal investment is increasingly scarce, thereLondon. Rune leverages his extensive the first time. These deliver increased just that and got the sale. “I was happy, This provided the Executive Board with the is an unequivocal case to be made for drasti-experience in brand and retail revenues and margins that accelerate brand I recommend them to everyone, and I still 04 Relying on customer myths clear evidence of what drives revenues and cally reducing the number of touchpoints andpropositions to regularly contribute value and profitable growth for investors. tell the story ten years later.” to prioritize choices margin. It also identified areas of cost saving; investing strongly in ato publications and conferences The Best Global Brands demonstrate that they parts of the experience (and costs) that single touchpoint that accelerates brand valuethroughout the UK and Europe. Nordstrom targets a single touchpoint Clearly, the power of a great service ethos have the leadership mindset to make hard could be removed without affecting their and profitable growth. This naturally raises Nordstrom, the US retailer, has dominated its can generate sales, great relationships and choices and prioritize customer segments, customers satisfaction. the following critical questions for every CEO market though the service it delivers to its great word of mouth marketing. But the touchpoints and investments based on facts and CMO: core customers. It has proven that customers most important lesson marketers can learn rather than perceived wisdom. Its new positioning is the hotel brand that isWe continually observe that the most will pay a higher price for a superior service. from Nordstrom is that it invests primarily in “In the Know” and delivers exactly what their •  ow do you currently measure the ROI of Hsuccessful brands, especially the ones seen in In so doing, this helps to differentiate it from a single touchpoint. Of course, its stores are guests’ value without the things they don’t your touchpoints?our Best Global Brands ranking, strive to put low-price discount brands (Nordstrom’s sales clean and well designed, but its focus is on the value. Guests benefit from the authentic,the brand at the heart of their business. per square foot are twice the industry staff-customer touchpoint. insider knowledge about the places they visit. •  Which touchpoints can you live without? average). The service differentiation is They are prepared to pay a premium (and stayThey understand that, by using the brand as delivered though the belief that, at all times, Every CEO and CMO knows that they musta central organizing principle, they can directevery single business function, from HR and the most important person in the entire business is the customer. It counter-intuitively invest in their brand’s experience. But the question that haunts them is: Which touch- Each contact more frequently) for gaining this social cur- rency and the priceless stories they could share •  Which touchpoint can you truly own that differentiates your brand?Distribution to Finance. In doing so, they are achieves this – not with a biblical service point is the driver of purchases and which or touchpoint with their family and friends. The challenge was to educate and motivate large numbers of •  Which touchpoint actually drives your builds up anable to deliver a truly holistic brand experi- manual – but with a single rule: ones are simply nice to have? Early thinking migrant or part-time staff employees to deliver profits?ence that runs through the organization and on touchpoints was based on satisfying each on this promise consistently around the world. experiencethen outwards, thus engaging the customer. contact to a better level than your competitor. It was a fundamental shift to move fromThe brand ultimately engages customers (or This approach is highly ineffective and reduces hiding the staff to making them the heroes and business performance because it follows four classic touchpoint management mistakes. which endures encouraging them to interact with guests. For employees, this new positioning was trans- well beyond lated into an insider knowledge program for staff. It used the phrase, “To you it’s just a walk the product to work; to our guest it’s a great view of local or service. culture” to educate and empower all their staff to share their local knowledge with guests.58 Best Global Brands 2008 Best Global Brands 2008 59
  • 32. Building brands in (either as a workplace or a place to do business), with Brazilian products, services and brands. 01 How are consumers in emerging mar- 02 Are customer touchpoints different in kets different from developed markets? emerging markets? If so, how?emerging markets Iain Ellwood, India: The Indian market has seen a number of categories and consumer groups leapfrog the expected development path. For example, fixed line telephony hasby Interbrand’s leaders in Brazil, Nicola Stanisch, Russia: A client told me largely stagnated, as it’s simpler and quicker to Nicola: In Russia, I see only one difference: once: “We are like children that have been get a prepaid mobile phone from a store than there are no established structures as there looking through the windows of a sweet shop go through the lengthy and complex process are in mature markets. The mobile phone shopChina, India and Russia for years. Now we are allowed to go inside of setting up a line into your home with a easily starts selling loans or integrating a travel and, although we know it is not good for us in full service contract. Mobile phone usage is agency. There is no experience of “what a bank the end, we can’t stop eating and trying all the increasing by over 5 million new customers is” and, therefore, a lack of clarity about the sweets in there.” The market is hungry for new every single month. There are now more than touchpoints. The presence of security person- things. Russian consumers are willing to 25 million mobile phone users in India. nel is pervasive in Russia and some shopping experiment and try out what’s new and excit- experiences start with a security check – again, ing rather than seeking stability or reliability India has a very wide range of socio-economic not your best brand touchpoint experience.Aléjandro Pinedo, Nicola Stanisch, Iain Ellwood, in brands. Brands are a means of showing off, groups from billionaires (78 at the moment) to demonstrate the financial success of the Aléjandro: In Brazil, the traditional touch-and Jonathan Chajet share their perspective on the newly wealthy. Particularly in service areas to those that live on less than one dollar a day (approximately 350 million people). But points are still the main way to connect withopportunities and challenges facing brands like banking and insurance, brands are seen as despite this diversity, our research confirms consumers: retail, open network TV, and inexperienced or lacking trust, and are driving that these people largely share aspirations. It radio. The penetration of open TV is amazingin developing economies. consumers to prefer non-Russian brands. is not that they have different aspirations, but and will be the main mass media vehicle for just that they are further away from achieving awhile. The same happens with radio broad- Aléjandro Pinedo, Brazil: Brazil used to be the those: they are all looking up at the stars, just casting, especially outside of larger urban typical poor, underdeveloped “banana republic” some from the penthouse and some from the centers. Although everyone is excited about country. We focused on our own internal mar- roadside. new technologies, especially telecom and ket and, until the mid-1990s, were distant or internet, only a small portion of more sophis- closed to external products and brands. In the Jonathan Chajet, China: One of the most ticated, upper class and younger consumers last 12 years, with a more stabilized demo- striking differences between consumers in actually use these resources as branding cratic government (post-military control) Brazil China and their counterparts in the West is touchpoints. Having said that, we must con- has opened up to the international market. what motivates them to purchase. In devel- sider also that Brazil has approximately 120+ This process has even accelerated in the last oped markets, self-actualization is at the top million operational cell phones (should reach five years. Brazil’s economy is now stabilized of Maslow’s hierarchy of needs. In marketing about 140 million by the end of this year), but and growing at a rate of 5%+ per year and infla- terms, consumers seek brands that help them most of these are prepaid, used mainly for tion is under strict control and has been low for feel better about themselves. Hence, today’s calls and messaging, not for internet access or the past 10 years, which is also a rather new popularity of sports-utility vehicles and other communication purposes. development for consumers and companies. Timberland boots: “I may never get into theBiography: Aléjandro Pinedo has Biography: In addition to her 18 Biography: Iain Ellwood is the Head Biography: Jonathan Chajet is outdoors, but at least I feel like I could.” Iain: The most surprising touchpoint weak-been the Managing Director for years in branding, Interbrand’s of Strategy covering Interbrand’s Interbrand’s Managing Director in With economic stability and development, ness in India is the lack of organized retail. ThisInterbrand in Brazil since April 2006. Managing Director in Russia, Nicola business in India and the Middle East. China. His work delivers strategic consumers in Brazil have improved their eco- But in China, status seeking is at the top of is predicated on the lack of organized logisticsWith over 20 years of professional Stanisch, has experience in the With over 15 years of international solutions to clients’ global and nomic consumption levels, gaining access the pyramid. Group before individual, we and distribution. Or rather, because man-experience, Aléjandro has had the financial industry. The multi-lingual experience, including living and local branding issues. His expertise to new products and brands. About 20% of before me, needs of superiors before needs of power is so cheap, it is still economical to haveopportunity to work with valued Nicola has built valued relations working in Japan, Hong Kong, the lies in brand strategy, business the “D-class” consumers were upgraded to self – these values are the result of thousands an incredibly long and winding supply chain.brands such as Nike, Red Bull, in Croatia, Ukraine, and Russia, Netherlands, and the US, Iain has planning, market research, naming, “C-class,” and this represents about 40 million of years of social and family norms. In market- There are 7 million unorganized retail outletsand Mizun. His responsibilities and was one of the driving forces led highly effective engagements for and visual identity. He has helped people in Brazil. Brazilian companies have also ing terms, Chinese consumers seek brands in India, mostly small kiosk-sized places thatat Interbrand have been diverse, behind the decision to open the new clients including Mitsubishi, British enhance some of the world’s most discovered the international market and are that give them “face,” asking, “What does this sell a few bars of soap or shampoo each day.including brand valuation, strategy, Moscow office in March 2005. Airways, and UBS. recognizable brands, including now in need of brands to develop internation- brand make others think about me?” Hermès, They are local to such an extent that mostand brand identity for clients in Adobe, Bayer, Nestlé, and Lexus. ally, rather than just commodity products to Häagen Dazs and Johnnie Walker are extraor- middle class Indians will still ask their storeprojects ranging from financial be exported, which was the case in the past. dinarily popular in Asia – even if consumers keeper to select their goods or brands andservices to consumer goods rarely make the purchase for themselves. often have them delivered to their door.and petrochemicals. Brazilian consumers are more eager, excited and anxious (similar to Russia perhaps, like kids in Theoretically, as luxury goods become more By contrast, and entirely predictable in the a candy store) than developed market consum- democratized and consumers become more land of Bollywood, above-the-line communi- ers. There seems to be a sense of urgency to accustomed to a higher standard of living, sta- cations, like advertising, PR and sponsorship participate in international markets. Brazilians tus seeking will diminish in importance in China. activity, are highly sophisticated and impact- are studying and preparing themselves to com- But in wealthier countries, such as Japan and ful. Their advertisements pump out huge raw pete abroad. Consumers and companies look to Korea, that have been modernized for decades, emotional energy, celebrity glamour, and China and India as the places with which they there is little evidence that this hierarchy is eye-popping vibrancy. They make western will have to compete to access more developed changing. So, for the time being, status seeking advertising look apologetic and diffident about markets, such as North America and Europe is the playground of modern branding in China. their product. This over-heated competitive60 Best Global Brands 2008 Best Global Brands 2008 61
  • 33. communications landscape makes for a con- Nicola: Russia has been an open market for Jonathan: Branding in China is beginning a advertising, retail design, and below-the-line Brazil should get rid of its “inferiority complex,”stant decibel and celebrity war. 18 years now, so it’s as though the maturity new chapter. No doubt, as local consumers communications. This will require Indian originating in the past, and compete 04 Should marketers approach brand- of the market is in a stage of adolescence. enjoy a higher standard of living, their brands to gain, not just superior marketing internationally at the same or a higher level as building differently in emerging markets?Jonathan: I am fascinated by the “leveling” The first communication service that entered appetite for brands will grow. Boardrooms capabilities, but also superior production facili- other high quality players in the market.effect that the internet has had on emerging was advertising. PR followed. Both claimed, on Wall Street and in the City are no longer ties and distribution partners. The consequencemarkets. The rise of the internet and global to a certain degree, that they also were doing asking when they will enter China, but of this is that Indian brands will have to invest, Jonathan: Historically, China’s economy hasentertainment is giving Chinese consumers branding. So the term is well known, but the rather how they will increase market share far more than previously, in their brands, both been dominated by large-scale state-owneda taste of Western lifestyles. Illegal copies of content and understanding is blurred. Nicola: Speed is crucial. It can be better (and earn better margins). For many, Asia strategically and tactically in the marketplace. enterprises with special advantages: protec-the latest James Bond thriller hit the streets to come out with an 80% solution quickly already represents a substantial portion of tion from competition, dominant marketof Shanghai less than 12 hours after the When it comes to creating and managing rather than work towards 100% but lose their revenue and profits. And local brands Nicola: During the 1990s, Russian brands were share, priority financing, and consumersimultaneous premiere in London, New York brands as valuable business assets, the momentum. But, due to the characteristically are getting much more savvy about how to extremely unpopular and almost only pur- recognition accumulated through a longand Tokyo. And so does Bond’s preferred brand interest is mainly on the “creation” part: new eager Russian consumer described above, compete against global competitors. chased due to economic necessity (for example, history. But several highly market-oriented,of vodka. Online social networks, camera- names, new logos, and new communication businesses should also focus on consistency, auto manufacturer, Lada). Parallel to the grow- competitive brands are growing in popularity.enabled mobile phones, and high-definition styles. Very few Russian brands demonstrate aligning all branding activities. A brand can Given the diversity across China, it’s hard ing self-confidence of the Russian people during These brands have taken the lead in manage-streaming media: each innovation is a window strong brand management capabilities. be introduced, or will stand out momentarily, to identify a common set of values and the past eight years, some brands in core indus- ment innovation and brand-building in theirinto what’s possible for even a dollar-a-day Western brands are perceived as being with one crazy activity but it can only be preferences that marketers can use to target tries (chocolate, liquor, transportation, heavy industry, including reorganizing their market-garment worker. stronger but there is little understanding grown and maintained with the ongoing and a pan-Chinese consumer. Western brands manufacturing) are gaining attraction by play- ing departments, such as appointing chief of what it takes to become that strong. In consistent recognizability of the brand, which still largely dominate the luxury landscape, ing the nationalistic card. These established and marketing officers, increasing brand-buildingBut like India, the majority of sales in China building a chain of experiences for Russian is then outstanding in itself. owning equities like “premium,” “high quality,” sometimes pre-revolutionary brands, along budgets, and tracking results.happen, not in gleaming shopping malls, but consumers, advertising is still dominating. and “innovative.” But for basic consumables, with some new Russian brands, understand thein local “mom and pop” shops that often serve Point of sale, for example, is largely neglected. Aléjandro: Brand strategy makes more are wealthy consumers in Shanghai so Russian soul and mentality. They show this by Sports brand Li-Ning is competing head-as the front half of the shop owner’s home. sense now in Brazil, as do internal brand different from their counterparts in Tokyo, using old Soviet or Tsarists’ symbols, playing to-head with world-renowned brands NikeThere is little room for product variety, and a Aléjandro: The maturity of the market in engagement and brand experience initiatives. New York, or Paris? In an age of intense with Russian literature or using Russian and Adidas in the Chinese market. Chinesebranded experience involves the scent from Brazil is quite young, with basic communica- Slowly (very slowly) brand owners realize national pride, our differences may be less national heroes in testimonials. It is problem- search expert Baidu has out-maneuveredtonight’s dinner and a micro-thin plastic bag tion activities still developing. Advertising that advertising is an important complement dramatic than most would readily admit. atic that “New Russia” has no symbols yet, the strong pressure from Google with betterto carry your purchase home. As a result, agencies have been the “brand builders” for a to brand-building, not the only necessary brands should develop a clear profile, despite localization, brand communication andbrands must rely exclusively on the promises long time and only recently have more sophis- initiative. Design has also gained more being Russian. understanding of the Chinese language.they make before the point of purchase. ticated branding strategies become relevant. importance, since the imported brands bring 05 In what ways can homegrown brands In 2006, Baidu’s market share rose to 60%, There are many new “non-media” activities an advanced and more sophisticated level of defend themselves against imported Aléjandro: Offering unique “provenance- winning the lead position in China’s market. gaining importance, especially in large urban the design element in their combo (packaging, brands entering their market? based” elements to our brands will help the Young and highly market-oriented compa-03 What is the state of maturity of brand- areas, such as São Paulo and Rio de Janeiro, communication, etc). Brazilian market to compete with imported nies, like Li-Ning and Baidu, are listeninging in your markets? but they are concentrated among only a small brands, while still showing foreign markets and carefully to the market, gradually accumu- percentage of brands targeted at more sophis- Iain: Indian businesses have always been international consumers that Brazil produces lating brand value, and taking their places ticated consumers. very good at incorporating new things into Iain: A surprising number of international high quality products and can brand them in a alongside China’s advantage-rich enterprises. their business and the same is true for Indian brands have not been able to crack the Indian sophisticated way. The traditional cheap andJonathan: Branding in China is still in its With economic stability, lower inflation levels, brands. They have an open and inquisitive market. The insight is that, while Indians are stereotyped associations of Brazil – beach, During the early stages of development, manyinfancy stage. But brands are playing an more imported products, and local brands mindset that is pragmatic about the need to intellectually adaptable, they have a number of soccer, samba-dancing girls – do not actually Chinese brands spend their time studyingimportant social role for the Chinese consumer. entering the market, companies are beginning constantly adapt to rapidly changing markets physical and behavioral needs unique to their represent the best things the country can offer. the successful experience of foreign brands.In China, standing out can be difficult. Start to think more strategically about managing conditions. They learn eagerly and quickly market. Brands like Nokia have achieved the After years of practice, some Chinese brandswith 1.3 billion people. The majority of the their brands. Slowly but surely, they are start- from successful foreign brands, both interna- optimal balance of international and local Brazil has rich culture, design, architecture, have migrated from learning and following topopulation lives in some of the world’s largest ing to understand that you cannot position tionally and from those that have entered the needs because their mobile phone is both music, web design, classic and contemporary creating and exploring their own unique path.and most densely populated cities in the world and build a brand simply on television adver- Indian market. dustproof and has a built-in torch light (power arts and crafting, and should incorporate They are rooted in the soil of a vast market,– so personal space is at a premium. If you are tising alone. outages are frequent in India). Local brands these elements to its brands. The most searching for their own brand principles infresh out of university, you are competing with India is polarized in its understanding and can beat the foreign competition by owning important factor, however, is an internal one. China, and creating localized best practices.millions of other graduates for the same jobs. Iain: Branding is still largely about two things: appreciation of branding. Given that 50% of the customer. They will know more about theirAnd the intense pressure to put group building consistency of image and driving tac- the population will be under the age of 25 by customers, their lives, families and aspirationsbefore self discourages setting yourself apart tical sales. Indian brands are largely consistent 2010, there is a dramatic difference between One of the most striking than any foreigner can ever know. But theyfrom the crowd. in their use of color, language and simple visual young and old. This is also true of brand-build- must use this textural knowledge to drive their identity systems. Indians have always had a ing for these two audiences. The youthful men R&D with confidence. Otherwise they will suc-Brands give Chinese consumers the chance totalk about themselves without ever speaking rich art and visual heritage that is evident in their use of graphical and display visuals. and women expect First World brand experi- ences and are comfortable demanding them, cumb to the gloss of foreign competitors and feel that they must simply follow them. India is differences between consumers in China and their counterpartsa word. Young Chinese consumers are eager appreciating them and paying a little extra a proud nation and is rightfully recognizingto find ways to express themselves. They However, branding is still a very tactical for them. The older generation is more func- that its time as a BRIC country is finally com-accessorize their mobile phones, create elabo- activity focused on delivering short-term tionally biased in its needs and uses word of ing. They must harness that confidence torate online alter-egos, and incorporate fashionfrom around the world into a personal style sales. This means that there is very little strategic brand building activity across mouth predominantly. This intergenerational schism results in the parents being surprised deliver what they believe is right for Indians. in the West is what motivatesthat is uniquely their own. Brands, whetherglobal or local, are part of the color palette the customer experience. There is also no common understanding of the case for brand and confused by the behavior of their children. The quality level of brand communications must also increase dramatically. While, in the them to purchase.that Chinese consumers are using to decorate investment and the measurement of the past, most Indian companies used similar qual-their lives. return on that investment (ROI). ity materials, foreign brands have brought a much higher standard of production to their62 Best Global Brands 2008 Best Global Brands 2008 63
  • 34. Brands create nationsby Dr. Jürgen Häusler, PhD Biography: Dr. Jürgen Häusler, PhD is CEO Interbrand Central & Eastern SAP waldorf Europe. He has experience as a social scientist at the Max-Planck-Institute, a doctorate in social sciences, a degree in Business Administration, and has received research grants for work at M.I.T. Jürgen has applied his experience to successful endeavors at Interbrand. He is a Honorary Professor for Strategic Business Communication at the University of Leipzig.Brands create nations? Why do all, who among us still hasn’t realized that in the globalized economy – among other things – the epithet “Made in” nowe furrow our brows when we longer says much about where essential components of theread this sentence? Because product were actually manufactured. Who hasn’t observed that personnel are not always natives of the country the brandwe usually consider it a law of is tapping for its perceived benefits, even among the so-called premium brands in the airline industry? And by trusting innature that the cause-and-effect the alleged cultural traits of the entire population of a givenrelationship is the other way country in the first place, aren’t we ultimately expressing regrettable and obsolete prejudices?around: Nations create brands. This is the point where we can begin thinking of the cause-What do we mean by “Nations create brands?” Brands leverage and-effect relationship working in the other direction. So it’stheir origin to position themselves for more success on the not “the Germans” who stand for “Freude am Fahren” (indeed,global market. They try to exploit people’s impressions or quite the contrary, sometimes) but BMW, Mercedes andconvictions about the special strengths of entire nations. Porsche, who are spreading the news around the world thatPeople the world over believe a car “Made in Germany” must be Germany is the place to go for masculine Fahrfreude, exclusiveimbued with German engineering expertise. Putting on a suit appearance and technical perfection on four wheels. France“Made in Italy” turns normal mortals into passionate lovers. doesn’t make the best sparkling wine – it’s Veuve Clicquot thatAnd the luxurious “Swiss made” watch exudes the added aura ensures that Champagne enjoys a worldwide reputation forof exclusivity that its status-hungry wearer longs for. the most exclusive product in its category. “Made in Italy” is not the basis for the success of Italian menswear designers – on theIndeed, “Made in Switzerland” is a good example, having contrary, “Made by Armani, Ermenegildo Zegna or Brioni” givesdemonstrated considerable success in the past few years. Now “Made in Italy” its universal prestige. In other words, theseit’s not only marketing experts who know that “Swiss-ness” brands influence the perception of “their” nations.is on the upswing and has become the central thrust behindany number of brands in diverse sectors. The confidence that To be historically precise, one should note that this relativelyofferings, ranging from financial products and airline flights to new development may continue to grow in importance. Thecoffee makers and skin care products, will be perceived by theworld as attractive and desirable if they sport a white cross phenomenon reflects the rise in importance of brands them- selves over the past few decades. Our perception of the world People all over the world believe a car “Made in Germany”on a red background, preferably with the word “Swiss” in their is increasingly influenced by the constructs of brand-builders.name and a visual identity dominated by red and white, has For example, the Lange brand recently put the long-forgottenlong since spread across the borders of the Alpine nation. town of Glashütte back on the world map. And for most of the must be imbued with German world, the Samsung brand defines people’s image of SouthWhat’s actually going on in our heads when we buy into such Korea. Nations still fighting for one of the top positions amongnational, collective claims of quality in products and services the countries of the world would do well to keep an eye outprovided by individual companies? Evaluated in light ofcontemporary ideas about rational thought, not much. After for homegrown brands that have the potential to capture the world’s attention. After all: Brands create nations. engineering expertise.64 Best Global Brands 2008 Best Global Brands 2008 65
  • 35. The luxury kingdom fragment of the likes of Hermès and Chanel a consumer’s self-confidence derives from “horizontal” view, can luxury be reduced to a is now available to become part of the every- being discerning rather than merely rich. number of selected industries. day life of a wide segment of consumers, Subtle details, which add depth to the productby Manfredi Ricca these brands still preserve their iconic status experience, are not within the reach of the Over and beyond that, today’s reality resists through their exclusive core categories. They wealthy, but of the wealthy cognoscenti. the possibility of defining luxury as a category have succeeded in offering, at the same time, or a sector, then identifying brands that can the one-of-a-kind and the most widely sold This leads luxury brands to revert to crafts- fit the definition. On the contrary, brands worldwide – the former generating the cult, manship, detail, creativity, and innovative, competing in diverse industries are constantly the latter dispensing it to the masses. show-like advertising. Most flagship stores reshaping the category of luxury and testingImagine floating in a gravity-free chamber. today are about giving an insider’s story – a its boundaries.The laws of physics are the same as those we deal The other axis of diversification – geography – way of providing intellectual, not just eco- poses different questions. In today’s quickly nomic, exclusivity in the face of a numerically The iPhone may be the most recent examplewith in everyday life. Yet, they act with different changing world map, luxury brands are facing higher access to luxury. They are temples pro- of a (product) brand marketed by a non-luxuryintensities, ultimately creating a completely the challenge of playing two very different tecting the idol worshipped by the masses. brand, escaping the traditional definition of roles in two completely different contexts, a luxury brand. And yet, the iPhone createsdifferent environment. both of which are essential to their success Who’s in, who’s next desire, demand, and value, and growth. We have identified the laws ruling brand value just like a luxury brand. creation in the luxury kingdom. Yet, an increas- From showing... ingly difficult task is to define its boundaries. No doubt, we must expect the boundaries In many respects, this is what happens with access to luxury brands, but they can always In emerging economies, luxury brands are of the realm of luxury to continue to blur, luxury brands. While they obey most of the count on a stable core of loyalists. Because this quintessential to the fast-paced development When luxury adopts a “vertical” perspective, dissolve, and reshape around those brands principles of value creation that are common stable core typically belongs to the wealthiest of new, layered social structures. In countries it can no longer be employed as a synonym of that change the way people think about a to all brands, the extent to which these part of society, spending power remains virtu- like Russia and China, they are the perfect exclusivity. This concept is shattered by the category. Yet, no matter what, one thing principles apply is completely different – ally untouched by economic downturns. This answer to the quest for symbols that can shift from luxury as “the average consumption holds true – the economic rewards for those giving life to a kingdom apart. means that while luxury brands react quickly clearly legitimate and communicate one’s of above-average people” to the “above-aver- brands that get to fall under the luxury to a positive economic outlook, in times of belonging to the new élites. In the past, such age consumption of average people.” Nor, in a kingdom’s laws are clearly impressive. Unlike any other recession they can only fall so low. In a sum- status had to be declared within a single A kingdom, in fact, where the notions of mer dominated by signs and expectations of a society. Today, as emerging markets open demand and preference leave place to those of slowdown, major analysts have raised credit their doors to the global economy, luxury The rise of individualism has also led desire and unsubstitutability. Our Best Global ratings across the luxury industry. LuxuryBiography: Manfredi Ricca manages Brands study shows how it can play a promi- brands ensure a continuity of demand that, brands have the ultimate advantage of becoming universal symbols and statements of luxury to be about much more than simplyInterbrand’s office in Milan. In his nent role in virtually any competitive sector, from a financial perspective, translates into cosmopolitanism. The accelerated change and communicating one’s status to others.decade with Interbrand, he has gained in combination with other drivers of demand. lower risk and, ultimately, higher value. growth in these markets are intensifying thesignificant experience in the luxury In luxury, because brands are the reason why performance of brands like Prada, Ferrari andsector, providing advice and valuations consumers choose those goods and services, The second mechanism through which luxury Gucci, which are milking their iconic status into a number of outstanding global they are the engine of the entire business brands reduce business risk is diversification. comparatively new markets.brands. His articles, interviews and model. They are responsible for most of the While brand extension is a widespread phe-comments regularly appear on the value created by their companies. nomenon across virtually every category, ...to knowingmain Italian business and mainstream luxury brands enjoy an uncommon potential. The challenges that lay ahead for luxurymedia. Manfredi is also a frequent Luxury brands are the result of the pursuit Since they fulfill the most inspirational and brands in mature economies are more subtleconference speaker, as well as an MBA of excellence along one or more relevant self-reflective needs, they are less tied to the and complex. On the one hand, the concept ofand university lecturer. dimensions of a relevant product or service. sector they originate from: they tend to luxury and self-satisfaction itself has gradually In time, these brands influence behavior more embody a lifestyle rather than a category. So shifted and dematerialized. Luxury has now than factors like distribution, functionality, while brands like Prada and Bulgari historically changed from mere possession to something and even price. In fact, such is their power of built their reputation in very specific sectors, nearing more the concept of experience, attraction that these brands defy even the today they seem to know no boundary, their expanding its focus from products to the basic microeconomic relationship – up goes names having added value to diverse items wider pleasures of life. The age we live in is price, down goes demand. Luxury is where like mobile phones, fragrances or resorts. a lot more about collecting experiences – demand is virtually immune to price increases. think about the success of electronic storage The age of access supports of all kinds – rather than simply Brands for all seasons This extension potential should be handled possessing objects. All brands perform the economic function with great care, since at stake is the integ- of mitigating risk. But the degree to which rity of the business’s key asset. However, it On the other hand, the rise of individualism luxury brands achieve this is unmatched. This also offers the chance for these brands to has also led luxury to be about much more is reflected by these businesses’ well known connect with a wider public without losing than simply communicating one’s status to stability through swinging economic cycles. their status. Fragrances and accessories are others. In information and knowledge the best and most frequent examples: two obsessed societies, rather than simply Two key factors explain this. In the first place, ways in which luxury brands reach out to a delivering the economic capital, luxury brands luxury brands have a pulsating target. In times far broader customer base, providing acces- have to address one’s intellectual capital, too. of economic expansion, luxury brands will see sibility without losing the mystique given by There has to be a rationale behind a product new segments of consumers who can afford the yet-unaccessible main offering. While a that claims to be deluxe. In a mature economy,66 Best Global Brands 2008 Best Global Brands 2008 67
  • 36. It’s what’s on the inside Biography: Stephanie Colton is a Biography: Carolyn Ray is a Senior Senior Consultant on the Brand Director of Brand Engagement at Engagement team at Interbrand Interbrand in Toronto. Drawing on herthat counts in London. With her background 18-years-plus of strategic experience, in anthropology, knowledge Carolyn works with organizations to management, and organizational create strategic brand engagement change, she brings a diverse range programs that help their employeesby Stephanie Colton & of experiences to her assignments, having worked in the public and private sectors, in the UK and overseas. deliver on the promised brand experience, which requires her to be adept at a broad range of services.Carolyn RayEngaging your people todeliver an exceptionalbrand experience. success rests on their ability to work together, employers. Gallup recently published research and they’re positively evangelical about their Google has become “like a good friend.” Google with the onus on leadership and middle stating that 54% of US employees are not employer. This year Google ranked #1 for the people are passionate about connecting Brand in the blood managers, as well as the HR, marketing, and engaged in their jobs, while 17% are actively second year running in Fortune magazine’s people in a way that makes their lives better. communications teams. disengaged. Similarly, a Towers Perrin study “Best Companies to Work For” and was the This philosophy applies to everything it does. states that 38% of the global workforce is highest riser in its category for the third year However, the ultimate measure of success is disengaged from their work, and 41% are running in the Best Global Brands study. It is Goldman Sachs not just employee satisfaction. Brand-builders unsure if they like their jobs. clearly doing something right. The secret of its Best Global Brands (#38) are not just happy, they are deeply commit- success is a single-minded focus on reward- Fortune Best Companies to Work For (#9) ted. These are the people who go above and The effects of this can be catastrophic. ing the talented people that come to work for If you like brand value ranking lists, can we beyond, who ride out the tough times and who Disengagement is seriously bad for business. them – the 12,000-plus self-styled “Googlers.” Despite turbulence in the global markets, the suggest taking a moment to read the “Best actively recommend you to friends and family. investment bank, Goldman Sachs, reported Companies to Work For” results published by Engagement – defined here as the creation Gallup research indicates that disengaged In the “owner’s manual” for Google record sales and profits. Compensation and Fortune magazine this year? The highest risers of happy, committed, productive and loyal employees in the US cost employers over shareholders (the company gives stock benefits rose 23% from the previous year, to in our Best Global Brands study were also advocates – is not a “nice to have” but an essen- US$300 million per year in lost productivity. options to 99% of employees), the founders $20.19 billion. With around 25,000 employees praised for their ability to build a strong inter- tial pillar of any business strategy because According to a landmark study by the explain: “Our employees are everything. worldwide, this is a company well known for nal culture. These are the mighty “employer of the impact employees have on financial White House Office of Consumer Affairs in Google is organized around the ability to investing serious effort into attracting and brands” – companies like Google and Goldman performance. 1996, staff indifference is the number one attract and leverage the talent of exceptional retaining the right people. As a brand, it has Sachs. They are masters at work, adept at cause of customer defections, triggering up to technologists and business people. We a deep commitment to delivering their idea – applying their brand idea to the whole busi- 68% compared to just 14% for poor products have been lucky to recruit many creative, the confidence and trust of leadership. As an ness, both inside and out. Unlike their and service. Customers will put up with a lot, principled, and hard-working stars. We hope employer, it has a reputation for only hiring competitors, who see brand as a marketing The costs of but disengaged staff can very often be the to recruit many more in the future. We will the best, which in turn means that candidates exercise, these leaders have brand in the blood. It is part of their DNA and runs through disengagement final straw. reward and treat them well.” And it does. are already striving hard before they are hired. Each year Google mints a fresh round of The competition pales in comparison. everything they do, from hiring the right millionaires so, in one way, you can say Google people to recognizing and rewarding success. is practicing what it preaches. Its recruitment process embodies the brand. Learning from the Take its graduate recruitment site. Head and For highly evolved brands, this is a logical leaders The website is full of positive statements shoulders above the competition – powerful, Winning the war on progression. Employees are internal about Google’s people: “We love our direct – it is a perfect rendering of their brand customers – their needs must be mapped employees and we want them to know positioning. The interview process tells you talent and served, their loyalty, earned. Brand is the it.” Believing that “appreciation is the best that they are not just interested in your red thread, binding the workforce together motivation” they have created a uniquely academic or professional track record, they with customers in a common experience. The leaders in this field don’t just manage their inspiring workplace which people feel want to know what drives you and how well Connecting up like this leads to a positive, brands, they live and breathe them. proud to be part of. Annual ski trips, on-site networked you are. Once inside, they make focused and productive workforce. massage, yoga and daycare, seminars, culture an explicit mutual contract highlighting what With the looming talent war, companies who Google clubs, and community work all create an they will require from you and what you can use their unique brand to attract, retain, and This is second nature to only a small minority. Best Global Brands (#10) atmosphere of serious fun, proving that work expect in return. As a result, employees know grow good people are likely to come out on top. For the rest of us, staff engagement remains Fortune Best Companies to Work For 2008 (#1) and play are not mutually exclusive. On its they will not get job security, but are sure to Whereas, in the past, brand may have been a major issue. According to Interbrand’s own jobs pages, it lists the top ten reasons receive a good salary, the best resources, good the domain of the marketing team, the most Pride survey in 2007, on average, only 47% Search engines. Not exactly exciting, are they? to work at Google. The first reason to join is treatment. On their CV, Goldman is a name to sophisticated organizations understand that of UK workers feel proud to work for their But talk to anyone who works for Google “to lend a helping hand” to users, for whom conjure with, a name that opens doors.68 Best Global Brands 2008 Best Global Brands 2008 69
  • 37. So the key here is that expectations before, Rule 2 Unlike Lean, Six Sigma, or a CRM project,during and after employment are aligned. Recruit the “massive middle” to the cause. brand-building can be done subtly,The brand promise is delivered and meets wrapped around existing initiatives to addexpectations. As a result, its people are proud Many organizations focus their brand-building focus and meaning, e.g., as the principleadvocates, reinforcing the external perception efforts exclusively on the top 10–15% – the informing the design of a new intranet site,that Goldman is an untouchable brand, halo “high potentials.” However, this overlooks induction materials, performance appraisaland all. a critical segment of the workforce, coined system, internal communication campaign, by some as the “massive middle.” True brand internal product launch and so on. WhenThe brand idea is supported by 14 business engagement speaks directly to the solid brand is presented as another initiative,principles underpinning every aspect of its citizens, the people that you count on every overburdened employees can be forgiven foroperations. They underline the unusual effort day to show up and do their jobs. Within this believing that the brand will add more workGoldman puts into managing its talent, its group, influential types – brand champions, when, in fact, it should make their lives easierpioneering spirit and a belief that the world brand ambassadors, or change agents – and more inspiring.of finance will not stand still, and that com- can become a powerful force for change.placency can lead to extinction. This rejection Mobilizing them at various points in the Rule 4of complacency, and the foresight of two branding process will significantly improve Return of a promise = promise of a return.exceptional bankers, helped them escape the your chances of success. This group can:carnage on Wall Street this year and to gain a Both Google and Goldman Sachs believe inserious lead on the competition. •  rovide a reality check, identifying what p mutuality between employee and employer. will work and what won’t Balancing the requirements of the company with the needs of the individual employee is •  ct as change agents delivering key a an essential part of their strategy. The brandSummary: the four messages and communications to idea is layered on top of that to provide mean-golden rules of world- colleagues ing through a positive set of shared emotionalclass brand engagement •  odel on-brand behavior and inspire m connections. others to follow suit When Harvard Business School published the Service Profit Chain model in the late 1990s •  dentify gaps and opportunities to align i (Heskett, Sasser, Schlesinger, 1996) theyThese cases – and others like them – highlight the business with the promised brand proved what these brands already knew –four golden rules that, if followed, will experience happy employees means happy customersincrease our chances of success. who, if properly cared for, contribute to an Having a strategic part of your workforce equally healthy balance sheet. According toRule 1 that understands the brand and its benefits Gallup research, the stock prices of companiesThe launch is just the beginning. generates a groundswell of action and who topped Fortune magazine’s Most Admired support. Using them to spread the message Companies in 2007 appreciated 50% over theirWhen these brands were launched or in their up, down and laterally, can lend credibility to peers after investing in employee motivationinfancy, the creators knew that a glossy book the brand engagement process, particularly in and alignment. Research published by Gallupor a video would not be enough to direct places where management communications showed not only are engaged employees, onculture and behavior internally. Both Google are typically met with a mixture of cynicism average, 38% more productive, they are 30%and Goldman Sachs had visionary founders and suspicion. less likely to leave.who knew the importance of writing bothcustomer and people-focused principles Rule 3 Building a branded, customer-focused cultureinto their DNA from the outset. Of course, Brand is not an initiative. takes stamina, discipline and investment,it is all too easy to fall at the first hurdle. active leadership at all levels, cross-functionalThere are countless tales of companies Because of the connections between brand thinking, and detailed alignment of core pro-who made big investments in creating a and business strategy, our leaders look at the cesses. Only with all these pieces in place cannew brand positioning or identity system, branding process as a long-term operational the brand truly become something ownedonly to find that they struggle to activate commitment or way of working, not a short- and lived by everyone, from leadership to theit. Communication alone will not change term initiative. While other initiatives are front-line employee.behavior. Success comes when you take developed in response to specific businesspeople on a journey – from understanding to objectives, the brand strategy is developed tobelieving, and from believing to really living support the business strategy as a whole. Thisthe brand. Your people are more likely to get means it must be implemented throughouton board when they are given the chance to the whole organization and be supported bydiscover the benefits for themselves, which rigorous management processes.means shaping an engagement strategy thatis interactive, multi-disciplinary and targeted.70 Best Global Brands 2008 Best Global Brands 2008 71
  • 38. The value of creativityby Andy Payne Tempta tion c ani Org for a brand but it really is just a signature, There is a huge number of choices that consum­ We’re also now seeing how brands move with if you like. Also, people have an expectation ers make on a daily basis and brands are able us and how they need to flex themselves 01 What is the role for creativity in creating 03 What do you believe makes a that they should like a logo, but it’s more to break out of this clutter to speak to con- according to the immediate times we’re in. brand value? great brand? important that they identify it with the brand sumers, to stand for something in their eyes. IBM is a great example of this. When people and that it provokes the right messages. were uncertain of doing business online, they I’m really interested in the ideas that say, “I’m helped us with e-business. When we became The brand strategy should provide the seed for you,” and how we best execute against concerned about the pace of business, they Let’s answer that by looking at it in a linear from which the visual vocabulary germinates. Well, as you can see from the Best Global these ideas so they’re memorable and really gave us on demand. It has all been one IBM fashion. Put simply, the role of creativity is to We all interpret visual codes, sometimes Brands study, brand value is potentially the deliver for the business. throughout but they’re flexing the brand to bring the brand’s strategy to life. We make consciously, sometimes subconsciously. ultimate measure of success for a brand. But, dial into our emotions at any given time. The the brand strategy evident to the world inside Look at the way people may interpret a piece while it shows you the result of the success, Again, this is where strategy and creativity need world seems only to increase its pace and this and outside the organization. But, in truth, it of art and “get it” when others clearly don’t. what drives success is hugely significant. to work together. We need to create ideas for places a huge pressure on brands to keep up doesn’t really work in a linear fashion. It’s about visual stereotyping and knowing a business that go beyond straight strategy with the way attitudes are continually evolv- how to evoke the right emotional context for A great idea sits at the heart of the brand. and become robust, rich ideas that can define a ing. It sounds daunting, but the rewards for It’s always tempting to see design briefs and the brand. The brand’s visual vocabulary should It’s the strategy that will re-energize the brand’s communications and behaviors across getting it right are evident, so we shouldn’t marketing strategy in separate silos of an over- play with these stereotypes, knowing which brand and stretch the brand into new business a whole host of opportunities. The idea can’t expect it to be easy. all brand management process. But, if there’s cues to extenuate and which to downplay, opportunities. It has to be true and something be confining or limiting; it has to be more of aBiography: Andy Payne is only one brand, really there should be just one which to reinforce and which to redefine in the organization can deliver against, and it launch pad; a launch pad that is always clearInterbrand’s Global Creative brief that delivers against one strategy. order to accentuate the idea of the brand. has to be something that is relevant in that enough to show you that you’re on brief and on 05 What inspires you?Director. With a track record of great market. It has to be different and distinctive strategy, but also a launch pad that is an idea,success, Andy has worked on some To manage a brand’s value, you have to be There is so much more to building the visual from its competitors. breathing life into executions and creating valueof Interbrand’s most prestigious looking at the strategic and creative intent vocabulary and system of the brand than a in your market.projects, including Thomson Reuters, of the brand as one. They are both equal and logo. Brands have multiple touchpoints and, This thinking should convey a brand’sToyota, and McDonald’s. parts of the value chain. Strategy and design to succeed, they need to build their messages personality. A great brand idea is much easier People often ask me for a definition of great should become indistinguishable. A brand cumulatively and holistically across these to work with if it creates a really clear picture creativity. For me, it’s being able to work with 04 How has the branding business changed isn’t just a strategy. The strategy needs to be touchpoints. They all represent opportunities in our minds. a business of thousands of people, across over the years? executed. Likewise, a brand isn’t just about its for the brand and the trick is to work out what multiple geographies and multiple service design. Strategy and creativity therefore need is the most meaningful touchpoint to you, then A great tool in defining this personality is lines, and inspire and influence the way they to work in harmony to really deliver the brand over-deliver against it so you create value. Many language; understanding what the brand work by giving them better business potential promise in a tangible way. The role of design brands make the mistake of simply replicating says. It’s often overlooked, but the words against their competitors.Creativity runs is to capture the emotional space in consum- their visual formula across their touchpoints. are key. Well firstly, branding is still a really young ers’ minds, while the physical performance of This visual splattering may show ownership, business. We’re one of the oldest brand con- Look at any of the Best Global Brands. We the brand’s products or services captures the but may not use the medium to its best effect in Take something as simple as an apple. Look at sultancies and we’ve been going since 1974, so all know something about them. We canthe whole way rational mind space. terms of communicating the brand. We always have to see the touchpoint as a means through it and it’s just an apple. it’s still a young industry. come from different cultures and different backgrounds and there would probably bethrough our which we communicate the brand idea, rather Put the word ‘temptation’ next to it and our For me one of the biggest changes is the fact a tremendous commonality in the way we’d than simply owning the touchpoint. whole point of reference changes. that, as a designer by background, I’m invited describe Nike, Apple, Google, etc. These 02 What the biggest error that to debates to make the most of business brands transcend languages and cultures.solutions and people make when they’re considering When a brand is reviewing its identity system, Put the word ‘organic’ next to it and our opportunities and challenges from a creative They have the whole world talking about a branding project? it should review the touchpoints it communi­ references change again. perspective. It’s great working closely with them in the same way and sharing their brandshould work cates through, multiplying the use of those that over-deliver brand value and minimizing the usage of those that under-deliver. It will But each time it’s just an apple. business people and seeing the changes we can make to their ways of thinking. What once felt like a problem becomes an opportunity. ideas. That is a huge challenge, but a fantastic challenge. Like most people in branding, I am endlessly fascinated by trying to help createharmoniously The worst thing anyone can do is to simply focus on the logo. I sit here as a Creative focus the brand’s spend more effectively and more efficiently. We’ve seen programs where This shows us how powerful language is. Each time we’ve redefined the apple through What may once have been taken for granted, suddenly becomes their competitive advan- such opportunities for businesses and allowing their ideas to be shared.with strategy. Director, and can say to you honestly it really is just a logo. Sure, a logo needs to be appropriate brands have actually saved $60 million by dis- continuing ineffective touchpoints. the use of language. tage. What may have simply been “their way of doing things” becomes their guarded culture.72 Best Global Brands 2008 Best Global Brands 2008 73
  • 39. Answers to the What is brand value? How does Interbrand derive the but also because of the location of the Brand value is the dollar value of a brand, value of brands? gas stations. For each of the brands (and calculated as Net Present Value (NPV) or Our valuation approach is a derivative of categories) we have assessed the Role of most commonly today’s value of the earnings the brand the way businesses and financial assets Branding. is expected to generate in the future. are valued. It fits with current corporate Like any other financial value, brand finance theory and practice. There are The Role of Branding is derived as a per- value is based on the assumptions and three key elements and they are detailed centage (%). Thus, if it is 50%, we take asked questions information available at that point in below: 50% of the EVA as brand earnings. If it is time. Brand value is calculated according 10%, we only take 10% of the EVA. to the most widely accepted and used Financial Forecasting valuation principles. This makes brand We identify the revenues from products Brand Strength value comparable to business-, and all or services that are generated with the To derive the net present value of the NPV-based asset values. brand. From these branded revenues we forecast brand earnings, we need a deduct operating costs, applicable taxes, discount rate that represents the risk The valuations of brands appearing in the and a charge for the capital employed profile of these earnings. There are two Best Global Brands (BGB) are calculated to derive the economic value that is factors at play: first, the time value in their current use to their current generated by all tangible and intangible of money (i.e., US$100 today is more owner. Therefore, these valuations do business assets of the branded business. valuable than US$100 in five years not necessarily represent the potential Economic Value Added (EVA) is a value- because one can earn interest on the purchase, extension or licensing value of based management concept and is a money in the meantime); and second, What is brand value? 75 How did you take account for the brands. generally accepted principle to measure the risk that the forecast earnings will the fact that brands are run the ability of a business to generate actually materialize. The discount rate Why value brands? 75 through franchisees? 77 returns over and above its invested capital. represents these factors as it provides an Based on reports from financial analysts, asset-specific risk rate. The higher the risk How does Interbrand derive What is the relationship between Why value brands? we prepare a financial forecast and of the future earnings stream, the higher the value of brands? 75 the following terms: The purpose of these valuations is to calculate the EVA of the branded business. the discount rate will be. To derive today’s brand awareness, brand equity, demonstrate to the business community value of a future expected earnings What was the basis of the brand share, and brand value? 77 that brands are very important business Role of Branding stream, it needs to be “discounted” by a financial assessments? 76 assets and, in many cases, the single Since EVA includes the returns for all rate that reflects the risk of the earnings Do the valuations reflect the most valuable company asset. We also assets employed in the business, we actually materializing and the time What was the basis for the underlying state of the economy? 77 aim to make branding and marketing need to identify the earnings that are for which it is expected. For example, marketing assessments? 76 key business issues that have direct specifically attributable to the brand. US$100 from the Coca-Cola brand in How does brand value rank against shareholder value impact. Through eight Through our proprietary analytical five years requires a lower discount rate What was BusinessWeek’s role ad spending? 78 years of publishing Best Global Brands framework, called Role of Branding, than US$100 from the Fanta brand in five in the Best Global Brands ranking? 76 in BusinessWeek magazine, we have we can calculate the percentage of years, as the Coca-Cola brand is stronger Is it possible to recognize brand created the world’s most significant and EVA that is entirely generated by the and therefore more likely to deliver the Why are certain brands not on the list? 76 value on a balance sheet? 78 influential brand and marketing study. brand. In some businesses, e.g., in expected earnings. In fact, PRWeek magazine produced fragrances or packaged goods, the Role Certain obvious global brands are missing. What is Interbrand’s view on brands a study demonstrating that the of Branding is very high – as the brand is The assessment of Brand Strength Were they considered? 76 appearing on balance sheets? 78 BusinessWeek/Interbrand Best Global the predominant driver of the customer is a structured way of assessing the Brands ranking was the third-most purchase decision. However, in other specific risk of the brand. We compare Within certain large industry Why is Interbrand an expert sought-after benchmark report by CEOs, businesses (in particular, B2B) the brand the brand against a notional ideal and sectors there are no brands that in assessing brand value? 78 CFOs and CMOs. is only one purchase driver among many, score it against common factors of Brand appear on the list. Why? 76 and the Role of Branding is therefore Strength. The ideal brand is virtually “risk Does Interbrand conduct other lower. For example, people are buying free” and would be discounted at a rate What % of the branded business brand studies? 79 Microsoft not only because of the brand, almost as low as government bonds or needs to be outside the home but because the company has an installed a similar risk-free investment. The lower country to be considered global? 77 What is the difference between base of 80% of the market and it would the Brand Strength, the further it is from the valuations in BGB and consulting be extremely difficult for most users the risk free investment and so the higher Was this the only test for being global? 77 valuations for clients? 79 to switch their existing files to a new the discount rate (and therefore the lower software platform. In the case of Shell, the Net Present Value). Was there a limit to the number of people buy not only because of the brand, brands included from any one industry? 77 Are there any brands that have a sufficient brand value but did not make the list? 7774 Best Global Brands 2008 Best Global Brands 2008 75
  • 40. What was the basis of the Why are certain brands not Within certain large industry What % of the branded business needs Are there any brands that have a suf- What is the relationship financial assessments? on the list? sectors there are no brands that to be outside the home country to be ficient brand value but did not make between the following terms: Published annual reports were used to This is a frequent question, especially appear on the list. Why? considered global? the list? brand awareness, brand equity, examine the revenues, earnings and from companies who would expect their Airlines – There has clearly been In most cases, one-third, however if the There are certainly strong national brands brand share, and brand value? balance sheets of the brand-owning com- brands to be on the list. There are five significant investment in airline brands home country of the brand is small that have a value exceeding $3.3 billion Brand value is the only measure that looks panies. Analyst reports from JP Morgan possible reasons: (and many of them are, by definition, (e.g., the Netherlands), we require a but did not make the list because they do at the economic benefit of the brand to Chase, Citigroup, and Morgan Stanley are global) but they are still operating in higher percentage. not meet our global criteria. This would its owner. In other words, it is an end in used as the basis for identifying the spe- • The brand is not sufficiently global situations where the brand plays only be true of many of the financial services itself. Brand awareness and brand equity cific brand revenues and earnings and for a marginal role. In most cases, the and telecommunications brands, but also are a means to an end. Brand awareness forecasting future earnings. •  he brand has a pure B2B single T customer decision is based on price, route, surprisingly true of a lot of food, beer and is simply knowledge that a brand exists, Was this the only test for audience and has no wider public schedule, corporate policy or frequent retail brands. thus brand awareness may prompt being global? profile and awareness flyer points. The brand may often only customers to consider buying a product. No, we also wanted evidence that the have a real impact when all these other Brand equity is a measure of customer What was the basis of the brand was established in a wide number •  he company does not produce T items are at parity. We have assessed the perceptions of a brand, thus it may give marketing assessments? of markets around the world. At the very How did you take account for public data that enables us to identify brand value for airlines by using internal a customer reason to prefer a product Unlike other brand value rankings, least it needed to have a substantial the fact that some brands are run the branded business (the company data to strip out the impact of these over the alternatives. Brand share is simply Interbrand does not rely on a single presence in at least one country in each of through franchisees? has multiple brands or has unbranded other factors. But from purely public the market share achieved by the brand. source of marketing information. Using the following 4 regions: North America, This was an issue with all the food retail production) information this is difficult to do reliably. Thus brand awareness, equity, and share a single brand study would limit the Latin America, Europe, and Asia-Pacific. It brands – McDonald’s, Pizza Hut, KFC, are all measures of what a customer type of information (usually perceptual also needed to be managed consistently and Starbucks. We based our valuation •  he brand is not big enough (brand T Telecommunications – Although there thinks or does. It is not an assessment data) and the type of customer (usually as a global brand. As an example, on the earnings that the brand owner value below $3.3 billion falls below the are many large telecom brands that are of the economic value created by those general public) that can be considered. Walmart is a valuable brand but it is not makes from the brand and an estimate of 100-brand ranking highly valuable, at present none of these thoughts or actions. Because many leading brands operate in consistently branded as Walmart around the earnings that the franchisees make brands fulfill all of our criteria. specific customer segments (particularly the globe. from the brand (what is called a total- •  he business is driven by a number of T B2B brands), sourcing data exclusively system view). As in all other valuations, intangible factors and it is difficult to Pharmaceuticals – No pharmaceutical from the general public would prove very these earnings were then reduced to Do the valuations reflect the separate the brand from the rest brands have been included since the 2007 restrictive. Instead, Interbrand refers to take account of a return for the use of the underlying state of the economy? ranking. Pfizer and Novartis – which Was there a limit to the a wide array of primary and secondary tangible and other intangible assets. Yes – in two ways. The forecasts are were both included in the 2006 table – number of brands included sources, which are applicable to each prepared with an overall view on have been excluded following a review from any one industry? brand. These include, among others, Certain obvious global brands are economic growth at a point in time. of our approach. Our review concluded No, however, one of the requirements of ACNielsen, Gartner, Hall & Partners, and missing. Were they considered? The formula for converting the Brand that brands should only be included a leading global brand is that it is, in fact, Datamonitor. Moreover, Interbrand In each case there was a reason why they Strength Score into a discount rate is tied where they resonate with consumers leading. The mark of leadership is not just utilizes its network of brand valuation could not be evaluated based on purely to the underlying government bond yield. on a global level. In the pharmaceutical about market share, but also about behav- experts from offices around the world public data. For example: industry, it is the product brand rather ing as a leader – setting trends, quality to ensure that the ranking assesses the than the corporate brand with which the standards, authority, etc. Thus, there are brands from a global perspective. BBC – A unique organization since it’s a consumer builds a relationship. The lack brands that are in the top three of their government-owned corporation that of global recognition of pharmaceutical category’s market share but did not make is not supposed to generate a profit. companies is fundamentally driven by the cut and there are brands that are not There are, however, parts of it which What was BusinessWeek’s role in the regulatory differences around the world. top-three that did make the global rank- are commercial and which do generate Best Global Brands ranking? In the US, for example, pharmaceutical ing. The rules described are guidelines profits, but these are still the minority of BusinessWeek did not influence the selec- companies are able to communicate and and, ultimately, each brand was assessed the business. tion of brands or the determination advertise directly to consumers, whereas for inclusion on its own merits. of any of the values. Their role was to in the EU this is forbidden. Red Cross – As a not-for-profit publish the study and to tie the reported organization, it’s not possible to value performance of brand value to some of the brand based on an earnings model. the wider issues affecting these brands. This would be true of other global not- for-profit brands such as Greenpeace, National Geographic or Unicef. It is possible to assess the financial value of such brands, but only using a different kind of model. Mars – This is a privately held and highly secretive organization. Other privately held brands such as IKEA are included since appropriate financial data is publicly available.76 Best Global Brands 2008 Best Global Brands 2008 77
  • 41. How does brand value rank What is Interbrand’s view on brands Why is Interbrand an expert Does Interbrand conduct other What is the difference between the against ad spending? appearing on balance sheets? in assessing brand value? brand studies? valuations in Best Global Brands and It is not really appropriate to try to We support the notion of the different In 1988, Interbrand developed and We have established national brand value consulting valuations for clients? correlate these two. Brand value is a accounting standards to recognize the introduced the first valuation of a rankings in Switzerland, France, Spain, The valuation methodology is the same, measure of the output from a series value of brands on the balance sheet. portfolio of brands that used a brand Australia, Singapore, China, Taiwan, however, the level of detail and the data of brand investments and initiatives Interbrand has led the debate on this specific valuation approach. Since then Mexico, Canada, and Brazil. These follow input significantly differ. The BGB over a long period of time. Advertising issue for many years. However, current we have continuously updated and an identical valuation process but only valuations are based on publicly available is one element in a wide spectrum accounting standards allow only for improved our valuation approach to look at locally owned brands. marketing and financial data. Also, the of communications that companies the recognition of acquired brands, make it the global industry standard of BGB valuations are mostly consolidated employ. Other communications include not internally developed brands. Also, brand valuation. The Interbrand brand A US-specific study would be redundant top-line assessments, although we sponsorships, online, point of sale, the impairment test for brands on the valuation methodology is the most due to the great overlap with the global recognize segment differences for customer service, etc. In some cases balance sheet allows only for a potential widely endorsed and employed valuation table – 53 out of 100 are US-based. diversified brands by product or service brands are built with very little or no value reduction but not increase. The approach around the world. Interbrand but not geography or any other advertising, as in the case of Starbucks, acquisition criterion means that the Gucci alone has valued more than 5,000 brands In April 2008, Interbrand also published classification (e.g., financial services or where retail space and employees are the brand is recognized on the balance sheet in all industries worldwide. a table of the 25 most valuable European technology). As the valuations are based key communications channels. of PPR as an intangible asset, while the retail brands. on publicly available data, they are only as Louis Vuitton brand does not show up on Our valuations have been endorsed by reliable as the data that the brand- the balance sheet of LVMH. leading academic institutions including owning companies publish about Harvard, Thunderbird, Columbia, Emory, themselves (in annual reports, analysts Is it possible to recognize brand value We conclude that the recognition of and St. Gallen. Our valuation approach briefings, press articles, syndicated on a balance sheet? acquired brands on the balance sheet is has a wide range of applications, market research, etc.). Several accounting standards – such as a step in the right direction for providing including strategic brand management, International Accounting Standards IFRS shareholders with better information marketing budget allocation, marketing Consulting valuations are based on and US-GAAP – require the recognition of about the assets they have invested in. ROI, portfolio management, brand detailed customer segmentations, as well acquired goodwill, including brands, on However, it’s still not sufficient, as the extensions, M&A, balance sheet as in-depth marketing and financial the balance sheet. The standards clearly value of internally generated brands recognition, licensing, transfer pricing, analyses. They have a much higher level identify brands as intangible assets with cannot be disclosed despite making up and investor relations. Our valuations of accuracy and granularity. The purpose an infinite economic life. This means the vast majority of the most valuable have been audited for inclusion on the of a consulting valuation extends well that, unlike other intangible assets brands around the world. balance sheet by all leading accounting beyond assessing financial numbers and (e.g., patents, databases) or goodwill firms. Also, many tax authorities and law goes on to identify and quantify value (e.g., training, workforce), brand value courts around the world have accepted drivers so as to manage brands for does not have to be amortized through our valuation approach. increasing the shareholder value of the the income statement. However, they underlying businesses. However, if clients are subject to an annual impairment undertake consulting valuations, we are test and their carrying value needs to in a much better position to identify be reduced if the value declined. The publicly available data that is likely to technique is consistent with the way in align the BGB valuation with the which Interbrand has assessed brands consulting valuation. In cases where for balance sheet inclusion – though, companies make our consulting of course, using more extensive and valuations publicly available, for example proprietary data. through a note in the balance sheet, these values will also be published as the BGB ranking value.78 Best Global Brands 2008 Best Global Brands 2008 79
  • 42. About Interbrand About Best Global BrandsInterbrand began in 1974 when the world still Voted the third-most influential industrythought of brands as just another word for benchmark study by business leaders,logo. We have changed the dialogue, defined Best Global Brands is our annual report onthe meaning of brand management and the world’s most valuable brands and thecontinue to lead the debate on understanding insights that can be drawn from how thesebrands as valuable business assets. global organizations create and manage brand value.We now have nearly 40 offices and are theworld’s largest brand consultancy. Our We pioneered the technique for valuingpractice brings together a diverse range brands in 1984 and have continued to improveof insightful right- and left-brain thinkers upon the methodology and set the pace formaking our business both rigorously other approaches. Our valuation techniquesanalytical and highly creative. Our work have long been recognized by business,creates and manages brand value for clients academics and regulatory bodies as a uniquelyby making the brand central to the business’s valuable strategic tool. Today, we havestrategic goals. conducted over 5,000 valuations for clients to provide guidance in managing their mostWe’re not interested in simply being the valuable asset – their brand.world’s biggest brand consultancy. We wantto be the most the most valued.Contact Us General inquiries: Media inquiries: Jez Frampton Lisa Marsala Group Chief Executive Officer Group Communications Manager Tel UK: +44 (0)20 7554 1000 Tel: + 1 212 798 7646 Tel US: +1 212 798 7777 lisa.marsala@interbrand.com jez.frampton@interbrand.com Additional information on brands Graham Hales www.interbrand.com Group Chief Communications Officer www.brandchannel.com Tel UK: +44 (0) 20 7554 1169 Tel US: +1 212 798 7581 For reprint permission of this report or graham.hales@interbrand.com its articles, please contact Lisa Marsala.80 Best Global Brands 2008 Best Global Brands 2008 81
  • 43. Creating and managingwww.interbrand.com brand value™
  • 44. Best Global Brands 20082008 2007 Country of 2008 Brand Change in 2008 2007 Country of 2008 Brand Change in Brand Sector Brand SectorRank Rank Origin Value ($m) Brand Value Rank Rank Origin Value ($m) Brand Value1 1 US Beverages 66,667 2% 51 51 France Personal Care 7,508 7%2 3 US Computer Services 59,031 3% 52 52 US Media 7,193 4%3 2 US Computer Software 59,007 1% 53 54 Germany Automotive 7,047 8%4 4 US Diversified 53,086 3% 54 47 US Financial Services 7,022 -6%5 5 Finland Consumer Electronics 35,942 7% 55 49 France Financial Services 7,001 -4%6 6 Japan Automotive 34,050 6% 56 53 US Food 6,646 2%7 7 US Computer Hardware 31,261 1% 57 57 US Personal Care 6,437 7%8 8 US Restaurants 31,049 6% 58 62 US Internet Services 6,434 19%9 9 US Media 29,251 0% 59 56 US Computer Hardware 6,393 6%10 20 US Internet Services 25,590 43% 60 58 France Luxury 6,355 9%11 10 Germany Automotive 25,577 9% 61 59 US Food 6,105 6%12 12 US Computer Hardware 23,509 6% 62 64 Spain Apparel 5,955 15%13 13 Germany Automotive 23,298 8% 63 63 Switzerland Food 5,592 5%14 16 US Personal Care 22,069 8% 64 60 US Restaurants 5,582 -2%15 15 US Financial Services 21,940 5% 65 55 US Internet Services 5,496 -9%16 17 France Luxury 21,602 6% 66 67 France Food 5,408 8%17 18 US Computer Services 21,306 12% 67 68 Germany Automotive 5,407 11%18 14 US Tobacco 21,300 0% 68 66 US Diversified 5,288 5%19 11 US Financial Services 20,174 -14% 69 65 US Personal Care 5,264 3%20 19 Japan Automotive 19,079 6% 70 69 Germany Sporting Goods 5,072 6%21 21 South Korea Consumer Electronics 17,689 5% 71 71 Switzerland Luxury 4,956 8%22 _ Sweden Apparel 13,840 NEW 72 72 South Korea Automotive 4,846 9%23 27 US Computer Software 13,831 11% 73 _ Canada Consumer Electronics 4,802 NEW24 33 US Consumer Electronics 13,724 24% 74 70 US Personal Care 4,636 1%25 25 Japan Consumer Electronics 13,583 5% 75 75 Germany Automotive 4,603 9%26 26 US Beverages 13,249 3% 76 73 France Luxury 4,575 8%27 23 UK Financial Services 13,143 -3% 77 61 US Apparel 4,357 -20%28 24 Switzerland Beverages 13,055 1% 78 78 Japan Consumer Electronics 4,281 4%29 29 US Sporting Goods 12,672 6% 79 83 Switzerland Luxury 4,236 10%30 28 US Transportation 12,621 5% 80 79 US Luxury 4,208 5%31 34 Germany Computer Software 12,228 13% 81 74 US Restaurants 4,097 -4%32 31 US Computer Hardware 11,695 1% 82 80 Germany Financial Services 4,033 2%33 30 US Alcohol 11,438 -2% 83 85 France Alcohol 3,951 6%34 22 US Financial Services 11,399 -21% 84 84 UK Energy 3,911 3%35 38 Sweden Home Furnishings 10,913 8% 85 88 US Restaurants 3,879 7%36 36 Japan Computer Hardware 10,876 3% 86 81 Netherlands Financial Services 3,768 -3%37 32 US Financial Services 10,773 -6% 87 77 US Consumer Electronics 3,721 -10%38 35 US Financial Services 10,331 -3% 88 89 US Consumer Electronics 3,682 2%39 40 US Food 9,710 4% 89 91 UK Alcohol 3,590 6%40 44 Japan Consumer Electronics 8,772 13% 90 92 Japan Automotive 3,588 7%41 39 Switzerland Financial Services 8,740 -11% 91 94 Italy Luxury 3,585 9%42 37 US Financial Services 8,696 -16% 92 90 US Personal Care 3,582 4%43 42 Netherlands Diversified 8,325 8% 93 _ Italy Automotive 3,527 NEW44 _ Canada Media 8,313 NEW 94 _ Italy Luxury 3,526 NEW45 46 Italy Luxury 8,254 7% 95 87 France Alcohol 3,513 -3%46 48 US Internet Services 7,991 7% 96 _ US Hospitality 3,502 NEW47 50 US Computer Services 7,948 9% 97 93 Netherlands Energy 3,471 4%48 43 Germany Diversified 7,943 3% 98 96 Germany Personal Care 3,401 9%49 41 US Automotive 7,896 -12% 99 _ US Transportation 3,359 NEW50 45 US Automotive 7,609 -1% 100 _ US Financial Services 3,338 NEWwww.interbrand.com