Interbrand Best Global Brands Report 2010Document Transcript
BEST GLOBAL BRANDS 2010 WWW.BESTGLOBALBRANDS.COM
Voted one of the three most inﬂuential benchmark studies by businessleaders, Best Global Brands is our annual report on the world’smost valuable brands. It offers our insights into how these globalorganizations create and manage brand value. We pioneered thetechnique for valuing brands in 1984 and have continued to improveupon our methodology and set the pace for other approaches. Ourvaluation techniques have long been recognized by businesses,academics and regulatory bodies as uniquely valuable strategic tools.Today, we have conducted thousands of valuations for clients toprovide guidance in managing their most valuable asset – their brand.
Jez FramptonGlobal Chief ExecutiveInterbrand
BEST GLOBAL BRANDS 200100 / 1LAST YEAR MARKED A DECADE OF in internal behavior, and it is fair to say that many traditionalINTERBRAND’S BEST GLOBAL BRANDS STUDY. organizations are still struggling with this change. We can alreadyTHIS YEAR SEES THE BEGINNING OF A NEW see that the next big challenge will be to genuinely empower andPARADIGM IN BRAND MANAGEMENT. engage people on the inside. Just as corporate greenwashing is no longer tolerated, the notion of “brandwashing” your wayAs 2008 rolled into 2009, we saw spending habits begin to through customer relationships won’t be a lasting tactic. Likechange. Now, in 2010, we are seeing the starts and stops of a the smart marketers that have sensed changing attitudes towardrecovery coupled with profound changes in the relationships corporate citizenship and have responded by putting it (in itsbetween brands and their customers. widest sense) at the center of their business strategy, the best marketers are already focused on making meaningful employeeWe are becoming used to a new normal – one where brands engagement a priority for their brand and business strategies.are constantly stress-tested for relevance and value. The samecustomer might opt to buy an iPad instead of a laptop, purchase Despite all this change, however, it is clear that the role of brandsprivate label toothpaste and then match a Zara skirt with in consumers’ lives and the foundations of strong brands remainChristian Louboutin shoes. They will expect to buy online, return consistent. Brands, in their ability to create choice, build trustin-store and receive the most up-to-date offers and promotions and loyalty and drive a premium price, are as important todayinstantly. With alternatives only a click away, their patience is as ever before. They play an unwavering role in our lives, evenever-shortening – making them not only more difficult to predict, as spending changes, technology advances and preferencesbut more conﬁdent every day. Indeed, even what appears to be evolve. The rules for building and managing great brands maythe most minor instance of customer discontent in one part of a be shifting, but as youll learn in the pages in this report, thebrand experience can quickly lead to a major customer revolt due long-term sustainable advantage gained by building a strongto consumers ability to spread the word about brands quickly brand remains the same.and effectively online. Regards,It is clear from our recent conversations with Chief MarketingOfficers around the world (available to read at www.bestglobalbrands.com), that brands are making an effort to adaptto this real-time brand management approach, using socialmedia channels to forge deeper relationships with consumers.Managing this constant connection demands a radical shift
2 / INTERBRANDTHE AGE OF REAL TIME 2010’s slow creep back on the path toward economic recovery has been a journey marked by caution and an uncomfortable juxtaposition of increasing profits and increasing consumer worries. With each tentative step forward, we meet a new and unexpected challenge that continues to test our conﬁdence. As conditions begin to stabilize, there is the sense that nothing will again be the same. It is clear that the pivotal events of the past two years have left their mark. The marketplace and the relationshipWith each tentative step forward, we meet a between brands and customers have changed irrevocably.new and unexpected challenge that continues This global recession feels so different fromto test our conﬁdence. As conditions begin to earlier ones because it is the ﬁrst in which an account of every party’s participation in thestabilize, there is the sense that nothing will course of events, however clever, incompetent or corrupt, was captured in real time on theagain be the same. internet. Whereas the risks on Wall Street were once only known by a select few, now the public is privy to all the gory details of subprime mortgage loans, creative accounting and client fraud. Add to this the recent BP oil spill, which has unfolded in the same manner, and its easy to see why customer trust in brands is battered – and why there’s been a global effort to reform these two sectors that have become icons of misplaced trust.
BEST GLOBAL BRANDS 200100 / 3TODAY’S BRANDS CAN’T HIDE IT IS A RISKY LANDSCAPE FOR McDonald’s, for example, has seen proﬁtsANYTHING FROM CONSUMERS TODAYS BRANDS climb since the recession. While this has much to do with its low prices and aggressiveEven if they tried, brands can be named and The rules changed overnight, and even those strategy, at heart it is also due to the enduringshamed on sites like Smoking Gun, WikiLeaks with the most conﬁdent strategies are feeling familiarity of the brand. When customersor Breitbart in ﬁve minutes ﬂat. In the age of the pressures of this new marketplace. unwrap a Big Mac package, reminiscentreal time, a disgruntled employee can ﬁlm Customers’ access to more information means of childhood for so many, they know whatone all too revealing meeting – a discussion that it is easier for them to detach. Just look at they are getting each and every time, andof safety measure cuts or massive layoffs Facebook, the former star of social networking this inﬂuences their choice to purchase. The– and post it on YouTube within seconds. discussions. The once beloved brand received same is true for Campbell’s, which has seen itsTechnologies built on open platforms have a huge backlash after it changed its privacy brand value grow organically by ﬁve percent.crumbled the wall between brands and settings to open user information up to search Its canned soups not only offer an appealingtheir stakeholders. engines and public examination. The move price point, but also a comfort that proves not only resulted in a large drop in new users reassuring in tough times. Then there’s aNOW CUSTOMERS CAN LET THE (from 7.8 million in May to 320,800 in June) brand like Apple, which only strengthensWORLD KNOW HOW THEY FEEL but the abandonment of thousands of once its user loyalty with every move due to the loyal users. Now, the brand has to work hard brand’s commitment to beauty, design andCustomers are not only more skeptical to reverse the damage that resulted from a functionality. Even after its iPad faced heavydue to access to more details, but they failure to reﬂect on how an operational detail ridicule from blogs and social media, it wentcan also talk back, providing feedback, might alter its brand image. on to become one of the year’s biggest successcriticism, and emotional reactions online, stories – although with growing concern overwith the expectation that brands will be And yet, just as customers are ﬁnding it easier iPhone 4’s reception issues and new reportspaying attention. The challenge for brands to detach, for those brands that continue to that Apple compromised functionality foris to respond right away with relevance value the customer relationship, the same design, it is hard to say if the brand will beand sincerity, or else risk compromising evolutions in the marketplace also support able to sustain this level of loyalty in the facethe relationship. deeper and more lasting attachments. of continual off-brand missteps.
4 / INTERBRANDSO HOW CAN BRANDS BEEQUIPPED TO FACE THIS NEWMARKETPLACE?TRUST AND CUSTOMER LOYALTY: advertisements, as well as being carried in streamlining its portfolio to put the focusIN TODAY’S MARKETPLACE, all shops and outlets around the event. (This on quality, while also meeting critics of itsTHESE ARE THE WORDS THAT is not as easy as it looks; lack of products in gas-guzzling SUVs by introducing new, moreMATTER MOST shops and presence at the FIFA World Cup sustainable models. Following the ﬁnancial was something for which fellow sponsor markets collapse, Ford took a leadershipIt is clear that the rules are changing, but in and sophisticated marketer Budweiser position and declined a bailout, unlike GMa landscape fraught with contradictions, and was criticized.) and Chrysler, a move that made it appearvocal customers scrutinizing your every move, stronger and more relevant than its peers.it is difficult to know how best to proceed. Yet, Meanwhile, its “Coca-Cola Celebration Mix” It has recently seen shares increase moresome brands are already adapting – embracing – a remix of previously unknown Somali- than 20 percent in the U.S. and an increasetransparency and a higher level of customer Canadian artist K’Naan’s song “Waving in proﬁts in all 19 European markets, whereengagement at every touchpoint, while still Flag” – became the unofficial anthem of the it remained Europe’s second-best-sellingstaying true to their brand promise both World Cup. As videos on YouTube and ecstatic passenger car brand in the ﬁrst half of 2010.internally and externally. Brands like Coca- Twitter feeds make clear, the song (which was Critical reception has been just as positive;Cola, Ford and Santander are guiding the way given its own Coca-Cola audio signature, its cars recently achieved the highest qualityforward, showing the world that it is possible made familiar from last year’s “Open ratings from J.D. Power, as well as strongto win in this marketplace, and build the trust Happiness” campaign) made a powerful ratings from Consumer Reports, which supportand loyalty that inﬂuence customer demand, impact on individuals at the event as well as the brand’s positioning.despite the many risks. those watching it from home, fully delivering on Coca-Cola’s intent to connect emotionally In addition to Ford’s commitment to deliverCOCA-COLA: A 124-YEAR-OLD with its audience. In fact, the Coca-Cola co- on quality expectations as well as greenerBRAND STAYS RELEVANT owned song proved so popular that it went cars (EcoBoost engines in 90 percent of its on to become a number one iTunes hit in cars by 2013 and the 2011 all-electric Focus),Year after year, Coca-Cola demonstrates its 17 countries. Coca-Cola then carried on the it has made a strong effort to engage withability to adapt to whatever challenges the good spirit toward the brand by investing the customers in creative new ways, alwaysmarketplace throws its way. The number one huge proﬁts it made from digital downloads staying a step ahead when it comes tobrand for the 11th year in a row makes its brand into Coca-Cola’s US $30 million Replenish social media and new technology. Ford hascentral to its business operations. This year, Africa Initiative, which seeks to provide clean distinct strategies for each of its social mediafor example, it oriented business operations water and better sanitation (an issue for the outlets – Twitter to give customers real-timearound a new philosophy of “consumer company’s long-term beverage production) updates about vehicle launches, Facebookengagement,” which yielded beneﬁts such as a for the home of this year’s World Cup. (Read to post photos and videos, a Flickr accountmore robust social media strategy, continued more about Coca-Cola and social media online at for product photographs, and YouTube fordevelopment of owned media projects like its www.bestglobalbrands.com) corporate and crowdsourced videos.World of Coca-Cola Museum, smart productplacements and ads that stir emotions. FORD: USING CUSTOMER It tapped into all outlets for its wildly FEEDBACK TO MAKE A BRAND successful 2009 Fiesta campaign, in whichThis renewed focus on the customer, and COMEBACK it gave 100 bloggers a new Fiesta car toCoca-Cola’s capable integration of its drive and review – a marketing plan thatphilosophy into every touchpoint of its Back in 2006, the future looked grim for Ford. spawned 700 videos, 6.5 million YouTubebrand, was evident at this year’s FIFA World After massive layoffs, dwindling SUV sales views, 540,000 Flickr views, 6,500 TwitterCup – a campaign that marketing managers due to increasing gas costs, and a number of followers, 13,144 Facebook fans for “Fordwill be looking to as a case study for years to recalls, public perception of the brand was Fiesta,” and 50,000 requests for informationcome. Coca-Cola was a major presence at low – and proﬁt losses massive. However, about the car the ﬁrst six days of sale. Asidethe event: asserting itself on billboards and it has steadily inched back, continually from just buzz, however, the campaign was a
BEST GLOBAL BRANDS 200100 / 5true success because of what Ford did with it consumer trust. Not so for Santander, which 318 branches of Royal Bank of Scotland and– it used the tremendous amount of customer makes its debut on the list this year at 68. to expand further in Latin America. Recently, itfeedback it received from the bloggers to has been talking to New York-based bank M&T.update and improve models. As a best-case The brand has emerged from the crisismodel for how to use social media effectively, relatively unscathed, with the exception of While all the expansion could take a toll onFord isn’t just soliciting customer feedback, losing US $3 billion of its client money invested any brand, Santander is moving quickly toit is responding to it. Overall, Ford has found with Bernie Madoff and some limited exposure rebrand its acquisitions to the Santanderthe level of engagement on social media to to the Spanish property market. Unlike name, with all Abbey and Bradford & Bingleybe so high, that it recently decided to opt out competitors, Santander stayed out of U.S. holdings rebranded by January 2011. It hasof launching its Ford Explorer 2011 at auto subprime mortgages, instead doing business also launched an ad campaign in the U.K.shows, in favor of Facebook. the old-fashioned way, with 80 percent of that builds on its investments in the Formula revenues derived from retail banking. When One race by featuring Formula One stars.Beyond marketing campaigns, however, Ford explaining his decision to opt-out of the fast The campaign’s mobile and social mediahas been careful to make “social” a part of its lane to the media, Emilio Botin, the company’s component – a bridge-building puzzle gamedriving experience as well, actively engaging 76-year-old chairman, claimed that it all came called Red Brick that can be played throughcustomers beyond the limits of the social down to a tried and true belief: “If you don’t iPhone apps and Facebook apps, has been amedia space. Ford is integrating its customers fully understand an instrument, don’t buy it. If fun and interactive way to raise awareness.new level of involvement, integrating it into you will not buy for yourself a speciﬁc product, These approaches are working: Whereas itsits automobiles, providing technology that don’t try to sell it. If you don’t know very well name was recognized by only 20 percentreads drivers’ tweets to them, offering a Wi-Fi your customers, don’t lend them any money.” of the British public in November 2004, ithot spot in cars, partnering with Pandora to It is because of this transparency, honesty and now has 92 percent brand awareness as ofstream music, as well as Stitcher to stream respect for its clients that Santander is seeing 2010. Says Santander’s Senior Executiveonline news. This year, its Fiesta 2011 so much current success. TIME Magazine may VP, Communications, Corporate Marketingcampaign will attempt to integrate both have called it “the most boring bank in the and Research Juan Manuel Cendoya, “We aresides of the coin. The campaign, a partnership world,” but after the crisis, its conservative showing that we are efficient and proﬁtable,between Ford, University of Michigan and approach is looking more appealing than and that we have a solid business model thatIntel, revolves around the creation of a ever; it is a brand that played it smart and makes us look ahead with great optimism.”Fiesta 2011 model that has been customized safe. As a result, it is a brand that consumers (Read more about Santander and financialwith unique, student-created social media can trust. services at www.bestglobalbrands.com)applications. The car’s journey from Michiganto Silicon Valley will be charted on a blog as Santander, now the Eurozone’s largest TRANSPARENT AND ENGAGEDwell as various social media outlets. (Read bank, has used its position to its advantagemore about Ford and the automotive industry at since 2008, with a number of aggressive Today’s customers are skeptical, vocal andwww.bestglobalbrands.com) acquisitions. It further established its savvy, but as Coca-Cola, Ford and Santander presence in the U.K. (which was already solid demonstrate, brands that stay transparent,SANTANDER: TRUST, QUICK after its acquisition of Abbey National in engaged and true to their promises will beTHINKING AND TRANSPARENCY 2004) by acquiring the beleaguered Alliance & well equipped to lead and engage with even Leicester as well as the savings arm of Bradford the most critical customers. As long as brandsFollowing the ﬁnancial collapse, most banks & Bingley. In North America, it acquired the 75 follow this path, there won’t be anything tofound their business models broken and percent of what it didn’t own of Sovereign, and hide – and they’ll be able to unlock real-timerelations with the public fractured. Citi, in June it extended its presence in Germany opportunity and create relationships withGoldman Sachs and Morgan Stanley not only after buying 173 branches of the struggling customers that will carry them through anyface new regulations, but the daunting task of SEB of Sweden. There are also plans to short-term stumbles.rebuilding their reputations and winning back increase its U.K. dominance by purchasing
6 / INTERBRAND10 PRINCIPLES OF STRONG BRANDSToday, due to the downturn in the economy the consequences of shortsighted decision- holistic and accurate way of understandingand the ensuing reset in customer priorities, making. One need only look to Toyota, which and evaluating brands.corporations need to be more aware than was so focused on increasing market share thatever before of the many underlying forces it compromised the quality and reliability of its While Interbrand has always looked to thesethat impact a brand’s ongoing strength. products – and the very foundation of its brand components in our years of valuing brands, theBusiness is changing, but the principles of – to see the risks in this kind of behavior. brand strength components have undergone anstrong brands still hold true. update for 2010 to better reﬂect the factors that Interbrand’s Brand Strength Score, which is are reshaping the marketplace. These factorsIn the past few years, marketing accountability comprised of 10 components, all of which include proliferation of social media, corporateand a focus on isolated measurements have an important and equal role in the citizenship, audience fragmentation, thelike Return on Investment (ROI) or brand brand’s ability to generate value, is an effort increasing role of product design and increasedperception have led many brand owners to recalibrate the focus. It brings together pressure on ROI.astray from these fundamental principles. all aspects of a brand – its people, products,As a result, many brands are now seeing positioning and partners – to create a more 1 COMMITMENT A measure of an organization’s internal commitment to 2 PROTECTION This component examines how secure a brand is across or belief in its brand. Commitment is the extent to which a number of dimensions – from legal protection and the brand receives support in terms of time, inﬂuence and proprietary ingredients to design, scale or geographic investment. spread. This year, the organizations that failed when it came to Whether it is Coca-Cola’s patent on its exact formula commitment were perhaps more visible than those that or IBM’s strategic acquisitions, protection is a vital brand succeeded. BP, which fell off this year’s table, is one example component. This year, brands that scored high in this category of a company that neglected to incorporate the brand into include Kleenex and Apple, which both focused on protecting operational execution and decision-making. If BP had stayed the integrity of their brand. true to its “Beyond Petroleum” positioning, it is likely that a Kleenex, in many ways, holds an enviable position: The disaster of this magnitude would not have occurred. Instead, brand has become a generic term for facial tissue. However, as news reports note, executives opted to put the brand at as with other brands in this position, this comes with risks. To risk by taking shortcuts. Minimal safety precautions, rushed ensure that its brand name doesn’t go the way of the escalator, drilling, ignored warning signs that the well was exhibiting thermos or zipper, Kleenex has taken measures to protect its indicators that it might explode, and a managerial decision to name by securing trademark rights – and continues to question shut off the Deepwater Horizon ﬁre alarm to prevent waking up any brand that uses its name unlawfully. workers with 3 a.m. false alarms are all examples of an internal Apple is another brand that scored high in protection this lack of commitment to the brand’s stated beliefs – and the year. Not only did it focus on policing its “i-“ preﬁx names, repercussions, as seen here, are great. but it also assumed an alias when ﬁling “iPad” for trademark In a quieter way, Citi has also suffered for its lack of status, in an attempt to throw people off and protect its commitment to its brand. While it has vowed to change and product launch. Additionally, Apple stepped up the registration refocus on trust, it has yet to translate this to the customer of all its products, from the shape of its iPod to its desktop experience. It may want to change, but until it proves that icons and apps. this promise is central to its decision-making process, it will Meanwhile, a brand that saw protection lag was Budweiser. continue to lose brand equity. Its 14-year battle to trademark its name in the Czech Republic, In contrast, ZARA, which has built its brand on providing Germany and Austria with Czech competitor Budejovicky customers with fast fashion, has shown a high level of Budvar (which began production of its Budweiser beer in 1895) commitment to its organization. ZARA has created internal ended negatively for the brand. Because of its failure to protect operations that deliver on its fast fashion proposition, its brand name, it must now sell its beer under a different name including providing store managers with real-time data in in these markets. – Frank Chen, CEO of Interbrand Shanghai order to make better stock allocation decisions. Overall, ZARA’s commitment to its brand has paid off as it continues to expand each year. – Graham Hales, CEO of Interbrand London
BEST GLOBAL BRANDS 200100 / 73 CLARITYThe brand’s values, positioning and proposition must be 4 RESPONSIVENESS This component looks at a brand’s ability to adapt toclearly articulated and shared across the organization, market changes, challenges and opportunities. The brandalong with a clear view of its target audiences, customer should have a desire and ability to constantly evolve andinsights and drivers. It is vital that those within the renew itself.organization know and understand all of these elements,because everything that follows hinges on them. Two years of recession have impacted the globe. As a direct result, brands were forced to be more agile and responsive At heart, clarity measures the degree to which the brand to socioeconomic and competitive pressure. In 2010,and its owner are truly dedicated to understanding and many brands demonstrated responsiveness by adapting todeﬁning their customer. From this stems a clear view of what customers’ increased desire for sustainable products.the brand can offer to address an identiﬁed customer need. While the trend has been apparent in virtually everyWithout clarity, a brand lacks insight – the most precious of sector, it has been especially evident in the automotivecommodities, particularly in a recessionary climate. Indeed, category, where the growing concern among customersas Harvard Business School suggests, instead of cutting regarding fuel efficiency and greenhouse emissions, as wellresearch budgets in a recession, “you need to know more as demand for hybrids, has kept brands on their toes. Indeed,than ever how consumers are redeﬁning value.” Boston it is no coincidence that every car brand in our study will haveConsulting Group agrees; it recommends that “to attract some form of hybrid out in the market in the next two years.post-downturn customers, brands should upgrade their The true challenge for these brands, however, will be thatinsight capabilities.” And insight doesn’t mean reams of new offerings adhere to the same design standards as theirexpensive statistics: More and more companies are turning established models.to faster and richer ethnographic techniques to observe and Another challenge has come in the need to respondinteract with customers, not just count them. to consumers by harnessing the latest technology. This is So clarity, as we view it, is about audiences as well as what evident in the growth of smartphones – especially Apple andyour brand can offer. Sometimes this is almost instinctive BlackBerry, with Nokia seemingly in retreat. Not to be forgotten(think Virgin and Apple). Other times, it’s the product of a is the latest innovation from Apple: the iPad. Progress withdeep commitment to understanding customers fully and mobile phones and now smartphones has been driven by fast-consistently. Multi-brand organizations like P&G and Unilever, developing markets, which are driving sales at an acceleratingwhich spend ahead of their share of market on research, and pace. While this technology has existed for some years, it is onlyinvest in the best and brightest people in this area, point the now gaining traction as consumers respond.way here. Yet another challenge is the need to address competition, At the same time, brands that achieve marketing or perhaps to gain domination over the opposition. This year,clarity need to share that knowledge internally across sponsors of pivotal sporting events like the Winter Olympicskey functions within the business. IBM is one brand that in Canada and the FIFA World Cup in South Africa have beenrecognizes this. Kevin Bishop, Vice President of Brand very active. Adidas is the major sponsor of football and boughtSystem and Workforce Enablement for IBM Worldwide sole rights for the event through FIFA. It sponsored the Germanexplains, ”It is the IBMer that really brings the brand to national team, 11 other national teams, and provided the balllife and translates the things that really make a difference (the Jabulani). At the same time, Nike, as we have becometo our clients.” This is why the brand has invested in accustomed to over the years, was extremely active throughinnovative initiatives like Beehive, which acts as a kind of other events with its own sponsorships. Its global effortinternal Facebook for employees to share information and included a three-minute video, a social-awareness anti-AIDScustomer insights. campaign and co-branding with (PRODUCT) RED. Nike has Diageo is another brand that shares its marketing clarity maintained its momentum well after the football tournamentacross its business. The brand makes its DWBB model (the ended, when others stopped. As it happened, the ﬁnal wasDiageo Way of Brand Building) central to its marketing culture played out by one team that was sponsored by adidas, andand internal communications because it forces clarity on one that was sponsored by Nike – a perfect match! – Jeremythose responsible for assets like Johnnie Walker, Smirnoff, Sampson, Group Executive Chairman, Interbrand JohannesburgBaileys and Guinness. The markets in which we operate aregrowing harder to understand, but brands that invest inclarity will out-perform those that run on the vapor of instinct.– Leslie Butterﬁeld, Interbrand Global Chief Strategy Officer
8 / INTERBRAND 5 AUTHENTICITY This component is about how soundly a brand is based on 6 RELEVANCE This component estimates how well a brand ﬁts with an internal capability. Authenticity asks if a brand has a customer needs, desires and decision criteria across all deﬁned heritage and a well-grounded value set, as well as appropriate demographics and geographies. if it can deliver against customers’ expectations. The world is moving fast and brands must keep up in Customers’ desire for authenticity has always been order to stay relevant. Whereas brands once focused on web essential, and the recession has only magniﬁed this need. experiences and online shopping to stay up-to-date, now Customers, more reluctant to spend, want to trust the brands they are adopting mobile practices to meet customers’ needs they purchase from – and a large part of how brands elicit this and desires. trust is through authenticity and a strong heritage. Gap is one brand that has integrated mobile into its brand A good example of how this is taking shape is in the luxury experience. It has developed a mobile shopping platform called sector. This year, the luxury brands that have prospered have Gap StyleMixer that includes video interviews, social feeds from been those that have remained true to their core values: brands twitter, and products that can be purchased directly from a like Hermès and Ferrari, which limit their production to focus device. Additionally, it was one of the ﬁrst to partner with the on craftsmanship and deliver on customer expectations. app Loopt to enable consumers to win rewards for checking Tiffany & Co., on the other hand, which focused on into various locations. Its direct mail catalogs also provide shifting its value from pure luxury toward “accessible luxury QR (quick response) bar codes that can be scanned with cell for all” hasn’t performed as well in authenticity over the past phones to get content associated with the product and allow few years. Luxury customers interested in making smart for quick mobile shopping. Overall, the effect is a seamless investment purchases are instead gravitating towards those brand experience – from in-store to web to mobile. brands (Chanel, Hermès, Gucci) that have stayed true to their And retail is not the only sector using mobile to stay roots. – Gonzalo Brujó, Managing Director, Interbrand Madrid relevant. In the ﬁnancial services sector, brands like Barclays and Citi have developed mobile banking capabilities to differentiate and keep up with growing demand. – Nicola Stanisch, Managing Director, Interbrand Moscow 9 PRESENCE This measures the degree to which a brand feels omnipresent and how positively consumers, customers and opinion formers discuss it in both traditional and social media. The rise of social media means that brands have new opportunities to elevate their presence. Today’s customers provide feedback online and brands are now expected to respond authentically and quickly to that feedback, or else put the brand at risk. A brand that does this exceptionally well and scores high in presence is Starbucks. While it may have lagged in other areas in the past few years, it continues to get social media right. It integrates many different elements – YouTube, Twitter, Facebook, a blog and mobile – combining them together to create a rich and positive online presence. Central to this is the digital dialogue the brand creates with its customers. This is achieved through a representative in every department, who reacts to the input and output happening online. Additionally, its Mystarbucksidea.com blog invites the customer to offer feedback and suggestions, which it often integrates into its brand experience. Overall, Starbucks’s effort has improved its brand perception and allowed it to create a deeper connection to customers. – Julian Barrans, Managing Director, Interbrand Singapore
BEST GLOBAL BRANDS 200100 / 97 UNDERSTANDINGNot only must customers recognize the brand, but there 8 CONSISTENCY This measures the degree to which a brand is experiencedmust also be an in-depth understanding of its distinctive without fail across all touchpoints and formats.qualities and characteristics, as well as those of the brandowner. When we think of consistency, Nike always comes to mind. With its iconic swoosh – a design element from the past – it Apple is a brand that customers immediately understand. creates one universal experience across every touchpoint,They know what they get out of adopting and associating with from advertisements to websites. In recent years, however,it. Its products are seen as innovative and creative. In contrast consistency has become a bit more complicated.to Dell, which creates products that lack any consistent visual As brands continue to expand, they feel the pressure to adaptcues, Apple’s design is consistent and distinctive – from the to local markets. But this doesn’t have to lead to inconsistency.clean, silver or smooth white of its laptops to the pocketsize McDonald’s, with its green-tea-ﬂavored milkshakes in Japanrectangle of its iPod or iPhone. and its Chicken Maharaja-Mac in India, is consistent about its This immediate understanding of the brand is in part inconsistency – and has endeared itself to youth around thedue to its brand owner, Steve Jobs. Unlike Dell, which lacks world. Nokia has adapted to the Indian market by creatingan innovative face to match its brand, Jobs’s stamp is on models that are also functional ﬂashlights (which come ineverything Apple creates and he’s generally understood to be handy for dust storms) and only available in that market; yetthe brilliant visionary behind its products. Love him or hate the product remains consistent with its brand promise, whichhim, he humanizes the brand by giving it a face. This means is all about functional and creative mobile devices. At the samethat even when Apple stumbles, as with iPhone 4’s reception time, Disney, which is expected to deliver on unparalleledproblems, loyalists appear to be more accepting than they entertainment experiences, suffers when it merely duplicatesmight be of another brand. Customers understand Jobs’s its amusement parks around the world; to stay consistentunwavering commitment to creating exceptional, beautiful with its brand promise, it would do better to reinventproducts. As a result, they are perhaps more willing to give them to delight and entertain new and diverse customers.the Apple brand the beneﬁt of the doubt, while the company – Atsushi Iwashita, CEO of Interbrand Tokyoworks to ensure that its technology functions better. That’snot a card to play too often though! – Andy Payne, InterbrandGlobal Chief Creative Officer10 DIFFERENTIATIONThis is the degree to which customers perceive the brand tohave a positioning that is distinct from the competition. This year, smartphone brands like Apple, Google andBlackBerry faced increased competition and found itparticularly difficult to carve out a unique niche. All focused oncreating products that stand out from competitors. Whetherits super sensitive touch, third-party apps, faster connectionspeed or more social capabilities, the war is on to build andpreserve loyal customers through a differentiated positioning.BlackBerry may still lead, but the iPhone is the benchmark,with other brands close on their heels. Meanwhile, due to the ﬁnancial downturn, banking brandshave a new opportunity to differentiate. The previously low-involvement, inertia-driven category has become one driven byemotional, brand-inﬂuenced criteria. In particular, banks likeSantander and Credit Suisse, which stayed relatively immuneto the crisis due to conservative investment decisions, havesucceeded in crafting a differentiated positioning this year.– Nina Oswald, Managing Director, Interbrand Cologne
10 / INTERBRAND There are several criteria considered These requirements that a brand be equire s tha n when valuing the brands for our Best global, visible and relatively transparent bl ativ v sparen ar Global Brands rankings. in ﬁnancial results lead to the exclusion x usioi of some w m well-known brands that might nd hat mi ht d at might The brand is tru y global and has nd truly o erwise otherwise be expe ted to appear in the is expec p successfully transcended geographic fully ranscended g ograph rankings. The Mars and BBC brands, for ankin an ng The Mars a ar a s o an ultural ff and cultura differences. It has expanded ces. ces has expand d anded exampl are p ivatel example, ar privately held and d not xamp r e el n do a acr ss the esta ac oss the established economic centers st conomi enters mic rs s hav nancial data publicly available. ha e ﬁna va labl of the world and is ent ring the major he world n s ent nterin h majo nte or Wal M Wal-Mart, although it does business bu ma kets markets of the future. In measurable the t e h asur e asu in international markets, often does i f te terms, this requires that: thi re uires so under a variety of brands, and is not sufficiently global. Likewise, several s At least 30 percent of revenues astt es industries have been excluded for similar must come from outside the home u t ide th hom he ho reasons, such as telecommunications, m cou ountry, and no m re than 50 percent o mo e n 50 r e rc which tend to be strongly oriented to of revenues should come from any come rom ny national markets and face awareness one continent. n challenges outside of home markets. Major pharmaceutical companies, It must have a presence on at least while very valuable businesses, are also three major continents, and must omitted. This is because consumers tend have broad geographic coverage in to build a relationship with the product growing and emerging markets. brands rather than the corporate brand. Additionally there is not enough There must be substantial, publicly T publicly disclosed financial data on available data on the brand’s ﬁnancial pharmaceutical product brands to meet performance. our criteria. Economic profit must be positive, To ﬁnd out more about Interbrand’s showing a return above the operating methodology, look online at: and ﬁnancing costs. www.bestglobalbrands.com g The brand must have a public proﬁle and awareness above and beyond its own marketplace.
BEST GLOBAL BRANDS 200100 / 11Interbrand’s method looks at the ongoing its organization – from attracting and There are three key aspects that contributeinvestment and management of the brand retaining talent to delivering on customer to the assessment: the ﬁnancial performanceas a business asset. This means that our expectation. The ﬁnal value can then be used of the branded products or services, the rolemethod takes into account all of the many to guide brand management, so businesses of brand in the purchase decision process andways in which a brand touches and beneﬁts can make better, more informed decisions. the strength of the brand. FINANCIAL PERFORMANCE ROLE OF BRAND BRAND STRENGTH Financial performance measures an Role of brand measures the portion Brand strength measures the ability organization’s raw ﬁnancial return of the decision to purchase that is of the brand to secure the delivery to its investors. For this reason, it attributable to brand – this is exclusive of expected future earnings. Brand is analyzed as economic profit, a of other aspects of the offer like price strength is reported on a 0 to 100 concept akin to Economic Value or feature. Conceptually, role of brand scale, where 100 is perfect, based on Added (EVA). To determine economic reﬂects the portion of demand for an evaluation across 10 dimensions profit, we remove taxes from a branded product or service that of brand activation. Performance in net operating proﬁt to get to net exceeds what the demand would these dimensions is judged relative operating proﬁt after tax (NOPAT). be for the same product or service to other brands in the industry, and From NOPAT, a capital charge if it were unbranded. Role of brand in the case of exceptional brands, is subtracted to account for the determinations for this study derive, relative to other world-class brands. capital used to generate the brand’s depending on the brand, from one of The brand strength inversely revenues; this provides the economic three methods: primary research, a determines, through a proprietary proﬁt for each analyzed year. For the review of historical roles of brand for algorithm, a discount rate. That rate purposes of the rankings, the capital companies in that industry, or expert- is used to discount branded earnings charge rate is set by the industry panel assessment. The percentage back to a present value based on the weighted average cost of capital for the role of brand is multiplied by likelihood that the brand will be able (WACC). The ﬁnancial performance the economic proﬁt of the branded to withstand challenges and deliver is analyzed for a ﬁve-year forecast products or services to determine the expected earnings. (Read more and for a terminal value. The terminal the amount of branded earnings that about Interbrands 10 Brand Strength value represents the brand’s expected contribute to the valuation total. components on pages 6-9.) performance beyond the forecast period. The economic proﬁt that is calculated is then multiplied against the role of brand to determine the branded earnings that contribute to the valuation total as noted earlier. Operating Proﬁts – Taxes = Branded Earnings x NOPAT – WACC = → Economic Proﬁt x Role of Brand = → Brand Strength Discount Rate =$ ECONOMIC PROFIT BRANDED EARNINGS BRAND VALUE BRAND VALUE RESULTS: The parts come together so that the forecasted ﬁnancial performance projects economic proﬁts that are multiplied by the role of brand to reveal branded earnings. These branded earnings, which are based on the brand strength, are discounted back to a present value and totaled to arrive at a brand value.
BEST GLOBAL BRANDS 200100 / 13 2010: 3,821 $m 2009: 4,370 $m 2008: 8,740 $m -13% UBS 2010: 8,887 $m 2009: 10,254 $m 2010: 8,880 $m 2008: 20,174 $m 2009: 10,291 $m 2008: 11,695 $m -13% CITI-14%DELL 2010: 29,495 $m 2009: 34,864 $m 2008: 35,942 $m -15% NOKIA 2010: 26,192 $m 2009: 31,330 $m 2008: 34,050 $m 2010: 3,281 $m 2009: 4,337 $m 2008: 7,609 $m -16% -24% TOYOTA HARLEY-DAVIDSON Technology brands like Google, Apple and BlackBerry saw huge gains and those ﬁnancial service brands that emerged from the crisis with their reputations intact saw recovery. Meanwhile 2010’s top decliners need to focus on trust or improving their value propositions.
14 / INTERBRAND 170,452 $m + 2% COCA-COLACoca-Cola gets almost everything right. Its brand promise of fun, Facebook and 96,385 followers on Twitter as of August 2010. And whilefreedom, spirit and refreshment resonates the world over and it excels its brand may not be perceived as the best corporate citizen, in reality itat keeping the brand fresh and always evolving – all this, while also leads in this area as well, providing US $305 million through the Coca-maintaining the nostalgia that reinforces customers’ deep connection Cola Foundation. The brand is likely to face challenges as customersto the brand. For such a large brand, it operates quickly, ﬂexibly and grow more health conscious in the coming years, and soda is increasinglyinnovatively, tailoring itself to local markets without tarnishing its taxed in the U.S. However, it is already thinking ahead with aggressivelegacy. This includes different ﬂavor proﬁles in each country and shrewd targeting of fast-developing markets and programs like Healthy Activedistribution models in fast-developing world markets (for example, carts Living which address this criticism head-on.in India). It has adapted quickly to social media, with 11 million fans on 264,727 $m + 7% IBMIBM made 108 strategic acquisitions over the past nine years to year, IBM displayed its innovation through a host of social mediastrengthen its portfolio and continue its seamless evolution from initiatives, which you can read more about in our brand strengthhardware to service to knowledge economy to innovation. Through component section on page 7. IBM also leads its category when itthis journey the company has more than once reinvented itself, comes to corporate citizenship.doing a great job of anticipating areas of growth, high proﬁtabilityand value creation. Today, IBM helps clients achieve ﬂexibility andcompetitive advantage to succeed in the networked economy. Itsfocus on emerging economies allows the company to tap into double-digit growth by providing the infrastructure its clients require. This 360,895 $m + 7% 443,557 $m + 36% MICROSOFT GOOGLEWith the global recession, Microsoft saw its ﬁrst drop in annual revenue As Google continues its upward path, it increasingly ﬁnds it difficult to– a three percent decrease from US $60.4 billion in ﬁscal 2008 to US reconcile its brand promise, “Don’t be evil,” with the realities of a powerful$58.4 billion in ﬁscal 2009. Operating income and earnings per share global brand. Although it continues to leverage this messaging throughalso dropped. In recent years, Microsoft has spent more time creating investments in Google.org (its not-for-proﬁt philanthropic arm) and adefensive products rather than innovating – for example, launches of the number of other initiatives, its access to user information and what it isXbox to compete with Sony Playstation, Bing to compete with Google, doing with it is increasingly being scrutinized. Recently, it compromisedthe quickly abandoned Windows Kin Phone to compete with Apple a key value – trust – when it violated 176 million users’ privacy withiPhone, Windows 7 to compete with Linux, and updated other software Google Buzz. And though its effort to pull out of China, which wassuch as Visual Studio, Microsoft Office and Microsoft DirectX. Still, censoring the search engine, and realign with its message demonstrateddespite the many rivals close on its tail, Microsoft maintains its position its commitment to its promise, only a few months later, it was quietlyas the number one operating system on the market. This year, it proved persuaded to work with the regime again. Still, Google’s reach and recordit is still capable of innovation with the introduction of its Xbox Kinect, for innovation is undisputed. Expect the brand to continue to diversifywhich uses original technology. and expand, even as it experiences increasing backlash.
BEST GLOBAL BRANDS 200100 / 15 542,808 $m - 10% 633,578 $m + 4% GE MCDONALD’SGE continues its two-year decline in brand value. Whereas last year The market leader in its category, McDonald’s remains globallyit was the ongoing problems at its consumer ﬁnance division that versatile, approachable, value-driven and reliable in a year when Burgerplagued the brand, this year it is GE’s lack of focus as it moves from King fell off the table. Already a strong brand with deep roots, theecomagination to its healthymagination initiative. While it continues recession reminded people once again of its great value. McDonald’sto lead in terms of sustainability, this year the importance of green has seized the opportunity to capture a new audience and drive salesdecreased. Instead, efficiency has become the new watchword. GE even further by upgrading its coffee to make it more premium andhas also been focusing on introducing more new products at more introducing healthier menu options – a move that should help it in theprice points. The idea is to drive management practices to capture new long-term. This, along with constant rollouts of new café concepts andopportunities – essentially taking a low-cost, fast-developing market contemporized environments, put McDonald’s in more considerationbusiness model and translating it to the developed world. While this sets for more occasions. The brand wins A’s all around for its corporatemay prove an opportunity, the brand’s current lack of direction due to citizenship efforts, as well as its social media endeavors (particularlythe transition is driving down its value. “Voice of McDonald’s”). 732,015 $m + 4% 829,495 $m - 15% INTEL NOKIAIn a year that saw many companies pull back, Intel stayed the course, For years, Nokia has been perceived as a company that is committedcommitting billions of dollars to new and updated manufacturing to enhancing of communications by offering affordable, accessible,facilities, which accelerated the rollout of new processors. It looked functional and creative mobile phone devices and applications.for ways to expand the business in two directions: moving beyond However, while Nokia certainly maintains leadership in global marketthe PC and server market, launching chips for everything from mobile share of handsets, the brand has fallen behind where the most proﬁtablephones to smart TVs, and creating ways to help its partners improve sectors of the market have developed – most notably, smartphones.their businesses via an app store and the creation of an applications The brand was late in coming to market with a compelling productdeveloper program. It has also addressed the issue of security by and it is in this new category that growth, relevance and emotionalrecently acquiring McAfee. The brand itself has been on a kick, connection with the brand is built. Nokia was also caught unpreparedsimplifying things to help consumers navigate, but now must balance for the follow-on explosion of apps and the OS they run on, making itthe strength of its heritage as a PC-centric ﬁrm with the clear need to difficult for the brand to build an effective ecosystem for its products.become a brand for the future of computing, where phones, TVs, cars With these challenges and the weakening of the role of hardware overand everything else are themselves smart. Only time will tell whether carriers, Nokia is seeing clear challenges ahead that may be hard tothe brand that acted as the engine of computing for the past 20 years overcome in the short-term.will continue to play that role for the next 20. 928,731 $m + 1% 10 26,867 $m + 12% DISNEY HPDisney again leveraged its history of quality, family-fun experiences HP continues to expand its product portfolio since the acquisition ofthrough clean, well-managed parks and kid-oriented movies and EDS in 2008 expanded the HP brand into the services category. Themerchandise. This year, the youth-oriented brand continued to highly diversiﬁed business with its wide audience reach creates uniquecultivate a strong social media presence, and announced that it challenges. As it evolves into more of a services and software provider,would be rebranding its stores to make them more theme-park-like HP needs to show that the innovation it is known for in hardwareand multisensory. Despite the hits to the amusement park industry will be replicated in its newer, less tangible offers. The diversity of itsdue to a decline in tourism, incentives like free tickets for volunteer competitors and geographies continues to put pressure on the brand,work as well as a variety of discounts on park admission and hotel as it must play to both local and global considerations. The company isstays have kept the parks in demand. While the brand continues to working to unify all businesses under one HP brand platform: “Let’s Doexpand, it could be more innovative about adapting to the needs of Amazing.” The recent launch of the brand campaign aims to highlightcustomers in different parts of the world, rather than just duplicating the breadth of the portfolio and infuse consistency across segments.what it has done in the past. Continued success hinges on the commitment of all business units and an effective engagement of its 300,000-person workforce.
16 / INTERBRAND 11 26,192 $m - 16% 12 25,179 $m + 6% TOYOTA MERCEDES-BENZThe number one car manufacturer in 2008, Toyota had established In tough times, Mercedes-Benz has stuck to its core values (safety,itself as a leader in dependability, reliability, safety, efficiency, luxury, excellence, pride in its products and innovation) and seen itsinnovation, longevity and sustainability through its pioneering hybrid brand beneﬁt as a result. Customers looking for quality returned toengines. That’s why its January 2010 recall did so much damage – it the brand, despite cheaper competitors. While it continues to struggleseemed to contradict everything the brand stands for. Meanwhile, with attracting a younger audience due to its reputation as a traditionalreluctance to acknowledge the problem only made matters worse. and conservative brand, it has made efforts to infuse sportiness andWhile Toyota’s brand architecture (almost exclusive focus on a single freshness into its tone of voice. Overall, it continues to grow its brandcorporate brand) was previously one of its greatest advantages, it with constant innovation, which has garnered it numerous awards.has since become its biggest strategic problem. Because Toyota uses Like virtually every brand in its sector, Mercedes-Benz is taking “green”shared parts and technologies across multiple models, a technical seriously. This year, the brand known for its large premium cars, displayedhitch with one car also means problems with others. Still, historically, green power with its Blue EFFICIENCY, Blue HYBRID and BlueZEROToyota has been a resilient brand, and weathered the recession well. brand models.It is unclear if it can lift itself out of its crisis, but it does show signsof improvement – a promising partnership with Tesla, for example,and a less signiﬁcant proﬁt hit than expected due to incentive offers. 13 23,298 $m + 2% 14 23,219 $m + 5% GILLETTE CISCOGillette continually improves its product line by creating innovative Cisco continues to evolve, catching and addressing new trendsproducts that help solve men’s most mundane, everyday chore. For that represent market disruptions. The latest surge on video andproducts as ordinary as a razor blade and shaving cream, Gillette has collaborative 2.0 technologies further supports Cisco’s strategyintroduced new technologies in this market more than any other of changing how people connect, communicate and collaborate.competitor. However, many of these innovations are easily copied, Cisco’s move to grow presence and relevancy in the consumer marketsuch as gel shaving cream and multiple razor blade technologies. In continues; the brand is striving to create compelling consumerrecent years, Gillette has taken to user-generated content and other experiences and make the network the platform for a variety of servicesonline media to further grow its brand among younger users. While in the home as broadband development moves from a device-centricGillette might be best known for its campaigns featuring sports legends phase to a network-centric model. Additionally, Cisco keeps a strongsuch as Tiger Woods, Thierry Henry and Roger Federer, its partnership focus on China and India, which can provide signiﬁcant opportunitieswith Woods and Henry has led to a rash of negative publicity after they for growth. The 2006-created brand tagline “Welcome to the Humanwere both embroiled in scandal and controversy last year. Network” remains consistent and strong. 15 22,322 $m + 3% BMWBMW is lagging behind its key competitors Mercedes-Benz and moves away from its historical focus on engineering and performance.Audi. So far, BMW seems up to the challenge, with plans to renew However, the brand continues to be named a top employer worldwide60 percent of its products by 2012 and the successful launch of the and it also leads in terms of corporate citizenship – this year launchingnew 7 Series, as well as the launches for the new BMW Z4, the new a sustainability campaign, “What’s next?” Additionally, it has two5 Series GT and the BMW X1 series. This year, it also moved forward much-hyped hybrid models entering the market in 2011, whichwith a new deliberately democratic communications campaign: reportedly don’t compromise on the brand’s trademark design.“Joy is BMW,” which has received mixed reviews. The campaign
BEST GLOBAL BRANDS 200100 / 17 Apple’s glowing sales, massive buzz and great design keep pushing it ahead 2010 21,143 $m 2009 15,433 $m 2008 13,724 $m 0 2,5 5,0 7,5 10 12 15 17 20 ,50 ,00 ,00 ,00 ,50 0 0 0 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ m m m m m m m m 16 21,860 $m + 4% 17 21,143 $m + 37% LOUIS VUITTON APPLELuxury fashion and luggage brand Louis Vuitton continues to Apple had another great year. Negative buzz over the iPad name wassuccessfully differentiate itself by focusing on the art of the journey, quickly replaced by glowing sales and avid converts. Meanwhile, thedespite continued counterfeiting problems. Its ﬁrst jewelry collection, iPhone 4’s sales reached the 1.5 million mark on its ﬁrst day. It continuesL’ âme du Voyage, by French designer Lorenz Bäumer, was consistent to control its messages very carefully, which creates enormous buzzwith this journey theme. So was its well-received London West End and anticipation. Advertising campaigns and interactive websites“boutique fantasque,” which evokes the home of a collector. This remain distinct and consistent, keeping the role of brand exceptionallyyear, its single deviation from this thread was its Vermeer-like portrait high. If the brand has one fault, it’s the failure to provide perfectlycampaign, which was the subject of some controversy due to its claims functioning new products. This year, iPhone 4’s reception glitchesthat Louis Vuitton’s products were all handcrafted. Overall, however, warranted a public apology from Steve Jobs – and left the door widethe brand is performing strongly and should expect to see continued open for public criticism. Apple could also improve its corporategrowth in Asia (particularly Japan) once the market revitalizes. Not only citizenship proﬁle, which remains neutral. While it partners with thehas the brand cultivated a strong social media presence on Facebook PRODUCT (RED) Global Fund, this remains relatively unknown.and Twitter, but its corporate citizenship policies are particularlynotable for this category: It has made progress in reducing the energyit consumes and communicates this clearly to employees as well. 18 19,961 $m + 5% 19 19,491 $m + 11% MARLBORO SAMSUNGMarlboro has a very strong past – it is about heroic men, naturalness Samsung has been on the forefront of digital and design, developingand simplicity. However, recently it has attempted to make the new products and increasing its presence in all its markets. Its salesbrand more contemporary, by using more youthful, modern images, growth, even in tough economic times, demonstrates its ability tosometimes getting rid of cowboys, and focusing more on parties and effectively hedge its portfolio of businesses. This year, Samsung sawyoung people. As a result, its image as a brand is a little unclear. Its strong mobile phone sales. In the U.S., it also placed number one forgeneralness, which was once its strength, has become a weakness, as HDTV shipments and French-door refrigerators. But while Samsungit continues to lose out to customers who prefer cigarettes associated continues to carve a reputation for itself and has maintained its pricewith a more distinct personality, like Dunhill or Gauloises. A strong premiums, it would beneﬁt from better brand consistency, as well asand consistent story will be more important than ever before as a uniﬁed brand promise.India, Brazil, China and Russia are the new growth markets. One areawhere Marlboro leads is in addressing the risks associated with itsproduct. Not only does it ensure that its labor situations and tobaccofarming are impeccable, but it also invests in educating children andin domestic violence prevention.
18 / INTERBRAND 20 18,506 $m + 4% HONDAThis year Honda regained some of last year’s losses, although it has GM. The introduction of the fuel-efficient Honda Insight, social medianot quite recovered to its 2008 brand value. While motorcycle sales activity, signiﬁcant growth in China, India and South America, as wellhave held consistently steady thanks to growth in the Asia Paciﬁc as Toyota’s recalls have helped boost the brand, further leveragingregion, the ﬁnancial crisis and the surge in value of the yen resulted its promise of reliability and affordability. Beyond hybrids, Honda isin a decline in demand in the U.S. and Europe. Additionally, as Honda also engaged in a broad range of initiatives that support sustainablemoves forward, it will need to step up its product development and development, particularly through enhanced quality, safety anddesign in order to compete with Kia, Hyundai and potentially Ford and environmental conservation. 21 16,136 $m + 5% H&MThe Swedish retailer H&M irreverently mixes high fashion inspiration with UNICEF, All for Children, to protect children’s rights in a heavywith bold-print low prices, and demonstrates that it knows the quality cotton-producing area in India. While H&M engages consistentlyof its brand promise is about more than product and price points. with its customers on Facebook, YouTube and Twitter to drive trafficWith 2,000 stores across 37 markets, H&M takes responsibility for to its online store (which is not yet globally available), its stores andthe integrity of its operation chain, from employees to materials. window displays continue to be the brand’s most important channelCorporate citizenship investment includes a ﬁve-year collaboration of communication. 22 14,881 $m + 9% 23 14,061 $m + 3% ORACLE PEPSIOracle has bought over 50 companies since 2005, among them Representing fun and refreshment and aimed at a younger-mindedsoftware heavyweights such as PeopleSoft, Siebel and BEA. This audience than its direct competitor, Coca-Cola, Pepsi has the freedomyear, it continued to expand from primarily software into hardware, to express itself creatively and progressively. Its offer for customers tomerging with Sun Microsystems – a deal that gives it control of get phone credits with every purchase displays a willingness for theJAVA (programming language), Solaris (operating systems), SPARC brand to live out its positioning as a youth-oriented challenger brand. Inprocessors and the MySQL database, all of which will strengthen its a bold move, Pepsi skipped the Super Bowl this year, instead allocatingportfolio of middleware and business applications. As Oracle’s current US $20 million to engage consumers through digital campaigns. Itsbrand communication strategy remains unclear, it will have to work corporate citizenship programs are extraordinarily well received –hard on integrating the two companies successfully. Only recently has particularly its latest initiative to pull soft drinks from schools. Whilethe brand begun to modify its aggressive, sales-focused personality this might impact brand sales in the short-term, it ultimately will payto one that is more customer-service centric. off. This year in particular, its Pepsi Refresh Project, which combines both social media and corporate citizenship to stretch Pepsi’s message of youth and optimism, was especially successful.
BEST GLOBAL BRANDS 200100 / 19 24 13,944 $m - 7% 25 13,706 $m + 4% AMERICAN EXPRESS NIKEWhile American Express’s brand value is still far from what it was in It would be hard to think of a brand that has a clearer, more consistent2008, it has weathered the ﬁnancial crisis fairly well. Now more than heritage than Nike. From its name to its positioning, victory is theever, a credit card that requires you to pay it off monthly and is prudent thread that runs through the brand. While Nike’s spending onabout who it offers credit to, looks like a safe investment. Moreover, endorsements, promotions and advertising has not grown in itsno other credit card company successfully charges and justiﬁes an most recent ﬁscal year, the brand has been focused on the ROI of itsannual fee like Amex, and with new credit card regulation impending, US $2.35 billion global marketing budget. One success has been theits revenue model is much less at risk than competitors. As Warren company’s ability to create content that attracts millions of viewersBuffett recently said in an interview with CNBC, “American Express without any supporting advertising. Competition from adidas,is going to be around forever.” However, this hasn’t kept the brand however, means that Nike still needs to focus on upping the stakes.immune from its own share of embarrassments. For example, in April, In particular, it could improve when it comes to social media, as thisAmex signaled to the world that it was in trouble when it offered a is one area where it trails adidas. This year, despite some hits for itssmall number of cardholders with ongoing debt issues US $300 each support of Tiger Woods throughout his scandal (as well as negativeto pay off their account balances and close accounts – a move that criticism for its ad that aired on the subject), the brand seems towas made to reduce the risk of defaults. have escaped relatively unscathed. Additionally, Nike continues to focus on reversing its “children in sweatshops” image through good corporate citizenship. 26 12,756 $m + 5% SAPSAP continues its steady rise. It launched a new campaign, “It’s software as an online service (called Business byDesign) wasn’t a hugeTime for a Clear New World,” which clariﬁed this shift to customer success. SAP’s decision to raise maintenance fees, which customersneeds, showing how SAP solutions offer businesses transparency and have to pay to get upgrades and support on products they haveaccountability. It remains one of the most globally integrated among big previously bought, proved unpopular. In January 2010, after monthsIT ﬁrms, with most of its 50,000-plus employees now working outside of complaints, it was forced to scrap the fee increases. This year,of Germany, in areas like Bangalore and Silicon Valley. SAP continues to the recession also forced SAP to cut costs sharply and lay off nearlygrow its social media community and corporate citizenship practice 4,000 employees.through initiatives like EcoHub, an online marketplace for customersto discover, evaluate and buy SAP’s Ecosystem solutions. But, whilethe brand has excelled in certain areas, this year its attempt to offer 27 12,753 $m - 4% NESCAFÉWhile NESCAFÉ continues to differentiate itself as a pioneer in and now NESCAFÉ looks like a brand on the decline. In the instantproviding coffee, the rise in popularity of Starbucks and independent coffee market, it also faces strong competition from Starbucks’s VIA.coffeehouses in the past 10 years has made competition stiff and altered Still, NESCAFÉ has stayed competitive when it comes to corporateconsumption patterns. Overall, its long-term performance looks citizenship programs; it supports indigenous coffee farmers and hasless positive than its history. Meanwhile, its focus on Nespresso, its been working on creating sustainable packaging and manufacturing.next-generation product, has been at the expense of the masterbrand
20 / INTERBRAND 28 12,487 $m + 4% 29 12,314 $m + 29% IKEA J.P. MORGANIKEA is the company that made furniture fashionable, cheap and J.P. Morgan is one of the few ﬁnancial services brands that emergeddisposable. It continues to display innovation in product design, from the economic crisis with its brand intact. While it has recentlylooking to ski makers who bend wood and shopping cart makers to made impressive economic gains, like most brands in its space the ﬁrmunderstand how to make sturdier furniture. It has made a signiﬁcant still suffers from negative public perception, as evident from sites likeeffort to include Scandinavian design and culture into all of its JPMorgan666.blogspot.com. However, in comparison to Goldmantouchpoints, which reinforces what IKEA stands for. IKEA only has Sachs, J.P. Morgan faces fewer challenges when regaining customerﬁve-10 percent market share, but its awareness levels are incredibly trust. Additionally, the ﬁrm continues to be viewed positively for itshigh for a business of its size, which speaks to the high affinity for the internal efforts. For example, it was just voted the number one idealbrand. Its effort to cut prices on its items as well as promote itself in employer in ﬁnancial services for undergraduates by BusinessWeek, anda humorous and quirky way keeps customers engaged and supports it was ranked at the top of Bloomberg Markets’ ranking of investmentthe cult following IKEA has built over the years. Additionally, because banks in April. This year, J.P. Morgan’s effort to go mobile with itsIKEA had corporate citizenship initiatives in place before it became launch of MorganDirect on iPhone, as well as its investments ina corporate trend, they are tied well to the overall brand strategy. In corporate citizenship practices like a student-led project in Rwanda,2009, IKEA entered its 25th market, opened 15 new stores and saw were notable.an increase in sales. 30 12,252 $m + 4% BUDWEISERBudweiser’s all-American beer product has remained relatively presence at the Super Bowl, but despite attempts to globalize with theunchanged throughout the years. In particular, the brand has excelled FIFA World Cup and penetration efforts in Asia, it continues to be veryin pulling such design elements of the past as its hallmark Clydesdales, American-focused. Overall, its positioning as an “American product”and making them more relevant for today. It has also responded well to does not have the same relevance in all geographies. A user-generatedbeer trends, creating Bud Light, the world’s best-selling beer, as well as online video contest, in partnership with the popular ChineseBL Golden Wheat, Select 55 and Budweiser 66 in the U.K.– although video-sharing site Tudou.com, shows that it is putting time into itshas proven to be more of a follower than an innovator. It is a huge global presence. 31 11,826 $m + 2% 32 11,561 $m + 10% UPS HSBCUPS, famous for its package delivery expertise, is still not well known Despite the damage inﬂicted by the ﬁnancial crisis on all ﬁnancialfor other areas of its business. Expansion into business services services brands, HSBC remains the most differentiated in thehas made the brand proposition has become broader and weaker. marketplace and, like J.P. Morgan, emerged with its brand intact. Yet“Synchronizing the World of Commerce” is quite a heady concept while it still aims to be the leader in its sector, customers are watchingthat will take time to translate to the average customer. Since its it closely due to its involvement in the subprime mortgage scandal,refresh several years ago, the UPS brand has maintained its strong and even more recently, the data theft of its customers’ personalperformance while slowly expanding perceptions. While it received account information. Despite being well known due to a heavy mediaa 2009 California Air Quality Award in Corporate Leadership, its presence, HSBC’s lack of retail presence in non-core markets hascorporate citizenship strategy could be better tied to the brand. consistently hurt the brand. It actively seeks expansion opportunities, particularly as brands like Santander extend their reach. This year, HSBC has continued to explore opportunities in emerging markets, though the economic results in Asia were less rosy than anticipated.
BEST GLOBAL BRANDS 200100 / 21 33 11,485 $m + 10% CANONSince 1933, Canon has maintained its leading position in the global Association (PGA), National Football League (NFL), Major Leaguecamera market and expanded into imaging solutions with its focus on Baseball (MLB) and U.S. Open Tennis. As Canon’s social media presencecreating unique technology. The brand has focused on reinforcing its proves, its fans are loyal – it has a huge following on Twitter, blogscorporate citizenship initiative with an environmental vision centered and Flickr group pages, which appear to be generated entirely byaround its philosophy of "achieving growth and development, while brand loyalists, rather than the company itself. Although its brand iscontributing to the prosperity of the world and the happiness of loved around the globe, it suffers from a fragmented and inconsistenthumankind." In the U.S., Canon sponsored a wide range of sports worldwide product portfolio and brand strategy that likely causeorganizations, events and programs, including the Professional Golf inefficiencies in the brand and business management. 34 11,356 $m - 5% 35 11,041 $m + 6% SONY KELLOGG’SSony, the premier provider of networked consumer electronics Kellogg’s is arguably the best-known brand in breakfast products. Itand entertainment, is becoming increasingly efficient, agile and is clearly committed to brand, as it is one of the top 50 advertisinginnovative – although it still faces steep competition from Samsung. spenders, according to Advertising Age. However, with the continuedThe business has been negatively impacted by the appreciation of the economic pressure and resulting dip in sales last year, there is evidenceyen and the recession’s impact on customers’ purchase patterns, but that some consumers may be trading down – making price moreSony continues to differentiate itself from other consumer electronic relevant than brand in the categories in which Kellogg’s competes.companies through functional value and outstanding design. In The Kellogg’s tone of voice can be a bit whimsical at times as it targetsSeptember 2009 Sony launched the brand message “Make.Believe,” most of its advertising toward young families. Despite this, it does notwhich aims at uniting Sony’s communication efforts across its diverse lose track of the desire to push the nutritional aspects of its products.product portfolio. The intent is to provide a single face for the brand Kellogg’s is using social media to raise awareness of the growingand convey Sonys role to the world. Sony also showed its corporate hunger epidemic in the U.S. and elsewhere through a partnershipcommitment to reducing global greenhouse gas emissions by seven with Katalyst, Ashton Kutcher’s social media studio. Kellogg’s succeedspercent in 2010. This year it introduced energy-efficient products such in raising money through Facebook for organizations like Feedingas the BRAVIA V5; it claims that the power consumption of the 40- and America, and other campaigns as well.46-inch models are the lowest in the market. 36 9,665 $m + 23% AMAZON.COMIt was a great year for Amazon.com. Although it saw new Kindle Amazon.com’s bargaining power (as evident in the latest agreementcompetitors this year, it still retains roughly 90 percent of the e-book between Simon & Schuster and HarperCollins on the pricing ofmarket. Similarly, it continued to beneﬁt from the recession, as electronic books). Surprisingly enough, the leading online retailercustomers continued to bargain shop online. Still, despite signiﬁcant has a minimal social media presence and virtually no corporategrowth, the brand is likely to experience challenges in the years to citizenship practice.come. Its Kindle faces growing competition and which is lowering
22 / INTERBRAND Goldman Sachs was humbled in 2010 2010 9,372 $m 2009 9,248 $m 2008 10,331 $m 8,5 8,7 9,0 9,2 9,5 9,7 10 10 10 ,00 ,25 ,50 50 50 0 0 5 00 0$ 0$ 0$ 0$ 0$ 0$ $m $m $m m m m m m m 37 9,372 $m + 1% GOLDMAN SACHSFor decades, Goldman Sachs was the ﬁrm that Wall Street envied. It settlement with the SEC regarding mortgage securities fraud, reportsbred some of the smartest investment bankers and proprietary traders of the company’s currency swap deal that may have led to Greece’sand housed large private equity and hedge funds. Today, however, its collapse only fuelled the ﬁre. Goldman currently faces a dichotomy:aggressive, titanic leadership image has become a detriment. While On the one hand, its economic results appear to be more stable thanthe bank may appear to have been humbled with the rest of Wall Street its competitors (although it faces a weaker quarter). On the other, itin 2008, after a government bailout, strong earnings and high bonuses faces an angry public who will only continue to lash out until Goldmanhave led to a great deal of debate around whether Goldman Sachs is Sachs begins to demonstrate that it is making sincere efforts to betterworking in the best interest of its clients or itself. Despite a recent align its ethics with its brand. 38 8,990 $m - 2% 39 8,976 $m + 6% NINTENDO THOMSON REUTERSIn 2009, the downturn in the economy prompted families to stay Thomson Reuters’s continued investment in the brand is beginningin and play video games. This year, it is becoming apparent that to show dividends across the portfolio as all offerings are beingthe same trend is not likely to persist if the recession lifts. Although streamlined and tied closer to the brand. Product launches continueNintendo continues to extend its brand promise, “we deliver a smile to be signiﬁcant proof points for the brand and the platform offor every person,” by creating products for all audiences – whether it “intelligent information.” The company continues to anticipateis a mental exercise game, ﬁtness or musical instrument instruction market requirements and advance the technological capabilities of its– a proliferation in software has led to a dilution, in the customer’s products to stay ahead of the competition. As part of its globalizationmind, of who owns the brand. Wii is still a true cross-generational strategy, Thomson Reuters sought opportunities in the developinghit and Nintendo’s portable 3DS (which can produce 3-D effects economies of China, India, Brazil and completed 31 acquisitions inwithout glasses) offers something new to the mix, but Microsoft’s 2009, 16 of which were outside the U.S. It continues to focus onKinect motion-control technology system, and Playstation’s Move are employee development programs and invest in diversity, communityoffering new competition for Nintendo. impact, responsible sourcing and the environment as some of the new ways to build its global brand.
BEST GLOBAL BRANDS 200100 / 23 40 8,887 $m - 13% 41 8,880 $m - 14% CITI DELLCiti was one of the brands most impacted by the economic crisis and Dell has started to focus on developing its brand and sub-brandsthere is continued uncertainty around the long-term direction of the more than before, although it has had difficulty moving awaybank. As a result, it is working at reinventing itself by admitting its from its marketing-oriented policies. As a result, Dell is havingerrors, owning up to problems, collecting customer feedback on a blog trouble differentiating itself and establishing a unique and relevantdedicated to improving the brand (the new Citi blog) and vowing to value proposition. Brands like Acer are catching up in PC marketchange and recover. But Citi doesn’t appear to be out of the woods share. Dell has also lagged in cloud computing, with brands suchquite yet; it recently announced that it lost around US $1.6 billion in as NEC and Fujitsu taking over some of Dell’s business. Still, Dellthe fourth quarter of 2009, mainly from trying to pay back the federal continues to do some very exciting work with social media. Not onlygovernment, and it has a total loss of US $7.6 billion for the year. Its are customers invited to offer feedback on their website, but Dell hasattempts to be honest and restructure are a good start, but the brand a great tactical response team working around the clock to respond toneeds to go a long way to regain trust. online chats. Dell has also made an effort to manufacture 100 percent energy-efficient products like the EPEAT Gold Standard notebook. 42 8,696 $m + 7% 43 8,453 $m + 15% PHILIPS EBAYPhilips continues to build its brand, ensuring that its acquisitions are EBay is in the process of transforming its image from online auctioneerseamlessly integrated into its “Sense and Simplicity” brand proposition. into a global internet marketplace and payment service, with PayPalPhilips has grown across all three main divisions in the past year – now a third of total sales. The company has been slowly getting backConsumer Lifestyle, Healthcare and Lighting. Its product offerings in all into the race, with more signiﬁcant course corrections this year. Overthree categories respond to major trends that are currently changing the past year, eBay has de-emphasized auctions and put more focusthe world: an aging population, urbanization, energy efficiency and on buy-it-now, ﬁxed-price sales. A new pricing schedule is designedfocus on personal health and well-being. The company has been to lure more merchants, including larger ones, to list many items atable to respond swiftly and effectively to the downturn by reducing ﬁxed price. The theory is that more consumers will shop at eBay if theytheir cost base while continuing to make focused investments in ﬁnd a lot of deeply discounted items, and that requires making eBay ainnovation, marketing and targeted acquisitions to strengthen their more attractive option for retailers, especially those seeking to disposeportfolio in key categories. For example, Philips acquired Saeco, of excess and out-of-season items. Additionally, many changes aimthe espresso machine leader, and several healthcare acquisitions in to improve the sometimes-confusing experience of eBay shopping.emerging markets. 44 8,346 $m + 2% 45 7,981 $m + 3% GUCCI L’ORÉALGucci has been focusing more on its heritage since the ﬁnancial crisis, L’Oréal prides itself on being the fashionable cosmetic choice, withcreating long-lasting products, rather than trendy of-the-moment such celebrity faces as Beyoncé Knowles and Eva Longoria endorsing itsdesigns that rely on the Gucci logo. This is evident in its “Forever Now” products. Its tested products from the L’Oréal Laboratories continuecampaign, which celebrates Gucci’s 90-year history and uses Gucci to win loyal customers. L’Oréal has aligned its beauty aspirationsimages that date back to the 1950s. Overall, the trend toward timeless with a mission to reach out to men and women around the world. Itspieces allows Gucci to increase prices per piece and create something 100th birthday celebration last year was the perfect opportunity tothat the customer feels is an investment. While there remains some launch 100 global citizen projects that included work with education,disparity around the old Gucci of Tom Ford and the new Gucci of Frida female employment and self-esteem issues. Corporate diversity is alsoGiannini, the current, subtler direction that integrates some of Gucci’s a priority for the brand as L’Oréal partnered with several universities,legacy design elements should serve the brand well. associations and agencies in the U.S., France, Latin America and South Africa to recruit employees from various backgrounds. L’Oréal has succeeded in creating global consistency through growing its brand with this team of diverse people.
24 / INTERBRAND 46 7,534 $m + 4% 47 7,481 $m - 3% HEINZ ACCENTUREHeinz has a strong brand personality and tone of voice. Last year it went In a challenging recessionary year, Accenture positioned itself for thethrough a massive rebranding process but only made a small change future by enhancing its core business, expanding in fast-developingto its packaging and image, which demonstrates the consistency markets and investing in new and emerging growth areas. It launchedthat Heinz values for its brand and its products. Its recent message, a new secure, high-speed, high-volume mobile ﬁnancial transaction“Grown, not made,” holds true to its roots and communicates its software solution for telecommunications service providers andexceptional freshness. Its commitment to giving back to communities, large banks. Accenture continues to invest in training its employeestackling malnutrition, and donating to nonproﬁts is deeply embedded through a coherent corporate citizenship practice, “Skills to Succeed.”in this message, which is why it continues to win awards for corporate It also aims to reduce its per capita carbon emissions by 40 percent bycitizenship, including a 2010 PR News Award for “Best Corporate 2012. This year’s abrupt (and embarrassing) loss of Tiger Woods as itsSocial Responsibility” and a ranking in CRO Magazine’s “100 Best spokesperson creates a void for future communications.Corporate Citizens” for 2010 and 2009. 48 7,468 $m + 10% ZARAManaging a network of more than 1,395 stores in 77 countries, ZARA non-stop ﬂow of information received at the store level to give shapecontinues to grow internationally, recently opening stores in upscale to the ideas, trends and tastes developing around the world. Althoughlocations in Delhi and Tokyo and expanding its ZARA Home line into ZARA has never advertised in traditional channels, it has three millionmore markets. ZARA continues to differentiate itself from H&M and Facebook fans as of mid-2010 and a presence on several social mediaother fast fashion brands by offering the highest price points and platforms. While the retailer has been cautious about launching anthe closest direct replicas of runway fashions. It builds value on its e-commerce site due to concerns about the complexity of online sales,responsiveness and relevance. New merchandise arrives in the store it has announced launches in the U.K., France, Germany, Italy, Portugaldaily; clothing assortments are fully refreshed each month. Managers and Spain. A progressive rollout of the site to other markets will follow.and designers work jointly to style the brand’s garments, using a 49 7,315 $m + 0% 50 7,195 $m + 3% SIEMENS FORDSiemens can look back on a history of more than 160 years, with Ford has shown tremendous resilience, returning from big losses toinnovations such as the invention of the dynamo, the ﬁrst commercial proﬁtability in a very challenging market environment. Its decision tolight bulb, the ﬁrst electric streetcar, the construction of the ﬁrst public reject a federal bailout has kept the perception of the brand relativelypower plant and the ﬁrst images of the inside of the human body. healthy both in the U.S. and globally. This year, it has been extremelyToday, it continues its innovation trail with more than 4,000 ﬁrst-time innovative with product designs, incorporating the newest technologypatent applications in ﬁscal 2009. The brand always gets high marks into car models. It has also excelled at marketing its vehicles, tappingfor its green efforts (above and beyond all in its category). But due to into a younger audience through social media. Its decision to slimthe economic crisis, it has been evolving its focus to efficiency, one down its portfolio by killing the Mercury brand will allow it to devoteof the main emerging drivers. A World Cup sponsor, it landed orders more time and resources to the Ford brand. Although it has stayedtotaling about EU one billion for infrastructure projects in advance of relatively quiet on sustainable automotives, later in 2010 it plansthe 2010 World Cup in South Africa. to introduce electric models in the U.S. (and overseas in 2012). Additionally, this year it introduced cleaner diesel engines in its heavy-duty pickup trucks, as well as a hybrid SUV.
BEST GLOBAL BRANDS 200100 / 25 51 6,919 $m + 6% 52 6,911 $m + 8% COLGATE MORGAN STANLEYColgate is dedicated to bettering people’s lives through oral care that Morgan Stanley was severely damaged by the ﬁnancial crisis, but thewill lead to a general improvement in overall health and wellness. It ﬁrm seems to have made the appropriate changes in its strategy andfurthers this brand proposition by continuing to partner with dental management and appears to be on the right path to rebuilding itsoffices while making the professional care line a key initiative for reputation as one of the world’s largest and most respected ﬁnancialfurther growth and exploration. Since Colgate differentiates itself services companies. This year, it aggressively completed a merger withfrom competitors on this platform, it could leverage its expertise Smith Barney, to become the largest brokerage force in the world.more than it does. Colgate continues to lead in advertising, increasing While this was a big move, Morgan Stanley has remained focusedspending seven percent last year, and is usually ranked among the top primarily on internal operations – from corporate citizenship tocompanies to work for by Fortune. Crest continues to dominate the pursuing its signature expansion and innovation. Meanwhile, it hashome teeth-whitening space, but Colgate has recently attached its yet to clarify the merger’s impact externally. A focus on unifying thewhitening system to professional dental offices, which gives it more company as well as a stronger attempt to differentiate itself throughcredibility as an oral care expert. interpersonal relationship with clients and ﬁnancial advisors will be crucial in the years to come. 53 6,892 $m + 6% 54 6,762 $m + 32% VOLKSWAGEN BLACKBERRYDespite the difficult environment, the Volkswagen brand is holding BlackBerry remains to be the most popular smartphone brand inﬁrmly to its "Strategy 2018" goal of increasing worldwide sales the corporate world. In an effort to respond to customer needs, itto 6.6 million vehicles per year in approximately nine years. The continues to expand its customer base and diversify, moving frombrand has made progress, with lots of positive momentum for new device to network services and widening its product line. It is alsoproduct launches slated for the upcoming years. It also successfully opening “BlackBerry App World” – although it is still far behind theconnected with old and young audiences through its Punch Buggy iPhone apps store. While all this expansion is a sign of a healthy brand,campaign. The highlight in 2009 was the unveiling of the new Polo, the latest push from Apple to make inroads in the corporate worldwhich contributed to the year-on-year increase in delivery ﬁgures continues to put pressure on BlackBerry. It is still the category leader,in spite of the difficult market environment. Volkswagen has lagged but it must continue to innovate and push its product line to competein its improvements with regard to zero emissions and future with Apple. Recent conﬂicts with Middle Eastern governmentstechnologies, but this year, it’s starting to catch up; an alliance with (although now seemingly resolved) and India regarding concerns overSanyo to develop a hybrid battery system, partnerships with Audi and BlackBerry’s data encryption and security concerns may continue toMercedes-Benz to market BlueTec, and eco-friendly products like the pose challenges for the brand as it expands.E-Up all bode well for the future. 55 6,719 $m + 3% 56 6,694 $m + 3% MTV AXAMTV is facing an identity crisis. The growth in the advertising market This year, AXA invested in a new positioning – “redeﬁning/ standards”has led to an adjustment in MTV’s programming, which has been – based on its aspiration to do business responsibly and build trust-advertiser-led as opposed to truly audience-focused. As a result, the based relationships with stakeholders. The move was a direct reactionmusic content that the brand was built on is no longer central and its to the ﬁnancial crisis and an understanding that trust is a key decisionpositioning is unclear. Still, it is one of the strongest brands in social driver for customers at this time. While it is too soon to tell if the newmedia and networking, taking advantage of its target’s willingness to positioning has paid off, AXA has an opportunity to position the ﬁrmengage in such activity. This year, the MTV Video Music Awards had as the most trusted of its kind, particularly with brands like Zuricha record-setting viewership, and millions continued to interact with making a bigger play for market share. The group ranks above averagethe brand through the online after-show content. Still, in recent years, in its industry in corporate citizenship.the MTV brand has taken a backseat to the fame of its programming.While its shows, such as The Hills and Jersey Shore, are hugely popular,the MTV brand rarely gets credit for this; a better effort could be madeto link MTV directly.
26 / INTERBRAND 57 6,548 $m + 4% 58 6,363 $m + 7% NESTLÉ DANONEHolding down its spot as the number one food manufacturer in the Danone sticks to its health-conscious positioning, even if consumersworld, Nestlé remains committed to its sustainable business model. may desire less nutritious options at times. Unlike other companiesIt strives to offer quality products to consumers throughout their that simply claim to be healthy, it fully delivers on this promise andlife cycle and is always looking for ways to add a nutritional boost. sometimes even borders on a nutrition company. It offers productsEven though Nestlé continues to invest in its brand, there is focus on so healthy they are almost medicinal, including probiotic yogurt andimproving its consumer-facing activities. Nestlé contributes broadly Danacol, a cholesterol-reducing yogurt. Danone focuses on R&D andacross the globe in terms of improving the human condition, but clinical nutrition tests as it ﬁghts for the right to make these nutritionalpublicity of its corporate citizenship initiatives is relatively low. The beneﬁts claims. Although Danone could beneﬁt from a stronger brandlacks much consistency across products, with the sub-brands are focus, it does utilize sub-branding, giving it the ability to boost its brandoften more clearly identiﬁed. Additionally, with the product categories name and not just the product brand. Danone is highly regarded for itsNestlé resides in, consumers have often traded down to less expensive efforts as a corporate citizen, ranking third in a recent sustainabilityand store-brand options. This is reﬂected in the decline in its growth survey conducted by Two Tomorrows consultancy. Its annual reportexpectations from last year. That said, long-term potential is never details corporate social responsibility initiatives closely tied to thesacriﬁced for short-term performance, and Nestlé products still brand, which range from providing safe drinking water to educatingembody quality and trust. consumers on healthy eating. 59 6,109 $m - 5% 60 5,844 $m + 2% XEROX KFCSince rebranding in 2008, Xerox continues to focus on the areas of KFC has made progress extending its brand relevance beyond theinnovation, the environment and corporate citizenship. So far, its dinner and picnic option. KFC had struggled with being known justinnovation work appears to be working – patents were up 16 percent as a place to visit for dinner, but the creation of last year’s healthierin 2009. While the recession negatively impacted its sales, Xerox can Kentucky Grilled Chicken (the Oprah PR ﬁasco now a dim memory)expect to bounce back due to small and midsize businesses showing has changed customers’ perception, transitioning it into a lunchtimerenewed interest in spending. Additionally, in terms of corporate stop as well. Its KFC Double Down (two fried chicken ﬁlets sandwichingcitizenship, the brand made its debut in Corporate Responsibility monterey jack cheese, two pieces of bacon and sauce) resulted in hugeMagazine’s “Top 100 Corporate Citizens” at number 37. Its print blog and social media buzz and created another occasion for customersdonations to communities in Canada and the U.S., and waste and to stop in, although it is too early to see if it has staying power. Globally,carbon emission reduction efforts are positively impacting the brand. KFC continues to be the ﬁrst to reach out to untouched markets (forAnd yet Xerox could more proactively consider its history with paper example, in 2009, it was the ﬁrst fast food chain to open in Nepal). Itand develop a corporate citizenship strategy more closely tied to leads its category in presence in China, where it is the most popularits heritage. fast food, and continues to expand in India. 61 5,777 $m NEW 62 5,495 $m + 2% SPRITE ADIDASWith performance visibility available for the ﬁrst time, Sprite debuts on Adidas is grounded in making outstanding sporting goods tailoredour list at 61– a presence that drives home the value of transparency. to the athlete embodied by its founder, Adi Dassler. The brand isSince its creation in 1961, in which it was initially introduced to continually at the forefront of innovation and change in the sportingcompete with 7-Up, Sprite has emerged as the lemon-lime ﬂavored goods industry. Indeed, all areas of the adidas Group are requiredsoft drink leader. This has as much to do with its multicolored, to generate at least one meaningful innovative improvement persemi-ﬂashy visual identity and carefree brand voice, as it does with its year. Still, while its positioning is unique, adidas’s products provideability to adapt to changing customer desires – from lite, sugar-free, minimized differentiation from Nike. Customers often demonstratemixed ﬂavor (mint in Korea, ginger-ﬂavored in China, fruit variations high brand loyalty to shoes, but other products do not provide cleararound the globe) to a zero-calorie version of the original. This year, enough distinction apart from the logos. However, the recent launchSprite moved away from its “Obey Your Thirst” message to “The of its free miCoach app, which turns a smartphone into a personalSpark” – inspired more directly from the brand’s updated logo. The trainer without any supplemental devices, may help it compete withrelated ads target teens around the globe, featuring young musicians in the Nike+ sensor. Innovations like this, and its huge presence at thevarious markets. World Cup, are raising the visibility of the brand.
BEST GLOBAL BRANDS 200100 / 27 63 5,461 $m + 9% 64 5,072 $m + 3% AUDI AVONIn 2009, Audi celebrated its 100th birthday. Indeed, its rich heritage is While still not quite at its 2008 brand value levels, Avon has kept to itsone of the brands biggest assets. The tough times Audi faced 15 years differentiated brand promise this year, bolstering it with social mediaago, after a series of recalls, is all but forgotten and the companys and philanthropic efforts. Avon’s ability to empower women all overvision and strategy to become the number one premium car brand is the world through entrepreneurship and philanthropy, beyond themore than paying off. Its mission to “enthuse customers” is reﬂected traditional cosmetic sales of lipstick, fragrance and skincare products,in virtually every touchpoint – from the distinct design to a social media is its biggest strength. Consumers continue to be its most effectivedesign challenge. While competition is very high, Audi stands out with and efficient brand advocates through word of mouth and referrals.award-winning products like its Q5, which was voted “Best Car” by auto In the current economic climate, its ability to harness this powermotor und sport – and its DTM (Deutsche German Touring Car Masters) through its unique direct selling business model that employs over sixwin only boosted the brand. In the U.S., it is having trouble keeping million women as Avon representatives to manage their own businessup with inventory, and sales remain strong in Europe and China. With and earn their own income has been even more appealing. This yearelectric, e-tron car models in the works, as well as much time and focus Avon has excelled at using social media to showcase its philanthropicdevoted to its product portfolio, advertisements and sponsorships, efforts, especially in South America as it launched the “Hello Greenthe brand is likely to only grow stronger in the future. Tomorrow” campaign to replenish the diminishing rainforests. 65 5,033 $m + 9% HYUNDAIHyundai’s emphasis on quality and good technology may not stand customers during the recession. If buyers lost their jobs after purchase,out too much from other car manufacturers. But it has emerged from the company offered to take the burden for three months until thethe economic downturn much stronger than many other ﬁrms, in buyer gets back on his or her feet; and if that doesn’t happen, he orlarge part due to its focus on fuel economy, not just value. It is now she can return the car without impact on credit. Along with a strongthe ﬁfth-largest auto manufacturer in the world. Customers believe new vehicle lineup and exposure at the World Cup and Super Bowl,its cars are built to last, and it has become a brand that’s viewed as a Hyundai’s strategy has paid off – after a loss in 2009, it is now doingpartner. Its 10-year warranty has been a big differentiator, as well as better than it did in 2008.its 2009 Assurance Plan, which further solidiﬁed its commitment to Hyundai’s 2010 recessionary pledge to customers pays off 2010 5,033 $m 2009 4,604 $m 2008 4,846 $m 3,6 3,8 4,0 4,2 4,4 4,6 4,8 5,0 5,2 0 0 0 0 0 0 0 0 0 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ m m m m m m m m m
28 / INTERBRAND 66 4,958 $m - 3% YAHOO!Yahoo! has embarked on a number of changes to revamp its brand this customer expectations. In 2009, Yahoo! and Microsoft also signedyear. In 2009 it repositioned to fully center on users and employees’ an agreement, with Yahoo!’s aim to gain more users, in which Yahoo!lives and needs. It has prioritized becoming a social networking became the sales force for both the Bing and Yahoo! search engines.hub since Carol Bartz took over as Chief Executive in January 2009. While there is opportunity here to command more than 40 percentAdditionally, its management structure has been reorganized to market share, there are challenges as well – namely in ensuring thatcombine Yahoo’s various technology and product groups into one the search engine experience is compelling enough to convert lightentity, which has fostered consistency and made it easier to meet searchers into regular searchers. 67 4,904 $m + 28% 68 4,846 $m NEW ALLIANZ SANTANDERAllianz’s goal to become the most trusted brand in its sector looks like The stable, well-managed Spanish bank Santander, which saw littleit’s paying off handsomely. This strategy is apparent in Allianz’s vow to impact from the ﬁnancial crisis due to its conservative banking style, isstrengthen proﬁtability by pursuing operational excellence, improve a new entrant on this year’s rankings, due to an increased internationalcapital management, reduce complexity in its global platform, focus presence. Since 2008, it has focused on bolstering its presence throughon sustainability and deliver the best customer experience. The brand acquisitions including Alliance & Leicester in the U.K, Sovereignis also in the process of developing a very consistent, recognizable in North America and SEB in Germany. While the acquisitions putidentity by rebranding 20 percent of its business to the masterbrand. Santander in an enviable position, its ambitious and quick expansionAllianz also excels when it comes to social media. For example, does come with risks: for example, inconsistencies in its visual, verbalas a partner of the International Paralympic Committee, Allianz is identity and experience. However, moves to quickly and seamlesslysupporting the 2010 Paralympics in Vancouver with its own Twitter rebrand its newly acquired U.K. brands as Santander show that theand Facebook efforts. brand is aware of the problem. As the largest ﬁnancial franchise in the Latin American region, it continues to hold a position of leadership in the key fast-developing markets of Brazil, Mexico, Chile and Argentina, which bodes well for its future. 69 4,782 $m + 4% HERMÈSMore than other luxury brands, Hermès has made an effort to Avenue or the World Expo-timed Maison Hermès in Shanghai. Asmaintain its discreet and distinct aura intact – never compromising ﬁtting for this brand, it does not engage in social media – a move thatits reputation through media oversaturation or too much growth. This preserves the integrity of the brand. While it participates in corporatestrategy has paid off during the recession, with customers valuing citizenship, working with FIDH (International Federation for Humanauthenticity over ﬂash. Unlike competitors, Hermès didn’t cancel any Rights), this is done quietly as well.of its big plans, such as the February 2010 Hermès Man on Madison
BEST GLOBAL BRANDS 200100 / 29 70 4,704 $m - 6% 71 4,536 $m + 3% CATERPILLAR KLEENEXDue to economic and market conditions, increased demands for fuel Kleenex has made sure to secure the rights to its brand name, whichefficiency and reduced emissions, and as demands to incorporate has become the generic term for facial tissue. While the market leaderinformation-processing technology, Caterpillar, like many others in in the eyes of many consumers, Kleenex is just a generic product andits category, is facing some difficulties, although signs of recovery in the added beneﬁts of Kleenex in terms of new ingredients and productsAsia may mean improvements ahead. Despite a weak digital presence do not seem to be compelling in a category with tough competition(particularly in comparison to competitor John Deere), the brand from lower-priced private labels. Still, this year saw strong efforts incontinues to extend into everything from clothing and accessories to social media. Kleenex’s Getmommed.com allows users to view videoslifestyle stores in Shanghai and Dubai, raising its proﬁle as the premium of moms and their mothering techniques during cold season – anmanufacturing brand. This year, it raised its already positive green important time for the brand. Because Kleenex is so closely tied toproﬁle by joining the FutureGen Alliance, a public-private partnership the environment, it works to protect nature and the very trees that itestablished to build a ﬁrst-of-its-kind coal-ﬁred, near-zero emissions uses to make its products. Kleenex buys 90 percent of its virgin woodpower plant. ﬁber from external, sustainable suppliers, with a goal of 100 percent, so it will not have to create or own any of its pulp. 72 4,404 $m + 4% PORSCHELast year, Porsche acquiesced to a bailout, which led to its merger with management and the sound of its engine. While its four-doorVolkswagen. As a result, there’s been a build-up of insecurity about the Panamera could potentially do more harm than good (impacting itsfuture of the luxury brand, now that it has a relationship with the less luxury status), more diesel and hybrid models could bolster the brand.premium Volkswagen. Still, Porsche is perceived to be more than just Although green, in some ways, seems at odds with a brand known fora sports car, continuing to appeal to car lovers and the wealthy for its its sports cars, Porsche introduced one hybrid model in 2010.inspiring driving experience. It has continued to leverage its brandthrough a selective number of ad spots, its customer-relationship 73 4,351 $m + 3% PANASONICPanasonic continues to make steady progress in reducing the Panasonic’s Eco-Relay, in which its employees carried out variousenvironmental impact of its business activities, reaffirming its environmental activities, was a huge internal success. The brand isdedication to its brand slogan, “Ideas for life.” The combined strength generating some excitement with its new camera line-up – particularlyof its capital and business alliance with Sanyo Electric, formed in its high-spec, low-cost cameras, which are the perfect tools forDecember 2008, is an important step in growing its commitment bloggers. Despite these signs of strength, the brand continues toto corporate and social responsibility. The partnership should yield suffer from inconsistencies in positioning across geographies, alsosigniﬁcant synergies in the ﬁelds of energy and ecology. Additionally, reﬂected in its country websites and marketing communication.
30 / INTERBRAND 74 4,218 $m NEW BARCLAYSBarclays’s aggressive positioning during the downturn, U.S. expansion Barclays was also commended for its sustainability efforts: Barclaysand a concerted effort to design and implement a global, group brand Spaces for Sports was named Corporate Social Responsibilityarchitecture strategy have boosted the brand and made it a signiﬁcant Initiative of the Year at the Peace and Sport Awards in Monaco. Growthinternational player. This year Barclays focused on a number of brand- looks particularly good in developing countries, where Barclaycard isbuilding endeavors, including a new and improved design for its making headway into the world of payments as credit becomes morewebsite, which was well received, particularly for Barclays’s effort to popular. Still, Barclays’s efforts to become a top global bank have comeprovide tangible ways for clients to increase control over their ﬁnances. with risks – most notably in the increased spend it has put into itsIts iPhone game, one of the most popular free, branded games in the investment banking business. It may or may not pay off, dependinghistory of the iTunes App Store, was another breakthrough as well. on when the capital markets recover. 75 4,155 $m + 8% 76 4,127 $m + 3% JOHNSON & JOHNSON TIFFANY & CO.Johnson & Johnson boasts an impressive global scale, touching Tiffany & Co. continues to hold a prestigious reputation, although itsone billion people every day. It has very strong marketing and sales wide range of products and prices has diluted the brand’s luxury statuscapabilities that make it an attractive partner, as evident in its multiple over time and resulted in a decline in its ranking. Whereas expansionacquisitions and joint ventures formed with companies over the past several years ago helped grow the brand, the recession reduced itsfew years. The brand is also very responsive to global health concerns, audience and created a desire for pure luxury in those who can still affordand the simple breadth of offerings is evidence of a proactive nature. it. Still, it saw small improvement from last year, likely due to smartJohnson & Johnson had a recent bout of recalls for key products like decisions, including better services standards, lowering the price pointTylenol, Motrin and Benadryl, but bad PR seems to have abated of its fashion jewelry, and raising the price point for its bridal jewelry.quickly. While J & J portrays the values of its masterbrand, it is talked Its effort to stay current on social media with a popular Facebookabout in different ways across products. This is appropriate for the page and an iPhone app that helps users ﬁnd engagement rings haveportfolio, but it dilutes the Johnson & Johnson brand. also helped. 77 4,052 $m + 2% 78 4,036 $m NEW CARTIER JACK DANIEL’SCartier is in a solid position. Its regal history and the ultimate luxury Established in 1866, America’s oldest distillery, Jack Daniel’s, appearsthat it communicates is a real differentiator, which is leveraged even for the ﬁrst time on our ranking this year due to greater transparencymore by its museum. It continues to be viewed as one of the most about its performance. The brand has focused on developing marketsaudacious and extravagant luxury brands – communicating royalty like India and Russia, where it sees opportunity for growth. It alsothrough its classic red, gold and black. This year, the brand received saw its product receive a lot of buzz and reach a new target whensome buzz when glamorous A-listers showed up at its ﬂagship New it was mentioned in a Ke$ha hit song. Jack Daniel’s continues withYork store for an exhibition celebrating its 100 years in America. its extension through T.G.I. Friday sauces, apparel and licensing – anHowever, the brand needs to communicate a more consistent endeavor that has been consistent with the brand’s visual identity, butpresence on social media. Its 2009 campaign in China disappointed also slightly eroded the brand’s equity by positioning the product aswith its usability issues, lack of engagement and formulaic design. less premium. While the brand might not be immediately associated with corporate citizenship, this year it participated in initiatives like its “Toast to the Troops” campaign, which lets people send messages in USO care packages, and partnership with NASCAR to promote responsible consumption.
BEST GLOBAL BRANDS 200100 / 31 79 4,021 $m + 7% 80 4,010 $m NEW MOËT & CHANDON CREDIT SUISSEMöet & Chandon continues to be linked to glamour, celebrity, quality New entrant Credit Suisse is among the winners to emerge from theand prestige. Overall, this is reﬂected at every touchpoint, including ﬁnancial crisis. It cut risk early and did not have to take any governmentits corporate citizenship, which includes sponsoring arts events, money. As a result, the ﬁrm was able to embrace a client-focusedfundraisers and charities. It has remained relevant, with a successful strategy that has earned Credit Suisse accolades from its clients andcampaign featuring Scarlett Johansson and a presence at this year’s the press. In both investment banking and private banking, it hasAcademy Awards – as well as some extension beginning in fast- been able to capitalize on the difficulties of its competitors and deliverdeveloping markets. Personalized offerings connected to individual the highest returns on capital in the industry. The focus on keepingevents, as well as gift cases and travel sets, have also helped leverage a low proﬁle, stability and consistency has suited the ﬁrm well. Thethe brand. However, too much extension, like a lower-priced Möet & key question going forward is whether Credit Suisse can maintainChandon brand available at grocery outlets, could confuse its brand its course and continue to leverage its strengths as competitorsimage – something Möet & Chandon should be wary of in the future. regain momentum. 81 4,003 $m + 24% SHELLShell, which manages the largest distribution network among its reduction. Shell has plans to exit from 15 percent of its worldwidecompetitors, continues to focus on reinforcing its position as a leader in reﬁning capacity and 35 percent of its current retail markets, and isthe oil and gas industry while helping to meet global energy demands taking steps to further improve its chemicals assets. While protestersin a responsible way. This year, it made substantial investments in have criticized Shell’s environmental record, it appears far morenew reﬁning and petrochemical technologies, on which its future committed to sustainable development than BP (which fell off theperformance will depend. Additionally, as seen last year when it table this year), and chairman Lord Oxburgh has acknowledged theshut down many projects and reorganized, Shell’s priority is still cost necessity to act on global warming issues. Shell sees gains from cost reduction, investments in reﬁning and an environmental record that’s more commendable than competitors 2010 4,003 $m 2009 3,228 $m 2008 3,471 $m 3,2 3,3 3,4 3,5 3,6 3,7 3,8 3,9 4,0 00 0 0 0 0 0 0 0 0 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ $m m m m m m m m m
32 / INTERBRAND 82 3,998 $m + 26% 83 3,973 $m + 2% VISA PIZZA HUTThis year Visa continues to prosper due to its unusual position. While This year saw the Pizza Hut regain some of its footing due to US $10most major banks risk foreclosure, Visa’s business model is based on pizza offerings and the launch of a new virtual ﬂagship store. However,its support of plastic cards and network-based services, so it doesn’t overall the brand appears to be experiencing a slight identity crisis,have the same risks as normal banks. Additionally, as we move toward as evident from its inconsistent imagery and name – is it Pizza Hut,a paperless and digital society, these cards seem more appealing. The Hut, or Pasta Hut? Additionally, instead of further differentiatingVisa’s commitment to security has also become a real differentiator by upgrading the dine-in experience (where it lags in comparisonas the risks of online shopping and the general temperature of our to other mainstream offerings), its attempts to be in the deliveryculture have made safety and trust more of a concern than in the past. business put it head-to-head against Papa Johns and Dominos, whichThis year, Visa showed foresight by addressing the public’s growing doesn’t look good for the long-term. It has also struggled at ﬁndingconcerns regarding managing personal credit through ﬁnancial another breakout signature item in a category that struggles withliteracy materials with the aim of educating consumers. It has also commoditization. A lack of any visible corporate social responsibilityemphasized transparency on a new blog, which shows how Visa works program only puts its brand at risk for the long-term as well.with its partners to instill key ﬁnancial skills and encourage responsiblespending across the globe. Its presence at international event like theOlympics 2010 Winter Games as well as the FIFA World Cup also servedit well this year, elevating its visibility. 84 3,961 $m + 1% GAPLong established as an American retail icon, Gap communicates its ways to democratize and associate with higher fashion, partneringoffering for clean and simple style at a fair price consistently across its with Stella McCartney for a children’s line, and transforming the eliteproducts, store design, advertising and online presence. This year, the Metropolitan Museum of Art’s Costume Institute Gala by sponsoringclassic American casual wear brand struck positive notes with in-store this year’s exhibit and event “American Woman: Fashioning a Nationalconcerts, an NYSE jean-clad event, pop-up 1969 jean stores, and social Identity” together with Vogue. While Gap’s philanthropic efforts do notmedia and mobile engagement with a StyleMixer iPhone app and yet fully leverage the brand’s idea, the Ethisphere Institute recognizedinteractive Facebook galleries for fans. 2009 also saw Gap return to it as one of the “World’s Most Ethical Companies” for the fourth year,holiday advertising after a three-year hiatus, with a “Holiday Cheer” due in large part to Gap’s partnership with (PRODUCT) RED.campaign that integrated television and its social media platforms foruser-generated and “live” brand content. The brand continues to ﬁnd 85 3,847 $m NEW 86 3,812 $m - 13% CORONA UBSDue to more transparency about its performance this year, Corona, UBS has been at the heart of the ﬁnancial tsunami and emergesthe number one selling beer in Mexico and fourth best-selling beer damaged from the economic crisis with its reputation far below levelsin the world, debuts on our ranking. Corona does an excellent job several years ago. While UBS is planning to build on its long heritage,communicating its “live in the moment” philosophy through visual and the company is clear about its objective of regaining trust, therecues: the token lime wedge and beach scene. This is even extended is no sense that internal efforts are impacting customers. This isto its social media efforts, which include an interactive website with particularly true in the U.S. and Europe, as all of the bank’s efforts are“photoslices” for customers to create their own piece of Corona. constantly being undermined by scandals like its damaging U.S. taxHowever, Corona’s positioning is so strong that it also means the evasion case. Despite this, conﬁdence in the bank continues to remainbrand is more appealing to customers during the summer and does high in Asia, where UBS plans to expand operations.not come to mind on all occasions. Additionally, the arrival of Bud LightLime, particularly in the U.S. where it has a lower price point, posesnew competition for the brand, even as it grows in new markets likeAustralia and New Zealand, where it is now available on tap.
BEST GLOBAL BRANDS 200100 / 33 UBS’s efforts to rebuild and focus on trust have not yet impacted its customers 2010 3,812 $m 2009 4,370 $m 2008 8,740 $m 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 9,0 0 0 0 0 0 0 0 0 00 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ $m m m m m m m m m 87 3,734 $m + 5% 88 3,626 $m + 15% NIVEA ADOBENIVEA was able to emerge from the economic crisis relatively Adobe leverages its values of genuine, exceptional and involvedunscathed by sticking to its proposition: providing affordable skincare innovation through a portfolio that includes some of the mostto the masses and building its brand on trust, reliability, accessibility respected and recognized software brands. In September 2009and innovation. Over the past three years, the brand has continued to the company completed the acquisition of Omniture Inc., thegrow its value, in large part because it is perceived by many as a local leader in Web Analytics. The acquisition allows Adobe to combinebrand – a testament to NIVEA’s uniﬁed brand approach. This year, content-creation tools with measurement and optimizationNIVEA tapped into the male market and will be the brand of choice technologies. With this move Adobe is well positioned to deliverfor England’s soccer team. NIVEA engages consumers through social solutions that can transform the future of engaging experiences andmedia to raise money for the Boys and Girls Club charity through its e-commerce across all digital content, platforms and devices. RankedXOXO Chain campaign. As part of the campaign, NIVEA sponsored 11th in Fortune’s “100 Best Companies to Work For,” Adobe continuesthe 2010 New Year’s Eve event in New York’s Times Square and to be commended for its internal brand engagement. This extendsﬁlled the streets with its very own shade of blue – Ivocart Nivea to its corporate citizenship efforts as well – employees participateBlue B65711 A. in community volunteer projects and Adobe is focused on waste management and recyclable cardboard packaging. 89 3,624 $m - 2% SMIRNOFFDespite its heritage packaging being slightly at odds with its “Be There” Still, all three have performed well in all markets and it intends topositioning, Smirnoff has maintained its position as the world’s leading release root beer and espresso ﬂavors in the U.S. under Smirnoffspirit (available in 130 countries). However, it continues to prove it Blue. Additionally, it built presence through sponsorships of pool partyis more of a follower than a leader. Rather than innovating new and events and live concert performances, as well as local and product-original products, Smirnoff followed Absolut’s lead by introducing three speciﬁc Facebook pages. This summer, to compete with Svedka andnew ﬂavors: Smirnoff Black, Smirnoff Lime and Smirnoff Green Apple. other cheap but chic competitors, it will be launching Rokk.
34 / INTERBRAND 90 3,586 $m NEW 91 3,562 $m + 1% 3M FERRARI3M is a newcomer to the Best Global Brands in 2010, in large part due This year Ferrari proved that people buying something as high-end asto a series of acquisitions that have given the company scale, and a new a Ferrari will do so regardless of the economic climate. It has continuedbrand identity system implemented last year. The new brand identity to beneﬁt from low production and from focusing on its elite, exclusivesucceeded in unifying the diverse businesses and boosted brand status. As a result it has seen growth in fast developing countries. Inawareness. Additionally, last year brought Good Design Awards for July 2010, it opened up Ferrari World, the world’s largest indoor themeﬁve of its products and praise for its corporate citizenship and energy park, in Abu Dhabi. Unlike competitors, it has stayed true to its roots,management – including the “Energy Star Sustained Excellence Award reiterating its promise of speed, precision and a passionate lifestyle.for Energy Management” for the sixth time, the industry record. Still, the recession’s long-term behavioral impact may be evident in Ferrari’s lower sales volumes this year, which is why its moves to go green may prove shrewd. Especially since its hybrid HY-KERS promises the same trademark speed and performance exempliﬁed in all of Ferrari’s cars. 92 3,557 $m NEW 93 3,516 $m NEW JOHNNIE WALKER HEINEKENYear after year, Johnnie Walker’s iconic walking man continues to Although it has yet to fully reposition, Heineken has been making thereinforce the brand’s authenticity and journey positioning. But the shift from a more premium, quality beer with a rich heritage to a brandbrand has proved that just because it is old, doesn’t mean it’s outdated. that is slightly more sporty, playful and innovative – an effort that hasThe new entrant, due to greater performance visibility this year, has launched it into this year’s ranking. The portable mini keg and the in-truly embraced social media and made the platform its own. Its efforts home draught dispenser are two ways that Heineken has displayedincluded a new short ﬁlm, starring Robert Carlyle, which outlines the this. Additionally, it saw some success this year in its attempts tohistory of the Johnnie Walker brand on its website, as well as continued extend the brand through the “Heineken Experience” heritage site,outreach on Facebook through its Striding Man Society. While it which not only garnered awards, but met visitor projections despiteremains a premium Scottish whiskey brand, recent announcements tourism being down. The brand has also focused on extending in Latinthat the brand will cease production at its historic plant in Kilmarnock America – a previously untapped market – as well as guerilla marketingmay go a long way in compromising one of its key drivers: authenticity. campaigns featuring social media.The move has not been met well, with condemnation from members ofParliament, celebrities, townsfolks of Kilmarnock and whiskey drinkersaround the world. 94 3,496 $m NEW ZURICHThis year, the Business Insurance “2009 Readers Choice Awards” of the insurance industry’s most global communication initiatives:selected Zurich as the best overall commercial property insurer – HelpPoint. The collective term for a multitude of service offerings thata testament to the new entrant’s many years of work to better respond Zurich delivers, HelpPoint captures Zurich’s commitment to puttingto customers’ needs. Zurich has been investing in its brand to improve customers at the heart of the brand. With 60,000 employees, Zurichservice, develop closer relationships with clients and orchestrate one is able to serve customers in more than 170 countries.
BEST GLOBAL BRANDS 200100 / 35 95 3,443 $m + 4% 96 3,403 $m + 5% ARMANI LANCÔMEArmani’s ﬂashy avant-garde style caters to a range of audiences – Lancôme, which celebrated its 75th anniversary this year hasfrom lower age groups for its Armani Exchange Jeans collection to a struggled with differentiating itself from other luxury cosmetic brands.higher age and income for more premium categories. Its extension into Innovation used to be the distinguishing foundation for the brand, butlower-priced sub-brands (as well as a hotel, bar, restaurant and night in recent years, Lancôme’s competitors have caught up. Despite this,club) has grown the brand. However, despite the reﬁnement of its there was considerable hype about the launch of its anti-aging serum,masterbrand line, its more mass market positioning through Emporio Géniﬁque Youth Activating Concentrate – a testament to Lancôme’sArmani Underwear and Armani Exchange Jeans has compromised 10 years and countless hours of research and development perfectingits luxury status. Still, 2009 campaigns with Victoria Beckham the popular product line. Lancôme also generated buzz when it signedand a 2010 campaign with Megan Fox have kept the brand highly celebrity Julia Roberts to its ambassador roster.visible. Additionally, it launched a 2009 mobile campaign that offersvideo content, information about new lines and locations of itsnearest stores. 97 3,339 $m + 2% STARBUCKSStarbucks’s aggressive efforts to regain footing have worked out stores and the new, homier unbranded ones. Creatively too, thenicely for the brand. From Starbucks VIA Ready Brew to unbranded names, architecture, logo use and typography don’t always matchcoffee shops, it refocused on its roots (with CEO Howard Schultz’s up – with only the human and personal approach uniting them.guidance) and worked on improving its offering to provide growth Despite this, Starbucks remains a case study for how to do social mediaas new store expansion slows or reverses. Starbucks VIA Ready Brew right, with a representative in every department to react to the inputinstant coffee has created a new way to experience the brand – as and output and its Mystarbucksidea.com. And while it continueshave its new breakfast sandwich offerings to better address the early to be targeted by environmental groups, it can be commended formorning coffee routine. The race to be innovative while maintaining developing a clear global responsibility strategy, which includes thebrand integrity has certainly helped, but it has also left Starbucks with search for a 100 percent recycled cup.some consistency issues, like confusion between branded Starbucks After a tough 2009 due to over expansion and a not-so-recession- friendly price point, Starbucks is beginning to regain footing 2010 3,339 $m 2009 3,263 $m 2008 3,879 $m 3,0 3,1 3,2 3,3 3,4 3,5 3,6 3,7 3,8 00 00 0 0 0 0 0 0 0 0$ 0$ 0$ 0$ 0$ 0$ 0$ $m $m m m m m m m m
36 / INTERBRAND Harley-Davidson has seen a rapid decline in brand value as it becomes a less relevant purchase due to the recession 2010 3,281 $m 2009 4,337 $m 2008 7,609 $m 0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 0 0 0 0 0 0 0 00 0$ 0$ 0$ 0$ 0$ 0$ 0$ $m m m m m m m m 98 3,281 $m - 24% 99 3,241 $m + 5% HARLEY-DAVIDSON CAMPBELL’SOver the past three years, Harley-Davidson has seen a rapid decline in Debuting on the list last year, Campbell’s is still capitalizing on thebrand value as it becomes a less relevant purchase due to the recession. sweeping health trend by promoting its lower-sodium soup. TheTo deal with its losses, the brand has decided to restructure, exiting the recession proved to help the brand as families returned to comfortsport bike market; it will discontinue its Buell product line and sell its food and opted to eat at home. However, its brand positioning remainsMV Agusta unit, with the goal of focusing fully on the Harley-Davidson a bit unclear, and Campbell’s doesn’t seem able to pinpoint exactlybrand. However, unless it also invests into innovating, its product could what to focus on. Its corporate citizenship efforts are a redeemingbecome stale. This year, the brand also experienced some negative quality and are strategically positioned around food, hunger andsocial media and press from an audience upset by the fact that the health issues. Campbell’s recently redesigned its packaging to givenew, numbers-focused CEO does not ride a Harley. it a more modern look – a big change that better communicates its sustainability efforts. Many stores also installed an entire shelf system dedicated to Campbell’s soup that offers color-coding and easy navigation. Campbell’s faces a growing opportunity in the Chinese market, where more soup is consumed than in any other country. 100 3,110 $m + 0% BURBERRYThis year, Burberry has increased its visibility through celebrities – with T.J.Maxx over counterfeits. The brand continues to attract talentedHugh Jackman sporting a Burberry suit at the Academy Awards, and employees and ties them directly into one of many corporate citizenshipyoung Emma Watson communicating a younger, fresher image for the initiatives by requesting that they serve as mentors to young people forbrand in print advertising. While it continues to reverse the negative a range of programs. Although Burberry’s communications throughimage it suffered for several years due to football hooligans co-opting social media almost always seems to be in response to a weakness inthe brand and the proliferation of cheap Burberry counterfeits, the the brand, it has succeeded in establishing a large and active presenceproblem hasn’t gone away just yet: Recently, it was forced to sue this year on Facebook and Twitter.
BEST GLOBAL BRANDS 200100 / 37Which saw bigger gains: the brand value of the top 100 Best GlobalBrands or the world GDP? 115.74 121.72 2010 137.84 113.14 117.20 2009 132.28 116.88 122.82 2008 133.08 116.30 116.94 2007 129.21 113.13 110.36 2006 122.82 109.84 105.75 2005 116.86 106.95 100.83 2004 111.83 The growth of the top 100 Best Global Brands exceeded the long-term growth of advanced economies by 35 percent, but saw slower gains than the world GDP as a whole. 103.63 98.55 2003 106.60 Advanced Economies GDP Best Global Brands 101.70 World GDP 98.01 2002 102.90 This chart looks at the combined brand values of the top 100 Best Global Brands from 2001 to 2010 and compares them to the International Monetary Fund’s (IMF) GDP data for the world and advanced economies from 2001 to 2010. It indexes the 2001 starting value of each to 100, so 2001 100 that the growth rates can be compared.
BEST GLOBAL BRANDS 200100 / 39This year, the ﬁnancial services sector recovered fromlast year’s fall, due to aggressive new entrants andeconomic recovery. The internet services sector, whichhas increasingly become a vital part of every aspect ofconsumers’ lives, continued to show signiﬁcant growth. 7% 6% 4% +2 +2 +2 5% +1 2% +1 % +8 % % % +4 +1 +1FINANCIAL FMCG INTERNET MEDIA RESTAURANTSSERVICES SERVICES -3 -3 % % -4 % -5 % -1 0% This chart shows the annual growth in the -4 combined brand value of select Best Global 0% Brand sectors for 2010, 2009 and 2008. Each 2008 brand is only included in one sector. Besides organic change, sector brand value growth is 2009 also affected by the entrance or exit of brands 2010 from the Best Global Brands table.
40 / INTERBRAND
BEST GLOBAL BRANDS 200100 / 41 AUTOMOTIVEOVERDUE CHANGE stronger conviction for automakers to deﬁne SYNC-based cars, due to be available to the their businesses, relationships with partners public later in 2010, will have proprietaryThe financial crisis had a profound and brands within a complex quilt of regions, smartphone applications as well as the abilityimpact across many industries. But in cultures and economic maturity. to integrate with third-party providers – andparticular the automotive sector had to this is only the beginning.struggle with a cautious consumer market Across the world, many cities will continuewhile addressing signiﬁcant, longer-term to grapple with infrastructures that were not With all the challenges in this segment, expectstructural challenges. designed to handle the volume of vehicles on to see the durability of a brand’s reputation its roadways while simultaneously seeking continue to be tested with revolutionaryIf one digs deeper into the underlying trends to develop greener, more open urban spaces. product launches and safety recalls. Successin the automotive sector, the need for change City populations will continue to grow and will will be driven by global automakers thathas been long overdue. The rising stature of add additional stress to a system that is at or can manage their businesses across matureemerging markets, urbanization, limitations above capacity. The United Nations predicts and fast-developing markets in a proﬁtableof transportation infrastructures, and an that by the year 2030, ﬁve billion people will manner, but also ensure that their brands andincreasing demand for cleaner and smarter live in cities, as opposed to 3.2 billion today; experiences share a core idea and have thetechnologies are trends that are forcing the by 2050, 70 percent of the world’s population versatility to evolve and adjust to local marketindustry to change at a rate and level of will be city-dwelling. These trends will force needs. – Andrew Martschenko, Senior Director inintensity that has never been attempted. municipalities to develop systems that the Strategy Group, Interbrand New York manage traffic ﬂow through public worksThe center of gravity will continue to projects, mass transit and congestion pricing,accelerate and expand from the U.S. and the but will also keep automakers focused onEuropean Union into Asia Paciﬁc and South designing and building cars that are lighter,American markets. The cost structure and cleaner and more efficient.growth opportunities in countries such asChina, Brazil and India make the business The concern for the environment and futurecase an easy sell. China alone has already oil price ﬂuctuation will further drive thebecome the world’s largest market, and its need for smaller vehicles. Companies thatexpansion is in its early stages; with only support automakers will continue to focustwo cars per 100 residents and a population on designing powertrains and supportof over a billion, the potential growth is structures that will make electric vehiclesmind-boggling. India, with an equally large and hybrids a viable, mass-market alternative.population, is not far behind. The investments are beginning to gain momentum but the solutions may be furtherAs production becomes more localized out than immediate market needs.and trading blocks emerge, the need andassociated costs for transporting vehicles Technology will continue to play a vitalwill decline. However, this may be ambitious role: alternative materials in the structureconsidering the ﬁnancial health of auto parts and components of vehicles as well as thesuppliers and the shortage of developed electronics and software that operate them.suppliers in fast-developing markets. With Consumers will expect easy connectivity withthree quarters of the world’s production their smartphones and computers, and thein the hands of 10 global automakers, level of technological integration with vehiclesthese structural shifts will require a more will be akin to the way mobile devices haveintegrated management approach and changed how we live, work and play. Ford’s
42 / INTERBRANDFINANCIAL SERVICESREBUILDING AND REINVENTING CONSOLIDATION At the same time, there is still an opportunity for those brands that did well during and afterThe aftermath of the financial crisis has A common criticism of many of the large the ﬁnancial crisis to maintain their positionsresulted in signiﬁcant changes in the ﬁnancial ﬁnancial behemoths is that they are “too even as the pre-crisis leaders begin to rebound.sector. As a consequence of these shifts, three big to fail.” Despite this, expect to see The events of the last three years havetrends are likely to transform the face of the increased consolidation across the board. provided a new opportunity and banks thatindustry: increased regulation, consolidation Consolidation will be driven by the increased make their social value and ethical behaviorand the emergence of new players. cost of doing business – the cost of acquiring known may trade at a premium and ﬁnd customers and the cost of government incremental revenue.INCREASED REGULATION regulations. Overall, the ﬁnancial industry has provenWhile many ﬁnancial services brands are NEW PLAYERS that it can reinvent itself over and overslowly rebuilding their balance sheets again, ultimately doing what it does bestand recovering from the impact of the The impact of globalization and the by matching parties that need capital withﬁnancial crisis on their business and brands, reshuffling of the ﬁnancial services landscape parties that have capital. A strong ﬁnancialgovernment is becoming a bigger player in following the crisis have provided room for system is a necessary component of our globalthe marketplace by changing the dynamics players that might not have been in the economy and while government interventionwith increased regulations. As a result, consideration set earlier on. Indeed, the is going to be a focus of attention over theﬁnancial services players will grow more new marketplace realities are likely to elevate next few years, ultimately strong brands willrisk-adverse after losing their shirts in the some fast-developing market brands to the drive supply and demand. – Carola Jain, Seniorﬁnancial tsunami. Risk will instead reside center stage. In fact, don’t be surprised if a Director of Strategy, Interbrand New Yorkwith less regulated entities like hedge funds major global ﬁnancial service brand withand private equity ﬁrms. Regulations won’t a fast-developing market base becomes aimpact consumers noticeably, and will leading brand in the next ﬁve years.therefore help restore consumers’ trust inthe overall industry, to some extent.BUSINESS CONSULTINGFIVE-YEAR OUTLOOK: fundamental shift in brand thinking. Most will since individuals tend to believe that their“MINDSHIFTING” see it as a cost and avoid the topic. Others will approach to relationships is sacrosanct. have to muster up the courage to see brands However, business leaders will need toThe traditional professional services business as business assets. realize that although relationships contributemodel is strikingly simple: Hire talent and to reputation, brands help isolate whichfocus on clients. But it’s not that easy. The winners in professional services in the behaviors make relationships more valuableConsider the number of new agencies and future will shift their thinking in the following to the highest-priority customers. This insightconsultancies that sprung up during the three ways: can then be used to create a consistent brandeconomic crisis. How many actually add new experience by insisting on sets of behaviorsvalue to the market? How many will survive? FROM REPUTATION IS from everyone in the ﬁrm. These behaviorsOur guess: few. It’s not as easy as it looks. EVERYTHING TO REPUTATION IS – both client relevant and competitively ONLY ONE PART OF THE BRAND distinctive – will not only preserve reputation,The world’s best service ﬁrms have more EXPERIENCE but will drive client loyalty and price premium.or less conquered the traditional model.Unfortunately, the model is changing. And In the traditional model, the ﬁrm rejects Consider Accenture. Will the experiencejust like their upstart competitors, the future the notion of brand. As a proxy, the ﬁrm of their brand insulate the ﬁrm from thewill not be easy for anyone. The pillars of the refers to its reputation, which the leadership reputational damage of Tiger’s duck hook?business model remain – talent and clients. and/or partners of the firm passionatelyYet delivering a joined-up, value-added, guard and honor. While reputation is bothdifferentiated offer with the global scale a corporate and individual responsibility, itneeded to drive proﬁt growth will require a is disconnected from the brand program,
BEST GLOBAL BRANDS 200100 / 43FROM BRAND IS AN EXPENSE FROM BRAND IS A SPECIAL commit to building its brand over theTO BRAND IS A STRATEGIC PROJECT TO BRAND AS A WAY long-term and make it clear that brand isBUSINESS ASSET OF WORKING never going away. While a journey with no destination is hard to justify, a brandCompanies often view brands like insurance: Many an enthusiastic CMO has put together program should require at least several years’it’s something the ﬁrm must spend money a company-wide brand team, hoping to commitment, with milestones of success andon, and they grudgingly provide some drive a long-term shift in thinking. But after speciﬁc outcomes in mind. Brand teams thatinvestment. Meanwhile, professional convincing the ﬁrm’s leadership to allocate launch a new idea and visual system with aservices firms have always struggled to a substantial short-term investment to the splashy event suffer when these point-in-harness their intellectual capital and have brand, even compelling research ﬁndings time activities lead to brand as a superﬁcialinvested billions into internal knowledge and a case for urgent change can’t prod the project with a beginning and end. Need amanagement systems to leverage this services ﬁrm to fund the brand effort further, best practice example? Hays, also a talentasset. Leaders in the future will treat brand since short-term results aren’t immediately services provider, has embedded the brandin the same way. They will build a compelling produced. Inspired participants become into its go-to-market strategy and culture.brand proposition around the strategic cynics, feeling as though their contributions – Josh Feldmeth, CEO of Interbrand New Yorkgrowth agenda and put metrics in place to will go nowhere.manage success and return. A good exampleis Randstad, the world’s number two staffing If a company decides not to pay attentionand talent services company, that uses a to its brand, it won’t cease to exist – but itvalue-based system to manage the brand’s certainly won’t drive value, and it deﬁnitelycontribution to corporate strategy initiatives. might erode over time. Leadership must
44 / INTERBRANDTELECOMMUNICATIONSTHE CENTER OF THE ECOSYSTEM new innovations or technologies don’t work perfectly from the start, and that not allChanges in the telecommunications sector carriers are equally capable. What’s importantcontinue to occur because of wireless now is that telecommunication brands worktechnology. The enterprise space is evolving hard to infuse these brand platforms intoas a result of networks that now incorporate operations and customer services so thatwireless devices and cloud computing, and delivery of the brand experience is as goodthere are ongoing battles being fought as the brand promise.around government regulations. Another area of telecommunications that isOne of the biggest challenges telecom going to have signiﬁcant impact on the futurebrands face is their relationship with their is wireless technology. Telecoms are lookingcustomers. Telecoms are investing billions to mobilize everything. Consumer behaviorof dollars into their networks to ensure that will continue to signiﬁcantly evolve as morethe latest technology is employed in order to and more of our interactions are poweredkeep up with customer demands. However, over wireless networks. Telecoms are openingcustomers are still not giving them the credit up new revenue streams by partnering withthey deserve. In fact, customers hold such consumer electronics manufacturers forhigh expectations for their technologies’ devices well beyond just the phone. What’swireless network performance, that there’s more, wireless technology is reshapinglittle forgiveness at all when they don’t entire industries – from charitable givingfunction perfectly. At the same time, due and donations to retail to healthcare – byto the massive demands on their networks, introducing new ways of shopping, servingtelecoms are racing against the clock to customers and conducting business.increase network capacity and data speeds.In the meantime, they are also suggesting From an enterprise perspective, now morelimits to network-draining capabilities, than ever, telecoms have the opportunity toand looking for consumers to pay their fair improve how business gets done. Telecomsshare by introducing tiered pricing plans for are moving from a service, to being the centerdata. This creates an awkward – and self- of the ecosystem. From cloud computingdamaging – challenge around stifling to wireless capabilities to being the centerconsumer demand. of interconnectedness, telecoms are becoming the vital piece of the puzzleThe recalibration of the consumer that vastly improves industries and howrelationship is why several companies have customers are served.launched new brand platforms that reframethe conversation people are having about An important task for telecommunicationstelecom’s essence and role. Telecoms want brands is ensuring that key vertical industryto more overtly let consumers know that constituents recognize this transition. Oncethey are not just providing service, but that again, the value of the offering they providethey are creating new ways to live, work and is out of sync with the credit they receive.play. They also want to communicate that – Jürgen Häusler, Chairman for Interbrandthere’s an economic value to their services, Central and Eastern Europethat forgiveness should be granted when
BEST GLOBAL BRANDS 200100 / 45DIGITALFACEWORK: INSPIRING Wikis can maintain a company’s knowledgeINTERNAL CULTURE base across transitioning staff.From low-tech to highly complex, most Electronic rooms allow specialized staffof us perform great feats of technological to collaborate, exchange critiques andintegration in our everyday home lives. We provide support and encouragement toare inventive, adaptive, enthusiastic and far-ﬂung colleagues.adventuresome. Yet we willingly travel backin time upon stepping into an office. So if your holiday snaps are uploaded to Flickr but you cannot ﬁnd a brand-approvedAt home we multitask with video watching, image for your PowerPoint, considerstock checking, banking or ordering goods some simple steps to enter the alreadyonline. Our iPads stand ready to spring to life decade-old millennium.with a click, while our work PC has a built-incoffee break every morning when we “power Start somewhere. Commit to introducingup” (a term that promises way more than it one new feature every 15-30 days. Instantdelivers). The paucity of text in Short Message messaging is relatively simple, and inService (SMS) eliminates page-long emails fact, older than the internet, but stilland an answering service – still, we have voice many organizations discourage its use tomail and endless e-mails at work. minimize risk (real and imagined). However it can transform relations by openingIf Facebook, Flickr, Spotify, Droid and Garmin communication where a phone call or e-mailcan attract users across generations and wouldn’t happen.demographics, it’s clear that we are ready tolearn new programs or hardware in exchange Open source. Use simple free communicationfor functional solutions. An organization has systems like Skype, Grand Central (Googlethe opportunity to engage these users to Voice) and Dropbox to facilitate real-timebuild, harness and grow a community. collaboration across remote locations, time differences or budget constraints.However, many traditional companiesstruggle to affect change when it comes Embrace change. Systems and hardwareto technology. Programs like Basecamp, don’t date well. They need continualSharepoint and the now inert Google Wave maintenance to adjust to changes in theirhave had various successes in bringing integrated surroundings (new browser,collaboration to the work environment; but anyone?) or replacement to take advantagethey may, in fact, be ahead of their time. The of technological updates. Budget, plan fortrick may be in thinking small and simple – and embrace evolution.concepts that are sometimes anathema tolarge organizations. Reduce barriers. Link existing systems (employee records, intranets, assetThe same organizations spend outsize management banks) with single sign-onbudgets attracting and tracking today’s and shared databases to bring preferencesconsumer with concepts like social media and or data along. If Amazon.com can make it soSM optimization, crowdsourcing, community easy to spend money by storing preferences,building, cloud anything, social graphing payment, and shipping information, itand wikis. But each of these concepts can be shouldn’t be so hard for our companies toequally harnessed to enhance our work lives. know who we are when we log in each andFor example: every morning. Leadership could research ideas Engage and delight. Live demonstrations ofand advice through internal social media ﬁxing a leaky faucet can be sourced throughand crowdsourcing. Howcast, but brand guidelines are still housed in physical books that no one reads. Community-building can allow culture Get the VP of Marketing and Communicationsto be built and maintained, morale to be to share his/her infectious enthusiasm formonitored, and feedback to be gathered. proper brand usage in a video demonstration. Give a colleague encouragement to create Social graphing can illustrate how people an edited video of next week’s tone of voicework across an organization for simple to training for future audiences.complex information: from who signs offexpense reports to who has specialized The opportunities are endless but the trick isexpertise in an ancillary ﬁeld. to start. An organization that can positively connect its colleagues will beneﬁt from a Storing files and data in the cloud powerful, consistent internal culture thatcan allow real-time access to traveling or will in turn project outward to consumers.remote colleagues. – Robin Rusch, CEO of BrandWizard
46 / INTERBRANDFOOD & BEVERAGEHUNGER FOR INNOVATION obesity, although this has not grabbed After a year of packaging and brand the headlines as in recent years – even as re-launches, Coca-Cola and Pepsi are focusingEven though food and beverage are the least McDonald’s and Burger King introduce larger on connecting to younger customers throughdiscretionary purchases consumers make, burgers and deserts. Fast food menu nutrition digital and mobile campaigns. Look for thesethey remain vulnerable to shifting consumer labeling laws have taken a backseat to the brands to continue to innovate when it comesbehaviors, tastes and trends. 2010 was no Gulf oil spill and have not extended beyond to social media, consumer co-creation andexception. This year, developed markets New York and California. And yet, with the corporate citizenship. The cola wars aresaw a continuation of last year’s movement exception of KFC and its “Double Down” moving into the iPhone era and marketingto trade down and economize on food and chicken sandwich, most QSR chains have messages are morphing into cause-relatedentertainment budgets. Additionally, the addressed nutrition concerns with revamped and inclusivity campaigns that broaden bothinflux of millennials into adulthood and kid’s meals featuring fruit and yogurt, and brands’ roles beyond winning taste tests.boomers into retirement has shifted meal premium salad options as alternatives toconsumption patterns, demanding a fresh fatty sandwiches. The energy drink category continues to growlook at familiar brands, – whether at the and ﬂood with new entrants. None of thesegrocery shelf or the drive-through. Food service and packaged brands seek to brands make the Best Global Brands rankings drive growth in mature markets by re-framing but Red Bull is ascending and certainly doingConsumers may be trading dining out for their competitive set. No longer are they just many things right from a brand and marketingeating at home, but convenience is still the trying to steal share from direct competitors, standpoint. It continues to drive growth bycenter of value creation. Grocery stores, as but are also focused on creating new stealing occasions from alcohol brands. Redpurveyors of “ingredients,” are evolving to occasions for customers to visit. McDonald’s Bull has also grown in popularity as a mixera place for meal solutions. Semi-prepared continues to source occasions from midscale for alcohol.meals and side dishes requiring less than restaurant chains, forcing these chains to10 minutes to prepare are stealing a bigger respond with lower-priced, smaller meals. While value brands continued to prosper atshare of the shelf and the spending. The non- Applebee’s is extending its hours to midnight the expense of premium brands in maturefrozen convenience meal category has grown and attempting to draw more visits for and economically challenged markets like theover 50 percent in the past three years, and drinks and bar food. Starbucks is making U.S., premium liqueurs and wines have beencompanies like Con Agra, Hormel and Kraft a run at an off-the-premises strategy with an area of potential growth in fast-developingare looking to provide innovation in these its instant VIA coffee. Packaged brands are markets like China. In the future, expect toareas to drive growth. improving and broadening their offerings and see more discrepancies between regions. recipes to meet the demand for something – Bill Chidley, Senior Vice President for InterbrandMeanwhile, quick service brands (QSR) interesting to compete with a dining-out Design Forumcontinue to be demonized as a cause for culinary experience.
BEST GLOBAL BRANDS 200100 / 47CONSUMER PACKAGED GOODSCUSTOMIZATION AND many national brands have pigeonholed an inherently bad thing, but it must addCONSUMER CONNECTION themselves as a cost-effective choice with meaning. Now, more than ever, consumers no other tangible beneﬁt. This approach demand delight, connection and value.As the economy rebounds and consumer is bound to cause problems when priceschoices grow, customization and connection rise, and consumers can no longer justify Meeting these demands requires brands towill drive a national brand revival in the the purchase. On the other hand, brands look at themselves in the mirror, examineConsumer Packaged Goods sector. One year that communicate an additional beneﬁt – a their equities and core messaging, andafter private labels’ startling retail takeover, reason to spend more – while consistently uncover, at the heart of it all, why consumersnational brands still struggle to compete leveraging their equities, will prevail. connect with them in the ﬁrst place. Basedbut are slowly gaining traction. Some have on this self-evaluation, brands must extractmanaged to reign supreme. Others have The future of brands depends on their and elevate their on-pack assets to allbeen swiftly dethroned, due to consumers willingness to adapt more and more to touchpoints. Packaging that resonates withwho, confronted with hoards of low-price consumer needs and trends. Successful consumers will inspire brand campaigns thatoptions during the recession, became more brands must simultaneously cater to local also resonate with consumers.discerning about their purchases. cultures and appeal to a global audience, recognizing that one size does not, in fact, Recession or expansion, private or nationalBrands once dismissed from consumers’ ﬁt all. Case in point: packaging for Coca-Cola, brand, the principles for global CPG successweekly consideration set transformed Jones Soda, Kleenex, Puffs and Orbit in the remain the same: invest in customization andinto true contenders. Meanwhile, so- U.S. reﬂect consumer personality and fashion consumer connection. Doing so will shape acalled “monogamous” consumer-brand sensibilities. By relating to their targets ﬁrst markedly different brand landscape for nextrelationships ended in divorce (or at least and foremost, these brands deepen the year.– Dyfed “Fred” Richards, Executive Creativetemporary separation). Sure, tightening consumer connection. Director of North Americawallets played a role in this development, butthere’s more to the story. Consumers aren’t Building a powerful consumer connectionjust demanding affordability from brands; begins with packaging. Over the past year,they’re demanding honesty and trust, clarity lack of respect for brand equities on-packof communication and deeper meaning. has slowly evolved into a strategy of ﬂexible branding. That is, as long as the brand canThis puts one-note, value-heavy brands in be identiﬁed at shelf based on a holistica precarious position. By playing “the price campaign across media, its equities passis right” to compete with private labels, muster. Make no mistake: Flexibility isn’t
48 / INTERBRANDLUXURY3-D STRATEGY FOR THE Yet, combining past and present is certainly with rarity. Among the brands that haveDIGITAL AGE not the only enigma for global luxury consistently performed well in difficult leaders. The future poses a far more complex times are Hermés and Ferrari, two examplesThe events of 2008 ignited a metamorphosis challenge. In the digital age, luxury brands of brands with wisely self-imposed growththat was as swift as it was profound, can no longer choose rarity over ubiquity, limitations despite – or, actually, as a drivertransforming luxury from the pursuit of exclusivity over accessibility. For the ﬁrst time, of – their legendary status.a desired status to the rediscovery of an they are forced to manage these opposites.authentic essence. In the darkest hours, the Finally, individual discovery is where thetrue leaders chose to look back. Today, as the To do this, they will need to adopt what could pristine essence of any true luxury brand playsskies clear up, the challenge for them will be be dubbed as a “3-D” strategy: Create mass out, and where savoir faire, craftsmanship andto look ahead. desire, drive selective demand and cultivate the pursuit of excellence will keep playing a individual discovery. key role, even in an increasingly digital world.2011 will bring, ﬁrst and foremost, the quest Important as innovative touchpoints can be,for relevance. Can you make history young In the digital age, luxury brands have these brands will not generate long-termagain – and do so constantly? The past months unprecedented opportunities to create economic value unless they nurture theirhave seen Gucci do this by intertwining desire by making their world accessible ability to offer an outstanding experience todifferent elements: a celebration of its origins to the connected masses. These brands some of their customers – the cognoscenti.as the central theme of the “Forever Now” can further enhance their iconic status bycampaign, the creation of a contemporary engaging legions of consumers ubiquitously, After all, omnipresent networks, cloudstatement through its collections, and the through constantly changing and innovative computing and mobile devices are shiftingrevival of classic items in subtle product touchpoints – from mobile apps to social our notion of usage from possession toand communication details. For Louis media channels, from online retailing to sharing. All of us access more, each of us ownsVuitton, instead, the “Le Voyage” concept multichannel campaigns. less. Luxury brands have the opportunityhas become the pulsating centerpiece to become the quintessence of thisof multiple rolling initiatives across Mass desire, however, must be carefully paradigm – desired by all, demanded bydifferent channels. converted into selective demand – this is some, and truly discovered by the few. where these brands’ mythical heritage and – Manfredi Ricca, Managing Director of exclusiveness is at stake. Value only comes Interbrand Milan
BEST GLOBAL BRANDS 200100 / 49RETAILTHE MULTICHANNEL expansion plans in place to take advantage of consciousness. In the future, consumers mayBRAND EXPERIENCE the newly pragmatic and practical consumer. own less, but ego will still demand a public They’ve also invested in improving the display of taste and luxury. Budgets will beLast year, store expansion slowed nearly to shopping experience to better serve their conserved and spent on what many of usa halt as e-commerce grew. Multichannel low-income and value-conscious shoppers. today consider luxuries.brands that experienced negative same storesales were saved by their online channels, While world events have changed society, For the ﬁrst time in history, retailers areespecially if they offered free shipping to technology has changed individual behavior. being forced to see themselves as brands.the price-centric shopper. Overall, retailers As a group, U.S. consumers are less trusting The traditional practice of putting storehave been forced to focus on the resources and have higher expectations for corporate merchandising and layout in the lead isat hand, streamlining their physical assets. transparency. We’ve changed the way we already outdated. Mobile shopping effectivelyNow with the economy showing a little communicate, and that has changed the ﬂips the priority from the box to the screen.more life, consumers are spending, but way we shop. Consumers aged 16–34 are Retailers have no choice but to focus andnone too conﬁdently. Retailers, however, most likely to use technology, including concentrate their brand power in order toare optimistic, with 92 percent planning smartphone apps and e-commerce sites. create experiential moments of delight andto expand internet presence next year. But Smart retailers are testing iPad apps, text emotion at these wireless touchpoints.with so much of their capital budgets spent alerts, mobile sites and social networking However, in the short-term, most retailersto accommodate their online channels, the to become more involved with multichannel still lack an understanding of the qualitiesin-store experience is at risk – a somewhat shoppers. The more closely engaged the of their brand and how it translates in theworrisome trend, as consumer forecasts shopper, the more loyalty and frequency shopper’s mind. Acting like a brand demandsindicate that the store will only increase in can be expected. Over the next ﬁve years, clarity of voice, differentiation, innovationimportance as it becomes the hub of the companies will gain even deeper insights and value-add like never before. Virtualmultichannel brand experience. into behaviors around mobile shopping so and physical brand spaces both need to that they can create multichannel strategies, become rich, personal and meaningful, asThe value category continues to see gains shelf principles and store designs that are in delivery of brand equity takes the forefront.as the “long-tail” of the recent economic sync with the mindset of tomorrow. – Bruce Dybvad, CEO of Interbrand Designcrisis. Frugality has become the new form Forum and Interbrand Cincinnatiof conspicuous consumption. Favored by Society is going to move toward smallerthe market, retailers such as Family Dollar, cars and smaller homes, as millions ofAldi and Advance Auto Parts have aggressive younger consumers demonstrate social
50 / INTERBRANDMEDIATHE THREAT OF THE UNKNOWN ongoing basis. Brands that embrace these nothing new, but few companies are actually opportunities will drive customer interest embracing customer participation in theThe media industry continues to undergo and adoption. brand-building process, and have insteaddramatic change. More nontraditional players tried to control it. Brands need to rethink theare entering the space, while established To capitalize on all the opportunities, brands way they treat customers and interact withcompanies are struggling to adapt their must begin to use social media as more than them. Customer service is no longer justbusiness models and brands to keep up just an outreach platform. Having a Twitter about solving a problem that is controlled bywith the rapidly changing times. Increased feed, Facebook account or hosting a blog has the company. Rather, it happens all the timeconsumption of content on the go, the become par for the course. While a presence in peer-to-peer conversations. Brands needcontinued use and impact of social media, on these outlets can have a positive impact to ﬁnd ways to tap into these conversationsand the ever-expanding role of customer on a brand, most companies are not using to listen and learn, but then also act on theparticipation will force brands to rethink these powerful tools strategically. More information they gather, allowing customershow they go to market as well as redeﬁne importantly, companies must become to shape the brands in ways that are mostthe meaning of customer experience. Brands smarter about how they measure the meaningful for them.are no longer built by marketing departments impact of their social media efforts on theiralone, but driven by the dynamics that have brand and business. As social media spend New forms of communication and interactionreshaped the media landscape. continues to increase and dollars shift from will continue to drive the shifting media other channels, it is paramount for brands to landscape, but it is the continued threat ofExplosive growth of smartphones, iPads, fully commercialize the channel – especially the unknown that will put even more pressurenetbooks and other on-the-go devices since less than a quarter of all companies on brands in this space. More innovativehas fundamentally altered the way measure the ROI of their interactive efforts. offerings and products are likely to emergethat customers consume information. Today, social media is largely used as a and redeﬁne the space. Media companiesOn-the-go content consumption will only communication channel, but successful will need to stay ﬂexible and nimble to ensureincrease due to the growth of streaming brands will monetize the channel to drive their own long-term survival and success.videos, video-conferencing and multimedia business success in a measurable way. – Cassidy Morgan, Executive Director of Strategyweb events across mobile platforms. The and Analytics, Interbrand New Yorkmobile space and the explosion of apps Most importantly, though, the notion ofoffer brands unprecedented opportunities customer experience has been redeﬁned. Theto reach and interact with customers on an idea of creating a dialogue with customers is
52 / INTERBRANDHEALTH ENERGYBIG PHARMA TO BIG HEALTHCARE outside of the U.S., and emerging markets 108 DAYS LATER post double-digit growth rates comparedAs we close the door on the ﬁrst decade of to the stagnant performance in many April 20, 2010, the date of BP’s Deepwaterthe 21st century, the idea of brands and mature markets across North America and Horizon oil spill, marked a new chapter in“Big Pharma” has been ushered out and Europe. While these markets each have their global energy strategies. Its impact has yetreplaced with the more relevant discussion: own speciﬁc and complex rules of brand to be deﬁned, but what we do know is thebrands and “Big Healthcare.” The shift, a long engagement, the pharmaceutical companies fallibility of human engineering and theoverdue industry discussion, marks a new that succeed at tapping into this audience are irrevocable forces of nature have profoundlyfocus on the industry’s commitment to likely to win big. altered the debate and sentiment aroundcreating companies that can improve overall energy policy, strategy and innovation.healthcare delivery through an increased PAYER POWER Even without a clear agreement from thefocus on partnerships, comprehensive Copenhagen Climate Council, BP’s failedportfolio offerings, and more global, We’ve witnessed both public and private deep-sea drilling and the stalled globalsystematic solutions. Just as petroleum sectors converge toward increased payer economy have contributed to three areas ofbrands have undergone a transformation control and efficiencies via consolidated active investment for the energy sector:toward a “sustainable energy”-oriented care delivery models – as seen in Europe.approach with partners and end-consumers, What’s common is that across markets and CONSERVATION, EFFICIENCYthe leading pharma brands will likely emerge different payer systems, the payer sector is AND RENEWALas true health provider brands in the next moving to an aggressive “price taker” position.decade. With the broadened deﬁnition of In order to differentiate in this climate, Petroleum companies, utilities andthe sector in mind, here is a list of ﬁve trends pharma companies will be pushed to think high-energy-consumption products mustanticipated to change branding in the across product lines, therapeutic categories, accelerate conservation and efficiencyindustry for the next decade. clinical settings and operating units to meet innovations in order to accommodate the higher-order systemic needs of these the global demand for oil. For those whoDIVERSIFICATION key accounts. Novartis and Merck & Co., invest in these areas, the opportunities are Inc. have already piloted new partnerships staggering. Efforts are already being made inAs a result of partnerships and acquisitions, that negotiate and secure future revenues grid technology, with utilities in partnershipmany pharmaceutical companies now by connecting product sales to a more long- with IBM and GE. In the automotive industry,encompass generics, consumer products term view of driving shared investments and concept-to-market is already being realized(OTCs), vaccines, medical devices, diagnostics shared outcomes. in both electric and hybrid models. Retailers,and even electronic medical records. While most notably big box, are also formingdiversiﬁcation is usually seen as a defensive PERSONALIZED MEDICINE significant partnerships to encouragestrategy to mitigate risk, the future efficiency and conservation.opportunity is in the ability to create new This is a trend that has already been hypedvalue. Some companies have chosen to in the previous decade, but due to the CONSUMER AND COMMERCIALconsolidate their offerings through a common confluence of trends already discussed BEHAVIORAL CHANGEbrand (GE Healthcare) or through a holding above, it promises to become an industrycompany of freestanding entities (Johnson & norm, rather than an exception. Overall, Utility brands are developing programs toJohnson), but the greatest opportunity lies in the increased emphasis placed on linking fundamentally change how energy userscompanies effectively unifying their range of products to drug screening and monitoring overcome barriers to adopting energy-smartofferings and capabilities through a common will result in brands taking a more patient- living. To foster a new “normal” for energybrand that will strengthen the company’s centric, service-oriented approach. This consumption, organizations are focusing onrelationship across key constituents. makes the pairing of the company’s branded brand building, marketing and technology. service model a natural strategic counterpart Community programs in the U.K., Canada,BRANDED GENERICS to the product brand, underscoring the value Australia and the U.S. are gaining traction. of buying a drug from a preferred companyA record number of drug patents are expected of choice. ECONOMICALLY VIABLEto expire in the next few years, resulting in TECHNOLOGYprice drops in certain categories. Meanwhile Not by coincidence, the key brand implicationgenerics increasingly continue to steal running through each trend is the continued The challenge for alternative energy will beprescription market share. For big healthcare emphasis on stronger, more uniﬁed corporate in making new technology economicallycompanies, this is an opportunity to place a branding as a leading future source of value viable. As the price of a barrel of oil continuespremium on guaranteed quality assurance creation and differentiation. With the corporate to ﬂuctuate, so will the appeal of alternativeand higher levels of service, particularly emphasis on diversiﬁcation, it’s reasonable fuel opportunities. The weakened economywith drug supply, counterfeiting and public to believe that the most valuable healthcare has slowed the investment in solar, wind andsafety issues continuing to grab headlines. brands will no longer be the blockbuster hydropower. However, with all the negativeCompanies such as Novartis and GSK could prescription products of drug-makers. Across scrutiny on oil exploration, the leadingposition a line of branded generics as a viable the board, we’re already seeing top drug-makers innovators in alternative fuels will garnerbrand strategy to strengthen their company focus on corporate and portfolio (franchise) investor interest. The catastrophic andbrand across their consumer (OTC) and branding efforts to complement traditional tragic events of the BP disaster in the Gulfprescription businesses. investment behind product branding. of Mexico will reshape how energy sector – Jane Parker, CEO of InterbrandHealth leaders approach growth and development.FAST-DEVELOPING MARKETS The demand for energy has not dissipated, but the ways in which energy brands satiateRegions such as China, India, and Eastern this demand is shifting. – Tom Zara, ExecutiveEurope represent an important growth Director of Interbrand New Yorkopportunity for the sector. More than 50percent of global revenues at many of thetop pharma companies are now sourced
BEST GLOBAL BRANDS 200100 / 53200100 BRAND 761,617 $mVALUE BY 8 00 ,00 0$ mCOUNTRY 75 0,0 0 0$ mThe U.S., which has the world’s largest economy, ranks highest in total brand value. Germany, mthe world’s fourth largest economy (and largest in Europe) follows. It is notable that brands 0 0$from China, the world’s second biggest economy, have yet to become true global leaders. While 0,0 70Chinese brands like Lenovo and Haier hold much promise, China continues to struggle withcrafting a global name for itself beyond just low-priced products. m 0 0$ 0,0 65 98,461 $m m 0$ ,00 6 00 80,880 $m m 0 0$ 0,0 10 m 0$ ,00 90 m 55,105 $m 0$ ,00 80 12,313 $m 15,352 $m m 24,524 $m 0$ 15,738 $m 3,847 $m ,00 26,070 $m 70 16,215 $m 28,623 $m 34,672 $m 29,495 $m m 0$ ,00 60 m 0$ ,00 50 m 0$ MEXICO ,00 40 SPAIN ITALY m 0$ ,00 CANADA 30 NETHERLANDS m 0$ ,00 KOREA 20 UK m SWEDEN 0$ ,00 10 FINLAND SWITZERLAND FRANCEThis chart shows the total brand value of the 0 JAPANtop 100 brands that are headquartered ineach country. The measure is in millions of GERMANYU.S. dollars. USA
54 / INTERBRAND AIRLINESBRIGHTER SKIES year. Business class passengers have returned TECHNOLOGY AND THE and changing demographics across the region CUSTOMER EXPERIENCEAfter a dreadful two years, the outlook (in particular China and India) support afor international air travel is beginning to sustained period of growth for Asian airlines. Value can be delivered in many ways, andbrighten. The International Air Transport Low-cost carriers are also seeing improvement successful airlines have learned that priceAssociation’s (IATA) June 2010 account of the due to the overall growth in tourism and the competition alone is not sustainable.industry reveals that passenger volumes have introduction of new destinations to lure Technology will be a major differentiator,returned to a level that is one to two percent consumers. With vast numbers of people with many Asian and Middle Eastern airlineshigher than 2008’s pre-recession conditions. never having travelled at all, the long-term planning on-board Wi-Fi services to gain anThe placement of orders for more than 400 future remains optimistic for these carriers. edge on competitors.aircraft at the Farnborough International AirShow in the U.K. is a clear sign of growing The Middle East looks even brighter, with In-ﬂight connectivity is a hot topic and isconﬁdence in the industry. However, while all passenger traffic rising 18 percent from June very likely to be a short-term differentiatorsigns point to better days ahead, the picture 2009 to June 2010. A key reason is the ability in consumer decision making, especiallyaround the globe is far from consistent. of its major hubs to attract long-haul traffic for long-haul flights. Technology will between Europe and Asia. Indeed, by 2020, revolutionize onboard services and brandA MIXED RECOVERY it is highly likely that North American and communications by allowing airlines to European airlines will no longer dominate the have real-time two-way conversations withThe U.S. has seen a recovery in passenger skies, with demographics alone indicating a passengers through social networking andand cargo levels but the domestic picture global shift in aviation power. other online media.in Europe remains weak as the economiescontinue to struggle with recovery on a ENVIRONMENTAL PRESSURES The question for brand owners remains:sustained basis. Europe is recovering at the RE-EMERGE Which brand touchpoint is a genuine driverslowest regional rate of 7.8 percent, and is of purchase, and which ones are simply nicethe only region that has not experienced With economies improving, environmental to have? In the longer term, the successfuldouble-digit growth. Premium air travel has concerns have re-emerged as a priority. airlines will know what factors are trulynot yet rebounded and the region is also The airline manufacturers, airlines and driving demand, and will redefine theirhome to a competitive landscape ﬁlled with governments will continue to actively look for brand strategies around relevant customermany new generation low-cost carriers. ways to signiﬁcantly reduce emissions in the experiences across interconnected customer future. Environmental pressures will remain a touchpoints. Airlines need to challengeThe Asia Paciﬁc region, on the other hand, has challenge as well as an opportunity, and could convention and offer clear differentiation,recovered strongly with upward momentum be a differentiator for some. but it’s also critical to deliver relevant productbuoyed by stronger economies with and service innovations to their speciﬁc targetpassenger growth of 15.5 percent over last customers. – Stuart Green, CEO of Interbrand Asia Paciﬁc
BEST GLOBAL BRANDS 200100 / 55HOTELS & HOSPITALITYMEMORABLE MOMENTS Plaza have been investing heavily to achieve to give their partners, guests and employees physical consistency standards across their the currency with which to talk about andThe hospitality and hotel sector has been vast networks at a time when consumers advocate their total hotel experience.increasingly impacted by customers’ quests increasingly value emotional beneﬁts andfor and exposure to rich experiences. Today’s local color. Unfortunately, these consistencies THE SMART MONEY IS INVESTINGcustomers are more sophisticated and deliver on functional rather than emotional IN BRAZILtherefore more adept at identifying the sweet beneﬁts at an elevated price, which meansspots in the emotional equation. To meet their costs – and therefore prices – are higher Despite the current torrid ﬁnancial timestheir desires, hospitality and hotels brands than the value guests put on their beneﬁts. of the hotel industry, Brazil is the choicewill need to move away from superficial destination for investors given the leadgestures like nicer pillows, and focus on POWER SHIFT FROM HOTELS times on hotel building. With the FIFA Worldcreating truly memorable moments of delight TOWARD THE GUEST Cup taking place there in 2014 and the 2016in order to connect with customers. Olympics being held in Rio de Janeiro, the It is likely that there is even more pain to come smart global money is focused on planningPOLARIZATION ALONG THE for the middle market as the wider consumer and securing hotel development investmentsEMOTIONAL-VALUE EQUATION trend towards bricolage or “mix-and-match” in Brazil. The average investment costs range buying continues. Gone is the old dogma from US $150,000 per key (room) for a budgetBrands will need to match the level of whereby guests were loyal to a single type of hotel up to a chilling US $700,000 per key inemotional beneﬁt with the right price, leaving hotel. The transparency of social networking a luxury development. This highlights thecustomers feeling savvy about their thrifty and review sites like TripAdvisor, Mr. and Mrs. central challenge in making money in thechoices or seduced by indulgent escapism. Smith and Facebook, have increased guest hotel industry: The investment timing occursAs a result, expect to see the hotel market conﬁdence and shifted the power back to counter-cycle, so you need to invest whencontinue to polarize. Similar to the airline the consumer. Guests are now self-assured the market is down in order to gain rewardsindustry – with the huge gap between enough to stay in a budget hotel for that as it strengthens. Investing in this sectorbudget airlines like JetBlue or EasyJet, and overnight stop on the drive to the South is for the brave, but it rewards bold movesSingapore and Etihad – mid-market hotel of France before rounding out their week’s with substantive gains – as long as you canbrands that don’t have the simplicity of a villa stay with a couple of nights at a high- hold your nerve when the immediate futureno-frills brand like Ibis or the service occasions end spa resort. Hotels need to recognize the looks bleak. – Iain Ellwood, Executive Directorof a boutique collection like Six Senses are door-to-door customer journey and plan of Consulting, Interbrand Londonlikely to encounter challenges. and deliver it to their guests. Otherwise, they will be relegated to a component inThis is especially true given that middle the holiday, rather than deemed the heartmarket hotel brands like Hilton and Crowne of the experience. To avoid this, hotels need
56 / INTERBRANDFAST DEVELOPINGMARKETSREAD, REACT AND GO WITH significant brand changes after mergersTHE FLOW that effectively eliminated one of the brands to strengthen the other. As countries likeAccording to the International Monetary Argentina, Mexico and Colombia continueFund (IMF), emerging markets now to develop, their markets and brands willrepresent about one third of the world’s GDP also have to adapt to changes in the wayand are growing much faster than mature consumers relate and engage with them.economies. These markets are also fertileground for creativity and innovation: an ideal In Asia and the Middle East, China remainsenvironment for dynamic, value-creating the fast-growing giant, but definitelybrand growth. So what’s been happening in not the only interesting market to watch.these markets this year? While consumers in Malaysia, India, Thailand and Indonesia are gaining access to newlyAfrica has received a lot of attention, not arrived international brands (global favoritesonly because of the FIFA World Cup in South like McDonald’s, Sony, Nestlé and Apple),Africa, but because it has garnered signiﬁcant Russian consumers seem to be moving ininterest from such giant economies as China a different direction. Three different trendsand the U.S. Two countries to watch are seem to be arising simultaneously: a returnNigeria and Kenya, where Interbrand recently to national brands that convey Russiandeveloped interesting brand identity work for character and traditions (Ochakovo,Nigerian Eagle Airlines and Kenya’s Gulf Bolshevik, Zelenaya Marka and Kopeika); anEnergy group. approach that implies western origin (Alpha Bank, BeeLine, and Greenﬁeldtea); and aIn Latin America, Brazil has been the star, “new Russia” approach that reinforces thealmost unaffected by the global ﬁnancial Russian origin but also reﬂects a modernitycrisis. With a steady ﬂow of foreign and local that avoids associations with its Soviet pastinvestment, the country has experimented (Bosco Sport).with a surge of mergers and acquisitions inthe food processing, telecom, agribusiness In summary, a changing environmentand retail sectors, which has made a direct is business as usual in fast-developingimpact on some of its most valuable brands. markets. To take full advantage of the manyAs an example, two of the countries’ largest opportunities available, brands must learnretail banks (Brazil’s Itaú and Spanish bank how to read, react and go with the ﬂow.Santander) have followed through with – Alex Pinedo, Managing Director of Interbrand São Paulo
BEST GLOBAL BRANDS 200100 / 57CONTRIBUTORSJulian Barrans Jürgen Häusler Manfredi RiccaJulian Barrans is the Managing Director of Interbrand Jürgen Haüsler is Chairman for Interbrand Central Manfredi Ricca, Managing Director of InterbrandSingapore, where he focuses on the strategic and and Eastern Europe. Jürgen is the Honorary Milan, is a frequent international lecturer andcreative brand management of global and local Professor for Strategic Business Communication at commentator on luxury brands. His articles,brands in Southeast Asian markets. His considerable the University of Leipzig and regularly contributes interviews and comments are regularly publishedexperience working with brands helps clients drive to professional journals. in Italian newspapers and ﬁnancial publications.growth and proﬁtability. Atsushi Iwashita Dyfed “Fred” RichardsGonzalo Brujó Atsushi Iwashita is the CEO of Interbrand Tokyo. He Executive Creative Director of North America, DyfedGonzalo Brujó is Interbrand’s Executive Director in has advised clients in multiple international markets “Fred” Richards has more than 20 years of globalMadrid, where he leads client engagements with and previously held a senior brand leadership experience in the design industry and is a frequentmajor national and international brands. He is a position at a best global brand. contributor and commentator in local, national andpublished author, a regular speaker at business international press.schools and international forums and a frequent Carola Jaincolumnist for the Spanish press. Carola Jain is Senior Director of Strategy at Robin Rusch Interbrand New York. Carola has worked on global Robin Rusch is the CEO of BrandWizard, a subsidiaryLeslie Butterﬁeld brand valuation projects for Fortune 500 companies of Interbrand. By focusing on what’s possibleAs Global Chief Strategy Officer, Leslie Butterﬁeld and is a frequent media commentator on the subject through innovation and user experience, Robinoversees the growth and development of of ﬁnancial brands. partners with brand owners to solve business issuesInterbrand’s brand strategy products and through technology.methodologies. He has written widely on the Federica Judicasubject of brands and is considered one of the Federica Judica is Managing Director of Interbrand Jeremy Sampsonleading thinkers in the marketing industry in San Francisco. A technology industry veteran, Jeremy Sampson is Executive Chairman ofthe U.K. she leverages customer insights in brand and Interbrand’s offices in South Africa and sub-Saharan marketing strategy to help companies transition Africa. Jeremy is a visiting professor at the GraduateFrank Chen from technology-driven to market- and business- School of Business, University of Cape Town andCEO of Interbrand Shanghai, Frank Chen leads driven strategies. chairs various judging panels and boards.Interbrand’s practice in China. He has more than 20years of experience in Chinese brand strategy and Andrew Martschenko Nicola Stanischmarket research and advises top clients from China Andrew Martschenko is a Senior Director in the Nicola Stanisch is the Managing Director ofand around the world. Strategy Group at Interbrand New York. Andrew Interbrand Moscow. She has led numerous client applies his expertise and insights across multiple programs in Central and Eastern Europe, spanningBill Chidley sectors and geographies to help organizations the automotive, energy, ﬁnancial, government,Bill Chidley is Senior Vice President for Interbrand become better understood through their brands. real estate, retail, telecommunications andDesign Forum. Bill is a noted authority on branding, transportation industries.design and industry trends, and a widely sought- Cassidy Morganafter source for national and trade media. Cassidy Morgan is Interbrand’s Executive Director of Tom Zara Strategy and Analytics in New York. He leads brand As Interbrand’s Executive Director in New York,Bruce Dybvad valuation and strategy engagements for major Tom Zara is responsible for the management ofBruce Dybvad is CEO of Interbrand Design Forum brands across diverse industries and markets. brand strategy, corporate identity programs,and Interbrand Cincinnati. He integrates research, name changes and launch communications. Hisdesign, strategy, architecture and implementation Nina Oswald expertise in corporate citizenship is invaluable toto build leading retail brands. Nina Oswald is Managing Director of Interbrand Interbrand’s clients. Cologne. With a focus on client service management,Iain Ellwood brand strategy and trend analysis, she develops A very special thanks to the valuation, analytics andIain Ellwood is Executive Director of Consulting, intelligent solutions to help clients create and design teams that contributed to 2010’s Best GlobalInterbrand London. Iain has more than 20 years manage their brands. Brands report. In particular, thanks to Nik Stucky,of international experience, is a published author Julian Dailly, Sean Mead, Abby Jansen Van Vuuren, Alrunon branding issues and a Royal Society of Arts Jane Parker Zanker, Damiano Vitali, Jennifer Bassett, Peter Cenedella,(FRSA) fellow. Jane Parker is CEO of InterbrandHealth. Jane has Nanette Gutierrez, Caroline Howell and Annie Kissling. a vast knowledge of the healthcare sector and We also thank the Interbrand teams around the globeJosh Feldmeth pioneered the concept of consumer branding within that contributed their time, research and talents this year.In his role as CEO of Interbrand New York, Josh the pharmaceutical sector.Feldmeth helps to ensure that everything we do forclients, from strategy to creative, creates business Andy Paynevalue. Josh has extensive multinational experience Global Chief Creative Officer Andy Payne manages,building rigorous, analytics-informed strategies. enhances and develops all of Interbrand’s creative services. He continues to successfully buildStuart Green Interbrand’s creative work and has contributed toStuart Green is CEO of Interbrand Asia Paciﬁc. With some of the ﬁrm’s most prestigious projects.more than 25 years of experience across virtuallyevery continent, he ensures that Interbrand’s diverse Alex Pinedoand collective thinking leads to a distinct customer Alex Pinedo is the Managing Director of Interbrandexperience for every client. São Paulo. Alex’s practical and holistic view of business, strategic planning and marketing hasGraham Hales been shaped by more than 20 years of experienceGraham Hales is CEO of Interbrand London. A regular working with valuable global and Brazilian brands.conference speaker and media commentator, hisconsulting work spans a diverse range of businessagendas, geographies and cultures.
CONTACT USJez FramptonGlobal Chief ExecutiveTel U.K.: +44 (0)20 7554 1183Tel U.S.: +1 212 798 firstname.lastname@example.orgLisa Marsala KlineGlobal Communications DirectorTel: + 1 212 798 email@example.comADDITIONAL INFORMATIONON BRANDS:www.interbrand.comwww.brandchannel.comFollow us on Facebook and Twitter:www.facebook.com/interbrandwww.twitter.com/interbrandFor reprint permission of this report orits articles, please contact Lisa Kline.Interbrand began in 1974 when the world still thought of brandsas just another word for logo. We have changed the dialogue,redeﬁned the meaning of brand management, and continue to leadthe debate on understanding brands as valuable business assets.We now have nearly 40 offices and are the world’s largest brandconsultancy. Our practice brings together a diverse range of insightfulright- and left-brain thinkers making our business both rigorouslyanalytical and highly creative. Our work creates and managesbrand value for clients by making the brand central to the business’sstrategic goals.