Best Global Brands 2012
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  • 1. BestGlobalBrands2012The definitive guide tothe 100 Best Global Brands
  • 2. Table of ContentsThe Future is Human The Future of Brand 2 Building 22Playing to Win on theDigital Frontier Best Global Brands 2012 6 24Brand Humanity of Sector OverviewsOlympic Proportions 72 10 Criteria, Methodology,The World’s and Brand StrengthToughest Brands 134 14 ContributorsCitizens All: The New 142Rules of CorporateCitizenship 18
  • 3. The Future is Human By Jez FramptonIf 2011 was about upheaval and uncertainty, 2012 has been abouttransition. Last year, dissent was in the air as protestors took tothe streets from Tahrir Square to New York City, a nuclear crisisin Fukushima reignited a worldwide energy debate, and ongoingissues in the banking industry have brought — and continue tobring — deficiencies to the fore. Like it or not, we are entering anew world. Connected, networked, hyper-aware, and fraught withcontradictions, this new world is complex and confusing, but rich,intimate, and alive. It is, for brands, full of promise and bound-less possibility — if organizations can learn how to tap into thisvast intelligence. The inexorable rise of digital consumers, furtheraccelerated by the mobile and tablet revolution, is radically shift-ing the dynamics of the marketplace. Facebook, which has foreveraltered the way we communicate and relate, went public this year.The London Olympics was not only the greenest Olympic eventever staged, but the most digital to date. Welcome to the future.Information has leveled the playing field, but has also compli-cated it. Though data — and lots of it — is available to all, thatdoesn’t mean everyone understands which bits of informationare important or how they can be strategically applied. Today’scustomers are skeptical, vocal, savvy — and have everyone compet-ing for their attention. Any brand that becomes fixated only onthe data, and forgets that those numbers are really people, willbe punished swiftly. Big data facilitates personalization, not areturn to broadcast. Only brands that stay transparent, activelyengaged, and true to their promises will manage to capture heartsand minds, earn trust and loyalty, and command a premium.Today’s best brands are in touch with their own humanity andthe humanity of others. They listen to consumers, employees,and investors alike and respond to the messages they receive.They want to know how people really feel about their com-pany, they gather input and use it to drive innovation, andthey realize that there is a lot to be learned from the wisdomof crowds. The challenge for brands is to respond quickly andwith sincerity, or they risk compromising the relationship.After all, brands evoke emotion. They are personal. They fulfill anddelight us. They are reliable, familiar, exciting, surprising, andever in the fabric of our lives. They are woven into our memories, Best Global Brands 2012 / The Future is Human
  • 4. fantasies, and dreams. They have the power to touch and change usprecisely because they are human creations, invented in response toboth our deepest and most practical needs.The principles that build and maintain strong brands still hold true,but sometimes we forget that people are really at the center of it all.Resonant symbols, cultural images, emotional attractors, behaviordefiners — brands are all this and more. They are living businessassets: a concept, a feeling, a differentiating promise that grows,evolves, and will never die as long as a brand is kept alive in theminds of people. In order to succeed, brand owners must becomemore sensitive to the needs and desires of informed and discerningcustomers who demand high degrees of engagement — and consis-tency. And increasingly, the capacity of brands to deepen existingrelationships and develop new ones relies on their ability to leveragenew technology in service of the human connection.Those who manage the Best Global Brands 2012 understand the rolethey play in peoples’ lives, and respond accordingly — building onsuccesses and making up for mistakes. They are constantly nurturingtheir brands to keep pace in a rapidly changing world; they know thatevery market is different, every interaction counts, and every indi-vidual matters. Quite an achievement in such turbulent times. Thesestrong, highly innovative brands have earned the loyalty of manyindividuals who, collectively, contribute to their power and prosperity.They have also earned our respect and admiration, along with a placein our report. Jez Frampton Global Chief Executive Interbrand 4
  • 5. Playing to Win on the Digital Frontier By Simon Smith and Erica Velis Digital is advertising’s new ecosystem, a USD billion company, beset with problems, dicey frontier for most major businesses, and the stock continues to fall. With the IPO a new medium for conversation, and a a distant memory and the stock value roughly technological wonder that has connected halved, the Facebook brand has taken a hit the world. It’s also among the most misun- and the effects on the market, the sector, and derstood phenomena in business today. the company itself, are likely to last a while. We are only just beginning to discover its potential to enhance business and, so far, Another digital company that has fallen investing in digital companies has proven far short of expectations is Zynga. Using to be a gamble. With a billion users on Facebook as a platform, Zynga is best known Facebook and 500 million on Twitter, for interactive games like FarmVille and there is no doubt that social media is CityVille, and has grown rapidly since it flourishing. A huge captive audience, and emerged on the social network scene. Games the promise of transforming “likes” into and apps have exploded in popularity in sales, has piqued the interest of investors the past few years, an outgrowth of social and companies who want to build their media and the transition to mobile devices. brands and turn key groups of people Cheap to produce but often lucrative, Zynga into paying customers. However, several has successfully capitalized on this trend. companies that appeared to be paving However, since the company’s December IPO, the way to the profitable new digital age its shares have dropped 70%; investors worry have faltered, shaking the confidence of about the long-term viability of its business investors and resurrecting the ghost of model, its dependence on Facebook, and its the dot-com bust of 2000. ability to keep making money from the people who play its digital games. Heralded with hype, Facebook, Zynga, and Groupon were all heavily promoted and And then there’s Groupon. Relying heavily on seemed poised to deliver. Facebook’s IPO on marketing to acquire new customers, Groupon May 18, 2012 was a milestone in Silicon Valley turns a profit by offering consumers deals and internet business history. On the morn- on local goods and services, and splitting ing of the 18th, the media clamor reached fever the discount proceeds with the participat- pitch: The Street predicted the stock could rise ing merchant. Though questions later arose to $60, $70, even $80 USD; trading broke stock about Groupon’s business model, namely the volume records, and the market saw the stock relationship between marketing spend and peak at $45 USD. That left the company with a its growth rate, Groupon CEO Andrew Mason higher market capitalization ($104 billion USD) initially assured investors of his business’ than all but a few of the largest US corpora- enormous profit potential. However, with an tions. For the moment a winner, CEO Mark inability to compete with larger discounters Zuckerberg’s personal stock was valued at like Amazon, the company has shifted from $19 billion USD. A few days later, Mark even hypergrowth to stagnation, which has left its married his girlfriend of nine years — and let stock at a fraction of its recent worth. the world know by updating his relationship status. It was a perfect Hollywood ending. Is this the beginning of the end for social media, FarmVille-esque games, and internet Unfortunately, cracks appeared and the stock daily deals? Haven’t we all heard and seen it kept sliding. The share price dropped over 30% before with once-hot internet companies like in the first 20 days. Regulators are now inves- Netscape, Napster, LimeWire, MySpace, or tigating the IPO, and more than 40 lawsuits Friendster? They all dominated the market at have been filed. A $100 billion USD company one time, then quickly got trumped. It could just prior to its debut, Facebook is now a $65 be that this is just the nature of the digital6 Best Global Brands 2012 / Playing to Win on the Digital Frontier
  • 6. era. The price of entry is low, the growth is skepticism over its business model, but also operates under a different paradigm and If the fundamental need to be connected toquick, and the fall to near-oblivion is swift owing to the fact that there are more stocks reacts to the daily ups and downs, which friends, get daily deals, and play silly gamesand hard. Or, could it be, at least in the case out there, which is hurting the stock price and only makes it harder for young companies online is still in place, there is hope for Face-of Facebook, that we have a true digital mega- spooking investors. to regain their luster once Wall Street’s book, Groupon, and Zynga, no matter whatcompany that will survive the growing pains, attitude toward them sours. things look like now. The pressure to pleasefind its balance, mature as a brand, and When it comes to Facebook, many are investors will always be there, but whetherbecome a leader of the digital frontier? wondering if its CEO has the chops and matu- Wall Street’s minute-by-minute changing of or not a company survives really depends on rity to grow the social media giant beyond position is out of step with Silicon Valley’s how well it pleases the people who use theirWhat all three of these companies have display ads and master the mobile segment. approach to moneymaking. Wall Street wants products or services. When we at Interbrandin common is no guarantee of long-term Lured by the size of Facebook’s user base, instant results and Silicon Valley takes a say brands have the power to change thegrowth and a business model that relies on which has allowed Facebook Inc. to build longer-term view. Technological innovation world, we mean that they have the power to“unproven” sources of revenue. Furthermore, a $3 billion-a-year USD advertising busi- takes time to develop and some attempts change people’s lives — making life easier,they all went public at too high a value, ness, ad spending has increased. However, fail — that’s part of the process. In Silicon more meaningful, more enjoyable, morepropped up by late-stage money — part of a because of that, companies are becoming Valley, where some of the brightest have convenient and productive. When a brandrecent Silicon Valley trend in which promi- more interested in measuring the results of had multiple start-ups and risen from fail- delivers that, consistently — people love themnent investors jump into young companies social media advertisements, which can be ure — it’s the price of success. On Wall Street, for it — and everyone, including investors,just before their IPOs. Unprepared for the hard to quantify. There are also concerns that failure is not an option. gets exactly what they hoped for.scrutiny and expectations of Wall Street, Facebook’s advertising methods are untestedissues with the “fundamentals” of all of these or unproven. For brands, social media is a In a recent Wall Street Journal article, Dan Rose, If anything, we need a reality check. Notcompanies came to light as soon as the first key part of marketing, a way to build brand Facebook’s Vice President of Partnerships, is everyone is running away from Facebook’searnings reports were released. Challenged awareness. But for investors, the question said to have put the company’s situation in stock. Investors are not overlooking traditionalby the transition to mobile, as well as the is: How does all of this translate directly perspective at a company meeting in early metrics. Silicon Valley is still rich with invest-fact that their main sources of revenue are into revenue? August. In an attempt to assuage employees ment opportunities. And some people aredependent on something that doesn’t feel who were worried about the stock price, he making a lot of money right now, even asdurable and concrete (“likes” on Facebook), Under similar pressure are Groupon and shared a story from his time at Amazon. The Facebook, Groupon, and some other recentit will be hard for such companies to secure Zynga. Both companies are losing customers. company stock had tanked and, as a father internet IPOs continue to struggle. Thethe confidence of investors. Zynga, for instance, expected to make just with two young children, Rose became espe- internet, today, is no longer a novelty. In fact, half of what it hoped this year; the company cially concerned about his ability to provide the number of people connected to the Web develops games that have little depth, and for his family. Facing a tough decision with is mind-boggling. So, despite the foreboding Clash of the titans: while people may become obsessed in the no obvious answer, he asked himself, “Do comparisons, 2012 is vastly different from the Silicon Valley vs. Wall Street short-term, the novelty soon wears off and we have the right people in place and is our dot-com era. There is no reason to lose faith.Clearly, Wall Street wants to see results — as they move on. Also, more gamers want to mission worthwhile?” He believed the answer We’re simply in transition.in swift growth in revenue. Silicon Valley play on the go, and Zynga’s mobile games was yes; rode the situation out, and is,venture capitalists, however, are focused on aren’t big hits as of yet. To make matters presumably, better off for it. He asked himselfthe long term. They take the ups and downs worse, the brand spends disproportionately the same question about Facebook and isof the stock market with a grain of salt and on R&D and SG&A (selling, general, and convinced the answer is yes. In the end, itdetermine the value of an investment based admin), all of which use up much of what is our collective confidence in a companyon what it might be worth in a few years, not profit the company does make, leaving little that keeps it going — which is why brandnext quarter. They expect volatility after a for shareholders. management, essentially the managementcompany goes public and believe, especially of perception, is so incredibly important.in the case of Facebook, that the downward One of the difficulties with investing in techslide in public valuations, while it may have companies is the sheer pace of their develop- Is the bubble about to burst?an effect on private valuations, will ultimately ment. Because they grow so quickly, the — Simon Smith is Interbrand’sbe manageable. start-ups’ initial burst generates excitement, It’s true, there are parallels between now and Digital Director of Europe, the which makes investors want to cash in. But the dot-com days. Back then, the stock prices Middle East, Africa & Latin AmericaHowever, with Facebook and Groupon hitting these businesses can also reach saturation of internet companies soared to dizzying Erica Velis is the Content Editor fornew lows, concerns about these companies in their markets extremely fast. It’s hard heights and, as a result, those companies Interbrand’s Global Marketing &in terms of durability and their ability to to figure out when the growth might begin moved faster and with insufficient caution. Communications teamgrow their business are intensifying — not to slow down, as it inevitably will. Silicon Market confidence in these companies wasleast of all because of the lock-up expiration Valley, with its risk-taking, start-up culture, high, as was the promise of future profits.on many of the shares that were not on the is more accustomed to the volatility — even Many companies were grossly overvalued.open market during the IPO. Concerns are expects it — and is, therefore, willing to ride Today, things are different — we have theeven greater for Groupon, not only due to things out. Wall Street, on the other hand, benefit of hindsight. 8 Best Global Brands 2012 / Playing to Win on the Digital Frontier
  • 7. Brand Humanity of Olympic Proportions By Lizzy StallardEvery four years the Olympic Games humanity — and did so with positive impact.provide not only the world’s greatest stage In fact, the notion of “brand humanity” wasfor athletes, but a tremendous oppor- the overriding theme at the Olympics, andtunity for brands to flex their muscles it’s a theme worth exploring. Global personalagainst their rivals too. When it comes to care giant, Proctor & Gamble, for instance,Olympic sponsorship deals, brands invest took brand humanity to new heightsan enormous amount of time, resources, with their “Thank You, Mom” campaign.and billions of dollars. In return in London Celebrating the role that mothers play inthis year, sponsoring brands gained access raising Olympians, the campaign taps intoto a global audience of 4.8 billion people. universal sentiment by honing in on the contribution that mothers make in raisingNow that the Games have ended, marketers successful, well-rounded children. Launchedare focused on the tangible benefits brands 100 days before the Opening Ceremony, P&G’sexperienced. What we should examine are biggest campaign in the 175-year history ofnot just immediate, measureable returns, the company was a huge success, with thebut also what we’ve gained and learned from supporting brand films garnering almost 15.5the Games in 2012 — and the implications for million views around the world. There’s notbrands going forward. a product brand in sight, yet its emotional power is unprecedented. The real success ofFirstly, it’s true to say that the idea of celebrat– this campaign, of course, is that, withouting the human spirit has permeated all aspects explicitly promoting itself, P&G has accom-of the Olympics. This touched London deeply plished what most marketing efforts fall farand radiated out to the rest of the world. The short of: inextricably linking the corporateperformance of sponsoring brands must be brand with universal human values likeseen in this unique context. A staggering 48% family cohesion, mutual love and support,of the population of London attended an and the dreams of greatness we all have forOlympic event, including many of us in Inter- ourselves and our loved ones. Proving thebrand’s London office — and the atmosphere power of this approach, Interbrand studiedwas indeed inspiring. The feeling of seeing consumer associations with this year’s spon-one’s nation win medals in real time is truly sors in the period leading up to the Games andincomparable. We were also moved by the found that P&G enjoyed the greatest increaseimmense generosity of spirit from the likes of in brand strength — specifically around valuesthe 70,000 “Games Makers,” the volunteers such as credibility and authenticity.who so generously gave their time at thegames. Amazingly, at the Closing Ceremony, In another example, the official oil and gasit was these ordinary people who received the sponsor, British Petroleum (BP), initiallygreatest cheers of support, perhaps more so kicked off its communications effort bythan the athletes themselves. The mood trans– focusing on its functional involvement in theformed in London, especially on the Under- Games, such as fueling the Olympic fleet.ground, where normally even the slightest eye Interestingly, BP promptly switched to ancontact is avoided. Yet, during the Olympics, emotional strategy just four weeks before thewe let down our guard. Strangers casually Opening Ceremony, when the brand launchedstruck up conversation around their plans for its “Here’s to the Home Team” campaign inthe day ahead — certainly a rarity until we the UK, spotlighting all those involved incaught the fever of 2012. Somehow, the super- the behind-the-scenes activity — from thehuman nature of the Olympic Games put us groundsmen and organizers to the athletesback in touch with our own humanity. and other sponsors. Through this campaign we once again witnessed a brand celebratingIt only seems fitting, given the atmo- the human engine that made the Gamessphere, that brands embraced this same a reality. Despite BP’s troubled past, our Best Global Brands 2012 / Brand Humanity of Olympic Proportions
  • 8. research showed that the brand’s efforts from Visa in its 25-year history as an Olympicaligned well with Olympic values when com– sponsor. The “Go World” campaign was Visa’spared with other players, such as Dow and GE. most social ever and put customers firmly at the center, allowing them to cheer on theIn a similar vein, McDonald’s celebrated athletes through social channels. This is apeople with their “We All Make the Games” subtle shift from the Beijing Olympic Gamescampaign. Personal stories captured via in 2008 where the brand demonstrated itsguerilla film crews throughout the Park and support for the athletes. However, in 2012,the wider city center focused on the emotion Visa celebrated the athletes along with itsat the heart of the Olympics. The multichan- cardholders. The more inclusive strategynel campaign allowed spectators to upload seems to have paid off — to date, 59 millionphotos of themselves getting into the spirit “cheers” have been posted through socialof the Games — McDonald’s received 20,000 channels, and the Go World YouTube channelsubmissions leading up to the Opening has received 47 million views. In hindsight,Ceremony. McDonald’s is also making heroes the level of engagement Visa achievedof ordinary people across other touchpoints, throughout the Olympics is impressive givenincluding in-restaurant. If you’ve walked past the significantly high negative sentimenta McDonald’s recently, you’ll have noticed surrounding the brand at the start of thetheir mosaic window displays, capturing Games. According to our Brand Playback™portrait photographs of the real people that tool, which assessed online sentiment,make the brand — from suppliers to employees the exclusivity rights around Visa use wereto customers. By capturing, replaying and the main contributor to the dissatisfactiondisplaying the moments and emotional many consumers felt.responses that make the Olympics so movingand special, McDonald’s celebrated human- Those of us from Interbrand’s London officeity at its best. However, while the brand did, of course, see some brands continue toultimately succeeded in eliciting a positive push spine-tingling messaging that focusedresponse, the appropriateness of McDonald’s on the might of the athletes in action — suchrole as an Olympic sponsor has been ques- as the adidas “Take the Stage” campaign,tioned. Our research revealed that 25% of those as well as Omega’s “Start Me Up.” However,surveyed felt that the brand was a poor fit with when we think about the brands that actuallyOlympic values. The mixed opinions indicate cut through in 2012, the most successful werethat many consumers want and expect to see those that resonated with audiences at a farbetter alignment between the values of spon- deeper level, celebrating the human spirit,soring brands and notions associated with the not exceptional human powers.Olympics, like health and fitness. At this year’s Games, those brands that forgedEDF Energy also played into the human side, a connection with their customers did so withbut in a slightly different way. The brand humanity, acknowledging the participationcapitalized on conversations that undoubt- and accomplishments of everyday people — notedly occurred worldwide as people fantasized just Olympians. Brands that successfullyabout what it takes to become an Olympic fostered an environment to create customerathlete: “What would it be like?”; “What conversation took home the gold.if?”; “How long would it take me?”. In EDF’splayful UK campaign, two eager technicians A true celebration of the human spirit, it’s“test” the equipment ahead of the Opening no surprise that some are calling the 2012Ceremony, by taking to the hurdles in the Olympics “The People’s Games.” The success-stadium, swimming a length of the Olympic ful brands couldnt have better tapped intopool, and trying out various other Olympic that ethos.events. We’d all love to have a go, and thisclever, yet simple, piece taps into the desire — Lizzy Stallard is the Directoror intrigue that all of us non-Olympians have of New Business & Marketing,felt at one time or another during the Games. Interbrand LondonThis year also saw the greatest investment 12
  • 9. The World’s Toughest Brands: Service brands are some of the hardest to build. Yet greatness is still possible. By Josh Feldmeth The Best Global Brands list rewards out- that join the firm, the greater the business comes. The more economic value you can growth. But leaders have strong personalities drive through your brand over time, the and independent minds. They don’t “do” higher the valuation. It’s “show me the homogeneity or naturally subvert their own money,” and the top 100 brands do just that. point of view in the interest of a shared vision. That’s the paradox: while brands But behind the list lies a secret. While all thrive on clarity and consistency, the thriving brands are judged by the same criteria, some business services company actively acquires brands have it harder than others. And assets (i.e., people) that, by their very nature, services brands may have it hardest of all. reject common thinking. These disadvantaged brands live in a category Great brands overcome the paradox and without tangible products. They have low subsequently scale the brand globally through advertising-to-revenue ratios. They often are a rigorous attention to culture. Accenture’s run by executives who lack marketing exper- culture was founded in St. Charles, Illinois, tise. The responsibility for building culture where every new college graduate hire spent and insuring consistent delivery is distributed the first weeks of their career learning to over sprawling organizations of hard-driving, code while being steeped in Accenture’s independent-minded talent. In the land of cultural DNA. IBM is another example. Its brand building, services businesses must much lauded “Smarter Planet” strategy thrive in rocky soil. has its roots in an internal engagement exercise: its 400,000 plus employees aligned So when a strong service brand emerges from to a single strategy that places them — “I’m an these hostile conditions, we take notice, IBMer” — in the center of the frame. because in their hard-wrought success lies the genetic code of the world’s toughest brands. Cognizant’s approach is to ground the culture in the founding energy of its leaders. “I joined One such success story is the business and Cognizant because of the passion of the lead- technology services company, Cognizant. ership,” explains Painter. “When I met with Since its founding in 1994, the company the management for the first time, I realized has been on a roll. With more than 140,000 it was a team that has been here since day employees and operations in 24 countries, it is one. They’ve experienced remarkable growth. one of the fastest-growing technology compa- Yet, the only thing they were talking about nies of all time. To help us unpack the story, was the next five years: how to grow, how to we interviewed Robert Painter, Cognizant VP expand the brand, how to serve clients better. of Corporate Marketing. His insight reveals They all had the same passion. ” how Cognizant is building a brand with deep roots, an unrelenting vision and a hard-edged The roots of every strong brand are anchored accountability — traits shared by the world’s in its culture. This is where Cognizant’s story toughest services brands. begins: with a passionate leadership team, galvanized around a shared vision for growth and committed to culture. It’s the same for Deep roots in authentic soil Accenture, IBM, and the other big services There is a conundrum in business services brands. It’s textbook stuff really, but for busi- branding: As the business grows, the brand ness services firms, particularly those that are weakens. We call it the Partner Paradox. The growing quickly globally, it’s a very rare and more partners (or senior talent in general) difficult thing.14 Best Global Brands 2012 / The World’s Toughest Brands
  • 10. in when the problems became too difficult Unrelentingly relevant for the client’s management teams. WeEveryone’s on the bus, but is it headed in the presented to the C-suite. We had the factsright direction? This is a particularly tricky and all the confidence in the world.question in the world of technology. How doesthe brand ensure that its enduring vision will It’s not surprising, then, that thoseconsistently win in a constantly evolving sec– responsible for building brands within high-tor? Cognizant’s answer is simple: be relevant. performing services organizations often shy away from accountability. They often don’tAgain, Painter: “Branding in technology have the data they want, and the managementservices is one of the most challenging to which they report are experts in businessmarketing jobs that you can imagine. It all strategy and financial engineering. It can becomes down to a simple term: relevance. daunting. But where others may see a debili-We don’t wake up and say, ‘How do we make tating need for accountability, the world’sthe brand better?’ We say, ‘Are we being as toughest services brands see liberation.relevant to our clients as possible?’” Painter says, “I sometimes feel my job is onThe most relevant brand will always win. the easier side. I’m blessed with managementIt will be chosen more frequently, given a and a board that is clear about the strategicpremium, and recommended to others. direction, and how we are going to be rele-Yet in the world of technology, what is vant for our clients. As a marketing executive,relevant today may not be relevant tomorrow. this is a real luxury.”Cognizant’s response is a brand propositionthat doesn’t anchor on something that is Painter may feel his job has relative advan-relevant — smartest consultants, best price, tages, but he certainly hasn’t taken themost flexible, most global, etc. Rather, they easy path.aim simply to be the most relevant. He’s documented a brand journey, a step-It’s a positioning masterstroke. It’s simple, by-step road map for building the brandmemorable, and animating for the organiza- between now and 2015. Each milestonetion. It’s guaranteed to drive revenue and can be measured quantitatively. And whileprofit. And it demands the best from the other brands have similar road maps, what’sculture: vigilance to client needs, flexibility, unique about the Cognizant brand team isopen-mindedness and restlessness for future their insistence on being held accountable bywork. This is strategy in action; a living brand the organization.positioning that exists in the client experience,not in the brand strategy presentation. Painter finds this accountability liberating. “These aren’t metrics we keep within corpo-SAP is the classic example of the case. Since rate marketing. We go to great lengths to2000, the brand has been anchored to the share our goals and performance againstpurpose of “turning businesses into best-run them with the management team and thebusinesses.” For a company selling software, board. Quantitative measures are the key. Itnothing could be more relevant. And they makes the conversation with the CFO easierhaven’t wavered, continuing to build around with quarterly return on investment. Wea core proposition year after year. In an have nowhere to hide, which I findindustry where “what’s hot” changes by the very reassuring.”hour, these brands are unrelentingly focusedon what will be relevant for clients, forever. — Josh Feldmeth is Chief Executive Officer, Interbrand New York The freedom of accountabilityI used to work for a large managementconsultancy, and I loved it. We were called 16
  • 11. Citizens All: The New Rules of Corporate Citizenship By Tom Zara and Peter CenedellaThe markets in which brands operate are through 2009, however, BP held down respect-increasingly transparent and fast-moving, able spots in the ranking as its brand strengthwith greater public visibility into corporate grew in large part on the increasing credibilitypractices and robust platforms for public of the company’s “Beyond Petroleum” claimsreaction. The relationship between compa- to green, which had helped them make deepnies and their target audiences is less and and highly visible inroads into Americanless one of broadcast and image control, markets. Its continuing, lengthy, and decisiveand increasingly about engagement and fall from brand grace should not merely beparticipation. “The wisdom of the crowd” seen as an inevitable by-product of the spill. Itis applied to everything from such brand stems much more from the ethos and valuesstaples as naming and logo design to of the BP culture, and its failure to performbusiness basics like product development. under the disaster’s scrutiny. The bottom lineClay Shirky aptly titled his influential 2008 for BP was that it was seen as dissembling,tome on the digital revolution Here Comes deflecting blame, and deceiving; it delayed andEverybody. Just four years later, it’s safe deferred taking responsibility, and it allowedto say that when it comes to the life of others to drive the story. BP’s response in thecorporate brands, everybody is, by now, media — including social media — stands asvery much here. a case study in how a PR disaster can quickly turn into a lasting brand disaster.And everybody isn’t just passively watching,of course. Consumers are expecting to see So what’s a brand to do in the interest of build-not just great products and services from the ing customer relationships and earning thebrands they choose; they also want to feel respect, trust — and love — of its audiences?that the brands they love are, in fact, worthyof that love. Brands are strong presences in Contrast BP with Nike (#26 in our report).our lives, deeply ingrained and abiding parts Once a poster child for sweatshops and aof our emotional, mental, and physical expe- target of international labor and human rightsrience and environment. So while the new activists, Nike has completely averted brandinteractive dynamic between brands and disaster and is enjoying its sixth consecu-consumers is inherently filled with perils for tive year on Corporate Responsibility magazine’sbrands, it is also replete with unprecedented annual ranking of the best corporate citizens,opportunities to fulfill people’s desires — and receiving high marks for its transparency, itseven create some in the process. environmental policies, and — most impor- tantly — its human rights performance. InThis is why Corporate Citizenship is at the the decade since Nike became, fairly or not,forefront of the life of brands as never before. a symbol of all that is wrong with globalHow brands negotiate this razor’s edge of risk outsourcing, one is more likely to see anand reward in the new crowd-driven, digital, activist wearing Nikes than bashing them.everything-at-once world will determine their Why the turnaround?strength, health, and wealth. Nike did two things: It simply owned its behavior, and then it got to work changing A tale of two brands it for the better.Case in point: British Petroleum (BP) is notamong Interbrand’s Best Global Brands 2012. This tale of two brands — one an annual fixtureNo surprise there; this marks BP’s third in our survey, the other still reeling from itsstraight year in brand rehab following the 2010 mishandling of a bad situation — is instruc-Deepwater Horizon oil rig disaster in the Gulf tive of the new role of corporate citizenship.of Mexico. The three prior years, from 2007 Today’s corporations face a stark choice in Best Global Brands 2012 / Citizens All
  • 12. these increasingly transparent times: develop high tech that blurs the traditional work/life and — crucial for countering the PR effect — From the C-suite down, Western Union evolvedand implement strategies to carve out a mean- balance. They therefore feel entitled to demand the authenticity of corporate claims of its traditional philanthropic efforts to aligningful presence as a corporate citizen in an that companies reflect their own values. To environmentalism. its foundation’s focus with the company’sengaged world, or run the risk of seeing your recruit the best of this generation, firms are core business. Not without risk to the sharebrand value erode and your business suffer. finding they must be responsive to Millennials’ A negative gap occurs when a brand fails to get price, the company’s CEO committed to theBillions of dollars of brand value are tied to desire to work for those companies that not credit in perception for its performance. These approach, culminating in an address on behalfvarious forms of corporate social responsi- only produce a better widget, but also do brands are not seeing the full return on their of immigrant concerns to the United Nationsbility — Coca-Cola, IBM and Microsoft alone something more positive for the world. Corporate Citizenship investment. That’s why General Assembly. No half measures there.routinely have close to USD $4 billion engaged it’s critical that companies find ways to tell With a footprint in 200 countries and whatin social programming among them. Metrically speaking, Corporate Citizenship, in the story of who they are, why they choose to Chavez D’Angelo calls “some understanding our view, can be ranked as a measurement of engage as they do, and how they are having an of marketing and an understanding of workingInterbrand has focused on advising our clients how a company interacts strategically with six impact in doing so. with various cultures, Western Union ”how to ensure that their citizenship dollars are critical constituents that depend upon it, and has aligned its business-side policies and itswell spent. And the short answer is: It’s about upon which it is dependent: its employees, its A positive gap occurs when a brand receives too foundation’s efforts.more than the spend. It’s about the credibility customers, its suppliers, the government(s) much credit for its performance. These brandsof a company’s culture of citizenship. responsible for both regulating and assisting run the risk of losing the valuable credibility The trends will only accelerate in the years it, the communities in which it does business, they have gained with consumers. It’s critical ahead: to interactivity, to consumer participa- and the larger environment it shares with the that the story a brand tells across platforms tion, to instantaneous reaction, and real-time The changing face of whole planet. about its social engagement is not a PR job or multi-platform dialogue between brands and corporate citizenship a brandwash. The story needs to show in every their audiences. Companies seeking a marketCorporate citizenship goes deeper and is In both our research and our client work, we facet of its narrative that engagement is rooted edge need to compete not only in the arena offundamentally different than older notions of have found that, first, consumer perception in the brand’s business, its sense of purpose as products and services, but also in the widercorporate social responsibility (CSR). CSR tradi- of a brand’s performance in any one of these an organization; rather than an add-on, world. Your social engagement could be a keytionally implied a separate body nominally six dimensions has a positive impact — a corporate citizenship efforts need to check determinant of where you rank in the comingwithin, but functioning apart from, the core halo effect, if you will — on the other five the box of authenticity. editions of the Best Global Brands.organization, such as a foundation, that took dimensions. This is good news: it givesaction in the social arena and may have borne companies license to laser-focus on an aspect This is a net positive, because it frees brands tolittle discernible relation to the company’s of social engagement that suits their brand pursue social engagement in ways that boostlarger sense of itself and its reasons for being in identity, and they can expect to see returns in the bottom line by aligning so clearly withbusiness. CSR too often smacked of doing the perception as a result. Second, we have seen their business mission and values.right thing out of duty, reducing risk of non- that the ROI on this approach is real, and tendscompliance, sundered from the bottom line, to trend higher long-term than the ROI on the One of the best current exemplars of thisseparate from the profit motive, unrelated to more traditional CSR approach. approach is Western Union and its “Ouran organization’s fundamental raison d’etre. World Our Family” program, which helpsIf doing good for the sake of a PR bump or to immigrants and their families worldwide. Closing the gapkeep the regulator at bay was the hallmark of Much of the company’s profits come from — Tom Zara is Executive DirectorCSR in recent times, then the new opportunity There’s a potential sinkhole in the market, its money transfer payments business, and of Strategy, Interbrand New York &for companies may be summed up in a simple waiting to suck value away from brands. It’s much of that business consists of immigrants Global Practice Leader ofequation: Doing good by doing what you the gap that can open up between a company’s in the US, many of them from Latin America, Corporate Citizenshipdo best yields greater value. Great corporate actual corporate citizenship performance on wiring money home to assist family members Peter Cenedella is Creative Copycitizens leverage their expertise in the market- the one hand, and the public perception of in need. As Luella Chavez D’Angelo, Western Director, Interbrand New Yorkplace to solve the world’s challenges while that citizenship, on the other. Union’s Senior Vice President for Globalgaining credibility and driving consumers to Corporate Responsibility, puts it: “We takechoose them over the competition. This year Interbrand, in partnership with this audience and consumer base very seri- Deloitte, measured the Best Global Green ously. We know we have a responsibility notCorporate citizenship, then, is the perception Brands — in part by assessing the gap — posi- only to watch after their cash as a leader inpeople have of a company’s positive contribu- tive or negative. To gauge performance we global payment services, but we’re movingtion to society, which is a key component of measured six elements of sustainability: that money for very important, impactfulthat company’s standing in the market and governance, operations, transportation and reasons: to get food on the table, to buy schoolits brand value. Such perception also has logistics, stakeholder engagement, supply supplies, to pay the bill that maybe is mucha tremendous impact on the HR function, chain, and products and services. For percep- harder for them than for you and I to pay.”hiring, and retention. Millennials, for exam- tion, we examined differentiation, presence,ple, have come of working age with a level of relevance, consistency, understanding, 20 Best Global Brands 2012 / Citizens All
  • 13. physical spaces and places, internal culture intelligence) could create a whole new world of The Future of Brand Building and communications. Companies like Apple marketing for us to explore, where my digital By Jez Frampton have already set customer expectations and it me would browse for me, bring things for me doesn’t matter if you are a bank, a business to see, explore social opportunities, and saveThe last five years have been marked by B2C toward B&B and B&C. This presents consultancy, a retailer, or a hotel chain, the me from ever having to go and buy socks again.economic crises, sending businesses running new possibilities for brand building via message is simple: Join up!for cover and searching for answers. The innovation, interactive experiences, and This may well still be a leap, but the cost/immediate response for many was to attack communication inside and out. Whilst the solution may seem simple, sadly, benefits are worth considering. Consumerthe “supply-side”: trim the supply chain, the barriers frequently come from within: silo trends point to greater reliance on the Web,seek internal efficiency, and attack costs. But The rise of social truly changes communi- mentalities and politics. The opportunity is to and we all have busy lives nowadays! Whythe brutal truth is that in recessionary times cations — more dynamic, and one-on-one deliver seamless experiences across the silos, not delegate a little (or a lot) to a digital self?competition becomes even more intense, and customer interactions are becoming possible combined with creative curation to ensure The technology is already in existence andthis strategy has diminishing returns. Five by combining “big data” with key develop- high quality and innovative expression. The the possibilities for marketing are endless.years in, the mantra is shifting towards the ments in artificial intelligence (AI). This role of digital experiences within this holisticdemand side of the equation. accelerates the dynamic nature of adver- world cannot be underestimated, and it seems Certainly all of the above trends and conjec- tising on the Web; conversations are now clear that the potential of digital to augment, tures point to incredible opportunities forDriven by ever more demanding customers, “managed” via a combination of AI and extend, and create whole new interactions will those building brands, through communica-pushed by emerging market competitors, and human inputs. continue to shape companies. tions or otherwise. They also pose significantinspired by companies like Apple, many busi- threats: can brand owners change their struc-nesses are re-discovering the power of cre- But do all these conversations mean the end The primary role for digital is to act as the tures and behavior towards faster, flexible,ativity and design, increasing investment in of image building? Recently, a high profile glue, both joining together the many frag- more holistic ways of working, reducing silosinnovation, and trying to better understand tech CMO asked me if we needed brand posi- mented elements of an experience chain, and increasing innovation? Can agencies andhow brands drive their business. In short, we tioning in a world where opinion shifted from and providing a basis for on-going commu- consultancies adapt their skills to personal-are entering a new age of demand; no longer minute to minute. My answer pointed to the nications and interactions with customers. ized, dynamic demand management, with aabout latent, passive consumption, but about importance of context. Every message from Despite the fact that digital should become heavy emphasis on digital, crowdsourcing,dynamic, connected, and active markets that a brand is viewed in the context of that brand: central to building relationships with and creative curation?drive competition and, ultimately, success. its market position, personality, values, customers, many businesses still treat it as a competitive stance, etc. In other words, it promotional or idea-generating tool, rather One thing is certain: within this complexGiven this, we believe brands will play an shapes the way we interpret the message, and than a means to enhance, augment or create world, the focus provided by a well-definedincreasingly important role. Over a decade in a world where our communication with new ways to interact. and executed brand will become ever moreago, The Financial Times classed brands as the brands is increasing exponentially, a clearly important as internal/external beacons ofultimate source of sustainable, competitive defined brand becomes even more important. direction, purpose, value-creations, and Digital permissionadvantage. This August, The Economist stated experience.that branded businesses enjoy margins double Seth Godin pioneered “Permission Market- Choice is changingthat of their counterparts, with greater levels ing, a shorthand for understanding the ”of loyalty. It’s clear that in this increasingly Recent papers published by McKinsey in the boundaries for brands in a world wherecompetitive world, well managed brands Harvard Business Review, and by Interbrand in customers are in control. We believe the nextdrive profits, so it’s logical to expect greater Fast Company, illustrate that the two key driv- step along this curve will be the notion ofdegrees of innovation, sophistication, ers of brand value, choice (role of brand) and digital permission: the granting of rights bycreativity, understanding, and, of course, loyalty (brand strength), are both significantly customers within the digital world.accountability to a forensic level of sensitivity. affected by the post-digital world. Purchase decisions are becoming more fluid, better Remarkably, Levi’s saw this coming a full informed, and dynamic. There is always some- 13 years ago. They created a fitting process The rise of the conversation one a “step ahead” of you, and easy access to involving a laser body-scan to create personal-One of the biggest challenges facing the other user experiences and long-term opinions ized jeans. The core idea, however gimmickymarketing world over the next 10 years will affects the assumptions of loyalty. Both of the execution, was groundbreaking: thatbe the increasing importance of the conversa- these trends provide significant opportunities one could have a truly digital self. My digitaltion. The Cluetrain Manifesto (Levine, Locke, for marketers, and brand experience holds the me: a perfect scan of my physical being fusedSearls & Weinberger, 2000) defined markets key to maximizing the opportunities. with attitudes, purchasing behavior, likes,as conversations between companies and dislikes, interests, even connected to my ever- — Jez Frampton is Interbrand’s Globalcustomers — a conversation that has since expanding social network. Chief Executive Officer Holistic — the new mantraexpanded between customers. We believe that great brands are “business These aggregated images (made possible byAt Interbrand, we see interactivity among strategy brought to life” delivering a seam- big data, superfast networks and artificialcustomers and business shifting B2B and less experience across product and service, 22 Best Global Brands 2012 / The Future of Brand Building
  • 14. 01Best Coca-ColaGlobal + 8% 77,839 $mBrands2012 Coca-Cola. A name that is more universally association in the minds of billions. Through its recognized than any other in the world. That’s consistent presence at the Games, Coke, a the power of Coca-Cola’s brand. Some will say it’s sponsor since 1928, continues to build its brand the flavor, but for millions, it’s the way Coca-Cola strength, reach, and impact every time the makes them feel. A brand that’s always evolving, Olympic torch is lit. Coke’s brand promise of fun, freedom, and refreshment resonates nearly everywhere. The Yet, despite its enormous size, Coca-Cola has company excels at keeping the brand fresh while proven to be nimble, flexible, and innovative, maintaining a powerful sense of nostalgia that adapting to local markets and new eras without unites generations of Coke lovers and reinforces diminishing its legacy. The brand continues to consumers’ deep connections to the brand. Its embrace digital, expanding its impressive online edgy campaigns continue to push boundaries, presence and engaging with consumers via its and Coca-Cola reinforced its values through “Coca-Cola Music” promotion. Also progressing celebratory promotions relating to its 125th-year in the area of corporate citizenship, Coca-Cola anniversary (“Sharing Happiness”) and the gained accolades for its advanced water recovery London Olympics (“Move to the beat”). system this year and received high ratings for employee diversity and sound workplace policies Though Coca-Cola sold millions of beverages on for LGBT associates. In a bold collaborative move the Olympic grounds in London this year, the with musical artist will.i.am, Coca-Cola has also brand’s real returns have come from global launched the EKOCYCLE brand, a stand-alone viewership. According to a survey released in July initiative that encourages recycling and sustain- by Research Now, Coca-Cola scored over 90% in ability among consumers through lifestyle brand awareness among respondents from the products made in part from recycled material. US, Canada, UK, France, Germany and Australia. Coca-Cola may be 126 years old, but with more One of the few marketing platforms that are than 50 million fans on Facebook, 1.8 billion Coke relevant to a global audience, the Olympics have products consumed daily and 3,500 beverages in allowed Coca-Cola to solidify a powerful its diverse portfolio — Coke’s still got it. 24 Best Global Brands 2012
  • 15. ADJUSTED FOR LOOKS02 03Apple $7.1b $29.0b IBM $7.9b $17.2b $7.4b $30.0b $30.+ 129% $3.7b + 8% $3.8b $4.0b $4.9b $5.1b76,568 $m 75,532 $m Audi BMW Ferrari Ford the US-based multinational technology IBM, Harley-Davidson Honda Hyundai made fromMercedes-Benz Kia natural materialsNissan that have set Porsche the Toyo company, has consistently ranked as one of the world record for PV solar-to-electric power top world’s most innovative, profitable, and sustain- conversion efficiency. Despite effective brand riser AUTOMOTIVE able brands — and it is still operating at full speed. performance in the past year, revenue in the IBM continues to reinvent itself to meet ever- second quarter of 2012 was weak, especially in changing marketplace needs, turning its attention business services. Consequently, investor concerns to emerging markets, big data analytics, and arose when profits goals were met via cost-cut-Few companies have captured our imagination, record highs across developed and emerging cloud computing. Smarter Planet, IBM’s ground- ting. However, it is expected that the brand willinspired such devotion, and revolutionized the markets and, not surprisingly, Apple enjoys this breaking business strategy, continues to drive new more than deliver in the third and fourth quarters,way we live quite like Apple. While we may year’s biggest increase in brand value — an product and service development, employee much as it did in the first quarter of 2012. Though $5.4b $4.0b $3.8b $11.2b $4.2b $4.0bassume it’s the products that define Apple, it’s astounding 129%. Increasingly associated with engagement, and corporate citizenship. It remains perceived as leading edge compared to its competi-really a certain kind of thinking, a certain set of the luxury sector, Apple now produces items that a textbook example of how to create, build, and tors, to stay ahead, IBM must make sure itvalues, and an unmistakable human touch that consumers feel they must own to fit in socially. A deliver a world-leading business-to-business continues to deliver big, thought-provokingpervades everything Apple does — which is why feat once pulled off by Nike, transforming the brand. This year, among other innovations, IBM innovations and maintains its rich legacy ofour connections to the brand transcend commerce. sneaker into a coveted object with a high price researchers developed Kia Facebook Mastercard low-cost photovoltaic cells Pampers Prada Ralph Lauren world-changing technological advancement. tag, Apple’s iPhone and iPad have achievedThe response to Steve Jobs’ death last year proved similar status. The Nike model — a golden age of NEW ADDITIONShow deeply millions connect with Apple on anemotional level. In a world where consumers are dominance, before relaxing into a complex market sector — may signal the future of Apple, if 04oftentimes overwhelmed with information, the it’s not careful. The market may move on if Googlerole a brand plays in people’s lives has become all Apple’s products cease being a differentiator of + 26%the more important to ensuring a business’ class, taste, or cool, but that doesn’t appear to be 69,726 $moverarching success. Nobody understood this happening any time soon. ADJUSTED FOR LOOKSbetter than Steve Jobs. He simplified the complex, While opinions are mixed on Google+ and Google’s competing mobile operating systems. Still, Googledemocratized technology that was once out of Despite the fact that he was terminally ill, Jobs other various innovations, overall, the search faces stiff competition from the likes of Applereach, and built a brand so powerful that it forever reportedly worked for more than a year on the giant has had a productive year. With minimal and Microsoft. Google+ has failed to muscle in $5b $11bchanged the way consumers think of brands. products he believed would safeguard the room for growth in search engine market share, on Facebook, and Google Buzz was closed. The company’s future. Not only was he overseeing Google continues to transform itself into a broader $4b $3b company also needs to build trust among consum- $4b $4bJobs recognized that a brand is so much more the development of the iCloud project and IT company. New products and services include ers following online privacy concerns, Oracle’sthan a logo. He instinctively knew that his masterminding updated versions of the iPod, the Project Glass augmented-reality head-mount- allegations of copyright infringement, and thecustomers needed to feel a certain way when they iPad, iPhone, and MacBooks, but Apple sources ed display, Google TV, as well as Google Drive, a EU’s antitrust lawsuits. Despite these challenges,picked up an Apple product, when they entered have divulged that he also ensured at least four cloud computing service, not to beMastercard Facebook Kia confused with Pampers Google’s revenue has soaredLauren Prada Ralph this year. Thean Apple store, or when they visited the Apple years worth of products were in the pipeline. its efforts to build a self-driving car. The company, promising Motorola Mobility acquisition and thewebsite. He knew that a strong brand should Additionally, the historic patent battle between known for making bold bets, acquired Motorola strength of new and improved products haveenvelop the entire business strategy and posi- Apple and Samsung has recently come to an end, NEW ADDITIONS Mobility, along with a slew of its patents, which fueled an impressive 26% increase in brand value,tively influence the entire employee base. He also with the verdict largely favoring Apple. A decision could help Android fight off companies with on top of a similar increase last year.recognized that a brand is what connects a that’s likely to ripple across the entire smart-business with the hearts and minds of consum- phone industry, the verdict has strengtheneders. Simply put, Steve Jobs understood that a Apple’s design identity and will presumably sendbrand is uniquely capable of humanizing a copycat competitors back to the drawing board to Top risers of 2012business — and that is precisely why so many of avoid a design infringement lawsuit. Apple Amazon Samsung Nissan Oracleus are Apple ambassadors today. 129% 46% 40% 30% 28% As Steve Jobs himself expressed when heSteve Jobs also understood the importance of a regrettably stepped down as Apple’s CEO, “Ismooth transfer of power, which is why Apple believe Apple’s brightest and most innovative 2012maintained its momentum throughout 2011. days are ahead of it.” And if the numbers, the 2011After launching the iPhone 4S and iPad 2, both legacy, the potency of the brand, and recent strokeswent on to crush even the most optimistic of fate are any indication — it may indeed be aexpectations. This year, earnings again reached long time before the bloom wears off this Apple. 26 Best Global Brands 2012 TOP RISERS OF 2012
  • 16. 05 07Microsoft McDonald’s– 2% + 13%57,853 $m 40,062 $mStill one of the world’s most recognized technol- relationship with its current consumers and McDonald’s, the leading global foodservice employees, building energy saving and wasteogy brands, Microsoft has found itself in a attract new ones in the process, Microsoft has retailer, stands out because of its exceptional reduction into staff incentives. Demonstrating itsbit of a holding pattern in 2012, reporting been making inroads into the healthcare market, brand management, significant global presence, commitment to brand development, McDonald’ssoft growth compared to Google and Apple. serving 22 million users on Live@edu, and leadership in sustainable practices and admirable is repositioning itself to appeal to a broaderIn particular, there has been weak computer pushing Xbox (the number one selling game approach to consumer engagement. McDonald’s audience, particularly by redesigning its outletsdemand as consumers switch to tablets and console in the US). The software giant is also has more than 33,500 restaurants in 119 countries and making them more modern, comfortable,try out Windows 8, the newest version of the focusing on business users, an area where its and the Golden Arches continue to expand, most and upscale. The McCafé experience is anothercompany’s flagship operating system (OS). competitors tend to be weak. Additionally, notably in Asia. The company deftly manages example of McDonald’s flexibility and its effortsAttempting to combat Apple’s lead in the tablet Microsoft worked hard to insulate itself against its franchise model, delivering a remarkably to appeal to a broader group of customers. Onmarket, Microsoft has promised a revolutionary the economic slowdown while building key areas consistent customer experience while still the digital front, McDonald’s “Make Your OwnOS that represents the convergence of technolo- of its business, and, in August, the brand allowing for locally relevant menu and service Burger” campaign in Germany and thegies along with a consistent, bold cross-platform launched a refresh of its corporate identity. variations (such as home delivery in India and Netherlands used crowdsourcing to generate newlook and feel. The technology world has had Microsoft also pushed into the hardware market China). The company is also working to respond recipes and promotions. The campaign createdunprecedented access to the development of with its own Surface tablets and into the to critics by increasing the number of healthy significant digital buzz and positioned the brandWindows 8. Its success would catapult Microsoft competitive fray — the global market for con- menu options and effectively communicating its as a digital innovator, helping to further buildforward and revitalize the entire PC ecosystem. verged software/hardware ecosystems. This move sustainability efforts to both customers and the brand’s strength.In an effort to establish more of a human will likely define the brand’s future. 0806 IntelGE + 12%+ 2% 39,385 $m43,682 $m For Intel, the last year has been filled with change, technology of the future. From putting anAs was the case before the dot com bubble, the been squarely on asserting its global leadership big bets, and the continued quest to remain at the anthropologist in charge of the Interactionpromise of emergent technologies can sometimes role. GE Works appears to be working. Growth in forefront of the ceaseless computing revolution. and Experience Research group, to bringing infeel a bit vague. As the market swooned over its energy infrastructure business, a healthy The rise of the smartphone, and the shift from executives from Apple and the BBC to guidesocial networks, the mobile media revolution, outlook in industrials, and a revitalized GE “the era of computers to the era of computing,” their entry into smartphones, tablets and homeand the all-knowing cloud, GE pulled the ulti- Capital demonstrate that the company can follow has made it hard for the brand to stretch from entertainment, Intel is shifting from a technol-mate trump card. In 2012, the brand launched GE up on its big bets in green technology (ecomagi- the processors for PCs and servers for which it is ogy first mindset to one of user first. The resultsWorks, an integrated communications platform. nation), healthcare (healthymagination), and known, into a broader set of technology offer- are already rolling in. After years of talking aboutWith gripping imagery and stories of meaningful the industrial internet. GE also served as a ings. While marketing efforts like the Creators entering the smartphone space, Intel finallyhuman outcomes, the campaign reasserted the sponsor of the 2012 London Olympics. And as Project, staged in conjunction with Vice, and a cracked the market, launching Intel-poweredbrand as the world’s maker of “real” things — some of the “can’t-miss” tech brands start to look host of smaller, targeted marketing programs smartphones around the world. Even in its PCfrom job creation in the manufacturing sector to a little light, GE is reminding the world how are making the brand more accessible to the and server markets, Intel is changing its tune,advanced healthcare technologies, GE’s focus has imagination really works. next generation of consumers, the drive towards delivering a broader experience beyond just greater relevance isn’t just a marketing one. performance. Time will tell whether Intel can Intel’s response has been to push consumer remain ahead of the tide of change in computing, understanding into everything that it does — but if early success and internal changes are any hiring new leaders, and promoting from within indication, Intel will be a brand to look to for to help bring a more user-centric attitude to years to come. how it goes about defining and building the 28 Best Global Brands 2012
  • 17. 09 11Samsung Mercedes-Benz+ 40% + 10%32,893 $m 30,097 $m There may be no other vehicle that exudes class than 125 years, Mercedes-Benz continues to and luxury quite like Mercedes-Benz. In the respond to a market that is quickly shifting minds of many people, it is still the brand that in favor of green technologies. Setting new says, “I’ve arrived.” Its long heritage of excellence efficiency benchmarks, Mercedes-Benz also in engineering, performance, styling, and safety boasts the most economical luxury class model was dramatically underscored in 2010 by the in the world: the E 300 BlueTEC HYBRID. resurrection of founder Gottlieb Daimler’s Mercedes-Benz’s commitment to innovation top riser guiding motto, “The Best or Nothing.” Laying the is also evident in the development of forward- groundwork for further growth, the striking looking technologies like its F125! concept car, campaign reached millions and gave sales a essentially a blueprint for the future of significant boost. Building on that success, this luxurious, emission-free vehicles. Additionally, year’s confident “A as in Attack” campaign is now Mercedes-Benz is increasingly leveraging itsSamsung is one of the biggest successes of 2012, Furthermore, Samsung’s sponsorship of the fanning the flames of desire for the new A-Class AMG brand to add driving-performance creden-marked by a meteoric 40% rise in brand value. London 2012 Olympic Games, and in particular lineup. Together, with the new B-Class and tials to the masterbrand. Constantly definingIn a market competing to create convergent the Torch Relay, has raised brand awareness, further model variants based on the same vehicle new milestones in terms of vehicle driveecosystems of internet-enabled household with 14 million people judged to have seen its architecture, the A-Class is expected to be an systems, safety, comfort, design, and sleekdevices, its smartphone sales have led the way to branded bus in the UK. Online buzz was also important driver in the Mercedes-Benz growth aesthetics, Mercedes-Benz continues to livea strong position over competitors. With 19.1% driven by prominent roles of the Galaxy SIII and strategy going forward. A pioneering brand that up to its promises of fascination, perfection,market share, Samsung became the global leader Note smartly integrated into the Opening has been shaping the future of mobility for more and responsibility.for smartphone shipments in 2011 ahead of Apple Ceremony. Looking to the year ahead, Samsungand Nokia. From this bumper position, the next continues to fulfill its corporate philosophy asyear holds promise of greater expansion. Samsunghas announced plans to sell its own Microsoft well as its vision — “Inspire the World, Create the Future” — through its aspirational branding 12Windows phone and a series of Windows 8 project and commitment to bringing “new and BMWcomputers, to sit alongside the new Galaxy SIII meaningful innovations” to the global market- + 18%and Note. This will help it further connect place. Despite setbacks around the recent patent 29,052 $mSamsung mobile devices with home devices, such trial with Apple, the company goes into 2013 withas TVs and washing machines, to create a a strong stance in the market and a determined Synonymous with class, performance and style, “Future Retail” program. The stores represent theconsistent user experience as the brand grows. vision to become one of the top five brands by 2020. BMW remains a leading premium brand in the first step toward a new generation of brand automobile industry and continues to appeal to a experiences. Never short on innovation, BMW is10 wide host of target groups around the world with also poised to introduce, the i series, which over 11 million Facebook fans, more than most promises to bring new excitement and attention other auto brands. The key success factors are to the electric vehicle market. Despite this stellarToyota+ 9% BMW’s handling characteristics, design, and performance, BMW, the best selling luxury car in30,280 $m innovative thrust of the brand. As the official the US in 2011, is locked in a battle with Mercedes- automotive partner of the London 2012 Summer Benz for the same honor in 2012. The muchThe resilience of the Toyota brand seems to have consumers. The brand has intensified its Olympics, BMW provided over 3,000 vehicles to anticipated addition of all wheel drive to theclosed the chapter on sudden acceleration and incentives push and reduced its fleet sales. This the games, successfully demonstrating its redesigned 3-series may prove to be the extra gearhelped the carmaker in reclaiming its global helps customers find a good deal while also mastery of global brand management and further that BMW needs to take the lead.leadership position. Toyota’s Prius customers holding the line on the resale value of their unifying its positioning worldwide. BMW iscontinue to deepen their connection to the Toyota vehicle. While relying on incentives will determined to set new benchmarks in theportfolio. At the same time, the Prius lineup is undermine the brand, overall spending remains dealership experience, opening brand stores increating an influx of new customers to the Toyota among the lowest in the industry. Europe London and Paris this year as part of BMW’sbrand. And thanks to the generous subsidies and continues to be a challenge for the brand, but,reduced taxes on cleaner cars, hybrids are a clear overall, management will be focused on evolvingdifferentiator for Toyota, so the Prius portfolio its messaging and communications whilecontinues to grow. In addition to showing solid reinventing a maturing brand with more stylishnumbers with repeat customers, Toyota is and better-looking vehicles.strengthening its appeal with younger 30 Best Global Brands 2012
  • 18. 13 15Disney HP– 5% – 8%27,438 $m 26,087 $mThe world of entertainment has been steadily franchise, which includes plans for an Avengers The turbulence HP experienced in late 2010 faces an expanding, nimble base of competitors.transforming as audience behaviors evolve, sequel, and is also planning to launch 3D versions extended through 2011, as the company made With HP acknowledging that the organization iscontent consumption habits change, and the old of popular hits like Finding Nemo as well as a slew another CEO change late in the year. The internal in the early stages of a turnaround, it will takegives way to the new. If one brand, however, has of films based on Marvel characters like Iron Man instability has resulted in the lack of a cohesive time, effort, and focus to resolve the brand issuesdemonstrated an ability to remain resilient over and Thor. Despite the slow economic recovery, business strategy or brand strategy, which that HP faces as it grapples with both internalthe years in the face of change, it is Disney. The Disney’s parks and resorts, which comprise a threatens both financial results and HP’s transformation and external improving customercompany that launched on the shoulders of one little over 10% of Disney’s value, saw a rise in reputation. HP has retreated from the mobile perceptions. HP retains an incredible breadth oflittle mouse has expanded to include five key attendance and guest spending. Overall, Disney devices and tablets that make up more and more products and services across the full technologygroups: Media Networks, Parks and Resorts, looks healthy financially and shows signs of of end-consumers’ technology purchases. Lenovo spectrum, and the recent “Make It Matter”Studio Entertainment, Consumer Products, and future success in the movie business, but the is predicted to hit the number one spot in the campaign reflects a more centralized approachInteractive Media. While each division has seen strength of the Disney brand itself seems to be PC market, layering further pressure on the towards brand expression, but HP faces numer-its own share of turmoil, with executive shifts gradually eroding. Since the company’s anima- consumer franchise. Meanwhile, HP’s shift ous challenges as it attempts to restore itsand box office disappointments in the past year, tion renaissance in the 1990s, the flow of original towards Enterprise-level services and software reputation for innovation and foster momentumDisney continues to march forward, albeit content has ceased in favor of franchises and has been perceived as slow with an inefficient within the rapidly changing technology arena.without a strong vision for its brand. Disney has areas of business that do not originate from acquisition strategy, while the company alsoreported solid earnings this year, driven by Disney’s own creative fount. To thrive in the longgrowth across all divisions, but it’s worth noting term, Disney must rediscover its core as a globalthat while the Disney Channel is still a top-ratedcable network in the US, recently surpassing entertainment powerhouse — and reclaim its standing as one of the world’s great innovators. 16Nickelodeon, it’s a small value contributor Few companies have a heritage so rich, meaning- Gilletteoverall. Disney’s performance in the film ful and worthwhile to millions of people of all + 4%business has improved since last year, but was ages and backgrounds around the world. That is 24,898 $mdriven largely by the success of a single film: not something to be squandered; it is somethingThe Avengers. Disney is working to leverage this to build upon. For Gillette, being “the best a man can get” isn’t International Olympic Committee, which will just a tagline, it’s a brand promise. Owned by link the Gillette brand with top male athletes. Procter & Gamble, Gillette grew into the leading Strengthening its leadership positioning this14 men’s shaving line because it, historically, has spent more than any other company in R&D to past year, P&G has been testing (in the US only) the “Guy Aisle”; a dedicated in-store areaCisco make its razors the best. Once again delivering designed to help men select their grooming+ 7% the performance and innovation consumers have products. Shipments of Gillette products have27,197 $m come to expect, Gillette and Braun’s new Gillette increased double-digit this year — no surprise Fusion ProGlide Styler, a three-in-one facial hair with 800 million people using Gillette productsCisco, the worldwide leader in networking, has strong and nimble international competitors, trimmer, shaver, and edger, won multiple each day. Gillette still reigns supreme in men’scontinued to refocus its brand on the B2B market like the Chinese powerhouse Huawei, will bring awards and helped increase market share in grooming, holding 70% of the global razors andafter pulling the reins in on a much-scrutinized new challenges to Cisco’s reputation as an emerging markets. In India, consumers prefer blades market. However, with new value-pricedextension into consumer audiences. Cisco’s brand innovator — especially outside the US. Cisco’s Gillette “seven to one” over traditional double- competitors arriving on the scene and retrohas always been able to remain relevant in the campaign, “The Human Network, has been a ” edge razors, a promising sign of the brand’s straight razors making a comeback, Gilletteswitching and router market, but that may not consistent presence, but the brand strategy will ability to extend its global presence. Building on needs to keep reminding consumers why it’sbe enough to maintain Cisco’s performance in need to adapt to the return of focus on the B2B its sponsorship of the London Olympics, P&G has worth paying more for the best.the future. The recent acquisition of NDS, a market. Cisco has continued to streamline announced a 10-year agreement with theleading provider of video software and content operations to reduce costs and help protectsecurity solutions, indicates that Cisco could be current margins, but multiple rounds of recentlooking to gain a more solid foothold in software- layoffs mean that morale must be maintainedbased applications. As the market continues to to develop the brand internally.trend towards mobility and cloud computing, 32 Best Global Brands 2012
  • 19. 17 20Louis Vuitton Amazon+ 2% + 46%23,577 $m 18,625 $mLouis Vuitton’s continued success can be its first foray into fragrance in decades with theattributed to consistently upholding its core announced launch of a signature scent byvalues and remaining loyal to its travel-centric legendary perfumer Jacques Cavallier-Belletrud.heritage. In addition to its partnership of the 2012 Over time, this progressive expansion could proveAmerica’s Cup, Louis Vuitton has also improved to be a successful direction for the luxury brand,its digital presence — from charting its history on or it could be to the detriment of its exclusivityFacebook to launching an app that enables and perceived authenticity. If Louis Vuittoncustomers to share travel experiences. The brand strikes the right balance between scale andremains committed to engaging new markets, desirability, however, there is no doubt that itsmaking it the top gift brand for the Chinese position as one of the world’s premier luxuryluxury consumer this year. The brand also made brands will remain strong. top riser18 topOracle riser+ 28% Amazon aims to be a place where consumers can and other content sales. This strategy appears to22,126 $m find anything they want to buy — online. It be working. As the second-biggest climber in delivers on this aim by regularly expanding its brand value this year, Amazon has much toOracle is one of our top risers with a 28% increase giving it a valuable foothold in mobile. Oracle has products and services and, in doing so, has celebrate. However, its unfriendly stance towardin brand value. The brand is committed to also placed significant emphasis on understand- remained a leader in customer service. In the past unions, hardball battles to evade sales taxes inbranching out beyond database solutions in order ing its clients’ unique needs and providing year, Amazon sustained the success of its Kindle certain parts of the US, and a highly publicizedto stay ahead of competitors. The company simplified solutions that reduce complexity and brand, stretching it beyond its e-reader origins story about the harsh treatment of workers in acontinues to make strategic acquisitions, like Sun foster innovation. This could help the market into a legitimate iPad alternative, introducing Pennsylvania warehouse last year have put a dentMicrosystems, to grow its capabilities and better understand Oracle’s total value beyond its both the Kindle Touch and Kindle Fire in 175 in the company’s image. To leverage the fullofferings, especially in cloud computing. Oracle’s products. However, with competitors Microsoft, countries. The Kindle Fire now enjoys the world’s potential of its brand, Amazon needs to managesuit against rival Google (over the use of Java code VMWare, and Google already well-positioned in second-largest tablet market share. By taking a the reputation of its business and work to improvein Android software) could also be seen as a play the cloud, Oracle will need to keep pace and hit on Kindle product prices, Amazon hopes to employee relations.to remain relevant. If Oracle prevails, it may be develop more emotional connections with its gain high-volume, ongoing revenue in e-bookable to influence the development of Android, consumers in order to see itself into the future. 2119 HondaNokia – 11%– 16% 17,280 $m21,009 $m For Honda, 2011 was a year to forget. A strong yen earthquake in Japan, and the Thai floods.As Nokia tries to reinvent itself, its brand value Windows Phone OS. The launch of the Lumia and severe disruptions to its supply chain Nevertheless, the brand’s strong track record ofcontinues to decline. This year, Nokia lost its brought Nokia to the world’s attention again, but hampered supplies, sales, and profits. Segments creating well-built cars and delivering good valueposition as the world’s largest mobile phone has yet to earn significant market share. In order that Honda has dominated continue to intensify will not suffice on word-of-mouth alone. Themanufacturer by volume and is losing the to regain its momentum and increase its brand with a growing field of competitors, while the good news is that the brand seems to be turningsmartphone battle. However, it is Samsung’s value, Nokia must reconnect with consumers. It sluggish performance in Europe and highly the corner. Honda is cranking up production andhandset business that impacts Nokia most. For must also stay relevant as consumer attention is critical reviews of the Civic took a toll on the a number of anticipated launches should help getconsumers, the role of the handset brand has increasingly drawn to software and less to brand. Honda took the feedback seriously and is the business back on the right track — shaking upchanged as their focus shifts towards the handsets. There is no doubt that the recent retooling the Civic. Although Honda lost market the more conservative label some consumers haveoperating system (OS) and the all-important apps launch of the new Windows Phone 8 handset will share, most of it can be attributed to the attached to the brand.they support. As the decline of Nokia’s Symbian be crucial to the brand’s future. production shortfalls resulting from the 2011OS accelerates, all hopes are placed on the 34 Best Global Brands 2012
  • 20. 22 24Pepsi American Express+ 14% + 8%16,594 $m 15,702 $m American Express has spent the past year educational tools for members, which keeps the launching a host of enhanced online services community active and engaged, and solidifies designed to improve customer experience, American Express’ role as not just a credit card simplify account management and provide company, but also an advisor, a friend, and the members with personalized offers from its beneficent presider over a vast tribe of small favorite merchants via social media platforms. businesses. Promoting events like the Big Break Customers could not be more satisfied, which is contest, which awards the lucky winners USD why American Express has ranked as the top US $25,000 to implement marketing makeovers; and credit card company in customer service by J.D. Small Business Saturday, which helps drive sales Power and Associates since 2007. Offering various to small businesses on one of the busiest holidayHolding strong at #22, Pepsi has really upped its the launch of Pepsi Next, as well as its environ- types of charge cards for small businesses to shopping weekends of the year, American Expressgame in the past year. The brand developed its mental impact — Pepsi was awarded the 2012 manage their expenses, and currently the largest shows, through so many offerings and gestures,first global positioning, “Capture the excitement Stockholm Industry Water Award for reducing its provider of corporate cards, American Express has that it is committed to supporting small busi-of now,” which casts Pepsi as a youthful, fun water consumption. Early indications suggest launched the Open Forum to provide additional nesses. Clearly a leader in digital and socialalternative to Coca-Cola and inspires Pepsi lovers these moves have been successful in bringing support for this key market segment. A virtual media marketing, American Express none theto live each moment to the fullest. Its first global back lapsed customers. Additionally, new space for small business owners to make less needs to work to ensure that its multiplecampaign, “Live for Now,” meshes well with executives have been brought in to challenge the connections and share insights, American online platforms, seeming a bit like islands untoongoing consumer promotions relating to music brand and ensure a smooth leadership succes- Express Open Works provides small businesses themselves, are more coordinated, connected,and its US partnership with the NFL. Alongside sion. They have a tough role, as soft drink with the knowledge they need to power their own and easy to access.this, Pepsi has revamped its entire digital demand continues to fall while commodity prices success. The site offer numerous resources andexperience, PepsiPulse, to focus on user-generat- increase, but by continuing to engage millions ofed content and direct connections with consum- people around the world through one of their keyers. Furthermore, the brand is addressing keyconsumer concerns, such as sugar content, via passion points — music — Pepsi just might win some new fans. 25 SAP + 8%23 15,641 $mH&M SAP, the market and technology leader in devices, apps, and mobile operating systems are+ 1% business management software, solutions, and in high demand. SAP anticipated this trend and16,571 $m services, continues to perform well due to its remains a relevant brand in this new market. embrace of cloud computing and mobile business “Run Like Never Before,” a campaign aimed at allWith an ever-increasing number of competitors pop-culture-following target customers. The apps. The German multinational software consumers, not just IT professionals, focuses ongaining traction globally and more big retailers brand also appeals to consumers by highlighting corporation has an unusual challenge in the speed with which SAP software can allow onestepping into low-cost fast fashion, H&M, the its dedication to using organic materials. H&M advertising — marketing complex business to operate a business better. The message of theSwedish multinational retail clothing company, was recently named the world’s largest user of products most often bought by IT managers and campaign echoes the needs of consumers aroundhas set its sights on finding new ways to maintain organic cotton and it aims to improve upon this corporate executives. In today’s economy, the world: the need to generate and manageindustry leadership. H&M has weathered the practice by switching to 100% sustainable cotton by competition is fierce. To gain a competitive edge, business on trains, baseball fields, in waitingeconomic downturn well. In June, it reported 2020. The brand did have its share of disappoint- many employees are bringing their work with rooms, taxis, or wherever life happens toforecast-beating quarterly profit growth. It has ments, failing to deliver on its promise of bringing them, wherever they go. As a result, mobile take them.also increased market share in its main markets an online shopping experience to US consumers.and expects to open 275 stores over the course of H&M’s digital presence, once a model for thethe year — including H&M’s first in South America industry with its dressing room feature, is nowin the first half of 2013. The secret recipe for H&M struggling to establish consistent online experi-continues to be partnering with big-name ences in all markets. The silver lining for H&M isdesigners, celebrities, and high-profile supermod- that although price discounts and tough economicels, and this strategy clearly resonates with the conditions have kept margins decreasing, theaspirations of its fashion savvy, brand remains strong. 36 Best Global Brands 2012
  • 21. 26 28Nike IKEA+ 4% + 8%15,126 $m 12,808 $mA global icon that transcends its category, Nike Converse, and Hurley brands. Nike is also using Providing well-designed furniture at affordable that seamlessly integrates consumer electronics.continually increases the power of its brand social media skillfully to generate awareness and prices, IKEA is the world’s largest furniture The brand is also leveraging the credibility earnedthrough innovation — its greatest strength. In buzz, while continuing to engage the public retailer. In the past year, IKEA kept close to from designing furniture for the urban dweller to2012, Nike delivered numerous game-changing through events and contests like The Chance, an customers, furthered green business practices, design and build entire urban neighborhoods,products and slyly leveraged the London Olympics athletic talent search. It is also expanding its and remained competitive in spite of rising doing its part to solve the affordable housingto its advantage. An “ambush marketer” rather breadth by incorporating technology platforms material costs. IKEA also doubled its Facebook shortage. Though IKEA was criticized this year forthan an official Olympic sponsor, the brand into all of the work it does, which has kept Nike and Twitter followers and created the Shared clear-cutting in old-growth forests, it has aattracted publicity, spotlighted new products and well ahead of competitors. Though Nike is Space website where customers can post pictures strong sustainability record overall. IKEA now hasmanaged, as always, to link world-renowned increasingly seen as a sustainability leader, the of rooms they’ve redecorated. IKEA is also 17 stores powered by solar panels in the US, and aathletes to its latest offerings. As part of its company still needs to improve its supply chain enhancing customers’ brand experiences by wind turbine project currently underway inlong-term growth strategy, Nike announced its and environmental record. In this regard, developing a take-back program for used Sweden will soon power all IKEA buildings andintention to divest its Cole Haan and Umbro initiatives such as “Zero Discharge of Hazardous furniture and innovating a new furniture line operations in its native country.businesses, which will allow it to focus its Chemicals” in manufacturing by 2020, are highlyresources on driving growth in the Nike, Jordan, relevant for the brand. 2927 ® Kellogg’s + 6%UPS 12,068 $m+ 4%13,088 $m After a tough year in 2010, Kellogg’s has a new category. As consumers become more educated— CEO at the helm and is ushering in change with and determined to avoid ingredients perceived asHolding steady at #27, UPS saw its brand value space, such as MyChoice in the US and alternate new product introductions like a Special K unhealthy—Kellogg’s will have to prioritizerise slightly this year. Slow growth in the US delivery locations in other global markets, will cookbook and its first gluten-free cereal to the US transparency and take steps to transition awayeconomy and an overall decrease in international position UPS to extend its solutions beyond the market. While Kellogg’s has long had a from genetically modified ingredients. This isvolume, however, have stymied what might have enterprise and into the growing consumer area. reputation for offering healthy, wholesome food, especially important for a brand whose heritageotherwise been a banner year for the renowned Building upon its legacy in sustainability, UPS revelations that Kellogg’s contributed funds to rests on the promise of healthy food.global logistics provider. Dedicated to further was one of only 10 US corporations to achieve an defeat Proposition 37—a GMO-labeling initiativeenabling worldwide commerce, UPS focused on A+ status for superior transparency in 2012. The in California—has put a dent in the big K. With astrategic acquisitions to bolster its capabilities company also made significant progress in strong brand identity, popular product lines, andand presence in both international markets and boosting its global fleet of 2,500 alternative fuel a new focus on overseas growth, Kellogg’s willthe business-to-consumer sector. In fact, a vehicles. Such efforts not only prove that UPS has continue to be a strong force in the FMCGdefining milestone for the brand was the successfully aligned sustainability with its coreannounced acquisition of Netherlands-based brand proposition of logistics, but have alsoTNT, an international express and mail deliveryservices company. The acquisition would be the earned it a spot (#43) in Interbrand’s 2012 Best Global Green Brands report. Additionally, 30largest in UPS’s 105-year history, and would brand-building improvements in the communi- Canonprovide an integrated network that expands its ties it serves have helped UPS land among the top + 3%presence in Europe, Asia, and Latin America. tier of companies creating positive social change. 12,029 $mAdditionally, new services in the consumer Canon faced multiple difficulties this past year: a This year, the company made its largest acquisi- stronger yen, Europe’s debt crisis, and slow tion in its history, purchasing Dutch print maker, economic recovery in the US. The brand has Oce, for USD $1 billion. While the integration is responded to these challenges by making product still underway, it should boost Canon’s product innovation and corporate citizenship top lineup beyond that of competitors like HP and priorities. In 2012, current chairman and CEO, Epson. Canon’s investment in R&D and strong Fujio Mitarai, returned to the role of President and commitment to technology and innovation has announced his vision for Canon to achieve the contributed to Canon’s slight rise in brand value. number one position in all of its core businesses. 38 Best Global Brands 2012
  • 22. 31 33Budweiser HSBC– 3% – 4%11,872 $m 11,378 $mBudweiser can be cautiously optimistic this year. its young male target demographic — such as the For HSBC, the multinational banking and first banks to receive initial approval to under-The redesign of its can reflected the brand’s European FA Cup, the 2014 World Cup (hosted in financial services organization, it’s been a year of write corporate debt in China, giving the brand acontinued repositioning as contemporary and Brazil), and the September 2012 Budweiser Made change underpinned by a shift in global brand significant head start in the world’s fastestglobal, moving away from its US- and heritage- in America US music festival. The brand is also a strategy and internal restructuring. In an effort growing market. After seeming to avoid the worstbased roots. In addition to the can redesign, the digital innovator, notably via the “Track Your to consolidate in underperforming markets, of the financial crises, HSBC is now caught up bybrand also branched out of its Middle America Bud” campaign that allows consumers to trace HSBC is concentrating its presence in growth the compliance irregularities affecting many ofcomfort zone and reached a more urban audience the origins of their specific beer by scanning its markets and businesses where wealth is being its competitors. It remains to be seen how HSBCwith the “Budweiser Made in America” concert QR code. Despite this success, the brand has a created. This accompanied the retirement of the will emerge from allegations of laundering fundsfestival featuring rapper Jay-Z. The strategy few weak points — brand extensions Bud Select “World’s Local Bank” strategy and the introduc- and the Libor investigations — both of which, at aappears to be paying off — 44% of sales are now and Bud Select 55 didn’t take flight, and failing to tion of a new tagline: “HSBC helps you unlock the minimum, could result in costly fines andoutside the US. But as Budweiser’s global market update bottle packaging in line with its new cans world’s potential.” In 2011, HSBC was one of the tightened controls.grows, it continues to lose ground at home. It is may confuse consumers. Considering thatnow the third brand in its category in the US, Budweiser’s authentically American personalitybehind Bud Light and Coors Light. Although therate of its US decline has reduced recently, can often drives its success in international markets, the brand must work hard to ensure that walking 34Budweiser become the world’s number one beer if away from those roots to achieve immediate Pampersit is not number one at home? Part of Budweiser’s global growth, doesn’t have the opposite effect Newstrategy includes sponsoring events that appeal to in the long-term. 11,296 $m Pampers is the top-selling diaper/nappy brand in generated a substantial percentage of market32 the US and P&G’s number one selling brand in the world. Using social media platforms to humanize share growth. Pampers also had a strong presence at the London Olympic Games andJ.P. Morgan the brand, Pampers’ Facebook page provides provided Limited Edition “USA” diapers and wipes– 8% updates on employees’ pregnancies and new-baby to US Olympic athletes. Its Olympic presence11,471 $m milestones. Its loyalty programs are carefully extended to YouTube, where Pampers featured engineered to master buying patterns of e-com- Canadian babies singing the national anthem inJ.P. Morgan reached a peak this year, being death for most brands. But J.P. Morgan is not merce shoppers. In fact, “Gift to Grow,” designed support of Team Canada. By successfullyranked the number one bank by assets in the US most brands. In fact, the bank reported a to reward parents for purchasing Pampers, was outpacing competitors, Pampers earns its spot inby the National Information Center — and then, second-quarter profit of $5 billion. While it so successful that it expanded to Japan and has this year’s Best Global Brands report.swiftly fell from grace. Just months after earning continues to be resilient, the banking giantthis honor, the bank’s tolerance for risk led to cannot afford to ignore its image. Creating awhat its CEO, Jamie Dimon, called “significantlosses” from a portfolio of credit investments. powerful brand is something J.P. Morgan has invested in for years. The bank recently hired 35Initially thought to total USD $2 billion, these Bank of America veteran, Claire Huang, as its Nescafélosses could reach over USD $7 billion. To make new CMO and, for the time being, such invest- – 8%matters worse, J.P. Morgan recently revealed that ments in managing its brand seem to be paying 11,089 $mits traders may have intentionally tried to hide off. J.P. Morgan continues to perform well withthe full extent of the historic losses. Federal existing consumers and shareholders. However, Nescafé’s focus on quality over convenience in expensive than traditionally made java, and thisregulators in the US are now looking into if the firm hopes to retain the confidence and 2011 proved to be too far of a leap for a brand most posed several challenges for the brand, one ofwhether J.P. Morgan’s employees intended to respect of potential clients and investors, it will closely associated with instant coffee. Nescafé which was weakness in overseas markets. Indefraud investors. The fallout from these events need to instill and project a more trustworthy expanded beyond its typical offerings to sell its Europe, the Nescafé brand is instantly recogniz-has severely undercut Mr. Dimon’s sterling culture that better guards its legendary returns. line of Dolce Gusto coffee machines and capsules. able, but in the US, the brand has significantlyreputation and credibility — and this would mean Single-cup coffee may only account for 8% of less equity. Attempting to elbow into an already coffee sales worldwide, but it is the fastest- crowded US market has proven to be a costly growing trend in the coffee industry. The cost venture, and it remains to be seen if Nescafé of the machine and the capsules that go into can become the category leader in the US that it make the average cup considerably more it is in Europe. 40 Best Global Brands 2012
  • 23. 36 38eBay Gucci+ 12% + 8%10,947 $m 9,446 $mWhen Meg Whitman stepped down as eBay’s Additionally, PayPal is grappling with challeng- It is unsurprising that Gucci should retain its truly iconic codes in fashion history. In 2011,CEO in 2008, the brand was showing definite ers like Google Checkout and Google Wallet. position as the most valuable global Italian Gucci enjoyed further revenue growth (+18%),signs of trouble. In the past four years, under the Frustrations from sellers should also be taken into brand. Not merely a question of comparative as well as an increase in profitability. The brandleadership of John Donahoe, eBay has experi- account. Mounting complaints about escalating magnitude and power, Gucci’s greatest success continues to see growth in 2012 with a 30% jumpenced a major turnaround. Unlike its peers fees, feedback policy issues, the proliferation of is its ability to embody, in a deliberate way, in online sales and a 15% increase in China —founded in the digital era, eBay has managed to scams, and preferential treatment toward larger the quintessence of Italian desirability. By signs that the luxury brand is in a good placemaintain its culture of innovation — finding new sellers are increasingly threatening eBay’s meticulously blending Frida Giannini’s inspired, despite continued economic uncertainty. Theways to remain relevant and responsive. The relationship with both sellers and consumers. fast-paced creative direction, constantly referenc- brand also launched its “Forever Now” icons ofmega e-retailer has effectively mastered mobile; eBay must take care in managing its reputation, ing the brand’s heritage, and devoting attention heritage campaign in March. The campaign,in fact, most of eBay’s growth has come from lest it become a grand purveyor of knock-offs and to its supply chain, its digital presence, and which pays tribute to the signature Gucci greenmobile retailing and PayPal, not its core e-com- junk merchandise. While recent policy changes several corporate citizenship programs, Gucci and red stripe and the iconic metal horsebitmerce business (which is also performing well). have increased relevance and profits, these issues continues to live up to its good name. Gucci’s 380 featured on the classic Gucci loafer, is anAs if that weren’t enough, over 90 million users could signal trouble down the road. The competi- directly operated stores worldwide remain truly excellent reminder of the brand’s storied placehave downloaded eBay’s mobile app and the tion is fierce for online retailers, but with indispensable stops for those shoppers looking for in luxury fashion’s history and future.brand is on track to double volume over both e-commerce representing only 10% of consumer authentic Italian style, quality — and some of themobile and PayPal this year. Unfortunately for spending, there is plenty of room for the king ofeBay, it’s not alone in its mobile e-commerce online auctions to grow. Considering its currentprowess. Amazon’s customers have also embracedits mobile app, and the scale of its business performance, those who place bids for eBay are likely to end up ahead. 39means it can wait out the competition. Volkswagen + 18% 9,252 $m37Zara+ 18%9,488 $mZara, the Spanish fast-fashion retailer, experi- flagship store on New York’s Fifth Avenue toenced a sharp increase in brand value this year much fanfare. The US was not Zara’s only focus(18%). Zara’s long-admired business model has this past year. The brand announced plans tokept customers happy and the company in top open a fifth store on London’s Oxford Street and Volkswagen (VW) is the greenest brand in the broader base of customers. VW has also developedform, despite harsh global economic conditions. yet another store in Madrid — on the city’s German domestic market and ranked fourth in a new compact car for customers in metropolitanZara continues to leverage its enviable logistics high-end calle Serrano. Zara has also expanded Interbrand’s Best Global Green Brands 2012 report, areas, the up!, which was named “World Car ofsystem, which enables store managers to its presence in China, where it recently launched up from #6 a year ago. VW’s “Modular Transverse the Year 2012” at the New York International Autocommunicate directly with designers — providing an online shop. And Zara has made forays into Matrix” (MQB) is the company’s response to Show. VW was also a big winner at the Cannesthem with valuable information on what is and countries such as Taiwan, South Africa, and Peru the huge challenges that face the automobile Lions this year, winning 23 awards and snaggingisn’t selling. In turn, Zara’s customers are able to as well. Strategic global expansion, a commitment industry worldwide. Its introduction will a best viral video prize for their “Don’t make upfind (and purchase) clothes that keep them to sustainability efforts, and keeping consumer significantly reduce vehicle weights, enable all and drive” spot. Popularized by the legendarylooking fashion forward. In September 2011, Zara demands front and center, Zara continues to be a alternative engine types, from natural gas to print and TV ads that made the Beetle a culturallaunched online sales in the US and, in March leading global retail brand. hybrid versions and even purely electrical icon, VW continues to reboot its brand with2012, opened an expansive and highly sustainable systems, and will offer more premium innova- engaging campaigns. tions in safety and infotainment available to a 42 Best Global Brands 2012
  • 24. 40 43Sony Accenture– 8% + 9%9,111 $m 8,745 $mSony remains a leader when it comes to innova- a hybrid laptop VAIO PC, a new NEX camera Accenture’s business has boomed over the past high-performing clients, and for those organiza-tion and creativity, but even with a strong with built in Wi-Fi and enhanced NFC enabled year — with new bookings, increased marketing tions that long to be high-performing clients.portfolio of sub-brands such as Bravia, Vaio, headphones and audio devices. Additionally, spend, above-average growth in Asia-Pacific, and Accenture continues to differentiate itselfCybershot, Playstation, and Xperia, Sony Sony has unveiled its first 4K TV, an 84" showstop- a new marketing-services arm. In 2012, through strategic acquisitions as well. In April,continues to see challenges. The silo structure of per promising a totally immersive experience. Accenture’s advertising moved beyond the animal Accenture completed its acquisition of Neothe brand inhibits its ability to build brand value Building on the impact of this “product offen- kingdom. In an effort to differentiate itself in the Metrics Analytics S.L., a Madrid-based consultingacross platforms and products. Disruptions sive,” Sony’s “Make.Believe” message is reignit- crowded consulting/business services category, firm specializing in optimization and predictivefollowing last year’s disasters in Japan, financial ing the brand and inspiring people to rediscover Accenture launched a bold new campaign analytics. In August, Accenture agreed to acquiredistress globally, and a loss of leadership in key this once-dominant leader. With a unified brand centered on its “High Performance. Delivered.” Octagon Research Solutions, Inc., a softwarecategories have put pressure on the brand. message, plans to increase its marketing spend tagline — and so far, it has made this promise a company that helps pharmaceutical companiesDetermined to revitalize the business, Sony has by 30%, and a “laser-focused” new CEO, Sony reality. By investing in a Social Media Innovation submit clinical data to regulators. Such strategicunveiled an array of new products: three new looks like it’s serious about a comeback. Center in Silicon Valley, and by continuing to acquisitions make the promise of high perfor-Xperia smartphones, a new splash-proof Tablet, publish large amounts of insights, Accenture has mance all the more real and further differentiate enhanced its position as a thought leader. In Accenture as the partner prepared to deliver. doing so, the brand has ensured its relevance for41Philips+ 5% 449,066 $m Thomson Reuters – 11%With the arrival of CEO Frans van Houten in 2011, kicked off a comprehensive performance 8,444 $mPhilips began to sharpen the focus of its business. improvement program internally calledAfter parting ways with its struggling television “Accelerate!” which aims to create an agile and Thomson Reuters continues to successfully these changes (and in response to negative press)arm last year, Philips saw a sales boost in entrepreneurial Philips — a company which is align its brand and business strategies, but, the has influenced customer confidence. Thomsonhealthcare and lighting, especially in emerging more customer-centric and focused on local brand has faced significant hurdles over the past Reuters, however, remains invested in buildingmarkets. Philips plans to fully concentrate its market needs. By continuing to deliver solutions year. Under volatile market conditions, rival a well-organized and aligned portfolio acrossbusiness structure around its core brand idea: that are technologically advanced and easy to use, Bloomberg thrived while Thomson Reuters lost diverse business areas. What’s more, offerings inimproving people’s lives through meaningful and by leveraging its well-established consumer market share. Specifically, Thomson Reuters some of the brand’s key businesses, such as Legalinnovation. Emphasizing its commitment to this associations, Philips is all but assured to achieve Eikon, the flagship product of the Financial & and Tax & Accounting, lead their respectivenotion, Philips launched a successful global its vision of improving the lives of 3 billion people Risk business, struggled to gain traction with markets. Looking ahead, Thomson Reuters hasbrand advocacy campaign in June 2011. It also a year by 2025. customers. Its performance contributed to a an opportunity to assert influence and leadership revamped organizational structure, including the through its ongoing commitment to corporate installation of CEO James C. Smith. Although the citizenship and its “customer first” initiative —42 new management team has already refocused the company on its core competencies, the brand’s both within its Financial & Risk business and across the organization.L’Oréal lack of communication to the market regarding+ 1%8,821 $mL’Oréal continues to lead in the beauty and of other marketing activities. In the wake of thecosmetics industry through its dedication to economic collapse, L’Oréal has worked to offerresearch, innovation, and quality and its diverse beauty innovations at affordable prices — and thisconsumer base. The iconic brand successfully strategy has helped to attract new customers.blends scientific research, cultural insight, and L’Oréal continues to take advantage of itsbeauty ideals to develop inventive and desirable increasing growth in developing markets, whichproducts, no matter the target demographic or gives L’Oréal the chance to increase its consumergeography. In 2011, L’Oréal massively increased its base, revenues, and product lines, and to getdigital marketing budget, but not at the expense closer to its mission of universalizing beauty. 44 Best Global Brands 2012
  • 25. 45 47Ford Colgate+ 6% + 7%7,958 $m 7,643 $mThe Blue Oval is back. When its credit ratings engaging with customers through social media Colgate, a leading producer of oral hygiene committed to improving the world as it is towere upgraded in May of this year, Ford, the platforms. Ford responds to an average of 2,000 products, enjoyed another banner year of steadily improving smiles, Colgate also ranks high instoried multinational automaker, reclaimed customers weekly via social media and has even high earnings by investing heavily in emerging corporate citizenship. The brand has longcollateral used to qualify for loans back in 2006. begun to fly bloggers and online influencers to markets while keeping costs at a minimum. supported charitable endeavors such as theAmong the assets recovered: Ford’s revered Blue key events. Despite its laudable progress, Ford Making major inroads into India, Colgate Colgate Women’s Games and the StarlightOval logo. Its return instilled emotional pride still faces certain challenges — challenges that currently occupies half the Indian oral care Children Foundation. This year, the Humanthroughout Ford’s global workforce and proved illustrate how difficult it is for a brand to regain market and, with only a few major competitors, Rights Campaign gave Colgate an “A” forthat the company was delivering both on “One its footing and stay in top form. Ford is working has more room to build its market share. supporting diversity in the workplace. AFord” (its vision for a unified global brand) and to alleviate consumer frustrations surrounding Realizing the importance of innovation, Colgate trustworthy reputation and a strong portfolio“Go Further” (its global brand promise). Ford MyTouch, its market-leading in-car communica- continues to introduce new products, like the of products have kept Colgate a householdFusion is yet another example of how the “One tions and entertainment system. While building Colgate Sensitive Pro-Relief toothpaste to treat name in North America and are strengths asFord” vision and “Go Further” promise are being on its three years of market share growth in the tooth sensitivity and Optic White regimen, a the brand consolidates its market leadershiprealized. This high-tech model is the result of a US, Ford continues to play catch-up in the world’s fast, convenient whitening system that features in other parts of the world.global team coming together to develop a biggest auto market — China. And just like so Colgate’s best-selling toothpaste, Optic White. Asmid-size vehicle with ground-breaking design, many other global brands, Ford is working hardsolid fuel economy, and technologies that make to improve performance in Europe. Ford is doingcustomers better drivers. In addition to itsrenewed focus on design and quality, Ford its part — the Blue Oval is back and the turna- round is complete. Now, if only global economic 48remains an industry leader when it comes to conditions would cooperate. Goldman Sachs – 16% 7,599 $m46 Over the past year, Goldman Sachs has experi- In response to the controversy that has unfoldedHeinz enced negative sentiment from both inside the since 2008, Goldman Sachs continues to push+ 1% financial community (in the form of analyst its corporate citizenship efforts closer to the7,722 $m downgrades), and outside (Occupy Wall Street), forefront and emphasizes a renewed commit- and even within the company (Greg Smith’s “Why ment to transparency, risk management,Despite limited growth this year, mostly due to modified hybrid tomato seed that produces a I Am Leaving Goldman Sachs” letter in The New accountability, and rigorous measurement ofrestrained consumer spending, Heinz jumps up a higher yield, lowers the company’s carbon York Times). Smith’s scathing missive struck such results. Though the firm appears to be committedfew spots to #46, as its brand strength and role of footprint, and produces tomatoes that are more a chord that Goldman Sachs experienced a USD to becoming a better institution, questionsbrand both improved steadily in 2012. Having disease-resistant and require less pesticide. In $2.15 billion loss in valuation in a single day. regarding the authenticity of its efforts continuebuilt a globally recognized brand that is a model response to consumer demand for healthier Furthermore, the firm’s cost-cutting maneuvers, to dampen their effect. Despite the negative pressof consistency, Heinz further empowers its brand options, Heinz introduced a certified organic in the form of layoffs, and accusations regarding it has received, Goldman Sachs continues to meetby responding to changing consumer preferences ketchup, a low-sugar ketchup, and a line of betting against clients, seem to be at odds with its its customer needs. Now, the firm must manageand taking an innovative approach to business. A gluten-free products. Rated number one in core client service values of “integrity, fair its reputation carefully to avoid further damagetop-performing company that takes corporate Customer Satisfaction (ACSI) for addressing dealing, transparency, professional excellence, and restore its former luster.citizenship seriously, Heinz is now using consumers’ changing needs and skillfully using confidentiality, clarity, and respect.”Coca-Cola’s PlantBottle technology for their new social media to engage the public, Heinzketchup bottle, making good on their ongoing continues to build upon its strong brand andcommitment to sustainable packaging. Also prove that it is a company we can trust withcommitted to sustainable agriculture, their our food.HeinzSeed program created a non-genetically 46 Best Global Brands 2012
  • 26. 49 51Dell Siemens– 9% – 5%7,591 $m 7,534 $mShifting over 80% of its revenue towards IT more,” has increased awareness, choice, and Siemens, a leading producer of electronics and the way for Siemens to become a leading producerservices and solutions, Dell has made major overall brand health. A leader in social media, electrical engineering, continues to be regarded as of electric car components. The past year, however,strides over the past few years. Traditionally a Dell’s state-of-the-art Social Media Listening one of the world’s most innovative companies. In has not been without challenges. Siemensdirect-to-consumer brand, Dell’s focus on Command Center helps the brand utilize social 2012, Siemens launched a new division to manage attributes low profits and declining brand valuedelivering effective and accessible technology for media in an optimized way to enhance consumer the company’s global business with cities and to customers’ worries over the European debtSMB and enterprise customers around the world brand experience and tap into potential new infrastructures. Siemens also continued to crisis, pricing pressures in several business units,has evolved the organization’s operational revenue streams. On the corporate citizenship develop alternatives to nuclear energy, including and a slowdown in China. A challengingstructure, positioning it for significant growth. front, the new Digital Operations Center that a combined-cycle gas power plant. Additionally, economy, however, has caused Siemens to focusThough business strategy and key target Dell developed for the American Red Cross is the Siemens’ R&D department produced the first on developing new technologies — and meetingaudiences have changed slightly, Dell’s market- first social media-based operation devoted to hybrid electric plane, and an electric car — paving tomorrow’s energy needs could pay off big.ing and communications remain authentic to humanitarian relief and will help expand theits customer-centric model. Giving Dell a boost, Red Cross’s ability to engage with the publica new advertising campaign, “The power to do during emergencies. 52 Danone50 + 8% 7,498 $mCiti– 12% The first half of 2012 saw solid sales growth of Committed to constantly optimizing the7,570 $m 5.9% for Danone, the multinational French food nutritional quality of its products and providing products corporation. Already the world’s largest its consumers with clear and transparentReaching its 200th year, Citi has showed renewed strategically placed in places like Shanghai’s yogurt maker and one of the largest producers of nutritional information, Danone is also doing itscommitment to its brand. The anniversary People’s Square and Singapore’s Orchard Road, bottled water, Danone increased and updated its part to combat childhood obesity and supports acelebrations began when Citi reconnected to its where they are seen by millions of consumers retail presence and leveraged its strong brand number of initiatives that encourage people toheritage through a global campaign highlighting each day. Citi is banking on consumers’ desire for equity to enter new markets with an already- adopt a balanced diet and become more physicallythe innovation it has brought to the banking real world brand experiences that confirm the recognized name. The result? For the first time in active. True to its stated mission, Danone reliesindustry over the years. Its first-ever Olympic choices they make. However, with the TARP the company’s history, emerging markets on the work of 1,200 biologists, nutritionists, andsponsorship has engaged audiences on tradition- blunder and 2008 bonuses scandal still in recent accounted for over half of its entire business. This food safety experts to “deliver health throughal channels as well as online. In an effort to memory, and recent indicators that Citi’s culture expansion drove growth in fresh dairy products, nutrition to as many people as possible.”improve customers’ brand experience, Citi has has not changed — like failing the Fed’s stress test while water enjoyed a jump of 15.7% in sales.delivered a more integrated online presence for trustworthiness and safety of investment, asacross platforms, including new.citi.com, well as new controversy over executive compensa-improved online banking functions, as well asnew products and popular mobile apps. In Asia, tion packages — it seems there is a disconnect between Citi’s behavior and its image-repair 53Citi is reinventing the retail banking environ- efforts. To regain its reputation for leadership and Hyundaiment with Citi Media Walls. These large, responsible finance, Citi must bring its financial + 24%multi-screen LCD systems display financial data performance and image into alignment and 7,473 $mand news in real time along with information on begin prioritizing image-building behaviorsCitibank products and services. They are over business as usual. Hyundai has become an emerging concern, if not them to make more of an emotional purchase. the envy, of its global rivals. Thriving during a Although quality perceptions are still not on par severe industry downturn, Hyundai’s momen- with actual performance, residual values are tum continues to barrel forward, benefitting increasing, which will help boost Hyundai’s from bold bets that capitalized on every market leasing operations in the longer term. While the opportunity. The brand is replicating a similar brand has a long way to go, it is building a story in Europe. But Hyundai is also shifting stronger presence in the luxury sedan market from a pure value play to a design-focused brand with its Genesis and Equus models. Hyundai is with a premium halo. The desired result would be focused on executing more consistently on a getting consumers to talk more favorably about global level and this should help take its brand Hyundai for reasons other than value, prompting value and profits to even greater heights. 48 Best Global Brands 2012
  • 27. 54 57Morgan Stanley Nestlé+ 9% + 5%7,218 $m 6,916 $mMorgan Stanley holds tight at #54 for a second the banking and investment industry contend This year, Nestlé focused on expanding the global Such moves are likely to positively impact theyear in a row. Market share and profits alike were that the American financial services giant presence of its portfolio of brands both organically brand’s public image. For a company known forup this year, but what people will remember mismanaged the IPO, setting the price of stock and through partnerships. Examples include its coffee and chocolate products, migrating intoabout Morgan Stanley in 2012 is their handling of too high and selling too many shares to the branding ready-to-drink tea in Taiwan and Hong critical care nutrition will be challenging. NestléFacebook’s IPO. Worldwide expectations built for public. A wave of lawsuits has followed, as well Kong through the expansion of Nestea and a will have to retain the positive equities of itsover a year, which proved difficult to manage as increased scrutiny at the IPO process and partnership with Chinese confectionary company, masterbrand in service of the health and nutritionamid rampant speculation. Stock was primed to adherence to regulations. The controversy will Hsu Fu Chi. In an effort to further expand its platform. The migration into this new healthsoar at USD $40 – 50 a share as the date neared. likely impact the brand’s strength in the presence, Nestlé is diversifying away from food arena will require a delicate balance of leveragingAfter it debuted at USD $38 a share, Morgan marketplace, and its dominance as lead banker manufacturing by growing its portfolio in Nestlé’s heritage of quality with the addedStanley had to intervene and help stabilize the of tech IPOs in particular, but it will be difficult nutritional healthcare. The acquisition of Pfizer commitment to serious nutrition. As it continuesprice by close of market that day. Competitors in to measure for quite some time. Nutrition, as well as Accera, a biotechnology to diversify, Nestlé could consider better integrat- company, have bolstered Nestlé’s portfolio of ing its fragmented portfolio of products and nutritional products with medical benefits. aligning them with the Nestlé masterbrand.55 Further signaling its intention to expand into the health and wellness market, Nestlé is exploring Doing this would enable the brand to achieve greater and more efficient expansion inAudi how nutritional solutions can actually improve emerging markets.+ 17% health through its Nestlé Health Science division.7,196 $mAudi is busy revolutionizing the future ofretailing. Audi City combines digital product powered Audi models. Emphasizing several themes for the future, Audi is focusing activities 58presentations and personal contact with dealers. around its core brand mantra, “Vorsprung durch AXAPresenting Audi’s model range digitally instead Technik” (“advancement through technology”), + 1%of physically allows the brand to showcase itself and gearing up for breakthroughs in lightweight 6,748 $min key metropolitan areas where space is limited. engineering, networked mobility and electricBoosting proximity to the customer and trans- vehicles. With record sales in the US and a 10% 2012 was another year of solid earnings for In America, AXA’s global theme “Redefiningforming the role of the classic auto dealer, the increase in India, Audi is proving that design the French global insurance conglomerate. Standards” has replaced the iconic AXA GorillaAudi City concept repositions the dealer as a strength, technological innovation, imaginative The company marched forward with its goals that has been reminding audiences that it iscustomer relationship manager in a dynamic approaches to retail, and rich brand experiences in corporate citizenship by joining 26 other never too early to think about retirement. In hisenvironment. Audi City will also play a key role in are a winning approach for sustainable, profit- insurance companies in signing the Principles last campaign, the AXA Gorilla had saved enoughmarketing new mobility services and electrically able growth in the automotive industry. for Sustainable Insurance. This move solidifies money to retire and was accepting viewer AXA’s broader corporate responsibility strategy, suggestions as to where he should live out his reinforcing the brand’s image as a trustworthy golden years. The retirement of AXA Equitable’s56 and sustainable brand. On Facebook, AXA is a success, with approximately half a million mascot and the adoption of its global positioning will bring the US operation’s image and messag-Nintendo friends after just one year. The brand was further ing into closer alignment with the global AXA– 8% enhanced by the reorganization of its advertising brand. A cohesive global identity and deeper7,082 $m strategy, which aimed to create more consistency commitment to sustainability goals puts AXA in and best practice sharing across all of its markets. an excellent position to “redefine standards.”Nintendo has had another difficult year, has advanced its digital interactions by promot-declining 8% in brand value. The original ing download sales of game software and byinnovator in home entertainment, Nintendo adding a social media component to consoles, butinarguably changed the world of gaming, it has failed to effectively respond to the smart-broadening its appeal across all generations and phone-based online gaming market. But all is notmarkets. While the Nintendo brand is focused, lost. Nintendo is still the leader in its field, anddistinctive, and still meets its promise to “deliver 2013’s launch of the next-generation Wii consolesmiles,” the buzz around its flagship products — is something the global gaming community canproducts like the 3DS — is decreasing. Nintendo look forward to. 50 Best Global Brands 2012
  • 28. 59 61Xerox Caterpillar+ 5% + 13%6,714 $m 6,306 $mXerox is undergoing a fundamental transition. global consulting and IT brands, notably HP, Caterpillar is the world’s leading manufacturer of Caterpillar to gain insight into future needs. InThe world’s leading document management IBM, Dell, and Accenture. The brand is very well construction and mining equipment, diesel and 2011, the company launched the most innovativecompany is increasingly focused on providing known outside the US, a major advantage natural gas engines, and diesel-electric locomo- truck on the market, the CT660, focusing on itsbusiness services. In fact, more than half of considering how powerful awareness and trust tives. Caterpillar continues to maintain consist- application in business rather than just theXerox’s revenue now comes from such services. are when entering new markets. However, the ency across all touchpoints, most notably through vehicle itself. Other recent initiatives include:Xerox’s “Ready for real business” message strength of its previous positioning as “The its communications and dealerships. As the caterpillaruniversity.com (to help customershighlights its ability to help clients focus on what Document Company, and inconsistent messag- ” company continues to grow through acquisition, learn about products) and a website and app tomatters most. Currently, Xerox is pursuing a ing (particularly in its FujiXerox partnership), this branding expertise is paying off, as shown support customers’ rental needs. It’s no wondergrowth strategy behind its burgeoning services may slow the brand’s transition. The good news by the seamless incorporation of Bucyrus into Caterpillar’s global sales dwarf those of competi-business while upholding its leadership in is that Xerox’s presence and profile position it the brand. R&D investment is at a record USD tors. Still, highly publicized labor disputes coulddocument technology, operational excellence, favorably for small and mid-size clients, espe- $2.3 billion, and focus on customers has enabled damage Caterpillar’s performance and image.and acquisition. In 2011 alone, Xerox made five cially in developing markets. As only 11.3% of itskey acquisitions,helping spur their growth. revenue hails from outside the US and Europe,Nonetheless, Xerox faces stiff competition from this presents a huge opportunity for Xerox. 62 Allianz60 + 16% 6,184 $madidas+ 9% Allianz, the German multinational financial with consumers and improve customer service.6,699 $m services company with its core business in Continuing its mission to become fully digitized, insurance, survived Greece’s debt crisis admira- Allianz has offered its annual report as anDespite its challenger position, adidas is still the customers, and adidas Originals alone has more bly. Though revenues declined and net income interactive iPad app and has implementednumber one sports brand for millions around the than 14 million Facebook fans. The real test of was heavily impacted by market turmoil, an high-tech solutions that make the “design,world. The brand’s “adidas is all in” campaign, these strategies is how the brand is performing. operating profit within the expected range quote, obtain” process easier for customers.featuring football/soccer stars Lionel Messi and In the first half of 2012, it performed incredibly demonstrates Allianz’s fundamental strength as Having succeeded in putting a human face on itsDavid Beckham, NBA star Derrick Rose, and pop well — sales were up 18.5%. adidas is also expected a business. A decrease in 2012 claims also helped, brand, most notably through the global “One”icon Katy Perry, has effectively united its Sport to see record sales in the football/soccer category, but part of Allianz’s resilience can also be campaign, Allianz now has a unified brand thatPerformance, Sport Style, and Originals sub- surpassing even those from the year of the 2010 attributed to its brand. Positioning itself as a leverages cost synergies, enhances its globalbrands. This broadened the presence of the iconic World Cup. The brand’s biggest challenge is to “trusted partner,” Allianz has a strong customer presence, and supports a consistent globalthree stripes, particularly online. The main clip keep expanding its relevance, which should see a focus and skillfully uses technology to connect brand experience.has had more than 2.5 million views, indicating a boost from heavy media coverage of high-profileworthwhile increase in marketing spend. adidas adidas-sponsored events such as the Londoncontinues to focus on digital strategies to promoteits style in sports position, with some success. Olympic Games (adidas supplied sportswear and produced many souvenirs) and the FIFA World 63The virtual miCoach is a great way to engage with Cup in 2014 in Brazil. Hermès + 15% 6,182 $m At 175 years old, Hermès continues to remind the past year, Hermès saw an 18% rise in revenues and world of its rich heritage and iconic achievements, double-digit growth across its product categories, while establishing its relevance for future genera- with a stellar performance in accessories and its tions. From the “Leather Forever” anniversary first women’s ready-to-wear collection. Hermès exhibition, which brought the origins of the opened 13 new stores globally and became the first brand to life, to the Hearts and Crafts microsite, international luxury brand to establish a retail which showcased the craftsmen and designers presence in India. In such a seminal year for behind the famous name, Hermès demonstrates Hermès, the “contemporary artisan” has proven that a tradition of meticulous craftsmanship is to be an apt description for a brand whose culture key to the brand’s value and longevity. Over the of excellence continues to create value. 52 Best Global Brands 2012
  • 29. 64 66KFC Sprite+ 2% + 2%5,994 $m 5,709 $mKFC is the world’s most popular chicken restau- on the Pandora music application to being Sprite’s brand performance has remained solid in and flowboarding games. Its bold “Uncontainablerant and the second-largest restaurant chain on highly active on Facebook and Twitter, KFC is the past year, largely due to its leading market Game” campaign, featuring US basketballthe planet. An integral part of the Yum Brands continuously engaging loyal customers in positions in China and India. The brand delivered superstars Kobe Bryant and LeBron James, andportfolio, KFC has over 15,000 restaurants spread creative ways — and catering to customers with double-digit growth in case volume in the Pacific Chinese musician and actor Jay Chou, demon-across 105 countries. Most notably, KFC continues specialized promotions. KFC is known to engage region in 2011, and is China’s top-selling soft strates the brand’s ability to renew itself.to excel in the Asian market by being both its employees as well. In Britain’s Top Employers drink. Although there were no new product However, Sprite appears to be struggling toresponsive and relevant to local customers in a 2012 ranking, KFC garnered the top position based launches in 2011, Sprite appears to be planning a find a campaign that resonates with consumersway that is authentic to the brand. Last year, KFC on criteria in several HR categories. In order to mid-calorie offering in the US. Sprite outstrips its in India. This may spell trouble if lemon-lime-invested in a global rollout of its new tagline “So continue experiencing growth and engendering competitors 7up and Sierra Mist by interacting based drinks continue to be the fastest-growingGood,” which is now part of its brand promise. loyalty, KFC will need to demonstrate its with its youthful audience via social media category among fizzy drinks inKFC is living up to that promise in the digital commitment to product and experience innova- contests and online basketball, skateboarding, the region.space. From launching a branded radio channel tion in additional markets outside of Asia. 6765 MTV – 12%Panasonic 5,648 $m+ 14%5,765 $m MTV, once the pre-eminent medium for the Awards program also showed phenomenal broadcast of music videos, has become the growth, a huge triumph for the brand and anPanasonic, the Japanese multinational electron- public, private, and nonprofit sectors. Such pre-eminent medium for reality TV. MTV’s homage to its former persona. Beset with anics organization, is in the process of reinventing performance around sustainability earned pragmatic diversification has moved the brand identity crisis and in the midst of a tough gameitself. Incoming President, Kazuhiro Tsuga, has Panasonic the #6 position in Interbrand’s 2012 further from its roots and into its current of catch-up with its target audience, the brandcalled for “a return to the basics,” putting Best Global Green Brands report. By integrating dilemma: music television or not? MTV invests a has some distinct challenges ahead. Constantcustomers at the heart of the Panasonic business and managing energy generation, storage, and lot of resources in researching, understanding, innovation is mandatory for a youth-orientedand ruthlessly eliminating any measures that do use, Panasonic is aiming to offer comprehensive and adapting to its audiences’ evolving needs and brand such as MTV. It will need to pursue annot create value. From solar panels and lithium- solutions that significantly reduce consumers’ desires. But as it continues to experiment with aggressive creative strategy in order to captureion batteries to a full consumer electronics impact on the planet, while simultaneously low-cost content, the cultural pioneer has strayed the attention of a generation with an exception-line-up equipped with “EcoNavi” energy-saving allowing everyone to enjoy a higher standard of from its music-centric identity and lost a bit of its ally short attention span. MTV would do well tofeatures, Panasonic boasts industry-leading living. It is a worthy goal, and one that combines edge. Despite that, MTV continues to have an push the boundaries and recapture some of itstechnologies and is well on its way to achieving Panasonic’s strengths into an offer that competi- impact on popular culture, now on a global scale, lost edge — the very thing that made it a house-a key objective: becoming the number one tors will struggle to match. Panasonic has a with its number one series of all time, Jersey Shore. hold name more than 30 years ago.greenest company in the electronics industry wealth of good stories to tell, and a strong stance In the past year, MTV’s annual Video Musicby 2018. Demonstrating this commitment, on corporate citizenship. Under its “Sharing thePanasonic’s Eco Solutions North America has Passion” slogan, Panasonic served as an Olympicjoined forces with Renewable Social Benefit Partner during the 2012 London Games. The brandFunds (RSB Funds) to finance, build, and now needs a consistent approach to communica-maintain solar photovoltaic projects in the tions and dialogue worldwide. 54 Best Global Brands 2012
  • 30. 68 70Cartier Tiffany & Co.+ 15% + 15%5,495 $m 5,159 $mIn its 165th year, the Cartier brand remains prestigious museums each year. By equating Tiffany & Co., the world-renown jeweler, marks diverse audience. The growing breadth of thewidely coveted, but maintains its exclusivity and its offerings with priceless artifacts and great its 175th anniversary with a double-digit increase portfolio poses some challenges for Tiffany, andits presence as the stuff of many peoples’ most treasures of the past, the brand keeps its creative in brand value. The legendary brand has launched the strategy will continue to require carefulopulent fantasies. Tangible proof of this lies in and illustrious history alive in the minds of those a limited edition series, “Tiffany 1837™,” to management in order to avoid the risks of brandthe numbers: Cartier’s sparkling performance who dream of, and those who are fortunate commemorate the year of its founding and its dilution. Tiffany is also investing wisely in itswas a key contributor to a 32% sales increase for enough to possess, authentic Cartier pieces. commitment to design excellence. High-profile various corporate citizenship efforts. Fromparent company, Richemont’s Jewellery Maisons. Though the brand consistently brings its rich anniversary events featuring the 128.54-carat responsible mining to ensuring 100% of itsPossibly explaining the surge of interest, Cartier heritage to the fore across all communications, Tiffany Diamond are scheduled to take place in packaging suppliers are Forest Stewardshipunveiled the epic “L’Odyssée de Cartier” this Cartier would do well to similarly enrich its Beijing, Tokyo, Dubai and New York. Tiffany’s Council (FSC)-certified, Tiffany is proving that thespring. Two years in the making, the three-and- e-boutiques, as their potential has not yet been portfolio spans from fine jewelry to silver, adage “with age comes wisdom” applies to brandsa-half-minute masterpiece captures the creative realized. Truer to the brand’s usual style and allowing the company to address the needs of a just as much as it applies to people.passion that inspires Cartier’s artisans — the key sense of grandeur, this year also marks an overtto Cartier’s enduring appeal. Launched in commitment to the Maison’s watch offering,cinemas and across multiple digital channels,the film celebrates the history of Cartier’s which is evident in everything from the new aesthetic introduced by the “Calibre de Cartier” 71timeless creations. Ever careful to perpetuate its collection, to the new multi-brand Richemont Avonlegend and continually amplify its luxury status, store in Paris — the largest watch store in – 4%the Cartier Collection tours the world’s most the world. 5,151 $m Avon is celebrating its 125th anniversary with the staying true to its long history of empowering69 “Avon Believe World Tour,” meant to inspire and generate pride around the Avon brand and to women. Avon has managed to keep the direct sales model alive and relevant in today’sFacebook celebrate women’s contributions to the company increasingly digital world. A heavier focus onNew and the world. Throughout this milestone year, e-commerce may not be right for the brand or its5,421 $m the company struggled with meeting sales representatives, but Avon needs to engage with targets, declining global performance, and its real-world following digitally. Avon’s commit- several high-profile regulatory investiga- ment to women is reflected by its involvement in tions — all of which led to a hostile takeover various charities and its corporate mission to “do attempt and changes in leadership and person- well by doing good.” As Avon undergoes restruc- nel. With new CEO Sherilyn McCoy in place, turing, it will be interesting to see how the Avon’s focus is on reigniting the direct-selling company finds a new balance between the momentum and improving operations, while business and the brand.Social media giant, Facebook, is a newcomer to historic role in the Arab Spring also proves thatour Best Global Brands report, after a momentous the brand is delivering on its mission statement:but rocky start to its public life. Facebook’s IPO inMay broke trading volume records, was the third “Giving people the power to share and make the world more open and connected.” The forthcom- 72largest IPO in US history, and the seventh largest ing year, however, poses some major hurdles for Porscheglobally. That said, as of our print date Facebook. The migration of users to its mobile + 12%(September 2012), the stock price was worth half platform is surging by 67% year-on-year, a good 5,149 $mof the original IPO price and is continuing to sign that Facebook remains relevant. Thedrop. The controversy, however, hasn’t slowed migration to mobile has resulted in one-third of More than 70% of all Porsches ever built are still must confront another challenge: becoming athe explosion of people joining the vast social Facebook users spending less time on the on the road. But at Porsche today, product pace-setter for low-emission mobility in thenetwork. With almost a billion people on traditional site than they were just six months improvements are what generate consistently high-performance segment. The first steps haveFacebook globally, the negative activity around ago. Facebook must determine how to make high scores in brand perception. In 2012, the been taken with the development of the Hybridthe IPO doesn’t appear to have affected the mobile profitable very soon and without alienat- revamped Porsche Boxster ushered in a genera- Cayenne and the Porsche 918 Spyder plug-inbrand’s phenomenal growth, especially in ing users. But, if there’s a service that can tion change and the Porsche 911 Carrera and the hybrid. Also, as a new member of Volkswagendeveloping markets. Its slowing growth in combine relevant content with an ad model, Panamera captured numerous international AG, the brand faces the challenge of preservingtraditional markets is a real concern. Facebook’s Facebook seems more than up for the challenge. awards — all of which confirms that Porsche is its identity: Porsche must remain genuine, not content to rest on its laurels. But Porsche without any visible influence from VW. 56 Best Global Brands 2012
  • 31. 73 75Nissan Shell+ 30% + 7%4,969 $m 4,788 $m Given the controversy surrounding the safety they impersonated Shell and used a fake website performance of the category, building a positive and video to make their statement. Perhaps public image is difficult for oil brands. Shell, wisely, Shell has not reacted strongly to the however, rose to the challenge and, despite an oil stunt. It is too early to predict how Arctic drilling spill off the coast of Nigeria, managed to will affect profits and how pressure from maintain a strong brand image. That image, environmental activists will affect Shell’s brand however, is at risk of becoming tarnished as Shell strength. To safeguard its image — and avoid the dives into the highly controversial business of negative consequences and cost of an acci- top riser Arctic drilling. Shell’s actions in the Arctic have dent — Shell might consider cooperating with made it the target of culture jamming, a tactic those who want to develop a vision for the Arctic that involves subverting the media as a form of that is based on science, preparedness, and protest. In this case, Greenpeace and activist duo, protecting the health of ecosystems. the Yes Men, created an elaborate hoax in whichThe Nissan brand continues to generate waves of of vehicles such as the Nissan Juke. Winningmomentum. Nissan demonstrated a fair amount Japan’s Car of the Year Award, the Nissan LEAF 76of agility by recovering quickly from natural proved that a zero-emissions vehicle can not onlydisasters and by growing market share with an transport humans, but also power an ordinaryaging lineup. With the addition of new models household. The brand continues to expand in Santanderbeginning to roll out, the brand should maintain Europe and has established a strong presence in – 6%an upward trajectory. A significant part of emerging markets such as Russia and China. 4,771 $mNissan’s success has been its ability to push the With a commitment to continue to improve theenvelope on innovation: from the next-genera- service experience, Nissan has an opportunity to Over the past two decades, Santander has emerged is one of 16 Spanish banks that had their credittion NYC taxi and groundbreaking Nissan break away from a dependence on incentives and as one of Europe’s largest banks and was named worthiness downgraded by Moody’s InvestorsDeltaWing race car at LeMans, to the bold designs fully leverage the power of its brand. the 2012 best retail bank in the world by Euromoney. Service. The brand’s reputation also took a hit Santander has demonstrated a commitment to from high-profile legal investigations involving increasing its level of customer satisfaction by two of its most senior executives. This all comes as74 developing a special program for managing customer concerns. The program ensures quick Santander is introducing US consumers to its global brand following its acquisition of SovereignVisa resolution of complaints by channeling them to Bank. Santander plans to drop the Sovereign name+ 10% specialized units that keep the customer informed early next year and has been careful to demon-4,944 $m of progress where identifying the main causes of strate its commitment to the US by continuing to common customer complaints so steps can be invest in new technology and advertising for its USAiming to bring the digital currency marketplace were unable to make purchases — and had only taken to correct them. Although it is feeling the operations. Santander has been a solid, growingto new heights, Visa is working to help users Visa to blame. The brand faced another challenge pain of both a slow-to-recover US economy and the brand for decades, and has emerged as one of thearound the world leave the inconvenience of this year when one of its service providers European debt crisis, the bank’s investments in world’s biggest banks. But the European debtchecks and the risks of cash behind. Through its experienced a security breach that put over a South America have shielded Santander from crisis and the brand’s close association with Spain“Currency of Progress” mission, Visa is looking to million consumers at risk for identify theft. Visa feeling the effects as much as its peers. Santander, will make it difficult for Santander to continue itsmake digital currency the new norm. The brand turned the incident into proof of its commitment however, is not totally immune — with significant winning streak.continues to develop technologies for its online to customers, immediately removing the provider losses over the first two quarters of 2012, Santanderand mobile platforms, most recently showcased from its list of approved vendors. Despite theseat the 2012 Olympic Games in London, where the mishaps, Visa’s heavy media campaign duringbrand was a main sponsor. Unfortunately, the the Olympics and other major sporting eventssponsorship was blemished when credit card have helped the brand maintain a positivesystems failed during peak events. Due to Visa’s presence in the minds of consumers. Lookingagreement with the International Olympic forward, Visa may have difficulties if it continuesCommittee, there was no fallback to another card to neglect a clear and appropriate articulation ofprovider or merchant system, which meant fans its brand promise and benefit to consumers. 58 Best Global Brands 2012
  • 32. 77 793M Johnson & Johnson+ 18% + 8%4,656 $m 4,378 $mIt has been an impressive year for 3M, which has Reinforced by consistent and effective brand Johnson & Johnson (J&J) rebounded strong in 2012, the consumer health space, J&J continues to growstrengthened its brand in many areas and in communications, 3M continues to build trust and demonstrating the resilience of its brand. Alex its presence and influence. Most apparent is thedoing so has increased its brand value by 18%. The respect among customers — earning the company Gorsky, a J&J veteran very familiar with the safety Medical Device and Diagnostic division’scompany has continued to win accolades for its leading global market positions in each of its and quality issues that have plagued the company acquisition of Synthes, a leading global medicalenvironmental record, especially in pollution business areas, where a closer connection has in the recent past, was named CEO. While safety device company. By merging Synthes with itsprevention, and its commitment to staff. But it is been achieved between strong product brands and quality issues like supply shortages and DePuy franchise to form the new DePuy Synthesinnovation that separates 3M from the pack — a and the 3M corporate brand. In 2011, 3M launched recalls of Tylenol products continued in 2012, J&J’s Companies, J&J has created the world’s largest,territory 3M has strongly reclaimed in the past a new R&D facility in India, slated to bring in responsiveness in updating safety protocols, and most innovative orthopedic and neurologicalyear. Its strong R&D culture delivers a wide range significant revenue within the next five years. its commitment to social responsibility have business. Driven by its credo to improve theof products that meet customer needs across And despite the recession, 3M managed a sales enabled the company to bounce back — and health and well-being of people around theboth B2B and B2C audiences, and improve the increase in the first quarter of 2012, making the establish itself once again as a trusted corporate world, J&J continues to demonstrate that a strongenvironment (the company ranked #12 in future look very bright indeed under new CEO, brand. J&J continues to expand its consumer brand can help a company weather all storms.Interbrand’s Best Global Green Brands 2012). Inge Thulin. health presence in emerging markets. Outside of78 80Adobe Kleenex+ 9% – 7%4,557 $m 4,360 $mAdobe continues its focus on “changing the world majority of respondents, one of the most Although Kleenex’s social media efforts were Swish” campaign, dedicated to teachingthrough digital experiences” by expanding its important keys to expressing one’s creativity. By lauded by critics and consumers alike, its brand consumers how to prevent colds from spreading.breadth of offerings to consumers and providing acknowledging the deeper need that draws people value declined over the past year. Kleenex The Kleenex product was originally made ofthem with end-to-end solutions for creating, to their offerings and moving beyond products to outspent competitors in advertising, but store excess material and, today, its cartons are alsopublishing, marketing, and optimizing content. suites and services, Adobe is beginning to build brands were the ultimate victors in the category. fully recyclable. Despite its decline in brandSpecifically, with the launch of the Creative relationships with users at the highest level and To reclaim some of this lost market share, value, Kleenex remains a global icon. Its heritageCloud, Adobe brings an array of Digital Media transform the way their brand is perceived: from Kleenex rolled out Kleenex Cool Touch tissue, and in the facial tissue industry, along with itstools to users under one umbrella, elevating the tool maker to creative advocate. Who better to let consumers try the new tissues for free if they dedication to consumers and product innovation,creative process from one that is currently produce creative suites than experts on creativity? sent a Share Package to a friend or family continue to position the brand as a worldwidetool- and box-driven to something more innova- In this way, Adobe has solidified its relevance to a member. Kleenex also launched its “Shield Sneeze leader in its industry.tive, accessible, and inclusive. Understanding diverse global audience and fortified its brand atthat the human urge toward creativity is at the the masterbrand level,with an authentic brandcore of their business, Adobe also conducted anin-depth global study called the Adobe State of vision around creativity that is clearly resonating. Revenues have exceeded company expectations, 81Create. Strategically released at the company’s demonstrating that Adobe is on the right track Jack Daniel’sCS6 launch event this spring, the study revealed, and responding admirably to the fast-changing + 1%among other interesting findings, that access to needs of the creative and business marketplace, 4,352 $mcreativity-boosting tools is, according to the as well as the universal human need to create. Despite celebrating its 160th birthday, Jack Daniel’s values, Jack Daniel’s brings them to Tennessee for is keeping pace with the times. The Tennessean “Camp Jack.” The Jack Daniel’s Distillery also whisky has more Facebook friends (1.8 million) partners with the University of Tennessee to than any other alcohol brand. Jack Daniel’s has preserve and restore trees native to its home state. also revamped its website and effectively used Jack Daniel’s commitment to core values and Twitter to build buzz around its new flavored corporate citizenship bodes well for the future. whiskey, Tennessee Honey. True to its Tennessee Having launched its first flavored whiskey and roots, Jack Daniel’s still upholds its values of pre-mixed alcoholic drinks, the iconic brand is authenticity and integrity. To ensure that all hoping to expand into new markets and make this employees understand the brand’s heritage and century as successful as the last. 60 Best Global Brands 2012
  • 33. 82 84Burberry Prada+ 16% New4,342 $m 4,271 $mQuintessentially British, yet relevant worldwide Burberry was one of the first brands to embraceacross genders and generations, Burberry social networking through its website andcontinues to drive its momentum as a leading Facebook page. The brand also aggressivelyglobal luxury brand. Under the leadership of its advertised on digital platforms, well ahead ofCEO, Angela Ahrendts, Burberry’s digital other notable luxury brands. Cementing a toppositioning ensures consistency of experience spot on social media in the luxury sector, theacross channels and enriches the depth and brand doubled its numbers for both Facebook fansaccessibility of that experience — thrilling and YouTube views, and tripled its number ofconsumers every time. Late last year, launching followers on Twitter this year. Art of the Trench,simultaneously across digital and traditional a website that is “a living celebration of theplatforms, Burberry Body was the brand’s most Burberry trench coat and the people who wearsuccessful fragrance launch to date. The runway it,” also saw a 60% lift in pageviews, with over 19 Though in existence for nearly a century, Prada rather than chase them. Figures reflect the powershow experience on Burberry.com evolved again million users from 200 countries. However, approaches each season with a flair that is bold of this love affair, and underpin Prada’s return tothis year, with motion-reactive 360-degree despite these impressive numbers, Burberry’s and innovative, yet distinctly its own. As a result, our Best Global Brands report. The brand’stechnology enhancing online viewing of the growth rates, once supported by a buoyant Prada consistently exudes an admirable degree of continued growth in revenues (26% in 2011) iscollection. Burberry’s “Runway to Reality” Chinese market, are now starting to slow. To self-confidence, which only makes it more fueled mainly by over 250 DOS (Directly Operatedinitiative also allows consumers the opportunity continue its growth trajectory, this classy British desirable, and steers the brand away from Stores) worldwide — a network which is expandedto purchase directly from a video of a Burberry label will have to deftly navigate the changing provocation for provocation’s sake. What with a careful eye on increasingly well-traveledrunway show. A leader when it comes to reaching landscape in developing markets to remain a ultimately draws consumers to the Prada brand customers. While Prada boasts an extraordinaryconsumers in innovative, high-tech ways, global luxury powerhouse. (and moves them to value its very name across indifference to the difficult economic climate, continents and cultures) is its sense of self-assur- the only caution may be the extent to which the ance, won through constant experimentation Chinese market alone will be the brand’s center83 and a proven ability to dictate tastes and trends of gravity, both commercially and otherwise.Johnnie Walker+ 12%4,301 $m 85 John DeereJohnnie Walker, a leading producer of Scotch Giants” campaign in Africa, as well as its + 16%whisky, has had a good year and continues to partnership with influential Chinese blogger 4,221 $mplay a leading role in the Diageo portfolio. Selling HanHan and first Latino spokesperson, DJ Alex17 million equivalent units of its Red and Black Sensation, are strengthening Johnnie Walker’s John Deere, one of the world’s leading manufac- beyond — as the ubiquitous John Deere cap canlabels in the year ending June 2011, Johnnie appeal in emerging markets, helping to offset turers of agricultural machinery and forestry attest. Without losing sight of its authentic core,Walker remains the world’s best-selling whisky challenges in Europe. The brand’s sponsorship of equipment, celebrates its 175th anniversary this John Deere continues to tap into the growthand best-selling spirit by value. In the six months the Johnnie Walker Classic in Asia and the year with a sharp increase in brand value. The potential of the construction equipment market.following, overall sales went up by 15%. Despite Johnnie Walker Championship at Gleneagles keep Moline, Illinois-based organization attributes its With most of John Deere’s construction sales inthe huge volume, the brand retains its premium the brand highly visible while reinforcing its longevity to the fact that its core values (integrity, North America, increased demand in countriespositioning — it is the top premium Scotch Scottish roots. At the same time, through careful quality, commitment, and innovation) are like Russia, India, China, and Brazil is expected.whisky brand globally. The brand’s simple and and consistent management, the brand has central to the brand’s corporate citizenship Economic uncertainty, adverse weather inelegant architecture translates into a clear remained relevant to customers at every price strategy and still vital among the 60,000 countries such as the US and India, and a recentdifferentiation from its competitors and strong point. Johnnie Walker’s future will remain very employees worldwide. The company remains production delay of a new combine line haveunderstanding by consumers. Its new “Walk with promising if it doesn’t stray from its current path. “committed to those linked to the land” by contributed to John Deere lowering its full-year sponsoring agricultural-development training net income forecast. All signs indicate, however, programs in countries like Russia and Ukraine. that the organization is well-positioned to This commitment and authenticity clearly overcome such challenges and make its 176th year resonate with the brand’s core audience and its best yet. 62 Best Global Brands 2012
  • 34. $70.4b $21.1b $64.7b $43.5b $60.8b $42.8b $33.5b $32.0b $19.4b $26.1b $68.7b 86$15.4b $60.2b $31.9b $56.6b $47.7b $32.2b $30.6b $17.5b $31.3b 88 Pizza Hut Starbucks + 2% + 11% 4,193 $m 4,062 $m Pizza Hut, part of the Yum Brands portfolio, through numerous brand image changes over the Starbucks, the premier coffee chain, has include Starbucks’ US partnership with Square, $66.6b $13.7b $59.0b $25.5b $59.0b $53.0b $31.0b $31.2b $17.6b $34.0b kicked off 2012 with its “Top This” campaign. It past decade, have left some customers confused revamped its strategy in the past year by opening an electronic payment service. The partnership used Facebook to give consumers the chance to about Pizza Hut’s core values and positioning. In juice bars, introducing a blonde roast coffee, and allows for mobile payments in-store, and its appear in a pre-game Super Bowl commercial, May 2012, the brand took aim at the sandwich even offering alcohol, live entertainment, and Mobile Pour scooter-based delivery service illustrating how Pizza Hut is deepening its market — namely Subway — by introducing a new savory dishes at some of its US locations. This supports customers who are on the move. Theoca-Cola Apple IBM Google Microsoft GE McDonald‘s Intel Samsung Toyota connection with consumers through social pizza sandwich called the P’Zolo™ with the strategy appears to be an effective response to deal seems to have struck a chord with Starbucks’ platforms. With 7,200 restaurants in the US and tagline “See ya subs.” The P’Zolo initiative also McDonald’s efforts to appeal to more coffee tech-savvy consumers. Social media commentary 5,600 in other countries, Pizza Hut has intro- enables Pizza Hut to improve on “portability” — drinkers. Where Starbucks really shines, shows that they are excited about getting coffee duced new products to appeal to local tastes. In TOP 10 BRANDS something that pizza lacks. It remains to be seen however, is in engaging its customers and “without waiting on enormous lines.” The brand the Middle East, it introduced “Crown Crust if this menu addition will prove successful. With improving their online and in-store experiences. continues to expand internationally, and entered Pizza.” In China, the chain opened restaurants competitors like Domino’s Pizza entering New digital initiatives include an improved the Indian market this year — positive steps with a casual dining setting that offers typical emerging markets with strong brand promises, mobile and tablet website that enables fans to towards its goal of generating half of its revenues American dishes. These vast regional differences, Pizza Hut will have to rise up in order to deliver. design, customize, and share coffee-related outside the US. along with the fact that the brand has gone content online. Recent service innovations $3.7b 87 $7.9b $3.8b $17.2b $7.4b $4.0b $30.0b $4.9b $5.1b $30.2b 89 $9.2b Kia Corona New + 3% 4,089 $m 4,061 $m Ferrari Ford Harley-Davidson Honda Hyundai Kia Mercedes-Benz Nissan Porsche Toyota Volkswagen For the past few years, Kia has been one of also differentiates it from sister brand, Hyundai. Perhaps there is no beer more strongly desired on also been announced this year, marking the first fastest-moving global automotive brands. One of Kia is also promoting the connected life and is a hot summer day than Corona — with a slice of time in the brand’s history that the entire line of only three auto brands to increase US sales each AUTOMOTIVE appealing to younger segments through technol- lime. One of the top-selling imported beers in the packaging will adopt new design elements. of the past three years, sales are on the rise, even ogy and alignment with their lifestyles. The US and Australia, and swiftly gaining popularity While the bottles will keep their iconic look, the in a difficult market like Europe. Although the automaker is not launching any new vehicles this in Asia and the majority of Latin American enhanced packaging will help differentiate theOOKS lineup is attractive to many cost-conscious year, but plans to bring its flagship K9 sedan to markets, Corona saw the largest sales volume brands through color and graphic changes. consumers, the brand has built a particularly the US market. The K9’s premium position growth in Mexican brewer Grupo Modelo’s Though Corona’s brand remains strong, its strong connection with Millennials and Gen Y should raise the profile of the Kia brand. Looking portfolio in 2011. While there are notable growth was slowed in this year’s report due to an audiences. A more aggressive front end design $7.4b $7.9b $17.2b ahead, Kia’s biggest challenges will be its $30.0b $30.2b differences in the way the brand is positioned $9.2b overall decline in sales, particularly in the US, $3.7b with the brand’s trademark tiger nose grille helps $3.8b expansion efforts — opening new stores and $4.0b $4.9b $5.1b across countries, Corona preserved common where the beer industry has been impacted by give Kia an edge that attracts younger drivers and producing enough vehicles to meet demand. strategic guidelines around the globe and high unemployment and the reduced spending continues to align its brand with the excitement power of its core customers — men ages 21–34. Ferrari Ford Harley-Davidson Honda Hyundai Kia Mercedes-Benz Nissan Porsche Toyota of sports and the carefree lifestyles of younger, Volkswagen Complicating an already tough situation is the presumably party-going consumers. This challenge of marketing to Hispanics, who will summer’s “Corona Beach Getaway” campaign, account for 23% of the US’s legal-drinking-age New Additions AUTOMOTIVE for instance, highlighted the fact that the beach population by 2030. In the years ahead, Corona is not necessarily a physical place, but rather a will need to create distinctive campaigns that state of mind. The campaign achieved massive avoid resorting to stereotypes and will soundly social media participation. New packaging resonate with this key demographic. designs for Corona Extra and Corona Light have $5.4b $4.0b $3.8b $11.2b $4.2b $4.0b Facebook Kia Mastercard Pampers Prada Ralph Lauren 64 Best Global Brands 2012 NEW ADDITIONS
  • 35. 90 92Smirnoff Heineken+ 5% + 3%4,050 $m 3,939 $mSmirnoff’s parent company, Diageo, describes the website also has strong global appeal. It not only One of the world’s most recognized premium beer increasingly involving consumers in its businessbrand as being “the world’s best selling premium boasts a section featuring Smirnoff-infused brands, Heineken continues to aggressively stay processes to stimulate worldwide conversationdistilled spirit” — and for good reason. “cocktails from around the globe,” but it also in front of the market. With its recent efforts to about the brand. From launching a website thatAccelerated growth in developed markets and provides consumers with a “nightlife guide” that acquire the remaining shares of the Tiger beer allows consumers to discuss the perfect draughtdouble-digit growth in Africa and Latin America contains information on the world’s “best bars, operation in Thailand, Heineken has proven it’s beer experience to its crowd-sourced nightclubhave made Smirnoff a star in the Diageo portfo- clubs, eateries, [and] special places.” Despite serious about solidifying its operational presence concept that livened up Milan’s Design Week,lio. As a result, Smirnoff’s marketing spend was having originated in Russia in the 1800s, in Asia. The brand also continues to develop Heineken is proving that it can mobilize andrecently increased by 10%. And Smirnoff is likely Smirnoff remains highly relevant to its consum- impactful and memorable global campaigns like engage audiences worldwide. With more thanto put the extra funding to good use. Falling in ers in the 21st century. It presents them with the “Heineken Star Serve,” which, appealing to five million fans, Heineken’s Facebook presenceline with its Whipped Cream and Fluffed the information they need to plan — or just both consumers and beverage servers, advises on is more proof of the brand’s ongoing success withMarshmallow flavored vodka launches and its dream about — a thrilling night out in any how to tap and serve the perfect draught beer. As efforts to stay globally relevant while maintaining“Nightlife Exchange Project,” Smirnoff an- number of the world’s most exciting cities. this campaign illustrates, Heineken is its premium status.nounced plans to collaborate with photographer Clearly, Smirnoff is dedicated to buildingDavid LaChapelle to launch “Smirnoff Midnight relevant, self-expressive and exciting experiencesCircus,” a global tour that will celebrate nightlifeexperiences in cities around the world. Smirnoff’s for its consumers worldwide. 93 BlackBerry – 39%91 3,922 $mRalph Lauren It has been a tumultuous year for the BlackBerry BlackBerry stands for, just as its parent companyNew brand. In a category that is driven more by struggles to do the same internally. The company4,038 $m design and user experience, BlackBerry is is plagued with underwhelming product struggling to find a point of difference beyond launches, undelivered promises (BlackBerry 10An iconic fashion brand that embodies timeless buy out all the ad space in The New York Times iPad security, BBM, and its physical QWERTY has been delayed yet again, to 2013), andstyle, Ralph Lauren excels at creating stories app for the entire month of September. Building keyboards — none of which are capable of being inconsistent marketing campaigns. Withoutaround its merchandise by using technology and on its well-established sporting heritage, Ralph secure, long-term advantages. A change of having a clear core idea or platform upon whichcreativity. Making its first reappearance in the Lauren has entered new team sponsorships and leadership early in the year provided hope that to build and rally behind, it is increasinglytop 100 since 2009, Ralph Lauren’s record brand outfitting agreements, including a five-year the company had found a new lease difficult to understand the company’s direction.growth in the past year can be attributed to contract with the US Golf Association as its on life. New CEO Thorsten Heins’ decision to BlackBerry shipments are down 41% in the pasthighly innovative communication patterns and official outfitter and on-site apparel supplier. “stay the course,” however, illustrated a year, and market share now stands at 4.8%consistency across all touchpoints and formats. Expected to bolster its all-American image, the reluctance to take a risk on self-reinvention and globally. In order to survive, the brand mustAt the forefront of the digital movement since the brand accepted the honor of being the US transformation — traits that are essential for demonstrate relevance in the crowded smart-beginning, the brand saw the digital revolution Olympic team’s official outfitter as well. survival in today’s hyper-competitive consumer phone market. If BlackBerry can deliver a trulyas an opportunity to tell a story online when Unfortunately, bringing a bit of tarnish to an electronics market. As such, the brand remains innovative experience designed for today’s mobilemany fashion retailers saw the internet as a otherwise exemplary year, outrage ensued when locked in an identity crisis. Despite its long- professional, it will send the message that thethreat to store sales. Over the years, Ralph Lauren it was revealed that Team USA’s RL uniforms standing association with the B2B market, brand is committed to the B2B market that oncehas invested heavily in video, editorial content, a were, in fact, made in China. While there are customers are struggling to understand what made it such a success.Minority Report-inspired interactive store many things Ralph Lauren is doing right, inwindow, mobile apps, and a 4D “visual feast” in order to sustain its strong brand growth andthe streets of London and New York fusing art, integrity, the brand will have to make transpar-fashion, and technology. Most recently, the ency a top priority.brand used Fashion Week as an opportunity to 66 Best Global Brands 2012
  • 36. 94 96Mastercard Harley-DavidsonNew + 10%3,896 $m 3,857 $m After nearly three years of restructuring its with passion and enthusiasm. Of its 3.6 million business, Harley-Davidson has emerged with Facebook fans, 40% are aged 18–34. The organiza- confidence and focus. The strategy seems to be tion has also shed non-Harley-Davidson brands paying off with signs of solid performance and and put its efforts into a unified brand experi-MasterCard makes its debut in our Best Global and succeeded in building emotional connections consistent growth. Even through challenging ence. This focus has helped to build momentumBrands report after an impressive year. The between MasterCard and consumers over time. economic times, there remains a strong sense in share gains, retail sales, and profit in outreachcompany’s leadership in mobile payment via Now reaping more of the benefits of those of community among Harley-Davidson fans. markets. Despite strong competition fromMasterCard PayPass, the launch of its “Priceless connections, MasterCard needs to continue Knowing that it cannot solely rely on baby Japanese manufacturers, Harley-DavidsonCities” customer benefits program, and a delivering meaningful results. Despite a positive boomers, the company has been working hard opened 35 dealerships in international markets, 2012 2012 $77.8b $77.8b $76.5bgrowing suite of solutions for business owners year overall, a$76.5b party $69.7b breach exposed the $75.5b third $75.5b data $57.8b $69.7b $43.6b $57.8b $40.0b $43.6b to appeal$39.3b to women, minorities, Gen Y,$32.8b $40.0b $32.8b $39.3b $30.0b and $30.0b including Mexico, India, Turkey, Russia, China,are steadily increasing consumer satisfaction. account information of millions of customers. As Millennials. The challenge for the brand will be and Brazil. With a solid strategy in place,MasterCard gained market share from Visa over one of the world’s largest payment processors, in balancing traditional audiences with the new Harley-Davidson appears poised to conquer thethe past year in spending volume, new bank MasterCard must work diligently to ensure its audience segments. These newcomers to Harley open road.tie-ups (notably SunTrust and Sovereign in the customers’ information is protected and that Davidson, however, are embracing the brand 2011 2011 $71.8b $33.4b $71.8b $33.4b $69.9b $55.3b $69.9b $59.0b $55.3b $42.8b $59.0b $35.5b $42.8b $35.2b $35.5b $23.4b $35.2b $27.7b $23.4b $27.7bUS) and new card users. The brand’s “Priceless” their experiences with the brand remain positive.tagline and accompanying slogan have resonated 9795 2010 2010 $70.4b $21.1b $70.4b $21.1b $64.7b $43.5b $64.7b $43.5b $60.8b $42.8b $60.8b $33.5b Yahoo! $42.8b – 13% $32.0b $33.5b $19.4b $32.0b $26.1b $19.4b $26.1bCredit Suisse 3,851 $m– 5%3,866 $m 2009 2009 $68.7b $15.4b $68.7b $60.2b $15.4b $31.9b $60.2b $56.6b $31.9b $56.6b $47.7b $32.2b A brand that had $47.7b $30.6ba hand in defining the internet $32.2b $17.5b $30.6b $31.3b $17.5b have been circling the troubled company for the $31.3bThis year, Credit Suisse launched a bold advertis- loss-absorbing capital during the current year.’’ before the age of Google, Yahoo has been on the past two years and, so far, no one has been able toing campaign, aimed at positioning the firm as Considering the challenges, the bank’s ability to decline for the past 10 years. Although the web revive the ailing brand. Enter Marissa Mayer — aa luxury brand. It replaced its Roger Federer hold steady is impressive. The brand has retained portal pioneer is the fourth-largest site on the former Google executive, now Yahoo’s CEO. A“Relaxed” with “The Roger Federer World Tour relevance through its continued transition to a internet and has an audience of millions, it has bold hire by anyone’s estimation, there is now 2008 2008 $66.6b $13.7b $66.6b $13.7b $59.0b $59.0b $25.5b $59.0b $25.5b $59.0b $53.0b $31.0b $53.0b $31.0b $31.2b $17.6b $31.2b $34.0b $17.6b $34.0b2012” — and not a moment too soon. “Relaxed” more client-focused model, a critical move given been making news not for its achievements, but more hope than ever for a turnaround at Yahoo.may not be the right vibe for a global banking the upheaval within its sector. This model for its missteps. Yahoo struggles to compete in Indeed, the company has potential to make aleader at this particular moment in history. Like extends to the brand’s corporate citizenship search, email, and data sharing. Acquisitions, comeback: it has strong brand recognition, a vastother banks, Credit Suisse has been buffeted by effort, use of social media channels and a such as Flickr, have been underutilized. Without audience, and despite challenges, revenues are Coca-Colathe effects of a slow-starting US economy, the Apple Coca-Cola IBM Apple Google IBM Microsoft Google multi-year talent and cultural-building effort. Microsoft McDonald‘s developing social elements, Flickr ceded GE GE fully McDonald‘s Samsung Intel Intel Toyota Samsung Toyota up. Yahoo must realize that the content it’s nowEuropean debt crisis, and many unknowns in The hard work has paid off. This year, Credit ground to Facebook and Instagram. On top of developing will come to define it as a brand andAsia. The brand’s new financial reality — declines Suisse stands as the lone representative of the that, Yahoo’s revenues have been waning for that, in a world overflowing with information,in both revenue and margins — has led to cuts in Swiss banking tradition among the world’sTOP 10 BRANDS BRANDS TOP 10 years and its content, while a dominant force in differentiation has never been more important.global headcount and the Swiss National Bank’s brand elite. online news, needs to evolve. Potential buyersrecommendation to ‘’significantly expand itsAutomotive $7.1b $7.1b $29b $3.7b $29b $3.7b $7.9b $7.9b $3.8b $17.2b $3.8b $17.2b $7.4b $4.0b $7.4b $4.0b $30.0b $4.9b $30.0b $5.1b $4.9b $5.1b $30.2b $30.2b $9.2b $9.2b Audi BMW Audi Ferrari BMW Ford Ferrari Harley-Davidson Harley-DavidsonHyundai Ford Honda Honda Hyundai Mercedes-Benz Mercedes-Benz Porsche Kia Kia Nissan Nissan Toyota Porsche Volkswagen Toyota Volkswagen 68 Best Global Brands 2012 AUTOMOTIVE AUTOMOTIVE
  • 37. 98 100Moët & Chandon Gap– 13% – 8%3,824 $m 3,731 $mMoët & Chandon has helped its consumers recently hired a new digital advertising agency The Gap brand has experienced rocky times in logged orders from over 330 cities across thecelebrate success and glamour since 1743. In the and having increased its media spend, Moët & recent years, as the business concept has been country. Its partnership with China’spast year, the brand played an active role in Chandon appears ready to grab consumers’ successfully copied and revamped by trendier e-commerce leader, Toabao Mall, will allowthe opening of LVMH’s White 1921, a boutique attention — not only on the beaches of Saint- competitors like H&M, Zara, and Uniqlo. Gap has Gap to reach an additional 370 million consum-hotel and bar located in the heart of Saint-Tropez. Tropez and through celebrity-hosted tours, but on also struggled with a blurred brand vision and ers. In addition, Gap plans to open 45 stores inWith an 82-seat bar, White 1921 guests are able to the digital forefront as well. If it can successfully lack of design originality. Consequently, the China by the end of 2012. Indications show thatleisurely sip Moët Imperial Vintage from 1921. strike a balance between maintaining its enviable world has watched Gap’s steady fall from grace, Gap has been picking up speed after launching aMoët & Chandon also launched its 2012 Moët Rose heritage while simultaneously becoming and consumers are reluctant to keep the faith to a global branding campaign — sales have increasedLounge Series, a celebrity-hosted, supper digitally aggressive, Moët & Chandon might very brand once considered the king of retail apparel. and profits remain stable. By steering awayclub-style tour featuring Moët Nectar Imperial well be able to restore some of its brand value in In response, Gap is now focusing its efforts on from the “fast fashion” approach common to itsRose. In the year head, Moët & Chandon will the year ahead — an accomplishment that will reconnecting with its Californian roots, and competitors and committing itself to longer-serve as the official champagne of the 34th definitely be worth toasting. staying true to the iconic casual style, built on lasting consumer pleasure through colors,America’s Cup. With its US division having jeans and t-shirts, that made it so popular in the fabrics, and a return to iconic classic styles, Gap 1980s and 1990s. The brand is expanding in Asia will get another chance to reclaim the retail and its dedicated Chinese e-commerce site has apparel throne.99Ferrari+ 5%3,770 $m Top 10 BrandsFerrari is an iconic automotive brand that can be conversations in social media. While Ferrari’sbest described as one that passionately pursues home country of Italy is one of the strongholds inperfection. In its latest quest to move the supercars, a crackdown on luxury goods and 2012 $77.8b $76.5b $75.5b $69.7b $57.8b $43.6b $40.0b $39.3b $32.8b $30.0bhigh-performance category forward, Ferrari scrutiny of supercar owners has had a negativeannounced that it will offer its first gasoline- impact on sales there. China, however, iselectric hybrid vehicle next year. This vehicle will Ferrari’s second-biggest market and the brandreplace the limited edition Enzo and inject its continues to expand at a rapid pace with new 2011 $71.8b $33.4b $69.9b $55.3b $59.0b $42.8b $35.5b $35.2b $23.4b $27.7bFormula One power in creating the fastest, most dealerships and increased sales. With newpowerful road car ever — while slashing fuel and renewed licensing deals, Ferrari is as strongconsumption. These are the types of bold as ever and continues to find new ways to 2010 $70.4b $21.1b $64.7b $43.5b $60.8b $42.8b $33.5b $32.0b $19.4b $26.1bambitions and stories that energize the Ferrari excel as one of the world’s most legendarycommunity and generate hours upon hours of automotive brands. 2009 $68.7b $15.4b $60.2b $31.9b $56.6b $47.7b $32.2b $30.6b $17.5b $31.3b 2008 $66.6b $13.7b $59.0b $25.5b $59.0b $53.0b $31.0b $31.2b $17.6b $34.0b Coca-Cola Apple IBM Google Microsoft GE McDonald‘s Intel Samsung Toyota TOP 10 BRANDS $7.1b $29b $3.7b $7.9b $3.8b $17.2b $7.4b $4.0b $30.0b $4.9b $5.1b $30.2b $9.2b 70 Best Global Brands 2012 Audi BMW Ferrari Ford Harley-Davidson Honda Hyundai Kia Mercedes-Benz Nissan Porsche Toyota Volkswag
  • 38. Survival of the Smartest By Stuart Green Globally, the airline industry remains in a fragile state. The industry continues to face challenges from macroeconomic uncertainties, especially within the Eurozone, as well as intense competition and rising fuel costs. Fuel now accounts for a third of every airline’s costs, up from 13% a decade ago. The International Air Transportation Association (IATA) estimates that total airline profits for 2012 will be USD $3 billion, down from the estimated $7.9 billion in 2011. In fact, the airline industry has suffered a multi-million-dollar global loss in seven of the past 12 years.72 Best Global Brands 2012 / Airlines
  • 39. Compounding matters, the EU has unilaterally system, known as “Red.” The nine-inch high- KLM is differentiating the passenger Driving demand by leveragingdecided to levy a carbon tax. Though airlines definition touchscreens feature live satellite experience by enhancing its cultural touch- the customer experiencehave been steadily implementing and achieving television, the first ever seatback digital points and use of social media. In order toenvironmental goals in recent years, there is Never before have airline customers been so shopping platform, an open tab service, and make Chinese passengers feel at home, KLMfriction over the carbon tax plan, a scheme diverse, informed, fickle, and demanding. interactive Google Maps with terrain view has localized elements of the onboardthat requires airlines flying within, to, and Airlines that do manage to please make that tracks the flight’s location. Passengers experience on flights to and from China.from the EU to monitor their CO2 emissions considerable effort to focus on the desired can also use the system to chat with other Each flight has three Chinese-speaking cabinand, if necessary, pay for the exceeding carbon customer experience. They also deliver passengers, play 3D games such as Doom, crewmembers onboard; announcements areallowances. However, despite disputes from changes based on what’s critical, and avoid offset carbon emissions for their flight, or also made in Mandarin and Cantonese, whilethe industry, “climate politics” will continue to time and effort spent on what’s not. purchase snacks, meals, and beverages. language assistants are available to assistbe an issue for airlines as pressure to curb Flight attendants receive orders via a tablet passengers upon departure and arrival. Inemissions mounts. These more “experiential” focused airlines device, and bring any ordered items directly addition, KLM’s social media hub strives to know that customers want brand experiences to the passenger’s seat. answer every customer message via TwitterWith many airlines bleeding money and that are relevant and appropriate — not just and Facebook personally, within an hour,drastically cutting back on costs, 2012 has at a point in time, but on an ongoing basis, Korean Air is known to be the world’s most 24 hours a day, seven days a week, in Dutch,largely been about survival. Fragmented and and often customized to their liking. Rather successful inflight retailer and has the lowest English, German, or Spanish.populated with too many players, the industry than weigh business decisions against the seat density on its A380s among all airlines.is struggling to find its balance as the tradi- multitude of external factors out of their Sacrificing revenue from 13 seats to make way Though current conditions are not idealtional business model shifts from a focus control (high operating costs, regulations, an for the “first flying duty-free shop,” Korean Air for the airline industry, there is certainlyon market share to a focus on profitability. ever-changing economy), these airlines use has created Absolut Vodka-branded bars and ample opportunity to rethink strategy andConsolidation is inevitable to remove excess their brand as a decision filter and act with lounges that incorporate display units of duty- put more emphasis on profitability. Airlinecapacity in the industry, especially as govern- confidence that they’ll deliver what their free goods. Duty-free offerings are showcased marketers who focus on enhancing theirment aid dries up in key markets. customers desire. Here are just a few of the so passengers can sample the best-selling brand’s customer experience can benefit experiential innovations taking place in 2012: items before making a purchase. Any order from competitive differentiation, increased placed is then delivered to the passenger’s seat. brand loyalty, advocacy, and revenue growth. A few bright spots Qatar Airways prepares inflight meals for There’s never been a more importantThere are, however, a few bright spots: Business Class passengers from the time of British Airways is investing in additional time in the airline industry to focus onAsia will still be the most profitable region order. The airline has also teamed up with training for its crew and equipping them with understanding customers and improvingthis year despite the impact of the Eurozone, well-being guru, Deepak Chopra, to produce a iPads to ensure the delivery of outstanding their experience.and an economic slowdown in India and “Tips to Fly Healthy” guide that can be found customer service. The iPads have apps thatChina. Intra-Asia air traffic, driven by the in the seatback pocket. Qatar will also be the enable the attendants to store and receiveeconomic growth in the region, remains first Middle Eastern airline to have launched relevant passenger details in real-time,strong and is growing. Furthermore, there the Dreamliner this summer. The aircraft such as travel itineraries and meal prefer-has been a rebound in demand from the will feature “TouchPMU,” an iPhone-like ences, to allow for more customized service.Japanese market following last year’s earth- device that allows passengers to multitask The devices also show details of the inflightquake. North America will account for nearly and watch movies. menu with pictures, as well as pre-loadedhalf of the USD $3 billion dollar global indus- information about the arrival destinationtry profits. US airlines have benefited from a Virgin America is the only airline in the US so attendants can give travel advice andrelatively strong domestic market with a that offers USB outlets in all seats and offers recommendations.focus on ancillary revenues, and sophisticated inflight WiFi. Adding personality and playful-rewards and merchandising programs. The ness to the experience, one of its aircrafts pays Delta Airlines is the first to roll out mobileMiddle East has experienced a sharp decline homage to Steve Jobs by having his famous quote bag-tracking capabilities via its Delta app forin profitability due to a heavy exposure to “Stay Hungry, Stay Foolish” painted on its smartphones, allowing passengers to trackEuropean air traffic. However, despite this, side. Another aircraft is named “NerdBird” as checked baggage in real time. The airlineit is the Middle Eastern airlines that are a result of its high number of WiFi users trav- also introduced a premium service withdriving consolidation and securing key eling on the San Francisco-to-Boston route. Porsche at its Atlanta hub for its highest-tierpositions globally. They also continue to out- Diamond Medallion customers. Selected — Stuart Green, Chief Executivespend their competitors when it comes to new A key service differentiator is the airline’s arriving passengers are escorted from the Officer, Interbrand Asia Pacificaircraft, passenger comfort, and technology. inflight entertainment and communications plane to a waiting Porsche vehicle for a ride to their parked cars or other terminals for connecting flights. 74 Best Global Brands 2012 / Airlines
  • 40. You Are What You Wear By Bertrand Chovet With consumers seeking value for money and Touching customers’ lives businesses hit by higher cotton prices, the apparel sector faces fundamental challenges. Strong brands are moving forward with shop- Fashion is moving fast, and consumers ping applications to capture and transform move even faster when making purchase purchase decisions. However, Interbrand decisions. Tracking, anticipating, answering, has noticed that shoppers expect a richer and connecting with shopper behaviors experience that reflects their taste and values, throughout the purchase journey is more which means retailers will have to rethink critical than ever. To stay in the game, brands old strategies and develop more organic, need to demonstrate value across all digital thoughtful approaches. and physical touchpoints. In March 2012, Zara reopened its flagship With the soaring price of raw materials, fast on New York’s Fifth Avenue, showcasing a fashion brands have to rethink their low-cost revamped architecture and interior scheme. strategies and respond quickly to changes in Its innovative approach to interior design the market. Due to volatile exchange rates and is based on four principles: beauty, clarity, higher labor costs in Asian markets, apparel functionality, and sustainability – making brands are also exposed to increasingly fierce the brand the best in class for shopping competition and face the prospect of losing experience. Alongside this, the brand’s Dear their competitive advantage. New York events, echoing the Dear America campaign, demonstrated that the brand has a Apparel has suffered from the recession and real feel for its customers’ interests and a flair brands are responding in various ways. Gap for building relationships with them. is reducing square footage in the US while accelerating store openings in China. Brands Sustainability and corporate citizenship are such as H&M have not increased their prices high on the agenda for all leading apparel to protect their brand position in accessible brands. H&M presented several initiatives, fashion. Consequently, H&M’s profits have such as its Conscious Collection and H&M decreased. And Levi’s launched dENIZEN, a Fashion Against AIDS. The retailer is also now global initiative to engage a new generation the world’s largest user of organic cotton. of denim buyers. It meets customer needs for In 2011, Levi’s introduced the Water<LESS value while protecting the brand’s premium initiative, using up to 96% less water to make image. Defending a premium through its jeans. The initiative also challenged behaviors, product, or experience is a key consumers to shower and launder less often. requirement for strong brands. Consumers in more than 1,300 cities around the world rose to this challenge, engaging around shared concerns. Digital developments The battle for omni-channel (seamless) Because apparel reflects the personalities retailing has begun. Zara’s online store of consumers, this category offers many ensures that the customer’s journey delivers opportunities for brands to develop deep an experience consistent with its physical connections with their core audiences. At stores. The brand’s “Dear America” campaign Interbrand, we believe the way forward is to was a key moment in building presence. By use digital and physical channels to develop inviting 50 photographers to photograph each a rich customer experience. US state, Zara gained local and national attention. H&M’s online shop features the “Dressing Room” which enables consumers to dress a virtual model in pieces from the retailer’s latest collection.76 Best Global Brands 2012 / Apparel
  • 41. Racing Towards Growth By Michel Gabriel Over the past decade, the auto- mobile industry has experienced considerable growth. Luxury car sales in China have grown by a whopping 1,550% from 45,000 units in 2001 to 736,000 units in 2011, and a re-energized North American market has been steadily posting impressive numbers. But even in 2012, the global market for passenger cars is far from saturation.78 Best Global Brands 2012 / Automotive
  • 42. In addition to China, BRIC (Brazil, Russia, which represents a genuine advance from production, makes sure that luxury isn’t sacri- no longer want to visit classic auto dealer-India, and China) and other key emerging a brand perspective. Additionally, Hyundai ficed either. Most notably, BMW is gearing up ships on the outskirts of cities. They do theirmarkets such as Mexico, Turkey, Indonesia, took a tremendous step forward in the quality to introduce the i series, which promises to research online and want to be addressedThailand, South Africa, Colombia, and vector. Thanks to YouTube, the whole world bring new excitement and attention to the at their convenience. They also expect to beBangladesh are expected to dominate the now knows that Volkswagen’s CEO, Martin EV market. wowed by a product and demand that brandssecond growth wave in the automobile indus- Winterkorn became aware of Hyundais qual- engage them in a dialog.try. As a result, most automobile brands are ity surge at IAA 2011 (i.e., “Nothing rattles Despite the breakthroughs and innovations,adjusting their respective brand positionings here”), and the impression reflects reality: adoption of new technologies will take time. The growing significance of online and mobileand the manner in which they engage with in representative surveys, Hyundai has been Even with government subsidies, models are distribution channels calls for a change inthese audiences. For these markets, constant, getting top scores for quality and dependability still relatively expensive and their range is thinking among automakers and retailersrapid change is the greatest challenge they during the past two years. Perhaps, then, it’s acceptable only in a few regions that have the toward a multi-channel distribution model.face. Many consumers in these new markets no surprise that Hyundai is one of the fastest- right infrastructure. Car-sharing in metro- Traditional distribution formats in saturatedwill be purchasing a car for the very first time, growing automotive brands in the world. politan areas with green car fleets has been markets must be reviewed and adjusted. In theand will require a fair amount of education in gaining visibility and is a great example of a future, they will merely be a part of the overallhow to benefit from and maintain their vehi- The largest automakers are beginning to cost-effective alternative. However, while retailing concept and will no longer functioncles. This is a rare opportunity for automakers inject a global perspective rather than just some cities are experimenting with promis- as the sole hub of distribution activities. Atto create a closer, lifelong relationship. a regional, product-driven approach. To ing pilot programs, clearly, leading car brands the same time, multi-channel distribution help drive consistency, the likes of Audi, will have to worker harder to arouse the models must be optimized and implementedWhether considering emerging or more BMW, and Hyundai are investing in global curiosity of consumers around green mobility for deployment in the urban centers ofestablished markets, automotive brands brand campaigns while launch and branded and motivate them to invest in cleaner growth markets.are increasingly focused on the emotional events are becoming more and more digitally technology solutions.aspect of the relationship between cars and connected, and tailored to narrower target To effectively compete in the category,consumers. Everywhere in the world, owning groups. The entire industry is taking a fresh brands will need to stay relevant — which Auto retailing anda car means more than just getting around. look at these formats, and hoping to engage means rethinking design, adopting a global the brand experienceFor some, a new automobile represents customers and prospects in a relevant and perspective, driving innovation, and prioritiz-independence, freedom, and pride of owner- personalized manner throughout the entire In saturated markets, digital media is chang- ing sustainability. They will also have to moveship. For others, it’s about confidence, purchase cycle. ing the role of dealers, but they can still have beyond brochure-ware and catalogs, andsporting the latest technology, or publicly a crucial role in retaining and acquiring new engage more directly with their audiences —showing one’s sense of responsibility to Escalating pressures, from fuel prices to customers. As technology becomes increas- not only working to pique consumer interest,the environment. Automotive brands are climate change, have pushed automakers to ingly complex, dealers can help educate new but also staying with prospective buyers untilbecoming more attuned to this emotional prioritize their sustainability efforts. Like customers in how to maximize the features purchase is secured. For the near future, theconnection, which has led many automak- many auto manufacturers, Audi is integrat- in their vehicles. Lexus, for example, has automotive brands with the ability to linkers to pioneer more effective, technologically ing sustainability into everything they do, hired new technology associates that focus digital media to real-life brand experiencessavvy ways to reach target markets and help rather than treating it as a separate issue. purely on using tools such as iPads to help new will have the greatest chance of success.prospective buyers better identify with or With a dual emphasis on performance and customers get acclimated with their vehicles.relate to their brands. efficiency, BMW continues to promote its Audi is taking things even further with their “efficient dynamics” program to offer both Audi City concept, a new and exciting format efficient engines and dynamic driving, while that combines digital product presentations Highlights 2012 Mercedes-Benz claims BlueTEC as the clean- and personal contact with dealers. Audi CityFrom an acquisition perspective, Volkswagen est diesel technology. No longer a badge or a presents the brand’s complete model rangestands out in 2011 and 2012. The German multi- mantra, sustainability has become an inte- digitally instead of physically and allows thenational took over MAN Trucks, Porsche, and gral part of an automaker’s brand identity brand to globally showcase itself in importantDucati to complete its range throughout all and is now a key driver of metropolitan areas where space is oftensegments. BMW became one of the most prof- technological progress. limited. Boosting proximity to the customeritable car brands worldwide in 2011, and many and transforming the role of the classic autoof the traditional competitors from Japan, US But some have pushed innovation even dealer, Audi City repositions the dealer as aand Korea capitalized on pent up demand. further. Toyota carved a path for hybrid customer relationship manager in an immer-These sales trends should continue as auto- vehicles while other automakers such as sive environment that engages and fascinates.makers are in the midst of a protracted launch Nissan continue to push the boundaries ofcycle that started late last year. EV technology. The Nissan LEAF continues Semi-stationary formats such as branded to demonstrate that clean technology does events, or mobile and virtual channels areIn Europe, Mercedes-Benz has revamped their not have to hold performance back while the also gaining more and more significance for — Michel Gabriel, Managingcar designs to achieve a more dynamic look, Infiniti EV concept car, that will soon go into sales. Younger customers, in particular, will Director, Interbrand Zürich 80 Best Global Brands 2012 / Automotive
  • 43. Bigging up Big Data By Josh Feldmeth Intriguing snippet: Big data is moving with tidal force through markets, reshaping strategies, kicking off new challenges and promising untold riches to those that harness its predictive power. Business services brands are rushing in to reap big rewards. The data is there but making sense of it is messy. It’s mostly unstructured and our technology infrastructure is struggling to keep pace. A dearth of technical talent exists and business managers are unpracticed in leveraging the insights to drive decision making.82 Best Global Brands 2012 / Business Services
  • 44. The rise of big data is old news. Way back There are many large services companies but Anything you can say I canin 2009, Cisco projected global IP traffic to few truly global services brands. The ones that say biggerreach 667 exabytes by 2013, with over 90% made it have found a way to scale and dimen-represented being video. Last year the IDC The problem with all this opportunity is that sionalize intangibles, like big data. Thesestimated that we created and replicated everyone is jumping into the pool. Of the companies make sense of things that are either1.8 zettabytes of data, enough to fill about 10 elements that define every great brand, hidden deep within a technology ecosystem or58 billion iPads. And they expect this number differentiation will be the one that most found in ephemeral moments of advice. Theto double every year. Mind-boggling numbers. plagues the big data hunters in the future. best global services brands have transcended You can see the business services brands the inherent limitations of their own offersThe potential to gain actionable insights in 2012 wrestling with this challenge in and found an enduring, emotional role tofrom this data is equally enormous, but the very language they use to frame — and play in the lives of customers and markets. Acompanies are poorly prepared to seize it, name — their offers. Smarter Planet. High Performance, Delivered.which represents a once-in-a-business cycle The Knowledge Effect. The Human Network.opportunity that is not lost on the best This is better, not bigger.business services brands. The potential to gain actionable insights from Business services brands are the most chal- lenging to build. As such, the ones appearing Content still reigns supreme this data is equally enor- in our ranking are tour-de-force examples ofAfter spending billions over the past years mous, but companies are branding at its best.acquiring big data capability, the majorbusiness services brands have begun to poorly prepared to seize it,consolidate their offerings through thought which represents a once-in-leadership. All of the top business servicesbrands — Accenture, Cisco, IBM, Oracle, SAP, a-business cycle opportunityand Thomson Reuters — released major pieces that is not lost on the bestof IP or founded new conferences in 2012, business services brands.aimed at explaining how their solutions willdrive returns on big data. IBM talks about “Big Data Analytics.” It makesThought leadership is a smart play here. Why? sense: It’s not just data, but the analyticalTo win in this fast-growing space, business wherewithal to do something with it.services brands must quickly deliver on the Accenture takes it further with “Big Datathree pillars of brand strategy: authenticity, and Next-Generation Analytics,” recastingrelevance, and differentiation. Acquisitions plain, old analytics as yesterday’s news. Not toprovide the authenticity through which these be outdone, Oracle launched “Big Data andbrands become credible players in the space. Extreme Analytics,” a conference title so awe- — Josh Feldmeth, Chief ExecutiveThought leadership, then, transforms these some it has the potential to rocket statisticians Officer, Interbrand New Yorkcredible, authentic technical capabilities into to what Google’s chief economist, Hal Varian,something that is relevant to customers. recently dubbed “the sexiest job of the nextIt demonstrates the ability to solve the decade.” The name game will surely go on ascustomer’s most challenging business this nascent market evolves. It’s fun to watch,problems and create value. Investing in IP but there is a warning here. Brands must bealso drives these brands’ presence as digital/ careful to resist the temptation of verbal one-social technologies continue to place a upmanship in favor of language that builds onpremium on sharable content over traditional the authentic truths of their proposition.forms of advertising and engagement. Where bigger doesn’t equal betterBig data is still a hot topic and top of mindfor many CTO/CIOs. The services brands that This is all very big stuff, as a white paper onnot only bring capability to the table but help Cisco’s site reminds us: “For big data analyticscustomers get their heads around the topic there’s no such thing as too big.” Maybe. Butwill win. Content is the essential glue that in the world of global brands, being big doeswill bind the services company to customers not go far enough.as they both navigate the big data wave. 84 Best Global Brands 2012 / Business Services
  • 45. The New Consumer and the Science of Shopping By Fred Richards and Bruce Dybvad As a group, the fast-moving consumer goods companies on our 2012 Best Global Brands list increased in brand value over last year. For many of these industry leaders, ongoing product innovation and the continued expansion into new geographic markets drove top line business. However, these companies compete in a market with a daunting pace of change led by the new consumer — seemingly half human and half digital.86 Best Global Brands 2012 / Consumer Packaged Goods
  • 46. Like a sleeping volcano, new behavioral brand and its community, with videos and private labels not only competing, but accru- certainly appear that the demands on pack-trends will inevitably disrupt the current images of candy-covered projects from bundt ing true brand loyalty. Even a popular, brand aging to help with in-store “way-finding”landscape. Brands keeping up with the pace cakes to ukeleles. Skittles is fully alive in its like Kellogg’s, known for its honesty, isn’t and differentiation will significantly reduce.of change may find themselves vulnerable. digital incarnation. completely immune to the consumer’s will- But will the nature of physical shoppingWinning depends on leading the pace. The ingness to try less expensive alternatives. experiences change? And what of the on-linegood news is that significant untapped oppor- Around the world, consumers voice ever- To stay one step ahead of the private label experiences themselves? Many were createdtunity lies in the creation of a brand strategy louder concerns over health and obesity, competition, it too, introduced many new with download speed restrictions in mind,that integrates a digital strategy informed by demanding healthier and more flavorful fare, products this past year, including a gluten- but with full HD and 3D always on and atconsumer insight. whether from cereal, frozen dinners or soup. free cereal. To win back market share, your fingertips, couldn’t we be on the verge It’s been an eventful year for Campbell’s, brands look for news ways of reaching of a new paradigm in on-line shopping? certainly, faced with the weakening popular- consumers, often in the form of expanding Perhaps packaging will become functional Change is driven by consumers, ity of soups, the failure of its low-sodium into emerging markets. versus aesthetic — with designers trading the not technology offerings, and a serious packaging problem. pursuit of shelf impact for the ideal in-homeMuch has been said about the new con- Its soup cans are made partly with BPA dispensing package. Perhaps we need to The tenuous future ofsumer — they’re informed by online reviews (Bisphenol A), a chemical found in plastic, rethink the whole way people will buy? package designand corporate transparency, empowered by which Canada has declared a toxic substance. Forward-thinking brands are well advised toprice competition and have redefined brand The brand’s leadership team conducted a Consumer goods makers traditionally look undertake this challenge as a thought experi-loyalty. But the newest new consumer is comprehensive strategic business review this to new packaging to win trial and share. ment, if not an outright R&D initiative. Theeven more challenging: the Millennial, past year, emerging with new strategies to Kleenex introduced charming boxes, shaped trend is already underway.age 25–35. This tech-savvy group tends not aid growth through the next decade. Plans like wedges of watermelon and other fruits,to shop in traditional mass or supermarket include alternative packaging, bolder to increase summer sales. Heinz is still riding As always, there’s more risk in playingformats where FMCG companies compete via flavors — not to mention an engaging tribute on the good feeling derived from its 3-ounce defense than innovating a new offense.breakthrough package design and product to iconic Pop artist Andy Warhol to commem- “dip & squeeze” carry-out ketchup packet, a Yes, there’s always a chance that in pushinginnovation. Instead, Millennials are attracted orate the 50th anniversary of Warhol’s famed consumer-pleasing innovation. In answer to the envelope, a brand may make a packag-to distribution outlets that are less conven- piece “52 Campbell’s Soup Cans. ” issues of sustainability, both brands found a ing or public relations error that lights up thetional and more convenient. You’ll find them solution in packaging. Kleenex launched an internet. But top brands recover quickly.online, at food trucks, in bodegas, and other initiative to reduce its UK products 33 percent The companies named “best brands in the Not going away: the threat ofgrab-and-go places. Even the most engaging in size to use less material, require fewer world” need to be the leaders that others can private labeland effective aisle experience in the super- truck miles, and reduce carbon emissions, only hope to copy — they must elevate themarket might totally miss this influential While national brands still make up the vast storage costs, and shelf space. Heinz now game, their sense of innovation, and theiryoung target. majority of US consumer goods purchases, makes up to 30 percent of its packaging from digital brand expression. Doing so requires private label goods are set to double their plants instead of petroleum. that they never forget the “consumer” inTake, for example, Gillette’s impressive suc– market share to half of all goods sold in super- consumer goods, and avail themselves ofcess in creating a “guy aisle” in stores, devoted markets by 2025 (Rabobank Report, 2012). US However, along with their new shopping the modern methods of shopper scienceto men’s grooming. It makes the brand a retailers have taken a page from the leading behaviors, consumers bring with them the and analytics to search for fresh connectionscategory hero, synonymous with shaving and stores of Europe. After studying the success early warnings of a prodigious challenge: with their customers.personal care. Contrast that with the irrever- of companies such as Sainsbury’s and Tesco, subscription replenishment. The promise ofent and funny, not to mention cheap, appeal they’ve refined their private labels to offer never running out of toilet paper has becomeof the Dollar Shave Club.com, the $1 monthly both cost savings and quality across many part of the changing customer journey.blade subscription service. Is it an amusing categories; shoppers feel good about buying As more people forgo trips to the store andside player or an indicator of tomorrow’s them even if they don’t necessarily need to simply sign up at Amazon, what’s the impactmarket? Food for brand thought. save money. on the packaging design community? It certainly increases the pressure to bring theGiven that consumer relationships straddle Manufacturers are fighting back by creating brand to life digitally. Is it that we are doomedthe physical and the online space, clearly, a new products. While private drugstore labels to the limits of a one-inch-square jpg on thedigital strategy has to be more than a website, might be keeping the CEO of L’Oreal awake at website’s page, or should we consider thea coupon, and a Facebook post. Too few night, the brand’s research and development changes in buying behavior to create newconsumer goods makers bring their brands teams offset the threat by developing dozens ways to educate and entice? — Fred Richards, Executive Creativeto life digitally. Brands do have personalities of innovative beauty products to stay on top Director of CPG, Interbrandthat consumers want to engage with, of the market. Health care and pharmaceuti- How could one inch become the entry point Cincinnatias demonstrated by the multiple-millions cal goods giant Johnson & Johnson spent the to a whole experience? How does a designer Bruce Dybvad, Chief Executivewho adore Wrigley’s eccentric candy brand, last year climbing back from product recalls bring brand equities to life when the nature Officer, Interbrand Cincinnati &Skittles. Visual wit flows between the that cost them consumer trust, only to find of shopping is changing so fast? It would Interbrand Design Forum 88 Best Global Brands 2012 / Consumer Packaged Goods
  • 47. What Traditional Companies Can Learn from Technology Companies By Robin D. Rusch Today’s companies need to make innovation a higher priority, or more ingenious minds will capture tomorrow’s wealth. Time and again we’ve seen it happen — particularly in the tech sector where brilliant startups and breakthrough ideas routinely shake up the field, and fortunes are made seemingly overnight. Tech companies know they’ve got to stay at the cutting edge, or get left behind. But now, as markets and expectations continue to change, traditional brick-and- mortar businesses would do well to follow in their footsteps and systematically redirect a percentage of their profits toward innovation.90 Best Global Brands 2012 / Digital
  • 48. In the continuing quest for business growth, All this focus on stock price reduces the likeli- against a lot of people, Bezos said in an ” rather than constantly trying to return moneymany companies have come to rely too hood of spending money on anything risky, interview in Wired last year. “But if you’re will- to shareholders or investing large sums toheavily on cost cutting. In the past few as generating consistently high margins ing to invest on a seven-year time horizon, position themselves against competitors,decades, for example, outsourcing has takes priority over investment going back you’re now competing against a fraction of companies could invest in ideas and long-become increasingly common: Headquarters into the company. R&D, new product develop- those people, because very few companies are term strategy that would help them. In time,plays the role of architect, while lower-cost ment or idea generation, can be expensive willing to do that. Just by lengthening the shareholders would be richly rewarded too.markets execute or replicate, performing and there’s no guarantee of success. Yet, the time horizon, you can engage in endeavorswhat is generally lower-skilled work. In basic irony is, it’s practically impossible to meet the that you could never otherwise pursue. At The alternative is to chase short-term stockprinciple, this arrangement is not dissimilar rising expectations of shareholders and create Amazon, we like things to work in five to price growth, run the company into theto the age-old hometown business model, wealth unless companies innovate. seven years. We’re willing to plant seeds, let ground, regroup, and start over. Some organi-with management upstairs and workers on them grow — and we’re very stubborn. ” zations like construction companies actuallythe factory floor. These days the factory floor That’s why technology companies cham- specialize in this. However, there are numer-is a lot farther away — and that, as the news pion innovation. Google’s 20% program is Amazon’s patience, commitment to innova- ous problems with this strategy. In fact, onefrequently reminds us, can be problematic. a good example. The 20% time is really the tion, and customer focus may explain why of the areas impacted most is brand. BrandsOutsourcing not only poses supply chain risks key to innovation at Google. They’ve hired its growth is double that of e-commerce are costly and often time-consuming to build.that can damage a brand, but it’s also making the best people they can find (arguably some rates overall. Of course, one could argue that Any gains acquired by turning around yourthe strategic differentiation between compa- of the best available), and said “follow your Amazon can afford to protect its vision and company under a new name would be offsetnies narrower and narrower. passions, and make cool stuff.” Does it yield defend innovation because it’s so large, but by the time and money spent rebuilding the brilliant solutions? Not always. Google’s had there are plenty of other large companies brand identity every other year. It’s far betterThis lower-cost work base generates more its share of duds. But this method of (micro) that are far more focused on short-term gains in the long term to innovate and create some-profit for the company, of course — but where crowdsourced innovation has been extremely than vision and long-term growth. Tech thing the world actually needs or desires.is that money going? Ideally, this could be effective for Google. Think Google News, companies thrive because they are buckingre-invested to secure against the future. Google Reader, Google Trends, and Google the short-term growth trend and proving Many companies fall behind the innovationHowever, most public businesses are not Maps, and you’ll get a sense of what that 20% that the long-term good of their organization curve not for failing to keep up with competi-putting these savings into new ideas, inno- did for Google. As of now, these applications and brand is more important than satisfying tors, but because they’ve failed to embrace thevations, R&D, or other kinds of competitive only generate about 1.5% of Google’s total investors on a quarterly basis. future. Going forward, companies willplanning. Instead savings go to activities revenue (about USD $50 million), but we must fare better that undertake the challenge ofaimed in part at increasing share price. consider the magnitude of the growth oppor- When companies institutionalize innovation innovation instead of focusing myopicallyThere is nothing inherently wrong with tunity, especially in the long term. as Google and Amazon have, they’re more on unsustainable growth strategies. Thesewanting to increase share price, but when likely to generate new products, services, “radical innovators” may not always win,this becomes the primary focus, the long- Since its stock market launch in 1997, Amazon and customer experiences. They’re also more but when they do, they win big — and they’llterm health and sustainability of a brand has also doggedly adhered to a long-term likely to improve performance, invent new triumph over the long haul.are put at risk. vision and resisted bowing to shareholders’ business processes and models, lower cost quarterly demands. “It’s all about the long structure, and open up new business oppor-While stockholders are sometimes referred to term, CEO Jeff Bezos said then. He also ” tunities. Interestingly, whenever (usuallyas owners of the company, their intent and warned shareholders that the company might ex-) employees say Google’s 20% program ispriorities are not the same as an owner’s. “make decisions and weigh tradeoffs differently being threatened or is a sham, the discus-Stockholders also aren’t in it for the long than some companies. Amazon’s management ” sion always returns to how important it is tohaul. Fifty years ago, shareholders were and employees, he insisted, are “working to protect and defend innovation and R&D at acontent with earnings that were slightly build something important, something that tech company if it is to survive the future.higher than the cost of the capital, and they matters to our customers, something that we And indeed, innovation is probably the besttended to hold on to stock for an average of can tell our grandchildren about.” way to futureproof any company.eight years. But changing times and chang-ing market conditions sparked a thirst for The company takes a beating from investors If that’s the case, why do we think innovationhigher returns. Now, investors demand during earnings reports, and Bezos’ outlier is more important for tech companies thanhigher growth targets and, on average, sit position baffles many mainstream managers, offline businesses? Sure, technology changeson stock for a mere four months. Further, but economists tend to laud the strategy, rapidly, but so can competitors and consumermost managers of public companies are which offers economies of scale and weakens interests. Therefore, all companies shouldcompensated by stock. This means they also (or eliminates) competitors. Borders has been be evaluating their products, services, andhave an incentive to see the stock price rise, pushed out of business, Barnes & Noble is methodologies to ensure everything from — Robin Rusch, Chief Executiveas opposed to laying down a cogent long-term struggling, and Best Buy has taken a hit. “If workplace practice to business methodology, Officer, BrandWizardplan for steady, sustainable growth. everything you do needs to work on a three- and product relevance is still competitive year time horizon, then you’re competing and in line with the targeted customer. Also, 92 Best Global Brands 2012 / Digital
  • 49. The Time of Tough Choices is Upon Us By Tom Zara 2012 marks a magnificent yet dubious human achievement: populating the Earth with over 7 billion inhabitants. It’s estimated that 2 billion more will join our ranks by 2052. With the population issue comes climate change, threatening to radically alter life on our planet. These facts make the relevance and poignancy of “sustainable” existence a sobering reality. Unless we dramatically improve the way we procure and produce energy and responsibly deal with greenhouse gases and other pollutants, it will be impossible to satisfy the relentless global demand for reliable, affordable energy without also creating a global catastrophe.94 Best Global Brands 2012 / Energy
  • 50. As the world roils in the aftermath of Fuku- companies. Amplifying these risks, the audiences stand out in the category. The rise The rising demand shima and debates hydraulic fracturing and ubiquity and accessibility of social media has of Shell and the decline of BP illustrate theAccording to BP’s Annual Report 2012, the Arctic drilling, a sense of discomfort with given consumers increased power to deter- power and the failure of strong brand manage-growth in world oil consumption slowed in current energy choices is growing. This mine the fate of a brand — whether they have ment in a category ripe for leadership andOECD (Organisation for Economic Co-opera- sentiment, combined with higher oil and their facts straight or not. strength. Energy companies, as we know, aretion and Development) countries in 2011, but gas prices (and falling costs of alternative not non-profit charities, but profit-makingrobust growth in China and other non-OECD energy technologies), have helped drive solar In order to build trust, energy companies entities that are under obligation to maximizenations continued, partially offsetting the energy installations across the US and, of need to become more engaged and respond profits for shareholders. We who specializeoverall slowdown in demand. Though effi- course, Germany (since announcing it would to the concerns of consumers. Rather than in managing brands, of course, want to seeciency has improved, the National Bureau of abandon nuclear power last year). India, relying on one-way communication, essen- every brand succeed, but at some point, weStatistics reports that China’s energy use rose Spain, and the UK are also making significant tially telling consumers what to think about have to ask ourselves — what kind of worldat the fastest pace in four years in 2011 with investments in renewable energy. In fact, their brand through feel-good commercials are we going to be managing brands within?consumption climbing 7%. To put this rapid underscoring grid vulnerabilities, recent or a clever logo refresh, energy companies The urgency for sustainability is undeniablegrowth in global perspective, if China alone blackouts in India were summed up in one need to interact with consumers and take and, the truth is, we do not have to prosper atwere able to achieve First World living stan- telling headline: “coal failed, solar delivered.” advantage of social media. To gain credibility, the expense of people and the environment.dards while everyone else’s living standard While the move toward renewables is still in energy brands must show consumers that There are other, smarter ways — and we mustremained constant, our total human impact its infancy, this trend is definitely on the rise. they are not monolithically uniform in their find them. While our energy future stillon the world would double. attitudes. It might, for example, be smart remains somewhat unclear, one thing is sure: In general, consumers have low confidence to launch discussions with social and envi- How the world’s leading energy brands carryYet, marketplace realities, global population and satisfaction with energy brands because ronmental organizations and associations of the standard for innovation, consumer trust,trends, global urbanization, and geo-political of rising energy costs and a justified percep- indigenous people, implement their recom- environmental stewardship, and responsibletensions around energy will not abate. The tion of irresponsible actions regarding the mendations — and make that public. In short, practices will shape their relevancy and legacyUS government Energy Information Admin- environment. Global research conducted energy companies that behave and commu- as vital components of societal well-being inistration predicts that by 2035, global energy by Ernst & Young in 2011 found that, in nicate like progressive, socially responsible the years to come.use will balloon 53%, fossil fuels will be the the majority of the 13 countries surveyed, organizations — and take the right stepsdominant fuel of choice (with renewables consumers’ relationships with the largest during this pivotal time — may very wellconstituting just 14% of the world’s overall energy providers were “at best…transactional, outcompete less progressive companies in theenergy consumption), and that most renew- cold and distant; at worst, hostile. These ” years to come.able energy is likely to come from wind negative perceptions tend to undermine aand hydropower. brand’s efforts to secure a more meaning- Power companies might also benefit from ful relationship with its customers. There is extending their product lines, though merelyThe most troubling fact that we must consider, currently a disconnect between what energy having the capabilities is not enough torather than scarcity, is that further fossil fuel companies say and what they do — and that ensure success. Consumers have to trust thereserves will be deeper underground, dirtier, gap must be bridged through real efforts to brand. If they don’t give the brand “permis-and more expensive to extract or process, adopt environmentally sensitive practices, sion” to supply other services, they willwith higher environmental costs risks. clean up accidents if they occur, address look at an integrated offer with skepticism. health impacts, and invest in clean energy. It must be kept in mind that brands create differentiated choice for customers beyond Challenges for energy brands price. Price certainly matters to consumers, Building trustMore complicated extraction and processing but it’s not the only consideration. Studiesalso translates into higher prices. According Brands in this sector need to appreciate the have shown that most consumers don’t mindto BP’s most recent annual report, average role of the public in determining their “social paying a fair price for energy, particularly — Tom Zara, Executive Directorcrude oil prices in 2011 were significantly license to operate. Unlike other fossil fuel ” “green” energy. of Strategy, Interbrand New Yorkhigher than in the previous year, exceeding companies with longer supply chains and a & Global Practice Leader of$100 per barrel for the first time (in nominal less public face, oil companies sell their fuel Shell is a strong brand in this category, at Corporate Citizenshipterms) and natural gas prices diverged glob- to consumers at gas stations, thereby making least for the time being. Despite a seriousally. In the short-term, this may be good for them an easier target for boycotts and blame. oil spill off the coast of Nigeria, Shell is stillthe quarterly profits of energy companies, Another unfortunate disadvantage is the considered a premium brand that ensuresbut it’s not necessarily good for energy brands tendency of consumers to lump all brands in best quality. In general, brands that live up toor the long-term needs of businesses and a sector together and condemn them more their promises, show genuine commitmentsconsumers that are currently dependent on or less equally, regardless of real differences to safety and sustainability, and regularlyfossil fuels. in the track record and polices of individual engage and communicate with their target 96 Best Global Brands 2012 / Energy
  • 51. Slowdown in the Fast Lane By Alejandro Pinedo As Interbrand looked ahead to what 2012 Building consumer engagement would bring for fast-developing markets, “slowdown” was the buzzword that seemed Sports events are one way in which brands to best describe the economic situation. The have effectively established consumer economic growth of the BRIC countries has connections and positioned themselves in indeed slowed, and the reasons differ from large-population, fast-developing markets. country to country. Governments are taking Sports events such as the 2012 UEFA European assertive measures to stimulate economies, Football Championship have provided golden including interest rate reductions, tax incen- opportunities to establish positive emotional tives, and providing easier access to credit. connections with consumers. While the economic expansion has decelerated, P&G’s “Thank You Mom” campaign, which growth potential still exists and emerging aired in emerging markets, demonstrates how markets continue to be an interesting arena brands can connect with global audiences. for brand development. Competition in some With high visibility and a strong emotional of the larger developing countries is fierce. resonance, events enable brands to connect with fans in a new way. This becomes more valuable in high-population, developing FMCG giants battle for growth countries where, due to low internet penetra- Fast-moving consumer goods giants Unilever tion and fewer communication channels, and Procter & Gamble (P&G) were featured there are fewer opportunities to reach a large in a recent article in The Economist. It showed number of consumers in a non-intrusive way. how both companies are competing aggres- sively not only against each other, but also Respecting local preferences with local brands in countries like China, Brazil, India, Bangladesh, Pakistan, and Another interesting story is developing in Sri Lanka. Agile and effective innovation India, involving Coca-Cola and the leading among local competitors has proven to be local cola brand, Thums Up, which enjoys a critical factor that Unilever and P&G have more than 40% of the local market share. had to face around the world. When the Indian government introduced rules limiting foreign ownership of local companies Both companies depend on developing in 1977, Coca-Cola and Pepsi pulled out of the markets to achieve their long-term growth country. Thums Up was launched as an alter- objectives. P&G expected to add 1 billion new native to Coke and was an immediate hit. customers by 2015, while Unilever wants to double its revenues by 2020, with 70% of sales Coca-Cola returned to India in 1993, bought generated in developing markets. Thums Up, and tried to use the local brand to compete against Pepsi. More recently, Coca- Large emerging markets are particularly chal- Cola tried to kill Thums Up, pushing itself as a lenging because they have consumers across replacement. Yet local consumers won’t give up the income spectrum, all with ample access the Thums Up brand. to information via the internet. In order to grow in these markets, both Unilever and International marketers must not underesti- P&G invest a great deal of time deciphering mate the importance of consumer knowledge consumer preferences to gain local relevance. and preferences in fast-developing markets. Companies that ride roughshod over local Successful multinationals realize that build- preferences do so at their peril. Opportunities ing the corporate brand is as important as exist for those brands that can build meaning- building product brands in emerging markets. ful, authentic connections with consumers.98 Best Global Brands 2012 / Fast-Developing Markets
  • 52. Rebuilding Trust in Troubling Times By Carola Jain and Mike Rocha The financial services industry has been through an incredibly turbulent period since the 2008 financial meltdown, and as banks continue to lurch from crisis to crisis, the adversity shows no sign of letting up anytime soon. In the past year alone, UBS had a € 2 billion Delta One problem; MF Global went bankrupt and lost over $1 billion USD of clients’ money; J.P. Morgan Chase & Co reported a $4.4 billion trading loss in its chief investment office; and Barclays is the first of a number of banks to be tainted by the evolving Libor scandal.100 Best Global Brands 2012 / Financial Services
  • 53. Libor, according to MIT Professor of Finance, an industry leader that might clearly show a accomplish that, financial companies will Opportunities around the worldAndrew Lo, “dwarfs by orders of magnitude differentiated strategy. While clients overall need to clearly define what their brands standany financial scam in the history of markets. ” are continuing to demand more transparency Emerging market growth is another global for, and communicate those values in a wayRegulators in at least seven countries are and accountability, on the B2B side at least, it trend that will continue to provide huge that is relevant and credible. It will also beinvestigating the rigging of the Libor and other seems that the majority see safety in size and opportunities for financial brands over the necessary to involve managers and employ-interest rates, and around 20 major banks will continue partnering with global players. next ten years. Opportunities exist at each ees in a process of engagement, executinghave been named in investigations and court level of an emerging market society. Through communication consistently across allcases. This still-unfolding story that has re– increased penetration of the unbanked, finan– touchpoints and creating metrics to galvanize Reassuring and connectingvealed decades of abuse, has financial experts cial services organizations can offer a wider management, manage performance, and with consumerscalling for an overhaul of how the rate is set. range of increasingly sophisticated products monitor progress. The point is to use all the From a consumer point of view, trust is at and services to the growing middle classes, as tools at your disposal, including new digitalThe old growth tricks of consolidation are an all-time low, and willingness to consider well as through private banking to the grow- tools, to make meaningful connections withhardly defensible given the general notion alternative providers at an all-time high. ing number of wealthy entrepreneurs. consumers that can be nurtured over time.that large banks are not only “too big to fail” This is creating significant opportunitiesbut also “too big to manage. The Libor ” for new entrants, particularly trusted brands Western brands can’t simply assume theyscandal, in particular, has intensified pres- from other sectors. We expect this trend to will be able to effortlessly expand into thesesure on Wall Street to enact reform. Aside continue and accelerate, improving choice new markets, as they will face regulatoryfrom potentially costing banks tens of billions and increasing the role of brand as competi- restrictions and growing competition fromof dollars in penalties and legal settlements, tion intensifies. emerging market-based international groups,the scandal is further damaging the banking possibly even becoming targets for acquisi-industry’s already battered image. Analysts The ongoing digital revolution is also facilitat- tion themselves. While there is concernworry that it is eroding the faith of investors ing change in the industry, empowering about the size of banks in Western markets,and consumers whose confidence in Wall consumers, expanding their consideration in emerging markets the race for consolida-Street has been shaken by continual scandals sets, and enabling greater opportunities to tion continues, with many players seekingand unsettling stock market losses. compare value. A sense of more options and initially to become regional powers. We have — Carola Jain, Senior Director more personal control over choices, coupled no doubt that, in time, emerging-market of Strategy, New YorkThe failure of the industry to put its own with the above-mentioned trust deficit, is financial brands will break into the Best Mike Rocha, Global Directorhouse in order means that politicians and also speeding a trend toward declining loyalty Global Brands’ top 100. of Brand Valuation,regulators will be more inclined to step in. and less inertia. Consumers are increasingly Interbrand LondonIn the short- to medium-term, ongoing willing to make a switch, creating further In the next year, we expect that most finan-regulatory change — of which we have likely opportunities for new market entrants. cial services institutions will be primarilyonly seen the beginning — is redefining the focused on restructuring, grappling withenvironment within which financial brands Financial services has been slower than regulation, and on the constant hunt forcan operate. Financial institutions’ capacity most industries to embrace the transfor- revenue. Banks will be looking for newto generate returns above the cost of equity mational potential of digital. Outside of revenue sources, as will governments thatis already under extreme pressure, so busi- financial services, consumers are coming are introducing new taxes that could impactness strategies and models will have to evolve to expect personalized customer experiences corporate customers and consumers alike.rapidly — and brand strategies will need to due to their experiences with retailers likeevolve with them. Apple and Amazon, which have raised the Though it doesn’t necessarily make the digital bar. Consumers increasingly expect a path forward easier, it helps to rememberWith stock prices sliding and investors’ inter- rich and engaging experience from all of the that times of great change — and great chal-est waning, uncertainty weighs heavily on brands of their life, including their finan- lenge — are also times of great opportunity.the sector, but the picture may not be as bleak cial service providers, with content that is The power of brands during such turbulentas it seems. The demand for financial services tailored to their profiles and individual finan- times is their ability to act as the centralremains strong; wealth is being generated in cial needs. As this demand grows, financial organizing principle for their businesses,commodity countries; emerging markets and services brands will need to develop tools establishing clear values and principlespension funds continue to grow. that can mine data to build more personal, which can guide future strategies and behav- relevant customer profiles at higher levels of iors internally, and, over time, influenceAnother reason for cautious optimism is that sophistication than today. In addition, this external perceptions.corporate customers have broadly stood by experience will need to be deployed acrosstheir banks. However, it must be pointed out all of the increasing number of channels For consumer banks, nothing is more impor-that this loyalty is partly due to the absence of and touchpoints. tant right now than rebuilding trust. To 102 Best Global Brands 2012 / Financial Services
  • 54. Branding’s High-wire Acts By Bill Chidley Comprising both the lead position and 15 of the 100 Best Global Brands on this year’s list, food and beverage brands are perhaps the world’s most aggressive marketers as a group. Today, they are also the most under siege, as they experience increasing political pressure as symbols — and perceived causes — of health-related social maladies. Like high-wire acts, they amaze us with their spectacular abilities to delight our senses and entertain us as they always seem one slip away from disastrously negative media coverage.104 Best Global Brands 2012 / Food and Beverage
  • 55. The tension between these forces of doom consumption and pitted brands against each markets to the faster-growing emerging Drinking to the healthand delight make these some of the hardest other for share. In the near future, we will see markets, and is planning for half of its of alcoholbrands to successfully manage, yet they seem brands battling for an ever-shrinking piece of sales to come from developing economiesto rebound and even advance in the face of the market if their offerings are not adjusted to Like soft drink and fast food brands, alcohol within the next four years. Now that they’veadversity. This summer, both Coca-Cola and reflect evolving preferences, and if consumer brands have survived their share of falls from acquired Shui Jing Fang, maker of a tradi-McDonald’s utilized the London Olympic relationships are not successfully managed to the high wire over the years as well. Though tional spirit known as baijiu that dominatesGames as a world venue to showcase their encourage trial and discourage defection. there has been long-time awareness of the the Chinese market, Diageo hopes to developlatest approach to staying exciting and rele- risks associated with consumption, alcohol baijiu into a global brand.vant, in spite of the controversy surrounding As brands like Coca-Cola, Pepsi, McDonald’s, brands continue to face challenges fromtheir sponsorship. While critics have pointed and KFC balance on the high wire, there are legislators and the medical community. For The food and beverage brand space willout that McDonald’s and Coca-Cola’s offerings other acts that are eager to steal the show. example, a report published by the House of continue to be an exciting one to watch as theconflict with the athletic Olympic ideal, the The energy drinks category looks as though Commons Science and Technology Committee big players flex their marketing muscle andtwo brands placed emphasis on their health- it is here to stay, and remains above the fray in the UK this year recommends that adults thrill us on the high wire of the consumerier options and maintained that complex of controversy for the time being. Brands like abstain from drinking for two days a week. stage. We expect to see more innovationhealth issues cannot be solved by compa- Red Bull (globally) and 5-Hour Energy (in the The report and its findings seemingly justify in products, digital marketing, and socialnies alone. A persistent drum of negativity, US) are sourcing volume and occasions from a new push for legislation aimed at reduc- media, as well as agile marketing in devel-however, ultimately cannot be good for any stalwart coffee and soft drink brands by offer- ing consumption in the UK. Additionally, oping countries as these brands continue tobrand or sector. The proverbial elephant in ing a benefit focused on consumers’ on-the-go Russian beer will lose its classification as a grapple with thorny ethical issues, healththe room, namely health concerns, may not lifestyles. These brands are drawing many “foodstuff” this year. The new classification concerns, and growth challenges that areimpact the choices of core users and loyalists, imitators and capturing users beyond the will impose limitations on beer marketing unique to their sector.but it does disrupt the stream of potential early-adopting younger market. Starbucks, by aligning it with spirits, which have beennew users who have not yet formed habits for instance, is responding to the trend banned from TV for years in Russia, except onand are open to alternatives. with a line of natural energy drinks called pay channels. Refreshers. Differentiating their “beverage innovation” from competing energy drinks, Despite these setbacks, alcohol offers on Evolving the soft drink and Starbucks is touting the benefits of green this year’s list are looking for growth by fast food offers coffee extract, a natural source of energy strengthening their brands and seekingSince the margins involved in selling food derived from coffee, but without coffee flavor, ways to drive preference. Mid-tier brandsand beverage brands are slim, it is imperative that gives their fruity new drinks a boost. like Budweiser, for instance, are still heavilythat these brands continually attract new On the food side, premium offerings in the reliant on promotional activity to drive salesconsumers into their categories and, of burger segment like Five Guys in the US and and periodic redesigns of their light beercourse, to their specific brands. In order to Canada, and global chicken chains like South variants to keep the category fresh. Distilledachieve this, food and beverage leaders like Africa’s Nando’s are capturing more share beer and spirits continue to see dispropor-Coca-Cola and McDonald’s will have to tune from global brands. tionate growth in developing markets asinto the concerns of the public and respond evidenced by AB InBev signing with FIFA toto them. More than ever, consumer conversa- Overall, the model for growth in food and be the official beer sponsor of the 2018 Worldtions are driving the images and perceptions beverage remains unchanged and is derived Cup in Russia. In the US, unemployment hasof brands, which means food and beverage from three simultaneous investment areas: hampered beer sales and intensified price- — Bill Chidley, Senior Vice President,companies will have to focus more on under- more accessibility and marketing presence in related promotions, making growth difficult. Interbrand DesignForumstanding, engaging with consumers, and the underserved parts of the world; product China is currently the largest beer marketeven changing course if a product or practice innovation to reflect the unique preferences and accounted for 43% of the world’s volumeproves to be unpopular. of diverse consumers; and more experien- growth. However, beer pricing remains tial innovation in packaging and delivery low in China and profit margins are thin,Soft drinks have been a rite of passage among channels in mature markets. Coca-Cola is which makes it challenging for global brandsthe youth cultures of modern societies for investing billions of USD in India to increase to invest.generations, and fast food has been the presence and preference and outpace competi-go-to rescue and even “fun” meal solution tors, and sees China eventually becoming its China is also the focus of growth for classicfor families as well, which legitimizes these biggest market. McDonald’s is continuing to spirit brands like Johnnie Walker (that boastscategories for future generations. However, invest heavily in renewing the brand experi- the highest brand value increase of alcoholit is becoming less and less likely that these ence in its aged fleet of restaurants in the US brands at 12%) and Hennessy, which havetraditional points of entry will be the “guaran- as it simultaneously tries to appeal to new become two of the top three brands in thatteed” new consumer pipelines that they have mothers and silence critics with a healthier market. Diageo, for instance, is shiftingbeen. The Cola Wars of the 1980s assumed cola Happy Meal. focus and investment from the mature 106 Best Global Brands 2012 / Food and Beverage
  • 56. Continued Erosion Of The Blockbuster Model By John Breen Over the past year, InterbrandHealth has observed the progress of two notable trends in the healthcare sector. Firstly, the continued loss of exclusivity for a number of notable “blockbuster” pharmaceutical drugs, heralding a change to the industry’s traditional brand model; and secondly, the increasing role of brand in the hospital and health delivery industries.108 Best Global Brands 2012 / Healthcare
  • 57. In the past 12 months, blockbuster brands happening, with pharmaceuticals pro- In Europe, public health networks aresuch as Lipitor, Plavix, Singulair, and actively identifying ways to redefine their facing extreme pressures and challengesLexapro have all lost patent exclusivity. brand offerings. as economic decline continues alongsideBy 2015, a number of important biologic growing demand for services. As a result,brands that comprise a large proportion of The industry must also find new ways to community-based services are growing inthe estimated USD $140 billion global biolog- maximize the residual brand value of exist- importance, and competition for privateics market — including MabThera, Aranesp, ing assets, as pipeline relief may not come hospitals is increasing considerably now thatand Herceptin, are anticipated to lose anytime soon. Companies continue to try to cheaper European travel costs are opening uppatent protection, creating a potentially squeeze as many uses as possible out of their opportunities for more patients to considerlarge market opportunity for biosimilars current assets. As part of this strategy, they treatment locations beyond their local area.(imitations of biologic products with must measure and manage their brands toexpired patents). drive appropriate business decisions. Now, more than ever, it is critical to culti- vate the ability to communicate positive,Perhaps more importantly, a number of Proactive brand management will be of reassuring messages, make an emotionalanticipated potential blockbusters have particular importance to the innovators of connection, and create lasting relationships.continued to face delays or clinical failure. biologics, where physician and patient uncer- Hospitals face the same organizational, — John Breen, Executive Director ofMore stringent regulations and the dearth tainty surrounding biosimilars could present financial, and consumer issues as any busi- Analytics, InterbrandHealthof new products have shifted the nature of an opportunity to capture greater revenue ness, but their success depends on a uniquelyinnovation in the healthcare industry after patent expiry. Unlike many drugs, diverse range of stakeholders; this includestowards more niche opportunities. Recent biologics cannot be precisely replicated, current and potential patients, employees,drug approvals tend to be more specialized making biosimilar development more costly payers, donors, employers, government,therapies targeted at smaller sub-groups and less predictable than that of generic volunteers, and the media. Hospitals alsoof patients. drugs. The relatively small price gap between specialize in delicate and emotional concerns branded biologics and biosimilars, combined and services — matters of life and death.This trend has important implications for with the development of enhanced biologics Therefore, while hospital customers are notthe healthcare industry brand model. For (“biobetters”), should all drive greater invest- always “customers” by choice, choice is play-example, the marketing of niche products ment in maximizing the residual brand value ing an ever-greater role in where and howwill require a different skill set to connect of biologics. they get care.with very specific and smaller groups ofmore sophisticated stakeholders. Conversely, because biosimiliars are closer to A brand is a powerful business tool that has branded products than traditional generics, the potential to drive business performance. they represent a tremendous brand oppor- The transition period during a merger or Leveraging corporate brands tunity in both established markets (some acquisition, for example, is a crucial time and current assets predict the US will become the largest market for hospitals to use brand to consolidateHistorically, pharmaceutical companies for biosimilars) and emerging markets (where identity, create efficiencies, rally employees,have not promoted their corporate brands biosimilar activity is thriving due to less and reach targets. There is certainly anto customers, choosing to focus on product stringent regulations). The market’s current enormous opportunity for hospitals tobrands because of the efficiencies of market- combination of necessity and uncertainty leverage their brand to drive choice, bridgeing a few products to many customers. call for a long-term brand strategy. This is institutional gaps, differentiate their orga-With the rise of more “personalized” an ideal playing field to leverage a strong nization, and galvanize a diverse set oftherapies, there is a need for companies corporate brand. stakeholders. In turn, this will help themto leverage the corporate brand to increase attract and establish meaningful relation-marketing efficiencies and differentiate ships with consumers and, ultimately, The evolving role of brandtheir product brands. strengthen their bottom line. for hospitalsTo build stronger foundations for growth, The role of brand in healthcare is also emerg-pharmaceutical companies must also ing as an urgent issue in areas never beforeconsider a broader focus than solely sell- considered brand-sensitive, like hospitals.ing traditional compounds. Opportunities In the face of shrinking reimbursements,include entering end-consumer markets, rising costs, and a changing healthcarefocusing on emerging markets, and begin- culture, we have seen hospitals begin toning to develop biosimilars. There are rethink their delivery of superior and cost-strong indications that this is already effective care to drive future success. 110 Best Global Brands 2012 / Healthcare
  • 58. Post-glitz Hospitality By Manfred Abraham Just as it did in 2011, the hospitality industry has stood resilient against the Eurozone debt crisis and wider economic challenges during 2012. Europe still represents the largest hotel and travel market in the world and, despite the uncertain environment, most cities are showing improvements in key hospitality measures.112 Best Global Brands 2012 / Hospitality
  • 59. This feeling of strength is mirrored across the This is a concept that goes beyond the idea of Food for thoughtglobe as larger hotel groups make aggressive consumers valuing ostentation. Relevance,expansions into Asia. China is already the tailoring, and authenticity are the keys to These approaches show that a strong brandsecond-largest market for InterContinental success here. Post-glitz brands use only a concept and a clear proposition can drive effi-Hotels Group, behind only the US, and the selection of features that are truly relevant to ciencies as well as higher margins, and buildgroup is planning to nearly double its Chinese their specific target audiences — such as supe- loyalty among key target audiences by offer-presence over the next five years. This will rior service levels or informal dining — and ing guests a meaningful experience.make it the biggest and fastest-growing inter- they implement them expertly. At the samenational hotel operator in Greater China. time, features that customers don’t need or However, at present, it seems that most of that don’t fit the brand are simply left out. the hotel industry still hasn’t incorporatedLooking past the figures, however, there are the idea of “branded experience” into theirwarning signs that the market has changed. In New York, for example, the Americano strategy, which would allow them to createRevenue per available room has been im– Hotel offers a room service menu with only carefully curated experiences for their guests.proving, but it still hasn’t recovered to the three choices fit for the time of day. The meals Perhaps this is why no hotel brand has takenpre-recession peaks of 2007. (even the burgers) are served in bento boxes, a spot in the Best Global Brands rankings which complement the hotel’s branded con- in 2012. Meanwhile experience purveyor — Manfred Abraham, Head of cept perfectly: a blend of ’50s chic and Japanese Disney, who does have a place in the top Consulting, Interbrand LondonA new model suited to minimalist design, wrapped up in a Latin 100, has successfully branched out into thethe post-recession digital attitude. This convenient, no-fuss-yet-stylish approach is ideal for their guests, who typi- hotel sector. It will also be interesting to see how IKEA fares in the space after recentlyconsumer age involves cally stay for a couple of nights and are more announcing plans to open budget hotelsdelivering a branded likely to explore Chelsea’s happening restau- across Europe in 2014. rant scene than order room service — but it’sexperience that guests available and presented with flair for those Clearly differentiation, authenticity, style,love — and for which they who want and expect the option. and a tailored experience are becoming increasingly important in the hospitalityhappily pay a premium. On a larger scale, the Joie de Vivre Hotel industry, which has long been associated Group has a brand proposition that prom- with either a pedestrian, cookie-cutter experi- ises “opportunities to live the joy of life. It ” ence or glitzy ostentation. In the “post-glitz” Changing notions of value has a portfolio of more than 20 hotels and (and post-pedestrian) era, guests — especiallyWhile major hotel chains competed during is expanding across the US. Each hotel is those who are willing to pay a premium — arethe recession to offer heavy discounts, guests based on a unique experience concept that looking for something different, somethinggot used to the lower rates. At the same time, is executed to high standards and includes that reflects their lifestyle. They’re not justthe ability to search online and seek “value high levels of service. Though attentive, the looking for a place to stay, they’re looking forclubs” and “flash sales” has made it far easier service is delivered in a relatively relaxed an experience.for consumers to compare and find deals on a style and the hotel environments are eclecti-desirable locale. cally designed, with an aesthetic that varies from location to location. In this “curated”This represents a fundamental shift in approach, the focus is on a more soulful,consumers’ attitudes toward value, but it authentic hotel experience and local distinc-doesn’t mean that discounting is the way tion, as opposed to uniformity.forward. In fact, some hotel brands arefinding a low-cost, high-charge model that Not all Joie de Vivre hotels share the sameis perceived by their guests as good value. features, and no star rating is provided. ButCurrent trends indicate that a new model the features reflect the concept and corre-suited to the post-recession digital consumer, spond to the likely purpose of the visit — fromage involves delivering a branded experience colorful beach hotels to romantic retreatsthat guests love — and for which they happily and sophisticated urban properties. Provingpay a premium. This is the opposite approach that customers will pay a premium for anto the “features war” that many luxury and experience that delivers beyond the usualpremium hotels engage in to attract today’s expectations, some of the chain’s hotels, likesophisticated customers. At Interbrand, we the Ventana Inn and Spa, can command upcall the new approach “post-glitz hospitality.” to USD $1,000 a night for their comfortable, thoughtfully designed rooms. 114 Best Global Brands 2012 / Hospitality
  • 60. The Consciousness of Luxury By Manfredi Ricca The current economic landscape would not Luxury consumers will be looking for brands seem to leave much room for optimism that offer personalization and exclusivity when it comes to luxury brands, yet all of the and perhaps an entertainment factor. Ralph luxury brands in our Best Global Brands report Lauren executive, David Lauren, refers to increased their brand value this year. it as “merchantainment” — the blending of commerce and culture. The key concept In 2011, research suggested that luxury underlying the philosophy is that the luxury consumers were still spending freely despite shopping experience is not about a trans- gloomy predictions about the global economy. action, its about immersion and stoking In America and Europe, that spending has desire. Luxury consumers expect exception- been reigned in and, overall, an increas- ally designed marketing communications ingly complex picture of the luxury market is and inviting websites, and will be using emerging. Mature economies, home to luxury social media to research and qualify prior to brands such as Burberry, Hermès and Tiffany, purchasing. show signs of new contractions and seem to be stuck in stasis. All the while, the luxury When it comes to inspiring luxury consum- market and conspicuous consumption is on ers to spend, brands that can project elegance the rise in developing countries. and glamour and build upon an authentic heritage have an immediate advantage. With the emergence of new, wealthy consum- For luxury brands that don’t have a strong ers from the BRIC countries and the economic history, the focus should be on exceptional downturn for most other nations, the mean- quality, originality, attention to detail, or ing of luxury is shifting. The changes stretch commitment to sustainability. far beyond economic cycles. They reflect, in fact, a changing global consciousness. Brands that maintain a sleek and refined image — as well as the inherent quality of In the depths of the 2008 recession, luxury went their manufacturing and design — will most stealth. Ostentatious was out and discreet likely come out ahead at a time when many was in. However, even before the economy luxury marketers are feeling compelled faltered, consumers were shifting away from to head down-market amidst economic purely status-oriented consumption and uncertainty. environmental concerns have become a more influential driver of choice.When it comes to During this period of recovery, companies will corporate citizenship, brands like Prada and not be able to rely on a large pool of customers Gucci have the lon–gevity, credibility, and ready and willing to buy with little thought influence to champion causes which range to cost. Today’s luxury consumers are more from education to the arts. Most high-profile sophisticated and have higher expectations. luxury brands have endured for generations, They understand value better and research embodying the very principles of sustainable their purchases much more thoroughly. This growth centuries before the term was conceived. will mean leveraging every physical and digi- tal tool available to deliver a fully tailored, For luxury brands, storytelling is more experience-rich customer journey. important than ever. As author, Anaïs Nin, famously wrote, “Stories are the only Post-recession success will be dependent not enchantment possible. Enchantment and ” only upon a portfolio of superior products and aesthetic delight are the very essence of the superb quality of service, but also a strong, luxury experience. Luxury consumers want cohesive brand, a formidable online presence, to engage with something more profound. and a reputation that is timeless, elevated, They want to be swept away by captivating and refined. imagery and masterful storytelling.116 Best Global Brands 2012 / Luxury
  • 61. Orientation in a Fragmented World By Cassidy Morgan The media world is transforming rapidly. Barriers to entry to become a media entity have never been lower, media consumption habits are changing continuously, distribution channels are exploding, and the speed and reach of media platforms are increasing all the time. And, in the midst of this sea change, the big players have consolidated large parts of the industry, and are faced with increased fragmentation and an ever-expanding definition of what media actually means. During these tumultuous times, with no end to change in sight, brands serve as a critical navigation device.118 Best Global Brands 2012 / Media
  • 62. With the rapid digitization of media content, personalities with opinions that run the networks that help them make sense ofassociated processes and resulting product ideological gamut, we can no longer assume what’s happening in the world. Mediainnovations, heavyweights like News Corp., accuracy and objectivity. We now have brands can help them do this. They areThe Disney Company, and Viacom are con- unlimited information at our fingertips, perfectly positioned for the task and can betending with increasing competition, not materialized in a matter of seconds, yet it’s the source people turn to when suspendedonly from other established players, but also harder than ever to separate fact from fiction, between conflicting points of view. Theyfrom startups. Companies like Google, via hype from reality. can be the source people turn to when theyYouTube and other assets, long ago realized desire a short-cut, snapshot, or overview ofthe value of media platforms to create How can I be sure that this blog post is true? events — or when they need reliable analysiscloser connections with customers. At the Does this video accurately reflect the incident and a clear and compelling point of view. Butsame time, innovative apps allow people in question? Who can I trust? The answers first these brands need to understand theirto consume — and distribute — content in to these questions are not clear these days. own strength and then define a clear role fornew and compelling ways. Perhaps most Brands, however, can help us sort things themselves in this shifting landscape. Anythreatening to the established players are the out. Using their power and influence to cut media company that grasps these two criticaltrailblazers of the future, dreaming up ideas through the noise, brands can help direct us points and develops its brand accordingly hasin a garage in Berlin, a dorm room in Califor- to what is timely and relevant. They can clar- the opportunity to shine a beacon of light in ania, or an Indian incubator. ify, simplify, inform, and guide in the midst fog of confusion. of information overload.This upheaval has accelerated the declineof established media entities, like news- Not only do we live in a period of economicpapers or TV stations, as the only source of and political uncertainty, we also live in ainformation or entertainment. The result of period in which information seems to havethis revolution in habits and technology is a reached a dizzying peak of expansion andprogressively fragmented and oddly democra- complexity, like a new universe unfolding.tized media landscape in which nearly anyone Somehow, we have to learn to navigate thehas the power to establish himself or herself intricate terrain. In times as complicatedas newsworthy. Simple actions — a click of and uncertain as our own, people turn toa button, a 140-character message, a short those brands they trust. That is precisely whyvideo — suddenly have the power to change media brands have such an extraordinaryour perspective, shift our point of view, and opportunity in front of them. They can serveinstantly provide us with useful information. as a beacon — guiding consumers and busi-Consumers today, and many businesses as nesses alike; bringing insight, identifyingwell, rely on emerging technologies, particu- information that can be trusted, andlarly the internet and social media, as key ensuring that people are furnished withsources of data. Such sources allow people to accurate, useful, relevant information that — Cassidy Morgan, Chief Executivemake critical personal or business decisions. will help them make sound decisions, however Officer of Interbrand, CentralWhile this has empowered us all tremen- swiftly things are changing. & Eastern Europedously, it has also created an element ofconfusion. The amount of information being At present, most established media brands,generated is exploding, which overwhelms us and even the newer media brands, underwith choices, and makes it harder to distin- threat from emerging business models haveguish credible and honest news or data from failed to leverage their power in a meaningfulthe dubious and misleading. It is a brave new way. There are two main reasons. First, theyworld, indeed. lack a basic understanding of what has made, and continues to make, their brand strong.While we now have access to more transpar- Second, with the impossible goal of pleasingent information, we’re also confronted with everyone, many have shied away frominnumerable information sources. In the expressing a strong and clear point of view.past, in the field of journalism for instance,sources were checked, double-checked, and The bottom line is that people are over-then triple-checked before information was whelmed by information and have difficultypublished. With the rise of bloggers, citizen cutting through the clutter. The magnitudejournalists, a broad spectrum of alterna- of the issue is unprecedented and peopletive news sites, and a legion of internet are searching for those media outlets and 120 Best Global Brands 2012 / Media
  • 63. Leading by Aligning By Bruce Dybvad Three macro trends hold the world’s top retail communications. Leaders of tomorrow will brands to modest gains. The cost of commodi- be those who effectively manage transforma- ties is up, challenging companies to operate tional change with the participation of their more efficiently while maintaining quality. customers and keep their promises. Modest income growth and fragile confidence continue to constrain consumer spending. Conversely, American casual clothier Gap And the irreversible shift in power to the made strides this year, picking up strength shopper, thanks to social media, puts pressure after launching a global branding campaign. on retailers to operate transparently and By refocusing on its California roots and engage shoppers through brand experience. regaining its identity for “slow” fashion, sales have increased and profits remained stable, Faced with the soaring prices of raw materials, despite the increased marketing expense. energy, and labor, companies are reviewing operations to find ways to cut costs. For the For many retail categories, closeness with furniture category, large products drive up consumers depends more and more on their the cost of logistics and impact price. Inter- sensitivity to sustainability. Green products national home furnishings giant IKEA and services, facilities, and activism are minimizes costs with flat-packing, saving heavily publicized and strongly supported by money in labor, shipping, and storage. Not consumers. IKEA, for example, plans to be only are devotees of IKEA’s European-modern a 100 % green company, and works with the aesthetic content to assemble products them- Forest Stewardship Council and the World selves, they share pictures of their newly Wide Fund for Nature. furnished rooms on the retailer’s website. Watchdog groups and conscious consumers Today, brands interact with consumers in continue to keep the pressure on Nike, a dialogue which amplifies the consumer’s Puma, and adidas to respond to accusations voice and influence. The top retail story in that their factories are polluting Chinese the US — the travails of JCPenney (JCP) — illus- waterways. The three brands released a joint trates what happens when a leading retailer roadmap towards zero discharge of chemicals fails to keep pace, listen, and respond. in the supply chain by 2020, setting a new standard for environmental performance in While JCP’s attempt at brand transformation the industry. Big box retailers, such as Target is highly commendable, it seems to have been and Walgreens, have developed in-store apps done without consumer input. Marketing that help shoppers navigate and save time. and pricing messages came out ahead of store Like a GPS, Walgreens mobile tool creates a reinvention and merchandising. Confused way-finding pattern from a shopping list. It customers have not embraced the conversion consolidates the trip and provides a platform of their beloved old-line department store for promotions at the optimal moment. 20% into a new age fashionable boutique with of sales are lost when shoppers can’t find an everyday low prices. Consequently, JCP has item which makes creating such mobile apps suffered lost sales and plunging stock prices. a strong priority for retail. Time will tell if the company’s new strategy is too flawed to work. Meanwhile, there are two Global retail leaders are continuously chal- takeaways for the rest of the industry. First, lenged to align with demand. That means rebranding a company is a complex endeavor, engaging customers through any means involving much more than a new pricing possible, including innovations in mobile policy and image adverts. Second, retailers technology; increased emphasis on inventory pay a steep price when they break a sacred management; brand extensions and global covenant; that is, the need for the experience expansion; and innovating with the customer to deliver on the expectations set by its brand to capitalize on best opportunities.122 Best Global Brands 2012 / Retail
  • 64. Opportunities For The Swift-Footed By Jonathan Bernstein The sports industry, with its mix of markets bill). This is a smart brand strategy that creates and sectors, and its multitude of players, is enormous value for the brand owner, its part- often hard to pin down. Yet what is not in ners, spectators, and others. question is the speed at which it continues to evolve. For sports brands, the message is stark Like most other sectors, the capacity of sport and clear: adapt and change, or risk losing brands to deepen existing relationships and relevance. Sport plays a central role in most develop new ones relies on their ability to cultures around the world, giving brands in leverage new technology. Now that the low- this category enormous influence that few hanging fruit such as live streaming has been others can match. The power of sports brands picked (but by no means maximized), the ques- lies in their ability to build deep and lasting tion is, how can brands create additional value connections with consumers. in a multi-platform world of cheap digital content that is accessible to most anyone? The interplay between consumer and brand is fundamentally different in this sector. In most FC Barcelona is one brand that is taking a smart, categories, brands deliver an experience that and global, approach to digital. The club’s may, in time, create loyalty. Yet with the website is in seven languages, its Twitter feed’s exception of a few star players, true brand in three. It has a strong presence on YouTube loyalty is elusive and a real challenge to main- and QQ for its Chinese fans. In addition, Barça tain. For sport brands (particularly club teams), is developing the digital assets to monetize the loyalty comes easily, irrationally, and is “sticky” passion and loyalty of its fans by developing a (often handed down from parent to child). Just downloadable app for less than USD $1. Today ask any Chicago Cubs fan — it’s been 103 years an app, tomorrow a jersey; forever a fan. since their last championship season. Perhaps the most innovative sports brand With billions of new global consumers/fans today is Red Bull. The company has such clar- coming online in the next 10–15 years, it’s clear ity of identity that it managed to transform an that sports are no longer a local affair, some- energy drink brand into a mainstream sports thing top European football clubs have known brand without compromising or diluting what for years. Anyone strolling down Nanjing it stands for. The brand knows who its custom- Road in Shanghai is guaranteed to see a young ers are, delivers the right kind of experience to Chinese fan wearing a Chelsea FC jersey. There them, and constantly innovates to maintain is massive growth potential for brands. relevance. While many brands engage in spon- sorship to sell more product, no others have yet No one is doing a better job of this than created and taken ownership of the sport itself. Formula 1. In the past five years alone, it has introduced new races in India, Singapore, Abu One of the biggest sports stories of the year Dhabi, and Korea, with future races planned was the global Linsanity phenomenon. While for the US and Russia — significantly increas- most experts agree that the Houston Rockets ing its presence in strategically important contract signed by Taiwanese-American Jeremy growth markets. By partnering closely with Lin was excessive, there is a debate around local governments, Formula 1 has created whether he creates enough value in other ways a portfolio of iconic events that are highly to justify the contract. Undeniably, the market- relevant to a much broader set of stakeholders ing value of a US-Asian star is potentially than just race fans. Take the Singapore Night huge. But to help individuals and franchises Race. With the city as backdrop and a view- make better business decisions, sports compa- ing audience of 100 million, the government nies need a better understanding of how a is more than happy to promote the race via its brand creates value. tourism board (and foot 60 percent of the race124 Best Global Brands 2012 / Sports
  • 65. To Thrive in Turbulent Times: Become a Tech Brand People Like By Nirm Shanbhag In 2012 the tech industry’s titans supplied dramatic tales of dizzying success and dismal failure: Apple’s astonishing rise to the top and BlackBerry’s race for the bottom; HTC’s jump forward versus Nokia’s slide; and, as ever, Google’s impressive growth. It all proves the old saying: If there’s one constant, it’s change. And in the tech industry, change is as tumultuous and plentiful as it gets.126 Best Global Brands 2012 / Technology
  • 66. Individually, each brand’s trajectory is worthy has opened its doors to Apple, with millions smartphones. With consumers free to choose somewhat heroic rebranding effort, Appleof a case study, but taken as a whole, they craving iPhones, MacBooks, and the wonders and presented with more options than ever, abandoned its old rainbow-hued Apple logo intell a far more interesting story about what of iTunes. Brazil is speckled with retailers BlackBerry should have perhaps put more favor of a minimalist monochrome one, gaveit takes to stand out and gain ground in creating stores within stores that recreate the thought into why people were opting for other its computers a hip, modern look, and soughtrapidly changing markets. On the surface, Apple experience for discerning customers. brands when they had a choice in the matter. to establish a “heartfelt connection” with itsthe winners in this year’s race — Apple, iPads pop up in airport lounges around India. customers. The rest, as they say, is history;Google, Samsung, and Intel — are companies Despite the fact that BlackBerry is a recog- and here they sit astride all but Coca-Cola inthat have fought hard to find and maintain In the past 11 years, Apple has launched three nized brand, has an unquestionable heritage, our Best Global Brands 2012 report.their relevance. Just as we asserted last year, products — the iPod, iPhone, and iPad — that and tens of millions of users worldwide, itthose brands that found a way to matter in have created brand new markets, stoking and suffers from the most fundamental of chal-the hearts and minds of audiences also found fulfilling desires consumers didn’t even know lenges. It’s been too slow to respond to marketways into their wallets. Conversely, loss of they had. It has jump started and set a stan- changes, but too eager to claim it had anbrand value and market share hit hard for dard for the mobile era that others are now actionable strategy. The link between whatthose who made missteps. HP suffered as scrambling to follow. Yet nearly all experts was expected and what was experienced brokeits story shifted away from its products and agree that Apple’s brand, not so much its down and not enough effort was made to reju-towards its leadership turmoil. Nokia saw products, is the real key to its success. Apple venate the brand before the situation hit whatfew results from its highly publicized part- is the archetypal emotional brand. It’s now looks like the point of no return. What,nership with Microsoft. But worst of all were not just intimate with its customers, it is we might ask, did BlackBerry ever mean tothose who simply refused to acknowledge beloved. For many people, it embodies the very users? A free smartphone issued by employ-that the world had changed. The most glar- essence of imagination, design, and innova- ers? A brand’s value goes beyond commerce,ing example, of course, is BlackBerry, whose tion. Apple has a story and a meaning; it lives convenience, and visibility. People have todownward spiral shows just how quickly (and that story and meaning, and lives it well. actually care about it.monumentally) the ground can shift in theworld of technology. If Apple and BlackBerry represent the Customers will settle for extremes of tech brand success and failure, — Nirm Shanbhag, ManagingLooking a little deeper, it becomes clear thatthe solution is not as simple as developing things that are brand basics what of those in the middle? Some, like Dell and Sony, have an opportunity to quickly Director, Interbrand San Franciscothe right advertising campaign. The reality in other sectors, like easy- turn the course if they can focus on lead-is that many of those who experienced brand to-understand offerings and ing through innovation and delivery, andsuccess this year did so despite lukewarm communicating accomplishments in thosecampaigns. Others spent heavily to build being rewarded for their areas. Others, like HP and Nokia, need to takeup expectations, made promises they were loyalty. decisive action, delivering leadership-worthyultimately unable to keep, and dropped as a offerings that live up to their brands’ poten-result. Here is where we find the lesson for tial. Those who are in the midst of brandbrand builders, marketing managers, and At the other end of the spectrum lies reinvention and reinvigoration — like Micro-CEOs alike. In the technology sector, where BlackBerry, a company that defined the soft and Adobe — must ensure at all costs thattoday is so yesterday, the most important smartphone market just a decade ago. Today, they realize — at a minimum — and ideallything a company can do isn’t to find its story, the debate is whether we are about to witness accelerate, their respective transformations.it’s to live it. a supernova or a quiet quelling of the flame. Earlier this summer, BlackBerry announced For those who are shepherding the world’sFor years, Apple has epitomized what 5,000 layoffs, a huge quarterly loss, and that most valuable technology brands, the yearhappens when a brand goes from being a its next operating system, intended to be the ahead will pose a formidable challenge:force that drives marketing to a force that linchpin of Research In Motion’s turnaround, pushing brand beyond marketing, and deepdrives the business. Volumes have been writ- would be delayed. Some investors now fear into the hands (and hearts) of audiences andten about the many ways in which Apple’s the company won’t be around long enough to users. It’s not always easy, but it can be done;brand comes to life, from industrial design to launch the OS, which isn’t expected to hit the and when it’s done well, it works wondersretail salesperson training. The presence of market until the first quarter of 2013. for a brand. Case in point: BlackBerry, andApple comes through in everything they do. others, might find inspiration in recallingHaving equipped the global consciousness Interestingly, RIM’s chief problem is the loss Apple’s financial tailspin during the mid-with a clear understanding of what an Apple of its stronghold in the corporate market, 1990s, when the company seemed in dangerexperience should entail, Apple has been which it once dominated. Rather than issu- of going out of business. At the time, itsable to rewrite the rules of consumer comput- ing company BlackBerries, many employers brand and products were not the ones weing in markets that were once deemed now have workers bring their own devices in know and love today. In a calculated anduntouchable to premium brands. China to work, which are often iPhones and Android 128 Best Global Brands 2012 / Technology
  • 67. Brand Stretch In A Changing World By Kevin Perlmutter Telecoms are now truly at the heart of innovation — supporting, guiding, and powering other innovators and connecting everything that is important to our personal and business lives. Fast mobile networks are helping to revolutionize every aspects of our lives.130 Best Global Brands 2012 / Telecommunications
  • 68. Telecom doesn’t always receive the credit it and is the most trusted telecom brand in SFR in France, reorganizations are already Capable and crediblemight for helping to make lasting change the market with a trust rating of 73% on the underway. SingTel says that the reorganiza-across industries like healthcare, German Consumer Confidence Index. Vodo- Another consideration as telecoms stretch tion is in part to “seize emerging opportunitiesentertainment, home security and personal fone and Telefonica’s O2 each follow with a into new areas is to ensure that they are fully in an era where consumer usage behaviorsfinance. As network speeds continue to 60% trust rating in the German market. capable and credible to deliver the new offer- are quickly evolving.” SFR says, “We haveincrease, with 4G LTE networks beginning to ing, and that their business is set up to serve been designing plans to adapt to a newlight up, we will see more seismic changes in In some other markets, years of advertis- the new offering well. They need to evaluate competitive environment…including quickhuman behavior. Further, some developing ing claims that showcase the best possible whether they should build or acquire the wins and more drastic structural changes, ”countries that were once referred to as “third offering have eroded trust, because the capability; launch it on their own, through according to parent company Vivendi CFO.world” due to their remote connection to experience doesn’t always match. Customers a joint venture or as a co-brand; treat it like acapitalism are now catching up, thanks to are more able to see the cracks in the founda- sub-brand or a product; or perhaps market As the global telecom industry continues tomodern mobile networks that improve tions — pointing out an opposite experience it under a different brand. How the offering rapidly evolve, its impact on other indus-education, healthcare, and commerce. for every claim, and having little patience fits into their brand architecture and how it tries and peoples’ lives will continue to beGrowth into new areas for telecom carriers is for less-than-perfect service. This dynamic is launched will determine what potential profound. Some telecom brands will stretch toso explosive that leading brands are being is visible in the US, where the four major value is added or detracted from the business. keep up with the changing world. However,forced to stretch every year — more than some telecom brands — Verizon, AT&T, Sprint and Movistar in Spain and Latin America is a those who stretch in the right ways and takecompanies do in a lifetime. T-Mobile — all make aggressive claims of prime example: As a sub-brand of Telefonica, their customers on a fulfilling journey will be network superiority that do not always match the Movistar brand is used strategically and the ones who change the world. the user experience. Syndicated research differently, or not at all, in the countries Serving customers in new ways from multiple sources shows that customer Telefonica serves.With mobile penetration over 100% in major satisfaction averages below most other servicemarkets, telecoms are serving their customers categories, due to network coverage and Lastly, for telecoms to truly stretch, they willin new ways to drive loyalty. Already, they are customer service challenges. need to take their customers on a journey intomaking it possible for consumers to pay for new areas of possibility. Their outward focusthings with a mobile device; store and access Closely linked to trust and credibility is the should be less about blanketing a market withdata in the cloud; monitor their home from brand’s perceived corporate contribution to superiority claims, and more on understand-afar; run their business from the road; and the community that it serves. Many tele- ing customers’ needs and desires, and thenwatch HD movies on the go. But the real prize com brands contribute significantly to their overtly meeting or exceeding them. Theyfor these brands is building customers’ appe- community through massive investments should use their customer-facing employeestite for, and reliance on, a rapidly expanding in infrastructure or philanthropic contribu- and digital technologies to form closer bondsarray of new offerings and capabilities. tions, although they don’t always get credit. with customers, and to interest them in In contrast, many seem to be at odds with new capabilities that can improve their livesWhile it may seem like we’re in boom times consumers or local governments and face and businesses. Going forward, value won’tfor telecoms, these opportunities come with roadblocks when they want to expand their come from having access, it will be based ontheir own set of challenges. Inside the lead- offering or stretch into new areas. We see how useful and meaningful access is foring telecom companies, corporate strategists, differences in how this plays out when the the customer. — Kevin Perlmutter,technology visionaries, and operational telecom is not on the positive side of public Senior Director of Strategy,orchestrators need to stay many steps ahead opinion or government regulators. In China, Many telecoms will have to work extra hard to New Yorkto pave the way for a future that does not for instance, brands like China Telecom are earn the trust of customers and governmentsyet exist. These companies are constantly subsidized and supported by the government to play in areas they want to go. In terms ofevolving, working to bring their employees to extend service to the country. In Mexico, brand strength, they will need to improvealong, and trying to stay in front of consumer there is a public debate underway between the understanding around what their businessdemand. Externally, the industry is intensely government and the dominant player in the can credibly offer customers. They will needcompetitive, where making the first move or category — who owns landline carrier Telmex to do so in a way that is authentic, both ina claim of superiority is often a top priority. and mobile carrier Telcel — about having too terms of brand personality and competitive much control over the market. Recently, the differentiation. And most importantly, they Mexican government has taken steps to open will need to truly listen to their customers Earning trust the doors to new competition. In the US, the and respond in ways that are most relevantFor brands to stretch credibly, many will first leading telecom carriers and the government to their basic and emerging needs.need to earn the trust of their customers. seem to be at odds over how to keep up withThis is not a challenge in all markets, as some consumer demand. This sparring has made it For some, bold steps like reorganizing thecarriers are associated with national pride. difficult for US telecoms to overcome regula- company may be needed to realign and keepFor example, Deutsche Telecom is felt by tory hurdles for some acquisitions or to access pace with consumer behaviors. For bothmany to be the national carrier in Germany, new spectrum. SingTel, serving parts of the APAC region, and 132 Best Global Brands 2012 / Telecommunications
  • 69. Applications for brand valuationCompared to when Interbrand first pioneered Interbrand’s brand valuation methodology hasbrand valuation in the 1980s, global business been specifically designed to take all of theseleaders now widely accept the importance and stakeholders and value-creation levers intovalue of strong brands — and the significant role account. Role of Brand analysis is about under-they can play in enhancing business performance. standing purchase behavior — the brand’s influence on the generation of demand throughFor many years, Best Global Brands has been one choice. Brand Strength measures the ability ofof Interbrand’s most important commitments to the brand to create continuity of demand into thethe promotion of brands as key value creators for future through loyalty and, therefore, to reducebusiness and for society. Strong brands enhance risk. In doing this, it considers internal (manage-business performance primarily through their ment and employee) and external (customer)influence on three key stakeholder groups: factors. Finally, these inputs are combined withcustomers (current and prospective), employees, a financial model of the business to measureand investors. They influence customer choice the brand’s ability to create economic value forand create loyalty; attract, retain, and motivate its owner.talent; and lower the cost of financing. It is quite possible that you believe that yourThe influence of brands on current and prospec- brand could be (or is) a significant source oftive customers is a particularly significant driver competitive advantage for your business, butof economic value. By expressing their proposi- you are unsure of how a brand valuation exercisetion consistently across all touchpoints, brands could help you.help shape perceptions and, therefore, purchasebehavior, making products and services less sub– The business applications for brand valuationstitutable. In this way, brands create demand, can broadly be categorized into three areas:allowing their owners to enjoy higher returns.Strong brands also create continuity of demand ◆ Financialinto the future, thus making expected returns ◆ Brand Managementmore likely — or less risky. Brands, therefore, ◆ Strategy/Business Case Developmentcreate economic value both by generating higherreturns and growth, and by mitigating risk. Brand valuation applications fall broadly into three categories Financial Brand Management Strategy/Business Case DevelopmentApplications ◆ Investor relations ◆ Brandp erformance ◆ Brand positioning ◆ Mergers & acquisitions management ◆ Brand architectures ◆ Financing/securization ◆ Brandp ortfolio ◆ Brand extension ◆ Licensing/royalty management ◆ Business case for rate setting ◆ Resource allocation brand investment ◆ Taxp lanning/transfer ◆ Brandtr acking/ ◆ Co-branding/JVan alysis pricing dashboards ◆ Balance sheet valuations ◆ Returno n investment analysis ◆ Sponsorship evaluations ◆ Senior management KPIsTypical Frequency One-off Recurring One-offPrimary Objective A robust value with Ongoing brand manage- Business case connecting supporting analysis ment leading to insight brand change/invest- and recommendations to ment to expected financial grow brand value results Best Global Brands 2012 / Criteria, Methodology, and Brand Strength
  • 70. Applications for brand valuation (con’t) Financial applicationsIncreasingly, CEOs are placing more emphasis on impact of investing in the brand quantified. It — Allows responsibility for performance By bringing together market, brand, competitor,their companies’ brands in investor communica- also provides a common language around which on the ten Brand Strength factors to and financial data, the brand valuation model istions. Many more annual report column inches a company can be galvanized and organized. be allocated to functions across the the ideal framework within which such businessare now dedicated to discussing an organization’s business, building engagement and case modeling can be conducted.commitment to its brand, from the CEO down. Role of Brand analysis lets us know where invest- a sense of responsibility for the brandNumerous companies take their brands seri- ment in (and focus on) brand improvements will across the organization. As global competition becomes tougher andously enough to report on their value over time have the biggest impact. It can be thought of as a many competitive advantages, such as tech-to investors. measure of “brand leverage. ” Finally, when the Role of Brand and Brand nology, become more short-lived, the brand’s Strength analyses are connected to the financial contribution to shareholder value willBrand also continues to be a key driver of Brand Strength is the key diagnostic tool with model, they provide a framework for resource only increase. Brands are one of the fewacquisition premiums in M&A. Often, it is the which we can measure brand performance allocation and prioritization based on the oppor- business assets that can provide long-termlatent potential of the brand that is driving and better understand the reasons behind a tunities to enhance brand performance that are competitive advantage.this premium through its ability to enter new brand’s strengths and weaknesses, both inter- expected to have the greatest impact on brandmarkets and extend into adjacent categories. nally and externally. It supports strategic brand and business value. Companies as diverse as Samsung, Philips,A broad skill set, combining market research, management by prioritizing areas of highest Hyundai, and AXA, among many others, havebrand, and business strategy, together with impact for managers. used brand valuation to help them refocus their Strategy/Businessbusiness case modeling, is required to quantify businesses on their brands, motivate manage- case applicationsthe latent financial potential of the target brand. Typical deliverables from a Brand Strength ment, create an economic rationale for branding analysis are: From time to time, businesses need to evaluate decisions and investments, and make theInterbrand’s brand valuation methodology can significant changes in brand strategy, whether business case for change.also be used to complement other more tradi- — A heat map indicating areas of strong and it be re-positioning, brand architecture, brandtional techniques for setting royalty rates for weak performance for the brand (this extension, or even a complete re-brand. These Although many brand metrics are available,brands. By identifying the value created by can be across geographies, products, or kinds of changes typically involve significant few can link the brand to long-term financiala brand for its business, combined with an customer groups). financial outlay upfront, along with a high value creation and this, along with its manyevaluation of the relative bargaining power degree of uncertainty over when, or whether, a other applications, makes brand valuation aof the parties involved, we are able to advise — Drill-down analysis into specific positive return will be made on that investment. versatile strategic tool for your business.on the proportion of brand value that should segments in the portfolio to identifybe paid out as a royalty rate in return for the reasons for over- and under-performance. Some CEOs are willing to make these criticalright to exploit the brand. brand strategy decisions based on qualitative — Recommendations for improvement strategic analysis and intuition. The majority, on Brand Strength factors, together however, are looking for a business case that Brand management applications with a cost/benefit analysis to goes further. They want to understand the likelyUltimately, everything we do as brand managers inform prioritization. overall financial impact on the business overshould be considered through a value creation time, covering a range of alternative scenarios.lens. Considerable investments are made in The core benefits of Brand Strength analysis are In addition to a detailed breakdown of thebrands and, ultimately, it is important to deter- that it: expected costs to deliver, a rounded businessmine if these actions are creating value for your case will also quantify the expected impact oncustomers and, in turn, your shareholders. — Enables constructive dialogue about the top line through the modeling of key revenue the brand between different parts of the drivers (these will vary based on the business,Interbrand’s brand valuation methodology seeks to business by creating a common language but could include customer acquisition, churn,determine, in both customer and financial terms, for discussion of brand performance. price premiums, share of wallet, frequency ofthe contribution of the brand to business results. purchase/visit, average basket size, and so on), — Provides global and local managers with and on profit margins from any operational — Mike Rocha is Interbrands GlobalA strategic tool for ongoing brand management, an actionable tool to make informed changes required to deliver the new strategy. Director of Brand Valuationbrand valuation brings together market, brand, marketing decisions — empowering Finally, sophisticated techniques such ascompetitor, and financial data into a single, management with insights to implement Monte Carlo simulation may be employed,value-based framework within which the perfor- brand strategy. running thousands of possible permutationsmance of the brand can be assessed, areas for in order to estimate the most likely outcome.improvement identified, and the financial 136 Best Global Brands 2012 / Criteria, Methodology, and Brand Strength
  • 71. Criteria for Inclusion Methodology Interbrand’s brand valuation methodology seeks to Role of Brand determine, in both customer and financial terms,There are several criteria for inclusion in the contribution of the brand to business results. Role of Brand measures the portion of the decisionInterbrand’s annual Best Global Brands ranking. to purchase that is attributable to the brand, A strategic tool for ongoing brand management, relative to other factors (for example, purchaseThe brand must be truly global and needs to it brings together market, brand, competitor, drivers like price, convenience, or producthave successfully transcended geographic and and financial data into a single framework features). The Role of Brand Index (RBI) quantifiescultural boundaries. It must have expanded within which the performance of the brand can this as a percentage. Customers rely more onacross the established economic centers of the be assessed, areas for improvement identified, brands to guide their choice when competingworld and be establishing a presence in the and the financial impact of investing in the products or services cannot be easily comparedmajor markets of the future. In measurable brand quantified. It also provides a common or contrasted, and trust is deferred to the brandterms, this requires that: language around which a company can be gal– (e.g., computer chips), or where their needs are vanized and organized. emotional, such as making a statement about At least 30% of revenues must come from their personality (e.g., luxury brands). RBI tends outside the brand’s home country We believe that a strong brand, regardless of the to fall within a category-driven range, but there market in which it operates, drives improved remain significant opportunities for brands to It must have a presence in at least three business performance. It does this through its increase their influence on choice within those major continents, as well as broad ability to influence customer choice and engen- boundaries, or even extend the category range geographic coverage in emerging markets der loyalty; to attract, retain, and motivate talent; where the brand can change consumer behavior. and to lower the cost of financing. Our approach RBI determinations for this study derive, depend- There must be sufficient publicly explicitly takes these factors into consideration. ing on the brand, from one of three methods: available data on the brand’s primary research, a review of historical roles financial performance There are three key components in all of our valu- of brand for companies in that industry, or ations: analyses of the financial performance of expert panel assessment. RBI is multiplied by Economic profit must be expected to be the branded products or services, of the role the the economic profit of the branded products or positive over the longer term, delivering brand plays in the purchase decision, and of the services to determine the earnings attributable a return above the brand’s operating and competitive strength of the brand. to the brand (brand earnings) that contribute financing costs to the valuation total. Financial analysis The brand must have a public profile Brand Strength and awareness above and beyond its This measures the overall financial return to an own marketplace organization’s investors, or its “economic profit.” Brand Strength measures the ability of the brand Economic profit is the after-tax operating profit to create loyalty and, therefore, to keep generat- of the brand, minus a charge for the capital used ing demand and profit into the future. Brand to generate the brand’s revenues and margins. A Strength is scored on a 0–100 scale, based on an brand can only exist and, therefore, create value, evaluation across 10 key factors that InterbrandThese requirements — that a brand be global, national markets and faces awareness if it has a platform on which to do so. Depending believes make a strong brand. Performance onvisible, and relatively transparent in finan- challenges outside of home markets. The on the brand, this platform may include, for these factors is judged relative to other brandscial results — lead to the exclusion of some airline industry is highly capital intensive example, manufacturing facilities, distribution in the industry and relative to other world-classwell-known brands that might otherwise be and, in general, operates on narrow margins. channels, and working capital. Interbrand, brands. The strength of the brand is inverselyexpected to appear in the ranking. The Mars This means that airline brands struggle to therefore, allows for a fair return on this capital related to the level of risk associated with theand BBC brands, for example, are privately achieve positive economic profits over the before determining that the brand itself is creating brand’s financial forecasts. A proprietary formulaheld and do not have publicly available finan- long term. Major pharmaceutical companies, value for its owner. We build a set of financial is used to connect the Brand Strength Score to acial data. Walmart, although it does business while valuable businesses, are also omitted. forecasts over five years for the business, starting brand-specific discount rate. In turn, that rate isin international markets, often does so under This is because consumers tend to build a with revenues and ending with economic profit, used to discount brand earnings back to a presenta variety of brands and, therefore, does not relationship with the product brands rather which then forms the foundation of the brand value, reflecting the likelihood that the brandmeet Interbrand’s global requirements. Like- than with the corporate brand, and there is valuation model. A terminal value is also created, will be able to withstand challenges and generatewise, several industries have been excluded not enough publicly disclosed financial data based on the brand’s expected financial perfor- sustainable returns into the future.for similar reasons. Telecommunications, on pharmaceutical product brands to meet mance beyond the explicit forecast period. Thefor example, tends to be strongly oriented to Interbrand’s criteria. capital charge rate is determined by reference to the industry weighted average cost of capital. 138 Best Global Brands 2012 / Criteria, Methodology, and Brand Strength
  • 72. Methodology Brand Strength Our experience and knowledge show that Four of these factors are more internally driven, 1. Financial 2. Demand 3. Competitive brands in the ideal position to keep generating and reflect the fact that great brands start from Analysis Analysis Analysis demand for the future are those performing within. The remaining six factors are more strongly (i.e., “showing strength” versus the visible externally, acknowledging the fact that competition) across a set of 10 factors that are great brands change their world. The higher outlined below. the Brand Strength Score, the stronger the Economic Role of Brand Brand Strength brand’s advantage. Profit Index (RBI) Score (BSS) Internal factors External factors Clarity Authenticity Brand Brand Risk Clarity internally about what the brand stands The brand is soundly based on an internal truth Earnings (Discount Rate) for and its values, positioning, and proposition. and capability. It has a defined heritage and a Clarity too about target audiences, customer well-grounded value set. It can deliver against insights, and drivers.Because so much hinges the (high) expectations that customers have of it. on this, it is vital that these are articulated and shared across the organization. Relevance The fit with customer/consumer needs, 4. Brand Value: Net present value of brand earnings Commitment desires, and decision criteria across all Internal commitment to brand, and a belief relevant demographics and geographies. internally in the importance of brand. The extent to which the brand receives support in Differentiation terms of time, influence, and investment. The degree to which customers/consumers perceive the brand to have a differentiated Protection positioning distinctive from the competition. How secure the brand is across a number of dimensions: legal protection, proprietary Consistency ingredients or design, scale or geographical spread. The degree to which a brand is experienced without fail across all touchpoints or formats. Responsiveness Presence The ability to respond to market changes, challenges, and opportunities. The brand The degree to which a brand feels omnipresent should have a sense of leadership internally, and is talked about positively by consumers, and a desire and ability to constantly evolve customers, and opinion formers in both and renew itself. traditional and social media. Understanding The brand is not only recognized by customers, but there is also an in-depth knowledge and understanding of its distinctive qualities and characteristics. (Where relevant, this willNote: Interbrand was the first company to have its methodology certified as compliant with the requirements of extend to consumer understanding of theISO 10668 — requirements for monetary brand valuation, as well as playing a key role in the development of the company that owns the brand.)standard itself. 140 Best Global Brands 2012 / Criteria, Methodology, and Brand Strength
  • 73. Contributors Special thanks to- Manfred Abraham - Stuart Green - Robin Rusch Lindsay Beltzer, Shirley Brady, Leslie Butterfield, Caitlin Head of Consulting, Chief Executive Officer, Chief Executive Officer, Interbrand London Interbrand, Asia Pacific BrandWizard Collins, Dana Davis, Matt Derr, Chris DiMaggio, Amy- Jonathan Bernstein - Carola Jain - Nirm Shanbhag Edel-Vaughn, Dean Fields, Eric Flegel, Lorna Fray, Kelly Executive Director of Senior Director of Strategy, Managing Director, Gall, Lauren Gallo, Emily Gross, Steve Harkin, David Strategy, Interbrand Singapore Interbrand New York Interbrand San Francisco Hong, Cavan Huang, Geneen Humm, Terry Kerr, Rachel- John Breen - Andrew Martschenko - Simon Smith Executive Director of Senior Director of Strategy, Digital Director, Europe, Kessman, Bommy Kim, Adam Kostman, Alex Leopold, Research & Analytics, InterbrandHealth Interbrand New York the Middle East, Africa & Latin America, Interbrand Caroline Lewis, Beth Ling, Jenny Lodge, Kelly McCoy, - Sean Mead Jessica McHie, Kelly Milner, Paula Oliveira, Moemen- Peter Cenedella Director of Analytics, - Lizzy Stallard Creative Copy Director, Interbrand Design Forum Director of New Business & Omara, Shayla Persaud, Melissa Pike, Andreana Interbrand New York Marketing, Interbrand London - Cassidy Morgan Andreyev Psarros, Miguel Rivera, Rebecca Robins,- Bill Chidley Senior Vice President & Chief Executive Officer, Interbrand, Central & - Erica Velis Content Editor, Interbrand Annie Ruddy, Cristina Russo, Fay Ryu, Jamie Salek, Executive Consultant, Eastern Europe Samantha Schulman, Sarah Springer, Andrea Sullivan, Interbrand Design Forum - Tom Zara - Kevin Perlmutter Executive Director of Pauline Tapin, Roland Tiangco, Constantine Tzanis,- Bertrand Chovet Managing Director, Senior Director of Strategy, Interbrand New York Strategy, Interbrand New York & Global Practice Leader Johnny Trinh, Monica Turner, Mike Waltzer, and to Interbrand Paris of Corporate Citizenship the numerous Interbrand employees who shared their - Alejandro Pinedo- Daniel Diez Managing Director, Photography photographs and their time. Senior Director of Interbrand São Paulo Nao Okawa Global Marketing & David E. Todd Founded in 1974, Interbrand is one of the Follow us Communications, Interbrand - Kristin Reagan world’s largest branding consultancies. With www.facebook.com/interbrand Associate Director, Design nearly 40 offices in 27 countries, Interbrand’s www.twitter.com/interbrand- Bruce Dybvad Global Marketing & Andy Payne combination of rigorous strategy, analytics, and Chief Executive Officer, Communications, Interbrand Chris Campbell world-class design enables it to assist clients in More information on brands Interbrand Cincinnati & Forest Young creating and managing brand value effectively, www.interbrand.com Interbrand Design Forum - Manfredi Ricca Matt van Leeuwen across all touchpoints, in all market dynamics. www.brandchannel.com Managing Director, Erik Wicker- Josh Feldmeth Interbrand Milan Interbrand is widely recognized for its Best Contact Us: Chief Executive Officer, Global Brands report, the definitive guide to Jez Frampton Interbrand New York - Fred Richards the world’s most valuable brands, as well Global Chief Executive Officer Executive Creative Director of as its Best Global Green Brands report, UK Phone +44.(0).20.7554.1183- Jez Frampton CPG, Interbrand Cincinnati which identifies the gap between customer US Phone +1.212.798.7777 Global Chief Executive perception and a brand’s performance relative jez.frampton@interbrand.com Officer, Interbrand - Mike Rocha to sustainability. It is also known for having Global Director of Brand created brandchannel.com, an international Daniel Diez- Michel Gabriel Valuation, Interbrand London online exchange and resource about brand Senior Director, Managing Director, marketing and branding. Global Marketing & Communications Interbrand Zürich US Phone +1.212.798.7729 For more information on Interbrand, visit daniel.diez@interbrand.com www.interbrand.com For reprint permission of this report or its articles, please contact Daniel Diez. 142 Best Global Brands 2012 / Contributors
  • 74. www.bestglobalbrands.com