GLOBAL BRANDS

On FT.com
Interviews with
marketing
experts from
Nespresso, Visa
FINANCIAL TIMES SPECIAL REPORT | Wednesday April 29 2009
and Pampers
www.ft.com/global­brands­2009

Part of a 1920s advertisement for Johnnie Walker whisky. Many of this year’s strongest brands are from older western companies that have taken advantage of their recognition in emerging markets to expand geographically

Old­timers and high­tech prosper

Financial services
apart, many areas
show resilience to
the economic storm,
says John Gapper
organisation, the 2008 presi-
dential campaign of Barack
Obama was an object lesson
to marketers.
Mr Obama’s reward was to
become US president, and to
boost sales of his books. He
did not, however, crack the
BrandZ ranking of the top
was breaking out all around.
One reason for that was
“survivorship bias” – the
fact that 15 of the brands
that lost value this year also
fell out of the top 100, to be
replaced by up-and-comers.
If the BrandZ ranking still
contained Wachovia, Deut-
the product and disappoint-
ing expectations, but it takes
time. “People do not blame
the brands for everything
that has gone wrong. They
blame the corporations and
the people who ran them,”
says Joanna Seddon, chief
executive of Millward Brown
that,” says Lorraine Twohill,
Google’s global head of mar-
keting.
Ms Seddon echoes this
focus on building brands
through technology that
empowers consumers. “If
you look at the brands that
are doing really well, they
$8.3bn dwarfs the $341m scale are the value offerings.
brand value of Sony’s Play- Global top 10 Aldi, the German discount
Station 3. By value supermarket chain that
Technology is one driver Rank Brand Value owns Trader Joe’s in the US,
of emerging brands; the ($m) is one of the 15 entrants to
other is geography. 1 Google 100,039 the top 100. Meanwhile, “fast
This year’s rankings con- 2 Microsoft 76,249 fashion” discount brands
tinue the shift to emerging 3 Coca-Cola* 67,625 such as H&M and Zara now
market brands that have 4 IBM 66,622 figure strongly in the

T
he past year has
been a challenging
one for companies,
chief executives and
investors. For brands, all
things considered, it could
have been worse.
For a start, the world wit-
nessed one of the most suc-
cessful campaigns in history
to create a global brand.
From its mastery of the
internet and brand values to
its relentless discipline and
Inside
Nostalgia The brands
that do best balance
evoking happy memories
with innovation, finds
Emma Jacobs Page 2
Global top 100 ranking
Joanna Seddon explains a
methodology based on
customer research and
financial analysis Page 2
Banks and insurers
Andrew Baxter notes ups
and downs for banks and
falls for insurers Page 3
100 global brands drawn up
by Millward Brown Optimor
for the Financial Times.
You do not obtain a lofty
brand valuation by attract-
ing voters rather than pay-
ing customers.
Yet, even for those brands
that are measured on finan-
cial criteria, this was a year
of relative resilience. The
value of the top 100 actually
rose slightly to about
$2,000bn, as financial chaos
On FT.com
Sectoral round­up
Andrew Baxter presents
a detailed analysis of the
17 categories included in
the ranking – apparel, beer,
bottled water, cars, coffee,
fast food, financial
institutions, gaming
consoles, insurance, luxury
goods, mobile operators,
motor fuel, personal care,
retail, soft drinks, spirits
and technology – plus a
ranking table for each one
at: www.ft.com/
global­brands­2009
sche Bank, Merrill Lynch, Optimor.
UBS and American Interna- Those that have lagged for
tional Group, things would a few years, rather than
have been different. dying, can often be expanded
Yet brands are also resil- again successfully. One story
ient. Their value measures of this year’s rankings is
the emotional and intangible that many of the 15 new
connection that consumers entrants – such as Pampers,
feel, rather than the func- Wrigley’s, Visa, Nivea and
tionality of the product or KFC – have been around for
service to which they are a long time but have gained
attached. a new lease of life, often in
You can destroy a brand emerging markets.
by relentlessly downgrading Furthermore, those that
have established a strong
Top 20 risers brand and keep on investing
By brand value growth, (year-on-year) in it can obtain enormous
rewards. That is true of clas-
Brand Brand
value sic US names such as Coca-
Cola and McDonald’s and it
growth
(%) is above all true of Google,
China Merchants Bank 168 which not only came top of
BlackBerry 100 the ranking again this year,
Amazon 85 but opened up a $24bn gap
Wendy’s 72 over Microsoft in second
AT&T 67
place.
Aldi 49
Auchan 48 Controversies such as
Vodafone 45 privacy protests over the
Johnnie Walker 42 launch of its Street View
Kronenbourg 1664 41 application in the UK and
O2 36 rising tensions with copy-
ICBC 36 right owners and publishers
Rolex 35 have not dented the general
Movistar 34 enthusiasm among consum-
McDonald’s 34
ers for Google’s services.
BBVA 33
Marlboro 33 “We know that without
Chivas 30 consumers, you have noth-
Nespresso 27 ing and there is a great ele-
Nivea 24 ment of trust in us. We
Source: Millward Brown Optimor (in- think about the consumer
cluding data from BrandZ, Datamoni- first and expect everything
tor and Bloomberg) else to fall into place after
are not about telling the cus-
tomer what to think or do,
but offering the ingredients
of an experience the cus-
tomer can own.”
The relative success of
technology brands, while
those in financial services
and the auto industry have
weakened, is a theme in this
‘We think about
the consumer
first and expect
everything else to
fall into place
after that’
year’s rankings. The popu-
larity of smart phones has
pushed Vodafone into the
top 10 for the first time – the
first UK brand to break in –
and has benefited AT&T, the
network provider for Apple’s
iPhone in the US.
The degree to which tech-
nology brands can not only
boost their parent company’s
fortunes, but also dominate
rivals in a “winner takes all”
manner is evident.
Nintendo, an also-ran in
the second generation of
video games consoles, has
had such success with the
third generation Wii that the
console’s brand value of
expanded globally and taken
on western incumbents. The
changing balance of power
was most pronounced in
financial services, where US
and European banks struck
by the financial crisis made
way for new competitors.
These include China Mer-
chants Bank, a rapidly grow-
ing private sector bank in
China, and Bradesco of Bra-
zil. Such institutions have
gained not only from being
in growth economies, but by
having lower exposure to
international capital mar-
kets and credit derivatives.
In other ways, the rank-
ings represent something of
a return to tradition. Many
of the strongest brands are
old-timers from western
companies that have taken
advantage of their recogni-
tion in emerging markets to
expand geographically.
Brands such as Coca-Cola,
Pampers, Nivea and KFC are
almost as much emerging
markets properties now as
western ones.
Tradition has also worked
in favour of luxury names,
such as those owned by
LVMH and Gucci, compared
with premium-priced mass
brands that are struggling to
stop customers defecting to
value products.
“Traditional brands that
have not compromised and
5 McDonald’s 66,575
6 Apple 63,113
7 China Mobile 61,283
8 GE 59,793
9 Vodafone 53,727
10 Marlboro 49,460
* Includes Diet Coke, Coke Light and
Coke Zero. Source: Millward Brown
Optimor (including data from BrandZ,
Datamonitor and Bloomberg)
gone to the mass market,
such as Rolex, are surviving
the crisis remarkably well,”
says Ms Seddon.
Allied to this is the tradi-
tional trend in recessions of
companies that specialise in
small vices – such as liquors
and chocolate – doing well.
When people have run out
of money for extravagant
treats, they can still comfort
themselves with a shot of
branded whisky at home:
Johnnie Walker’s brand
value has risen by 42 per
cent in a year to $2.5bn.
One global brand that
combines at-home luxury,
technology, international
reach and giving power to
consumers is Nespresso,
Nestle’s home expresso
machine and coffee. Its value
is estimated to have risen by
27 per cent to $2.5bn, leaving
Starbucks – which is being
squeezed by being in the
mid-market – appearing rela-
tively puny with a brand
value of $850m.
At the other end of the
apparel category, alongside
Nike and Ralph Lauren
For marketers and brand
specialists, therefore, these
rankings provide plenty of
clues about how disparate
brands – with varying forms
of consumer appeal – can
turn themselves into global
giants. But it also reveals
something worrying for com-
panies that seek to enter the
top 100 and stay there.
This year’s volatility, with
15 new entrants compared
with an average of six or
seven in past years, may be
a product of the financial
crisis and the implosion of
Wall Street banks.
But the number of new
entrants shows how competi-
tive the market is becoming.
That competition is com-
ing from new arrivals but
equally from the parents of
traditional brands that are
finding other ways to create
growth – whether through
new forms of marketing or
entering new markets.
“To stay at the top of your
game, you have to inject
freshness and surprise,” says
Ms Twohill of Google. “We
don’t feel big. We still work
in little, scrappy teams and
we feel very small.”
If the world’s biggest
brand is not taking it
easy, everyone else must
work harder to catch up.

Success results when there is trust among colleagues

GLOBAL REACH
Nigel Hollis presents
three principles to
build a presence
around the world
Even with the global economy
in recession, the idea of taking a
successful brand and expanding
it to new markets continues to
be an appealing proposition.
Attracted by the prospect of
revenue from customers in
previously-untapped markets,
many companies aspire to
success on the world stage.
The benefits are obvious: the
majority of brands in the
BrandZ Top 100 Most Valuable
Brands ranking are global in
scope, and thus derive their
value from creating strong,
emotional connections with
customers across countries and
cultures.
But those who aspire to build
and maintain global awareness
would do well to bear in mind
that the success of global
powerhouse brands such as
Microsoft, Coca-Cola and
McDonald’s was not achieved
overnight.
With the exception of the big
internet names such as Google,
Amazon and Yahoo, which are
uniquely blessed in terms of
offering services that have
instant distribution, most of the
brands in the ranking have
taken decades to establish their
global presence.
Here are three main principles
to bear in mind when setting a
course for global brand success.
●Adapt to local needs and
culture
When developing a strategy, it
is critical to figure out what
similarities across markets
might serve globalisation and
what differences might impede
it. Do not assume that what
works at home will work
elsewhere.
Coca-Cola may offer a
universally appealing
proposition of happiness
through refreshment, but to
achieve global success, it has
modified both its product and
packaging.
The need to adapt is not
limited to food and beverages.
Both Carrefour, the French
supermarket group, and B&Q,
the UK home-improvement
retailer, stumbled when they
entered China. Both have since
altered their retail layouts and
product lines. Carrefour now
offers live fish and frogs to eat,
and B&Q offers an extensive
range of aquariums. (The
Chinese believe fish bring good
luck to a home.)
●Seek to tap a human truth
Strong brands are founded on a
promise that resonates with
consumers. It is easier to build
a strong connection with people
across countries and cultures
when the promise taps into a
basic human motivation – an
essential aspect of human
nature that is common to people
around the world.
Johnnie Walker’s extensive
qualitative research around the
world identified the idea of
“progress” as a universally
powerful expression of
masculine success in the 21st
century. The “Keep Walking”
campaign that developed from
this insight helped boost sales
by 48 per cent between 1999 and
2007 and in 2008 its brand value
grew an impressive 42 per cent
compared with the previous
year. Johnnie Walker could
have chosen to customise its
message by country or region,
but did not.
Some brands, particularly
those marketed to international
businesses, need a common
presentation across markets.
Companies such as IBM, Cisco
and Accenture have target
customers that are very
homogeneous. These companies
need to present a consistent face
around the world, so that no
matter where their customers
encounter them, they are
recognisable.
When, by choice or necessity,
a brand has found a promise
Local adaptation: B&Q
offers a wide range of
aquariums in China,
where fish are believed
to bring good luck
to a home
that works across cultures, it
has a foundation on which it
can build other marketing
elements: product and service,
packaging, brochures, website,
creative executions and so on.
●Align the organisation around
the global brand strategy
While in the early days in any
new market, a company must
focus on establishing a viable,
profitable business, a company
that has global aspirations for
its products or services should
not allow unfettered local
customisation. The ability to
take advantage of future
economies of scale will depend
on some commonality of
approach.
Companies need to establish a
common understanding of what
the brand stands for: its
promise, the elements that must
be kept consistent, and the
elements that can vary.
Next they need to ensure that
all employees involved around
the world use the same terms,
processes and metrics, so they
can share ideas, success stories
and lessons learnt. Senior
management must also assign
clear responsibility for the
brand and align the organisation
appropriately.
Failure to do so will result in
endless conflict as global and
local teams fight for what they
believe is right.
Last, and most important,
companies must foster a culture
of trust. The better that people
know their colleagues and trust
them, the more likely they will
be to co-operate and share ideas.
To stimulate and maintain
profitable growth for their
brands, companies competing on
the world stage need to balance
global efficiency against local
effectiveness.
Identifying the ideal balance
between global and local is not
an easy task but, as the Top 100
ranking demonstrates, the
reward for doing so is
enormous.
Nigel Hollis is chief global
analyst at Millward Brown
2 ★ FINANCIAL TIMES WEDNESDAY APRIL 29 2009

Global Brands

The retro brandwagon rolls in

NOSTALGIA
But companies should
be cautious of jumping
on to it, explains
Emma Jacobs
The decision to revive the Arctic
Roll, the frozen dessert that last
enjoyed popularity when the Bay
City Rollers were top of the UK
charts, may have perplexed gour-
mands.
Nigel Slater, the chef and food
writer, once described the 1970s
family favourite as a “sponge-
covered tube of vanilla ice-cream,
its USP [unique selling point]
being the wrapping of wet sponge
and ring of red jam so thin it
could have been drawn on with
an architect’s pen . . . [which]
managed to taste of cold card-
board.”
But food producer Birds Eye’s
confidence that the dessert would
be a hit turned out to be well-
founded. Since its re-release last
December, sales are estimated at
£3.5m or 3m boxes.
Or to put it another way, an
estimated 250 miles of Arctic Roll
have made it to dinner tables,
enough to stretch from London
to Newcastle.
The secret of the recent popu-
larity of the “cold cardboard” lies
not just in it being a cheap treat
for credit-crunched UK families
but because it taps into a reces-
sionary trend for nostalgia.
As Rita Clifton, chairman of
Interbrand, the branding consul-
tancy, says: “When you go
through an economic downturn
you find that people go to brands
that provide comfort and evoke
happy memories of secure
times.”
Don Williams, chief executive
of pi global, the branding consul-
tancy, explains: “Brands, by their
very nature are comforting; we
buy them because we are reas-
sured by their promise, because
they are familiar and because
they often become ‘part of the
family’.”
Andy Bond, president and chief
executive of Asda, the supermar-
ket group comments on the
trend: “At a time when people
are having to watch the pennies,
many are reverting back to doing
things like their parents
did . . . As a result we’re seeing
the sales of brands like Kellogg’s,
Bird’s custard and Vimto rising
faster than others, as people hark
back to their youth.”
Ms Clifton says that in the cur-
rent climate, “Johnny-come-
lately brands offering excitement
and novelty are not necessarily
going to do well.”
Nostalgia shopping is not a
new phenomenon.
Robert Opie, founder of the
Museum of Brands, Packaging
and Advertising, says that, in the
Depression, brands sought to
associate themselves with a past,
happier era.
When Nestlé launched its box
of Quality Street chocolates in
the late 1930s, it created a brand
steeped in Victoriana. Mr Opie or personality [and] may cause
explains: “Then there was a lot of long-term confusion and dam-
sentiment for Victorian times age”. If that were to happen,
because they represented an era
remembered as stable and
“someone, at some point in the
near future, has to virtually res-
calm . . . so Quality Street used cue the brand”.
images of ladies in crinolines and
stagecoaches.”
Robert Jones, head of new
thinking at Wolff Olins, the
Given the recessionary trend brand consultants, points out
for nostalgia, should companies that consumers are quick to
make efforts to evoke a past detect inconsistency and a lack
golden age in their branding and of authenticity. “Generations
packaging? have grown up with advertising,
PepsiCo is certainly hoping so. they’re much more savvy now
It started an eight-week cam- than in the past. People like his-
paign last week for “throwback” tory if it is authentic and true to
the brand.”
He cites the example of Hovis
‘When you go through bread which ran a series of tele-
a downturn you find vision adverts showing a boy
delivering bread in a golden-hued
that people go to mill town in the north of Eng-
brands that provide land. “I don’t think people would
fall for their advertising now. It’s
comfort and evoke based on a false history. People
want to know about what’s in
happy memories’ the bread. They don’t want to
hear a fake story.”
versions of two soft drinks, Pepsi- This scepticism over the story
Cola and Mountain Dew. The of brands is in part, he says, due Happy memories: sales of certain ‘old­fashioned’ products are rising Museum of Brands, Packaging and Advertising
packages and formulas, along to the internet: “People can do
with advertising and promotions,
will evoke the 1960s and 1970s.
comparisons on the internet and
read about brands there.”
keep innovating,” says Mr Jones.
Ms Clifton agrees: “The trick is
Contributors
John Gapper Ursula Milton
This might work for PepsiCo, Moreover, the nature of this not to stay static. FT Columnist Commissioning Editor
which has a history to delve into recession, he suggests, is making “Take Tesco, for example, it
but Mr Williams believes compa- people much more suspicious may trade on its old-fashioned Andrew Baxter Steven Bird
Senior Writer, Special Reports Designer
nies should be cautious of leap- about corporations: “The bank- values – cheap, reliable products
ing on to this nostalgia “brand- ing crisis has meant that anti- and services. But it also inno- Emma Jacobs Andy Mears
wagon”. corporatism is seeping in.” This vates, for example by providing FT Contributor Picture Editor
Such moves may provide a makes it even more likely that new store technology or product
Nigel Hollis For advertising, contact:
short-term fillip to sales but the consumers will smell a fake. lines. Millward Brown Chief Global Analyst Ade Fadare­Chad on:
danger is that brand owners It does not do a brand any “The brands that do best man- tel: +44 020 7873 4418;
jump on trends that have “little favours to stagnate in the past. age to balance evoking memories Joanna Seddon e­mail: ade.fadare­chard@ft.com, or
Millward Brown Optimor Chief Executive your usual FT representative
relevance to the brands essence “Brands will only survive if they with innovating.”

A detailed and quantified view Sectors reveal a

METHODOLOGY
The ranking is based
on customer research
search for value
The impact of the credit
crunch and the global
recession it has caused is
Global top 100 apparent from a detailed look
By value at the category breakdowns in
this year’s BrandZ Top 100
% Brand value change 09 vs. 08

% Brand value change 09 vs. 08

rankings, writes Andrew
and in­depth financial Baxter.
analysis, explains Consumers are seeking
value by shopping at cheaper
Joanna Seddon
Brand value 09 ($m)

Brand value 08 ($m)

Brand value 07 ($m)

Brand value 09 ($m)

Brand value 08 ($m)

Brand value 07 ($m)

supermarkets and saving

Brand contribution

Brand contribution
Brand momentum

Brand momentum
money by eating less
Ranking change

Ranking change

frequently at smart restaurants

I
n the current economic situ- and more often at fast food
ation, as other assets fall in chains.
There is evidence of trading
Brand

Brand

value, brand represents a

Rank

Rank

larger portion of the value down in the recession – in

of the business. Understanding personal care and, to a lesser
its value becomes an increasingly 1 = Google 100,039 86,057 66,434 3 3 16 54 11 Ebay 12,970 11,200 12,927 2 5 16 extent, in spirits. Activities that
important source of financial 2 1 Microsoft 76,249 70,887 54,951 3 8 8 55 22 BBVA 12,549 9,457 N/A 3 N/A 33 can be done easily at home
returns. The key to success 1 Coca-Cola1 67,625 58,208 49,612 4 8 16 are popular – playing
3 56 15 Colgate 12,396 10,576 7,711 4 8 17
resides in the minds of its cus- videogames, drinking coffee
tomers, but a brand is valuable 4 2 IBM 66,622 55,335 33,572 3 5 20 57 -11 Target 12,254 14,738 11,560 3 7 -17 and mixing a whisky, for
only if it can translate customer 5 3 McDonald’s 66,575 49,499 33,138 4 6 34 58 8 H&M 12,061 11,182 8,711 2 8 8 example.
sentiment into financial returns. Even the strong showing for
6 1 Apple 63,113 55,206 24,728 3 9 14 59 -6 Nike 11,999 12,499 10,290 4 7 -4
The BrandZ Top 100 is the only toothpaste brands could be
ranking based on a brand valua- 7 -2 China Mobile 61,283 57,225 41,214 3 8 7 60 13 Subway 10,997 10,335 7,433 4 10 6 linked to saving money – it is
tion methodology that is 8 -6 GE (General Electric) 59,793 71,379 61,880 2 3 -16 a cheaper way to look after
61 New TD 10,991 N/A N/A 3 N/A N/A
grounded in quantitative cus- your teeth than going to the
tomer research and in-depth 9 2 Vodafone 53,727 36,962 21,107 3 2 45 62 26 Movistar 10,911 8,117 4,686 2 4 34 dentist. In the luxury category,
financial analysis. 10 = Marlboro 49,460 37,324 39,166 4 9 33 63 20 T-Mobile 10,864 8,940 8,047 2 7 22 some top brands have
Customer behaviour and brand 11 2 Wal-Mart 41,083 34,547 36,880 2 9 19 responded to current
equity insights come from WPP’s 64 New Wrigley’s 10,841 N/A N/A 5 8 N/A conditions by bringing out
unique BrandZ database – the 12 6 ICBC 38,056 28,004 16,460 2 N/A 36 65 30 Auchan 10,586 7,148 5,570 3 8 48 smaller products that cost less
largest repository of brand equity 13 -4 Nokia 35,163 43,975 31,670 3 4 -20 but do not compromise on
66 -14 Chase 10,582 12,782 11,182 2 N/A -17
data in the world. Covering thou- quality.
14 -2 Toyota 29,907 35,134 33,427 4 6 -15
sands of names and based on 67 -8 Nissan 10,206 11,707 11,189 2 4 -13 Some longer­term trends
more than 1m in-depth inter- 15 * UPS 27,842 30,492 * N/A 3 5 -9 remain apparent, however.
68 New DHL 9,719 N/A N/A 3 5 19
views, it provides a detailed and 16 35 BlackBerry 27,478 13,734 2,802 2 6 100 Consumers’ interest in health
quantified understanding of cus- 69 * FedEx 9,491 11,486* 9,310 3 7 -17 is evidenced by the continued
17 -1 HP 26,745 29,278 24,987 3 5 -9 strong showing for light beers
tomer decision-making the world 70 -30 Home Depot 9,280 15,378 18,335 2 3 -40
over. 18 -1 BMW 23,948 28,015 25,751 4 9 -15 and energy/sports drinks, and
71 18 MTS 9,189 8,077 N/A 3 7 14
Financial data is sourced from 19 10 SAP 23,615 21,669 18,103 2 5 9 mobile operators’ brands are
Bloomberg, analyst reports, Data- 72 New Beeline 8,884 N/A N/A 3 8 N/A still surging ahead, powered by
monitor industry reports, and 20 3 Disney 23,110 23,705 22,572 3 5 -3 the growing demand for data
73 -19 Canon 8,779 12,398 11,413 2 2 -29
company filings with regulatory 21 4 Tesco 22,938 23,208 16,649 4 9 -1 services.
bodies. A team of Millward 74 New Aldi 8,638 N/A N/A 2 8 49 The ranking values brands in
22 8 Gillette 22,919 21,523 17,954 5 6 6
Brown Optimor’s analysts then 75 19 Avon 8,631 7,209 6,558 3 4 20 17 categories, ranging from
prepare financial models for each 23 4 Intel 22,851 22,027 18,707 2 2 4 apparel, beer, bottled water,
76 8 Zara 8,609 8,682 6,469 2 8 -1
brand that link perceptions of it 24 7 China Construction Bank 22,811 19,603 10,757 2 N/A 16 cars and coffee to fast food,
to company revenues, earnings, 77 New O2 8,601 N/A N/A 2 6 36 financial institutions, gaming
and ultimately shareholder and 25 1 Oracle 21,438 22,904 17,809 2 5 -6 consoles, insurance, luxury
78 22 Standard Chartered 8,219 6,855 3,955 2 N/A 20
brand value. 26 35 Amazon 21,294 11,511 5,964 3 10 85 goods, mobile operators, motor
The BrandZ Top 100 Most Valu- 79 New Red Bull 8,154 N/A N/A 3 6 N/A fuel, personal care, retail, soft
27 5 Bank of China 21,192 19,418 13,689 2 N/A 9
able Global Brands study values 80 New China Merchants Bank 8,052 N/A N/A 2 N/A 168 drinks, spirits and technology.
market-facing brands, which 28 27 AT&T 20,059 12,030 9,260 3 7 67 The one new category this year
81 -19 Yahoo 7,927 11,465 13,201 2 2 -31
directly generate revenues and 29 * Louis Vuitton 19,395 18,446 * N/A 4 7 5 is gaming consoles.
profits through the sale of goods 82 * Hermès 7,862 6,951* N/A 4 6 13 Across the categories, there
30 5 HSBC 19,079 18,479 17,457 2 N/A 3
and services to customers. Corpo- 83 -8 JP Morgan 7,852 9,762 8,490 2 N/A -20 are many brands included in
rate brands, such as Procter & 31 New Pampers 18,945 N/A N/A 5 5 N/A the individual category tables
Gamble, Unilever and Nestlé 84 3 Ariel 7,777 8,437 N/A 4 5 -8 that do not make it into the
32 New Nintendo 18,233 N/A N/A 3 5 N/A
which have significant value, 85 -3 Tide 7,512 9,123 N/A 5 6 -18 Top 100, for which the cut­off
33 -11 Cisco 17,965 24,101 18,812 2 5 -25
especially with the investment point is a brand value of about
community, are not included in 34 -1 Verizon Wireless 17,713 19,202 16,261 3 8 -8 86 * Gucci 7,468 6,479* N/A 4 5 15 $6.4bn.
the ranking. 35 -7 Porsche 17,467 21,718 13,372 5 3 -20 87 12 MasterCard 7,427 6,970 4,593 3 N/A 7
Millward Brown Optimor 88 -31 Goldman Sachs 7,415 11,944 8,239 2 N/A -38 For detailed category analysis,
applies an economic use 36 New Visa 16,353 N/A N/A 3 N/A N/A comment from Millward Brown
approach to brand valuation, 37 -16 Wells Fargo 16,228 24,739 24,284 2 N/A -34 89 -33 Starbucks 7,260 12,011 16,057 4 5 -40 Optimor and BrandZ, and
using a methodology similar to 90 3 Barclays 6,992 7,382 6,612 2 N/A -5 individual rankings go to:
38 10 Santander 16,035 14,549 12,094 2 N/A 10
that employed by analysts and www.ft.com/global­brands­2009
accountants. We take a funda- 39 6 NTT DoCoMo 15,776 15,048 19,450 2 3 5 91 -13 State Farm 6,922 9,425 8,738 2 N/A -27
mental approach, based on the 40 -4 Mercedes 15,499 18,044 17,813 4 4 -14 92 -29 Morgan Stanley 6,765 11,327 11,204 2 N/A -40
intrinsic value of the brand,
derived from its ability to gener-
41 -27 Bank of America 15,480 33,092 28,767 2 N/A -53 93 -50 ING4 6,743 15,080 11,539 2 N/A -55 Year-on-year growth
ate demand. The dollar value of 42 -1 Dell 15,422 15,288 13,903 3 3 1 94 New KFC 6,721 6,100 4,485 3 7 10
Category Increase
each brand in the ranking is the 43 6 Accenture 15,076 14,137 10,534 3 3 7 95 -9 Ikea 6,713 8,507 7,373 3 3 -21 in brand
sum of the future earnings that it value (%)
is forecast to generate, dis- 44 -5 Pepsi2 14,996 15,404 11,756 3 8 -3 96 New Nivea 6,572 5,294 3,148 3 4 24
counted to a present day value. 45 -7 L’Oréal 14,991 16,459 12,303 4 6 -9 97 -7 Esprit 6,571 7,907 5,411 3 6 -17 Mobile operators 28
Given the high volatility of Soft drinks 24
46 -26 American Express 14,963 24,816 23,113 3 N/A -40 98 New Bradesco 6,565 N/A N/A 2 N/A N/A
financial markets over the past Coffee 18
12 months, the valuation gener- 47 -3 Carrefour 14,961 15,057 11,710 3 5 -1 99 -8 Tim 6,409 7,903 8,440 2 3 -19
Fast food 16
ated by this intrinsic approach is, 48 -14 RBC 14,894 18,995 N/A 3 N/A -22 100 New Lowe’s 6,394 N/A N/A 2 5 N/A
in some cases high, relative to Beer 15
49 -34 Citi 14,608 30,318 33,706 3 N/A -52 1
The brand value of Coca-Cola includes Diet Coke, Coke Light and Coke Zero
current market capitalisation, 2 The brand value of Pepsi includes Diet Pepsi and Pepsi Luxury 10
reflecting true value rather than 50 -13 Honda 14,571 16,649 15,465 3 7 -12 3
Budweiser’s value includes both Bud Light and Bud Retail 7
current market swings. 51 -4 Siemens 13,562 14,665 9,111 2 2 -8 4
ING value includes ING Bank and ING Insurance
The brand value is calculated Spirits 5
52 18 Budweiser 3
13,292 10,839 9,977 3 5 23 * Restated to reflect additional data inputs. Ranking change therefore not comparable
in three steps: Technology 2
●First, the proportion of a com- 53 -3 Orange 13,242 14,093 9,922 2 6 -6 Source: Millward Brown Optimor (including data from BrandZ, Datamonitor and Bloomberg) Personal care 2
pany’s earnings that is generated
“under the banner of the brand” any investment in the brand to ings. Millward Brown Optimor brands by category and by coun- that is aligned with the methods based on this evaluation. Brand Water 2
is determined. In the case of earn: the value the brand adds to establishes it through analysis of try, changes in customer priori- used by the analyst community, momentum is displayed as an Motor fuel -5
Coca-Cola, for instance, some the business. This provides us country-, market-, and brand- ties, and the role of brand versus and also takes into account index from 1-10 (10 is the highest Apparel -9
earnings are not branded Coca- with a bottom-up view of the specific customer research from other factors such as price and brand-specific growth opportuni- score).
Cola, but come from Fanta, earnings of the business. the BrandZ database. location. Brand contribution is ties and barriers. Millward Brown Optimor Financial Institutions -11
Sprite or Minute Maid. From ●Second, only a portion of these This guarantees that the brand displayed as an index from 1-5 (5 To capture the weaker eco- has refined its analysis over the Cars -22
these branded earnings, we sub- earnings can actually be consid- contribution is rooted in real-life is the highest). nomic outlook, all projections past four years to enhance the Insurance -48
tract capital charges. This ered as being driven by brand customer perceptions and behav- ●In the final step, the growth have been validated using IMF ranking’s ability to help finance
Source: Millward Brown Optimor
ensures we take account only of equity. This is the “brand contri- iour, rather than subjective opin- potential of these branded earn- economic growth forecasts. and marketing departments
(including data from BrandZ,
the value, above and beyond bution”: the degree to which it ion. This allows us to assess dif- ings is taken into account. This The momentum indicator that understand and develop their
Datamonitor and Bloomberg)
what investors would require plays a role in generating earn- ferences in the importance of provides an earnings multiple shows each brand’s growth is brands.
FINANCIAL TIMES WEDNESDAY APRIL 29 2009 ★ 3

Global Brands

All change for once­mighty financial names

BANKS AND INSURERS near-term growth prospects in the
industry, and to publish instead
The rise of China’s “brand value as a percentage of
banks is noteworthy, market capitalisation”.
This metric shows that the big
says Andrew Baxter rises in the Chinese banks’ overall
brand values are due more to the
strong growth in their businesses –
all brand value – American
Express, RBC, Citi and Bank of
America – all saw their brand
value rise as a percentage of mar-
ket capitalisation. Amexco and
RBC – along with new entrant and
fellow Canadian brand TD (Toron-
to-Dominion) – head the rankings
MBO, while it has used a big Santander, whose brand value rose
expansion of its credit cards busi- 33 and 10 per cent respectively. Financial institutions
nesses to develop its brand. Quite how things will look a year Top 15 by brand value
Another entrant to the Top 100 is
Bradesco, the first from Brazil to
on remains to be seen: until the
autumn, Spanish banks were being
Rank Brand BV $m BC BV as % of mar-
make it to the ranking, demon- lauded for their strong capitalisa-
ket cap*
strating the growing importance of tion but the outlook has darkened 1 ICBC 38,056 2 21
another of the Bric nations – Bra- in recent months. 2 China Construction Bank 22,811 2 18

T
he headline facts in the a key element in the overall if viewed on this basis, whereas zil, Russia, India and China. In the insurance sector top 10, by 3 Bank of China 21,192 2 20
BrandZ financial institu- BrandZ methodology – than to the HSBC’s fourth place in the cate- Cristiana Pearson, associate contrast, every company has seen
4 HSBC 19,079 2 15
tions category bear wit- power of their brands per se. Con- gory ranking is due more to its director at MBO, highlights Bra- its brand value fall. Allianz saw a
ness to the carnage in the versely, the sharp falls in overall desco as “a very special brand in modest 9 per cent decline, while 5 Visa 16,353 3 37
sector over the past year. brand value for some of the west- Brazil – they’ve benefited tremen- Mitsui Sumitomo and AIG fell a 6 Wells Fargo 16,228 2 15
Bank of America and Citi have ern banks reflects the ravages of None of the insurers dously from both their financial whopping 82 and 79 per cent, 7 Santander 16,035 2 24
previously slugged it out for top the credit crunch on their business has a very strong stability and the country’s eco- respectively.
8 Bank of America 15,480 2 20
spot, but now they have fallen to rather than any issue with the nomic growth in Brazil, where the Here again, value as a percent-
8th and 11th respectively. In their brand. brand, so this sector is lower socio-economic groups in age of business value has been cal- 9 American Express 14,963 3 61
place, the category is headed by “Many of the banks have main- the biggest loser in particular experienced significant culated rather than momentum, 10 RBC 14,894 3 34
China’s ICBC, followed by its two tained their brand equity and the growth. Bradesco has always been but the scores are much lower 11 Citi 14,608 3 33
compatriots China Construction loyalty and trust of their custom- terms of brand value very strong among this group, than for the banks and there is less 12 BBVA 12,549 3 30
Bank and Bank of China. ers to a surprising degree,” says being known as ‘the bank with differentiation.
Meanwhile Wachovia, Merrill Joanna Seddon, Millward Brown open doors’”. Some insurers managed modest 13 TD 10,991 3 36
Lynch, Deutsche Bank and UBS Optimor’s (MBO) chief executive. enormous presence in China and The other notable new entrant in increases in brand value as a per- 14 Chase 10,582 2 9
have dropped out of the Top 100 “The financial collapse is because elsewhere in Asia. this category is Visa, the world’s centage of market capitalisation, 15 Standard Chartered 8,219 2 43
altogether. of things that were nothing to do Underlining the strength and largest payment card network, but that is more a reflection of
Scratch beneath the surface, with brand – it wasn’t the brand growing influence of the Chinese which could not be valued for the sharply falling capitalisation than Financial institutions
however, and there is an interest- that decided to make all those sub- banks is China Merchants Bank, BrandZ ranking before last year’s any inherent power in the brand. Top 15 ranked by BV as % of market capitalisation
ing message about the value of prime loans. new to the BrandZ Top 100, but initial public offering. (For more on As Ms Seddon puts it: “None of
brand and the importance of main- “Brand in general has gone down able to boast the biggest single rise the development of the Visa brand, them has a very strong brand.” As Rank Brand BV as % of market BV 09 ($m)
capitalisation*
taining it. This is highlighted by much less than the business; it is in brand value of any company see the interview with Antonio a result, this sector is by a long
Millward Brown’s decision not to playing an important part in some covered – 168 per cent. Its heavy Lucio, its chief marketing officer, chalk the biggest loser in terms of 1 American Express 61 14,963
calculate brand momentum for this of these banks, keeping up their focus on customer service sets it at www.ft.com/global-brands-2009.) overall brand value, down 48 per 2 Standard Chartered 43 8,219
category, given the capital mar- value when times are rough.” apart from other Chinese banks, A bright spot was the perform- cent compared with just 11 per 3 Visa 37 16,353
kets’ difficulty in assessing even Four big fallers in terms of over- says Frederica Fok, consultant at ance of Spanish banks BBVA and cent for financial institutions. 4 TD 36 10,991
5 RBC 34 14,894
Insurance Insurance 6 Citi 33 14,608
Top 10 by brand value Top 10 by BV as % of market capitalisation 7 BBVA 30 12,549
Rank Brand BV 09 BC BV as % of Rank Brand BV as % of market BV ($m) 8 Santander 24 16,035
($m) market cap* capitalisation* 9 ICBC 21 38,056
1 State Farm 6,922 2 N/A** 1 Allstate 17 2,371
10 Bank of China 20 21,192
2 Allianz 5,669 2 15 2 ING 15 2,936
11 Bank of America 20 15,480
3 Axa 3,701 1 9 3 Allianz 15 5,669
12 China Construction Bank 18 22,811
4 ING 2,936 2 15 4 Axa 9 3,701
13 Wells Fargo 15 16,228
5 Allstate 2,371 2 17 5 MetLife 8 1,856
6 Geico 1,916 2 N/A*** 6 AIG 6 1,488 14 HSBC 15 19,079
7 MetLife 1,856 2 8 7 Zurich 6 1,659 15 Chase 9 10,582
8 Zurich 1,659 2 6 8 Sumitomo Life Insurance 4 1,073 *For financial institutions and insurers, we have chosen not to calculate brand
momentum, given capital markets’ difficulty in assessing even near-term growth
9 AIG 1,488 1 6 State Farm N/A** 6,922 in the industry. We have instead chosen to publish brand value as a percentage of
10 Sumitomo Life Insurance 1,073 2 4 Geico N/A*** 1,916 market capitalisation, to show that most brands can uphold the business in difficult
times. Source: Millward Brown Optimor (including data from BrandZ,
** State Farm is a private company. *** Not applicable as Berkshire Hathaway’s market cap is not reflective of the Geico brand.
China Merchants Bank – the single biggest riser Bloomberg Datamonitor and Bloomberg)

Five newcomers reach regional top 10s

While the four regional BrandZ top 10s are
largely unchanged, five brands have broken
in, highlighting some of the broader
changes in Millward Brown Optimor’s
rankings over the past year, writes
Andrew Baxter.
In North America, Bank of America has
been displaced by BlackBerry. The brand
entered the top 100 in last year’s ranking
after its brand value rose a massive
390 per cent. In this year’s ranking,
the brand value has merely doubled –
an achievement eclipsed only by the
168 per cent rise at China Merchants Bank.
In Asia, Nintendo – a new entrant to the
overall top 100 – is in sixth spot regionally,
and Samsung has slipped out of the top 10.
When split into individual product brands,
the older Nintendo DS handheld game
console edges out the Wii for top place in
the gaming consoles category, new to the
ranking this year, but it is the Wii that has
been responsible for the huge recent
growth in the brand.
The Europe (including UK) top 10 sees
Santander, with a brand value of just over
$16bn, pushing out L’Oréal, which suffered
a 9 per cent fall in brand value in what was
a very mixed performance by personal care
brands.
Vodafone, the UK mobile operator,
remains firmly at the top of the UK table,
increasing its lead over Tesco in second
place. New entrants are O2, another mobile
operator, and Smirnoff, Diageo’s vodka
brand and leading spirits brand overall.

North America
Top 10 by brand value
Rank Brand BV 09 $m BC BM
1 Google 100,039 3 3
2 Microsoft 76,249 3 8
3 Coca-Cola* 67,625 4 8
4 IBM 66,622 3 5
5 McDonald’s 66,575 4 6
6 Apple 63,113 3 9
7 GE (General Electric) 59,793 2 3
8 Marlboro 49,460 4 9
9 Wal-Mart 41,083 2 9
10 BlackBerry 27,478 2 6
*The brand of Coca-Cola includes Diet Coke, Coke Light and Coke Zero.
Source: Millward Brown Optimor (including data from BrandZ, Datamonitor
and Bloomberg)

Asia
Top 10 by brand value
Rank Brand BV 09 $m BC BM
1 China Mobile 61,283 3 8
2 ICBC 38,056 2 N/A
3 Toyota 29,907 4 6
4 China Construction Bank 22,811 2 N/A
5 Bank of China 21,192 2 N/A
6 Nintendo 18,233 3 5
7 NTT DoCoMo 15,776 2 3
8 Honda 14,571 3 7
9 Nissan 10,206 2 4
10 Canon 8,779 2 2
Source: Millward Brown Optimor (including data from BrandZ, Datamonitor and
Bloomberg)

Europe including UK
Top 10 by brand value
Rank Brand BV 09 $m BC BM
1 Vodafone 53,727 3 2
2 Nokia 35,163 3 4
3 BMW 23,948 4 9
4 SAP 23,615 2 5
5 Tesco 22,938 4 9
6 Louis Vuitton 19,395 4 7
7 HSBC 19,079 2 N/A
8 Porsche 17,467 5 3
9 Santander 16,035 2 N/A
10 Mercedes 15,499 4 4
Source: Millward Brown Optimor (including data from BrandZ, Datamonitor and
Bloomberg)

UK
Top 10 by brand value
Rank Brand BV 09 $m BC BM
1 Vodafone 53,727 3 2
2 Tesco 22,938 4 9
3 HSBC 19,079 2 N/A
4 O2 8,601 2 6
5 Standard Chartered Bank 8,219 2 N/A
6 Barclays 6,992 2 N/A
7 Marks & Spencer 6,029 4 8
8 BP 5,936 2 2
9 Asda 5,413 3 9
10 Smirnoff 5,201 3 4
Source: Millward Brown Optimor (including data from BrandZ, Datamonitor and
Bloomberg)
4 ★ FINANCIAL TIMES WEDNESDAY APRIL 29 2009