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FINANCIAL TIMES SPECIAL REPORT | Thursday May 19 2011
www.ft.com/globalbrands2011 | twitter.com/ftreports
Inside this issue
Financial services A gulf in perception of how the credit crisis was handled is affecting rankings Page 3 China Big companies face long road to recognition as global brands Page 4 Other Bric brands Developing nations jostle for position in league table of big names Page 5 Environment Longterm impact of green issues is played down by experts as customers buy on price and convenience Page 6 Opinion With environmental awareness rising, what are the risks and opportunities for brands? Page 6 Social media Why it is better for brand owners to listen than to shout Page 7
Big names f ly high despite the gloom
Amid claims that Top 20 risers investing in brands By brand value growth, (year-on-year) during the crisis Brand paid off, the reality Facebook is more nuanced, Baidu write Louise Lucas Wells Fargo and Barney Jopson Burberry Apple
Brand value growth (%) 246 141 97 86 84 68 58 53 45 41 40 39 37 35 34 31 31 29 28 27
he obituaries proved premature. In the era of austerity, complete with subdued consumers and cost-cutting companies, big brands are flourishing. Those who earn their living from the sector like to say this proves the received wisdom is correct: investing in brands through recessionary downturns pays off. But, as this year’s BrandZ survey shows, the reality is more nuanced. Some brands have gained traction – or even a second wind – on the back of new, growing markets such as China. Others owe their renaissance or continued growth trajectory to visionary leaders, new products or a booming marketplace – in the case of newly minted most valuable brand, Apple, all three at once. Overall, the value of the Top 100 brands is up 17 per cent on last year; they are now worth $2,400bn, according to Millward Brown Optimor, the WPP subsidiary that compiles the rankings. That represents an additional $500bn on top of the pre-recession value in 2008, a far cry from the sunken
Skol Pizza Hut Geico Std Chartered Bank Hermès Starbucks Petrobras Amazon UPS Cartier Estée Lauder MetLife Siemens Ikea Canon
Source: Millward Brown Optimor (including data from BrandZ, Kantar Worldpanel and Bloomberg)
‘The big story in this year’s rankings is the power of the tablet’
values prophesied by the pessimists. The recession, they believed, would prompt a mass – and sustained – swing from branded shampoos and cakes to ownlabel. Further up the chain, purveyors and retailers of goods such as Net-a-Porter, the online designer retailer, began offering to wrap customers’ purchases in discreet brown paper rather than the traditional luxe tissue-and-ribbons. Yet while the top brands are worth far more, there have been other changes since the first BrandZ Top 100 in 2006 and the years before the recession. These include the constituents of the ranking, says Cristiana Pearson, MBO director. “The composition is much more heavily geared towards technology and telecom providers, whereas
before you used to see a lot of luxury brands and retail brands – a lot more consumer facing brands. “Tech now represents a third in terms of numbers and about half the value. Cars, luxury and apparel are still recovering from pre-recession levels.” The technology sector continues to hog the limelight, but Google, the topranking brand four years running, has been usurped by Apple. The maker of the iPhone and iPad has seen its brand value increase 859 per cent since 2006, or by $137bn of value. It accounts for 6.4 per cent of the Top 100 by value (compared with 5.6 per cent for Google last year). “The big story in this year’s rankings is the power of the tablet,” says Eileen Campbell, MBO’s global chief executive. This also explains some of the lift in value of mobile network providers, she adds. “Apple had such a big hit with the iPhone4 and the iPad, and that has contributed to its extraordinary growth.” Steve Centrillo, cofounder and managing partner of Smiths, a branding agency in New York, points to music and mobile handsets. “Apple has radicalised two industries in which it had no expertise. “It shows that companies willing to buck the trend can be very successful,” he says. In the process Apple has transformed itself in a way few other brands in the upper rankings have tried or wanted to. For Stuart Wood, executive creative director at Fitch, the design and branding consultancy, it is
Continued on Page 2
the UK-listed oil and gas group crippled by last year’s oil spill in the Gulf of Mexico. a new entrant after racking up the biggest percentage growth. In the 2010 ranking Toyota. A continuing trend is the rise of the Bric nations. The BrandZ Top 100 Most Valuable Global Brands study values marketfacing brands.314 15.198 22.” She says the agency predicted last year that Toyota would rebound if it addressed its quality issues because it had “such a well of heritage for being a great brand driven by great products”. is a case where – some say – such goodwill has been lost since the glory days of the Walkman. soft drinks. Says Mr Duncan at Smiths: “Big companies have a hard time dealing with change.102 17. to fast food. They’re very frightened right now. Ping An and China Paciﬁc Insurance Source: Millward Brown Optimor (including data from BrandZ.290 17.425 21. Mr Centrillo adds: “Consumers are willing to forgive if you are willing to admit you made a mistake. which incorporates T-Mobile.312 24. must hope for similar goodwill.'10 (%) Brand value 2011 ($m) Brand value 2010 ($m) Brand value 2009 ($m) Brand value 2011 ($m) Brand value 2010 ($m) Brand value 2009 ($m) Brand momentum** 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 2 Apple -1 Google -1 IBM 2 McDonald's -1 Microsoft -1 Coca-Cola 15 AT&T -1 Marlboro -1 China Mobile -1 GE = ICBC -2 Vodafone 7 Verizon 1 Amazon -2 Walmart 14 Wells Fargo -1 UPS -6 HP New Deutsche Telekom2 -2 Visa 39 Movistar -3 Oracle -2 SAP 3 China Construction Bank -11 BlackBerry 3 Louis Vuitton -1 Toyota -5 HSBC 46 Baidu -5 BMW -14 Tesco -4 Gillette New China Life Insurance -1 Pampers New Facebook 14 Orange -13 Bank of China 3 Disney -3 RBC 12 American Express -2 ExxonMobil 29 TD New Agricultural Bank of China -9 Cisco -7 Budweiser3 3 L'Oréal 7 Citi 9 NTT DoCoMo -5 Accenture 3 Mercedes -11 Shell New Tencent/QQ -8 ICICI Bank 10 Subway -8 Colgate 1 153.916 67.731 10. Fitch example. This provides MBO with a bottomup view of the earnings of the branded business. This allows MBO to capture differences in the importance of brands by category and by country. We’ve seen that time and time again.543 13. is close to the maximum.522 57.249 26. BlackBerry’s “brand momentum”.754 13.760 8. Global top 100 By value Brand value change '11 vs. This is the “brand contribution”: the degree to which brand equity plays a role in generating earnings. This reversal comes as RIM is bleeding market share and its chief executive.917 11.498 100.623 24. Toyota is a good example: they had massive recalls. SAP and China Construction Bank that are surely unknown to plenty of BlackBerry-toting types. the growth potential of these branded earnings is taken into account.072 9. that Apple was really that moribund.076 10. telecom providers.033 11. Issues such as those faced by RIM recently are among the challenges for brand managers. the importance of the brand as a financial asset is thrown into sharp relief.335 10.443 10. ’10 (%) ’11 vs. the proportion of a company’s earnings that is generated “under the banner of the brand” is determined. It’s about how you hold your hand up. Then there are the bounce-backs: brands that fell out of favour and have succeeded in rehabilitating themselves.530 17. Kantar Worldpanel data. If I dial back 20 years to the early PC wars.535 8. “Banking is another ‘If you start with solid foundations and trust. with a 37 per cent leap in brand value.647 42. for example. From these branded earnings. Facebook.2 ★ FINANCIAL TIMES THURSDAY MAY 19 2011 Global Brands Rankings Grounded in customer research and financial analysis As businesses emerge from the recession. Most recently. personal care. Covering thousands of brands and based on more than 2m indepth interviews.694 11. Yet help may be at hand with the PlayBook. discounted to a present day value. ** Brand momentum (BM) indicates each brand’s shortterm growth potential.828 37. with a total 19 entrants from Brazil. oil & gas companies. and brandspecific customer research from the BrandZ database. But reversals of fortune can swing both ways. updated annually those with longer memories would also put Apple firmly in the rehabilitation camp. This provides an earnings multiple that is aligned with the methods used by the analyst community.849 81.449 15. Financial data are sourced from Bloomberg.358 9.” Millward Brown’s Ms Campbell puts it succinctly: “In some ways brand value is like a bank account. that is brands that directly generate revenues and profits through the sale of goods and services to customers.901 11. we had all left Apple for dead. ●In the final step. It’s doubly lethal – if that’s possible – to continue to do the wrong thing while you say things you think people want to hear. In the case of CocaCola.737 35.5% -25 S&P 500 -50 2006 07 08 09 10 11 Source: Millward Brown Optimor * Based on the top 100 brands.973 16. They can’t fall back on an old set of rules.291 11.597 17. cars. as Research in Motion knows.000 branches. but its roots are in provision of loans to rural Chinese. making it harder to recover from the breach of its PlayStation network by hackers.782 19. MBO takes a fundamental approach to brand value. Insights into customer behaviour and brand strength come from WPP’s unique BrandZ database – the world’s largest repository of brand equity data.883 10. managing partner of Smiths. which is derived from its ability to generate demand.439 -1 10 -2 -8 16 39 7 1 -27 3 3 7 -3 45 29 41 40 25 n/a n/a 7 -37 -19 -37 12 -28 15 n/a 26 19 15 n/a 17 10 29 n/a -43 4 6 21 4 5 15 n/a -9 14303 12597 14210 14980 11659 9675 12131 12752 17283 12148 12021 11351 12426 8327 9293 8457 8490 9418 n/a n/a 10850 18012 13935 17834 9723 14866 9328 n/a 8377 8778 8986 n/a 8607 8971 7465 n/a 16393 8917 8747 7280 8383 8236 7450 n/a 9283 14571 11999 22851 14961 7427 n/a 12061 14996 n/a 12254 17467 6322 10582 8219 13562 7862 7260 9491 n/a n/a n/a 16035 n/a 18233 9189 35163 12970 n/a n/a n/a 8609 n/a 10206 9280 n/a n/a 15480 8154 8638 6409 6992 8052 n/a n/a 7415 3 4 2 3 4 1 2 4 1 3 5 3 3 2 1 5 5 4 2 4 3 2 1 3 3 3 2 3 3 3 3 2 2 2 2 3 1 4 2 2 1 2 2 3 2 Brand momentum** 7 5 5 7 7 7 8 6 5 3 6 9 3 2 4 8 5 8 5 5 6 5 10 3 9 6 8 7 2 8 6 2 8 3 3 7 3 5 4 5 2 7 3 4 2 Brand contribution* * Brand contribution (BC). plus Mexico. it provides a detailed. and technology. capital charges are subtracted.900 14. brands have the ability to bounce back’ Stuart Wood. As a result. suffered a 27 per cent drop in its brand value following its mass recall. You can make some withdrawals as long as you are putting money back in.168 15. The ranking values brands from 13 categories. Brazil’s Itaú and China Life Insurance.285 111.243 73. beer. Diets and Zero 5 Includes Wii and Nintendo DS 7 Includes sugar-free and Cola Source: Millward Brown Optimor (including data from BrandZ. making up five of the new entrants.263 9. Kantar Worldpanel and Bloomberg) Big names f ly high in spite of the gloom Continued from Page 1 “people power” that is behind Apple’s meteorite rise and ability to reinvent itself. although it regained pole position in the cars Top 10.587 9.” says Peter Walshe. Amazon.471 12. a short term measure of potential for increasing brand value.277 36. insurance.006 12. Agricultural Bank of China. “It’s one of these great stories that committed leaders that focus on financial health. based on the intrinsic value of the brand.948 26. but a brand is valuable only if it can translate customer sentiment into financial value.182 17. Russia.251 8.083 12. made its debut at number 35. ranging from apparel. “[Amazon] is really fitting in with the consumer desires and needs. rather than subjective opinion. not global finance. increased range.306 14. BlackBerry’s first tablet. it provides insight into the sources and drivers of brand value.628 37. Managing brand value is an increasingly important source of financial returns.421 13. ●Only a portion of these earnings can be considered to be driven by brand equity. India and China.838 8. says: “What you do is far more important than what you say.774 28. market.318 44. The BrandZ Top 100 is the only ranking based on a brand valuation methodology that is grounded in quantitative customer research and in depth financial analysis. But Ms Campbell adds that Sectors Category Top brands outperform the market Rebased (%) 50 BrandZ Portfolio* 25 40. changes in customer priorities. earnings. that has been the use of personal data on iPhones – a step away from providing computer hardware.147 10. financial services. are not included. Diets and Zero Deutsche Telekom is rebranding its business to ‘T’.931 12.998 11. but come from Fanta. abruptly ended an interview with the BBC after being asked about problems in India. Kantar Worldpanel and Bloomberg) 0 -0. retail.917 13.258 84 -2 17 23 2 8 n/a 18 9 12 1 -2 n/a 37 -5 97 35 -11 n/a 15 n/a 9 7 22 -20 23 11 -4 141 3 -15 -4 n/a 11 246 n/a -20 15 3 23 10 19 n/a -2 0 11 17 19 5 12 0 n/a 3 19 0 83153 114260 86383 66005 76344 67983 n/a 57047 52616 45054 43927 44404 n/a 27459 39421 18746 26492 39717 n/a 24883 n/a 24817 24291 20929 30708 19781 21769 23408 9356 21816 25741 20663 n/a 17434 5524 n/a 21960 15000 16608 13912 15476 14202 n/a 16719 15991 14129 13403 12969 14734 13736 15112 n/a 14454 12032 14224 63113 100039 66622 66575 76249 67625 n/a 49460 61283 59793 38056 53727 n/a 21294 41083 16228 27842 26745 n/a 16353 n/a 21438 23615 22811 27478 19395 29907 19079 n/a 23948 22938 22919 n/a 18945 n/a n/a 21192 23110 14894 14963 n/a 10991 n/a 17965 13292 14991 14608 15776 15076 15499 n/a n/a n/a 10997 12396 4 4 3 4 4 5 3 4 4 1 2 2 3 3 2 3 4 3 2 4 2 1 3 2 4 5 4 2 5 5 4 5 2 5 3 1 2 3 3 3 1 4 1 2 4 4 2 2 4 5 1 4 3 4 4 9 4 5 7 7 9 4 4 9 2 5 4 4 10 5 2 8 4 4 9 6 7 7 4 9 7 7 2 10 8 7 4 9 5 5 4 4 6 4 2 8 1 6 5 4 6 1 8 3 8 5 9 3 5 6 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 -10 Honda 2 Nike -10 Intel -17 Carrefour 7 MasterCard 12 Petrobras 1 H&M -5 Pepsi4 -30 BP -3 Target -1 Porsche 1 Samsung -7 Chase 20 Standard Chartered Bank 7 Siemens 15 Hermès 13 Starbucks 1 FedEx -4 O2 New Telecom Italia -7 Telcel -46 Santander -27 PetroChina -47 Nintendo5 -8 MTS -38 Nokia -6 eBay New Ping An 4 US Bank 9 Sony6 -6 Zara New Scotiabank -4 Nissan -8 Home Depot New Itaú New China Telecom -55 Bank of America -11 Red Bull7 -11 Aldi 5 Tim -9 Barclays -7 China Merchants Bank = Bradesco New Sberbank -22 Goldman Sachs 14. MBO establishes it through analysis of country.719 15. It has the ability to be there when the consumers need it for their shopping and offers a huge.182 13. using valuation methodology similar to that employed by analysts and accountants.” Brands that dropped out of the Top 100 include well known names such as Avon. This guarantees the brand contribution is rooted in real customer perceptions and behaviour.952 15.131 14.834 19.326 50.759 11.600 8. David Duncan.540 10.558 11. and its other co-founder.555 22. Through extensive coverage of developed and emerging markets. Earnings are then allocated to each brand in each country of operation. This captures value only above and beyond what investors would require any investment in the brand to earn: the value the brand adds to the business. Mr Wood at Fitch says: “When you have huge numbers of people banking with a Chinese or Brazilian bank.877 9.413 12. A similar theme runs through other technology players. Banks and insurers were at the top of the pile. Gucci and Morgan Stanley. and company filings with regulatory bodies. Sony.600 9. usurping Walmart for the first time.160 12.016 78. quantified understanding of customer decisionmaking the world over.” Brand contribution* Ranking Change Ranking Change Brand Brand Rank Rank . but the goodwill around that brand allowed it to bounce back. The key to a brand’s success resides in the minds of its customers.115 16. Companies that have invested in developing strong brands have retained their value better and are bouncing back faster.931 16. which MBO’s brand experts believe may spark a revival. Many are names barely known outside their home country’s borders. the consumer electronics group.” Says Fitch’s Mr Wood: “If you start with solid foundations and trust. I’m not sure how relevant that is to a UK consumer – unless you are an investor. Sprite or Minute Maid. luxury goods.1% Rises and falls across 13 categories Brand value growth Brand value growth ’11 vs.609 11. A team of Millward Brown Optimor’s consultants then prepare financial models for each brand that link brand perceptions to company revenues. may quietly concur.542 19. They’re one mistake away from failure.363 11. Mike Lazaridis. the New York agency. but this year it rose 11 per cent and slipped just one place to 27th.404 29. The Canadian maker of the BlackBerry slipped 11 notches to 25th place – behind names such as Oracle. both today and in the future.674 15. Corporate brands such as Procter & Gamble. and ultimately shareholder and brand value. because there is nowhere to hide with blogs and so on. MBO has refined its analysis over the past six years to help finance and marketing departments understand – and increase – the value of their brands.904 13.668 8. is presented as an index from 1 to a maximum of 5. then brands have the ability to bounce back. is now the top retailer. ’08 (%) Insurance 137 (10*) 6 (-51*) Fast Food 22 42 Luxury 19 -13 Technology 18 32 Apparel 10 -1 Financial Institutions 9 7 Beer 7 32 Cars 7 -27 Soft Drinks 5 26 Personal Care 3 5 Retail 2 7 Oil & Gas 1 n/a Telecom Providers n/a n/a *Figures in brackets exclude new entrants China Life Insurance. T-Home and T-Systems 3 Includes Bud Light 4 Includes Lites. also labouring under issues relating to quality.525 10. the world’s biggest carmaker.440 43.752 69. she adds. It is presented as an index from 1 to a maximum of 10 1 2 Includes Lites.” That is a sentiment with which BP. the portion of earnings that can be considered to be driven by brand equity. “The average chief marketing officer’s tenure is 18 months. MBO applies an economic use approach to brand valuation. some earnings are not branded CocaCola.876 35. The brand value is calculated in three steps: ●First. and the role of brand versus other factors such as price and distribution. product innovation and strategic investment in marketing can rehabilitate the most moribund of brands” – not. Some of Toyota’s fellow Japanese brands.524 24.587 22. “Apple is one of these fabulous stories. while newcomers include Russia’s Sberbank. Unilever and Nestlé which have significant value especially with the investment community. may boast more customers than the US has people (320m) and 24.427 15.735 10. The dollar value of each brand in the ranking is the sum of the future earnings that that brand is forecast to generate. analyst reports. and also takes into account brandspecific growth opportunities and barriers.350 19.553 27.344 15. for instance.'10 (%) Brand value change '11 vs.078 25.909 16.542 12. global BrandZ director at Millward Brown.
The overall value of the brands of financial institutions as a sector increased 9 per cent in this year’s rankings – the sixth-highest riser after insurance.” Banks that have taken direct state support – Royal Bank of Scotland in the UK. where there has been the biggest public and political backlash against the return of big bank profits – and the bumper bonuses that come with them – there are marked differences in the way institutions are perceived. Meanwhile. reflecting the contribution from China Life Insurance and Ping An. The sector’s brand value jumped by 137 per cent. China’s ICBC retained its top ranking within financial services for the second year. for example – and other regions that have escaped largely unscathed from the financial crisis. fell nine places. and Brazil’s Itaú also made firsttime appearances in the top 100 global brands. Insurance providers also had a good year. have fared well. contact: Ian Edwards on: +44 (0)20 7873 3272.076 2 19 Itaú 9.525 3 18 Scotiabank 10. Since 2008.358 1 *Correction to TD’s 2010 value. showing by far the strongest growth in “brand value” of any category. “It’s not to do with the brand itself. although it was still the second-strongest UK brand to Vodafone. which has sparked some of the strongest criticism for the hefty bonuses paid to top bankers. for example – have failed to recover sufficiently to warrant a place in the index. “It has used its brand in a unified way across the world and continues to do that.” he says. a director at MBO. says the merger during the financial crisis caused problems.com. Specifically. “But the top 20 are mostly highly trusted brands . which made their debuts in the top 100 at positions 33 and 83 and took the top two positions in the global insurance sector. Bank of America was the biggest faller. he believes Santander has been downgraded because of the difficulties it has encountered in its ravaged domestic property market. and inward facing. MasterCard and American Express also fared well – all three were in the top 20 financial services brands – building on a strong performance a year ago.900 3 13 MasterCard 13. retained their places among the top 10 financial services companies. according to our data. MBO says the fall reflects upheaval of the brand itself following its merger with Merrill Lynch. email: ian. FT Reports. the Canadian lender. and the Swiss banks. to consumers and businesses.674 2 12 ICICI Bank 14. Conversely. losing 55 places to position 92. the US retail bank that has merged with Wachovia. Brand value in 2010 was $14. For Bank of America.” Mr Walshe points out that some of the banks have been tainted by short-term financial performance. There’s a distinction between the mass of the banks and the ones that are very successful and are reaching into big firstname.lastname@example.org 4 4 China Construction Bank 25. which actually.530 2 7 RBC 17. Cristiana Pearson. a number of banks across parts of the ‘HSBC has used its brand in a unified way across the world and continues to do that’ Peter Walshe. as the combination of Bank of America’s strong retail brand with Merrill Lynch’s investment banking franchise did not immediately chime with customers. HSBC also slipped. just staying within the top 100 brands at position 96.115 3 9 TD* 16. an increasing gulf is emerging between how people perceive the institutions at the heart of the crisis and those that managed to avoid the direct line of fire. to its staff.600 2 20 Bank of America 9. luxury. Mr Walshe says HSBC – whose presence in Asia has provided some insulation from the challenges of the UK market – is an example of a brand that has retained customers’ trust despite a weaker financial performance following the financial crisis. global BrandZ director at Millward Brown. Millward Brown US and Europe that have been more brutally savaged by the financial crisis. Barclays. its loss in brand value is entirely [due to] exposure in disaster markets such as Spain.876 3 3 Visa 28. the financial sector has risen 7 per cent.com/ftreports . were punished.202.com or your usual Financial Times representative All editorial content in this supplement is produced by the Financial Times.FINANCIAL TIMES THURSDAY MAY 19 2011 ★ 3 Global Brands Mixed results for sector in the aftermath of crisis Financial services A gulf in perception of how the meltdown was handled is affecting rankings.543 4 14 Chase 12. China Construction Bank and Bank of China. while Santander and Goldman Sachs – one of last year’s big risers – also tumbled down the ranks.440 2 2 Wells Fargo 36.909 1 11 Citi 15.083 3 15 Standard Chartered Bank 12. Go to www/ft.” she says. Scotiabank. although this was flattered by the first-time inclusion of a number of Chinese firms. All FT Reports are available on FT. fast food.587 2 6 Bank of China 17. . After enjoying an indiscriminate industry-wide boost a year ago – the financial-institutions category rose more than any other in the 2010 BrandZ Top 100. which.” says Peter Walshe. Credit card companies Visa. not $10. however. “Banks generally have been losing trust over the past few years. Commissioning Editor Sharlene Goff Retail Banking Correspondent Kathrin Hille Beijing Correspondent Rod Newing FT Contributor Jessica Twentyman FT Contributor Steven Bird Designer Andy Mears Picture Editor For advertising details. are trusted.931 4 10 Agricultural Bank of China 16. while Agricultural Bank of China made its debut in both the sector table and the overall top 100.524 2 5 HSBC 22. .033 2 16 Santander 11. “It is a good example of a company that has built up its ethos and its brand both outward facing. making up for the sharp fall it suffered the year before that – the picture for banks this time around is far more mixed.363 2 17 US Bank 10. and China Pacific Insurance. technology and apparel. In the UK. Morgan Stanley and JPMorgan dropped out of the top 100 completely. Two other Chinese groups. Better news comes for Standard Chartered.com/reports Follow FT Reports at twitter. and Wells Fargo. like HSBC is focused on Asia and other emerging markets. Institutions across fastgrowing emerging markets – China and Brazil.” he says. 1 ICBC 44. “I think this created some brand confusion. says Sharlene Goff Financial institutions Top 20 by brand value Rank Brand Brand value $M Brand contribution Brand momentum 5 2 9 4 2 4 4 2 1 6 1 3 7 3 2 5 2 2 3 3 Brand value change (%) 1 97 15 22 -4 -20 3 23 19 n/a 17 3 16 -3 45 -37 26 n/a 29 -43 A s the financial sector scrambles back to its feet after the catastrophic meltdown of 2008. rather than inherent problems with their brands.182 3 8 American Express 17.274 Source: Millward Brown Optimor (including data from BrandZ and Bloomberg) Giving a good account of itself: ICBC retains top ranking in the sector Top 20 Bloomberg Contributors Louise Lucas Consumer Industries Editor Barney Jopson US Retail Correspondent Andrew Baxter Senior Writer. which were both among the top 10 risers this year.
198 4 7 22.530 2 4 16. the country seems far ahead of other large emerging markets such as Brazil.555 5 10 19. “Many people in China have that dream of building a luxury brand. Ogilvy & Mather China sports shoe brand. It is the world’s largest mobile operator by subscribers and was also the first Chinese brand to enter the BrandZ Top 100 ranking when it was started in 2006. as its expansion there has been driven and managed by its local distributor. there is no good reason for them to go global quickly. a Shanghai-based shoemaker that set up its own brand in 2006. an e-commerce company. Experts believe Chinese mobile handset makers might follow in the white goods companies’ footprints as the industry has become equally competitive. “There is much stronger negative sentiment about China in certain respects than there is regarding other Bric markets – if you ask consumers what they associate with Chinese products. such companies have yet to fully understand what branding means. demonstrating the brand has a certain global standing. In some sectors where US and European brands are strong. With a few exceptions. which used to do just contract work for export. In Pakistan and Nigeria. Four of this year’s five new Chinese entrants meet that profile: Ping An Insurance. writes Kathrin Hille rom the plain numbers.440 2 5 25. As people develop a growing pride in their economic clout and cultural renaissance and as the domestic consumer market is growing fast.” says Mr Tao. Haier is now a high-end brand. has built a strong position in several developing markets.” The majority of the Chinese companies represented in the ranking are stateowned enterprises in businesses that heavily rely on large population numbers such as banking. there are some much more promising Chinese brands. their thinking is still very much focused on how the government sees them. and Lenovo. the ‘Many dream of building a luxury brand. they’ll tell you that everything cheap is made in China. Suning. it also feels the need to cite its founders’ credentials as former contract manufacturers for European brands as proof of taste and quality. One example is StellaLuna. “Most of them are in there because of the scale they have in China. With 12 Chinese brands in the Top 100. are promising brands he bets on.” says Raymond Tao. Of the 11 new entrants in the BrandZ Top 100 ranking. “They [state-owned enterprises] need to think harder about how consumers see them. Elsewhere. head of Greater China at Millward Brown. The big exception is the white-goods sector. “As their domestic market is so big and growing. “The big reality is: these are still Chinese.” says Adrian Gonzalez. which operates the world’s largest instant messaging service. Mr Gonzalez sees other technology firms as promising candidates. Agricultural Bank of China. the world’s fourth-largest PC vendor. and the company has also seen some success with a new refrigerator model that appealed to young. five are Chinese.326 4 9 44. Branding experts see the decision by Li Ning. and their road will be a long and hard one. And Chinese companies now dominate the Asia Top 10 with eight entries (see table below). 360Buy.449 2 8 15. a small Chinese car brand which has been quite successful in Brazil. insurance and telecoms. Huawei. Other brands which have started internationalising are often still competing on price and distribution networks. the quality is just not there.” China Mobile is seen as the big exception. Russia and India. which have expressed growing ambitions to build brands.542 2 9 17. but maybe it’ll take another generation. plans for home grown luxury brands abound. which compiles the ranking. Similar hurdles exist in the luxury industry. president of Ogilvy & Mather Advertising in China. Haier. is an example. the company whose chief executive once started out by publicly smashing poorquality refrigerators with a hammer to demonstrate his commitment to high quality. But Chinese companies have only just started taking their first steps towards building brands. It agreed to work with Ogilvy to overhaul its sub-brand for young users. and they’ll think of quality problems. Baidu. Other state enterprises “have tried in terms of service and product. one could conclude that China is on the verge of becoming a global brand powerhouse. but in terms of communication. how distributors see them. which has recently started pushing the expansion of its devices arm.524 2 4 24. experts say. While the company says it believes China will replace Europe as the global centre of fashion in the 21st century. Therefore analysts believe it will be years before Chi- Putting their best foot forward: shoes from Shanghaibased StellaLuna’s 2011 spring and summer collection nese carmakers. the telecom network gear maker. Things are at an even more embryonic stage when it comes to brand internationalisation. China Telecom and China Life Insurance. Increasing numbers of fashion companies from south-eastern China. SAC. affluent consumers in Europe. entered the ranking for the first time.131 4 9 Source: Millward Brown Optimor (including data from BrandZ and Bloomberg) . brands. an exercise which ended up transforming the entire brand. Asia Rank Top 10 by brand value 1 2 3 4 5 6 7 8 9 10 Brand China Mobile ICBC China Construction Bank Toyota Baidu China Life Insurance Bank of China Agricultural Bank of China NTT DoCoMo Tencent/QQ BV 2011 ($m) BC BM 57. an electronics retailer which is rapidly expanding online. Chinese brands face many more hurdles. not global. the country’s largest online search engine. saw its brand value grow at the second-fastest pace of all Top 100 companies this year.” says Mr Tao. have a chance to be trusted and recognised abroad.4 ★ FINANCIAL TIMES THURSDAY MAY 19 2011 Global Brands Big companies face long road to recognition F China Most groups are known locally rather than worldwide. but maybe it’ll take another generation’ Raymond Tao.” says Mr Gonzalez. to set up a shop in Paris as a move mainly aimed at Chinese consumers. “So far. and Tencent. is a closely watched candidate. It markets its 2011 summer collection with association with French femmes fatales.” says Mr Gonzalez.909 1 6 15. branding experts say. have begun calling in advertising and branding consultants as they think about launching their own brands.
both banks. says Mr Cooper. Russia and India strive for place at top Other Bric brands Developing nations jostle for position in league table of big names. says Mr Walshe: “This personal endorsement and personal selling model is also making the brand very much part of the interaction between consumers and the service. Petrobras has also notched up the biggest rise in brand value (39 per cent) of its oil and gas peers. well-being”. It is the sixth-highest riser overall. so it is in good company. especially in places where there are a lot of Latin Americans. creating a lot of brand value for itself. followed by new entrant Itaú (90th) and Bradesco (98th). Lukoil. Natura uses “real women” rather than unfeasibly thin models in its ads. But the bank is also investing heavily in sponsorship abroad. sponsoring part of the Rio carnival. Outside the Top 100. so maybe they’re laying the foundations for something that might change. and also appealing to the whole lifestyle theme. Skol. a bit more international than the Chinese ones. “They call themselves the Latin American bank and their communication in Brazil has also shifted. with ICICI. for example. Cristiana Pearson. the Brazilian and Chinese brands in the Top 100 share some characteristics as they are generally infrastructure. The “enjoy life. the Brazilian and Chinese brands in the Top 100 share some characteristics rebranded everything to Itaú. The other three are Amazon. On the other hand. All three of these Brazilian brands score a maximum five for brand contribution. Petrobras is the top Brazilian brand in 61st place. due to its international ambitions. Hence. Millward Brown’s global BrandZ director.” he says. Both those countries have a bigger middle class and Indian purchasing power is concentrated among a smaller number of people. the big banking group.” says Nick Cooper. notes Mr Walshe. Still. while its rival mobile operator MTS is joined by Sberbank. individually. and sells its natural products (in recycled packaging) door-todoor like Avon. is a similar story. while Natura also scores highly for brand momentum. MBO’s managing director for Europe.” Ms Pearson says. it’s part of their lifestyle. Baidu and PetroChina.6bn. India has marked time this year.FINANCIAL TIMES THURSDAY MAY 19 2011 ★ 5 Global Brands Brazil.” A further issue. a director at Millward Brown Optimor. says it is not simply size and financial muscle that has got the Brazilian brands into the Top 100. with Beeline slipping out. which compiles the rankings. with a 68 per cent increase in brand value to $4. On the face of it. another Brazilian beer brand. live w e l l ” themes inherent in the Brazili a n brand message . with music events including the Skol Beats festival. by consumers. “the Indian brands seem to be. says Ms Pearson. that translates a little clumsily as “Being well. another big Brazilian bank. with just three representatives. a new entrant to the ultracompetitive personal-care category – an impressive achievement for a one-country brand to come in above a brand such as Dove. such as Miami. But the South American country has several fast rising brands outside the Top 100 that make it into the 13 sectoral categories. Filling up your car with Petrobras gas may not quite be a lifestyle choice. according to Peter Walshe. is helped by having a large number of retail outlets. a measure of short-term growth potential. perhaps. Thus Itaú is ahead of Bradesco partly because it got bigger – it merged with Unibanco. A programme called Leading the Change in Russia updated the brand and emphasised its national reach. or even the 13 sectoral categories.000 branches. remaining the sole representative in the Top 100 and only Infosys knocking on the door. There is this fundamental thinking in Brazil that people not only want a good job but also want to enjoy themselves at work. Like the Unilever brand. a new entrant to the oil and gas category. says Andrew Baxter s come more to the fore in brands outside the Top 100. is that the BrandZ Top 100 ranks brands. and has On the face of it.or bank-related. Brahma. but the strength of their “brand contribution” or portion of intangible earnings attributable to brand. compared with China’s and Brazil’s. “The Indian market simply isn’t big enough in value yet to create Top 100 brands. However. with almost 20. The Natura brand is one of the most recommended in the personal-care sector. a recognition of the company’s ambitious expansion in Russia and overseas. more recommended and seen as better value than all the other oil and gas brands tracked by MBO. Middle East and Africa. says Ms Pearson. Lukoil is worth noting. None of these are big enough to make it into the Top 100. according to BrandZ consumer research. Then there is Natura. has a series of brands under its umbrella – including Jaguar Land Rover. and these have a higher brand contribution relative to the upstream assets in oil and gas companies. the IT outSberbank’s Moscow HQ Bloomberg sourcer benefited from the overall revival in B2B brands and another rise like this year’s – 27 per cent – could well see it make the 2012 Top 100. not companies. says Ms Pearson – growing fast. have fun. Skol is the most popular beer brand in Brazil and has the highest “desire” score of the Top 10 beer brands. the Brazilian beer brand – not to be confused with the lager on sale in the UK and elsewhere – supports the Brazilian lifestyle theme. The state-owned bank makes its debut in the Top 100 on the strength of a successful initiative to transform it into a friendly bank of choice rather than an institution recalled for its dominating presence during the Soviet period and a heritage dating from 1841. being one of just four brands overall to score a maximum of 10 for brand momentum. but the oil and gas group is significantly more trusted. Russia retains two brands in the BrandZ Top 100. as defined by MBO. under a snappy slogan “Bem estar bem”. Powering ahead: a Petrobras technician takes a reflective look at gas pipeline installations in northeastern Brazil AFP B razil is a distant second place to China when it comes to Bric nation brands in the BrandZ Top 100. So the huge and acquisitive Tata Corpora- tion.
Staff. And about 20 per cent of sales are directly linked to corporate reputation. consumers have the tools to punish a brand quickly for any perceived transgression anywhere in the world. Brand owners are too often kept out of the loop on corporate environmental action until there is a one-off story to promote. “Immediately after ‘black Monday’ [the global stock market crash of October 1987] it went down to 5 per cent. Customer feedback from the 11m guests that visit Whitbread’s UK hotels and restaurants annually showed a marked interest in the carbon footprint of the food they eat and the places they stay. It has found a direct correlation between companies that make it into the Top 100 transport market. Freya Williams. corporate “green washing” has created a mood of cynicism among the general public. They understand the significance of the issue. “You can now boycott so many brands. “Concern for the environment is no longer a point of differentiation. a communications agency. It is no longer all right just to sit back with good intentions. Similarly. Jamie Rice. As a result. about 80 per cent of sales are generated by the product brand itself. Reducing corporate climate impacts provides a key touch point in the customer journey. It is clear the public are in a very uncomfortable place regarding corporate climate change. “These things are short-lived. And it helps conversations with national and local authorities over policy or planning issues. a consumer research group. confusion leads to inquisitiveness and – given time – will lead to a backlash against corporations that fall short. “In this economically challenged time. Climate change and a question of loyalty Opinion HARRY MORRISON and PETER WALSHE With understanding of environmental issues on the rise among consumers. says many consumers are highly sceptical about green product claims and have come to believe that green means higher price and lower performance. there is another key pitfall beside “greenwashing”: that is investing in action on climate change which is not communicated or recognised by customers. The majority of respondents to the Carbon Trust survey (60 per cent) said they needed to see independent verification from a respected climate change body before trusting environmental claims. GreeninNeed (17 per cent). a strong. Eurotunnel complements its reputation for providing low-carbon Channel crossings by independently auditing carbon performance and committing to year-on-year reductions. or write about them in web forums. global planning director at Ogilvy Earth USA. Most consumers now expect brands to be “green” and do not want to pay a premium price.” However. stocking or selling only products that meet environmental standards. There is a lot of history that says if a strong distinctive brand deals with problems clearly. who incorporate green elements into their lifestyle but only if it is easy. it is imperative for marketers to play a stronger role in driving change. People have short memories and most consumers’ buying decisions are more influenced by price. Jaded (22 per cent) are sceptical of many environmental marketing messages. but not if the benefit is societal. “If green products can be shown to have a personal benefit. With boycott websites and social networking.6 ★ FINANCIAL TIMES THURSDAY MAY 19 2011 Global Brands Longterm impact of green issues played down Environment Buying decisions are influenced mainly by price and convenience. 56 per cent of people are more loyal to brands that can show. some brands have not backed their communications strategy with a robust action plan. explains that this decline is driven more by finances than brand. “It is only the very active environmental consumer who will avoid a brand.” says Mr Ellis. “When it became popular in the 1980s. And 54 per cent want to work for companies which can clearly demonstrate their commitment to reducing their impacts on climate change. From a reputation perspective. “This is not just a concern for environmentalists. Peter Walshe. And one in five would blog. is only 15 per cent. The Green Gauge Global: 2010 Factbook from GfK Roper. global BrandZ director at Millward Brown. differentiated brand that embraces sustainability is the best strategy. Richard Waters. “They are missing the Massive Green Middle. which accounts for only 18 per cent of the population. Business partners want to protect their reputation from a ripple effect. At a basic level. honestly. retailers and brand owners can also help consumers by making. they realise business is a big emitter. evidence of environmental actions. convenience or product features. responsibly and quickly. comprising pricing and quality and so on. with its brand value dropping 27 per cent. want to be brand advocates. the actions of companies going “above and beyond” to reduce their climate impacts are highly likely to be published online by consumers. chief strategy officer at Carton Donofrio Partners. credit-fuelled consumer binge days past. not just for charging a premium and earning more money.” The latest BrandZ Top 100 shows that BP slipped 30 places since the Gulf of Mexico oil spill. points out the advantages of a solid sustainability strategy. the green consumer base rose to about 20 per cent. consumers are more discerning now about the brands they buy from. Just 7 per cent now believe company claims of action on climate change and 66 per cent question whether companies are genuinely cutting their emissions when they make claims to have done so. so Whitbread placed sustainability at the heart of its strategy and is striving to make its Premier Inn hotels the lowest carbon venues of their kind. principal at Carbon Trust Advisory Services. sustainability’s shelf life has all but run out. it is consciously tapping into the mindset of carbonsavvy business customers. part of the Worldwide Partners network of marketing agencies. if you don’t stand for something. says a radically new approach is needed. found that 82 per cent of Americans have good green intentions. Harry Morrison is general manager of the Carbon Trust Standard and Peter Walshe is global BrandZ director of Millward Brown 56 per cent of people are more loyal to brands that can show evidence of environmental actions Global Brands and businesses with a good reputation for environmental responsibility. so it was economically driven. even if its initial response was hesitant and opaque. want information before they can take action. and cash harder to come by. However. director for insight and brand strategy at Brand Potential consultancy. with the environment as a secondary benefit. there are also a lot of ‘pale greens’. and sends a clear message. but not necessarily consciously. But what impact does this mistrust have on brand value. have forgotten about it. and can companies achieve growth by taking action on climate change and winning back consumer trust? The Carbon Trust research found the answer to be yes. but a hygiene factor. you stand for nothing. However. BrandZ found that at least 2 per cent of sales are attributable directly to environmental reputation.” says Terry Tyrrell. BrandZ. the majority of us believe that climate change represents the greatest environmental threat facing the world today.” ‘Successful green products have been positioned around performance first’ Thus Toyota has regained its leadership in the car industry after its recall problems.” she says. the long-term impact on brands is not as great as it might seem. as well as the environment’s. Similarly. reports Rod Newing Burning question: how quickly will BP’s brand value. “As the role of social media has grown. Brand loyalty is not just about making a sale – it is inspired by long-term engagement. the annual quantitative brand equity study run by Millward Brown for the past six years. because they are involved in Canadian oil sands. they can persuade people not to knee-jerk to price and convenience. given the need for businesses to win consumer trust. This compares with GlamourGreen (26 per cent). More than half the 1. reveals that 74 per cent of consumers say it is important that companies take environmentally responsible actions. recover after the oil spill in the Gulf of Mexico? Getty A wareness of environmental issues is growing among consumers. but are unclear as to the full extent – and are unsure what real corporate climate action looks like. down 27 per cent in the 2011 ranking. known as GreeninDeed.” Joe Staton. this was followed by 53 per cent trusting only scientific or academic endorsement. It gives investors confidence. echoes the Carbon Trust’s findings.” he says. One in three are more likely to opt into company news and announcements by “following”. They will use their trusted relationship to educate consumers that adjusting their habits is in their best interest.” Sustainability and environmental brand issues apply not just to consumers. “Consumers.” Mr Staton says that manufacturers.” Clearly. companies that measure their impacts. they will do well. who now understand more clearly the role that business plays in producing emissions or harming the environment. With the “shop until you drop”. it has a much better chance of recovering. On average. but a massive missed business opportunity. Many leading brands are using sustainability to develop and differentiate products and services. The greatest concern is that companies simply make one-off improvements to win publicity and then return to business as usual. but only 16 per cent of them were dedicated to fulfilling them. typically in the developing world. a branding agency. strategy and research director at 1HQ. producing toxic oil waste or doing harm in a particular country. brands are increasingly exposed to vilification by consumers for things they have done on the other side of the world. what are the risks and opportunities for brands? A key risk for brands in communicating their climate responsibilities lies in the severity of the issue of climate change within the minds of consumers. Marketers have long seen the reputational value of promoting environmental credentials. In breaking this category down further. who are 66 per cent of the US population.” he says.000 UK respondents are more concerned than they were five years ago about the impact of companies on the environment. especially prospective graduate joiners. Mainstream Green: Moving Sustainability from Niche to Normal from Ogilvy Earth. but other stakeholders. all or most of the time. in the . As the survey shows. and incorporate elements of green living into their lifestyle. and commit to reducing them over time are at an advantage: 61 per cent of people are more likely to buy from companies with good reputations.” says Tom Ellis. “Successful green products have been positioned around performance first. Much green marketing has inadvertently exclusively addressed the already-converted Super Green niche. “As a vehicle for achieving brand growth. partly due to the rise of social media. Although there are some ‘true greens’.” Mr Tyrrell sees brands taking on a more socially responsible role. “Brands can be a force for good. director and general manager at GfK Roper. CarbonCultured consumers (19 per cent) live mainly in the developed world. “friending” or “liking” businesses that can prove positive environmental performance. According to research it commissioned. However. only 30 per cent take the environment into account in purchases. other than locals who were directly affected. worldwide chairman of The Brand Union.” says Charlie Skinner. at a glance. In terms of brand loyalty. By displaying its achievement of the Carbon Trust Standard on its homepage. In the past five years the pace of recommendation of brands by consumers has speeded up exponentially. The Carbon Trust Standard certifies organisations for real carbon reduction and commitment to continuous reductions. A proactive approach to promoting environmental success online as well as monitoring to understand consumer sentiment about a brand’s environmental behaviour is critical. another brand agency. “Sometimes the effect is overstated.” he says. With the advent of social media. says the greenest segment of global consumers.
754 3 7 13. there is a tendency for businesses to leap in without learning the rules of etiquette. It is not just a question of how a brand interacts with its target audience online. perhaps for reasons to do with environmental or health concerns. “Even though your category may be viewed in a negative light. “Recognise that the space belongs to other people.587 2 2 21.733 1. where the average is 100. it is considered discourteous to interrupt a conversation between strangers without introducing yourself.760 1 2 5. global BrandZ director at Millward Brown: “They either get laughed at or frozen out.318 1 2 42.312 5 7 22. In most cultures. “Don’t interrupt a social space.168 1 5 12.834 4 7 15. In total. Of the three other top 10 slots in the Buzz Index. In the online world of social networks.542 1 5 12. The Asia Top 10 is on Page 4.774 2 4 27.” he says.243 4 8 73. Movistar and Orange as a result of convergence issues. “We then created a ‘Buzz Index’ for each brand on the listing. that smaller companies have as much to play for in the social networking realm as their larger counterparts.” The problem. they tend to go a little quiet.425 5 8 17. where positive counted 2. multilanguage data set was assessed for sentiment – either positive.996 5 6 Source: Millward Brown Optimor (including data from BrandZ and Bloomberg) . two of the brands. not to you and your brand.” he says.FINANCIAL TIMES THURSDAY MAY 19 2011 ★ 7 Global Brands It is important not to invade others’ space Social media ‘Listening not shouting’ can avert a lot of damage.498 4 4 100. not shouting”. writes Jessica Twentyman In the “real” world. There is also little correlation between the buzz a brand creates and its overall financial value – suggesting. success is often a question of observing the conversational etiquette of “listening.160 14. or set up a Facebook fan page or a Twitter account – but when they’re asked what the value might be. with Verizon replacing China Mobile.260 19. no rises in brand value are available for Deutsche Telekom. 91m documents were selected for further analysis. An even trickier challenge is working out why it should do so at all. Mr Walshe warns. If Mr Shirky’s 2008 best seller Here Comes Everybody alerted many companies worldwide to the breadth and depth of online conversations that consumers were holding. In continental Europe. too. Six of the UK Top 10 have lost brand value. perhaps.252 4 4 3.849 3 5 81. distinctly impolite to impose a new topic of conversation on that group and downright boorish to talk about one’s self without listening to what others have to say.828 3 4 Continental Europe Top 10 by brand value Rank 1 2 3 4 5 6 7 8 9 10 Brand Deutsche Telecom Movistar SAP Louis Vuitton BMW Orange L'Oréal Mercedes Carrefour H&M BV 2011 ($m) BC BM 29. 125m mentions of the Top 100 brands were discovered – or four mentions per second.344 5 8 13. Germany’s BMW and Honda of Japan are from the automotive sector – an industry that attracts some of the highest volumes of criticism online. not just for consumers but for the businesses and public-sector organisations that serve them.285 10.647 2 4 22. because the truth is that some [industry] categories are simply more ‘buzzable’ than others. warns Peter Walshe. What is clear is that even brands from sectors that are frequently viewed in a negative light can still create a positive buzz. his new book. he says. as are some brands. the social media commentator and author.016 4 7 78. underscores the huge potential value of those conversations. says Clay Shirky. That is a pity.421 1 7 11.” says Mr Walshe. occupying seven of the top 10 Buzz Index slots. social networking offers an opportunity to rise above Brands need to tread carefully when setting up a Facebook page Getty the general perception and elevate a brand in the eyes of target audiences. Those that do not. but more often simply taking careful note of the feedback they are offered – have much to gain. Telecom Providers.” Mr Walshe explains.597 1 4 15.102 76. The Latin America Top Eight is dominated by Brazilian brands. helped by its strong presence in Asia.433 22. led by BP with a 27 per cent decline. In first place is Google. The standout is Standard Chartered (up 45 per cent). however. by contrast. “You have a bunch of marketing people out there telling their bosses that their company must start a blog.458 4 6 4. is that because social media represent a relatively costeffective channel for promoting a brand. neutral or negative – using natural language processing (NLP) technology. acceptable social behaviour is typically defined by a set of conventions that most people learn from childhood onwards.600 2 3 5. which have led to a redefinition and a new category. “The more buzz a brand creates does not necessarily equate to higher brand value. A brand’s “Buzz Score” (also an average of 100) was multiplied by the “Positivity Score” to produce the Buzz Index. almost identical to the global one. which attract the most online comment.558 3 6 9. which has benefited from a rise in B2B spending. says Mr Walshe. Mentions were upgraded if sentiment was positive and downgraded where negatively biased. In an effort to pin down the often fuzzy correlation between online conversations and brand value.182 between brand value and positive online buzz. the search engine company. as usual. businesses flout these rules all the time – but the repercussions are just the same.916 3 4 67.277 12. along with soft drinks and fast food.249 2 6 26.078 3 7 24. So what can brand man- agers learn from the Buzz Index in terms of their online behaviour? Mr Walshe’s advice is clear: Listen and learn.006 2 8 United Kingdom Top 10 by brand value Rank 1 2 3 4 5 6 7 8 9 10 Brand Vodafone HSBC Tesco Shell BP Standard Chartered Bank O2 Barclays Marks & Spencer Asda BV 2011 ($m) BC BM 43. That is certainly true of technology companies.612 5 9 4. For the world’s leading brands. run the risk of serious brand damage.975 2 4 Latin America Rank 1 2 3 4 5 6 7 8 Brand Petrobras Telcel Itaú Bradesco Corona Natura Skol Brahma Top 8 by brand value BV 2011 ($m) BC BM 13. Above all.285 4 9 111. because brands that conduct themselves with aplomb on social networks – offering relevant input when appropriate. the strongest rises were recorded by McDonald’s and Marlboro – both helped by strength in developing countries – and IBM. he concludes. To impose some kind of qualitative assessment on that data.694 2 5 8.” Brands across the continents The North America Top 10 is. The resulting Buzz Index shows some relationship Buzz Index Top 10 Rank Brand 1 Google 2 Facebook 3 Microsoft 4 Apple 5 Sony 6 BMW 7 BlackBerry 8 Walmart 9 Samsung 10 Honda Source: Millward Brown Buzz Index 1.600 2 3 8.579 5 6 1. neutral 0 and negative minus 1.752 5 9 69. using a “Positivity Score”. and a final.184 742 704 433 366 330 325 314 307 Positivity 95 91 102 93 97 87 106 97 108 88 $m Value 114.719 4 6 15. North America Rank 1 2 3 4 5 6 7 8 9 10 Brand Apple Google IBM McDonald's Microsoft Coca-Cola AT&T Marlboro GE Verizon Top 10 by brand value BV 2011 ($m) BC BM 153. Apart from Apple. there is a lot of listening to be done. but it is not absolute.522 4 4 50.” he says. Cognitive Surplus. BrandZ recently engaged global market intelligence company Cymphony to screen more than 3. he adds.344 153. with Facebook only a little behind.400bn documents for relevant online mentions in 2010 of brands listed on the BrandZ Top 100 Most Valuable Global Brands.425 24.623 37.033 2 2 11.
8 ★ FINANCIAL TIMES THURSDAY MAY 19 2011 .