The BrandZ Top 100 Most Valuable Global Brands 2014

The BrandZ Top 100 Most Valuable Global Brands 2014

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12 percent brand value increase marks shift from recovery to growth Year of transformation, consolidation and disruption Methodology and valuation by 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 Technology $841,482m Soft Drinks $142,103m Retail $280,975m Personal Care $111,528m Oil & Gas $109,033m Telecoms $330,427m Luxury $111,758m Insurance $66,207m Fast Food $171,621m Beer $72,306m Regional Banks $251,351m Global Banks $123,800m Cars $138,856m Apparel $99,599m 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 2014: YEAR OF TRANSFORMATION, STOCK MARKET TOP 10 RISERS+97% Brand value appreciated by 54% among the CONSOLIDATION AND DISRUPTION PERFORMANCE BrandZ™ 2014 Top risers, compared with 44% last year. TMThe BrandZ Top 100 Most Valuable Global The value of the BrandZ™ Brands share price index consistently +68%Top 100 Most Valuable Global outperform the S&P market index. +61% +61%Brands 2014 is $2.9 trillion. +58% +56% +56%Top +55% +53%Top +51%100 100 BrandZ™ $2.9 81.1%$2.6 trillion trillion 06 07 08 09 10 11 12 13 14 SPP 500GROWTH ACROSS ALL 44.7% CATEGORIES FROM 2013 UK2013 2014TOP 10 BRANDS 6 Top 100 brands REGIONAL GROWTH 40% North 129% America3% 241% 3% 320% 4% 41%5% 3% Asia50 Top 100 brands $155,753m 20 Top 100 brands$67,341m $64,255m$158,843m $147,880m $107,541m $90,185m $85,706m $80,683m $79,197m $77,883m Top 10 brands 5.4%12 3 12 3 $959,514m CATEGORY Top 10 brands $314,188m GROWTH 5.

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12 percent brand value
increase marks shift from
recovery to growth
Year of transformation, consolidation and disruption
Methodology and valuation by34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53
Technology
$841,482m
Soft Drinks
$142,103m
Retail
$280,975m
Personal Care
$111,528m
Oil & Gas
$109,033m
Telecoms
$330,427m
Luxury
$111,758m
Insurance
$66,207m
Fast Food
$171,621m
Beer
$72,306m
Regional Banks
$251,351m
Global Banks
$123,800m
Cars
$138,856m
Apparel
$99,599m
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

2014: YEAR OF TRANSFORMATION, STOCK MARKET TOP 10 RISERS+97%
Brand value appreciated by 54% among the CONSOLIDATION AND DISRUPTION PERFORMANCE
BrandZ™ 2014 Top risers, compared with 44% last year.
TMThe BrandZ Top 100 Most Valuable Global The value of the BrandZ™
Brands share price index consistently +68%Top 100 Most Valuable Global
outperform the S&P market index. +61% +61%Brands 2014 is $2.9 trillion. +58% +56% +56%Top +55% +53%Top +51%100
100 BrandZ™
$2.9 81.1%$2.6 trillion
trillion
06 07 08 09 10 11 12 13 14 SPP 500GROWTH ACROSS ALL
44.7%
CATEGORIES FROM 2013
UK2013 2014TOP 10 BRANDS
6 Top 100 brands
REGIONAL GROWTH
40% North
129% America3% 241% 3% 320% 4% 41%5% 3% Asia50 Top 100 brands
$155,753m
20 Top 100 brands$67,341m $64,255m$158,843m $147,880m $107,541m $90,185m $85,706m $80,683m $79,197m $77,883m
Top 10 brands
5.4%12 3
12 3 $959,514m
CATEGORY Top 10 brands $314,188m
GROWTH 5.9%
Top 10 brandsTwitter NewcomersTop Brand
15.8%LinkedIn
Ford+29% Continental
Bank of America Europe
PayPal
ING Bank 23 Top 100 brands
UBS
12 3
$246,799m +17% +16% +16%
+16%
+14% Top 10 brands
+15% 19%
+11%
+10% +12%
+8% BRAND
CONTRIBUTION
Brand Contribution +6% +4%+3%
indicates how much
of brand value can be FAST GROWING RISING attributed to brand
itself. The index runs KEY VALUATION CHANGES MARKETSIMPORTANCE OF
from 1 (low) up to 5
TECHNOLOGY (high). 97% BRAND VALUE TOP 100 DEBUT TOP 10 $45.2 BILLION
DISTINCTION Luxury is the most
Google’s rise symbolizes the strength of represented category
the technology category. in the top brands by Tencent, the Chinese social Twitter and LinkedIn Google increased the most in $ value in
Amazon became the Brand Contribution network and Internet portal, entered the Top Technology brands in the Global Top the 2014 rankings.
fi rst retailer to enter the with 6 brands, followed led the list of fastest risers 100 for the fi rst 100 total $827 billion, almost 30% of the It has also increased signifi cantly since Top 10 at number 10. by beer with 2 brands.overtaking China Mobile as time, at numbers 71 value of the BrandZ™ Global Top 100. 10% 16%2006, $121.4b, second only to the gain of
China’s most valuable brand. and 78, respectively.
$131.9b by Apple during the same period. Technology category rose 16% overall in
brand value. $271,893m www.brandz.com$29,490m
81 80 79 78 77 76 75 74 73 72 71 70 69 68 67 66 65 64 63 62 61 60 59 58 57 56 55 54
WPP Report Infographic.indd 1 12/05/2014 09:47
82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100
TENCENT
FACEBOOK
BT
IKEA
UNIQLO
FORD
MOVISTAR
NIKE
DHL
CVSIntroduction
12 percent Global Top 100
value rise demonstrates
Welcome signifcant brand power
Strong brands surge with new growth
We’ve turned the corner. In other highlights: The defnitive brand valuation More brand building resources
The BrandZ™ Verve Index was developed We inform all our work with the global
Brands achieved real and robust growth – A mazon entered the Top 10 for the
by Millward Brown Digital, one of 33 WPP reach of WPP. To help clients better
and brand value rose 12 percent, with frst time.
companies involved in the creation of the understand their brands in the rapidly
every category appreciating in brand
– F acebook, the second fastest rising BrandZ™ Top 100 Most Valuable Global changing context of global business,
value, in the BrandZ™ Top 100 Most
brand, increased 68 percent in Brands 2014 report. You’ll fnd knowledge we’ve created a growing library of
Valuable Global Brands 2014. 40%brand value. and insights from over 75 individual reports. Our Powered by BrandZ™ series
WPP brand experts throughout this also includes: the BrandZ™ Top 100 Most Rise in brand value drove
A 40 percent rise in brand value drove – T witter and LinkedIn entered the
report, in thought leadership essays Valuable Chinese Brands 2014; The Power Google to the number
Google to the number one position in BrandZ™ Global Top 100 for the
and prescriptive ideas for building and Potential of the Chinese Dream; The one position in
the ranking. frst time.
strong brands. Chinese New Year in Next Growth Cities; the ranking.
The Chinese Golden Weeks in Fast
The brand has appreciated 324 percent New BrandZ™ Verve Index measures
The backbone of all this insight remains Growth Cities; and The BrandZ™ Top
in brand value since the inception of the social media effectiveness
BrandZ™, the world’s largest, customer- 50 Most Valuable Latin American
BrandZ™ Top 100 Most Valuable Global
The BrandZ™ Top 100 Most Valuable focused source of brand equity Brands 2013.
Brands in 2006. Apple, the second most
Global Brands is the defnitive ranking knowledge and insight, and WPP’s
valuable brand, has grown 826 percent in
not only because it reports about proprietary BrandZ™ brand valuation Our TrustR and ValueD reports provide
value since 2006.
developments like these. Equally methodology. First we analyze relevant insights about building trust and value,
important, we also examine why these corporate fnancial data and strip away customized for individual brands. To learn
These brand value increases demonstrate
brands appreciated in value and what everything that doesn’t pertain to the more about these and other reports,
the centrality of technology in our society
lessons can be drawn from their success. branded business. Then we take a please visit www.brandz.com. The
and also the power of strong brands with
critical step that makes BrandZ™ BrandZ™ Global 100 reports are available
a clear proposition and mission to help
One of the clearest opportunities – and unique and defnitive among brand for free download by searching
improve the lives of their customers and,
challenges – for brand value growth is the valuation methodologies. BrandZ100 in the Apple app store.
in the process, increase share of life.
use of social media in ways that most
effectively enhance and protect brands. We conduct ongoing, in-depth At WPP, we’re passionate about building
Brands with these qualities, regardless
In this year’s ranking we introduce a new quantitative consumer research with strong, differentiated brands and
of product category or region of origin,
metric, called the BrandZ™ Verve Index. more than 150,000 consumers annually, creating value. Over 160,000 of us, based
were best positioned to add value as
It measures the positive social media across more than 30 countries, to assess in over 100 countries, are here to help
North America, the UK and Continental
presence of brands ranked in the consumer attitudes about, and you. To learn more about how to apply
Europe returned to strong economic
BrandZ™ Global Top 100. relationships with, over 10,000 brands. our experience and expertise to beneft
health, even as the growth rate in the
Our database includes information from your brand, please contact any of the
BRICs slowed.
We believe that the Verve Index is a over two million consumers. It reveals WPP companies that contributed
groundbreaking tool that links social the power of the brand in the mind of expertise to this report. Turn to page 136
Despite slower growth, China retained
media presence to brand equity. It helps the consumer that creates predisposition for summaries of each company and the
a major presence in the BrandZ™ Global
target social media investment in ways to buy and, most importantly, validates contact details of key executives. Or feel
Top 100 with 11 brands, only one brand
that potentially drive sales. To learn more a positive correlation with better free to contact me directly.
less than a year ago. The performance
about the BrandZ™ Verve Index, please sales performance.
indicates the potential impact of Chinese
see page 46.
brands outside of China.
The fastest-growing brand in the ranking,
Tencent, the Chinese social network and
Internet portal, almost doubled in value,
with a brand value increase of 97 percent, David Roth
following a 52 percent increase a year WPP
ago. The Chinese online search brand droth@wpp.com
Baidu, which is similar to Google, grew @davidrothlondon
46 percent in brand value.
4 BrandZ™ Top 100 Most Valuable Global Brands 2014 5Introduction
Contents
01Highlights Food and Drink
10 Introduction 80 Beer
13 Key Results 84 Fast Food
16 Cross-Category Trends 88 Soft Drinks
19 Take Aways
92 Thought Leadership
20 Thought Leadership My Brands. My Self.
Is Your Brand Ready to be Like Jeeves? By Jonathan Dodd, Global Chief Strategy Offcer
By Nigel Hollis, Chief Global Analyst Millward Brown Geometry Global
22 Thought Leadership 94 Thought Leadership
Diversion: A Route to Disruption The Data-Driven Pursuit of the Inconstant Consumer
By Eric Duchamp, CEO PeclersParis By Ali Rana, SVP and Head Scientist Emerging Media Lab
Financial
02TheGlobalTop100
96 Banks
26 The BrandZ™ Global Top 100 Ranking 102 Insurance
30 Overview
32 Top Risers Commodities
34 Newcomers
106 Oil & Gas
35 Category Changes
38 Brand Contribution 110 Thought Leadership
40 Regions Commerce 4.0: Devices, Data and Decision Time
By Sue Pratt, Head of Marketing Salmon
46 S ocial Media Special Report
The BrandZ™ Verve Index 112 Thought Leadership
By Ali Rana, SVP and Head Scientist Emerging Media Lab Transformation through Technology
By Stephen Pretorius,
50 Thought Leadership
President Acceleration
Delivering Seamless Consumer Experience in
an Age of Disruption
Technology
By Scott Symonds, Managing Director of Media AKQA
114 Technology
52 Th ought Leadership
120 Telecom Providers
The Product Paradox: Why Making Apps Usually Hurts
Brands and How You Can Do Better 124 Thought Leadership
By Shane Atchison, CEO and Jason Burby, President, Rise and Fall: Exploring the Brand Life Cycle
Americas POSSIBLE By Aleksandra Iljina, Senior Analyst Developer and
Duncan Stoddard, Account Manager Mindshare
03TheCategories
04Resources
Consumer and Retail
128 BrandZ™ Valuation Methodology
56 Apparel 130 BrandZ™ Reports, Apps and iPad Magazines
60 Cars 132 WPP Resources
64 Luxury 134 WPP Company Contributors
68 Personal Care 140 WPP Brand Building Experts
72 Retail 142 BrandZ™ Global Top 100 Team
143 BrandZ™ Valuation Contact Details
76 Thought Leadership
A Seamless Transition Towards Retail Theater
By Ian Gourley, Chief Creative Offcer Barrows
78 Th ought Leadership
Seven Principles for a More Useful Brand Valuation
By Joanna Seddon, Global Brand Consulting OgilvyRed,
Ogilvy & Mather
6 BrandZ™ Top 100 Most Valuable Global Brands 2014 7




Section 01 | Highlights InIn ttrrododucucttiionon
Key Results
Cross-Category Trends
Take Aways
01
Highlights
8 BrandZ™ Top 100 Most Valuable Global Brands 2014 9Section 01 | Highlights Introduction
Introduction BrandZ™GlobalTop100valuedoublessince2006
The BrandZ™ Top 100 Most Valuable Global Brands 2014 appreciated 12 percent in All categories rise in brand value as brand value. The brand value of the BrandZ™ Global 100 has almost doubled since
being introduced in 2006.
Global Top 100 improves 12 percent
3.5
In a year of real growth, brands experience 12.0%
3.0transformation, consolidation and disruption
7.0%
17.1% 0.4%
2.5
4.4%
0.8%21.2%The BrandZ™ Top 100 Most Valuable — F acebook was the second fastest riser Carmakers loaded the newest
Global Brands 2014 added $310 billion with brand value increasing 68 percent. models with technology for safety 2.0 10.6%
to reach $2.9 trillion in brand value, Amazon entered the BrandZ™ Global and entertainment. But conditioned
a 12 percent increase. Top 10 for the frst time, with a 41 by their mobile devices, car buyers
percent brand value increase to sometimes expected even more 1.5
Prior to the BrandZ™ Global 2014 results, $64.3billion. technology to be available in cars
the Top 100 had increased an average with the speed of a download.
1.0of about 6 percent, $125 billion, annually — T echnology continued to dominate
since the fnancial crisis of 2008 with nearly a third of the total brand Categoriesfeelimpactof
and 2009. value and around a ffth of the brands,
0.5
including the top four – Google, Apple, Millennials,socialmedia
This year, led by apparel, with a 29 IBM and Microsoft.
percent overall increase, all categories This effort to understand and meet the 00
06 07 08 09 10 11 12 13 14rose in brand value. And 10 of 14 demands of customers touched Growthbringsnew
categories experienced double-digit fnancial institutions, not always known Source: Millward Brown Optimor, BrandZ™ data
growth, indicating that brands across challenges for customer centricity. Global banks
the economy have moved beyond increased services and warmed their
recovery into a period of new growth. The two key factors that infuenced the messaging, although levels of trust
12 percent growth surge – technology remained low. Insurers developed
Only 18 of the Top 100 brands lost value innovations and consumer confdence – systems to respond to customers BrandZ™StrongBrandsPortfoliooutperform s
compared with an average of 31 brands also created some of the challenges one-to-one in relevant ways rather
in each annual BrandZ™ Global Top 100 categories experienced. than with mass, product driven efforts. theS&P500
report since the fnancial crisis.
Consumers were willing to spend money Even categories affected by consumer Since the introduction of the BrandZ™ Top 100 Most Valuable Global Brands
The resurgent economies of North and they did, even on high-ticket items health concerns appreciated in brand in 2006, the S&P 500 increased 44.7 percent in market value. In contrast, the
America and Europe drove brand value like cars and luxury. But chastened by value, but at a slower pace. Fast food, BrandZ™ Portfolio of Strong Brands appreciated 81.1 percent.
growth as the BRIC markets slowed. a period of relative frugality and which continued to work through the
Only 14 brands from fast growing empowered by rapidly changing pressure of health concerns, improved
economies made the 2014 BrandZ™ technology, particularly mobile, 10 percent. Soft drinks grew 4 percent
Global Top 100 ranking compared with consumers changed how they shopped although the consumption of CSDs
17 brands a year ago. and purchased. They waited for the (Carbonated Soft Drinks) declined for 100
best prices and purchased more the ninth consecutive year in the US.
Despite the BRIC slowdown, Chinese mindfully, with concerns about health BrandZ™ Strong
80 Brands Portfoliobrands increased their impact. The and the environment. Telecoms experienced consolidation and
number of Chinese brands in the Top 100 price disruption pressure but brand value
declined by one to 11, but that’s up from Retail experienced perhaps the most improved 8 percent. The oil and gas 60
only two in 2006. In addition: dramatic impact, as consumers confated category experienced the lowest brand
S&P 500the physical and online shopping worlds, value growth, 3 percent, because of
40
— W ith a 40 percent rise in brand value, expecting a new kind of convenience that slowed investment in exploration. In
Google claimed the number one rank delivers the wide range available online every category, brands increased activity
20from Apple, which held the position with best prices and the immediate in social media to engage consumers in
since 2011 when it surpassed Google. gratifcation of physical stores. innovative ways. (Please see the BrandZ™
Verve Index, a special report on social
APR 06 APR 07 APR 08 APR 09 APR 10 APR 11 APR 12 APR 13 APR 14— T witter, LinkedIn, and PayPal Clear that retailing would no longer media on page 46).
appeared in the BrandZ™ Top 100 be about physical stores alone,
-20
for the frst time. retailers scaled back their portfolios In addition, the attitudes of Millennials,
of locations, repurposed existing space individuals born roughly between 1981
-40— T encent, the Internet portal and social and invested in technology to make and 1999, also touched most categories.
network, led the fastest risers, almost the shopping online and in physical These consumers are more likely to
doubling in brand value. Baidu, the stores a seamless experience. prefer a craft beer, bank and shop on -60
search engine appreciated 46 percent, a mobile device, choose vitamin water
indicating the growing infuence of In luxury, some brands learned that over cola and eat healthier fast food, but
Chinese brands. they’d become too accessible in an not exclusively. And they’re less likely to
effort to drive sales during the economic buy insurance or own a car, either
slowdown. They worked on achieving because they prefer sharing or don’t
Source: Millward Brown Optimor, BrandZ™ datathe best balance of accessibility and have the money.
exclusivity in stores and online.
10 BrandZ™ Top 100 Most Valuable Global Brands 2014 11
Percent value growth USD BillionSection 01 | Highlights Key Results
Key Results
Brandvaluesurgesacrosscategories
Brand value across categories surged this year, marking a The headlines
shift to solid growth following fuctuations coming out of the
fnancial crisis and global recession.
Top100rises12 % Only18brandsdown Hugegainssince2006
The BrandZ™ Top 100 Most Valuable Only 18 of the Top 100 brands lost value Google increased the most in dollar
Global Brands increased 12 percent, this year, compared with an average of value, $45.2 billion, in the 2014 ranking.
Top 100 100 111 134 135 141 165 166 177 198
to $2.9 trillion, following a 7 percent 30 brands each year since the BrandZ™ The brand also increased signifcantly
rise a year earlier. Global Top 100 rankings started in 2006. since 2006, $121.4 billion, second only to
An average of 31 brands annually lost the gain of $131.9 billion by Apple during
Food value since the fnancial crisis of 2008. the same period.100 117 161 208 196 217 249 256 369 Valuedoublesin8years& drink
The combined brand value of the Tencentup97% Europeanbrands
BrandZ™ Global Top 100 has almost Commodities 100 97 113 102 201 221 264 266 342 leadgrowth
& Logistics doubled in eight years, since its inception Tencent, the Chinese social network and
in 2006. Internet portal, led the list of fastest risers
Brands based in Continental Europe
with a 97 percent increase in brand value,
increased 19 percent in brand value
overtaking China Mobile as China’s most Financial 100 142 166 133 146 172 155 195 269 OutperformsS&P500 overall, more than any other region,
valuable brand.
following a rise of only 5 percent a
Since 2006, the stock market values year ago.
of the BrandZ™ Strong Brands Portfolio, Facebookup68%Technology 100 142 166 133 146 172 155 195 269
a subset of the BrandZ™ Global Top 100, NorthAmericadominates
has appreciated 81.1 percent, signifcantly Facebook (up 68 percent), Baidu, China’s
outperforming the 44.7 percent rise in leading search engine (46 percent) and
North America dominated in regional
Consumer the S&P 500 over the same period. Yahoo! (44 percent) also made the Top 100 97 103 115 104 102 93 116 172 representation. Half the brands in the
20 Risers.
BrandZ™ Top 100 and two-thirds of the
Googlenumber1 Top 100 total brand value originate in
Twitter,LinkedInare in North America. All of the Top 10 brands
Google claimed the number one rank are based in the US.06 07 08 09 10 11 12 13 14
in the BrandZ™ Global Top 100. Twitter and LinkedIn entered the Top 100
Source: Millward Brown Optimor, BrandZ™ data for the frst time, at numbers 71 and 78, Index of annual brand value growth, 2006=100 Fewerfast
respectively. Amazon entered the Top 10 Apparelleadsgrowth
at number 10, the frst retailer to achieve growingmarkets
this distinction.
Apparel led all categories in overall
Slower economies in fast growing
brand value growth with a 29 percent
markets reduced the number of brands
rise, following 21 percent a year earlier. Microsoftgains29%
from those counties in the BrandZ™ Consumercategoriescatchup
Global Top 100, from 17 a year ago to 14,
With Microsoft up several slots, after a
Consumer categories, which includes apparel, cars, luxury, Allcategoriesup 11 from China, two from Russia and one
29 percent brand value increase, the top
personal care and retail, grew sharply in brand value in the from Africa.
four brands in BrandZ™ Global Top 100
BrandZ™ Global Top 100 2014, as spending rose following a All 14 categories increased in brand
are in the technology category – Google,
period of shaky consumer confdence and high unemployment. value, 10 of them with double-digits.
Apple, IBM and Microsoft. Brandsfrom
manynations
Techbrandsdrivevalue
Other brands from China and Russia, and
Around a ffth of the BrandZ™ Global also brands from Brazil, Colombia and
200 Top 10
Top 100 are technology brands and Mexico appear in the category rankings,
these 18 brands account for $827 billion which include some high-value brands
in brand value, nearly a third of the Top below the Top 100 brand value threshold.
100 total value.
100
Consumer
06 07 08 09 10 11 12 13 14
Source: Millward Brown Optimor, BrandZ™ data
Index of annual brand value growth, 2006=100
12 BrandZ™ Top 100 Most Valuable Global Brands 2014 13Section 01 | Highlights Key Results
Key Results
Summary of category performance
Consumer and Food and Drink Financial Commodity Technology
Retail Categories Categories Categories Categories Categories
Apparel Personal Care Beer Global Banks Oil and Gas Technology
+29 percent +12 percent +14 percent +15 percent +3 percent +16 percent
Apparel led the More personalized Consolidation continued in Having paid off Investor pressure on return The consumer brands
categoriesin brand value products, men’s a category where four global government loans and on investment and geopolitical continued to expand their
appreciation. The brands with the grooming and innovations combining brewers predominate with large reorganized their events intensifed the routine oil and ecosystems in an attempt to be an
greatest increases – Uniqlo, up 58 cosmetics with pharmacology drove brand portfolios of hundreds of local and businesses to be more effcient, the gas brand challenges of exploring for invaluable part of consumer daily life.
percent; Nike, 55 percent; and Adidas, sales in a crowded category. The global beers. The brewers attempted to banks made money and brand values resources in some of the earth’s most They found ways to monetize their
47 percent – illustrate one of the key convergence of technology and drive volume in fast growing markets improved. The public remained skeptical, fragile environments. Oil and gas customer relationships while also
category trends, the convergence of personal care resulted in small appliances and accommodate the desires of mature however, because of bank past misdeeds increased the least in brand value of engaging in less proftable activities
apparel and technology into wearables. for skin cleaning. Sales in China remained market consumers seeking new tastes and high executive pay. all categories. to serve humanity and claim a higher
an important factor. and experiences. purpose. The business-to-business
Regional Banks brands adjusted to a commercial model
+6 percent radically changed by Cloud computing.
Strong local economies propelled banks
in North America and Australia, where
Cars Retail Fast Food proximity to Asian markets also helped.
+17 percent +16 percent +10 percent But the declining band values of some
Chinese banks were a drag on overall
Carmakers had a good Retailers confronted Chipotle and Starbucks led
category brand value.
year with sales driven the mismatch between in brand value growth with
primarily by the resurgent legacy real estate and increases of 48 percent and
US economy and UK demand. changed consumer shopping habits. 44 percent, respectively. Both brands met Telecom Providers
But car sales increased in China, Conditioned by shopping both in the consumer desire for a fast food +8 Percent
too, despite slower economic physical stores and online, consumers experience where the meal is tasty
growth and government purchasing expected everything – broad assortment, but healthier and offered in a more In Europe, the category Insurance
restrictions aimed at reducing the lowest prices and immediate comfortable restaurant environment. experienced more consolidation. +11 percent
congestion and pollution. gratifcation. Brands sought ways to And brands added content to
meet these expectations by transforming The major European their bundle of services, in an effort to
the category with seamless solutions. insurance brands did well, differentiate. T-Mobile offered pay-as-you-
with Allianz increasing 48 go pricing in the US, disrupting a market
percent in brand value and organized around long-term contracts and
AXA up 44 percent. US property and bundled services.
casualty insurers led the way in trying to
Luxury Soft Drinks analyze big data to enhance customer
+16 percent +4 percent centricity and reach and retain new,
young customers. Online insurers
Consumers felt Brand value appreciated in
continued to disrupt the category.
entitled to buy luxury a category where volume of
again. They were more CSDs (Carbonated Soft Drinks)
discerning, even in China. And luxury declined for the ninth consecutive year
brands strategically rebalanced back in the US because of consumer health
toward exclusivity, having increased concerns. Brands continued to market
accessibility in a tactical effort to ambitiously and introduce new products.
build sales during the recession.
14 BrandZ™ Top 100 Most Valuable Global Brands 2014 15Section 01 | Highlights Cross-Category Trends
Cross-Category Trends
The forces building and disrupting brands
and categories
Seamlessness Convenience Localization
Shopping was multi-channel. Then it Conditioned by the economic slowdown Like the yin-yang of high tech and high
was omni-channel. Now it needs to be and their experience with in-store and touch, global and local are
a seamless, consistent experience online shopping, consumers expected complementary infuences for brands
whenever and wherever the consumer is everything – the range available online to balance. Certain categories, such as
dreaming about purchasing, exploring with the immediacy of physical stores fast food, soft drinks and beer, build
possibilities or transacting business. and the best possible price. global scale and consistency, adjusting
for local tastes.
Accomplishing this goal may be Many European hypermarkets and other
challenging and complicated. But by retailers evolved their click and collect Local is gaining in importance. It implies
defnition, seamlessness means that the models for ordering online and picking quality and reliability along with
brand makes the transitions between up in-store. originality and attention to detail not
physical and virtual invisible to the associated with mass production. The
consumer who’s interested in the results In the latest iteration, shoppers order rise of craft beer and the resurgence of
not the process. And seamlessness online and pick up items, often on the ale in the UK refect this trend. Local
centers on the customer. way home from work, at conveniently food sourcing is another example.
located drive-thru warehouses.
Personalization
Authenticity
Too ubiquitous, designer logos no longer
validate how the consumer sees herself Sometimes the most compelling aspect
or wants to be seen. Self-expression is in. of a brand is the product itself. To accrue
In the luxury category, popularity economies of scale the major brewers
increased for interesting jewelry, not generally produce beer near where it’s
simply the traditional precious gems, but consumed rather than where the brand
other colorful, distinctive stones that originated. But sometimes the brewers Trust Share of life
consumers chose for their uniqueness. balance this business imperative with the
The celebration of uniqueness was need for brand authenticity.
Consumers expect brands to keep their Brands aim to gain greater share of
evident in the extensive personal care
promises. Some categories have wallet. But many forward thinking brands
product ranges for hair and skin types The major global brewer SABMiller makes
disappointed. Coming out of the global are now looking to achieve that goal by
serving a more inclusive ideal of beauty. Customization Peroni, its Italian brand, in Italy, charging
fnancial crisis, many banks strengthened increasing share of life, being present in
a premium to cover the additional cost.
capitalization, sharpened their business more ways to make a customer’s life
Grande soy iced vanilla latte may Heineken sold in the US is brewed in
focus, revised codes of ethics and better or simpler.
summarize customization, but the trend Denmark. Luxury brands stressed
improved communication with
doesn’t end with Starbucks. McDonald’s provenance as part of what makes them
customers. But with the revelation of The major ecosystems – Apple, Google
plans to simplify and customize its menu authentic and exclusive.
new and past misdeeds trust cracked and Amazon – serve as models for
for the mealtime preferences of various
like a fragile shell. surrounding consumers with product,
consumer groups, such as Millennials
services and content. But brands in
and families. In soft drinks, a category Multi-functionality
Lost trust damages brands, as apparel diverse categories are engaged with
driven by CSDs (Carbonated Soft Drinks),
maker Lululemon discovered when the customers, in useful and brand relevant
consumption is declining and Coke The importance of multi-functionality
stretch fabric of some of its products ways, across many aspects of their lives.
is customizing. refects the multi-tasking way many
performed poorly and the company
people live their lives. SUVs (Sport Utility
initially blamed customers for the fault. The Home Depot and Lowe’s provide
It’s going beyond its Freestyle vending Vehicles) combine basic transportation
GM and Toyota sustained public home improvement fnancing. Walmart
machine that enables customers to mix with room for cargo. Soft drinks quench
rebuke when they failed to maintain offers fnancial services. The Chinese
ingredients and make about 100 varieties thirst but often while adding a functional
safety standards. Internet brand leaders, Tencent, Baidu
of soft drink. In an arrangement with beneft, an energy boost or vitamin
and Alibaba, are building online banking
Green Mountain Coffee, the company supplement. Apparel provides protection
The price of lost trust varies. Bank centers and mobile payment systems.
that makes single-serve coffee pods, but it can also monitor metabolism.
reputations declined, but the diffculty Tesco and the Latin American retailer
Coke is developing a machine for
in switching helped limit the business Falabella are MVNOs (Mobile Virtual
customizing soda at home.
impact. Not all categories are so Network Operators), renting capacity
protected by customer inertia. Strong from telecoms and branding a mobile
Technology to make driving safer
brands are better able to sustain service to gain a greater customer
or more enjoyable adds more
fuctuations in trust. share of life.
customizing options in a category
known for customization.
Share of life helps broaden and deepen
the bond between customer and brand.
This relationship potentially benefts the
customer with improved service and the
brand with additional sales.
16 BrandZ™ Top 100 Most Valuable Global Brands 2014 17Section 01 | Highlights Take Aways
Take Aways
10 insights for growing brand value
Payment options
01 04
Payment in several categories shifted 08
to a disruptive pay-as-you-use model. Knoweachcustomer Beagile Standforapurpose
Amazon and other Cloud providers
It’s time to revise the adage the Planning is important. The stakes
sold access on an as-needed basis, beyondproft
customer comes frst. Today, each are too high and it’s the rare
replacing the licensing arrangements
customer comes frst. Working brand that improvises its way to Given a choice, people want to
that enterprise customers maintained
to achieve that goal will improve success. But the strategy drafted associate with brands they feel
with business-to-business technology
business. It’s about analyzing in the boardroom needs constant good about, brands that “Do no
companies.
dots of data that together reveal market reality testing. Planning and evil,” as Google asserts. And even
each customer’s shopping needs. fexibility make a good marriage. do some good. “Smarter Planet”
In the US, T-Mobile introduced a pay-as-
In the insurance category, many works for IBM. But if you’re not
you-use arrangement to a market where
brands that created one-size-fts-all one of the world’s most valuable
telecom providers traditionally locked in
products now are trying to be more brands, it’s OK and more believable
customers for two-year contracts.
customer centric. They analyze data to focus on improving the part
to understand individual customers of the planet that you touch.
Among the trends impacting car 05
and identify key lifetime events and The purpose needs to be brand
ownership is the growing popularity of
insurance opportunities. Stayrelevant relevant, important to customers
pay-as-you-use car sharing schemes
and pursued diligently.
that make vehicles available for hire by There’s an ongoing tension
the hour. between respecting a brand’s
heritage and keeping the brand
up to date. Keeping the brand up
Men shoppers 02 to date doesn’t mean presenting
the brand as something it isn’t. It’s 09 Bemeaningfully
Men had confned their luxury purchases great if a brand story is exciting and Employtechnology
to watches and cars. Today they’re different inspiring. But it’s most important
interested in well-tailored shirts and that the story is fact, not fction. forcompetitive
Being different in a meaningful way
suits. Men’s grooming is one of the
means that customers understand advantage
fastest growing segments of the personal
the brand and the advantages that
care category. In most categories technology
it offers relative to the competition.
is either a driver or disrupter or Healthiness Technology It’s not easy to establish meaningful
Retail shelves once devoted to razors and both. The fusion of apparel and
difference. But it’s important as 06
shave cream in aerosol cans now include technology into wearables is one
Consumer concern with health both Technology impacted every category one of the crucial drivers of brand
facial creams and other pampering Keepyoureyesopen example. Because the impact
challenges and propels brands. In soft with innovation or disruption or both. equity, the infuence a brand has
products. The packaging in dark colors of technology is unavoidable
drinks, CSD (Carbonated Soft Drink) Retailers reduced real estate portfolios over the inclination to purchase. Spend time on thought leadership.
signifes masculinity and differentiates today, brands face a clear choice:
consumption continued to decline. of stores and explored technologies to As brands navigate through
from the women’s products. Among the risk fnding ways to achieve an
make the experience in the physical and transformation, consolidation and
drivers of this trend are cultural habits advantage using technology, or
In fast foods, McDonald’s added healthier online stores unique, useful and seamless. disruption, knowledge is vital. It’s
coming from Asia. In Korea, for example, do nothing and risk that your
items, while Chipotle made higher quality useful to see what’s going on in
men are fne with wearing makeup. competitors will do something.
food its brand positioning and Subway Wearables, like Google glasses, signaled other places, particularly in the fast 03
emphasized freshness. the early days of the convergence of growing markets where sometimes,
Luxury brands such as Gucci, Prada and
technology with apparel. Telematic Bemindfullypresent because necessity is greater, so
Burberry are opening stores devoted
Chipotle rose 48 percent in brand value. devices that monitor driving habits is invention. The use of mobile for
exclusively to men. In a world noisy with brand
Since the inception of the BrandZ™ Top potentially can disrupt the insurance payments and banking in China is
messages it can be diffcult
100 Most Valuable Global Brands in category. Carmakers loaded cars with one important example.
to be seen and heard. Digital 10
2006, the Subway brand has experienced technology to improve safety and driving
and social media are important
the greatest percentage increase in enjoyment. Car buyers viewed the latest Investinbrands
places to represent the brand.
brand value, 7,338 percent. technology as standard not luxury.
But use discretion. Be present There’s a quantifable return on
where it makes sense for the investment in brands. Some of the
Retailer Whole Foods, which stresses Technology disrupted the technology
brand. Intruding uninvited into 07 return is felt at the register. Some
its sourcing of organic and sustainable category itself as business-to-business
conversations risks seeming like a of it is in the share price. In the
products, rose 37 percent in brand brands, built around PCs, struggled to Execute
clueless party guest. The encounter eight years since we introduced the
value in the 2014 BrandZ™ Global Top adjust to the intensifed competition and
might be memorable but unhelpful. The last few years were good BrandZ™ Top 100 Most Valuable
100. During the national conversation a world of mobile devices.
Comment when it’s appropriate and for planning and putting in place Global Brands, our BrandZ™ Strong
about health care in the US, the drug
be authentic. new strategies, as consumers Brand Portfolio has appreciated
store brand CVS renounced its $2 billion
caught their breath and regained 81.1 percent compared with a 44.7
tobacco business as incompatible with its
confdence following the fnancial improvement in the S&P 500.
brand purpose as a health provider.
collapse and recession. Consumers
are back. It’s time to execute.
18 BrandZ™ Top 100 Most Valuable Global Brands 2014 19