Is your brand’s value rocketing?

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18 February 2010£3.50www.marketingweek.co.uk

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Is yourbrand’s valuerocketing?We reveal the world’s 500most valuable brands

An easy winCompetitionsare the latestmarketing toolto go ‘social’

Stuart SmithToyota’s crashjust anotherstep on journeyfor Hyundai

CustomerengagementToo manybrands failingtheir audience

20 9 22

Front Cover 16/2/10 18:27

14 | Marketing Week | 18 February 2010 | marketingweek.co.uk

cover story top 500 global brands

How can you make yourbrand’s value rocket?The recession has been the making or breaking of many brands, and those that have used the time toreappraise their role in the changing market are nowscaling up the 2010 Brand Finance Global 500 list tobecome the world’s power brands. By Jo Roberts

ould you be surprised tolearn that banks hadincreased their brand valuethis year more than anyother sector – even food? Orthat the brand worth of an

internet business has overtaken the world’sfavourite soft drink?

These are just some of the revelations to befound in this year’s 2010 Brand Finance Global500 list of the world’s most valuable brands.

Among individual companies, Google hasrisen to second position, up from third placein 2009. It sits just behind Wal-Mart, the USretailer which has retained its crown as topglobal brand for the second year running.

The search engine’s brand value has risenby 23% to $36bn in the 2010 league table,

W

Cover Story 16/2/10 15:20 Page 14

WINNERS 2010

marketingweek.co.uk | 18 February 2010 | Marketing Week | 15


VIEWPOINTAXA

AXA group marketing andcommunications director CherylToner explains why she believesthe brand has moved up 16 placesfrom 45 to 29 on the Global 500League Table.

Our brand positioning was being looked atlong before anyone knew the financial crisiswas coming. One of our key findings was thattrust was key to the relationship with ourcustomers – that has been proven morerelevant because of the crisis.

We have been looking at all the areas wherewe need to be seen as reliable, which is a keydriver of trust in our industry. It’s basicallyabout keeping our promises.

We think we have been quite ambitiouswith our Redefining Standards brandpositioning as far as our industry is concerned.Any repositioning takes time but we havestarted to see improvements on our brandtracking in terms of customer satisfaction.

Our brand positioning has two angles to it.First, we have been looking at how we canimprove customer service and the brandexperience overall. And then we’ve beenreally strict with ourselves when it comes to

advertising. All of our marketing aroundRedefining Standards is based on concretepropositions or elements of these.

Our latest campaign [up to 90% no-claimsdiscount] is a good example of taking aspecific proposition based around wanting toreward experienced drivers. We’reconcentrating on the fact we’ll reward driverswho have never had serious claims.

It’s about having products that appeal toour target segments. We feel that drivers aged45-plus want to be rewarded for being morereliable. They tend to be more loyal as well.The proof-point in that campaign is that it’sthe best no-claims discount in the market.

Other examples of this strategy in the pastyear include introducing a dedicated claimshandler for water damage claims and adedicated nurse for cancer patients from AXAPPP Healthcare. For each one, we looked at thetarget segment and then undertook research tofind what’s really important to them.

The brand team works closely with the restof the business to find these “concretepropositions”. Building a relationship withthe customer is really at the heart of whatwe’re trying to do. We’re continuing to investin our brand.

CHANGE IN TOTAL BRAND VALUE $BN

� Banks 127

� Telecommunications 97

� Food 70

� Electric 35

� Oil & Gas 32

� Insurance 30

� Miscellaneous Manufacture 30

Engineering & Construction 27

Auto Manufacturers 26

� Transportation 24

LOSERS 2010 TOP 10 SECTORS BY BRAND VALUE

CHANGE IN TOTAL BRAND VALUE $BN

� Chemicals -1

Building Materials -2

Lodging -2

� Leisure Time -2

� Fashion -3

� Home Furnishings -4

� Tobacco -6

� Airlines -7

� Toys/Games/Hobbies -10

� Retail -42

TOTAL BRAND VALUE $BN

� Banks 454

� Telecommunications 352

� Retail 224

� Auto Manufacturers 163

� Beverages 128

� Food 127

� Insurance 127

Oil & Gas 118

Computers 117

� Media 93

while its enterprise value has almost doubled,from $79.1bn to $158bn.

David Haigh, chief executive of valuationconsultancy Brand Finance, says the internetbusiness has taken the second spot “by beingthe ubiquitous source of search”. He adds: “Theclever thing about Google is that it has monetisedthe business in all sorts of different directionsand that’s why its brand value is so high.”

Haigh suggests that the power of the Googlebrand has potential to combat global leaders,such as Microsoft in software or Vodafone inmobile, should it decide to invest further in thesebusiness areas.

Google’s director of marketing for UK andIreland, Torsten Schuppe, says he thinks that thebrand’s success is a result of its innovativestreak. He says the company will continue toinvest in search, advertising and applications inorder to develop the business.

“We always strive to surprise and excite ourusers and help our partners increase revenues –something that has remained a constant over theyears and we’re committed to it in the future,”promises Schuppe.

There are signs that the company is looking totake its brand even further into new areas in thecoming years. Google says there are plans tolaunch a phone that will translate languages inreal-time. Google’s translator software will runduring a call, according to an article in The Times.

While Google is climbing up the ranks, Coca-Cola has dropped into third position in 2010,down from second last year. The drinks giantheld the top spot in 2007 and 2008, but Haighsays its lower position reflects the fact thatemerging markets haven’t developed a taste forthe fizzy drink brand. “Coke is on a long-termdecline unless it can reinvent itself,” he argues.

However, Haigh does admit the company isdiversifying by taking a “house of brands”approach and investing in other soft drinks, suchas its flavoured water range Vitamin Water. This,he says, will help to strengthen the businessglobally as it moves into markets such as China.

Coke’s rival Pepsi has also fallen from 21st to30th position in the 2010 global brand list.Mobile brand Vodafone, by contrast, has climbedup a rung in the global 500 list, from eighthposition into seventh this year.

Haigh says the mobile brand is “back on thegrowth path”. Its brand value is up from$24.6bn in 2009 to $29bn in 2010’s league table.

Analysts predict a strong sales increase forVodafone this year now that the iPhone isavailable in markets such as the UK on itstariffs, and this is reflected by the higherpositioning in the league table.

Apple is also looking in fine health in thisyear’s brand list. It has continued to rise up therankings into 19th position from 27th in 2009,and its brand value is up to $19.8bn from$13.6bn. While there has been a tepid responseby many analysts to the recently launched iPad,strong presales of the tablet computer in Europesuggest Apple will continue to strengthen itsbrand throughout 2010.

While certain brands continue to grow indefiance of the economic climate, other sectorshave bounced back after suffering over thepast few years. �

“The brand’s successis a result of itsinnovative streak.Google will continueto invest in search,advertising andapplications todevelop the business”Torsten Schuppe, Google



Governments around the world bailing outthe banks has had a positive effect, putting thesector in the strongest position overall in termsof regaining brand value. While business isrecovering, Haigh notes that “banks are slightlychastened by the experience and are tryingharder”, spurring many banking brands torefocus on their customers.

HSBC retains the top banking spot in eighthposition; Santander comes in second place, inthe 12th spot overall. Last year it came in atnumber 41, meaning that it claims the title of thefastest growing banking brand.

Santander has used its global might tocommunicate security and push forward with therenaming of Abbey, which it acquired in 2004. It

has also been hoovering upsome floundering bankingbrands along the way,

buying British mortgage lender Alliance &Leicester and Bradford & Bingley’s branch

network. Haigh

says thegiant banking corporations have been able tocommunicate their security as the weaker bankshave disappeared. “Most of the really bad oneshave gone bankrupt. Brands like Santander and


�

CASE STUDYDISNEY

The company built around the success of acartoon mouse called Mickey sits in 18thposition in the Global 500 table, making it thetop media brand for the second year in a row.

But while Disney may have its heritage in hand-drawn animations, the company claims it is now just as comfortable having a presence on digital platforms as on thesilver screen.

Tessa Moore, corporate brand vice-presidentfor The Walt Disney Company EMEA, says thebusiness realises that it has to understand allthe ways in which its consumers useentertainment.

“We’ve got a lot of what we call ‘contentengines’,” she says. “We generate charactersand stories that appeal broadly. Our philosophyis platform agnostic, which means we need todeliver on the platforms that people want, andwhere and when they what.”

Letting the brand roam across platforms andchannels is what the firm calls the “Disneydifference”, says Moore. It is what allows thesame brand to move its franchises such as thePirates of the Caribbean from theme-park ridesto movies to online virtual worlds.

The idea of being channel agnostic doesn’tjust apply to new characters and stories. Theentertainment brand has just launchedDigicomics, which will allows fans to down -load comics, taken from its archive, throughtheir video game console or mobile phone.

These comics feature traditional Disneycharacters such as Mickey Mouse and DonaldDuck. “We take each property and characterand look at where we think the consumertarget market is. Or we look at the consumer

and think about how we can create content,”Moore explains.

Disney’s content has become much morebespoke to local markets in recent years.While many characters have global appeal, ithas also recognised franchises that work inspecific markets. The media company has justlaunched its first Indian animation, for example.

And while The Princess and The Frog is aglobal film launch, Disney’s latest release hasbeen locally voiced in more 30 differentlanguages, rather than dubbed.

Moore says that some of the company’s

recent activities show “we can go in so manydifferent directions for our customers”. Shecites the diversity of the launch of the newDisney XD channel, which is skewed towardsboys and the more adult Marvel comic brandacquisition.

She claims it is this ability to create globalfranchises and make them work acrossmultiple platforms that will keep Disney atthe top of its game for another 87 years.

She adds: “At our heart is connecting withfamilies and children by providing compellingand relevant entertainment.”

�

“Brands like Santander and HSBC havebeen making hay because they’ve beenreinforcing the things that they havebeen doing well before”David Haigh, Brand Finance

TOTAL BRAND VALUE US$ BILLIONS

$2289bn

$16,138bn

$2873bn

$18,664bn 2010

2009

� Total Global 500 Brand Value� Total Global 500 Enterprise Value

Still animated: Disney comes inas the top media brand, helped by its ‘platform agnostic’ strategy


marketingweek.co.uk | 18 February 2010 | Marketing Week | 17


CASE STUDYSANTANDER

While other banking brands disappearedduring 2009, Spanish brand Santander hasbeen increasing its presence. This isrecognised in this year’s Brand Finance Global500 list where Santander is revealed as thefastest growing bank.

Santander was not a name familiar to mostBritish consumers just a few years ago, butnow it has fully introduced its name across UKhigh streets, replacing its subsidiary Abbeybranches with its own moniker.

Abbey is not the only bank that has beenadded to the Santander empire; other morerecent purchases by the Spanish companyinclude Bradford & Bingley and mortgagelender Alliance & Leicester.

But it is not just about eating up thecompetition; Santander says it hopes thatintroducing its name to more people outsideSpain will help it to build an affinity with UKconsumers.

Santander UK brand director Keith Moorsays the Abbey rebranding process wastreated with great care to ensure that it didn’tput off British people used to seeing Abbey ontheir streets.

“The [name change] timeline waspredicated on customer insight. We are a verycustomer-focused retail-based business,” heclaims. “We have 25 million customers acrossthe group in the UK so we can’t afford toalienate those customers.”

Moor says the economic climate enabled thebrand to speed up the rebranding process.Research in 2008 indicated that consumerswere ready for the change. The large size ofthe Santander was perceived as a strengthamong customers who felt comforted that size

represented safe banking. The Santander rebrand isn’t just about

changing the name; it’s also about“developing propositions to buildrelationships with customers”, argues Moor.

The Zero Account, which launched inJanuary, is an example of Santander’s attitudetowards customers, he adds. The account,which is available to Abbey and Bradford &Bingley mortgage customers, won’t chargecustomers when they use their debit cardsabroad and won’t charge fees for slipping overan overdraft limit. Santander will beintroducing more products in the comingmonths that will demonstrate its commitmentto customers, claims Moor.

He says the Santander brand promise isabout recognising the relationship with itscustomers and also rewarding people who domore business with the bank. He believesSantander and other banking businesses willhave to do more for their customers thansimply state they are a bank.

“Banks have historically paid lip-service tobeing customer-focused. But the interruptionin the economy served to endorse whatcustomers always thought about banks – thatthey are arrogant. So the financial crisis hasbought banks back down to size,” he says.

Moor says that Santander is aware that it ison a continuous journey to reassure itscustomers that it is a safe bank – somethingthat the industry had forgotten tocommunicate prior to the recession.

He claims: “That’s how our communicationshave changed and will continue to change.Part of our message is saying that ourcustomers have made the right choice.”

TimelineSantander rebrand

� November 2004Santander purchases Abbey.

� November to May 2005 Santanderintroduces the company’s flamesymbol and typeface to the Abbeylogo.

� March 2007The tagline “part of Santander group”is introduced underneath the Abbeylogo. Communications aboutSantander are introduced into Abbeybranches.

� 2007Santander announces the globalsponsorship of the McLaren team inFormula One. In the UK, Santandersponsors the British Grand Prix anduses British driver Lewis Hamilton tobring the sponsorship to life in the UK.

� During 2008In response to the credit crisis,Santander starts advertising about thestrength and security of the SantanderGroup.

� Towards the end of 2008The strapline “together we areSantander” is introduced duringadvertising to bring the company’sbrands together.

� January 2009 Santander’s research claims themajority of customers have a higherconsideration rate for doing businesswith Santander than with theincumbent business.

� September 2009Santander announces that it willsponsor the Ferrari team in FormulaOne, in a five-year deal.

� January 2010The Santander name is introduced tothe high street, removing the Bradford& Bingley and Abbey brands.Santander will replace the Allianceand Leicester name during 2010.

Drive for hearts and minds:Santander has brought in LewisHamilton to win over the Brits



HSBC have been making hay because theyhave been reinforcing the things that they havebeen doing well before.”

Insurance has also rebounded as a sector.Confidence is returning to the financialindustries, with AXA managing to use the lastyear to strengthen its brand.

Haigh attributes the brand’s growth in the 500table to its strong brand positioning in the globalmarket. “AXA is 15 years in advance of Aviva increating a global brand and it is now reaping thebenefits. By contrast, Aviva is still in the processof trying to do it.”

Overall, the car industry is also looking muchhealthier. Last year, sales forecasts were fairlyflat but this year the outlook is more positive.The entire industry is going throughfundamental changes which have been longoverdue, says Haigh.

“There’s a whole new generation of electriccars, low fuel cars and sustainable cars, and thisoffers the industry a big opportunity. The carindustry had become a dinosaur that refused tochange, but the economic climate has finallymade it realise that it has to change.”

Toyota features in tenth position but Haighbelieves that its recent global car recall criseswill put a large dent in its brand value. Heexplains: “Toyota was much too slow off themark to face the problem and the price of that isa destruction of brand value.”

Toyota is in danger of losing 35% of itsbrand value because of its handling of therecall, Haigh estimates. He says that Toyota’sdramatic fall from grace is a warning to eventhe most valuable brands not to fall into thetrap of complacency.

While sectors such as the automotive industrylook to be on the way to recovery, retail continuesto be a victim of the recession. The sector is thebiggest loser on the Brand Finance Global 500list, signalling that analysts believe that the highstreet is not going to bounce back in 2010, withlower levels of retail sales predicted by analysts.This is in stark contrast to the banks, which haveincreased their overall brand value enormously.

While some sectors have still got a long way togo before they can signal a return to fullstrength, performances of individual brandsshow that it is possible not only to survivethrough recessionary periods, but to thrive.

Haigh attributes Wal-Mart’s top place positionon the chart to its repositioning from a large,faceless corporate retailer to being a “consumerchampion” during the recession.

And while most sane businesses wouldn’twelcome recessionary times, it appears that thistough economic climate has resulted in manybrands re-evaluating what they stand for. Thosewhich have succeeded look set to perform evenbetter in 2011. �


�

BRAND FINANCE GLOBAL 500:METHODOLOGY

The Brand Finance Global 500 rankingexamines the effect of the brand on thecompany’s bottom line in financial value.The company uses the “royalty relief”method to determine the size of a company’sbrand value as part of its overall enterprisevalue. For more on methodology, visitwww.brandfinance.com

TOP 50 GLOBAL BRANDS

To view the full 500 brands go to MarketingWeek.co.uk

1 1 Wal-Mart Retail 41,365 AA 190,803 22%

2 5 Google Internet 36,191 AAA+ 157,971 23%

3 2 Coca-Cola Beverages 34,844 AAA+ 87,814 40%

4 3 IBM Computers 33,706 AA 180,028 19%

5 4 Microsoft Software 33,604 AAA+ 199,990 17%

6 6 GE Miscellaneous Manufacture 31,909 AA+ 528,713 6%

7 8 Vodafone Telecommunications 28,995 AAA 178,604 16%

8 7 HSBC Banks 28,472 AAA+ 193,794 15%

9 9 Hewlett-Packard Computers 27,383 AAA- 100,998 27%

10 10 Toyota Auto Manufacturers 27,319 AAA 185,402 15%

11 14 AT&T Telecommunications 26,585 AA+ 229,793 12%

12 41 Santander Banks 25,576 AAA+ 128,087 20%

13 15 Verizon Telecommunications 23,029 AA 196,293 12%

14 23 Wells Fargo Banks 21,916 AA 131,225 17%

15 19 Budweiser Beverages 21,279 AAA- 96,950 22%

16 20 Tesco Food 20,654 AAA- 73,969 28%

17 12 McDonald’s Retail 20,192 AAA- 77,140 26%

18 18 Walt Disney Media 20,053 AAA 67,141 30%

19 27 Apple Computers 19,829 AAA- 156,416 13%

20 13 Nokia Telecommunications 19,558 AAA- 48,162 41%

21 24 The Home Depot Retail 19,013 AA- 51,076 37%

22 28 Samsung Semiconductors 18,925 AA+ 86,384 22%

23 16 China Mobile Telecommunications 18,673 AA+ 153,077 12%

24 17 Orange Telecommunications 18,352 AA 120,119 15%

25 - Mitsubishi Miscellaneous Manufacture 17,805 AA+ 231,268 8%

26 30 Shell Oil & Gas 16,997 AAA- 52,214 33%

27 25 Intel Semiconductors 16,642 AA+ 95,316 17%

28 26 BMW Auto Manufacturers 16,616 AAA- 91,170 18%

29 45 AXA Insurance 16,403 AA- 44,326 37%

30 21 Pepsi Beverages 15,991 AA+ 44,866 36%

31 37 L’Oréal Cosmetics/Personal Care 15,890 AAA- 66,208 24%

32 22 Nike Apparel 15,808 AAA 24,776 64%

33 31 Target Retail 15,224 AA 51,678 29%

34 66 Siemens Miscellaneous Manufacture 14,709 AA+ 102,939 14%

35 54 Citi Banks 14,362 A+ 70,105 20%

36 58 BNP Paribas Banks 14,060 AA 67,144 21%

37 89 Goldman Sachs Banks 13,887 AAA+ 93,316 15%

38 52 Mercedes-Benz Auto Manufacturers 13,883 A+ 78,057 18%

39 64 Chase Banks 13,400 AA 69,901 19%

40 - Christian Dior Apparel 13,343 AA 40,912 33%

41 79 Amazon.com Internet 13,340 AA 54,962 24%

42 75 Bradesco Banks 13,299 AAA- 56,583 24%

43 32 UPS Transportation 13,170 AA+ 61,885 21%

44 77 Barclays Banks 13,134 AA 56,155 23%

45 35 Honda Auto Manufacturers 13,083 AA+ 82,377 16%

46 40 GDF Suez Gas 12,878 A+ 146,131 9%

47 65 Allianz Insurance 12,836 AA 57,334 22%

48 39 Oracle Software 12,775 AA+ 105,194 12%

49 50 American Express Diversified Finance Services 12,737 AA 42,043 30%

50 53 Ford Auto Manufacturers 12,652 AA 97,539 13%

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