11. Millward Brown study throws up some big trends and a few surprises.
• The latest edition of the “Brandz Top 100 Most Valuable Global Brands” was released last week.
An annual ranking of the world's most valuable brands, it is keenly awaited by marketers
worldwide. This year's results made headline news immediately, because Apple took the top spot,
effortlessly overtaking giants such as Google (last year's leader), IBM, McDonald's and Microsoft.
• The Brandz rankings are based on the Millward Brown Optimor model. The study uses
information from an amazing two million in-depth consumer interviews in 30 countries, as well as
publicly available financial information, to arrive at the power list of global brands. It is widely
accepted as one of the most comprehensive annual rankings of brand value. Each year, it also
throws up big consumer trends and marketing lessons. Here are some interesting highlights,
trends and surprises in this year's Brandz rankings.
• APPLE: THE MOST VALUABLE BRAND IN THE WORLD
Apple occupies the No. 1 global rank, with a phenomenal brand value of $153 billion. Its brand value is
now the equivalent of Peru's GDP. As the Brandz report says – “When a single brand creates as
much value as the entire economy of a fast-growing Latin American country, it's time to stand and
take notice.” Powered by an immensely successful new product, the iPad, as well as new versions
of existing products such as the iPhone, Apple's brand value grew by a stupendous 84 per cent
over the past 12 months. This is the triumphant story of excellent consumer insight translated into
brilliant products. Apple understood consumers were hungry for easy-to-use access to data and
images wherever they went. It met this latent need with the iPad and the iPhone 4. By end-2010,
nearly 20 million consumers worldwide owned either an iPad, or one of the many other tablets
launched in its wake. No wonder brand Apple is right at the top.
12. • THE TOP TEN BRANDS
Apart from Apple, the other brands in the top ten ranks this year are Google, IBM,
McDonald's, Microsoft, Coca-Cola, AT&T, Marlboro, China Mobile and GE. Notice
how this list is dominated by technology and telecom brands – six of the top ten
brands are from these two categories, reflecting their growing influence over our
lives. In sharp contrast, brands from traditionally large industries such as cars,
banking and consumer durables do not feature in the top ten. It is also relevant to
note that nine out of these ten top brands are born and headquartered in the US.
Despite all the talk about the rise of Asia and Latin America, the US remains by far
the most dominant influence in the global world of brands.
• THE CHINA EFFECT
While the US continues to be the epicentre of the world of brands, China has begun
making an early impact. This year, 12 Chinese brands feature in the Top 100. These
include China Mobile (the only non-American brand in the top ten), the Chinese
search engine Baidu, China Life Insurance, and a social network brand called
Tencent/QQ. Many of these brands reflect the huge size of the Chinese market,
and the growing affluence of its population. For instance, the social network
Tencent/QQ has over 800 million (!) users in China, which is more than the number
of people who use Facebook worldwide. Similarly, Baidu has established a market
share of over 80 per cent in the Chinese search market, driven by its deep
understanding of China's diverse cultures and languages.
In contrast, only one Indian brand (ICICI Bank) features in the 100 most valuable
brands. Are Indian brands missing a trick, or is it just that India is lagging China by a
few years, in market size and affluence?
13. • AMAZON OVERTAKES WAL-MART
A surprise this year is the top ranker in the retail category. Amazon, the online retailer, overtook the giant Wal-
Mart to become the most valued retail brand. It achieved a brand value of $37 billion, despite having no
brick-and-mortar stores at all. This is a clear pointer to where the future of retailing lies. With the
increasing use of Internet search engines, Facebook networks, tablet computers and smart mobile phones,
online shopping has suddenly become very big in several countries. Amazon has leveraged this trend
superbly, with an unparalleled selection of products, an excellent e-commerce foundation, and the recent
addition of new merchandise categories including food. eBay is not far behind, it is already the sixth most
valued retail brand in the world.
• DIET COKE OVERTAKES PEPSI
In the beverages category, Coca-Cola has always occupied the No. 1 rank, and Pepsi has for several years been
ranked second. Once again this year, Coca-Cola retained the top slot. But in yet another surprising change,
Diet Coke knocked Pepsi out to emerge as the second most valued soft drink brand. This shift reflects the
global trend towards health and wellness, and growing concerns about obesity, particularly in rich nations.
The move towards functional and energy drinks was further emphasised by the growing brand value of
Red Bull, which moved to the No. 4 rank ahead of Fanta and Sprite; and also by Gatorade, which is now
ranked seventh.
• TOYOTA RETAINS ITS TOP SPOT
Toyota retained its ranking as the most valued brand of cars in the world, despite quality issues and the widely
reported recalls of over eight million cars. In fact, Toyota increased sales by a handsome 8 per cent
worldwide during the year, selling over 8.4 million cars during 2010. This is an illustration of how a strong
brand can withstand and overcome problems, by being transparent with its consumers, and by
implementing necessary actions swiftly. Not merely did Toyota order the recalls of these faulty cars at
enormous cost, but it also introduced an extended warranty on its new cars to reassure consumers
immediately. The brand also continued to invest strongly in Toyota Prius, pushing the agenda on fuel
efficiency. Indeed, as the Brandz study points out, Toyota's recent travails and smart recovery is a textbook
example in brand resilience.
14. LUXURY IS BACK
• Luxury brands have recovered surprisingly rapidly, post two
years of recession. The brand value of the most powerful
luxury marque, Louis Vuitton, surged 23 per cent within a
year, to $24 billion in this year's rankings. Similarly, the
value of Hermes rose 41 per cent to $12 billion, and Cartier
strengthened by 34 per cent to $5 billion. Luxury brands
make people feel good about themselves in a timeless sort
of way, and affluent consumers who had shunned
conspicuous consumption during the depths of the
economic downturn were no longer apologetic about
buying into these labels. However, in an attempt to develop
a new and more responsible ethos of luxury, many of these
brands emphasised social responsibility – such as impact on
the environment, on African mines, on people in
manufacturing units.
15. • MCDONALD'S BECOMES MCSTRONGER
If you thought McDonald's is on the decline because high-calorie junk
food is going out of fashion, think again. The world's largest fast
food brand increased brand value by a handsome 23 per cent, to
$81 billion. It achieved this increase by riding the trend towards
health, while continuing to woo young tastebuds with burgers and
French fries. For instance, it introduced oatmeal in many of its
restaurants, and added a $1 healthy breakfast option as well. These
new introductions suddenly provided many more family dining
possibilities, and drove significantly higher traffic into the Golden
Arches. They also helped counter the rapid rise of health-and-
freshness focused brands such as Subway, which had, earlier this
year, overtaken McDonald's in the total number of outlets
worldwide. A lesson in how brands can become stronger by
extending themselves smartly, if they leverage big consumer trends.
