Page 12 - Connecting Media, Technology And Brands To Tomorrow's Consumer

Section 02
10-Year Performance Analysis // RANKING CHANGES & TOP 10 RISERS
10-YEAR RESULTS
TOP 10 RANKING CHANGES
Top 10 brand flux reflects impact of a dynamic market
TOP 10 RISERS
Sustainable brand strength drives value rise over time
Five of the 10 Top Riser brands come from technology or telecom providers categories. These are high value and high salience brands. Their presence isn’t surprising. However, the presence of five other categories – retail, fast food, beer, apparel and luxury – indicates that brand value growth is widely distributed. Brands within all these categories excelled in brand growth for different reasons.
Domino's Pizza won on brand strength and communication. It responded boldly to consumer criticisms about product taste by improving its recipe and communicating honestly about the change. Apple’s Brand Value reflects its commitment to being different in the products it makes and the brand experience it provides. The constant innovation and disruption that characterized Amazon’s last decade drove value growth.
For many of the brands that increased most in Brand Value over the past 10 years, the rise was steady, but not without bumps. In 2010, when consumers adjusted their post- recession spending, the apparel category declined 4 percent in Brand Value, and Zara increased, but only 4 percent.
In 2012, although Facebook’s Brand Value increased 74 percent on the strength of its IPO, the technology category increased only 2 percent, as fierce competition and efforts to adjust businesses from locally based devices to the cloud impacted many brands. Google declined that year by 3 percent in Brand Value, SAP by 1 percent.
The importance of the brand value increases for these 10-Year Top 10 Risers is not simply that the brand value increased, but that it increased in a sustainable way, rising over time despite the year-to-year ups and downs.
Between 2006, the year WPP launched the BrandZTM Top 100 Most Valuable Global Brands ranking, and 2015, the Brand Value of the Top 10 almost tripled, to $1.1 trillion, one-third of the total value of the Global Top 100. But five of the Top 10 dropped out and were replaced. No brand occupies the same rank today as it did 10 years ago.
This reality reflects both the essential power and stability of high-value brands and the extraordinary pressures that brands faced during the past 10 years, including the global financial crisis that bisected the decade,
the changing consumption attitudes that emerged from the crisis, and the disruption that technology triggered across categories.
Most astonishingly, 10 years ago, Apple, the world’s most valuable brand, did not even rank in the BrandZTM Global Top 10. Apple’s rise demonstrates the strength of the brand, which increased 1,446 percent in Brand Value since 2006. Apple’s performance also mirrors the overall influence of technology.
Four of the BrandZTM Global Top 5 most valuable brands in 2015 are in technology. Six of the Top 10 are technology or telecom provider brands. The addition of more technology brands to the Top 10 reduced the diversity of categories represented, eliminating banks, cars and retail. Now comprised of only North American brands, the Top 10 also became less geographically diverse.
IBM’s rise in the Top 10, from number eight to number four, shows that a heritage brand over a century old, can reinvent
itself. Similarly, the younger Microsoft brand refreshed both its products and its processes to compete in today’s more open and collaborative business culture.
The two telecom providers in the Top 10, AT&T and Verizon, demonstrate the impact of Brand Power on Brand Value. These big and salient brands stretched from being
voice and data conduits alone to offering content, in an attempt to serve customers in a meaningfully different way.
China Mobile slipped from the Top 10. While the telecom provider remains a powerful brand, it’s no longer China’s most valuable brand. That designation belongs to Tencent, the Internet portal. The market-driven brand surpassed state-owned China Mobile last year in Brand Value.
Two iconic brands that ranked in both the 2006 and 2010 Top 10 – Coca-Cola and McDonald’s – Illustrate how a powerful brand can sustain a business through difficult transitions. Both brands adjusted their products and communications to more
effectively address consumer concern about health and calorie intake.
The disappearance of Walmart and Citi from the BrandZTM Global Top 10 exemplified
the impact of disruptive forces. The largest retailer in the world in sales, with over 11,000 stores worldwide, Walmart now ranks third in the retail category, after e-commerce leaders Amazon and Alibaba, which operate no physical stores.
Like other global banks, the financial crisis and an erosion of consumer trust hurt Citi. Although its business has rebounded as it has reorganized, the global banks category overall has not recovered in Brand Value to pre-recession levels.
10-Year Top 10 Risers
Rank Brand
2 AT&T
4 Domino's Pizza
6 Verizon
8 Zara
10 Hermès
Category
Telecom Providers
Fast Food
Telecom Providers
Brand value % change 2015 vs 2006
1,240%
900%
477%
1
Apple
Technology
1,446%
3
Amazon
Retail
941%
5
Skol
Beer
702%
7
Google
Technology
364%
Apparel 331%
Luxury 292%
9
SAP
Technology
299%
Source: BrandZTM / Millward Brown
Does not include fast-rising brands, such as Facebook, that entered the ranking since 2006
Market dynamics impact Top 10
Between 2006 and 2015, five of the Top 10 dropped out and were replaced. And no brand occupies the same rank today as it did 10 years ago
BrandZTM Global Top 10: 2006 and 2015
Brand Value Rank 2006 2006 $M
2 GE 55,834
4 China Mobile 39,168
6 Walmart 37,567
8 IBM 36,084
10 Toyota 30,201
Source: Millward Brown (including data from BrandZ, Kantar Retail and Bloomberg)
Brand Value 2015 2015 $M
Google 173,652
IBM 93,987
AT&T 89,492
Coca-Cola 83,841
1
Microsoft
62,039
Apple
246,992
3
Coca-Cola
41,406
Microsoft
115,500
5
Marlboro
38,510
Visa
91,962
7
Google
37,445
Verizon
86,009
9
Citi
31,028
McDonald's
81,162
Marlboro 80,352
22 BrandZTM Top 100 Most Valuable Global Brands 2015
23