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Brand Value rises 14 percent year-on-year,126 percent over a turbulent decade


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4 BrandZ™ Top 100 Most Valuable Global Brands 2015

CONTENTS

INTRODUCTION

5

02

10-Year Results:Findings and Implications

10-Year Performance AnalysisValue GrowthTop 10 Ranking ChangesTop 10 RisersCategory ChangesBrand Stability

10-Year Trends1. Difference makes the difference2. Brand becomes more important3. Purpose builds equity4. Branding precedes advertising

Thought Leadership:Branding leads advertising as driver of Brand ValueBy Jim Prior, CEO, The Partners and Lambie-Nairn

5. Innovation drives Brand Value6. Love isn’t all you need, but it’s powerful7. Innovation and love form a virtuous circle8. Trusted or busted9. A world of difference10. Value rises in Asia

Thought Leadership: Being meaningfully different can command a premiumBy Nigel Hollis, Executive Vice President and Chief Global Analyst, Millward Brown

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32

343536373839

40

05The Categories

Consumer and Retail

ApparelCarsLuxuryPersonal CareRetail

Thought Leadership:Personalization means much more than initials on a bagBy Eleanor Lloyd Malcolm, Associate Director, Added Value

Food and Drink

BeerFast FoodSoft Drinks

Thought Leadership:Businesses must change faster than the landscapeBy Andrew Curry, Director, The Futures Company

Financial

BanksInsurance

Thought Leadership:Expecting more deception, consumers welcome honesty By Terry Tyrrell, Worldwide Chairman, Brand Union

Commodities

Oil & Gas

Thought Leadership:Constant disruption is the new normalBy Geoff Beattie, Head of Global Strategic Consulting, Cohn & Wolfe

Technology

TechnologyTelecom Providers

Thought Leadership:Connectivity disrupts brands and opens opportunitiesBy Andy Turton, Head of Automotive for the Americas, TNS

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118122126

132

134140

144

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150

154160

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04The Global Top 100

The BrandZ™ Global Top 100 Ranking

Performance AnalysisTop RisersNewcomersCategory ChangesBrand Contribution

The Regions and the BRICsOverview

The RegionsNorth AmericaAsiaLatin AmericaEuropeUK

The BRICsBrazilRussiaChinaIndia

Thought Leadership:Brands communicate about sustainability By Ola Mobolade, Managing Director, Firefly Millward Brown

Social Media Special ReportThe SocialZ Verve Index

Thought Leadership:Necessity and ingenuity fuel entrepreneurial trendBy Leslie Pascaud, Executive VP, Purpose Branding and Innovation, Added Value

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70

7274757677

78798082

84

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03The Future of Brands

OverviewMillennialsPurposeMediaDigitalSustainability

Thought Leadership:Car dealerships offer case study for remaining relevantBy Simon Moriarty, Operations Director, FITCH

Thought Leadership: Across categories brands say they’re in technology By Julian Tanner, Global Technology Leader, Cohn & Wolfe

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06Resources

BrandZ™ Valuation Methodology

Thought Leadership:Brand valuation and insights critical

for success in a changing marketplaceBy Doreen Wang, Global Head of BrandZ™, Millward Brown

BrandZ™ Reports, Apps and iPad MagazineWPP ResourcesWPP Company ContributorsWPP Company Brand Building ExpertsBrandZ™ Global Top 100 Team

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174176178184186

01 Highlights

IntroductionBrandZ™ Stock PortfolioKey ResultsCross Category TrendsTake Aways

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WELCOME

I am delighted to share with you the 10thAnniversary edition of the BrandZ™ Top 100Most Valuable Global Brands.

One of the first questions that people ask onseeing the latest BrandZ™ results is how dobrands build such value? We know from over40 years of research that a successful brandis made up of three key components. Howrelevant or Meaningful a brand is to our lives;how Different it is to competitors and; howwell we know and trust the brand, whetherit is Salient. This topic is examined in more

detail by our Chief Global Analyst, NigelHollis in his article on page 40.

It is no surprise to me that this year’s newnumber one is a brand that practically wrotethe playbook on being meaningful, differentand salient. Apple, with its relentlessfocus on the consumer experience, asdemonstrated with the launch and successof the iPhone 6, returns to the top spot witha 67 percent increase in brand value. Thebiggest riser is Facebook with an increasein value of 99 percent due to success inmonetising and cross-selling across itsplatforms. The highest new entry this year isthe online retailer Alibaba; although mainlyin China at the moment, this is a brand withglobal plans.

We’ve seen some interesting momentumshifts by category this year, with thetechnology brands and telecoms providersclearly continuing to gain traction and showstrong potential for future growth. Basedon our data, we’d expect to continue to seestrong performances for brands like Apple,Facebook, Google and Verizon, as well asTelstra and China Telecom, who break intothe ranking in 2015.

The brands in the Top 100 are now worth$3.3 trillion, an increase of 14% in the

last year alone. Brand value is importantbecause valuable brands lead to successfulbusinesses. In the last 10 years the BrandZStrong Brands portfolio has increased invalue by 102.6%. In contrast the MSCI WorldIndex, a weighted index of global stocks, hasappreciated by only 30%. Put simply, $100invested in the BrandZ™ portfolio 10 yearsago would be worth $203 today comparedto $130 if invested in the MSCI.

The benefits of investing in a brand that wehave seen over the past 10 years are likely tobecome even more evident in the decadethat follows. Market disruption and thechanging consumer mindset make buildingand sustaining a valuable brand essentialto business success. See the article by ourGlobal Head of BrandZ™, Doreen Wang onpage 172 to learn more.

While the value of investing in a brandhas become clearer over the last 10years, what is no less fiercely debated isexactly how that valuation is calculated.There are several different financialmethodologies for valuing brands, eachhas its merits and advocates, but weare confident that the measurementwe employ with the BrandZ™ rankinggives the most realistic result which isultimately endorsed by consumers.

Millward Brown is extremely proud

to be part of WPP, the world’s largestcommunications services group. Thisreport is a great representation of therange of skills and experience withinWPP. From Millward Brown there arecontributions from across our businessincluding Firefly Millward Brown, ourqualitative network (see page 84),Millward Brown Vermeer, our strategicbrand consultancy (see page 47) andMillward Brown Digital (see page 86).I hope that you find it an interesting read.

Feel free to contact me directly if youwould like to discuss any of the issuesraised in this report, or see the contactssection on page 184 for details ofexperts from across our group. We canhelp you grow the value of your brand.

Warmest regards,

INTRODUCTION

7

Dear friends of Millward Brown,

Travyn Rhall

Chief Executive Officer,

Millward Brown

[email protected]

Millward Brown is a leading global research agency

specializing in advertising effectiveness, strategic

communication, media and brand equity research.

Millward Brown helps clients grow great brands

through comprehensive research-based qualitative

and quantitative solutions. Specialist global practices

include Millward Brown Digital (a leader in digital

effectiveness and intelligence), Firefly Millward Brown

(our global qualitative network), a NeurosciencePractice (using neuroscience to optimize the value of

traditional research techniques), and Millward Brown

Vermeer (a strategy consultancy helping companies

maximize financial returns on brand and marketing

investments). Millward Brown operates in more

than 55 countries and is part of Kantar, WPP’s data

investment management division.

www.millwardbrown.com


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Section 01

HIGHLIGHTS


Highlights1


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INTRODUCTION

Five categories outperformed the BrandZ™Top 100 in brand value growth during the10 years since the BrandZ™ Global Top 100ranking began. Fast food rose 252 percent inbrand value; beer, 183 percent; technology,175 percent; apparel, 139 percent; andtelecom providers, 136 percent.

The technology and retail categories ledthe year-over-year brand value rise inthe 2015 BrandZ™ Global Top 100, withboth increasing 24 percent. Insurance andtelecom providers also experienced strongvalue growth, 21 percent and 17 percent,respectively. Two categories declined –global banks and luxury – and apparelremained even year-on-year. In addition:

• Apple displayed remarkable brandstrength, returning to the numberone position in the ranking based onconsumer regard for the brand and itsdevices. The brand’s iPhone 6 successcontributed to an $18 billion quarterly netprofit, the largest quarterly profit for apublic company ever recorded.

• The Chinese e-commerce brand Alibabaentered the BrandZ™ Top 100 for the firsttime, rising immediately to first place inthe retail category, following its recordbreaking IPO, which raised $25 billion onthe New York Stock Exchange.

• Facebook’s brand value almost doubled.The 99 percent increase followed a 68percent rise a year earlier. The other toprisers in brand value included Apple, up67 percent and Intel, up 58 percent.

These category and brand value fluctuationsin the BrandZ™ Global Top 100 2015 reflectthe dominance of technology as well asthe impact of other trends and disruptiveforces, including greater frugality and theuncertainty of geopolitical events like thedrop in oil prices and economic sanctionsagainst Russia.

The BrandZ™ Top 100 MostValuable Global Brands 2015increased 14 percent to $3.3 trillionin total Brand Value, its highestlevel ever, following a 12 percentrise a year earlier.

Over the 10 years since WPP launched theBrandZ™ Global Top 100 in 2006, totalBrand Value rose 126 percent. The Asia-Pacific region now generates almost one-fifth of that value, and China alone accounts

for 13 percent, although North America stillcomprises two-thirds.

Reflecting the growth octane of high-valuebrands, even through disruptive periods,an average of only four or five brands peryear entered or dropped out of the rankingbetween 2006 and 2015, 42 brands in total.

BrandZ™ Global Top 100 increases

14 percent in value to $3.3 trillion Value rises 126 percent during past decade,

despite market turbulence

Highlights // INTRODUCTIONSection 01

HIGHLIGHTS

11

In concrete terms, $100 invested in the2006 would be worth $130 today basedon the MSCI World Index growth rate,and $163 if it grew at the same pace asthe S&P 500. That $100 invested in theBrandZ™ Strong Brand Portfolio wouldmore than double in value to $203.

The strong performance of the BrandZ™Strong Brands Portfolio, relative to twowell-regarded indexes, affirms that valuablebrands deliver superior returns in a sustainedway over time and despite significantmarket disruptions. It also demonstrates thepositive return on money invested to buildmeaningfully different salient brands.

Valuable brands deliver

superior shareholder returnsBrandZ™ Portfolio outperforms the

S&P 500 Index and the MSCI World Index

The BrandZ™ Strong Brands Portfolio increased 102.6 percent over 10 years, between

April 2006 and April 2015, outperforming both the S&P 500, which grew 63 percent, and

the 30.3 percent gain of the MSCI World Index, a weighted index of global stocks.

BrandZ™ Portfolio vs S&P 500 and MSCI World Index

The BrandZ™ Strong Brands Portfolio increased 102.6 percent over 10 years, between April 2006 and April 2015,outperforming both the S&P 500, which grew 63 percent, and the 30.3 percent gain of the MSCI.

The BrandZ™ Strong Brands Portfolio is a subset of the BrandZ™ Top 100 Most Valuable Global Brands

-60%

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0%

20%

40%

60%

80%

100%

April2006

April2007

April2008

April2009

April2010

April2011

April2012

April2013

April2014

April2015

BrandZ™ Strong Brands Portfolio

S&P 500

MSCI

102.6%

63%

30.3%


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12 BrandZ™ Top 100 Most Valuable Global Brands 2015 13

Highlights // INTRODUCTION & KEY RESULTSSection 01

HIGHLIGHTS

Categories and Brand Value fluctuations

The category leaders in brand valueappreciation, technology and retail,experienced periods of transition. Both

rose 24 percent in Brand Value, but fordifferent reasons. The brand value rise of thetechnology category reveals how effectivelyboth business-to-consumer and business-to-business technology brands adjusted tochange.

Brands with large business-to-businessoperations, such as Intel and HP, grew inBrand Value following years of reinvention inthe transition to cloud computing and newbusiness models. The Apple and Microsoftbrands experienced confidence in newleadership. The iPhone success silencedskepticism that Apple post-Steve Jobs wouldsustain innovative leadership. In the first yearunder its new CEO, Microsoft refreshed itsculture and exhibited greater willingnessto be more open and collaborative with itspartners and customers.

In contrast, the retail category brand valuerise reflects the inclusion of Alibaba ratherthan the overall brand value health of thecategory. Without Alibaba, the categoryrose just 2 percent as e-commerce andchanging shopping attitudes continued totransform retail. Walmart, with over 11,000stores worldwide, ranks third in the categoryfollowing two brands that operate nophysical stores – Alibaba and Amazon.

Just about every category experienced thepressure of changing consumer attitudes, inpart driven by the growing influence of themillennial generation. In the soft drinks, fastfood and personal care categories, brandsresponded to consumer concerns abouthealthier ingredients. Category leader s likeCoca-Cola and McDonald’s introduced newproducts and communications to addressthese issues.

Increasing importanceof brand

This 10th Anniversary edition of theBrandZ™ Top 100 Most Valuable GlobalBrands reveals that brand became more

important during the past 10 years as away to survive and flourish through difficulttimes and amid heightened competition.

The global financial crisis of 2008 and 2009bisected the decade. It impacted certaincategories more than others. The globalbanks and cars categories still have notrebounded fully to their pre-recession level.However, no category was spared from thepost-recession shift to less conspicuousand more conscious consumption.

Some brands were better than others atnavigating these challenges. These brandstypically were Salient, coming readily tomind as consumers made purchasingdecisions. In addition, but most succinctly,Difference made the difference. Brandsable to communicate a genuine andmeaningful difference experienced greater

brand value success.

Difference became more important ascategories projected more sameness.Sameness was partially a function ofsuccess. Car performance and safetyis better than ever, for example. Mid-level models offer driving and comforttechnology features similar to those ofluxury cars. Car brands worked to defineareas of difference, and they weren’t alone.

Over the past 10 years, the BrandZ™ GlobalTop 100 brands rose steadily in being seenas Different, Meaningful and Salient, thecomponents of Brand Power, one of theBrandZ™ metrics of brand equity. Recently,however, the Different and Meaningful scoresleveled while Salience continued to rise.

Along with Difference, purpose wasimportant. Across categories, brandsthat enjoyed strong value increase oftenshowed that they improved the life of theconsumer in some way. In some cases,brands articulated a higher purpose thatinvolved improving not only the life ofthe consumer but also the wellbeing ofthe world.

In fast food, Chipotle advanced its promiseof healthier ingredients by removing itemswith genetically modified food from itsmenu. Chipotle rose 44 percent in BrandValue. Personal care brands continuedto emphasize healthier ingredients. Dovecontinued its campaign to redefine beautymore inclusively.

Brand Value growthshifts to Asia

The greatest brand value growth camefrom Asia, specifically China. Ten yearsago only one Chinese brand ranked in theBrandZ™ Global Top 100 – China Mobile,a state-owned telecoms provider. Today

14 Chinese brands rank in the Top 100.Most of them, not surprisingly, are state-owned enterprises in financial services, oiland gas and telecommunications.

However, four of the brands a re market-driven companies without state ownership,and they’re in technology – Tencent,Alibaba, Baidu and Huawei. Tencent andBaidu grew in brand value 43 percentand 35 percent, respectively. Alibaba andHuawei are newcomers to the BrandZ™Top 100 Most Valuable Global Brands.

Since 2006, the value of Chinese brands inthe BrandZ™ Global Top 100 has grown1,004 percent. The shift in brand valuegrowth to Asia, the emergence of valuablepublicly-owned brands even in China, andthe dominance of technology indicate alot of about the future of brands and brand

building over the next 10 years.

KEY RESULTS

Brand Value rises 14 percent year-on-year

The total value of the BrandZ™ Top 100 MostValuable Global Brands 2015 rose 14 percent.The increase followed a 12 percent rise ayear ago, and a 7 percent rise in the BrandZ™Global Top 100 2013 ranking.

Brand Value rises 126 percentover 10 years

In the decade since WPP launched the annualBrandZ™ Top 100 Most Valuable GlobalBrands report in 2006, Brand Value of theGlobal Top 100 grew 126 percent, leveling

during the recession, but otherwise risingsteadily.

BrandZ™ stock portfoliooutperforms key indexes

The BrandZ™ Strong Brands Portfolioincreased 102.6 percent over 10 years,between April 2006 and April 2015,outperforming both the S&P 500, whichgrew 63 percent, and the 30.3 percent gainof the MSCI World Index, a weighted indexof global stocks. This result confirmed thepower of strong brands to generate superiorshareholder returns.

Apple is the world'smost valuable brand

With a 67 percent rise in Brand Value to $247

billion, Apple returned to number one inthe BrandZ™ Top 100 Most Valuable GlobalBrands ranking. Success of the iPhone 6 andthe related excitement surrounding the Applebrand drove the increase. Apple also led inthe rate of brand value growth over 10 years– 1,446 percent.

Facebook Brand Valuealmost doubles

Facebook led the Top Risers with a year-on-year brand value increase of 99 percent,based on the brand’s ability to remainrelevant through acquisitions and tomonetize its audience of over one billionpeople worldwide. Two other technologybrands, Apple with its 67 percent brand valueincrease, and Intel, up 58 percent, followedFacebook in the Top Riser ranking for 2015.Since its first appearance in the BrandZ™Global Top 100, in 2011, Facebook’s BrandValue has increased 272 percent.

Alibaba leads newcomersand retail category

Alibaba entered the BrandZ™ Top 100 MostValuable Global Brands, following its recordIPO. It immediately rose to number one inthe retail category ahead of Amazon andWalmart. Huawei, the Chinese technologybrand, also was a newcomer. Six of theseven newcomer brands are based in theAsia-Pacific region. The exception is the USwarehouse store retailer Costco.

Technology and retail lead categorygrowth with 24 percent rise

Technology and retail each increased 24percent in Brand Value, leading all categories.Many brands contributed to the technologybrand value rise. The retail result reflects

the inclusion of one brand, China’s Alibaba.Without Alibaba, retail grew only 2 percent.

Fast food leads 10-yearcategory growth

Fast food led the categories in brandvalue growth over the past decade, withan increase of 252 percent. Four othercategories outperformed the BrandZ™Top 100's 126 percent brand value growthover the past 10 years: beer, 183 percent;technology, 175 percent; apparel, 139percent; and telecom providers, 136 percent.

Value shifts to technology

The technology and telecom providerscategories comprised 44 percent of thetotal Brand Value of the BrandZ™ Top 100Most Valuable Global Brands 2015 ranking,compared with just 36 percent 10 yearsago. The proportion of value generated byconsumer brands in the BrandZ™ G lobal Top100 declined to 22 percent from 34 percent10 years ago.

Brand value growthpace shifts to Asia

Twenty-one Asian brands comprised 17

percent of the total Brand Value of theBrandZ™ Top 100 Most Valuable GlobalBrands 2015. Despite this growth pace, NorthAmerica continued to dominate the ranking.Half the brands of in the Global Top 100 arebased in North America and they constitutetwo-thirds of its value.

China outpaces other BRICs

Fourteen of the 15 BRIC market brands inthe BrandZ™ Top 100 Most Valuable GlobalBrands 2015 were Chinese, up from just oneChinese brand 10 years ago. The B rand Valueof Chinese Brands in the BrandZ™ Global Top100 increased 1,004 percent over that time.Because of the economic slowdown in Braziland Russia, India was the only other BRICmarket represented in the BrandZ™ GlobalTop 100 this year. New to the Global Top 100,the regional bank HDFC ranked number 74.

Luxury declines 6 percent

The slower Chinese economy and the impactof government restrictions on official giftgiving impacted the luxury category, whichdeclined 6 percent in Brand Value. Globalbanks, the only other category that lost value,declined 2 percent.

Top line year-on-year

and 10-year changes


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Highlights // CROSS CATEGORY TRENDSSection 01

HIGHLIGHTS

15

CROSS CATEGORY TRENDS

Disruption

Changing societal trendstouch every category

Competitive, societal and geopolitical forcescaused disruption across every category.Oil and gas brands cut capital investment toweather a perfect storm of plummeting oilprices and sanctions that prevented partneringwith Russian companies to explore the Arctic.Consumer health concerns impacted sales inthe soft drinks and fast food categories.

Millennials were less inclined than theirparents to own a car or drink a beer. They bankonline and once they become interested ininsurance, they’re likely to make that purchasethrough an online aggregator. Google, alreadyan aggregator in insurance, entered thetelecom providers category with a Google-branded service. Alibaba's Alipay banking,Tencent, Baidu and Apple Pay are only someof the examples of how non-traditional playersare nibbling at the perimeter of the bankingcategory, as banks, not known for innovation,are becoming even more risk averse becauseof compliance concerns.

Differentiation

More important,harder to achieve

With more choice available and a rise inconsumer desire for personalization, itwas more important than ever for a brandto be seen as different. But it wasn’t easy.In fact, the scores for being Different andMeaningful declined during the past year forthe BrandZ™ Top 100 Most Valuable GlobalBrands. Different and Meaningful, along with

Salience, are components of Brand Power,one of the BrandZ™ measurements of brandequity. Salience continued to rise. But notbeing seen as sufficiently Different weakens abrand’s competitive strength and potential forcommanding a premium.

In some categories, as brand leaders havedone an excellent job building global scaleand creating products and services of reliablequality, functionality has flattened as a point ofdifference. Carmakers produced the highestperforming and safest models ever, but theincreased global production, which gainedeconomies of scale, also limited local styleand communication distinctions. The beercategory faced a similar dilemma.

Brand Experience

Increasingly important wayto communicate difference

Brand experience rose in importance asfunctionality achieved fairly uniform qualitylevels and flattened as a differentiator. Safetyand driving comfort technology no longerdefined luxury in the car category becauseit was installed in cars at all price points.Instead, brand experience defined luxury incars. Luxury brands reduced their practice ofcreating logo trinkets to provide a low priceaccess point to the brand. Instead, luxurybrands protected their exclusivity by limiting

entry-level price points and using brandexperience to introduce the brand to a wideraudience. The brands webcast catwalk shows,for example.

At the other end of the category spectrum,telecom providers promoted brand experienceas their antidote to commoditization.The bundling of entertainment contentaccelerated. For retailers seeking to repurposea legacy of physical locations, stores becamethe showroom for tactile interaction with thebrand. As Internet access to car informationeducated consumers and changed howpeople shop for cars, some car dealershipsturned locations into places to experience thebrand, sometimes combining the physical andvirtual, as in city locations developed by Audi.

Privacy

Balance is more delicateas brands delve deeper

Conditioned to exchange some personalinformation for a perceived value, consumershave accepted this quid pro quo transaction inwhich personal data is used as currency. But it’schanging. Telecom providers are positioned tobecome indispensable providers of data anddevices to the connected home. Insurancebrands installed telemetric gadgets in cars tocollect the data needed to design insurancepremiums based on actual driving habits.

And all brands collected and analyzed datato personalize offerings. As home and carconnectivity intrudes deeper into personal lives,the transaction – what I give for what I get – isless discrete and obvious. Brands will needto carefully negotiate the tension betweenproviding the personalization that datacollection allows and transgressing beyond theindividual consumer’s privacy boundary.

Health and Ingredients

Consumer concerns drivenew product introductions

Brands responded to rising consumer concernabout what they put on their bodies (personalcare) and in their bodies (soft drinks and fastfood). Consumption of diet cola declinedas consumers rejected artificial sweeteners.

Coke and Pepsi bet that the combinationof cane sugar and the stevia leaf wouldproduce a more natural solution with the rightblend of sweetness to appeal to consumersseeking cola flavor but a mid-calorie impact.McDonald’s announced US plans to phase outmenu items made from chickens treated withantibiotics. It also offered the option of milkfrom cows not treated with growth hormones.Personal care consumers looked for scientificreassurance that ingredients were safe, naturaland effective. To build trust, haircare brandsused more scientific language to describeproducts.

Craft

Relatively small volumebut a powerful indicator

Craft, as in craft beer, appeared across many(sometimes unlikely) categories, including softdrinks (craft colas), banking (small operationswith friendly names), telecom providers(Cricket in the US), insurance (Oscar’s HealthCare in the US) and personal care (Harry’s orDollar Shave Club). Craft impacted luxury,which by definition is about craft, with thepopularity of small brands that protectexclusivity with limited reach rather thanproclaiming it with a logo.

Craft brands may not always drive a lot ofvolume, at least not yet. But like the canaryin the coalmine they’re an early warning thatsomething is in the air. It’s the consumerreaction to a world of mass producedmerchandise, a desire for products that feelmore authentic made by hand rather than bymachine. It’s classic disruption – small playersdoing little things.

Collaboration

Competing to win sometimesrequires collaborative effort

Brands at all levels entered into mutuallybeneficial relationships to extend theirbusinesses and influence, and potentiallyincrease revenue and profit with less capitalinvestment. In a collaborative venture between

Apple and IBM, Apple gained easy accessto enterprise business and IBM enjoyed theopportunity to create its business applicationsfor Apple devices. Microsoft, under newleadership, assumed a more collaborativeapproach.

Higher Meaningor Purpose

Brands relate to consumerson a deeper sustainable level

Brands associated with a 'higher purpose'beyond functional product benefits. Manydeveloped initiatives connecting the brandwith relevant social initiatives. Driving factorsincluded: changing customer values, oftenconnected to a generational shift; the powerof social media to help or hurt reputation;and the need to engage and differentiatein categories crowded with competitors.An enticing social mission also facilitatedbrand entrance and expansion in developingmarkets.

Some of the more explicit connectionsto meaning happened in fast food, whereChipotle and Panera specifically positionedtheir brands as healthier than the competitionand aligned with consumer concernsabout healthy eating and environmentalsustainability. In retail, CVS promoted itscore brand mission as a healthcare retailerand services provider. Personal care brandL’Oréal Paris introduced its “Sharing Beautywith All” project, promoting sustainableproduction and consumption. Estée Lauderadded a corporate responsibility function.Dove extended its inclusive vision of beauty toits men’s care products, as part of Unilever’scorporate mandate to connect brands tohigher meaning.

Disruptions and opportunities

shape brands in a pivotal year


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17 16 BrandZ™ Top 100 Most Valuable Global Brands 2015

Highlights // CROSS CATEGORY TRENDSSection 01

HIGHLIGHTS

TAKE AWAYS

Innovate and delightRegardless of category, consumershave little problem finding products andservices that work well and are goodenough. Good enough doesn’t stand outfrom the competition, however. It certainlydoesn’t command a premium or keepcustomers returning for more. It’s notenough to ask, does this product or serviceperform well? The key questions are: How

does it make the customer feel? Does thecustomer feel just OK? What would it taketo make the customer feel delighted?

10 action points for building

and sustaining valuable brands

Keep changingOnce the brand is sufficiently differentand purposeful and being implementedthroughout the organization andcommunicated externally in a coherent,consistent, and effective fashion – it’s timeto change. Branding is a process with noend. It moves as fast as consumers change

– in the best cases even faster. Successfulbrand builders are always unsatisfied.They’re always chasing the future.

Get noticedAs important as it is to do everything right, it’salso important to get the word out. A strongand genuine brand proposition with a big idea,well executed and creatively communicated,enjoys a multiplier effect that helps drivevalue. Be clear about what the brand means.Then suffuse that meaning through all parts

of the organization, from the C-suite throughHR and the every other function. Traditionalmarketing – promotion, sales and distribution– will remain important, but part of a largermix of activities, which increasingly will involvedigital and social media.

Think holisticallyOrganizational siloes impede speed andchange. They make branding more difficult.Abandon the traditional branding siloes infavor of an integrated approach. The flowfrom research and data gathering, throughanalytics and insights, to creative executionand shopper marketing works best when

the communication experts communicateand collaborate easily with each other. Thiskind of “horizontality” works.

Rely on consumer insightsAs big data gets even bigger, it’s important toremember that connecting the dots alwaysreveals the same picture: a human beingwith basic needs for survival, protection,relationships and meaning. Intelligentconsumer insight is the foundation of successfor any brand, big or small. Consumers don’t

want to be treated like a unit in a demographiccategory. It’s about human beings, notalgorithms. The combination of big data andanalytics can lead to consumer insights and amore personalized brand interaction with thecustomer. It’s important to know exactly howmuch personalization is acceptable, however,especially as home automation and theInternet of Things potentially reveal so muchmore about how people live.

Renew and improve thebrand experienceMake the brand experience seamless fromthe brand promise to product performance,and delivery to customer service. The brandexperience needs to be compelling andconsistent in both the physical and online

worlds. It needs to fulfill the customer’sdesire to dream, explore and find productsand services – in a convenient, time-efficient way. Brand experience is one of theimportant ways brands can be different fromthe competition and delight customers.

Build and maintain trustTrusted brands are more likely to enjoyhigher Brand Power. In other words, atrusted brand is more likely to come tomind when the consumer is purchasing inthe relevant category. Trust accrues overtime. But trust is fragile. Brand actions todayare transparent. Be honest. Be worthy of thecustomer’s trust. Address problems openlywhen they happen. Demonstrate that the

brand understands any customer concerns.

Walk the talkMake the purpose clear both inside theorganization and externally. Align theorganization behind the purpose. Everymember of the organization is a potentialbrand ambassador. Manifest the purposein everything the brand does. The positiveimpact that occurs to a company’s bottom lineand Brand Value when its people believe inand align around a purpose can be significant.

Stand for a purposeEvery valuable brand needs a purpose.Not every brand needs to make the worlda better place, although aspiring to thatideal is intrinsically a good thing for brandsto do and it can be commercially smart.But every brand needs a purpose beyondsimply making money. At its most basic, thatpurpose is to have a positive impact on thelives of customers. In a world where a brand’s

appeal – both functional and even emotional– often doesn’t make it unique, purposebecomes an important differentiator.

Be meaningfully differentMany people have a lot of stuff, and muchof it has a sense of sameness. This isn’tnecessarily a criticism. A lot of the samenessis at a high level, a function of an overall risein product quality because of consumerdemand and fierce competition. In thesecircumstances, when people need a clearreason to choose one product or serviceover the next, being different becomes more

important. Difference defined broadly can beabout product functionality but also aboutbrand experience and communication.


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Section 02

10YEAR RESULTS

19

10-Year ResultsFINDINGS AND IMPLICATIONS



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10-Year Performance Analysis // VALUE GROWTH

VALUE GROWTH

The Brand Value of the BrandZ™Top 100 Most Valuable GlobalBrands rose robustly over the pastdecade, increasing 126 percentfrom $1.4 trillion in 2006 to $3.3trillion in 2015.

Year-to-year growth varied depending onmarket conditions, with fluctuations mostexaggerated during the recession and theimmediate recovery period. Brand Valueincreased every year without exception,although it grew by less than 1 percent in2008 and 2011.

Despite the recession and other disruptiveforces, the overall Brand Power of theBrandZ™ Global Top 100 also increasedduring the past 10 years. The Top 100 scored170 in Brand Power in 2015 compared with142 in 2006 (An average brand scores 100).

Brand Power is the BrandZ™ metric ofbrand equity, a brand's ability to predisposea consumer to select the brand and paya premium for it. The three componentsof Brand Power are: Different (unique andtrend-setting in a positive way), Meaningful(fulfills consumer needs in relevant ways)and Salient (comes to mind spontaneously).

All three components contributed to theBrand Power rise of the BrandZ™ GlobalTop 100 over the past decade. However,over the past year Salience continued toincrease, while the scores for Different andMeaningful leveled.

The overall increase in Salience reflectsthe evolving makeup of the BrandZ™Global Top 100, with newcomers scoringhigher than dropout brands. The declineof meaningful difference suggests anopportunity for brands to reverse the trend,connect with consumers and accelerate thegrowth of sustainable Brand Value.

Brand Value grows robustly

despite global financial crisis

Section 02

10YEAR RESULTS

The Brand Value of the BrandZ™ Top 100 Most Valuable Global Brands rose robustlyover the past decade, increasing 126 percent from $1.4 trillion to $3.3 trillion. Year-to-year Brand Value growth fluctuated, especially during the recession and the immediaterecovery period.

The overall Brand Power of the BrandZ™ Global Top 100 increased. The Top 100 scored 170 in brand power in 2015 compared with142 in 2006. An average brand scores 100. There is a good correlation between in creased Brand Power and Increased Brand Value.

Brand Value rises robustly over the past 10 years ...

... Brand Power drives Brand Value ...

... Brands rely more on Salience to drive Brand Power

BrandZ™ Global Top 100 Brand Value change

2006

$1.4 trillion

$3.3 trillion

2007 2008 2009 2010 2011 2012 2013 2014 2015

+126%

Source: BrandZ™ / Millward Brown

+10.6% +21.2% +0.8% +4.4% +17.1% +0.4% +7.0% +12.0% +14.0%

BrandZ™ Global Top 100 Brand Value and Brand Power changeStrong brands begin with a meaningful difference and make that difference salient to the consumer.

Source: BrandZ™ / Mill ward BrownAverage brand = 100

100

2006

142

226

100

170

2007 2008 2009 2010 2011 2012 2013 2014 2015

Top 100 Brand Power

Top 100 Value Index

All three components of Brand Power – Different, Meaningful and Salient – contributed to th e Brand Power rise of theBrandZ™ Global Top 100 over the past decade. Salience continues to increase, while Different and Meaningful level.

Source: BrandZ™ / Mill ward Brown

BrandZ™ Global Top 100 brand power components

Salient: Comes to mind spontaneously as key brand choice

Different: Unique and trendsetting

Meaningful: Fulfills a consumer need in relevant ways

100

2006

110110

123

109

118115

2007 2008 2009 2010 2011 2012 2013 2014 2015

Salient

Different

Meaningful


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10-Year Performance Analysis // RANKING CHANGES & TOP 10 RISERS

voice and data conduits alone to offeringcontent, in an attempt to serve customers ina meaningfully different way.

China Mobile slipped from the Top 10. Whilethe telecom provider remains a powerfulbrand, it’s no longer China’s most valuablebrand. That designation belongs to Tencent,the Internet portal. The market-driven brandsurpassed state-owned China Mobile lastyear in Brand Value.

Two iconic brands that ranked in both the2006 and 2010 Top 10 – Coca-Cola andMcDonald’s – Illustrate how a powerfulbrand can sustain a business throughdifficult transitions. Both brands adjustedtheir products and communications to more

effectively address consumer concern abouthealth and calorie intake.

The disappearance of Walmart and Citi fromthe BrandZ™ Global Top 10 exemplifiedthe impact of disruptive forces. The largestretailer in the world in sales, with over11,000 stores worldwide, Walmart nowranks third in the retail category, aftere-commerce leaders Amazon and Alibaba,which operate no physical stores.

Like other global banks, the financial crisisand an erosion of consumer trust hurt Citi.Although its business has rebounded as ithas reorganized, the global banks categoryoverall has not recovered in Brand Value topre-recession levels.

TOP 10 RANKING CHANGES TOP 10 RISERS

Between 2006, the year WPPlaunched the BrandZ™ Top 100Most Valuable Global Brandsranking, and 2015, the Brand Valueof the Top 10 almost tripled, to$1.1 trillion, one-third of the totalvalue of the Global Top 100. Butfive of the Top 10 dropped out an dwere replaced. No brand occupiesthe same rank today as it did 10years ago.

This reality reflects both the essential powerand stability of high-value brands and theextraordinary pressures that brands faced

during the past 10 years, including the globalfinancial crisis that bisected the decade,the changing consumption attitudes thatemerged from the crisis, and the disruptionthat technology triggered across categories.

Most astonishingly, 10 years ago, Apple, theworld’s most valuable brand, did not evenrank in the BrandZ™ Global Top 10. Apple’srise demonstrates the strength of the brand,which increased 1,446 percent in BrandValue since 2006. Apple’s performance alsomirrors the overall influence of technology.

Four of the BrandZ™ Global Top 5 mostvaluable brands in 2015 are in technology.Six of the Top 10 are technology or telecomprovider brands. The addition of moretechnology brands to the Top 10 reducedthe diversity of categories represented,eliminating banks, cars and retail. Nowcomprised of only North American brands,

the Top 10 also became less geographicallydiverse.

IBM’s rise in the Top 10, from number eightto number four, shows that a heritagebrand over a century old, can reinventitself. Similarly, the younger Microsoftbrand refreshed both its products and itsprocesses to compete in today’s more openand collaborative business culture.

The two telecom providers in the Top 10,AT&T and Verizon, demonstrate the impactof Brand Power on Brand Value. These bigand salient brands stretched from being

Five of the 10 Top Riser brandscome from technology or telecomproviders categories. These arehigh value and high saliencebrands. Their presence isn’tsurprising. However, the presenceof five other categories – retail, fastfood, beer, apparel and luxury –indicates that brand value growth iswidely distributed. Brands within allthese categories excelled in brandgrowth for different reasons.

Domino's Pizza won on brand strength andcommunication. It responded boldly to

consumer criticisms about product taste byimproving its recipe and communicatinghonestly about the change. Apple’s BrandValue reflects its commitment to beingdifferent in the products it makes and thebrand experience it provides. The constantinnovation and disruption that characterizedAmazon’s last decade drove value growth.

For many of the brands that increased mostin Brand Value over the past 10 years, therise was steady, but not without bumps. In2010, when consumers adjusted their post-recession spending, the apparel categorydeclined 4 percent in Brand Value, and Zaraincreased, but only 4 percent.

In 2012, although Facebook’s Brand Valueincreased 74 percent on the strength of itsIPO, the technology category increased only2 percent, as fierce competition and effortsto adjust businesses from locally baseddevices to the cloud impacted many brands.Google declined that year by 3 percent inBrand Value, SAP by 1 percent.

The importance of the brand value increasesfor these 10-Year Top 10 Risers is not simplythat the brand value increased, but that itincreased in a sustainable way, rising overtime despite the year-to-year ups and downs.

Top 10 brand flux reflects

impact of a dynamic market

Sustainable brand strength

drives value rise over time

BrandZ™ Global Top 10: 2006 and 2015

Ra nk 2006Brand Value

2006 $M 2015Brand Value

2015 $M

1 Microsoft 62,039 Apple 246,992

2 GE 55,834 Google 173,652

3 Coca-Cola 41,406 Microsoft 115,500

4 China Mobile 39,168 IBM 93,987

5 Marlboro 38,510 Visa 91,962

6 Walmart 37,567 AT&T 89,492

7 Google 37,445 Verizon 86,009

8 IBM 36,084 Coca-Cola 83,841

9 Citi 31,028 McDonald's 81,162

10 Toyota 30,201 Marlboro 80,352

Source: Millward Brown (including data from BrandZ, Kantar Retail and Bloomberg)

Section 02

10YEAR RESULTS

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

Market dynamics impact Top 10

10-Year Top 10 Risers

Rank Brand Category

Brand value% change

2015 vs 2006

1 Apple Technology 1,446%

2 AT&T Telecom Providers 1, 240%

3 Amazon Retail 941%

4 Domino's Pizza Fast Food 900%

5 Skol Beer 702%

6 Verizon Telecom Providers 477%

7 Google Technology 364%

8 Zara Apparel 331%

9 SAP Technology 299%

10 Hermès Luxury 292%

Source: Bra ndZ™ / Millward BrownDoes not include fast-rising brands, such as Facebook, that entered the ranking since 2006


13/95


10-Year Performance Analysis // CATEGORY CHANGES

Personal care brands also responded toconsumer concern about the safety ofproduct ingredients, as well as more inclusiveideals of beauty and the rapid growth ofthe male grooming sector. The fluctuationsof China’s economy, which helped drivecategory brand value growth, also influencedits recent slowdown.

Changing millennial tastes shaped beerbrands, which introduced craft beerversions and new flavor options. In t heluxury category, consumer reluctance tospend ostentatiously during the recessionevolved into more conscious consumption,with greater interest in craftsmanship andprovenance than logos.

Fast-fashion brands drove brand valuegrowth in the apparel category, althoughthe athletic clothing and affordable luxuryapparel brands also prospered. Brands inthe middle, lacking a compelling valueproposition, felt squeezed.

Some business-to-business technologybrands worked to reinvent themselves forcloud-based enterprise solutions. Meanwhile,the business-to-consumer leadersbroadened their influence on people’slives. Competition not only included Apple,Google and Facebook, but also the Chinesecontenders, Tencent, Alibaba and Baidu.

BrandZ™ includes Alibaba in the retailcategory because of its e-commercedominance. E-commerce led atransformation of retail so radical that todaythe two most valuable retail brands – Alibabaand Amazon – operate no physical stores.

The Internet and disintermediation impactedthe insurance category. Brands analyzed bigdata to personalize their offerings, even asaggregators commoditized the business incertain markets, like the UK. Chinese brandsgrew rapidly based on the size of the marketand the needs of the growing middle classfor insurance and wealth-managementproducts.

Telecom providers also focused on buildingbrands and expanding from simply beingconduits of voice and data to becomingcontent-provider brands. The heavyinvestment to create these ecosystems andbuild networks drove industry consolidation.

The global financial crisis especially impactedthe cars and banks categories. While businessratcheted back up, cars and global banksremain the only two categories that have notrecovered in Brand Value to pre-recessionlevels. (For further details about 10-Yeartrends and performance, please see Part 5:The Categories.)

CATEGORY CHANGES

Seven categories at least doubled in value:fast food, technology, beer, apparel,telecom providers, soft drinks and retail.But disruption touched many categories.And every category felt both th e immediateimpact of the global financial crisis and thehangover of cautious consumer spending.

The biggest shift of Global Top 100 BrandValue went to technology, which along withtelecom providers accounted for 44 percentof the total in 2015, compared to 35 percent10 years ago. The consumer categoriescollectively declined in their proportion ofoverall value.

Although consumer concern about healthyingredients and calorie consumptionincreased significantly during the pastdecade, the two categories most impactedby this trend, fast food and soft drinks,increased in Brand Value 252 percent and118 percent, respectively.

That’s because the Brand Power of thecategory leaders, McDonald’s and Coca-Cola, enabled the brands to sustain th eirvalue even as they strove to adjust theirbusinesses for rapidly evolving consumerexpectations.

In addition, value rose rapidly for newer,healthier, innovative brands, like Panera andChipotle, which was not yet in the fast foodcategory ranking when the BrandZ™ Global

Top 100 launched in 2006. Respondingto health concerns, Chipotle removedgenetically modified food from its menu.

Despite disruptions, most

categories rise in valueLed by fast food and technology, all but two of the 13 product categoriesin the BrandZ™ Top 100 Most Valuable Global Brands report improved inBrand Value – often significantly – over the past 10 years.

Section 02

10YEAR RESULTS

The biggest shift of G lobal Top 100 Brand Value went to technology,which along with telecom providers accounted for 44 percent of thetotal in 2015, compared to 35 percent 10 years ago. The consumercategories collectively declined in their proportion of overall value.

Global Top 100 Brand Value shiftsto technology

10-year value change (2006 to 2015),

% Top 100 value

Financial Institutions

Food & DrinkCommodities

Consumer & Retail

Technology

2015

2006

44%22%

34% 35%

16%

19%

7%

7%

8%

9%


10-Year Category Changes

R an k C ateg or y

Brand value% change

2015 vs 2006

1 Fast Food 252%

2 Beer 183%

3 Technology 175%

4 Apparel 139%

5 Telecom Providers 136%

6 Soft Drinks 118%

7 Retail 101%

8 Personal Care 83%

9 Luxury 70%

10 Insurance 42% *

11 Oil and Gas 13% *

12 Cars -3%

Source: Bra ndZ™ / Millward BrownBased on the Top 10 in each category

* Value change in Insurance since 2008, Oil and Gas since 2010,Global and Regional Banks weren't presented in 2006, so haven't beenincluded here.


14/95


10-Year Performance Analysis // BRAND STABILITY

27

BRAND STABILITY

The brand composition of the BrandZ™Top 100 Most Valuable Global Brands hasremained substantially consistent since theranking launched in 2006. This result reflectsthe remarkable stability of high-value brands.

Over the past decade, 42 brands entered or dropped outof the ranking, an average of only four or five brands peryear. China and other fast-growing markets drove mostof that change.

The consistency of the BrandZ™ Global Top 100 brandsis evident in the 13 product categories covered in thereport. With one exception, at least half of the brandsthat comprised the original Top 10 in each category arepresent today. In four categories – beer, cars, fast foodand personal care – seven of the original Top 10 remain.

The most stable categories are those where capitalinvestment creates the highest barriers to entry. In bothoil and gas, and telecom providers, eight of the Top 10brands have not changed.

More brands changed in categories that experiencedextreme disruption, like retail, where only five of theoriginal 2006 Top 10 brands remain. E-commerceprovided easier access to the category, which attractedyounger, more innovative brands. Only four of theoriginal brands remain in insurance because of marketdisruption and the addition of high-value Chineseinsurance brands in 2011.

As competition heats up across categories in the nextten years, reaching and remaining in the Global Top 100will become even more difficult. Growing sustainableBrand Value will more than ever require cultivatingmeaningful difference and then communicatingeffectively to make the difference Salient in the mindof the consumer.

Brands and categories

stable over 10 years

10-Year Brand Churn

Category

Brandspresentin 2015

and 2006

Apparel 6

Beer 7

Cars 7

Fast Food 7

Insurance 4

Luxury 6

Oil and Gas 8

Personal Care 7

Retail 5

Soft Drinks 6

Technology 5

Telecom Providers 8

Source: BrandZ™ / Millward BrownInsurance since 2008, Oil and Gas since 2010,Telecom Providers in 2010, before this it was only theMobile category

Section 02

10YEAR RESULTS

SHANGHAI, CHINA

"Tiny Planet" Series

by Paul Reiffer

Value of allChinese brands

in Top 100

$432 BILLION

WPP peoplein Greater China (includingassociates)

16,000


15/95


10-Year Trends // DIFFERENCE & BRANDS

1. DIFFERENCE MAKES THE DIFFERENCE 2. BRAND BECOMES MORE IMPORTANT

Brand Power proved crucialduring the past 10 years. Thedecade divided roughly into twohalves, before and after the globalfinancial crisis. No category wasspared as consumers spent morecautiously and consciously.

High Brand Power helped brands surviveand even flourish during this turmoil.Brand Power is the BrandZ™ measure ofone aspect of brand equity, a consumer’spredisposition to purchase a particularbrand. In 2006, the BrandZ™ Global Top100 brands achieved an average BrandPower score of 142. By 2015 that score hadincreased to 170 (A score of 100 is average).

Newcomer brands in part drove theincrease in Global Top 100 Brand Powerscores. Brands entering the Global Top 100since 2006 score 176 in Brand Power, onaverage. The average score of brands thatdropped from the ranking since 2006 is 135.

In fact, 135 is a high score, but not highenough to remain in the increasinglycompetitive BrandZ™ Global Top 100ranking with valuable newcomer brandsthat effectively build Salience andMeaningful Difference, the key componentsof Brand Power.

Brand Difference

drives Brand Value

Strongest brands survive

during challenging times

Section 02

10YEAR RESULTS

In a world of so much productsameness, being different makesa difference. Brands consumersview as "Different" generallyachieve higher Brand Value.

Over the past 10 years, the brands valuedboth in 2006 and 2015, which rankedin the top half of the BrandZ™ Top 100Most Valuable Global Brands, achieved anaverage Difference score of 139 and grew124 percent in Brand Value. In contrast,brands in the bottom half of the rankingscored 96 in Difference and increased only24 percent in Brand Value (An averageDifference score is 100).

How brands achieve difference varies.The top-scoring brands on Differenceare also seen as creative, in control andtrustworthy. But it’s not enough to bedifferent just for the sake of being different.Difference needs to correspond to thebrand proposition. Brands need to bedifferent with a purpose that’s inspiring andrelevant to consumers.

The fast food, retail and technologycategories are highest in Difference overall.Global banks and soft drinks are lowest– although individual brands buck thetrend, such as Chase Bank and Red Bull.The possibility of being seen as different isopen to any brand in all categories.

Brands consumers view as "Different" generally achieve a higher Brand Value thanbrands not viewed as different.

Difference influences Brand Value

BRAND IMPLICATIONS

Difference is vitally important. It impacts how much money a brand

makes and the sustainability of the brand’s value and profit growth.A category leader - like Coca-Cola or BMW - needs to guard leadershipand keep refreshing the brand message to be always unique. Aninnovator like Apple needs to constantly lead the innovation curve. Inthe digital era, all brands need to increase meaningful difference toengage consumers and increase Brand Power.

BRAND IMPLICATIONS

Brand Power helps sustain and grow Brand Value andprofitability. Given the amount of market disruption, brandshould become more important, even in categories, suchas banks or oil and gas, where financial performance, ratherthan brand historically has driven Brand Value. In the digitalera, brands need to be more meaningfully different toengage with consumers and achieve higher Brand Power.

BRAND VALUEBRANDS 1 TO 50

BRAND VALUEBRANDS 51 TO 100

Based on the BrandZ™ Top 100 Most Valuable Global Brands 2006 and 2015

Average Difference Score

139

Average Difference Score

9610-Year Value Change 10-Year Value Change

+124% +24%Source: BrandZ™ / Millward Brown

The BrandZ™ Global 100 Brand Power score rose as new brands entered the rankingwith higher Brand Power scores than the brands that dropped out.

Brand Power becomes more important

Brand Power score change2006 vs 2015

Average Brand Power scores

142

170 176 164

135

Top 100 2006 NEW 2015 Survivors Dropped OutTop 100 2015



16/95


10-Year Trends // PURPOSE & PROPOSITION

3. PURPOSE BUILDS EQUITY 4. BRANDING PRECEDES ADVERTISING

Clear purpose fast tracks

brand equity

Perfect the proposition,

then communicate it

Section 02

10YEAR RESULTS

Having a clear brand purposeaccelerates the growth of brandequity, the factor that predisposes aconsumer to purchase a particularbrand, or to pay more for it, or both.

Purpose essentially means having a reasonfor being beyond making money. At its basiclevel, brand purpose is about improving thelife of the consumer in some way – makingit easier, richer or more interesting, forexample.

At its most fully formed and ideal level,brand purpose not only improves the lifeof the consumer but also contributes to

making the world better. Achieving this ideallevel is not only a good thing to do, but isalso smart for brand building.

Strong brands depend on difference.Difference is harder to achieve today, whencompetitors provide comparable brandfunctionality and even emotional appeal.Brand purpose, especially a higher purpose,becomes a differentiator.

Because consumers will continueto expect more from brands, having

a purpose is not really optional.But brand purpose cannot beinvented. It must be genuine tothe brand, inspire the employees,be relevant to the consumer andclearly communicated. Done right,brand purpose helps sustain brandsthrough the inevitable marketfluctuations.

BRAND

IMPLICATIONS

Two things are critical forbuilding and sustaining valuablebrands: a clear, resonantbrand idea or proposition,and compelling advertising.In combination, the twocomponents drive Brand Valueexponentially.

The brands that consumers say have astrong brand proposition and excellentadvertising grew 168 percent in BrandValue over the past 10 years. But strongbrand proposition comes first. Brandswith a strong brand proposition but

lacked excellent advertising grew just 76percent over 10 years.

And the other way around, brandswith strong advertising but not muchof a brand-proposition story to tellappreciated only 27 percent in BrandValue. Brands that consumers saidperformed poorly both in brandproposition and advertising grew only 21percent in 10 years.

A clear and well-communicated brandproposition drives brand value. Deficiencycan be costly, since each percentagepoint of brand value increase – ordecrease – represents billions of dollars.

Focusing first on creating a meaningful and compelling brand proposition, and then aBig Idea for Communication and advertising it, is the most efficient and effective wayto build Brand Value and receive the greatest effectiveness and return on marketinginvestment. How to ensure a brand’s proposition remains to be Meaningful to theconsumers and how to execute the proposition throughout the organization todeliver consistent brand experience are the key challenges for many brands.

BRAND IMPLICATIONS

The brands that consumers say have a strong brand proposition and excellentadvertising grew 168 percent in Brand Value over the past 10 years.

Brand strength drives value


10-Year Brand Value Change 2006 to 2015 Brand Proposition

A d v e r t i s i n g

S t r e n

g t h

+

27%

+21%

Having a clear brand purpose accelerates the growth of brand equity, the factor thatpredisposes a consumer to purchase a particular brand, or to pay more for it, or both.

Brand purpose builds brand equity


86 brands in 10 groups Brand Purpose

LOW HIGH

HIGH

B r a n d

E q u i t y

LOW HIGH

HIGH

+76%

+

168%


17/95

33

10-Year Trends // MARKETING INVESTMENT

MARKETING INVESTMENT

Branding leadsadvertisingas driver of

Brand ValueHolistic multi-agency approachmost efficient and effective

Jim PriorCEOThe Partners and [email protected]

Section 02

10YEAR RESULTS

There are two big questions that brand owners and marketersshould be asking about their businesses. The first question,

“What is the value of my brand?” is very accurately answered bythe BrandZ™ data, as it has been for some years now. But theanswer to the second question, “How do I grow the value of mybrand?” has been more difficult to discern in precise terms. Untilnow.

Now, WPP brand consultancies The Partners and Lambie-Nairn have collaborated with Millward Brown and BrandZ™ onthe world’s first financially quantified analysis of how brand-building activities drive growth in Brand Value. Taking 10 yearsof BrandZ™ valuation data and uniquely combining this withMillward Brown consumer opinions of these brands, the findingsprove that investing in brand positioning and identity producesmarkedly greater returns in Brand Value when compared to,or used in conjunction with, strong advertising. This data willenable brand owners to prioritize, plan and manage their brand-building efforts more effectively, drive superior value into theirbrands and significantly enhance their marketing ROI.

The headline findings of this new study are:

• Superior Brand Value and greatest brand value growth occurwhen brands deliver the full combination of a unique andcompelling core proposition, a distinctive brand identity,and great advertising. Brands that scored highly on all thesecriteria over the last 10 years experienced brand valuegrowth on average of 168 percent.

• Brands that have a strong proposition and identity butthat are not considered by consumers to produce greatadvertising, still perform well in brand value growth terms.Their average brand value growth over 10 years was 76percent.

• However, where consumers perceive a brand to have greatadvertising but to have a weaker proposition and identity,brand value growth is evident only at a greatly reduced rateof 27 percent.

• Brands considered lacking in all the criteria – strongproposition, identity and great advertising grew in value over

time, but only by 21 percent.

Strong brand proposition

key to brand value growthThe most remarkable finding from this study is the extent of theBrand Value growth that comes from establishing a strong coreproposition and identity at the heart of a brand. The data clearlydemonstrates that great advertising is, by itself, insufficientand inefficient. It needs to be underpinned by broader, deeperstrategic and creative definitions. While brand consultancieshave long argued this point in principle, the data now clearlyshows the substantial added financial value this brings: 168percent growth in value where branding is strong, versus 27percent growth where it is not, even where advertising is strong.And substantially greater growth in value, 76 percent, occurswhere branding is strong and advertising is not, rather than inthe opposite case, when advertising is strong but branding isnot, 27 percent.

There is certainly no argument against great advertising here.It is abundantly clear from the data that great advertisingcontributes substantial value to brands. However, the data

shows that advertising drives Brand Value, especially so when itis deployed in conjunction with a strong brand proposition andidentity.

With brand values running into billions of dollars, thesepercentage differences equate to highly significant financialamounts and leave no doubt that high caliber brand consultancyis essential for building brand value and strength. Given thatthe financial investment required to define a strong propositionand identity is, generally speaking, considerably less than theinvestment required to drive a strong presence in advertisingmedia, any brand owners n ot currently investing in brandproposition or identity should be encouraged to make an urgentredistribution of budgets to address this. The case for a holistic,multi-agency approach to brand building – horizontality, as wename it in WPP – is made very clear here.

For 40 years Lambie-Nairn hascreated dynamic brands thatreshape categories and grow andevolve over time. Our approach goesbeyond the creation of brands andinto their on-going management,allowing us to offer a progressive,powerful and relevant approach tobuilding and maintaining brands.

www.lambie-nairn.com

With studios in London, New Yorkand Singapore, The Partners deliversbrand strategy, innovation andcreative ideas for clients includingDeloitte, Coca-Cola, Samsung, Fordand eBay. Over its 30-year history,The Partners has remained oneof the world’s most consistently-awarded brand consultancies.

www.the-partners.com

32


18/95


10-Year Trends // INNOVATION & LOVE

5. INNOVATION DRIVES BRAND VALUE 6. LOVE ISN’T ALL YOU NEED,BUT IT’S POWERFUL

Trend-setting brands

viewed as Different

Section 02

10YEAR RESULTS

Consumers see innovative brands– brands that set trends – asDifferent and as leaders. Theseperceptions pay significantdividends in brand value growth.Over the past 10 years, brands thatscored highest in the BrandZ™trend-setting metric increased anaverage of 161 percent in BrandValue. Brands that scored lowestincreased only 13 percent.

When consumers score a brand high intrend-setting, they typically view it ascreative, different, desirable, adventurous or

assertive. The trend-setters include manytechnology brands, but not exclusively. Nike,UPS and PayPal score high in the BrandZ™Trendsetter Index, for example.

Trend-setting brands share in common thedetermination to understand the needs ofconsumers, the ability to identify the gapswhere needs are going unmet, and thewillingness to take the creative leaps andrisks required to close those gaps with newproducts and services.

Brands need to set trends to win. They need to become leaders through innovation.Especially as categories become more competitive, being a trendsetter meansbeing seen as different, which is increasingly difficult but critical for brand valuegrowth. The difference needs to be noticeable, relevant to the customer, genuinefor the brand and matched with a big creative idea. Brands need to be forward-looking and can deliver innovative product and experiences beyond consumers’

expectation at more acceptable prices. Even without breakthrough products,brands still need to make sure their communications look and feel innovative.

BRAND IMPLICATIONS

Over the past 10 years, brands that scored highest in the BrandZ™ trend-setting metricincreased an average of 161 percent in Brand Value.

Trend-setting brands win in value


Loved brands growvalue at faster pace

Brands can’t survive on lovealone. But love has a multipliereffect. Brands that are loved byconsumers increase more rapidlyin Brand Value – and the impact issubstantial. Over the past 10 years,the rise in value for brands scoringhigh in the BrandZ™ "Love" metricwas 10 times greater than the valuerise for brands scoring low in Love.

Love measures the emotional affinity of

a brand. It’s not simply about making thebrand warm and friendly, although that’sfine, if it’s genuine. Rather, love usuallyfollows great performance. Brands fromacross categories score high in love, from apayment system like Visa to fast-food giantKFC to Baidu, the Chinese search engine.

Sometimes brands do all the right things butare not highly loved. Then love is an area toboost, because love is a key component ofmaking a brand meaningful. Loved brandsexist in partnership with their customersand try to understand the world from thecustomer’s point of view.

Over the past 10 years, the rise in value for brands scoring high in the BrandZ™ Lovemetric was 10 times greater than the value rise for brands scoring low in Love.

Loved brands are highly valued

Love alone is not enough. But whenlove is part of the full packageof efficacy and purpose, andcommunication is humane in tone,love can strengthen brand loyaltyand drive brand value growth.Sustaining love depends to a largedegree on continuous and genuinecommunication.

BRAND

IMPLICATIONS

Top Third Trend-SettingSet Trends Index - 166

Middle Third Trend-SettingSet Trends Index - 95

Bottom Third Trend-SettingSet Trends Index - 58

+161%

+36%

+13%

10-Year Value Change

10-Year Value Change

Three groups of brands from the 57 brands i n the BrandZ™ Global Top 100 thathave 10-year value change and the Trend-setting metric.


+227%

+39%

+22%

Three groups of brands from the 57 brands i n the BrandZ™ Global Top 100 thathave 10-year value change and the Love metric.

Top Third “Love”"Love" Index - 173

Middle Third “Love”"Love" Index - 95

Bottom Third “Love”"Love" Index - 61


19/95


10-Year Trends // INNOVATIONLOVE & TRUST

7. INNOVATION AND LOVEFORM A VIRTUOUS CIRCLE

8. TRUSTED OR BUSTED

Balance ensureslong-term success

Repaired trust adds

brand power, value

Section 02

10YEAR RESULTS

Love and innovation go togetherlike a horse and carriage. Theyseparately drive brand valuegrowth. But together they form avirtuous circle that balances brandswith qualities that help ensurelong-term survival and success.

Brands seen as innovative are more likely tobe loved. Love provides the space brandsneed to innovate while still functioningeffectively day to day in the unremittingpressure of the marketplace.

Consumers often become infatuated withthe newest, shiniest product. That’s finefor brands looking for a fling. But it's notenough to sustain brand value growth overthe potentially long lifetime of a great brand.

Even the most trend-setting brandsexperience swings between periods ofintensive innovation and periods of iterativeprogress. Love provides the forgivenessnecessary when a brand’s cycle of creativedevelopment is out of sync with consumerexpectations.

From the consumer view, somebrands are more innovative andothers more lovable. For the brandit doesn’t have to be an either-orsituation. Even the strongest brandsgain greater stability and long-term

resilience from a healthy balance ofinnovation and love.

BRAND

IMPLICATIONS

There is a strong and productive correlation between being innovativeas a brand and being loved.

Love and innovation are a winning combination

Consumers may try a brand onceor twice but they won’t stay withit if they don’t trust it. A brand'sgood behavior over time buildstrust. Once the trust reservoir isfilled, consumers are more likelyto recommend a brand, assumingthat its current behavior matchesits promise.

Brands can lose trust. And, most important,brands can restore trust. The possibilityof restoring trust became important asbrands recovered from the global financialcrisis. Not only is it possible to restore

trust, but greater trust also correlates withgreater Brand Value, Brand Power anddifferentiation.

A comparison between the 10 BrandZ™Global Top 100 brands that improved mostin trust over the past decade and 10 brandsthat declined most in trust revealed that thetrust improvers significantly outperformedthe trust decliners in the growth of BrandValue, Brand Power and Brand Difference.

The 10 trust improvers came from manycategories and include brands such as Appleand Domino’s Pizza. Not surprisingly, globalbanks dominate the trust decliner group.

Changes in trust correlate with changes in Brand Value, Brand Power andBrand Difference.

Trust impacts Brand Value and Brand Power

BRAND IMPLICATIONS

It’s possible to repair trust. And repaired trust makes a bigdifference to Brand Value, Brand Power and Difference.Conversely, when trust erodes – and is not repaired – bothBrand Value and Brand Power are negatively impacted.

Top 10Trust Movers

Top 10Most Valuable

Top 10 TrustDecliners

Brand Trust Change +13 -2 -17

Brand Value Change +571% +179% +118%

Brand Power Change +58 +61 -28Brand Difference Change +25 +21 -1


Based on 165 brands in the BrandZ™ rankings Brand I Love

LOW HIGH

HIGH

S e t s T r e n d s



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10-Year Trends // MULTINATIONALREGIONAL & FAST GROWING

9. A WORLD OF DIFFERENCE 10. VALUE RISES IN ASIA

Multinationals Different,

and regionals, Salient

Brand Value in China

up 10-fold in 10 years

Section 02

10YEAR RESULTS

The brands that comprise theBrandZ™ Top 100 Most ValuableGlobal Brands are by definitionthe most international brandsin the world. Not surprisingly,about two-thirds of the brandsare multinational in the broadestsense, with businesses that extendacross the globe. The businessesof the remaining one-third crossborders too, but primarily withinthe surrounding region.

Both kinds of brands achieve high value. Butthe average Brand Value of multinational

brands is about 25 percent higher than thatof regional brands. Multinational brandsare older and involved in wider activities.Most interesting, multinational and regionalbrands achieve their Brand Power incontrasting ways.

Multinational brands excel in being seenas Different. That’s because wherever amultinational brand competes, it usuallyfaces a regional brand leader setting thecategory standard. The regional brandstrade on Salience because they’re present,widely distributed and heavily advertised.They’re Meaningful because of their localaffinity.

Consumers also view the regional brandsas more responsible, probably becausethe brands are more connected with theregions that they serve. Consumers view

multinational brands as responsible too, butnot to the same extent.

BRAND IMPLICATIONS

It’s critical for the multinational brands to emphasize their difference andto make that difference relevant in each regional market in which theycompete. To be more accepted in each regional market, multinationalbrands need to act responsibly and guard against the perception that bigis automatically bad. Regional brands with aspirations to be multinational

need to understand the basis of their meaningful difference, how exportableit is, and how it enables the brand to fit in or disrupt new markets.

Both multinational and regional brands achieve high value. But the average Brand Valueof multinational brands is about 25 percent higher than regional Brand Value.

Strengths of multinationaland regional brands differ

Multinational Regional

Average Brand Value US $35.3 bil. US $27.8 bil.

Meaningful 111 121Different 120 112Salient 117 133Responsible 105 112

Source: BrandZ™ / Mill ward Brown

North America, home to theBrandZ™ Top 10 Most ValuableGlobal Brands, still comprises two-thirds of the total Brand Value ofthe BrandZ™ Top 100. That BrandValue increased over 137 percentduring the past 10 years, a slightlyfaster growth rate than the Top 100overall.

The Brand Value of brands based in the UKand Continental Europe also grew, but moremodestly over the last 10 years. The valueof brands from Australia and from Asianmarkets, including Japan and South Korea,

also steadily appreciated.

During the same period, however, thenumber of Chinese brands represented inthe BrandZ™ Global Top 100 increased from just one in 2006 to 14 in 2015, a nd the totalBrand Power of Chinese brands increased1,004 percent.

In just a decade, China developed fromrepresenting only minimal Brand Value inthe BrandZ™ Top 100 Most Valuable Globalbrands to being the second center of BrandValue growth after North America.

The number of Chinese brands represented in the BrandZ™ Global Top 100 increased from justone in 2006 to 14 in 2015, and the total Brand Power of Chinese brands increased 1,004 percent.

Brand value growth velocity shifts to China

BRAND IMPLICATIONS

The competitive landscape is about to change. Chinese brands have so far built valuein their home market. But the examples of the technology brand Huawei, and Alibaba,the e-commerce leader, suggest that Chinese brands are following the same arc asJapanese and South Korean brands, moving from low-cost manufacturing to addedvalue, and from regional to multinational. Most Chinese brands will expand first toother fast-growing markets, and these brands move quickly. Many brands from fast-growing markets have already become the key competitors against western brands atthe local level. Some of them are turning into key global competitors.


North America

UK

Continental Europe

China

Other Asia/Australia

$912.7bn $303.0bn

$68.7bn

$39.2bn

$120.6bn

2006

$2,164.2bn

$373.8bn

$ 112.3b n $ 186.9b n

2015

$432.4bn

+137% +23%

+1,004%

+ 6 4 %

+ 5 5 %


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41

Thought Leadership // MEANINGFUL DIFFERENCE


MEANINGFUL DIFFERENCE

Beingmeaningfullydifferent can

command apremiumBut many salient brandsmiss this major opportunity

The Top 100 brands are all big and salient, but in many categories

they struggle to be seen as meaningfully different. This works to theirdetriment because brands that are perceived as meaningfully differentpossess some important properties:

• They grow faster in response to marketing support;• They are more resilient to competitive action; and• They can command a price premium over close alternatives.

These are all very desirable qualities, so why do so many of the Top100 struggle to be perceived as meaningfully different? Part of thechallenge is that brands only become truly meaningful throughpersonal experience. In the documentaryObjectified, Bill Moggridge,co-founder of the design firm IDEO, suggests that our appreciation ofwell-designe d objects develops over time: they wear in not out. Thesame is true of brands.

Potential buyers may understand how a brand could make their livesbetter but ultimately it will be their own experience that confirmswhether the brand truly does meet their needs. A potential buyermay find a brand more appealing than others but only the passage oftime will deepen that affection. However, this process can be shapedand guided by marketing communication that focuses attention on

positive aspects of the brand experience.

The power of differenceBeing meaningful is a powerful brand asset, but the power of thatasset is strengthened if your brand is perceived to be differentfrom the alternatives. Why? Because difference serves these threeimportant roles:

1. Difference helps people make a choice between close alternatives;2. Difference justifies paying a price premium; and3. Difference makes people feel more satisfied with their choice.

When it comes to choosing between alternatives a difference mightbe trivial in nature; in the absence of more knowledge an attractivedesign may be enough to clinch the deal. However, when it comesto justifying a price premium, all the evidence suggests that betterdifferentiated brands can command higher prices. And particularlywhen people do pay a premium, an easily available rationale justifyingthe choice helps stave off buyer’s remorse.

One of the biggest marketing myths of the modern day is thatdifferentiation is hard to sustain. In part, this is because marketerstend to think in terms of product differentiation, not perceiveddifferentiation. Marketers are intimately familiar with how theirproduct stacks up against its competition; consumers are not.

Consumers’ assessment of product differentiation is partial and just assusceptible to influence as is their brand experience. Besides, there ishuge scope for differentiating brands in terms of ideals, values, toneof voice, personality and design. Perceived differentiation is aboutcreating the feeling of difference and, once established, it will be verydifficult for competitors to displace the idea from consumers’ minds.

Start with whatdifferentiates your brandThe starting point for creating meaningful difference lies in definingwhat could make your brand be seen as different. To be a valuableasset, the differentiation created by the brand needs to be potentiallymeaningful to the target audience, sustainable and easily appreciated.Trivial line extensions or facelifts may be easily appreciated but theyare unlikely to be meaningful or sustainable.

To identify a more fundamental meaningful differentiation, manybrands take a step back and examine their purpose. What differenceis the brand going to make in people’s lives? The power of purposelies in creating something unique that your brand champions. Itis inherently differentiating. While the true motivational power ofpurpose may lie more with people working for the company thanconsumers, a strong sense of purpose helps align innovation andmarketing efforts to best effect.

Ensure you deliver on your promiseOnce you have identified something that differentiates your brand– functionally or emotionally – the next step is to ensure the branddelivers on its promise. To build meaning it is critical to deliver apositive experience, not just once but on a repeated basis. It isrepeated good experiences that build habit and affection. The flip sideis that a single bad experience can undermine years of investment in amatter of moments, unless addressed quickly and effectively.

Lastly, do not assume that marketing communication has no role increating meaning through experience. Marketing communicationhas a huge role in framing the brand experience – modeling what itis going to be like to use the brand and how that experience mightbe different. Marketing communication does not just make a brandsalient – it has a powerful influence on what aspects of a brandpeople notice and experience.

Nigel HollisExecutive Vice President and Chief Global AnalystMillward [email protected]

Millward Brown is a leading globalresearch agency specializing in advertisingeffectiveness, strategic communication,media and brand equity research.

www.millwardbrown.com

Identify what willdifferentiate the brand andthen make the difference asmeaningful and salient toas many people as possible.

Create deeper meaning withpositive and repeated brandexperience. Focus attentionon the positive aspects ofbrand experience.

ACTIONS FOR BUILDING

MEANINGFUL DIFFERENCE

Deliver on theexpectations createdby brand marketing.

Depend on marketingcommunication tobuild meaningfuldifference as well assalience.

Section 02

THOUGHT LEADERSHIP


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Section 03

THE FUTURE OF BRANDS


The Future of Brands3


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FUTURE OF BRANDS

Section 03

THE FUTURE OF BRANDS

Future brand success in each of the 13categories analyzed in this report depends toa great extent on addressing the concerns ofthese millennial consumers and those whoshare their views. (Please see related story.)

Meaningful differenceThe need for purpose is closely related tothe need for meaningful difference. Thisfundamental requirement for brand successwill become even more important as brandsexcel in functionality and consumers choosea brand more because the brand helps themexpress who they are or aspire to be.

People have always relied on brands toexpress how they see themselves or want tobe seen. The difference for the future is thatwe’ll select a brand not only for the statusit signals, but also because it mirrors andeven validates our personal values. Or we’llchoose a brand because of how it makes usfeel because of the experie

2015_brandz_top100_report.pdf

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