10 Highlights from the 2009 Best Global Brands list

Ten days ago, shop I wrote  10 days to Interbrand top 100 brands & 10 reasons to care. Well Friday (three days earlier than adverstised), the results came in. And if you have time, you can read full results and commentary at two sites: 1) Interbrand and 2) Business Week.

But I’ll warn you, it’s a lot of information, and you’ll have to wade through some sections knee-deep in self-congratulatory hype. So as a public service, I’ve distilled 10 aspects of the list that jump out for me (below).

Symbol of an industry? This year, ING crashed right off the list, along with a few other financial industry stalwartsn The past year for the financial industry in one concise picture.
This year, ING crashed right off the list, along with a few other financial industry stalwarts.
(Image from the Dutch-language blog www.molblog.nl/bericht/interbrand-top100-/)

(But first, a slightly bitchy side note to Interbrand: guys, if you’re going to release these three days early, please 1) skip the giant countdown clock , and 2) actually send notices to people that signed up. Okay, my chest is clear, on to…)

10 Highlights of the 2009 Best Global Brands

1) Coke is still it: Top five brands are unchanged

2009 top 10 list

The top five brands on the list are exactly the same brands in the same order as last year, and although Microsoft and GE lost more value than most brands ever have, with the spread in value between the top four, those mega-brands don’t look likely to change anytime soon.

Nokia’s brand is losing steam however, while gaining ground behind it is Google (in a big way) and McDonald’s (growing, but more modestly).

2) Google is the big disruptor

The Google brand shouldered ahead of Toyota, Intel, and Disney, and now is very close to overtaking McDonalds. As a matter of fact, its brand value has almost doubled since 2007, when it was 20th in the rankings.

Think about that for a moment: “Google” has grown from geek-niche-buzzword to #7 brand in the world in just 10 years – growth rates we haven’t seen since, well, Microsoft pulled the same trick for the ten-odd years before that.

But now that Google is starting to look more and more like a big, aggressive company (because they are), can their brand sustain its quirky garage-band appeal? Already their “don’t be evil” internal mantra is attracting more cynicism than praise. And while Googlers are still innovating, and making a lot of feel-good noise with their open source projects, one wonders when critical mass and inertia kick in (see Microsoft?).

3) Other big winners this year

By dollar value gained, H&M, Ikea, and Amazon gained a solid amount of value this year.

But apart from the indominatable Google, Apple grew the most, adding an incredible $1.7 Billion in brand value. Apple is the darling of the branding industry of course and a favourite of mine (see my Steve Jobs tribute), with its creative energy and  focus on human-friendly products and messaging, so it’s heartening to see that doing it right by your customers still pays off during a recession.

4) Surprise! Financial institutions are the biggest losers

Have you heard about this recession thing? Well, if you have, then it should come as no surprise that the industry hardest hit in the brand value bottom line was the same industry that imploded and begged for (and received) massive government  bailouts.

American Express, Morgan Stanley, and HSBC all lost billions of dollars of brand value, while Citi and embattled Swiss giant UBS both lost half of their brand value in one year.  Several others dropped right off the list, including Merryl Lynch, AIG, and ING. Could it be a coincidence that many of these losers also have meaningless nomonyms for names (see my definition here)? Probably just a coincidence, but their names certainly didn’t help them.

5) Automobile brands: losing value

Also not surprising, every automotive or motorized equipment manufacturer on the list except Ferrari lost a significant amount of brand value this year.  Harley Davidson and Lexus lost the largest percentages.

But despite losses, a few brands managed to hold their own or gain ground. Apart from Ferrari, Audi managed to gain, while Ford kept its ranking – the only one of the “Big Three” American manufacturers to have a substantial corporate brand seems to have benefited from its perceived stability as well. Another star: Hyundai:

Hyundai boosted ad spending and aggressively promoted its Assurance program, which allows buyers who lose their jobs to return cars. Hyundai’s brand value slipped 5%, but it moved up three places to No. 69.  – Business Week.

6) Food and clothing: the basics still sell when times are bad

You can download the whole Interbrand report here.
You can download the whole Interbrand report here.
Comfort food standards Campbells soup and Burger King appeared for the first time, while all the other Big Food brands gained in the rankings – Nestlé, Heinz, Pepsi, Kellogg’s, and Danone. Restaurants KFC and Pizza Hut creeped ahead a few positions, while Starbucks lost 16% of its brand value and fell five spots.

The same pattern held true for clothing brands – although it must be said that the list is incredibly top-heavy with luxury brands – so Gucci, not GAP; Rolex over Timex. I suspect that this is because of a) the weighting given to “brand premium”, that is, the amount consumers are willing to spend over and above competitors, and b) the fact that lower-priced clothing brands for us mere mortals tend to be less global.

7) Adobe: New kids on the branding block

Abode finally made the list after it “recorded record revenue and double-digit growth for the sixth consecutive year. They weren’t immune to the downturn (they lost money overall), but importantly from a brand perspective, they grew strongly in the consumer preference category. And their brand awareness continues to grow through the ubiquity of their consumer-facing products Flash, and the Acrobat / PDF line.

8 ) Brand USA – still the biggest brand builder

We were watching to see if the recession would dent the US dominance in global brands. With 52 brands on the 2o08 global 100, the Yanks are the uncontested branding champs, but those of us who were hoping for a moment of guilty schadenfreude were mostly disappointed that the US claims 51 – still a majority – of the 100.

Note to the rest of the planet: keep working.

9) No new countries

The names of countries in the Global branding club stayed exactly the same this year with only 9 brands coming from outside Europe and North America (Japan 7, Korea 2). Russia, China, India, Brazil, and the rest of the world have yet to break in. But of course, it’s only a matter of time.

10) Brand Canada: maintaining numbers, but losing ground

Both of our two Canadian contender brands Thomson Reuters and Blackberry grew this year, and both made gains in the rankings with Blackberry jumping 10 spots to number 63. But they weren’t joined by any other brands, and what’s worse, we slipped a rank in number of brands-per-capita when the UK added a brand and vaulted ahead of us. On that list, we were 10th; now we’re llth.

Announcing: Ottawa Brand Strategy Boot Camp – August 27

Registration has just opened for the August edition of our successful Beg to DIFFER Brand Strategy Boot Camp – brought to you by the Ottawa Centre for Research and Innovation (OCRI) and Brandvelope Consulting.

Wide angle - brighter
Dennis fields questions at the last OCRI Beg to DIFFER Brand Strategy Bootcamp in May 2009.

generic Helvetica, information pills sans-serif; FONT-SIZE: +3″>Register here at the OCRI Web site.

This  boot camp is for all managers and executives with marketing, PR, or communication responsibility–whether in technology, government, not-for-profit, or other industries.  Basically, if you manage a brand and want to learn how to manage it for maximum connection and value (for your customers and for yourself) this boot camp is for you.

Date:

Thursday August 27, 2009

Location:

Nepean Sailing Club 3259 Carling Avenue

Two Options:

OPTION 1: Half-Day Bootcamp – morning only

  • 8:30 a.m. – 9:00 a.m. – Registration and Coffee
  • 9:00 a.m. – 12:00 p.m. – Seminar 

OPTION 2: Full-Day Bootcamp

  • Morning seminar (as above), plus:
  • 12:00 p.m. – 1:00 p.m. – Lunch
  • 1:00 p.m. – 4:30 p.m. – Hands-on Workshop

Why you should attend:

Reason 1: morning session

Dennis at front -square
Morning Session provides theory, practical case studies, & tips

This seminar provides a great overview of three important topic areas for all Brand Managers:

  • What is a brand, and why is it important? You’re being branded one way or the other; we’ll help you take control.
  • The building blocks of brands. How to analyze, develop, and leverage the different facets of corporate strategy to ensure that your brands are making the right promises, and following through.
  • Brand management. How to use the brand elements and marketing tools at your disposal to manage your image in the minds of consumers. How to be a brand stickler without being seen as a “brand cop”. How to get your colleagues to live the brand.
  • Reason 2: afternoon workshop (only for full-day participants)

    Interaction
    Afternoon workshop (available only to full-day bootcampers) is more interactive, and involves hands-on critique of your brand.

    In this smaller-group setting, you’ll get a chance to apply the theory from the morning to your brand and get help from other participants and the workshop leaders.  The workshop will allow you to do a point-by-point inspection all the aspects of your brand. But note that the afternoon is for active participants only; be ready to give and take constructive feedback.

    Reason 3: Take-aways

    All participants will receive 1) Beg to DIFFER Brand Strategy Workbook  plus, full-day participants will also get 2) a personalized assesment of your brand strengths and challenges.

    Reason 4: Beautiful setting

    Nepean Sailing club is at 3259 Carling Avenue, just West of Andrew Haydon Park – only a short drive from downtown and Kanata. This venue offers stunning scenery and a relaxed atmosphere – we took the photo below from just outside the conference room. It’s the perfect place to spend a late August day gearing your brand up for the fall. Google Map here.

    Back deck
    Boot Camp will be held at the beautiful Nepean Sailing Club - 3259 Carling Avenue on Lac Deschênes near Andrew Haydon Park

    Reason 5: don’t take our word for it

    “I thoroughly enjoyed the day and want to thank you and your colleagues for your efforts. I believe this seminar is a definite requirement in the Ottawa area and you have already put in place many of the cornerstones to build on to make this a truly awesome and interactive event for new and seasoned brand management professionals.”

    Dan Chaput
    Director, Marketing Communications
    March Networks

    Register here at the OCRI Web site.

    NOMO lie number 2: all acronyms are bad

    (Part 3 of a 4-part NOMO series about abbreviated brand names) Right, more about so this week we’ve dealt with nomonyms, order our term for any unhelpful abbreviated names, tadalafil initialisms like IBM, and whether they can be a brand at all. And later we’ll deal with the 25 worst acronyms of all time. But first: acronyms. And here’s my lie about them: all acronyms are bad.

    090701_russianigeria[1]
    The happy couple in the merger of Russia's Gazprom and Nigeria's NNPC: the awkward new name "NIGAZ" (pronounced "NIGH-gaz" - no really)

    So yeah. It was a lie: not all acronyms are bad.M

    But just as initialisms are not a good choice for the vast majority of products and companies, acronyms are very difficult to do well, and are fraught with hidden perils – as the well-meaning folks in the picture above thought when they chose their acronym – based name, or the example we commented on last month: the SciFi channel, who thought Syfy would make a spiffy (not “siffy”) name for their channel rebrand.

    What is a (real) acronym?

    But lets be clear what an acronym actually is. The word is used as a blanket term for all abbreviations – as in this Wikipedia post, which starts off making the distinction between acronym and initialism, but then ends up lumping them together. A true acronym has to meet three tests :

    • a. It must be the abbreviation of a series of words, which
    • b. creates an actual word that people can realistically use in everyday conversation, and
    • c. the new word must stick — that is it must actually be used by people as a proxy for the longer phrase.

    Meeting criteria a. is really, really easy. Anyone can take a bunch of letters and throw them together into a sequence. But if the combination is “YTJNE” it’s not an acronym, it’s an initialism.

    Which brings us to criteria b. This one seems easy, but is actually devilishly difficult in practice. And criteria c. is the hardest of all, since this involves actually convincing people to use the name you create – and preferably without rolling their eyes or laughing aloud.

    Why it’s so hard

    It’s like trying to give yourself a nickname. In my early brand-geek days (when I was 8), I tried to get my friends to call me “Tater” (don’t ask). But of course it didn’t work. Why? because it was my idea of what would be cool, not other people’s idea of what FIT me.

    Because essentially that’s what an acronym is – a nickname.  Think about how we call Coca-Cola “Coke”. We know the “official” version, but saying “Coke” feels more familar, more friendly. A good nickname is a proxy; a good acronym is a short, catchy version of a longer name that people are aware of, but if the right handle comes along, they’ll use it.

    The secret to good acronyms

    So here’s the key: a successful acronym has to be so simple, so elegant, so natural, that it feels like it was you customer’s idea all along. Essentially, it has to be a useful tool to help people notice, remember, and refer to you. Oh, wait, that’s our definition for a brand!

    • Successful acronyms like “laser”,”NASA”, “Benelux”, and “UNICEF” are easy to say, easy to remember, and natural to use. When this is the case, the acronym actually supercedes the full name in the customer’s mind. I was an adult before I learned that UNICEF was anything but a strong stand-alone brand name. Quick: what does “scuba” stand for? Most people don’t even realize that it’s an acronym for “self contained underwater breathing apparatus”. That’s how natural a good acronym should be.
    • Unsuccessful acronyms are either unwieldy (UNRWA – pronounced “un-rah”), unpleasant to say (GATT), or just too long (PUMCODOXPURSACOMLOPOLAR – Pulse Modulated Coherent Doppler-Effect X-Band Pulse-Repetition Synthetic-Array Pulse Compression Side Lobe Planar Array).
    • Really awful acronyms: At their worst, acronyms are so laughably bad they make news on their own – ususally because the combination of letters forms a word that is just too much of a stretch. But we’re reserving those for another post.

    The whole NOMO series:

    Brand Brief: NOMO in the Ottawa Citizen

    Photo from Ottawa Citizen Article - nice work photographer Pat McGrath!
    Photo from Ottawa Citizen Article - nice work photographer Pat McGrath! (Orange added by me after the fact)

    Click the photo above or here to read the piece in today’s Ottawa Citizen.

    Or join our Facebook NOMO Group.

    20% off Zoomerang online surveys- ends 7/31/09

    The whole NOMO series:

    An abbreviation is not a brand, & all acronyms are bad! (NOMO part 2)

    (Part 2 of a series about abbreviated brand names.) Yesterday, healing I ranted about the use of nomonyms (unhelpful abbreviations) in government. But of course, page as you’ll read in this and subsequent posts, the problem of bad abbreviations, acronyms, and initialisms goes far beyond government. But the two biggest problems of all are right in the headline…

    Just a few of the exciting things you can expect from SMC - a TLA extraordinaire.
    Just a few of the exciting things you can expect from SMC - a TLA extraordinaire.

    Whoops. I lied. Twice.

    Okay, a confession. In the headline, I lied a little – sort of. And what’s more, I kind of lied twice. But they’re well-meaning white lies, so if you can forgive me, I’ll explain why I lied. Today, I’ll deal with lie number one, on abbreviations. Tomorrow we’ll deal with lie number 2 and the problems with actual acronyms.

    Lie number 1 (sort of): an abbreviation is not a brand.

    What I’m talking about here are a specific kind of abbreviation: initialisms. These are names where you take the first letters of a longer name or set of names, and create a “monogram” for the company – like “IBM”.

    So I hear some readers screaming “But IBM is a brand – and a really, really valuable brand!” Yup. It sure is. Actually it’s the second most valuable brand in the world. As I said before, I lied.

    And here are a few more names that make me look like a really big fat liar: H&M, AIG, SMC, HP, HSBC, ING. All giants in the branding world. So yeah, my pants are seriously on fire. An abbreviation actually can be a brand – and it can even be a very powerful brand, maybe even second best in the world.

    So is naming your product or company with an initialism a smart idea? Absolutely not!

    That’s because, while it turns out an abbreviated name can become a brand (shame on me), an initialism is not inherently a brand, and strategically, not the right choice for 99% of products. It the names of all these things are exerting a negative drag on their “brandness” (communication value).
    Just think about the names again. Chances are you recognize most of those abbreviations. But look again.

    I lied again: SMC is a fake.

    The many faces of SMC.
    A google search showing the many potential brands of SMC.

    Or rather, SMC is a real name, but not one you’ve ever heard of unless you’re into SMC pneumatic automation products (and who isn’t really?). Or maybe you went to SMC (Santa Monica College), use the SMC (State Machine Compiler), climb with the SMC (Scottish Mountaineering Club), belong to the SMC (Small to Medium Company business councils), or are active in a SMC (Social Media Club – which is where I first heard the term and got stumped).

    Or maybe you’re a marketing executive at the Irvine California high tech hardware company called SMC Networks . If so, best of luck with that. They’ve been around since 1971, own the dot-com, and still can’t hit #1 on Google.

    Be like IBM at your peril

    The big brands I mentioned above – including IBM – are successful in spite of the limitations imposed by their current names, not because the names themselves are strong. And note that most of them became major brands under whatever name their current moniker is short for. International Business Machines is a dull, descriptive clunker, but that name was the company for most of its history, and still exists as a hidden secondary brand. That’s because a TLA can’t exist in a vacuum; when people encounter one, they do what you just did. They try to figure out what the heck T-L-A stands for (Three Letter Abbreviation – see?).

    A TLA is an empty vessel, which people will try to fill with meaning. Now you can invest decades of time, or gajillions of dollars helping them FILL that container with your preferred meanings, but just remember SMC. If that’s your strategy, you’d darn well better be ready to outspend the Scottish Mountaineering Club – and all the other SMCs. Which is another problem: you can never really own a TLA – or a FLUA (Four Letter Unintelligible Acronym), or other random assembly of letters.

    IBM does. Because they’re IBM.

    So giving your startup company a TLA “because it works for IBM” is kind of like an ambitious but poor college grad buying a $100,000 car because that’s what rich people do…

    So if I have a TLA, how can it become a brand?

    Basically, if you want to build a brand around a TLA it has to meet my three basic criteria for a brand:

    1. People (other than you and your inner circle) have to notice it and understand that the name equals the company, product, or concept you’re trying to promote;
    2. People (other than you) have to remember it (or at least have a fighting chance of doing so if they try); and
    3. People (other than you) have to use it as a tool to speak about you to others with the reasonable assumption that others will understand and be able to go back to #1).

    And with a TLA, all of these thing sbecome much harder.

    So if you are SMC, RPQ, or XYZ, and you can’t change for the moment, then you have my sympathy. Now get to work. Your customers need you.

    If you are considering becoming TLA Inc. or launching your new product TLA, and if your boss is telling you it’s a good idea, please slow down. There are lots of ways to find a much better name.

    • Tomorrow: all acronyms are bad (which is also a lie, but we’ll discuss why).
    • Friday: the worst acronyms ever. (not a lie. these are really bad).

    The whole NOMO series: