The Brands, They are A-changing

The Brands, They are A-changing

The world's top four brands are all IT-related companies according to the latest research carried out by Millward Brown's BrandZ research. Why is this? Roger Jupp sheds some light on the matter.

I suppose that the world's first brand was a simple mark on the flank of a sheep or a goat, to signify ownership, to separate identity from others. If cows could talk, they would probably have a lot to say about the pain of branding and the need for it to be clear and evident to the world at large (especially rustlers and other cow-owners!).

Time has moved on, clearly, and we are now into the hyper-globalised "brandosphere". This is well and truly confirmed by the recent results from the BrandZ^TM , the Millward Brown Optimor study of the Top 100 Most Valuable Global Brands Ranking.  (BrandZ^TM takes into account 3 key metrics - 2009 financial results, and two aspects of Millward Brown's Brand Dynamics^TM - brand contribution and brand multiple or Voltage^TM). It is unique in possessing a predictive value, as well as a retrospective analysis.

BrandZ^TM reveals what many of us might have suspected - global brands of today are dominated by technological giants. The four most valuable global brands are all in this sector -Google is in the lead, closely pursued by IBM, Apple and Microsoft. HP, Blackberry and Oracle also make it into the top 20. Google as the world's most valuable brand may surprise some people but its value has grown markedly in the past year - up a staggering 17%. This reflects the explosion of gmail around the world, the impact of those arresting Google Maps, the new personalised Google Chrome and iGoogle, as well as the introduction of Android technology.

As you can see, innovation is intrinsic to technology companies' success. Think of third-ranked Apple, with its impressive cascaded introduction of the iPod, the iPhone and the iPad. As its visionary leader Steve Jobs has claimed, "simplicity is the ultimate sophistication".(This is itself an odd echo of  novelist Leo Tolstoy's 19^th-century claim that it is much harder to write simply).

Global reach is not always required to make this elite list. Yet, here again, we can see the contemporary lie of the land. China Mobile emerges as the 8^th most valuable brand, courtesy of the billion-plus population it serves. The less well-known Baidu search engine, specialising in Chinese script, makes it to 75^th position. ICICI, an Indian  financial institution, comes in 45^th position. Carlos Slim's Telcel from Latin America is 69^th; Petrobras from Brazil is 73^rd. BRIC (Brazil, Russia, India and China) and other emerging countries now account for 13 of the top 100. Trends in population size count in their favour over the longer term..

The top-ranked non-technology global brands are Coca Cola and McDonalds,. Both have established branded "form" as the bookies say, and are well-diversified geographically from their American roots. However, both have also managed to be significant innovators in recent times - think of the success of Coke Zero and the reinvention of McDonalds menus to provide more balanced nutrition. McDonalds have recently appointed their first social-media chief, at the head of their Digital Taskforce.

Some of the other fascinating stories to surface in BrandZ^TM results relate to how to survive and fight the global recession. In last year's results, the financial horrors sharply depressed the performance of financial institutions as global valuable brands. In 2010, many of the big guns have rebounded - witness Visa at 18^th, HSBC at 23^rd and Santander at 31^st.

The fragility of brand value can be discerned too - the currently under fire Goldman Sachs was ranked 78^th but the current US Senate hearings may impact its 2011 performance. Toyota was placed 26^th  in the list but is presently engaged in a difficult bout of quality control review.

In a very different vein, it is remarkable that Louis Vuitton is counted the 29^th most valuable global brand. Facing up to the recession, it took the unusual step of increasing prices, investing in creativity and focussing on improving quality - a true premium brand's response? Walmart owes its 13^th position, on the other hand, to expanding its floor space and seeking the value proposition for its users.

So, what does all this mean for marketers in Ireland? The five-year trends from BrandZ^TM indicate that the path to brand value is complex. The most successful brands exploit technology ( much more than just the online/offline debate), have good vision, exemplify trust and recommendation  to their customers and are generally more price-resistant than other brands. While brands often benefit from heritage, this should not stay fixed in time. Innovation is essential to the future, quite simply.

We may be seeing some of these strands behind success in Ireland today. Think of the way in which "Love Irish Food" is endeavouring to re-frame our perceptions of  Irishness, to help us better understand what it means  today. Think also of the weight of need on financial institutions to prove to the public that they are worthy of trust and recommendation.  Consider how price-resistant your brand can afford to be in this marketplace - or any available other marketplace.

BrandZ^TM gives us a  unique view of the contemporary  brand - global, innovative and flexible, based on consumer trust. Bob Dylan's message may have come from other timez a-changing but it still rings true to our ears today.