The aggregate value of all brands in the BRANDZ™ Top 100 increased by 10.6% in one year, from $1.44 trillion in 2006 to $1.6 trillion in 2007.
"Success stories from this year's BRANDZ™ Top 100 demonstrate that winning brands leverage major market trends effectively to create business value," said Joanna Seddon, global CEO Millward Brown Optimor. "Strong brands are capable of extending into areas of opportunity to access new revenue streams and to help businesses respond to market changes."
The most notable trends emerging from this year's BRANDZ™ Top 100 include:
1. The rise of the East – Today, consumers in emerging markets – especially the ones known as the BRIC countries (Brazil, Russia, India, China) have more disposable income than ever before. In order to succeed in the BRICS, Western brands must offer products or services that are relevant to the local consumers. Fast food brands such as KFC ($4,485m) and McDonald’s ($33,138 million) appeal to BRIC consumers looking for a Western dining experience. Apparel brands including Nike ($10,290 million), Levi’s ($1,041 million) and Zara ($6,469 million) fill the gap between local brands and imported luxury brands by providing “affordable fashion” to young consumers. Luxury brands such as Louis Vuitton ($22,686 million), Rolex ($5,387 million) are also seeing significant growth in these markets as wealthy consumers look for brands that represent their status.
2. Converging technologies – Convergence is the hot topic in technology: The ability to mix and match different services (voice, data, GPS, music, internet, email etc) and deliver them over different devices has the potential to improve the lives of consumers. In the face of increasing complexity, branding has been leveraged to simplify and contrast different offerings: from Apple's ($24,728 million) basics-but-smarter iPhone to Sony Ericsson's Walkman-branded music phones to Nokia's ($31,670 million) all-in-one mobile computers, manufacturers are crafting coherent offerings that are aligned with their brand identity. Like Apple and Nokia, strong brands are able to stretch so parent companies can increase revenue streams by investing in high growth ventures.
3. Delivering on Corporate Social Responsibility – Delivering on the promise of corporate social responsibility helped boost the value of major brands including BP ($5,931 million), Shell ($ 4,679 million) and Toyota ($ 33,427 million). BP was the first major oil company to address climate change with its 'beyond petroleum' brand positioning. BP executed on that brand positioning to become one of the top three global suppliers of solar energy. Shell followed suit. Toyota's success in marketing its hybrid model Prius contributed to its positive brand image and its continued leadership in the automotive sector.
4. Fast food brands react to health conscious consumers – Rising concerns about healthy eating disrupted the fast food industry that had enjoyed continuous growth since the 1980s. Most fast food chains, including McDonald's ($33,138 million), repositioned themselves with the introduction of healthier food alternatives. Burger King ($1,401 million) took the opposite stance through marketing campaigns that called attention to the chain's original offering: the high-calorie and masculine hamburger. The 63% increase in Burger King's brand value proves that strong brands succeed whether they follow or defy market trends.
Simon Targett, who edited the Financial Times Global Brands Supplement, said: “A lot can change in world business over 12 months, and this year’s brand rankings are testimony to that with Google taking pole position as the world’s most powerful brand.”
Commenting on this year's BRANDZ™ Top 100 ranking, Eileen Campbell, global CEO of Millward Brown, said: "It is a huge achievement to become one of the world's most powerful brands and Millward Brown congratulates all of the companies featured in this year's BRANDZ™ Top 100. These top performers demonstrate the real financial value that successful business and brand management can deliver. There are tons of actionable insights that can be derived from these rankings. They prove that a blend of good business leadership, responsible financial management and powerful marketing are an unbeatable combination that can be leveraged to create and grow corporate wealth."
The BRANDZ™ Top 100 is the only brand ranking to combine financials with solid measures of consumer sentiment derived from WPP's BRANDZ™ database, the world's largest repository of brand equity data. The BRANDZ™ study has interviewed more than one million consumers globally and covers 39,000 brands worldwide. The BRANDZ™ Top 100 is the first study to cover both business and consumer brands and to include predictive metrics of future brand performance. Market performance metrics and financial data were obtained from Datamonitor and Bloomberg respectively.
