BZ Global 2016 Report PDF

Brand value increases
to $3.4 trillion, despite

disruptive global forces
TOP
100: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
30
100
31
32
99
33
98
34
35
97
96
36
95
37
38
94
93
39
92
40
91
90
41
42
89
43
88
87
44
86
45
46
85
47
84
83
48
82
49
81
50
51
80
79 78 77 76 75 74 73 72 71 70 69 68 67 66 65 64 63 62 61 60 59 58 57 56 55 54 53 52
GOING
GLOBAL? BrandZ Top 100 Most
Valuable Chinese Brands 2016
We wrote the book The report profiles Chinese brands,

outlines major trends driving brand
growth and includes commentary
on the growing influence of Chinese
brands at home and abroad.
BrandZ country reports:
Essential travel guides for
global brand building NEW
Our BrandZ country reports contain unparalleled market

knowledge, insights, and thought leadership about the
worlds most exciting markets.
Youll find, in one place, the wisdom of WPP brand building

experts from all regions, plus the unique consumer insights
derived from our proprietary BrandZ database.
If youre planning to expand internationally, BrandZ

country reports are as essential as a passport.
BrandZ Top 50 Most BrandZ Top 50 BrandZ Top 50 Spotlight on Myanmar

Valuable Indian Brands 2015 Most Valuable Indonesian Most Valuable Latin
Brands 2015 American Brands 2015 The story of Myanmar is one
This ground-breaking study of huge potential, as a new
analyzes the success of Indian This study analyzes the The report profiles the most era of openness signals strong
brands across 13 categories, success of Indonesian brands, valuable brands of Argentina, growth opportunity. Now is
examines the dynamics examining the dynamics Brazil, Chile, Colombia, Mexico the time for brands to make
reshaping the Indian market shaping this fast-emerging and Peru and explores the an impression in this emergent
and offers insights for building market and offering insights socio-economic context for economy.
valuable brands. for building valuable brands. brand growth in the region.
BEIJING - CHINA
Value of all For more information about the BrandZ
Chinese brands in library of country reports, please turn to the To download any of these reports, and to view related videos,
Global Top 100 Resources section at the end of this report, or please visit www.brandz.com/Reports. To download iPhone
contact David Roth at David.Roth@wpp.com. or Android apps, please visit www.brandz.com/Mobile.
$212.2 Billion
Photograph by Paul Reiffer
06
CONTENTS

The Categories
05
CONSUMER AND RETAIL
140 Apparel
146 Cars
03
152 Luxury
158 Personal Care
Regions and 164 Retail
Countries 170 Thought Leadership:
The Future
of Brands 90 Overview
Frictionless Experience
by Dan Whitmarsh, Global Head of
Planning for Volkswagen Group, MediaCom
94 Brazil
8 Welcome 52 Overview
98 Thought Leadership:
Local Brands
David Roth, CEO, Omni-Channel
56 A crystal ball By Leticia Arslanian, General Manager
04
The Store WPP, EMEA & Asia by John Rand, Senior Vice President,
conversation
02
and Beatriz Portas, Strategic Planner,
Market Insights, Kantar Retail
01
Geometry Global
07
FOOD AND DRINK

Digital
102 China
174 Beer
by Patrick Xu, CEO China, 106 Thought Leadership:
180 Fast Food
GroupM
Business-to- China
Introduction The Global

64 Thought Leadership: Business
by Stephen Drummond, Chairman and
Chief Strategy Officer, Y&R China
186 Soft Drinks

Top 100 Digital Behavior 110 BrandZ China Resources 192 Thought Leadership: Resources
12 Overview Analytics 70 Overview Cultural Insight
15 BrandZ Stock 30 The BrandZ Global by Sarah Walker, Global 112 India by Laura Tarbox, Strategic Director,
74 Brand Building Cultural Insight, Added Value 250 BrandZ Valuation
Portfolio Top 100 Ranking Lead, Digital Behavior 116 Thought Leadership:
Analytics, and Peter Walshe, 78 Talent Methodology
16 Cross-Category Trends Global Brands Director,
India 253 BrandZ Reports, Apps and
20 Takeaways BrandZ Results by Aditya Kilpady, Senior Vice President, FINANCIAL
Millward Brown 82 Thought Leadership: iPad Magazine
34 Top 20 Risers Planning, Contract India 194 Banks Global
Talent 198 Banks Regional 256 WPP Resources
22 Thought Leadership: 38 Newcomers by Christina Jenkins, Director, 122 Russia 202 Insurance 258 WPP Company Contributors
Dadditude 39 Category Changes Global Go-To-Market
124 Thought Leadership: 272 WPP Company Brand
by Nihar Das, Global P&G 40 Brand Contribution Research
Business Leader, MediaCom and Emily Friedman, Senior Russia 208 Thought Leadership: Building Experts
42 BrandZ Analysis
Research Consultant, by Pierre-Emmanuel Mahias,
Service Experience 276 BrandZ Global Top 100 Team
LinkedIn Director of Strategy Mindshare
24 Thought Leadership: by Tim Greenhalgh, Chairman and Chief
44 Thought Leadership: GroupM
Generation Z Creative Officer, FITCH
by Victoria Sakal, Disruption 84 Thought Leadership:
by Emilie Hamer, Senior Vice Talent 126 Indonesia
Consultant, Vermeer COMMODITIES
President, Global, GTB by Emily Smith, Brand
132 Thought Leadership: 212 Oil & Gas
Director, Added Value
46 Thought Leadership: Outlook Middle East, Africa
Brand Building 86 Thought Leadership: by Richard Mullins, Director, Acceleration 218 Thought Leadership:
by Renato Duo, Planning Internet of Things Brand Behavior
Manager, J. Walter Thompson by Jarrod Ramsey, Vice 134 Thought Leadership: by James Whatley, Digital Director,
Ogilvy & Mather
President, Mobile Technology, Outlook Asia
48 Thought Leadership: Rockfish by Doreen Wang, Global Head of
Brand Experience BrandZ, Millward Brown TECHNOLOGY
by Iain Ellwood, Worldwide 220 Technology Consumer
Strategic Growth Director, 136 Thought Leadership: 224 Technology Business
Brand Union & Group XP and Transformation 230 Telecom Providers
Martin Guerrieria, Global by Mel Edwards, CEO, Wunderman EMEA
BrandZ Research Director,
Millward Brown 238 Thought Leadership:
Privacy
by Lennart Hkansson, Executive Vice
President, Cohn & Wolfe Sweden

Mobile Mentions
by Peter Walshe, Global Brands Director,
Millward Brown and Guy Rolfe,
Mobile Practice Leader, Kantar
7
6
Cultural Insight
by Nihar Das, Global P&G Business
Leader and Pinaki Dutt,
Global Head of Connected Applied
Intelligence, MediaCom
BrandZ Top 100 Most Valuable Global Brands 2016

WELCOME
Brand value rises steadily,

Brands do not need a higher purpose, brands are competing effectively for Using the BrandZ brand valuation
but they do need to be seen as doing these customers by leveraging the methodology of Millward Brown, a
more than just making money; they perception that local brands can better WPP company, we analyze relevant
need to be seen as improving the life understand and fulfill local market corporate financial data and strip away
133% over past 11 years

of the consumer in some way. This is needs. everything that doesnt pertain to the
especially relevant when appealing branded business. Then we take a
to millennials and when competing
Serving you with critical step that makes BrandZ unique
in fast-growing markets where and definitive among brand valuation
consumers expect brands to act as our expertise methodologies.
partners in their quest to achieve the
good life. All of these challenges and We conduct ongoing, in-depth
Reaches $3.4 trillion despite disruptive forces opportunities require unrivaled
global expertise in the art and
quantitative research with more
Purpose needs to be clearly expressed than 200,000 consumers annually,
in the brand experience, which science of building and sustaining across more than 50 markets, to
remains one of the most powerful valuable brands. Thats where we assess consumer attitudes about,
differentiators. On a recent trip to come in. Almost 200 brand experts and relationships with, over 100,000
The value of the BrandZ Top 100 Most Valuable Global Brands New York, I visited the new flagship from around 50 WPP companies brands. Our database includes
has increased steadily over the past 11 years, rising 133 percent store of one of the BrandZ Top 100 contributed to this report. They information from over two million
Global brands. It was disappointing. participated in over 25 focus groups consumers. It reveals the power of the
between 2006 and 2016, despite fluctuations during and
Unfortunately, the brand experience that delved into the dynamics shaping brand in the mind of the consumer
immediately after the global financial crisis. the 14 product and service categories
of the store did not match the quality that creates predisposition to buy
and excitement of the brands we cover in the report. By linking all and, most importantly, validates a
products. The store lacked buzz. The this talent, creativity, and wisdom, positive correlation with better sales
This pattern of reliable growth, and sustaining strong and valuable we amplify global trends and insights
brand lost an opportunity. performance.
modulated by global economic and brands Brand Purpose and Brand that help our clients in useful and
geopolitical forces, continued with 2016 Experience. unique ways. We call this powerful
And on the subject of opportunity... At WPP, were passionate about using
BrandZ Global Top 100, which rose 3 perspective horizontality.
We took our first in-depth look at B2B our creativity to create and build strong,
percent in brand value in a year marked Before I do that, however, it is worth
brand leaders this year, leveraging differentiated brands that deliver
by a historic plummet in oil prices and restating that brand value growth is Our unrivaled expertise includes the
our BrandZ research with market lasting shareholder value. To learn more
slower economic growth in Brazil and important for two key reasons. First, BrandZ resource library, which we
knowledge from LinkedIn. You will find about how to apply our experience and
Russia, and even China, where GDP brand value correlates with business invite you to access. Along with the
David Roth extensive details in a new B2B section expertise to benefit your brand, please
expansion slackened relative to the success; brands with high value are BrandZ Top 100 Most Valuable Global
CEO of the report. Heres the topline: B2B contact any of the WPP companies that
robust rates of a few years ago. more likely to increase sales and market Brands, the library includes these titles:
The Store WPP, EMEA & Asia brands score well above average contributed expertise to this report.
share going forward. Second, brand the BrandZ Top 100 Most Valuable
in all aspects of Brand Potential, a Turn to the resource section at the end
These factors especially impacted the value correlates with high shareholder Chinese Brands; the BrandZ Top
BrandZ metric that predicts future of this report for summaries of each
oil and gas, and the banks categories. returns. Companies that invest in 50 Most Valuable Indian Brands; the
brand success. But they have a large company and the contact details of key
Absent those categories, the BrandZ brands grow their topline faster. BrandZ Top 50 Most Valuable Latin
opportunity to reach the Brand executives. Or feel free to contact me
Global Top 100 improved around Organic topline growth is the biggest American Brands; the BrandZ Top
Potential levels of business-to- directly.
6 percent. We studied the results determinant of total shareholders 50 Most Valuable Indonesian Brands;
consumer brands.
closely to gain insight into what gives return. (Please see the BrandZ Stock and Spotlight on Myanmar The Sincerely,
brands their resilience and ability to Portfolio story in the Introduction.) Leapfrog Nation. To download these
Our research revealed another
steadily improve regardless of market and other BrandZ reports, please visit
important opportunity, actually more
conditions. Purpose and Experience of a challenge, for multinationals. www.brandz.com.
Competition from local brands
Answers are contained in this report, The backbone of all this intelligence
The importance of purpose is evident in is increasing across fast-growing
which is filled with the original research, remains the WPP proprietary BrandZ,
our BrandZ Top 20 Risers. This ranking markets because of several factors: David Roth
thought leadership commentary, the worlds largest, customer-focused
of brands that grew the most in value (1) local brands have gotten better David.Roth@wpp.com
insights and prescriptive advice from source of brand equity knowledge Twitter: davidrothlondon
includes brands as diverse as Amazon, over time; (2) as the economies slow,
WPP company experts from around the and insight. It is big data at its biggest, Blog: www.davidroth.com
Starbucks, JD.com, The Home Depot, consumers are searching harder for
globe. I will briefly expand on just two with 4.5 billion individual data points.
Dominos Pizza and Chanel. These value-for-money options; and (3) local
of the many factors critical for building
9
are very different brands that share in
common clarity of purpose.
8

Introduction
Introduction>OVERVIEW
1 Introduction
OVERVIEW
Brand value rises

and gas brands continued to shift focus
from oil to gas, expecting that over
BrandZ Global Top 100 grew 133% since 2006
time, gas and other cleaner energy
alternatives will power the worlds
3 percent in year
The BrandZ Global Top 100 grew steadily over the past 11 years to $3.4 trillion,
never losing value, even during the global recession, and leveling only once, in 2011. economies. With more acquisitions of
content services, the major telecom
providers continued to evolve from
BrandZ Global Top 100 value growth 2006 to 2016 commodity carriers of voice and data to
marked by disruption 3%
entertainment and content brands.
14%
More competition
$3 12%
Tril. 7%
0%
17%
1% 4%
21% Across many FMCG categories,
$2
Results reveal prescriptions for future brand value growth Tril. 11% multinational brands contended with
increased competition, including the rise
of craft products, as some consumers,
$1
Tril. particularly millennials, preferred brands
In a year marked by disruption, Six of the 14 categories included in Although the BrandZ Global Top
whose provenance or limited scale
the value of the 2016 BrandZ the 2016 ranking declined in value 100 increased in value more modestly
implied authenticity. More significantly,
compared with only two last year. One than in any year since 2011, when the 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Top 100 Most Valuable Global several phenomena converged to
category remained flat. Of the seven economy was climbing back from
Brands increased 3 percent, to increase competition in fast-growing
categories that increased in value, only recession, the results continue to show
country markets. Consumers had
$3.4 trillion. two grew by more than 10 percent. the steady appreciation of Top 100
Source: BrandZ / Millward Brown become more sophisticated, and local
value, up 133 percent over the past 11
products had improved in quality.
Apparel rose 14 percent after a flat years.
The economic and geopolitical factors intensifying competition from start-
performance a year ago, followed by
especially impacted the oil and gas up financial technology companies. The rise of local brands, which expanded
fast food, which increased 11 percent Combination of factors category, which declined 20 percent The startups especially attracted choice, was especially pertinent as
in value, on top of a 4 percent
in value, and the banks category, with millennials, a customer group that both growth slowed in Brazil, China and
improvement last year. A combination of economic and global banks and regional banks down bank and insurance brands attempted Russia, and consumers sought to save
geopolitical factors influenced this in brand value 11 percent and 12 percent, to cultivate for future growth. Both money. But it was also relevant in India,
With a value increase of 59 percent, years results, including the precipitous respectively. Three other categories in bank and insurance brands improved where consumers expressed a growing
Amazon led all brands in value drop in the price of crude oil and the the BrandZ Global Top 100 declined in customer service and introduced more belief that local brands could better
growth, followed by Starbucks (49 economic slowdowns in Brazil, China value, but only moderately. technological innovation. appreciate the nuances of diverse
percent) and Facebook (44 percent). and Russia. The sanctions against cultures and tastes.
Russia that resulted from its invasion of
Two newcomers to the BrandZ Ukraine also hurt the Russian economy.
Disruption across Social trends motivated car brands
These disruptive forces did not
to reconsider the identity of the cars
Global Top 100 also grew And the removal of sanctions against categories category. Although many car brands happen in a vacuum, but rather they
substantially in value: JD.com, Chinas Iran following the nuclear weapons experienced a relatively strong sales appeared in the larger context of a year
second-largest e-commerce brand While disruption afflicted some
accord impacted oil prices when Iran year, they worried about a future characterized by global geopolitical
rose 37 percent, and the business-to- categories more than others, no
began adding to the global oversupply. in which consumers would be less disruption. Populist dissatisfaction
business technology brand Adobe category was immune. Consumer dependent on cars. Precipitating drove the rise of unconventional
increased 41 percent. concern about healthy ingredients
Beyond these factors, issues related factors include greater urbanization US presidential candidates in both
to technology and social values, often continued to impact fast food, personal and a millennial-driven shift in societal major political parties. The British
North America continued to drive the care and soft drinks. But personal care
influenced by the millennial generation, priorities from ownership to sharing. public pondered whether to leave
largest proportion of brand value, and soft drinks grew slightly in value,
impacted brand value change. Among Most major car brands introduced the European Union, formed to help
about 69 percent, followed by Asia. and the strong value increases of
the issues were a heightened attention programs that anticipated a time heal the divisions of World War II and
The North America Top 10 brands Starbucks, Dominos Pizza and Burger
to data protection and privacy when car manufacturers would also be promote trade interdependence. And
increased 10 percent in value, while King drove fast food value growth.
and continued consumer concern mobility service providers. ancient religious and tribal forces in the
the Asia Top 10 declined 8 percent. about personal health, product Middle East erased the borders that
ingredients, ethical brand behavior and Persistent regulatory infractions were created with the dissolution of the
13
The prospect of category
environmental protection. hurt bank reputations. And, along transformation also affected telecom Ottoman Empire after World War I. >>
12
with insurance brands, banks faced providers and oil and gas brands. Oil

Introduction>OVERVIEW
1 Introduction
OVERVIEW Valuable brands

deliver superior
shareholder returns
Lessons for the future
The practices of brands that performed especially
well in this period of disruption yield useful lessons:
BrandZ Portfolio outperforms the S&P 500 Index and the MSCI
1 They disrupted before being disrupted.

The three fastest-rising brands Amazon, Starbucks and Facebook each
came into being as a category disruptor, and they continued to disrupt, often
with the use of technology. Amazon, for example, introduced Amazon Dash,
BrandZ Strong Brands Portfolio vs. S&P 500 vs. MSCI World Index
the first iteration of a program that reaches the consumer at the exact moment
of need, anticipating the world of automatic replenishment promised by the 105.9%
Internet of Things. BrandZ Strong Brands Portfolio
S&P 500
MSCI
2 They excelled in digital and social media.

JD.com benefitted from its strategic partnership with Tencent, Chinas giant 60.7%
Internet portal. Because JD.com is present on WeChat, Tencents ubiquitous
messaging service, users can move easily between texting, e-commerce
purchasing and payment without changing platforms.
20.1%
3 They expressed a clear and consistent brand

purpose.
It is possible to have a higher purpose about improving life for humanity, or
a narrower purpose about improving life for the consumer. But the purpose April 2007 April 2008 April 2009 April 2010 April 2011 April 2012 April 2013 April 2014 April 2015 April 2016
needs to be genuine, clearly articulated and consistently executed. Google,
which articulates its mission of helping humanity, increased 32 percent in brand Source: BrandZ / Millward Brown
value. The Home Depot, which focuses on serving the home improvement The BrandZ Strong Brands Portfolio is a subset of the BrandZ Top 100 Most Valuable Global Brands.
needs of consumers and small businesses, also improved 32 percent.
The value of the BrandZ Strong affirms that valuable brands deliver BrandZ Strong Brand Portfolio would
The key conclusions drawn from these results are: First, brands that do not Brands Portfolio increased 105.9 superior returns over time and have more than doubled in value, to
proactively build and protect value can anticipate more disruption; second, the percent between April 2007 and April regardless of market disruptions. It also $206.
counterpoint, disruption, is the precursor of extraordinary possibilities for brands. In 2016, outperforming both the S&P 500, demonstrates the positive return on
the world of the Internet of Things, for example, brands will compete to be on the which grew 60.7 percent, and the MSCI money invested to build meaningfully Key takeaways for brand owners and
consumers list of items for automatic replenishment, and brands will also compete World Index, which grew 20.1 percent. different and salient brands. brand marketers are: companies that
to be on the consumers list for more considered purchases that may command a (The MSCI World Index is a weighted invest in building valuable brands grow
premium. index of global stocks.) In concrete terms, $100 invested in their toplines faster; and organic topline
2006 would be worth $120 today based growth is the greatest determinant of
Brands that imagine the future and respond early to the questions it raises have the The exceptional performance of the on the MSCI World Index growth rate, total shareholder return.
best chance of sustained success. In that sense, the 2016 BrandZ Global Top 100 BrandZ Strong Brands Portfolio and $161 based on the S&P 500 growth
Most Valuable Brands report provides even more helpful knowledge and insight for relative to two well-regarded indexes rate. But that $100 invested in the
brand building than some of the editions produced in years with bluer skies.
15
14

Introduction>CROSS-CATEGORY TRENDS
1 Introduction
2
CROSS-CATEGORY TRENDS Most brands seek to recruit and retain youthful energetic
talent. But there is a disconnect between the values some
young people bring to the workplace and the perceptions
they have of certain categories. In general, young people
want to work in an organization devoted to making the
world a better place, or at least one that does minimal harm.
Disruptive forces
Categories with reputational baggage
are at a disadvantage. Young people
are drawn to technology brands. But
even in technology, the brands most
TALENT
challenge brands Youthful job applicants
perceived to stand for innovation and
higher purpose have the greatest
employment appeal. seek purposeful brands
and old assumptions

Brands are responding to this
challenge. Citi introduced several options to better match the
needs of young people seeking to balance career with social
action priorities. Some insurance brands are expanding into
human-resource consultancy work because human capital
Millennial attitudes felt across most categories is at the heart of so many twenty-first-century businesses.
Meanwhile, the competition for talent is occurring not just
among categories or companies, but also among countries.
1
Some of Chinas technology leaders are setting up innovation
centers in places like Silicon Valley and New York in an
attempt to recruit talented millennial technologists.
As mobile and e-commerce make transactions quicker and easier, consumers spend
less time interacting with brands, and switching among brands is not a problem.
In this context, brand experience is critical to the brand-customer relationship. In
retail, the physical space becomes an opportunity to more fully express the brand;
because consumers spend so much shopping time online, they increasingly expect a
unique experience in physical stores. And because retailers have moved more SKUs
3
online, more store space is available to showcase brands and engage customers with
retail theater. In a similar way, banks are reducing their branch networks while also
transforming locations into centers for the consultative, high-touch interaction needed
to sell more complicated products. Local brands are emerging as challengers in Brazil and
Russia as the economies slow and consumers seek less
Car dealerships persist, sometimes despite the experiences expensive options. A similar phenomenon is happening
BRAND they provide, with customer satisfaction levels higher when they
are being courted as shoppers and lower when they are being
in both China and India, where the economies continue
to grow at a relatively faster pace. Along with the
EXPERIENCE
serviced as customers. Dealerships exist for many reasons, desire for less expensive products, several other
including state franchise laws in the US, and the benefits derived factors drive this trend, which is especially evident
by manufacturers, who can achieve sales quotas by shifting in FMCG categories. First, local brands have gotten
Across categories, experience inventory to dealerships. As the car industry evolves, and mobility better in quality and marketing, in part because they
services become part of what car brands offer, the role of have learned from multinational
is a key brand differentiator dealerships in providing customer experience may change. competitors. Second, consumers
In the luxury category, even for wealthy consumers who can afford multiple items, the LOCAL BRANDS increasingly prefer local brands
for nationalistic or other reasons.
purchase motivation is not so much the badge and the ability to show off wealth, but In India, for example, consumers
rather the experience of the brand and the understanding of the care that goes into Better quality local brands feel that local brands better
the production and justifies the premium. Connecting with the brands heritage adds to challenge multinationals understand and respond to the
the satisfaction of ownership and also signals the consumers knowledge and taste. countrys rich diversity. Finally,
consumers in these fast-growing
The term frictionless experience now is popular in the marketing lexicon. In the markets also look for brands that act as partners in
developed world, where people feel they have enough stuff, they value less hassle. helping to build the nation. To many consumers, local
Sometimes consumers choose a brand not for what it adds, but rather for what it brands seem more likely to pursue this purpose.
subtracts stress. Providing frictionless experience means making even mundane
17
transactions happen smoothly and without aggravation, as when a desired item can be
found with one click online or in a physical store without the aid of map and compass.
16
Today, when most brands are of good quality, and consumers take functionality for
granted, brand experience is the remaining differentiator.

Introduction>CROSS-CATEGORY TRENDS
1 Introduction
6
Brands are not abandoning purpose, but in a subtle way some brands seem to be
CROSS-CATEGORY TRENDS shifting from higher purpose (making the world better), to narrower purpose (making
the customers life better). The change may indicate that enough time has passed since
the global financial crisis, and consumers now need less permission to spend money.
4
During the recession and the post-recession period, luxury brands became more
restrained. Now, brand logos have reappeared, along with bolder fabrics. Luxury is
Millennials influenced just about every category focused on the product as well as the more narrow purpose of providing enjoyment.
covered in the BrandZ Global Top 100 report.
Some of the less understood but impactful attitudes Coca-Cola exemplified this shift to narrower purpose when it introduced the strapline
pertain to millennial shopping habits. For example, Taste the Feeling, which emphasizes the moment of experiencing the product - the
the millennial dad is not the stereotypical errand pleasure and refreshment of drinking a Coke. The product-focused slogan replaced the
boy-man, mindlessly checking off items on his more abstract Open Happiness. Open Happiness implied that the brand had healing
partners shopping list. He is often qualities, like the original formulation of Coca-Cola, and that it could bring people
MILLENNIALS
the shopper and decision maker, together that it could teach the world to sing. The revised strapline makes a more
and therefore a person brands modest claim.
need to get to know better. With
the rise of mobile banking, the Different shopping habits Some brands still put higher purpose at the center of their reason
counterintuitive surprise about
millennials is that they sometimes
need new understanding PURPOSE for being. Facebook envisions a world where universal Internet
access helps people rise from poverty to greater equality and
opportunity. CEO Mark Zuckerberg pledged his personal fortune
prefer to bank in the physical
world first, establishing trust through a face-to-face Purpose may be grand, to help achieve this goal. Objecting to the conflation of higher
encounter, before transacting online. Millennials pay but it must be genuine purpose and commercial advantage, the Indian government blocked
Facebook from providing free Internet to people living in rural India.
for goods and services not only with cash, but with
other currencies, including their time and their data. At the same time, social purpose can be particularly important in
places like India, a country in the midst of economic and social transformation, where
5
a brands commitment to eliminating poverty is more likely to be perceived as genuine
than as a marketing add-on that gives affluent consumers permission to purchase.
Categories organize the world of products and The bifurcation of the technology category into Higher purpose seems to work best when it is a natural extension of the brands
services with neat borders and boxes, like a business-to-business and business-to-consumer functionality. In the car category, Volvo returned to its emphasis on safety, a genuine
Victorian museum. Because categories present segments is increasingly inaccurate. As sales purpose that helped drive sales. Tesla appeared for the first time in the BrandZ Cars
the world as static, they are less useful even of smartphones, tablets and laptops slow, B2C Top 10 as a brand providing high performance and low carbon impact. Meanwhile,
dangerous and vision-limiting in a modern world brands are eager to sell more of them to their without actually articulating a higher purpose, telecommunications brands in
that is dynamic, collaborative and interconnected. enterprise customers. Conversely, B2B brands less developed parts of the world, such as the Middle East and Africa, have been
Successful brands respect category borders when seek to introduce more consumer devices into instrumental in building the infrastructure that provides Internet access to inhabitants in
they make sense and ignore them when necessary. the workplace to satisfy the expectations of their the most remote regions, often with the inexpensive smartphones of Chinese or Indian
The borders of many categories are blurring. young employees. Mutual interest has produced brands. Because this technology makes remote diagnosis possible via smartphone, one
partnerships such as those between Apple social benefit of this connectivity is reduced infant mortality.
Most major car brands have introduced car- and IBM, Cisco and SAP. Amazon, the worlds
7
sharing services in anticipation of a transition largest B2C online marketplace, also leverages its
from carmaker to mobility-service provider. enormous computing power as AWS, Amazon
Societal factors driving this category shift include Web Services, primarily a B2B cloud-storage The competition from higher-quality local brands in
increased urbanization, an inclination to share company. fast-growing economies links to another trend: the
rather than own, and the desire to live in greater fracturing of the mass market in developed economies.
harmony with the environment. The FordPass The term telecom providers no longer Few modern nations are as homogenous as they were
program, for example, glimpses a future when the describes the brands that are transforming from during the rise of the mass market after World War II.
car brand becomes a transportation concierge, commodity businesses, delivering voice and data Migration enabled by the open borders of the European
organizing each segment of the customers communications, into entertainment and content Union has changed the demographics
MARKET
journey, arranging for car rentals, train tickets businesses. Similarly, oil and gas no longer best of EU member countries. Even in the
and other transportation alternatives, taking all describes a category in which many of the brand US, a nation of immigrants, the newest
the hassle out of getting from place to place leaders are increasing their focus on natural gas
FRAGMENTATION
arrivals enrich the countrys diversity
and making the brand synonymous with that and renewable energy. The pace of drilling will because they are more likely to come
frictionless experience. resume with a rise in oil prices, but oil and gas from Latin America or Asia rather than
brands are likely to emerge from this oil shock
more intent on being seen as energy brands. That
Europe, the primary place of origin in Increase in diversity
BLURRING BORDERS
the nineteenth and twentieth centuries.
change has potential branding consequences. The need to serve the various cultural drives niche brands
Until now, oil and gas brands communicated and ethnic preferences of these
primarily to the influencers who could impact consumers provides opportunities for new niche brands
Rapid market developments blur
19
important exploration contract decisions. With a as it presents challenges for established brands.
borders across categories broader energy focus, brands will be closer to the
18
consumer; consequently, strengthening consumer-

facing brands could become a higher priority.

Introduction>TAKE AWAYS
1 Introduction
TAKEAWAYS
10 ACTION POINTS 5 Refine the brand

experience
8 Simplify the value exchange

FOR BUILDING
At a time when most products are
functionally good enough if not
To simply pay cash for a product or service is
excellent, and every product is just a
now quaint. Instead, consumers are asked for
AND SUSTAINING
click away, little is left to differentiate
their data and comments as well as their money.
one product from another except the
All these forms of currency have skewed the
experience of purchasing and using it.
value equation, and consumers end up giving
Making a brand experience memorable
VALUABLE BRANDS
more without receiving additional value.
requires both adding embellishments
and removing annoyances.
1 Be purposeful
2 Be authentic 9 Change the
Every brand needs a purpose. Consumers

assume brands are in business to make
It has never been more important for a brand
to be real and to operate in a broad social
6 Talk to individuals,
not generations
transaction mindset
Develop a sense of partnership with the
customer. Help the customer think less
money, of course, but they also expect a context. The brand is there for all to see. And Millennials and the Gen Zs know that
about the transaction (What can I buy from
well-defined and clearly communicated consumers today, especially members of the brands are trying to sell them, and they
you?) and more about the relationship
brand purpose. While that purpose might millennial and Gen Z generations, are likely are less likely to be sold when brands
(What can I achieve with you?). Motivate
describe a way in which the brand changes to select brands that align with their beliefs, generalize about their entire generation.
the customer to purchase, but also enable
the world, it must certainly describe the or at least do not contradict those beliefs. Narrow the focus. Marketing briefs that
the customer to better understand and
way the brand improves the customers life. talk broadly about the millennial or Gen
appreciate the value exchange.
Z generations need to go back to the
planning department.
3 Be in the conversation
10 Widen
Consumers are making their voices heard
across categories, expressing health concerns the
7 Use data respectfully competitive set

about soft drinks, fast food, and personal care
products, and advocating for cleaner energy
options. Brands need to be engaged, and Consumers are providing marketers with Take off the blinders if they are still on.
to listen in a genuine way to both critics and information about themselves constantly. The best opportunities and potential
supporters. Brands need to help shape the And while they may be fine with brands competitors may be waiting outside
conversation in a transparent way. Change is knowing that they buy shoes twice a year, the product or service category.
inevitable. But the shape of change is not. they may be less pleased when shoe ads
follow them online for six months. From
the consumers point of view, the preferred
transaction with a brand is: You can have
4 Grow the triple bottom line

my data, but only if you use it intelligently.
Pay attention to the financial bottom line,

of course, but do not let the social and
environmental bottom lines become victims of
quarterly reporting pressures. Tell an authentic
21
and forward-looking story about where the brand
is now and where it plans to be in the long term.
20

Thought Leadership >DADDITUDE
1 Thought Leadership
DADDITUDE
DADS BECOMING
Recent research from Y&R North America reveals that this is For most packaged goods, where annual buyer churn is
no longer the case. Dads are fast becoming the key decision- around 40 to 60 percent, dads are a more attractive group
makers in household purchase baskets of a family: 80 percent to go after because they are likely to be more loyal to brands
of millennial dads are already the primary grocery buyers. than moms. Dads also tend to be more open to trying new
THE PRIMARY
Whats more, they are a far more lucrative group to go after things and are willing to pay the premiums. So if dads are
than moms. Consider this: the research shows that when better for business, how can we be more inclusive even as we
women become mothers, they become more frugal and think of who our brands audience could be?
conservative in their spending outlook, while the opposite is
GROCERY BUYER
true for when men become dads. Dads are more likely to pay And, if moms are indeed frugal, and dads more likely to
more for what they want, to look for more innovative brands, splurge, how do we redefine what we are actually saying to
and to stay more loyal to their chosen brands. them? For instance, value could mean entirely different things
to these two groups. A retail offer may be just the right trick
Is this just a North American trend? Perhaps not. We observe for moms but may put the more innovation-seeking dads off
IN MILLENNIAL
similar patterns in the UK and there is no doubt that this is fast the brand.
becoming a global phenomenon, especially among millennials
- the epicenter of this trend. Millennial dads affinity for technology is reshaping the
retail space. They are more likely to research online, rely
Culture clubs
HOUSEHOLDS
less on word of mouth and more on online reviews and
recommendations. Is our communication designed for optimal
Are all millennials across the world likely to behave the same? delivery on smartphones as the primary reach platform?
The cultural makeup of any country holds in its features Are products available on leading e-commerce as the key
some inherent clues that can help predict its propensity to distribution channel? And are we being deliberate about
change. We looked at how countries stack up along two of curating objective consumer reviews and using social media as
the Hofstede cultural dimensions Power Distance Index influencers?
Reaching them requires revising (PDI) and Individualism versus Collectivism to develop our
forecast of how this trend will find its way across the world. Dads mean business
traditional marketing assumptions
The ranking of a country in Power Distance and Individualism
indicates the resistance that will be experienced by any shift We also know that dads seek, process and act on information
to established hierarchies. Countries low in PDI, less likely to differently to make decisions. An interesting example of
accept the established hierarchy without questioning, tend to difference is when we dig deeper into an apparently similar
adapt quicker, and individualistic societies often find it easier looking trend for both moms and dads, younger and older -
Mom has always been a magic word for FMCG to replace existing belief systems with new ones. growth in mobile phones coupled with regrowth of television
marketers, that rare combination of the magical, consumption. A lot of it is reported to be simultaneous
with the appeal to move people to tears, and the Seen along these dimensions, low PDI, individualistic countries consumption of both screens. However, while our traditional
like Canada, Denmark, Sweden, UK, Ireland and New Zealand target, moms, tend to multi-task, catching a TV series
logical, with the power to make or break brands.
are more likely to see similar trends among dads that are while paying bills, millennial dads are more likely to use the
Traditionally, its mothers who have been the already evident in North America. Most of the other European second screen to deepen the experience of the first. This
primary decision-maker on where to shop and countries (Switzerland, Australia, Finland, Iceland, Netherlands, has implications on how we plan multi-platform strategy and
what to buy, which meant that they were the most Norway) are not far behind, although the change here will be also on what content we choose to support across different
more gradual and long lasting. However, for Russia, Asia and platforms.
critical audience that brands were built on. Take a
South America (including India, Indonesia, Iran, Iraq, Japan,
look at the Thank You Mom campaign, from the Malaysia, South Korea, Mexico, Brazil, Colombia), where Baby care in the US is one example, which is experiencing
worlds largest advertiser, P&G, and you will know traditional roles are held strongly, the change could be slow this trend among millennial parents. Marketers are dwelling
what I am talking about. and take a while coming. on how to include the dads in the communication, which has
been purely to moms so far. At the same time, Amazons entry
Nihar Das From swagger to swaddle into this category with its own baby diapers, only marketed to
Global P&G Business Leader Amazon Prime members, a group which is suspected to have a
MediaCom higher target density of millennial dads, is very interesting.
Nihar.Das@mediacom.com How does marketing need to shift to keep up with this
evolution of daddy stereotypes from the beer and buddy,
FMCG marketers, who have traditionally built their brands to
to the responsible, open-minded, soccer dad? It forces us to
appeal to moms, havent moved fast enough to prospect dads
rethink what we are saying, who we are saying it to and how
as a key source of business. If you are an FMCG marketer or
we are saying it.
work on those brands, its time to rethink dads. They mean
23
business.
MediaCom is the The Content + Connections Agency, working to leverage brands entire system
22
of communications across paid, owned and earned channels to step change business outcomes.

Thought Leadership >GENERATION Z
GENERATION Z
TO SUCCEED
WITH YOUNG
At over 20 percent of the population with over $40 billion in spend potential (within the US alone!),
the most diverse generation to date, Generation Z promises todays brands a world of opportunity.
Aside from having a distinctly different profile from millennials and preceding generations, Gen Z
will inevitably influence older generations buying behaviors and decisions, so brands must act now
DIGITAL NATIVES,
to identify meaningful ways for winning with these consumers. From key sources of information
and influence to decision-making behaviors and psychographic profiles, a deep understanding of
this generations wants, needs and preferences will enable brands to lay the groundwork for future
BUILD SHARE
success. Forming strong, well-founded relationships early on will position brands to capture this
massive demographic groups full potential as it matures into a more powerful consumer base.
OF HEART Despite undeniably more purchasing

power and few current financial
obligations, Gen Z is much more
cautious with spending than previous
more relevant and front-of-mind in the
future, where long-rooted bonds will
translate to preference and continued
loyalty.
must work harder to cut through
the clutter. Only the most authentic,
personally relevant and interesting
communications and interactions will
Engage but do not hard sell,

generations. Gen Z individuals have capture Gen Zs fleeting attention,
learned from the past and are more The first digital natives warrant their engagement and earn
acutely aware of future responsibilities their trust. With millennials, brands won
stress positive purpose than previous generations: Gen Z has

experienced the 2008 recession and
Born into an era of technology,
digitalization, and high-speed Internet,
through share of eyeballs; Gen Z will be
won through share of heart brands
witnessed its impact on the older must not only capture attention, but
Gen Zs are the first digital natives.
generation. Even at a young age, maintain it by seamlessly fitting into
Technological proficiency, comfort
student loans and adult obligations are consumers lives authentically enough to
with information overload and constant
recognized as a future reality. To merit a earn their preference.
multi-device activity fuels Gen Zs
purchase from these prudent spenders, always-on mentality, dictating shopping
brands must communicate their value Given its social existence, Gen Z is highly
behavior and interactions with brands,
and their unique value-add. Specifically, conscientious of a brands reflection on
and also their mindset and expectations.
brands playing in otherwise mature its identity. Any affiliation or purchasing
As lines between physical and digital
categories have a unique opportunity to decision is an extension of ones self
continue to blur, speed, ease of access,
capitalize on this financial sensibility by with constant bombardment by brands,
convenience, and constant connection
fostering close relationships with future messages and offers, personalized
and availability are table stakes, as is
consumers. A two-way relationship guidance and an authentic perspective
the convergence of online and offline
oriented around listening to consumers in the form of micro-celebrities and
purchasing into a seamless, consistent
needs and preferences will nurture a peer groups even strangers! are
omni-channel experience. While this
closer connection, creating familiarity increasingly influential. Because
creates a prime audience for everything
and trust rooted in authenticity. relationships must now be fostered
from communications, marketing,
Brands delivering compelling content, long before the point of sale to win
Victoria Sakal engagement and relationship-
personalized conversations and at the moment of truth, brands must
Consultant building to search and purchasing, the
ongoing engagement will have a more creatively engage these new influencers
Vermeer combination of Gen Zs frugality with
Victoria.Sakal@mbvermeer.com meaningful relationship and be much to advocate without selling. >>
constant bombardment means brands
25
24
Vermeer is the only global marketing consultancy focused on unleashing purpose-led growth through
the development and embedding of consumer insight-led marketing strategy, structure and capability.

Thought Leadership >GENERATION Z
GENERATION Z
Brands engaging consumers in an open,

two-way dialogue early-on, with more
while jargon and insincere intentions will
assuredly backfire. ACTION POINTS
than just a product or service offering,
are more likely to stick amid Gen Zs To win early and prolong future
TO TAKE BRANDS
constant yet sporadic conversations,
and remain in their consideration set.
success with Gen Z, brands need to
acknowledge key distinctions from
FROM TODAY TO Z
Relevant content, experiences and other millennials. This rising generation
hard-sell-free interactions will build is getting older younger meaning
affinity among consumers, but brands greater pragmatism in buying behavior
1 Customize
must also embrace the potential of word and earlier consideration of more
of mouth and creative manifestations mature product categories previously
of more personal messaging for irrelevant. As consumers embrace
Gen Z desires control, and perceives brands as a form of self-expression.
transparently communicating their offer. relationship building over direct selling,
Brands need to acknowledge and embrace these core characteristics by
careful curation of brand interactions is
incorporating elements of personalization, creativity, and co-creation into their
Sense of social essential. Gen Z redefines the meaning
offerings to ensure theyre allowing consumers to reflect their true identities.
of influential in marketing: WOM,
responsibility peers, and micro-celebrities are more
likely to relay real, authentic messages,
Related to its tech-enabled global and brands exhibiting a genuine social
2 Integrate
connectivity, Gen Z has more worldly conscience are much more resonant.
priorities and a notably greater sense of From tactical marketing plans to a
social responsibility. Cause-conscious, brands overall purpose, a broader In a world of data democratization, Gen Z consumers are receptive
Gen Z prefers products making an worldview is expected, but innovation, to sharing their information as long as its used in the right ways.
impact on the world with a higher-order convenience and security remain table Experiences are expected to be seamless, well integrated, and consistent.
mission. Consistent with their judicious stakes.
spending, Gen Zs see spending power
as a way to make a difference: they are In an age more tech-driven than ever,
more favorable to products improving
3 Be authentic
Gen Z is raising standards for brands.
lives or delivering some benefit than to Even with the proliferation of omni-
those which are solely novel, cool, or channel, interactions are expected to be
innovating for innovations sake. Needs Its less about pitching a product or out-smarting with a clever offer, and more
more human, benefits higher-order, and
are less about function, superficial about speaking to an individual to identify with their basic human needs.
offers more individually relevant. Close
emotions, or material satisfaction; Gen Z Consumers will be more receptive to marketing that is less of an interruption,
attention to this generation leveraging
transcends stereotypes, exclusivity and and more of a value-add to their knowledge, interests, and lifestyle.
the vast amounts of behavioral data it
disingenuous claims, preferring a better generates wherever possible is crucial
outcome for all. Brands aligned with for building lasting connections, out-
causes consumers are proud to identify pacing evolving needs, and ultimately
4 Add to the greater good

with genuinely and honestly doing winning with the consumer.
good will quickly earn allegiances,
Aside from ensuring offers are useful, relevant and worth Gen Z
consumers carefully-protected spending power, brands must meet Gen
Zs higher expectations of value-add. Winning brands will not only
help consumers discover, learn and grow as individuals and express their
identity, but also make a positive impact on the greater good of society.
27
26

The Global
Top 100
The Global Top 100 >TOP 100 CHART
2 The Global Top 100
Top 100 Most Top 100 Most

Valuable Global Brands 2016 Valuable Global Brands 2016
Brand Value Brand Value
Brand Value Brand Rank Brand Value Brand Rank
Brand Category % Change Brand Category % Change
2016 $Mil. Contribution Change 2016 $Mil. Contribution Change
2016 vs. 2015 2016 vs. 2015
1 Technology 229,198 4 32% 1 26 Retail 36,440 2 32% 5
2 Technology 228,460 4 -8% -1 27 Regional Banks 33,637 2 -13% -5
3 Technology 121,824 3 5% 0 28 Cars 29,501 3 2% 2
4 Telecom Providers 107,387 3 20% 2 29 Technology 29,030 4 -27% -8
5 Technology 102,551 4 44% 7 30 Luxury 28,508 4 4% 2
6 Payments 100,800 4 10% -1 31 Beer 27,925 4 5% 2
7 Retail 98,988 3 59% 7 32 Retail 27,275 2 -23% -6
8 Telecom Providers 93,220 3 8% -1 33 Cars 26,837 4 2% 1
9 Fast Food 88,654 4 9% 0 34 Payments 26,641 4 -30% -9
10 Technology 86,206 4 -8% -6 35 Apparel 25,221 3 14% 7
11 Technology 84,945 4 11% 0 36 Personal Care 23,524 4 1% 2
12 Tobacco 84,143 3 5% -2 37 Baby Care 22,911 5 -4% 0
13 Soft Drinks 80,314 5 -4% -5 38 Technology 22,813 3 13% 13
14 Regional Banks 58,540 3 -1% 2 39 Cars 22,708 4 4% 4
15 Telecom Providers 55,923 4 -7% 0 40 Telecom Providers 21,945 3 3% 6
16 Conglomerate 54,093 2 -9% 1 41 Fast Food 21,567 4 -4% -1
17 Logistics 49,816 4 -4% 1 42 Technology 21,387 2 -7% -3
18 Retail 49,298 2 -26% -5 43 Global Banks 20,276 2 -16% -8
19 Entertainment 49,229 4 15% 0 44 Luxury 19,821 5 5% 11
20 Payments 46,141 4 15% 0 45 Regional Banks 19,635 4 -18% -9
21 Fast Food 43,565 4 49% 8 46 Regional Banks 19,617 2 -11% -5
22 Technology 39,023 3 2% 2 47 Telecom Providers 19,552 2 N/A N/A
23 Telecom Providers 37,733 3 12% 4 48 Technology 19,490 4 -10% -3
24 Apparel 37,472 4 26% 4 49 Technology 19,489 1 -10% -5
31
30
25 Telecom Providers 36,750 3 -4% -2 50 Technology 18,652 3 22% 20

The Brand Value of Coca-Cola includes Lights, Diets and Zero
Source: BrandZ / Millward Brown (including data from Kantar Retail and Bloomberg) The Brand Value of Budweiser includes Bud Light
Brand contribution measures the influence of brand alone on financial value, on a scale of 1 to 5, 5 highest NTT is now valued as a telecom provider and its brand value is restated this year

The Global Top 100 >TOP 100 CHART
Top 100 Most Top 100 Most

Valuable Global Brands 2016 Valuable Global Brands 2016
Brand Value Brand Value
Brand Value Brand Rank Brand Value Brand Rank
Brand Category % Change Brand Category % Change
2016 $Mil. Contribution Change 2016 $Mil. Contribution Change
2016 vs. 2015 2016 vs. 2015
51 Technology 18,632 2 1% 5 76 Retail 13,001 2 21% NEW
52 Telecom Providers 18,575 3 3% 6 77 Regional Banks 12,883 3 -27% -18
53 Telecom Providers 18,465 3 6% 8 78 Telstra Telecom Providers 12,825 3 1% 4
54 Personal Care 18,319 4 2% 3 79 Apparel 12,665 2 -8% -4
55 Retail 18,082 3 6% 9 80 Luxury 12,592 5 -9% -4
56 Global Banks 17,055 2 -2% 4 81 Conglomerate 12,485 2 -19% -12
57 Insurance 16,910 2 6% 11 82 Fast Food 12,386 3 -2% 1
58 Oil & Gas 16,838 1 -18% -9 83 Oil & Gas 12,341 1 -18% -12
59 Insurance 16,712 2 -4% 3 84 Regional Banks 12,330 3 6% 5
60 Regional Banks 16,543 3 -20% -13 85 Technology 12,314 4 1% 0
61 Personal Care 16,400 4 -17% -9 86 Soft Drinks 12,188 4 -7% -7
62 Regional Banks 16,331 2 -19% -12 87 Retail 12,077 2 4% 3
63 Logistics 16,236 4 -17% -10 88 Retail 12,074 3 17% NEW
64 Regional Banks 16,227 3 -21% -16 89 Global Banks 11,943 2 -12% -12
65 Payments 15,910 4 35% 23 90 Soft Drinks 11,667 3 3% 4
66 Oil & Gas 14,940 1 -21% -12 91 Retail 11,509 2 -19% -18
67 Technology 14,508 2 -10% 0 92 Cars 11,479 2 1% 1
68 Retail 14,461 2 29% 29 93 Alcohol 11,465 4 NEW
69 Regional Banks 14,440 3 3% 5 94 Telecom Providers 11,343 2 2% 4
70 Regional Banks 14,098 2 -5% 2 95 Regional Banks 11,289 2 0% 0
71 Regional Banks 13,803 2 -16% -6 96 Oil & Gas 10,552 1 -18% -15
72 Oil & Gas 13,206 1 -24% -9 97 Beer 10,549 4 9% NEW
73 Logistics 13,199 4 -19% -7 98 Insurance 10,545 2 10% NEW
74 Cars 13,195 3 -1% 4 99 Retail 10,496 2 37% NEW
33
32
75 Cars 13,084 3 0% 5 100 Technology 10,440 2 41% NEW
Source: BrandZ / Millward Brown (including data from Kantar Retail and Bloomberg) The Brand Value of Pepsi includes Diets
Brand contribution measures the influence of brand alone on financial value, on a scale of 1 to 5, 5 highest The Brand Value of Red Bull includes sugar-free and Cola

The Global Top 100 >BRANDZ RESULTS
TOP 20 RISERS
Retail and fast food brands TOP 20 RISERS
lead in value growth rate

Brand Brand Brand Value
Value Value % Change
2016 2015 2016 vs.
Rank Brand Category $ Mil. $ Mil. 2015
1 Amazon Retail 98,988 62,292 59%

Category factors and brand strength drive change 2 Starbucks Fast Food 43,565 29,313 49%
3 Facebook Technology 102,551 71,121 44%
What a difference a year makes. The retail and fast food categories Although larger macroeconomic forces FMCG items at the exact moment of
4 Adobe Technology 10,440 7,399 41%
More than half of the 2016 benefitted from a counter trend helped determine the categories that need. It anticipates the transition to
released by the disruptive forces that appear in the Top 20 Risers, each brand automatic replenishment of the Internet
BrandZ Global Top 20 Risers 5 JD.com Retail 10,496 7,649 37%
slowed the overall value growth of the in the Top 20 outperformed its category of Things. Amazon also developed
come from the retail or fast BrandZ Top 100 Most Valuable Global in value growth, and usually for reasons its cloud storage business, Amazon
6 PayPal Payments 15,910 11,806 35%
food categories eight from Brands this year. The plunge in oil prices that have to do with brand strength and Web Services, demonstrating how the
retail and three from fast food. and cheaper gas at the pump put more the ways in which the brand improved border between business-to-consumer
7 Google Technology 229,198 173,652 32%
A year ago only three came money in consumer pockets, especially customer experience, often with the aid and business-to-business brands is
in the US where most of the Top 20 of the latest technology. becoming more porous.
from retail and one from fast 8 The Home Depot Retail 36,440 27,705 32%
Risers are based.
food. What happened?
Online retailers JD.com, the second-fastest-rising
9 Domino's Pizza Fast Food 4,869 3,750 30%
The technology category, which retail brand after Amazon, entered
was represented by six brands in show strength the BrandZ Global Top 100 for the
the Top 20 Risers a year ago, is still first time this year. Established as 10 Costco Retail 14,461 11,214 29%
well represented, but with only four Amazon, which leads the Top 20 Jingdong Mall in 1998, around the
brands, because business-to-consumer Risers, rose 59 percent in brand value same time Alibaba began, JD.com is 11 Nike Apparel 37,472 29,717 26%
technology brands experienced a compared with an 8 percent increase Chinas second-largest e-commerce
year of iteration more than innovation, for the retail category. The brand site after Alibaba. JD.com operates an 12 7-Eleven Retail 9,360 7,492 25%
and the business-to-business brands introduced Amazon Fresh food delivery efficient delivery system and maintains
continued to contend with the transition in three US cities and partnered with a powerful presence on WeChat, the 13 Walgreens Retail 10,364 8,484 22%
to cloud computing. the grocery chain Morrisons for home social media site of Internet portal
delivery of food in the UK. In addition, Tencent, with which JD.com has a 14 Huawei Technology 18,652 15,335 22%
Two of the Top 20 Risers are Chinese Amazon delivered more merchandise strategic partnership. On WeChat,
brands: Huawei, from the technology using its own capacity rather than its customers can text, shop and pay 15 Lowe's Retail 13,001 10,756 21%
category, and the online retailer JD.com. logistics partners, a move that enabled without switching platforms. JD.com
The retail brand 7-Eleven is based in it to better control the customer also benefitted from the government Telecom
16 AT&T 107,387 89,492 20%
experience, which in some 30 cities Providers
Japan. The French brand Chanel is the establishment of cross-border
only luxury brand that appears in the worldwide included one-hour delivery e-commerce zones for reduced tariffs 17 CVS Retail 12,074 10,280 17%
Top 20 Risers. The Top 20 Risers also for Amazon Prime customers. on foreign merchandise. >>
include two brands from payments and 18 Burger King Fast Food 3,685 3,169 16%
one brand apiece from the apparel and The brand also introduced Amazon
the telecom providers categories. Dash, a program in which customers
19 Mastercard Payments 46,141 40,188 15%
signal for replenishment of certain
20 Chanel Luxury 10,316 8,987 15%

Source: BrandZ / Millward Brown (including data from Kantar Retail and Bloomberg)
35
34

TOP 20 RISERS
Technology brands healthcare, life sciences and augmented Rite Aid, the third-largest US drug chain, Brands outperform
reality. Along with new ventures, advancing the plan of parent, Walgreens
continue to rise in value Alphabet includes a Google subsidiary Boots Alliance, to become a global
categories
that holds its core products, such as leader in wellness and pharmacy.
The other Chinese brand in the Top The payment brands PayPal and
Android, Chrome, Gmail, Maps and
20 Risers, Huawei, also demonstrates MasterCard benefitted from the
Search. Google continued development With 56,000 convenience stores
the porous border between B2C transactions driven by the leading retail
of an autonomous car. worldwide, 7-Eleven was perfectly
and B2B brands, as well as the and fast food brands. PayPal worked
positioned to benefit from several
increasing globalization of Chinese to position for the rapid shift to mobile
brands. Originally a maker of Retail and fast food global retail trends, including increased
purchasing. In its fiftieth year, while
urbanization and the growing
telecommunications equipment, Huawei add technology preference for smaller stores that are
processing transactions from over 210
shipped over 100 million smartphones countries and territories, MasterCard
more conveniently located and easier to
in 2015, many to Europe, a 44 percent Home improvement warehouse chains experienced strong revenue growth in
shop.
year-on-year sales increase. The Home Depot and Lowes benefited all regions worldwide.
from the resurgent US housing market. The fast food brands in the Top 20
Adobe, a B2B software supplier The Home Depot improved its customer Nike increased brand value 26 percent,
Starbucks, Dominos Pizza, and
to marketing and communications service levels, a key attribute of its almost double the overall 14 percent rise
Burger King each excelled through a
professionals, is a newcomer to the brand, and introduced new technologies of the apparel category, which led the
combination of category strength and
BrandZ Global Top 100. Adobe to help shoppers, including an app that BrandZ Global Top 100 in category
brand-specific initiatives. Starbucks
succeeded by betting big on cloud provided real-time inventory updates, value growth. As more people across
added mobile ordering to all of its
computing and shifting from boxed 3-D store maps, and the ability to search generations and around the world
company-owned US locations and
software to a cloud subscription model items by text, voice and photo. Similarly, added sportswear to their wardrobe,
introduced mobile in Canada and the
three years ago. The subscription Lowes partnered with Microsoft in an Nike profited from a trend it helped
UK. Dominos Pizza gained around half
business grew 55 percent in 2015. initiative that enables shoppers to view invent.
of its sales online. Burger King achieved
kitchen remodel designs in 3-D, using strong same-store growth in its first
Facebook and Google continued their the Microsoft HoloLens. Both The Home As part of its effort to transition from
year under corporate parent Restaurant
steady brand value growth, rising 44 Depot and Lowes also successfully telecom provider to entertainment
Brands International, in part by editing
percent and 32 percent, respectively. reached small businesses, a factor and-content brand, AT&T acquired
its menu to offer fewer but more
Facebook effectively increased its that also contributed to the success of DirecTV, a broadcast satellite service.
impactful items for its core fast food
mobile advertising sales. The brand also Costco, the membership warehouse. AT&T also purchased the Mexican
customers.
released its first virtual reality headset telecom providers Iusacell and Nextel to
from Oculus Rift, the startup company it Several factors drove the success of strengthen its position in the Americas.
acquired in 2014. drugstore chains Walgreens and CVS
as they continued to differentiate from Chanel made the BrandZ Top 20
By creating a holding company called each other. Following its 2014 decision Riser ranking with a value increase of
Alphabet, Google revealed its growth to eliminate cigarette sales, CVS 15 percent in a category that declined 5
plans and clarified its priorities, which continued to center its brand on health, percent, as luxury sales felt the impact
reassured stockholders. Google signaled adding urgent-care centers to many of of slower economic growth in China,
a future in new businesses, including its stores. Walgreens negotiated to buy Brazil and Russia. Chanel enjoyed great
popularity in China, partly because of its
presence on social media platforms like
Weibo and WeChat, but also because it
encouraged domestic Chinese spending
by lowering prices in China to make
them closer to prices in Europe.
37
36

NEWCOMERS CATEGORY CHANGES
Chinese and retail brands Global forces slow value

enter the Global Top 100 rise of most categories
The seven brands that entered
the BrandZ Top 100 Most
which serves 18 Asia-Pacific markets,
increased its agent sales force in China
The entrance of Adobe into the
BrandZ Global Top 100 shows that But strong brands exhibit greater resistance
and grew the value of new business in a business-to-business technology
Valuable Global Brands this
China by 45 percent. brand can exhibit the kind of rapid
year illustrate several trends, value growth usually associated with It was a challenging year for the category by global economic and political forces, eight categories
including the impact of China Lowes and CVS, two US retailers, technology business-to-consumer performance in the BrandZ Top 100 Most improved or remained flat in value and three declined.
and the strength of the retail benefitted both from the strength of brands. Adobe also confirms the Looking at the results this way, the key conclusion is that in a
Valuable Global Brands. Six of 14 categories
the US retail market and also from argument for disrupting the market difficult year, with economic and geopolitical forces affecting
category in this years ranking. declined in value compared with only two last
some clear brand strengths. Lowes before the market disrupts the brand. categories across the economy, the most valuable brands
Two of the newcomer brands year. proved to be resistant, if not immune, to those forces. (For
partnered with Facebook and Snapchat A provider of creative tools for the
are Chinese and a third to reach the next generation of DIYers. marketing industry, Adobe shifted from complete category-by-category analysis, please see The
accelerated its expansion in The home improvement brand also a boxed software model to a cloud Apparel led category growth with a 14 percent increase after Categories section of the report.)
China; and three of the brands partnered with Microsoft in an initiative subscription model three years ago. The being flat a year ago. It was followed by fast food, which rose
11 percent after rising only 4 percent in the 2015 ranking. Most
are retailers. The other two that enables shoppers to view kitchen subscription business grew 55 percent
remodel designs in 3-D using the in 2015. categories that increased last year also increased in the 2016
brands are from the technology
and beer categories.
Microsoft HoloLens. Global Top 100, but more slowly. CATEGORY CHANGES
Heineken entered the BrandZ Global Brand Value Brand Value
CVS, the US drug store chain that Top 100 in a year of beer category For example, retail and technology rose 8 percent and 6 % Change % Change
Moutai, a premium version of baijiu, percent, respectively, this year after having each increased 24 Rank Category 2016 vs. 2015 2015 vs. 2014
stopped selling cigarettes two years consolidation, as the two largest
Chinas traditional white alcohol, percent in the 2015 ranking. Telecom providers rose 9 percent
ago, continued to strengthen its brand global brewers, AB InBev and SAB 1 Apparel 14% 0%
rebounded from a sales slump that this year after a 17 percent rise a year ago. Insurance and soft
purpose as a health provider, allocating Miller, prepared to merge. Heineken
began two years ago when the Chinese drinks continued to increase in value, but more moderately. 2 Fast Food 11% 4%
more of its retail space for urgent-care continued to be the number 1 imported
government imposed restrictions on Personal care was flat.
clinics and other medical treatment beer in most of its 179 country markets, Telecom
official gift giving as part of its anti- 3 9% 17%
centers. CVS also partnered with the and it performed especially well in Providers
corruption campaign. Moutai lowered Conversely, some of the categories that last year increased
IBM Watson Health Cloud to collect and the developing markets of Africa and 4 Retail 8% 24%
prices and expanded distribution to only slightly or declined in value, declined sharply in the 2016
analyze customer medical data. Southeast Asia.
make the brand more accessible. Brand global ranking. Global and regional banks fell 11 percent and 12 5 Technology 6% 24%
strength helped sustain the brand while percent, respectively. A year ago global banks dropped by 2
the company developed and executed percent and regional banks increased by 1 percent. 6 Insurance 2% 21%
revised strategies.
THE NEWCOMERS 7 Soft Drinks 1% 8%
Brand Value The most extreme year-to-year shift, and a clue that helps
The success of JD.com, Chinas second- Rank Brand Category 2016 $ Mil. explains the category changes overall, is the oil and gas 8 Personal Care 0% 2%
largest e-commerce site, reflected the category, which experienced the sharpest decline, 20 percent,
76 Lowe's Retail 13,001 9 Cars -3% 3%
overall strength of online retailing and following a 6 percent gain a year ago. The precipitous plunge
the particular strength of the JD.com in oil prices, which drove this change, also impacted many of 10 Beer -3% 14%
brand. It successfully challenged Alibaba 88 CVS Retail 12,074
the other categories.
with more efficient distribution and 11 Luxury -5% -6%
93 Moutai Alcohol 11,465
social media effectiveness. Consumers Global economic forces, particularly the slowdown of Brazil, 12 Global Banks -11% -2%
that access JD.com through WeChat, 97 Heineken Beer 10,549 China and Russia, also impacted the brand value performance
Regional
the social networking site, can then of many categories. Luxury best illustrates the influence of 13 -12% 1%
Banks
text, shop, and pay without switching 98 AIA Insurance 10,545 these factors. The category declined 5 percent after declining
14 Oil & Gas -20% 6%
39
platforms. Insurance brand AIA, 6 percent a year ago. Cars and beer also declined slightly.
99 JD.com Retail 10,496 Without oil and gas, and banks, the categories most affected Source: BrandZ / Millward Brown (including data from Kantar Retail
38
and Bloomberg) and Brand Analytics
100 Adobe Technology 10,440


BRAND CONTRIBUTION
Brand Contribution BRAND CONTRIBUTION TOP 15

Brand Value
confers stability and

Brand Brand Value Brand Value % Change
Rank Brand Contribution Category 2016 $ Mil. 2015 $ Mil. 2016 vs. 2015
1 Aguila 5 Beer 3,270 N/A N/A
growth potential
2 Brahma 5 Beer 3,269 4,185 -22%
3 Panera 5 Fast Food 3,344 2,966 13%
4 Skol 5 Beer 6,743 8,500 -21%
5 Pampers 5 Baby Care 22,911 23,757 -4%

All but three of the brands that Brand Contribution is the BrandZ Aguila, a Colombian beer; and Brahma
metric that describes the extent to and Skol, both from Brazil. Although 6 Gucci 5 Luxury 12,592 13,800 -9%
appear in the 2016 BrandZ
which brand alone, independent of global brewers own these brands, each
Brand Contribution Top 15 also 7 Coca-Cola 5 Soft Drinks 67,749 70,042 -3%
financial or market factors, drives benefits from strong local provenance.
appeared last year. That level of purchasing volume and enables a brand SAB Miller owns Aguila and AB InBev
8 Chanel 5 Luxury 10,316 8,987 15%
consistency underscores how to command a price premium. A brand owns Brahma and Skol.
Brand Contribution stabilizes with a high Brand Contribution score 9 Herms 5 Luxury 19,821 18,938 5%
brands for sustained growth. is one that is regarded warmly and The way that Brand Contribution adds
positively by consumers; the brand brand stability and growth potential is 10 Este Lauder 5 Personal Care 4,190 3,969 6%
name brings positive associations to illustrated in soft drinks and fast foods,
mind. two categories affected by consumers 11 Baidu 4 Technology 29,030 40,041 -27%
health concerns. The high Brand
Of the 2016 Brand Contribution Top 15, Contribution scores of Coca-Cola and 12 Corona 4 Beer 6,626 8,476 -22%
five sit in the beer category and five in Panera represent a level of goodwill that
13 Louis Vuitton 4 Luxury 28,508 27,445 4%
luxury. These results are consistent with gives those brands time to adjust to
prior years, because brand plays an changing consumer expectations. 14 Burberry 4 Luxury 4,594 5,722 -20%
especially important role driving value
in these two categories. Brand Contribution is expressed on a 15 Heineken 4 Beer 10,549 9,668 9%
scale of one to five, five being highest.
Source: BrandZ / Millward Brown (including data from Bloomberg) and Brand Analytics
The three brands new to this years (For complete details, please see the *Brand Contribution measures the influence of brand alone on financial value, with the Brand Contribution Index running from 1 (lowest) up to 5 (highest)
Brand Contribution Top 15 are beers, BrandZ Valuation Methodology in the
all from Latin America. They include Resources section.)
41
40

BRANDZ ANALYSIS
Brands strong in four Brands seen as Innovative

grew value much faster ... Innovation
key BrandZ metrics

VALUE VALUE % CHANGE
2006 2016 (11 YEARS)
Innovation is a BrandZ metric that
measures the extent to which brands are
viewed as different, creative and likely to $733 Mil. $1,860 Mil. +154%
outperform Global
shake things up. Innovation is also a key
driver of brand value. Brands that scored $330 Mil. $542 Mil. +64%
high on Innovation in 2016 increased in
value 154 percent over the previous 11 years,
Top 100 growth

while brands scoring low in Innovation $164 Mil. $192 Mil. +17%
increased in value only 17 percent. High Potential
95 common brands valued in both 2006 and 2016
Medium Potential
Low Potential
Potential, Innovation, Brand Experience, Love drive value Innovation contributed to

great Brand Experience Brand Experience
2006 2016 (11 YEARS)
A great Brand Experience is defined by
Over the past 11 years, the BrandZ Top 100 Most Finally, to score high in Potential, Innovation, Brand
several components, including: standing for
Valuable Global Brands increased 133 percent Experience and Love, brands must first achieve strong brand $572 Mil. $1,520 Mil. +166%
something unique, meeting needs, making
equity. That is, they must be Meaningful (meeting functional
in value. Certain brands outperformed that rate peoples lives better, and having a better
needs and generating emotional attachment); Different (seen
of growth while others underperformed. To find as being distinct from the competition); and Salient (coming
online presence. Brands scoring high in $343 Mil. $556 Mil. +66%
out why, we looked at four BrandZ metrics: Brand Experience grew 166 percent in brand
to mind quickly when the consumer is making a purchase
value; brands with low scores decreased 0.4
Potential, Innovation, Brand Experience and Love. decision).
percent. $390 Mil. $389 Mil. -0.4%
High Potential
These metrics work together in a cumulative way to drive 95 common brands valued in both 2006 and 2016 Medium Potential
brand value. Brands that score high in Potential achieve those High Potential predicts market success Low Potential
scores in part by being Innovative. Innovative brands provide
customers with a great Brand Experience. And great Brand Brands that scored high in Potential in 2006 increased brand
Experience increases Love for the brand. value by 200 percent between 2006 and 2016, while low-
All these factors culminated
scoring brands increased brand value by just 31 percent.
Of course, no brand can survive on love alone. But love can help in greater Brand Love Love
sustain a brand during disruptive times like these. And when 2006 2016 (11 YEARS)
mistakes happen, as they inevitably do, consumers are more Ultimately, high scores on Potential, Innovation
Potential
forgiving of brands they regard with affection. and Brand Experience help create brands that
are loved, and brands that are loved increase $618 Mil. $1,748 Mil. +183%
2006 2016 (11 YEARS)
To measure the impact of each of these four metrics on the faster in value. Brands with high Love scores
growth of brand value, we selected 95 brands that are common $433 Mil. $1,298 Mil. +200% increased value by 183 percent over the past $363 Mil. $553 Mil. +52%
to both 2006 and 2016, and for each metric we divided the 11 years. Brands low in Love increased only 22
95 brands into three groups based on how they scored: Low, percent.
Medium or High. We then calculated the value change for each $423 Mil. $827 Mil. +93% $255 Mil. $310 Mil. +22%
group over the 11 years between 2006 and 2016. 95 common brands valued in both 2006 and 2016
High Potential
Medium Potential
$352 Mil. $461 Mil. +31% Low Potential
We found a strong relationship between high scores on each of
the four metrics and accelerated brand value growth. In other 95 common brands valued in both 2006 and 2016
Source: BrandZ / Millward Brown
words, a brand that scored high in Potential also grew more
43
in value. This analysis provides a roadmap for growing brand High Potential
value, which is especially important because high brand value Medium Potential
42
Low Potential
correlates with commercial success.

Thought Leadership >DISRUPTION
DISRUPTION
IN NEW NORMAL
Revolutionary designs on the future naturally aligned. The broadcasting of
are evident in ambitious initiatives like the emotional foundation of Subaru
FordPass from Ford, and Daimlers gives people a way to evaluate how well
Moovel, signaling a vision of the future the brand does, or does not, fit with
OF PERSISTENT
where mobility ecosystems and planning their own view of the world.
tools for multi-modal transportation are
as much a part of the product lineup as The Tesla brand has come to represent
new SUVs. GMs partnership with Lyft much more than beautiful cars; it also
ACTION
DISRUPTION,
signals a future vision of coexistence, means breakthrough technology and
where makers of sheet metal mate with exhilarating performance. Tesla has POINTS FOR
BUILDING
companies who are solely interested in become a symbol of a new way of living
the distribution of mobility, rather than - clean, bright, innovative and forward-
the production of vehicles that provide thinking. Teslas pioneering spirit, as
BRANDS IN
ONLY BRAND
it. Initiatives such as these telegraph a personified by founder Elon Musk,
brands ability to comprehend that the
world is changing, both to shareholders
conveys an urgency to shed the old
ways of doing things. Earlier this year,
DISRUPTED
and internal audiences. 325,000 consumers were so enamored
CATEGORIES
DIFFERENTIATES
with the vision of, and the emotion
However, for a brand to remain relevant radiating from the brand that they put
to consumers, a willingness to dabble down a $1,000 deposit on a vehicle they
1 Be clear
with partnerships or broaden the core had yet to see. In this case, vision and
product offering will not help grow emotion combined to create real capital.
the emotional power of the brand. It is
Clearly articulate and
simply the flexing of the R&D muscle. Should predictions of an autonomous,
communicate your vision
Brands must have a clear vision

It keeps the brand current, preventing car-sharing future pan out, automotive
for the future to internal
it from becoming obsolete. Necessary, manufacturers will be even more reliant
and external stakeholders.
yes, but not what makes a brand on the power of their brands after
and communicate it often meaningful and different to real people. all, driving dynamics or exterior styling
2 Be consistent
dont matter much in a world where
Building meaningfully people are neither driving, nor owning
the physical vehicle that moves them Build the brand in conjunction
For a global brand to remain strong in the face of different brands around. If, in the future, every OEM with future product/offering
offers lease-sharing programs for development to ensure a
rapid evolution, technological disruptions, and social
A meaningfully different brand, one that seniors in retirement communities, cohesive brand point of view.
change in the form of shifting values (the new normal), makes people think, that is for me, is or ride-sharing programs for urban
it must make sure its vision for the future is clear and one that communicates what it thinks Gen-Yers who dont want the hassle
understood by all who may work to deliver against and feels as it works to make its vision of owning, what will keep those seniors
3 Wear your heart

of the future a reality. Subaru declares and Gen-Yers from reducing their
it. Comprehension of whatthe brand is trying to
love is what makes a Subaru, a Subaru. decision-making process to simple price
accomplish allows for quick, empowered decision- While some may reject the automaker shopping? The emotion and vision of the on your sleeve
making through the entire organization, explains the based on this arguably touchy-feely brand the sense of this is for me and
Hiding the emotion of
actions and decisions the brand takes, and keeps the point of view, others will see themselves others like me may well be the only
the organization makes it
reflected in the message, and feel differentiating factor.
organization nimble in a global industry. difficult for real people to
connect with the brand.
Emilie Hamer
Senior Vice President, Global
GTB
Emilie.Hamer@gtb.com
45
We were born different, founded to create an entirely new model of collaboration and give
marketers access to the breadth of WPPs talent, ideas and tools. The result? An agency that
44
truly works at the intersection of business and everything imaginable. Welcome to GTB.

Thought Leadership >BRAND BUILDING
BRAND BUILDING
ADVERTISING
our business is to sell, regardless of the It is also easier to realize that this change This is the very reason why its not up
scenario is that the product for the does not mean, in any way that we are to us to be reactive, but only to study
consumer starts to become central as heading backwards and travelling down how we are going to live with this new
well. Meeting a need. Fulfilling a desire. the pyramid steps of building brands. paradigm from now on, where the
AS WE KNOW
Providing a solution. It might only mean that the story of a medium starts to be as important as
brand should not be necessarily told in the message, or perhaps even more
And therefore, that beautiful speech such a vertical way, with pyramids, stairs important.
about a brand, intended to make TV or other ascension metaphors. Things
IT HAS ENDED,
viewers hair stand up becomes almost may be more horizontal. Sharp information
unnecessary, and the emotion it intended
to arouse in consumers no longer real. The sky is the limit; not the destination Another factor has also contributed to
this theory of the end of advertising as we
The game is not over Always on alert know it: the (not so) new way of facing
WITH PRODUCTS
data.
This does not mean that advertising But okay, lets face it. This doesnt
will turn into an infinite succession of happen simply because people have The day that a simple database took
functional demos and cold testimonials overdone it with endless emotional steroids and become big data changed
MOVING TO
about the latest discovered benefits. No, empty speeches. Environment and time everything. This hypothetical machine,
advertising is not becoming a medical must be considered. impressively large, kept somewhere
leaflet. unknown and secret, that eagerly collects
It is the era of a mobile phone in one information about me, you and any other
A great example of this is the campaign hand plus a product to be sold in the person who has used some gadget just
CENTER STAGE
to launch the new global positioning other. It is an era of influencers. An era of seconds ago, has strengthened even
of Coca-Cola: Taste The Feeling. In reducing intermediaries, of less control of more the parameters of the practical
this campaign, intrinsic attributes have speeches, and mainly, of infinite opening speech in advertising. In other words
become the real protagonists. And of channels. knowing exactly what consumers
this hasnt resulted in any piece of the want and providing them with an exact
advertising looking like a medical leaflet Channels that deliver the most essential message about a certain need without
Consumers want the truth,

or even a simple testimonial. It is simply commercial communication that exists: fancy words or hyperbole getting
a product, and like each one of its assets, a relevant character, speaking in a straight to the point.
it connects to the consumers daily life consistent manner and in love with a
not fancy words and pictures needs. Check it out on YouTube and see
how clear the message is: I am a soda for
given product, to those who want to buy
it. Wouldnt it be the greatest thing done
Once again, I reaffirm: it is not the end,
only an evolution. One more step among
your daily life. Period. since Don Draper walked up Madison thousands we have already taken. We
Avenue? have survived the use of computers in
Advertising as we know it has It is rational speech 2.0; the evolution agencies and the first dot-com bubble,
of what you see is what you get; the and, yes, we will survive all of this once
come to an end. That wonderful
BRAND BUILDING ACTION
consumer attitude of: I want to see again.
world of smiling families and exactly what I want to get. Show me
golden ballrooms of perfection,
settings of inspirational waltzes,
exactly, clearly and quickly what the
product has to offer and, who knows, I POINTS POST-ADVERTISING After all, advertising as we know it has
come to an end.
might buy it.
1 Provide guidance
with a beautiful and emotional
Long live advertising.
speech being given in the Cartesian. Raw.
background, has ended. It has As brands have become more
ended for many reasons, but
it has ended mainly because
And if the current idea in recent years
has been to keep the consumer at the
center of the conversation, then the
porous to multiple influences
from a contemporary and hyper-
connected world, marketing and
2 Get more creative
The end of advertising as we
people no longer believe it.
3 Identify
natural evolution of this considering advertising agency teams have know it requires being even more
lost part of their roles as leaders creative. Objectivity and truth are the
Renato Duo
Planning Manager
and builders of a brand. However, watchwords for any brand. But this influencers
J. Walter Thompson, Sao Paolo
they assume another role just as does not mean that the solution
J. Walter Thompson Worldwide, the worlds best-
47
Renato.Duo@jwt.com important guiding and managing is to fill consumers with demos, Influencers become assets of a
known marketing communications brand, has been
the brand through the constant explanations and very extensive brand. We should use them. Or, at
creating pioneering solutions that build enduring
46
brands and business for more than 150 years. movement of its image. reasons to believe. least, understand their importance.

Thought Leadership >BRAND EXPERIENCE
BRAND EXPERIENCE
INNOVATIVE BRAND
experiences. These data results are reinforced by Harvard components. However, one of the distinguishing
Business Reviews study: The most important marketing strengths of these brands is their stronger scores on
metric going forward will be Share of Experience. the Resilience component. Consumers recognize that
these brands have a higher brand purpose beyond their
EXPERIENCE
The BrandZ team worked with Group XP to decode brand immediate product category and exert greater impact
experience into four critical components, applying a BrandZ on the wider society. This has helped these brands turn
metric to quantify each one: customers into devoted fans and reap the financial
benefits.
IMPRESSION Stand for something unique
4
DELIVERS FASTER
INTERACTION Deliver on your most important needs The data show that brands with medium Experience
Capital outperform the market by up to 66 percent.
RESPONSIVENESS Have better online services and
Brands in this group may have scored highly in one
engaging content
or two components, but were not consistently strong
RESILIENCE Strive to make peoples future lives better across all four components as a result of ad-hoc
VALUE GROWTH
customer experiences that were not united around a
holistic experience strategy. Therefore they only gained
Winners and Losers: average brand value growth.
Key findings in brand value growth
5
Brands with low Experience Capital actually declined
By combining the four components equally, we were able to in value over the 10 years by around -0.4 percent.
Higher purpose produces devoted create a single score for each brand and create an XP Capital These brands scored poorly across all the four
Index for all brands in the BrandZ database. We also proved components with a slight focus on more traditional
this had a strong relationship with current consumer demand. brand-building components of Impression and
brand fans and financial reward We were then able to examine the relationship between
brands with high, medium and low Brand Experience Capital
Interaction. Their use of more traditional marketing
techniques and transactional customer service
scores and their trended brand value over a 10-year period. has resulted in brand experiences that provide
Our research revealed: some functional but little emotional attachment for
The CEOs who will be New data analysis by Group XP has customers.
1
led to a breakthrough in how the most
successful in the future focus on Ultimately brands with high Experience Capital scores
valuable brands drive both revenue were much more likely to experience value growth than All of this is good news for CEOs and CMOs charged with
two burning questions: how to and profit growth. This reveals that delivering topline revenue and bottom line profits. We have
those with medium Experience Capital, while those
grow topline revenues and how higher performing businesses focus on businesses with low Experience Capital scores actually clear quantified evidence that superior customer service
to generate greater bottom creating and delivering extraordinary declined in value over the same period. accelerates business growth. And we know that the most
brand experiences that uniquely engage valuable brands exhibit a profound customer-centricity that
line profits? The first requires
2
customers to build enduring and highly There is no evidence of geographic or sector bias in the enables more innovative approaches to business models and
identifying future opportunities profitable relationships. These brands technologies. And, most important, this results in customer
study; brands across all major markets and sectors
with more valuable customer are able to integrate business model from high-tech, online-only brands to long-established experiences that can generate completely new revenue
Iain Ellwood groups, accessing latent improvements, new technologies and hospitality, retail and financial services brands are streams.
Worldwide Strategic Growth Director, design to create innovative customer
Brand Union & Group XP markets and creating category- represented in each of the three levels of Experience
experiences that unlock new revenue Capital. With the XP Capital Index, CEOs and CMOs can better
Iain.Ellwood@brandunion.com
shaping products and services, streams while facilitating better cross- understand the components of brand experience and
3
while the second requires functional teamwork and binding the The data show that brands with high Experience measure their effectiveness. XP Capital Index combines the
entire organization cohesively around the science and art of brand building in one extremely useful
joining the dots across their Capital outperform the market by up to 166 percent.
customer and their needs. These brands score highly across all four of the package.
operations so that people,
products and processes are It is this holistic approach to creating
optimized together around the customer experiences that delivers on
CEOs needs for increased business
customer.
growth and efficiency. Building on
thinking done at Brand Union, the XP
Capital Index quantifies the financial
impact of creating compelling brand
Martin Guerrieria
Global BrandZ Research Director, Brand Union defines, creates, Group XP is an Experience Innovation Millward Brown is a leading global
49
Millward Brown and curates the total brand offer comprising Brand Union, FITCH research agency specializing
Martin.Guerrieria@millwardbrown.com experience, ensuring its and SET. We design end-to end in advertising effectiveness,
48
both brilliantly designed and experiences that drive innovation and strategic communication, media
beautifully connected. accelerate business growth. and brand equity research.

The Future
of Brands
The Future of Brands
3 The Future of Brands
Brands need
INSIGHT
Many categories are already illustrating Brands in most categories will contend
these forces or are course-correcting with the growing complications of
for the future. As the two giant global gathering data and protecting privacy.
brewers consolidate the beer category, In the car and insurance categories, for
thousands of craft beer brands are example, telemetric devices (also known
disrupting marketplaces worldwide. as black boxes) that record and store
to revise the
Leading telecom providers are combining driving statistics could have positive
to achieve scale and dominance, benefits. The recorded data can improve
but as they expand into content and driving safety and increase the fairness of
entertainment, smaller brands are picking insurance premiums, aligning them more
off voice and data transmission. closely with actual driving habits. But the
existence of the technology also raises
Combustion engines and fossil fuel, grimy questions, including: Who owns the data?
fundamentals
achievements of the industrial age, will and Who has access to it?
be replaced over time, as carmakers Purpose must
transition into mobility service providers, The Internet of Things describes the
still helping people get from place potential interconnection of all the be real, relevant
to place but using less and cleaner devices and appliances that we interact and honest
energy. Some physical stores now with all day in every aspect of our lives
of marketing
dense with merchandise displays will at home and work, and any place in Purpose is important. But it doesnt
become retail showrooms for inspiring between. Although the Internet of Things have to be about saving humanity. It
imagination. Regard for personal health is still more of an idea than a reality, needs to be relevant to the brand and
will more strictly guide the choices we will brands are rapidly developing devices honest, and not a made up purpose.
make in categories such as fast food, soft to integrate themselves even more Some brands spoil it for the rest. In
drinks and personal care. deeply into our lives, adding benefits the need to sustain 5 percent annual
like convenience and automatic product growth they develop new products
The young people of a rising middle class replenishment in exchange for more and then work out what the need
will influence change. Their aspirations personal data. for them is going to be or create
for a better life, shaped by generational needs that arent there. These brands
values, will include greater concern With more private information being
And revive the passion and purpose

educate consumers to be cynical.
for personal health and the health of collected at multiple and potentially They have created constructs or
the planet, along with a predilection vulnerable connection points, trust in ways of navigating choices, but have
for sharing and community to balance the brand becomes absolutely vital. done little to build customer loyalty.
that originally made them great traditions of ownership and individuality.

This progressive vision coexists with
retrogressive ideologies and instances
Consumers are likely to select and be
loyal to the brands that they believe stand
as impenetrable sentinels of their privacy.
People are not stupid. They expect
more from brands.
of brutal inhumanity, suggesting that the They may rotate less trusted brands Stuart Butler
path to the future continues to wind, as it based on momentary utility. Chief Planning Officer
always has, around blind curves and over Maxus
If the future of brands is about the tension between opposites consolidation Stuart.Butler@maxusglobal.com
terrifying obstacles. Purpose and
and disruption, data profusion and privacy, functionality and higher purpose
authenticity
then the future has arrived, at least the thin edge of the wedge, just enough Trust and the
to discern a significantly different time, driven by the powerful forces of primacy of privacy Trust will need to be linked with purpose.
Brands may not need a purpose as high
technology and globalization and more complex views of personal identity. The issue of privacy, and the tensions as saving humanity. But they will need to
between the absolute protection of demonstrate and communicate a reason that the brands concern for the earth
private information and legitimate needs for being. How this plays out across is rooted in a self-interested desire
to share it, was most clearly dramatized categories and brands may differ. In not to mess up this playground for
by the conflict between Apple and the US FMCG in particular, variants will need to professional athletes as well as the athlete
government. Apple argued that inviolate add real benefits that enhance the lives in everyone. Communicating purpose
encryption was necessary to protect of consumers, not simply the brands will be complicated by the proliferation
its brand, as well as customers private bottom line. of media and the need to craft the same
data. The FBI recognized those needs message multiple ways, remaining true
but asserted that they were outweighed To be believable, a purpose will need to the brand while also resonating across
53
by law enforcements responsibility to to be relevant to the brand. When Nike diverse audiences. As brand guardians,
protect public safety. talks about sustainability, it explains agencies can play the pivotal role in
52
defining and the interpreting the brand.

>>

A brands purpose may seem like The talent prerequisite preserving their particularity. The ease of Brand owners can adopt a commodity
something people think about when they modern communication enables recent production approach for items
are no longer distracted by constant Talent is a prerequisite for producing arrivals to remain connected to their automatically replenished. That should
hunger pangs. It would be a mistake, purposeful brands. Attracting talented nation of origin, resulting in multiple sub- free resources needed to identify discrete
however, to dismiss concern about people will be easier with opportunities to markets that challenge brands to create needs and create and market relevant INSIGHTS
purpose as merely a first-world, middle- work on useful and worthwhile products more narrowly focused products and products. Brands potentially will enjoy a
class conceit. The desire for purpose and services that inspire passion and services and to communicate in culturally combination of high-volume and high-
seems to be a characteristic shared deliver real benefits, ethically and relevant ways. margin sales at this intersection of big
across humanity. And in the transparency responsibly. data and big ideas.
of a connected world, everyone quickly Increasingly, multinationals will be
sees how a brand honors or dishonors The alternative product iterations challenged to achieve necessary
its purpose. intended only to meet aggressive annual economies of scale while satisfying
growth rates may lift the bottom line local preferences, both in culturally INSIGHT
but deflate staff spirit. And cynicism is not diverse, fast-growing country markets
INSIGHT a strategy for sustained success. Getting and in more mature country markets
excited about selling stuff to people goes where recent immigration patterns are
only so far. Talented people get excited producing much more fragmentation.
because they care about the stuff being The presence of better-quality local
sold. brands adds urgency, and makes it even
more critical for multinationals to build
Marketers will need people with a and maintain strong brand and corporate Showrunner
reputations.
different mix of talents. In the past,
agencies looked mostly at the science
mentality protects
of marketing and selling, but in the Fragmentation Global essence brand consistency
future, marketers will require a more
entrepreneurial disposition. Effective
and choice must contain New brands usually have a clear
marketing communication will depend on
As societies become more ethnically local relevance purpose. In contrast, middle-aged
partnerships between the data scientists
and religiously diverse, they also Purpose works brands can struggle, although they
and the storytellers, those people finely had a well-defined purpose when
are becoming more varied in family
when it drives As global brands serve people of
Future marketing attuned to cultural shifts who can identify
composition and more accepting of different cultures, it is important to they started and the founder still
and interpret important trends that will
consistent action identify the aspects of brand essence ran the organization. They need
requires different impact consumer behavior.
complexity in issues of gender and
sexuality. The mass-market model of that connects to different cultures. a showrunner mentality. Why
talents and skills one-size-fits-all has fractured beyond Many brands today develop a For such global businesses, while does Mad Men season six still have
Consumer diversity repair. Brands will need to work harder to purpose but then dont do anything creating at scale makes economic the same vibe as season one even
be consistent across all audiences while differently. Often the necessary and operational sense, the danger is though so much has changed in the
The structure of marketing
In diverse markets, such as India, which meeting the needs and communications change conflicts with existing in standardizing the marketing toolkit storyline and characters have come
organizations, how we do branding,
has 23 official languages and numerous styles of particular audiences. business objectives and capabilities, that comes at a cost to brands. and gone? Thats because these
and the people and skills we engage
cultural and regional differences, and the brand purpose is seen as Evidence suggests over half of such kinds of binge-watching series have
dont match the branding needs of
multinational brands will need to do Built on an industrial model of something for only marketers to initiatives fail, and up to 70 percent a showrunner, a person responsible
the future. In the past, we looked
a better job of understanding and consistency and standardization, brands worry about. But without clear and of the toolkits dont get used in for maintaining the consistency and
for minds that were comfortable
responding to cultural nuances. Local simplified choice for the customer and consistent action behind a compelling markets. Marketers need to respect feel, to the extent they even have the
with scientific processes, but today
brands are already delivering that level process for the business. Future success purpose, the consumer remains the local cultural relevance while power to hire and fire writers. Brands
we need people who are more
of insight, and customers increasingly requires a different, more complicated unaware and unengaged. If a brand maintaining the core brand essence. tend to go wrong because they lack
entrepreneurial, more commercial,
expect it. model able to deal with multiplicity. This can create a purpose that galvanizes that showrunner. A start-up brand
and have greater storytelling ability. Nihar Das
opposite approach challenges existing the whole business as well as its has a showrunner, the founder.
They also need to be a bit of a data Global P&G Business Leader
The challenge is relevant beyond fast- brands and also opens market gaps for marketing strategy, amazing things Recognizing this essential need is the
scientist, and someone connected to MediaCom
growing or emerging markets. It is new brands. can happen. first step to brand-powered growth.
culture, someone who can identify Nihar.Das@mediacom.com
emerging trends and who thinks particularly critical in the US, a nation of Will Goodhand
Emily Smith
differently. immigrants. And because of more porous Technology holds part of the solution Innovation Director
Brand Director
borders and the greater possibilities to this conundrum of providing a more TNS
Helen Rowe Added Value
for migration, voluntary or forced, expansive range of items to satisfy Will.Goodhand@tnsglobal.com
Head of Brand and Communications E.Smith@added-value.com
many modern nations have become the diverse cultural and demographic
Research amalgamations of diverse peoples. divisions both across and within nations.
TNS UK Simplification may begin to happen
Helen.Rowe@tnsglobal.com Brands traditionally homogenized the when the abundance of choice meets
tastes of diverse groups into mass the Internet of Things. Consumers will
markets. Today, however, people maintain select certain items once and then rely
55
multiple identities, simultaneously on automatic replenishment, freeing
assimilating into a larger culture while time to consider their purchases in high-
54
engagement categories.

SLOWER GROWTH, WPP brand experts gathered in New York for a session about the future
CHANGING NEEDS,
of brands convened by BrandZ. The following remarks are excerpted
from the wide-ranging conversation of J. Walker Smith, Chairman, The
Futures Company; Nigel Hollis, Chief Global Analyst, Millward Brown;
NEW TECHNOLOGY
and Joanna Franchini, Vice President Cultural Insight, Added Value.
WILL RESHAPE Topic 1 One of the reasons for Nikes success is speaking in a culturally resonant
BRANDING
is that it says its not just about way. Their latest iteration of their
connecting you with our brand; were brand ethos is Find your greatness,
IDENTITY CRISIS actually putting you in touch with a which takes it from a brand for elite
community of runners, so we facilitate athletes toughing it out to a brand
Finding connection people-to-people connections, not just for the everyman whos just trying to
in a splintered world brand-to-consumer. How do you hyper- make it through that last quarter-mile.
personalize and give people a sense of That tonal shift makes the brand more
A crystal ball conversation There is an identity crisis

belonging to a broader narrative thats
shared with other people? That is the
culturally relevant to todays world, and
to a broader group of people.
JWS in the world today. Every big opportunity in the marketplace
demographic is creating a today.
context in which people feel a need
to redefine identity. At The Futures
Topic 2
Company we refer to something we call Its about creating cultural
Big-Tent Branding, which asks: What NH experiences. Increasingly, thats BIG DATA
can your brand do to be inclusive in a going to be really important for
twenty-first-century way? That means brands to leverage, if they can. I think
Programmatic
we are all different but we are all the there will be a few big tent brands and consumption
same in that we can gather together many splinter brands, just like there will changes brand building
under the same big tent. be a few big global brands and many
local brands. Ever since we started
The splintering of identity is great, but getting intelligent recommendation There was a time, perhaps 30
it isnt satisfying the human need to systems we have built inertia into the JWS years ago, when manufacturers
belong. There is a shattering of a sense system, ensuring that people stay with had the power because they
of connection. We encourage this the familiar rather than seek out the owned all the customer information.
shattering in our marketing because we new. With the advent of scanners and the
are engaged in hyperpersonalization, emergence of big box stores, the power
which is not about connecting shifted to retailers. In todays world of
JF NH JWS people in context; its about finding
a context in which we can connect JF
I agree with the idea that
people want to connect with
big data, the platforms tend to own
the data rather than the brands sold on
with an individual. So how do you do other people. But I also think those platforms. Think about Amazon.
Joanna Franchini Nigel Hollis J. Walker Smith the twenty-first-century version of that were not giving enough weight If your product is sold over Amazon,
Vice President Cultural Insight Chief Global Analyst Chairman inclusion? to the idea that people do use brands Amazon controls your access to the
Added Value Millward Brown The Futures Company as a way to express their values. Nike customer data. >>
57
Joanna.Franchini@added-value.com Nigel.Hollis@millwardbrown.com JWalker.Smith@thefuturescompany.com
56

It matters because if you are a Exactly, I think this is an awful The automatic products are That also says something about In a world where consumers cant whole thing. It may cost me more over
NH major brand, someone could NH future. And I think were already JF commodities that secure a spot JF partnerships. Because that afford premium everything, theyre five years to take Uber everywhere, but I
invent a similar brand that can seeing some of it. A lot of the in the marketplace, but once point can also be when I buy going to go cheapest on a lot of can afford Uber in 12 $30 slices. A $300
be found through the platform, at a splintering of culture that weve been consumers are passively interacting my washing machine. categories so they can go expensive per month car payment might be too
lower price, and take away enormous talking about is to do with technology. with them, theres no need for them on a few. That means youre not much.
market share. The platform is the access to actually be branded in the way we competing only with brands in your
point. traditionally think of brands. You could I think Samsung may have done category anymore. Youre competing
Thats a bit dystopian. The ship detergent in a white box. JWS that already. Appliance brands with everything else. We have a whole The Bloomberg terminal is a
JF strongest connections are will partner with certain laundry generation of brand managers who JF good business-to-business
There is so much information with other people. And word detergents. have grown up in a high-growth world example. It has had a strangle
JF coming at us all the time that of mouth remains the best form of I actually dont think that you of expanding categories and lots of hold on the financial industry for a long
we need to delegate decision- advertising. Im influenced if a friend NH would be able to ship the new product introductions and price time. But now there are several smaller
making. posts about a product that I may not detergent in a white box. I think And the replenishment button increases. And now, boom! Were start-ups that offer a similar product
have considered. I think its about that whats being sidelined is the huge NH is built into the machine. in a slow-growth world. Will these with a different business model and
how sophisticated brands get about amount of effort that brands put into marketers know what to do? at a lower price. Theres a regulatory
The benefit of programmatic being relevant and at what moment. being visible in stores, and the instant and infrastructure aspect to some of
JWS consumption is that you get The technology is not yet there; we recognition of packaged goods in a these businesses thats beginning to be
time back. So the opportunity remodeled our bathroom months grocery store that triggers the habitual JF No button required. I am intrigued by this idea disrupted. Brands like Uber or Airbnb
for marketers is that you get a chance ago, but I still have the bathroom sink purchasing behavior. Automatic NH of innovation and changing are able to exploit archaic regulatory
to reinvent how you build a relationship we bought following me around the products will throw huge emphasis on the business model. Im systems.
with people. It wont be through the Internet. the key decision points where someone reminded of the Rolls Royce model
old purchasing process, because that
process will be increasingly automated
actually does deliberately think about,
What detergent am I going to choose
Topic 3 of buying and selling aircraft engines.
Customers no longer buy an aircraft I think the splinter brands will
by marketers using algorithms or by Are there brands that can when I get around to setting up my engine. They buy a service package NH be able to make nice premiums,
NH
consumer algorithms. So what do you leverage serendipity? household? And the fact that Amazon INNOVATION and Rolls Royce owns the engine. because one of the things
do to rebuild the emotional connection The monitoring system will indicate that I observe looking across all of our
with brands? It will be a different kind of
will soon sell its own-brand products,
including detergent, to its Amazon
Slower global growth when the engine needs servicing, so data is that there are very few mass-
world. Birchbox does that now. And if Prime members puts Amazon at the will challenge brand downtime is minimized. Surely, that market brands that can command any
JF you think about why someone head of the queue. marketers technology is going to apply to cars significant premium. If you plot the size
buys into a subscription box, its and washing machines. I can envisage of the brand in volume sales against its
Dont you think people will because it offers a delightful collection a future where the service model premium relative to the marketplace
NH get bored in this world? Do that surprises me every month. Thats Thats my headline: Moving The global economy probably applies across most categories. you invariably end up with some sort of
consumers really want a the insight. Even if its two ounces of a JWS from consideration sets to JWS will grow at a slower rate for negative relationship. >>
relationship with a brand? They want body wash Im only going to use once, preference profiles. In the a few decades. That will put
relationships with other people. If all my theres something about that surprise past weve been trying to get into increasing pressure on some of the I think that gets to the on-
algorithms suggest Im keenly interested element. the consideration set. But when that ways in which we manage our brands. JWS demand economy. In a world
in four things, thats all I ever hear about. gets eliminated because everything is Companies will find it harder to drive in which people are under
The unusual will never make the cut. automatic, you need to get into that the top line because they will have increasing financial pressure, people
You would have two sets of point when the decision is made. Thats trouble raising prices in a world of lower will look to be able to afford what they
NH brands then? when I fill out the profile that Amazon want, and service models will be an
inflation, where wage growth is slower.
So how do you build or some other provider then delivers. There will be more pressure on cost opportunity. People may want to buy
JWS serendipity into a Im checking a box and then Amazon cutting. Business model transformation that slice as opposed to buying the
programmatic world? knows what to do. will be a bigger imperative.
59
58

Splinter brands will not necessarily be brands BRAND

for all time... theyll be short-lived brands. BUILDING
Theyll fill a human appetite for novelty. And ACTION
no one wants one brand to own everything. POINTS
If you believe that brands stand

NH for values and association and
colleague who couldnt understand
the resurgence of the Welsh or Catalan
The large multinationals are
NH good at producing at scale,
1 Tell the brand story
Strong brands will help future-proof businesses. They will
identity, as you try to broaden languages. He asked, why would anyone where it is difficult to command play a somewhat different but essential role in a future
out beyond a fairly tightly defined group want to learn a dead language? For a premium, but theyre not particularly that presents consumers with greater choice. When some
of people, it becomes really difficult him, being part of the global scene good at developing niche brands. There products are replenished automatically, consumers will rely
to get them to consider you if youre was whats really important. But is an organizational issue here. If those more on brands for considered purchase decisions.
charging a premium, because they dont increasingly, there is also a desire for companies want to develop splinter
care as much about the offering as the local identity. brands they will have to go to a whole
original group did. I come back to this
bifurcation that were going to have
where the big tent brands may all be
I think that these splinter
JF brands will not necessarily
new model. There is a brand called Epic,
a new kind of health bar that includes
meat protein and was developed by a
2 Push brand boundaries
Revise the role of brand guardianship. It is no longer about simply being
value plays. They may be your white box be brands for all time. I think couple of runners and purchased by the regulator who enforces consistency. The role needs to be more
of detergent. Great product. Great price. theyll be short-lived brands. Theyll fill General Mills. So from something with entrepreneurial, less about policing the boundaries and more about
a human appetite for novelty. And no a cult-like origin you have something pushing them to their limits. Being brand guardian means being open to
one wants one brand to own everything. that potentially appeals to a mass new solutions, such as creating a product or a service, not simply an ad.
If you put technology and I recently completed an analysis about market. What does Epic not have?
JWS economic trends on top of that the craft phenomenon in the soft drinks Distribution. What can General Mills
3
it adds to the dynamic. category. provide? Distribution. It will be all over
the country just like Burts Bees or Toms
Think outside the category
Carbonated beverage consumption of Maine.
Define the brand by what it does and the benefits it provides, not by the
Then there are splinter brands continues to decline but overall drink
category that it conveniently sits in. Focus on real consumer needs and
NH that people will migrate consumption is not down. Beverage
follow them. Think outside categories, because they are less relevant as
to because there really is consumption moments are being And what will happen to FMCG
brands cross category boundaries to pursue new opportunities.
something about the brands that distributed over a much broader set of JF or personal care when we start
genuinely speaks to peoples specific possibilities. Some of the options are printing our own products?
4
needs or values or identity. We see about health but others are just about
the same thing in the global and local variety. There are a massive number Follow your bliss, not the money
dynamic. Youve got these big global of craft soda players. Where is this Thats interesting. For durables
brands. People want an Apple iPhone going to end up? We could see a lot of NH you move to a licensing model Global reach and volume is not the only game in town. There are highly
because it makes them part of the acquisition. Or we could see the major and you better have something profitable local brands that can carry on for years, generating value in the
global club. Youre in Brazil but you have brands riding the coattails of some of worth licensing. minds of consumers and in the stock market. Access to resources, including
the same stuff as some guy from the the craft brands until the trend stalls. talent, technology and capital, used to require scale. Not anymore.
US. I had a conversation with a Brazilian
5 Take risks
New metrics will be able to measure the success of social media and
other digital marketing initiatives. A marketing idea with success
measurements can turn a formerly risky venture a start-up, for
example into an opportunity worth pursuing.
61
60

Thought Leadership >DIGITAL
DIGITAL
NEW TACTICS HOW TO CATCH

THE DIGITAL WAVE:
NEEDED TO GAIN 1 Go big on big data
3 Make a visual impression
CONSUMER
or go home In a world of overwhelming media channels,
each offering endless information, the audiences
Invest in the right analytics. In modern digital
attention span has been reduced to as little as eight
marketing, in-depth consumer insights are even more
seconds. Visual marketing has become an important
ATTENTION
important than ever before and the backbone to your
differentiator to capture attention and arouse interest.
marketing. The latest big data predictive analytics
As an example, brands are increasingly adding
provide the power to get valuable insights on your
emojicons into their brand marketing to attract the
customers; know their media consumption habits,
youth audience. A growing number of brands are
the content they consume, their product preferences
IN TIME OF
using animated GIF images or animation elements to
and motivations. These kinds of data are crucial for
communicate. To this end, marketers should make sure
predicting consumer behavior, and, in turn they allow
their online campaigns are enriched with adequate
companies to feed customers the right content in the
visual appeal.
right channels all in real time. The mantra of GroupM
PERVASIVE MEDIA
and WPP on big data is that we should be able to
apply all the data, to all the inventory, all the time and
in real time.
4 Use the newest technologies
New technologies continue to enhance consumer
2 Be in the right channels

experience. They will play a pivotal role in enabling
the power of digital marketing. Brands now have
Find solutions in big data The prevalence of mobile and social forces means
marketing opportunities can emerge at almost any
an arsenal of established technologies under their
belts, including Virtual Reality, Augmented Reality,
360 panorama video and indoor navigator. The
and digital channels

moment. Digital marketers need to adopt a moment
emergence of the Internet of Things, in which sensor-
mindset predicting, identifying and utilizing every
linked objects, actions and capacities are tethered to a
moment to draw consumer interest and entice
network, and where data communication will become
purchase. As an example, mobile payment is a key
part of everyday devices, offers an intriguing tool for
enabler in Chinas rapidly growing online-to-offline
Most leading brands are precision to engage their customers in real digital marketers to collect and analyze data and reach
time, and it is all completely trackable. business, where start-ups use apps, email, and other
aware of the brass ring in the digital tools to entice shoppers to buy from physical customers.
rapidly developing digital With consumers spending up to 70 percent stores or to purchase real-world services.
age but few of them know of their time on mobile devices, it seems
how to grab the potential obvious that mobile is the new domain
of all marketers. And though the benefits
opportunities.
of transforming digitally may come with
a cost disruption to the culture of your
Brand marketers sense that they may
organization one thing for sure, your
be missing a bigger opportunity,
marketing team must transform or die.
as advertising on TV continues to
play a prominent role due to lack of
However, conventional wisdom about
precision marketing in mobile and
traditional media no longer applies. The Store WPPs IoT Innovation Kit enables agencies and
social media channels. With fewer
Pervasive computing is leading us brands to get the most out of the available IoT technology
Patrick Xu rules and restrictions, digital channels
to pervasive media. With consumers to create unique retail and shopper experiences. To find out
CEO China give marketers tremendous reach and
GroupM constantly inundated with information, your more, go to: www.internetofthingsage.com/iot-kit
Patrick.Xu@groupm.com advertising message has lost its meaning.
63
GroupMs primary purpose is to maximize performance of WPPs media agencies by operating
62
as leader and collaborator in trading, content creation, sports, digital, finance, proprietary tool
development and other business-critical capabilities.

Thought Leadership >DIGITAL BEHAVIOR ANALYTICS
DIGITAL BEHAVIOR ANALYTICS
NEW DIGITAL The world of measurement is changing - but a bit of enduring wisdom never
ANALYTICS
hurts. For all that is new, the old rules still apply: great advertising builds great
brands. Whats different, now, is that we can see this in new ways. We have new
data sources, new measurement tools, new analysis approaches. So those of
us in marketing have a choice. We can throw away all our preconceptions, start
MEASURE AD
from scratch with no expectations, and be guided purely by what patterns there
are in these new data. Or we can take what we already know about what makes
brands great, and look for better/faster/easier/cheaper ways to measure them.
EFFECTIVNESS
Starting with a blank sheet of paper can feel liberating - but its madness.
FOR BUILDING Millward Browns newest tracking approach,

Digital Behavior Analytics, takes the latter
approach. It applies advanced analytics to
for the brand. Cut-through and news have
always formed the bedrock of our advertising
assessment frameworks - now we can just see
BRANDS
digital signals like search patterns and social them faster through these new approaches. New
conversation to derive validated indicators of tools and new data sources dont necessarily
attitudes and behaviors that we already know need to mean new philosophies. Digital data can
build strong brands. Long-term trends in brand provide flexible, cost-effective ways to measure
search patterns, for example, act as an indicator the things we already know matter.
of brand Salience in peoples minds. Differences
in social conversation volumes across brands in If the old rules still apply in our world of
Results confirm that great creative a category reflect how dynamic and innovative
a brand is perceived to be. Search trends and
measurement, its because they also still govern
how consumers respond to advertising. By
drives stronger brands over time

Social may be new types of data - but Salience combining Millward Browns Digital Behavior
and dynamism are long-standing aspects of Analytics with Kantar Medias advertising
brand equity whose importance have been tracking data, weve looked at some of the
proved time and time again. biggest movers in the BrandZ Global Top 100
to see how much creative impact their ads make.
Those same data sources and analytics can Regardless of how new or established the brands
also provide indicators of advertising impact were, we saw that strong creative drives stronger,
and effectiveness. Campaigns that have good more valuable brands over time. Though the
in-market cut-through and strong creative are range of opportunities for highly tactical, efficient
much more likely to drive increases in buzz and effective personalized marketing has grown
about the brand. Advertising that successfully hugely, great advertising that gets people talking
communicates news or delivers a compelling remains a worthwhile investment for young
message is far more likely to increase searches challengers and old powerhouses alike. >>
Millward Brown is a leading global research agency specializing in advertising
65
Sarah Walker Peter Walshe effectiveness, strategic communication, media and brand equity research.
Global Lead, Digital Behavior Analytics Global Brands Director
64
Millward Brown Millward Brown

Sarah.Walker@millwardbrown.com Peter.Walshe@millwardbrown.com

Thought Leadership >DIGITAL BEHAVIOR ANALYTICS
DIGITAL BEHAVIOR ANALYTICS
GROWING
such as Doves Choose Beautiful execution showing
women choosing between doors marked Beautiful or
Amazon generates more social media conversation than Walmart
BRANDS
Average, and Dove Men+Cares Fathers Day creative
featuring footage of new fathers-to-be finding out they
were to be a dad, led to 2015s advertising demonstrating
Amazon vs. Walmart in Social Conversation
an increase of over 50 percent in efficiency at generating Amazon has steadily increased the effectiveness of its advertising in generating interest in the brand.
Effective advertising, brand conversation about the brand. Even with little new Mentions of Amazon in social media have increase sharply relative to Walmart.
messaging, strong creative is able to make Doves
strength form virtuous circle meaningful difference more mentally available for people. 55,000
50,000
Tesla, a new entrant into the BrandZ Top 100 this year, is Similarly, Amazon, the fastest-growing brand in the
one of the new kids on the block. Its brand advertising and BrandZ Global Top 100, has steadily increased the
45,000
advertising impact show a pattern common to new and
SOCIAL TREND
effectiveness of its advertising at generating interest in 40,000
up-and-coming brands. Teslas brand equity has grown a lot the brand. This has translated into a steeply increasing
over the last few years, and while famously not an advocate 35,000
base of social conversation, sustained by the brand
of traditional above-the-line advertising, the few marketing being perceived as different and innovative/newsworthy. 30,000
dollars it does spend have grown noticeably in both value This is a sharp contrast to rival Walmart, whose trend in 25,000
and effectiveness in 2015 compared to previous years, distinctiveness and dynamism is firmly in the opposite
and we see this manifest itself in increased impact on both direction, with any conversation increasingly having to be
20,000
conversation but also search as a result. At the same time, bought through high media spend. 15,000
brand-supported interest and buzz continues to increase
AUGUST 2012 FEBRUARY 2013 AUGUST 2013 FEBRUARY 2014 AUGUST 2014 FEBRUARY 2015 AUGUST 2015
over the long term. Like many young brands, Tesla shows
the impact of effective advertising in whatever channel Social Trend measures the number of times that brand was mentioned in social media, excluding the short-term impacts of seasonality, brand activity and external events.
NON-
- on driving growth; and as its brand gets stronger, so its
communications become more efficient and more effective
at converting into brand equity. This is a virtuous circle: the Source: BrandZ / Millward Brown / Kantar Media
TRADITIONAL
more activity a brand does, the more people will know it; and
the more a brand is known to people, the more meaningful
MEDIA
and therefore effective its advertising becomes.
ESTABLISHED Sponsorships and partnerships

also drive brand engagement
BRANDS Two of the big Brazilian beer brands, Brahma and Skol,
have both seen strong growth in value this year, which
Strong creative cut-through

is king for brand building
we see paralleled in the increases in base levels of
conversation about both brands. But perhaps the most
interesting outcome is the proof that its not just traditional
TAKEAWAY
advertising that is capable of driving strong brand
Advertising doesnt just build brands by getting them better engagement. In 2015, Skols sponsorship of music festivals Creative cut-through drives brand growth in old, new channels
known. It is a hugely powerful tool for brand growth, even had a far greater and more sustained impact on the
brand than any of its more traditional activity, generating This is an exciting time to be in our industry. New media channels emerge, new technology makes different types of
for established brands. Dove has been a strong, well-known
the highest levels of search and social seen for the brand interaction with consumers possible, and the volume and variety of new data sources is both exhilarating and daunting.
personal care brand for decades, yet this year the brand
over the last four years. As a result, by the end of 2015, the But the old rules still apply, even if we can now see them at work and respond to them in new ways. Brands become
has increased in value by 3 percent, ahead of the category
digital indicators of Skols brand Salience and Dynamism more valuable when they have clear meaning to consumers, are seen as different and dynamic, and come to mind when
as a whole. This is, clearly, not due to greater awareness
both begin to strongly pull away from the category. it counts. Creative communications that cut through, generate interest and spark conversation are still the drivers of
you would struggle to find a shopper in the western world
Aligning itself with properties that people genuinely care brand growth, in old channels and new. We cant go backwards, nor would we want to but we can be confident that the
who hadnt heard of Dove. With little new product news we
fundamental truths of good communication will be the same in the next age of advertising as they were in the last.
67
see little change this year in the ability of their advertising about and that fit with the brand can have greater lasting
to deliver messaging but we have seen a significant and impact on the brand than channels with much higher reach
66
continuing increase in its creative cut-through. Campaigns if they dont deliver the same emotional connections.

Business-to
-Business
Business-to-Business >OVERVIEW
4 Business-to-Business
OVERVIEW
Economic
A third factor the technology category shift to cloud Business and consumer
computing continued to affect the value growth of B2B
technology brands. Even the most iconic B2B technology
brands collaborate
brands felt the perfect storm of global economic weakness,
Only these five B2B brands, all in technology, increased in
rock-bottom oil prices and category disruption that required
value in the BrandZ 2016 Global Top 100: Microsoft, SAP,
major investments of time and money to develop and
factors slow
Accenture, Huawei and Intel. And in two instances, the
implement new strategies and business models.
increases occurred as B2B brands shifted toward B2C in
corporate culture or product offering. These instances reflect
Consequently, the 2016 BrandZ B2B Top 20 declined 5
a larger trend of B2B and B2C blending in the technology
percent in brand value, and only five of the 2016 BrandZ B2B
category.
Top 20 increased in value. The Business-to-Consumer (B2C)
Top 20 performed somewhat better, increasing 10 percent
Under new leadership, Microsoft began to transform from a
in brand value, with all but five of the B2C Top 20 increasing
traditional B2B central-control structure to a collaborative
in brand value. This contrast resulted in part from the years
B2B brand
culture, more typical of the B2C technology brand leaders.
unusual confluence of market forces; viewed over time,
Huawei, the Chinese telecommunications equipment maker,
however, B2B brands show greater stability than B2C brands.
led the B2B Top 20 in brand value growth, based on a 44
percent increase in sales of its smartphones, which are
All 20 B2B brands in the 2016 ranking also appeared in the
essentially consumer products.
2015 B2B Top 20. But only 16 of the 2016 B2C Top 20 brands
also appeared in last years B2C Top 20 ranking. Reviewing
The technology category is experiencing some
value rise
performance over time, 14 of the B2B brands that appeared
consumerization as B2B brands introduce more consumer
in the 2006 B2B Top 20 also appeared in 2016, while only
devices into the workplace and more collaboration takes
eight of the 2006 B2C Top 20 brands remain in the 2016
place. IBM, Cisco and SAP have partnered with Apple, for
B2C Top 20. The results testify to the consistency of the B2B
example. These partnerships push more consumer devices
brands and their ability to adjust and endure even during
into the workplace and enhance consumer devices with more
difficult periods like the past 11 years, which included the global
enterprise apps.
financial crisis and its aftermath.
Over the past 11 years, B2C technology brands have grown

Over the 11-year period from 2006 to 2016, the BrandZ B2B
358 percent in value compared with a 84 percent rise for
But B2B brands demonstrate

Top 20 brands grew 68 percent in value, much less than the
B2B technology brands. The B2C brands now account for
215 percent increase for the B2C Top 20. The difference in
65 percent of the technology category value, compared to
growth rates reflects the predictable performance of large and
just 43 percent 11 years ago.
long-term stable growth

well-established B2B brands, and also the rapid rise of recent
start-ups and younger B2C Top 20 brands such as Facebook
Not surprisingly, because of depressed crude oil prices, the
and Apple.
oil and gas brands in the B2B Top 20 Exxon Mobil, Sinopec
and Shell declined most in brand value. But even these
Because of the rapid rise of B2C brands, especially in the
B2B brands looked for possibilities in their B2C businesses.
Slower growth in China, Brazil and Russia, along with the precipitous drop technology category, and the steady but slower growth of
Shell, for example, operates over 45,000 service stations
B2B brands, the proportion of brand value in the BrandZ
in oil prices, especially challenged business-to-business (B2B) brands. They worldwide. Many multinational oil and gas brands warmed
Global Top 20 has shifted over time from B2B to B2C. In 2006,
populate the two categories most affected by those factors: oil and gas, B2B brands totaled 59 percent of the BrandZ Global Top 20
their messaging in order to target consumers.
value. In 2016, the B2B Top 20 value totaled only 35 percent of
which declined 20 percent in brand value; and banking, with global and
the Global Top 20 value.
regional bank brands down 11 percent and 12 percent, respectively.
71
70

Business-to-Business >OVERVIEW
OVERVIEW
Pressures cross
categories Global pressures impact B2B Top 20 brands Market forces slow B2B value growth short But the B2B brand ranking is more stable
term over time than the B2C
Several of the B2B technology leaders Global economic pressures that slowed the brand value growth of
continued the difficult transition to the 2016 BrandZ Global Top 100 especially affected B2B brands. The B2B Top 20 declined 5 percent in brand value, as the B2C All the B2B brands that appeared in the BrandZ B2B Top
cloud-based businesses. HP split into two Top 20 increased 10 percent. 20 in 2016 also appeared in 2015. Only 16 B2C brands from
publicly traded entities: Hewlett Packard the 2015 ranking appeared again in 2016. Over the past 11
Enterprise, which focuses on software, BrandZ Top 20 Most Valuable B2B Brands 2016 years, B2C churned more than B2B; 14 B2B brands from 2006
2015 2016 % VALUE
cloud storage, and networking; and HP Brand Value BRAND VALUE BRAND VALUE CHANGE remain in the B2B Top 20, but only eight B2C brands remain in
Inc., which continues the core printer and Rank Brand Category $Mil. the B2C Top 20.
PC businesses. HP also planned a further
1 Technology 121,824 $682 Bil. $649 Bil. -5%
spinoff from Hewlett Packard Enterprise, Top 20 2016 brands that are also in previous years Top 20
and SAP grew its cloud subscriptions.
2 Technology 86,206 $1,544 Bil. $1,691 Bil. +10% Number of B2B brands
20
Number of B2C brands
18 18 18
A combination of economic slowdown Regional 17 17
3 58,540 16 16
and category disruption also impacted Banks 15 15 15 15
Top 20 B2B 14
the B2B logistics brands: UPS, FedEx and Top 20 B2C 12
13
4 Conglomerate 54,093 11
DHL. While the rise of e-commerce drove 10
9
additional revenue for these brands, it 8 8
also stressed operations. In addition, 5 Logistics 49,816
Amazon, the largest e-commerce
brand, and a major customer of the 6 Technology 39,023 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
logistics companies, increased capacity
to deliver its own orders. Operating 7 Technology 22,813
both e-commerce and cloud storage
businesses, Amazon best exemplifies how 8 Technology 21,387
Although B2B brand value grows And the B2B Top 20 becomes
brands are blurring the borders of B2C
and B2B. 9 Global Banks 20,276
more slowly more dominant
Driven by the entrance of fast-growing technology brands In 2006, the B2B Top 20 value totaled 59 percent of the
Among the bank brands in the BrandZ 10 Technology 19,489
such as Google, Facebook and Apple, and the rise of Amazon Global Top 20 value. In 2016, the B2B Top 20 value totaled
B2B Top20, HSBC and Citi meet the
and Alibaba, the BrandZ B2C Top 20 increased 215 percent only 35 percent of the Global Top 20 value. In 2006, seven
BrandZ definition for global banks, 11 Technology 18,652
in brand value over the past 11 years, compared with a 68 B2B brands ranked in the Global Top 20, but by 2016 that
because they derive at least 40 percent
percent increase for the BrandZ B2B Top 20. number had declined slightly to five.
of their revenue from outside their home 12 Technology 18,632
market. Wells Fargo, in contrast, is a
regional bank with most of its business 13 Global Banks 17,055 2006 2016 % VALUE
387 418 493 456 514 562 556 597 635 682 649
BRAND VALUE BRAND VALUE CHANGE
centered in North America. The decline in
value of both global and regional brands 14 Oil & Gas 16,838
reflects in part the widespread impact $387 Bil. $649 Bil. +68% 59%
of global economic pressures on B2B 35%

15 Logistics 16,236
brands. $537 Bil. $1,691 Bil. +215% 7 7
6 6 6
16 Oil & Gas 14,940 5 5 5 5 5 5
17 Technology 14,508 Top 20 B2B

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Top 20 B2C
18 Oil & Gas 13,206 Value of Top 20 B2B Brands ($US Bil.)
Value of B2B Top 20 compared with Global Top 20
Number of B2B brands in the Global Top 20
19 Logistics 13,199
73
20 Conglomerate 12,485
72
Source: BrandZ / Millward Brown (including data from Bloomberg and LinkedIn)
Note: B2B brands are defined as those that generate the majority of their revenues
from the B2B business.

Business-to-Business >BRAND BUILDING
BRAND BUILDING
Value rose
When inevitable and often unpredictable market fluctuations disrupt corporate
performance, as in the 2016 BrandZ Top 100 Most Valuable Global Brands,
strong brands add stability, and they help accelerate growth during better times.
fastest for
Strong brands share three PURPOSE Brand potential
characteristics. They are: (1) Meaningful
in ways that meet both functional and
drives value
Purpose can be about a lofty objective
emotional customer needs; (2) Different such as making the world a better Dividing the B2B Top 20 into two groups
in being perceived as trendsetters and place in some way. But brand purpose brands that scored high on Brand
unique from the competition; and (3)
B2B brands
is always about clarity in terms of what Potential in 2006 and brands that scored
Salient in coming to mind quickly and the brand stands for: its proposition low on Brand Potential in 2006 and
easily at the moment of purchase. or reason for being, the ways in which comparing the performance of the two
its very existence is important for the groups over the past 11 years reveals
BrandZ uses three key metrics to customer because of the useful, or even that brands with high Brand Potential
describe and measure the ways in unique, benefits it provides. increased 123 percent in value, while
which meaning, difference and salience
the brands with low Brand Potential
impact brand equity. These three metrics
viewed as
were based on almost two decades of RESPONSIBILITY increased only 23 percent in value. High
scores in purpose, responsibility, love,
study of the worlds strongest brands,
and innovation also correlated with
and have been validated to in-market Responsibility has to do with the
higher rates of brand value growth.
performance. Brand Power describes brands behavior as a corporate citizen:
a brands ability to generate volume its impact on the environment, its
Research into the drivers of Brand
demand. Brand Premium describes a engagement with communities it serves,
Potential can provide an advantage for
having strong
brands ability to command a premium and its attitudes and behavior toward its
brand owners and marketers enabling
price. Brand Potential describes a brands employees. Responsibility is one of the
them to engage consumers in meaningful
ability to grow market share in the future. factors that influence trust.
ways that maintain differentiation. >>
These metrics are as relevant for B2B LOVE
brands as they are for B2C brands.
Achieving Brand Potential, for example, There are many large and enduring
potential
requires performing well on several brands that operate in categories
interrelated aspects of brand building, being disrupted by changing consumer
including: expectations. As brands respond to
those concerns, transformation takes
time. Brands that are loved benefit from
greater customer patience.
INNOVATION
Perceived Innovation is about leadership,
Potential depends on purpose, bringing something into the market

that is new and not just iterative: new
products, services, communications, or
responsibility, love and innovation packaging any introductions that are

different and shake things up for the
benefit of the customer.
75
74

Business-to-Business >BRAND BUILDING
BRAND BUILDING B2B brands score well

in Potential but lag B2C
Business-to-business brands score well above average
in Brand Potential and in all the attributes that contribute
B2B brands with high Brand Potential grew much more in value Love also drives value to Brand Potential. They score somewhat lower than
business-to-consumer brands, however. Consumer-facing
Of the 14 brands that appeared in both the 2006 and 2016 B2B Top This finding dispels the notion that people may be emotionally brands may pay more attention to brand building, and in
20, about half scored high in Brand Potential, increasing in value 123 engaged with B2C brands but not with B2B brands. The some instances the B2B brand strengths may not be as
percent. These brands far outperformed the brands that scored low
BRAND IMPLICATIONS: brands that scored high in love increased brand value 60 clearly understood and appreciated.
in Brand Potential, which grew only 23 percent in brand value. percent over the past 11 years, compared with the brands that
Being meaningfully different today creates scored low in love and increased value only 43 percent. The BrandZ B2B Top 20 brands score 108 in Brand
success tomorrow Brand Potential. Brands Potential overall, and the BrandZ B2C Top 20 brands
that score high in Brand Potential grow faster score 118, using an index that sets the score for an average
in value. It is important to cultivate the drivers +43% +60% brand at 100. B2B brands outscore the B2C brands on only
+23% +123% one driver of Brand Potential: Treating Employees Well.
of high Brand Potential, which include: Brand Love B2C brands outscore B2B brands on the other drivers.
purpose, responsibility, love, and innovation.
Brands that scored low in Love Brands that scored high in Love The B2C brands are strongest in Innovation, especially the
attribute of being seen as Different, where they score 146,
Brands that scored low in Potential Brands that scored high in Potential
while B2B brands score 110. The B2C brands score 125 in
Brand Love, compared with 106 for B2B brands.
BRAND IMPLICATIONS:
Brands scoring high in purpose grew Responsibility, trust drive value Love is an important discriminator between brands that
faster in value are more successful or less successful. It is important
B2B brands score well in all
More trusted brands grew 80 percent in brand value between Brand Potential measures
for a brand not just to be loved but to be loved for a
Brands that scored high in Purpose grew more in value than 2006 and 2016, while less trusted brands grew only 25 percent.
purpose that is, for the contribution the brand makes
brands that scored lower. And the difference in growth rates The BrandZ B2B Top 20 brands score 108 in Brand
to peoples lives.
is substantial, as becomes clear when the various aspects of Potential overall, well above average, although less than
+25% +80% the BrandZ B2C Top 20, which score 118.
Purpose are unbundled. Brands that scored high in Makes
Lives Better grew 81 percent in brand value between 2006 Responsibility: Trusted
and 2016, while brands that scored lower in that component
grew only 24 percent.
And innovation can have an enormous Top 20 B2B compared to Top 20 B2C
+40% +62% impact on value B2B B2C
Makes Lives Better 110 119
Responsibility: Socially Responsible The brand value impact of being perceived as different or
+24% +81% Purpose Brand Clarity 105 107
creative is enormous. Brands seen as different or creative
Brand Proposition 111 117
Purpose: Makes Lives Better almost doubled in value between 2006 and 2016, while
+26% +76% Trusted 107 119
brands perceived as low on those characteristics improved
Responsibility Socially Responsible 106 109
+30% +68% Responsibility: Treats Employees Well in value only by around one-fifth over those 11 years.
Treats Employees Well 113 108
Brands that scored low in Reponsibility
Purpose: Brand Proposition Love Brand Love 106 125
Brands that scored high in Reponsibility
+22% +90% Different 110 146
Innovation Shaking Things Up 113 120
+24% +81% Innovation: Different
Creative 107 108
BRAND IMPLICATIONS: Average Score 108 118
Purpose: Brand Proposition
+30% +66% Average Brand = 100
Brands that scored low in Purpose Brands that scored high in Purpose
This finding is important for B2B brands, which are
often in categories, such as technology or banks, where Innovation: Shaking Things Up
customer trust is an important issue. In technology,
concern with privacy and data protection will become
BRAND IMPLICATIONS: even more evident with the implementation of the
+18% +90% BRAND IMPLICATIONS:
Internet of Things and the greater involvement of Innovation: Creative
Brands that think of their consumers, rather than The takeaway from the lower Different score for
technology in peoples lives. Trust is critical for banks,
Brands that scored low in Innovation B2B brands is not that they lack Innovation, but
only themselves, and genuinely attempt to improve especially among millennials, as banks seek to expand Brands that scored high in Innovation that compared with B2C brands, they are less
consumers lives will succeed to a much greater their retail businesses. Some brands have a reservoir of perceived as innovators. B2C brands receive credit
degree. trust built up over time. But to be sustained, trust needs for innovating; B2B brands not as much. Similarly,
to be renewed constantly. Similarly, companies that are
BRAND IMPLICATIONS: the contrast in Brand Love scores means that B2C
seen to treat their employees well grew brand value at brands are more loved, but it does not mean that B2B
three times the rate of companies less known for treating brands are unloved. There is room for B2B brands
The drivers of value for B2C brands also hold for B2B
their employees well. to more effectively communicate underappreciated
77
brands, and they provide an excellent guide for driving
strengths. These changes would help B2B brands
future value growth. grow in brand value and market share over time.
76
Source: BrandZ / Millward Brown Source: BrandZ / Millward Brown

Business-to-Business >TALENT
TALENT
Recruitment
Recruiting and retaining talent is a central challenge for business-to-business
brands, especially as they appeal to potential employees born in the final
two decades of the twentieth century, who today are entering the job market
or moving into management positions for the first time: the millennials.
of talented Seeking meaning

There are currently about 75 million
INSIGHT members of this generation in the US
alone, according to US government
in work
statistics, making millennials Americas
Millennials also express their attitudes
largest generation, having just surpassed
individuals
in the workplace. The boomers viewed
the baby boomers, who are now in middle
employment as an aspect of their
age or transitioning into retirement and
quest for self-fulfillment. The previous
opening up job opportunities for younger
generation, the boomers parents, acted
workers.
more practically, coming of age during the
Depression, when work, if available, implied
The term generation gap described
a lifelong contract. Millennials typically look
the sharp wedge of social attitudes and
critical for
for work that has personal meaning, with
behavior with which boomers asserted
companies that advance or at least do
their independence and separate identity.
not contradict their concerns about social
The millennial coming of age, if less
welfare, the environment and other issues.
radical, is also disruptive. Millennials
Like the generations that preceded them,
Profit is only one do not reject the existing order, but
they assert a particular reformist vision
millennials seek career advancement, but
of many concerns powered with the communication tools of
they resist time commitments that intrude
future B2B
too much on the rest of life. Technology
for millennials a connected world.
is a popular employment destination for
millennials, especially brands they view as
Millennials are not fond of borders. They
In our series of studies for Deloitte, innovative and mission-driven those that
affirm absolute social equality across
we asked millennials to tell us how look to improve the world while making a
all designations, including race, religion,
they define an organization that profit from their good works.
nationality, sex and gender. They balance
leads. Its everything that begins with
their individualism and entrepreneurialism
brand success
P people, products, profits and The impact of millennials is a global
with a commitment to communal well-
purpose. Treatment of employees phenomenon. The gap between millennials
being. For millennials, the earth is a
came out number one, followed by an and prior generations may be widest in
sanctuary for all the earths inhabitants
organizations impact on society (an countries like China and India because
to share, enjoy and protect. They want to
obvious link to purpose) and creating of the sharp difference in life experience
live well, but on their own terms.
innovative products and services. between parents who grew up in more
Then came financial success and traditional societies and aspired to a good
Millennials express these attitudes in the
having a well-defined and meaningful life, and their children, many of whom grew
marketplace. They have nudged beer
purpose that it is true to. Consistently up living only the good life.
drinking to craft brands, car ownership to
around nine of 10 millennials have
Requires insight about millennials

car sharing, fast food to healthier options,
said that the success of a business While generalizing about any generation
luxury to more playful colors, apparel to
should be measured in terms of more is hazardous, research indicates that
fast fashion, banking to mobile payments,
than just its financial performance. millennials present employers with
and personal care to more diverse views
social values and work priorities

Theyre not nave though, and they many specific challenges. Millennials are
of beauty.
recognize money making as a vital more transient than earlier generations.
component of business success. In a global research study for Deloitte
conducted by Millward Brown, two-
Allan Hyde
thirds of millennials expected to leave
Senior Account Director
their current jobs within five years. The
Millward Brown
79
disruption caused by this churn the loss
Allan.Hyde@millwardbrown.com
of valuable experience and the constant
78
need to invest in training point to the

importance of inspiring loyalty. >>

Business-to-Business >TALENT
TALENT
scientific expertise, have begun to the emotional appeal of the brand initiating programs that match millennial Millennials take their values with them
INSIGHT The research study found that salary was communicate more emotively. becomes decisive. A strong brand adds career goals and social values. Citi into the boardroom. According to the
the top requirement for job satisfaction. IBM has explained the potential of its implicit reassurance. In a similar way, introduced several options to better research conducted for Deloitte by
But salary is a basic hygiene factor. Much complicated shift to cloud computing when competing for talent, the brand, match the needs of young people Millward Brown, millennials are more
more revealing were the three factors and artificial intelligence by humanizing and everything the brand signifies, seeking to balance career advancement likely to make decisions based on
that followed, in priority order: work-life the computing power with the robot differentiates the company and increases with social-action priorities and other personal values. Perhaps because of their
balance, opportunities to progress and Watson as spokesperson. In one its appeal. interests. One program provides an concern with purpose and their more
flexible working hours. In addition, there commercial, Watson sits in a circle opportunity to take a year off to pursue balanced, less careerist attitude toward
was a correlation between loyalty to the with other robots, attending a group What the brand signifies depends in charitable endeavors. Another program the workplace, millennials might be more
company and a belief that the company therapy session conducted by Carrie part on how the brand is communicated, enables young employees to spend a emboldened than prior generations to
had a purpose or stood for something Fisher, the only human in the room. A especially when competing for talent month in Kenya working on microfinance do the right thing.
meaningful. General Electric commercial features against B2C brands, which are faster- projects.
a conversation among millennial growing and more volatile. B2B brands
LinkedIn, the B2B social network, programmers comparing their new jobs. tend to be more stable. The 2016 J.P. Morgan allows young workers to INSIGHT
discovered similar results in a survey of A young man boasts about the apps he BrandZ Top 20 B2B brands have not spend a portion of their time helping
10,500 LinkedIn members worldwide. created with animals wearing funny hats. changed from the BrandZ B2B Top 20 nonprofits. Barclays developed a program
People said compensation was important, His friend describes how, working at GE, a year ago. In contrast, only 16 of the called LifeSkills, an online resource for
Millennials move but it was not the most important he can make hospitals more efficient. 2016 BrandZ B2C brands appeared helping young people gain the practical
into B2B brand factor when deciding to leave a job The commercial notes that an industrial in the 2015 B2C Top 20. The stability of knowledge needed for success in the
or accept a new one. Rather, people company also can be a digital company; B2B brands could suggest they are less workplace. Goldman Sachs changed the
leadership roles named career opportunity as the key it ends with the tagline: Get yourself a innovative than B2C brands. But stability tasks assigned to new bankers to make
motivator in switching jobs. Half of the world-changing job. also represents commitment and long- the work more varied and interesting.
A larger percentage of people millennials studied, compared with 28 term purpose, characteristics that appeal ING Banks Think Forward strategy
involved in decision-making at B2B percent of the baby boomers, expressed In these examples, 105-year-old IBM to millennials. emphasizes the need for its bankers to be
brands are now millennials. The concern about limited advancement and 124-year-old GE, which includes honest, responsible and prudent to make
implications of that are enormous
in terms of how these brands
opportunities. Similarly, 43 percent of Thomas Edison among its founders, Walk the talk things happen and help others succeed.
millennials, compared with 22 percent of relate as if they are millennial-generation
communicate, the channels they use,
the way they approach these people
baby boomers, said they sought more brands like Apple or Google. HP takes Even the most emotional and well-crafted The impact of
challenging work. a similar approach in an ad campaign
and the expectations this audience about reinvention. A commercial tied
message, broadcast across all relevant
social media, is insufficient, and probably
millennials Brand proposition
has. If you look at the large B2B
categories, the marketing leaders in
Providing opportunity is key, but as a in with Star Wars features a young man a waste of resources, if the actions belie The increasing presence of millennials in
influences appeal
recruitment advantage in a competitive creating a C-3PO robot in his familys
those organizations - often millennials marketplace, opportunity can be garage and having the robot deliver two
the words. The need to walk the talk is
especially relevant in financial services,
management positions raises questions of the workplace
themselves - are exploring an ever- strengthened when paired with purpose. Star Wars movie tickets to a surprised about how companies may change
where banks need to attract more
increasing array of marketing tools Companies that are innovative or seen and impressed young woman. The with their influence and leadership. BrandZ data shows that a strong
millennial customers and employees.
and techniques, using more video, as setting trends, seem to have a greater commercial is titled Reinvent Romance. The research conducted for Deloitte brand proposition or purpose
It is a virtuous circle.
more emotive messaging and more depth of purpose, according to BrandZ The voices of iconic B2B and B2C by Millward Brown compared the generates a greater sense that a
social media. They recognize that research. That purpose influences how technology brands resonate emotionally business priorities of millennials with brand is worthwhile. And when you
As wealthier clients age, banks need to
as the decision-makers they are people feel about the brand and, as it in part because both are increasingly what millennials perceived to be the cross that finding with the perception
attract younger customers with years
targeting are increasingly millennials, relates to employment, how effectively targeting the same prospective priorities of the current management. of the brand as a workplace, you find
of wealth accumulation still ahead of
they need to have a different kind of a brand can recruit and retain talented customers and employees. For the B2C Both millennials and current management a correlation. Brands with strong
them. Appealing to these customers
conversation with them. young people. brands that create ecosystems intended assigned priority to factors such as brand equity generally are seen
depends to a degree on also recruiting
to captivate customers with frictionless efficiency, ensuring the long-term future as better places to work. We are
Fraser Hynes younger staff to whom they can relate of the company, continuous professional beginning to see the importance of
Research Director Communicate the experience, emotional communication more naturally. However, bank efforts to improvement, and making the best what a company stands for. It is an
seems natural; for B2B brands it is a step
Millward Brown Corporate
brand emotionally change.
recruit millennials are hindered by bank possible products. important factor in attracting and
Fraser.Hynes@millwardbrown.com reputation problems, a hangover from
keeping talent.
Human resource departments typically the global financial crisis, but also the
Emotion also can be an important However, millennials said that they would
focus on the functional aspects of result of more recent, well-publicized Peter Walshe
differentiator. When choosing technology assign priority to two other objectives:
employment, such as compensation, regulatory misbehavior. In addition, BrandZ Strategy Director
vendors, IT directors typically consider creating services and goods that make
health benefits or vacation days, but financial technology competitors attract Millward Brown
only a few peer brands with comparable positive differences to peoples lives, and
emotional components are especially millennials with mobile banking options. Peter.Walshe@millwardbrown.com
reputations for functionality and creating jobs. Millennials also said it was
relevant when appealing to millennials. important to increase workforce skills and
81
service. If a rational assessment of the
Many of the leading B2B technology Many bank brands understand the
options does not yield a clear choice, to make the company the best possible
challenges. They are improving or
80
brands, renowned for rationality and place to work.

acquiring technology, and they are

Thought Leadership >TALENT
TALENT
TALENT IS THE
B2C brands find themselves competing
for the same pool of skilled millennials.
Recent studies, including the millennial
study by Deloitte in conjunction with ACTION POINTS
PREREQUISITE FOR HIRING
Millward Brown, highlighted millennials
demand to work for brands and
companies that they admire and to
have the ability to make a visible impact
MILLENNIALS
FOR BUILDING
within those businesses. Mary Meekers
Internet Trends report for 2015 agreed
1 Be present online
that millennials prefer businesses with
meaning and purpose.
B2B BRANDS
Millennials spend a lot of time researching companies. They
Millennials demand to make a visible
are interested not only in an organizations products and
impact ought to represent a golden
services, but also in its culture and values. And they search for
opportunity for B2B brands because, to
this information using social media and other online resources.
a large extent, people and skills are what
a B2B brand sells. Rather than simply
2 Offer challenging work

working for a brand they admire, those
joining a B2B business increasingly get
Vital to transition from successful the opportunity to embody the brand

itself to become its human face. On
opportunities
Compensation is important to millennials, and they
businesses to valuable brands

LinkedIn, many of the most effective B2B
will expect to be paid what they believe they are
brands follow this strategy using key
worth. But career advancement, not money, is the
employees and internal experts as the
number-one reason that millennials change jobs.
face of their thought leadership content,
and as a vital amplification strategy.
Christina Jenkins The brand that you present LinkedIn has been a part of the recent
3 Be flexible
Director, Global Go-To-Market Research Insights 2020 work led by Vermeer to This not only helps to build a stronger
LinkedIn
to your customers and future B2B brand, it also sends a clear signal to
share their unique analysis of the drivers
CJenkins@linkedin.com customers has never been more of customer-centric growth. When potential employees that they will have Millennials are career focused, but not in the same way
closely linked to the brand that we looked at the characteristics that the ability to make a difference, and as earlier generations. They want to advance at work, but
Emily Friedman you present to your employees distinguish successful customer-centric advance themselves personally, while they do not want to make unreasonable sacrifices in other
Senior Research Consultant working for that business. It turns the aspects of their lives. Work-life balance is important to them.
businesses, a sense of purpose and
LinkedIn and future employees. The interdependence of your talent brand and
EFriedman@linkedin.com the ability to hire the right talent stand
most successful businesses your company brand into a virtuous circle.
4
out as clear factors. Of top-performing
are those that can attract the businesses, 80 percent link everything Be purpose driven
right people, align those people they do to a strong sense of purpose From business to brand Given the option, millennials are likely to choose employers
and 79 percent have an employee
around a sense of common base that fully embraces that sense of whose values correspond with their own and whose
Brand strength has never been more
purpose, and use this to deliver customer-centric purpose. Significantly, important to B2B. As buying committees
brands are known for making the world a better place.
the customer experiences top-performing businesses also pay become more complex, its increasingly
5
much more attention to the need to hire important that a wide range of decision-
that increasingly differentiate
whole brain people who can translate makers within the business you target
Understand the differing job
one brand from another. We data and insight to solve the bigger have heard of you and that they have priorities of men and women
see this in the results of this business problem, bringing together a positive emotional response to you.
Men and women share the top reasons for changing jobs. They want
years BrandZ Top 100 Most creative thinking and problem solving. The division between businesses that
advancement, better pay and challenging work in that order. But their
are just B2B businesses and those that
Valuable Global Brands and attitudes differ somewhat. Women are more concerned with work-life
we particularly see it in the The link between talent have created valuable B2B brands will
balance and corporate culture. Men look for innovative, challenging work.
only become more marked. The BrandZ
BrandZ ranking of the Top 20 and brand purpose Top 20 Most Valuable B2B Brands shows
6
B2B brands. how to make the transition from one to
Hiring the right talent is essential to
the other. In it, we can see the growing
Look beyond your industry
83
building a purposeful brand but a
correlation between brand value and the In the early stages of their careers and eager to advance, millennials are
purposeful brand is also essential to
centrality of employees to that brand. open to moving into new job functions and even changing industries.
82
hiring top talent, especially as B2B and

Thought Leadership >TALENT
TALENT
PURPOSE IS
While its true that, on paper, working in may not be perceived as fitting neatly
oil and gas or banking isnt as attractive with peoples social and political beliefs,
as some other categories, there is a way theres an opportunity to enlist people
to inspire people about your business. Its with a vision of a new future, which could
CRITICAL ACROSS
not going to be the category or product/
service thatll attract people to you, but
excite them. Like many banks, Barclays
was negatively perceived when it looked ACTION
your purpose and how you strive to
materialize that purpose in the world.
internally to build their purpose from
within at a grassroots level. Barclays POINTS FOR
RECRUITING
ALL CATEGORIES
Every brand or business can develop a developed initiatives such as Digital
clear purpose, which provides a clear Eagles, in which the bank trained its
reason to exist beyond the category, a employees to be digitally competent and TALENTED
PEOPLE
galvanizing idea that drives the whole then deployed them as Digital Eagles
business forwards, and a role in society to help people in communities served by
FOR ATTRACTING
that people can genuinely get excited Barclays become more digitally literate.
about. Purpose can motivate young
Making it count
1 Be
people to consider a job offer; the right
purpose will inspire them to accept it.
your
imperfect self
YOUNG TALENTED
The magic in standing for something is
Standing for something only really released when you capture Share what youre trying to achieve
it within your business culture and with your business or brand, and
Plenty has been written about the Gen Y strengthen it so it becomes seamless what you believe, even if youre
/ millennial generation. Millennial beliefs through to an external reality. Businesses
EMPLOYEES
not there yet. Be transparent
have influenced how we all feel about the and brands in any category can use this about why you exist. For example,
world. Millennials see jobs as experiences as a hook to engage prospective, new automotive brands dont just
to enjoy before moving on and trying and current employees. People will be make cars; they are on a quest to
something new, they see technology as looking for evidence that the company increase societal mobility.
a way to facilitate a more flexible and walks the walk, not just talks the talk. For
balanced life, and they dont really care example, telecom provider O2s purpose
Purpose-driven employees 2 Involve others

about brands. is to enable customers to use technology
in order to access amazing experiences.
But they care deeply about ideals, about To engage employees in this initiative, the
help activate the brand

People want to contribute and will
making a difference, and being part of a brand launched it at The O2 Arena, and
have plenty of ideas about how to
cause or pushing for change. The brands 7,000 O2 employees attended.
make the purpose a reality. Enlist
they buy into are more likely to have
the help of younger workers to
a purpose that gives them more than Likewise, the Starbucks barista
generate new ideas, and give them
Most brand owners recognize building their understanding and passion the simple product or service. It gives personifies the brand and is its ultimate
a chance to implement changes,
for the brand until employees become them the chance to become an activist touch point. The baristas live out
that each individual in their which will empower them to
advocates capable of inspiring others. (Patagonia protecting the environment, the brand purpose. To a great degree,
organization plays a role in Lush fighting against animal testing and Starbucks empowers its people to take
become advocates.
bringing their brand to life. It sounds simple, but of course its for human rights), be part of a movement local initiative and represent the brand,
Theyre aware that employees incredibly difficult in practice. Budgets, (Starbucks rebuilding local community, instead of controlling the local experience
impact how the brand is

perceived across a range of
priorities, location, category, changing
trends (including shifting generational
attitudes about work) all combine to
Airbnb creating a global network
of belonging), or join a tribe (Nike
collective activity).
from headquarters. The employees are
often the ones driving the activation of
the brand in the most relevant way.
3 Flex and adapt
People want to work differently
touch points, and that employee make it a challenge to recruit and retain than in the past, with careers
the right talent to achieve brand and The businesses that started with, or have It requires a change in how businesses becoming a range of experiences
involvement can help transform
business goals. created a motivating brand purpose and behave, and more importantly how and not a linear journey. Use this
a product or service into a useful use it to authentically activate the brand, they engage with others. People expect to your advantage by creating
and meaningful brand that has In particular, many businesses and brands are going to find it easier to encourage transparency they want to know who project-based roles for young
an active role in peoples lives. worry that their brand isnt sexy enough, these young people to join their business. you are and what youre trying to achieve, enthusiasts to come in and tackle
Emily Smith their category isnt relevant enough, or But purpose is not just a tool for brands and why it benefits their world. They a specific challenge, and use their
Brand Director
To truly achieve best-in-class employee their business isnt sustainable enough to like Airbnb and Patagonia. Its just as want to know what you believe, and not ideas to shape the future. Contract
Added Value
E.Smith@added-value.com contribution, businesses need to capture attract talent, and in particular, younger relevant, perhaps even more so, for just what products you make. And they with people on deliverables not set
85
their employees hearts and minds, by workers. businesses like banks, oil companies and want to be a part of that higher purpose. working hours, to allow freedom to
soft drink brands. While the brand today work in their own way.
84
Added Value is a global strategic marketing consultancy that helps iconic

brands around the world by delivering marketing strategy that works.

Thought Leadership >INTERNET OF THINGS
INTERNET OF THINGS
INTERNET Picture this: Youve just installed a smart washer in your home that integrates with other Internet
OF THINGS
of Things (IoT) devices. It texts you when a load is complete and tallies each time the washer is
being used. The IoT washer keeps track of how often its being used to make intelligent decisions
about when the user may be running low on detergent. The washer then uses that data to offer
replenishment or coupons on detergent or dryer sheets. The smart washer is providing value
CHALLENGES
to consumers by saving them time and anticipating their needs. Therefore, the brand that is in
partnership with the IoT device object can capitalize on the data and provide personalized value
to consumers. Because IoT has the ability to become an intimate part of consumers everyday
lives, brands need to consider a variety of factors before jumping into the Internet of Things. To
BRANDS TO
secure their place in the future of IoT, brands need to think forward to a connected reality.
ESTABLISH VALUE,
First, think value. For a brand to engage purpose of the object and how it flicking connected home lights burglars
in IoT, it has to identify the value its makes consumers lives easier. Thinking have learned whether or not a house is
going to barter in exchange for the practical also applies to the steps a occupied. Branded IoT devices should
EASE, SECURITY
users data and make sure that provided user will take to set up the device; its position themselves as trusted guests
value is important enough to invite the imperative for a smart device to be when they are invited into peoples
device into a home or workplace. IoT an easy integration. Anything greater homes, keeping personal data under
devices must earn their place in peoples than a three-step process is a setback lock and key. Although stronger security
lives by exchanging value for that in the device being regularly adopted. methods are in the works, the general
data. Some valuable offerings include The introduction of IoT hubs are meant advice is to let the actual connected
sending a notification once a threshold to provide a system to alleviate those devices be as simple and non-descript
Position the brand as a trusted

is met, resetting preferences after a additional setup steps when new as possible. The goal is to leave
certain time, or perhaps automatically devices are brought into the home; personalization and decisions to a cloud
reordering an item when trust has been for example, the user simply turns the that is secured and that the user has
guest in customers home established between the user and the

connected object. The capabilities and
new device on and the hub does the
rest of the connected integration. Even
opted into.
integrations of IoT are endless, and the Amazons Dash button drew fire from In closing, brand activation in the
type of value they offer to everyday reviewers for a supposed complicated Internet of Things is going to have to be
consumers is up to the brands setup, despite the number of steps. centered around value, practicality and
security to win consumers trust. Think
Second, think practical. By design, Third, think security. With IoTs ability of what the world will look like over the
IoT objects serve a defined purpose to capture data and personalization, next five years when the simplicity of
and have limited awareness of their security becomes a paramount IoT has come to fruition when its been
surroundings (depending on user priority. Nothing loses a users trust adopted well and become the essential
settings). This makes connected devices faster than a breach of their data. everyday device we all hope it could be.
easier to design, integrate, and more Unfortunately, some webcams have IoT is more achievable than we think and
stable. Brands should take that as been compromised, giving hackers a has the potential to be a brands trusted
direction and focus on the everyday full-view inside peoples homes, and by companion.
Jarrod Ramsey
Rockfish is a digital innovations partner that drives The Store WPPs IoT Innovation Kit enables agencies and brands to get the
87
Vice President, Mobile Technology
Rockfish business for some of the worlds leading brands by most out of the available IoT technology to create unique retail and shopper
building ground-breaking solutions.
86
Jarrod.Ramsey@rockfishdigital.com experiences. To find out more, go to: www.internetofthingsage.com/iot-kit

Regions &
Countries
Regions and Countries >OVERVIEW
5 Regions and Countries
NORTH
The 10 most valuable North Technology, telecom providers and consumer and business-to business
American brands increased 10 e-commerce retail brands drove the brands. A value increase of 59 percent
majority of value both in North America made Amazon the fastest riser in
percent in value to $1.26 trillion,
and Asia. The category mix was more the 2016 BrandZ Global Top 100;
about 37 percent of the total diverse in Continental Europe and the Facebook was third with a brand value
value of the BrandZ Top 100
AMERICA
UK. The Continental Top 10 increased increase of 44 percent. (Starbucks,
Most Valuable Global Brands. 5 percent in brand value, and all the another North American brand, was
The Asia Top 10 contributed European brands increased in value, the second-fastest riser.)
led by the Spanish apparel brand Zara,
the second-largest proportion
which had a 14 percent value rise. The Six of the Asia Top 10 declined in
of Global Top 100 brand value, results reflected the strengthening of value. However, with a value rise of
around 11 percent, driven Europes economy. In contrast, all but 22 percent, Huawei ranked in the
TOP 10
primarily by China. But because three of the UK Top 10 declined in value. BrandZ Global 100 Top 20 Risers. The
of the slowdown in Chinas The UK Top 10 decreased 8 percent. brands record sales of smartphones,
economy, the BrandZ Asia Top particularly in Europe, drove the
All of the North American brands increase. Four Latam brands, all beers,
10 declined in value 8 percent
increased in value except for two iconic and five of the UK Top 10 brands, rank
to $359.6 billion. technology brands, Apple and IBM. in their respective categories but do
LEADS IN
Both declined 8 percent, indicating how not reach the value threshold of the
the pressures facing the technology Global Top 100 ranking.
category affect both business-to-
NORTH Brand Brand Brand Value
PERCENT
Value Value % Change
Rank Brand Category 2016 $ Mil. 2015 $ Mil. 2016 vs. 2015
AMERICA 1 Google Technology 229,198 173,652 32%
TOP 10
2 Apple Technology 228,460 246,992 -8%
VALUE RISE
3 Microsoft Technology 121,824 115,500 5%
Brand Value Change
4 AT&T Telecom Providers 107,387 89,492 20%
+10% 5
6
Facebook
Visa
Technology
Payments
102,551
100,800
71,121
91,962
44%
10%
North America Top 10 7 Amazon Retail 98,988 62,292 59%

Total Brand Value
8 Verizon Telecom Providers 93,220 86,009 8%
$1.26 trillion 9 McDonald's Fast Food 88,654 81,162 9%
About 37 percent of the total value 10 IBM Technology 86,206 93,987 -8%
91
of the BrandZ Global Top 100
Source: BrandZ / Millward Brown (including data from Bloomberg)
90

Regions and Countries >OVERVIEW
ASIA Brand
Value
Brand
Value
Brand Value
% Change
TOP 10 Rank Brand Category 2016 $ Mil. 2015 $ Mil. 2016 vs. 2015
1 Tencent Technology 84,945 76,572 11%

Brand
Value
Brand
Value
Brand Value
% Change
UK
Brand Value Change
2 China Mobile Telecom Providers 55,923 59,895 -7% Rank Brand Category 2016 $ Mil. 2015 $ Mil. 2016 vs. 2015
TOP 10
1 Vodafone Telecom Providers 36,750 38,461 -4%
3 Alibaba Retail 49,298 66,375 -26%
-8%
Brand Value Change
2 HSBC Global Banks 20,276 24,029 -16%
4 ICBC Regional Banks 33,637 38,808 -13%
Asian Top 10
5
6
Toyota
Baidu
Cars
Technology
29,501
29,030
28,913
40,041
2%
-27%
3
4
BT
Shell
Telecom Providers
Oil & Gas

18,575
14,940
17,953
18,943
3%
-21%
-8%
Total Brand Value 5 BP Oil & Gas 10,552 12,938 -18%
China
7 Construction Regional Banks 19,617 22,065 -11% UK Top 10
Bank Total Brand Value
$359.6 billion 6 Tesco Retail 8,923 9,410 -5%
8 NTT Telecom Providers 19,552 N/A N/A

The Asia Top 10 contributed the
7 Lipton Soft Drinks 8,554 N/A N/A
$136.7 billion
second-largest proportion of 9 Samsung Technology 19,490 21,602 -10%
Global Top 100 brand value, driven
8 Barclays Global Banks 7,509 8,835 -15%
The diversified UK Top 10 ranking
primarily by China. Because of the includes two oil and gas brands,
10 Huawei Technology 18,652 15,335 22%
slowdown in Chinas economy, the 9 Dove Personal Care 5,448 5,314 3% two global bank brands, and two
Asia Top 10 declined in value. Source: BrandZ / Millward Brown (including data from Bloomberg)
telecom providers, as well as one
10 Next Apparel 5,206 5,973 -13% brand apiece from the retail, soft
drinks, personal care, and apparel
categories.
CONTINENTAL Brand Brand Brand Value
EUROPE Rank Brand Category

Value
2016 $ Mil.
Value
2015 $ Mil.
% Change
2016 vs. 2015
Brand
Value
Brand
Value
Brand Value
% Change
LATIN
TOP 10 1 SAP Technology 39,023 38,225 2%
Rank Brand Category 2016 $ Mil. 2015 $ Mil. 2016 vs. 2015
AMERICA
Deutsche
1 Skol Beer 6,743 8,500 -21% TOP 4
Brand Value Change 2 Telecom Providers 37,733 33,834 12%
Telekom 2 Corona Beer 6,626 8,476 -22% Latin American
+5%
3 Louis Vuitton Luxury 28,508 27,445 4% Top 4 Total Brand Value
3 Aguila Beer 3,270 N/A N/A
4 BMW Cars 26,837 26,349 2%

4 Brahma Beer 3,269 4,185 -22% $19.9 billion
5 Zara Apparel 25,221 22,036 14% Source: BrandZ / Millward Brown (including data from Bloomberg) and Brand Analytics
The four brands from Latin America
Continental Europe appear in the BrandZ ranking for
6 L'Oral Paris Personal Care 23,524 23,376 1% the beer category but not in the
Top 10 Total Brand Value
BrandZ Global Top 100.
Mercedes-
7 Cars 22,708 21,786 4%
Benz
$263.8 billion
8 Movistar Telecom Providers 21,945 21,215 3%
The Continental Europe Top 10
is comprised of three telecom 9 Herms Luxury 19,821 18,938 5%
93
providers, two car brands, two
luxury brands, and one brand each
92
10 Orange Telecom Providers 18,465 17,384 6%

from technology, apparel, and
personal care. Source: BrandZ / Millward Brown (including data from Bloomberg)

Regions and Countries >BRAZIL
BRAZIL
Resilient Brazilians The consumer mood Older Brazilians, who had endured earlier
INSIGHT periods of high inflation and economic
Brazilians attempted to remain optimistic volatility, had hoped that enduring
stability had finally been achieved.
face reality with self-

through the last election, hoping that
political change would solve their Having tasted the good life, they are now
problems. Prior to the election in the reluctant to give it up. Young people,
fall of 2014, 75 percent of Brazilians having experienced only the good life,
now worry about being able to afford it
reliance and resolve

reported feeling optimistic, according to
TNS research, but only a year after the to someday purchase a car or a house.
election, the portion of the population High unemployment has forced them to
feeling optimistic plummeted to only 25 be more entrepreneurial.
percent.
Meanwhile, members of Brazils wealthy
Brands help consumers navigate challenging times It was as if much of the nation reached elite, known for their consumption of
a therapeutic moment at the same luxury, have not stopped purchasing.
time and discovered the same insight. But rather than spend their money
With a sense of crisis fatigue, Brazilians, during overseas trips, they are buying
Brazilian consumers faced Brazilians have in the past endured Deep crisis is particularly members of the middle class, merchandise in Brazil, where luxury has
many cycles of inflation and deflation, become less expensive. >>
reality, and it was ugly a
economic boom and bust and opportunity to concluded that self-reliance supported
by private initiative was the only way to
perfect storm of economic
crisis, political corruption and
government turnover with a determined
optimism that things will somehow get
build trust protect and improve their living standard.
epidemic disease. better, because they always have. This It is important to invest in brand
crisis is different. Better off, with more to and corporate reputation now.
Only a few years ago, demand lose, and more informed and connected Brazil has survived many crises
for oil and other commodities to the rest of the world, Brazilians have
lost patience and trust in the system.
and it will survive this one. It is only BRAZIL TOP 10
a matter of time until the country Brand Brand Brand Value
drove a booming economy, the Value Value % Change
begins to grow again. Meanwhile,
middle class was expanding They still believe that their lives will Rank Brand Category 2016 $ Mil. 2015 $ Mil. 2016 vs. 2015
it is necessary to keep building
exponentially, purchasing improve, but an experience-hardened brands and maintaining important 1 Skol Beer 6,743 8,500 -21%
power was rising and Brazil was realism has replaced their vague stakeholder relationships, because
acceptance that somehow things will 2 Brahma Beer 3,269 4,185 -22%
looking forward to assuming its when the economy recovers, as it
work out. Brazilians do not expect 3 Sadia Food 2,010 2,757 -27%
rightful place on the world stage surely will, consumers will again
progress to resume until the political have money to spend, and they will
during the FIFA World Cup in problems are resolved, which now 4 Bradesco
Financial
1,920 5,202 -63%
spend it on the brands they trust. Institution
2014 and the Summer Olympics include the impeachment of Brazils
Eliana Paschoalin Financial
two years later. president. They find some hope next 5 Ita 1,875 4,315 -57%
Director Institution
door in Argentina, where the national
That was then. Today, slower global mood improved following an election Burson-Marsteller 6 Antarctica Beer 1,383 1,859 -26%
economic expansion, particularly and change in leadership. Eliana.Paschoalin@bm.com
7 Bohemia Beer 1,153 1,309 -12%
reduced demand for commodities,
impedes Brazils economic growth. Brazilians are convinced that for real 8 Natura Cosmetics 826 1,700 -51%
Plunging oil prices and scandal damaged change to happen, they can no longer
9 Ipiranga Retail 824 1,072 -23%
Petrobras, Brazils state-owned and depend on luck, or even government,
formerly well-respected oil and gas but only on themselves. Disenchanted 10 Cielo Credit Cards 664 941 -29%
brand. Corruption charges tainted World with their political leaders, consumers Source: Brand Analytics
Cup preparations, and the prospect are more likely to turn to the private
of the Olympics no longer generates sector for support, potentially opening
excitement, except perhaps in Rio de an opportunity for brands to play an
Janeiro, the host city. And as if these increasingly important role in helping
95
problems were not challenging enough, individual consumers live better lives.
the Zika virus adds a tragic public health
94
crisis.

INSIGHT INSIGHT
Coping strategies Although some brands have reflexively

resorted to price promotions, others Coca-Cola went back to the future,
Middle-class consumers are developing have commanded premium pricing lowering prices by marketing beverages
coping strategies to protect what because even while feeling economic in recyclable glass bottles that save
they have, and, to the extent possible, duress, middle-class consumers are production costs. It also partnered with
still enjoy life. Shopping baskets are not willing to surrender all their gains. Subway to provide training programs.
becoming more complex as consumers The drug store channel has done a The telecom provider Telefnica, along
trade down on some items to save good job of adding value, for example, with several financial services brands,
money for selected premium items. because consumer are not simply including Ita and Porto Seguro, created
E-commerce is growing rapidly, not shopping for products but also relying programs to incubate start-ups and
only because it is convenient, but also on advice. encourage innovation, particularly
because it facilitates price comparisons. among young people. Positive
Some local brands prospered because messaging from the educational brand
of prior experience adapting to Brazils Anhanguera envisions a better future
BrandZ Top 50
Because of recently imposed higher tax
Most Valuable Latin
Middle class feels rates for imported alcohol, consumers
are shifting to local brands and
economic cycles. Foreign exchange
rates impacted local brands less than
through learning.
Brands, retailers American Brands 2015
determined to increasingly favoring craft and imported the multinationals. Generally, brands Two major sporting events, the World join together for
have attempted to make their offerings Cup and the Olympics, were expected to
improve life premium beers. Even in these troubled
times, consumers want to experiment, more affordable and to develop elevate Brazil onto the world stage, but better future The report profiles the most
valuable brands of Argentina,
and also to devote some spending to initiatives to help consumers navigate because the World Cup disappointed Brazil, Chile, Colombia, Mexico
The middle class has learned a lot through challenging times. and its preparations became embroiled The economic crisis is forcing and Peru and explores the
affordable treats, such as ice cream
during this crisis period. They are in corruption charges, fewer brands consumers to rationalize their socio-economic context for
and coffee. Consumers are also buying
treating it differently from past purchasing and it has affected
crises, when they waited for the
premium yogurts. Brands advance are investing in the Olympics, except
how they select brands. Stores
brand growth in the region.
for official sponsors, such as Coca-
government to act or until the crisis
People are eating out less and
social initiatives Cola, McDonalds and the bank brand are closing at the fastest pace we For the BrandZ Top 50 Most
ended. Now these people are much Bradesco. have ever seen. Retailers cannot Valuable Latin American
preparing more meals at home. And
more aware of what is happening, of Many brands have responded to respond effectively by themselves.
when eating out, people are visiting Brands, please go to www.wpp.
their own goals and of society. And Brazils crisis with initiatives that help Brands are trying to meet consumers This crisis has brought retailers and
fast food restaurants. Some of the fast com/wpp/marketing/brandz/
I have seen research that says these people and strengthen consumer where they are, to offer whatever brand manufacturers together. They
food brands are experiencing strong brandz-latam-2015
people are optimistic about their relationships with the brand. Unilever is sliver of the good life or indulgence is are challenged to build a future.
sales and adding more premium items
own lives. I believe that they feel offering free webinars to help women possible. As consumers work to rebuild Unfortunately, because in Brazil
to their menus to appeal to consumers
less dependent on the government compete in the workforce. Avon has prosperity, brands have an opportunity we usually look at the short term,
trading down from fine or casual dining.
than in the past. They believe that programs to empower women. Brands to help them. there is no clear guidance about the
Food trucks are a new phenomenon;
theyve achieved success so far are also connecting with consumers future and how long it will take for
McDonalds launched a gourmet burger
because of their own initiative and through a shared sense of purpose. the economy to improve.
truck in So Paulo.
the help of family or friends, not the The natural cosmetics brand Boticrio,
Julio Gomes
help of the government. They are for example, promotes sustainability
Managing Director, Latam
determined to keep moving ahead and diversity.
Kantar Retail
regardless of what is happening in
Julio.Gomes@kantarretail.com
the country.
Cleber de Almeida
Planning Director
Ogilvy & Mather
Cleber.Almeida@ogilvy.com
97
96

Thought Leadership >LOCAL BRANDS
LOCAL BRANDS
CULTURE, Global brands aim to remain relevant and competitive in Latin America while small local brands
BETTER QUALITY,
increasingly rise and engage consumers. For Latinos, the importance of belonging to a community
is extremely high. Peer acceptance and influences count more than an individual point of view
on a decision-making process. The community values its local culture and local habits as a way
to reinforce its identity in a globalized world. This sense of belonging is a cultural characteristic
LOWER PRICES
Latinos have inherited from post-colonial times, when together they had to build solid nations.
DRIVE RISE OF With that in mind, its not difficult to understand why local
brands are able to create such a strong emotional connection
with Latino customers. These brands usually sustain an
companies started their own businesses, and many of them
entered the informal economy. As a result, the ILO suggests
that micro and small businesses are now the engine of job
LOCAL BRANDS
equation that global competitors find hard to beat: cultural creation in Latin America.
identity + improved quality + lower prices. Not surprisingly, over
the last few years as the creative economy grew stronger, Latin On the other side, we have global brands thirsty to penetrate
America saw a huge rise of micro and small local businesses. the Latin America region and gain share of market among
This created an even larger network of local services and Latinos. But these brands are still perceived by many
products conceived by and for Latino consumers. According consumers as expensive, faceless and rootless mega-
to the International Labour Organization (ILO), an agency of corporations. So what can global brands do to remain strong
Global brands also can the United Nations, workers who were once employees of big and be more competitive in this scenario?
dance to the Latino beat

5 TIPS TO GET A LATINO BEAT
1 4
Enhance the sense of community and peer connection Work in partnership with local brands and help
by climbing down from the pedestal and letting consumers find the small and micro businesses that
consumers participate on the business by reviewing, can serve their needs. Claro Telecom, for example, is
rating and co-creating products and services through working in partnership with Brazil-based cosmetics
smart digital strategies. company Natura to give Natura sales consultants free
data to interact with potential customers via its app.
2
Be the one to identify and embrace a local cause. Far
5
from being chauvinistic nationalist movements, they One last fact that, now more than ever, represents
are about supporting ones neighborhood, ones city, an opportunity for global brands to be popular with
ones region. For example, knowing that urbanization Latinos is the new arrivals of refugees and immigrants
is accelerating and that public transportation is quite to the region. Latin America has become even more
poor in Brazil, the bank Ita created an integrated diverse and tolerant over the last few years. According
Leticia Arslanian Beatriz Portas system of bicycles that are available all over the big to the UN, the total number of people who applied for
General Manager Strategic Planner
Geometry Global Geometry Global cities, facilitating Brazilians everyday life. asylum in Brazil has increased by over 930 percent
Leticia.Arslanian@geometry.com Beatriz.Portas@geometry.com between 2010 and 2013. In 2016, brands that promote
new encounters, and serve the needs of newcomers as
3
Recognize and celebrate the local culture through well as those who seek to welcome them, will probably
marketing and design. As an example, Coca-Cola and win the love of many Latinos.
99
Bradesco changed their iconic red colored brand to
blue in order to celebrate a Brazilian tradition from the
98
Geometry Global is the biggest activation agency in the world. Our business North called Parintins Festival.
is transforming brand equity into action and inspiring people to buy well.

BRAND
BUILDING
ACTION
POINTS
1 Sound hopeful
Sound neither too optimistic, because it is not believable,
nor too pessimistic, because it is not helpful. Be realistic and
straightforward. Make it clear that the brand is committed to
helping consumers, both to rebalance their lives during this difficult
period and to prosper again when economic growth resumes.
2 Empower people
Consumers have become more self-reliant. But they need help to
navigate through the current crisis and be better prepared for the
future. Having become skeptical that government can fix their
problems, consumers are more receptive to private enterprise,
which opens a role for brands to engage with consumers in ways
that are brand relevant and socially constructive.
3 Provide solutions
Brazilian consumers want to sustain the life they have come
to enjoy. They dont have the same purchasing power,
but Brazilians feel more in control of their lives. Help them
make choices and feel good about the choices they make.
Give them opportunities to enjoy small indulgences.
4 Tailor messages
In these economically stressful times, Brazilians want to buy more
with less. They accomplish that goal with sophisticated shopping
and social media use, and are most receptive to thoughtful brand
messages that show real understanding of their individual needs.
5 Partner with retailers

Manufacturers and retailers are increasingly collaborating
in Brazil to better understand consumer behavior and
to discover the products and messages that will draw
1
consumers into stores and turn them into paying customers.
10
Photograph by Cecilie stergren
0
10

Regions and Countries >CHINA
CHINA
Consumers continue Improved to purchase a raw-milk supplier as part
INSIGHT of the effort to ensure food safety by
Chinese brands controlling the entire supply chain.
In another move to enhance its food
spending despite
The improvement in Chinese brands in
technology and add premium products,
part relates to associations they have
Bright Dairy prepared to purchase
formed with international brands. With
Tnuva, Israels largest food producer,
these connections, Chinese brands
from corporate parent Bright Foods.
economic slowdown
have gained access to industry global
best practices, while overseas brands
And Chinese brands rapidly innovated,
gained access to the Chinese market.
sometimes out of necessity. The
Smithfield, the US meat processor
difficulty of transacting business at
acquired by the Chinese meat producer
traditional banks, for example, helped
Shuanghui a few years ago, opened a
Local market-driven brands increase strength
inspire Chinese Internet leaders to
US-style plant in China.
develop mobile payment apps. It is likely
that over the next few years, the search
Dairy brand Mengniu worked to
engine Baidu, e-commerce giants
Despite slowing GDP growth BrandZ research conducted soon Despite tax change, improve food safety with its partners,
Frances Danone and Denmarks Arla
Alibaba and JD.com, and Internet portal
after the stock market declines revealed Tencent will create more complete
and stock market fluctuations,
that consumers might postpone, but spending on luxury Foods. Chinas Bright Dairy prepared
financial services platforms. >>
Chinese consumers
continued to spend across
not cancel, big-ticket purchases such
as homes, cars, and vacations, and
happens overseas
most categories. Confident planned to continue spending on
that the government could necessities. An earlier study of 26 FMCG
The relaxation of the import tax on
luxury is intended to drive more
CHINA TOP 10
categories by Kantar Worldpanel found Brand Brand Brand Value
sustain prosperity, people domestic consumption. It also has the Value Value % Change
that consumers were even willing to pay
still expected to achieve a beneficial side effect of assisting in Rank Brand Category 2016 $ Mil. 2015 $ Mil. 2016 vs. 2015
a premium for certain products, such the anti-corruption drive by keeping
better life for themselves and as those related to health and well-
1 Tencent Technology 84,945 76,572 11%
funds within our borders. My sense,
their families, a goal that the being, while they looked for bargains on Telecom
however, is that there has not yet 2 China Mobile 55,923 59,895 -7%
government articulated in products considered commodities. been a huge shift to purchase within
Providers
2014 as the Chinese Dream. China compared with purchase 3 Alibaba Retail 49,298 66,375 -26%
For the first time, market-driven brands, abroad, which seems to be how the Regional
rather than state-owned brands, 4 ICBC 33,637 38,808 -13%
top end of luxury offerings are still Banks
produced over half the total value of the purchased. 5 Baidu Technology 29,030 40,041 -27%
BrandZ China Top 100, and five of the
Top 10 brands were market-driven. Just Alexander Runne China
Regional
Chief Strategy Officer 6 Construction 19,617 22,065 -11%
two years ago only two of the Top 10 Banks
Bank
brands were market-driven. Ogilvy & Mather Group, Shanghai
Alex.Runne@ogilvy.com 7 Huawei Technology 18,652 15,335 22%
In addition, Chinese brands achieved
8 Ping An Insurance 16,910 15,959 6%
parity with multinational brands in
Brand Power, a BrandZ measurement 9 China Life Insurance 16,712 17,365 -4%
of brand equity. Brand Power parity Agricultural Regional
means that overall, Chinese brands are 10 16,331 20,189 -19%
Bank of China Banks
perceived as favorably as multinational Source: BrandZ / Millward Brown (including data from Bloomberg)
brands; being foreign is no longer
such a strong differentiator for
multinationals.
3
10
2
10

INSIGHT
INSIGHT INSIGHT
Alibaba gained access to innovation expected to become firmly established Multinationals gained wider access to
through its investments with Indian in the US with the acquisition of General China, especially to its smaller cities and
online marketplaces Paytm and Electrics appliance division. rural markets. High-volume goods like
Snapdeal. Similarly, Chinas taxi-hailing diapers and other baby care items have
brand Didi Kuaidi invested in two similar Tencent exported its online games, easier access. In these categories, the
operations, Ola in India and Lyft, Ubers trying to build a large and revenue- lower import tariffs have enabled entries
Multinationals main competitor in the US. Tencent, driving global audience. In contrast, from South Korea and Japan to be price
adopt China-first invested in Indian healthcare start-up
Practo.
some Chinese brands first establish
themselves overseas and then return to
competitive with premium multinational
brands made in China. International
strategies, local China with greater credibility, a strategy wellness and cosmetics brands are
brands go global Going global followed by OnePlus, which sells
smartphones in around 40 countries
enjoying easier access to the Chinese
market.
and regions.
Brands in the energy and technology These relationships fit with the Chinese
sectors are increasing their presence government agenda to help Chinese More mobile
in a truly glocalized manner. brands compete more competitively Multinational Improved local Some emerging
We are seeing many international with multinationals at home or abroad. challenges brands level the
About half of all e-commerce in China
brands first build
companies adopting a China- The governments One Belt, One Road happened on mobile devices, compared
first strategy, whereas more local program aims to create a modern With only a few category exceptions, playing field with just over a fifth in the US and awareness outside
companies are going global. And it is around a third in the UK. The implication
to no ones surprise that in order to
trading network that emulates Chinas
economic preeminence during the
being an international brand is
There had been a big gap in many for brands is clear: consumers are on of China
no longer a sufficient advantage smartphones at least two hours a day,
accomplish their goals, companies period of the Silk Road. categories between foreign brands
in China. Following safety issues, according to GroupM, and mobile is the Some of the emerging Chinese
are pivoting toward digital not only and local brands, but the gap has
Chinese consumers preferred to place to engage them. Internet users in brands enjoy greater market share
out of infrastructural necessity In certain categories, technology been closing for a long time. Local
purchase powdered milk for infants China totaled 668 million in June 2015, abroad than they do in China. For
but also out of strategic urgency, and appliances in particular, Chinese brands have genuinely improved
from multinationals, but local brands and 549 million of those users, almost example, the handset manufacturer
in a hope to maximize reach with companies are rapidly transitioning across categories in product delivery
now offer imported milk products. 90 percent, accessed the Internet on a One Plus is better known overseas
minimal investment or risk. Global from original equipment manufacturers and branding. Foreign brands have
International car brands dominate the mobile device. than in China, where they trail local
energy brands, for example, are (OEMs), making products marketed come down in price to become more
market in Chinas major cities, but the leaders. One Plus even made it into
either strengthening their own digital by others, to well-established global accessible and local. It is a much
vehicles often are locally produced. In other words, the number of Internet Time Magazines Top 10 Gadgets
capabilities or partnering with local brands. Lenovo, the worlds largest PC more level playing field.
tech companies to extend their reach users in China is more than twice the 2015 list. These smaller brands
maker, continued to grow its PC, mobile To stimulate domestic consumption, the Stephen Drummond population of the US and almost equal manage their brands quite differently
in a competitive market in which and enterprise businesses outside of government introduced cross-border Chairman and Chief Strategy Officer to the population of Europe, and most of compared with the major brands.
traditional sales channels are very China and gained 68 percent of total e-commerce zones with lower tariffs Y&R those Internet users are walking around
much occupied by local players. In revenue from overseas business in 2015. Daisy King
on imported merchandise. As a result, Stephen.Drummond@yr.com with smartphones. These numbers alone
technology, brands like Alibaba are Head of China Specialty Practice
Chinese consumers enjoyed lower would appeal to any brand marketer, but
investing in Indian start-ups as a way Huawei, originally a maker of Burson-Marsteller
online prices and faster delivery for there is more.
to diversify and also gain access telecommunications equipment, built its Daisy.King@bm.com
imported goods. The first cross-border
to innovation. The Chinese brands smartphone business by offering quality e-commerce zone was established The total number of Internet users still
have innovated to solve consumer products at more affordable prices than in March 2015 in Hangzhou. The represents less than half of Chinas
problems in China, and they have Apple or Samsung. The brand shipped government planned to set up zones population of over 1.3 billion people.
done a good job. The question is over 100 million smartphones in 2015, a in Shanghai, Guangzhou and 10 other And penetration is lower in rural China.
whether they can adapt to create 44-percent year-on-year improvement. cities. A big brand opportunity is about to
meaningful innovations that solve Haier, the home appliances brand, is
problems in a wider international become bigger.
context.
Honwai Fong
Planning Director
5
10
OgilvyOne
Honwai.Fong@ogilvy.com
4
10

Thought Leadership >CHINA
CHINA
AS FOREIGN Its important to fully understand the historical context to appreciate where we are today
BRANDS BECOME
with regard to the foreign-local brand dynamic in China. Flashback more than 20 years
to when there was a black and white distinction between premium foreign and local
brands in most categories. In the 1970s and 80s low quality local products were the norm
and Chinese consumers had to accept that reality, they literally had not much choice.
MORE LOCAL,
LOCAL BRANDS As foreign brands usually everyday
FMCG products entered China in
the 1980s, they initially had a kind of
brands have got their act together.
What was once a gulf between foreign
and local brands has become a grey
Theres another notable perspective
on how Chinese consumers see foreign
brands. Chinese consumers see the
IMPROVE IN
rarified status, with sexier packaging, area in terms of product quality and presence of foreign brands as a positive
exotic names, a promise of better importantly consumer perception. competitive force (even if they dont
quality and, of course, status. But these buy them) because foreign brands
brands had a high price tag to match, In the mid-90s Chinese department drive improvements in Chinese brands.
becoming aspirational but out of reach. stores were full of bland boxes posing as Many Chinese consumers support
PRODUCT QUALITY
For example, 20 years ago there was TV sets or washing machines while the the presence of foreign brands, but
high demand for Lux bar soap grey foreign brands positively dazzled next to not necessarily because they offer
imports over the locally made version. them, in contrast. These days, however, better status or (especially not) value,
While there was no real difference in youd be hard pressed in a blind brand but because their competitive quality
the product, people were willing to test of the actual products to tell the presence has actually pushed local
pay for an imported premium. Colgate difference. The real difference remains in brands into improving. In contrast to
Higher quality, greater choice,

toothpaste was widely available and the price tag between a TCL and a Sony some western markets where foreign
had extremely high preference ratings and, of course, the brands status, but brands are often politically demonized
linked to its foreignness (it was fully the pragmatic Chinese consumer has for taking local jobs and compromising
lower prices benefit consumers imported), but at 13 renminbi, compared

to the local price for toothpaste of
largely woken up to that. local brands and businesses, the
Chinese see foreign brands as having an
around 2 renminbi, few consumers Its important to note is that every important role in improving life in China.
could justify the price gap. category has its own unique story >>
in the foreign-local dynamic. Luxury
Over the last two decades there have remains almost exclusively the domain
been many changes to this foreign-local of European brands not unlike the
dynamic. International brands have had rest of the world. There are now a
to make themselves more relevant by dizzying array of configurations which
making themselves more accessible have muddied the whole, once simple
in pricing and they have invested a divide in the foreign-local dynamic.
lot in making themselves culturally In many categories Chinese consumers
appropriate. They have become more now have these grey area choices
local. At the same time many Chinese (Please see Brand Provenance Becomes
Complicated on next page).
Stephen Drummond
Chairman and Chief Strategy Officer
Y&R China
Stephen.Drummond@yr.com
7
10
Y&R is one of the worlds leading full-service advertising agencies, distinguished
6
10
by our proprietary knowledge, analytic rigour and creative solutions.

BRAND PROVENANCE
BECOMES COMPLICATED
Categorizing a brand as strictly Chinese or foreign has become complicated
because of interrelationships that include the following variations:
1 Foreign brands including prestige

brands that are now made locally 5 Chinese brands acquired and
manufactured by international companies
Most models from the big three German luxury Zhonghua Toothpaste, Chinas national toothpaste
brands, Audi, Mercedes and BMW are made in China. brand, has been made under license by Unilever for
Consumers know this but it has not dented the decades. Unilever as a recognized brand in its own
prestige foreign association of the brand. right in China has merchandised the fact that the brand
is now made to International standards.
2 Foreign brands with unique

Chinese characteristics
6 Chinese brands with
internationally-sourced ingredients
In the race for relevance, many foreign brands have
adopted Chinese ingredients. Pantene (and others) use This is relatively recent phenomenon driven heavily
black sesame a traditional Chinese essence believed by recent food and safety scandals, particularly in
to make black hair blacker. milk, general dairy and infant formula. For example
Biostime, a Chinese milk formula company sources all
3 Foreign brands launching locally its products from France and heavily promotes that
competitive economy versions fact. It also shows the financial power of many cash-
rich Chinese companies as they seek brand credibility.
Colgate set the pace with the launch of a low price,
anti-cavity toothpaste in the late 1990s, which made
the brand directly competitive with local brands. Since
then Nestle has introduced a snack wafer for 1 renminbi
7 Chinese brands seeking
international stature
and P&Gs Tide launched a locally priced version to go Li-Ning, a sportswear brand, endorses a number of
head to head with improving local brands like Diao Pai. athletes and teams, both in China and around the
world. The brands many sponsorship deals, past and
4 Foreign Brands that have been present, include basketball stars such as Shaquille
bought by Chinese companies ONeal and Jos Caldern of the New York Knicks, and
Glenn Robinson III of the Indiana Pacers. The appliance
Roewe is a vehicle marque created by the Chinese brand Haier, and Lenovo, the technology brand,
automaker SAIC Motor in 2006. Roewe vehicles leverage their global popularity to reinforce their
were initially based on technology acquired from credentials in China.
defunct British carmaker MG Rover. SAIC was unable
to purchase the rights to the Rover brand name and
created the Roewe marque as a replacement.
9
10
8
10

THE BRANDZ
Unmasking the Individual
BRAND BUILDING
Chinese Investor
CHINA REPORTS
This exclusive new report
NEW provides the first detailed
ACTION POINTS
examination of Chinese
investors, what they think
about risk, reward and the
In-depth brand-building brands they buy and sell.
intelligence about todays China This will help brand owners
worldwide understand
The opportunity to build brands in China is market dynamics and build
greater than ever. But so are the challenges.
The fastest growth is happening deep in

sustainable value.
The Power and Potential

1 Be different
As local Chinese brands improve in quality,
the country, in less well-known cities and of the Chinese Dream multinational brands are pressured to be more Chinese
towns. Consumers are more sophisticated The Power and Potential of - to add something meaningfully different to the lives
and expect brands to deliver high-quality
product and services that show real
understanding of local market needs.
the Chinese Dream is rich
with knowledge and insight,
and forms part of a growing
of Chinese consumers and Chinese society. Conversely,
Chinese brands expanding abroad, having developed
their distinctiveness in the context of Chinese society,
4 Localize offerings
The next question is whether or not to convert those
library of WPP reports about now must find relevance in their new country markets. insights into actions that make a global brand more
China. It explores the meaning
WPP has been in China for over 40 years. We locally relevant, and whether or not to devote the
and significance of the
know the Chinese market in all its diversity distribution and operational investment behind a
Chinese Dream for Chinese
2
and complexity. This experience went into strategy that may include a portfolio of brands that
our series of BrandZ China reports. They
consumers as well as its Prepare for a new reality differs from tier to tier.
potential impact on brands.
will help you avoid mistakes and benefit from Brands entering China will encounter unfamiliar
the examples of successful brand builders. The Chinese Golden Weeks ways of conducting business. The extensive use of
5
in Fast Growth Cities
Using research and case
digital and social networks enables a high level of Balance media mix
one-to-one marketing, which requires developing
studies, the report examines the right technology, determining the most effective Mass-market brands face the difficult challenge
the shopping attitudes platforms, and creating relevant messages. Social of needing one clear piece of communication
and habits of Chinas rising
media ecosystems are less collaborative than in other that reaches the moms doing family shopping in
middle class and explores
markets. Brands unprepared for China may find lower-tier cities while remaining relevant to those
opportunities for brands in
many categories. themselves disadvantaged. in the first-tier cities. The message needs to reach
a broad audience with traditional media, while
The Chinese New Year at the same time it needs to connect with young
in Next Growth Cities opinion leaders through digital engagement
The report explores how Chinese
families celebrate this ancient
festival and describes how the
3 Gain insight
It is one thing to know that China is a nation of 1.3
strategies. For the lower tiers, shopper-marketing
engagement strategies might be used.
NEW holiday unlocks year-round billion people, and it is another thing to translate that
6
opportunities for brands and dry demographic fact into useful insights about that
retailers, especially in Chinas population, particularly the individuals living in Chinas
Be aware of government
lower-tier cities. smaller cities or the rural countryside. initiatives
The end of the one-child policy and Chinas
commitment to the global climate change accord
has implications for certain categories and brands
BrandZ Top 100 Most Valuable Chinese Brands 2016 generally. The larger point is that government policy
The report profiles Chinese brands, outlines major trends impacts the market definitively and quickly.
driving brand growth and includes commentary on the
growing influence of Chinese brands at home and abroad.
For more information about the

BrandZ library of China reports,
1
To download any of these reports, and to view related videos,
11
please turn to the Resources section
please visit www.brandz.com/ChinaInsights. To download
at the end of this report, or contact
0
iPhone or Android apps, please visit www.brandz.com/Mobile.

11
David Roth at David.Roth@wpp.com.

Regions and Countries >INDIA
INDIA
Indians are hopeful for INSIGHT
Reaching diverse
change, but impatient

audiences
Facing Indias multifaceted complexity, Brands communicated differently to
brands identified at least one clear these two groups. For the more future-
to see it happen
demarcation: the one that separates focused middle class, some brands
the India of people who are aspirational produced short videos that set the
and ambitious, willing to experiment brand story in the context of recent
and try new things, from the more cultural issues, such as gender identity.
conventional India, which is often called To reach the broader audience, brands
Consumers choose culturally relevant, purposeful brands Bharat, an earlier name for the country
that today refers to people, usually from
communicated in more traditional,
category-specific terms. >>
rural areas, who adhere more closely
to ancient traditions while also living a
Two years ago Indians, were More Indians than ever are enjoying
a better life. Indias GDP outpaced
Consumer demand contemporary life.
lifted on a wave of optimism.
They believed that the election
those of all large industrialized nations, depends on more
of a new prime minister
expanding 7.3 percent in fiscal 2015, in
part because low oil and commodity
job opportunities INDIA TOP 10
heralded the end of stagnation prices controlled inflation. But for the Brand Brand Brand Value
Many of the plans that consumers
and the start of a rapid rise to urban middle class, transformation did Value Value % Change
heard from the new government Rank Brand Category 2015 $ Mil. 2014 $ Mil. 2015 vs. 2014
a future of greater wealth and not happen as quickly as expected.
after it took office two years
equality for both urban and 1 HDFC Bank Banks 12,577 9,425 33%
ago have involved large and
The government has aimed immediate
rural citizens in a connected economic-development initiatives at
complicated infrastructure projects. 2 Airtel
Telecom
11,039 8,217 34%
Providers
India. Today, people are small town and rural India. Its most
It will take some time to see the
outcome of all this investment. The State Bank
hopeful but impatient. recent budget designates nine pillars 3
of India
Banks 9,374 6,828 37%
impact on the economy depends on
of economic transformation, with
several factors, including severity of
the primary emphasis on supporting 4 ICICI Bank Banks 5,122 3,536 45%
the monsoon season and whether
agriculture and farmers with measures
or not all the new projects produce 5 Asian Paints Paints 3,867 2,812 38%
like electrification and crop insurance. In
employment opportunities and
addition, an especially severe monsoon
social improvements. At that point, 6 Bajaj Auto Automobiles 3,345 3,034 10%
season interrupted progress across the
we will see stronger demand for
economy.
consumer goods. 7 Hero Automobiles 2,907 2,164 34%
Indians are preternaturally patient, Aditya Kilpady 8 Axis Bank Banks 2,494 NEW N/A
however. Change rarely happens quickly Senior Vice President Planning
Kotak
in this country of 1.25 billion people with Contract India 9 Banks 2,394 1,721 39%
Mahindra Bank
a 5,000-year-old civilization, significant Aditya.Kilpady@contractindia.com
cultural variation across regions, 10 Maruti Suzuki Automobiles 2,318 1,510 54%
religions, and 23 official languages. Source: BrandZ / Millward Brown (including data from Bloomberg)
From the BrandZ Top 100 Most Valuable Indian Brands 2015
3
11
2
11

INSIGHT INSIGHT
Some brands attempted to adjust Rise of local Purpose-led marketing rural India. Unilevers Brooke Bond Red
products and advertising for cultural Label brand dramatized tea drinking
distinctions that varied by region and
Indian brands as a shared human moment with a
even state. A local Indian bottled-water The structure of the Indian market
commercial showing Muslim and Hindu
brand based in the state of Tamil Nadu Most Indians experience life as a provided consumers with wide brand
neighbors crossing a religious divide to
modified the mix of minerals from city to confluence of traditional and modern choice not only from local brands, but
sit around a kitchen table and connect
city to accommodate local tastes. tributaries that they constantly monitor, also primarily from multinationals and
over a cup of hot of tea.
Paper Boat, an Indian soft drink brand, adjusting the mix to fit the particular from Indian family conglomerates,
recognized a countertrend to the occasion. Wedding rituals can evoke such as Tata and Reliance. With so
The Rise campaign of automobile
nations accelerated forward motion, ancient spiritual connections, for much choice, a consumers purchasing
brand Mahindra supported
a growing nostalgia for the India that example, while the afterparty will rock. decision increasingly depended on
entrepreneurial aspiration. To remind
appears in the rear view mirror. Paper the level of innovation and disruption
people that LG devices add happiness
Boat revived interest in formerly popular This dynamism in part explains the rise that a brand introduced, and the
to peoples lives, the brand conducted
but difficult-to-find flavors, creating of certain local Indian brands such perception that a brand existed both for
a study to learn what makes Indians
beverages customized with various as Patanjali, which offers a range of commercial reasons and as an agent of
happy and in what parts of India people
Penetration levels fruits and spices for local tastes. consumer products influenced by Indian social change.
are the happiest (Chandigarh and Delhi). Brands increase
and brands drive Other brands developed products,
heritage and Ayurvedic ingredients.
Many Indian consumers also believe that A growing sense of Indian national pride
In a campaign called Feeding Dreams, purpose-led
Kelloggs pledged to feed breakfast to a
more consumption such as dating apps, positioned along local brands better understand rising has emerged, as is evident in movie
disadvantaged child for each call made communication
the fault line between old and new. aspirations and local tastes. theaters in Mumbai, where audiences
to a special phone number.
The days are over when brands Intergenerational contention is less sing the national anthem before We will see more Indian brands
just entered the market and found fraught in India than in many other Other factors influencing the growth screenings. Of particular importance with purpose-led communication.
Ultimately, Indian consumers
consumers waiting to pick them cultures. Even though in dress and of local brands included: a rise in for brands, this patriotism crosses This means that brands will have to
increasingly were inclined to select
up. The penetration story now mobile phone use Indian young people the quality of local Indian brands, as generations and is encouraged as part stand for more than just a product
brands that offered the promise
will depend on the next burst of resemble youth elsewhere, their Indian entrepreneurs meet the needs of the educational curriculum. benefit. Brands will need to establish
of good functionality, local market
consumers getting a lot more commitment to tradition often runs of increasingly sophisticated Indian understanding, honesty and a sense a higher purpose that will inspire
money, and it will depend on the deep. consumers; better pricing to meet the Many brands introduced purpose-led consumers towards brand loyalty
that the brand was also a participant in
government creating more jobs to expectations of Indias value-conscious communications. Unilever involved and engagement. Today, for example,
the effort to improve life for individual
create more wealth to put more Even the practice of arranged marriage consumers; and the nationalistic Lifebuoy soap and other brands in the brand Mahindra has a campaign
Indians and build a more prosperous
money into the economy. Telecom persists, although it is changing and sentiment resulting naturally from campaigns to promote better hygiene in called Rise, and the purpose of
and equitable India.
penetration, for example, has brands are finding opportunity in that peoples improved circumstances the brand idea is about how Indians
reached its optimum level. The transition. The dating app Truly Madly and also encouraged by government should rise and take charge of their
battle now will be more about value has become popular, with the number programs. lives and livelihoods. It is aimed at
extraction and consumption. of downloads in both large cities and catalyzing entrepreneurship in the
more rural areas suggesting that cultural The popularity of local FMCG brands country for a better and stronger
Madhukar Sabnavis
change is not restricted to the major also reflected skepticism about larger tomorrow in India.
Vice Chairman and Director - Client
urban centers. corporations, whether multinational or
Relations Radhika Shapoorjee
Indian, and reaction to the food safety
Ogilvy & Mather
issue that hurt a widely trusted brand
BrandZ Top 50 President, India & South Asia
Madhukar.Sabnavis@ogilvy.com Most Valuable Hill+Knowlton Strategies
of instant noodles last year. Local
Radhika.Shapoorjee@
brands also benefited from the ease of Indian Brands 2015
hkstrategies.com
access to consumers and relatively low
communications costs facilitated by This ground-breaking study analyzes the success
social media. of Indian brands across 13 categories, examines
the dynamics reshaping the Indian market and
offers insights for building valuable brands.
For the complete library of BrandZ reports about India,

please go to wpp.com/wpp/marketing/brandz/india-50-2015/
5
11
4
11

Thought Leadership >INDIA
INDIA
BRANDS MUST Winning hearts in India begins with
1
ALWAYS NAVIGATE
appreciating the fascinating winds of Value is cool
change in recent years. Its like wooing.
First comes interest and appreciation, Post-Libbers are smart, pragmatic and value
conscious. To them, affordable doesnt mean poor
which deepens to complimenting and
THE TENSION
quality. Indigo Airlines, a local low cost carrier
inspiring each other. Finally, comes love changed the business mantra for domestic travel. In
and devotion. With median age of around a country always in hurry but never on time, Indigo
27, about 10 years younger than USA, took on legacy carrier and other low cost carriers
India is a youthful nation. Among the key with a simple yet unexpected on-time promise,
BETWEEN
drivers of change is the Liberalization proving that if the promise is delivered, paying less
doesnt mean getting less.
Generation, born after the 1991 political
and economic reforms.
2
TRADITIONAL AND
Unlike previous generations that lived on simplicity, Performance matters
restraint and adjustment, the Post-Libbers were more than lineage
born into a world of fast foods, cola, satellite TV
and technology. They are ambitious, driven and Ten years ago, where were the home-grown stars
MODERN INDIA
entrepreneurial. Their world is a heady cocktail of e-commerce site Paytm, the OLX online marketplace
ambition, abundance and immediacy. and Paper Boat, maker of soft drinks in nostalgic
flavors? Each brand found a need in the market. OLX
Another driver of change in India is the tension let anyone buy and sell from home, for example. Each
between India and Bharat (the original name for brand built trust based on competence, not special
India). Two Indias coexist, the modern India of the credentials.
upwardly mobile urban middle class and a more
Great opportunity awaits brands

3
traditional Bharat India in lower tier cities, also
leading a contemporary lifestyle, but more deeply Heritage holds power
that understand cultural nuances
rooted in family and traditional social values. Both
manifestations of India offer opportunities for brands In less than a decade, Patanjali recorded a turnover
that understand the nuances. Dominos Pizza, for higher than other FMCG companies managed over
example, provides efficient delivery to time poor decades. Besides getting the price right, it innovated
executives in Gurgaon, while in Gorakhpur it offers a and focused on product efficacy. Most important,
delightful outing for families who want to experience a Patanjali offered a range of contemporary products
cuisine out of the routine. inspired by Hindu and Ayurvedic traditions.
4
To enjoy brand success in India, consider these
bulleted recommendations and the following four Tradition meets change
insights:
Dating has always been nebulously defined in India.
Is dating a casual meeting or a special romance?
Deliver value through a promise, not just price.
Women from smaller cities were hesitant about online
Build trust by performance, empathy and
dating because of safety issues and personal pride
innovation.
in a society where many marriages are still arranged.
Teach, train and reassure the hungrier India from
Truly Madly, a local dating app redefined a taboo
lower tier towns.
called dating by providing platform for discovering
Contract is an integrated communications companionship.
by Aditya Kilpady
7
company specializing in Advertising,
11
Senior Vice President, Planning
Contract India Consulting, Design and Digital, creating
brand conversations for Indias iconic brands.
6
Aditya.Kilpady@contractindia.co.in
11

INSIGHT
INSIGHT
BRAND BUILDING
ACTION POINTS
5 Target the individual
to sell the community
1
In India, a communal society, the selection
Be relevant of a particular brand by one person
Multinationals Provide a product that is meaningfully sometimes influences other members of
must confront different, that consumers need and a community to purchase it too.
Brands illustrate new local brands

want, and that reflects genuine
cultural understanding.
social relevance
with online videos
6
Made in India is becoming a
buzz word. Leading multinationals, Have a conversation
2
brands especially in personal
Consumers expect a dialogue, not a
Many brands are producing short
care and the food and beverage Be personal brand-led monologue. Ask consumers
films, perhaps three to ten minutes
categories, are feeling threatened
long, to distribute on social media Communicate in a personal way that how the brand might help them
for the first time by local players.
and show how the brand seamlessly recognizes the individual consumer and before telling them why it is better.
These smaller brands as well as
fits in with moments in daily life. One the level of sophistication that Indian
some older Indian companies are
womens apparel brand, created a consumers generally have achieved.
planning to launch many product
series of short films around womens
variants and also enter new
7
empowerment through different
themes like same-sex relationships,
categories over the next couple of Be inspired
years. Multinational FMCG brands
3
single motherhood, pregnancy
need to take action to safeguard See India not only as a vast market for
affecting careers, etc., and it was
themselves.
Provide convenience selling products and services, but also as a
well received. Through this use of
Indian consumers traditionally seek place for finding the talented people and
media, brands are not overtly selling Nimmi Mathen
convenience, which is often achieved creative ideas for launching new products.
products, but rather making a socially Account Direct / Manager Creative
relevant point that inserts them into Development Solutions - South Asia today with mobile apps that make it
the cultural conversation. Millward Brown easier to shop, pay and receive delivery.
Nimmi.Mathen2@millwardbrown.com
8
Siddhanth Hoskote
Account Director Be current
Millward Brown
4
India is changing so quickly that even
Siddhanth.Hoskote@ Forget one-size-fits-all last years research about India could
millwardbrown.com
There are many Indias, each quite different lead to false assumptions. For the best
from the next. Prepare to modify global return on investment, keep up to date.
templates for local activation, region by
region, state by state, or even city by city.
9
11
8
11

I N A NAT ION OF SHOPK E E PE R E N T R E PR E N E U R S , CONSU M E R S U N DE R STA N D A N D A PPR ECI AT E BR A N DS .
1
12
0
12

Regions and Countries >RUSSIA
RUSSIA
INSIGHT
Economic crisis Looking abroad

purchasing continues, for example,
but some luxury consumers are more
likely to buy a practical item like a dress
The trade relationship with China
instead of an expensive handbag.
impacts spending
is expanding, with Chinese goods
available online. Russian foods, including
Consumer coping chocolate and juice, as well as other
strategies products, are more available in China,
across categories
which in the past year opened several
cross-border e-commerce zones. In
The initial reaction when the economic
these zones, foreign goods are imported
crisis began in late 2014 was to spend
at lower tariffs, making them more
money today because tomorrow could
price competitive and helping the
be worse. Since then, the consumer
Chinese government achieve its goal of
Brands and consumers resort to coping strategies mentality has matured. Consumers are
more resistant or skeptical about brand
stimulating domestic consumption.
messages.
Meanwhile, Russian brands across Brands promote
several categories are developing
rapidly, usually for domestic heavily to drive
Russian consumers are familiar Purchasing has declined across their marketing investment. They are The key coping strategies are: trading
with economic crises, but the categories and price deflation is not aggressively attempting to grow down, buying less, buying on promotion,
consumption but sometimes for more consumption
export. The toothpaste brand Splat
significant. Consumer efforts to save market share, but rather fighting against and replacement. Russian consumers
pain feels deeper this time. is popular and competes effectively One can say that the Russian people
money primarily impact durable each other and Russian competitors to look for products that are good enough
Plummeting crude oil prices are goods, such as cars, where the average protect the share they already have. and offer value for money. They wait for
with multinationals. The supermarket move from one crisis to another, and
slowing the growth of Russias brand Magnit has effectively expanded a crisis occurs every five or six years.
purchase price has dropped. Real sales. And while meat consumption is
modern retail.
oil-dependent economy. Trade estate values softened, with the impact
Brand challenges growing, people are replacing beef with But this crisis is a little different. In
sanctions imposed after the varying by location. The decline in chicken, which is less expensive. Also, past crises the economy dropped
Several Russian heritage or Soviet- but rebounded immediately. People
real estate signals a larger problem, they are eating out in restaurants less
nations incursion into Ukraine During the past decade, successful era brands have transformed to be
because real estate investment is a often. And the need to economize has were used to this kind of cycle. Now,
are not helping. People have component of personal savings. Travel
multinational brands focused on much more efficient and consumer- oil prices dropped to the bottom and
reaching members of the expanding encouraged a DIY trend and the rapid
less money to spend and also suffered, with overseas bookings expansion of the home improvement
centric, including Sberbank, which the economy has not rebounded.
and aspirational Russian middle class. has refurbished its branches and also
they are trying to save, which down significantly. retail category. Therefore, people are making less
The fragile economy dampened introduced mobile banking, and the
weakens consumption. money, which they try to save rather
middle-class expectations. Meanwhile, state transportation brands, Aeroflot
Unlike the Chinese, the Russians have Consumers have changed not only what than spend. This behavior affects
Russias economy evolved during the and Russian Rail.
limited faith that their government they buy, but also where they shop, consumption. Many brands have
fast-growth years, producing factors
can fix the problems. The hopeful particularly for packaged goods. They resorted to promotional tactics with
that compound the challenge facing Both business-to-consumer and
sign for Russia is that oil prices may are more likely to visit modern retail less investment in media.
multinationals, including: better quality business-to-business technology
have bottomed out and the ruble may outlets, which have expanded rapidly
local brands, Chinese imports adding is advancing in Russia, although Roman Kostyuchenko
gain strength. Meanwhile, Russian and generally offer lower prices than
more choice and lower prices, and exports usually are usually confined Head of Strategy
consumer efforts to save money are traditional shops.
private-label options further crowding to Russian-speaking neighbors, with Young & Rubicam
accelerating the ongoing shift to local
the market. some exceptions. Yandex is present Roman.Kostyuchenko@yr.com
brands, which have increased in quality E-commerce has also changed Russian
throughout the Russian-speaking
and are generally priced lower than shopping habits, with increased
In addition, Russia is experiencing a region, but also in Turkey, the UK and
multinational brands. numbers of Russian shoppers visiting
demographic shift. Ten years ago, Israel. Russian entrepreneurs developed
when the economy began to take off, Chinas Alibaba site or the Russian
the widely used cloud-based messaging
This trend is evident in FMCG equivalent, AliExpress. Diapers are
the birth rate boomed as the middle service Telegram, but it is based outside
categories, where Western among the categories purchased most
class anticipated economic growth of Russia.
multinationals have achieved low frequently online. A Japanese diaper
and marketers focused on the younger
penetration compared with their brand is especially popular. The shift to
generation. Government efforts to support Russias entrepreneurs can proceed on projects
presence in other major markets. e-commerce reflects growing Internet
technology sector include recent that rely on know-how and expertise,
Private-label brands also are and smartphone penetration. Russias
Today the median age is just over 39, regulatory changes that placed certain but they face a financial barrier in
commanding greater market share. In
3
Internet penetration rate exceeds
12
around the same as in the UK, and restrictions on foreign Internet brands. industries requiring investment, in part
these difficult economic circumstances, 70 percent, substantially higher than
much older than the median age in The challenge for local Russian brands because of the economic sanctions
with consumers shopping for price, Chinas.
2
India, which is 27. Consequently, the imposed by the US and EU.

12
is a lack of venture capital. Russian

most multinational brands are limiting
spending mentality has changed. Luxury

Thought Leadership >RUSSIA
RUSSIA
BRAND
BUILDING
ENTREPRENEURIAL Past and future collide in
Russia, impacting brands ACTION
POINTS
RUSSIAN BRANDS
Russians are living in at least three or four decades at the
same time. If you consider healthcare administration, we
1 Be practical
are living in the 70s. At the same time, and this is what
EXPAND CHOICE
is amazing in Russia, some aspects of technology have
leapfrogged ahead of Europe. Taxis are a good example.
This is not the first period of economic stress that
Soon after Uber entered Russia, the Russian company
Russian consumers have endured. They experienced
Yandex, similar to Google, developed its own taxi service,
scarcity of material goods during Soviet times and
which is much more effective and efficient than Uber.
FOR CONSUMERS
are excellent at coping and innovating practical and
Russia has a combination of archaic problems that most
peer-to-peer solutions. Provide practical solutions
of European society has sorted out long ago, while
for the need to do more with less.
simultaneously, Moscow is one of the most modern cities
in the world.
It would be shortsighted to focus on digital and technology

2 Be personal
Consumers respond to brands that
Western brands too expensive alone. If Russians have lost 60 percent of their purchasing
power in dollar terms with the current economic downturn,
communicate in a personal way, and
Russians are mobile and digitally-savvy.
for many Russian people

the overall economy has become much more competitive
and new brands have emerged in categories as unexpected
as beauty care. The successful deployment across Europe
of Natura Siberica is a good example of how some Russian
3 Meet growing expectations
Despite the difficult economic times, Russian
marketers have managed not only to reapply best design consumers are looking for something more
The Russian recession has deeply hurt western brands, which practices, but also develop a unique brand proposition with from brands, whether it is a lower price,
have become in just a year too expensive to purchase for the cosmetics made of natural ingredients from the worlds higher quality, better service, or more
vast majority of Russians. And while Russian consumers are still largest forests. And the combination of relatively low costs, convenience. Offer something distinctive.
struggling to substitute western brands for Russian ones, ironically, good marketing skills and a scalable domestic market, will
4
transform in the future some of the strongest Russian brands
there are an increasing number of Russian brands that have
into serious contenders to FMCG global brands.
Build credibility
successfully crossed the frontiers to enter the global stage.
Having been disappointed with some brand claims
Last, but not least, living in the largest country in the world
in the past, Russian consumers now pay close
in land area; Russians have already developed the industries
Not surprisingly, todays Russian fast- businesses and consumers. In addition attention to ratings and reviews. It is especially
and the brands to join the dots across a country that stretches
growing brands have much less to do to the seven Russian platforms (search, critical that brands earn positive ratings, because
over 7,500 miles. Transport is probably the next big thing to
with oil and state ownership than their social, portal) that are already among they are an important measure of credibility.
watch in Russia, especially with the prospective impact of
predecessors. They are entrepreneurial the worlds top 50 websites in terms of the 2018 FIFA World Cup, which will be organized in Russias
Pierre-Emmanuel Mahias
Director of Strategy Mindshare
and some of them are consolidating
their leading position at the forefront
of innovation and technology. For
traffic, the last three years have seen
the fast development of newcomers
emerging from the Russian digital
five key cities. Indeed, both national players such as Aeroflot
and Russian Railways have been through an unprecedented
modernization and are now expanding their reach across the
5 Plan two steps ahead
During the depths of the economic crisis, many
GroupM of the big brands focused on retaining customer
example, Kaspersky is one of the worlds sphere, such as the franchise World of world taking advantage of market deregulation and low
Pierre.Mahias@mindshareworld.com
top security software makers for both Tanks a massive, multiplayer online labor costs in Russia. In parallel, private airlines such as S7 loyalty with low prices. Newer challenger brands
gaming platform. keep growing and expanding the number of destinations. The entered the market that were even more price
same applies to Russian Railways, which is not only building aggressive or differentiated in a meaningful way.
speed trains between key Russian cities, but also taking These new brands are not going away.
significant stakes in the European railways.
Mindshare is a global media agency network with billings in excess of US$34.5 billion. The
network consists of more than 7,000 employees, in 116 offices across 86 countries spread
throughout North America, Latin America, Europe, Middle East, Africa and Asia Pacific.
The recession is also an outstanding opportunity for Russia to
become the economic contender it was before the fall of the
6 Be opportunistic
For brands considering entering Russia this
Soviet Union, as evidenced by the comeback of the legendary
5
can be a good time to invest because prices
12
Lada car brand in European markets, competing in the fast are low. Many of the European retailer
GroupMs primary purpose is to maximize performance of WPPs media agencies by operating growing, low-price segment.
4
brands are expanding in Russia now.

12
as leader and collaborator in trading, content creation, sports, digital, finance, proprietary tool
development and other business-critical capabilities.

Regions and Countries >INDONESIA
INDONESIA INSIGHT
Brand marketers face

But differences such as these have lives, and they are being influenced by
always been synonymous with an ever greater range of media often
Indonesia. Diversity runs deep through using several at the same time.
this nation, which unites 17,000 islands,
major but complicated

700 languages and dialects, and 300 For the businesses seeking to build
ethnicities. Whats exciting now is the brands here, these winds of change
sense that Indonesia is entering a new, signal a great opportunity. Not only do
pivotal stage in its development, and people have more money to spend, they
opportunities Divided loyalties that the consumer and brand landscape are buying a greater range of products
is, therefore, on the cusp of tremendous and are increasingly interested in
the complexity change. brands. They are also increasingly likely
of winning repeat to become brand advocates; research
shows that consumers are 29 percent
purchase Consumers are more
As consumers look to balance modern life and tradition
more likely to recommend a brand to
sophisticated family and friends than they were just
Lasting loyalty to a single consumer three years ago.
goods brand is rarely seen in
Just five years ago, building a brand in
Indonesia. Consumers are loyal, but
Sizeable social forces are This contrast, not just between rich and
not in quite the same way as we see
Indonesia tended to involve two steps: Kantar Worldpanel data show that
shaping modern Indonesia poor but also between the countrys first, ensuring national distribution of consumers are shopping less frequently
in other markets. We have identified
rich heritage and the onslaught of the product, and second, achieving than before, but for a more varied
some old, some new and four types of loyalty behavior through
modern life, is evident all over the analysis of Kantar Worldpanel widespread visibility on television. Those range of goods. In 2013, the average
to understand their effects country. Cybercafs, designer boutiques days are gone, and a very different Indonesian family bought from 45
shopping data. Those consumers we
is to begin to appreciate the and traffic jams are juxtaposed with the call shifting loyal move between dynamic is at work. Consumers are now different product categories over the
changing expectations and simplicity of life for those who remain two brands in a category and have far more sophisticated and selective; course of the year up from 43 just a
opportunities of the Indonesian reliant on the land and the sea for their loyalties to them both. Split loyal they expect a more complex relationship year earlier. >>
livelihoods. Tiny street-side warungs shoppers choose between a small with the brands they make part of their
consumer market. repertoire of brands they feel a bond
family-run shops often crafted from
with, and switchers show loyalty to
wood still have a place in a retail
This is a land of contrasts and the brands offering the best deals at
landscape that runs from wet markets
contradictions. There is tension the times they shop they arent really
to gleaming malls.
between young and old, modernity and
tradition, aspiration and risk-aversion.
loyal at all. Exclusive loyal consumers
are those who stick only with their
INDONESIA TOP 10
Urbanization is intensifying, as Brand Value
Overwhelmingly though, this is a market chosen brand, and in Indonesia and Rank Brand Category 2015 $Mil.
Indonesias cities act as beacons of neighboring Malaysia, we see very
being driven forward by the youth of its
opportunity; the number of Indonesians few of these people. Most consumers 1 BCA Banks 9,918
population among the youngest in the
living in urban areas is expected to are in the shifting or split loyalty
region and by the energy of its people. 2 BRI Banks 8,285
reach 71 percent of the total population, categories. Divided allegiances are
or 209 million people, by 2030. And the reality of loyalty in this market. 3 Telkomsel Telecom Providers 6,373
There is growing wealth in Indonesia; Brands need to get themselves on
while city-dwellers have much in
many millions of people are enjoying that mental shortlist of preferred 4 Mandiri Banks 6,153
common, there are still significant
their first taste of discretionary brands that consumers have when
distinctions between the countrys they shop, and must acknowledge 5 A Mild Tobacco 5,882
spending, as they move from
urban centers. Jakarta is the countrys that even apparently loyal fans are
subsistence living to stability and the 6 Matahari Department Store Retail 2,145
financial powerhouse, a cosmopolitan susceptible to last-minute switches
ability to plan. The ranks of the middle
place with a worldly population, while when a competitors deal is sufficiently 7 BNI Banks 2,042
classes, meanwhile, are expanding
the city of Yogyakarta, just an hours attractive.
apace, and are forecast to represent 8 Surya Tobacco 1,939
flight away, has a distinctly different
between 130 and 140 million people Delia Nugraheni
flavor, retaining greater closeness 9 Dji Sam Soe Tobacco 1,767
by 2030. At the top end of the income Account Manager
to Javanese heritage and traditional
spectrum, a small but significant group Kantar Worldpanel 10 Marlboro Tobacco 1,669
values.
of super-rich is living truly luxurious Delia.Nugraheni@kantarworldpanel.com
lives.
7
12
6
12

Regions and Countries >INDONESIA
BRAND
BUILDING
With an increasingly alluring consumer key to its success. Now, however,
INSIGHT
ACTION
market, however, also comes more
intense competition from newcomers.
In 2013 alone, there were 173 new food
the role of saliency has declined
significantly, and it is a brands ability
to make a meaningful connection with
POINTS
brands launched in the country, 61 new a consumer that matters most. It is no
1
drinks brands, and 26 new names in longer enough to be visible; brands
personal care. must have something relevant to say Make branding a priority
after they get noticed.
4
Now is the time to focus on branding; Indonesian
This all makes the task of brand owners
consumers are more than ever aware of and Be locally relevant
more challenging, as they seek to be Advertising has tremendous power to
engaged with brands. They talk about brands
heard above the growing chorus, and help consumers identify the brands and Local brands dominate the BrandZ Indonesia
and recommend the ones they love. BrandZ
it is also more complicated. Brands products that can enrich their lives. But Top 50, and Indonesians take tremendous pride
research finds that businesses in Indonesia that
need to ask a new set of questions: to advertise successfully in Indonesia in home-grown success stories. But multinational
nurture the power of their brands are four times
How well does the brand meet the means achieving a delicate balance brands can succeed in this market by tailoring
more valuable than those that do not.
functional needs of consumers? Are between reflecting cultural values that their attributes to the Indonesian market not just
they communicating the brands story resonate across a diverse nation, and Beyond belief with a local look, but by making a locally relevant
in a meaningful way? And how does this at the same time being sufficiently
the role of faith in connection with consumers. Multinational brands
combination of story and function make
people feel?
creative to stand out in a cluttered
advertising environment. modern Indonesia 2 Build trust
Economic crises have shaken this market, and
can help consumers resolve the tension they feel
between wanting to maintain traditional values
and their desire to be worldly and modern.
To many international brand managers, Successful brands both local and A global study of Muslim wary consumers seek out brands they feel
and to the most successful and nimble international are telling stories that consumers by Ogilvy Noor has are safe. Emphasize scale, a long history, and
5
brands in Indonesia, these are questions reach across the diversity of modern popularity to foster consumer trust. For instance,
they are already addressing, but they Indonesia, and helping people navigate
identified two main groups of
people: traditionalists, who are almost 90 percent of the brand value in the Be present in multi-media
are especially important to appreciate the tensions they manage as their lives strongly anchored in the traditional BrandZ banks ranking is concentrated among
Innovation in digital services and digital media
now. Indonesian people are seeking change. teachings and practices of Islam, just three brands that far outperform other banks
investment drives up a brands value. The Top 5
out the brands that help them embrace and futurists, the mostly young on measures of fairness, responsibility, and trust.
most valuable brands in the BrandZ Indonesia
modernity, progress and technology Few Indonesian brands have Muslims who feel that faith helps ranking invest much more in digital compared to
- but without having to sacrifice their established a global presence, but them live better modern lives the lowest-ranked brands. Technology can make
3 Create emotional connections

heritage and spiritualism. those pioneering names expanding and assert their individuality. The service brands more accessible, and digital
across the region are doing so from more digitally savvy futurists are communication in this mobile-driven market is
Local relevance a strong position in this complex and reflective of the predominantly Brands that focus on making meaningful essential. Brands should exploit multi-screening
demanding home market. More local young and Muslim Indonesian connections with consumers punch above their
is critical brands will, in the coming years, start population. Aspiring to be part of financial weight. These connections must be about
behavior by consumers to build layers of
meaning but should still remember the value
to realize their regional and global a bigger world, they embrace the more than simply being well-known or delivering
Just four years ago, a BrandZ study of TV, which is immensely popular and remains
aspirations. There remains a sizeable, change that comes with progress quality and value. They must be built on emotion;
into what was setting the strongest an effective medium for maximum reach.
long-term opportunity for brands to and digital innovation, but their lives the most successful brands deliver meaning not
brands apart from the competition grow in Indonesia. While personal are balanced by a wish to continue just through their products, but through their
found that saliency played the wealth is greater and more widely their obligations as defined by faith, communications, creating emotional, memorable
dominant role in consumer choice distributed than it has ever been before, tradition and society. These young links that connect with consumers lives.
essentially, the ease with which a affluence is still a relative concept, and Indonesians are open to brands that
brand name sprang to mind was the much potential remains unrealized. are authentic, that have thought
beyond superficial stereotypes and
understand the challenges of being a
Muslim in modern times. BrandZ Top 50 Most Valuable Indonesian Brands 2015
Ruby Sudoyo This study analyzes the success of Indonesian brands, examining the
Group Planning Director dynamics shaping this fast-emerging market and offering insights for
9
Ogilvy & Mather building valuable brands.
12
Ruby.Sudoyo@ogilvy.com
8
For the complete library of BrandZ reports about Indonesia,

12
please go to wpp.com/wpp/marketing/brandz/indonesia-50-2015/

I N DON E SI A H A S A N A BU N DA NCE OF YOU T H F U L E N E RGY A L MOST H A L F T H E P OPU L AT ION I S U N DE R T H E AGE OF 2 5
1
13
0
13

Thought Leadership >OUTLOOK MIDDLE EAST & AFRICA
OUTLOOK MIDDLE EAST & AFRICA
YOUNG, DYNAMIC
The rise of the MEA regions middle class and rapid
urbanization are the factors that are creating fertile ground Opening the door to disruption
for growth. According to research by KPMG, more than half of
Africas population will live in cities by 2030. The massive shift Mobile money and mobile banking are rapidly integrating
POPULATIONS
in urbanization has seen investments by local governments Africans into a more formal banking system. The GSMA
and global partners in improving urban road, telecom, and reckons that Sub-Saharan Africa accounts for more than half
electricity infrastructure. of the worlds live mobile money services. In many countries,
mobile money accounts vastly outnumber bank accounts.
This migration is resulting in a growing middle class across the
DRIVE THE NEXT

region and with it comes disposable income and aspiration Throughout Africa, were seeing the effort to engage
for lifestyles aligned to first world and local exclusive and customers drive massive innovation. Payment mechanisms
aspirational brand choices. Often these multinational brands and integration with social apps are burgeoning. Banks are
(especially cars, clothes, leisure and smartphones) are partnering with the likes of WeChat, a global mobile chat
FRONTIER FOR
becoming status symbols in their own right. service owned by the Chinese Internet portal Tencent, to
provide users ease and convenience, where with a tap of their
Queuing for success smartphone they can make payments to friends, retailers, and
other providers.
For the first world, scenes of people queuing when Burger
GLOBAL BRANDS
King, Starbucks or H&M launches may seem bizarre. Another areas that digital has enabled is transport. In Ghana
However, the emerging middle class in Sub-Saharan Africa there is a local Uber competitor using customers access
has a craving for being able to own and consume brands to local banking applications and mobile wallet services to
that were previously unattainable and associated with the enable services. The increase in disposable income is also
success of the developed world of Europe, North America increasing travel and leisure options within the region, and
and Asia. Emotionally and intellectually, these consumers the growth in travel is seeing opportunities for low-cost
Eager consumers line up

want to partake in the global economy, hence brands take on airlines and new revenue streams linked to the a growing local
significance beyond their basic delivery. They are symbolic tourism sector across the region.
of the advancement of the region. Multinational brands bring
for new store openings competition and global standards to local markets, where
choice and access has been historically limited.
New growth
Of course, challenges remain and brands cannot approach
Many new developments leapfrog developed nations at African and Middle Eastern markets in the same ways as they
The Middle East and Africa, with their young and least partly because legacy systems and infrastructures do address consumers in Europe or the US. They also need to
not exist. The sophistication of the regions banking and
dynamic populations, are the next growth frontier for remember that there are many nuances that will drive brand
telecoms infrastructure are playing a significant role in helping
multinational brands. Despite the pressures that many multinational brands invest and reach Arabian and African
choice with religion, language, culture and history being key
factors across the continent.
global economies are under as result of the falling prices consumers. According the GSM Association (GSMA), a mobile
of oil and other commodities, the region still contains industry trade group, Sub-Saharan Africa alone will add more The increase in urbanization has seen rapid growth in
many of the worlds fastest-growing economies. than 400 million new smartphone connections by 2020, the construction segment with a key focus on shopping
bringing with it cheaper mobile broadband and accessible mall development. Currently, the vast majority of trade
computing devices connecting consumers to the digital goes through markets, hawkers or spaza shops, informal
Emerging markets may be out of favor with the worlds investment world. convenience stores. The advent of malls and associated brand
community, but not so for the many local and leading global brands experiences, combined with online access and growth, will
that are investing significantly into the region. They include traditional The access to global information, new product choices stimulate further consumer demand for global brand and
FMCG companies like Proctor & Gamble and Unilever, as well as and innovation, like the local Netflix competitor Showmax, shopping experiences.
retailers like H&M and Starbucks, through to digital disruptors like means consumers are re-evaluating brands and companies
Facebook, Uber and Netflix, and even vehicle companies like Ford. and these same brands have an opportunity to redefine
Richard Mullins Global brands are realizing the value and potential in Africa
Director their status and relevance with a new global audience. The and the Middle East. Those that started to move five or 10
Acceleration emerging consumers are aspirational and looking to redefine years ago are already reaping the rewards from a growing
Richard@acceleration.biz themselves through their brand and product choices. middle market. Yet the growth is off a low base and theres
3
13
still plenty to come. The rise is just beginning.
Acceleration crafts digital marketing capability for the largest global brands. We
2
13
operate at the intersection of technology and strategy, consumer engagement and

insights, bringing the possible to life.

Thought Leadership >OUTLOOK ASIA
OUTLOOK ASIA
FAST-RISING
Many Chinese, Indian and Indonesian brands are huge in their Mobile and e-commerce
own markets, but still waiting to break through internationally.
The key for these brands will be how to translate market-
meet the real world
specific Unique Selling Propositions to global USPs. Keeping
ASIAN BRANDS
In Asia-Pacific, the online-to-offline (O2O) market is more
an eye on which brands manage to grow globally and how
advanced than in the rest of the world. And when merging the
they do it could be a great source of learning.
physical and digital in Asia, one aspect of consumer behavior
is impossible to miss: online basically equals mobile. Only 16
Asian markets will only grow bigger and dominate more of
out of 100 Indonesians have an Internet subscription. But
OFFER IMPORTANT
the global arena. The US government has predicted that in
the share of mobile subscribers in Indonesia and the UK is
2030 Indias economy will be bigger than both Germanys and
exactly the same sky-high figure: 125 mobile subscriptions per
Japans, while Indonesias economy will be on par with those
100 consumers. This means that very few people are online
of Italy and Canada. The efforts to understand how Asian
without doing something else at the same time, and that no
brands operate will pay off for marketers who apply their new
LESSONS FOR
online campaigns are seen in isolation.
insights in clever, tangible ways.
Tencents Connection strategy links users with content

Embracing contradiction and services that enhance their lives. The brand aims to be
a part of anything users want to experience online or via
BUILDING STRONG,
In China, Indonesia and India, embracing dualities is often a their mobile. Alongside social, payment, gaming, music and
necessity. Parts of the cultures are deeply concerned with e-commerce, its partnership with JD.com enables users to
preserving traditions, while a rising middle class wants to purchase products from the retailer while messaging on the
consume everything new and exciting. Instead of ignoring or ubiquitous WeChat platform.
fighting these divisions to create singular brand messages,
FLEXIBLE BRANDS
Asian marketers embrace contradictions. The brand is also adopting disruptive models to shake
up other sectors generating unique video content and
The second-fastest-growing brand in the BrandZ India Top launching Didi Dache and Kuadi Dache, Chinas answer to
50 is Lakm, a personal care brand that is part of a growing Uber, for example. Tencent works hard to make consumers
trend of indulgence. The brand is, however, also rooted in experience seamless as they move from one product to
traditional Indian culture - its name is a derivation of the another.
Asian brands grasp complicated

Hindu goddess Lakshmi. Straddling the extremes of present-
day beauty ideals and ancient tradition, Lakm is perfectly Content provider Letv one of the two highest risers in this
comfortable in both worlds. years BrandZ China Top 100 has successfully stretched its
dualities in culture and in O2O One key to Lakms success has been innovative marketing
brand even further. In addition to Internet-streamed TV, video
production and distribution, and e-commerce, Letv offers
tactics that modernize its brand heritage. This becomes televisions, gadgets and smartphones and is developing
especially obvious at the Lakm Fashion Week, the brands an energy-saving car. By creating an integrated experience
China, India and Indonesia are the largest markets in own fashion event run in cooperation with the Fashion across the offline and online worlds, it is embedding itself into
Asia, with young populations, confident consumers and Design Council of India. Having an entire event dedicated consumers physical lives, as well as their virtual lives.
to the brand is an exceptional opportunity to hone brand
impressive growth rates. Many local brands from these
messages and communicate them to a large audience. It sets Asian marketers have a constant focus on multi-screening
markets are now as competitive as multinationals. Lakm apart from domestic and international competitors, and blending mobile and e-commerce with physical retail.
Looking to these markets for strategic input will be and ensures that the brand is a centerpiece and not an The Indonesian brand Telkomsel, for instance, is a mobile
increasingly important for global CMOs in the years to accessory at the event. The brand clearly communicates to its provider expanding into electronic payments. Telkomsel
come. Two lessons are particularly useful to absorb: consumers that it is just like them, with one foot in each world. ranks third in the BrandZ Indonesia Top 50 - and the brand
how to embrace contradictions; and how to create has realized that consumers use mobile for much more than
Many of us will habitually assume that brand messages should communication.
mobile innovations where the digital and physical meet. have a single focus and that complexity is only a distraction.
But by embracing contrasts at the heart of a brand message, Seeing online campaigns in isolation is meaningless in Asia-
marketers could gain much in terms of brand value and Pacific. As mobile grows, looking to the Asian frontier is one
market penetration. Consumers are not single-minded entities of the best ways to get new ideas for integrated digital/
5
and if they can identify with a brand on a deeper level, they
13
Doreen Wang Millward Brown is a leading global research agency physical strategies.
Global Head of BrandZ, Millward Brown specializing in advertising effectiveness, strategic will be more loyal, trusting and willing to engage.
4
13
Doreen.Wang@millwardbrown.com communication, media and brand equity research.

Thought Leadership >TRANSFORMATION
TRANSFORMATION
GLOBAL BRANDS
As Einstein famously said, the definition For example, by analyzing data from Dream Team FC (football community)
of insanity is to do the same thing over Shell, our London agency was able to is now the go-to platform for fueling
and over again and expect different create something unique, innovative football banter. With its unique and
results. However, in todays highly and transformational for the business. engaging tone of voice, we serve cheeky,
MUST INNOVATE
competitive environment, I believe the With competition fierce at the pumps, irreverent, light-hearted and often
definition of insanity might actually be to Shell wanted to increase loyalty as well controversial videos, news and gossip to
do the same things over and over again as encourage its existing customers to help fuel Britains football conversation.
and expect the same results. fill up with a greater volume of fuel. We A team of dedicated editors, community
TO WIN IN A
discovered that one-third of Shell Drivers managers, content producers and
While global corporations may be Club members like to fill up to a round analysts now create best-in-class content,
resistant to change, there is nothing to number, such as 30 or 40. By engaging 16-hours a day, 7-days a week to drive
be afraid of, and there seems to be real the Shell Drivers Club customer base with the webs ultimate football destination.
opportunity for clients to innovate on an innovative (and fun) proposition, we As a result, Dream Team FC is able to
WORLD OF NEW
a global scale. The sophistication with created a highly successful campaign publish more relevant content that drives
which we can now analyze data to derive that resulted in higher sales, greater a deeper relationship with their target
insights that we can then apply creatively loyalty and a new way for local drivers to audience and drives greater loyalty and
means that business transformation can connect with the brand globally. sales.
DISRUPTORS
and should become part of forward-
thinking executives approaches to We have also been working with our Transformational innovation is possible
success. client, News UK, to dramatically change for large companies to ensure that they
their marketing model, beginning remain not just relevant but also dynamic
Set ideas loose with The Suns Dream Team product. and industry leading. While it may require
From digital competitors to traditional significant change across organizations it
publishers, everyone was attracting is a challenge well worth taking because,
An idea can be brilliant, but that does
Introduce ideas quickly, refining,

staggering audience figures. It was clear as history has shown, stasis may be a
not mean it will work in the real world.
that thesun.co.uk needed to transform bigger threat to future success.
It is important to set your idea loose
its approach to publishing in order to
as necessary, while implementing

potentially in an individual market and
remain relevant. In just five months,
preferably sooner rather than later and
we moved Dream Team from the UKs
then refine it through trial and error. Then,
biggest fantasy football game to a large-
it can be rolled out on a global level or
scale producer of football content that
used as a transformational best practice
Innovation has become one of isnt to transform their business in order
within an organization. resonates with its young, digital-savvy
the marketing industrys biggest to compete against a new breed of audience.
interlopers. Rather, it is to buy a company
buzzwords. According to an
or a technical tool they see as innovative
annual study by the Boston and somehow bolt it on to their existing
Consulting Group, nearly 80
percent of CEOs surveyed say
operation - hoping for the best.
ACTION POINTS FOR
that innovation is one of their It is understandable why established
companies fear real change. Taking a
BUSINESS TRANSFORMATION
most important priorities. For
step into that unknown is unsettling,
those of us optimistic about the
1 Act now 3 Gather data

especially for those organizations that
future of big businesses, this have managed to profitably navigate their
should sound like a positive. more recent corporate history without
doing much differently than before. Dont wait until a disruptor arrives in your Clever and creative use of data will ensure
Moreover, the number of marketing market to act. The opportunities to transform that you remain ahead of your competitors.
Mel Edwards directors who now have the epithets But, in a world where smaller and more your sector already exist. The future belongs Collect as much data on your customers as
CEO
and innovation as an addendum to their agile disruptive rivals are challenging to those who prepare for it today. you can to analyze and predict future trends.
Wunderman EMEA
Mel.Edwards@wunderman.com job title would seem like a good thing larger, mostly global, companies, its
too. However this may be a misnomer. essential that the laudable words of these
In many cases, their idea of innovation CEOs be turned into actions. Continuing
to do what you have always done and
hoping for the best is no longer an
2 Be real
Ensure that transformation is
4 Partner
Embrace new, meaningful partnerships with your
option. hardwired within your organization agencies that go beyond the traditional agency/
7
13
and isnt just a convenient sound bite. client relationships. This may involve staff sharing or
Wunderman combines creativity and data into work that inspires embedding clients within agency teams and vice versa.
6
13
consumers to take action and delivers results for brands.

The
Categories
Consumer and Retail >APPAREL
6 The Categories
APPAREL
Leisure and sportswear
brands drive value growth
Digital innovation influences manufacturing and marketing
The BrandZ Apparel Top 10 Meanwhile, apparel brands increased

increased 14 percent in value, digital innovation in manufacturing and
marketing, increasingly selling direct to
the highest annual increase of
consumers through their websites or
the 14 categories ranked in the branded stores in an attempt to increase
Top 100 Most Valuable
BrandZ Top 100 Most Valuable customer engagement, access to
Global Brands 2016
Global Brands. The increase customer data and profit margins.
Category Brand Value Change followed flat results a year

ago, and was driven primarily Innovation and digital
by the strong performance of
+14%
Nike advanced its focus on technology
sportswear brands, propelled in and innovation, key components of its
part by the World Cup. brand strength, with the introduction of
self-lacing sneakers. The brand continued
The appearance of Under Armour in the its online customization program, NIKEiD,
Apparel Top 10 for the first time and the which enables customers to select the
Apparel Top 10 value increase of Lululemon, following colors along with certain performance
Total Brand Value its decline in the 2015 BrandZ ranking, and design features of their sneakers and
reflected consumer interest in health other products. APPAREL TOP 10
$113.9 billion and fitness and the strength of leisure
sportswear as a global fashion trend - a Both Adidas and Nike were among the
Brand
Value 2016 Brand
Brand Value
% Change
$ Million Contribution 2016 vs. 2015
preferred attire for millennials with appeal athletic shoe brands investing in 3-D
across generations. printing technology, in anticipation of a 1 Nike 37,472 4 26%
future when footwear is manufactured on
2 Zara 25,221 3 14%
Victorias Secret also appeared in the demand and customized. Nike appointed
ranking for the first time, illustrating a Chief Digital Officer as part of its plan 3 H&M 12,665 2 -8%
the power of a well-defined brand. The to drive e-commerce sales and build
fast-fashion brand Zara increased in customer relationships with social media 4 Uniqlo 8,625 2 7%
value, although fast fashion generally and Nike fitness apps. 5 Under Armour 6,698 3 N/A
experienced mixed results, partly because
of a growing consumer inclination Under Armour invested heavily in 6 Victoria's Secret 6,245 3 N/A
to spend prudently and favor new wearable technology, purchased several 7 Adidas 5,257 3 14%
experiences over more things. fitness apps, and partnered with IBM
Watson to yield richer health, fitness, 8 Next 5,206 2 -13%
CATEGORY DEFINITION and nutrition insights using artificial
9 Ralph Lauren 3,497 4 -38%
1
intelligence. Along with cutting-
14
edge technology, sports celebrity 10 Lululemon 3,047 4 5%
The apparel category is comprised
0
of mass-market mens and womens endorsements remained an important

14

fashion and sportswear brands. brand communication tool. >> Brand Contribution measures the influence of brand alone on earnings,
on a scale of 1 (lowest) to 5 (highest).

Consumer and Retail >APPAREL
6 The Categories
INSIGHT
Nike continued its relationships with
leading athletes across sports, such as
Flagships and its store opening pace slightly, and
shifted attention to driving online sales,
BRANDZ ANALYSIS
Kobe Bryant and Serena Williams, who
e-commerce with plans to increase its presence in
acted as design consultants as well as
Uniqlo planned to expand aggressively
Europe from 22 countries to 35. Still, the INNOVATION DRIVES VALUE INCREASE
brand ambassadors. And Nike won brand opened a flagship store of almost
in Greater China, adding around 100
rights to take over as the official uniform 50,000 square feet in Manhattans
stores annually to its current store count Apparel increased in value 14 percent, the greatest gain of all the categories in the
supplier of the National Basketball trendy Soho neighborhood, and is
of about 470. The brand collaborated 2016 BrandZ Global 100 ranking. Sportswear brands drove the value growth.
Association after the NBAs contract with expected to open as many as 360 stores
with Disney to develop a range of Nike and Adidas scored high in Brand Power, a BrandZ measurement of a brands
Adidas expires in 2017. this year, including locations in five new
clothing and other products featuring ability to drive sales volume. Under Armour, a newcomer to BrandZ apparel
country markets: Aruba, New Zealand,
Disney characters. The collaboration is category, also scored well in Brand Power, as did another newcomer, Victorias
In a strategy shift, Adidas decided to build Nicaragua, New Zealand and Vietnam.
an example of Uniqlo moving to be more Secret. All four of these brands also scored high in Innovation.
its presence in basketball by developing
fashion driven. It associates Uniqlo with
partnerships with specific players rather Refocusing for changing times,
the iconic Disney brand, and it helps
than the league. Under Armour benefitted the Victorias Secret brand, which
from its association with Stephen Curry,
position Disney merchandise somewhat
operates over 1,000 stores in North Leaders enjoy strong Brand Power
Young people use star of the Golden State Warriors, a
more as fashion rather than simply
America and the UK, added to its
souvenir.
social platforms in winning NBA team based in Oakland, international reach, opening a flagship Nike continued to
exhibit exceptional Brand Power
California. store in Shanghai. The intimate apparel
different ways Uniqlo launched the collaboration by
specialist, renowned for brand building Brand Power, but
Nike
Looking to China devoting a floor of its Shanghai flagship
with video and print content, announced experienced the Adidas
The marketing world is obsessed with store to the new merchandise. The Disney impact of strong 276
plans to refocus its marketing on loyalty Victorias Secret
using traditional models of marketing Shanghai Resort was scheduled to open competitors Adidas
Adidas rebounded after several weak programs and customer engagement, Under Armour 249
cohorts to define the behavior of in Shanghai during June 2016. A Uniqlo and Under Armour as
sales years, primarily because of brand even eliminating the catalogs featuring
several millions of people. To that Disney store was scheduled to open in the sportswear trend 216
strength in Western Europe, China, lingerie models that had become
end, what are the different social Walt Disney World in Orlando, Florida, continued to accelerate, 150
and Latin America. As it sought to gain synonymous with the brand. 126
platform behaviors of millennials during 2016. with even Victorias
momentum in the US, the Germany- 114
(born 1980-1995) vs. Gen Z (born based brand also broadened its sports Perhaps evolving the brand to remain Secret focusing on its
2006 2008 2010 2012 2014 2016
circa 1996-2010). Both generations To improve its US performance, Uniqlo sportswear range.
appeal beyond its well-established link relevant as consumer attitudes change Average Brand = 100
use Facebook. (It is a fallacy that the closed underperforming suburban
with soccer. To help position the brand as and notions of female beauty become
kids are deserting Facebook the mall stores and focused instead on
cool and trend-setting, Adidas linked with more diverse, Victorias Secret intended
uses are just very different). In broad urban flagship locations, opening one
rap performer Kanye West. to benefit from the sportswear trend by
strokes, older users use Facebook for on Chicagos Michigan Avenue. It also
expanded its e-commerce activity, which
promoting its range of sport bras. And score high in Innovation
sharing their lives and interests, or Adidas expected to open 3,000 more
for simply just staying in touch with accounts for 15 percent of US sales. The
stores in China for a total of 12,000. A new CEO from the world of fast The BrandZ Apparel Top 10 scored well in Innovation, with Victorias Secret and
their friends. Gen Z, however, are less brand also opened a flagship store in
Aligning with a Chinese government fashion launched a review of the Ralph Under Armour scoring especially high. Innovative brands tend to be creative and
about these public demonstrations of Antwerp, Belgium and renovated its
plan to increase Chinas presence in Lauren business, after taking over distinctive and increase faster in brand value.
identity. (Plus, why would they want Oxford Street site in London.
international soccer competitions, Adidas from founder Ralph Lauren, who now
to share everything on the platforms signed a deal to provide soccer programs serves as Executive Chairman and
where their parents live?) Instead, Uniqlo continued to differentiate the Innovation
in thousands of Chinas elementary and Chief Creative Officer. The strong dollar
for many young users, Facebook brand with technology. Its LifeWear NIKE/ VICTORIAS SECRET/ OTHER SIX
middle schools. impacted overseas sales and sales to
uses technology to combine fashion and ADIDAS UNDER ARMOUR IN CATEGORY
is simply Google for People. For tourists visiting the US.
example: a Gen Z person might function, including comfort of fit and
Nike also planned to drive sales from
meet someone at a party and look temperature. Uniqlo also announced 121 129 110
fast-growing markets, especially China, Competition from fast fashion and other
them up on Facebook to learn what digital innovations that would enable
which it predicts will become its second- retailers hurt Next, which operates
groups theyre in, who their friends customers using a mobile app to order
largest market after the US. In addition, around 500 stores in the UK and 200 111 109 103
are, and what brands they like, before clothing that would be semi-customized
Nike intends to market more intensively international stores, along with an online
deciding whether or not to add them according to measurements they had
to women and has opened several business that offers clothing for men,
submitted. The company plans to
to their WhatsApp group. stores specifically for women in China, women and children. The brand also 120 108 103
increase the e-commerce portion of
the US and UK. Lululemon, which had operates a mail-order catalog business, Innovtion
James Whatley global sales to 30 percent over time, from Average brand = 100 Brand Experience
marketed primarily to women, focused which it intended to continue while
Digital Director 5 percent currently. Brand Love
on building its sales to men. The brand expanding e-commerce and introducing
Ogilvy & Mather, London
restructured the organization, unifying its a new iPad app. In 2015, almost two-
James.Whatley@ogilvy.com Known for building its brand through Source: BrandZ / Millward Brown
BRAND IMPLICATIONS
sales and marketing to women and men, thirds of Next consumers used mobile
its physical store presence, with over
functions that had been split between two devices for online ordering. Just five
7,000 locations worldwide, Zara slowed
executives. years ago, 95 percent of consumers
3
14
ordered online using a PC.
As consumers continue to expand their apparel focus
2
14
to include a mix of fast fashion and sports fashion,

brands need to continue innovating and explaining their
functional benefits with clearly articulated brand stories.
6 The Categories
VENICE, ITALY
Value of all
European brands
in Global Top 100
$367.1 Billion
INSIGHT
BRAND
Consumers fine
with sharing
BUILDING
data used ACTION
intelligently POINTS
Consumers of all ages are
pushing out information every
day - passively via their newsfeed
1
interactions to more directly with
the brands they buy products
Be social-media savvy
from. They understand the value Young people select the social media platforms they
of their data and, furthermore, use based on the situation. When a GenZ customer in a
they genuinely want brands to try-on room snaps a selfie of herself in a new outfit, she
work harder and use the data is not going to post it on Facebook. Instead, she will
better. To cite one consumer quote choose a velvet rope network and send the photo to
directly: I am allowing you to have a limited number of friends whose opinions she values.
this information. You can at least
do the decent thing and use it
2
properly. Consumers dont want
to visit a brand website to look at Use data to deepen relationships
shoes and then have shoes follow
Many consumers will want to learn more about a brand,
them around the web for the next
about what the brand stands for and how the brand
three weeks. (Why do you think
relates to them. In a time of the quantified self, when
ad blockers have arrived?) With
people are eager to learn more about their potential and
the ad tech options available to
to measure their health or physical fitness, apparel brands
marketers today, theres no reason
have an excellent opportunity to engage with customers
why this experience cant be
and deepen relationships.
better.
James Whatley
3
Digital Director
Ogilvy & Mather, London
Protect the data
James.Whatley@ogilvy.com
Be open and clear with customers about how you
expect to use their data and protect their privacy.
Explain how you will use the information to create
personalized and beneficial experiences for customers,
and how you will guard against misusing personal
information or using it in ways that annoy customers.
4
14

Consumer and Retail >CARS
6 The Categories
CARS
In reverse of recent trends,
Europe improves, US hits
record, China slows
And brands peer into a foggy future of mobility
Growth contradicted The electric car brand Tesla appears in

recent global patterns, with the BrandZ Cars Top 10 for the first
time, suggesting that the future has
improvement in Europe, record
arrived. With the availability of a relatively
sales in the US, but slower affordable Tesla (priced at around
expansion in China. Meanwhile, $35,000), more people might experience
Global Brands 2016
carmakers took initial steps that future. In addition, Teslas model of
to anticipate a future where, direct sales could portend distribution
Category Brand Value Change
changes in an industry that currently
disrupted by societal forces, car
relies on dealership networks.
brands become mobility service
-3% providers as well as product

manufacturers.
If the future seemed complicated for
carmakers, one factor simplified the
present for many consumers: cheap gas.
This vision results both from trends The plummet in global oil prices that led
that discourage personal driving, such to lower prices at the pump drove car
Cars Top 10 as increased urbanization and traffic sales, put pressure on diesel models, and
Total Brand Value congestion, and forces that point to pushed purchasing preferences to larger
alternatives, such as the rise of the sharing cars, like SUVs. Full-size pick-up trucks CARS TOP 10
$139.9 billion society and the desire for utility without
ownership, particularly among youth.
remained popular in the US. Brand
Value 2016 Brand
Brand Value
% Change
At a point where Volkswagen hoped to
The pace of change will vary by shift toward greater emphasis on SUVs, 1 Toyota 29,501 3 2%
geography and market, and will depend the company struggled to contain the
2 BMW 26,837 4 2%
on balancing consumer expectations impact of revelations that it circumvented
with production realities in a capital- emissions standards. The incident also 3 Mercedes-Benz 22,708 4 4%
intensive industry. For now, technology affected the value of VWs Audi brand.
is the greatest influence on the category, The overall value of the BrandZ Cars 4 Honda 13,195 3 -1%
brand rationalization that followed the
as brands differentiate with driving Top 10 declined 3 percent, following a rise 5 Ford 13,084 3 0%
global financial crisis.
experience, entertainment and early of 3 percent a year ago.
versions of autonomous cars. 6 Nissan 11,479 2 1%
Sales vary by region Car sales in the UK also reached a record
level, climbing 6.3 percent, to 2.6 million 7 Audi 9,497 4 -6%
Many car brands exhibited at the
vehicles, with sales driven by consumer 8 Land Rover 4,732 3 -5%
Consumer Electronics Show, the annual Sales in the US increased 5.7 percent to
CATEGORY DEFINITION confidence, affordable credit and the
showcase of technological innovation a record-setting 17.5 million cars sold.
strength of the pound against the euro. 9 Porsche 4,438 4 N/A
7
held in January in Las Vegas. Ford Low-interest credit and pent-up demand
14
In Europe, new car sales rose 9.3 percent 10 Tesla 4,436 3 N/A
The car category includes mass-market opened a research center in Silicon Valley, combined with cheaper gas to fuel these
to 12.6 million units a strong result, but
6
and luxury cars but excludes trucks. and introduced a program that anticipates sales, which reached their highest level
14

Each car brand includes all models still well below the 18.2 billion cars sold in
a future where cars are one component of since 2000. The US remained a relatively Brand Contribution measures the influence of brand alone on earnings,
marketed under the brand name. 2007, prior to the global financial crisis. >> on a scale of 1 (lowest) to 5 (highest).
a comprehensive mobility solution. profitable market, partly because of the

6 The Categories
INSIGHT INSIGHT INSIGHT

The growth of car leasing also impacted network of urban storefront mobility Strong brands dominate
overall car sales numbers. The increase service centers called FordHub.
in preference for leasing suggests that Meanwhile, carmakers with brand
consumer attitudes may be changing; Ford also tested a car-sharing program strength continue to dominate the
for some people, access to a car may be called GoDrive. In a sense, Ford is going BrandZ Cars Top 10 ranking. Toyota
more important than ownership. Leasing back to the future, reenergizing its remained solidly in the number 1
also makes a major investment seem like founding vision to provide affordable position, demonstrating the brands
one more affordable monthly payment mobility. Seeing change as inevitable, ability to sustain a reputation for
for a service, like a mobile phone bill. Ford intends to disrupt itself before social product reliability even after the
trends or competitors disrupt Ford. problems with unintended acceleration
China remained a car ownership market. several years ago. Both Toyota and
Sales reached 21.1 million cars in 2015, Most major brands experimented with Honda embraced the importance of
a 7.3 percent increase compared with programs for fractional ownership or design, which adds an emotional appeal
a 10 percent rise a year ago and 16 leasing, as well as short-term rental. to brands respected for their functional
percent in 2013. A tax break stimulated BMW and Mini operate a rental scheme
Success in evolving demand, along with discounts, which called Drive Now. In San Francisco, Greatest threat to excellence.
Brand stories need
car market requires hurt margins. Although the rate of sales Audi is trialing a program where, for meeting mobility BMW benefited from the introduction
to touch young
growth slowed for many international a monthly fee, customers can select
a cultural change brands, local Chinese brands grew 15 from among a group of Audi models challenge is inertia of its 7 Series with technology that
included an app store for driving people interested
percent, almost double the rate of the according to occasion and need. As the
Many of the car companies are going market overall. category shifts toward an emphasis on I recently went to the Geneva Motor
entertainment, gesture control for the
phone or radio, and limited autonomous
in mobility
through an internal cultural change mobility, the competitive set widens. For Show. It was similar to the Geneva
driving for moving the car into and
as they face the need to navigate The Chinese market also points to example, Germanys railroad, Deutsche Motor Show of 10 or 15 years ago. The rise of car-sharing, especially
out of a garage without someone in
the increasingly complex landscape the future role of dealerships in how Bahn, operates a car-sharing operation Little has changed. In fact, topics like among younger people, highlights
the drivers seat. The slowdown in
of new technologies, connectivity, consumers will purchase cars. During called Flingster. alternative drivetrains or alternative the importance of affordable mobility
China impacted sales, however. Chinas
and different mobility solutions. Chinas Singles Day shopping event in energy seemed even less important as well as the specific brand of
slowdown also hurt Land Rover, which
The automotive companies are November, e-commerce giant Alibaba Besides the logistical challenges than a few years ago. There are car. Car manufacturers who have
experienced growth in other markets,
good at spending several years to sold over 6,500 cars on its Tmall site. these car-sharing programs present, some new initiatives. All of the car traditionally relied on communicating
particularly North America.
launch a perfect object. In contrast, Customers purchased cars online but carmakers worry about devaluing their companies now have a digital officer. a companys heritage at a brand and/
technology companies are good at picked them up at dealer locations. brands. But the change in carmaker Many of them have an experiment or model level now need to work
In contrast, sales for Mercedes-Benz
knocking something out and then Some cultural differences enable this mentality and mission seems inevitable, with some kind of sharing or harder at communicating benefits at
rose in China based on the strength
making iterative improvements. behavior, as Chinese car buyers spend because younger people view cars mobility solution. But most of the a cultural level, especially to those
of its C-Class Sedan and SUV, and the
The shift from making perfect more time doing online research before differently than do members of the older time these are just to communicate who do not currently drive. These
addition of dealerships. On the strength
objects to creating rapidly improving purchasing, but are less inclined to test generation, for whom a car represented their awareness of the changing new consumers are less interested in
of that performance, combined with
technologically-based experiences drive a vehicle. status and freedom. A smartphone fills market. There is little indication that car content and features, and more
worldwide sales, including the flagship
moves the car companies into new those needs for many young people, they are prepared to scale these interested in car sharing networks
S-Class, Mercedes-Benz was poised
territory. Technology companies The slowdown of the oil-dependent who consider cars just one of many ventures. Their business models have and technology, as this traditional
to reclaim luxury car sales leadership
are interested in the car business economies of Brazil and Russia alternatives for advancing on a journey. not fundamentally changed. This niche becomes more mainstream.
from BMW and Audi. For the first
because it can be profitable. But negatively impacted car sales. Car sales inertia will put the car brands at a Studies reveal that the millennial
time, Porsche sold over 50,000 cars
its difficult to make a car. Everyone in Russia fell 39 percent. India imposed In this world, the car becomes like disadvantage as new competition, generation is avoiding car ownership
in the US, and Nissan performed well,
wants to be in the experience restrictions on engine size and imposed the device, valued for design and like Uber, and eventually others, enter in this new era of social media, and
particularly in North America.
business. People spend a few hours a new tax on car sales as part of an functionality and especially for the the mobility space. auto manufacturers have started to
buying a car and many more hours effort to help abate air pollution. frictionless experience. In an apparent take note. The need for mobility will
Juergen Korzer One unanswered question about the
in a car. If you have someone for that nod to this trend, Volkswagen planned always exist, though it is continually
Global Account Director future of brands in the car category is
amount of time, you know where they morphing into new, more efficient
are and what theyre doing, youre
A future beyond to replace its tagline Das Auto, which
Kantar, Consumer Insights the implications of new competitors
realms. The automobile is not going
focused on the car as object, rather
connected to them and you gain car sales than the car as one critical component
Juergen.Korzer@tns-infratest.com entering from outside the category,
such as strong technology brands like
away, but the idea of sharing them is
data, insights, and potential revenue of a set of more complicated mobility gaining more ground.
Google or Apple. Their partnership with
streams. Anticipating a future beyond car sales, solutions. traditional car brands would raise many
Ford extended the brand to include Nick Bull
Michael Bentley issues, including ownership of consumer
a suite of mobility services called In the industrys most positive analysis, Senior Business Development Director
Executive Vice President / data, much of which is now controlled
FordPass. The app-based initiative mobility solutions provide new revenue Millward Brown
Global Chief Strategy Officer by dealerships.
includes trip planning, transportation streams for car brands, which will be Nick.Bull@millwardbrown.com
GTB ticket purchasing, ride sharing and other manufacturing cars, at least for the
Mike.Bentley@gtb.com utilities, plus a payment wallet. foreseeable future, although revenue
9
14
may shift gradually from products to
In New York, Ford also planned to open services, potentially a large and lucrative
8
14
the first of what will be a worldwide business.

6 The Categories
BRANDZ ANALYSIS INSIGHT BRAND

BRAND POTENTIAL DECLINES SHARPLY
BUILDING
Although the car category is rebounding, the total brand value of the BrandZ Cars Top 10 has not quite recovered to its pre-
recession level. But the majority of value has shifted from mass to luxury. Luxury brands are seen as more Different, and Tesla, ACTION
POINTS
a newcomer to the BrandZ Cars Top 10, is viewed as most Different because of its strength in BrandZ metrics including
Innovation, Brand Purpose and Brand Experience.
Luxury brands expand Luxury brands are Tesla is viewed as most

share of Top 10 value viewed as more Different Different
In 2006, prior to the global financial
crisis, luxury brands comprised just
than mass
On Different, consumers score luxury
Among the luxury car brands, consumers
view the electric car brand Tesla, a
1 Be nimble
Decision making needs to be more nimble than ever,
over one-third of the BrandZ Cars
Top 10 value; today they comprise
brands higher than mass-market brands.
Part of the challenge for mass brands
newcomer to the BrandZ Cars Top
10, as strongest in Innovation as well as
Mobility solutions because the technology wave is breaking - car brands that
do not learn to ride it risk being caught in its undertow.
over half of total Top 10 value. is that they have achieved high levels of the other characteristics that create the will expand reach
functional quality, an achievement that perception of Difference. Teslas strong
of the car brands
2
requires them to differentiate based on Brand Purpose relates to its fundamental
Proportion of Value in Cars Top 10 brand experience, which is where luxury mission of being environmentally friendly. Partner with tech brands
The high Brand Experience score Mobility solutions, ultimately,
brands enjoy an advantage. Dont lurch to try to be Apple. But be open to new forms of relationships
encompasses both functional qualities, are about growing the reach of
36% 52% automotive companies. But it takes with the technology industry. Coming from an industry known for control,
such as driving performance, and an
Different time. As the car brands consider car brands need to embrace more of a partnership mentality. Think about
unusual distribution model that sells cars
146 all these new challenges, like the technology brands as equals - as experts in their space.
138 directly to customers rather than through
dealerships. connectivity or the technological
64% Luxury cars interface in vehicles, or the
3
Mass
opportunities for differentiation,
Collaborate with competitors
MASS LUXURY TESLA its important to realize that the car
48% 96 business is an enormously capital-
93 98 116 161 Collaborate more with other car brands on issues such as
intensive industry. The auto brands engine technology in order to share the enormous cost of
2006 2008 2010 2012 2014 2016 99 109 116 are like supertankers on the sea. R&D. Collaborate to have common standards, something
Average Brand = 100 They turn slowly. This is not a nimble that will be necessary with autonomous cars that will need to
101 109 102 business. People study everything communicate with each other using a common language.
thoroughly. People sitting in the
2006 2016 100 114 122 boardrooms have some huge bets
4
Luxury cars Innovation Responsibility to place, and if they get them wrong
Mass Brand Purpose Brand Experience
theyre stuck with them for years. But Be in the experience business
Average Brand = 100
when someone places a bet, almost
Having a manufacturing mentality, car brands need to understand
everyone else will follow.
that they are now also in the experience business. That experience
defines a different relationship with the buyer-user-owner. It
Source: BrandZ / Millward Brown Andy Turton
means that the brand needs to understand and speak directly with
Head of Automotive, Americas
the end customer, instead of allowing the dealer to mediate that
TNS
BRAND IMPLICATIONS Andy.Turton@tnsglobal.com
relationship.
The car category faces many challenges. Car

brands have improved in quality, but those
context, Tesla comes along, breaks all
the rules and enters the Cars Top 10. The 5 Make the experience frictionless
The experience must be frictionless. Whether the customer
improvements have made it more difficult strength of Tesla in BrandZ metrics, experience happens through the dealer, online or offline, it needs
1
to communicate meaningful difference. including Innovation, Brand Purpose and to be fast and easy. Any small annoyance will turn people away.
15
Because differentiation is so much lower than in the past, and
Social trends suggest that future consumers Brand Experience points to qualities that car technology brands have trained consumers to expect frictionless
0
15
may focus less on cars and more on overall brands will need to successfully navigate the experiences, consumers will not hesitate to switch. Own the
experience and own the data derived from the experience.
transportation solutions. In this challenging changing marketplace.

Consumer and Retail >LUXURY
6 The Categories
LUXURY
Youthful spirit,
appreciation for craft
invigorate luxury
But slower economic growth constrains spending
Brightly colored fabrics Slower growth in Brazil, Russia, and

and the return of the logo China impacted the values of certain
brands. And the strength of the US
energized luxury at a time
dollar also negatively impacted the
when customers felt more sales of American brands sold overseas
comfortable with displays of or purchased in the US by visitors from
Global Brands 2016
affluence than at any time abroad. Some of the most valuable
since the global financial crisis, brands in the BrandZ Luxury Top 10
grew in value, but the Top 10 overall
over eight years ago.
declined 5 percent, following a 6
-5%
percent drop a year ago.
Luxury shoppers curated carefully
selected articles to share with
knowledgeable and appreciative friends Reaching a
and acquaintances, but they also wider audience
purchased logo merchandise for social
Luxury Top 10 recognition and to signify discerning In another step of its ongoing update
Total Brand Value taste for quality and craftsmanship. of a heritage English brand, Burberry
Brands presented logos with more
subtlety and on selected items rather
boldly changed its business model. LUXURY TOP 10
Eliminating seasonality, the brand
$99.7 billion than across entire collections. introduced collections only twice a
Brand
Value 2016 Brand
Brand Value
% Change
year and made the collections available $ Million Contribution 2016 vs. 2015
In their products and marketing, many immediately after they appeared on 1 Louis Vuitton 28,508 4 4%
brands sought a balance between fashion-show catwalks.
conveying exclusivity to their primary 2 Herms 19,821 5 5%
luxury customers and accessibility to Burberry accelerated the product
prospective customers, who have the 3 Gucci 12,592 5 -9%
cycle, both to satisfy younger To create excitement around the
potential to develop in affluence and customers who expect fast fashion brand, Gucci reinvented its traditional 4 Chanel 10,316 5 15%
personal style. and to make it more difficult for look, introducing bold patterns and
5 Rolex 8,153 4 -4%
the fast-fashion brands to copy colors. Gucci began to redesign its 525
Driven by the more casual preferences Burberry designs. The immediacy shops to reflect this lighter palette, 6 Cartier 6,747 4 -11%
of younger consumers, both women presents supply chain challenges, and it accelerated the supply chain.
and men, luxury brands expanded 7 Burberry 4,594 4 -20%
but it is consistent with Burberrys Gucci also redesigned its website and
luxury into high-end sportswear, commitment to keep the brand relaunched it in the US and Canada, 8 Prada 4,405 4 -33%
CATEGORY DEFINITION exercise clothing, jeans and sneakers, relevant and accessible. The changes with further rollout planned for 2016.
aiming at the customer who purchases also acknowledge that seasonality is The financial impact is expected with 9 Tiffany & Co. 2,468 3 -24%
3
15
a well-appointed SUV rather than a less relevant for a global brand that full implementation of the changes that
The luxury category includes brands 10 Christian Dior 2,066 3 N/A
traditional luxury car model. conducts business across all weather followed the appointment of a new
2
that design, craft and market high-end

15

clothing, leather goods, fragrances, zones. CEO and Creative Director. >> Brand Contribution measures the influence of brand alone on earnings,
accessories and watches. on a scale of 1 (lowest) to 5 (highest).

Consumer and Retail >LUXURY
6 The Categories
INSIGHT
Although the Christian Dior brand was
in an interim period between designers,
China, although the countrys anti-
corruption campaign, which continued
Slower economic BRANDZ ANALYSIS
the lively and innovative treatments to dampen gift giving, hurt Cartier sales.
growth impacts luxury
of clothing, accessories, and makeup
Along with other luxury brands, like
LUXURY BRANDS SUSTAIN DESIRABILITY
that have characterized the brand for Well known as a brand for gift
Prada, Tiffany & Co. felt the impact
the past several years drew consumer purchasing, Tiffany & Co. worked Desirability continued to drive the growth of the BrandZ Luxury Top 10, although
of the slowdown in Chinas economy
interest. The consumer demand for to increase the brands appeal to the category struggled with changing consumer attitudes, global financial
and the anti-corruption measures.
haute couture, the high-end, tailor-made customers purchasing luxury items for fluctuations and the ongoing challenge of making the brand simultaneously
Fluctuations in international tourism,
collection, continued to drive the growth themselves. Tiffany & Co. enhanced its accessible (to attract new customers) and exclusive (to retain existing customers).
a key driver of luxury sales, also hurt
of Christian Dior. Several perfumes website, catalogs and in-store visual
the brand. The Tiffany & Co. flagship
performed extremely well, and Christian merchandising. The brand added to its
Fifth Avenue store in New York derives
Dior appeared for the first time in the entry-level silver jewelry collections of
around 40 percent of its sales from Luxury defies trends and grows more desirable
BrandZ Luxury Top 10. items selling for under $500.
foreign tourists. >>
Luxury brands have sustained
Feeling more Communicating and even increased their Desirable
the brand story INSIGHT desirability, even as the BrandZ

entitled to indulge, INSIGHT 118
Global Top 100 brands generally 114
consumers also Brand story and experience remained

declined in desirability in the
aftermath of the global financial
an important aspect of consumer
seek substance engagement with luxury brands. Brand
crisis and a recalibration of
104
purchasing attitudes away Luxury

98
websites provided access to fashion
There is a sense of entitlement from conspicuous consumption Global Top 100
shows, and even glimpses of backstage
among luxury customers, a feeling and toward what The Futures 2006 2008 2010 2012 2014 2016
activity. Going further, Chanel produced
that it is OK to reward yourself with Company calls considered Average Brand = 100
an online film about its founder, Coco
an indulgence that youve coveted. At consumption.
Chanel, starring actress Kristen Stewart,
the same time, discerning consumers who models Chanels makeup line. The
dont want to buy luxury simply for company continued to have a clear
the sake of showing off the badge. message about empowering women. Heritage is basis of brand strength
There needs to be substance or
provenance. Luxury brands are Rolex, the most valuable of the iconic On average, brands in the BrandZ Luxury Top 10 were established over 130 years
increasingly engaging customers luxury watch brands, continued its For millennials, ago. In contrast with most categories, heritage is the basis of brand strength.
through bespoke experiences
that money alone cannot buy. In
association with achievement and with
cars as a sponsor of the Rolex 24 at
luxury is all about A curated look Luxury brands are also strong in Innovation, Brand Experience, and Brand Love,
but they score lower in these BrandZ metrics than the Global Top 100 overall.
the luxury car sector, this could Daytona. Positioning technology devices experience signals luxury Luxury brands balance heritage and Innovation to simultaneously preserve brands
mean gaining a comprehensive
understanding of the craftsmanship
as luxury products, Herms partnered
with Apple to offer an Apple Watch with Luxury means vastly different
fashion savvy and renew them.
and attention to detail that goes a Herms leather band. Leather was an things for millennials compared to
Younger people, especially, validate GLOBAL GLOBAL
into the design, build and delivery of area of strength for Herms, compared prior generations. Its all about the LUXURY TOP 100 LUXURY TOP 100
luxury automobiles. The experience their style savvy by wearing the
with its silk and perfume ranges. experience. Many are giving up the
could include not merely a private big house or the fancy car for a
same fast fashion as everyone 107 114 105 110
factory visit, but also meeting core else, but distinguishing it with
Louis Vuitton evoked its brand heritage life-defining experience that can be
personnel involved in the key stages the perfect luxury accessory. For GLOBAL GLOBAL Innovation
as a maker of trunks and other travel shared with family and friends. Or LUXURY TOP 100 LUXURY TOP 100
of the design and build process, and these consumers, the hunt going Brand Experience
goods by creating an exhibition of even with people they dont know Brand Love
peering into the future by viewing to sample sales and finding the 104 112 1883 1947
trunks, tools of the craft, and other on social media. And when they do Year Brand Started
upcoming products and then being piece that nobody else has, and
elegant travel articles from its collection purchase a luxury item, that too is all
allowed to offer first-hand insights Instagramming that you found Average Brand = 100
for the Grand Palais in Paris. The brand about the experience and the ability
to luxury automotive designers and an exclusive piece is part of the
originally displayed its wares at this to share it. If it cant be shared, then it
engineers. appeal. Conversely, being completely
grand venue during the Universal didnt happen. Source: BrandZ / Millward Brown
coordinated suggests that you
Frances Wain Exhibition (Worlds Fair) of 1900.
Account Director
Other brands also communicated
Jim Joseph
President of the Americas
havent taken a risk.
Lyle Maltz
BRAND IMPLICATIONS
PRISM
FWain@prismteam.com brand experience in the physical world, Cohn & Wolfe Associate Director
with flagship stores and with bespoke Jim.Joseph@cohnwolfe.com Vermeer The BrandZ Luxury Top 10 score higher than average in
events such as factory tours for select Lyle.Maltz@mbvermeer.com the BrandZ metrics of Brand Experience and Brand Love.
5
15
customers. Cartier renovated key
flagship stores on the Champs-Elyses However, in the luxury category, most brands focus on
4
delivering a memorable Brand Experience and cultivating

15
in Paris, on Fifth Avenue in New York,

and in the Ginza in Tokyo. The brand
Brand Love, making it difficult to stand out. Innovation and
also planned an e-commerce site in
disruption can help brands set themselves apart.
6 The Categories
BANGKOK, THAILAND
Value of all
Asian brands
in Global Top 100
$531.9 Billion
Despite the economic slowdown, Chanel enjoyed great popularity in stories. Christian Dior increased its
China continued to lead the world China, partly because of its presence media presence in China, particularly
in outbound travel, according to on social media platforms like Weibo to market its perfumes as a way to
the World Tourism Organization, an and WeChat, but also because it build the brands awareness.
agency of the United Nations. But encouraged domestic Chinese
tourist spending weakened. In addition, spending by lowering prices in China to Many luxury brands created monkey-
the Chinese government lowered taxes make them more equivalent to prices themed items for the Chinese New
on luxury to encourage purchasing at in Europe. Year. In more substantial initiatives,
home rather than abroad. some brands modified designs to
Rapidly becoming sophisticated appeal to a more diverse audience of
and more discerning across most luxury shoppers from other regions of
categories, Chinese consumers
INSIGHT the world. Herms created silk saris for
selected luxury items not simply for Indian shoppers. Other luxury brands
the bling effect, but also for their brand designed burqas for Muslim women.
BRAND BUILDING
Brands stretch
ACTION POINTS
meaning of luxury
with playful designs
Although people feel uncertainty,
1 Celebrate occasions
Develop sales strategies around more occasions,
theres increased confidence in and create original ways to present the brand.
celebrating luxury. A demonstration
of this is a shift back to logos and
2 Find the right balance

more brazen luxury. This is in stark
contrast from recent years when it
was about discretion and being in
The balance between exclusivity
the know, rather than showing off
and accessibility is delicate. Greater
with badges. Were seeing trends of
accessibility can drive revenue
opulence, flamboyance and romance;
but dilute the brand. Some brands
people want to have fun with luxury
manage by channel, offering limited
and be playful.
items online, and more customized
versions only in a physical store.
Eleanor Lloyd Malcolm
Associate Director, Cultural Strategy
3 Personalize
Added Value
E.LloydMalcolm@added-value.com
the offering
Deliver exceptional personal experience. Study
the attention to detail and the unique individual
services that some airline and cruise brands
provide for their high-volume customers.
6
15

Consumer and Retail >PERSONAL CARE
6 The Categories
PERSONAL CARE
Changing shopping
habits challenge
brands to innovate
Global expansion continues despite slower economic growth
Personal care brands contended Personal Care Top 15 remained flat

with many ongoing challenges, following a modest improvement a
year ago.
including the appearance of
small disruptor brands enabled The changing shopper
by e-commerce and heated
Global Brands 2016
competition for limited shelf Like most consumer product marketers,
space in physical stores. the leading personal care brands filled
retail shelves with product variants to
In addition, consumers expected drive volume by drawing consumer
0%
brands to supply expert advice, greater eye contact and consideration. But PERSONAL CARE TOP 15
convenience, more product innovation, consumers sometimes looked elsewhere,
Brand Brand Value
improved product functionality and, to their hand-held devices. Value 2016 Brand % Change
in some instances, a higher purpose.
The shopping habits of millennials, and Personal care shoppers traditionally 1 L'Oral Paris 23,524 4 1%
evolving attitudes about gender and shopped with a consideration set of two
Personal Care Top 15 or three brands, according to Kantar 2 Colgate 18,319 4 2%
beauty added further complication.
Total Brand Value Retail. But now, as they walked the aisles Loyalty, innovation 3 Gillette 16,400 4 -17%
Mobile accelerated many of these checking screens for deals and coupons, and purpose
Lancme
$114.7 billion trends and also facilitated the expansion
of personal care products in many
some brand leaders felt compelled to
compete primarily on price, filling shelves These changes happened in a
4 8,583 4 3%
5 Nivea 6,756 3 4%
developing parts of the world, where with value and premium products and marketplace where the major brands
brand leaders attempted to customize potentially shrinking the middle tier. faced intense competition from price- 6 Garnier 6,384 3 1%
their offerings to meet local market competitive private labels that have 7 Clinique 6,235 4 4%
needs, while also achieving global Millennials drove interest in online improved in quality and branding
economies of scale. subscription purchasing, which impacted sophistication. 8 Dove 5,448 3 3%
Gillette razor blade sales in particular.
But subscription offerings also included 9 Este Lauder 4,190 5 6%
Meanwhile, global business became more Building loyalty in this world, where
difficult. With slower economic growth curated offerings from brands such as consumers increasingly made purchase 10 Olay 3,917 4 -3%
in China and Brazil, price-conscious Birchbox and Birchbox Man. Wellness- decisions based on volition rather than
focused collections combined vitamins 11 Pantene Pro-V 3,908 3 N/A
consumers considered local brands, habit, required brands to provide the
which over time have improved in and personal care products. basics product efficacy, convenience 12 Crest 3,630 4 -8%
product quality and marketing expertise. and value and also to differentiate
Increasingly, millennial dads strolled store 13 Oral-B 2,740 3 -6%
with authenticity. According to Kantar
Two brands reappeared in the BrandZ aisles, not just to fill a spouses shopping Retail, being seen as authentic required
CATEGORY DEFINITION 14 Shiseido 2,441 4 N/A
9
list, but as active decision makers with
15
Personal Care Top 15: Pantene Pro-V, a meeting consumer expectations that
hair care brand; and Shiseido, a Japanese different, little-understood shopping were both personal (Did you meet my 15 Pond's 2,230 2 2%
8
The personal care category includes personal care brand offering a range habits, such as being more influenced by individual needs?) and social (Does the
15

brands in health and wellness, beauty, in-store signage and promotional offers, Brand Contribution measures the influence of brand alone on earnings,
of products including skin care and brand meet those needs in an ethical
and facial, skin, hair and oral care. on a scale of 1 (lowest) to 5 (highest).
makeup. The brand value of the BrandZ according to MediaCom research. and responsible way?) >>

6 The Categories
To effectively communicate this daughters hair. Each spot ended with among the many brands occupying shelf the middle class and experience certain
information, brands often turned to the tagline, Strong is Beautiful. space with expanding ranges of shaving consumer goods for the first time. At BRANDZ ANALYSIS
bloggers and brand advocates. Este and skin care products formulated and the same time, in much of the world
Lauder continued to expand its presence The shift in attitudes about beauty packaged for men, and purchased by people continue to turn to personal
on social media and e-commerce sites, touched the burgeoning mens men as both shopper and consumer. care products because they associate
PERSONAL CARE IMPROVES IN TRUST
and some of the messages came from its grooming sector. Along with Gillette, physical enhancement with success.
brand representative Kendall Jenner. LOral Paris, Dove and Nivea were Attitudes about physical beauty were Consumer trust for personal care brands is improving. Consumer health concerns
Still, brands encountered niche premium also impacted by the needs of aging about the product ingredients they put on or in their bodies have impacted
disruptors that have relatively easy access baby boomers. Nivea added to its personal care as well as the soft drinks and fast food categories. The personal care
to the marketplace because of social Cellular range of anti-aging creams, INSIGHT brands have been relatively effective both in reformulating products to improve
INSIGHT
media and e-commerce. To strengthen for example. New fillers appeared, safety and in effectively communicating those improvements. Multinationals have
relevance and differentiation, brand some including botox for home use, increasingly stressed transparency and purpose, which has also contributed to a
leaders introduced technology-driven expanding the DIY aspect of the rise in trust. In addition, the BrandZ Personal Care Top 15 includes some of the
innovation. LOral Paris introduced personal care category. And more worlds most trusted brands.
an online platform called LOral Paris products appeared for thickening and
Designer and added the latest version of enhancing eyebrows and lengthening
its Makeup Genius, an app that enables eyelashes. Consumers view personal care
the user to virtually try on makeup and
brands as more trustworthy
use a smart phone as a mirror. Global expansion
Following the recession,
Oral-B connected its electric toothbrush In Asia, the pressure to look good and Trustworthy
when consumer skepticism
to a smartphone app that tracks dental reverse aging is a strong trend that increased across categories, Personal Care Top 15
hygiene over time, just as physical fitness impacts women as well as men, who, Global Top 100
109
personal care declined
apps track exercise and wellbeing. particularly in South Korea, are more in being perceived as
Tracking dental hygiene linked the brand
with the larger purpose of maintaining
likely to use makeup. The facial regime
Broad category trustworthy. After several 105
105
Brand honesty and generally is more complicated in Asia; in years of improving products
necessitates more
104
personal wellness. China, women may use as many as seven and communicating about
performance still facial products both morning and night.
varied strategies those improvements,
Evolving ideals the best policy Global brand leaders attempted to
the category rebounded
substantially in trust.
2006 2008 2010 2012 2014 2016
of beauty
Average Brand = 100
understand and respond to local Personal care is a wide category that
Purpose-based marketing creates spans from mundane to high fashion.
concepts of beauty. In India, for
Brands also developed creative solutions a good speak in the marketing Depending on which part of the
example, LOral Paris researched
to remain relevant in the cultural community, but evidence indicates category youre talking about, the
Ayurvedic medicine to develop products
conversation about beauty and gender, that what is really moving business threat is different and the response But Innovation and other
based on plant extracts. In South Africa,
which continues to evolve since Dove is having superior performing
research by Added Value found that needs to be different. In lower- BrandZ metrics could improve
first challenged the idealized view of products and being authentic in interest categories, consumers may
black South African women increasingly
female beauty, with its Real Beauty communicating with consumers. be less willing to pay for innovation The BrandZ Personal
responded favorably to ideals of beauty PERSONAL GLOBAL PERSONAL GLOBAL
campaign 12 years ago. In personal care, the approach is and instead select private label. Care Top 15 lag the Global TOP 15 TOP 100 TOP 15 TOP 100
based on their local heritage rather than
more visible in more competitive These brands need to identify Top 100 in three important
those of the white culture.
Today, physical appearance is only one categories. For example in hair or skin a driving consumer insight to BrandZ metrics that 107 114 108 110
dimension of a more comprehensive view care, highly competitive sectors, the motivate purchase. In higher-interest help assure future brand
Kantar Worldpanel discovered that PERSONAL GLOBAL
of female beauty that not only considers winning brands have performance categories, like cosmetics, brands success: Innovation, TOP 15 TOP 100
personal care is one of the categories Innovation
how other people view a woman, but advantages that they communicate run less risk from private label and Brand Experience and Brand Experience
in which Chinese consumers will pay a
more importantly how a woman feels simply. In general, being a winning more risk from niche brands that Brand Love (although 108 112 Brand Love
premium for items related to improved
about herself. Beauty becomes the brand, increasing sales and feel more personalized. In this case, the personal care brand
health or quality of life, such as skin care Average Brand = 100
outward expression of inner strength, penetration, seems to correspond image and style credentials are key. scores are well above
or toothpaste. A local skin care brand
self-confidence and character. with greater simplicity and clarity Depending on the sub-category average).
like Herborist, which updates Chinese
In the latest iteration of its campaign in marketing. We are observing within personal care, the risks and
ancient knowledge of herbal treatments
about womens self-esteem, Dove has more brands returning to these the strategies to compete and win Source: BrandZ / Millward Brown
with modern technology, is marketed
BRAND IMPLICATIONS
created advice boards on Pinterest. Ads fundamentals of brand building, and are different.
outside of China and illustrates the
showing the luxurious hair of Pantene it isnt just limited to personal care.
possibility of building a uniquely Chinese Beth Balsam
Pro-Vs spokeswoman, singer Selena Nihar Das global brand. US CEO
Gomez, ended with the tagline Strong Global Business Leader P&G Personal care scores in the three BrandZ metrics
Hill+Knowlton Strategies
is Beautiful, communicating both the
1
MediaCom The personal care category is somewhat
Innovation, Brand Experience and Brand Love are well above
16
Beth.Balsam@hkstrategies.com
benefit of the brands shampoo and the Nihar.Das@mediacom.com less competitive in developing country
idea that beautiful hair radiates strength. average, although they lag the BrandZ Top 100. Higher
0
markets. In much of Latin America,

16
In Super Bowl ads that also commented for example, global brands feel less scores, especially in Innovation, would help brands differentiate
on masculinity, NFL players styled their margin pressure as people move into
in a highly competitive and commoditized category.

6 The Categories
INSIGHTS INSIGHT
BRAND
Social mission is Global brands must Depict women as
culture does, as
BUILDING
good, but not a
differentiator
become more local
to remain relevant multifaceted ACTION
Personal care brands adopting social Outside of the US, were seeing the Just as the cultural conversation
around femininity has broadened
POINTS
missions to add legitimacy and
differentiation to their point of view
Personal care needs emergence of strong local competitors
who are not affected by foreign beyond obvious traits and tropes, so
hasnt yet run its course, but for many to become more exchange rates and have the ability too has that around beauty. Ushered
1
it will. Because many big personal care to quickly innovate, up-size, use local in by Dove with their inaugural
brands have seen the value of and personalized ingredients and reflect local personal Campaign for Real Beauty, we Be more local
embraced social missions they are no care behavior. For example, weve have seen a wider definition of
It is old advice for brands going global, but a new context
longer differentiating. Purpose however The personal care category is less seen in Latin America a growing what constitutes gorgeous pervade
makes it more urgent. In many growing country markets,
is something different. Purpose does personal than it ought to be. The concern with purpose that is crossing culture. While the self-care giant
consumers have more money to spend and more choice as
not have to be tied to giving back to category is personalized from the generations. Even moms 35+ are introduced a timely celebration
local brands improve in product quality and marketing acumen.
society at large; it can simply be to marketing point of view, but it is demonstrating greater involvement (and reappraisal) of diverse types
make you more attractive, successful, several steps behind in products. The with brands that goes beyond of beauty and has now shifted to a
consumer products companies still focus on positive self-esteem, the tide
2
happy or safe. Its having a clearly transactional. Given the rising influence
defined direction that human beings operate from an old model, filling shelf of local factors on consumption, the of culture is fast moving beyond an Innovate
can relate to and those brands in space with variants. Its not accretive. challenge for some of the multinationals appreciation of looks and consequent
It just complicates the supply chain. good feeling about those aesthetics, In a crowded category, innovation is important for
personal care (and beyond) that have is that their marketing too often
And retailers will push for change. The to the full spectrum of everything a differentiating, gaining consumer attention and growing
that clearly defined and meaningful remains a centrally created bundle that
SKU proliferation issue will hit hard woman is about. We see the woman, market share. Innovation means developing new products,
purpose are those that lead. In personal is sent around the world.
sometime in the next couple of years. in all of her glorious multiplicity, which can take substantial investment of money and time, but
care it is the smaller, agile, local players
Retailers that excel at omni-channel Ellen Hyde Pace being celebrated in areas of culture it can also mean using technology cleverly to add services.
that are becoming those with more
will move slower-moving items from Global Client Leader as myriad as fashion to technology:
defined purpose and highlight the
the shelf to the website. When that Red Fuse Communications her abilities and achievements, her
value of this by being able to charge a
3
Ellen.Pace@redfuse.com
premium for it. happens, everyone will follow. intellect, the depth of her spiritual
connection to herself the list goes
Examine assumptions
Piers Lindsay-Taylor John Rand
on. If this is how women are being Old assumptions do not always apply to the new
Sales and Client Management Senior Vice President, Market Insights
represented in wider culture, the generations. Millennial dads, for example, shop differently
Millward Brown Kantar Retail
implications for the beauty industry than their fathers. They often are the decision maker as
Piers.LindsayTaylor@millwardbrown.com John.Rand@kantarretail.com
are clear: dimensionalize your subject well as the shopper, and they are more likely than their
or risk being rendered obsolete. spouses to be influenced by in-store messages.
Laura Tarbox
Strategic Director, Cultural Strategy
Added Value
L.Tarbox@added-value.com 4 Look beyond the category
The category taps into larger ideas shaping peoples
3
experience, including the changing ideals of masculinity,
16
femininity and gender. These influences, and how brands
respond to them, will shape future brand success.
2
16

Consumer and Retail >RETAIL
6 The Categories
RETAIL
Retailers reconfigure
stores to optimize
experience, results
Consumers spend more purposefully online and offline
RETAIL TOP 20
Brand Brand Value
Value 2016 Brand % Change
Top 100 Most Valuable $ Million Contribution 2016 vs. 2015
Global Brands 2016 1 Amazon 98,988 3 59%
Category Brand Value Change 2 Alibaba 49,298 2 -26%
3 The Home Depot 36,440 2 32%
+8% 4
6
Walmart
IKEA
Costco
27,275
18,082
14,461
2
2
-23%
6%
29%
7 Lowe's 13,001 2 21%

Retail Top 20
Total Brand Value 8 ALDI 12,077 2 4%
9 CVS 12,074 3 17%

$377 billion 10 Ebay 11,509 2 -19%
Customers spent money, but General retailers enhanced cross- well, having eliminated most head-
11 JD.com 10,496 2 37% merchandising and added in-store to-head competition and pursuing a
they were more purposeful
12 Walgreens 10,364 3 22% delivery options for online orders in an clear purpose. In contrast, department
about what and where they
effort to improve convenience in big box stores often struggled with traffic
13 7-Eleven 9,360 3 25% purchased, both online and in stores originally intended as dense, self- declines at mall locations, although their
physical stores. The average service environments. Many also reduced flagship stores with space for full brand
14 Target 9,301 2 11%
number of retailers that store footprints and repurposed space. expression did better.
15 Tesco 8,923 3 -5% consumers visited each month Kantar Retail expects e-commerce and
CATEGORY DEFINITION
small-store formats to drive almost 70 In the ultimate affirmation of physical
16 Kroger 7,905 3 N/A stabilized, after declining for
percent of retail sales growth in the US stores, Amazon opened a bookstore
The retail category includes physical 17 Carrefour 7,736 3 -3%
several years, according to a in the next five years. near Seattle, its first physical store since
and digital distribution channels Kantar Retail analysis of the launching the e-commerce revolution
in grocery and department stores 18 Woolworths 7,459 3 -37%
and specialists in drug, electrical,
US market. Retailers invested Food retailers expanded offerings of with an online bookstore in 1994.
DIY and home furnishings. Amazon 19 Lidl 6,846 2 14% in optimizing productivity, fresh and organic food, and increased Amazon planned a second store for
appears within retail because it
improving the retail experience pick-up and delivery options. Kroger, a Southern California. Alibaba, Chinas
5
Macy's
16
achieves approximately 90 percent 20 5,419 3 -24%
US grocery chain that advanced these largest e-commerce retailer, opened its
of its sales from online retailing. and increasing shopper
Source: BrandZ / Millward Brown (including data from Kantar Retail and Bloomberg) initiatives, entered the BrandZ Retail first physical store in Tianjin, in northern
4
engagement.
16
Brand Contribution measures the influence of brand alone on earnings,

on a scale of 1 (lowest) to 5 (highest).
Top 20 for the first time. Surviving China. >>
category killers typically performed

6 The Categories
Results varied by retail channel and The BrandZ Retail Top 20 still increased operates over 1,100 clinics in its 9,600 also partnered with the IBM Watson with Tencent, the giant Internet portal. in value partly because they have
geography. Certain brand leaders by a healthy 8 percent, but much less stores, planned to allocate more of its Health Cloud to collect and analyze Consumers can access JD.com through effectively built brands around a narrow
increased in value, including Costco, The than the 24 percent rise a year ago. retail space for urgent-care clinics and customer medical data. Meanwhile, WeChat, Tencents ubiquitous social purpose. The Home Depot, Lowes and
Home Depot, Lowes and JD.com, Chinas other medical treatment centers, which CVS rival Walgreens continued to add networking site. This access point furniture retailer IKEA also benefitted
second-largest e-commerce site after Reinventing the store should benefit from several factors, space through acquisition. The pending simplifies life for consumers, who can from the strengthening US market for
Alibaba, and a newcomer to the BrandZ including the aging population of the US purchase of Rite Aid, a US drug store text, shop, and pay without switching new homes and home remodeling. In
Top 100 Most Valuable Global Brands. and the expansion of medical insurance chain with around 4,560 locations, is platforms. addition, both The Home Depot and
But even retail giants Walmart and Because of the brands size, with over under the Affordable Care Act. CVS part of the strategic plan of parent, Lowes effectively met the needs of
Alibaba experienced business pressure. 11,000 stores worldwide, Walmart Walgreens Boots Alliance, to become a Seeking greater share of life, Kroger small-business customers, which is also
magnified many of the pressures global leader in wellness and pharmacy, opened a new concept store with a a factor in Costcos success.
experienced across the retail category. INSIGHT enjoying the brand and economy-of- wine bar, craft beer assortment and
INSIGHT Walmart planned to close 269 stores, scale benefits while gaining share of life. even a limited apparel offering. The
reduced store size, and slowed brands organic food commitment INSIGHT
new store openings, reflecting a
fundamental change in how shopping Growing share of life challenged Whole Foods on range and
price. Even Lidl and Aldi broadened
has evolved as an activity that happens assortments to include non-food. The
both online and offline. Most general merchandise retailers successful deep-discount grocers, both
advanced initiatives aimed at growing based in Germany, have succeeded
Walmart planned to greatly expand share of life, but not as aggressively against traditional food chains and
the marketplace portion of its website, as Amazon. With the introduction of hypermarkets by tightly editing their
where shoppers can find products from Amazon Dash, the brand anticipated assortment and relying on high-quality
third-party suppliers. It also opened the automatic replenishment of the private label to promote value at a
three new e-commerce fulfillment Internet of Things. With the Dash sharp price point. Lidl prepared for
centers and launched a grocery service program, consumers press reorder its US entrance, breaking ground on a
for online buying and in-store pick-up, a buttons for a variety of branded distribution center in Virginia.
practice developed as click and collect consumer products, alerting Amazon at
by the European hypermarkets. Target
Stores today the exact moment of customer need.
Improving service
Edit product range also experimented with curbside pick-
need to update with technology
and use new space
up. Even furniture retailer IKEA, which Amazon also launched its Amazon
Activation now
worldwide controls 328 stores averaging
at app speed Fresh food delivery program in three
happens anytime
as retail theater 220,000 square feet, operated smaller US cities. In the UK, Amazon partnered Retailers also worked to increase what
pick-up locations in Spain, Norway and
Finland, with another being considered
The idea of the physical store design
with the grocery chain Morrisons for
Amazons fresh-food home delivery
the retail brand consultancy FITCH calls and anywhere
Retailers need to stop thinking of serving as a lasting monument is share of experience, making shopping
in London. programs. Amazon Primes two-day easier and more rewarding. To
a retail environment as a place to disappearing. The physical store is Brand experience and purchase
delivery included over 30 million SKUs attract millennials moving into home-
maximize SKU count. By definition, no longer a place where you create are coming closer together.
Most of the leading large-format and one-hour delivery on key items ownership and family-formation years,
enormous quantities of SKUs are a magnificent chandelier that lasts Thats what Amazon Dash does. I
brands, including UK-based Tesco available from Prime Now in 30 cities Lowes partnered with Facebook and
inefficient. The efficient retailers for five years. Retail will be in a could be standing at my washing
and the French Carrefour, have more worldwide. Almost half of the items Snapchat on a social media campaign
Costco, Trader Joes, Whole constant state of beta. Each store machine when Im out of detergent.
aggressively opened small urban food sold on Amazon came from third-party that updates how-to information for the
Foods, for example have limited will remain a perpetual test store. Thats the connection to purchase
locations. Whole Foods planned to open sellers through Amazon Marketplace. next generation of DIYers. The brand
SKUs. They target SKUs that are Consumers expect their mobile apps occasion. Its what Rob Norman
its first scaled-down organic food store, And the brand moved into financial also partnered with Microsoft in an
high turn and high velocity and to get updated regularly, sometimes from Group M calls the negative
in Los Angeles named 365 by Whole services with Amazon Lending. initiative that enables shoppers to view
justify the space they occupy. with new and improved stuff. They one moment of truth. Retail
Foods Market, in Los Angeles. The new kitchen remodel designs in 3-D, using
With e-commerce ability, retailers will apply the same expectation to and supplier brands are going to
concept will offer a reduced range of Alibaba aligned with a leading Chinese the Microsoft HoloLens. And it has a
can deliver the slow-moving SKUs physical stores. In practical terms, the need to get much better at retail
organic food at lower prices and more food delivery app to increase its virtual reality design tool that works
that are replenishment-based and store will not be totally refit, but it will activation at every point along the
customized for individual locations. penetration of the delivery market in with the headsets of Facebooks Oculus
unemotional. That opens up an be constantly renewed. In this new way. Anytime youre in awareness
Walmart opened a convenience China. Alibaba purchased almost a 20 Rift and Google.
opportunity that most retailers world, the store becomes a stage mode, the brand needs to move
store experiment called Walmart percent stake in Suning, the Chinese
havent been good at: in-store theater. set for a performance. It becomes a you to activation.
To Go. At the same time, with over consumer electronics retailer that To make omni-channel shopping more
brand message. It becomes similar to
John Rand 56,000 convenience stores worldwide, operates about 1,600 stores. The seamless for its customers, The Home Bryan Gildenberg
retail theater, but different. It doesnt
Senior Vice President - 7-Eleven seemed well positioned to synergistic hook-up strengthened Depot offered an app that provided Chief Knowledge Officer
have a five-year run.
Market Insights meet the needs of shoppers looking Alibabas presence in the physical real-time inventory updates, 3-D store Kantar Retail
Kantar Retail for conveniently located smaller stores, Tim Greenhalgh world and boosted its electronics maps, and the ability to search items by Bryan.Gildenberg@kantarretail.com
John.Rand@kantarretail.com and it continued as a delivery center for Chairman and Chief Creative Officer offering, while lifting Sunings online text, voice and photo. Both The Home
Amazon in some locations. FITCH profile and improving logistics and Depot and Lowes, the two leading
7
16
Tim.Greenhalgh@fitch.com delivery times for both brands. JD.com home improvement chains, improved
Retailers also dealt with excessive store challenged Alibaba with its partnership
6
16
space by subdividing it. CVS, which

6 The Categories
BRANDZ ANALYSIS BRAND

ONLINE RETAILERS SCORE WELL ON BRAND POTENTIAL
BUILDING
The online brands that disrupted the retail category score higher in Brand Potential and other key BrandZ metrics than
other retail brands, which are mostly omni-channel operators with legacies of physical stores. Online retailers also comprise a ACTION
POINTS
disproportionate amount of the BrandZ Retail Top 20 value.
Online retailers lead And online retailers But traditional brands

in Brand Potential produce a growing portion are loved
of category value...
1
Online retailers score higher than other Online retailers also outscored other
retailers in Brand Potential, the BrandZ retailers in the key BrandZ metrics
Begin with an idea
In 2006, the two online retailers in the
metric that predicts the probability of BrandZ Retail Top 20 produced 14 of Innovation and Brand Experience. Seize the differentiating idea that is your reason
future market-share gains. percent of the rankings value. Today, with But online and other retailers score the for being in business and build around it.
same in Brand Love, which may signal a
5
four online retailers, including Chinas Everything becomes possible with the core idea
Brand Potential JD.com, a newcomer to the BrandZ consumer need for a brand experience in place and much harder without it. You cannot Empower the store manager
Global Top 100, online brands account for that is more tactile and personal than is omni-channel your way out of a poor proposition.
45 percent of the Retail Top 20 value. possible online. The store manager creates the experience, or at
least sets the tone. Because consumers spend
125
2
a lot of time online, the power of a physical
Be specific
123
Proportion of Value in Retail Top 20 RETAIL RETAIL
121 ONLINE OTHER
store is magnified. Along with running store
operations, todays store manager needs to be
117 110 The brand difference could be price or the chief schmoozing officer.
112 14% 45%
Onliine experience or something else. Specificity is a key
Other component of future success. Focus relentlessly
86% 118 112
6
on the core shopper. Understand in detail the
communities that surround each individual store. Work the appicenter
2006 2008 2010
Average Brand = 100
2012 2014 2016
115 115 of the brand experience
55%
3
Retail brands need to control and coordinate
Innovation
Brand Experience Identify shopper priorities the brand experience not only in the physical
Brand Love
Average Brand = 100 store, but also as it appears on every mobile
Identify the issues that shoppers care
app. Retailers need to prepare for the time in
about. Concerns could be about price, or
the near future when the shopper, standing
a combination of quality and price, or a
in front of the shelf, can obtain all relevant
combination of price, quality and retail theatre.
product information on a mobile device.
2006 2016 Find out and deliver consistently and visibly.
Online
Other

4 Grow share of experience
Customers mostly have the same omni-channel
7 Excel at both the art
and science of retail
access to myriad virtual and physical shopping Building a retail brand today requires being
venues. They face a lot of sameness. Experience both the artist, the merchant with an intuitive
BRAND IMPLICATIONS is an important differentiator. Make the feel for what excites customers, and the
shopping experience unique to the brand and scientist who can turn overwhelming amounts
make shopping easier and more rewarding. of customer data into useful insights.
Omni-channel retailers confront a difficult challenge trying
to be more innovative than the online innovators. But omni-
channel retailers have the advantage of physical locations and
the possibility of interacting face to face with customers and
9
16
engaging them with the physical experience of the brand.
These retailers need to leverage their strengths, especially as
8
16
online brands are now establishing an offline presence.

Thought Leadership >FRICTIONLESS EXPERIENCE
FRICTIONLESS EXPERIENCE
CONSUMERS
For example, by far the fastest growing demographic of mobile, they arent going to remember to come back later on
Facebook users is 65-plus. Marketing as a whole, and car a laptop they will simply go elsewhere.
marketing in particular, knows that it needs to catch up with
these expectations, to invest ever more in digital. But what Yet in the midst of all of this transformation, the primary
EXPECT BRANDS
does this really entail? structures that the auto industry is built around are still
vital. The number of dealer visits per purchase may have
The mobile interface has already reached the tipping point dropped dramatically in the last decade, but according to
of being the new normal; 78 percent of the worlds Internet some studies as many as 84 percent of buyers still want to
TO DELIVER
users are also mobile Internet users thats 2.6 billion people. purchase a car in person. Manufacturer websites also remain
Recent search data shows that mobile search has now crucial; Millward Brown path-to-purchase research shows
overtaken desktop within the car buying process, and by that 86 percent of buyers will visit the brand site in the
2020 the number of buyers using multiple devices for auto closing stages of buying a car.
research is forecast to be 80 percent.
FRICTIONLESS
The point here is that while the structures themselves are
This matters a great deal for two reasons: firstly because as important now as they have always been, the actual
on average just 50 apps account for 80 percent of mobile experience of using them has fallen behind the frictionless
device screen time. Therefore, all of this increasing time standards set outside of the auto category. Despite
EXPERIENCE
spent online and on mobile is taking place inside walled those high numbers of buyers still using the traditional
gardens of data and both agencies and clients need to act manufacturer contact points, less than 1 percent of buyers
now in order to maintain visibility of this customer behavior. surveyed by JD Power agreed that the current buying
process was ideal. The changes required to improve that
But when it comes to delivering a frictionless customer number are all about customer access, saving time and
experience, the fact that so much of mobile digital usage reducing the friction that leads to frustrating experiences.
is through the lens of a relatively small pool of apps also
Lessons learned from technology now

has significant impact. It means that the inertia that drives Control over when and where car buying information is
customers to certain apps or platforms is potentially accessed has passed fully to the customer, and we as
stronger than the inertia that drives brand awareness or marketers need to respect that. Modern marketing must
impact all categories, including cars preference. It is clear that people will not change their
behavior to suit brand sites and structures. Consequently,
build structures to accommodate these actions at any time
and use data intelligently to predict and deliver the right
if customers tap through to a site that isnt optimized for content on the right platform at the right time.
Digital has transformed marketing forever, and the way it has

changed is not just in what we as marketers can do but in what ACTION POINTS FOR
customers expect. It is no longer if it ever was a question of
herding potential customers through some fixed gates on their FRICTIONLESS EXPERIENCE
way to purchasing a product. Instead we are faced with customers
whom have been trained to expect a seamless experience entirely
on their terms by brands that were born in the digital era.
1 Use customer data
Use customer journey data to plan customer
3 Link online and offline
The linkage between online research and the
access, not just ad placement. The device they dealer experience is another prime opportunity for
For the generation of people who grew up with Facebook, Google and Apple it use and the app or platform they start from reducing friction. Device location data can be used
is not just desirable that everything works perfectly with the devices and apps have a huge impact on their expectations. to automatically send buyer preferences and car
through which they already experience the world it is incomprehensible to them configuration details to the closest dealer, allowing the
when it does not. The price they consciously pay in order to enjoy these seamless next contact to be entirely tailored to the individual
Dan Whitmarsh experiences is the data they give us access to. Their mindset is, Ive given you all
Global Head of Planning for buyer so as to save them time and effort.
2 Simplify access
Volkswagen Group this data about who I am and what I want why havent you used it?
MediaCom
Dan.Whitmarsh@mediacom.com These behaviors are not restricted to millennials though; the key drivers of the
expectation of a frictionless experience are, of course, social and mobile, and
they have both reached a point of near-saturation across all demographics.
The use of simple login details or even social API
linkages such as Facebook (if the data privacy
challenges could be managed) could dramatically
4 Think mobile
Thinking mobile first opens up a new world of convenient
reduce friction for the ever-increasing number of and frictionless service for owners. Expect to see brand
1
buyers who use multiple devices in their research. owner portals expand rapidly in this area, integrating more
17
Facebook doesnt care which device you use to benefits into one point of access as well as more upsell
MediaCom is the The Content + Connections Agency, working to leverage brands entire system of
0
access your profile, why should car brands? opportunities for accessories and service plans.
17
communications across paid, owned and earned channels to step-change business outcomes.

Thought Leadership >OMNI-CHANNEL
OMNI-CHANNEL
BRANDS MUST
The Internet, in all its forms, whether by computer, tablet, or effectively in order to close the sale. In our work at Kantar
mobile phone, is becoming an excellent venue for fulfillment Retail we have tried to focus attention to improving the
for the act of buying. It knows you, it knows how you traditional store environment for four key shopper actions:
pay, what you have bought in the past, and it is close to
IMPROVE ONLINE
frictionless. The number one reason for people to use digital
1 Find
sources as a route to purchase is convenience. In most cases,
however, the Internet is a terrible place for browsing.
To make it easy to navigate.
SHOPPING AND
The physical store on the other hand, when it is at its best,
is a wonderful place to seek and find new things, to have an
2 Inform
experience, to seek help and confirmation from an expert, to
taste something, to touch it, to try it on. It is a superior venue
for the act of shopping. In most cases, however, it is a terrible
IN-STORE BUYING
To enable product information beyond the minimum
place for buying.
package requirements.
This is the challenge for brands in the future to improve
the shopping online, and the buying in-store, and coordinate
3 Compare
EXPERIENCES
both of them as seamlessly as possible.
On reflection, we have always drawn a line between these. To enable rankings, peer reviews, and other features of
There is pre-purchase influence, where marketing and a digital shopping trip in the brick-and-mortar store.
branding tend to focus. And there is the moment of actual
sale, where merchandising and presentation, store and
4 Link
execution, take place. To use a paradigm made famous some
Help shoppers browse, explore,

years ago, these can be seen as separate moments of truth.
To overcome the category structures and assist
But they are not separate, not really. They are simply shoppers to link complementary items together.
find surprises and impulse buys different, both necessary and each complementary to the
other. If brands, whether store brands or product brands,
expect to thrive in the future and succeed in an omni-
At the same time, the digital experience needs
channel marketplace, they must learn to do both well in
to move beyond item-level search and digital
Most shoppers today are learning to move seamlessly whatever venue the shopper wishes to visit.
shopping. Brands and retailers need to create a total
between different media and market spaces, to market basket experience, one that allows a shopper
Most brands today, particularly FMCG brands, approach
accomplish the twin but separated goals of shopping to browse, to explore, and to be surprised and
retail merchandising and execution, the actual store, as a
encourage the impulse to engage with the brand.
and buying. Retailers and brands, however, are still often battle for space and display. The future work for brands is
trapped by habit and process into combining and linking to find ways to move beyond mere placement and improve
Omni-channel is not a binary choice between store
these in ways that are no longer as relevant going forward. the store environment to inform, to inspire and entertain,
or screen, cart or search engine. Omni-channel is
to optimize the experience and engage the shopper more
Thus we have the challenge of omni-channel thinking. a challenge to integrate both the buying and the
shopping experiences, to the benefit of both.
Kantar Retail are the retail and shopper

John Rand specialists. They are a leading retail and
Senior Vice President, Market Insights
3
shopper insight, consulting and analytics and
17
Kantar Retail
John.Rand@kantarretail.com technology business and part of Kantar.
2
17

Food and Drink >BEER
6 The Categories
BEER
Changing consumer
tastes drive brand
fragmentation
As the leading global brewers plan to consolidate
It finally happened. After six-pack holder that customers can

years of rumors, the two giant customize with any combination of beer
brands is among the best-selling stock
global brewers, AB InBev and
keeping units at Kroger, a leading US
Top 100 Most Valuable SABMiller, announced plans supermarket chain.
Global Brands 2016 to merge, forming a giant
company with a portfolio This explosion in variety indicates the
Category Brand Value Change of 400 brands expected to power of brand stories and experience
to inspire consumer interest. It also
produce $64 billion in annual
-3%
reflects a global generational shift
revenue, about the size in preference to sweeter taste, lower
of Unilever, the consumer alcoholic content and healthier
products multinational. ingredients. Government regulations
both mirror and encourage these
The new consolidated company will trends.
Beer Top 10 own seven of the BrandZ Beer Top
Total Brand Value 10 brands, including a new entry,
Aguila. The company will not own rivals
Beer brands have reduced alcoholic
content in the UK because of
BEER TOP 10
Heineken and Guinness. Also, after government tax incentives. Britains Experience Brand Brand Value
$ 76.1 billion SABMiller divests its stake in Molson, health minister issued guidelines for
and purpose
Value 2016
$ Million
Brand
Contribution
% Change
2016 vs. 2015
it will not own Coors Light. But in a reducing weekly alcohol consumption
curious dichotomy, the beer industry 1 Budweiser 14,727 4 7%
to lower cancer risk. Although the
Traditional premium light beers
is fragmenting at the same time it is situation is changing, some EU countries 2 Bud Light 13,198 3 2%
attempted to connect with millennials
massively consolidating. Particularly levy taxes based on alcohol and sugar
with stories that presented brand 3 Heineken 10,549 4 9%
in mature markets, the beer category content. European regulators historically
history and heritage in an authentic
is beginning to resemble the wine associated beer with the alcohol 4 Stella Artois 9,546 4 10%
way. Coors described the journey of
category, with a proliferation of choices industry and wine with agriculture,
its founder Adolph Coors, a German
based on taste and provenance. an inference that made wine seem 5 Skol 6,743 5 -21%
immigrant to the US who established
healthier. 6 Corona 6,626 4 -22%
his brewery in the Rocky Mountains
There are over 4,000 breweries in
because of the purity of the local water.
the US, according to the Brewers Impacted by slower-growing economies 7 Guinness 4,586 4 -7%
Association, a craft beer trade group. in Latin America, particularly Brazil,
In its Super Bowl ad titled Not Backing 8 Coors Light 3,610 3 -8%
With market share of just over 12 three Latin American brands declined
CATEGORY DEFINITION Down, Budweiser presented the brand
percent, according to the association, in value, resulting in a 3 percent drop 9 Aguila 3,270 5 N/A
as a muscular counterpoint to craft
5
17
craft beer remains a relatively small in the BrandZ Beer Top 10 value,
The beer category includes global
options. The ads mixed a soundtrack of 10 Brahma 3,269 5 -22%
but influential part of the category. A following a 9 percent rise a year ago.
loud and aggressive music with images
4
and regional brands, which in an

17
Source: BrandZ / Millward Brown (including data from Bloomberg) and Brand Analytics
increasingly consolidated industry, are of racing Clydesdale horses, industrial Brand Contribution measures the influence of brand alone on
mostly owned by four major brewers. beer production and distribution, and earnings, on a scale of 1 (lowest) to 5 (highest).
young people partying hard. >>

Food and Drink >BEER
6 The Categories
Distinguished for emphasizing its brand

heritage, and the drinking experience
especially well in the developing
markets of Africa and Southeast Asia. INSIGHT INSIGHT BRANDZ ANALYSIS
involving a signature glass it calls a Guinness continued to associate the
chalice, Stella Artois added a larger brand with the physical heroics of BRAND POTENTIAL DECLINES SHARPLY
purpose to the drinking ritual, pledging sports, but also connected with the
that with each chalice purchased, Stella inner strength of a champion and the
Over the past 11 years, the BrandZ Beer Top 10 declined substantially in Brand
Artois will provide clean drinking water importance of team solidarity in an ad
Potential, a BrandZ metric that predicts future demand. Major beer brands
in impoverished countries. about a Welsh rugby star revealing his
continued to pursue market share through mergers, acquisitions and global
homosexuality.
expansion, but struggled in mature markets with changing drinking preferences,
Heineken, marketed in 179 countries,
particularly the interest in craft beer.
promoted the premium brand with Brands are expected to refine their
sponsorships that included a special messages to reach more targeted
edition bottle for the James Bond audiences with digital marketing this
film Spectre. The brand performed year, at the same time they create Top 10 falls below average in Potential
mass campaigns around two major
sporting events, the European football In 2006, just prior to
championship in June and the Summer the global financial Beer Top 10 Brand Potential
INSIGHT Olympics in Brazil. Success requires Craft beer is not crisis, the BrandZ
Beer Top 10 scored
The new company

greater consistency a revolution it is 109 in Brand Potential, 109
in brand messaging back to the future significantly above

average. Just 11 years
At around the time of the Olympics,
later, the Top 10 score
in August, the merger of AB InBev A lot of brands are still trying to find When people talk about a revolution
a below average 96, 96
and SABMiller is expected to finalize. their way, particularly in premium in beer with the shift from a few
because they are
By then, the companies will have where the messaging has been premium light beers to a proliferation
not perceived as
navigated a maze of national antitrust consistently inconsistent. There are of craft beers, thats not quite 2006 2008 2010 2012 2014 2016
sufficiently Different. Average Brand = 100
regulations, and begun the process of some exceptions, like Corona. Corona accurate. The US beer industry in
identifying operational efficiencies and has had relentless focus on conveying the late 1800s had thousands of
rationalizing the brand portfolio. emotional escape: shedding the day local breweries producing ale and
through its association with vacation stout and porter. Most of these
Even as AB InBev was completing the and relaxation. Brands need to didnt survive Prohibition and
Difference makes a difference
transaction with SABMiller and the project their purpose why they exist the Depression. The number of
Beer brands that consumers view as highly Different scored well in Brand
Sweeter palate, regulatory process, it added more
brands, acquiring three US craft
with a clear, substantial message.
Brands that matter to people have
breweries declined and German-style
lighter, more golden beers gained
Potential. Highly Different brands also scored well on Innovation, which includes
health concerns brewers. AB InBev also introduced new found their North Star. popularity. Today, were seeing a
being seen as creative, and Brand Love, a measure of consumer affinity. The
less differentiated brands also grew significantly in value, because of their
drive new variants beer variants and cider options, while
modifying some marketing to present
Julia Hammond
repeat. Weve got thousands of local
breweries and once again theyre
extensive distribution systems and their Salience. They come quickly to mind.
Managing Director
the drinking occasion in ways that making ale and stout and porter. In
We recently undertook a number of VML Chicago
appeal to consumers who increasingly the US, were back where we were
global segmentations and found that Julia.Hammond@vml.com HIGHLY LESS HIGHLY LESS
drink beer at home rather than on 125 years ago. This is not so much a DIFFERENT DIFFERENT DIFFERENT DIFFERENT
generally speaking, millennials have
premise. revolution. Its a cycle.
a sweeter palate. Also, in a number
of Western countries, we see spirit Martin Stock
111 93 105 99
The consolidated company expects to
beers rising in popularity, along CEO
develop the beer business in growing HIGHLY LESS HIGHLY LESS
with alcoholic alternatives such as Cavalry DIFFERENT DIFFERENT DIFFERENT DIFFERENT Innovation
parts of the world, such as Africa, Brand Love
alcoholic tea and other comparatively Marty.Stock@cavalryagency.com Brand Potential
which SAB dominates, and Latin 120 94 +182% +171%
healthier versions of alcohol. That % Value Change
America, where AB InBev has the which is positioned as a premium
trend is not driven specifically by age,
greater presence, with Skol and Brahma brand. For regulatory reasons, SAB Average Brand = 100 Same brands over 11 years
but rather by the fact that people
in Brazil, for example. The Americas Miller is relinquishing its holding in
generally are choosing to live a more
currently contribute about two-thirds of Snow, the worlds most consumed beer.
health-conscious lifestyle. Source: BrandZ / Millward Brown
the combined companys revenue.
BRAND IMPLICATIONS
Arifa Sheikh India presents opportunity as well,
Associate Director Africa will account for only 9 percent of although alcohol penetration is
Vermeer revenue initially, but AB InBev expects relatively low and Indians generally
7
Arifa.Sheikh@mbvermeer.com African beer consumption to grow at prefer spirits rather than beer. The
17
three times the global rate. Asia Pacific diversity of the country adds marketing
Scale, Salience and distribution can make brands contenders
in the beer category, but being seen as Different is more
6
and China will initially drive 11 percent complexity and the possibility of
17
of revenue. AB InBev markets several offering beer with lower alcohol likely to assure high brand value growth over time.
beers in China, including Budweiser, content.

6 The Categories
SAN FRANCISCO - US
Value of all US brands
in Global Top 100
$2.3 Trillion
INSIGHT BRAND
BUILDING
ACTION
POINTS
1 Be authentic
The rise of craft signals the need for authenticity.
More brands will But being authentic is not always about being
crafty. It is about being real. The core meaning
optimize marketing of beer is social. It is about connecting people.
budgets with digital Provenance adds authenticity by rooting that
connection in a specific place.
Digital will be fundamental this year,
especially for brands that dont have
large marketing budgets. They will try
2 Build brands around

to make sure that theyre optimizing
opportunities with digital. Even big
brands that normally invest in TV
home occasions
are developing creative that uses Develop creative new ways
digital to engage more directly with to build brands based on the
their target consumer. Brands are drinking occasions that happen
also looking to be maximally efficient at home, given the decline of on-
through programmatic buying and premise consumption.
in ways that more clearly show the
return on investment.
Nigel Birch
3
Senior Client Director
Millward Brown
Refine social media
Nigel.Birch@millwardbrown.com communication
Use social media effectively to present
the brand with a sense of personal
engagement even though the brand is
communicating to a mass audience.
8
17

Food and Drink >FAST FOOD
6 The Categories
FAST FOOD
Value rises as brands
improve food and
customer experience
Digital ordering shifts category to e-commerce
The fast food category beverage offerings. McDonalds

improved 11 percent in brand continued its all-day breakfast menu.
value following a 4 percent

Digital ordering and payment, where
rise a year ago. Leading brands Starbucks excels, provided a particular
increased mobile ordering, advantage for the pizza chains
Global Brands 2016
improved food quality and competing in a fragmented sector
preparation, and continued where independents still dominated, at
least in the United States. Several brand
to address health concerns.
leaders, including Chipotle, McDonalds,
They also promoted value and
+11%
Panera and Starbucks experimented
benefited from the recovering with delivery, either with their own
economies of North America programs or third parties.
and Europe.
Food freshness remained a core issue.
McDonalds experienced turnaround But in an ironic twist, the commitment
Fast Food Top 10 to serve food made with fresh
effects under its new CEO, with same-
Total Brand Value ingredients, locally sourced rather than
store sales up for the first time in
two years. Both Burger King and Tim mass-produced, resulted in food safety FAST FOOD TOP 10
$199.1 billion Hortons achieved strong same-store
growth in their first year under the same
issues for Chipotle, a brand that had
successfully built meaningful difference
Brand
Value 2016 Brand
Brand Value
% Change
corporate entity, Restaurant Brands around its commitment to delivering
International. However, the strength food that is fresh and healthy. 1 McDonald's 88,654 4 9%
of the US dollar hurt the financial
Starbucks
results for many US-based chains Menu and health 2 43,565 4 49%
with extensive overseas locations; for 3 Subway 21,567 4 -4%

example, 22,000 of McDonalds 36,000 To meet consumer concerns about
health and quality, Wendys updated 4 KFC 12,386 3 -2%
restaurants are located outside the US.
its key point of differentiation, that its 5 Pizza Hut 8,309 3 -2%
Price remained paramount in fast food, hamburger meat is fresh, not frozen.
When Wendys launched its focus 6 Chipotle 8,031 3 -25%
but, in an effort to drive up the average
ticket and improve store traffic, the on taste, patty size and freshness in 7 Domino's Pizza 4,869 3 30%
burger chains evolved their dollar menus 1984, it differentiated with the slogan,
CATEGORY DEFINITION to promote value for money with larger Wheres the beef? Today, customers 8 Tim Hortons 4,673 4 2%
portion sizes. Chains also attempted ask, Wheres the beef come from?
9 Burger King 3,685 2 16%
1
to drive traffic with added dayparts motivating the chain to tell a more
18
The fast food category includes
Quick Service Restaurants (QSR) and and menu items as well as expanded complicated local sourcing story. >> 10 Panera 3,344 5 13%
0
casual dining brands, which vary in

18

customer and menu focus, but mostly Brand Contribution measures the influence of brand alone on earnings,
compete for the same dayparts. on a scale of 1 (lowest) to 5 (highest).

6 The Categories
INSIGHT
To improve the taste of its food, rebounded from negative numbers In an affirmation of its coffee
McDonalds changed several cooking during the 2008 recession to 12 percent INSIGHT credentials, Starbucks planned to open INSIGHT
practices, including the way it sears growth in 2015. a 20,000-square-foot store in a trendy
burgers and toasts buns. It also
downtown Manhattan neighborhood.
switched from margarine to butter in A Panera restaurant-upgrade program It was expected to be an example of
preparing its Egg McMuffin sandwiches. called Panera 2.0 included digital retail theater, similar to the Starbucks
As part of its strategy to offer fewer
ordering as part of a package of food Reserve Roastery & Tasting Room
but more impactful menu items, Burger
and operations initiatives aimed at in its home market of Seattle, where
King introduced grilled hot dogs at
over 7,000 US locations. Tim Hortons
improving customer experience. Many massive industrial coffee-roasting
added menu items while emphasizing major brands recruited high-level equipment shares the stage with
its strength in coffee. technology specialists as omni-channel counters of Starbucks foods and
became a critical factor in fast food, as it branded tchotchkes. In China, Starbucks
Despite better economic conditions, is in retail. continued to aggressively open stores
the chains resisted raising prices
to establish a coffee culture aimed
and instead created value packages In China, international brands faced
Achieving intended to drive customer traffic local Chinese operators empowered by
especially at young people.
freshness with without excessive discounting and

mobile home delivery apps affiliated Starbucks also entered a partnership
Mobile ordering
margin erosion. McDonalds started
with the powerful Chinese Internet
consistent safety with a McPick 2 for $2 offer and later
brands Baidu, Alibaba and Tencent. Also Chains respond to with the music platform Spotify to shift
is a sourcing
switched to a more premium McPick
2 for $5. Wendys offered a 4 for $4 in China, Yum! Brands, which owns KFC, wider consumer
its long-time brand association with
music to digital. Starbucks locations have
complicates food
challenge
and Burger King sold a 5 for $4, which Pizza Hut and Taco Bell and operates
social concerns had a soundtrack for over 20 years and preparation timing
came with a dessert. 43,000 restaurants around the world, sold related CDs until recently. In perhaps
announced plans to separate its China its ultimate expression of brand self- Because of the shift in consumer
As the Chipotle news story Menu additions and improvements, business into a distinct company. The fast food brands are responding
confidence, Starbucks planned to open mindset, they now expect the
continues to unfold, it potentially such as cold-brewed coffee to consumer social concerns other
a store in Italy, the nation whose coffee ability to preorder. But preordering
becomes larger than the story of and breakfast sandwiches, also After rapid expansion in China, opening than health. Increasingly, they are
drove Starbucks sales. The chain
retail heritage inspired CEO Howard presents food preparation logistics
one fast food brand, as it shapes almost 7,200 units in 30 years, KFC was looking at animal welfare and the
experimented with an evening offering Schultz to purchase the brand in 1987. challenges for fast food restaurants,
consumer attitudes about local damaged by a food safety scandal, the treatment of employees. Consumers
of beer, wine and snacks, giving which cannot start a fry order 10
sourcing and food safety. Although effects of which were compounded who eat meat want reassurance
customers another reason to spend Another strong brand, Chipotle, tried minutes before the customer arrives
consumers say they prefer fresh by the rise of local competitors. that the animals are being well
time at the Third Place, the Starbucks to regain the confidence of consumers and simply hope that the food will
and locally sourced ingredients, term for its restaurants as a physical Establishing two separate companies treated. For example, they want
after a series of food safety issues that be hot and crisp when the customer
the problems of Chipotle highlight location and state of mind people visit would potentially enable Yum! Brands to eggs produced from chickens in
occurred because the chain relied on arrives. For fast food preordering to
the need to strike the right between home and work. grow rapidly in the rest of the world as it cage-free environments, although
local food suppliers, which complicated work, operators need to convince
balance between local sourcing recovers in China. its not clear that cage-free chickens
and left some gaps in supply chain consumers that preordered food
and adequate quality control More mobile automatically thrive. Consumers
quality control. Subsequently, Chipotle consistently would be ready on time
also want reassurance of safe and
over the supply chain. There is a
tension there between the need for Starbucks added mobile ordering to Building and sustaining respectful working conditions for
changed some food production and taste good. On the positive
processes, including centralization of
centralization to assure quality and
all of its company-owned US locations strong brands the people along the supply chain.
beef cooking, and worked to reassure
side, preordering where customers
and introduced mobile in Canada and use an app to make their selections,
hygiene, and the need to localize and attract consumers.
the UK. The company planned to add Erin Gentry could improve order accuracy.
in order to appeal to the locavore Along with making operational
features to its mobile app, including Global Co-Lead, Client Services
mindset and desire for freshness. improvements, companies addressed Jason Bass
suggested pairings intended to boost Hill+Knowlton Strategies Chipotle launched a price-driven
incremental sales. By July 2015, mobile consumer social concerns, particularly Group Director, Client Engagement
Phil Herr Erin.Gentry@hkstrategies.com marketing campaign that included
payments accounted for one-fifth of all about animal welfare issues, such as VML
Senior Vice President free burritos and buy-one-get-one-
Starbucks transactions. chickens being raised in cage-free Jason.Bass@vml.com
Millward Brown free offers. However, same-store sales
environments. Chains also addressed
Philip.Herr@millwardbrown.com declined over 14 percent in the last
Dominos Pizza, which views itself as an wages and other issues related to fair
e-commerce company, gained around quarter of 2015, reflecting consumer
treatment of employees. Starbucks
half of its sales online. Customers could disappointment, which was echoed in
associated its brand with contentious
even order by texting a pizza emoji. social media. Subway, the sandwich
debates in the US about race relations
Its digital strategy is part of the reason chain that first carved out freshness as
and guns.
that Dominos same-store US sales its competitive niche, contended with the
death of its founder as well as marketing
challenges.
3
18
2
18

6 The Categories
BRANDZ ANALYSIS
DISRUPTER BRANDS LEAD VALUE GROWTH
BRAND
Fast food is among the categories disrupted by changes in consumer expectations about product safety and
customer service. Consumers expect healthier ingredients, as they do in the soft drinks and personal care BUILDING
ACTION
categories. Consumers also expect even faster fast food, which is made possible by technology, specifically mobile
ordering. In general, the disrupter brands anticipated these trends while the incumbents responded to them.
The disrupters outscore the POINTS

disrupted in Brand Potential Brand Potential
The BrandZ Fast Food Top 10 divides roughly Disrupters

Incumbents
1
between brands that disrupted the market and 120
the incumbent brands that were disrupted by the Be healthy
market. The disrupters performed better than the
disrupted, scoring much higher in Brand Potential, a Consumers are seriously concerned about the
BrandZ predictor of future market share growth. healthiness of what they eat, and they are sensitive to
thoughtless, vague or misleading marketing descriptors.
101
102
101
2
2006 2008 2010 2012 2014 2016
Average Brand = 100 Be honest
Be straightforward in communicating about food.
Generalizations such as natural or natural ingredients
may raise more questions than they answer. Consumers,
And disrupters score high in Innovation and Responsibility especially millennials, are looking for honesty.
Brands that disrupted the category also scored

DISRUPTERS INCUMBENTS DISRUPTERS INCUMBENTS
higher on Innovation, which encompasses the
adoption of new technology, the introduction of
3
120 102 114 101
original menu items or brand communication. The Be socially responsible
high responsibility score is most likely linked with
DISRUPTERS INCUMBENTS DISRUPTERS INCUMBENTS
being responsive to consumer health concerns and Value meals and all-day breakfast may drive traffic.
being perceived as engaged in social issues. One But increasingly customers also wonder about
126 106 +454% +269%
impact of these high scores in key BrandZ metrics where the beef was sourced and whether the eggs
is that disrupters far outpaced incumbents in brand Brand Potential Responsibility came from chickens raised responsibly. And if the
value growth over the past 11 years. Average Brand = 100 Innovation % Value Change parents do not ask about sourcing, the kids might.
BRAND IMPLICATIONS 4 Be digital

Customers expect to be able to order and pay with their
smartphone, which means that fast food not only needs to
In a category disrupted by consumer concerns about health be healthier and of better quality, it needs to be even faster.
and service expectations, brands can be either in a state of
perpetual change or perpetual catch-up. Change is better.
5
18
4
18

Food and Drink >SOFT DRINKS
6 The Categories
SOFT DRINKS
Brands expand portfolios,
revise marketing strategies
As health concerns flatten carbonated drink sales
It was more of the same Monster, which entered the ranking

but different. Consumer for the first time. More start-up soda
brands appeared, usually with craft-
concerns about health and
style beverages that advertised natural
obesity continued to reduce ingredients and artisan credentials,
consumption of carbonated suggesting purity and healthfulness
Global Brands 2016
soft drinks (CSDs). But industry even though the products may contain
leaders responded with as much sugar as the mass-market
brand leaders.
strategies to expand portfolios
with healthier options, drive SOFT DRINKS TOP 15
+1%
Amid these challenges, Coca-Cola
Brand Brand Value
margin rather than volume, and doubled down on the power of the Value 2016
Brand
% Change
Contribution
strengthen their iconic brands. iconic red disk, changing its tagline $ Million 2016 vs. 2015
to Taste the Feeling from Open 1 Coca-Cola 67,749 5 -3%
Consumption of CSDs dropped Happiness and launching a one-brand
1.2 percent in the US, the eleventh strategy that markets original Coke 2 Diet Coke 12,565 3 -9%
Soft Drinks Top 15 consecutive annual decline, and per and three variations under the Coca-
Total Brand Value 3 Red Bull 11,667 3 3%
capita consumption reached its lowest Cola brand. PepsiCo removed the
point in 30 years, according to the sweetener aspartame from Diet Pepsi 4 Pepsi 10,025 4 -7%
$155.1 billion industry publication Beverage Digest.

Legislation aimed at controlling sugar
sold in the US. It also partnered with
a smoothie maker and introduced a
5 Lipton 8,554 3 N/A
content and artificial ingredients, in Hello Goodness program of vending 6 Nescaf 6,103 4 -4%
order to curtail obesity and disease, machines that dispense healthier
7 Fanta 5,637 2 -6%
continued to percolate in Europe, North products.
America and other markets, including 8 Nespresso 5,591 4 7%
India, as various jurisdictions imposed Pressures on the soft drinks category
9 Tropicana 5,557 4 -8%
consumer protection and revenue- resulted in a proliferation of choice,
raising measures. with multiple brands of energy drinks, 10 Sprite 5,236 3 0%
enhanced waters and other products
Energy drinks thrived regardless of spilling beyond the beverage aisle at 11 Gatorade 4,624 4 -1%
consumer concerns about ingredients. retail. The BrandZ Soft Drink Top 15 12 Monster 3,916 3 N/A
Red Bull ranked number 3 in the rose 1 percent in value, following an 8
BrandZ soft drinks category ranking. percent rise a year ago. >> 13 Dr. Pepper 2,687 3 0%
CATEGORY DEFINITION
Coca-Cola purchased a stake in 14 Minute Maid 2,644 3 -4%
The soft drink category includes
15 Mountain Dew 2,584 3 4%
7
18
these non-alcoholic ready-to-drink
beverages: carbonated soda drinks, Note 1: Diet Coke includes Diet Coke, Coca-Cola Light and Coca-Cola Zero
6
juice, bottled water, functional Note 2: The brand value of Lipton is restated this year to include the businesses of both hot beverages and
18
drinks (sport and energy), coffee ready-to-drink iced tea.

Source: BrandZ / Millward Brown (including data from Bloomberg).
and tea (hot and iced). Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 (lowest) to 5
(highest).

6 The Categories
INSIGHT
Focusing on Diversifying Brand marketing Responding to INSIGHT
the product brand portfolios health concerns
PepsiCo prepared to open a restaurant
Both Coca-Cola and PepsiCo continued called Kola House in Manhattans trendy
The new Coca-Cola tagline, Taste the Health remained an important concern
to diversify their brand portfolios. Meatpacking District. It will serve
Feeling, emphasized the product. It with a rising focus on sweeteners,
PepsiCo derives over 53 percent of Kalebs Kola, PepsiCos version of a craft
focused on the taste and the pleasure as consumers prefer natural rather
its profit from its snacks businesses; CSD. The menu will feature food with
in the moment of drinking that make than artificial ingredients. The health
CSD accounted for less than 25 variations on the kola nut.
consumers choose Coke. The more concerns are a global phenomenon and
abstract Open Happiness had percent of PepsiCo revenue. Coca- part of the millennial mindset.
Cola gains almost a third of its revenue PepsiCo took over from Coca-Cola
conveyed a higher brand purpose,
from products other than sparkling as the North American partner of
implying that with its universal appeal, Following a government report blaming
beverages, and that proportion is the National Basketball Association.
Coke could help heal the world. sugar, and especially sweetened soft
expected to increase. Mountain Dew will lead the partnership. drinks, for childhood obesity, the
Gatorade planned its sponsorship of the
By unifying all the variants under Coca- UK government announced a tax on
Health concerns Cola, the pleasure associated with Taste Of the BrandZ Top 15 soft drink brands, European Cup. Gatorade and Mountain
Dew, associated with sports and action,
sweetened drinks to take effect in
Coca-Cola or PepsiCo own all but these
shift from calories the Feeling becomes an attribute of
introduced virtual reality options. The
April 2017. The measure was intended
Coke, Diet Coke, Coke Zero and Coca- four: Red Bull, Dr Pepper, Nescaf and to encourage soft drink brands to
Brands should
to ingredients Cola Life. They become versions of the Nespresso. Coca-Cola owns Coke, Diet Mountain Dew Super Bowl ad featured reformulate their products. The British
same product, customized to meet Coke, Fanta, Sprite, Minute Maid and its Kickstart variant, which combines Soft Drinks Association argued that the voice leadership
a stake in Monster. PepsiCo markets Mountain Dew with juice and caffeine.
Health remains a prime consumer the customers desires and concerns
about sugar and artificial sweeteners. Pepsi, Lipton, Tropicana, Gatorade and As part of its global Do the Dew
industry already had in place a plan to
cut calories by 20 percent by 2020.
in sustainability
concern, but the nature of the
Mountain Dew. campaign, Mountain Dew planned to
concern is changing. In the past, the The four-into-one strategy is intended
introduce a campaign around drone While brand leaders are often
perceived health benefit came from to eliminate the suggestion that Coke The Belgian government announced
The soft drink leaders are expanding racing. making significant investments
low calories or low sugar content. drinkers who want to limit sugar intake that it would impose a tax on soft
into niche parts of the category, often in sustainability, they sometimes
Now, more and more consumers need to change brands. drinks in October 2016, as part of a
through acquisitions. These include Red Bull, which promotes its energy struggle to communicate about
want the health benefit to come larger initiative to cut consumption of
smart waters fortified with vitamins, drink by associating it with extreme these topics because theyre
from more natural ingredients. That Coca-Cola achieves marketing efficiency products deemed to have deleterious
for example, and other drinks that are sports such as mountain biking and accused of trying to distract
change has implications regarding by promoting one brand instead of health effects. In Mexico, where per-
viewed as healthier than CSDs. Coconut cliff diving, signed a deal to provide consumer attention from the health
the kind of sweetener that is added, Coke and several sub-brands. Linking capita soft drink consumption is high, a
water increased in popularity because it programming to Reuters through Red debate. For instance, Coca-Colas
and consumers favor natural over together the red Coke and versions with tax imposed on soft drinks in 2014 has
has the requisite elements: being healthy Bull Media, which creates the brands work on reducing packaging, water
artificial. The urgency varies by less sugar or calories also helps sustain resulted in at least a moderate decline
and functional. sponsored content. Red Bull also replenishment, and carbon emissions
country or region, and were seeing the Coke brand even as consumer in soft drink purchasing, according
provides content for a branded Netflix is increasingly relevant to consumers
the concern not only among moms, health concerns send CSD consumption to a recent report produced with the
Lipton, with a BrandZ valuation that channel. and demonstrates innovation and
but also teenagers. downward. countrys National Institute of Public
includes Unilevers ownership of the responsibility to stakeholders and
Health.
Gemma Francino hot tea business and a joint venture of In a transaction with Coca-Cola, investors.
Coke modified its packaging options
Senior Vice President PepsiCo and Unilever for its ready-to- Monster Beverage Corporation took
in North America, with larger sizes for But as more country markets, such as Rob Vance
The Futures Company drink iced tea business, appeared in the over ownership of Coca-Colas energy
value customers and smaller, premium India, considered taxation of soft drinks, Vice President
Gemma.Francino@ BrandZ Soft Drinks Top 15, reflecting drink portfolio and transferred to Coke
sizes with higher margins for customers debates continued over whether there Penn Schoen Berland
thefuturescompany.com the perception of tea as a healthier its non-energy brands, which include
who wanted to limit their intake. In India, are more effective ways to combat RVance@ps-b.com
beverage. Peace Tea and several natural sodas
Coke achieved affordability by selling obesity and diabetes, and if taxation
and juices. Nestls Nespresso brand
individual small cups at low prices is sometimes also about revenue
A more diverse portfolio of brands continued its global expansion, adding
through street vendors. generation or protectionism.
adds to the complexity of managing the Thailand, Romania, Senegal and other
business. In the case of Coca-Cola and African nations, to bring its Nespresso
PepsiCo, it requires managing specific, boutiques to 63 countries, including its
highly valued brands as well as a first flagship in Milan, Italy.
corporate brand that stands for a variety
of products. Along with driving the top
line, the leaders took costs out of their
businesses. Coca-Cola accelerated plans
to shift bottling to franchise networks in
North America and China.
9
18
8
18

6 The Categories
BRANDZ ANALYSIS
LOWER TRUST, LESS DRINKING
Consumers still love colas, but do not trust them much and are consuming less. Although consumers BRAND
BUILDING
feel somewhat better about other soft drinks, the category remains challenged. At the same time,
brand leaders are leveraging their strengths in Innovation, Brand Experience, and Brand Love to sustain
momentum as they recalibrate their offering to align more closely with changing consumer expectations.
ACTION
POINTS
Colas make up a And no soft drink sector inspires trust
diminishing portion
Consumers view non-
of category value carbonated beverages as Trustworthy
more trustworthy than colas
The total value of the
and other carbonated drinks,
BrandZ Soft Drinks Top 15
1
but even the non-carbonated 100
is shifting away from colas,
beverages score below average 98
99
Be Salient
which produce 58 percent
in trust, because consumer 97
of value today compared It is critical to keep getting the brand name out.
skepticism about ingredients
with 75 percent in 2006. 95 The need is not complex: Im thirsty. I need a
and healthiness affects the
93 drink. Build Salience, create a lot of good content
entire category.
and place it in the right environments.
Non-carbonated
Proportion of Value in
Colas
Soft Drinks Top 15 Carbonated (non-colas)
10% 18% 2006 2008 2010 2012 2014 2016
2 Be transparent
Average Brand = 100
75%
To be transparent is the right approach, and there is no
58%
other option in this era of rapid global communications.
But soft drinks do inspire love Although health concerns are primarily voiced in
developed parts of the world, they are heard everywhere.
Colas score relatively high in
three key BrandZ metrics: Brand Experience
Innovation, Brand Experience CARBONATED
3
NON-CARBONATED COLAS (NON-COLAS)
and Brand Love. The high scores
reflect the effectiveness of cola Understand the new generations
brands in creating new products, 108 107 102
In the past, the differences in attitude and values from
packaging and communications,
24% generation to generation were incremental. Now the world
15% as well as connecting with
consumers in ways that create
96 109 99 is changing so quickly, millennials are different from Gen
X-ers, and centennials are even more different. It requires
memorable experiences and
2006 2016 serious study to understand why young people are
build love for the brand. 112 106 100
Non-carbonated consuming soft drinks or not and to create marketing
Colas Innovation that speaks in a relevant way and in the right tone of voice.
Carbonated (non-colas) Average brand = 100
Brand Experience
Brand Love
4
Innovate
BRAND IMPLICATIONS Many young energetic brands have emerged that
are on trend with consumer needs. Established
brands need to stay ahead, or at least keep up.
Soft drink brands have managed to build love on lack of trust. That
accomplishment is surprising and counterintuitive. It suggests that the brands
1
19
have the ingenuity to sustain love while they build trust by shifting the brands
0
19
closer to consumer expectations for healthiness. Ultimately, a combination of

love and trust will be needed to sustain brand strength over time.

Thought Leadership >CULTURAL INSIGHT
CULTURAL INSIGHT
UNDERSTANDING
The worlds of beauty and personal care most timely angle. Asking culture how Territory for innovation
are no different. Today especially, so self-esteem is shifting can provide fresh
many timely notions and movements inspiration. Also psst - brands are culture too.
in culture have direct impact. From Fashion label Misguided might not be a
CULTURAL
a continued examination of beauty Amid the conversation around beauty brand (at least not exclusively),
ideals to moving beyond stereotypes shifting definitions of femininity and but it is shaping the context in which
and understanding women as masculinity, culture has moved towards a the industry operates. While the tide
multidimensional beings, and even deconstruction of gender in its entirety. of female empowerment has explored
CONTEXT IS
deconstructing the notion of gender Not only do we see male rapper Jayden notions of nurturing self-acceptance,
itself, the context in which these Smith modeling for Louis Vuitton shouty rebellion, and the depth of
categories exist has never been so womenswear, but the transgender intellect and achievement among others,
exciting. community has come to the very fore. Misguideds most recent campaign
It is against this landscape that Tom with Pamela Anderson presents a
ESSENTIAL
Getting it right Ford Skincare Men has come into being. refreshing antithesis. She delights in the
Borrowing tropes around aesthetics and ridiculousness of the male gaze and her
The brands that get it right are those that application from the world of female own freedom to express herself totally.
beauty, Ford introduces concealers, Pictured in a tiny bubble-gum pink
are constantly attuned into these shifts
FOR BUILDING
beauty masks and moisturizers that bikini and holding an inexplicable plastic
whether large or small. Ushering in a new
disrupt the marketplace, carve out a pink pistol, she is accompanied by the
era of appreciation for diversity with its
space to play and beg the question: if slogan: Reasons why Pamela Anderson
Real Beauty campaign, Dove has for a
cosmetics become genderless, what is our spirit animal. She wore this and
long time led a changing debate around
might this mean for the future of beauty didnt give AF. There is delight in the
beauty ideals and has made incredible
VALUABLE BRANDS
and personal care as it pertains to men absurdity and not giving AF-ness of it
headway in terms of how women view
and women? all. How fun! What a new and interesting
the world and women themselves are
viewed. However (curly-haired emojis articulation of female empowerment
Another success story is self-styled social that, despite feeling closer than ever to
aside - they rock), as it continues with
beauty brand, Glossier. Inspired by the what we have been trying to move from,
its treatment of self-esteem, the brand
social nature of our lives and a timely manages to completely subvert it.
starts to lag behind rapidly evolving
aesthetic of the natural look (read: I
Shifting attitudes about beauty

culture. The tide around femininity has
woke up like this), the brand is essentially Thats culture in action. It gives us
changed; a cacophony of voices tells us
a living Instagram feed gloriously subject matter. It tells us what people
that we are no longer in apology mode.
and gender illustrate the impact

styled, interactive and packed to the care about. It exposes tensions that can
That were quite all right as we are. That
brim with highly aspirational regular be leveraged. It provides territory for
its not all about just having a pretty face
girls (read: theyre not that regular). innovation.
anyway. Its not that self-esteem is a bad
#NoFilterJustGlossier doesnt just act as
topic weve seen Always address it in an
the brands ethos, but doubles as the war Ignore it at your peril.
No brand or category exists it effectively is the key to finding cultural incredibly powerful way with #LikeAGirl
levers ideas, notions and forces that cry of the coolest girl gang online.
its just that this no longer feels the
in isolation from the world. To
are already at play on consumers - to
treat them as such is to miss help brands connect with them in the
one of the richest inputs into most relevant, authentic and interesting
their success. ways.
Culture is marketings most powerful And its constant. New ideas get old ACTION POINTS FOR
LEVERAGING CULTURAL INSIGHT
(and potentially underutilized) tool quickly. Every notion has its eventual
for truly understanding the context antithesis. And those that once led the
in which brands, categories, and conversation can stagnate. Every brands
consumers operate. Its whats all success depends on its ability to listen.
To reconfigure. To know that it is not the
1 Culture
around us, shaping our values and how
center of anyones world. To heed what has
2 Dont
we think about things. It influences
what we buy and aspire to, whether culture tells it.
what you need get
3 Be creative
Laura Tarbox
Strategic Director, Cultural Insight consciously or subconsciously. Mining complacent
Added Value Look beyond your own four walls
L.Tarbox@added-value.com to find ideas, notions and forces in Leading the conversation once isnt Culture abounds with fresh ideas.
3
19
culture that can help your brand a ticket to forever. Stay tapped in, Be innovative and interesting
connect with consumers in the listen, learn and be prepared to with regard to what you leverage.
2
Added Value is a leading global strategic marketing consultancy providing

19
most relevant and interesting way. shift. Just like culture. Above all, have fun with it.
brand strategy, innovation, insight and communications services.

Financial>BANKS - GLOBAL
6 The Categories
BANKS / GLOBAL
Economic slowdown,
regulations, fintech
disruptors confront banks
Initiatives aim to build reputation and reach millennials
Global banks felt the impact of Financial technology (fintech)

slowing growth in key markets companies disrupted some banking
activities by providing transactional
like Brazil, China and Russia,
services, like payments. Most banks
the plummet in crude oil prices, responded relatively slowly because
and low interest rates. Among licensing and regulations securely
Global Brands 2016
the BrandZ Global Banks fenced the most profitable aspects of
Top 10, only the Spanish bank their businesses.
BBVA increased in brand value.
Banks worked to improve the retail
The Top 10 declined 11 percent
-11%
customer experience. Many banks,
in brand value, following a 2 including Goldman Sachs, Morgan
percent decline a year ago. Stanley and UBS, continued to enjoy
success managing higher-wealth clients.
Banks also faced reputational challenges But banks had less success attracting
and fines because of persistent the next generation of banking
Global Banks Top 10 regulatory compliance and legal customers.
Total Brand Value issues, even as they advanced efforts
to reform and reorganize their retail,
Attracting the GLOBAL BANKS TOP 10
$ 107.8 billion commercial, and investment businesses,
and attempted to improve customer next generation
Brand
Value 2016 Brand
Brand Value
% Change
service and attract and retain a talented
workforce. Attracting millennials requires building 1 HSBC 20,276 2 -16%
and sustaining trust with a group
that seeks the stability of a banking 2 Citi 17,055 2 -2%
Responding to the prospect of UK
regulations requiring banks to separate relationship, but can easily be diverted
3 J.P. Morgan 11,943 2 -12%
by the higher interest rates and ease of millennials prefer to establish trust
their investment businesses from
transaction offered online by disrupter through face-to-face encounters at 4 ING Bank 10,340 3 -11%
the rest of their banking activities,
brands. Banks often appealed to physical locations before making online
certain banks, including HSBC and 5 Santander 9,797 3 -20%
millennials with transactional products, transactions.
Barclays, began to divest holdings and
restructure. rather than with investment services 6 BBVA 9,148 3 5%
CATEGORY DEFINITION Barclays developed a program called
that can build loyalty and produce
LifeSkills, an elaborate online resource 7 Barclays 7,509 2 -15%
In the US, major banks faced higher greater profitability.
The bank category, which includes aimed at helping potential young 8 Goldman Sachs 7,462 3 -10%
both retail and investment
capital reserve requirements and
However, banks began to analyze customers gain practical skills needed
institutions, is split into two government scrutiny requiring banks
the vast data they have on millennial for success in the workplace. Separate 9 Morgan Stanley 7,304 2 -12%
5
segments, with the brands classified to prove their ability to survive a
19
as either global or regional. Global customers. New research by WPPs modules addressed young people and
financial crisis without public bailout. Citi 10 UBS 6,991 2 -12%
banks are defined as deriving at Vermeer contradicted conventional those who can help them, including
4
aggressively trimmed its business and

19
least 40 percent of revenue from wisdom and suggested that many parents, teachers, and businesses. >> Source: BrandZ / Millward Brown (including data from Bloomberg)
business outside their home market. successfully passed this stress test. Brand Contribution measures the influence of brand alone on earnings, on a scale of 1
(lowest) to 5 (highest)

Financial>BANKS - GLOBAL
6 The Categories
INSIGHT INSIGHT
In a campaign that spans generations,
Disruption and Attracting talent
HSBC focused on supporting human INSIGHT
ambition. The campaign includes regulation
If banks are to implement reforms and
a clever commercial called The
customer service improvements, they
Museum of Procrastination, which Start-ups challenged banks with
must hire and retain talented people.
is full of unfinished novels and other products that included microlending,
The challenge for bank brands is that
abandoned projects. It ends with the peer-to-peer payment services, or
their reputational baggage, combined
line, Wherever your ambitions take savings accounts at higher interest
with work environments perceived as
you, at HSBC well help you on your rates, which provided services that are
stodgy, dissuades young people from
way. profitable, but fall outside of licensing
pursuing careers in financial services,
regulations. Focused on other business
when compared with seemingly more
Efforts like this were part of a banking priorities, and weighted by a legacy
exciting categories like technology.
industry attempt to strengthen of traditional systems and physical
reputation with more emotional locations, the major bank brands moved
Citi introduced several options to better
more slowly.
Focus on young
marketing, including TV commercials.
Banks seemed better able to sustain
match the needs of young people Millennial service
seeking to balance career advancement
and less affluent consumer trust in their competence The major bank brands are likely
with social action priorities and other needs to be more
rather than their character because of Consumer attitudes to gain innovative technology by
interests. The program accelerates than transactional
is key to growth the steady drip of negative publicity. acquiring these start-up companies
To repair and strengthen brand about banks vary over the next few years. This acquired advancement opportunities and also
provides an opportunity to take a year
expertise should help banks attract Building relationships and loyalty
A large number of banks have the reputation, banks also implemented
programs to reach the unbanked and
by level of wealth millennial customers. Most major banks off to pursue charitable endeavors. among millennials presents some
desire to grow their investments
economically disadvantaged, and have not become directly involved in special challenges. It sounds counter-
business in the US. In order to achieve As banks attempt to rebuild Another Citi option enables young
they improved the social responsibility this business, although J.P. Morgan intuitive, but our research shows
this feat, banks should focus on the reputation following the financial employees to spend a month in Kenya
profile of their investment portfolios. purchased almost $1 billion of loans from that, although millennials spend
younger and less affluent segment crisis, its not useful to view working on microfinance projects.
Lending Club, an online peer-to-peer a lot of time online, they value
of consumers. The key will be to help consumers as a monolithic group. Goldman Sachs changed the tasks
As part of its Think Forward financial exchange. the interaction that happens at a
these individuals with more modest Attitudes towards banks vary assigned to new bankers to make the
strategy, ING Bank implemented a set physical location. Its important for
levels of assets grow into the higher by tiers of affluence. The more work more varied and interesting. J.P.
of values and behaviors it called the In contrast, innovative banking building trust. Building a relationship
stratums of affluence over time.The affluent consumers probably Morgan allows young workers to spend
Orange Code. It is an effort to create technology, particularly mobile, is and establishing trust is especially
most desirable affluent consumers rebounded financially following the a portion of their time helping non-profit
a culture in which bank associates are growing rapidly in parts of the world important with millennials because
have created long-standing sticky financial crisis, and perhaps even organizations.
expected to be honest, responsible that have lacked banking infrastructure, even with many convenient digital
relationships and seldom switch their took investment advantage of the
and prudent, to make things happen, such as Africa, where brands like banking options available to them,
primary provider.By developing downturn, while less affluent folks Banks also continued efforts to build and
to help others succeed, and to Kenya-based Safaricoms M-Pesa theres still something reassuring
strong, high-touch relationships have continued to struggle and are sustain awareness. Citi, founded in 1812 as
be proactive. ING Bank moved leapfrogged into mobile banking. In about a personal connection when it
early on, banks have the propensity probably more cynical or angry City Bank of New York, brands the bike
through a corporate restructuring to China, consumers use Alibabas Alipay comes to their finances. Banks so far
to build share of wallet and obtain share program that prominently places
foster a level of interdepartmental Tom Russell or WeChat from the Internet portal mostly have marketed transactional
a larger share of the investments the name of the bank around the streets
collaboration that can result in Managing Director Tencent to move seamlessly between services to millennials. Although
business. of New York. Santander brands the
programs that better anticipate and Mindshare social media, e-commerce and payment banks have extensive data on these
Charles Schembri London program originated by Barclays. customers, banks have just begun
meet customer needs. Tom.Russell@mindshareworld.com utilities.
Vice President, Financial Services While experiencing strong results in the to make sense of the data, so most
TNS UK, Santander faced difficulties in key havent created strategies to build
Charles.Schembri@tnsglobal.com markets like Latin America. their investment businesses around
millennials.
Victoria Sakal
Consultant
Vermeer
Victoria.Sakal@mbvermeer.com
7
19
6
19

Financial>BANKS - REGIONAL
4 The Categories
BANKS / REGIONAL
Local economic RBC, Canadas largest bank, advanced
its expansion into the US with the
acquisition of City National Bank. It also
Wells Fargo operated in over 8,600
locations throughout the US, with
concentrations on the east and west
payment apps. Standard Bank and
Absa focused on digital transformation,
trying to understand customers across
factors impact
responded to the challenge of financial coasts. The bank has substantial digital channels and engage customers
technology disruptors, with about 5 interests in the oil and gas business, based on their needs in real time.
million customers banking digitally each with over 625 customer relationships
month, 2 million of them using mobile totaling around $42 billion in oil and gas Using data analytics, the banks
devices. The bank also introduced a loans and other exposure. attempted to understand customer-
bank performance
mobile wallet. specific needs and respond quickly and
Wells Fargo was one of several major appropriately with the relevant product,
US banks that failed to meet the such as a mortgage, a car loan or a
stress-test requirements of the US credit card. Operationally, the banks
INSIGHT government. US bank, which operates integrated their marketing, technology
Oil industry loans erode results in North America over 3,100 branches in 25 states,
increased commercial loans and also
product development and other teams
to work collaboratively.
felt the impact of loan exposure in the
oil and gas industry. Regional banks generally have
The BrandZ Regional Banks a key global currency, elevating it to
the status enjoyed by the dollar, euro, attempted to emphasize retail
Top 10 declined 12 percent
in value, compared with a 1
pound and yen. Innovation in experience. Russias Sberbank, for
example, transformed a Soviet-era
percent rise a year ago. Except other regions institution into a more consumer-focused
The local economy and the slowdown
Top 100 Most Valuable brand. Banks in Saudi Arabia and
for HDFC, an Indian bank that in China were among the factors
Global Brands 2016 Banks in other regions of the world Dubai, typically focused on corporate
joined the category ranking impacting Australian banking. The
appearance of Indias HDFC reflects added innovations. In South Africa, investment, are now expanding into
Category Brand Value Change for the first time, each regional retail banking with approaches that are
consumer confidence, liberalized banks partnered with technology
bank brand declined in value. companies to engage customers compliant with Islamic laws governing
regulations and government programs
-12%
financing and interest.
The composition of the BrandZ
drawing investment to improve Indias
infrastructure.
New payment apps with useful services, including mobile
Regional Banks Top 10 suggests how

a combination of local and global
with social media
economic factors drove these results;
In North America, the Canadian and US
banks enhanced customer service and
drive engagement
four of the local banks are Chinese, four
expanded digital and mobile banking. REGIONAL BANKS TOP 10
Regional Banks Top 10 are North American (two US and two Through Africa, were seeing an effort
However, lower interest rates, regulatory Brand Brand Value
Total Brand Value Canadian); one is Australian and one to engage customers with a massive Value 2016 Brand % Change
pressures and exposure to oil and gas
(HDFC) is Indian. amount of innovation, especially with $ Million Contribution 2016 vs. 2015
industry loans hurt performance. And
payment mechanisms and integration 1 Wells Fargo 58,540 3 -1%
$222.9 billion The decline in value of the Chinese
the strength of the US dollar impacted
Canadian bank results.
of social apps, such as WeChat, part
banks primarily reflects the slower of Chinas Internet portal, Tencent. 2 ICBC 33,637 2 -13%
growth of the Chinese economy and WeChat users, with a tap of their
problems with non-performing loans. Customer experience smartphone, can make payments
3 RBC 19,635 4 -18%
But the brands are also negatively through their banks to friends, 4 China Construction Bank 19,617 2 -11%
impacted by the entrance of Chinese In its US operation, Canada-based TD retailers and other providers. The
developed and implemented a strategy 5 TD 16,543 3 -20%
social media brands into financial banks view this as an opportunity to
technology, particularly with payment aimed at differentiating the bank with connect with the enormous audience 6 Agricultural Bank of China 16,331 2 -19%
systems. a reputation for positive customer on WeChat.
experience and convenience, including Commonwealth Bank
7 16,227 3 -21%
of Australia
As more Chinese companies expand banking hours during the weekend. Richard Mullins
abroad, encouraged by government Using the tagline Americas Most Managing Director, Middle East 8 HDFC 14,440 3 3%
programs to build global brands, the Convenient Bank, TD communicated and Africa, Acceleration
a message around customer service, 9 US Bank 14,098 2 -5%
Chinese banks should become hedged Richard@acceleration.biz
against the fluctuations of the Chinese particularly to upscale clients. The 10 Bank of China 13,803 2 -16%
economy. The International Monetary bank was successful in cross-selling
9
19
Fund added the Chinese renminbi as customers its various offerings, which Brand Contribution measures the influence of brand alone on earnings,
particularly helped grow the banks on a scale of 1 (lowest) to 5 (highest).
8
19
wealth management businesses.

Financial>BANKS
6 The Categories
BRAND
BRANDZ ANALYSIS BUILDING
REGIONAL BANKS NOW VIEWED AS UNCARING
ACTION
Consumers continued to perceive banks as uncaring. This legacy of the global financial crisis endures because of ongoing
negative publicity that undercuts the organizational and communication improvements banks have made. Until now, consumers
were less critical of regional banks, but that has changed, in part driven by attitudes towards regional banks in China.
POINTS
1
Consumers increasingly Uncaring is especially an Being seen as caring
view regional banks as issue for Chinese banks helps drive brand value
Cultivate brand identity
uncaring Consumers have a lot of banking choices. Create and
The view of regional banks as uncaring Both global and regional banks face develop a point of differentiation to distinguish the brand
Consumer perception that regional is especially prevalent in China, where the challenge of convincing a skeptical and attract and retain customers. And keep rebuilding
banks are uncaring rose dramatically just technology brand leaders have disrupted public that they care and are in character and trust, which have been ongoing category
in the past couple of years, and today banking with mobile payment utilities business to help make customers lives issues for banking since the global financial crisis.
regional banks have surpassed global and more favorable interest rates. At better. Although no banks have totally
banks in being viewed as uncaring. the same time, the regional banks overcome the publics residual distrust of
remain insufficiently differentiated. And the category, many are improving their
actions that Chinese banks have taken operations, social-action commitments
Uncaring
Regional
115
in response to a rise in underperforming
loans may have increased the perception
that they are uncaring.
and customer communications. Over
time, these initiatives should help
convince consumers that banks Make
2 Be an innovation leader
Offer digital services and utilities before they are picked off by financial
Global
Peoples Lives Better. That belief has technology start-ups. Regulations and licensing requirements create a high
114
111 important commercial benefits; banks barrier to entry, at least for now. But complacency is not only dangerous - it also
108 Uncaring with lower scores on this BrandZ squanders an opportunity for bank brands to create new products and services
metric declined in brand value 21 based on insights they can derive from vast amounts of customer data.
119 percent since 2006, but brands that
scored higher declined only 6 percent.
111 112
2006 2008 2010 2012 2014 2016
3
108
Average Brand = 100
Global and regional banks seen as uncaring. HIGHER LOWER Welcome younger and less affluent customers
SCORE SCORE
China
Elsewhere These audiences may not drive profitability and share price now, but waiting
-6% -21% until they do may be too late. Crowd funding is one area to potentially compete.
2006 2008 2010 2012 2014 2016
% Value Change By definition, crowdfunding is about non-traditional transactions. But banks
Average Brand = 100
China and Elsewhere banks seen as uncaring. Banks seen to Make Peoples Lives Better. can leverage their traditional strengths, such as providing security. If well
communicated, this would draw the attention of younger customers.
BRAND IMPLICATIONS 4 Attract young talent

Be receptive to the ambitions of young people and their interest in technology
and innovation. Perhaps adapt a part of the bank to be more receptive to the
It is taking time for banks to repair their brands following the global financial crisis. style and interests of creative technologists. If the bank gains its technology
expertise through acquisition, preserve and nurture the acquired sub-culture;
But repair is possible if banks make genuine improvements and communicate it will balance the established, secure and stable strengths of the bank. This
them well. The payoff is a stronger brand and a measurable rise in brand value. combination can be differentiating and worth communicating.
1
20
0
20

Financial>INSURANCE
6 The Categories
INSURANCE
Insurers broaden their
coverage to meet risks
of a changing world
Digital start-ups challenge category niches
Both business-to-business and targeted niches of the insurance

business-to-consumer brands business, often with specialized, digital,
price-driven products. In addition, a
developed new products to
prolonged period of low interest rates
meet the insurance needs of has impacted the investment return for
globalized and interconnected some insurers.
Global Brands 2016
times, when potential risks
seem more unpredictable and Met Life re-appeared in the BrandZ
Insurance Top 10, based on its strength
disruptive, and include not only
in the US . The Insurance Top 10
calamitous natural disasters,
+2%
increased 2 percent compared with a 21
but also events such as cyber- percent rise a year ago.
attack and terrorism.
Managing more
Property and casualty insurers offered
products to manage the risks resulting complex risk
Insurance Top 10 from new businesses enabled by digital
Total Brand Value commerce and the sharing economy, For the business-to-business brands,
such as Airbnb and Uber. And for the risk has gotten more complex, with INSURANCE TOP 10
known and unknown factors potentially
$82 billion times when personal information is
criminally misappropriated, insurers also threatening businesses and corporate
Brand
Value 2016 Brand
Brand Value
% Change
reputation. Insurance decisions once $ Million Contribution 2016 vs. 2015
covered identity theft.
made on a tactical level now more often 1 Ping An 16,910 2 6%
Some business-to-business insurance command the strategic attention of the
CEO. 2 China Life 16,712 2 -4%
brands expanded into advice and
consultancy roles, particularly in human 3 AIA 10,545 2 10%
resources, because talent is so vital to Even as business-to-business brands
success, and an effectively managed expanded the kinds of risks they 4 State Farm 9,052 2 8%
human resource department can limit insured, they continued to respond
5 Allianz 6,392 3 7%
business risk. These new practices to natural disasters and other similar
also helped insurance brands be more events. Unusual flooding in the UK and 6 AXA 6,378 2 9%
differentiated and less commoditized. Ireland as well as the explosions in the
7 Geico 4,832 2 -7%
Chinese port city of Tianjin created
CATEGORY DEFINITION Even as major insurance brands pursued claims for Zurich. >> 8 CPIC 4,681 2 -9%
these new opportunities, however,
9 Prudential 3,292 1 -5%
3
smaller financial technology brands
20
The insurance category includes
brands in both the business-to 10 MetLife 3,235 2 N/A
consumer (life, property, and
2
20

casualty), and business-to-business Brand Contribution measures the influence of brand alone on earnings, on a scale of 1
sectors. Health insurance is excluded. (lowest) to 5 (highest)

Financial>INSURANCE
6 The Categories
Because of their size, major insurance connecting with a disruptor brand or a Global growth
INSIGHT brands faced intense government brand aggregator a kind of Travelocity INSIGHT INSIGHT
scrutiny and regulation. Under the US for the insurance category prevalent in Brands continued their international
Dodd-Frank reforms that followed the UK. growth. To expand its presence in
the global financial crisis, insurers Africa, AXA acquired a 7 percent stake
such as AIG, MetLife and Prudential Allianz, which enjoyed a positive in African Reinsurance Corporation. It
were considered too big to fail and year, particularly in the property and also increased its commitment in India,
thus required to maintain high capital casualty business, focused attention raising its stake in a joint venture with
reserves. MetLife argued against that on developing its digital capabilities to Bharti Enterprises from 26 percent
designation in a court battle and won. reduce the impact of smaller disruptive to 49 percent. The French company
The brand intends to spin off its life digital competitors. Frances AXA offers life insurance as well as property
insurance business so it can operate as formed AXA Strategic Ventures, a and casualty coverage, along with
a more nimble entity. venture capital fund to support the asset management and banking, and
development of digital disruptors for operates primarily in Europe, North
For most brands, the key the benefit of AXA. It also launched America and Asia.
communication challenge in a largely Kamet as an incubator for insurance
commoditized category remained technology products. In China, where the insurance industry
Brands must having a proposition that clearly
B2B brands is growing rapidly, large insurers Small disruptor
added value to peoples lives and Smaller disruptor brands like Oscar,
develop or buy explaining that proposition in a clear Lemonade, or PolicyGenius effectively moving into new
leapfrogged into new products to
meet the evolving needs of the rising
brands offer price
innovation and compelling way. Insurance brands used digital communications to reach
opportunities, like middle class. Brands like China Life or even premium
looked for emotional ways to sell a millennials and other audiences with
The insurance providers are complicated, low-engagement product. specialized products that eliminate human resources
and Ping An have become diversified
financial services providers whose
differentiation
harnessing new technology and or blunt some of the pain points in broad offerings include even specialized
Geico continued to use the gecko lizard insurance purchasing. Lemonade, Business-to-business insurers are More small players are entering the
analyzing big data to create more investment products to help parents
in its ads, which mostly emphasized for example, takes a peer-to-peer using data and analytics to drive market and intruding on the larger
relevant products for customers. afford overseas education for their
price. These ads drove awareness, approach, introducing an insurance better understanding of new and brands. In the insurance space, this is
Theyre beginning to explore children. China Life operated with
presenting the product in a way that is model built for the sharing society. emerging risks, creating opportunities the first year weve seen that smaller
insurance product innovations almost one million agents throughout
likeable, memorable and, by virtue of its to deepen their relationships with brands, with much lower awareness,
because they realize the business China.
communication style, differentiated. The In the peer-to-peer model, individuals clients. In the same way that banks are growing in awareness and
is commoditized with brands
campaigns deeper signal is that Geico purchase property and casualty have become trusted advisors to their consideration, while the big guys are
competing largely on price. Although AIA, which serves 18 Asia-Pacific
offers a simpler and more approachable policies for a lower cost because of clients across their balance sheets, staying where they are, even as the
it is difficult to switch, consumers markets, increased the value of new
way to buy insurance. the shared risk. The approach differs insurers are positioning themselves smaller brands rise and infringe on
today are less loyal to any one business in China by 45 percent, driven
from traditional insurance because to manage their clients full book of their space with offers that compete
provider and they are less likely in part by an increase in the agent sales
State Farm adopted an approach that individuals form the risk pool and risks to help them unlock capital and on price or even fill a niche for more
to refer customers. For the major force. Allianz entered a joint venture
encourages customers to customize a receive a refund if money is left when opportunity elsewhere. There is a premium products.
insurance brands, the question is not with Baidu, a leading Chinese Internet
whether to embrace new business menu of options to create a policy that the policy terminates. Founded by trend, for example, of insurers moving brand, to access an enormous digital Edward Chiaramonte
approaches, but how to enter those best meets their needs. State Farm, technology entrepreneurs, Lemonade is into human resources consulting, audience of potential customers. Director, Client Management
businesses, and whether to develop traditionally positioned as a good managed by veteran insurance industry advising clients on their people risks, Millward Brown
those products internally or partner neighbor, promoted many community- executives. Other peer-to-peer start- since talent is a fundamental source While the Chinese insurance brands Edward.Chiaramonte@
with a new disruptor brand. based service projects in partnership ups include Friendsurance in Germany, of risk and opportunity for most are trying to gain customers, because millwardbrown.com
with a well-known US TV host. Guevara in the UK, and TongJuBao in businesses. penetration is still relatively low, they
Victoria Sakal China. are also working to establish lifelong
Consultant
Vermeer
Anticipating disruption Will Dunn relationships with existing customers by
Not all technology advances disrupted Account Director selling them relevant products for each
Victoria.Sakal@mbvermeer.com the category. Most insurers have Hill+Knowlton Strategies
Agent networks remained a core life stage. The brands heavily use digital
channel for acquiring and retaining online programs that help individuals Will.Dunn@hkstrategies.com and mobile to accomplish both of these
customers, but young people were less understand their risk at various life goals, even using location technology
inclined to use them. When they see a stages. State Farm received US to offer temporary insurance based on
need for insurance, young consumers government approval to test the use a particular experience, such as a skiing
are more likely to shop online, of unmanned drones for assessing roof holiday.
damage during claims adjustment.
5
20
4
20

Financial>INSURANCE
6 The Categories
BRANDZ ANALYSIS BRAND

CHINESE BRANDS GAIN CONFIDENCE
BUILDING
Insurance brands are becoming more assertive, a BrandZ brand personality measurement of confidence. Brands are also doing
a better job analyzing their data in ways that improve customer experience. The increase in insurance brand assertiveness is most ACTION
POINTS
apparent in Asia, particularly China, and Asian insurance brands now produce the majority of value in the BrandZ insurance category.
Chinese brands grow the Asian brands drive And Asian brands score
category category brand value high in key BrandZ
metrics
1
As insurance brands in the US Asian insurance companies now
and Europe gradually increase in comprise 60 percent of the value of the In the BrandZ metrics of Innovation,
Be present
assertiveness, brands in China are BrandZ Insurance Top 10, compared Brand Experience and Brand Love, Asian Salience is important. Be out there, but also
rapidly increasing on that quality. They with a negligible amount in 2009. The insurance brands outscore European give consumers reasons to select the brand
are also broadening their offering of Asian brands are primarily Chinese but and US brands, which score only because it is different in some meaningful
financial products and services and also include AIA, a newcomer to the average. Asian brands have adopted new way, and also because it reaches people
expanding their agent teams to reach BrandZ Global Top 100 that operates technology and have done a good job with the right message at the right time.
4
more members of Chinas expanding throughout the Asia-Pacific region. communicating the value of their service,
middle class, including those living in which helps drive Brand Experience and Seek useful insights
smaller cities and towns. Brand Love.
Proportion of Value in Analyze big data intelligently to
2
meet customers actual life needs,
Assertive
Insurance Top 10
EUROPE US ASIA
Be consistent and not just the business needs
4% to upsell and drive revenue.
60% Make sure that all of the touch points are
Asia
US/Europe
111
96% 98117 101 112 connected. The agents need to live the
108 brand the same way it appears on TV,
105 98118 101 112 online or anywhere else. The customer
5 Be in the conversation
journey from first car to life insurance
101 policy should be seamless for the brand.
95 97 109
40% Business clients are talking about the risks
of an uncertain and connected world,
2006 2008 2010 2012 2014 2016 Innovation
Brand Experience such as cyber security and terrorism.
3
Average Brand = 100
Brand Love Demonstrate that the brand has the data-
Average Brand = 100 Be relevant driven insights to understand and manage
2006 2016
Asia
those risks and, consequently, free up the
US/Europe Innovate with products that meet each
clients capital for other initiatives.
customer need. Consider both the needs that
change with life stages, but also those that
Source: BrandZ / Millward Brown result from societal developments. Insurance
brands can cover the risk of a weekend ski
6 Define the brand clearly

trip or renting ones home to travelers.
BRAND IMPLICATIONS Define the brand clearly before

circumstances define or redefine it. The
Lessons can be learned from Chinese insurance issues are complicated today and the
full stakeholder set includes the public
brands, which are innovative in the products they offer
and governments. Being unknown is not
and their use of technology. The brands also have done a brand advantage.
a good job communicating the value of their offerings.
7
20
6
20

Thought Leadership >SERVICE EXPERIENCE
SERVICE EXPERIENCE
APRONS AND It used to be acceptable, for a great many people, to stand in the pouring
ALGORITHMS
rain with your arm held aloft hoping a yellow sign on the top of a cab
would come by and the driver would spot you through the wipersand
condensation. Youd jump in, explain where you needed to go, and on arrival,
fumble in your pocket or purse while feverishly working out the right level of
BOTH NEEDED TO
tip to offer and making sure you didnt lose the receipt, which was either the
size of a postage stamp or a club flyer. Now you wait in the warm, knowing
exactly when the car (make, model and reg number) will arrive - you know
the drivers name, he/she knows yours, where youre going, you say hello,
MEET GEN PICKY

they say hello and goodbye, its paid for and a digital receipt arrives 30
seconds later, with a map of where you went to remind you.
EXPECTATIONS Perfect - the physical, digitaland humanworlds

working neatly together - everything much more
It all went a bit Piggly Wiggly
FOR SERVICE
rewarding and easy. Except, now when we see the As we all know,servicehas changedthoughthe
little car icon on the screen indicating whereabouts the years, from the classicandcharming over-the-
driver is on his route to get you - you scream, Why counter service, (sepia images and rose-tinted-
did he go that way, if hed taken the first left he would glasses moment) where aproned shopkeepers
EXPERIENCE
have been here in two minutes, not three. Theres no knew you, and all that youliked,andwould
pleasing some people. graciously get you the products from their
vast array of stock - conversations would
It doesnt matter whether youre a baby boomer, Gen ensue and new products would be verbally
X, Y or Z, we are more demanding and expectant than promoted Weve just gotthisin, you eat them
ever - we live in a user experience world where OK is no at breakfast and theyre called Corn Flakes
longer OK. Today the experiences we have are directly a very socialandhumanexperience. But it
People still make the difference in related to the service we perceive were getting. This
becomes even more important to the younger end of
was inefficient,andwe were increasingly in a
hurry,andso the emergence of self-service, firstly in
physical and digital store experience

Generation Picky - themillennialsand the Generation the wonderfully named Piggly Wiggly Supermarket
Zs are shifting dramatically in their appreciation of, and chain in Memphis, Tennessee. Wehelpedourselves
spending habits with, brands and retailers. in aislesandpaid at checkouts. >>
Tim Greenhalgh
9
Chairman and Chief Creative Officer
20
FITCH Designing the future. FITCH transforms consumer experience and accelerates business
Tim.Greenhalgh@fitch.com success. We deliver seamless solutions by combining the physical, human and digital
8
20
@timghalgh @FITCHDesign elements of a brand to create unique experience signatures.

Thought Leadership >SERVICE EXPERIENCE
SERVICE EXPERIENCE
We now, typically, live in a hybrid environment of self-and- The importance of aprons

automated service, where products are picked for us to
collect or have delivered - but now as the omni-channel Once the insights have been gained into peoples DELA
world ensureseverythingis connectedandever more heart/mind states the art comes in understanding how
efficient, this seamlessapproachis only the plumbing or the best to create a meaningful and memorable experience or
Science ofExperience. How dobrandsand retailers ensure service. For this we need to understand the different roles
the Art of Experience is not lost? To quote a friend of mine, that a physical or digital execution can offer. But as with
David Roth: You cant omni-channelyourway out of a poor
proposition.
all great TLAs (three letter acronyms) the third element is ACTION POINTS
FOR BUILDING
probably the most important - how we build in the human
factor - So PHD (Physical, Human, Digital) becomes the art.
The Art of Experience The role of physical is changing but it still offers the best SERVICE
In 2015, a Harris Research Report found that 78 percent
in terms of tactility and sensorial moments, which for
many brands is important - digital is increasingly the way
EXPERIENCE
of millennials prefer to spend money on experiences
over buying products, which seems to confirm an earlier
people choose to go and for good reason - it provides ease,
ultimate choice and the algorithms ensure we never miss a
CULTURE
hypothesis, reported in a 2014 Harvard Business Review
beat - it anticipates and satisfies our needs and wants - but
article titled, The Ultimate Marketing Machine, which
the aprons still need their day and sadly for many brands
asserted, The most important marketing metric going
staff are seen as a cost or a functional need - whereas in
forward will be Share of Experience.
1 Look around
an increasingly undifferentiated brand world they are the
linchpin that unites the physical and digital aspects of any
Today consumers are as interested in what they can achieve
future service experience.
with you as what they can buy from you and as such it would Look to other categories that approach service in different
seem inevitable that more than ever we need to understand ways than your own. The hospitality industry might offer the
By the way, when the driver did eventually arrive, two
their mind-states andheart-states and marry those to the financial sector a whole new way of dealing with customers.
minutes later than I thought - he explained that there had
most suitable interactions and user experiences that deliver
been a collision at the traffic lights. Thanks Larry and I gave
the rewardand ease they are looking for.
you five stars for saving me time.
2 Know the pain points

At FITCH webelieve there are four basic emotions that
consumers go through when they are looking to engage
with a brand or buy a product or service. At any one time we
Use a UX, or User Experience, approach to creating
believe they are Dreaming, Exploring, Locating or Achieving
the experience. Be clear on the pain points in the
(DELA). These heart/mind states go from I have a strong
customer journey and design around them.
desire, to I am notentirely sure what I need, to I know
what I want and finally, Is this brand, product or service
offering me more, or a reason to use or buy again?
3 Aim for social mentions

Understand that experiences are becoming social currency,
markers on peoples timelines. Will your service experience
be something worth Instagramming or Tweeting?
1
21
0
21

Commodities>OIL & GAS
6 The Categories
OIL & GAS

Record low crude prices
impact financial results
Brands continue pumping oil but pivot to gas
A combination of global geo- of low crude prices, the major brands

political and economic factors enjoyed strong margins on their
petrochemical products.
produced excess supply and
weakened demand, resulting However, weakened demand hurt less
in the collapse of benchmark diversified independent companies,
Global Brands 2016
crude oil prices from over $100 including many US shale gas producers,
per barrel in 2014 to around but even they sometimes kept pumping
to generate the cash needed for
$35 at the end of 2015. The
servicing debt. The number of drilling
value of the BrandZ Oil and
-20%
rigs operating in the US dropped by
Gas Top 10 declined 20 percent, over 50 percent to less than 500 in
following a 6 percent rise a year just a year, hurting many of the service
ago. companies that operate them.
Under financial pressure, integrated The oil glut produced lower prices at
Oil & Gas Top 10 the pump, which seemed to diminish
oil companies cut capital spending,
Total Brand Value public interest in clean energy
imposed layoffs and postponed
projects. But they continued to pump, alternatives. However, in part because OIL & GAS TOP 10
$92.2 billion even storing excess inventory on
offshore tankers to protect market
2015 was marked by oil and gas industry
disruption and uncertainty of crude
Brand
Value 2016 Brand
Brand Value
% Change
$million Contribution 2016 vs 2015
share and to be poised for any market oil prices, it was also the year that the
recovery. The majors also sold assets, in investment in renewables for power 1 ExxonMobil 16,838 1 -18%
part to pay dividends expected by major generation exceeded the investment in
2 Shell 14,940 1 -21%
shareholders such as pension funds. hydrocarbons.
3 Sinopec 13,206 1 -24%
The brands paid uncharacteristic The international community
reinvigorated the conversation around 4 Petrochina 12,341 1 -18%
attention to their downstream
businesses. Shell operates 45,000 climate change and provided new 5 BP 10,552 1 -18%
service stations worldwide, for example. clarity about the future of energy. A
historic accord reached at the Paris 6 Chevron 7,047 1 -22%
BP aggressively expanded its service-
station convenience-store business. Climate Change Conference made 7 ConocoPhilips 5,239 1 -9%
Sinopec continued its efforts to leverage reduction of carbon emission a goal
the more than 30,000 locations it of the international community, with 8 Total 4,796 1 -18%
CATEGORY DEFINITION operates throughout China. Because progress to be measured every five
9 Rosneft 3,833 1 -23%
3
years.
21
The oil and gas category includes 10 Gazprom 3,411 1 -34%
2
both private International Oil

21

Companies (IOCs) and state-owned Brand Contribution measures the influence of brand alone on earnings, on a scale of 1
National Oil Companies (NOCs). (lowest) to 5 (highest)

6 The Categories
Tilting to gas Repositioning to its retail business with a campaign

INSIGHT
communications
promoting a cleaner fuel containing an BRANDZ ANALYSIS
Even before low crude oil prices additive called Invigorate. Each spot
followed a traveler on an important
disrupted the market, multinational
The major energy companies have been journey and ended with the line, You
VALUE FLUCTUATES WITH OIL PRICES
brands began to shift toward a greater
focus on natural gas. Shell has already revising marketing, advertising and local have places to go. Let us worry about
pivoted to natural gas and aims to public relations to sustain brand clarity, getting you there. Each of the BrandZ Oil and Gas Top 10 brands declined in value because of the
become an integrated natural gas strength and corporate reputation precipitous drop in crude oil prices. Usually focused more on upstream exploration,
company from exploration to delivery. as they navigate through the market
Geopolitics the brands shifted some attention to their retail service stations and petrochemical
businesses. They attempted to communicate about their brands in a warmer voice,
disruption caused by low oil prices
In one of the few acquisitions during this
period of low prices, Shell purchased and transition to a heavier reliance on complicate recovery but it will take time to change consumer perceptions of brands viewed as arrogant
BG, a major liquefied natural gas gas. Generally, the majors have been and uncaring.
producer, formerly known as British repositioning their communications Predictions varied about how and when
Gas, which owns assets in Africa and away from focusing on oil and gas oil prices would recover, but there
other regions. Chevron has a large gas toward asserting leadership in energy, was little dispute about the factors Brand value
technology and innovation. Often the that created the massive disconnect
exploration project called Gorgon.
message is conveyed with emotional
plunged with oil Oil Price and Brand Value
between supply and demand that
prices Oil Price
Global oil demand Off Australias western coast, Chevrons ads using company employees that give caused the drop in oil prices. Top 10 Brand Value
the brand a human face and relatable
should stay soft Gorgon Project began producing
liquefied natural gas (LNG) as part of personality. Demand weakened primarily because
With an index that enables
tracking the correlation
through 2016 the brands strategy to become a major
Shell launched a Welcome to Shell
the growth rates of the major between brand value 100
LNG producer by 2020. The joint- developing economies, Brazil, China and oil and gas prices, it
campaign in Malaysia, the Netherlands 91
It is said the best cure for low oil venture Gorgon Project, which includes and India, slowed substantially, and the is clear that the value of 100
prices is low oil prices. But despite ExxonMobil and Shell among its and Turkey. Aimed at retail customers, US, formerly an oil importer, became the BrandZ Oil and Gas 82
low oil prices, the global market partners, is geographically well located the campaign promises to deliver a energy self-sufficient with the rapid Top 10 roughly followed 2010 2012 2014 2016
remains flush with supply. Oil storage to supply growing energy needs in Asia. high level of hospitality, with upgraded development of shale gas. In fact, with the trajectory of oil prices 2010 = 100
terminals are brimming near capacity facilities, convenience foods and the development of new facilities, the but with less exaggerated
and producers are resorting to ExxonMobil expects a 25 percent rise in beverages. As part of its corporate US was set to become a net natural gas highs and lows.
storing crude on tankers and in the global demand for energy between campaign called Make the Future, exporter.
train cars. The Saudis and Russians 2014 and 2040, driven especially by Shell demonstrated the power of an
the major developing economies. innovative alternative power source: Some countries with state-owned oil
continue pumping near record levels
the footsteps of children on a specially
And brands tried harder to improve their image
while Iran seeks to add at least a Oil will remain an important energy companies continued to export at
million more barrels per day into the source, ExxonMobil predicts, but 40 wired football pitch that created the high levels because their economies Consumers view oil and gas brands
mix. Overall, the global market wants percent of projected growth in demand electricity needed to flood their field and social stability depended on OIL & GAS REGIONAL & GLOBAL
similarly to the way they view TOP 10 GLOBAL BANKS TOP 100
to produce about 100 million barrels through 2040 will be met with natural with light. the oil revenue. The state-owned banks as arrogant, dishonest and TOP 10
a day, but global demand is closer gas. ExxonMobil remained number 1 in companies typically operate with lower uncaring. Like the banks, which often
to 93 million barrels a day. It will take brand value based on its financial size, An emotional ExxonMobil Super Bowl cost structures that enable them to 110117 114 103
have other priorities than their retail
time and much stronger economic market capitalization and relatively low ad illustrated the impact of natural achieve profitability even at low per- customers, the oil and gas companies
level of debt. gas to create electricity with lower barrel prices. Scandals surrounding
growth to remove the overhang from
carbon emissions. Called Lights Across
until now have primarily focused on 110118 114 103
the market and restore balance to Brazils state oil company, Petrobras, the need to please government and
supply and demand. The major brands face myriad issues in America, it opened with an image of contributed to the governments corporate partners, not consumers.
the transition to gas. For example, gas a lighthouse illuminating a coastline instability. They have recently addressed
114 117 102
Michael Kehs and continued with a series of images
and oil prices work differently; there is consumers in a more relatable voice,
Global Energy Practice Leader Arrogant
no single global price for gas as there of lights going on in an office building, Meanwhile, Russias Gazprom attempted trying to more effectively explain the Dishonest
Hill+Knowlton Strategies a bedroom, a diner, and at a ball field to assert itself in Europe, even as the
is for oil. Historically, gas was priced benefits they bring to society. Average Brand = 100 Uncaring
Michael.Kehs@hkstrategies.com where the crack of a bat against a ball sanctions against Russia that resulted
regionally, because to be economical
it needed to be produced locally. led to this voiceover: You may not even from the Russian incursion into Ukraine,
The advent of LNG enables gas to be think about the energy that lights up blocked collaborations between western
transported in liquid form by tanker; your world. But we do. and Russian brands. Iran increased oil
this changes the regionally based
With a campaign called Doers Doing,
exports with the removal of sanctions
after the nuclear weapons deal. The
BRAND IMPLICATIONS
economics.
Chevron talked about America as a land US repealed a 40-year-old ban on
of doers, capable of sending rockets exporting crude oil. For environmental Oil and gas brands face a choice. When oil prices rebound,
to the moon, with all these impressive reasons, the Obama administration the brands can return to business as usual or sustain the
initiatives dependent on reliable sources rejected the Keystone pipeline project
5
21
of energy. BP, having settled most to flow oil from the Canada tar sands for effort to warm their brands and articulate reasonable and
litigation that followed the 2010 Gulf export through US ports on the Gulf of emotional explanations of how they improve peoples lives.
4
21
of Mexico oil spill, shifted attention Mexico.

An improvement in Brand Contribution could help mitigate
disruption the next time oil prices cycle downward.

6 The Categories
INSIGHTS
BRAND
BUILDING
ACTION
POINTS
Brand importance
should rise in shift
Majors positioned
well for inevitable
1 Engage consumers in the brand conversation
The role of the consumer as a stakeholder in the corporate brand has
to wider energy role oil price rebound become much more important. Do not limit the conversation to location
openings and coupons. In such a highly regulated industry it is important
to remember that consumers influence regulators and the media, and they
The majors recognize that the While fundamentals play a primary
have a voice on social media.
international climate change role in oil pricing, there also is an
agreements that we now have in place emotional component. Even when
have essentially identified a future world demand exceeded supply, and
that will ultimately not be powered
by carbon-based fuels. Therefore,
they need to reinvent themselves, but
Rebranding helps
attract talent
oil skyrocketed to more than $100 a
barrel, the number was artificial. At
that time, concerns that Middle East
2 Prepare consumers for market volatility
Be prepared for a bumpy recovery, with shocks when the price suddenly
also shape the transition. Beginning volatility could impact the availability rises or falls sharply, surprising consumers and having implications for
a narrative about what that future is Because the word oil has been of oil influenced prices upward. Today, trust because the public generally thinks that the oil and gas brands have
going to look like helps them shape demonized by some, were seeing given the current supply overhang, more control over prices than they do.
that transition and change their majors rebrand themselves as reports of OPECs refusal to freeze
businesses. Brand is part of that energy, technology, or resource and production sends prices lower. The
3 Create networks of friends and advocates

change. Energy and oil and gas are development companies. They are not silver lining in this downturn is about
relatively low-consideration categories gas companies or oil companies resiliency. It is astounding how quickly
for consumers, but as this transition anymore. This applies both on the companies have leveraged innovation Advocates can help educate others about complicated energy issues and
happens I expect that brand will have a corporate and consumer brand to optimize operations and lower engage in an informed way in the public debate around energy issues.
bigger bearing on company valuation. sides. Rebranding also impacts the break-even costs. In fact, on the other The rational middle and the contextualized conversation are important,
workforce. Oil and gas companies side of this downturn, companies will and brands need to find other voices that influence the marketplace.
Chris Pratt
are having a lot of trouble getting be better positioned to be profitable
Director
young people to come work for them, when prices rebound. We wont see
4
particularly in so-called white collar $100 a barrel return, but global growth
Chris.Pratt@hkstrategies.com
jobs. If youre 27, you might go to one will fuel demand, with prices settling to
Counter the image of oil and gas
of these brands if it emphasized its a Goldilocks level as excess supply is as a dinosaur industry, literally
work in research and development burned off. Meanwhile, the continued
and technology. It becomes a more focus on innovation is making the Focus on the brands role in developing emerging technologies,
acceptable and exciting prospect. industry stronger long term. such as battery storage, which will produce the cleaner energies
required for people to live better lives in all parts of the world.
Jon Wentzel Bronwyn Wallace
Chief Client Officer Senior Vice President
5
Burson-Marsteller Hill+Knowlton Strategies
Jon.Wentzel@bm.com Bronwyn.Wallace@hkstrategies.com Invest in the brand
Cut capital investment. Reduce the cost base. But protect the brand. A strong
brand helps gain the critically important license to operate. That is a major
return on investment, considering that spending on brand, relative to spending
on just about anything else, looks pretty small on the balance sheet.
7
21
6
21

Thought Leadership >BRAND BEHAVIOR
BRAND BEHAVIOR
BEHAVIOR IS KEY
Through this iterative interaction, the Getting it right low price, Lidl is successfully taking on
brand becomes a constantly shifting the traditional big guns and winning.
relationship between the company and
eventually
its customers. Through the interface the So far, so on trend. But what about how
TO BUILDING
In 2013, in the UK, Amazon, Google, and
customer assumes the right to some the brand behaves elsewhere?
Starbucks were revealed to be among
control, ownership, and authorship of In July 2015, the government announced
many global brands that successfully
the brand its plans for a National Living Wage to
limited corporation tax on UK sales.
be implemented by April 2016.
HIGH VALUE,
Platforms reveal However, it was Starbucks, with its
A full six months before that deadline,
Lidl raised the minimum wage of its
behavior High Street near-omnipresence and
staff above that of the government
its commitment to being a part of the
recommendation.
As consumers, both old and young, community, that took most of the flack.
DISTINCTIVE,
have flocked to social media platforms, When your barista knows your name,
By supporting those who perhaps have
brands have followed suit. Fish where its hard not to take it personally when
no choice but to shop at the low-price
the fish are so they say. However you believe their employer has a better
supermarket, Lidl demonstrated its
what perhaps only the smartest brands deal than you do. Consumers switched.
we care commitment that consumers
worked out from the start was that Baristas rebelled (one UK location was
PROFITABLE
had come to expect, to the people that
these platforms would reveal more reported to have a sign stating Please
matter most its staff.
about day-to-day business behaviors do not abuse our staff, its not their
(everything from marketing and fault, mounted in the store window).
advertising through to customer service Building distinctive
brands
BRANDS
interactions) than had ever been seen The global behavior of the Starbucks
before. Whether they liked it or not. brand had a direct effect on the local
interpretation of its core brand values. Brand behavior builds distinctive brands
Consumers demanded transparency. - nothing more, nothing less.
Brands responded, mostly. And the rise Under consumer pressure, all three
and current trend of authenticity was brands named above reviewed their From Mark Zuckerberg using his
upon us. UK tax policies. Fast forward to 2015 opening keynote at the 2016 F8
Actions speak louder than core values Look around. You see it everywhere.
and Starbucks reportedly paid more
corporation tax than it had in the 14
years previous combined; an incredible
Facebook developer conference
to call out his Build bridges, not
walls philosophy (a clear remark of
Now, as a result, consumers expect turnaround. disagreement to comments made in
brands to behave a certain way. If they the political landscape at that time); to
In todays more ever-connected world, creating and
upholding a core brand identity is paramount to maintaining
dont, those very same consumers not Getting it right Apples recent privacy battle with the
only vote with their wallets, but also FBI over unlocking a terrorists iPhone
value, profitability, and longevity. their Twitter accounts.
the first time brand values must be clear in actions,
not just words.
Perhaps a better story can be told if
And this is where brand distinction is
The 30-slide deck of brand guidelines is no longer the be-all and end-all. Over we take a look at budget supermarket
today. The way a brand behaves is the most
the past few years, the landscape of how brands live and breathe in culture brand, Lidl.
important underlying factor in creating
has changed. With the advent of globally accessible online conversations,
Before, a brand could say it has core and building ongoing brand strength,
the idea of brand ownership has shifted. It is no longer in the hands of the Traditionally seen as a low-
values and then, if it so wished, value, and ultimately, long-term
traditional owners (the businesses behind them); instead it finds itself under price supermarket solution, its
obfuscate whether or not it actually profitability.
the stewardship of the consumer - where it will remain for some time. communications and use of authentic
delivered against them. Today, such
storytelling, has had a transformational
a feat is virtually impossible. What a Consumers can and will call out poor
To quote Marc Shillum, author of Brands as Patterns We all know that effect on its business. Recently, via its
brand does is as important, if not more brand behavior when they see it. They
brands are increasingly accessed digitally, but a less considered consequence advertising, Lidl has handed over its
important, as what it says; actions speak have the means, the tools, and the
James Whatley is that the interface through which a brand is accessed has become a primary
louder than words.
brand voice to its own consumers.
power of a united voice.
Digital Director identity element. This requires that a brands identity should not only be
Ogilvy & Mather defined statically or dynamically, but also iteratively through successive #LidlSurprises, as the campaign is
James.Whatley@ogilvy.com Even the most valuable and respected Defy consumer expectation and youll
release and behaviorally through interactions. known, features customers expressing
brands can struggle to get it right. lose their trust in an instant. Lose their
their surprise at the quality of the
trust, and you risk losing your consumer
supermarkets own products. Sticking
forever.
9
21
to its brand values of high quality and
Ogilvy & Mather is a top 20 UK agency offering communications expertise in areas as diverse as brand
8
21
advertising, direct, digital, healthcare marketing, PR, branding and design and behavior change.

Technology>TECHNOLOGY
6 The Categories
TECHNOLOGY/ CONSUMER
Brands prepare for
future of transformative
technology
In a year of product iteration and consumer privacy concerns
TECHNOLOGY TOP 20
Brand Brand Value
Value 2016 Brand % Change
Top 100 Most Valuable $million Contribution 2016 vs 2015
Global Brands 2016 1 Google 229,198 4 32%
Category Brand Value Change 2 Apple 228,460 4 -8%
3 Microsoft 121,824 3 5%
+6% 4
6
Facebook
IBM
Tencent
102,551
86,206
84,945
4
4
44%
-8%
11%
7 SAP 39,023 3 2%
Technology Top 20
Total Brand Value 8 Baidu 29,030 4 -27%
9 Accenture 22,813 3 13%

$1,106.3 billion 10 HP 21,387 2 -7%
Iteration, more than innovation, case demonstrated the enormous system unfairly favors Google products
11 Samsung 19,490 4 -10% social impact of the leading technology over those of the competition. Arguing
characterized a year when
12 Oracle 19,489 1 -10% brands. This impact is likely to increase that Facebook would enjoy unfair
technology brands looked to
with the advent of the Internet of Things, advantage, India rejected the brands
13 Huawei 18,652 3 22% the future, to the development the smart home and the automated car. plan to provide free Internet access.
of revolutionary products
14 Intel 18,632 2 1%
and their potential impact Implicit in these developments was the Facing the future, Google restructured
15 Cisco 14,508 2 -10% on society. Lacking a current tension technology brands navigate under a holding company called
by simultaneously pursuing the Alphabet. With the introduction of its
16 LinkedIn 12,314 4 1% shiny new thing to draw their
CATEGORY DEFINITION higher purposes of improving life and next-generation smartphones, Samsung
17 Adobe 10,440 2 41%
attention, consumers were connecting the planet while competing positioned the brand as more than the
distracted by industry issues for consumer spending with devices sum of its devices. Apple added Apple
The technology category includes 18 Salesforce 9,914 2 N/A
business-to-consumer and business- like privacy. and ecosystems that attempt to create Watch to its repertoire of seamlessly
to-business providers of hardware, 19 Netflix 9,289 2 N/A loyalty with frictionless customer connected, highly designed products.
software, portals, consultation and The conflict between Apple and the experience. Facebook introduced Oculus Rift, a
1
22
social media platforms. The diversity 20 Sony 8,150 3 2% US government over unlocking an virtual reality headset. >>
of the technology category reflects
Source: BrandZ / Millward Brown (including data from Bloomberg) iPhone to provide law enforcement European Union regulators charged
0
the convergence occurring as brands

22
Brand Contribution measures the influence of brand alone on earnings,

develop integrated systems of on a scale of 1 (lowest) to 5 (highest).
access to personal data in a terrorism that Googles Android mobile operating
products and services.

6 The Categories
Competition increased, with devices On the strength of the global expansion priced at around $1,500, the device definition of purpose, improving the
of superior functionality and design of its video streaming business, Netflix INSIGHT reflects Facebooks shift to video and lives of customers, and a wider definition INSIGHT
available at lower prices from Indian entered the BrandZ Technology Top its determination to claim leadership about improving the world in some way.
and Chinese brands. And several of 20. Google returned to the number in virtual reality experience. Google Clarifying commercial and altruistic
the consumer technology leaders one rank in the BrandZ Top 100 Most and Samsung offered virtual reality intent can be difficult, however.
also partnered with business brands Valuable Global Brands. The Technology headsets, and Sony planned to release a
as aspects of business-to-consumer Top 20 increased 6 percent in value, PlayStation version. For Facebook CEO Mark Zuckerberg,
and business-to-business technology compared with a rise of 24 percent a who announced that over time he
converged. (Please see B2B story.) year ago. Facebook also purchased Masquerade, a would give away his personal fortune,
maker of software that enables the user the Facebook brand serves the wider
Competing to add special effects to selfies, videos purpose of creating a connected planet.
and other images. It includes a popular When he attempted to advance this
for the future feature called face swap. Like its earlier mission with free Internet access through
INSIGHT
acquisitions of Instagram and WhatsApp, Facebooks Free Basics program, the
By creating a holding company Facebooks purchases of Oculus and Indian government rejected the offer,
called Alphabet, Google increased Masquerade are part of the brands effort arguing that Facebook would gain an
transparency by sharing its growth to remain relevant across generations. unfair advantage.
plans and clarifying its priorities, which
reassured stockholders. While currently Consumers more In an effort to monetize its audience, New competitors
Tech leaders need
deriving most of its revenue of $75.5 reluctant to trade Facebook effectively shifted to mobile. to be perceived as
billion from advertising in its core search With a total of 1.6 billion monthly active
business, Google signaled a future in data for benefits users, Facebook reported 1.4 billion As the technology leaders expanded experience brands
mobile monthly active users, a 21 percent in India, China and other markets,
new businesses, including healthcare,
The business of many of the increase year-on-year. Mobile advertising they increasingly encountered strong Its ironic that when we work in other
life sciences and augmented reality.
consumer technology companies is reached 77 percent of total advertising competitors, such as Alibaba, Tencent, categories, businesses are scrambling
Along with new ventures, Alphabet
about making money from consumer revenue in 2015, up from 65 percent a Baidu and Huawei, among Chinas most to be perceived as tech brands.
includes a Google subsidiary with
data. Weve seen privacy pushback year earlier and 45 percent in 2013. valuable brands. But actual tech brands need to be
its core products, such as Android,
Chrome, Gmail, Maps and Search. about Facebook in India and against perceived as experience brands. The
Google in Europe. Consumers are Tencent, number 1 in the BrandZ China best technology brands are doing
Brands pushing Google continued development of an
beginning to say Were not going to
Communicating Top 100, continued to leverage its key that already, pulling away from being
autonomous car.
across the border have our data used in the way you emotion and purpose strength: ubiquity. It increased the perceived purely as functional and
want to use it to make your money. number of monthly users of WeChat, creating a customer experience
Apple began shipping Apple Watch
of B2C and B2B in April 2015 and introduced updated Young consumers are much more In this competitive context, brands its messaging and caller app, to over supported by the ecosystem. The
alert to the privacy settings on their 600 million. And the brand leveraged experience pervades every touch
versions of the iPhone, iPad, and Apple attempted to engage with consumers in
I would contend that the division smartphones. Weve been talking WeChats functionality to promote its point that the brand has with the
TV late in the year. Apple Pay expanded new ways. Samsung, known for its wide
of the technology category into about something we call digital payment system, which can be used customer, from the product itself to
in the US and UK. Apple sales rose 28 range of devices and appliances, created
business-to-consumer and business- twilight, which are spaces where its for purchasing at physical locations and the marketing of that product to the
percent year-on-year to $233.7 billion, more emotional advertising. Rather than
to-business brands no longer much harder for advertising to reach. online. real-time interaction.
driven by a 52 percent increase in focusing exclusively on the features of
accurately reflects the industry, iPhone sales. Apples iPhone sales and Were getting to the point where the a particular device, the ads presented
To reach targeted buyers in the most Jonathan Hall
because most of the brands are margins weakened in 2016. user perception is that brands offer the company as a long-time leader and
appropriate online channel and provide President of Consulting
active in both spaces. Instead, there fewer benefits and so consumers innovator across devices, including
ease of purchase, Tencent partnered North America
are three divisions that matter now: Apple did not release sales figures are paying more attention to the TVs, smartphones, watches and, most
with JD.com, Chinas second-largest Added Value
devices, infrastructure, and data for the Apple Watch. But Apples downside. recently, virtual reality.
e-commerce site after Alibaba and Jonathan.Hall@added-value.com
services. Just to illustrate with a introduction of a watch added Andrew Curry a newcomer to the BrandZ Global
few examples: data services would excitement to the subcategory of The brand was a Super Bowl sponsor
Director Top 100. At the same time, Tencent
include Amazon and Facebook; technology wearables, which also and will be a sponsor of the Summer
The Futures Company monetized its high penetration, doubling
infrastructure, IBM and Cisco; and included brands like Fitbit, Samsung, Olympics and Euro 2016, the European
Andrew.Curry@thefuturescompany.com online and video advertising revenue. The
devices, Apple, Samsung, and LG. and Chinas Xiaomi. Apples new product football championship. Because of the
brand also investigated ways to increase
sales have not yet balanced slower iPad brands wide range of products, including
Julian Tanner its gaming revenue by introducing its
and iPhone growth, however. It was not home appliances, Samsung is viewed as
Global Technology Practice Lead games abroad.
clear whether Apple was developing an well positioned to compete for leadership
Cohn & Wolfe electric or autonomous car, a project in the Internet of Things and, specifically,
Julian.Tanner@cohnwolfe.com Baidu, Chinas largest search engine, opportunities. Huawei, originally a maker
where Apples design and consumer the smart home. Competition in several
continued to enjoy strong advertising of telecommunications equipment,
experience credentials could add value. of these segments hurt Samsungs
revenue from search, although it is shipped over 100 million smartphones
results last year.
3
22
rapidly shifting to mobile, which is worldwide in 2015, a 44 percent year-
Facebook released its first virtual reality
less profitable. The brand worked on on-year improvement. (For more
headset from Oculus Rift, the start-up Along with emotional appeal, technology
2
22
building O2O revenue by connecting information, please see the BrandZ Top
company it acquired in 2014. Although leaders articulated brand purpose as a
some of its online search functions, such 100 Most Valuable Chinese Brands 2016,
way to connect with consumers. Many
as mapping, with offline purchasing at www.brandz.com.)
of the brands adopted both a narrow

6 The Categories
TECHNOLOGY/ BUSINESS
Results improve for INSIGHT
Established in 1939, HP executed model three years ago in order to meet
venerable brands
its plan to reinvent the company for the creative and analytic needs of digital
todays world by splitting into two marketers. The subscription business
publicly traded entities: Hewlett Packard grew 55 percent in 2015, representing
Enterprise, which will focus on software, 67 percent of total revenue. Salesforce
cloud storage, and networking; and was launched in 1999 as a cloud brand
reinventing for the cloud

HP Inc., which will continue the core exclusively. The consumer relationship
printer and PC businesses. Because the management company offers a menu
split, which was intended to accelerate of six cloud-based service packages,
innovation and improve customer including sales, marketing and customer
service, took place at the end of 2015, it support, all on a subscription basis.
But an influx of challengers slows their progress was too early to assess results.
The consumerization
Positioning in a of B2B
Not long ago, size mattered At the same time, the boundaries
between business-to-business and
With the launch of Windows 10,
Microsoft attempted to expand the
Take a B2C transforming category
more. Because choosing the
right business technology
business-to-consumer became brands impact in personal computing approach in Meanwhile, the technology consultancy
An aspect of the technology categorys
transformation is the blurring of
provider was so fraught with
more porous as brands prepared
for a future in which the Internet of
and mobility. The brand introduced
the developer version of the HoloLens,
marketing to B2B Accenture benefited from its global traditional boundaries between
reach across industries as enterprise IT business-to-consumer and business-to-
risk, the safe bet for a corporate Things and smart homes will require an augmented reality headset that decision makers departments shifted their investments business. Factors driving this integration
IT manager was to hire the collaborations among companies that enables designers to see their plans
from outsourcing to the cloud and other include the move to cloud computing,
biggest and assume it was the have complementary technology, in 3D, strengthening Microsofts Over 50 percent of technology digital technologies. efforts to position for the Internet of
skills and customer bases. In addition, business-to-business offering, which decision makers are under age 40,
best. Times have changed in in Things, and a shift in business mentality
the consumerization of business-to- accounts for over half of its revenue. which completely changes how you
an industry being transformed business accelerated, as a younger
With the acquisition of Altera, a maker of from adversarial to cooperative, in
market and speak to the customer. programmable chips, Intel accelerated which the brands both compete and
by cloud computing and small generation of corporate IT managers Moving through a transformation to That means everything that has its transition from a company whose collaborate, depending on the project.
disruptor brands. continued to harmonize the devices cloud computing and data analytics, applied to reaching millennials on the success was based on developing the
used for business and personal IBM invested heavily in areas it calls B2C side of the technology category microchips powering PCs to a company Apple collaborated with Cisco and SAP
And some of the disruptors are not purposes. cognitive computing, which can now also applies on the B2B side. devoted to the connectivity needed for to push more iPads and other devices
small. A key competitor in cloud data not only store and organize data but It does not work to only advertise the Internet of Things. into enterprise. The arrangement is also
storage is Amazon, the e-commerce Talent remained a key concern for the also comprehend and learn from it. in some esoteric technology B2B intended to expand availability of B2B
giant and number 7 brand in the business-to-business brands. Young Initially focused on several industries, publication, or to put a banner on SAP grew its cloud subscriptions at software on Apple devices. An earlier
BrandZ Top 100 Most Valuable Global people generally prefer to work in IBM brands its initiatives Watson, the the publications website. Instead, the same time it introduced the next partnership between Apple and IBM
Brands ranking. Google, the number 1 technology, especially when compared name of its cognitive platform. These you need to think about social media generation of its Hana product, which introduced more Apple products into
brand in the BrandZ Global Top 100, with industries viewed as socially businesses IBM Watson Health and and relevant content because the offers a combination of deep analytics the workplace. IBM also partnered with
has entered the cloud storage business, objectionable because of their negative IBM Watson Internet of Things, for millennial IT decision maker responds and fast results for making real-time Facebook, pairing IBMs data analytics
too. impact on health or the environment. example all operate in the IBM Cloud. to a relationship and experience. business decisions. While Oracle strength with Facebooks user data to
Even within technology, young talented
continued to be dominant in relational enable marketers to more effectively
Salesforce, the cloud-based consumer individuals covet jobs at certain brands The businesses that represent IBMs Adam Komack database management, smaller start- personalize messages on Facebook.
relationship management company, more than others. future performed relatively well. Global Account Director ups nipped at parts of its business. A
joined the BrandZ Technology Top Cloud computing, data analytics MediaCom supplier of the switching equipment and All of these developments created a
20 for the first time. And a 41 percent
Brands in transition and security and mobile computing Adam.Komack@mediacom.com other devices that comprise the Internet, demand for talent. LinkedIn has created
increase in value put Adobe, the cloud- products accounted for just over a
Cisco was well positioned for a future a successful brand as a platform to
based media and marketing company, third of total revenue in 2015. However,
After two years under new leadership, that includes the Internet of Things. help individuals network and find
into the BrandZ Global 100 Top 20 IBMs legacy businesses were a drag
Microsoft was in the process of radically their preferred employment match. It
Risers. Meanwhile, more traditional on overall performance, and with
reshaping the corporate culture to Adobe boldly shifted from a boxed doubled the number of listed jobs to 6
business-to-business brands attempted about two-thirds of revenue coming
be less controlling and more open software model to a cloud subscription million and launched an app to simplify
to increase their cloud subscription from outside the US, the strength of
to involving technologies other than the user experience.
revenue faster than revenue decreased the dollar impacted the business.
its own. In developing a public cloud
in the old licensing model.
available in 140 countries, Microsoft
issued a developer kit instead of
4
22
creating all the apps.

6 The Categories
INSIGHTS
BRANDZ ANALYSIS
B2C BRANDS DISRUPT CATEGORY, DRIVE VALUE
Business-to-consumer brands disrupted the BrandZ Technology Top 20 over the past 11 years. Although business-to-business
still predominates in number of brands in the Top 20, B2C brands represent almost two-thirds of the value and score higher in
key BrandZ metrics of brand strength.
B2C brands grow faster and B2C lead in Difference but B2B improving
produce more value ...
Consumers regard the B2C brands as Different. High scores suggest that
B2C brands today produce 65 consumers see B2C brands as Different in meaningful ways. In contrast, the B2B
IT Brands with The qualities that percent of the BrandZ Technology brands are closer to average in Different, suggesting that they may be essential,
but customers do not easily identify particular brand advantages. However, B2B
strong security made brands great Top 20 value, up from 43 percent in
2006. And since 2006, B2C brands brands are improving in being seen as Different, which could mean that their shift
solutions will win now challenge them increased 358 percent in brand value, to the cloud and collaborations with B2C brands are yielding positive results.
driven by the growth of Apple, Google,
in the B2B space The very thing that made the big Facebook and other brands, while B2B
brands increased only 84 percent. Different
In the business-to-business part of Enterprise technology companies successful
is now their biggest vulnerability. Many iconic B2B brands continue a B2C
136
the technology category, security
remains the primary concern. It was
customers reach Theyre being overtaken by smaller, difficult transition from traditional
business models to cloud computing.
B2B
more nimble companies, which dont

the chief concern a few years ago for the cloud, feet have the historical baggage and
122
during the bring-your-own-device

transition in the workplace. It is the firmly planted complicated management structures,
and can respond quickly. The larger Proportion of Value in 104
key concern today with cloud and 99
The whole proposition of cloud is players know they have these smaller Technology Top 20
will be tomorrow with the Internet of
to reduce complexity and cost, and competitors snapping at their heels, +84%
Things. Every time a new technology
increase performance and speed. and theyre struggling to become more 57% 35% 2006 2008 2010 2012 2014 2016
or practice is introduced in the Average Brand = 100
Right now, however, many enterprise fleet of foot. The smaller businesses
enterprise, security is always the
customers still have their data centers relate better to the start-up clients.
number 1 issue to solve. It is a topic
and IT staff on-premise while theyre Consequently, while some are doing
for the C-Suite. IT Brands with strong B2B brands score well on BrandZ
also experimenting with the cloud. So better jobs than others, we see the big
security solutions will win in the B2B
brands are struggling to deal with these
+358% metrics, but not as well as B2C brands
space. theyre not pregnant yet but theyre 65%
trying to be. Ultimately, some extremely smaller challengers.
Guilhem Tamisier sensitive data may stay on-location, but B2B brands score well on the
Ben Lloyd B2C B2B
Group Strategy Director for the most part enterprise customers important BrandZ metrics of
Head of Millward Brown Corporate
MediaCom need to get to the point where they can 43% Innovation, Brand Experience and
Millward Brown 124 107
Guilhem.Tamisier@mediacom.com literally take their hands off the wheel, Brand Love, but they do not score
Ben.Lloyd@millwardbrown.com
not worry about physical data centers, at the level of B2C brands, which
do away with complex software are especially known for Innovation 109 107
installations, and cut back on IT and have done an excellent job in
spending. The industry isnt there yet, generating Brand Love. B2B brands
have been innovative, but they 117 104
but that future is rapidly approaching. 2006 2016
B2C have received less recognition for
Innovation
Rowan Benecke B2B
innovating than the B2C Brands. Brand Experience
% Value Change 2016 vs. 2006
Chair, Global Technology Practice Average Brand = 100 Brand Love
Burson-Marsteller
Rowan.Benecke@bm.com
BRAND IMPLICATIONS
7
22
Category disruption will continue. As the B2C brands grow, they
6
22
will face the same challenges of scale that now confront iconic
B2B brands. B2C and B2B have a lot to learn from each other.

6 The Categories
LONDON - UK
Value of all UK
brands in
Global Top 100
$101.1 Billion
BRAND
BUILDING
ACTION
POINTS 5 Be a talent magnet
Be an attractive place to work.
Provide challenging assignments and
advancement opportunity. Otherwise the
most talented marketers and technologists
1
will go elsewhere, and the brand will suffer.
Stand for something meaningful
Add something beneficial to peoples lives. Financial
results may drive the share price, but shareholder
satisfaction will not guarantee success unless it is
accompanied by the innovative products and services
that please customers.
6 Inspire customer love
Keep inventing the products and services
that inspire brand love, both for normal
business reasons and because when a brand
2
inevitably trips over an issue of data privacy
Stay relevant and security, love will soften the fall.
The window for relying only on an annuity of
past accomplishments is narrowing. Constantly
question. Ask what the brands future economic
7 Build the brand

relevance or impact will be. Pay attention to a
wider consideration set of competitors.
Always important, brand building
becomes even more important for
3 Communicate emotionally creating and protecting value in a

competitive and commoditized market.
The rise of smaller business-to-business
disruptors threatens even iconic brands. Move
faster and communicate more emotionally, not
just about the brands competence, but also
about its ease of access and doing business.
4 Show momentum
Applicable to any brand, the need to demonstrate
momentum by adding new customers is especially
important for disrupter brands that offer innovative
solutions but may lack the legitimacy that comes
with experience, and which is required for building
confidence among skeptical potential clients.
8
22

Technology>TELECOM PROVIDERS
6 The Categories
TELECOM PROVIDERS
Brands consolidate
and acquire content
As the category moves through an identity crisis
The term telecom provider technology leaders with much faster

started to seem anachronistic innovation cycles, all seeking to play in
the inevitable but amorphous future of
as brands aggressively
hyperconnectivity.
consolidated and acquired
content, reshaping the category The only certainty for telecom
Global Brands 2016
even as they tried to clarify provider brands was the need to build
its future. As they evolved a subscriber base, which accelerated
a period of consolidation as brands
into networks of value-added
acquired competitors to gain content
information and services, the
+9%
and advertising revenue, increase scale
telecom providers remained and broaden appeal.
identified by their most
commoditized activities, voice Acquiring content
and text transmission. and building scale
Telecom Providers Top 10
Total Brand Value Brands worked to leverage their
In the US, AT&T bought DirecTV, a
unparalleled access to households and
consumer data, which positioned them broadcast satellite service, significantly TELECOM PROVIDERS TOP 10
$422.4 billion to be key players, even gatekeepers, in
the networking of devices, appliances,
expanding the brands ability to provide
video entertainment and enabling it
Brand
Value 2016 Brand
Brand Value
% Change
$million Contribution 2016 vs 2015
machinery, cars and everything else in to bundle new TV, Internet and mobile
the coming era of connectivity called offers. Verizon acquired AOL, which 1 AT&T 107,387 3 20%
the Internet of Things. provided Verizon with online advertising
2 Verizon 93,220 3 8%
technology while enriching AOLs
The telecoms also developed business- capabilities with Verizon customer data. 3 China Mobile 55,923 4 -7%
to-business opportunities, servicing Ultimately, Verizon could monetize the
4 Deutsche Telekom 37,733 3 12%
the connectivity needs of corporations acquisition with mobile advertising
and governments, with Smart Cities revenue. To add even greater scale, 5 Vodafone 36,750 3 -4%
initiatives, for example. And many of the Verizon considered acquiring Yahoo.
AT&T also purchased the Mexican 6 Movistar 21,945 3 3%
telecom provider brands also developed
mobile health programs, particularly telecom providers Iusacell and Nextel to 7 NTT 19,552 2 N/A
useful for people in rural or other strengthen its position in the Americas.
CATEGORY DEFINITION The Spanish telecom provider Movistar 8 BT 18,575 3 3%
underserved markets, who gain online
access to better health care treatment. acquired DTS to expand into pay TV 9 Orange 18,465 3 6%
1
in Spain. Spains Telefnica acquired
23
The telecom providers category
includes brands that primarily develop, GVT in Brazil, which had merged with 10 Telstra 12,825 3 1%
Unfortunately for the telecom providers,
0
maintain and market hardwire or Vivo, the countrys leading mobile and
23
they were not alone. Their competitive Source: BrandZ / Millward Brown (including data from Bloomberg)
wireless infrastructure networks for
set expanded to include brands in landline telecom. >> Brand Contribution measures the influence of brand alone on earnings, on a scale of 1
voice and data transmission. (lowest) to 5 (highest)
other categories, including formidable

6 The Categories
INSIGHT
The telecom provider Vodafone properly. Implicit is the notion that, in that is more transparent about the cost In an effort to compete more effectively
purchased ONO, a Spanish high-speed a world of good enough, better is of a phone and data, with data plans against China Mobile, China Unicom INSIGHT
Internet company. To increase content worth a premium. priced simply small, medium and large and China Telecom announced plans to
and achieve efficiencies, Vodafone like soft drink portions. collaborate on building 4G infrastructure
linked its operations in the Netherlands In making the change, Verizon intended and providing overseas roaming
with Liberty Global, the international to warm the brand with a more human T-Mobile was especially successful in services. In addition, they advocated for
cable company. The sluggish economies voice, to contrast with the complex creating a personality around the brand, smartphone devices that supported six
of some of its European markets language often used in the telecom marketing it in the US as the Uncarrier. different technologies, making it easier
impacted Vodafone results. category. The execution included a new, It introduced a program called Binge for people to switch carriers. The Chinese
cleaner logo and a simplified offering On, aimed particularly at millennials, telecom providers also supported
France-based Orange bought a major which allowed users to stream free the governments Internet+ effort to
stake in Groupama Banque, a French video from content suppliers like HBO connect mobile Internet, big data, cloud
financial services company, as a INSIGHT Now and Showtime. Deutsche Telekom computing and the Internet of Things.
gateway into mobile banking services. benefitted from the strong performance
In Germany, O2 purchased E-Plus, and of T-Mobile, which it owns.
Tech competitors after rationalizing their brand portfolios,
INSIGHT
provide more the joined company relaunched the Blau Telecoms were not the only brands
personal customer
brand as a value-driven option, with building communications relationships Clearer brand
the tagline, Less bla, more Blau. In a with consumers. Mobile virtual network
relationships UK market consolidation, BT purchased operators (MVNOs), such as Virgin communication
EE. And Three, owned by Hutchison Mobile and Tesco Mobile, rented strengthens
Whampoa, intended to purchase 02 infrastructure and marketed branded
Consumers want to blend the
connectivity in the home, car and
from Telefnica. networks. Google introduced an MVNO loyalty
called Project Fi that routs calls over
other aspects of life. That creates
The proposed deal, which would form WiFi or the Sprint or T-mobile networks. The introduction of 5G will
huge challenges for the telecom
the UKs largest telecom provider, It is currently available only for certain challenge the telecom brands to
brands because of technology
faced EU regulator scrutiny. In the US., Android phone models. Google also explain the benefits to consumers
competitors that have direct
regulators ruled in favor of net neutrality, planned to expand its Google Fiber who will probably be confused
relationships with consumers. These
consumers want either an ecosystem
essentially classifying the Internet as a Telecoms need Internet service to Los Angeles and about the advantages of 5G
over 4G. The telecom brands will
public utility requiring equal access for Chicago. Facebooks WhatsApp and
of hardware and services, like Apple,
or a data relationship, like Google
all users. Major US telecom providers to communicate Facebook Messenger are free Internet also need to do a better job of
or Amazon. These brands are more

had opposed neutrality, arguing that more emotionally alternatives to communicating over a
Brands attempt
explaining the Internet of Things.
Consumers and enterprise clients
heavy Internet consumers, Netflix for telecom network.
likely to offer a full level of service
and a relationship that is much longer
example, should pay a fee because The telecom providers continue to bundle will want to know specifics about
how it will improve their lives, and
of the disproportionate amount of Fast-growing markets
than the typical two-year telecom
contract. They offer more of a lifelong
bandwidth they use.
to struggle to develop emotional
connections with consumers,
seamless offers why to select one carrier over
another. The Internet of Things
relationship around what connectivity particularly millennials. Much of what Meanwhile, Facebook collaborated with
will create stickiness. And it will be
means to people. To apply the Meeting changing telecom brands provide is invisible Deutsche Telekom, Koreas SKTelecom
Telecom providers are trying
difficult to dislodge a brand from
to achieve a seamless one-stop
Maslow hierarchy of human needs to consumer expectations and happens in the background. The and others on an initiative called
shop which includes everything, a household or business unless it
this category, weve moved from the result is that they dont get any credit Telecom Infra Project to collaborate
both telecommunications and really messes up.
lower level of connectivity Can you while the network is functioning, but on infrastructure development. Korea
The telecom provider brands also entertainment. Its a major trend
hear me now? to a higher order when it cuts out, theyre the target of remained the most advanced telecom Marvin Singleton
adjusted to changing consumer today across many categories.
of connectivity that brands cant all the consumers frustration. This is market technologically. This superiority, Executive Vice President and
priorities. With the erosion of the two- Whether or not consumers really
control. especially the case among millennials, from network quality through to General Manager
year contract model, consumers often want to have all their services in one
a generation accustomed to being download speeds, enables Korean Hill+Knowlton Strategies
Andrew Hawn selected their device first and then place is a different matter. But thats
able to browse and connect any time, consumers to use their smartphones for Marvin.Singleton@hkstrategies.com
Vice President looked for a carrier, reversing the earlier what the telecoms are trying to
and practically anywhere. For them, more functions.
The Futures Company practice. Even in the US, consumers achieve.
digital connectedness is a baseline
Andrew.Hawn@thefuturescompany.com shifted away from the long-term
expectation. Chinas telecom providers experienced Nicky Nicolls
contracts that had been fairly standard.
pressure on profits as they invested President, Spain and Latin America
Charlie Rodman
in rolling out 4G and reduced pricing Lambie-Nairn
Verizon introduced a new campaign Senior Consultant
in response to government desire to N.Nicolls@lambie-nairn.com
with the tagline Better Matters. The Vermeer
increase data transmission speed and
campaign added a higher purpose Charlie.Rodman@mbvermeer.com
lower fees. Market leader China Mobile
to a traditional story of functional
3
planned to accelerate rollout of 4G,
23
competence. The emotional message
doubling the number of 4G users it had
declared that Verizon built Americas
2
at the end of 2015 to reach 500 million

23
strongest network for a reason, because

users in 2016.
people depend on the network to work

6 The Categories
INSIGHTS
BRANDZ ANALYSIS
VALUE SHIFTS TO US FROM EUROPE, ASIA
The telecom providers category is transforming in every region of the world, as brands attempt to shift away
from being commodity carriers of voice and data and transform into entertainment and content brands. The
transformation is happening through acquisition and consolidation and at different speeds, depending on the region.
Value has shifted from And the US leads in Brand Potential

Europe to the US
The US also leads in Brand Potential, a BrandZ metric that predicts future
The proportion of value of the BrandZ market-share gains. Australasia is strong, too, reflecting the strength of the
Sustained success With more Telecom Providers Top 10 has shifted Australian and Chinese markets.
requires broader competition and significantly since 2006, with the US now
accounting for 47 percent of the value
brand perspective offer confusion, compared with only 13 percent 11 years Brand Potential
Europe
ago. The US growth particularly reflects
Established Telco brands were
brand trust is the growth of AT&T and Verizon and their
Australasia
US
125
founded on engineering expertise. critical acquisitions of content brands.

113
These brands still seek differentiation 113
via functional benefits high Internet Few telecoms operators know what 112
speed, coverage, data meaning business theyre going to be in in five Proportion of Value in 107
they remain focused inwards on their Telecom Providers Top 10
years time, so theyre covering all their 101
immediate businesses or category. bases in the hope and expectation
Theyre missing the opportunity that one of those bases will be the 51% +59%
32%
to play a more meaningful role in 2006 2008 2010 2012 2014 2016
mother lode. Amazon, Facebook,
peoples lives. The brands that can Average Brand = 100
Apple and Google all have a very
look forward, recognize the industry personal relationship with the people
is expanding to include Facebook, who interact with them. Thats what
Google or other technology scares telcos. The question they are 21% And Australasia scores high in other BrandZ metrics
companies, and seek to stand out asking themselves is: What can I layer
among these brands on an emotional over my network that people actually +50%
The strength of Australasia
EUROPE US AUSTALASIA
level, will win. want? Telecoms have content, gaming 36% in Innovation, Brand
47% Experience and Brand
and entertainment packages including
Emily Smith +829% Love reflects in part the 98117 114 110
sports rights, but its got to be
Brand Director advanced development of
exclusive, because unless the content
Added Value the telecom category in 98118 111 123
is exclusive, its not worth anything.
E.Smith@added-value.com South Korea.
Consumers will consider content,
13%
speed, and data but, ultimately, in a 95 115 121
soup of offer confusion, a defining
2006 2016
factor in all of that choice will be Europe Innovation
Australasia % Value Change Brand Experience
Which brand do I trust more?
US 2016 vs. 2006 Average Brand = 100 Brand Love
Andrew Bone
Regional Director
Andrew.Bone@hkstrategies.com Source: BrandZ / Millward Brown
BRAND IMPLICATIONS
Telecom providers are in the midst of a significant
5
23
transformation. It is critical that they bring customers along
on this difficult journey by continuously communicating the
4
23
meaning of their brands.

6 The Categories
TOKYO, JAPAN
Value of all
Japanese brands
in Global Top 100
$85.1 Billion
BRAND
BUILDING
ACTION
POINTS
4 Stand for something
beyond competence
1 Communicate brand relevance

Consumers are not impressed by abstract technology
Think about the customer relationship as
something that happens before, during and
after purchase. Stand for something beyond
superiority claims. For consumers, the difference competence, because every telecom
between 4G and 5G is important only because the provider makes competence claims. Make
higher speed improves their lives. Explain the benefits the retail experience about How can we
to consumers or lose their attention. help you? not What can we sell you?
5 Obsess about customers
2 Build emotional connection

with consumers
Move away from the discussion about
functionality and price. Find an emotional
connection that differentiates the brand
Consumers have already invited the telecom and resonates with the customer. Look for
providers into their homes. The brands exist in the a connection that persuades consumers
background most of the time, with low awareness to purchase the brand, forgive its
when everything is working fine and immediate mistakes, and become brand advocates.
frustration when they are not. A more emotional
connection, perhaps around content, would
strengthen the bond. With the Internet of Things,
that bond, and the access it permits, will be critical.
6 Reward loyalty
Reward loyal customers in more
3 Anticipate new competition

More competitors will enter from outside the
meaningful ways that perhaps are
more lifestyle-based instead of simply
extending their data quotas beyond
telecom provider category. Expect to develop, what they would probably use.
acquire or partner with other organizations. Content
will be critical to keeping consumers interested and
returning for more.
7 Look outward
Imagine the world in 10 years. What role
does the brand play? Think beyond the term
digital. All brands are digital in some way.
In what specific way is the brand digital?
Innovate at the pace subscribers expect.
Collaborate with innovative partners.
6
23

Thought Leadership >PRIVACY
PRIVACY
RISING CONSUMER
Modern companies will probably have to adopt a digital This regulation is very far reaching. It not only regulates how
sustainability approach to stay competitive when personal information is to be gathered, stored, handled and
consumers become more and more aware of the value of erased, but also requires that any major data intrusions or
their personal data and of how their personal data can be data leaks will have to be reported to the authorities. GDPR
CONCERNS ABOUT
used to draw conclusions about them far beyond what they will most likely put demands on not just IT-systems but also
ever imagined sharing. on organization, products and even business models. And you
only have two years to figure it out and adjust.
It used to be simple: make sure that no one can steal our
DATA PRIVACY
data, but its getting more and more complicated. With the Secondly - not overusing metadata to
digitalization of businesses and society, a new dimension is
very quickly becoming a major factor in brand value. If a brand intrude on personal integrity (staying
failed to satisfy public scrutiny of how it treated customer data, on the right side of the creepy line)
personal data and what kind of analysis it does on behavior
POSE EXISTENTIAL
data, the reaction might cause irreparable brand damage. Big data analysis and analysis of unstructured information is
getting more and more into our business reality and most of
This is a new and very volatile dimension for brands, since us have already been intrigued and well serviced by e-shop
there are several surveys that indicate that consumers or functions such as Other persons that have bought what
BRAND THREAT
citizens really do not care if (and to a large extent trust that) you just put in the cart have also bought this. By combining
their personal information is handled properly. But that might technologies such as profiling and collective intelligence a
very well change as more and more consumers come to company can predict your behavior, needs and personality to
realize the value of the personal information they give away an extent never known before. This is a powerful tool that can
for free and as hacker activity resulting in data leaks become be a great service, planner for better society and healthcare
more and more frequent. predictor that can save lives and suffering. But its also under
your skin in terms of integrity.
In todays world, a creepy

Right now we might say: So, the hackers got my name and
address and perhaps my credit card number big deal, Ill
just block my card and Im fine. But when a personal profile
Thirdly - making use of automation
line can kill a great brand is leaked that reveals your sexual preferences, religious
beliefs, political views and your secret friends, then you
and artificial intelligence in a
responsible, accountable and
may not be fine.
transparent way
Today brands are navigating an unknown minefield But we are not there yet, even though Facebook is being
Artificial Intelligence is nothing new, but there have been
where consumer behaviors and attitudes constantly heavily criticized for how it harvests the information we give
major leaps forward in recent years. Enterprises and society
away about ourselves to target ads, and alternative social
create new and hidden mines. One such mine is being are, with more and more powerful IT-systems, moving
platforms, such as Ello, are trying to operate without ads. My
planted and armed as we consider it. Heres how you can towards automation and this time its beyond simple industrial
prediction is that three major dimensions will affect brand
processes. We will soon have automated decision processes.
spot it and perhaps avoid it blowing your brand to pieces. value and reputation:
When we talk to a physician in the future we might very well
be talking to an AI-system. When we sit in a future car we will
Firstly - keeping personal information probably surrender control to an AI-system that will control
Its not just publically humiliating hacks, such as the one exposing
people using the Ashley Madison site to find dates outside their safe and with only minimal and the vehicle through complex traffic situations. And most likely
traffic will run smoother with less traffic incidents.
marriages. An intensifying focus and interest is also gaining justified use Future brands will have to watch these dimensions just
momentum, not just around how enterprises protect personal data, but
as carefully as present brand watch dimensions such as
also how they use it. The EU Commission is apparently very concerned about
sustainability, equality, ecological etc. to avoid running into
privacy and is this spring presenting a regulation on data
an explosive mine and get your brand values blown to pieces.
privacy (General Data Protection Regulation GDPR) that will
Lennart Hkansson Let sleeping dogs lie is no longer a viable strategy.
Executive Vice President affect every company in Europe and every company that does
Cohn & Wolfe Sweden business with European consumers. This regulation will replace
Lennart.Hakansson@cohnwolfe.com legislation in all the individual member countries and will come
9
into effect two years after being presented (most probably
23
spring 2018).
Cohn & Wolfe, a global communications agency, builds brands and corporate
8
23
reputations through an uncompromising commitment to creativity.

Thought Leadership >PRIVACY
PRIVACY
ACTION
POINTS
TO PROTECT
BRANDS ON
PRIVACY
ISSUES
1
Get acquainted with General
Data Protection Regulation
being promulgated by the
EC and understand in what
ways it will affect your
company and your brand.
2
Clearly state for consumers
how you handle their data
(register, save, analyze and
delete) over time.
3
Create a model for
explaining to consumers
how you handle meta data
and behavioral data and
to what extent automatic
decision making affects
the consumer.
0
24
ICELAND
Thought Leadership >MOBILE MENTIONS
MOBILE MENTIONS
GAME-CHANGING
In the first quarter of 2016, Kantar It is on Apple devices that more app of 111 (against an average for all brands
collected and analyzed the mobile money is spent, an average of $13.83 of 100) compared to only 106 for the
behaviors of almost 40,000 members compared with $3.18 on Android bottom quarter. And further BrandZ
of the Kantar Behavioral Panel of smartphones. Paid-for apps on iOS measures show us that the attraction of
TECHNOLOGY
Android or iOS users who between devices outnumber those on Android those mentioned more is significantly
them shared almost 1.4 billion seconds by 4:1. greater. Brands that are more loved
of web browsing behavior. Panelists attract more searches.
agreed to install an app on their mobile/ Brand mentions and the
ENRICHES
tablet device, which captured all their Those mentioned more are rated as
daily digital activities, allowing the power of mobile search being much more innovative, tend to
measurement of actual, not reported, have a brand personality that is hugely
behavior. The respondents were not Using this data, Kantar carried out more Different, are bought more often
required to do anything else. With special research to look for any and by more people, and rated better
MOBILE
their consent, Kantar then viewed and mentions of the 87 US brands that on being worth more than it costs,
analyzed their digital behavior. appear in the ranking of the 2016 thus commanding a greater premium
BrandZ Top 100 Most Valuable Global because of what the brand stands for.
This game-changing technology Brands, either in the Global Top 100
ranking or in the rankings of any of the
DEVICE DATA
enriches your data in a way that has To understand the commercial impact
never been possible before. Mobile 14 categories that appear in the report. of mobile mentions, we identified the 77
usage, ad exposure, and location brands that appeared in both the 2016
awareness can all be measured and Amazon gets the greatest amount of BrandZ Global Top 100 and the 2015
analyzed: how, where and when brand mentions on the screens of US report. We divided these brands into
consumers use and shop on their mobile mobile web browsers, narrowly beating two groups: More mobile mentions
devices. The content and context of Google. Not surprisingly, Amazon, and Fewer mobile mentions. We also
Shows link between more

every single page view is coded which Google and Facebook accounted compared the 2016 brands with the 50
enables us to determine where and for just over half of all mentions (52 brands that also appeared 11 years ago,
when a brand exposure has occurred. In percent). in the 2006 report, and we conducted
mentions and higher value many instances theres more than one
brand exposed on each page view with When we list all 87 US brands according
to the number of mobile mentions
the same analysis. Our finding: the
impact of mobile mentions on brand
a differing degree of impact. value growth is striking and indisputable.
received, the brands in the top half of Here are the results: >>
Kantar and BrandZ have According to results across the panel the list receive 74 times more mobile
late last year, the average number mentions that the brands in the bottom
investigated how mobile
of apps on a smartphone is 64 with half of the list. Even if we exclude
involves brand mentions and Amazon, Google and Facebook, the 1 year 11 years
less than two (1.65) of these paid- % value % value
drives brand value growth. It is for apps. The appeal of the free is figure is 37 times more. growth growth
clear that no successful brand especially attractive to the young, while
Kantar findings indicate that the key to More
can afford to ignore joining older users are more likely to invest in
success for a mobile strategy is closely mobile +10% +173%
paid-for apps. Demographic age splits mentions
the mobile revolution. across the panel reveal younger people related to its ease of use. This data
(millennials) spend more time browsing helps clients improve the all-important
Fewer
user experience. BrandZ data shows
on their mobile but older people spend mobile -3% +100%
more money. that the top half mobile mentioned mentions
brands have a Brand Experience score
Peter Walshe Guy Rolfe

Global Brands Director Mobile Practice Leader
3
24
Millward Brown Kantar
Peter.Walshe@millwardbrown.com Guy.Rolfe@kantar.com
2
24

Thought Leadership >MOBILE MENTIONS
MOBILE MENTIONS
How brands can do they can leverage and integrate into

these established and popular apps
better to improve their rather than expecting they can create
mobile presence their own branded instance to rank in
the Top 100.
The app ecosystem is becoming
consumers primary gateway for
accessing media and content. The
50 most used apps by time spent
are dominated by these categories:
TOP 10 US MOBILE
device productivity, search, messaging, BRANDS
social media, mapping and weather % of
Mentions
services.The next 50 are dominated
by entertainment, games, music and 1 Amazon 21.2
antivirus software.
2 Google 20.8
Some apps are close to universal: 3 Facebook 9.9
Facebook, YouTube, Instagram, Google
Maps, Pandora, Messenger and Twitter; 4 Microsoft 8.0
while others, if not quite universal, are 5 Apple 5.9
in massive distribution: eBay, Amazon,
Walmart and Target in retail; and Netflix 6 EBay 4.2
and Hulu in video streaming. The next 7 PayPal 3.4
group of apps in popularity is a mix of
media apps from print and TV titles 8 AT&T 2.8
along with service apps from banks,
9 Verizon 2.3
retailers, hotels and transport that will
round out the list of apps that everyone 10 Walmart 2.2
will know and most use.
These results show the relative
In the same way people dont really use popularity of brands based on
a 500 channel TV but instead spend the number of web page views
most of their time on no more than 20 that contained the brand name
channels, the idea of millions of apps to during the first quarter of 2016.
choose from is broadly irrelevant. Its The results are based on web
only a relatively modest number of apps browsing behavior research that
that account for the majority of time was conducted in the US with
spent. a panel of 40,000 individuals.
The research tracked the mobile
Manufacturer and FMCG brands that media mentions of the 87 US
want to create a strong and ongoing brands that rank, in either the
mobile presence should consider how categories or the Top 100, in the
2016 BrandZ Global Top 100
report. The chart lists the Top 10.
Source: Kantar
Kantar is the data investment Millward Brown is a leading global

management arm of WPP and one of the research agency specializing in advertising
4
24
worlds largest insight, information and effectiveness, strategic communication,

consultancy groups. media and brand equity research.

Thought Leadership >CULTURAL INSIGHT
CULTURAL INSIGHT
CULTURE TOPS
In many cases, the same content or idea evokes different a nation on the values of its members, and how these values
responses across markets: TV commercials that deliver relate to behavior. This link from attitude to action makes it
well in the markets for which theyre designed fail to move possible to predict behavior by understanding the culture.
the needle in reapplication markets. Celebrity endorsers
GEOGRAPHY IN
drive credibility in one market but barely make an impact With the crucial link between cultural values and behavior, we
in another. Whats worse, there is very little predictability of will be able to unearth cultural nuggets that help explain how
success around any of this. differently celebrities should be used in India versus Australia
because the countries have vastly different scores on the
RELEVANCE TO
With a view to maximizing efficiencies, global marketers have Power Distance Index, which in general measures to what
organized themselves along traditional geographic norms extent people accept or reject hierarchies of power. Similarly,
of market clusters. But does geographical proximity imply we expect the slower adoption of new products in risk adverse
similarity in consumption attitudes? Consider the popular societies. But with deeper analysis we can understand the
Whip It campaign from Pantene that challenges negative subtle adoption behavior differences between risk adverse
MARKETERS
stereotypes that block women from progressing in the societies, such as Japan and Israel.
workplace. The ad was a success in the Philippines where
it was created, but it failed to create ripples when taken to Culture is dynamic, constantly being reshaped by certain
neighboring Southeast Asian markets. inherent and, at times, contradictory forces. Immigration
and cross-border movements have made traditional political
Further, across these geographical entities, there are only a borders less representative boundaries of national culture;
handful of markets acting as design hubs for content to be London being the second-largest French city is perhaps
Migration, identity changes rolled out across almost a hundred markets. Are these design
markets chosen based on best reapplication potential or
a good example of this phenomenon! At the same time,
immigrants easy access to information, communication and
create a new cultural map

effectiveness? Not really. Typically, they are markets where entertainment from their home countries prevents seamless
the business is largest, the US and China being among the integration to mainstream culture, resulting in a unique third
usual suspects. In fact, China is now the lead market for a culture. There are early indications that such forces may have
number of brands, from soft drinks to shampoos. resulted in new dimensions that redefine and explain national
culture.
In a marketing world increasingly
Is there anything that can give us a better shot at
focused on scale and efficiency, effectiveness, without compromising efficiency? Can we have Therefore, to capture the new dimensions and update Dr.
marketers are producing global better predictability around what will work where? Hofstedes cultural framework, with a deliberate attempt
campaigns more efficiently than to understand brand consumption attitudes through a
ever before. But how successful Global marketing needs real nations cultural lens, MediaCom is now leading the largest
global culture study ever undertaken, through an exclusive
are they? Data show that while cultural understanding and unique partnership with The Hofstede Centre. A
campaigns usually do well in the comprehensive cultural framework boasts huge coverage
The biggest missing factor in global marketing may be a (60,000-plus consumers across over 60 markets), enhanced
market of origin, less than half real understanding of national culture culture that shapes granularity (gender, ethnicity, sub-geography, demography),
of them succeed when reapplied attitudes and beliefs, that defines emotional response, that and most importantly renewed cultural dimensions and
globally. In a nutshell, efficiently explains consumption choices, that helps us genuinely their relation to consumer and consumption dynamics. The
understand how a country thinks and feels.
produced campaigns, when refreshed findings are aimed at finding the balance between
global efficiency and local effectiveness.
scaled globally, are not half as Cultural studies have existed for decades and have been
Nihar Das Pinaki Dutt
Global P&G Business Leader Global Head of Connected Applied Intelligence effective as marketers would like widely used by management experts, and global aid and Imagine a world mapped by culture, where countries are
MediaCom MediaCom political organizations, to better understand cross-cultural
Nihar.Das@mediacom.com Pinaki.Dutt@mediacom.com
them to be. coded, not by topography or political boundaries, but by
communication. However, although culture has implications similarity in attitudesand approaches to life. This map would
on every facet of our work, from creative to communication constantly shift and change to keep up with how culture
to distribution, marketers have rarely applied it. evolves. This cultural cartography could enable marketers to
crack the perfect recipe for successful global campaigns. It
The father of scientific cross-cultural analysis, Dr. Geert is time to become truly global in our marketing. It is time to
Hofstede, pioneered one of the earliest, large-scale studies of create a new world map through the cultural lens of the world.
7
24
cultural understanding. His Cultural Dimensions Framework Such a map is critically needed and most important may
describes and measures the effects of culture of a society or soon be a reality.
6
24
MediaCom is the The Content + Connections Agency, working to leverage brands entire system
of communications across paid, owned and earned channels to step-change business outcomes.

Resources
Resources>BRANDZ METHODOLOGY
7 Resources
BRANDZ BRAND
VALUATION METHODOLOGY
Introduction The Valuation Process

The brands that appear in this intensive, in-market consumer research Meaningful Step 1: Calculating this component the Brand Multiple. Its that way to consumers), and being Salient
report are the most valuable in differentiates the BrandZ methodology In any category, these brands appeal similar to the calculation used by financial (coming to mind quickly and easily as the
from competitors that rely only on a panel more, generate greater love and meet
Financial Value analysts to determine the market value answer when people are making category
the world. They were selected
of experts, or purely on financial and the individuals expectations and needs. of stocks (Example: 6X earnings or purchases).
for inclusion in the BrandZ market desktop research. Part A 12X earnings). Information supplied by
Top 100 Most Valuable Global We start with the corporation. In some Bloomberg data helps us calculate a We identify the purchase volume and any
Different
Brands 2016 based on the unique Before reviewing the details of this cases, a corporation owns only one brand. Brand Multiple. We take the Branded extra price premium delivered by these
These brands are unique in a positive way
methodology, consider these three All Corporate Earnings come from that Earnings and multiply that number by the brand associations. We call this unique
and objective BrandZ brand and set the trends, staying ahead of the
fundamental questions: why is brand brand. In other cases, a corporation owns Brand Multiple to arrive at what we call role played by brand, Brand Contribution.
valuation methodology that curve for the benefit of the consumer.
many brands. And we need to apportion
important; why is brand valuation Financial Value.
combines extensive and on- important; and what makes BrandZ the the earnings of the corporation across a Heres what makes BrandZ so unique
going consumer insights with Salient portfolio of brands.
definitive brand valuation tool?
They come spontaneously to mind as the Step 2: Calculating and important. BrandZ is the only brand
rigorous financial analysis. valuation methodology that obtains
brand of choice for key needs. To make sure we attribute the correct Brand Contribution
Importance of brand portion of Corporate Earnings to each
this customer viewpoint by conducting
The BrandZ valuation methodology worldwide on-going, in-depth quantitative
can be uniquely distinguished from its
Brands embody a core promise of values
Importance of brand, we analyze financial information So now we have got from the total value consumer research, online and face-
of the corporation to the part that is the
competitors by the way that it is based on
and benefits consistently delivered. brand valuation from annual reports and other sources,
such as Kantar Retail. This analysis yields a branded value of the business. But this
to-face, building up a global picture of
the viewpoints of consumer, who is the brands on a category-by-category and
Brands provide clarity and guidance for
ultimate contributor to a brands financial metric we call the Attribution Rate. branded business value is still not quite market-by-market basis. Our research
choices made by companies, consumers, Brand valuation is a metric that quantifies
success. We conduct worldwide, on- the core that we are after. To arrive at now covers over three million consumers
investors and others stakeholders. Brands the worth of these powerful but intangible
going, in-depth quantitative consumer We multiply Corporate Earnings by the Brand Value, we need to peel away a few and more than 100,000 different brands
provide the signposts we need to navigate corporate assets. It enables brand owners,
research, and build up a global picture of Attribution Rate to arrive at Branded more layers, such as the in-market and in over 50 markets.
the consumer and B2B landscapes. the investment community and others to
brands on a category-by-category and Earnings, the amount of Corporate logistical factors that influence the value
evaluate and compare brands and make
Earnings attributed to a particular brand. of the branded business, for example:
market-by-market basis.
At the heart of a brands value is its ability faster and better-informed decisions.
If the Attribution Rate of a brand is price, availability and distribution. Step 3: Calculating
Globally, our research covers three million
to appeal to relevant customers and
Brand valuation also enables marketing
50 percent, for example, then half the Brand Value
potential customers. BrandZ uniquely
consumers and more than 100,000 Corporate Earnings are identified as What we are after is the value of the
measures this appeal and validates it professionals to quantity their
different brands in over 50 markets. This coming from that brand. intangible asset of the brand itself that Now we take the Financial Value and
against actual sales performance. Brands achievements in driving business growth
exists in the minds of consumers. That multiply it by Brand Contribution, which
that succeed in creating the greatest with brands, and to celebrate these
Part B means we have to assess the ability of is expressed as a percentage of Financial
attraction power are those that are: achievements in the boardroom.
What happened in the past or even brand associations in consumers minds to Value. The result is Brand Value. Brand
whats happening today is less deliver sales by predisposing consumers Value is the dollar amount a brand
Distinction of BrandZ important than prospects for future to choose the brand or pay more for it. contributes to the overall value of a
earnings. Predicting future earnings We focus on the three aspects of brands corporation. Isolating and measuring
BrandZ is the only brand valuation that we know make people buy more and this intangible asset reveals an additional
requires adding another component to
tool that peels away all of the financial pay more for brands: being Meaningful source of shareholder value that
our BrandZ formula. This component
and other components of brand value (a combination of emotional and rational otherwise would not exist.
assesses future earnings prospects as
and gets to the core how much brand affinity), being Different (or at least feeling
a multiple of current earnings. We call
alone contributes to corporate value. This
core, what we call Brand Contribution,
differentiates BrandZ.
1
25
0
25

Resources>BRANDZ METHODOLOGY & PUBLICATIONS
7 Resources
BRANDZ BRAND BRANDZ REPORTS, APPS

VALUATION METHODOLOGY AND IPAD MAGAZINES
Why BrandZ is BrandZ - the ultimate

the definitive brand resource for brand
valuation methodology knowledge and insight
Country Market Reports
All brand valuation How does the Whats the

methodologies are similar competition determine BrandZ benefit?
up to a point.
the consumer view?
The BrandZ methodology produces
All methodologies use financial important benefits for two broad
Interbrand derives the consumer point
audiences.
research and sophisticated of view from panels of experts who
mathematical formulas to contribute their opinions. The Brand
Members of the financial community,
Finance methodology employees a
calculate current and future including analysts, shareholders,
complicated accounting method called
earnings that can be attributed Royalty Relief Valuation. investors and C-suite, depend on
BrandZ Top 50 Most Valuable Indian BrandZ Top 50 Most Valuable
BrandZ Top 100 Most Valuable
directly to a brand rather than BrandZ for the most reliable and
Chinese Brands 2016 Brands 2015 Indonesian Brands 2015
to the corporation. This exercise accurate brand value information
Why is the BrandZ available. The report profiles Chinese brands, This ground-breaking study analyzes This study analyzes the success of
produces an important but
methodology superior? outlines major trends driving brand the success of Indian brands across Indonesian brands, examining the
incomplete picture. Brand owners turn to BrandZ to growth and includes commentary 13 categories, examines the dynamics dynamics shaping this fast-emerging
more deeply understand the causal on the growing influence of Chinese reshaping the Indian market and offers market and offering insights for
BrandZ goes much further and is more
brands at home and abroad. insights for building valuable brands. building valuable brands.
Whats missing? The picture relevant. Once we have the important, links between brand strength, sales
of the brand at this point lacks but incomplete, financial picture of the and profits, and to translate those
brand, we communicate with consumers, insights into strategies for building
input from the people whose
people who are actually paying for brands brand equity and fuelling business
opinions are most important growth.
every day, constantly. Our on-going,
the consumers. This is where in-depth quantitative research includes
the BrandZ methodology three million consumers and more than
and the methodologies of our 100,000 brands in over 50 markets
competitors part company. worldwide.
BrandZ Top 50 Most Valuable Latin Spotlight on Myanmar 8 Retail Trends in China
American Brands 2015
The story of Myanmar is one of huge With the continued rebalancing of the
The report profiles the most valuable potential, as a new era of openness Chinese economy, 2016 - The Year of
brands of Argentina, Brazil, Chile, signals strong growth opportunity. Now is the Monkey, could be characterized as
Colombia, Mexico and Peru and explores the time for brands to make an impression another year of change for China. The
3
25
the socio-economic context for brand in this emergent economy. retail sector is at the intersection of much
growth in the region. of this transformation, and with the rapid
2
25
growth of e-commerce, Chinese retail is

For the iPad magazine, search changing and adapting fast.
BrandZ Latin America on iTunes.

Resources>BRANDZ PUBLICATIONS
7 Resources
BRANDZ REPORTS, APPS

AND IPAD MAGAZINES
BrandZ - the ultimate Brand Building Tools

NEW
resource for brand
TrustR
Leaders in the hot seat
Engaging Consumers in the Post-
Recession World CMOs from leading brands
reveal the ingredients of
knowledge and insight

Trust is no longer enough. Strong brands
inspire both Trust (belief in the brands brand strength, value
promise developed over time) and and longevity.
Recommendation (current confirmation
of that promise). This combination of
Trust plus Recommendation results in a
new metric called TrustR.
China in Depth
ValueD
Balancing Desire and Price for Brand

Success
Desire is primary. High Desire enables
Price flexibility. A new metric, Value-D,
measures the gap between the
consumers Desire for a brand and the
consumers perception of the brands
Price. By quantifying this gap, Value-D
helps brands optimize their profit and,
market-positioning potential.
Unmasking the individual Chinese Investor The Power and Potential of the Chinese Dream
RepZ
This exclusive new report provides the first The Power and Potential of the Chinese Dream
detailed examination of Chinese investors,
what they think about risk, reward and
is rich with knowledge and insight, and forms part
of a growing library of WPP reports about China.
Maximising Brand and Corporate Integrity
Major brands are especially vulnerable
BrandZ
the brands they buy and sell. This will help
brand owners worldwide understand market
It explores the meaning and significance of the
Chinese Dream for Chinese consumers as well
to unforeseen events that can quickly
threaten the equity cultivated over a long
on the move
dynamics and help build sustainable value. as its potential impact on brands. period of time. But those brands with a
Get the BrandZ Top 100 Most
better reputation are much more resilient.
Valuable Global Brands, Chinese
Four key factors drive Reputation: Success,
Top 100, Latin American Top
Fairness, Responsibility and Trust. Find out
50, Indian Top 50 and many
how your brand performs.
more insightful reports on your
smartphone or tablet.
To download the apps for the

BrandZ rankings go to www.
BrandZ.com/mobile (for iPhone
and Android). BrandZ is the
worlds largest and most reliable
customer-focused source of brand
The Chinese Golden Weeks The Chinese New Year equity knowledge and insight. To
in Fast Growth Cities in Next Growth Cities learn more about BrandZ data or
CharacterZ studies, or view one of our industry
Using research and case studies, the report The report explores how Chinese families celebrate insight videos, please visit www.
examines the shopping attitudes and habits this ancient festival and describes how the holiday Brand personality analysis deepens brand understanding BrandZ.com, or contact any WPP
of Chinas rising middle class and explores unlocks year-round opportunities for brands and Need an interesting and stimulating way to engage with your company.
5
25
opportunities for brands in many categories. retailers, especially in Chinas lower tier cities. clients? Want to impress them with your understanding of their
brand? A new and improved CharacterZ can help! It is a fun visual
4
For the iPad magazine, search Golden For the iPad magazine search for Chinese New analysis, underpinned by the power of BrandZ, which allows
25
Weeks on iTunes. Year on iTunes. detailed understanding of your brands personality.

Resources>WPP COMPANY CONTRIBUTORS
7 Resources
WPP COMPANY CONTRIBUTORS
These companies contributed

expertise and perspective
ACCELERATION ADDED VALUE ADK AXICOM BRAND UNION BRAVO BURSON-MARSTELLER CAVALRY
Acceleration crafts digital Added Value is a strategic ADK is Japans third-largest Founded in London in 1994, Brand Union is a leading Founded in 1980, Bravo Burson-Marsteller, established Founded in 2012 and
marketing capability for marketing consultancy. We full service advertising agency AxiCom has seven offices global brand agency with is a full-service Hispanic in 1953, is a leading strategic headquartered in Chicago,
global brands and industry help the worlds leading brand that is striving to become across the major technology deep expertise in brand marketing and advertising communications and global Cavalry is a standalone
leaders. We are digital natives owners (Unilever, Nestle, a Consumer Activation business centres in Europe strategy, design, interaction, agency. For over 35 years public relations firm. It agency with the full creative
who early on understood AT&T, PepsiCo, Diageo, Company. Consumer in London, Paris, Munich, brand management and Bravo has been helping clients provides clients with strategic and media-buying power
the radical impact that Mondelez, Vodafone and Activation is an advanced Milan, Madrid, Amsterdam employee engagement. With capitalize on the growing US thinking and program of the WPP network at its
technology would have on GSK) to create marketing that form of comprehensive and Stockholm and employs 500 people in 25 offices, Hispanic and multicultural execution across a full range disposal. An elite fighting
the future of brands. A rare shifts culture. We connect communications that 100 people. The agency Brand Union serves every opportunity in America. of public relations, public force with uncompromising
breed of individuals with brands, people and culture motivates consumers to specializes in the technology major market with clients Today Bravo employs over affairs, reputation and crisis standards and a bias for
comprehensive experience in by joining the dots between take action. It is a marketing sector, encompassing including Vodafone, Bank of 160 full-time, multi-disciplined management, advertising and action, were built to surprise,
building marketing capability, data drawn from multiple process that motivates enterprise computing, America, GSK, Jaguar Land and multicultural marketing digital strategies. The firms outflank, and overpower.
driving best practice and sources to create insights consumers to take specific telecommunications, Rover, CBRE, Pernod Ricard, professionals and is ranked seamless worldwide network Nimble, sharp, and focused,
implementing marketing and ideas that transform actions and is directly linked consumer technology, media IHG, LeGroup, Shazam and the number 4 Hispanic consists of 73 offices and were trained in the classic
technology. businesses. We have an to the business success of technology, and energy. Tencent. From the most advertising agency in the US 85 affiliate offices, together principles but equipped to win
eclectic set of capabilities; clients. ADK has moved The firm provides strategic significant of launches to the by Ad Ages 2015 Hispanic operating in 110 countries on todays battlefield. Thats
Operating at the intersection brand consultants, innovators, beyond the issue of how the communications support smallest of online interactions, Fact Pack Report. across six continents. why our track record is one
of technology and strategy, marketing scientists, brand should be positioned including media and analyst Brand Union defines, creates, Burson-Marsteller is a unit of reviving brands, driving
consumer engagement and qualitative researchers, in the hearts of consumers relations to many of the and curates the total brand www.bebravo.com of WPP, the worlds leading brands to great heights,
insights to build the specific cultural anthropologists to consider how to move worlds premier technology experience, ensuring its communications services adapting brands to new
programs needed to grow and graphic designers. Our consumers, in other words, companies including Dell, both brilliantly designed and Eric Hoyt network. markets, and building brand
market share and expand solutions are always designed how to activate them. Microsoft Devices Group, Red beautifully connected. President and CEO powerhouses from scratch.
global reach. Since our to be execution ready. Hat, Belkin, Freesat and Alevo. Eric.Hoyt@bebravo.com www.burson-marsteller.com
inception in 1999 we have www.adk.jp Since 2008, the agency www.brandunion.com www.cavalryagency.com
established a reputation in www.added-value.com has been part of global Donald A Baer
accelerating value-delivery Noriaki Kamei technology communications Toby Southgate Worldwide Chair and CEO Martin Stock
for brands on the road to Bart Michels Executive Manager of Media firm Cohn & Wolfe. Worldwide CEO Don.Baer@bm.com CEO
digital transformation. Part Global CEO & Data Insight Sector Toby.Southgate@brandunion.com Marty.Stock@cavalryagency.com
of WPP Digital, we employ B.Michels@added-value.com NKamei@adk.jp www.axicom.com
over 150 strategic marketing
technologists globally. Helen Ridgway
CEO
www.acceleration.biz Helen.Ridgway@axicom.com
Richard Mullins
Managing Director of MEA
9
Richard@acceleration.biz
25
8
25

7 Resources

COHN & WOLFE MQUINA COHN & WOLFE CONTRACT FITCH GEOMETRY GLOBAL GROUP XP GROUPM GREY
Cohn & Wolfe, a global Mquina Cohn & Wolfe, the Setting a scorching pace since Designing the future. FITCH Geometry Global, the Group XP is an Experience GroupM is the leading Grey ranks among the worlds
communications agency, Brazilian network of global its inception in 1986, Contract transforms consumer worlds largest and most Innovation offer from WPP. global media investment top advertising and marketing
builds brands and corporate communications agency Advertising in the last 30 experience and accelerates international brand activation Comprising Brand Union, management company organizations. Grey operates
reputations through an Cohn & Wolfe, builds brands years has built a reputation for business success. We agency, drives conversion, FITCH and SET, and featuring serving as the parent to WPP in 96 countries and serves
uncompromising commitment and reputations through an igniting the flames of passion deliver seamless solutions action and purchase through a thousand smart minds media agencies including one-fifth of the FORTUNE
to creativity. The agencys uncompromising commitment that have created trailblazing by combining the physical, award-winning programs across a network of 40 Mindshare, MEC, MediaCom, 500. Its parent company is
strategic approach unearths to creativity. The agencys brands across industries. human and digital elements that change behavior and studios and spanning five Maxus, and Essence, as well WPP. Under the banner of
fresh insights leading to approach unearths insights A passion for insights, an of a brand to create unique inspire people to buy well. continents we are one of the as the programmatic digital Grey Famously Effective
communications solutions leading to communications obsession with out-of-the- experience signatures. With teams in 56 markets, worlds largest experience media platform, Xaxis, each Since 1917, the agency serves
that deliver measurable solutions that deliver box ideas, strategic thinking FITCH is a leading global retail Geometry Global has consulting groups. global operations in their own a blue-chip client roster of
success. Throughout its 45- measurable success. that breaks the traditional and brand consultancy with expertise in shopper, digital, right with leading market many of the worlds best
year history, Cohn & Wolfes Throughout its 45-year mould, a fanatical pursuit of an integrated offer of strategy, experiential, relationship, Group XP is uniquely positions. GroupMs primary known companies: Procter
brand marketing work and history, Cohn & Wolfes brand creativity and a commitment design and implementation, promotional and trade positioned for clients purpose is to maximize & Gamble, GlaxoSmithKline,
world-class digital campaigns marketing work and digital to driving business results; which enables us to deliver marketing. Geometry Global is ready to challenge their performance of WPPs media Darden Restaurants, Pfizer,
have attracted top global campaigns have attracted these resolves sum up the across all touchpoints. We do a WPP company. marketing conventions. We agencies by operating as Canon, 3M, NFL, Boehringer-
brands, winning awards at top global brands, winning Contract difference and have this for clients that include design impactful end-to- leader and collaborator in Ingelheim, Marriott Hotels &
the Cannes Health Lions, at the Cannes Health Lions, made us Indias firebrand Adidas, B&Q, Brown-Forman, www.geometry.com end experiences that drive trading, content creation, Resorts, Eli Lilly, DirecTV, Ally
the Global SABREs and the the Global SABREs and the agency. Besides mass media Dell, H&M, Philips and innovation and accelerate sports, digital, finance, Financial and Kelloggs. Grey
Global PRWeek Awards. Cohn Global PRWeek Awards. Cohn advertising, Contract offers McLaren Automotive. Steve Harding business growth. proprietary tool development was recently named Adweeks
& Wolfe has more than 50 & Wolfe has more than 50 truly integrated marketing Global CEO and other business-critical Global Agency of the Year
offices across Asia, EMEA, offices across Asia, EMEA, and communication solutions www.fitch.com Steve.Harding@geometry.com www.group-xp.com capabilities. GroupMs and Ad Ages Agency of the
Latin America and North Latin America and North through its specialist divisions focus is to deliver unrivaled Year.
America, and has been named America, and has been named namely iContract (Digital), Gavin Clark Simon Bolton marketplace advantage to
a Best Place to Work by The a Best Place to Work by The Designsutra (Design) and Global Development Director Group CEO its clients, stakeholders and www.grey.com
Holmes Report, PRWeek and Holmes Report, PRWeek and Core (Consulting). Gavin.Clark@fitch.com Simon.Bolton@group-xp.com people.
PRNews. PRNews. James R. Heekin
www.contractindia.co.in www.groupm.com Chairman and CEO
www.cohnwolfe.com www.maquinacohnwolfe. James.Heekin@grey.com
com Rana Barua Irwin Gotlieb
Jill Tanenbaum Chief Executive Officer Chairman
CMO Jill Tanenbaum Rana.Barua@contractindia.co.in Irwin.Gotlieb@groupm.com
Jill.Tanenbaum@cohnwolfe.com CMO
Jill.Tanenbaum@cohnwolfe.com
1
26
0
26

7 Resources

GTB HILL+KNOWLTON IDEAL H+K STRATEGIES PBN HILL+KNOWLTON I-CHERRY IMRB INTERNATIONAL J. WALTER THOMPSON KANTAR
STRATEGIES STRATEGIES
Introducing GTB! You Ideal H+K Strategies creates i-Cherry helps clients to IMRB, a pioneer of market J. Walter Thompson Kantar is the data investment
probably remember us as Hill+Knowlton Strategies is data based communication PBN Hill+Knowlton Strategies connect with people through research services in Asia, Worldwide, the worlds management arm of WPP
either Team Detroit, Retail a leading global strategic strategies to build authentic is the preeminent strategic media, search, programmatic partners its clients through best-known marketing and one of the worlds
First or Blue Hive. But communications consultancy, narratives that influence communications, public and social ads campaigns. We the entire brand lifecycle by communications brand, has largest insight, information
those names are not really providing services to local people. First, we develop relations and government believe that by understanding bringing together experts been creating pioneering and consultancy groups. By
representative of who we are. and multinational clients strategies insights collected affairs firm specializing in peoples behaviors and from IMRB Consumer with solutions that build enduring connecting the diverse talents
Today, were like no other. We worldwide. The firm is by the business intelligence Russia, Ukraine, Kazakhstan their moments of search we sector and domain expertise brands and business for of its 12 specialist companies,
combine everything under globally headquartered in area, spotting trends and and the CIS. We have had a can help brands to craft a from its specialist units. more than 150 years. the group is the pre-eminent
one global roof to create New York City, with 88 offices hunting new and cool things presence on the ground in the more effective campaign Leveraging its large array of Headquartered in New York, provider of compelling data
some of the most memorable in 49 countries - including with our planners and region since 1991. We offer our that generates meaningful syndicated services, IMRB J. Walter Thompson is a true and inspirational insights
and effective advertising 13 offices in the US. Led by creatives. We aim to produce clients unmatched synergies engagement with their helps its clients in crafting global network with more for the global business
anywhere. Global Chairman and CEO 365 days of authentic in experience, wisdom audiences. marketing, branding and than 200 offices in over community. Its 30,000
Jack Martin, Hill+Knowlton narratives, from landing an and creativity and are fully communication strategies. 90 countries, employing employees work across 100
We were born different, Strategies serves as a article to the creation of a hub integrated with Hill+Knowlton Key differentials: An eight-time recipient of nearly 10,000 marketing countries and across the
founded to create an entirely trusted advisor to clients, with PRable content created Strategies worldwide. Nearly Maturity model approach, Agency of the Year, IMRBs professionals. The agency whole spectrum of research
new model of collaboration developing and executing based on editorial principles. half of all Fortune 500 global where we craft marketing footprint extends to 71 offices consistently ranks among the and consultancy disciplines,
and give marketers access to communications campaigns Then, we deliver it in multiple companies have chosen to strategies and activities across 18 countries spanning top networks in the world enabling the group to offer
the breadth of WPPs talent, and business strategies to channel, earned, owned or work with Hill+Knowlton based on the clients current South and South East Asia, and continues a dominant clients business insights at
ideas and tools. The result? manage the impact of the paid. Thats how we can reach Strategies, which offers senior state, and utilize web Middle East & North Africa, presence in the industry by every point of the consumer
An agency that truly works at public on an organizations people in the most efficient counsel, insightful research analytics to determine the Europe and Americas. staying on the leading edge cycle. The groups services are
the intersection of business reputation, brand and bottom way using PR, BI, public and strategic communications evolution of the campaigns from hiring the industrys employed by over half of the
and everything imaginable. line. affairs, content marketing, from over 80 offices in 50 and the client marketing www.imrbint.com first female copywriter to Fortune Top 500 companies.
Welcome to GTB. advertising, media buying etc. countries. team. developing award-winning
www.hkstrategies.com Performance based Preeti Reddy branded content today. www.kantar.com
www.gtb.com www.agenciaideal.com.br/ihk pbn-hkstrategies.com approach, where we work CEO South Asia For more information,
Jack Martin to improve performance on Consumer Insights follow us @JWT_Worldwide. Eric Salama
Kim Brink Global Chairman & CEO Edson Porto Myron Wasylyk every campaign. Preeti.Reddy@imrbint.com CEO
Chief Operating Officer Jack.Martin@hkstrategies.com Vice President Chief Executive Officer Dedicated specialist team, www.jwt.com Eric.Salama@kantar.com
Kim.Brink@gtb.com Edson.Porto@idealhks.com Myron.Wasylyk@ focused on training, new
hkstrategies.com trends and overall team Jocelyn Weiss-Malas
improvement. Director of Global
Communications
www.i-cherry.com.br Jocelyn.Weiss-Malas@jwt.com
Alexandre Kavinski
3
Global CEO
26
Alexandre.Kavinski@
2
i-cherry.com.br
26

7 Resources

KANTAR IBOPE MEDIA KANTAR MEDIA KANTAR RETAIL KANTAR WORLDPANEL KINETIC WORLDWIDE LABSTORE LAMBIE-NAIRN LANDOR
Kantar IBOPE Media, part Our clients rely on data We are the retail and shopper Kantar Worldpanel is the Kinetic is the global leader in Labstore is WPPs newest Lambie-Nairn has been A global leader in brand
of Kantar Media, is a global and services for all aspects specialists. We are a leading global expert in shoppers planning and buying Out of global retail and shopper creating Dynamic Brands for consulting and design,
leader in media intelligence, of media measurement, retail and shopper insight, behavior. Through continuous Home media and its mission marketing network, with over 40 yearsbrands built Landor helps clients create
providing clients with the data monitoring and selection. At consulting and analytics and monitoring, advanced is to pull forward, and make offices in over 20 countries, for a multi-screen, digital agile brands that thrive in
they need to make informed Kantar Media we provide the technology business, part analytics and tailored real, the future possibilities and a deep understanding world with the ability to todays dynamic, disruptive
decisions on all aspects most comprehensive and of Kantar Group, the data solutions, Kantar Worldpanel of the world of out of home of the shopper in every coherently evolve in real time marketplace. Landors
of media measurement, accurate intelligence on media investment management inspires successful decisions communications. major market around the and reshape categories. branding services include
monitoring and selection. consumption, performance division of WPP. We work with by brand owners, retailers, Kinetic is a WPP company world. Using our Shopper Beginning with our pioneering strategy and positioning,
The company employs and value. In terms of our leading brand manufacturers market analysts and and part of the tenthavenue Chemistry process, we work in broadcast identity; identity and design, brand
approximately 3,500 people, solutions, we deliver the best and retailers to help them government organizations performance marketing create ideas that result in our unique approach to architecture, prototyping,
with operations in 15 countries in class data and services sell more effectively and globally. division. Kinetics expertise purchase through the fusion brand building today extends innovation, naming and
across Latin America. to help our clients drive profitably. At Kantar Retail we and insight helps deliver of digital and shopper. to industry leading brand verbal identity, research and
Kantar IBOPE Media communications strategies track and forecast over 1000 With over 60 years solutions for clients that management known as Brand analytics, environments and
combines the global technical efficiently and effectively. retailers globally and have experience, a team of 3,500, achieve ambitious brand and www.yrlabstore.com Optimisation. As part of experiences, engagement and
expertise and leadership of purchase data on over 200 and services covering 60 marketing goals. WPP we serve clients across activation, and interactive and
Kantar Media with the more Advertising, monitoring and million shoppers. Among our countries directly or through In addition to its core Jon Bird the globe and manage nine media design. Landor has 27
than 70 years expertise evaluation market leading reports are the partners, Kantar Worldpanel business, Kinetic provides Managing Director - Global offices in Europe, the Middle offices in 21 countries, working
and tradition of media Audience measurement annual PoweRanking survey turns purchase behavior into wide-ranging specialist Jon.Bird@yrlabstore.com East and Latin America. with a broad spectrum of
consumption in the Latin Consumer and audience and the Digital Power Study. competitive advantage in expertise through its world-famous brands. Clients
American market. target Kantar Retail works with over markets as diverse as FMCG, complementary service www.lambie-nairn.com include Barclays, Bayer, BBC,
Our brand promise Powering Insight solutions 400 clients and has 26 offices impulse products, fashion, divisions including Aureus, BMW, BP, FedEx, GE, Kraft
Informed Decisions reinforces Reputation, PR, monitoring in 15 markets around the baby, telecommunications Aviator, Kinetic Active, Kinetic Jim Prior Heinz, Pernod Ricard, Procter
our commitment to offering and evaluation globe. and entertainment, among Futures, Meta, Zone and Hi CEO & Gamble, Sony, and Taj
accurate, relevant information Social media intelligence many others. Rezz. Kinetic employs over J.Prior@lambie-nairn.com Group.
on consumption, performance www.kantarretail.com 900 professionals across 42
and media investment to www.kantarmedia.com www.kantarworldpanel.com offices worldwide. www.landor.com
over 400 customers media Philip Smiley
vehicles, advertising agencies Anna Reeves CEO Josep Montserrat www.kineticww.com/global Trevor Wade
and advertisers - in decision- Chief Marketing Officer Philip.Smiley@kantarretail.com Global CEO Global Marketing Director
making on media investments Anna.Reeves@kantarmedia.com Ignasi.Fernandez@ Mauricio Sabogal Trevor.Wade@landor.com
and optimization of the final kantarworldpanel.com Global CEO
result. Mauricio.Sabogal@kineticww.com
kantaribopemedia.com
5
Orlando Lopes
26
CEO
4
Orlando.Lopes@
26
kantaribopemedia.com

7 Resources

MAXUS MEDIACOM MILLWARD BROWN FIREFLY MILLWARD BROWN VERMEER MINDSHARE OGILVY & MATHER OGILVYONE WORLDWIDE
Maxus Global is a global MediaCom is the The Millward Brown is a leading Firefly is one of the largest Vermeer is the only global Mindshare is a global media Ogilvy & Mather is one OgilvyOne Worldwide is The
network of local media Content + Connections global research agency global qualitative research marketing consultancy agency network with billings of the largest marketing Customer Agency. It makes
agencies that embraces Agency, working on behalf specializing in advertising practices, and this geographic focused on unleashing in excess of US$34.5 billion communications companies brands more valuable to
technology and innovation of its clients to leverage effectiveness, strategic reach enables us to provide purpose-led growth through (source: RECMA). The in the world. It was named customers and customers
to deliver tangible business their brands entire system communication, media rich cultural understanding of the development and network consists of more the Cannes Lions Network of more valuable to brands by
benefits for clients. of communications across and brand equity research. the 50 markets we serve. Our embedding of consumer than 7,000 employees, in 116 the Year for four consecutive combining data and creativity
Maxus has a clear vision: paid, owned and earned Millward Brown helps global market perspective, insight-led marketing strategy, offices across 86 countries years, 2012, 2013, 2014 and to unlock Total Customer
to lead clients into change channels to step change clients grow great brands in-depth knowledge of structure and capability. They spread throughout North 2015; and the EFFIEs Worlds Value. With 112 offices
and the brilliant opportunity their business outcomes. through comprehensive the power of brands, and provide solutions to strategic America, Latin America, Most Effective Agency spanning nearly 40 countries,
that change creates. Maxus MediaCom delivers not research-based qualitative innovative solutions give us marketing challenges, rooting Europe, Middle East, Africa Network for two consecutive OgilvyOne employs the
delivers meaningful business just individual channel and quantitative solutions, a unique ability to unearth their approach in consumer and Asia Pacific. Each office years 2012 and 2013. The unique DAVE methodology to
results through a mix of silo efficiencies but also embracing the latest human truths that lead to research, stakeholder is dedicated to forging company is comprised of leverage ideas, data, content
smart organic growth and by connected communications technologies and leveraging compelling ideas. It is through understanding and financial competitive marketing industry leading units in: and technology to deliver
strengthening and expanding system effectiveness, by them to develop new these ideas that we are analysis. Vermeers whole- advantage for businesses advertising; public relations successful, digitally-driven
its specialist services. Clients developing and optimizing products and services to able to help brands achieve brain thinking brings an and their brands based and public affairs; branding Customer Engagement
include NBCU, LOral, Church all content defined as help marketers compete and differentiation and growth. intrinsically multi-lens and on the values of speed, and identity; shopper and solutions that help clients
& Dwight, BT, Huawei and any form of consumer win today and in the future. practical approach to their teamwork and provocation. retail marketing; health grow their businesses and
Aldi. Maxus is part of GroupM, messaging as the fuel Part of Kantar, WPPs data www.fireflymb.com work. Mindshare is part of GroupM, care communications; strengthen their customer
the worlds largest media that drives high-performing investment management which oversees the media direct, digital, promotion relationships. The process
investment management systems. MediaCom is one division, Millward Brown Cheryl Stallworth Beyond their cutting-edge investment management and relationship marketing; is divided into six phases
group, responsible for of the worlds leading media operates in more than 55 Global CEO client work, they deliver sector for WPP, the worlds consulting, research and to facilitate direction and
nearly one-third of all media communications specialists, countries. Cheryl.Stallworth@ thought leadership to change leading communications analytics; branded content discovery, identification of
investment worldwide and with billings exceeding US$33 fireflymb.com the conversation in business: services group. and entertainment; and opportunities and generation
serving as parent company billion. It employs 6,500 www.millwardbrown.com Their Marketing2020 study specialist communications. of ideas, engagement and
for all of WPPs media people in 125 offices across is the most global and www.mindshareworld.com strategy development
agencies. Founded in 2008, 100 markets. Its client roster Doreen Wang comprehensive CMO research www.ogilvy.com and implementation, and
Maxus employs around 3,000 includes P&G, VW Group, Dell Global Head of BrandZ program in the market and Greg Brooks measurement.
people across 55 countries in and SONY. Doreen.Wang@ was featured as the cover Global Marketing Director Lauren Crampsie
70 offices and has been the millwardbrown.com story of Harvard Business Greg.Brooks@ Worldwide Chief www.ogilvyone.com
worlds fastest growing media www.mediacom.com Reviews 2014 summer issue. mindshareworld.com Marketing Officer
network for six consecutive Lauren.Crampsie@ogilvy.com Mish Fletcher
years, according to RECMA. Toby Jenner mbvermeer.com Senior Partner & Worldwide
Worldwide Chief Managing Director, Marketing
www.maxusglobal.com Operations Officer Marc de Swaan Arons Mish.Fletcher@ogilvy.com
Toby.Jenner@mediacom.com CMO and Executive
7
Lindsay Pattison Board Member
26
Worldwide CEO Marc.deswaanarons@
6
Lindsay.Pattison@ mbvermeer.com
26
maxusglobal.com

7 Resources

PENN SCHOEN BERLAND PRISM RED FUSE ROCKFISH THE FUTURES COMPANY TNS TNS INFRATEST VML
COMMUNICATIONS
Penn Schoen Berland (PSB), The brand activators at Rockfish is a digital As the leading global TNS advises clients on TNS Infratest is a full service VML is a contemporary
a member of Young & PRISM deliver with speed Red Fuse Communications is innovations partner that strategic insights and specific growth strategies market research company in marketing agency that moves
Rubicam Group and the WPP and excellence for brands WPPs full-service integrated drives business for some of innovation consultancy with around new market entry, Germany. We offer our clients brands forward by inspiring
Group, is a global research- in sports marketing, global agency dedicated the worlds leading brands. unparalleled global expertise innovation, brand switching a unique product and service human connection. VMLs
based consultancy that sponsorship, content creation, to serving all of Colgate- We build groundbreaking in foresights, trends and and customer strategies, portfolio with standardized as clients include Bridgestone,
specializes in messaging and public relations and event Palmolives brands worldwide. digital solutions that drive futures, The Futures Company based on long-established well as customized solutions, Colgate-Palmolive, Dell, Ford
communications strategy for activation. PRISM works With offices in New York, business results through offers a complete range expertise and market-leading that answer all the important Motor Company, Gatorade,
blue-chip corporate, political with some of the worlds Hong Kong, Paris, Mumbai, expert integration of strategy, of subscription services solutions. With a presence marketing issues they face. International Olympic
and entertainment clients. biggest brands, including Kansas City, Sao Paulo, and creative and technology. and consulting solutions in over 80 countries, TNS Our expertise comes from Committee, the Kellogg
PSBs operations include Aston Martin, IHG, Ford, JP Prague, Red Fuse delivers Founded in late 2005, to help clients profit from has more conversations with a profound knowledge Company, Kimberly-Clark,
over 200 consultants and a Morgan Private Bank, Mazda, fully integrated campaigns Rockfish has offices in change by understanding the worlds consumers than of industry, markets and Microsoft, Motorola, PepsiCo,
sophisticated in-house market SUBWAY, Puma, Infiniti and on a daily basis to over 225 New York, Chicago, Dallas, and anticipating change anyone else and understands business practices Sprint, Virgin Active, Wendys
research infrastructure with Delta Lloyd, often as part countries. Austin, Cincinnati, Atlanta, and shaping future individual human behaviors based upon high quality and Xerox. VML was named
the capability to conduct of collaborative WPP teams Minneapolis, Northwest strategies accordingly. and attitudes across every research data / analysis on Ad Ages 2016 Agency
work in over 90 countries. structured for horizontality. redfuse.com Arkansas, Portland and San The Futures Company cultural, economic and and professional consulting A-List.
The company operates 11 Francisco. Rockfish is part was formed through the political region of the world. services.
global offices in Washington With offices on five Stephen Forcione of WPP, the worlds largest integration of The Henley Founded in 1992 and
D.C., New York, Seattle, Los continents, PRISM is CEO and most highly regarded Centre, HeadlightVision, TNS is part of Kantar, the data www.tns-infratest.com headquartered in Kansas
Angeles, Denver, London, committed to building Stephen.Forcione@redfuse.com communication services Yankelovich and TRU. The investment management City, Missouri, VML
Hamburg, Madrid, Dubai, effective and cooperative group with over 188,000 Futures Company is a Kantar division of WPP and one of Stefan Stumpp joined the worlds largest
Delhi and Singapore, which relationships by delivering employees globally. company within WPP, with the worlds largest insight, MD - CEO communications services
are supported by in-house industry-leading offices located in Europe, information and consultancy Stefan.Stumpp@tns-infratest.com group, WPP, in 2001. VML has
field capabilities and fully sponsorship insight, valued rockfishdigital.com North America, Latin America groups. more than 2,400 employees
equipped to provide the communications strategies, and Asia-Pacific. with principal offices in
complete creative solutions consumer-engaging content Kenny Tomlin www.tnsglobal.com 28 locations across six
PSB clients need. from our Global Content Founder & CEO www.thefuturescompany. continents.
Network, as well as innovative Kenny.Tomlin@rockfishdigital.com com Rosie Hawkins
www.psbresearch.com digital, social media and Global Director of www.vml.com
experiential campaigns. Lloyd Burdett Client Solutions
Curtis Freet Head of Global Clients and Rosie.Hawkins@tnsglobal.com Jon Cook
CEO www.prismteam.com Strategy Global CEO
CFreet@ps-b.com Lloyd.Burdett@ Jon.Cook@vml.com
Steve Madincea thefuturescompany.com
CEO
SMadincea@prismteam.com
9
26
8
26

7 Resources

WUNDERMAN Y&R YOUNG & RUBICAM GROUP

WPP is the worlds largest communications services group
Wunderman is Creatively Y&R is one of the Young & Rubicam Group
Driven. Data Inspired. A leading global marketing is a global collaborative with billings of US$73 billion and revenues of US$19 billion.
leading global digital agency, communications companies, network comprised of some Through its operating companies, the Group provides a
Wunderman combines comprising the iconic Y&R of the worlds most powerful
comprehensive range of advertising and marketing services
creativity and data into work Advertising agency; VML, one marketing communications
that inspires consumers to of the worlds most highly brands. Our companies are including advertising & media investment management; data
action and delivers results regarded digital agencies; superb storytellers, adept investment management; public relations & public affairs;
for brands. Wunderman has premier mobile marketing at creating narratives and
won multiple creative awards company iconmobile; shopper images and ideas that
branding & identity; healthcare communications; direct,
including a Cannes Lion Grand marketing and retail network build brands that not only digital, promotion & relationship marketing and specialist
Prix and in 2015, industry Labstore; and Bravo, our live in culture but create communications. The company employs nearly 190,000
analysts named Wunderman integrated solutions agency culture and resonate in
a leader in marketing for multicultural marketplaces. the minds of consumers. people (including associates and investments) in over
database operations as Y&R Advertising has 189 We use and own big data 3,000 offices across 112 countries*. For more information,
well as a strong performer offices in 93 countries around and analytics, including
visit www.wpp.com. WPP was named Holding Company
in customer engagement the world, with clients that BrandAsset Valuator, that
strategy. Headquartered in include Campbells Soup drive insights, innovation, of the Year at the 2015 Cannes Lions International Festival
New York, the agency brings Company, Colgate-Palmolive, targeting and messaging. of Creativity for the fifth year running. WPP was also
together 7,000 creatives, Danone, Dell, Xerox, GAP, We create content that
named, for the fourth consecutive year, the Worlds Most
data scientists, strategists and Land Rover, Lloyds and keeps pace with real-time,
technologists in 175 offices in Telefnica, among many 24/7 media consumption. Effective Holding Company in the 2015 Effie Effectiveness
60 markets. others. Our communications cross Index, which recognizes the effectiveness of marketing
all media, and are infused
www.wunderman.com www.yr.com with digital thinking and
communications. In 2016 WPP was recognised by Warc 100
technology that redefine the as the Worlds Top Holding Company (second year running).
Mark Read David Sable customer experience.
Global CEO Global CEO
Mark.Read@wunderman.com David.Sable@yr.com www.yrgrp.com For more information, visit www.wpp.com
Peter Law Gisiko

CEO
Peter.Law-Gisiko@yrgrp.com
1
27
0
27
*The number of people employed by WPP companies (including associates) in the given countries detailed in this report as at 31 December 2015.

7 Resources
BRAND EXPERTS WHO

CONTRIBUTED TO THE REPORT
These individuals from WPP companies provided additional
thought leadership, research, analysis and insight to the report
Irina Akovetskaya David Arrigoni Nick Ashley Carolina Barruffini Nick Baughan Biswapriya Bhattacharjee Jamie Gutfreund Emilia Harband Helen Huan Olivia Johnson Adele Jolliffe Dinesh Kapoor
Maxus TNS MindShare Landor Associates Maxus IMRB Wunderman Geometry Global Burson-Marsteller J. Walter Thompson Millward Brown Millward Brown
Jon Bird Vanessa Bohlscheid Daniel Brown David Butt Francisco Carvalho Callum Cheatle Ashish Karnad Alina Kessel Shazia Khan Arina Khodyreva Karen Klas Claudius Koerber
Labstore Hill+Knowlton Strategies MediaCom Acceleration Burson-Marsteller Ogilvy & Mather Millward Brown WPP Millward Brown PBN Hill+Knowlton Strategies IBOPE Maxus
Gavin Clark Richard Clogg James Conrad Lucy Cooper Paul Crouch Patty Currie Alexander Komissarov Natalia Koroleva Rajesh Kurup Maria Kuzkina Oleg Kuzmin Ritu Lakhanpal
FITCH Acceleration TNS Millward Brown Hill+Knowlton Strategies Millward Brown MediaCom PBN Hill+Knowlton Strategies Millward Brown PBN Hill+Knowlton Strategies Landor Associates MediaCom
Zoe Denny Aurelio Diluciano Andrew Escott Alison Eyles Owen Bruno Ferrante Dede Fitch William Landell Mills Agathe Laurent Maria Lyamsheva Pandora Lycouri Caue Madeira William Matlack
Millward Brown Millward Brown Cohn & Wolfe Hill+Knowlton Strategies i-Cherry Millward Brown TNS Added Value PBN Hill+Knowlton Strategies Vermeer Cohn & Wolfe TNS
3
27
Sam Flemming Martin Gibbins David Gilbert Marisha Gupta Ruchika Gupta Vikram Gupta Di Mayze Anna Mazurina Roberto de Napoli Priyadarshini Narendra Mark Nathanson Paul OShea
2
Kantar Media MindShare Maxus Millward Brown Millward Brown Millward Brown Acceleration MediaCom Vermeer IMRB International VML The Futures Company
27

7 Resources
BRAND EXPERTS WHO

CONTRIBUTED TO THE REPORT
These individuals from WPP companies provided additional
thought leadership, research, analysis and insight to the report
Jane Ostler Sampa Pal Claire Pan Oleg Paralyush Pramod Pawar Eric Peerless Meheer Thakare Thomas Tindemans Eugeny Trebunsky Kate Triggs Olga Tsoukanova Jeffrey Ulmes
Millward Brown Millward Brown Millward Brown MindShare Millward Brown Millward Brown Millward Brown Hill+Knowlton Strategies Maxus Burson-Marsteller Grey TNS
Susanne Peters Rodrigo Pinotti Sakina Pittalwala Tim Pritchard Silvia Quintanilha Sunil R. Shetty Simon Usifo Adriana Valladares James Vancho Rosa Vanzella Veronika Vdacna Ivan Vekhov
Maxus Ideal H+K Strategies Firefly Millward Brown TNS Millward Brown Contract Ogilvy & Mather Burson-Marsteller Millward Brown Mquina Cohn & Wolfe Mindshare MediaCom
Luciana Ralston Irene Revilla Dawn Ridge Kylie Rogers Giovanni Romero Jenna Rounds Joao Vicente Irina Volkhonskaya Stephen Wallace Nicola Warrington Myron Wasylyk Joseph Webb
Ogilvy & Mather Kinetic Worldwide VML Vermeer Mindshare Y&R OgilvyOne Worldwide Young & Rubicam Group GTB TNS PBN Hill+Knowlton Strategies TNS
Helen Rowe Carla Saemi Kunal Sharma Amanjit Singh Jenny Skelly Jim Spencer Richard White Gideon Wilkins Erica Williams Matt Woodhams Lucy Yu
TNS Hill+Knowlton Strategies TNS Firefly Millward Brown TNS Ogilvy & Mather Axicom Millward Brown Kantar Worldpanel Added Value Millward Brown
5
27
Mark Standley Michael Stich Elaine Su Masato Suematsu Nimai Swain Latika Tandon
4
TNS Rockfish Millward Brown ADK Millward Brown IMRB International

27

Resources>BRANDZ GLOBAL TOP 100 TEAM
7 Resources
The BrandZ
BRANDZ GLOBAL TOP 100 TEAM brand valuation
contact details
The brand valuations in the

These individuals created the report, providing valuations, BrandZ Top 100 Most Valuable
Global Brands are produced by
research, analysis and insight, editorial, photography, David Roth Ken Schept Millward Brown using market
production, marketing and communications David Roth is the CEO of the Store Ken Schept is a professional writer data from Kantar Retail, Kantar
WPP for Europe, the Middle East, and editor specializing in reports and Worldpanel and Bloomberg.
Africa and Asia, and leads the books about brands and marketing.
BrandZ worldwide project. Prior to He helped develop WPPs extensive The consumer viewpoint is derived from
joining WPP David was main Board library of global publications and has the BrandZ database. Established
Director of the international retailer, reported on the international retail in 1998 and constantly updated, this
B&Q. sector as an editor with a leading US database of brand analytics and equity is
business media publisher. the worlds largest, containing over three
million consumer interviews about more
than 100,000 different brands in over 50
markets.
For further information about BrandZ

contact any WPP Group company or:
Doreen Wang
Global Head of BrandZ
Millward Brown
+1 212 548 7231
Doreen.Wang@millwardbrown.com
Amandine Bavent Elspeth Cheung Lucy Edgar Raam Tarat Igor Tolkachev
Martin Guerrieria
Amandine Bavent is a BrandZ Elspeth Cheung is the Global Lucy Edgar is the Global Marketing Raam Tarat is the Global Igor Tolkachev is a part of The Store
Valuation Manager for Millward BrandZ Valuation Director Manager at Millward Brown where Communications Project Manager at WPP EMEA and Asia team and Global BrandZ Research Director
Brown. She manages the brand for Millward Brown. She is she is responsible for the PR, Millward Brown. He project managed coordinatesBrandZworldwide Millward Brown
valuation projects for BrandZ responsible for valuation, marketing and communications on the production of the BrandZ Top project and partnerships. +44 (0) 207 126 5073
Her role involves conducting analysis, client management for the BrandZ projects. 100 Most Valuable Global Brands Martin.Guerrieria@millwardbrown.com
financial analysis, researching the BrandZ rankings and other 2016 report, as well as marketing
brands and calculating valuations. ad-hoc brand valuation projects. communications for other BrandZ Elspeth Cheung
projects. Global BrandZ Valuation Director
Millward Brown
+44 (0) 207 126 5174
Elspeth.Cheung@millwardbrown.com
Bloomberg
The Bloomberg Professional service is
the source of real-time and historical
financial news and information for
central banks, investment institutions,
commercial banks, government offices
and agencies, law firms, corporations
and news organizations in over 150
countries. (For more information, please
Jay Makwana Cecilie stergren Paul Reiffer Peter Walshe Doreen Wang visit www.bloomberg.com)
Jay Makwana is the Marketing Cecilie stergren is a professional Paul is a multi-award winning British Peter Walshe is Global Strategy Doreen Wang is the Global Head
Assistant to The Store WPP, EMEA & photographer based in Denmark, photographer, who has travelled the Director of BrandZ and was of BrandZ, and a seasoned LinkedIn
Asia, assisting with the coordination, she has worked closely with WPP world capturing people, landscapes involved in the creation of this executive with 16 years experience LinkedIn connects the worlds
organisation and planning aspects of agencies since 2009. Cecilie and commercial images. Now in brand equity and insight tool 18 in providing outstanding market professionals to make them more
the BrandZ reports and events. specializes in documentary, consumer Shanghai, he is using Asia as a base to years ago. He has contributed to all research and strategic consulting productive and successful and transforms
insight and portraits. She has capture even more stunning landscape the valuation studies and developed for senior executives in Fortune 500 the ways companies hire, market, and
travelled extensively in China, Brazil photographs of the eastern hemisphere BrandZ metrics, including companies in both the US and China. sell. Our vision is to create economic
7
27
and other locations to photograph before returning to London and the US. CharacterZ, TrustR, and RepZ. opportunity for every member of the
images for the BrandZ reports. global workforce through the ongoing
6
www.paulreiffer.com
27
With thanks and appreciation to: development of the worlds first

www.ostergren.dk Economic Graph. LinkedIn has more than
Aman Aggarwal, Richard Ballard, Jon Bird, Tuhin Dasgupta, Susan Hickey, Danielle
Hobday, Miquet Humphryes, Cindy Kroeger, Anthony Marris, Ben Marshall, Gaurav 400 million members and has offices
Mittal, Amit Singh and the team from LinkedIn. around the world. (www.linkedin.com)

SYDNEY - AUSTRALIA
Value of all
Australian brands in
Global Top 100
$41.9 Billion
Writing Ken Schept
Photography Cecilie stergren
and Paul Reiffer
www.brandz.com

BZ Global 2016 Report PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

BZ Global 2016 Report PDF

Uploaded by

Copyright:

Available Formats

Brand value increases

to $3.4 trillion, despite

We wrote the book The report profiles Chinese brands,

Our BrandZ country reports contain unparalleled market

Youll find, in one place, the wisdom of WPP brand building

If youre planning to expand internationally, BrandZ

BrandZ Top 50 Most BrandZ Top 50 BrandZ Top 50 Spotlight on Myanmar

Introduction The Global

242 Thought Leadership:

BrandZ Top 100 Most Valuable Global Brands 2016

Brand value rises steadily,

133% over past 11 years

BrandZ Top 100 Most Valuable Global Brands 2016

Brand value rises

BrandZ Top 100 Most Valuable Global Brands 2016

OVERVIEW Valuable brands

1 They disrupted before being disrupted.

2 They excelled in digital and social media.

3 They expressed a clear and consistent brand

BrandZ Top 100 Most Valuable Global Brands 2016

and old assumptions

BrandZ Top 100 Most Valuable Global Brands 2016

consumer; consequently, strengthening consumer-

BrandZ Top 100 Most Valuable Global Brands 2016

10 ACTION POINTS 5 Refine the brand

8 Simplify the value exchange

Every brand needs a purpose. Consumers

7 Use data respectfully competitive set

4 Grow the triple bottom line

Pay attention to the financial bottom line,

BrandZ Top 100 Most Valuable Global Brands 2016

BrandZ Top 100 Most Valuable Global Brands 2016

OF HEART Despite undeniably more purchasing

Engage but do not hard sell,

stress positive purpose than previous generations: Gen Z has

BrandZ Top 100 Most Valuable Global Brands 2016

Brands engaging consumers in an open,

4 Add to the greater good

BrandZ Top 100 Most Valuable Global Brands 2016

Top 100 Most Top 100 Most

1 Technology 229,198 4 32% 1 26 Retail 36,440 2 32% 5

2 Technology 228,460 4 -8% -1 27 Regional Banks 33,637 2 -13% -5

3 Technology 121,824 3 5% 0 28 Cars 29,501 3 2% 2

4 Telecom Providers 107,387 3 20% 2 29 Technology 29,030 4 -27% -8

5 Technology 102,551 4 44% 7 30 Luxury 28,508 4 4% 2

6 Payments 100,800 4 10% -1 31 Beer 27,925 4 5% 2

7 Retail 98,988 3 59% 7 32 Retail 27,275 2 -23% -6

8 Telecom Providers 93,220 3 8% -1 33 Cars 26,837 4 2% 1

9 Fast Food 88,654 4 9% 0 34 Payments 26,641 4 -30% -9

10 Technology 86,206 4 -8% -6 35 Apparel 25,221 3 14% 7

11 Technology 84,945 4 11% 0 36 Personal Care 23,524 4 1% 2

12 Tobacco 84,143 3 5% -2 37 Baby Care 22,911 5 -4% 0

13 Soft Drinks 80,314 5 -4% -5 38 Technology 22,813 3 13% 13

14 Regional Banks 58,540 3 -1% 2 39 Cars 22,708 4 4% 4

15 Telecom Providers 55,923 4 -7% 0 40 Telecom Providers 21,945 3 3% 6

16 Conglomerate 54,093 2 -9% 1 41 Fast Food 21,567 4 -4% -1

17 Logistics 49,816 4 -4% 1 42 Technology 21,387 2 -7% -3

18 Retail 49,298 2 -26% -5 43 Global Banks 20,276 2 -16% -8

19 Entertainment 49,229 4 15% 0 44 Luxury 19,821 5 5% 11

20 Payments 46,141 4 15% 0 45 Regional Banks 19,635 4 -18% -9

21 Fast Food 43,565 4 49% 8 46 Regional Banks 19,617 2 -11% -5

22 Technology 39,023 3 2% 2 47 Telecom Providers 19,552 2 N/A N/A

23 Telecom Providers 37,733 3 12% 4 48 Technology 19,490 4 -10% -3