BrandZ Top 100 Most Valuable Global Brands - Landor Associates

Brand valueincreases acrosscategoriesYear of recovery,refinement, relevanceMethodology and valuation by

Brands take on greater importance,meaning and responsibility in today’srapidly changing, interconnected world.

WelcomeSo much has happened in the aftermath of the 2008 globalrecession. We’ve witnessed the rise and complete adoption ofdigital brands offering unparalleled reach and efficiencies;we’ve watched green and sustainable brands become consumerstaples; and we have celebrated the return of the auto industrywhile US bank brands have nearly all found their footing onceagain. It may be a slow, rocky path we’re following—and notevery region is on equal standing—but we note a sense ofcautious optimism spreading to most corners of the globe.And the world’s best brands are emerging stronger than ever.We at Landor are proud to have helped many of theseleading organizations stay the course and rebound swiftlythrough the strength of their brands. It is therefore withgreat pleasure that we share the results of 2013’s BrandZTop 100 Brands report from WPP sister firm MillwardBrown Optimor. Now in its eighth year, their Top 100Brands report is one of the world’s most comprehensive,quantitatively researched brand valuation studies, and atrue bellwether for what’s driving successful brands today.Along with our partners at Millward Brown, we’ve longunderstood that strong brands weather tough economicclimates better and rebound faster than their weakerchallengers. This trend isn’t specific to any one market orindustry, either—we view it as a universal truth. For support,we invite you to peruse the study that follows. From thetraditional mainstays to the unexpected upstarts, read theirstories and learn how all great brands share common strengthsand values that better connect them with their constituentsand power their success. What path is your brand on?For more information, just give us a call.Hayes RothChief Marketing OfficerLandor3

Contents78..................... Thought LeadershipE-commerce Becomes Everywhere CommerceSue Pratt, Head of MarketingSalmonPart 1Highlights8....................... Introduction10..................... Key Results12..................... Cross-Category Trends16..................... Take AwaysFinancial Institutions80..................... Banks86..................... Insurance20..................... Thought LeadershipRadically Reimagining BrandsStewart Pearson, Vice Chairman, Chief Client OfficerWunderman92..................... Thought LeadershipLeveraging Financial Services BrandsTerry Tyrrell, Worldwide ChairmanBrand UnionPart 2The Top 10024..................... The BrandZ Top 100 Most Valuable Global Brands 201328..................... Overview30..................... Top Risers32..................... Newcomers33..................... Category Changes34..................... Brand Contribution36..................... RegionsCommodities94..................... Oil & Gas98..................... Thought LeadershipTotal Disruption at RetailAnne Zybowski, Vice President – Retail InsightsKantar Retail40..................... Thought LeadershipThe Era of Adaptive MarketingNorm Johnston, Chief Digital OfficerMindshareTechnology100................... Technology106................... Telecom ProvidersPart 3The CategoriesConsumer & Retail44.....................Apparel48.....................Cars52.....................Luxury56.....................Personal Care60.....................Retail64..................... Thought LeadershipShaping Seamless Retail with unique Experience SignaturesAaron Shields, Strategy DirectorTim Greenhalgh, Chief Creative OfficerFITCHFood & Drink66..................... Beer70..................... Fast Food74..................... Soft DrinksPart 4The Fast GrowingMarketsPart 5Resources112................... Brazil116................... China122................... India126................... Russia130................... Thought LeadershipSpeed Kills: How Brands Can Move FastShane Atchison, Global CEOPOSSIBLE134................... BrandZ Valuation Methodology136................... Other BrandZ Reports138................... WPP Companies & Associates140................... WPP Company Contributors146................... WPP Company Brand Experts148................... BrandZ Top 100 Team149................... BrandZ Valuation Contacts4 BrandZ Top 100 Most Valuable Global Brands 2013 5

Part 1 | HighlightsPart 1Highlights6 BrandZ Top 100 Most Valuable Global Brands 20137

Part 1 | HighlightsIntroductionIntroduction Up 7%BrandZ Portfolio outperforms S&P 500BrandZ Top 100 Rises7 percent With growthacross categoriesYear of recovery, refinement and relevance60%BrandZ Strong Brands PortfolioS&P 500Over the past seven years, the S&P 500increased 23 percent in market value. Incontrast, the BrandZ Portfolio of thestrongest brands appreciated 58 percent.The comparison shows that strongbrands outperformed the stock marketbenchmark by a wide margin of 28%.58%There was a new tone.It fit the new normal. Both brandsand consumers adjusted to constantuncertainty and sober expectationsabout economic growth. They fit intothe calculus of consumption the impacton the natural environment, personalhealth, and human wellbeing along thesupply chain.Shaped by these considerations, brandvalue appreciated.The value of the BrandZ Top 100 MostValuable Global Brands rose 7 percent to$2.6 trillion last year, compared with aflat performance a year ago. All but two ofthe 13 categories analyzed in this reportimproved in brand value. Technology andoil and gas declined modestly.These results indicate that strong brandscontinue to regain value lost during therecession and now, in some cases, surpasstheir pre-recession levels.The total brand value of the BrandZ Top100 Strong Brands Portfolio has improved77 percent since 2006. In addition, theBrandZ Top 100 Strong Brands Portfolio,comprised of diverse public companies,appreciated 58 percent during thateight-year period, compared with a marketvalue gain of only 23 percent by theS&P 500.Despite a sharp decline in the growth ofits brand value last year, Apple remainednumber one in the BrandZ Top 100ranking, on the strength of the meaningfuldifference of its brand. Google movedto the number two position, marginallysurpassing IBM, which continues to bethe world’s most valuable B2B brand.These brands demonstrate both thecapacity to grow brand strength quickly(Apple was founded in 1976, Googlein 1998) and sustain it over time (IBMcelebrated its centennial in 2011).Three key themes emerge from theBrandZ Top 100 Most Valuable GlobalBrands 2013:RecoveryThe economy continued to improve—not everywhere, but in the US. Allcategories experienced healthy sales.RefinementWith confidence still fragile, brandsresisted introducing break-throughinnovations and instead encouragedconsumer spending with incrementalproduct and service improvements.RelevanceReaching these more reflectiveconsumers required offering productsand services that not only projectedmass appeal, but also promisedpersonal relevance for the individual.40%20%0%-20%-40%-60%Apr 06 Apr 07 Apr 08 Apr 09 Apr 10 Apr 11 Apr 12 Apr 1323%Source: Bloomberg8 BrandZ Top 100 Most Valuable Global Brands 2013 9

Part 1 | HighlightsKey ResultsKeyResultsBrand and category performanceConsumercategoriesreboundConsumer categories experienced thestrongest brand value appreciation asconfidence and spending improvedoverall, despite economic difficultiesin Europe and the slowdown in theBRIC markets.Apparel grew 21 percentfollowing a rise of 13 percent ayear ago. Consumers felt ready tospend, particular on fast fashionand premium offerings, andbrands matched their desires.Retail rose 17 percent after a5 percent decline a year ago.Adjusting to the new normal ofsteady but cautious purchasing,consumers were ready to spendwhen they found value.Personal care improved11 percent following a 5percent decline last year.Cars rose 5 percent after a7 percent decline last year, apositive swing driven by resurgencein Detroit and the brand valuerise of several German brands.Luxury grew 6 percent, a strongincrease but softer than the 15percent rise a year ago becausesales slowed in the BRICs.Food & drinkexperiencemixed resultsChanging consumer habits, ongoinghealth concerns and economicpressure on core customers moderatedresults. Brands emphasized value,added healthier menu options, andremodeled locations.Beer improved 36 percent,the greatest percentage brandvalue rise of all categories. Beerbrands showed strength in mostmarkets, particularly the BRICs.Fast food increased 5 percent.Flat customer traffic in the US,along with economic pressure inEurope and slower growth in theBRICs, reduced the rate of increasefrom 15 percent a year ago.Soft drinks rose 5 percent,following a rise of only 1 percenta year ago. The change in valuereflects effective brand marketingand the ongoing popularity of energyand sports drinks. But becausethe category was redefined to bemore inclusive this year, resultsare not completely comparable.Technology brandvalue remains flatIn a year of product iteration, ratherthan innovation, the overall brand valueof the technology category remainedflat. The race to assemble and dominateecosystems defined the year for B2Cbrands. In B2B, some brands discoveredopportunities in big data and the cloud,while others struggled to reposition awayfrom device-driven strategies.Without the surge in Apple andFacebook brand value that helpeddrive category growth, Technologydeclined 1 percent in the BrandZ2013 ranking, after five years averaging8 percent annual category growth.The value of the Telecom categorygrew 1 percent, driven by the increasein mobile data transmission.Technology and Telecom brandstogether make up the largest segmentof the BrandZ Top 100, bothin number of brands representedand in their aggregate value.Over a quarter of the BrandZ Top100 brands are in Technology orTelecoms. The exact number is 28,up from 24 brands in 2006 but downfrom 31 brands in last year’s ranking.Technology average brand value,$44.2 billion, is double the average$21.1 billion value of other brandsin the BrandZ Top 100 (excludingtechnology and telecoms).The top three BrandZ most valuableglobal brands are in technology:Apple, Google and IBM. Andsix of the BrandZ Top 10 areTechnology brands or Telecoms.Tencent, the Chinese messagingplatform, grew 52 percent in brandvalue based on the success of itsWeChat utility for voice and textcommunication over the Internet.Driven by the success of its Galaxysmartphone, and positive impact on itsdigital devices and home appliances,Samsung improved 51 percent inbrand value, moving up 25 places inthe BrandZ ranking to number 30.Financialbrands improveMany of the bank brands grewsignificantly in brand value basedon new, successful initiatives to driverevenue in a more regulated, lowinterest rate environment. Some ofthe gain in brand value restored valuelost after the global financial crisis.Financial brands—Globaland Regional Banks, creditcards and Insurance—account for almost 20 percent ofthe brand value of the BrandZTop 100, the second highestgrouping after technology.Three of the BrandZ Top 10newcomer brands are financial,increasing the number of financialbrands in the BrandZ Top 100to 25 from 23 a year ago.The financial brands improvedoverall about 20 percent invalue. The banks, in particular,experienced a strong profit rebound.Global Banks grew 23 percentin brand value and regionalbanks grew 15 percent.With a 19 percent rise in brandvalue, following a 16 percentdecline last year, the Insurancecategory returned to its 2011 level.Commoditycategoriesdecline in valuePolitical unrest compounded thechallenges of the high-risk oil and gascategory, which explored for naturalresource reserves in some of the earth’smost difficult and fragile environments.The Oil & Gas category declined 4percent in brand value, the largestdecline across all categories.The steep brand value decline of Brazil’sPetrobras offset the generally positivebrand value improvement of both theprivate international oil companies(IOCs) and the state-controllednational oil companies (NOCs).A Colombian NOC, Ecopetrol, appearedin the BrandZ oil and gas categorybrand ranking for the first time.Russia’s Lukoil also debutedin the BrandZ oil and gascategory brand ranking.Top risers crosscategoriesAmong the BrandZ Top 100 MostValuable Global Brands, those thatrose fastest in value came from thesecategories—Apparel, Beer, Luxury,Retail and Technology. The categorydiversity indicates that a brand’s abilityto be different and relevant drives success,not its category.Prada appreciated 63 percent inbrand value, leading all brandsin rate of brand value growth.Zara surpassed Nike as thehighest valued apparel brand.HSBC led the ranking of global banks.Wells Fargo overtook ICBCas leading regional bank.Amazon surpassed Walmart to claimthe number one spot in retail.Toyota reclaimed the top positionin cars, with BMW down a notch.Fast growingmarketsinfluence brandvalue growth,even aseconomies slowThe number of brands from the fastgrowing markets in the BrandZ Top100 Most Valuable Global Brands2013 totals 17, compared with 20 ayear ago.The fast growing marketsrepresented in the BrandZ Top100 are: China (12 brands, downone from a year ago); Russia(2 brands, same as a year ago);India (2 brands, same as a yearago); Africa (1 brand, same as ago).No Brazilian or Mexican brandsappear. They were representedby one brand each a year ago.The 17 brands from fast growingmarkets in the BrandZ 2013 Top100 total $328.8 billion in brandvalue compared with $330.8 billionin total brand value for the 20 brandsin the BrandZ 2012 Top 100.Although not quite large enoughfor inclusion in the BrandZTop 100, other brands from fastgrowing markets appear in thecategory rankings: Brazil (4brands), Columbia (2), Chile(1), Mexico (1) and China (1).The growing presence ofAustralian brands in the BrandZTop 100 reflects economicstrength relative to slowdownsin other developed markets.Three of the newcomer brands tothe BrandZ Top 100 are Australian:two banks, ANZ and Westpac,and Woolworths supermarket.A fourth new Australian brand,Coles supermarket, appearsin the Retail category ranking,but not in the Top 100.Commonwealth Bank of Australiaranks in the BrandZ Top 20 Risers.10 BrandZ Top 100 Most Valuable Global Brands 2013 11

Part 1 | HighlightsCross-Category TrendsCross-CategoryTrends10 current influences on brands1Technology 2Life is3Location4Consumers expect5is a life force blendedis notwhat they’ve paidTechnology has become likebreathing. We can’t live withoutit. And we’re not aware of it untilthere’s a problem. In the technologycategory, devices, content anddistribution systems havecoalesced into parallel andcompeting ecosystems.Brand implicationsNew and shiny alone isn’t enough.No brand is unassailable. Thewinning brands attempt to beomnipresent and indispensible.ExampleNot long ago derided as “dumbpipes,” telecom providersare creating their ownbranded ecosystems.We increasingly move seamlesslybetween the personal, socialand businesses aspects of ourlives. Or we occupy these spacessimultaneously. Technology enablesthis fluidity.Brand implicationsBrands must keep up as we moveamong the personal, social andbusiness aspects of our lives. Brandsthat force us to pause or switchdevices risk losing us. The rigid B2Cand B2B designations don’t fullyapply anymore. To move smoothly,brands can’t be defined by a narrowfunction. Brands need to assume ahigher purpose; then we grant thempermission to be present all the time.ExampleBYOD shows how consumers aredriving this trend. The Bring YourOwn Device attitude is transformingthe workplace as people reject ITissuedgear in favor of the brandsand devices that they use in theirpersonal lives anywhere, anytime.importantLocation is everywhere. Locationis no longer a barrier because youcan reach the consumer anywhere,physically or virtually, at a time thatsuits the consumer.Brand implicationsBrands in all categories need to meetcustomers wherever the customersare. Each space, physical or virtual,can serve a different and appropriatefunction. A physical space can helpshowcase brand experience andcultivate customer intimacy, whilethe virtual world can perform thefunctional benefits of wide productrange and simplified purchasing.ExampleIn the insurance category, brandshave increased their presence insocial media. And one leading brandis experimenting with storefront cafélikelocations that appeal to younger,first-time customers looking forinformation without a hard sell.for—and maybe abit moreConsumers shop from a broad portfolio of brands.A woman may purchase an affordable dress butmatch it with a luxury accessory. Consumers calibratetheir expectations realistically. They’re fine when thecustomer service of a value brand lacks intimatepersonal attention, but impatient if it lacks efficiency.Consumers don’t expect everything from a brand—just what they’ve paid for—and maybe a bit more,like finding some luxury feel in a mass setting.Brand implicationsTechnology enables brand marketers to satisfy theseservice expectations. By collecting and analyzingcustomer data, brands can tailor products, servicesand messages to be relevant for individual customers.ExampleIn both super luxury and mass luxury, brands createpersonalized experiences to make customers feelespecially unique and valued. A customer buyingan accessory might receive a thank you on Twitter;a couture customer might be invited to an exclusivefashion show.Customers expectthe experiencethat a brand promisesto be executedflawlessly acrosscategoriesHaving encountered excellent brand experiencein some categories, consumers now apply thesestandards across all categories. They expect excellentbrand experience and have little patience when it’smissing. And they don’t necessarily expect to payextra for it.Brand implicationsNo category is immune from this expectation. Noaspect of the brand is excluded, including: how thebrand engages in physical and virtual stores; howthe brand communicates to customers; and howcustomers communicate about the brand in theirsocial networks. Brands need to benchmark againstthe best-in-class brand experience.ExampleThis phenomenon can be called the “Apple Effect,”since the brand established a standard for design,functionality and service delivered by both physicaland online stores. Meeting those high expectationschallenges any brand, including Apple, toconsistently improve.12 BrandZ Top 100 Most Valuable Global Brands 2013 13

Part 1 | HighlightsCross-Category Trends6Brands are7 8becomingmediaBrands increasingly are executingthe role formerly filled by traditionalmedia—organizing and reachingaudiences with relevant content.That’s because the brand’s customerdata often is more targeted anddetailed than the mass-marketaudience data of TV or print media.Brand implicationsThis phenomenon is most apparentin retail because retailers collectand organize an enormous volumeof customer data that can bemonetized by creating contentrelevant to an audience segment anda sponsoring supplier. The apparelcategory is experiencing asimilar phenomenon.ExampleWhile fashion brands still find itimportant to advertise in industrymagazines, their own catalogs oftentell the brand story more extensively.Some brands produce their ownfashion shows, broadcast in-storeor online.The role ofreputationis risingBrands are attempting to restoretrust after it eroded in certaincategories, particularly financialinstitutions. Corporate reputationbecomes more important as a way toconfer credibility.Brand implicationsAfter years of fracturing into subbrands, some corporations arepromoting their brands under thecorporate umbrella of authority.Corporate reputation is especiallyimportant to fortify brands on topicslike environmental responsibility andgood citizenship.ExampleAs the recent BrandZ reporttitled RepZ discovered: strongcorporate reputation correlates withhigh market share and improveskey brand metrics. And corporatereputation and brand reputationincreasingly are one in the same.Presence infast growingmarkets isimperative forglobal brandsEven in a year of slowed economicexpansion in the fast growingmarkets, it’s clear that brandpresence in these markets is nolonger optional for some categories.Brand implicationsThere’s a correlation betweenhigh brand value and presence infast growing markets. Presencedoesn’t assure high brand value, butabsence makes high value muchmore difficult to achieve in somecategories. Being well represented infast growing markets helps brandsnot only by driving sales, but alsoby influencing higher assessmentsof forward-looking earnings, whichcan lift share prices. The full impactrequires being present, relevant andwell differentiated.ExampleGlobal presence especially drovegrowth in categories such as luxury,fast food and soft drinks.9The middle10The individualgets squeezedis the expertBrands at the premium or price ends of the valuecontinuum present consumers with a clearer choicethan brands in the middle. When the value propositionisn’t clear, it’s more difficult to persuade today’scautious consumer to purchase.Brand implicationsIn today’s economy, brands that effectively make acase for premium or value are better positioned thanthose squeezed in the middle with a less well definedreason for being and a limited story to tell. There’s amarket in the middle, but there’s little room for error.Brands in the middle can’t be mediocre, at least notfor long.ExampleIn apparel, most of the fast fashion brands and themore premium brands improved in brand value, whilethose appealing to the broad middle were more likelyto struggle.Information is available everywhere, anytime toeveryone. The brand-customer conversation is amongequals. Brands and customers learn from each other.Brands gain direction and co-creation possibilities.Brand ImplicationsThe brand-customer relationship becomes more ofa partnership. Comments on social media are fast,direct, informative and inexpensive. Paying closeattention to these comments forges a closer brandcustomerrelationship and results in products andservices that more closely match customer desires.ExampleThe sales rebound of the Detroit automakers resultedfrom many factors, including a shift from exclusivereliance on traditional media to a sophisticatedpresence on social media.14 BrandZ Top 100 Most Valuable Global Brands 2013 15

Part 1 | HighlightsTake AwaysTakeAwaysInsights for growing brand valuePurposeConsumersStand for a higher purposeBrands too narrowly defined by what they do may thrivewhen their specialty is in high demand. But they’re vulnerableas fads or even trends change. In contrast, brands with ahigher purpose enjoy consumer permission to introduceother relevant products and services. This phenomenon wasespecially evident in technology, where some B2B brandsstruggled to expand from device-driven strategies, whilebrands with a broader purpose—make life easier, better,simpler—enjoyed greater flexibility. The best brands arebuilt on an ideal that encompasses not what people buy, butwhat they buy into.Make the purpose as salient andglobal as the brandGood citizenship is not optional. Brands that sustaingreatness over time connect to a fundamental reality: peoplewant a better life for themselves and for the people closestto them. In an interdependent, transparent world a betterlife must be available to everyone. For global brands, therising middle classes of Africa, India and Latin Americarepresent not only potentially lucrative markets, but also theopportunity of the century, to help millions of people risefrom poverty.Be meaningfully differentThe key word is meaningfully. Across categories, the mostvaluable brands generally are meaningfully different likethis: They’ve discovered important customer needs thatthey’ve filled in ways that make the brand stand out andkeep customers returning. In luxury, meaningful differencemay pertain to craftsmanship or exclusivity; in technology,it could be about product efficacy and style; in oil and gasthe highest quality engineering skill may be a meaningfuldifference. Meaningful means making a difference in the lifeof the customer, which helps the brand gain market share,maximize profitability and sustain success.Multitask like your customersTime-stressed consumers multitask. They want the productsthey buy to multitask. This trend is most apparent in softdrinks and personal care. Having a refreshing beverageis fine. But it seems better—and serves a purpose beyondhydration and thirst quenching—if the beverage also boostsenergy and adds vitamins or replenishes carbohydrates.It’s the magic of the “and.” In personal care, consumersare turning to cosmeceuticals, products that provide thebeauty enhancement of a cosmetic with pharmacologicalproperties that improve skin, for example. Not every brandneeds to multitask. But all brands need to be aware how themarketplace has conditioned customers to expect solutionsthat perfectly match the way they live their lives.Address changing consumer habitsand concernsResponding to consumer health concerns, carbonated softdrink brands are introducing juices and other beverageoptions and the fast food brands are adding more healthyoptions to menus. There’s a gap between what consumerssay they want (healthy drinks and food) and what theyoften choose (taste and calories). But habits are changingover time, especially among the young. And despite whatpeople do today, what they say may indicate what they’ll dotomorrow. Brands need to listen closely.Make good and better as if it’s the bestConsumers who buy good and better increasingly expectsomething similar to best. Now, the newest mid-market carmodels often are equipped with the kinds accessories thatnot long ago distinguished luxury brands. With electronicentertainment and guidance wizardry broadly available,luxury brands differentiate their cars with refinements, likethe quality of the interior finishes. This democratization ofquality is likely to raise value expectations across categories.16 BrandZ Top 100 Most Valuable Global Brands 2013 17

Part 1 | HighlightsTake AwaysCommunicationGrowthBe the message and the mediumMarshall McLuhan had it right when he said, “The mediumis the message.” But now the aphorism is flipped. Themessage is the medium because of several contemporaneousdevelopments, including: the advent of social media, therapid and wide dissemination of information, democraticaccess to audiences, and the emergence of big data.Brands have at least as much ability to organize audiencesand deliver relevant messages as traditional broadcast andprint media.Be genuine and honestThe advantage of traditional media is objectivity andauthority. In contrast, brands have a particular point ofview and an agenda. The key is not to pretend otherwise,but to be genuine and honest. Social media opinions can beharsh. The corrective is not to sanitize them, but to respondas appropriate and use the opinions to improve product andcommunications.Integrate the brand experience inall channelsThe industry parlance has moved from multi-channel toomni-channel to where no single word captures what itmeans for a brand to be present everywhere. Meanwhile,brands across categories are working to get it right. Theluxury brand Burberry creates live fashion shows that arebroadcast in its stores and on its website. Walgreens, the USdrug store chain, aligns is website and mobile presence with8,000 store locations that customers can visit for shopping orpick-up. The challenge is execution, harmoniously aligningall of a brand’s physical and digital representations. Thestrategic use of technology, mobile location based servicesand big data can provide a competitive advantage. Gettingall that right reinforces brand experience.Inspire employeesThe customer comes first. The customer is always right.This is the conventional wisdom. It contains some truth andmisses some truth. As banks attempt to restore customertrust lost during the financial crisis, they’re working toimprove internal morale, especially among employeeswho face customers everyday and ultimately represent thebrand most directly. It’s an equation championed by the USretailer Whole Foods. The brand asserts: Happy, enthusiasticemployees satisfy customers; who produce the sales andprofits that the drive stock price, which rewards shareholders.It sounds like the new conventional wisdom.Treat customers as individuals,not demographicsIntelligent use of big data enables brands to treat customersas individuals rather than demographics. Sales people withtablets that instantly access a customer’s buying history andpreferences can respond more personally. Communicationcan be more individualized. A customer spending an averageamount of money over time might receive a personalizedthank you, while a higher-spending customer might receivean invitation to a special event. The data-driven ability tounderstand and respond to customers individually crossesmost categories. Until now, for example, insurers focusedmore on acquiring new customers than on introducing moreproducts to existing customers. With the ability to quicklyanalyze data, insurers can anticipate when a homeownerinsurance customer may be ready for a life policy. Brandshave an opportunity to develop mutually rewarding,individual long-term customer relationships. Customers, notdemographics, spend money.Be ready for the next new and shiny thingBecause people felt uncertain last year, new and shinydidn’t quite tempt them. Even in technology, a categoryknown for innovation, brands shifted to iteration. That’sbecause brands generally didn’t want to take big risks whenconsumer confidence was still fragile and a wallet openedonly slightly could snap shut quickly. Incremental changewas enough to keep consumers happy and keep pace withthe competition. The period of incremental change won’t lastforever, however. The next new and shiny thing needs to beready before consumers realize they want it.Keep up with the fast growing marketsThe BRICs took a breather. The slowdown revealed keydistinctions in their levels of development. Brazil experiencedmixed conditions: Monetary policy stimulated growth ofthe consumer sector but hurt banking, commodities andexports. With Brazil hosting two global events—the WorldCup and the Olympics—in the next three years, growthwill intensify. In China, the government’s drive to develop aconsumer society will continue to increase purchasing powerwell beyond the largest cities. At the end of 2012, Indiaexpanded direct foreign investment, allowing multiple brandmerchants, like Walmart, to operate as retailers. The openingof India’s economy, slow and deliberate as the countrymanages internal competing interests, is inexorable. Therate of GDP growth in Russia actually outpaced the otherBRICs. With the entrance of Russia into the WTO last year,and the Olympics in Sochi in 2014, Russia is ready for moreWestern brands and the development of Russian brands. TheBRICs breather won’t last forever. And then there’s Africa…Invest in brand when others hesitateIt’s always difficult to invest when the economy is troubled,sales are slow, budgets are being cut and caution, even fear,becomes contagious. But after the gloom, when the sunreturns, the only question is whether a pot of gold waits atthe end of the rainbow. That depends on investment. Whenthe recession hit, the sales of US home improvement retailerHome Depot already were pressured because of internalproblems, including service levels, which tarnished the brand.Home Depot invested to fix the problems and restore itsstrong brand. In the BrandZ 2013 Most Valuable GlobalBrands report, Home Depot was a top riser for the secondconsecutive year. Its brand value rose 43 percent, following a31 percent increase a year ago. Strong brands need tending,but they respond—often quickly.18 BrandZ Top 100 Most Valuable Global Brands 2013 19

Thought LeadershipRadically Reimagining BrandsRADICALLYREIMAGININGBRANDSWeTo satisfy multi-faceted,always-on consumersStewart PearsonVice Chairman, Chief Client Officerstewart.pearson@wunderman.comare in the throes of a 50-year paradigm shift,the first significant change in the role and meaning ofbrands in culture and commerce since the period ofMad Men and the advent of television.The future of marketing is personal, mobile, social andlocal. Big data makes every experience personal. Over 6billion people have access to a mobile device connectingthem to information, opportunities and each other. Socialnetworks connect individuals anytime and anywhere,with people like them whose opinions matter to them.Technology empowers local marketers to be relevant totheir consumers yet still benefit from the efficiency of aglobal platform and content.Always-on connected consumers engage with brands inmultiple roles. They are participants as well as buyers,conversationalists and sometimes creators, critics orchampions, and all at different times. They expectconsistent experiences relevant to their role and informedby their history at every touch point. They will stayconnected to and share their data with brands they trustin return for valuable content and innovative services.The whole consumer is a radical and new multifacetedway of thinking about consumers as they connect asindividuals and network in communities. Brands mustbe reimagined as experiences and services designed forthe whole consumer by the whole enterprise.Understanding and staying connectedto the whole consumerBrands do not need to limit their thinking to onedimension. Brands can understand the potential ofconsumers as buyers, participants and influencers withina unified analytics and targeting framework. Brandscan understand the multiple roles that consumers playin their lives, and so the multiple ways brands will needto engage consumers to meet their needs.Brands can see consumers truly as individuals.The data flows from personal devices, increasinglywearable and invisible. It will enable us to understandinterests, passions and behaviors within and beyondthe category. The winning brands of the future willreimagine themselves as experiences and servicesoffering compelling reasons for consumers to stayconnected. The outcome will be disruptive new businessmodels and revenue streams.This marketing model is a renaissance of consumerrelationship marketing (CRM), first envisaged by LesterWunderman when he created our agency 50 yearsago. To engage the whole consumer means aligningthe whole enterprise. This means change managementand organizational alignment around consumers,experiences and services.In the old paradigm different functions were responsiblefor engaging different consumer behaviors. Buyerswere the responsibility of sales, with content focusedon product features and pricing. Participants werethe responsibility of marketing, with content focusedon brand and emotional value. Influencers were theresponsibility of PR or corporate, with content focusedon sponsorship, events and social responsibility.Data from digital and mobile analytics, and sociallistening, enables marketers to respond to the desiresof consumers with personalized content and socialexperiences. Marketing tools leverage insights andmodels to connect content with consumers. Yet whilea majority of enterprises understand the power ofpersonalized content, relatively few have orchestratedprograms in place. This is a critical gap for marketingto address.New paradigm changes the role of marketingIn the new paradigm, the renaissance of CRM demandschange in the traditional organization. Now we knowthat buyers, participants and influencers are the samepeople. They have different roles at different times, eachrequiring individual response and engagement. Theyhave different demands for content and services, andwant them personalized to their context.In the new paradigm the role of marketing becomes toorchestrate content, experiences and services from thewhole enterprise to engage the whole consumer. In theshift, marketing moves from a communication role (ofbrand, product and sales information) to the missioncritical commercial and strategic role of orchestratingengagement. To fulfill this new role, marketing must dothe following:Access all the enterprise’s contentacross all the enterprise’s silosWeave brand narratives and see themamplified by consumersConnect consumers in their multiple roles with thecontent and services relevant to their personal andcommunity desires, irrespective of time or placeSocial responsibility,sustainability exemplifymarketing as engagementPerhaps the most significant illustration of theparadigm shift in the role of marketing is theconsumer desire to play a role in social responsibilityand sustainability solutions. Far seeing enterprisesare responding to global trends by making significantinvestments in social responsibility and sustainability.How do they connect these initiatives to consumerswho care?Consumers care about commitment to corporatesocial responsibility. A Burson-Marsteller surveyreported that 75 percent of consumers agreed that itis important for a company to be socially responsible.In his book “Grow” former P&G CMO Jim Stengelleveraged Millward Brown’s BrandZ analysis todemonstrate that, “Maximum profit and high idealsaren’t incompatible, but in fact inseparable.”Using connected data marketers can identify thesegments that participate in and are motivatedby social issues. They can weave into marketingstorytelling the enterprise’s CSR content, personalizedfor these individuals and the communities in whichthey participate.By adopting a whole consumer framework marketerscan bring social responsibility and sustainability tolife, expand its reach and demonstrate its measurablebusiness impact on brands.The role of marketing is now to create, curate andactivate. Marketers should oversee the output of all otherfunctions in the company creating content so that theycan orchestrate engagement of the whole consumer.To manage a brand, a marketing team must now beproducer, listener, analyst and developer as well as(traditional) strategist, planner, creative and projectmanager. The role of the producer means that this is apublishing or news model, but one that operates in realtimeand is responsive and proactive. Marketers can nolonger distribute content and track the results. Marketerscan no longer manage a series of campaigns.To grow the brands of the future the marketer’s role isthe orchestration of content for the engagement of thewhole consumer and the accountability for brand valueand marketing performance.Wunderman specializes in social, mobile, data andanalytics, with 170 offices in 60 countries.www.wunderman.com20 BrandZ Top 100 Most Valuable Global Brands 2013 21

Part 2 | The Top 100Part 2TheTop 10022 BrandZ Top 100 Most Valuable Global Brands 201323

Part 2 | The Top 100The Top 100 ChartTop 100 Most Valuable Global Brands 2013CategoryBrandBrand value2013 $MBrandcontributionBrand value % change2013 vs 2012RankchangeCategoryBrandBrand value2013 $MBrandcontributionBrand value %change 2013 vs 2012Rankchange1 Technology 185,071 4 1% 026 Entertainment 23,913 3 40% 172 Technology 113,669 3 5% 127 Telecoms 23,893 2 -11% -73 Technology 112,536 3 -3% -128 Credit Card 23,514 4 16% 24 Fast Food 90,256 4 -5% 029 Luxury 22,719 4 -12% -85 Soft Drinks 78,415 5 6% 130 Technology 21,404 3 51% 256 Telecoms 75,507 3 10% 231 Technology 21,261 4 -36% -127 Technology 69,814 3 -9% -232 Baby Care 20,594 5 13% 38 Tobacco 69,383 3 -6% -133 Technology 20,443 5 -16% -89 Credit Card 56,060 4 46% 634 Beer 20,297 4 28% 1410 Telecoms 55,368 3 18% 035 Apparel 20,167 3 60% 3111 Conglomerate 55,357 2 21% 036 Technology 20,039 2 -11% -912 Telecoms 53,004 3 8% -337 Regional Banks 19,975 2 12% 113 Regional Banks 47,748 3 20% 138 Regional Banks 19,968 4 16% 214 Retail 45,727 3 34% 439 Oil & Gas 19,229 1 5% -515 Logistics 42,747 5 15% 140 Luxury 19,129 4 0% -816 Regional Banks 41,115 2 -1% -341 Retail 18,488 2 43% 2117 Telecoms 39,712 3 -8% -542 Personal Care 17,971 4 30% 1518 Retail 36,220 2 5% -143 Cars 17,952 4 11% 319 Technology 34,365 2 34% 344 Fast Food Starbucks17,892 4 5% -220 Credit Card 27,821 4 34% 945 Personal Care 17,823 4 -6% -1221 Technology 27,273 4 52% 1646 Regional Banks 17,781 4 22% 822 Regional Banks China Construction Bank26,859 2 10% 247 Retail 17,749 2 40% 1723 Cars 24,497 4 12% 548 Regional Banks 17,745 3 36% 1224 Cars 24,015 4 -2% -149 Oil & Gas 17,678 1 -1% -1025 Global Banks 23,970 3 24% 650 Personal Care 17,250 4 15% 1Valuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).The Brand Value of Coca-Cola includes Lights, Diets and ZeroThe Brand Value of Budweiser includes Bud Light24 BrandZ Top 100 Most Valuable Global Brands 2013 25

Part 2 | The Top 100The Top 100 ChartTop 100 Most Valuable Global Brands 2013CategoryBrandBrand value2013 $MBrandcontributionBrand value % change2013 vs 2012RankchangeCategoryBrandBrand value2013 $MBrandcontributionBrand value % change2013 vs 2012Rankchange51 Fast Food 16,691 4 12% 176 Retail 11,879 3 13% 052 Regional Banks 16,565 3 New New77 Technology 11,816 2 -11% -1853 Technology 16,503 3 2% -854 Technology 16,362 2 -29% -2878 Oil & Gas 11,520 1 11% -179 Telecoms MTN11,448 3 23% 955 Retail 16,303 4 -9% -1980 Retail 11,039 3 New New56 Apparel 15,817 4 -3% -1281 Global Banks 10,836 3 25% 1157 Insurance 15,279 3 5% -482 Telecoms 10,633 3 11% 358 Regional Banks 14,236 2 10% 383 Soft Drinks 10,558 3 6% -359 Regional Banks 14,196 1 12% 484 Insurance 10,558 3 4% -660 Telecoms 13,829 2 -10% -1085 Regional Banks 10,396 2 8% -261 Technology 13,757 2 -12% -1286 Cars 10,186 3 3% -562 Logistics 13,732 4 17% 887 Global Banks 10,160 2 1% -863 Regional Banks 13,716 3 19% 988 Regional Banks 10,070 3 New New64 Global Banks 13,386 2 37% 1889 Telecoms 10,054 3 -13% -1865 Oil & Gas PetroChina13,380 1 11% 390 Telecoms 10,028 3 -37% -4366 Telecoms 13,336 2 -22% -2591 Fast Food 9,953 3 12% 067 Oil & Gas 13,127 1 -6% -1192 Technology 9,826 3 New New68 Luxury 12,735 5 48% New93 Global Banks 9,668 2 New New69 Apparel 12,732 2 -6% -1194 Telecoms 9,531 2 New New70 Regional Banks 12,655 3 19% 495 Luxury 9,454 4 63% New71 Cars 12,401 3 -2% -696 Global Banks 9,232 3 8% -172 Technology 12,331 1 16% 197 Oil & Gas 9,036 1 5% -473 Alcohol 12,193 3 3% -498 Logistics 8,940 3 18% 274 Retail 12,040 3 31% 1599 Retail 8,885 2 -5% -1275 Soft Drinks 12,029 4 -5% -8100 Cars 8,790 3 3% -4Valuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).The 2012 Brand Value of Gucci has been restated to $8,602The Brand Value of Pepsi includes DietsThe Brand Value of Red Bull includes sugar-free and Cola26 BrandZ Top 100 Most Valuable Global Brands 2013 27

Part 2 | The Top 100OverviewOverviewBrandZ Top 100 up 7 percent,Rise touches most categoriesThe BrandZ Top 100 MostValuable Global Brands 2013 rose 7percent in brand value to $2.6 trillion.The increase followed flat growth of lessthan 1 percent a year ago.Modest recovery in developed economies,particularly in the US, drove the positivechange in BrandZ 2013. And, despiteslower economic expansion, the BRICscontinued to propel certain categories,especially luxury. Brand value increasedin every category but two—technologyand oil and gas, which declined slightly.The beer category experiencedthe sharpest brand valueincrease, 36 percent.With a 19 percent rise in brand value,the insurance category reboundedfrom a 16 percent decline a year ago.The apparel category grew 21percent in brand value on top of a13 percent increase a year ago.The minimal decline in technologyand oil and gas resulted less from theperformance of an entire category, andmore from the brand value fluctuations oftwo important brands, Apple and Brazil’sgovernment-controlled Petrobras.Economic and competitive pressures,rather than brand issues, drove thechanges. In fact, Apple increased slightlyin brand value to remain world’s mostvaluable brand, illustrating how brandpower sustains a company throughbusiness challenges.Top Risers and NewcomersThe three fastest growing brands—Prada, Brahma, and Zara—came fromdiverse consumer categories: luxury, beerand apparel. Prada increased 63 percent,driven by the ongoing appetite for luxury,particularly in fast growing markets.The 61 percent brand value rise ofBrahma, a Brazilian beer owned byAB InBev, the world’s largest brewer,demonstrated the power of a globalmarketer and the continued vitality inthe BRICs.The fast fashion apparel brand Zara grew60 percent in brand value, indicating thatvalue still drove shoppers, even thoughconsumer confidence remained fragile.Eight newcomers, from five categories—luxury, retail, banks (global andregional), technology, and telecomproviders entered the BrandZ Top 100:the Italian luxury brands Gucci andPrada; from Australia, the regional banksANZ and Westpac, plus the supermarketWoolworths; and JP Morgan, a globalbank. In addition, the technology brandYahoo! and BT, the telecoms provider,entered the Top 100.Brand ContributionThe leaders in Brand Contributionalso came from diverse categories.Brand Contribution is a key metric thatmeasures the impact of brand alone onbrand value, with financials and all otherfactors stripped away.Colombian beer Aguila and fast foodoperator Panera scored highest in BrandContribution. Both brands appearedfor the first time in the BrandZ globalreport, not in the Top 100, but in therankings of their respective categories.All the brands in BrandZ Top 100 MostValuable Global Brands 2013 achievedthe distinction of appearing in this reportdespite mixed economic conditions. Theyshare something else in common.Their high brand value, relative toother brands, resulted from their abilityto appeal to relevant customers with aparticular balance of being “meaningful”(meet expectations and generateaffection), “different” (unique in apositive way) and “salient” (the brandof choice).BrandZ Top 100Brand Value Growth2006The BrandZ Top 100 MostValuable Global Brands have grownsteadily in value since the launchof the annual report in 200610.6%200721.2%2008Source: BrandZ data0.8%20094.4%201017.1%20110.4%20127.0%2013Key characteristics of successful brandsTotal brand value of the BrandZTop 100 Most Valuable GlobalBrands has grown steadily since thereport was introduced in 2006.The Top Risers during these eightyears increased 425 percent inbrand value.Half of the eight Fastest Riserscome from the technology category:Apple increased in brand value 1,058percent; Amazon, 664 percent; SAP,259 percent; and IBM, 212 percent.Telecom Verizon rose 256 percent inbrand value.The other Top Risers, from diversecategories, include the luxury brandHermès up 296 percent, and apparelbrand Zara with a 295 percentincrease in brand value. The fastfood brand Subway achieved thegreatest brand value increase—anastounding 5,798 percent.What factors account for the overallbrand value rise in the BrandZ Top100 over the past eight years andfor the extraordinary performancesof these fastest risers? What is itthat distinguishes the most valuablebrands and enables steady growth?BrandZ analysis indicates thatthese eight characteristics drivebrand value and financial success:1. Great valueIt’s not about price, but what you getfor your money. Hermès and Subwayboth offer great value.2. Relevant for todayContinuing to renew the brand isessential to remain in contention.IBM reinvention, with its highermargin consultancy that drives a“Smarter Planet,” is totally in tunefor today.3. Harnessing technologyBeing available 24/7, beingsocial, being connected is notjust the domain of social media.No brand can afford to be outof touch nowadays. Amazon’sonline customer management andpurchase recommendation was agame changer.4. ReputationHow the brand genuinely behavestoday will be assessed immediately,globally, in a flash. Brand strength,what you stand for, is a valuablecomponent of a good reputation.SAP is rated in the BrandZresearch as being particularlyresponsible as a company. And thisunderpins a good reputation.5. Meaningfully differentConsumers will stay loyal if theyfeel they are getting the best. Toconsumers, brands that meet theirneeds are more appealing. Thesebrands are unique in a positive way.Consumers see them as ahead ofthe game in setting trends. Thesebrands generate the greatestcontribution to driving current andfuture sales. Apple is the archetypical“meaningfully different” brand.Analysts and stock market sentimentmight at times be more negative, butApple has a vital and living brand.6. PersonalityA distinctive brand character is morelikely to generate consumer passionand create brand advocates. Brandsshould not worry about polarizingopinion. It’s better to stand forsomething. Verizon is what BrandZclassifies as a “King”—a brand thatis Assertive and In Control but Wise,Desirable and Trustworthy.Each of the eight Top Risers hasa distinct personality.7. Get abroad and aboutExpansion of the offer using thebrand in its meaningfully differentpositioning is a route to successfulgrowth. All, except Verizon to date,have moved into new internationalterritories chasing growth andsuccess. Being present in growthmarkets in this global economy is amust if the brand has a relevant offer.8. A great branded experienceA brand is only as good as its lastexperience. Recommendation isa powerful force and can make orbreak a brand even more quicklyin this connected world. Zara hasbuilt its reputation and based itsconsiderable innovation on deliveringfashion fast, which provides a greatconsumer experience.Subway 5,798%Apple 1,058%Amazon 664%Hermès 296%Fastest Risers2006 to 2013Zara 295%Source: BrandZ dataSAP 259%Verizon 256%IBM 212%28 BrandZ Top 100 Most Valuable Global Brands 201329

Part 2 | The Top 100Top 20 RisersBrand Value appreciatesdespite economic stressBrand Value appreciated by anaverage of 44 percent among theBrandZ 2013 Top 20 Risers, comparedwith an average increase of 35 percentthe previous year. The sharper increasesuggests that strong brands gainedmomentum despite the fluctuatingglobal recovery.The Top 20 Risers individually farexceeded the substantial 7 percent brandvalue growth of the BrandZ Top 100Most Valuable Global Brands overall.The diversity of categories represented inthe Top 20 Risers—apparel, banks, beer,luxury, personal care, retail, technology,entertainment and credit cards—affirmsthat strong brands can emerge in allsectors of the economy.Multiple factors accounted forthis performance, including BrandContribution, the portion of brand valueattributed to the brand alone and notto financial or other factors. Among theother influences were:DifferentiationThe introduction of desirable products,supported with clever marketing, wasa key driver of brand value growth.RecoveryIn other instances, brand value growthreflected value regained since therecession because of investments in thebrand made during the global slowdown.GeographyGenerally, brands with a globalpresence were more likely to enjoybrand value appreciation, despiteslower growth rates in BRIC countries.DifferentiationIn technology, one of two categories thatdeclined slightly in brand value, Tencentand Samsung improved brand value 52percent and 51 percent, respectively.In both cases, the brands demonstratedan ability to anticipate and meetconsumer desires with clearlydifferentiated products.Tencent expanded the user base forsome of its products. Samsung gainedconsumer approval, and challengedApple’s dominance, with the features andmarketing of its Galaxy smartphones.The smartphone success strengthened theKorean brand across its wide range ofhome electronics and digital devices.RecoveryThe Home Depot is the only brand in theBrandZ 2013 Top 20 Risers that alsoappeared in last year’s Top Riser ranking.The US home improvement retailer’s 43percent brand value growth follows a 31percent increase a year ago.During the recession, the homeimprovement business suffered more thanmost categories. As business slowed, TheHome Depot acted. It improved customerservice and addressed other problems thathad depressed its sales, decreased its shareprice and tarnished its brand. Driven bythe US housing recovery, consumer andcontractors started spending again. AndThe Home Depot was ready for them.Of the banks that improved in theBrandZ 2013 ranking, Citi andBarclays experienced the greatest lift,37 percent and 34 percent, respectively.These gains reflect the recovery of brandvalue lost because of the financial crisis.Citi’s brand value declined 38 percent ayear ago and has not yet reached its prerecessionlevel.These brand value improvementsfollowed the initiatives by both Citi andBarclays to introduce products andservices aimed at growing businessin a more regulated, low interest rateenvironment. Barclays underwent achange of management, with the newCEO pledging to refocus the bank oncustomer service.GeographyEven as the rate of economic expansionslowed in the BRIC countries, luxury salesgrew. Wealthy Asian clients, for example,continued to support the brands bothwith purchases made at home and whiletraveling abroad, which helped bolsterresults in Europe. Prada led the list ofTop Risers with a 63 percent increase inbrand value. Both an increase in salesand an increase in its Brand Contributionscore contributed to Gucci’s 48 percentrise in brand value.Brand Contribution also remained animportant factor in beer. Brahma andSkol, two local Brazilian brands ownedby global brewer AB InBev, enjoyed widepopularity at home. Based on worldwidedistribution and popularity, StellaArtois, another AB InBev brand, alsogrew in brand value. Heineken benefitedfrom its global premium reputation.Overall, strength in Asia, LatinAmerica and Africa offset the weakenedEuropean economies.The impressive brand value growth of60 percent for Zara and 52 percent forCalvin Klein also reflected worldwidebrand acceptance and growth, especiallyin China and other fast growingmarkets. The increasing brand value ofCommonwealth Bank of Australia inpart can be attributed to nation’seconomic strength relative to otherdeveloped markets.Top RisersCategoryBrandBrand value2013 $MBrand value2012 $MBrand value %change2013 vs 20121 Luxury Prada 9,454 5,788 63%2 Beer Brahma 3,803 2,359 61%3 Apparel Zara 20,167 12,616 60%4 Apparel Calvin Klein 1,801 1,183 52%5 Technology Tencent 27,273 17,992 52%6 Technology Samsung 21,404 14,164 51%7 Luxury Gucci 12,735 8,602 48%8 Credit Card Visa 56,060 38,284 46%9 Retail The Home Depot 18,488 12,968 43%10 Entertainment Disney 23,913 17,056 40%11 Retail eBay 17,749 12,663 40%12 Beer Stella Artois 6,319 4,529 40%13 Beer Skol 6,520 4,698 39%14 Apparel Next 4,121 2,973 39%15 Global Banks Citi 13,386 9,760 37%16 Personal Care Nivea 6,322 4,642 36%17 Beer Heineken 8,238 6,058 36%18 Regional BanksCommonwealthBank of Australia17,745 13,083 36%19 Retail Amazon 45,727 34,077 34%20 Global Banks Barclays 7,989 5,961 34%Valuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.The diversityof categoriesrepresented inthe Top Risersaffirms thatstrong brandscan emerge inall sectors ofthe economy30 BrandZ Top 100 Most Valuable Global Brands 201331

Part 2 | The Top 100Newcomers and Category ChangesNewcomersCategory Changes2013 rank Category BrandBrand value2013 $MCategoryBrand value % change2013 vs 201252 Regional Banks ANZ 16,565Beer 36%68 Luxury Gucci 12,735Global Banks 23%80 Retail Woolworths 11,039Apparel 21%88 Regional Banks Westpac 10,07092 Technology Yahoo! 9,82693 Global Banks J.P. Morgan 9,66894 Telecoms BT 9,531Insurance 19%Retail 17%Regional Banks 15%Personal Care 11%brand alone rather than financial andother factors. With the exception ofluxury, beer is the category where theproduct most depends on the emotionalconnection with the consumer.95 Luxury Prada 9,454Valuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.three australianbrands make rankingThree Australian brands appearin the BrandZ 2013 newcomerranking: two banks, ANZ and Westpac;and a retailer, the supermarketbrand Woolworths.In addition, the Australian supermarketbrand Coles is listed in the retail category,although it does not appear in the Top100. Newcomers are brands that appearfor the first time, or after an absence, inthe BrandZ Top 100 ranking.Last year, the BrandZ 2012 newcomerranking also included an Australian bankbrand, Commonwealth Bank of Australia,a glimpse of a trend more fully realizedin BrandZ 2013. CommonwealthBank rose to number 48 in the BrandZ2013 ranking, up from number 60 in the2012 ranking.The growing brand value of brandsfrom Australia indicates the strength ofthe country’s economy relative to otherdeveloped markets, and how the country’sproximity to fast growing Asia markets isinfluencing growth.The impact of Chinese consumerpurchasing power was among the driversof brand value growth of the two luxurybrand newcomers, Gucci and Prada.Gucci last ranked in BrandZ Top 100 in2010. Both Gucci and Prada appeared inthe luxury category ranking a year ago,in BrandZ 2012.No brands from BRIC countries appearin the BrandZ 2013 newcomer ranking.Two years ago, in BrandZ 2011, sevenBRIC brands made the list: five fromChina and one each from Brazil andRussia. A year ago, the BrandZ 2012newcomer ranking included two Chinesebrands, one Indian brand and one brandfrom South Africa.The newcomer ranking generally includesat least one technology or telecom brand.This year it’s Yahoo!, which benefitedfrom the appointment of a new CEOfrom Google, and continued leadershipin Japan.BT raised its global profile with its smoothexecution of all the communications forthe Olympics and Paralympics in theLondon 2012 Summer Games. Investmentin fiber optic infrastructure strengthenedthe brand competitively. Strong revenueand profits pushed newcomer JPMorgan into the BrandZ Top 1002013 ranking.The growingbrand value ofbrands fromAustraliaindicates thestrength ofthe country’seconomy relativeto other developedmarketsLuxury 6%Cars 5%Soft Drinks 5%Fast Food 5%Telecoms 1%Technology -1%Oil & Gas -4%Valuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Value risesfor most categoriesStrong category-by-category brandvalue growth reflects the overall 7 percentincrease in the 2013 BrandZ Top 100Most Valuable Global Brands.A year ago, the overall brand value of theTop 100 remained flat in the BrandZ2012 report, with a rise of less than 1percent. Half the categories grew in brandvalue and half declined. One remainedeven. No category grew in brand valueby more than 15 percent.In the BrandZ 2013 Top 100 report,every category is up year-over-yearexcept for two—technology and oiland gas, which declined modestly. Sixcategories improved brand value by morethan 15 percent.Some categories improved dramatically.The brand value of the beer categorygrew 36 percent compared with a declineof 1 percent a year ago. Insurance is up19 percent compared with last year’s16 percent decline. The overall brandvalue growth resulted from manyfactors, including:Strengthening of the global economy,despite continued weakness in Europeand slower growth in the BRICsStrong recovery of somecategories (banks), incrementalprogress in others (cars)Brand strength that enabled brands toendure difficult times and flourish duringthe early stages of economic recoveryThe strong brand value rise in the beercategory illustrates the power of brandstrength. Not surprisingly, beers generallyscore high in Brand Contribution, theamount of brand value attributed toSeveral factors influenced brandvalue growth in the apparel category.First, consumers were more willing tospend money. Second, they spentcautiously, and brand influenced whatthey purchased.The BrandZ 2013 ranking dividesthe category formerly called financialinstitutions into global banks andregional banks. The total brand valueof the regional banks was more thandouble that of the global banks. Bothgroups experienced strong brand valueappreciation. The regional banksimproved 15 percent in brand value, theglobal banks, 23 percent.The rising brand values for banks, reflectboth improvements in the economy andbrand building efforts, such as productsand services aimed at finding newcustomers, better serving their needsand regaining their trust. Similar factorsinfluenced the brand value rise of theinsurance category.Both the soft drink and fast foodcategories registered a 5 percent rise inbrand value. These categories remainedunder pressure as consumer concernwith healthy eating increases. Theleading brands introduced new products,including lower calorie options.The car category’s 5 percent growth inbrand value follows a 7 percent declinea year ago. The positive swing in brandvalue reflects an industry that’s still stuckin neutral in Europe, moving forwardin China, and rapidly gaining speedagain in the US, based on the economicrecovery and brand reinvention by theDetroit Three.32 BrandZ Top 100 Most Valuable Global Brands 201333

Part 2 | The Top 100Brand ContributionStrong brand equity drivesSustained market advantageBrand ContributionCategoryBrandBrand value2013 $MBrand value2012 $MBrand value %change2013 vs 2012Brandcontribution1 Beer Aguila 3,903 New New 5Nine of the 15 brands listed in theBrandZ 2013 Brand Contributionranking also appeared last year.The repeat performances of these brands—Pampers, Baidu, Guinness, Natura, Skol,Coca-Cola, Falabella, Chanel and LouisVuitton—underlines the durability ofBrand Contribution strength.Brand Contribution is a salient componentof brand value. It is the portion of brandvalue driven by brand itself, ratherthan financial or other factors. BrandContribution measures a brand’s abilityto stand out and generate desire andloyalty in the mind of the consumer.BrandZ methodology bases BrandContribution on in-depth, quantitativeinterviews with over two millionconsumers in 30-plus countries. Thisrigorous, objective and consumer-facingresearch distinguishes BrandZ asthe most authoritative brand valuationmethodology. BrandZ scores BrandContribution on a scale of 1 to 5, with5 being the most positive. (For a fullexplanation, please see Methodology onpage 134).Most of the BrandZ 2013 BrandContribution Top 15 also rank in theTop 100. Some appear only in thecategory rankings. All outperformed theaverage Brand Contribution levels oftheir respective categories. The mix ofstrategies and tactics for achieving thiscompetitive advantage vary by brandand category.The Brand Contribution leader, Aguila,is a Colombian beer brand owned bySABMiller. It appears for the first timein BrandZ 2013, in the beer categoryranking. Guinness enjoys strong BrandContribution in part because of itsconsistent brand proposition. Diageo,the alcoholic beverage company, marketsits Guinness brand worldwide as apremium beer.Skol is a local Brazilian brand owned andmarketed by AB InBev, the world’s largestbrewer. The personal care brand Naturaalso is Brazilian. The presence of Skol andNatura indicate how local brands canbuild consumer preference even when themarket includes global competitors.The slowdown in China’s economicgrowth affected luxury brands, but Guccisales remained strong in most regions,even Europe. And an increase in BrandContribution contributed to Gucci’ssubstantial rise in brand value.Chanel and Louis Vuitton illustratehow luxury brands cultivate BrandContribution in various ways. Chanelemphasizes the brand’s exclusivity,while Louis Vuitton tends to be moreaccessible, widely celebrating its heritagein travel and evoking the elegance ofearlier periods.The presence of a retailer in the BrandContribution ranking reflects the highprofile of the department store Falabella,particularly in its home market, Chile,but also throughout South America.BrandContributionmeasures abrand’s abilityto stand out andgenerate desireand loyalty inthe mind of theconsumer2 Fast Food Panera 3,025 New New 53 Baby Care Pampers 20,594 18,299 13% 54 Technology Baidu 20,443 24,326 -16% 55 Luxury Gucci 12,735 8,602 48% 56 Logistics UPS 42,747 37,129 15% 57 Beer Guinness 4,473 4,044 11% 58 Personal Care Natura 3,707 3,307 12% 59 Beer Skol 6,520 4,698 39% 510 Fast Food Chipotle 4,972 New New 511 Personal Care Crest 3,680 3,379 9% 512 Soft Drinks Coca-Cola 78,415 74,286 6% 513 Retail Falabella 5,611 5,263 7% 514 Luxury Chanel 7,075 6,677 6% 415 Luxury Louis Vuitton 22,719 25,920 -12% 4Valuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).Beer and luxury are the most representedcategories in the Brand Contributionranking with three brands each. BrandContribution is especially importantin these categories, where the productdepends so much on effective marketingcommunication and the emotionalresponse of the consumer.The Coca-Cola brand continues to scorehigh in Brand Contribution even as thecompany’s carbonated beverages remainthe focus of consumer health concerns.The strength of Coca-Cola’s BrandContribution score illustrates the powerof an iconic brand to help support thebusiness it signifies.34 BrandZ Top 100 Most Valuable Global Brands 201335

Part 2 | The Top 100RegionsRegionsAsia up, Latam down,Other regions moderateAlmost half of the brands in theBrandZ Top 100 ranking are basedin North America. They account fortwo-thirds of the Top 100’s $2.6 trillionin brand value. Brand value growth inNorth America was flat, however.Growth rates fluctuated by region: Asia,Continental Europe, Latin America,North America and the UK. The BRICmarkets drove the greatest swings, withthe Top 10 brands from Asia up 13percent in brand value, while the LatamTop 10 declined 13 percent. The keyreasons for the contrast in growths ratesacross regions were:Strong individual brand performancesin China, despite a slower nationaleconomic growth rate, and brandgrowth in Korea, Japan and Australia;The slowdown of the Brazilian economyand the impact of governmentpolicy on strategic categories,including energy and banking; andModest growth in the value of leadingtechnology brands based in NorthAmerica, relative to prior yearsIn addition, the resilience of luxury andapparel brands based in ContinentalEurope balanced the overall impact ofthe region’s troubled economies. And acouple of global banks based in the UKimproved sharply in brand value.Asia appreciates in brand valueMany of China’s leading brandscontinued to appreciate in brand value,despite the slowdown in the rate ofeconomic growth. The country’s mostvaluable brand, China Mobile increased18 percent in brand value. China Mobilewon more 3G subscribers than its rivalswith its aggressive marketing. It is alsoexpanding its 4G network.Tencent, with a 52 percent rise in brandvalue, continued to draw more users toits instant messaging service and otherofferings. The success of its Galaxysmartphones drove the improved 51percent in Samsung’s brand value andburnished the Korean brand across itswide range of home appliances anddigital devices.Toyota reclaimed the number one positionin the BrandZ car category ranking,suggesting that the Japanese brand hasrecovered from the product recall crisisof 2009. The presence of two Australianbanks, Commonwealth and ANZ, reflectsthe country’s economic strength relativeto other developed markets.Latam declines in brand valueThe brand value decline by the Top 10Latam brands resulted from the impactof the troubled Brazilian economy andthe government’s response with policiesaimed at expanding the middle class andcontrolling inflation.These factors negatively impactedPetrobras, the government-controlled oiland gas company, and major Brazilianbank brands, including Bradesco andItaù. At the same time, governmentpolicies to stimulate spending helpedconsumer products. The Brazilian beerSkol increased 39 percent in brand value.Corona, the Mexican beer, improved 29percent in brand value. In addition, twoColombian brands entered the BrandZcategory rankings for the first time, thebeer brand Aquila and Ecopetrol, an oiland gas brand.Continental Europe and the UKexperience modest growthDespite economic problems across thecontinent, the Top 10 brands based inEurope increased 5 percent in brandvalue, in part on the strength of apparel.Fast fashion apparel brand Zaraimproved 60 percent.In a year when the technology categoryimproved only modestly in overallbrand value, Germany-based SAPappreciated 34 percent as the businessto-businesssector recovered and SAPintroduced solutions for using big datafor enterprise transformation.The 4 percent brand value rise in by Top10 UK-based brands resulted primarilyfrom the financial rebound of banking.Barclays, with a 34 percent rise in brandvalue, worked to restore trust. Improving24 percent in brand value, HSBCrefocused on developing its profitableinternational trade business.North America up slightlyThe Top 10 North American brands arealso the BrandZ Top 10 Most ValuableGlobal Brands, with one exception. GEappears at number 11 in the BrandZTop 100, following China Mobile, in tenthplace with a slightly higher brand value.The collective brand value of the NorthAmerican Top 10 totals over $900 billion.Although these large and stable brandsimproved a modest 2 percent in brandvalue, 2 percent of almost $1 trillion is alot of brand value.Some of the more recent arrivals likeApple (established in 1976) and Google(established in 1998) grew so quicklythat their brand value growth isbeginning to resemble the pace of a moremature brand.That said, GE (established in 1892)grew 21 percent in brand value becauseof the strength of the brand and recoveryin some of its key industries, such as jetengines, with strong demand from fastgrowing markets.Top 10 North AmericaBrandNorth American brandsdominate in number, valueAlmost half of the brands in the BrandZ Top 100 ranking are basedin North America. They account for two-thirds of the Top 100’s $2.6trillion in brand value. Just less than one-quarter of the BrandZ Top100 brands are based in Asia, and they total 17 percent of the Top 100total brand value.Top 100 Brandsby RegionAfricaAsiaEuropeNorth AmericaUKBrand value2013 $M47%7%1%Brandcontribution23%22%Brand value change2013 vs 2012Rankchange1 Apple 185,071 4 1% 02 Google 113,669 3 5% 13 IBM 112,536 3 -3% -14 McDonald’s 90,256 4 -5% 05 Coca-Cola 78,415 5 6% 16 AT&T 75,507 3 10% 27 Microsoft 69,814 3 -9% -28 Marlboro 69,383 3 -6% -19 Visa 56,060 4 46% New10 GE 55,357 2 21% 0Valuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).Up 2%Top 100 Brandsby Value ShareAfricaAsiaEuropeNorth AmericaUKSome of the morerecent arrivals likeApple and Googlegrew so quicklythat their brandvalue growthis beginning toresemble thepace of a moremature brand65%5%0%17%13%36 BrandZ Top 100 Most Valuable Global Brands 201337

Part 2 | The Top 100RegionsTop 10 Continental EuropeUp 5%Top 10 AsiaUp 13%BrandBrand value2013 $MBrandcontributionBrand value change2013 vs 2012Rankchange1 SAP 34,365 2 34% 22 BMW 24,015 4 -2% 23 Deutsche Telekom 23,893 2 -11% -24 Louis Vuitton 22,719 4 -12% -25 Zara 20,167 3 60% New6 Hermès 19,129 4 0% -17 L’Oréal 17,971 4 30% 28 Mercedes-Benz 17,952 4 11% -19 Orange 13,829 2 -10% -110 Movistar 13,336 2 -22% -4Despite economicproblems acrossthe continent, theTop 10 brandsbased in Europeincreased 5 percentin brand value,mostly on thestrength of luxuryand apparelBrandBrand value2013 $MBrandcontributionBrand value change2013 vs 2012Rankchange1 China Mobile 55,368 3 18% 02 ICBC 41,115 2 -1% 03 Tencent 27,273 4 52% 34China ConstructionBank26,859 2 10% -15 Toyota 24,497 4 12% 06 Samsung 21,404 3 51% 47 Baidu 20,443 5 -16% -38Agricultural Bankof China9 CommonwealthBank of Australia19,975 2 12% -117,745 3 36% NewMany of China’sbrands appreciatedin brand value,despite theslowdown ineconomic growthValuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).10 ANZ 16,565 3 New NewValuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).Top 10 UKUp 4%Top 10 Latin AmericaDown 13%BrandBrand value2013 $MBrandcontributionBrand value change2013 vs 2012Rankchange1 Vodafone 39,712 3 -8% 02 HSBC 23,970 3 24% 03 Shell 17,678 1 -1% 14 Tesco 16,303 4 -9% -15 BP 11,520 1 11% 06 Standard Chartered 10,160 2 1% 0The brand valuerise by the Top10 UK-basedbrands resultedprimarily from thefinancial reboundof bankingBrandBrand value2013 $MBrandcontributionBrand value change2013 vs 2012Rankchange1 Corona 6,620 4 29% 32 Telcel 6,577 3 -22% 03 Skol 6,520 5 39% 24 Petrobras 5,762 1 -45% -35 Falabella 5,611 5 7% -26 Bradesco 5,446 3 -19% NewThe Brazilianeconomy drovethe brand valuedecline of theTop 10 Latambrands7 BT 9,531 2 New New7 Ecopetrol 5,137 1 21% New8 Barclays 7,989 2 34% 08 Claro 4,454 2 3% New9 O2 5,965 2 -30% -29 Itau 4,006 2 -39% New10 Dove 4,927 3 5% -110 Aguila 3,903 5 New NewValuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).Valuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).38 BrandZ Top 100 Most Valuable Global Brands 201339

Thought LeadershipThe Era of Adaptive Marketingdata, such as search volumes, weather forecasts, andplayer status to adjust ticket prices in real-time.Marketers are using digital data to adapt their actualproducts. Nike lets runners customize their trainers viaNike ID, while Coca-Cola has introduced Freestylevending machines, which enable consumers to createtheir own beverage by mixing together existing Cokeproducts and then sharing their favorite creationsvia Facebook.The Era ofAdaptiveMarketingUsing real-time data tosharpen brand relevanceNorm JohnstonChief Digital Officernorm.johnston@mindshareworld.comAcross the globe, privacy has become a politicalhot button and governments are collaborating withindustry leaders to come up with sensible solutions thatbalance understandable consumer privacy concernswith legitimate marketers’ wishes to create a moreeffective and impactful online experience.Why is this important? At the very heart of this issueis arguably the future of marketing itself. Withouta proper—simple, intuitive, legal, ethical—onlineexchange of data, both consumers and brands will findfar reaching implications to the way they buy, sell,create, and configure products and services.The majority of consumers already realize that in returnfor some of their personal information, brands can do amuch better job adapting their products and associatedmarketing to meet their unique needs. According to thedata from the UK Direct Marketing Association: 75percent of consumers would share personal informationwith a brand with which they have a relationship; 62percent would share if they were simply in the market tobuy something.At Mindshare we have a name for this accelerateddata-driven and consumer-focused mentality: AdaptiveMarketing. It’s an approach that enables marketersto truly adapt every part of a brand’s marketing mixto meet its consumers’ interests and needs. And it alldepends on data.Optimizing advertisingUsing Adaptive Marketing, advertisers can now optimizeboth their media and creative to ensure consumers aregetting more relevant content both online and offline.TV advertising can be optimized based on assessing howviewers respond to a TV spot with their Twitter activity,Google searches, and Facebook posts.For example, to maximize the impact of Kleenex’s TVads, our Mindshare UK team adapts the TV media planto local markets by using Google search terms to identifylocations experiencing flu outbreaks. A recent GroupM/Thinkbox study in the UK found that 20 percent ofthe total online response to a TV ad happens within 10minutes after the ad is aired. That response rate is likelyto rise with the growing second screen trend, in whichpeople view TV while communicating with their socialnetwork on a tablet or other device.In addition, content itself can be shaped instantly.With technology like WPP’s Xaxis, Collective’s Tumri,and Google’s Teracent advertisers can assemble ads inreal-time based on a target audience’s behavior andpreferences. Mindshare is even using social data to adaptad units. Our Shanghai office recently launched SocialDNA 1.0, a digital display ad unit that dynamicallysyncs with users’ public profiles from QQ, Ren Renand Sina—Chinese messaging, social media andmicro blogging sites—to create a personalized brandedexperience for users.Dynamic, effective, pricingAdvertising is of course only one element of AdaptiveMarketing. Consumers are using their personal data toadapt brand relationships in a variety of ways.Pricing, for example, has become infinitely moredynamic. Companies like Staples adjust prices on theironline shop based on a person’s physical location andwhether one of its competitors has a physical storenearby. Sporting teams have also started using onlineIs all this adapting worth it? It depends. Some luxurybrands may actually benefit from their inflexibilityand elusiveness. For others, the benefits of AdaptiveMarketing can be enormous: many of our clients areseeing a dramatic increase in sales with lower cost-peraction(CPA), while others are building a powerful armyof Facebook fan advocates.Serious structural changesWhat all marketers should consider is the threat fromnew companies with adaptability built into their DNA.In an age of margin pressures and the constant threat ofcommoditization, some level of Adaptive Marketing maybe a necessity rather than a luxury or one-off experiment.Becoming an Adaptive Marketer can require seriousstructural changes including rethinking the entire mediaprocess to make it more fluid and “always-on” anddeveloping a library of creative assets—images, callsto-action,applications—that can instantly be deployed.Processes need to be revised to reflect the need for speedand rapid iteration. New technologies and new talentalso may be required.Finally, data must be ethically harnessed, liberated,and applied. Some of these changes are not easy, butthe rewards can be enormous, indeed essential. As JackWelch, the former CEO of GE once said: “There are onlytwo sources of competitive advantage: the ability to learnmore about our customers faster than the competitionand the ability to turn that learning into action fasterthan the competition.” Who knew Jack was our firstAdaptive Marketer?Mindshare is a global media and marketing servicesnetwork with 113 offices in 82 countries.www.mindshareworld.com40 BrandZ Top 100 Most Valuable Global Brands 2013 41

Part 3 | The CategoriesConsumer& Retail44.....Apparel48.....Cars52.....Luxury56.....Personal Care60.....RetailCommodities94.....Oil & GasFood& Drink66.....Beer70.....Fast Food74.....Soft DrinksPart 3TheCategoriesFinancialInstitutions80.....Banks86.....InsuranceTechnology100.....Technology106.....Telecom Providers42 BrandZ Top 100 Most Valuable Global Brands 201343

Part 3 | The CategoriesConsumer & Retail | ApparelUp 21%ApparelSUCCESSFUL APPARELBRANDS STRESS CLARITYAND PURPOSEConsumers expect seamless experienceConsumers spent more freely onapparel, both in store and online.With a 21 percent increase in brand value,on top of a 13 percent rise a year ago,the apparel category continued its steadyrecovery since a 9 percent decline in 2009,during the depths of the financial crisis.Shoppers sought value: either goodquality at a fair price or exceptionalquality that earned its premium. Brandsin the middle got squeezed. Consistentwith this trend, fast fashion continuedto thrive while craftsmanship gainedgrowing respect.An attitude that The Futures Company,a strategic insight consultancy, calls“Considered Consumption” continuedDefinitionThe apparel category is comprisedof mass-market men’s and women’sfashion and sportswear brands,but excludes brands viewed byconsumers as luxury.to constrain spending. But consumersabandoned that post-recession mentalitywhen items seemed unique and worththe price.Recognizing the importance of brandexperience in refocusing the purchasingdecision away from price alone, brandssought to tell compelling and unifiedstories in store and online. In addition,these related trends emerged:DifferentiationBrands with physical stores leveragedthat presence to offer locationconvenience and showcase the brand.PersonalizationBrands attempted to personalizeproducts and services for individualcustomers rather than market segments.Margin improvementThe more upscale brands,especially, attempted to both controlcosts and push up prices.Fast fashion set the paceIllustrating the continuing appeal of fastfashion, Zara increased 60 percent inbrand value to become the most valuablebrand in the BrandZ apparel ranking.Zara enjoyed strong like-for-like saleseven in economically troubled Europe,and it continued its China expansion.Profit increased 12 percent year-on-year.The Spanish-owned brand benefited fromits presence in more than 80 countries andits rapid inventory turnover, which addedurgency to the purchase decision becauseshoppers understood that merchandiseavailable today may be gone tomorrow.Zara opened a flagship store on NewYork’s Fifth Avenue last year, a blockaway from H&M, the Swedish-basedcompetitor, and adjacent to its rivalUniqlo, the Japanese apparel brand.Top 10 ApparelBrand value2013 $MBrandcontributionBrand value %change 2013 vs 20121 Zara 20,167 3 60%2 Nike 15,817 4 -3%3 H&M 12,732 2 -6%4 Ralph Lauren 5,618 4 10%5 Adidas 4,882 4 26%6 Uniqlo 4,627 2 25%7 Next 4,121 3 39%8 lululemon 3,764 4 New9 Hugo Boss 3,524 4 8%10 Calvin Klein 1,801 3 52%Valuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).44 BrandZ Top 100 Most Valuable Global Brands 201345

Part 3 | The CategoriesConsumer & Retail | ApparelTelling a brand storyTo differentiate, Uniqlo explained howunique and innovative technology enablesthe brand to produce cold weatherouterwear that’s warm, and warmweather underwear that’s cool—as well asaffordable and stylishly designed. Colorvariety was a major part of the brand’sexcitement and in-store experience.Uniqlo, which focuses on more utilitarian,basic clothing, rose 25 percent in brandvalue. Ads featuring celebrity modelsreinforced Uniqlo’s proposition thatcustomers can dress on trend withoutspending over budget.The brand expanded aggressively withinternational net sales growing 63percent, while sales in home marketJapan were up only 3 percent. The 65 newstores in China accounted for more than50 percent of the international new storeopenings. Uniqlo operates around 300stores in 13 countries.The more established H&M, founded in1947, operates about 2,800 stores in 48countries. The sluggish economy in someof those countries resulted in same-storesales declines. The company planned togrow its US presence with more storesand online shopping. In a much-viewedexample of combining high fashion withlow price, actress Helen Hunt wore anH&M dress to the 2013 Oscars.Newcomer faces competitionLululemon appears on the list of mostvaluable apparel brands for the firsttime. The Canada-based specialistsportswear brand operates over 200stores in North America and Australia.The brand transformed functional yogaand workout apparel into the uniformof health-conscious, fashionable women.Like-for-like sales increased 16 percentin 2012.Lululemon protects the equity of its brandby rarely discounting its merchandise,even excess inventory. Instead, lululemoneach year selects a city and stages anenormous sale in a major venue, such asa sports stadium. These much anticipatedspecial events draw considerable publicity,attendance and sales.Early in 2013, lululemon recalled a keyitem because of a manufacturing defect.The uncharacteristic stumble opened apotential opportunity for more establishedcompetitors, including Nike. Like the fastfashion brands, Nike focused on growingsales in China, where it has worked toredefine sports around self-expression andfun rather than the traditional Chineseapproach, which sees sports as communaland obligatory.Seeking a higher purposeAs part of its strategic effort to grow themarket, Nike has formed runners groupsand invested in the construction of sportsfacilities. For Nike, the connection betweenathletics and health is fundamental. Itintroduces innovative technology, suchas the Nike+ FuelBand, to advance thisagenda. The wristband converts dailyphysical activity into a score that enablesthe wearer to track personal progress andcompete with social friends.Like Nike, apparel brands of all sizesconnected with a higher purpose relevantto their brand essence. Patagonia, apurveyor of performance clothing,emphasized social responsibility. In aninitiative called One for One, Patagoniapartnered with TOMS Shoes, a companywhich matches every pair of shoespurchased, with a new pair of shoes for achild in need.Product provenance was importantbut sensitive. Ralph Lauren gainedtremendous brand exposure for designingthe uniforms worn by US athletes atthe summer Olympics in London. Thebrand’s decision to source the uniformsin China received criticism in the US,however. Concern about ethical sourcingand safe labor standards heightenedfollowing fatal disasters at Bangladeshapparel factories.Lululemon eachyear selects a cityand stages anenormous sale ina major venuethat drawsconsiderablepublicity,attendanceand salesInsightDesire opens walletsPurchasing behavior remains rationalweek in and week out, particularly inWestern Europe where the economyis difficult. But even there, peopleare prepared to forget their recessionmentality if something is beautifulenough. If something is an object ofdesire all rational behavior goes outthe window.Oliver JoycePartner, Client LeadershipMindshare WorldwideOliver.Joyce@mindshareworld.comInsightsBrandZ BigDataBrands get creative intough economyAlongside luxury, apparel is rated as themost “sexy” category in the BrandZresearch. Since the recession, manyof the top apparel brands are alsoconsidered strongly “creative.” Duringthe same period, brand promise hasrisen on average and price perceptionshave become more favorable, reflectingthe pressures of survival in a toughretailing climate.Source: BrandZ BigData, over 2 million consumerinterviews regarding over 10,000 brands in 30-plus countriesProvide a fullbrand experienceInsightBrands need to think not just aboutproduct, but also about the wayconsumers are interacting with thebrand. Brands need to think aboutthe girl who wears the dress. Whatis her life like? What are her friendslike? How does she behave in hersocial life?Alexis CuddyreArt DirectorDigit, LondonAlexis.Cuddyre@digitlondon.comAction Points1. Be personalApparel is not one size fits all.Customers want to feel that theservice is bespoke even if themerchandise is mass. As much aspossible, get to know customersindividually through the data theysupply or one-on-one in the stores.2. Be genuineBe whatever the brand stands for,but stand for something. The list ofthe most valuable brands includessome brands that emphasize socialresponsibility and others that extolstyle at a good price. What theyshare in common is this: they have adifferentiated brand proposition andthey deliver it.3. Be consistentCustomers will shop the brandwherever it appears. All products,presentation, service and attitudeneed to feel the same across allcustomer touch points.4. Engage with bloggersBecome familiar with the relevantbloggers. Who reads their posts? Alarge following is good but size isn’teverything. A well-informed bloggerreaching a key audience can alsobe helpful. Meet with the bloggersand show them new products as youmight in a press briefing.India 55%SpotlightBRIC consumers seekadvice for purchasingConsumers in Brazil, India andRussia are more likely to seek advicebefore purchasing things thanconsumers in the US or Europe.European consumers are least likely.The finding suggests that socialshopping is more of a phenomenonin the BRICs. While the contrastmay be cultural in part, it couldalso reflect the increased choiceof products and brands facingconsumers in fast growing markets.Purchasing advice seekersRussia 55%49%BrazilSource: Global TGI 2012(Europe: UK, France, Germanyand Spain)Any who agree:“I ask advice beforebuying new things”42%US23%Europe46 BrandZ Top 100 Most Valuable Global Brands 201347

Part 3 | The CategoriesConsumer & Retail | CarsUp 5%CarsCARS TURN THE CORNERON SALES WITH DEMANDRISING IN THE USOffer better quality and more featuresCar sales improved in someregions, but they remained belowpre-recession levels.That was especially true in the US, wherean improved economy drove a 13 percentyear-on-year sales increase to 14.5million cars. Sales spiked at the end ofthe year because of replacement demandfollowing Hurricane Sandy.Car sales rebounded in the UK as well,to over 2 million vehicles. The 5.3 percentsales increase compared with 2011was the highest year-on-year rise since2001, according to the Society of MotorManufacturers and Traders.Sales growth in China continued,although at a somewhat slower pace.Weak consumer confidence continuedto inhibit sales in Europe. Registrationsdeclined 8.2 percent year-on-year to 12.1million cars, according to the EuropeanAutomobile Manufacturers’ Association.the recall problems of 2010.The brand value of the Top 10 brandsimproved 5 percent in the 2013 BrandZranking compared with a 7 percentdecline last year. Brand value remainedat only 71 percent of its pre-recessionlevel. These other developments alsoshaped the category:Cost controlsCarmakers continued to use commonplatforms for different brands toyield production economies.Luxury featuresCars at all levels enjoyed the kindsof technological features once onlyavailable on luxury models.Hybrid growthDesire for price and performancewas balanced with concern for theenvironment, although pure electriccars still sought acceptance.DefinitionThe car category includes massmarket and luxury cars butexcludes trucks. Each car brandincludes all models marketedunder the brand name.Top 10 CarsBrand value2013 $MBrandcontributionBrand value %change 2013 vs 20121 Toyota 24,497 4 12%2 BMW 24,015 4 -2%3 Mercedes-Benz 17,952 4 11%4 Honda 12,401 3 -2%5 Nissan 10,186 3 3%6 Volkswagen 8,790 3 3%The European slowdown impactedBMW’s earnings and was in partresponsible for the swap at the top of therankings, as Toyota surpassed BMW toreclaim brand value leadership. The risesuggested that Toyota had rehabilitated areputation for reliability compromised byUS surge raises most brandsWith US sales of 2.1 million cars, Fordwas the country’s best-selling brand.Its closest competitor, GM’s Chevrolet,sold 1.9 million cars. With a 35 percentincrease in sales, the Volkswagen brandrecorded its third consecutive year of7 Ford 7,556 3 8%8 Audi 5,545 4 18%9 Hyundai 4,000 2 11%10 Lexus 3,472 3 2%Valuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).48 BrandZ Top 100 Most Valuable Global Brands 201349

Part 3 | The CategoriesConsumer & Retail | Carsdouble-digit US unit growth. Its Audibrand experienced its best year ever in theUS, with sales growth of 19 percent.Volkswagen also improved in BrandContribution, a measurement of brandequity. Its overall brand value rose onlymoderately due to reduced profitability,resulting from increased investment inrevamping its popular car models.Toyota’s US sales climbed 26 percentand Honda’s 24 percent. Chrysler’s salesimproved 39 percent. Korea’s Hyundaibrand sold over 700,000 cars in the US.The buying surge was enough to raisemost brands.Luxury featuresWith customers entering US carshowrooms again, they also felt OKabout buying luxury. The remainingquestion was, “what is luxury?” CarsInsightUsing social media totalk with customersThe car industry isn’t oftencelebrated for its innovativemarketing. But, in truth, somecarmakers pioneered deep customerconnectivity with now ubiquitousCRM programs. Today, throughdigital technology, the industry isshowing clear leadership. Ford hasbeen particularly out front in thetransparency of its social mediaefforts, enabling both positive andcritical comments about its productswhile building trust and authenticityalong the way.Hayes RothChief Marketing OfficerLandor AssociatesHayes.Roth@landor.comat intermediate price points includedfeatures generally associated with luxury.The luxury distinction became the interiorfinishes and refinements.Mercedes, BMW, Audi and other luxurybrands relied on stories, heritage andauthenticity to differentiate. At the sametime, however, the threshold price point forluxury seemed to slip, with talk of a $30,000luxury car intended to lure youngercustomers and cultivate a future clientele.Many of the available features involvedtechnology that further turned cars intoanother of life’s computer commandstations, a mobile phone on wheels.Cars offered remote starting, a helpfulfeature on cold mornings. For driversapproaching their vehicle with armsloaded down with packages, Ford offeredthis solution: An SUV tailgate that openswith the wave of a foot.The electric car wasn’t humming yet,mostly because of the technical issuesinvolved with battery replacement.Shoppers seem pleased to purchasehybrids for the right price and without adiminished driving experience. Even highperformance brands like Porsche andBMW were developing hybrid options.Slower sales in fastgrowing marketsFor the first time, the number of new carsregistered in China exceeded the numberin Europe, which declined. But car salesin China grew at a slower rate because ofweaker GDP expansion and governmentrestrictions aimed at reducing pollution.Still, total car sales rose 4.3 percent yearon-yearto 19.3 million, according to theChina Automobile Association.And China remained the key growthmarket for international car brands.Luxury brands, including BMW,Mercedes and Audi, enjoyed relativelystrong sales in China, driven by the rise ofChinese millionaires and, to an extent, bygovernment fleet purchases for officials.To promote the domestic Chinese carindustry, the government planned to shiftits contract purchases away from foreignbrands to favor Chinese cars, such asGeely, Great Wall, BYD and Chery. Fordannounced plans to introduce the Lincolnin China by 2014, as part of its effort toestablish Lincoln as a global brand.The questionis whether thecarmakers willbe able to sustainthis momentumbased on brandingefforts, or will somemanufacturers feelcompelled to fallback on old habitsof discounting, zeropercent financingand other shorttermtactics?Peggy MoylanSenior Vice President,Director of Brand StrategyTeam Detroit Inc.Marketing to differentiateCar brands adapted diverse communicationstrategies, as evidenced during the 2013Super Bowl. Affirming its determinationto make the Chrysler-Fiat hook-up workin America, the company promoted itsRam trucks with an emotional tribute toAmerican farmers.Ford, in contrast, emphasized the ideathat it’s a company of real peoplehelping other real people. Its Super Bowlcommercial for Lincoln referenced arelated social media campaign. Much ofFord’s communication happened in socialmedia, where it made direct contact withcustomers, hoping to turn them intobrand advocates.GM’s marketing emphasized two brands:Chevrolet, which spans several marketsegments, and Cadillac, positioned asa luxury car. It also focused on Buick.Both Chevrolet and Buick share the sameplatform as Opel. The GM marketingeffort for Chevrolet connected the brandwith baseball and an idyllic visionof America.Value perception upfor Top 10 car brandsThe global market has been—andcontinues to be—challenging for cars.The BrandZ Top 10 car brands still areonly 71% of the value they were prerecession,five years ago.But BrandZ data indicates the Top10 car brands have adapted well tothis challenge by increasing valueperceptions. Out of key factors thatinfluence a sale, price is less prominentfor the BrandZ Top 10 car brands,compared with all cars. Only 18% of thereasons for purchasing one of the Top10 brands relates to price; it’s 30% forall cars.As a result, consumers rate the Top10 car brands as more significantlyMeaningful (appealing and meetingneeds) as well as Different (unique in agood way and setting trends) comparedwith all cars. The rating is importantbecause meaningful difference drivesmarket share.Source: BrandZ BigData, over 2 million consumerinterviews regarding over 10,000 brands in 30-plus countriesMeaningful differenceTop 10 MeaningfulTop 10 DifferentInsightsBrandZ BigDataAll cars = 100105+ is a significantly high score107117Action Points1. Signal seriousnessCarmakers improved quality andadded features consumers wanted.They set the bar higher. Theirexpectations raised, consumerswant uncompromised qualityand can easily switch brandsif necessary.2. Accelerate gas savingsConsumers want a drivingexperience at an affordable price.They also worry about their impacton the environment. And when theirresolve falters, high gas pricesremind them.3. Look both waysSales expectations may fit the habitsof older customers. But youngerdrivers are more open to sharing aswell as owning. For them the car isnot the status symbol it had been fortheir parents or grandparents. Theystill need wheels, but not quite in thesame way.4. Look EastThat’s where the sharpest growth ishappening, that’s where to find thegreatest opportunity to meet newcustomers eager to learnabout brands.SpotlightMultiple factors drivecar purchase decisionsin ChinaOver the past decade, China rapidlybecame the world’s largest carmarket. Many Chinese are first-timecar buyers. For them no one factordominates the purchase decision.Rather, Chinese consumers weighmany factors roughly evenly.And safety, not price, is the topconcern. The concern with fuelefficiency reflects the impact thatoperating a car has on monthlydisposable income.Top decision factorsSource: Global TGI 2011Base of 18+Main concerns whenbuying a car in China1. Safety2. FuelEfficiency3. EnginePerformance4. Price5. Comfort6. After Sales Service7. Advanced Technology8. Brand9. Engine Size10. Environmental Protection50 BrandZ Top 100 Most Valuable Global Brands 201351

Part 3 | The CategoriesConsumer & Retail | LuxuryLuxuryLUXURY SEEKS TO BALANCE THEEXCLUSIVE AND INCLUSIVEBrand experience gets personalLuxury brands became moreaccessible, collaborative and experiential.On Facebook, Instagram, Pinterest andother social media platforms, brands acrossthe luxury spectrum mediated the tensionbetween the exclusivity that protects branddesirability and the inclusivity needed toattract new customers.They personalized brand experience inways that went beyond segmentationto focus intimately on the individualcustomer. Someone buying an affordableaccessory might receive a thank you onTwitter, for example, while an invitationto an exclusive fashion show might besent to a couture customer.Authenticity was key. Long-establishedbrands emphasized heritage. Newerarrivals developed compelling andauthentic brand stories. The categoryoverall experienced a new normality,however, as customers continued to spendon luxury, but carefully.DefinitionThe US economic rebound helped. Still,the brand value of the luxury categoryoverall rose 6 percent, compared with a 15percent increase a year ago. These othertrends and developments also influencedthe category:ChinaIn China, luxury brands felt the impactof slowing economic growth, morediscerning customers and governmentlimits on official gift giving.EuropePurchases by Asian tourists buoyedluxury sales in the economicallytroubled markets of Western Europe.USRelaxed US visa requirements forChinese and Brazilian visitors wereexpected to boost future luxury sales.Mixed resultsThis challenging economic environmentproduced mixed results. The Prada brandexperienced strong sales and profits acrossall regions, even in the difficult economiesof Western Europe where new stores andAsian tourist traffic drove activity.Up 6%The luxury category includesbrands that design, craft andmarket high-end clothing, leathergoods, fragrances, accessoriesand watches.Prada’s brand sales increased 33 percent.With a 63 percent increase in brand value,Prada led all categories in brand valueappreciation and entered the BrandZTop 100 Most Valuable Global Brandsfor the first time.Top 10 LuxuryBrand value2013 $MBrandcontributionBrand value %change 2013 vs 20121 Louis Vuitton 22,719 4 -12%2 Hermès 19,129 4 0%3 Gucci 12,735 5 48%4 Prada 9,454 4 63%5 Rolex 7,941 4 11%6 Chanel 7,075 4 6%7 Cartier 6,377 4 32%8 Burberry 4,194 4 3%9 Fendi 3,636 4 New10 Coach 3,276 2 NewValuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).52 BrandZ Top 100 Most Valuable Global Brands 2013 53

Part 3 | The CategoriesConsumer & Retail | LuxuryCoach entered the BrandZ ranking ofluxury brands for the first time in partdue to strength in China, where thebrand added 30 stores, ending 2012 with69 Chinese stores. Coach faced heatedcompetition in the US. It refined its useof social media and the Internet, emailingover 1.2 billion messages to selectedcustomers. Fendi also appeared for thefirst time in the ranking of luxury brands.The brand value of Gucci grew by ahealthy 48 percent. Although salessoftened in Asia, they remained strongin North America and even in WesternEurope because of tourists from Asia andother regions. The brand value increasealso reflects a rise in Brand Contribution,the portion of brand value attributedsolely to brand and not to financial orother factors.Already available online in 27 countries,Gucci announced its first mobile app,increasing the brand’s accessibility.Accessibility may have hurt the highestvalued luxury brand, Louis Vuitton, whosecustomer appeal depends on exclusivity.Hermès benefitted from its exclusivityand appeal to the high-end of the luxurymarket. Profit increased 24.6 percent ona sales increase of 22.6 percent. Its profitmargin improved too.A delicate balanceWith consumers enthusiastic about luxury,but mindful about spending, many brandsacted like media owners, organizingaudiences around shared interests andcreating content to suit particular audiencesegments and even individuals.Magazines and other traditional mediaremained important for reinforcingbrand image. But brands developed anddistributed more story-telling contentthemselves. Burberry relied on new storiesand the latest technology to create a morepersonalized, twenty-first century imagefor a brand established in 1856.In a program called Smart Personalization,Burberry embedded digitalchips in some of its custom-made merchandise.When customers received theirbespoke products they could activate thechip using a smartphone and view avideo of their product being crafted andpersonalized with their name.The brand also planned to introduce aprogram called Customer 360 that wouldempower salespeople with tablet devicescontaining customer preference andshopping history information. Burberry’sbrand value continued to appreciate, butat a lower pace as the global economyimpacted like-for-like sales. Asia accountsfor about 40 percent of the brand’s revenue.Local brands emergeAt the same time, other brands appearedat the margins of the luxury category.Lacking heritage, and not yet of a scaleto make the BrandZ ranking, thesebrands depended on compelling storiespassionately communicated. Among thebrands, mostly aimed at young peopleare: Sweden’s Acne (Ambition to CreateNovel Expressions); Bree, from Germany,and the American apparel brandTory Burch.Local luxury brands also appeared inChina as the consumer attitude towardluxury evolved from an obsession withbadge status to an appreciation of craft.These brands include Qeelin, a collectionof fine jewelry based on Chinese heritageand sold in Paris, London and otherworld capitals.Many brandsacted like mediaowners, organizingaudiences aroundshared interestsand creatingcontentThe message isthe mediumInsightFashion houses are becoming mediaowners. Brands used to expect thefashion magazines to create content.A picture in a magazine is no longerenough to tell the full brand story.Now brands are content creators.The trend is evolving quickly. Withdigital, brand content and brandexperience is becoming almost thesame thing.Elaine QuirkeDirectorMindshare LuxuryElaine.Quirke@Mindshareworld.comInsightsBrandZ BigDataMore consumers searchInternet to find luxurySophisticated use of moderncommunications is an important driverof luxury brand growth, as brandsincreasingly democratize fashion byexpanding access on the Internet and inother digital media. Across the category,the number of consumers “searchingfor information” on luxury brands is up128 percent since 2006, according toBrandZ research.On average, consumers consider theTop 10 brands in the BrandZ luxurycategory more “sexy,” “desirable,” and“idealistic” in their imagery—albeit alsomore “arrogant.” The only apparentvulnerability of these luxury brands isa relative lack of differentiation amongthem, although Louis Vuitton and Hermèsare exemplary in this regard.Source: BrandZ BigData, over 2 million consumerinterviews regarding over 10,000 brands in 30-plus countriesAction Points1. Protect the logoOwning luxury continues to bea source of validation for manycustomers who want logos thatsymbolize their membership in anesteemed group.2. Celebrate individualityYounger customers in particular, areincreasingly turning to luxury brandsthat enable them to express theirindividuality and personality.3. Offer intimacyCustomers seek intimacy from aluxury brand. Both global and localbrands can achieve intimacy, whichis about reducing the anonymity ofmass production and restoring thesense of personal craftsmanship.4. Tell the storyBrand heritage is like sacred scripture.Never stop retelling the brand story.And always make it relevant.SpotlightDesigner labels exertstrongest appeal inBRICsMore than half of adults in Russiaand China, and 41 percent ofBrazilians, believe that a designerlabel improves a person’s image.That attitude compares with 30percent in Italy, a countryassociated with fashion, and only13 percent in the US. The contrastreflects the importance of luxury asa symbol of personal status in fastgrowing markets.Label improves image52%China52%RussiaAny who agree:“Designer label improvesa person’s image”India 47%Brazil 41%30%Italy13%USSource: Global TGI 2012Base of 18+54 BrandZ Top 100 Most Valuable Global Brands 2013 55

Part 3 | The CategoriesConsumer & Retail | Personal CarePersonal CarePRODUCT REFINEMENTS,NEW TRENDS DRIVE GROWTHClever marketing counters private labelPersonal care rebounded. Brandvalue for the category increased 11percent in contrast to a decline of 5 percentlast year.Many brands introduced new and higherperforming products to counter thelingering effects of the recession, whichintensified the category’s normally heavypromotional and private label activityand eroded brand loyalty.Improved private label quality made itmore difficult to convince consumers to kickthe private label habit. Brands sharpenedtheir marketing to build personalities anddifferentiation into their products.To explain their perceived premium pricing,some brands emphasized the masterbrand,a strategy that added quality assuranceand stretched marketing budgets.DefinitionThe personal care category includesbrands in health and wellness, beauty,and facial, skin, hair and oral care.Brands’ continued expansion into thefast growing markets where the risingmiddle classes represent enormous newcustomer potential. These other trendsalso influenced the category:TechnologyThe confluence of cosmetics andpharmaceuticals formed a new andfast-growing segment of the category.Social attitudesChanging views of beauty influencedproduct offerings and evolvingattitudes about masculinity increasedinterest in men’s grooming.MarketingWithout abandoning traditional media,brands took full advantage of digitalmarketing, in-store and online.Crossing categoriesA fast-growing class of hybrid products,known as cosmeceuticals, combinedthe beauty and the health and wellnesssectors. A cosmeceutical, for example,may be a moisturizer with a medicalingredient for enhancing skin health.The interest in cosmeceuticals reflectedthe shifting attitudes toward beauty,Up 11%Top 15 Personal CareBrand value2013 $MBrandcontributionBrand value %change 2013 vs 20121 L’Oréal 17,971 4 30%2 Gillette 17,823 4 -6%3 Colgate 17,250 4 15%4 Nivea 6,322 3 36%5 Garnier 5,429 3 22%6 Lancôme 4,982 4 20%7 Dove 4,927 3 5%8 Clinique 4,000 4 17%9 Natura 3,707 5 12%10 Crest 3,680 5 9%11 Olay 3,593 4 6%12 Estée Lauder 3,545 4 18%13 Oral-B 2,346 3 -6%14 Avon 1,981 3 -27%15 Pond’s 1,779 2 NewValuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).56 BrandZ Top 100 Most Valuable Global Brands 201357

Part 3 | The CategoriesConsumer & Retail | Personal Carewhich increasingly were more aboutenhancement rather than cover up,looking like the best “you,” and notattempting to imitate someone else’sbeauty ideal.It also relates to several larger trends thatcross categories. Today’s multi-taskingconsumers desire products that save timeand add convenience. In that respect,cosmeceuticals are similar to soft drinksthat perform more than one function,simultaneously quenching thirst andboosting energy.Personal care brands active incosmeceuticals included the three brandsthat appreciated most in brand value:L’Oréal and Garnier, which are ownedby the L’Oréal Group, and Nivea, ownedby Beiersdorf. L’Oréal led the BrandZpersonal care ranking with a 30 percentrise in brand value. Garnier grew 22A masterbrandbrings benefitsInsightMasterbrand strategies make sensein personal care for several reasons.First, many of the major players arepresent across many sub categories.A masterbrand leverages thatpresence. Second, the personalcare category is constantly underprice pressure from private label.A masterbrand strategy can assertthe common benefits that earna price premium.Alice BradyBusiness DirectorMindshareAlice.Brady@Mindshareworld.compercent in brand value and Nivea,36 percent.Brand value growth resulted mostlyfrom strong financial performance.L’Oréal and Garnier also increased inBrand Contribution. Brand Contributionmeasures how much of brand value canbe attributed to brand alone, rather thanfinancial and other factors.Growth opportunitiesThe interest in products for men continuedunabated. Among the many factorsdriving the men’s grooming trend are:growing pressure to look fit; the struggleto find or keep a job in a difficult economy;and the evolving, more nuanced viewof masculinity.The sales potential attracted new competitors,including a recent market-disruptingdirect-to-consumer entry witha proposition based on price and convenience.Called Dollarshaveclub.com,it offers an online subscription serviceand delivers relatively inexpensive bladesby mail.Meanwhile, the well-established Gillettebrand appealed to younger men in aneffort to convert new, life-long customers.Along with Crest and Natura, Gillettereceived the highest Brand Contributionscore in the personal care category.In contrast, brands that primarily targetyoung men—like Unilever’s Axe (Lynxin the UK and several other markets)—adjusted its messaging to keep youngmale customers interested in the brand asthey age.Do it yourself (DIY) represented anothergrowth opportunity. DIY productsexpanded the category by offering anat-home solution for a service usuallyperformed by a professional at a muchhigher price. Several brands introducedDIY electrolysis for hair removal. L’Oréal,Clinique and other brands offeredimproved, more precise applicators forlipsticks, eye shadow and other cosmetics.Integrated marketingBecause the category is so competitive andcommoditized, brands sought new ways todifferentiate. Celebrity remained a centralconvention. But some brands defiedcertain conventions in order to stand out.The DIY trend led to the widespread useof “how-to” videos as a new marketingchannel on YouTube. Skin care brandspartnered with popular bloggers andcelebrity stylists to showcase the easeand convenience of using professionalproducts at home.Non-competing brands co-marketed inan effort to lift the entire category. Toencourage shoppers to cross the aisles,Colgate-Palmolive and Kimberly-Clarkcooperated in a back-to-school marketingeffort called “Healthy Habits.” Theprogram combined social media with instorepresence to encourage good hygiene,like hand washing and teeth brushing.The brand value of Colgate increased15 percent.Fast growing marketsEven as its rate of economic growthslowed, China continued to be animportant growth engine for manypersonal care brands.Estée Lauder worked to develop Chinaas its second home market in 2012. Salesof the Estée Lauder brand significantlyoutpaced the Chinese economy.Estée Lauder increased 18 percent inbrand value.The Estée Lauder Companies introduceda brand called Osiao, specificallyfor China. A further iteration onthe cosmeceutical trend, the Osiaobrand combines Western science andChinese medicine.The Brazilian cosmetic brand Naturarebounded with a 12 percent increasein brand value following a decline of28 percent a year ago. Its success camefrom linking a clearly communicatedbrand proposition, about health and apersonalized ideal of beauty, with a wellexecuteddirect sales structure.Not usually thought of as a fast growingmarket, the US, with an improvingeconomy, helped drive personal care sales.Luxury names like Lancôme, a high-endbrand owned by L’Oréal, benefitted fromthe trend.InsightAdd strength with trustTransparency needs to be matedwith authenticity. If you do thatconsistently you develop trust.Positioning a brand as transparentand committed to helping thecustomer can be a strength.John RandSenior Vice PresidentKantar RetailJohn.Rand@kantarretail.comInsightsBrandZ BigDataBrands ranked caring,desirable, responsibleBrands in the personal care categoryare now rated more desirable, caringand kind than brands over all, and evenmore than the BrandZ Top 100 MostValuable Global Brands.The personal care category brand valueleaders also have a significantly higherethical responsibility ranking whencompared with all brands and with theTop 100. The personal care brand valueleaders have increased steadily in theseaspects since the BrandZ valuationbegan eight years ago.Natura, the successful Brazilian brandthat ranks in the Top 10 most valuablepersonal care brands, is particularlystrong on ethical credentials.Source: BrandZ BigData, over 2 million consumerinterviews regarding over 10,000 brands in 30-plus countriesAction Points1. Have a point of viewThe personal care category coulduse a fresh viewpoint on thequestion of “what is beauty” that’ssensitive to cultural differences andcommunicated in a memorable way.2. InnovateBecause of commoditization, growthmay come from innovation, meaninglooking at existing product areas andadding a new element that fulfills anunmet need.3. Be healthyConsumers read ingredients closely.Claims that a product is healthy needto be fully supported by the factsor risk customer backlash, whichcan spread loudly and widely onsocial media.4. Be socialConsumers, especially youngwomen, are using social mediato learn about and evaluate newcosmetic products.SpotlightIn BRICs, soledecision makerstend to be womenIn BRIC market households, whenone individual makes purchasedecisions about personal careproducts, it’s usually a woman.Sole decision-making responsibilitiesare most evenly split in India.Joint decisions about personalcare purchases are male dominatedin all BRIC markets.Decision makersChina IndiaRussiaBrazilFemaleMaleSole decisionmakerJoint decisionmakerSource: Mindshare, MindReader 2012 online survey58 BrandZ Top 100 Most Valuable Global Brands 201359

Part 3 | The CategoriesConsumer & Retail | RetailUp 17%RetailOMNI-CHANNEL WORLDCHALLENGES RETAILERSImproving brand experienceThe resurgent US economydrove an impressive 17 percent brandvalue growth in the retail category lastyear. Brand value declined 5 percent ayear ago.But the US was only part of the story.Brand became a more important toolfor differentiating retail organizationsand attracting consumers who shoppedanytime anywhere, often on mobiledevices, even visiting more than onelocation simultaneously.Retailers developed brand ecosystemsfor reaching consumers in a unified wayacross all channels. To draw traffic andbuild loyalty, retailers worked to improvethe in-store brand experience.The impact of all of these initiatives variedacross geographic regions and storeformats. Brands with a major presencein Europe, especially hypermarketsand food retailers, felt the impact of theContinent’s financial troubles.Amazon returned to the number one rankin brand value, ahead of Walmart. Othertrends included:Media ownersRetailers starting to act like mediaowners, organizing vast customerdata, creating relevant content, andgenerating additional revenue fromsuppliers eager to target key audiences.Benefits of technologyHigh margin brands were morelikely to use technology to improvecustomer experience, while massbrands used technology more tofocus on pricing and assortment.Price disruptionRetailers struggled with constantpricing fluctuations by Amazonand other online retailers that wereable to rapidly analyze sales dataand adjust almost instantaneouslyto competitive conditions.New brands enter the rankingThe US brand Whole Foods entered theBrandZ retail ranking for the first timeon the strength of the US economy andthe brand’s unique positioning. Withmore than 340 stores in North America,and a small presence in the UK, thebrand stresses its commitment to healthyand organic product ranges.Whole Foods achieved one of the highestBrand Contribution scores in the retailcategory. Brand Contribution measuresthe part of brand value directly attributedto brand alone, not to financials orother factors.With the retail category redefined thisyear to include drug stores, Walgreensand CVS entered the BrandZ rankingfor the first time. Walgreens operatesabout 8,000 stores in the US and last yearpurchased a major stake in UK-basedAlliance Boots, which controls 11,000retail outlets in 15 countries. The twocompanies formed a strategic partnershipfor global expansion.Two Australian supermarkets, Woolworthsand Coles, also entered the BrandZretail ranking this year. And Woolworthsappeared as number 80 in the Top 100Most Valuable Global Brands acrossall categories.DefinitionThe retail category was expandedthis year and includes physicaland digital distribution channelsin grocery and department storesand specialists in drug, electrical,DIY and home furnishings. Amazonappears in retail because it achievesapproximately 90 percent of its salesfrom online retailing.Top 20 RetailBrand value2013 $MBrandcontributionBrand value %change 2013 vs 20121 Amazon 45,727 3 34%2 Walmart 36,220 2 5%3 The Home Depot 18,488 2 43%4 eBay 17,749 2 40%5 Tesco 16,303 4 -9%6 Ikea 12,040 3 31%7 Target 11,879 3 13%8 Woolworths 11,039 3 New9 Aldi 8,885 2 -5%10 Lowe’s 7,559 2 26%11 Carrefour 7,372 2 -6%12 Costco 6,789 2 33%13 Whole Foods 6,728 4 New14 Walgreens 5,925 2 New15 CVS 5,620 3 New16 Falabella 5,611 5 7%17 M&S 4,649 3 7%18 Asda 4,617 3 19%19 Lidl 4,524 2 -2%20 Coles 4,416 3 NewValuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).60 BrandZ Top 100 Most Valuable Global Brands 2013 61

Part 3 | The CategoriesConsumer & Retail | RetailAction PointsWith a 43 percent increase in brand value,following a 31 percent increase a yearearlier, Home Depot benefited from therebound in the US housing market andstronger sales to professionals, as well asoperational investments made when theUS economy was weakened. Lowe’s, acompetitor, increased 26 percent in brandvalue. The returning confidence of USconsumers also influenced Costco’s 33percent increase in brand value.The new convenienceThe brand strength of Whole Foodsreflects several cross-category consumertrends including: concern with personalhealth, interest in niche offerings, andenvironmental awareness. In addition,the Whole Foods success in the USdemonstrated the possibility of earning aprice premium when the brand experienceis executed well.Use digital toinfluence salesInsightThe idea of digital being about wherepeople buy things is e-commerce.This idea of digital influencing howpeople buy is e-shopper marketing.That’s a helpful divide. It’s thedifference between the e-store andthe e-path to purchase. Retailers arespending a lot of time worrying aboutthe e-commerce piece but often areshortsighted about understandinghow digital can influence purchase.Bryan GildenbergChief Knowledge OfficerKantar RetailBryan.Gildenberg@kantarretail.comIn a similar way, the Walgreens presencein the BrandZ ranking illustratedthe growing importance of anotherretail trend: the new convenience, whichincludes simplifying the in-store shoppingexperience with clearer navigation andfaster checkout. In a test that’s alsoindicative of the growing importanceof mobile, Walmart tested a programenabling customers to self-checkout usingtheir smartphones.With a new strapline, “at the cornerof happy and healthy,” Walgreensannounced intentions to integrate thein-store and online experience. The effortwas most evident in its strategic use ofmobile, which underscored the brand’somnipresence in the US. Customers canorder prescription refills and have themsent to any of Walgreens’ locations in 50states for pick-up. Similarly, customerscan send Instagram photos for printingto their local stores or to a location neara friend or relative anywhere in the US.These kinds of online order and physicalpick-up options continued to be popularin Europe where retailers offer click andcollect as an alternative to home delivery,which can be difficult for customers to fitinto busy personal schedules. Walmarttested click and collect in some of itsstores. The Australian supermarketWoolworths also provided the service.Physical locations, sometimes dismissedas expensive legacy real estate, seemedto offer new brand experience andconvenience advantages. Amazoncontinued to install merchandise deliverylockers in UK High Street shops and in7-Eleven convenience stores in the US.Slower growth regionsStruggling economies impacted the retailcategory. Tesco and Carrefour, brandsknown for their large surface stores,declined in brand value, in part becauseof weakness in overstored Europeanmarkets. Tesco exhibited strength in fastgrowing Asian markets, however. Andthe turnaround plan of Carrefour’s newmanagement showed progress.Physical locations,sometimesdismissed asexpensive legacyreal estate, offeredbrand experienceand convenienceadvantagesAldi and Lidl declined in brand value,too, suggesting that the economy hurteven the usually more resilient food harddiscounters. Big box merchants continuedto diversify their portfolios of stores toinclude smaller outlets for urban areasand other under served markets.The slowdown in China’s rate of economicexpansion impacted global retail brands.Walmart, with over 375 stores in China,announced that it would reduce itsexpansion rate, opening 100 stores overthe next three years. The chain will focuson reaching the country’s lower tier cities.China remains a key market for Walmart,Tesco and Carrefour, the three largestglobal retailers in sales.Walmart completed its acquisition ofSouth African retailer Massmart. With therelaxation of India’s foreign investmentregulations last year, Walmart gainedgreater access to the market and plannedto open its first Indian retail outlet withina few years.Global brands received regulatoryscrutiny. Amazon faced tax issues in theUS and UK. Walmart tightened oversightfollowing allegations of bribery related toits expansion in Mexico.Most of the global brands advanced socialresponsibility initiatives. During thisperiod of high unemployment, Walmartpledged to hire more than 100,000 veteransof the US armed services over the nextfive years.1. Simplify shoppingUsed to the “new convenience,”clicking online rather than driving andparking, consumers expect a simplifiedexperience when they visit physicalstores. Navigation and checkout need toimprove. Retailers need to make it easerfor customers to walk, see, try, purchase.2. Build BrandShow rooming received disproportionatepublicity. Roughly 50 percent ofsales today are influenced by peopleresearching online and then showrooming in-store. Meanwhile, less than 10percent of sales happen online. Amazonis actually the biggest showroom. Strongbrand proposition is the best antidote toshow rooming.3. Provide valueShoppers aren’t always looking for theabsolute best price. Especially for relativelyinexpensive products, shoppers often willbe satisfied when a price allows them tofeel if not smart, at least not stupid.InsightsBrandZ BigDataBrands rate high in price,but desire, trust weakenBig is certainly efficient and consumers recognize the gooddeal they are getting from the large global retailers, online andin-store. The BrandZ “price” rating for the most valuableretail brands is very favorable but their “desire” rating, whilestill being positive, has declined significantly.The same applies to “trust,” (how consumers feel about thebrand’s past performance), and “recommendation” (whatconsumers expect from current brand performance).The most prominent characteristics of the retail brands arebeing “friendly”’ and “straightforward,” but these perceptionsare no greater for the most valuable retail brands than for allretail brands. The retail brands that go further in putting thecustomer first stand to be able to gain over the pack.4. Drive tripsWithin the regular assortment, identifythe item that customers buy most often,and be definitively different. The trick forexperiential stores is to find a way to begood at something that drives frequency.In the Apple store, the Genius Bar servesthis function. It draws customers to thestore more frequently than if they’d visitonly for their purchasing needs.5. Execute relentlesslyShoppers sometimes leave a storewith a different brand experience thanthey had in mind when they entered.Often that’s not a good thing. That’sbecause some retailers do a better jobof attracting rather than retaining. Theconsistent delivery of brand experience ismore difficult in retail than in many othercategories. But it’s crucial.6. Leverage dataRetail brands also are a communicationvehicle for suppliers. The suppliergains credibility being associated witha relevant retail brand. The retailerbecomes the media owner, a gatekeeperto the community and the conversation.This braided marketing approachinterlocks trade and retail for mutual gain.SpotlightMobile online buyinghighest in China, IndiaLevels of online purchasing usinga mobile device vary by country.Although results reflect to a certainextent well-known cultural biastowards positivity for emergingmarkets, two factors may contributeto the higher levels in China and India:extensive mobile phone ownershipcompared with ownership of laptopsor other technology for Internetaccess; and relatively limited productrange in physical stores in rural areas.Mobile purchasing41%ChinaOnline users ages 18 to 65purchasing something everyday or at least most days30%India18%Brazil10%UK7%USSource: Mindshare, MindReader 2012 online survey5%RussiaSource: BrandZ BigData, over 2 million consumerinterviews regarding over 10,000 brands in 30-plus countries62 BrandZ Top 100 Most Valuable Global Brands 2013 63

Thought LeadershipShaping Seamless Retail with unique Experience SignaturesShaping seamlessRETAIL withunique experienceSignaturesCombining the physical, human and digitalAaron ShieldsStrategy Directoraaron.shields@fitch.comTim GreenhalghChief Creative Officertim.greenhalgh@fitch.comThe search for the elusive seamless retail offershould begin with an understanding of the Physical,Human and Digital (PHD) dynamics of each andevery shopping experience. FITCH believes thatretailers and brands will need to look beyond ‘justdigital’ in order to create a ‘unique experiencesignature’ to build competitive advantage.Here’s something we’re sure you’ve heardbefore… technology has changed the way we shopforever. People have more power to shop on their ownterms, thrusting radical change and opportunities upontraditional retailers and making way for whole newkinds of retailers to enter the fray.All these retailers are chasing the Holy Grail of seamlessshopping – a future where multiple shopping channelswork in concert to achieve two main goals for people:1. Improving the ease of shoppingSolving various pain points from “choice anxiety” to delivery.2. Making shopping about more than the purchaseCreating joy-filled experiences where people can dream of a betterworld for themselves, learn new things, have fun and fall in lovewith retailers.Most retailers are busy creating omni-channel teams,revising organizational silos and mashing up skillsin e-commerce, retailing and marketing functions.Because technology is such an important catalyst forseamless shopping, it has, understandably, stolen much ofthe spotlight.Beyond the “just add water” approachWe see a worrying imbalance taking place at traditionalretailers. We call it the “just add water” approach to bringingtechnology in store. It’s typified by placing a tablet-basedcatalogue next to a rack of products on display. Thesedigital devices remain largely ignored in store and aren’tused for their intended purpose of promoting the longtailof products from that retailer. Clearly, a more holisticapproach is required to reach consumers whether they’re ina store, at home or on the move. While e-commerce is a moremature shopping vehicle, applying technology in stores is inits infancy.As we inch closer to a seamless shopping future, we mustappreciate how all the basic building blocks of a retailexperience can combine to improve the ease of shopping,target different shopper mind states and create distinctivenew experiences. FITCH has distilled the essentialbuilding blocks of any shopping experience into thefollowing elements:PhysicalA structure that can be visited, be it a traditionalshop, a pop-up store or something more nomadic.HumanThe dynamic interaction that only real people canprovide, whether it is face-to-face, over the phone orthrough digital tools like instant messaging. We includeinteractions between retail employees and customers,but also between customers and any other peerinvolved in the decision-making or support process.DigitalTechnology tools to help shopping includingbroadcast, interactive and personal devices.Each of the three PHD elements possesses certainadvantages that are impossible to replicate in any otherelement. We all get excited about touching products welove, whether it’s a mobile phone or new dress (Physical).Sometimes, when we need an opinion or an affirmationof how we feel about a product, we may turn to asalesperson or a friend (Human). On the other hand,there is no way for a physical setting like a store toreplicate the endless product selection that’s available inthe digital setting of an e-commerce shop (Digital).There are some absolutes that retailers can and shouldtake advantage of. For example, traditional bricksand mortar retailers should remember that people stillneed to leave the house and take excursions. That’san opportunity to make the store visit more enjoyableand shift the chore-like tasks online if possible. Directretailers with a call center need to recognize that scriptedconversations are a poor cousin to dynamic genuinedialogue with real people.Planning the seamless experienceThinking about the advantages specific to each PHDelement helps us plan seamless experiences. The idea, ofcourse, is to blend these elements to create different waysfor people to shop. But the way we blend the elementscreates big differences in the shopping experiences andhelps define retail brands.Consider the Human element, for example. The statedstrategy of UK department store John Lewis placesemployees at the top of its priorities. Customers feelconfidence and trust in the brand as a result. While theretailer has a considerable online business, it’s the qualityof the human interaction that creates the difference inthe experience. Similarly, apparel retailer Zappos hasbuilt a $1 billion business on the strength of creatinggreat interaction between its customers and employees.But Zappos is exclusively an online retailer. Zappos callsitself an online service leader and wants to be known forthe absolute best service. While John Lewis and Zapposplay in different channels, they both have recognizedthat human interaction is paramount to maintaining aunique experience and a unique brand.The way in which each PHD element is deployedcreates another level of difference. For example, Zapposand the fast fashion retailer Uniqlo both over index onthe human element in the experience they engineer,but their employees are deployed in different ways.Zappos employees are highly trained in sales andproblem resolution, and given a wide mandate to delightcustomers. Uniqlo floods its stores with employees,compared to its competition, but these employees aretrained to help customers find what they are lookingfor, make easy returns and keep the merchandiselooking great.The combinations of the PHD elements create a unique“experience signature” that differentiates and producescompetitive advantages for retail brands. Walmart andJohn Lewis both began life as single channel brands.Both have become multichannel brands. One day, bothwill create seamless experiences for their customers. Butthe difference in the way these retailers deploy their PHDelements will continue to define how they are perceivedby people, what kind of purchases will be made and thelevel of involvement customers are willing to commit tothe brands.EmpatheticSupportedCommunityImmediateExcursionImmersiveTactileHUMANPHYSICALPHD ElementsDIGITALEach PHD element of theshopping experience hasunique advantagesPerfectinformationStorytellingInfinite choiceLow costFITCH is a global design consultancy devotedto translating brand into consumer experience.Founded in 1972, FITCH has more than 350 peopleworking across 14 studios in nine countries.www.fitch.com64 BrandZ Top 100 Most Valuable Global Brands 2013 65

Part 3 | The CategoriesFood & Drink | BeerUp 36%BeerBrewers expandglobally Whilesatisfying localtastesConsumers seek innovationThe brand value of beer increased36 percent, the greatest rise of anycategory in the BrandZ Top 100 MostValuable Global Brands 2013.several years, it helped balance sales inthe softer economies of Western Europe.Consumption remained strong in fastgrowing markets.The increase reflected brand strengthand strong financial results in a highlyconsolidated category. The world’s twolargest beer brewers, AB InBev andSABMiller, collectively market severalhundred brands. They and the nexttwo largest brewers, Heineken andCarlsberg, produce about half the beersold worldwide.Also, US beer consumption rose 1.3percent, according to the Beer Institute,a research source of the US brewingindustry. The first improvement inDefinitionThe beer category includes globaland regional brands, which, inan increasingly consolidatedindustry, are mostly owned byfour major brewers.At the same time, brewers faced higheringredient costs and tax rates andcontinuing consumer price sensitivity.And the industry’s traditional practicesfor expanding distribution and drivingvolume encountered new challenges fromtightening regulations and changingdrinking habits:US concernsAnti-competition concerns drew scrutinyfrom the US Justice Department, stallingthe AB InBev acquisition of Mexico’sGrupo Modelo, maker of Corona.Russian regulationsIn Russia, regulations restrictingmost beer advertising took effectin July 2012, in a government effortto reduce alcohol consumption.Home consumptionThe growth of home consumptioninverted the standard beer marketingsequence of building a brand onpremise first, especially in the UK.Like many categories, the beer industryfelt the impact of a growing consumerpreference for more differentiated andcustomized products. Craft beer rose 15percent in volume in the US, during 2012,according to the Brewers Association,which represents the craft brewers.A relatively small part of the market,craft is consistent with beer’s heritage asa beverage brewed for local communitiesand tastes. The global brewers respondedto these developments with product andmarketing initiatives.Driving consumptionAB InBev offered craft brands andheavily marketed Bud Light Platinum,for example. Meanwhile, its most popularbrands, Bud Light and Budweiser, roseTop 10 BeerBrand value2013 $MBrandcontributionBrand value %change 2013 vs 20121 Bud Light 10,840 3 30%2 Budweiser 9,458 4 26%3 Heineken 8,238 4 36%4 Corona 6,620 4 29%5 Skol 6,520 5 39%6 Stella Artois 6,319 4 40%7 Guinness 4,473 5 11%8 Aguila 3,903 5 New9 Brahma 3,803 4 61%10 Miller Lite 3,093 3 34%Valuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).66 BrandZ Top 100 Most Valuable Global Brands 2013 67

Part 3 | The CategoriesFood & Drink | Beerin value 30 percent and 26 percent,respectively. Budweiser engaged in afierce US market share battle with CoorsLight, produced by Molson Coors.Heineken, the third most valuable brandin the BrandZ beer category ranking,appreciated 36 percent value. Thebrand gained extensive publicity as theofficial beer brand of the James Bondfilm, Skyfall. Its 360 campaign includedproduct placement in the film andextensive attention on social media.Russian beer market leader Baltikaresponded to the government’s beeradvertising ban by marketing its nonalcoholicbeer. Called Baltika 0, thenon-alcoholic beer fits into the Baltikarange, which is branded numerically.Baltika 3 is popular and for the massmarket, for example, while Baltika 7 isconsidered premium.Broadened appealIn other regions, brewers positionednon-alcoholic beer to reach people whodesired the taste of beer but not theeffect of alcohol. AB InBev calls its nonalcoholicBeck’s beer, Beck’s Blue. Thenon-alcoholic offerings are part of a movetoward lighter beers and also beers withsome novelty, such as the fruit flavoring.The non-alcoholic beers also recognize thatpeople socialize differently today, more inmixed company than in single-sex settings.Brewers offered more sophisticated brandslike Peroni, a premium Italian brand thathelped strengthen SABMiller’s sales in aweakened UK beer market.Brewers introduced beer at some fast foodoutlets and promoted efforts to pair beerwith food. Recognizing the shift to homedrinking, some brands launched for homeconsumption first rather than for ontrade.In the UK, Stella Artois introducedStella Cidre, a premium cider, directlyinto the off-trade.Focus on fast growing marketsThe global brewers focused muchattention on Latin America. In Brazil, oneof the few markets where beer is not seenspecifically as a male drink, AB InBevowns two of the strongest local brands,Skol and Brahma.Both brands grew sharply in brand value.AB InBev also markets Stella Artois andBudweiser in Brazil, positioning StellaArtois as a premium brand and Budweiseras an aspirational brand.The Colombian brand Aguila, owned bySABMiller, appeared in the BrandZbeer ranking for the first time. Thecompany introduced larger bottles forAguila last year. SABMiller derives itslargest share of profitability from LatinAmerica, where it aims to introduce lowerincome consumers to higher quality beer.Similarly, in Ghana, SABMiller marketedthe Impala beer brand made from thecassava root. Guinness also introducedcassava beer in Africa. The beers areintended as safer alternatives to prevalenthome brews. Heineken, owned by Diageo,announced plans to build a breweryin Ethiopia.Indicative of the interest in Chinademonstrated by the giant globalbrewers, a joint venture between SAB-Miller and China Resource EnterpriseLtd. owns Snow beer, and AB InBev ownsthe Harbin brand. Yanjing Brewery ispart of a Chinese conglomerate, BeijingEnterprises Holdings.But the Chinese market is actually aconglomeration of regional markets. Noindividual brand enjoys complete nationaldistribution. Reflecting a major emergingcross-category trend, the developmentof Chinese brands for export, Tsingtao,China’s oldest beer brand, is establishinga production facility in Thailand.InsightInspire or lose the fizzThe way we socialize has changedfundamentally. First, we don’tsocialize in single-sex groupsas much as we used to, withstereotypical male bonding-over-beersessions far less frequent today. Menhave also changed their habits whenwomen are present, choosing toshare wine or even cider rather thandrink beer. Second, we’ve shifted oursocializing to be more around foodrather than just drinking, and beerisn’t always a natural choice whenpeople eat. Beer drinking is gettingsqueezed as a result. Beer brandsneed to adapt and respond withevolved brands and products thatwill answer to these changing needs.If they don’t, they are in danger oflosing their fizz forever.Melanie PuddickDirectorAdded Value, Londonm.puddick@added-value.comInsightsBrandZ BigDataFinancial successdrives brand equityThe global beer brands have experiencedgreat financial success because ofthe scale achieved through industryconsolidation. The brands enjoy minimaldifferentiation, but they share in commona few BrandZ brand archetypecharacteristics, like being viewed in mostcountries as “fun” and “playful.”Compared to other brands across allcategories in the BrandZ Top 100ranking, beers score modestly on being“meaningful” (appealing and meetingneeds) and derive most of their brandequity from salience, (famous, standsout), reflecting the relatively highadvertising and promotional spend inmost countries.Source: BrandZ BigData, over 2 million consumerinterviews regarding over 10,000 brands in 30-plus countriesAction Points1. Embrace innovationWith centuries of brewing heritage,the beer category evokes tradition.Innovation doesn’t come as naturally.But core beer customers, youngmen in their twenties or thirties, havecome to expect innovation.2. Evoke emotionBeer is an emotive category wherebrands matter and communicationdrives brand differentiation. Whenthe consumer holds a smart phoneloaded with personal apps in onehand and a glass of beer in theother, which brand does he feel morestrongly about?3. Build strong brandsIt may still be possible in some barsto order three beers by holdingup three fingers and acceptingwhatever lager is on tap. As peopleincreasingly consume beer at home,however, they’re not signalinga bartender. They’re personallyselecting brands. Brand becomeseven more important.SpotlightBeer consumptionpatterns point to India,South AfricaGermany continues to outpaceother nations in beer consumption.Among the fast growing markets,beer consumption is strong in Brazil,Russia and China, with more roomfor development in India andSouth Africa.Beer drinkers71%Germany54%UK“Have you consumed beerin the past month?”52%BrazilSource: Global TGI 2012Base of 18+50%China49%Russia46%US19%South Africa8%India68 BrandZ Top 100 Most Valuable Global Brands 2013 69

Part 3 | The CategoriesFood & Drink | Fast FoodUp 5%Fast FoodWith traffic flat,brands improveHospitality,locations and menusSnacks become a meal optionThe brand value of the fast foodcategory increased last year, but onlyby 5 percent compared with 15 percent ayear ago.to trade up to higher margin menuitems. They also implemented strategicimprovements to meet changing consumerexpectations for the restaurant experience.The Quick Service Restaurant (QSR)business felt the effects of flat traffic in theUS and economic sluggishness in Europe,without a boost from the fast growingmarkets, particularly China, whichdependably drove sales even duringthe recession.Brands continued to rely on promotionaltactics to drive short-term gains with valueorientedoptions, tempting customersDefinitionThe fast food category includesQuick Service Restaurant (QSR)and casual dining brands, whichvary in customer and menu focus,but mostly compete for the sameday parts.Snacking became an important “daypart.” Snacks produce strong marginsand leverage locations during theunderused afternoon hours after lunchand before dinner. Brands experimentedwith ways to offer traditional items insmaller and less expensive portions. Theymarketed specialty beverages, like coffeesand fruit drinks, as snacks. Brands alsotook these initiatives:MenuMany brands expanded baked goods aspart of the snacking focus and to driveand complement profitable coffee sales.Social MediaMost brands engaged heavily insocial media both to drive trafficand strengthen brands.ExpansionInternational brands acceleratedexpansion, with several brandsentering or adding outlets in India.Broadening appealThe presence of Panera Bread in theBrandZ fast food ranking for thefirst time this year illustrated the shiftin consumer expectations. Consideredpart of the fast-casual restaurant sector,Panera’s 1,600+ outlets in the US andCanada emphasize fresh ingredients andonsite baking in a hospitable environment.In an attempt to project similar appeal,McDonald’s tested all-day sale of bakedgoods and remodeled certain units toresemble cafes, attempting to create aspace for community interaction similarto what Starbucks has accomplished.Starbucks announced plans to acquirethe French pastry bakery brand LaBoulange. The company expects theacquisition to help drive food sales andTop 10 Fast FoodBrand value2013 $MBrandcontributionBrand value %change 2013 vs 20121 McDonald’s 90,256 4 -5%2 Starbucks 17,892 4 5%3 Subway 16,691 4 12%4 KFC 9,953 3 12%5 Pizza Hut 6,014 3 11%6 Chipotle 4,972 5 New7 Tim Hortons 3,380 4 1%8 Panera 3,025 5 New9 Burger King 2,437 2 New10 Taco Bell 1,992 3 -3%Valuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).70 BrandZ Top 100 Most Valuable Global Brands 201371

Part 3 | The CategoriesFood & Drink | Fast Foodgrow another brand. Starbucks continuedthe rollout of its updated logo that retainsthe familiar Siren but removes the wordcoffee to broaden brand appeal.Dunkin’ Donuts expanded its sandwichmenu with items intended to grow thebreakfast and lunch business. Tim Hortons,the large Canadian chain known for itscoffee and donuts, remodeled locations.Burger King also invested in a multi-yearremodeling rollout. It’s part of a brandgrowth strategy that includes menuimprovements, marketing changes andoperational efficiencies to attract morewomen and older customers. During therecession, Burger King suffered from itsrelatively narrow core customer base ofyoung men.Burger King is in the midst of an effortto infuse the brand with entrepreneurialCount caloriesInsightIssues like calorie and fat contentare likely to draw greater consumerconcern as the economy improves.Many of the chains are advancinginitiatives regarding sustainability andother aspects of social responsibility.Chains are looking closely atsourcing. Panera has several teststores where pricing is roughly basedon the amount that people canafford. The chains also have beenaddressing health issues.Philip HerrSenior Vice PresidentMillward BrownPhilip.Herr@millwardbrown.comzeal by shifting from corporate controlto a 100 percent franchise model. Thebrand returned to the BrandZ fast foodcategory ranking in 2013.Brands promoted valueto drive trafficLocation upgrades and menu expansionschallenged the QSRs to stretch theirbrands without losing the price messagethat attracts core customers. The brandsattempted to accomplish this feat bypromoting value options.Subway continued to position the brandas a healthy option in the QSR space.McDonald’s addressed the ongoingconcern with healthy eating with menuoptions that included vegetables, fruitand grain. The brand actively interactedwith mothers on social media sites.In an index that tracks brand presenceon Facebook, Twitter and YouTube,the industry publication Nation’sRestaurant News (NRN) rankedStarbucks number one, with Panera andMcDonald’s also listed as leaders indriving the most engagement on thesesocial media platforms.Taco Bell achieved a high social mediastanding following a promotion for itsDoritos Locos Tacos with taco shellsmade of Nacho Cheese Doritos. TheMexican food brand Chipotle also rankedhigh in the NRN list.Chipotle appeared for the first time in theBrandZ fast food category ranking.Celebrating its 20th anniversary in2013, Chipotle operates around 1,400Mexican grill restaurants in the US andCanada, and is gradually expanding intoEuropean markets like London and Paris.Expansion focused onfast growing marketsThe major brands continued globalexpansion, especially in fast growingmarkets. Under the leadership of a newCEO, McDonald’s increased its presencein China, ending 2012 with 1,705 Chineseunits compared with 1,500 a year earlier.Yum! Brands, parent of KFC, Pizza Hutand Taco Bell, generated almost half of itsoperating profits from China in 2012. Itoperates more than 5,700 restaurants inChina, of which 4,260 are KFC brandedand 987 Pizza Hut branded. However,sales growth softened after media in Chinareported that KFC’s chicken containedexcessive amounts of antibiotics. KFCresponded by strengthening its oversightof suppliers.Yum! Brands is accelerating efforts inIndia where it operates 280 KFCs and310 Pizza Hut locations and has tradedfor almost 20 years. Yum! Brands plansto expand into India’s smaller cities witha total of 1,000 Indian outlets by 2015.The company just introduced Taco Bellto India.Dunkin’ Donuts and Starbucks enteredIndia in 2012. McDonald’s, with around270 restaurants in India, announcedplans to open its first vegetarian units.Subway operates about 300 outlets inIndia, including three that serve onlyvegetarian food.Burger King again became a publiclytraded company in 2012. In a complexdeal, 3G Capital, which acquired thechain in late 2010, retained a majoritystake. Burger King is accelerating itsinternational expansion, establishingjoint ventures with strong local partners,keeping a minority interest but investingno capital. Transactions in 2012included China, Russia, South Africa andCentral America.3G Capital, founded by Brazilianfinancier Jorge Paulo Lemann, was earlierinvolved in combining Belgium’s InBevand Anheuser-Busch into AB InBev, theworld’s largest brewer. Early in 2013, 3GCapital teamed with Warren Buffett’sBerkshire Hathaway to buy global foodproducer H.J. Heinz.Burger King operates around 13,000restaurants in 86 countries, with almost7,200 locations in the US. McDonald’soperates close to 35,000 locations in 119countries, including around 14,160 inthe US. Subway opened around 1,700restaurants last year. It operates thegreatest number of outlets worldwide,over 39,000 in 101 countries.InsightsBrandZ BigDataServing up personalityMcDonald’s has owned “fun” and“playfulness” and exported its brandpersonality with consistency and greatclarity across the globe. Its brand valueexceeds by one and a half times, thebrand value of all the other brands in theBrandZ fast food category Top 10.This dominance in brand value meansthat differentiation by personality is oneroute to survival and potential growthfor its competitors, which have variousadvantages, according to analysis basedon BrandZ personality archetypes.Long-established Tim Hortons owns“trust” because of its caring and kindlyimage. Subway scores on “creativity”and Taco Bell is relatively “rebellious.”Notably, two successful newcomers tothe ranking are also distinctive: Chipotle,a Mexican grill, is “adventurous.” Knownfor fresh ingredients, Panera is rated highin “idealism.”Source: BrandZ BigData, over 2 million consumerinterviews regarding over 10,000 brands in 30-plus countriesAction Points1. Take leadershipConcern about healthy eating is along-term trend that will accelerate.Staying in front of the trend makesbetter business sense than trying tocatch up. Health conscious eatersmay be relatively marginal today, butthey’re the core customersof tomorrow.2. Update valueValue always draws the attentionof individuals and families, andespecially during difficult economictimes with unemployment high. Keepreframing—and updating—value.3. Cut caloriesCustomers expect food that tastesgood. Continue to deliver good taste,naturally, but reduce the calories andfat contained in menu options andprovide taste in healthier ways.4. Broaden appealCustomers looking for valueand taste come from all incomelevels. That makes QSR the mostdemocratic of meal options. Itsuggests that while respecting andfulfilling the needs of core customersit’s possible to broaden appeal.SpotlightCalorie intake, a globalconcern, varies bycountryThe worldwide concern with healthyeating and calorie intake varies bycountry. In the US and France, abouta quarter of the population says itconsiders calories when eating. Morethan one-third of Brazil’s populationthinks about calories, and almosthalf of China’s.Calorie counters46%China35%BrazilSource: Global TGI 2012Any who agree:“I always think of thecalories in what I eat”27%US26%France72 BrandZ Top 100 Most Valuable Global Brands 201373

Part 3 | The CategoriesFood & Drink | Soft DrinksSoft DrinksCola brands promised to deliverthe trifecta of hydration, refreshmentand taste.But consumers in developed marketswanted more. To fit the needs of their overscheduledlives, they expected the brandsto multitask, adding functional benefits,like an energy boost to the basic thirstquenchingproposition. And consumerscontinued to worry about the healthinessof carbonated soft drinks (CSD).The new, more inclusive definition ofthe BrandZ non-alcoholic beveragecategory recognizes these trends. Thehighly valued juice, coffee and tea brandsthat now appear in the ranking reflectboth the attitudes of consumers whoprefer these drinks and those who selectthem as alternatives to carbonation.CSD sales were especially challengedin markets like Western Europe, with anaging population and sluggish economy.To balance slacking demand, Coca-Colaand Pepsi looked to fast growing markets,like China and India, where consumersare less likely to have a soda drinkinghabit and tea is a more traditional drink.Among strategies implemented by thebeverage brand leaders were:Up 5%Bubble bursting for colasBut other beverages flowDefinitionShopper marketingBrands continued heavyinvestment to win share, especiallyin the flat cola sector.Health concerns remain key issueThe soft drink category wasexpanded this year and includesthese non-alcoholic ready-todrinkbeverages: carbonated sodadrinks (CSDs), juice, bottled water,functional drinks (sport and energy),coffee and tea (hot and iced).Pairing with foodThey attempted to increase volume bymarketing connected to meal occasions.Brand extensionBrands added new options to meetconsumer desire for healthier andmore functional beverages.Top 15 Soft DrinksBrand value2013 $MBrandcontributionBrand value %change 2013 vs 20121 Coca-Cola 64,698 5 7%2 Diet Coke 13,717 4 -2%3 Red Bull 10,558 3 6%4 Pepsi 9,799 4 -5%5 Nescafé 5,639 3 New6 Tropicana 4,808 4 New7 Nespresso 4,478 4 New8 Sprite 4,127 2 9%9 Fanta 3,974 2 -1%10 Gatorade 3,750 3 9%11 Mountain Dew 2,495 4 -3%12 Minute Maid 2,296 3 New13 Dr. Pepper 2,236 4 5%14 Diet Pepsi 2,230 3 -2%15 Nestea 1,852 3 NewValuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).74 BrandZ Top 100 Most Valuable Global Brands 201375

Part 3 | The CategoriesFood & Drink | Soft DrinksMarketing to win shareFacing these growth challenges in boththe developed and developing world,brand leaders Coca-Cola and Pepsiremained locked in a market share battle,with Coca-Cola positioned as the timelessiconic brand and Pepsi as the brandfocused on the immediate excitement.Coca-Cola continued its “Open Happiness”campaign, using viral social mediato communicate the international exploitsof a Coca-Cola truck that delivered Coca-Cola,food and good feelings. Pepsilaunched its first global campaign called“Live for Now,” connecting the brand withpop culture worldwide, an iteration on thesuccessful “Pepsi Generation” positioningof the 1960s.InsightConsumers seekhealth and moodbenefits from drinksHealth in all its manifestations is amassive trend. When we reach for asoft drink, we’re sometimes simplylooking for a convenient form ofrefreshment or hydration and we’renot focused on the healthiness ofwhat we are drinking. But, in anincreasing number of occasions,consumers want the beverage to bea vehicle for other benefits beyondbasic hydration and refreshment,many of which are health ormood related.Lloyd BurdettHead of Global Clients and StrategyThe Futures Companylloyd.burdett@thefuturescompany.comPepsi was the official drink of MajorLeague Baseball in 2012. In a dramaticexpression of its ability to leverage itsPower of One philosophy, Pepsi signedthese brands—Pepsi, Quaker, Tropicana,Gatorade and Frito-Lay—to a 10-yearsponsorship deal with the NationalFootball League (NFL).Not surprisingly, the most daringmarketing effort last year came fromRed Bull with its sponsorship of FelixBaumgartner, who gained the world’sattention with a 24-mile free-fall to earthfrom the edge of space. Red Bull movedahead of Pepsi as the third most valuablebrand in the category.Linking drink and foodCoca-Cola paired the brand with food,including snacks. In supermarkets, itdisplayed beverages near pizza, forexample, merchandising Coca-Colabrands as part of a meal solution.Coca-Cola also opened its ShopperInnovation Experience Center during2012, a laboratory for testing crosscategorysales drivers. Pepsi developedliquid meal replacements, combiningits Pepsi expertise with the corporation’sQuaker brand.The high proportion of drinking occasionsassociated with breakfast helped driveconsumption of tea and juices, includingbrands like Tropicana, Minute Maid andthe Nestlé offerings linked by the brandlikeprefix Nes—Nescafé, Nespressoand Nestea. The focus on coffeequality, innovative coffee machines andpersonalized customer service offeringsenabled Nespresso to consolidate itsfoothold in Western Europe and expand itssuccess to almost 60 countries worldwide.Although breakfast is not a time usuallyassociated with carbonated drinks,Mountain Dew, a Pepsi energy drink brand,recently launched Mountain Dew Kickstart,a caffeinated—and carbonated—breakfastdrink aimed primarily at Millennials.The attempt to link drink and food relatesto larger trends, such as the increase inat-home entertainment, which influenceswhen and where consumers drink andeat. The trend affected beer brewers aswell, as all beverage producers depend ondriving liquid volume.Meeting health andenergy concernsSoft drink brands responded to thegrowing consumer focus on health withnew juices, smoothies and enhancedwaters, including coconut water, whichenjoyed wide distribution in the UK andparts of the US.The leading brands marketed colaproducts intended to improve healthinesswithout compromising taste. Pepsi Maxand Coca-Cola Zero are both aimed atmale drinkers who want good taste, fewercalories but not the diet label. Dr PepperSnapple Group launched Dr PepperTen in the last quarter of 2011, with theslogan “It’s not for women.”With the launch last year of Pepsi Next,the brand attempted to find a mid-calorieposition that reduced calories, whilemaintaining taste. In most markets, PepsiNext was promoted as containing 60percent less sugar. Coca-Cola replacedSprite, in the UK, with a reformulatedversion using a natural sweetener.Introduced early in 2013, the new Spriteaddresses obesity concerns by reducingthe calorie count of the lemon-lime drinkby 30 percent.Coca-Cola, owner of Minute Maid,is developing an orange juice notfrom concentrate, and investing in thetechnology to create consistent taste despitethe variations that occur naturally. Pepsiaddressed the healthiness issue with its1998 acquisition of the Tropicana brand oforange juice not made from concentrate.The interest in additional energy benefitsdrove the performance of Red Bull.Gatorade marketed Gatorade G SeriesPro Carb Energy Chews, gum-like squaresintended for chewing prior to and duringathletic exercise. But desire for functionaldrinks also included products to reduceenergy and encourage relaxation, socalleddream water to manage stress.InsightsBrandZ BigDataStrong characterbuoys brandsThe recession has been a catharticexperience for many brands, forcing arethink in terms of their relevance. Softdrinks faced a simultaneous challenge—the increasing consumer concern withhealth. It is noticeable that this categoryon average is much less “meaningful”(appealing and meeting needs), but is stillvery “salient,” meaning that it’s famousand stands out in the mind ofthe consumer.The high profile has been maintainedpartly by greater definition of brandcharacter. The overall character “clarity”score (the depth and distinctivenessof brand personality) has increased 24percent since the recession, comparedwith an increase of just 8 percent forall brands. Three notable exponentsof character building are Coca-Cola,Nespresso and Red Bull.Source: BrandZ BigData, over 2 million consumerinterviews regarding over 10,000 brands in 30-plus countriesAction Points1. Be transparentBeing clear and straightforwardis important as Millennials—moreinformed about food and healthissues than their parents—move intohousehold and family formationlife stages.2. Be proactiveAddress consumer health concernshead-on. If customers are raisingquestions about sugar or caffeine,for example, then take a position.Communicate about reducingthe levels of those ingredients oracknowledge them as an acceptableindulgence in moderation.3. Be strategicDiscounts and promotions haveconditioned consumers to timepurchases for when a productis offered at what seems to bethe lowest price. Develop amerchandising ladder that explainsthe value at rising price levels.SpotlightBeverage penetration,consumption varywidely by countryLiquid milk is the most consumednon-alcoholic beverage worldwide,followed by ready-to-drink juice,bottled water, tea, carbonated softdrinks and ground coffee.The penetration of carbonated softdrinks varies widely, depending onlocal tastes and the efficiency ofdistribution systems. Carbonateddrinks are highly desired in Mexico,more than water or juice, whileIndian consumers prefer tea.Beverage penetrationLiquid MilkRTD JuiceBottled waterTeaCSDGround coffee51%CSD penetrationBrazilMexicoGreeceSpainUSFranceChinaGlobalUKIndia25%61%68%72%72%68%87%83%88%85%100%100%98%97%95%Source: Kantar Worldpanel 2013 Brand Footprint Report76 BrandZ Top 100 Most Valuable Global Brands 201377

Thought LeadershipE-Commerce Becomes Everywhere CommerceE-CommercebecomeseverywherecommerceBrands face stark choice: adapt or dieSue PrattHead of Marketingspratt@salmon.comYesterday’s definition of e-commerce is dead.The rough definition—buying and selling over theInternet—is inadequate for today’s commerce companies.Today’s shoppers expect to shop anytime/anywhere, tobuy every kind of product, to use whichever device orchannel suits them at that moment and to be recognizedand valued for their custom. Today’s business leaders(whether brands, retailers or B2B businesses) aregrappling with increased shopper expectations, rapidlyevolving technology and new sources of competition.So, should we now drop the “e” and call this form oftransaction just “commerce?” Since all commerce todayinvolves electronic systems and the lines between theonline and offline worlds are blurred, the “electronic”in e-commerce may be redundant. Another approachwould be to redefine it as “everywhere commerce” so thatwe can focus on the big opportunities and challenges ine-commerce today.To assess whether a company is adequately recognizingthis shift in commerce and taking the necessary stepsto be present everywhere, business leaders need to askthemselves these key questions:Every countryAre we offering international shoppers a seamlessexperience? Are we reaching potential shoppers in fastgrowing markets? Are we personalizing the shopper’sexperience based on his/her location?Every deviceDoes our e-commerce platform support the wide (andincreasing) variety of devices and browsers? How areshoppers using their devices? Are they using a smartphoneand laptop at the same time and in complementary waysor at different times and then keeping them in sync?Every channelAre we supporting every possible route into ane-commerce transaction? These include: socialnetworks, brand marketing, physical stores or branches,wholesalers, Amazon, eBay and other marketplaces,aggregators and choice engines that simplify options tohelp consumers make better decisions.Every shopperAre we personalizing the shopper’s experience basedon the current context plus his/her past and predictedbehavior? And are we catering to both B2C andB2B shoppers?Every interactionAre we delighting our shoppers every time they interactwith our brand (whether on our own web propertiesor elsewhere)? Are we delivering excellent service rightthrough the customer experience: from brand awareness,to product awareness and purchase, as well as thedelivery, returns and customer service processes?Every productHow effectively are we managing product information,pricing, inventory and returns across our own, thirdparty and drop ship supplier locations?Every piece of dataAre we gaining enough insight from the mass of dataavailable on our shoppers’ interactions? What newopportunities are offered by the exponential growth indata from smartphones and social media (big data) andfrom information disclosure?Every business modelHave we just taken our pre-Internet business modelonline or have we really exploited the new opportunitiesoffered by the Internet? Which aspects of our old businessmodel can be blended with digital to offer a differentiatedproposition? Can we integrate with our legacy systems?How do we keep up to date with new developments likeGoogle Shopping Express?Every delivery optionAre we meeting the needs of those shoppers who wantthe product in the next hour or the next day as well asthose who are willing to wait until next week? And whatabout those shoppers who want a one-hour deliveryslot or want to pick up from a nearby location at theirconvenience, not ours?Based on the answers to these questions, business leadersneed to decide on priorities and start making changes toadapt to this new environment. The name change fromelectronic commerce is important, not just because theterm too narrowly defines the today’s reality, but alsobecause it confines thinking. The term focuses thinkingon the wrong problem.Retailers need to think about how strategic use oftechnology, mobile location-based services and bigdata can improve life for the customer, unify thebrand experience across all venues and provide acompetitive advantage.“Everywhere commerce” is here already and the choicefor today’s commerce companies is stark: adapt or die.The 6 E’s of EverywhereCommerce for retailers,brands and B2B businesses1. ExecutionNow that everyone agrees that e-commerce isstrategic, executing at speed is the major challengefor large businesses. An agile approach will helpdeliver business benefits quickly, while remainingopen to future change.2. EasinessMake it easy for all shoppers to shop with you,anytime, anywhere, any device.3. ExcellenceCustomer experience of excellence is highlycorrelated with improved customer loyalty and betterfinancial performance. Structure the business todeliver this efficiently and consistently.4. ExperienceBringing the in-store experience online can helpretailers offer a differentiated proposition. Brandowners can use digital channels to create emotionallyengaging experiences for their end consumers(and collect valuable data) even when the purchasetransaction is completed elsewhere.5. EmergenceAn emergent approach to strategy will help keep youaware of evolving trends and technologies. Innovativeideas can come from anywhere inside or outside thecompany and an emergent approach allows these tobe incorporated in the company strategy.6. ExploitationBe careful not to introduce new technology for its ownsake. Focus first on understanding customer behaviorand then how technology can enhance this. Exploitexisting technology before buying new.Salmon is a highly innovative e-commerce digital agencyhelping leading retail, wholesale and manufacturingbrands define, deliver and exploit enterprise-scalee-commerce and multichannel operations.www.salmon.com78 BrandZ Top 100 Most Valuable Global Brands 201379

Part 3 | The CategoriesFinancial Institutions | BanksGlobal BanksUp 23%BanksBanks lookinward, recalibratestructure, productsand brandFinancial results improveLast year was a time of introspectionand renewal for bank brands.Having emerged from the paralyzingshock of the global financial crisis, thebanks experimented with new initiativesfor growing their businesses in a moreregulated, low interest rate environment.They attempted to win back consumer trust.Then the Libor scandal erupted. Banksadmitted to increasing trading profits bymanipulating an interest index called theLondon Interbank Offered Rate.DefinitionThe bank category, which includesboth retail and investmentinstitutions, has been split intotwo tables, with the brands nowclassified as either global orregional. Global banks are definedas deriving at least 40 percent ofrevenue from business outside theirhome country.Both financially sophisticated consumers,and those who didn’t quite comprehendthe arcana, grasped the basic message—banks again had failed to earn their trust.Surprisingly, that didn’t seem to matter.Most banks reported strong financialresults and experienced rising share prices.The drivers included economic recoveryin the US, expansion in fast growingmarkets, internal reforms aimed atbecoming more transparent andcustomer responsive, and the success ofnew business ventures, many aimed athigh-wealth customers. Plus, consumerinertia outweighed dissatisfaction.Rebuilding trustBanks attempted to rebuild trustby reshaping communications andrestructuring organizationally. On hissecond day on the job, the new CEOof Barclays declared his intention totransform the profit-driven culture to onebased on customer service and respect.The bank experienced a 34 percent risein brand value, the second strongestresult, after Citibank, among banks inthe BrandZ global bank ranking. Theimprovement reflected both a recoveryof value and confidence that plannedchanges, including cost cutting, willunlock growth potential.Banks focused intensively on regainingthe trust of the people most debilitated byits loss—bank staff. Even ad campaignsaimed at consumers were designed tohelp lift internal morale and win back theconfidence of staff, potentially importantbrand ambassadors.In celebrating its 200th anniversaryin 2012, Citibank aimed its narrative,about funding human progress, both atcustomers and employees. Citibank brandvalue rose 37 percent. Santander alertedstaff to watch its key TV campaigns andemphasized staff’s critical role in fulfillingthe promises made in the ads.Top 10 Global BanksBrand value2013 $MBrandcontributionBrand value %change 2013 vs 20121 HSBC 23,970 3 24%2 Citi 13,386 2 37%3 Chase 10,836 3 25%4 Standard Chartered 10,160 2 1%5 J.P. Morgan 9,668 2 New6 Santander 9,232 3 8%7 Barclays 7,989 2 34%8 ING Bank 7,596 3 New9 UBS 7,429 2 New10 Goldman Sachs 7,351 3 NewValuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).80 BrandZ Top 100 Most Valuable Global Brands 201381

Part 3 | The CategoriesFinancial Institutions | BanksBanks tried to reduce the functionaldivisions of their typically siloedorganizations. They expected the simplercorporate structures to foster cooperation,increase speed and improve governance,making it easier to spot problems earlier.Growing new businessFewer siloes also enabled more crossselling as the banks introduced newsources of revenue. To drive growth in anera of low interests rates and consumerresistance to fees, banks developedrewards programs and other strategiesfor gaining additional business fromcustomers and credit card holders.Most global banks developed programsfor higher wealth customers to growincome for the client and generate fees forthe bank. While seeking immediate returnfrom their most profitable customers,banks also cultivated younger prospectswith future earning potential.Banks delivered their products andservices with improved technology.Most global banks offered simplifiedchecking deposit using mobile apps, aninnovation first introduced by Chase. Thelatest ATMs accepted checks for depositwithout paper deposit slips and envelopes.In search of new business, some bankstransformed their branches from convenientcustomer transaction points, to financialservices centers for selling investments,mortgages and other products.Direct banks competeIn the US, direct banks eliminatedthe need for any physical bankingpresence. Operating only online, theseorganizations offered consumers theadvantages of convenience and higherinterest rate returns.The direct banks appealed to an attractivedemographic of younger, higher incomeconsumers that does not feel tethered to amore traditional banking experience. Thedirect banks include brands such as Ally,Capital One 360 and USAA.In the UK, online banking options alsotook advantage of the trust deficit. Freesite MoneySavingExpert.com included inits menu of products and services adviceabout financial products.Economy, trust driveregional brand valueThe BrandZ ranking of regionalbanking leaders reflects two keytrends: the influence of fast growingmarkets; and the benefits derivedfrom building trusted brands.Four of the Top 10 regional banksbrands are Chinese. The enormoussize of their home market primarilyaccounts for their presence in theranking. The brand value percentageincrease of the Chinese banks wasstrong but more modest than forother regional bands. That’s becauseof their high brand values and theslower growth of China’s economy,which flattened share prices.Australia’s three leading banksappear in the BrandZ Top 100Most Valuable Global Brands 2013ranking. Two of the Australianbrands—Commonwealth Bank ofAustralia and ANZ—also appear inthe Top 10 regional bank ranking. Athird Australian bank, Westpac, witha slightly lower brand value, doesnot make the Top 10 regional bankcategory ranking, but it appears inthe Top 100.The presence of these banksindicates how Australia’s proximityto fast growing Asian marketshas benefited the investment andbanking businesses of the country’sfinancial institutions.The two Canadian banks, RBC andTD, received the highest BrandContribution scores of any banksin the BrandZ ranking of regionalbanks. Brand Contribution measuresthe impact of brand alone on brandvalue, exclusive of financials or anyother factors. TD was one of the fewbrands focused on serving the lowincomeunbanked.In part because of Canadiangovernment regulations, thecountry’s banks were less impactedby the subprime fiasco that hurt USbanks. Their high Brand Contributionscores may reflect residual consumertrust based on performance duringthe banking crisis. A third Canadianbank, Scotiabank, appears in theGlobal Top 100, but not in theregional ranking.The US bank Wells Fargo, whichleads the BrandZ ranking ofregional banks, received the thirdhighest Brand Contribution scorein the regional bank ranking, afterthe Canadian brands. Smoothlycompleting a large and complicatedacquisition, Wells Fargo effectivelymarried its technological strengthswith the customer satisfaction andloyalty reputation of Wachovia.Two other banks that did not quitemake the ranking of regional brandsappear in the in Top 100 MostValuable Global Brands: US Bankand Russia’s Sberbank.Motivate staffwith internalcommunicationsInsightAn emergent trend focuses oninternal communications. As serviceorganizations, banks are dependenton reputation and recommendation.If the staff who are in direct touchwith consumers lack competence,then it doesn’t matter how muchbrands spend on advertising, theywill not impress their target audience.It’s important now to motivateand refocus staff who have beendemoralized by the negative eventsin the finance category.Susan BurdenPlannerGrey LondonSue.Burden@greyeu.comTop 10 Regional BanksBrand value2013 $MInsightCreate and providecontentBrands are becoming more activein creating content and deliveringit to interested consumers via bothpaid and owned channels. Globalbanks have some advantage hereowing to their deep understandingof international markets. We expectto see more curating of contentto engage consumers aroundeconomic trends, demonstratingexpertise that’s related to consumerexperience to attract new high-networth customers.Rob McCaveGroup Planning DirectorMindsharerob.mccave@Mindshareworld.comBrandcontributionBrand value %change 2013 vs 20121 Wells Fargo 47,748 3 20%2 ICBC 41,115 2 -1%3 China ConstructionBank4 Agricultural Bankof China26,859 2 10%19,975 2 12%5 RBC 19,968 4 16%6 TD 17,781 4 22%7 CommonwealthBank of Australia17,745 3 36%8 ANZ 16,565 3 New9 Bank of China 14,236 2 10%10 ICICI Bank 14,196 1 12%Regional BanksUp 15%Valuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).82 BrandZ Top 100 Most Valuable Global Brands 201383

Part 3 | The CategoriesFinancial Institutions | BanksThe US regional banks, such as FirstNiagara, turned consumer distrust ofbanks into an opportunity by projectinglocal appeal. Many US regionals investedin customer service education for branchand call center staff.Fast growing marketsThe global bank brand leaders continuedto benefit from strength in fast growingmarkets, particularly in Asia, despitethe somewhat slowing rate of China’seconomic expansion.Lacking the legacy systems of Westernbrands, banks in fast growing marketswere freer to innovate. In India and theMiddle East, some banks acted likeconsumer goods companies, buildingbrands around customer needs. Toaccommodate families, for example,bank branches might include play areasfor children.Certain bank brands tried to create aunified consumer-friendly experienceboth online and in the physical location.Brands that took related initiatives includeZuno, an online bank that operates acrossthe Commonwealth of IndependentStates (CIS) including Russia, Sberbankand VTB of Russia, and India’s ICICI.Meanwhile, the pace of consolidationcontinued. The Commercial Bankof Qatar purchased banks in severalcountries in the Middle East, whereChinese banks also sought partners.InsightTrust can make amaterial differenceSometimes it seems as if trustdoesn’t matter in banking:consumers don’t trust banks, butbanks still make a lot of money. Thatformula misses the point. Becauseconsumers don’t trust banks, theyhedge their bets and spread theirfinancial activities beyond banks toalternatives such as mutual, PayPal,etc. So actually banks make lessmoney than they could. Only trustedbanks will capture a larger shareof customers’ assets and spend,coming much closer to reaching fullearning potential.Anastasia KourovskaiaVice President EMEAMillward Brown OptimorAnastasia.Kourovskaia@millwardbrown.comInsightCultivate the rising richMany US banks are seeking todevelop their relationship with affluenthouseholds beyond checking andsavings accounts. However, banksare challenged by satisfactory longtermrelationships with investmentinstitutions. Given the maturity ofthese existing relationships withinvestment services firms and thelow likelihood to switch providers,banks can benefit from activities thatcultivate the rising rich and help themachieve affluence.Charles SchembriProgram Director,Account Executive TNScharles.schembri@tnsglobal.comInsightsBrandZ BigDataRegional banks enjoyhigher trust levelConsumer trust in the banking categorydeclined during the global financial crisis.The restoration of trust is happeningmore quickly for regional (local) banksthan for global banks.BrandZ data measures both trust(how consumers feel about theperformance of the brand over time) andrecommendation (how consumers expectthe brand will perform today).Global banks are significantly less trustedand recommended by their customersthan regional banks. Consumer trustin the global banks is comparable totheir trust level for all banks. But inrecommendation, global banks lagall banks.The regional Top 10 are well ahead ofglobal banks in both the levels of trustand recommendation. And the levelof recommendation for regional banksactually is higher now than it was fiveyears ago.Source: BrandZ BigData, over 2 million consumerinterviews regarding over 10,000 brands in 30-plus countriesTrust and recommendationTrustRecommendation2013 Top 10 Global (vs 2008)2013 Top 10 Regional (vs 2008)2013 All banks (vs 2008)98 (-6%)94 (-1%)106 (-3%)104 (+8%)99 (-5%)97 (+1%)Action Points1. Be out front.In the past, CEOs kept a low profileconsistent with the ethos of aconservative industry. Today, the CEOis the personification of the brand.He or she is the lightning rod for theconsumers’ anger or approbation.2. Add a human touchTechnology can do a lot, but noteverything. In a commodity businesslike financial services, the humantouch adds interest.3. Be transparentDon’t always wait for regulationsto force revelations. Exerciseleadership and proactively share moreinformation. Don’t give consumersmore reason to doubt the bank’sintegrity. Do give investors moreconfidence in the bank’s performance.4. Demonstrate thought leadershipCreate content. Engage consumersby offering financial information thathelps them while at the same time itdemonstrates the bank’s expertise.5. Eliminate siloesA more open structure results intransparency that minimizes thepotential for hidden problems. It alsofacilitates cross selling.6. Communicate internallyHelp staff be knowledgeable andpositive about the brand. Stressstaff’s importance in deliveringthe brand promise. Be especiallysensitive to the morale of peoplewho interact directly with customers.SpotlightTrust in financialinstitutions growsamong affluentAttempting to rebuild trust, whicheroded during the global financialcrisis, financial institutions haveimproved transparency andcommunications.More affluent customers heardthe message. Financial institutionshave focused more on this groupas a way to grow revenue in anenvironment of low interest rates andfee restrictions.The trust that affluent householdsfelt towards financial institutionsincreased measurably in 2012,following two years without change.Increasing trust“I am confident the financialinstitutions that I do businesswith are working with mybest interests in mind”201030%20112012“I believe the financial servicescompanies and advisors thatmanage my assets are trustworthy”201020112012“I trust that the financialservices firms I do businesswith are stable and secure”20102011201229%42%41%41%43%44%54%57%Average brand = 100Source: TNS 2012 Affluent Market Research Program84 BrandZ Top 100 Most Valuable Global Brands 201385

Part 3 | The CategoriesFinancial Institutions | InsuranceInsurance brands increasinglyadopted new technology to recruit andretain customers.rates that are personalized for individualclients rather than devised for ademographic segment.Up 19%InsuranceCustomer 360-viewsReveal opportunitiesData generates new productsThey organized and analyzed customerdata to understand how the needs ofvarious life stages can signal new businessleads. This development affected bothlife and property and casualty sectors ofthe category.It represented a sea change for an industrytraditionally driven by entrepreneurialagents more incentivized to write newbusiness than sell more products toexisting customers.Until now, customer data had beenabundant but dispersed, a legacy of insureragent networks and siloed organizations.Increased analysis potentially enablesinsurers to offer products and calibrateNo company has yet integrated all itsdata into coherent and comprehensive360-views of individual customers. But itis likely that one or two top tier providerswill achieve this goal by the end of 2013.These other developments also affectedthe insurance category:TrustHurricane Sandy battered thenortheastern US in October 2012,causing as much as $50 billion indamage, which impacted propertyand casualty carriers. The hurricane’slocation, in the world’s largestmedia market, magnified anydissatisfaction with payout speed.DefinitionPriceFinancial pressures shaped consumerdecisions about discretionaryspending, turning the conversationabout life insurance to price.The insurance category includesbrands in both the business-toconsumer—life,property andcasualty—and the business-tobusinesssectors. Health insuranceis excluded.TelematicsAuto insurers experimented withtelematics. When customers agreedto have an electronic device installedin a vehicle to record their drivinghabits, the insurer could customizerates according to the results.Top 10 InsuranceBrand value2013 $MBrandcontributionBrand value %change 2013 vs 20121 China Life 15,279 3 5%2 Ping An 10,558 3 4%3 State Farm 7,881 2 1%4 AIA 6,813 2 New5 AXA 3,934 2 18%6 CPIC 3,705 2 9%7 Allianz 3,596 2 25%8 Geico 3,255 2 19%9 Travelers 2,403 3 New10 Zurich 2,174 2 15%Valuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).86 BrandZ Top 100 Most Valuable Global Brands 2013 87

Part 3 | The CategoriesFinancial Institutions | InsuranceFocused marketingMore sophisticated data analysis willenable insurers to tailor messages to theneeds of particular customers or potentialcustomers. Agents will receive more reliableleads and be paired with customerswho are more relatable according to ageand other demographics.This kind of interaction should helpinsurers more effectively differentiate andbuild their brands around service. Today,brands generally compete on price and thespeed with which they can offer consumersrate information or respond to claims.Aggregating sites, which are especiallyactive in the UK, intensify price shopping.Along with data analysis, social mediais also changing the potential—and thevocabulary—of insurance marketing.The idea of customer social lifetimevalue is supplanting the simpler notion ofcustomer lifetime value.This newer metric considers not justthe lifetime purchase potential of theindividual customer, but that potentialcompounded by the size of the customer’snetwork of contacts.Social media reaches new clientsSocial media is especially critical forreaching the uninsured and young people,often less inclined than their parents toinvite an insurance agent into their homefor a conversation about term life aroundthe kitchen table.Brands like Geico, State Farm, Allstate,and Progressive were active in socialmedia. The Internet and social mediaare transforming the traditional view ofinsurance, from being a product sold topeople, to being a product people buy.Leading brands also developed mobileapps for smartphones and tablets,particularly in property and casualty,where apps sometimes can be used tofile claims. And brands continued multichannelcommunication strategies thatincluded telemarketing and direct mail aswell as agents.Non-traditional channelsInsurers also tried to reach youngpeople and the uninsured through nontraditionalchannels. Some of thesepotential customers are more comfortablein a “third space,” neither home nor office.State Farm experimented with a storefrontespresso bar in Chicago called Next Door.Visitors can enjoy refreshments and freeWi-Fi, while gaining access to financialcounselors, with no hard sell.Efforts to reach the under-or-non-insuredincluded a program by MetLife to sellinsurance packages in a box, which begantesting in pharmacy departments at severalhundred Walmart stores late in 2012.Customers who purchase policies, whichcome with relatively low face values,subsequently call a toll-free number fora health screening from MetLife. If theypass the screening, the credit on a prepaidcard is activated. Those who fail toqualify for the insurance can either receivea refund or use the credit anywhere thataccepts Discover.Social media isespecially criticalfor reaching theuninsured andyoung people,often less inclinedthan their parentsto invite aninsurance agentinto their homeStrength in Asia,North America drivebrand value reboundThe insurance category grew 19percent in brand value, recoveringfrom a decline of 16 percent a yearearlier, when a perfect storm ofeconomic uncertainty and largepayouts depressed financial results.The brand value of German-basedinsurer Allianz bounced back 25percent, the greatest gain in theBrandZ insurance ranking, drivenby stronger performance in the USand rate increases in Germany thatimproved earnings.The brand value of Zurich, the Swissbasedinsurer, and France’s AXAgrew by 15 percent and 18 percent,respectively, following declines ayear ago. AXA made two significantacquisitions to increase its presencein fast growing markets, particularlyAsia, where it’s a partner of China’slargest bank, ICBC. ICBC-AXA Lifemainly offers medical insuranceplans for expatriates in China.The three Chinese insurance brandsin the BrandZ insurance rankingincreased in brand value comparedwith declines a year ago. Despite theslower expansion of China’s economy,all the Chinese insurers continued tobenefit from insurance demand amongChina’s rising middle class.China Life, the country’s largestinsurer, developed telemarketingand online distribution channels. Inits transition to a financial servicesbrand, Ping An continued tostrengthen its Ping An Bank andintegrated Shenzhen DevelopmentBank into its operations. CPIC, ChinaPacific Insurance Company, addednew products and attempted toimprove customer experience.Travelers appeared in the rankingfor the first time this year. The USproperty and casualty and life insurer,with the well-known red umbrellalogo, has enjoyed steady earninggrowth and share price appreciationover the past several years.AIA, established only two years agoas a spin-off from AIG, appearedin the ranking for the first time. Theinsurer’s profits increased 89 percentin 2012, based on investmentincome and operating results in its16 Asian markets, primarily HongKong and China. Its share price hasappreciated about 66 percent sincethe brand’s October 2010 IPO.88 BrandZ Top 100 Most Valuable Global Brands 2013 89

Part 3 | The CategoriesFinancial Institutions | InsuranceInsightsBrandZ BigDataAction PointsSpotlightDifferentiate withbrandInsightThere’s been a rush to incorporatebig data and the ensuing predictivemodels into every marketinginteraction. That kind of quantitativeanalysis is unquestionably valuable.But as a marketer I still need tosell one thing at a time to a humanbeing. And I need to reach thatpart of the person’s brain thatsays this company appeals tome or it doesn’t. No one has aproduct or service advantage anymore for more than 15 minutes,which means that the way youcommunicate to the individualis more important than ever. Thebranded consumer experience is theplace to differentiate: how the brandrecognizes me, talks to me and mostimportantly, listens to me.Barry KesselGlobal Client LeaderWundermanbarry.kessel@wunderman.comInsightOrganize a360-customer viewOnly few carriers now have the360-view of the customer. Theyhave the data in their systems, butthey’re unable to integrate it in auseful way. Connected data willreveal a full picture of the customer:the customer’s history, interactionsand the products that would bemost relevant today. This kind ofinformation will enable more effectiveconsumer engagement and betterinformed communication throughoutthe entire lifecycle and through allrelevant channels. When interactionsare informed, timely and relevant,customers and prospects willrespond. This will in turn improveyour overall metrics and improvecustomer satisfaction.Karen ImbrognoVice PresidentVertical Practice Leader-InsuranceKBM GroupKaren.imbrogno@kbmg.comBrand importancerising in insuranceHistorically, insurance is a lowinvolvement category with productssometimes purchased out of necessity,not choice. As a result, brand plays asmaller part in driving value.But judging by the emergence ofpowerful insurance brands in fastgrowing markets, this may not haveto be the case in future. In China, forexample, brand plays a significant partin the insurance category, according toBrandZ research.The brands from China in the Top 10Insurance category ranking outperformthe insurance brands from the US andUK in key BrandZ measurements of“meaningful” (appealing and meetingneeds) and “different” (unique in a goodway and trend setting).Source: BrandZ BigData, over 2 million consumerinterviews regarding over 10,000 brands in 30-plus countriesChina brand strengthMeaningfulDifferentChina1411581. Be selectiveIt’s not about finding every prospectout there. It’s about finding the rightprospects, those who resonate with thebrand and will remain loyal to it over alifetime, as customers for products thatfit their changing insurance needs.2. Be personalIt’s critical to reach target audiencesthrough every available channel: directmail, retail, mobile, online, telesales andagents. But the competitive advantagegoes to the brand that can connect thedata dots into a message that’s relevantand sounds like it’s for a person, nota demographic.3. Be onlineThat’s where people shopping forinsurance are likely to be. Especiallyyoung people. For them a compellingwebsite is more persuasive than a lotof brochures scattered over the kitchentable. Post reviews. People are interestedin seeing what others have to say aboutthe brand. Ratings and reviews increaseconversion rates.4. Be a first moverIn a conservative category beinga first mover doesn’t comenaturally. And, realistically, it buysa competitive advantage for onlya limited time period. First moverinnovation, supported with brandbuilding, however, can become asustained differentiator.5. Value customersIt’s difficult to measure the lifetimevalue of a customer. But on average,it costs 10 to 12 times more to gaina new customer than to retain anexisting one.6. Value customer networksIt’s probably impossible to measurethe lifetime social value of acustomer. But it can be enormous.Many customers influence largesocial networks. Inspire thesecustomers to become brandadvocates. Their networks holdtremendous long-term value.Life insurance ownershiplow in most BRICsLife insurance ownership in the BRICcountries remains at a relatively lowlevel, with the exception of India, butis likely to increase rapidly with theexpansion of the middle class.Life Insurance owners36%India14%BrazilSource: Global TGI 2012Base of 18+People who ownlife insurance7%China3%RussiaUS117107UK105109Average brand = 10090 BrandZ Top 100 Most Valuable Global Brands 2013 91

Thought LeadershipLeveraging Financial Services BrandsLeveragingfinancialservicesBrandsTo restore reputationTerry TyrrellWorldwide Chairmanterry.tyrrell@thebrandunion.comAsk a CEO of a financial services organization whetherhe cares about his brand and you will get a vigorousaffirmative nod and shown the door to the marketingdepartment where, in his view, the brand lives. Ask himif he cares about the reputation of the organization andyou will be told that it is among his top three strategicpriorities. Somehow connecting the dots between brandand reputation is a stretch that senior managers findit difficult to make. Brands are regarded as tangible—logos, advertising, branch environments—a positivereputation on the other hand is the Holy Grail thatmoves the share price. In this context your reputation isyour brand.So, against the backdrop of a catastrophic loss of trustin banks as a result of their role in the global economiccrisis, how can a brand-led approach help restoreshattered reputations?1. Differentiate through what youstand for not what you sellThere has never been a more critical time to questionwhy you exist. Are your values valued, do they guideyour behavior and do they help define the type ofexperience customers have of you? It’s not good enoughjust to have amazing products. Long-term successis dependent on a culture that is nurtured and alive.Culture is the environment in which your strategy andyour brand thrives or dies.2. Look at everything you do throughthe customer experienceMaya Angelou, the renowned American author andpoet, famously said, “I’ve learned that people willforget what you said, people will forget what you did,but people will never forget how you made them feel.”This is not about “putting the customer at the heart ofeverything you do.” It’s deeper than that; it’s about anintimate and intuitive understanding of the hierarchy ofcustomer needs and the complexities of their lives. It’sabout engaging with them not patronizing them, it’sabout delivering on those moments of truth in a waythat is personal and memorable, it’s about aligning youremployee behaviors with your customers’ behaviors andit’s about putting customers in control of their moneyand providing peace of mind.3. Employee first, customer secondCustomer experiences are influenced by interactionswith the brand across multiple touch points, peoplebeing arguably the most influential. If your employeesaren’t engaged, if they are left in limbo not knowingwhether their future is secure, if they aren’t involved withthe conversations that will determine how the bank willrestore its reputation and their role in that process, it isalmost certain that customers will sense these tensions.Brands are about promises delivered. Employees are theprimary conduits for delivering the brand promise. Theymust understand what this means every day when theyturn up for work, they should contribute to the process ofdetermining what they should stop, start and continuedoing. They must feel that they are the ambassadors ofthe brand and fundamental in the process of restoringreputation. Winning hearts and minds of your employeesand restoring their pride must come first, even beforeyour customers.4. Dull is goodBanking was never meant to be sexy or exciting. Bankswanted that, not customers. In the future, successfulbanks will focus on doing the basics well, they will bevalues driven not profit driven. Bank brands will be builtaround attributes that will build long-term advocacy andloyalty. At the forefront will be transparency, simplicity,clarity, flexibility and agility, and responsiveness.5. Crisis, what crisis?Building brands from the ashes of a catastrophic loss oftrust is akin to restoring the health of a body on a lifesupport machine. Switch the machine off in a momentof forgetfulness and the patient may never be restoredto full health. Perhaps it’s unfair to suggest that thefinancial services industry feels it can now put “the crisis”behind it and “get back to making money.”We would all like to think that lessons have truly beenlearned. The penny seems to have dropped that tweakingthe values won’t be enough. We’re talking about a culturalrevolution, a revolution where the focus must be on:Building a distinctive culture where values are valuedThinking outside the bank and identifyingwhat customer delight really meansDoing what you say, not saying what you do.Making promises that you can deliver onRecognizing that your people are your brandThe Brand Union delivers knowledge, inspirationand expertise from across the globe to build brandsthat thrive in the real world, using a balance ofbrand strategy, creativity and execution.www.thebrandunion.com92 BrandZ Top 100 Most Valuable Global Brands 2013 93

Part 3 | The CategoriesCommodities | Oil & GasInsightRoadside presencebuilds brandsWhile the downstream part of theOil & GasHigh risk, highreturn gets morecomplicatedoil and gas business is not the keyrevenue driver, it contributes tobrand building. More people visitone leading petrol station forecourtaround the world in a single daythan visit a McDonald’s outlet! Theyexperience the brand in a tangibleway. You can’t discount the potentialimpact that those impressions make(or could make) every single day.Geopolitics adds to exploration challengesA high-risk category becameeven more challenging early in 2013, withthe terrorist attack on an Algerian oil fieldand the deaths of hostages, including fouremployees of Norway’s Statoil.Less than three years after the DeepwaterHorizon oil spill disaster in the Gulf ofMexico, the attack demonstrated howpolitical instability compounds thealready difficult task of extracting naturalresources safely and responsibly.Despite slow global economic growth, themajor international oil company (IOC)brands—ExxonMobil, Shell, BP and Chevron—generallyperformed well financially.Results of the major country-ownednational oil companies (NOCs) varied.DefinitionThe oil and gas categoryincludes both privateInternational Oil Companies(IOCs) and state-ownedNational Oil Companies (NOCs).The oil and gas category lost 4 percentin brand value. The greatest decline ofall BrandZ categories, it was drivenin part by Petrobras, Brazil’s nationaloil company, which experienced its firstquarterly loss in 13 years.These other trends influenced the category:Exploration difficultyShell received US government approvalto drill off the coast of Alaska, butsuspended its operations after anaccident incapacitated one of its ships.Joint venturesTo share the potential risk of explorationin the Arctic and Siberia, leading Russianand IOC brands formed joint ventures.Focus on gasBrands shifted away from renewableenergy sources in favor of extractingnatural gas with fracking, the process ofusing hydraulic pressure to fracture rockand release gas trapped underground.NOCs experience mix resultsThe BRIC economies impacted theoil and gas category, most notablythe performance of Brazil’s Petrobras.The state-controlled company facedconflicting pressures from its mission tosimultaneously serve the public welfareand make a profit. As Brazil’s economicgrowth slowed, job creation became apriority for a government focused on therise of more people into the middle class. Bycontracting almost exclusively with Braziliancompanies to fulfill its infrastructure andequipment needs, Petrobras helped keep theunemployment rate low. But it also sustainedinefficiencies and expenses that impactedfinancial performance.Similarly, the increase in car ownership inBrazil drove greater demand for gasoline,but government controls regulated theprices Petrobras could charge at the pump.A new CEO joined Petrobras early in 2012,but not before Ecopetrol, a Latin Americancompetitor, increased its market share.Owned by the Colombian government,Top 10 Oil & GasBrand value2013 $MBrandcontributionBrand value %change 2013 vs 20121 ExxonMobil 19,229 1 5%2 Shell 17,678 1 -1%3 Petrochina 13,380 1 11%4 Sinopec 13,127 1 -6%5 BP 11,520 1 11%6 Chevron 9,036 1 5%7 Gazprom 6,182 1 -8%8 Petrobras 5,762 1 -45%9 Ecopetrol 5,137 1 New10 Lukoil 5,011 1 NewValuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).Rosie RileyGroup Account DirectorMillward BrownRosie.Riley@millwardbrown.comDown 4%94 BrandZ Top 100 Most Valuable Global Brands 201395

Part 3 | The CategoriesCommodities | Oil & GasEcopetrol appears in the BrandZ rankingfor the first time this year.Similarly, government gas price controlsimpacted the results of China’s Sinopec,which experienced a decline in net profit.Pressed by rising domestic demand,PetroChina, China’s largest oil and gascompany, continued its internationalexploration efforts, especially for naturalgas, because of the government’scommitment to improving air quality.IOCs face challengesEconomic duress in Europe and Japan,along with slower growth in China,impacted the financial results of themajor international oil and gas brandslast year. The IOCs also faced thesetwo key challenges: too few major newoil exploration projects; and too muchnatural gas, which depressed prices.ExxonMobil and Chevron, the twolargest US producers, reported strongprofits, however, based on their refiningbusinesses. Major long-term explorationInsightBrand plays a key roleReputation is internal as well asexternal. It is a driver of recruitment,motivation, retention. It includes brandequity and stakeholder relations,particularly governments and potentialpartners. And it can serve as insuranceagainst calamity. In the oil and gascategory, brand is one important partof reputation. It’s more about buildingand supporting reputation than it isabout differentiation.Adrian ZambardinoPlanning PartnerOgilvyadrian.zambardino@ogilvy.cominvestments hurt Shell’s profit. Along withthe suspension of drilling off of Alaska,Shell’s business was also negativelyimpacted by political instability inNigeria. ExxonMobil encounteredproduction problems in Kazakhstan andthe North Sea. It acquired a Canadianexploration business to access gas depositsin the shale rock of Western Canada.Chevron, among the brands mostengaged in fracking to extract shale gasin Europe, acquired a major stake in aprivate Lithuanian oil and gas company.Environmental concerns limited fracking inFrance and other parts of Western Europe.Ventures with Russian brandsThe need to combine technical expertiseand potential reserves produced severalcollaborations between IOCs and Russianbrands. In joint ventures formed withRosneft, ExxonMobil will explore severalArctic off shore locations and Siberianfields, and Rosneft will gain access toseveral ExxonMobil fields in Texas.In a deal with BP, Rosneft purchased theBritish-owned oil and gas brand’s Russianholdings, TNK-BP, and BP increased itsstake in Rosneft to about 20 percent. Thecompanies expected the new relationshipto increase exploration capability andproduce operating synergies.Russia’s Gazprom worked on a long-termdeal to meet China’s growing gas needs.Gazprom supplies a significant amountof Europe’s natural gas. The EuropeanUnion targeted the company for anticompetitivepractices. Gazprom’s stockprice declined.Higher prices drove a 6.2 percentincrease in net income to $11 billionfor Lukoil. Russia’s second largest oilproducer appeared for the first time in theBrandZ ranking of oil and gas brands.Expansion depends onbrand and reputationReputation was the critical currencythat the international companies reliedon when negotiating with governmentsfor exploration rights. Brand remainedthe consumer-facing expression of thecompany in its retail gas station locations.Shell operated 44,000 retail locationsworldwide, for example, roughly 10,000InsightCultivate reputationExploration is increasingly difficult andhappening in environmentally sensitiveplaces like the Arctic. Given thetension between wanting to protectthe environment and the desire forthe energy to keep the lights on, it’slikely that any problems will generatesignificant attention. Reputation canhelp moderate public opinion.Rob AlexanderGlobal Planning DirectorJWTrob.alexander@jwt.commore than McDonald’s. Sinopec controlledabout 29,000 gas stations, mostlyin South and Eastern China.While the financial impact of these downstreamoperations may be less criticalthan the benefit derived from upstreamexploration and refining, brand presenceis significant. Generally, oil and gas companiesviewed their petrol station businessesas cash generators for supportingthe huge expense of exploration.Brand becomes especially importantas oil and gas companies establishthemselves in countries and attempt tobe understood as good local citizens.Typically companies aim advertising atinfluencers and engaged audiences.Shell, which has operated in Iraq forabout five years, but has a long-termcommitment in the country, introduceda marketing campaign aimed at theIraqi public. Launched late in 2012,the campaign positioned Shell as acontributor to the country’s wellbeing, notsimply an extractor of its resources.InsightsBrandZ BigDataBrands draw investorpraise, consumer scornThe oil and gas category has a polarizingeffect. Business people and investorssurveyed in the BrandZ research ratethe top brands as an excellentinvestment, while acknowledging theless than attractive public image ofthe industry.Consumers, hugely influenced by theincreasing price of gas at the pump,and concerned about the environment,are generally quite negative about theoil and gas category brands, sayingthey are “arrogant,” “uncaring” andeven “dishonest.”The multinationals attract mostopprobrium and achieve very lowlevels of “trust,” while the national oilcorporations score well above average.Source: BrandZ BigData, over 2 million consumerinterviews regarding over 10,000 brands in 30-plus countriesAction Points1. InnovateInnovation implies technologicalcompetence. That means notjust doing something on time, butalso doing something no otherorganization can do; something that’snever been done before. That kind ofinnovation attracts the best workersand helps win major contracts.2. Develop partnership skillsThe cost and complication of oiland gas exploration means that onecompany alone seldom completesa major project. Success requireseffective partnership. It’s importantto be known for reliably delivering onpromised work on time, on budgetand with a high degree of excellence.3. Support local businessesIt’s a good thing to do. And it’ssmart. When working internationally,supporting local businessesimproves good will and reducescosts. And it’s much cheaper thanflying everything in from the otherside of the world.4. Help local communitiesIt’s another cost of doing business.To be successful, a long-termbusiness engagement requires acomplementary commitment toimproving local living conditions withinvestments in health care, educationand other underfunded needs.SpotlightBRIC consumers willcompromise to helpenvironmentA majority of consumers in Brazil,India and China say they are willingto consider the environmental impactof their lifestyle choices and makecompromises if necessary. A lowerproportion of European consumerssay they are willing to compromise.The contrast may reflect the greaterenvironmental challenge in fastgrowing markets as well as theremediation and regulation alreadyin place in Europe.Willing to compromise65%IndiaAny who agree:“ I am prepared to makelifestyle compromises tobenefit the environment”60%BrazilSource: Global TGI 2012(Europe: UK, France, Germanyand Spain)58%China42%Europe96 BrandZ Top 100 Most Valuable Global Brands 201397

Thought LeadershipTotal Disruption at RetailTOTALDISRUPTIONAT RETAILDigital impacts everything 24/7/365Anne ZybowskiVice President – Retail InsightsAnne.Zybowski@kantarretail.comMany retailers and suppliers measure theimpact of e-commerce on retail by the percent of totalsales it represents, often dismissing it as “growing, butsmall.” The challenge to this burying-head-in-the-sandapproach is that online behavior is sticky and today100 percent of shopping experiences are impacted bydigital. Companies must approach digital with a 100percent impact lens, as a digital ROI based solely one-commerce just measures the tip of the iceberg.Digital ImpactKantar Retail’s 10/50/100 framework crystallizesthe true impact of digital on the retail landscape. Fororganizations struggling to come to terms with digital,the disconnect starts with the common misconceptionthat digital’s impact on a business is representedby the e-commerce share of total sales. As the10/50/100 framework illustrates, the impact of digital ismore significant:10 percentSales E-commerce sales are reaching criticalmass. Growing quickly and surpassing 8 percentof total retail sales in the US and the UK in 2012,e-commerce will soon represent 10 percent of overallsales. When one of every $10 spent is online, itmatters—even if your products may be part of the90 percent purchased offline. Online behavior issticky and shoppers are developing new habits.50 percentInfluence A number of Kantar studies across a widerange of categories suggest that online influencesover 50 percent of total retail sales today. Asshoppers leverage social media and digital toolsto help research, plan, and shop, online impactsone of every two purchases fulfilled in the physicalstore. With 50 percent of sales influenced by online,but only 10 percent purchased, which is the realshowroom? Bricks and mortar stores, or Amazon?100 percentImpact Online experiences and new shopping behaviorhas 100 percent impact on all shopping experiencestoday. Even if a shopper goes into a store to purchase,the penalty for out-of-stocks is significantly higherwhen the item could have been purchased onlineor on-the-go without setting foot in a store. Digitalhas 100 percent impact on how everything is boughtand sold today. And understanding this impact onshoppers is a critical insight required to go to market.The Amazon catalystWhile the impact of digital is broader than Amazon,Amazon is the dominant online player as measured bytraffic (eyeballs) and sales, and is also the most valuableretail brand in the 2013 BrandZ Most ValuableGlobal Brands ranking. With over 200 million customersworldwide, not to mention the millions of shoppers thatuse Amazon for research to help make the purchasedecision, Amazon shopping continues to shape shopperexperiences and set new standards for retail.Bricks and mortar retailers describe their competitiveadvantage based on physical proximity as “immediate,”but the Amazon value proposition gives this word newmeaning. Immediate—does it mean at this moment, or inthe next hour? For many Amazon shoppers, “immediate”Digital Impact10% of retail salesInfluenceon purchase10%Source: Kantar Retail analysis50%Impact on shoppingexperienceThe impact of digitalextends well beyonde-commerce100%means ordering an item with one click today and havingit delivered in one-to-two days to their doorstep.Ratings and reviews have been the hallmark of theAmazon shelf since it launched as a book retailer in1994. Today, those ratings and reviews are criticalinfluences to purchases with reviews by strangers oftenmore influential than input from a brand, retailer, salesassociate, or friends and family. They exert so muchinfluence, many shoppers will not purchase a productwithout ratings. And bricks and mortar retailers arelooking for ways to bring reviews into the store to assistin closing the sale.The Amazon share of mindShopping frequency and the Amazon experience isanother Trojan horse, as frequency breeds behavioralloyalty. According to Kantar Retail’s Shopperscape®,18 percent of US primary household shoppers—and31 percent among Gen Y/Millennial shoppers—shopAmazon weekly. This frequency results in changes inboth shopping and purchasing behavior.Shopping and purchasing rates vary across 30 categoriestracked, with women’s apparel topping the list forboth shopping and purchasing rates. Remember whenconventional wisdom was that apparel would never bepurchased online because people need to see, touch,and try on clothing? Both shopping and purchasingrates increase dramatically among those who shopAmazon monthly.Amazon Prime members are especially loyal. Thesemembers pay $79 per year in the US for two-day freeshipping plus unlimited access to Amazon InstantVideo and monthly Kindle book rentals. According toKantar Retail’s’ Shopperscape®, as of December 2012,14 percent of US primary households were AmazonPrime members. These members trust Amazon anddramatically expand their share of wallet and categoriespurchased once becoming members.As Amazon strengthens the Amazon Prime ecosystemwith more value-add services, the retailer continues togrow more than larger share of wallet—it grows largershare of life; presenting challenges—and lessons indigital retailing—for retailers worldwide.Challenges of retail brandingin an omni-channel worldShoppers’ expectations of the retailer brands havegrown significantly, yet retailer capabilities have not keptpace. Shoppers are omni-channel—leveraging channels,devices, and touch points to connect with retailers.Retailers are multi-channel. Building retailer brands ischallenging in the best of circumstances. This growinggap makes it more difficult.Great marketing and advertising can often make abrand, but retailer brands are unique. Retailer brandsare experiential and inextricably tied to the manifestationof the brand within the four walls of the store. Retailersare notoriously risk-averse because they understand theimpact that a negative experience can have on theoverall brand.Historically, retail brands have been built around threemain pillars: the manifestation of the brand in store;representation (marketing) outside the store; andconversation with shoppers (often via loyalty cards, and/or customer service). In today’s digital world there aretwo shifts happening that make it more challenging forretailers to deliver on their brand promise:1. There is another store, an e-commerce store. For 99percent of multi-channel retailers, there is a fundamentaldisconnect between the physical store brand andexperience vs. the one online. Retailers continuing toignore this disconnect should be reminded that yourbrand is only as good as its weakest link.2. Each one of the three brand pillars has a traditional anddigital component. How should retailers manage the mix?Take representation of the brand outside the store as anexample. Processes and organizations have been builtaround traditional media (TV, print, circulars, etc.).How should retailers incorporate digital media intothe mix? Easier said than done. From a conversationperspective, how does a retailer incorporate social mediainto the relationship with shoppers and engage in atwo-way conversation?From the store to the retailer brand, digital has 100percent transformed the way shoppers engage withretailers and elevate their expectations of retail brands. In2013, it will be critical for retailers to invest significantlyin building multi-channel capabilities to reduce the gapbetween how customers shop and how retailers sell; tofulfill customer expectations of the retailer brand andgrow brand value.Kantar Retail is the world’s leading shopperand retail insights and consulting business.The agency works with over 400 clients and has20 offices in 15 markets around the globe.www.kantarretail.com98 BrandZ Top 100 Most Valuable Global Brands 2013 99

Part 3 | The CategoriesTechnology | TechnologyTechnologyConsumerIncremental changeIn innovative categoryThe brand value of the technologycategory remained flat, down 1 percentcompared with a rise of 2 percent ayear ago.A period of product iteration rather thaninnovation failed to excite consumers orinvestors. The latest tablets sold well, butdid not inspire like the inaugural iPad.The fortunes of brands changed suddenlyand unexpectedly. Skepticism aboutApple depressed its share price. AfterFacebook’s much anticipated IPO, itsstock dropped dramatically. Meanwhile,Samsung enjoyed a 51 percent rise inbrand value on the sales success of itsmobile devices.Social media’s popularity drove the brandvalue of China’s Tencent up 52 percent.Yahoo! joined the BrandZ Top 100Most Valuable Global Brands after theappointment of a new CEO, from Google,lifted expectations. This development,along with Yahoo’s investment in theChinese e-commerce site Alibaba, helpeddrive the share price and the appreciationof brand value.These developments happened in a complicatedenvironment characterized bythese trends:Ubiquitous technologyThe cloud, mobile and social mediaenabled people to seamlessly integratetheir personal and business lives.Iterative changeTo beat competition to market,brands introduced products thatwere more iterative than innovative,but which offered features intendedto entice consumers to trade up.Consumer sophisticationNew and shiny was not enough.More knowledgeable and discerningconsumers, acting as if theyheaded personal IT departments,expected a reasonable return ontheir technology investments.DefinitionThe technology category includesbusiness-to-consumer and businessto-businessproviders of hardware,software, portals, consultation andsocial media platforms. The diversityof the technology category reflectsthe convergence occurring as brandsdevelop integrated systems ofproducts and services.Brand values fluctuateTop 20 TechnologyBrand value2013 $MBrandcontributionBrand value %change 2013 vs 20121 Apple 185,071 4 1%2 Google 113,669 3 5%3 IBM 112,536 3 -3%4 Microsoft 69,814 3 -9%5 SAP 34,365 2 34%6 Tencent 27,273 4 52%7 Samsung 21,404 3 51%8 Facebook 21,261 4 -36%9 Baidu 20,443 5 -16%10 Oracle 20,039 2 -11%11 Accenture 16,503 3 2%12 HP 16,362 2 -29%13 Intel 13,757 2 -12%14 Siemens 12,331 1 16%15 Cisco 11,816 2 -11%16 Yahoo! 9,826 3 New17 Sony 7,786 3 -9%18 Dell 4,939 2 -25%19 Philips 4,739 2 New20 Canon 4,539 2 -33%Down 1%Valuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).100 BrandZ Top 100 Most Valuable Global Brands 2013101

Part 3 | The CategoriesTechnology | TechnologyToy or toolTechnology made life less compartmentalizedand location irrelevant. Peopleworked and conducted personal businessinterchangeably at their job, at home, ata coffee house, anywhere. This blendinginfluenced the ongoing transformation oftechnology in the workplace.Initially shaped by business use andthe requirements of corporate ITdepartments, the technology categorybecame increasingly “consumerized.”People who enjoyed speed and simplicityin their use of technology at home expectedno less at work. Their impatience with ITmystique led to a broader acceptance ofBYOD, Bring Your Own Device.Microsoft introduced Windows 8 tohelp consumers integrate their privateand business lives. Some brands, likeDell, introduced convertible devicesthat worked as both laptop and tablet.A typical business traveler might workon a laptop, a tool, and then take anentertainment break to view a movie on atablet, using it as a toy.Apple remains number oneBased on underlying brand strength,Apple remained the most valuabletechnology brand, despite a steep dropin share price. The stock declined afterApple fumbled the introduction of iPhone5. The replacement of Google Maps witha troubled Apple version ignited investorconcern that the brand’s capacity forcreative design and smooth executionended with the death of founder Steve Jobs.Google benefited from that skepticism.As Apple stock fell, Google stock rose torecord highs. The share price appreciatedbased on the performance of Google’smultiple businesses including: ad revenuefrom online search, the market dominanceof its Android operating system for mobiledevices, and the ubiquity of Gmail.The increase also reflected confidence inGoogle’s potential to enter and quicklyassume leadership in other technologybusinesses. With a 5 percent hike in brandvalue, Google became the second mostvaluable global brand across all categories,after Apple and just above IBM.Apple’s weakness also helped Samsung,although Samsung also helped itself.Samsung’s brand value rose sharplyprimarily because of its Galaxysmartphone. Consumers responded wellto the product experience and also tocommercials that positioned the deviceas the choice of the young and hip, whilepoking fun at Apple iPhone as the brandchoice of the parents.Competing ecosystemsApple’s future depends on more thanwho makes the best devices, however. Theconsumer brand universe is divided intotwo groups: those that produce productsand services; and those whose productsand services exist as part of the brand’splatform or ecosystem.This second group of brands includesApple and Google along with Amazon,Facebook and Microsoft. Each brandrepresents an ecosystem of brandeddevices, an operating system, and content.Amazon, for example, sells the Kindle,but the device is part of the largerecosystem that includes content in theform of e-books, music, movies, and arepository of product information andcustomer opinions stored in the AmazonCloud. (Because Amazon derives most ofits revenue from e-commerce, the brand islisted in the retail category ranking.)Facebook Home, introduced in March2013, is actually software that fits overan Android platform, preempting otherapps. Phones loaded with the softwareopen to the Facebook newsfeed. AlthoughFacebook Home isn’t a device, it acts likeone, making all of Facebook’s contentinstantly mobile, not even a click away.A fundamental distinction regardingecosystems is whether a system is open—generally accepting of applications fromother brands—or closed. Part of the skepticismsurrounding Apple was the notionthat its closed system advantage—qualitycontrol and consistent performance—erodes as devices reach rough parity inquality and reliability. That formulation,however, discounts the intangible holdthat Apple may have on adherents drawnto its combination of product innovation,design leadership and retail presence—tothe overall Apple brand experience.InsightExpect more regulationThe technology category is movingtoward saturation, and successfulcompanies have to be useful toconsumers without being intrusiveor irritating. At the same time, similarto the way the US governmentintervened after companies becamerich during the Gilded Age, we’llsee more regulatory and politicalconcern around these rather largeorganizations.Andrew CurryDirectorThe Futures CompanyAndrew.Curry@thefuturescompany.comChinese brands shift, tooThe value of technology brandsfluctuated in China as well. In contrastto the decline of Facebook’s brand value,the band value of its Chinese equivalent,Tencent rose 52 percent, making it oneof the Top 10 Risers in the BrandZ Top100 Most Valuable Global Brands.Tencent reports almost 800 million activeusers of its QQ instant messaging servicein China. But the brand value increasewas in part driven by excitement aroundWeChat, which enables users to send bothvoice and text messages from the mobiledevices over the Internet, avoiding SMScharges, similar to WhatsApp.In contrast to Tencent’s brand valueappreciation, Baidu declined in value 16percent. China’s dominant search engine,with an estimated 75 percent marketshare, invested to position the brandfor the transition from PC to mobile.The investment lowered earnings andimpacted the share price.Based onunderlying brandstrength, Appleremained themost valuabletechnology brand,despite a steep dropin share price afterApple fumbled theintroduction ofiPhone 5InsightBlending is a key trendWe had fixed day parts to our lives.At breakfast we’d consume media asa consumer. At work we’d consumemedia as a businessperson.At lunch we’d be a human beingand eat and run errands. There’sbeen a blending of being aconsumer and businessperson.Brands need to facilitate blending,not present barriers.Spencer OsbornWorldwide Managing DirectorGlobal Brand ManagementOgilvy & Matherspencer.osborn@ogilvy.comTechnologyBusinessSome brands riseOn cloud, big dataOthers pulled by gravity of changeConvergence again influencedthe fate of technology brands—but in adifferent way.The need to analyze enormous amountsof information to drive businesstransformation converged with growingcorporate willingness to make ITinvestments deferred during the recession.Ready with pricing approaches theyhad devised to cope with the economicslowdown, brands improved theaffordability of their products and servicesby offering more flexible, incremental, orsubscription options.Some brands quickly discoveredopportunities in the rapid shift in datastorage from on-location to the cloud,while other brands faced intensifiedchallenges. Innovation remained key tobrand success.Faster data analysisSAP experienced a 34 percent rise inbrand value and an increase of almost30 percent in its average share price. Theperformance coincided with SAP’s shiftin focus from helping customers becomemore efficient to helping them transform.The change was most evident in SAP’sin-memory offering, which it calls HANA.In-memory computing makes access todata stored in diverse corporate siloesmore instantaneously available to morepeople. For example, it enables a salesperson to interact with a customer whilechecking a tablet for the individual’spurchase history and the company’sinventory levels. This technology canimprove not only business efficiency, butalso customer experience.Oracle offered a version of in-memorycomputing called Exalytics. The companywas one of the early pioneers in businessdata analysis thirty years ago when it introducedrelational databases. Relationaldatabases organize data into tables thatthe user can combine in various ways dependingon business function. Oracle remainsa powerhouse in its core business,but faced mounting competition fromyounger companies that claimed to befaster and cheaper at organizing big data.Slower European salesSiemens experienced a challenging yearfinancially because of the economicslowdown in Europe, a key market. Latein 2012, it announced a companywideprogram of cost control, organizationalsimplification and other measuresexpected to move Siemens forwardeffectively over the next few years.Siemens divides its business into foursectors: healthcare; industry; energy; andinfrastructure and cities.Siemens experienced a well-publicizedsuccess for a business it calls VerticalIT, which is the technology that enablesintelligent machines to interact witheach other; to have a series of assemblylines coordinate for maximum efficiency,for example.The Mars Rover, which landed on Marsin July 2012, was built based on a virtualmodel designed and tested using SiemensVertical IT software. Siemens’ brandvalue improved 16 percent.Adjusting for growthIBM’s 2012 revenue from its SmartCloud,which is aimed at business clients,increased 80 percent, amid suggestions102 BrandZ Top 100 Most Valuable Global Brands 2013103

Part 3 | The CategoriesTechnology | Technologythat SmartCloud would become asubstantial long-term business. IBM’sSmarter Planet initiatives continued toassign technology to a higher purpose asan agent for creating a better world.With its core business devoted to linkingdevices to networks, Cisco adapted to aworld of wireless and cloud computing.The company continued to report strongfinancial results, even as it moved awayfrom hardware, to software and services.The shift to the cloud and mobilenegatively impacted some of the premierbrands in the technology category. Oftenfounded by visionaries who caught theearliest waves of computing technology,the brands too often became narrowlydefined, and constrained, by the devicesthat led to their initial success.Cloudy forecastsThe world’s number one laptopmanufacturer, and a leading name inprinters and servers, HP, struggled tofind a viable proposition as the cloud castits shadow on devices. HP’s brand valuedeclined because of pressure on earningsas the company experienced slower salesand invested for a turnaround.Intel, the leading maker of semiconductorchips used in laptops, continued to investin research, looking to apply its corebusiness expertise in new ways, such asdeveloping chips for high performancecomputing on mobile devices.Microsoft launched Windows 8, anoperating system for working on both PCsand tablets. It also introduced SurfacePro, a hybrid device with the lightweightand touch screen benefits of a tabletcombined with the power and softwaresuite of a laptop.In contrast, faced with heated competitionin its consumer business, the DutchownedPhilips sold its consumer productsdivision to Funai Electric of Japan to focuson expanding its business-to-businessstrength. The move strengthened thebrand’s position, and Philips appeared inthe BrandZ technology ranking for thefirst time.Some brandsquickly discoveredopportunities inthe rapid shift indata storage fromon-location tothe cloud, whileother brandsfaced intensifiedchallengesBrandZ Top 10 brandsattract growing interestThe last five years have seen growingreliance on technology and its integrationacross all sectors. BrandZ data showthat consumer interest in the Top 10technology brands has rocketed duringthat period.The number of people reporting thatthey sought information about one ofthe BrandZ Top 10 technology brandsrose 49 percent over the past five years,compared with a 26 percent rise for theTop 100 brands across all categories.At the same time, the average mediaawareness of the BrandZ Top 10technology brands increased 23 percent,while slipping 3 percent for the Top 100brands. Budget shifts and greatermedia efficiency have benefittedtechnology brands.Source: BrandZ BigData, over 2 million consumerinterviews regarding over 10,000 brands in 30-plus countriesGrowth in consumer interest(2009 to 2012)Top 10 TechnologyInsightsBrandZ BigDataTop 100 all categories26%49%Action Points1. Deliver utilityProvide products and services thatpeople actually need and can depend onfor their efficacy.2. Protect trustIn a socially connected world, brandviability depends the implicit contractwith customers who supply personalinformation in exchange for a product orservice of roughly comparable value. Thecontract is both vital and fragile. Whenviolated, it’s hard to restore.3. Make more than moneyAdvancing a mission beyond profitabilityis not only good citizenship, but alsocompetitively advantageous. It deepensbrand appeal to consumers andinvestors. And it distinguishes the brandin the quest for the best and the brightesttalent. This category is especially wellpositioned to accomplish these goalsbecause of technology’s power toimprove lives.4. Be socially consciousPeople are more mindful that theirpurchasing activities have consequences—good and bad—across the globe. Youngpeople entering the work force prefercompanies that adhere to a Hippocraticoath—Do no harm. The prescriptionapplies across most categories, but it’scritical in technology, because of thecompetition to attract the most highlymotivated, brainy young people.5. Be simpleConsumers move fluidly back and forthbetween their business and privateselves. Or they might be in both spacessimultaneously. They expect theirtechnology to move with them.Make it easy for customers to moveamong aspects of their lives withoutwaiting for technology to catch up.6. Innovate effectivelyAll technology companies innovate.It goes with the territory. But allinnovations are not equal. The mostsuccessful innovations need to berelevant to the customer, add value andbe well timed. The best innovations adda sense of discovery.7. Cultivate permissionThere’s often a time gap betweenconsumer expectation and the brandinnovation. Brand strength gainsconsumer permission for the gap toexist. Consumers tend to be morepatient with brands known for continuoustransformative innovation.8. Be consistentStand for something. Don’t keepreinventing the brand. Constantreinvention too often is symptomaticof brands that lack a deep sense ofidentity and instead shape their identity inreaction to the competition.9. Change constantlyBe consistent about who you are, butchange what you do all the time tomeet the needs of consumers and thedemands of the market.10. Harness optimismDespite the impact of the recent financialcrisis, technology still inspires people tofeel that future possibilities are infinite.Brands associated with that belief benefitfrom its momentum.SpotlightTablet ownership by laptopowners varies by countryThe likelihood that a laptop owneralso owns a tablet varies by market.In the UK, a high proportion ofthe population, 60 percent, own alaptop. Of that group 19 percent,also a relatively high proportion, owna tablet. In contrast, 41 percent ofJapan’s population own a laptopand just 2 percent of that groupalso own a tablet. In South Korea,only 23 percent of the populationown a laptop, but a relatively highproportion of those laptop owners,12 percent, also own a tablet.Laptop ownerswith tablets60%19%UKTotal population that own a laptopLaptop owners that also own a tablet53%12%France49%9%US45%5%Italy44%9%Germany41%2%Japan23%12%South KoreaSource: Global TGI 2012104 BrandZ Top 100 Most Valuable Global Brands 2013105

Part 3 | The CategoriesTechnology | Telecom ProvidersUp 1%Telecom ProvidersEcosystems evolveFrom talk to realityTelecoms expand missionTelecoms outgrew their name.Voice communication—the very activitythat defined telecoms—grew more slowlythan other types of data transmitted ontelephones and other mobile devices thatpeople used to organize their lives.This change followed development ofcommunications ecosystems that integratethe creation of digital content, itsdistribution over networks, and deliveryon mobile and stationary devices.For telecoms, the ecosystems presentan opportunity to expand their narrowdistribution utility. Telecoms soughtpartnerships and acquisitions to brandcontent or devices and engage moreclosely with the end consumer. Sometelecoms companies attempted to formtheir own branded ecosystems.The existing ecosystems were organizedaround the largest consumer technologybrands— Apple, Google, Amazon, Microsoftand Facebook—because they offeredthe full menu of content, distribution,and devices.In the context of this transformation, brandvalue of the telecom providers overall roseonly 1 percent last year, but the increasefollowed a 7 percent decline. These othertrends also characterized the category:Monetizing dataTelecoms attempted to monetizethe information they have aboutthe preferences of their customers,as regulations allowed.Mobile paymentIn emerging markets, telecoms oftenleapfrogged banks to become theproprietors of mobile payment solutions.ConsolidationMergers and acquisitionscontinued to rationalize thecategory in mature markets.Global scaleIndicative of the scale of the telecomcategory, the first four brands in theBrandZ telecom ranking—AT&T,China Mobile, Verizon and Vodafone—also are among the Top 20 most valuableglobal brands across all categories.With the purchase of Cable & Wireless,Vodafone positioned itself for convergence.It gained greater capacity for servingbusiness clients and a fiber-optic networkin the UK that strengthened its positionagainst BT. BT entered the ranks of theBrandZ Top 100 Most Valuable GlobalBrands this year, although it fell just shortof the Top 10 telecom category ranking.DefinitionThe telecom provider categoryincludes brands that primarilydevelop, maintain and markethardwire or wireless infrastructurenetworks for voice and datatransmission.Top 10 Telecom ProvidersBrand value2013 $MBrandcontributionBrand value %change 2013 vs 20121 AT&T 75,507 3 10%2 China Mobile 55,368 3 18%3 Verizon 53,004 3 8%4 Vodafone 39,712 3 -8%5 Deutsche Telekom 23,893 2 -11%6 Orange 13,829 2 -10%7 Movistar 13,336 2 -22%8 MTN 11,448 3 23%9 MTS 10,633 3 11%10 Airtel 10,054 3 -13%Valuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).106 BrandZ Top 100 Most Valuable Global Brands 2013107

Part 3 | The CategoriesTechnology | Telecom ProvidersAs the provider of communicationsservices for the 2012 London SummerOlympics and Paralympic Games, BTincreased its profile worldwide. Thebrand invested in developing fiber-opticbroadband infrastructure in fast growingmarkets to offer customers globallymanaged IT networked services. BTgenerates an increasing percent of itsrevenues from outside of the UK.The need to compete effectively alsoproduced these other corporate hookups:the purchase of 70 percent of Sprintby the Japanese telecom SoftBank andT-Mobile’s acquisition of MetroPCS.InsightThe second screenphenomenonThe second screen phenomenonis a key driver of the Age of Data,especially on the consumerside. Fueled by growing deviceecosystems and a wide array ofvideo programming, consumerdata consumption has growngeometrically. Key to this issimultaneously viewing—peoplewatching TV while using a tabletto interact with the TV show orcommunicate about it with friends.Similarly, data consumption in thebusiness community has grownin leaps and bounds, as wholeindustries (e.g. Healthcare) movetheir operations to digital platformssituated in the Cloud.David KeefeSenior Client DirectorLandor AssociatesDavid.keefe@landor.comRegional variationsBrand value changes varied by geographicregion. MTN, a SouthAfrican multinational brand, rose 23 percentin brand value, the greatest appreciationin the BrandZ telecom category.The brand, which operates throughoutAfrica and in parts of the Middle East,enjoyed strong revenue and earningsgrowth following a 15 percent increasein subscribers and a 58.5 percent hike inrevenue derived from data.China Mobile, China’s most valuablebrand, across all categories, increased18 percent in value. As the expansion oftelecommunication networks continuedto accelerate in China, China Mobilewon more 3G subscribers than its rivalswith its aggressive marketing strategy.Responding to a dramatic increase inmobile data transmission, the brandlaunched its Wireless City Wi-Fi dataplan in more than 300 cities last year. Itis also expanding its 4G network.Russia’s largest telecom, MTS focusedon operational improvements that helpeddrive a profit increase. In a strategicinitiative to leverage its retail presenceof 4,200 locations and extend financialservices to Russia’s large population ofunbanked consumers, the brand hasrecently increased its interest in MTSBank, the majority of which is still ownedby their common parent Sistema.Europe’s economy depressed results forDeutsche Telekom, Orange, and Spain’sMovistar, while Japan’s NTT DOCOMOfelt the effects of slow growth in Japan.Differentiation and trustTelecoms implemented strategies todifferentiate and compete effectivelyagainst each other and over-the-topchallengers. These operators, such asSkype, Google, and increasingly appbasedbrands like Viber and WhatsApp,enable consumers to make free calls overtelecom networks.Some of the telecom providers—Verizonand BT are good examples—attemptedto transform from being conduits of datainto diversified technology businesses,providing software solutions, dataintegration and consulting services.These kinds of offerings potentiallyembed telecoms more deeply into the livesof customers.The rise of telematics is an importantrelated opportunity for telecoms.Telematics is about the Internet ofthings, the automatic gathering, storingand transmitting of data betweensmart machines. Telecoms benefit fromthis development because they are theconduits of the data, but they also face alarger opportunity.Telematics is a growing factor in healthcare,automotive, insurance, educationand other businesses. Insurers, for example,use telematics to record individualdriving habits and set customized ratesbased on the data. Telecoms potentiallycan play a role in the entire process, includingthe data gathering, transmissionand data analysis stages of telematics.Consumer focusIn addition to the business-to-businesstelematics opportunities, telecoms alsosought new revenue-generating businesseson the consumer side, in the growth of thesmart home concept, for example.Using mobile phones, consumers canregulate the heating and cooling of theirhomes or adjust the settings of appliances.Each interaction draws down data anddrives revenue for a telecom.Second screen, or simultaneous viewing, wasone of the biggest trends driving consumeruse of data. The term describes the growinghabit of watching TV on a large screenwhile interacting about the broadcast ona small-screen device, perhaps messagingwithin a social network.Recognizing this trend, AT&T introduceda program it calls Mobile Share, inwhich customers pay for talk and text ona phone but can share any data on alltheir mobile devices for no extra charge.Verizon led with an offering it calls theShare Everything plan. Verizon alsoadvanced its 4G LTE network.Leaders strengthen theirbrand equityThe essential and pervasive natureof communications in our lives hasshown up in the BrandZ research inthe dramatic increase in brand equitystrength among the top telecom brands.Eight years ago, the top brands were lesscharacterful, desirable and distinct onefrom another.Today, the Top 10 most valuabletelecoms are much more “meaningful,”(appealing and meeting needs),“different” (unique in a good way andtrend setting) and “salient” (famous,stands out) than other brands in thecategory. In these key aspects of brandequity that drive sales, the Top 10telecoms also outperform the Top 100Most Valuable Global Brands overall.Source: BrandZ BigData, over 2 million consumerinterviews regarding over 10,000 brands in 30-plus countriesKey aspects of brand equityMeaningfulDifferentSalientTop 10 Telecoms brandsAll Telecoms brandsAll Top 100 brandsAverage brand = 100InsightsBrandZ BigData9697104115120131128131145Action Points1. Tell a storyStory telling is important for allbrands, but particularly thosein a category for a long timedefined by a short story aboutpipes delivering voice and data.Tell a more up-to-date story. Thestory needs to be clear so peopleunderstand it, compelling sopeople want to act and credible,meaning that it sounds rightcoming from the brand.2. Be differentIn a commoditized business,tangible delivery of brandexperience is requisite. It’s likean airline. Consumers expect theplane to fly and get them there ontime. There are tangible, rationaldeliverables that are required.Then there’s service around howthe customer gets connected, thein-store experience. Then there’saccount management and anyloyalty incentives. Differentiateyour service to drive brand value.3. Stress servicePeople’s lives are busy enough.They want an experience,a promise that they’ll geteverything—cable, phone andInternet. When the experiencemeets their expectations theywon’t think of the provider asa utility. They’ll connect withthe brand.SpotlightHow consumers use mobilephones varies by countryAcross the world, people usetheir mobile phones mostly for itsprimary purpose, to make calls. Thefrequency with which people useother functions varies by country.The camera is always important.After that, differences may reflect theequipment available to consumers aswell their daily priorities. Recreationaluse seems higher in the BRICs.Cell/mobile phonefunctions used recentlyUSText messagingCameraEmailPicturemessagingWebbrowsingGamesIndiaGamesCamera9%Bluetooth15%Text messagingCameraMP3 PlayerBluetoothRadioBrazil21%19%19%21%18%15%Speaker phoneRadioGamesMP3 Player29%26%25%24%21%20%Source: Global TGI 201232%38%35%52%108 BrandZ Top 100 Most Valuable Global Brands 2013109

Part 4 | The Fast Growing Markets126...Russia116...China122...IndiaPart 4The FastGrowingMarkets112...Brazil110 BrandZ Top 100 Most Valuable Global Brands 2013111

Part 4 | The Fast Growing MarketsBrazilBrazilGlobal economy, Brazilmonetary policy impact brandsValue growth or decline varies by sectorThe promise of Brand Brazil met thereality of slower growth.The overall brand value of the BrandZTop 10 Brazilian brands declined 16percent, more than other BRIC markets.Many brands lost value, but othersimproved substantially.After years of economic expansion, GDPgrew less than 1 percent last year, because ofweakened commodity demand, especiallyfrom China, and pressure on exports, whichresulted from economic stress in developedmarkets, particularly Europe.In response, the government implementedpolicies to stabilize Brazil’s economy,continue the rise of more people into themiddle class, and reduce the society’sincome disparity between rich and poor.The combination of external and internalforces—the global economic environmentand the government’s reaction—affectedevery sector of the Brazilian economy,helping some and hurting others.Government policies to create jobsand stimulate spending drove sales inconsumer categories, including food, beer,retail and shopping malls. The highestvalued Brazilian brand, Skol beer, rose 39percent in brand value, for example.The same government policies, however,hurt the profits of Brazil’s financialinstitutions and the state-controlledenergy giant, Petrobras. Number twoin the BrandZ ranking of the mostvaluable Brazilian brands, Petrobrasdeclined 45 percent in brand value.Burnishing Brand BrazilGovernment programs also focused onpreparing Brazil for two major upcomingsports events. The FIFA World Cupfootball competition takes place in Brazilnext year, and Rio de Janeiro hosts theSummer Olympics in 2016.Hosting these events requires substantialinfrastructure development and improvement.This spending should stimulate theeconomy and produce jobs. The eventsalso place Brazil before a global audiencethat will get a first-hand impression ofBrand Brazil. The stakes are high.Stadium construction and airportexpansion are behind schedule. Thechallenge of providing transportation andcommunication infrastructure adequateto handle a surge in voice and datademand is of special concern. Failurewould draw immediate media criticism.Meanwhile, brands are planning theircommunications for these events. And thegovernment is attempting to acceleratethe transformation of the country’s inadequateinfrastructure, which lags Brazil’srecent rapid economic improvement.Some categories helpedGovernment initiatives that stabilizedincome and kept people employed leftconsumers with money to spend andhelped buoy the brand value of manyconsumer brands.The personal care brand Naturaincreased 12 percent in brand valuefollowing a decline last year. Amongthe first cosmetic brands to emphasizenatural ingredients and environmentalresponsibility, the brand has becomeclosely associated with Brazil. The brandmarkets throughout Latin America withover 1.4 million door-to-door directsales people.Signaling its global aspirations, Naturaacquired a major stake in the Australianbeauty retailer Emeis Holding, whichoperates over 60 stores in 11 countriesunder the name Aesop. The brand also issold in department stores.Brand value of the mid-market Braziliandiscount department store chain LojasAmericanas increased 37 percent. Thecompany opened 111 new stores in2012, ending the year with a total of 729locations. Like-for-like sales improved8 percent.The luxury end of the Brazilian marketcontinued to thrive. Sao Paulo’s newestluxury mall, JK Iguatemi, opened lastyear and includes global luxury brandssuch as Chanel and Gucci and flagshipstores of Burberry and Prada.Top 10 BrazilCategory Brand Brand value2013 $MBrand value %change 2013 vs 20121 Beer Skol 6,520 39%2 Oil & Gas Petrobras 5,762 -45%3 Regional Banks Bradesco 5,446 -19%4 Regional Banks Itaú 4,006 -39%5 Beer Brahma 3,803 61%6 Personal Care Natura 3,707 12%7 Food Sadia 1,993 33%8 Regional Banks Banco do Brasil 1,427 -69%9 Beer Antarctica 1,284 51%10 Retail Lojas Americanas 1,046 37%The local beer brands enjoyed thegreatest year-on-year increase in brandvalue across all categories. Along withSkol, these brands include Antarctica andBrahma, which rose 51 percent and 61percent, respectively. Brand awarenessbenefited from the marketing effort ofowner AB InBev, the world’s largest beerbrewer, which also promoted its Budweiserand Stella Artois brands in Brazil.Other categories hurtThe policies that helped consumerproducts and retail hurt financialinstitutions. Banks struggled tomaintain their profitability in a lowinterest environment engineered by thegovernment to stimulate spending andcontrol inflation, the historical threat toBrazil’s economy.112 BrandZ Top 100 Most Valuable Global Brands 2013113

Methodology byValuations & Analysis byPart 4 | The Fast Growing MarketsBrazilConsequently, Bradesco, Itaú andBanco do Brasil each declined in marketcapitalization and brand value, althoughthey remain fundamentally soundfinancial institutions. They focused ondeveloping new customers among peoplerising into the middle class, what theBrazilian government designates as theC class.The banks offered credit lines and microcredit.Bradesco, in particular, positioneditself as having ubiquitous presence, apromise it attempted to fulfill with convenientlylocated physical branches and acustomer friendly website.While appealing to the new middle class,Bradesco also cultivated prime customerswith personal attention and specializedproducts and services. Itaú advancedsimilar initiatives and also focused a lotof attention on technology.The real stories arebehind numbersInsightThe story of brand value in Brazilis really two stories. The consumerbrands have improved in brandvalue because of spending drivenby government policies to stimulatethe economy. The financial sectorand commodities declined in valuebecause of these governmentpolicies and because of the generalslowdown in international business.Meanwhile, investment by globalbrands, like Coca-Cola or Santander,is substantial, and Brazil remainsfundamentally strong.Eduardo TomiyaManaging DirectorBrandAnalyticseduardo.tomiya@brandanalytics.com.brIn another initiative to control inflation,the government moderated the priceof gas sold at the pump by Petrobras,the government-controlled oil and gascompany. Petrobras sacrificed profit byabsorbing rising costs, importing oil tomeet domestic demand, and keepingprices below the world market.Petrobras reported its first quarterly lossin 13 years. Its stock recovered somewhatin March 2013, when the governmentallowed the company to raise diesel prices.Underlying confidenceA more confident view of Brazil’s economyappeared at around the same time,when a Brazilian private equity fund,in partnership with renowned investorWarren Buffett, purchased H.J. Heinz, theglobal food company, for $23 billion.The key principal of the private equityfund, Jorge Paulo Lemann, is theBrazilian financier who developed thebeer brewer AmBev and combined it withInterbrew of Belgium, forming the basisof what became AB InBev, the world’slargest brewer, and owner of Brazil’sleading beer brands.In another corporate display of long-termconfidence in Brazil, France’s GroupeCasino took control over Groupo Pãode Açúcar, one of Brazil’s most valuablebrands and its largest retailer, withholdings in grocery and several hardlinespecialties. The transaction reduced thepower of the founding Diniz family.And Brazilians maintained their traditionaloptimism. Despite the challengingeconomy, they increased their positivefeelings about both the country’s financialsituation and their own, according toThe Futures Company Global Monitorsurvey.Going globalAlthough Brazilians also have highregard for many local brands, feware known outside of Latin America.Exceptions include Havaianas, themaker of fashionable flip-flop sandals,and aircraft manufacturer Embraer.The mining brand Vale, Sadia, the foodproducer, are active globally, but knownprimarily within their industries.Some concern, butoptimism prevailsInsightThe prevailing mood is cautiousbut optimistic. Brazilians hope andbelieve that all the preparationsfor the Olympics and the The FIFAWorld Cup will be successfullycompleted. But time is passing, andwe expect that a lot will happen atthe last minute. Failure to completethe planning successfully will havea terrible effect on Brand Brazilbecause many of the country’s brandleaders are depending on thesehigh-profile events to build publicityand positive momentum. It’s a hugeopportunity. And the execution ofthese events can help or damage abrand’s image.Silvia QuintanilhaVice President, Client ServiceMillward BrownSilvia.Quintanilha@millwardbrown.comMore consumer brands aspire to becomeinternational. Along with Natura’s moveto expand internationally, the Braziliancosmetic brand Boticário is developingsub-brands for new products to positionitself for export.In contrast, some global brandsare attempting to become moreBrazilian. Avon, for example, had usedinternational celebrities to promote itsimage in Brazil. As the company worksto strengthen its position in Brazil, it’schanged its approach and uses Brazilianspokespeople instead.Purchasing frequency50%non-foodbrandsare localFMCG trendsin BrazilThe FMCG basket declined in value in2012, due to frequency decreases andrising prices, with many categories,including health and beauty, movingtoward a premium offer.The four biggest Brand Footprintcategories are bread, carbonatedsoft drinks (CSD), biscuits and milk.Frequency decreases were seen inbread and CSD. Brand Footprint is aKantar Worldpanel global measure ofthe most bought consumer brands.Yoghurt is the fastest growing BrandFootprint category, up 6 percent.Morning goods and breakfast cerealsSource: Kantar Worldpanel 2013 Brand Footprint Reportfoodbrandsare local70%are also growing their householdpenetration, as is water, thanks inpart to larger pack sizes and soybasedbeverages where the trend isto add fruit.About 70 percent of the biggestConsumer Reach Points food brandsare local, compared with 50 percentfor non-food. Brands embracinginnovation are growing. ConsumerReach Points is a new metric ofbrand strength by Kantar Worldpanel.It’s a combination of how manyhouseholds buy a brand andhow often.More WPPResourcesabout brandsin LatinAmericaBrandZ Top 50 MostValuable Latin AmericanBrands 2012The report profiles the most valuablebrands of Argentina, Brazil, Chile,Colombia and Mexico and exploresthe socio-economic context forbrand growth in the region.To download a free mobile appplease go to www.brandz.com/mobile. Find the interactive iPadmagazine by searching BrandZLatin America on iTunes.114 BrandZ Top 100 Most Valuable Global Brands 2013115

Part 4 | The Fast Growing MarketsChinaInsightThe luxury ofproduct safetyChinaKnowing more aboutbrands, Chineseexpect greaterchoiceInternet, travel broadens perspectiveThe problems with the environmentand food safety have hit hard. Theissue of corporate responsibility hasbecome real. We used to believethat with money we could buyourselves out of these crises. Nowwe understand that money isn’tgoing to do that. We used to believethat in buying premium brands wewere also buying peace of mind. Asmarketers we’ve believed that qualityand safety are basic and that peopleaspire to something higher. Today,those basics—quality and safety—are becoming luxuries.Kaiyu LiWhen it comes to brands, Chineseconsumers know more and expect more.Access to the Internet and internationaltravel has widened their considerationset of available products, servicesand brands.Mobile communications and word ofmouth helped spread this knowledgethroughout the country from the majorurban centers like Shanghai, Beijing andGuangzhou to less prominent cities.Chinese consumers have explored thebrave new world of products from theWest. They now want to mold it tofit more organically into the 5,000years of Chinese history and culture,which preceded the last severaldecades of explosive industrial andtechnical expansion.After years of climbing toward the middleclass, the Chinese are going back to thefuture. A luxury logo must not only signalwealth, it should assure quality andcraftsmanship. The ancient holidays arenot just times for increased consumption,but also about restoring ancient meaningand ancestral connections.These attitudinal and cultural shiftscorrespond with the slowdown in the rateof economic growth, a shift in nationalpriorities and the declared intentionof China’s new national leadership tobuild a consumption-driven economyand rectify the negative impact of rapiddevelopment on the environment, productreliability and food safety. In addition:ValueConsumers are shifting from priceconsciousness to value consciousness,which will affect brands in all categories.LuxuryLuxury brands are becoming moredifferentiated as consumers regardluxury not simply for the status it implies,but also for the intrinsic craftsmanship.Chinese brandsChina will create more Chineseproducts and brands, and not only inthe categories associated with China,like traditional Chinese medicine.China is becoming much like otherdeveloped consumer societies where mostpeople, with adequate shelter and enoughto eat, seek higher meaning in their lives.The difference—critical for brands—isthat this development will happen inChina in ways that are both the same anddifferent from the West. It will be Chinese.Widening horizonsLast year, 70 million Chinese people(more than the population of France)traveled abroad. They returned withexpanded knowledge of products andservices and international brands. And,for many Chinese people, internationaltravel yielded another important insight:The growing realization that Chinaitself is capable of creating productsand brands.These developments will impact internationalbrands in at least two ways: (1)Consumers will expect more variety; andTop 10 ChinaCategory Brand Brand value2013 $MBrand value %change 2013 vs 20121 Telecoms China Mobile 55,368 18%2 Regional Banks ICBC 41,115 -1%3 Technology Tencent 27,273 52%4 Regional Banks China ConstructionBank26,859 10%5 Technology Baidu 20,443 -16%6 Regional Banks Agricultural Bankof China19,975 12%7 Insurance China Life 15,279 5%8 Regional Banks Bank of China 14,236 10%9 Oil & Gas Petrochina 13,380 11%10 Oil & Gas Sinopec 13,127 -6%Head of PlanningY & R ChinaKaiyu.Li@yr.comSource: Milward Brown Optimor (including data from BrandZ and Bloomberg)116 BrandZ Top 100 Most Valuable Global Brands 2013117

Part 4 | The Fast Growing MarketsChina(2) More Chinese brands will be able tosatisfy this expectation. Chinese entrepreneurshave learned what’s driving brandsin other parts of the world. They can interpretthose trends for China.The animating impulse is less aboutimitation and more about adaptation.Knowledgeable Chinese consumers andentrepreneurs know what products areavailable and what they should cost.Chinese businesses are advantageouslypositioned to deliver branded productsthat are relevant and competitively pricedfor Chinese consumers.It’s not that Chinese consumers will losedesire for Western products, but Westernprovenance alone may not excite them.This new reality requires abandoningInsightBrands build InternetexpectationBecause of the proliferation of theInternet, people actually know aboutbrands a lot earlier than the brandphysically shows up in their city. Sothere’s a lot of pent up expectation,especially among young people orpeople who are more Internet savvy.This phenomenon also happens withluxury brands, which usually want toregulate exposure to build desire.Theresa LooNational Director – StrategicPlanning, Analytics & InsightMEC ChinaTheresa.Loo@mecglobal.comthe old presumption: That the Chineseconsumer has limited knowledge ofproduct and brand; therefore suppliersneed to offer only a limited selection.Some international brands now viewChina as a second home market. Theyknow not to downplay a brand’s foreignheritage, but to modify the product so thatit’s appropriate for China and Chineseconsumers. Hermès invested in a Chineseluxury home fashion brand called ShangXia, and Estée Lauder launched Osiao asa Chinese-brand skin care product.Word of mouthThe changing attitudes of Chinese consumersresulted not just from internationaltravel, but also from the power of word ofmouth and the rapidity with which opinionsand impressions can be shared becauseof social networks and mobile.Mobile surpassed all other devices lastyear as the gateway to the Internet. Atthis inflection point, Tencent’s mobileapp, with social networking and locationutilities, rocketed in just two years past300 million subscribers.The closeness of Chinese families alsoinfluences the speed of communication.Young people and laborers, who migrateto coastal cities for work, share theirimpressions during regular phone calls withthe families that remain in China’s villages.The Internet and mobile deliver greaterawareness of brands to places wherepeople have online access to products andservices that may not be present in localphysical stores, although that’s changingas international retailers, like Walmartand Carrefour, open hypermarkets.Until now, Chinese rather thaninternational brands have generallyenjoyed the advantage in these locationsbecause they have greater understandingof the local distribution systems, whichcan be complex. But it’s not always easyto ascertain whether consumers preferChinese or international brands becauseInsightWell-traveled consumersexpect more choiceEven people in third and fourth tiercities have money and are travelingabroad. They return home with a newidea of what the consideration set forproducts and brands could be. Forbrands, this development means thatwe’re approaching a new horizonwhere brands will need to cater tothe demand for greater variety. Theconcept had been: This is what theChinese consumer knows; thereforethis is what we give the Chineseconsumer. It no longer holds true,particularly for these affluentChinese consumers.Scott PollackSenior Strategy Director, ChinaWunderman|AGENDAscott.pollack@wunderman.commany international brands, in Chinafor a long time, have deemphasizedtheir origins.The ability to talk fast and cheaplyon mobile throughout China alsois shaping public awareness of thenation’s challenges. Going forward tothe next stage in China’s developmentrequires simultaneously repairing theenvironmental damage caused by thelast stage of fast growth, the degradationof air quality and food safety, and therelated erosion of trust.The SOEsCompetition drivesconcern with brandThe State Owned Enterprises (SOEs)are becoming more concerned aboutbranding and differentiation.The conventional wisdom has been:The bigger and more monopolisticthe enterprise is, the less it’sinterested in brand. That’s changingfor one key reason—competition.The SOEs understand that sustainedsuccess in a more competitiveChinese market requires brandknowledge and brand building.And these government-controlledorganizations are willing to invest.The interest in brand building is mostpronounced among the competitiveSOEs in the consumer products likefood and dairy. But the strategicSOEs, the banks and oil and gascompanies, have reasons to buildbrands, too.A wider trendThe focus on brand building is partof a wider strategic effort to improveoverall management, which alsoincludes optimizing supply chainsand resource planning. Many SOEsare sending executives for continuingeducation courses or investingin internal programs to cultivateexecutive leadership skills.Two fundamental changes drive theinterest in understanding consumersand producing products that bettermeet consumer needs:First, the shift in China frombeing the world’s factory tobeing more of a consumerdrivensociety pushedcompanies, including themore competitive SOEs,to look for answers.Second, the Chinese assumedthat Western companies, withexperience competing in marketeconomies, had all the answers.That notion was shaken bythe global financial crisis.Chinese observers concluded thatsimply imitating a flawed structuremade little sense. They’ve sinceattempted to understand Westernmanagement in order to appropriatewhat works and modify it for China.Role of governmentThe need to advance thegovernment’s interests alsomay drive the effort to buildChinese brands.Domestically, the interest in brandbuilding appears to be pragmatic:If Chinese consumers increasinglydesire brands, it makes sense toencourage the development of moreChinese brands.Internationally, strong SOE brandsaccomplish a political mission byprojecting the soft power of China.They lubricate the internationalrelations required for establishingChinese brands abroad.As the SOEs move into developedWestern capitalistic democracies,brand becomes important formedia and government relations,to help overcome any resistance tocommercial ventures controlled bythe Chinese government.Brands also help demonstrate along-term commitment to makingan economic contribution to thewider community and not to simplyexploiting its natural resources. Inthis respect the role of brand for aChinese SOE is similar to the roleof brand for an International OilCompany (IOC) entering overseasmarkets.118 BrandZ Top 100 Most Valuable Global Brands 2013119

Part 4 | The Fast Growing MarketsChinaPurchasing powerMore WPP Resourcesabout China and brandsGoing GlobalChinese brands targetfast growing marketsChinese brands increasingly seek tobuild international sales and stature.In fast growing markets, Chinesebrands position their products forall price segments of the market. Indeveloped markets, they attempt tooffer tremendous value: good qualityat affordable prices.Southeast Asia and the other BRICsare strong markets for Chinesebrands. Chinese car brands areestablishing production facilities inSouth Africa to serve that market andto enter Zimbabwe, Kenya, Tanzaniaand other African nations.Chinese companies in these fourconsumer categories are bestpositioned to fulfill their globalambitions: cars, smartphones,consumer electronic and householdappliances including air conditioners.In fact, the best-selling airconditioner worldwide already isChinese. But few people have heardof it outside of China.That’s because, although Greedominates the Chinese airconditioner category with 30 percentmarket share, and it’s present inaround 200 countries, the brand hasfunctioned primarily as an OriginalEquipment Manufacturer (OEM),supplying product for other airconditioner marketers, but remaininginvisible to consumers.Building awarenessGree now wants to emerge fromthe shadows. To help build brandawareness, Gree began advertisingin New York’s Times Square lastyear. All Chinese brands face thechallenge of building awareness asthey expand abroad.Jac Motors discovered a way toestablish its name quickly. Basedin a province about 500 miles fromShanghai, Jac Motors is one ofChina’s largest exporters of carsto fast growing markets. It enteredBrazil in 2011, after many otherChinese car brands had establishedtheir brands in the market.The Chinese car brands allpositioned themselves as low priced,basic transportation for poor peoplerising into middle class. Jac Motorsneeded to build awareness anddifferentiate quickly.Knowing that customers forChinese cars shopped for price andexpected to purchase only a basiccar with no special accessories,Jac Motors offered a model pricedcompetitively but loaded withdesirable accessories. It camewith a six-year warranty withoutany mileage limitation.InsightGlobal Brand BuildingTCL is one of China’s largest TVmakers. It has established certainpresence outside of China as anOEM, but is not yet known as abrand. In January 2013,TCL boughtthe rights to rename Grauman’sChinese Theater in Los Angeles.The venue is famous because ofmovie premiers that happened thereand the signatures, handprints andfootprints of Hollywood stars set inthe concrete in front of the theater.This landmark now is called the TCLChinese Theatre. Recently, TCLalso teamed up with a Hollywoodstudio to place its products in theblockbuster movie Iron Man 3. Allthese efforts build awareness forthe brand and inspire good PRworldwide. And like the advertisingfor the Gree air conditioner brandin Times Square, it helps boost thebrand’s image in China. These highprofile initiatives—one in the worldcapital of entertainment and theother at the figurative crossroads ofthe world—both communicate toChinese consumers. They say thatTCL and Gree are global brands.Lyndon CaoDirector, Global China PracticeOgilvy & Matherlyndon.cao@ogilvy.com14%10%rise in value of China’sFMCG marketrise in money averageChinese householdshad to spendFMCG trendsin ChinaThe value of China’s FMCG marketrose 14 percent in 2012. The moneyaverage Chinese households had tospend rose by 10 percent.The brands performing well areachieving a high reach not only intraditionally strong areas, such asShanghai and Beijing, but also inthe largely untapped Central andWestern regions as well as lowertier cities.Top Brand Footprint categoriesinclude milk—fresh or not—bread, instant noodles, biscuits,confectionery, sausage, fruit juice,laundry detergent and femaleskincare. Brand Footprint is a KantarWorldpanel global measure of themost bought consumer brands.The growing middle class and highincomeyoung consumers have ledto strong new categories, including:butter and margarine, energy drinks,infant milk powder, facial tissues,toothbrushes and moisturising andcleansing wipes.Penetration for online shopping inChina is approaching 25 percent.As the logistics and e-commercemodels improve, more FMCGproducts will be purchased online.Source: Kantar Worldpanel 2013 Brand Footprint ReportFor more insight and perspective about the evolution and future of brandsin China, please download these other BrandZ reports free of charge,at www.brandz.com. For free iPad magazines with unique content, searchwpp brandz in the Apple iTunes store.The increasing sophistication of the Chinese consumer challenges allbrands to remain relevant. Every brand has its own story. To watch shortvideos containing unique content about China, and to learn more aboutthe BrandZ Top 50 Most Valuable Chinese Brands 2013, please go tohttp://thestorewpp.tv/china50.BrandZ Top 50 Most ValuableChinese Brands 2013The report profiles Chinese brands, outlines major trends driving brandgrowth and includes commentary on the growing influence of Chinesebrands at home and abroad.The Chinese Golden WeeksIn Fast Growth CitiesWith research, photojournalism and case studies the report examinesthe shopping attitudes and habits of China’s rising middle class duringthe most important sales periods of the year. It reveals opportunities forbrands in many categories.The Chinese New YearIn Next Growth CitiesThe report explores how Chinese families celebrate this ancient festivaland describes how the holiday unlocks year-round opportunities forbrands and retailers, especially in China’s lower tier cities.120 BrandZ Top 100 Most Valuable Global Brands 2013121

Part 4 | The Fast Growing MarketsIndiaIndiaLocal and global brandsThrive across categoriesConsumers spend more cautiouslyBrands continued to thrive inIndia, despite slower economic expansionand greater consumer caution.Indian brands proliferated and evendominated many categories, sometimesindependently, as an entity of an Indianconglomerate, such as Tata Group,Reliance Industries and Bharti.International hospitality brands Starbucksand Dunkin’ Donuts opened their firstIndian outlets, Starbucks in a joint venturewith Tata, Dunkin’ Donuts with India’sJubilant FoodWorks. They’ll face localbrands like Café Coffee Day and Barista.With approval of foreign direct investmentlegislation, India’s parliament easedmarket entry for global retailers. Themajor retail brands waited for furtherinterpretation of the legislation’s nuancesbefore opening stores, however.Several cross-category trends appealed tothe value mentality of Indian consumers,including:Social MediaSocial media grew at a rapid pace,increasing the already extensiveconsumer exposure to brands.E-commerceIn search of merchandise andbargains, consumers spent moretime online, visiting eBay and Indiansites such as Jabong, Flip Card andSnapdeal, which represent a growing,if relatively small portion of sales.ValueBy offering special deals during selectedfestivals, like Diwali, international brandsmet consumer value expectationswhile maintaining price integrity, apractice similar to sales during Westernholidays or Chinese New Year.Financial institutions add productsBanks and insurance companiesintroduced investment products formembers of India’s rising middle class.The participating brands included thestate-owned Life Insurance Corporation(LIC) and ICICI, India’s largest bankand the most valuable Indian brand inthe BrandZ Top 100 Most ValuableGlobal Brands.Private insurance brands such as MetLife, Aviva Life, Tata AIA and Max Lifewere aggressive and diversified with theirsales and marketing approach. Thesebrands marketed investment products,generally life insurance, usually withtraditional advertising on TV, print andwith telemarketing. Companies like LIC,mainly relied on large agent networks.Aviva promoted products for parents toinsure their children’s education. Banksalso encouraged cross-selling. The StateBank of India introduced a massiveeducational campaign about how to buylife insurance as an investment.In addition, banks expanded into mobilebanking, a major opportunity. Withalmost 900 million mobile phones inuse, India is the world’s second largestcellular market and many more peoplein India have mobile phones than havebank accounts. Using mobile for cashtransactions is becoming important,especially in rural areas.Telecoms and devicesReflecting the general fragmentation ofthe Indian market, obtaining cell phoneservice requires two separate transactions.Consumers first buy a device from aretailer and then buy the SIM card froma telecom service provider.Consumers shopped for smartphones atevery price point and did not lack choice.The Indian brands included Micromax,Karbonn, and Spice Mobile. And manyChinese brands entered the market. Toraise their brand profiles, Micromax andKarbonn sponsored events.Consumers selected their telecomprovider carefully because the industrywas embroiled in a corruption scandal,with certain carriers charged with bribingofficials to obtain licenses.Popular brands among consumersincluded Idea and Docomo, whichaccrued credibility in part from being aTata brand. Gaining advantage fromtheir scale, Airtel, a Bharti brand, andthe global brand Vodafone commanded aslight premium.Retail opens slowly tointernational brandsLate in 2012, India’s parliament approvedforeign direct investment, another step inthe long process of opening the country toforeign retail brands.The legislators struggled to balancecompeting interests: the desire to stimulatethe economy, improve infrastructure, andprovide consumers with greater rangeand lower prices; and the need to satisfythe small business owners whose shopsdominate India’s highly fragmentedretail sector.The legislation permitted multi-brandretailers, such as Walmart, Tesco,Carrefour and Metro, to own 51 percent ofretail joint ventures, but it also mandatedthat a certain amount of merchandisemust be sourced locally.Brands in Top 100 IndiaCategory Brand Brand value2013 $MBrand value %change 2013 vs 201259 Regional Banks ICICI Bank 14,196 12%89 Telecoms Airtel 10,054 -13%(Source: Milward Brown Optimor (including data from BrandZ and Bloomberg)122 BrandZ Top 100 Most Valuable Global Brands 2013123

Part 4 | The Fast Growing MarketsIndiaHousehold purchasing patternsInsightInternational retailerswait at open doorIndia remains a country of smallshopkeepers. But it’s evolving, withthe approval of foreign directinvestment in organized retail lastyear. The law opens the door forforeign brands like Walmart or Tesco.Organized retail in India started justover 10 years ago in anentrepreneurial effort by KishoreBiyani under the banner Big Bazaar.It is a large hypermarket, the kind offormat that Walmart or Tesco wouldcompete with when they open retailstores in India. The foreign brandsare waiting for clarification of thenew law, however. The law requiresthat at least 30 percent of theirmerchandise be sourced locally fromsmall and medium sized suppliers.It also stipulates that a minimumlevel of investment be made inbuilding infrastructure.Parnika S. MehtaGroup Account DirectorMillward Brown IndiaParnika.SMehta@millwardbrown.comThe major global brands are wellpositioned to open stores in Indiabecause they already operate in thecountry as joint venture wholesalers.They did not rush to open retail stores,however, because the recent legislationis complicated and not necessarily thefinal word.The legislation also made it easier forsingle-brand operators, like Ikea, to openstores without an Indian partner. Ikeahas been trying to access the Indianmarket for years. The Indian governmentis reviewing Ikea’s $2 billion investmentproposal of opening 25 stores in India inthe next 15 to 20 years.Cars at all price pointsCarmakers pursued sales potential atboth ends of the market, offering small,low priced models for budget-constrainedbuyers and more premium options forthe wealthy. But car sales did not meetexpectations, according to the Society ofIndian Automobile Manufacturers.Maruti Suzuki led the entry-level segment.Renault introduced its Duster at anaffordable price point. Tata continued tomarket its Nano, aimed mostly at driverstrading up from a two-wheel vehicle.Responding to the customer’s need to feelpride of ownership, the Nano campaignfocused on the car’s features rather thanits price. Nano also served as a secondcar for the more affluent.BMW and other brands have introducedmore stripped down versions of their carsin order to satisfy desire for the brandat more affordable price point. Chinesebrands have entered the market, mostnotably the Foton, which is available asa sedan or a more premium hatchback.Personal careIn personal care, India experiencedseveral global category trends including:the popularity of anti-aging products,increased interest in men’s grooming, andthe movement to natural ingredients.The market included a mix of both globaland local brands. The men’s groomingsegment, for example, included Niveaand Hindustan Unilever’s Fair andLovely for Men, as well as Imami’s Fairand Handsome.categoriesFMCG trends in IndiaFMCG is the fourth largest sector inthe Indian economy. Households buyaround 23 categories each year inurban areas, 16 in rural areas.Tea is the biggest Consumer ReachPoints category, ahead of coffeein all regions except south India.Consumer Reach Points is a newmetric of brand strength by KantarWorldpanel. It’s a combination ofhow many households buy a brandand how often.ruralareasurbanareasOther categories with highpenetration are hair oils, spices,wheat flour, talcum powder, insectrepellents and skincare products.The fastest growing categories inConsumer Reach Points are: softdrinks, purchased mainly during thesummer and in large volume packs;hair colorants, where innovation iskey; and dentifrice agents to cleanand polish teeth.categoriesSource: Kantar Worldpanel 2013 Brand Footprint Report124 BrandZ Top 100 Most Valuable Global Brands 2013125

Part 4 | The Fast Growing MarketsRussiaRussiaRussian brands improveIn quality, communicationWTO entry, Sochi Olympics add urgencyFor two weeks next February,during the 2014 Winter Olympics,audiences worldwide will focus attentionon Sochi, a Black Sea resort—andpotentially on Russian brands. Theyshould be surprised and impressed.Russian are becoming more sophisticatedbrand marketers, integrating traditionaland online communication to developbrand experience beyond simply a logo.They’re applying these advances acrossboth consumer and business categories.Russian consumers often prefer localbrands and, because of an increase inquality and range, they usually canfind them in almost any category. Thegovernment encourages the growth ofRussian brands to enhance the country’sstature and help differentiate it fromthe West.This brand evolution is urgent.Russia’s entrance into the World TradeOrganization (WTO) in 2012, after 18years of negotiations, will over time lowertariffs on imported goods and makeglobal brands more competitive withRussian brands.These developments come at a time whenthe Russian economy, growing at 4-to-5percent annually, has so far managed toavoid the recessionary pressures felt by itsEuropean neighbors. Russian disposableincome continues to grow and consumersprefer to spend rather than save.Increased branding sophisticationThe response to WTO membership hasbeen most noticeable among the businessto-businessorganizations that had notfocused attention on branding until now.Not only are the largest B2B companiesinvesting in their brands, but so aresome of the small- and medium-sizedRussian brands as well. The Russianbrand Chemline had dominated Russia’sindustrial cleaning products industry,for example. The market entrance of twomajor US brands forced Chemline torefresh its brand.On the consumer side, an innovativemobile device brand called Yotaphonedrew media attention. Launched at theConsumer Electronics Show in Las Vegasin December 2012, the two-sided Androidphone is expected to be widely availableby the end of 2013. The combinedsmartphone and e-reader has an LCD,liquid crystal display, on one side andan EPD, electronic paper display onthe reverse.Another development that happened latein 2012 also should influence the Russianevolution of brand and, specifically, onlineretailing: Apple launched its online iTunesstore in Russia, amid rumors that a fullline online Apple store soon would follow.Improving online presenceBrands in most consumer categories,especially retail, focused attention onimproving their online presence.Svyaznoy, an electricals retailer with over3,000 outlets, reported a 162 percentincrease in online sales to 9.2 billion roubles($300 million), a rapidly growing—butlimited proportion—of total revenue.DIY retailing drove a lot of onlineactivity on retailer websites and in socialmedia. Some Russian brands were activealong with many of the internationalplayers, including Leroy Merlin fromFrance; Castorama, owned by the UK’sKingfisher, and Germany’s Obi.Retailers also understood that competingeffectively often requires operatingmore than one branded format. Manycomplemented their big box stores withsmaller outlets more appropriate forparticular locations.Eldorado, which operates about 700consumer electronics and home appliancesuperstores, opened smaller formats andoffered online ordering with click andcollect or home delivery options.Enter, a new retail brand from Svyaznoy,introduced a type of catalog showroom,similar to the UK’s catalog merchantArgos. Consumers can order goodsin store and online and retrieve themerchandise from pick-up locations orhave it delivered to their homes.Branding and innovationLast year Russia placed 14th inBloomberg’s Global Innovation IndexTop 50. This reputation for high techinnovation and entrepreneurship ispartially due to the Skolkovo InnovationCenter, a research campus, locatedoutside of Moscow.Russia’s Silicon Valley, Skolkovo isdevoted to technological research anddevelopment in IT, energy, biomedicineand other areas. The governmentprovided strong support for Skolkovoto encourage growth of science andtechnology companies in RussiaThe center has attracted both venturecapitalists and major technologybrands interested in encouraging andcommercializing the work of Russianscientists. Partners include both Russiantechnology companies and many ofthe technology leaders ranked in theBrandZ Top 100 Most Valuable GlobalBrands, such as Cisco, GE, IBM, SAPand Siemens.Brands in Top 100 RussiaCategory Brand Brand value2013 $MBrand value %change 2013 vs 201270 Regional Banks Sberbank 12,655 19%82 Telecoms MTS 10,633 11%(Source: Milward Brown Optimor (including data from BrandZ and Bloomberg)126 BrandZ Top 100 Most Valuable Global Brands 2013127

Part 4 | The Fast Growing MarketsRussiaGovernment regulations banning beeradvertising on TV drove a differentkind of innovation. Until July 2012, thegovernment permitted beer advertisingon TV after 10 pm. Now it’s bannedentirely. The prohibition follows similarlimits aimed at alcohol and tobacco.The beer advertising restriction forcedcompanies to think creatively aboutbuilding brands differently. Russia’sleading beer brand, Baltika promoted itsnon-alcoholic version called Baltika 0. Thename follows Baltika’s numerical brandingstyle—Baltika 3 is a lager, for example.The product and communications solutionsthat beer brands devise to compensatefor the TV ad ban will influence otherInsightBrand building by B2BcompaniesIn developing markets, it has primarilybeen consumer brands that haveinvested in brand building in recentyears. We’re seeing however agrowing interest in brand buildingfrom B2B companies, however. Itfollowed Russia’s acceptance intothe WTO last year, which opensthe market up to competition fromboth directions. These B2B brandsare looking for ways to be morecompetitive against brands enteringRussia and also against brands in themarkets to which they may expand.Emma BeckmannCountry Director – RussiaLandor Associatesemma.beckmann@landor.comcategories to evolve their brand building.Emphasis should shift from a focus onadvertising, design and packaging toimproving brand experience overall andincreasing social media activity.Establishing brands abroadRussia’s three largest telecoms—MTS,Megafon and Beeline—raised theirbrand profiles as they expanded abroadto the Commonwealth of IndependentStates (CIS), Turkey and fast growingAsian markets.As the telecoms grew through acquisition,Megafon and MTS usually subsumednew entities under their masterbrands.Beeline’s parent Vympelcom tends toleverage the equity of the local brand.Meanwhile, MTS has developed otherrevenue streams, in financial services andfrom monetizing its customer data.Russia’s fourth largest telecommunicationsplayer grew by collectingregional telecoms and operating anintercity fixed line business under aconglomeration of names. The companyrecently unified these entities under asingle brand, Rostelecom.Rosneft, Russia’s largest oil and gasbrand, has become a global brand,having recently entered in partnershipwith ExxonMobil and other globalplayers desiring access to naturalresources reserves in the Arctic andSiberia. Whether the state-owned Rosneftwill devote attention to brand building,as two major state-owned banks have, isanother question.The two banks, Sberbank and VTB,are actively branding both in Russiaand abroad. Sberbank recentlycompleted several overseas acquisitionsto build global stature. These follow acomprehensive rebranding program thattransformed the bank from an austereSoviet-era institution to a consumerfocusedbusiness. The remodeled branchesand their online banking services aresophisticated and user-friendly.VTB is working to strengthen its brandas part of an aggressive expansion ofInsightBeer ad ban offers anopportunityThe ban on beer TV advertisingchallenges the beer brands. It will beinteresting to see how the brandsbehave after this ban, how theylaunch new products, for example,in the absence of TV advertising. Thestronger beer brands could emergeeven stronger after this advertising ban.Brands in other categories will look tobeer to see what’s innovative in the useof social media and other tools.Vladimir MelikovQuantitative Research Co-DirectorMillward Brown A/R/M/I-Marketingvmelikov@armi-marketing.comcommercial and corporate banking inRussia, Europe, Africa and Asia. Thebank recently branded its retail businessVTB 24. VTB launched a stand-alonebrand called Leto, which means summerin Russian. The bank developed Leto toprovide lending services to the sub-primemarket. It felt it would be imprudent toreach this audience with its core brand.VTB intends to open 1,000 Leto branchesover the next five years.Yandex, Russia’s competitor to Google,has expanded to Turkey and is eyeingother markets. Kaspersky’s Labs antivirushas become one of the strongestsoftware brands in the world.In a high profile international brandbuilding initiative, several brands aresponsors of Sochi 2014, includingSberbank and Megafon, which recentlycompleted an IPO.The increasing sophistication of the Chinese consumerchallenges all brands to remain relevant. Every brand has itsown story. To watch short individual brand videos containingunique content about China, and to learn more about theBrandZ Top 50 Most Valuable Chinese Brands 2013,please scan this QR code,or go to http: //thestorewpp.tv/china50.128 BrandZ Top 100 Most Valuable Global Brands 2013129

Thought LeadershipSpeed Kills: How Brands Can Move FastSpeed kills:How brandscan move fastTo capitalize on cultural opportunitiesShane AtchisonGlobal CEOshane.atchison@possible.comSocial media has given brands something they’venever had before: the ability to respond in real-time tothings that happen in the world. As we’ve seen over thelast year, some brands have had dazzling success withfast reactions.Oreo practically owned the 2013 Super Bowl advertisingcompetition with its inexpensive “dunk in the dark”tweet, which played off the sudden blackout during thegame. With 140 characters it generated more publicitythan brands that spent millions of dollars to create adsfor the event.At POSSIBLE, we call this phenomenon—“culturalopportunity marketing.” Done right, it offers asubstantial new approach for brands to connect withtheir customers in a meaningful way.There is a caveat, however: Timing and quality matter.The cost of sending out a fast tweet or Facebook postmay be insignificant; but success requires planning.Brands have to position themselves to react quicklyand effectively, or they risk missing or misfiring on theiropportunities. So what are we talking about?1. Create a cultural opportunity budgetTraditionally, brands have planned their marketingspend months in advance and kicked off their campaignsaccording to a set schedule. Cultural opportunitymarketing doesn’t work this way. For example, let’ssay you are a small beverage brand that suddenly landsin the spotlight because an A-list celebrity is seen withone of your drinks at a highly publicized event.This actually happened to one of our clients—andit would have made for a great quick campaign. But,unfortunately, the brand had already allocated itsentire marketing budget for the year and had nothingleft to spend. And so, brands should reserve a certainpercentage of their total budget for cultural opportunitymarketing (we typically advise 5 percent, but it dependson the size of the budget).2. Set up a response teamWithout real-time intelligence, you won’t have real-timeopportunities. Brands should establish a response teamthat contains every functionality (copy, design, mediabuying) necessary to pull together a very fast campaign.The team also should include people who keep up onthe latest developments in the marketplace and look foropenings to exploit. Keep this team ready on deck toseize the day and make the opportunity come to life.3. Enable creativity by making rolesand responsibilities clearTo move fast, everybody on your team needs to knowwhat he or she is empowered to do. Brands should beunambiguous about who will make decisions, whowill manage the response, and so on. While you maythink this is a little regimented for a creative process,its purpose is to free your team members to work fast,without concerning themselves with rules and structure.4. Practice makes perfectReal-time opportunities come up randomly, so abrand’s cultural opportunity marketing team needs tohave experience. Not just by doing things live, but bypracticing responses to unexpected events. Brands shouldconduct “fire drills” occasionally, where everyone has todrop everything and think about a response to something.If it’s not practical to create an actual response, youshould at least spend an hour discussing what you mightdo. Then allow outsiders to evaluate your response andmake sure you’re on the right track.5. Incentivize cultural opportunitiesWant your response team to be razor sharp? Give thema reason to be out there hunting for and executing ideas.Incentives should be small, but meaningful.6. Reward failureSuccess in fast, real-time efforts often depends on thingsoutside a brand’s control. Cultural opportunities playout in the real world, where real news happens. A brand’sresponse team may come up with a terrific message, butsimply be overwhelmed by a bigger story that breaksthat day. So reward effort not outcome.Obviously, cultural opportunity marketing is more of amethodology than a specific plan. Brands should adaptit to their unique circumstances and communicationschallenges. But by planning well and enabling a team tobe creative fast, you can realize an outsized return on aminimal investment and grow the brand’s value.POSSIBLE is a digital agency with global presence,specialized in creative, technology, ideas and insights,performance marketing and interactive touch.www.possible.com130 BrandZ Top 100 Most Valuable Global Brands 2013 131

Part 5 | ResourcesPart 5Resources132 BrandZ Top 100 Most Valuable Global Brands 2013133

Part 5 | ResourcesBrandZ Valuation MethodologyBrandZ Valuation MethodologyResearch includes two million consumers and 10,000-plus brands in over 30 countriesThe brands that appear in this reportare the most valuable in the world.They were selected for inclusion in theBrandZ Most Valuable Global BrandsTop 100 and category rankings based onthe unique and objective BrandZ brandvaluation methodology that combinesextensive and on-going consumerresearch with rigorous financial analysis.The BrandZ valuation methodologycan be uniquely distinguished from itscompetitors by the way we obtain consumerviewpoints. We conduct worldwide,on-going, in-depth quantitative consumerresearch, and build up a global picture ofbrands on a category-by-category andcountry-by-country basis.Our research covers two millionconsumers and more than 10,000different brands in over 30 countries. Thisintensive, in-market consumer researchdifferentiates the BrandZ methodologyfrom competitors that rely only on apanel of “experts” or purely financial andmarket desk research.Before reviewing the details of thismethodology, consider these threefundamental questions: why is brandimportant; why is brand valuationimportant; and what makes BrandZthe definitive brand valuation tool?Importance of brandBrands embody a core promise of valuesand benefits consistently delivered.Brands provide clarity and guidance forchoices made by companies, consumers,investors and others stakeholders. Brandsprovide the signposts we need to navigatethe consumer and B2B landscapes.At the heart of a brand’s value is its abilityto appeal to relevant customers andpotential customers. BrandZ uniquelymeasures this appeal and validates itagainst actual sales performance. Brandsthat succeed in creating the greatestattraction power are those that are:MeaningfulIn any category, these brands appealmore, generate greater “love” and meet theindividual’s expectations and needs.DifferentThese brands are unique in a positive wayand “set the trends,” staying ahead of thecurve for the benefit of the consumer.SalientThey come spontaneously to mind as thebrand of choice for key needs.Importance of brand valuationBrand valuation is a metric that quantifiesthe worth of these powerful but intangiblecorporate assets. It enables brand owners,the investment community and others toevaluate and compare brands and makefaster and better-informed decisions.Distinction of BrandZBrandZ is the only brand valuationtool that peels away all of the financialand other components of brand valueand gets to the core—how much brandalone contributes to corporate value. Thiscore, which we call Brand Contribution,differentiates BrandZ.THE VALUATION PROCESSStep 1: CalculatingFinancial ValuePart AWe start with the corporation. In somecases, a corporation owns only one brand.All Corporate Earnings come from thatbrand. In other cases, a corporation ownsmany brands. And we need to apportionthe earnings of the corporation across aportfolio of brands.To make sure we attribute the correctportion of Corporate Earnings to eachbrand, we analyze financial informationfrom annual reports and other sources,such as Kantar Worldpanel and KantarRetail. This analysis yields a metric wecall the Attribution Rate.We multiply Corporate Earnings by theAttribution Rate to arrive at BrandedEarnings, the amount of CorporateEarnings attributed to a particularbrand. If the Attribution Rate of a brandis 50 percent, for example, then half theCorporate Earnings are identified ascoming from that brand.Part BWhat happened in the past or evenwhat’s happening today is less importantthan the prospects for future earnings.Predicting future earnings requires addinganother component to our BrandZformula. This component assesses futureearnings prospects as a multiple ofcurrent earnings. We call this componentthe Brand Multiple. It’s similar to thecalculation used by financial analyststo determine the market value of stocks(Example: 6X earnings or 12X earnings).Information supplied by Bloomberg datahelps us calculate a Brand Multiple. Wetake the Branded Earnings and multiplythat number by the Brand Multiple toarrive at what we call Financial Value.Step 2: Calculating BrandContributionWe now have the value of the brandedbusiness as a proportion of the total valueof the corporation. But this branded businessvalue is still not quite the core thatwe are after. To arrive at Brand Value,we need to peel away a few more layers,such as the rational factors that influencethe value of the branded business, for example:price, convenience, availabilityand distribution.Because a brand exists in the mind of theconsumer, we have to assess the brand’suniqueness and its ability to stand outfrom the crowd, generate desire andcultivate loyalty. We call this unique roleplayed by brand, Brand Contribution.Here’s what makes BrandZ so uniqueand important. BrandZ is the onlybrand valuation methodology thatobtains this customer viewpoint byconducting worldwide on-going, indepthquantitative consumer research,online and face-to-face, building up aglobal picture of brands on a categoryby-categoryand country-by-countrybasis. Our research now covers over twomillion consumers and more than 10,000different brands in over 30 countries.Step 3: CalculatingBrand ValueNow we take the Financial Value andmultiply it by Brand Contribution, whichis expressed as a percentage of FinancialValue. The result is Brand Value. BrandValue is the dollar amount a brandcontributes to the overall value of acorporation. Isolating and measuringthis intangible asset reveals an additionalsource of shareholder value that otherwisewould not exist.Why BrandZ is the definitiveBrand valuation methodologyAll brand valuation methodologies are similar—up to a point.All methodologies use financial research andsophisticated mathematical formulas to calculate currentand future earnings that can be attributed directly toa brand rather than to the corporation. This exerciseproduces an important but incomplete picture.What’s missing? The picture of the brand at this pointlacks input from the people whose opinions are mostimportant—the consumer. This is where the BrandZmethodology and the methodologies of our competitorspart company.How does the competitiondetermine the consumer view?Interbrand derives the consumer point of view frompanels of experts who contribute their opinions. TheBrand Finance methodology employees a complicatedaccounting method called Royalty Relief Valuation.Why is the BrandZmethodology superior?BrandZ goes much further. Once we have theimportant, but incomplete, financial picture of the brand,we communicate with consumers—constantly. Ouron-going, in-depth quantitative research includes twomillion consumers and more than 10,000 brands in over30 countries.What’s the BrandZ benefit?The BrandZ methodology produces important benefitsfor two broad audiences.Members of the financial community—includinganalysts, shareholders, investors and CEOs—depend onBrandZ for the most reliable and accurate brand valueinformation available.Brand owners turn to BrandZ to more deeplyunderstand the causal links between brand strength, salesand profits and to translate those insights into strategiesfor building brand equity.134 BrandZ Top 100 Most Valuable Global Brands 2013 135

Methodology byValuations & Analysis byPart 5 | ResourcesOther reports Powered by BrandZOther reports Powered by BrandZFree apps for smartphones,tablets and iPad magazinesGet the BrandZ Top 100 Most ValuableGlobal Brands, the Latin America Top 50,the China Top 50 and many more insightfulreports on your smartphone or tablet.To download the apps for the BrandZrankings go to www.brandz.com/mobile (foriPhone and Android). The iPad interactivemagazine BrandZ Top 100 packed withexclusive content is available from the AppleApp store (search for BrandZ 100).BrandZ is the world’s largest and mostreliable customer-focussed source of brandequity knowledge and insight. To learn moreabout BrandZ data or studies, pleasevisit www.brandz.com or contact any WPPGroup company.BrandZ Top 50 Most ValuableLatin American Brands 2012The report profiles the most valuable brands of Argentina,Brazil, Chile, Colombia and Mexico and explores the socioeconomiccontext for brand growth in the region. For the iPadmagazine search BrandZ on iTunes.Beyond Trust: Engaging Consumers inthe Post-Recession WorldAn Index based on BrandZ, TrustR measures the extentto which consumers trust and are willing to recommendindividual brands. High TrustR correlates with bonding,sales and brand value. Complete information is availablefrom WPP companies.ValueD: Balancing Desireand Price for Brand SuccessAn index based on BrandZ, ValueD measures the gapbetween the consumer’s desire for a brand and perception ofthe brand’s price. It helps brands optimize sales, profit andpositioning. Complete information is available fromWPP companies.BrandZ Top 50 Most Valuable ChineseBrands 2013The report profiles Chinese brands, outlines major trendsThe Chinese Golden Weeksin Fast Growth CitiesWith research and case studies the report examines theThe Chinese New Year inNext Growth CitiesThe report explores how Chinese families celebrate thisdriving brand growth and includes commentary on thegrowing influence of Chinese brands at home and abroad. Goto www.brandz.com/mobile.shopping attitudes and habits of China’s rising middleclass and explores opportunities for brands in manycategories. For the iPad magazine search goldenweekson iTunes.ancient festival and describes how the holiday unlocks yearroundopportunities for brands and retailers, especially inChina’s Lower Tier cities. For the iPad magazine search forchina-newyear on iTunes.136 BrandZ Top 100 Most Valuable Global Brands 2013 137

Part 5 | ResourcesWPP Companies & AssociatesWPP Companies & Associates138 BrandZ Top 100 Most Valuable Global Brands 2013 139

Part 5 | ResourcesWPP Company ContributorsWPP Company ContributorsThese companies contributed knowledge, expertise and perspective to the report.WPP is the world’s largestcommunications services groupwith billings of $70.5 billion andrevenues of $16.5 billion. Throughits operating companies, theGroup provides a comprehensiverange of advertising and marketingservices including advertising andmedia investment management;consumer insight; public relationsand public affairs; branding andidentity; healthcare communications;direct, digital, promotion andrelationship marketing; and specialistcommunications. The companyemploys over 165,000 people(including associates) in over 3,000offices across 110 countries. WPPwas named Holding Company ofthe Year at the 2012 Cannes LionsInternational Festival of Creativity forthe second year running, since theaward was initiated.For further information, please visitwww.wpp.com.Added ValueAdded Value provides consultancy on branddevelopment and marketing insight for iconicbrands, both big and small, around the world.We help solve clients’ central marketingquestions about market, brand, innovationand communications with a footprint that nowextends across 21 locations in 13 countries.Added Value is part of Kantar, WPP’sconsumer insight and consultancy division.www.added-value.comBart MichelsGlobal CEOb.michels@added-value.comThe Brand UnionThe Brand Union is a global brand agencywith over 500 people in 23 offices in 16countries. As the leaders’ choice forbrand-related insight, advice and activation,The Brand Union delivers knowledge,inspiration and expertise from across theglobe to build brands that thrive in the realworld, using a balance of brand strategy,creativity and execution.www.thebrandunion.comTerry TyrrellEuropean Chairmanterry.tyrrell@thebrandunion.comDesignkitchenDesignkitchen is a creative digital agencyand part of Wunderman, a subsidiary of Y&R(WPP). Designkitchen offers services in digitalstrategy, content strategy and development,mobile web and app development, socialcampaign creation and management, websitedesign and development, video productionand motion graphics, digital out-of-home,SEO, and web analytics. Our clients spanglobal leaders in consumer and business-tobusinesscategories, including MotorolaSolutions, HP, United Mileage Plus, GeneralElectric, Burger King, Allstate and TDAmeritrade. Designkitchen is headquarteredin Chicago, with offices in New York andSan Francisco.www.designkitchen.comDanielle JohnVP, Brand Strategydanielle.john@designkitchen.comDigitDigit is a design company that has spent thelast 15 years at the forefront of technology.All of our work is underpinned by ourphilosophy called Simple Human Interaction.It’s all about making technology invisible,and using it to enable people and brands tocommunicate better.www.digitlondon.comLaura SimonManaging Directorlaura.simon@digitlondon.comFitchFounded in 1972, FITCH is a global designconsultancy with 14 offices in 9 countries.The consumer is at the heart of everythingwe do, and everything we do is the productof bold thinking. An integrated offer of both2D graphic and 3D environmental designenables us to create a seamless expressionof the brand at all touch points. Translatingbrand into consumer experience, FITCH has astrong expertise in retail design.www.fitch.comGavin ClarkGlobal Business Development Directorgavin.clark@fitch.comG2 WorldwideG2 Worldwide is a global brand activationagency network that helps marketersMaximize Brand CommitmentSM. G2’smultifaceted service offering brings togetherdirect marketing, data analytics, shoppermarketing, experiential marketing, brandingand design, promotional marketing,communications planning and digital/interactive marketing, to create innovativeand compelling marketing programs for ourclients. G2 utilizes unique and proprietarytools to gain insight into the consumer’sPurchase Decision JourneySM, fromconsideration to brand selection. The G2network operates 40 offices in 28 countries,and clients include Adobe, Aetna, CampbellSoup Company, The Coca-Cola Company,GlaxoSmithKline, Heineken, Kraft, Procter &Gamble, Vodafone and Volkswagen.www.g2.com/wwGreyGrey is the advertising network of GreyGroup. Grey Group ranks among the largestglobal communications companies. Under thebanner of “Famously Effective Since 1917,”the agency serves a blue-chip client roster ofmany of the world’s best known companies:P&G, GlaxoSmithKline, Diageo, DardenRestaurants, Pfizer, NFL, BoehringerIngelheim, Marriott Hotels & Resorts andT.J. Maxx.www.grey.comCatherine DavisNew Business and Marketing ManagerCatherine.davis@greyeu.comHill+KnowltonStrategiesHill+Knowlton Strategies is a leading globalstrategic communications consultancy,providing services to local and multinationalclients worldwide. The firm is globallyheadquartered in New York City, with 90offices in 52 countries — including 13 officesin the US. Led by Global Chairman and CEOJack Martin, Hill+Knowlton Strategies servesas a trusted advisor to clients, developing andexecuting communications campaigns andbusiness strategies to manage the impact ofthe public on an organization’s reputation,brand and bottom line.www.hillandknowlton.comJack MartinGlobal Chairman & CEOjack.martin@hkstrategies.comJWTJWT is the world’s best-known marketingcommunications brand. Headquartered inNew York, JWT is a true global network withmore than 200 offices in over 90 countries,employing nearly 10,000 marketingprofessionals. JWT consistently ranksamong the top agency networks in theworld and continues a dominant presence in the industry by staying on the leadingedge—from producing the first-ever TVcommercial in 1939 to developing awardwinningbranded content today. JWTembraces a WORLDMADE philosophy,making things inspired by the world throughblending technological innovation withinternational imagination.www.jwt.comLucy BarrettHead of Communications (UK and Europe)Lucy.Barrett@JWT.comRichard J. LabotGlobal Director of Network Engagementrlabot@g2.com140 BrandZ Top 100 Most Valuable Global Brands 2013 141

Part 5 | ResourcesWPP Company ContributorsKantar RetailKantar Retail is the world’s leadingshopper and retail insights and consultingbusiness and is part of the Kantar Groupof WPP. The company works with leadingbranded manufacturers and retailers to helpthem transform the purchase behavior ofconsumers, shoppers and retailers throughthe use of retail insights, consulting, analyticsand organizational development services.Kantar Retail tracks and forecasts over 1,000retailers globally, has purchase data on over200 million shoppers and among its marketleadingreports are the annual PoweRankingsurvey (USA and China), and IndustryShopper Study Across Retailers. KantarRetail works with over 400 clients and has 20offices in 15 markets around the globe.www.kantarretail.comWayne LevingsCEOwayne.levings@kantarretail.comKantar WorldpanelKantar Worldpanel is the world leader inconsumer knowledge and insights basedon continuous consumer panels. Its HighDefinition Inspiration approach combinesmarket monitoring, advanced analytics andtailored market research solutions. With over60 years’ experience, a team of 3,000, andservices covering more than 50 countriesKantar Worldpanel’s expertise in shopperand consumer behavior has become themarket currency for brand owners, retailers,market analysts and governmentorganizations globally.www.kantarworldpanel.comJosep MontserratGlobal CEOjosep.montserrat@kantarworldpanel.comKBM GroupKBM Group is the global leader inknowledge-based marketing solutions. Expertin both digital and traditional direct marketing,KBM Group helps companies manage,analyze and optimize marketing data toengage more effectively with their customersand prospects. KBM Group’s integrated,world-class solutions include strategicconsulting, digital services, databaseservices, analytics, marketing management,creative, agency services, response services,data and marketing outsourcing.www.kbmg.comGary LabenCEOgary.laben@kbmg.comLambie-NairnWith over 30 years experience, Lambie-Nairnis an international branding agency basedin London with eight additional offices inEurope, the Middle East and Latin America.Lambie-Nairn has specialist knowledge inmedia, entertainment, sports and technology.Famous for the iconic Channel 4 logo,Lambie-Nairn’s more recent work is equallyrenowned and includes BBC News, thecreation of the O2 brand and Qatar’s winningbid for the 2022 FIFA World Cup. If awardsare a barometer of success, Lambie-Nairnhas a lot to smile about.www.lambie-nairn.comLisa HillManaging Director Londonl.hill@lambie-nairn.comLandor AssociatesLandor Associates is one of the world’sleading strategic brand consulting and designfirms. Founded by Walter Landor in 1941,Landor pioneered many of the research,design, and consulting methods that are nowstandard in the branding industry. Partneringwith clients, Landor drives businesstransformation and performance by creatingbrands that are more innovative, progressive,and dynamic than their competitors. Landor’sholistic approach to branding is a balanceof rigorous, business-driven thinking andexceptional creativity.www.landor.comMary ZallaCEOmary.zalla@landor.comMECMEC help clients explore what’s possible,inspiring and guiding them to the optimumsolution for their brands. Then they exploitit, delivering maximum value to them. MECservices include: Media planning and buying,digital media, mobile, search, performancemarketing, social media, analytics and Insight,sport, entertainment and cause, multicultural,content, retail and integrated planning. MEC’s4,500 highly talented and motivated peoplework with domestic and international clientsin 84 countries. The agency is a foundingpartner of GroupM.www.mecglobal.comStephan BruneauGlobal Director, Analytics & Insightstephan.bruneau@mecglobal.comMediaComMediaCom is a world leading mediacommunications specialist, with billingsexceeding $28 billion, employing 4,600people across 89 countries. The company’sstrategy is driven by its “People first, betterresults” philosophy, which places people– consumers, clients and employees – atits core to build brand connections thatmaximize client growth. Our industry-leadingdivisions include MediaCom Interaction,MediaCom Response, MediaCom BeyondAdvertising, MediaCom Sport andMediaCom Business Science.www.mediacom.comRachada TepsatraGlobal Marketing DirectorRachada.Tepsatra@mediacom.comMillward BrownMillward Brown is a leading global researchagency specializing in effective advertising,strategic communication, media and brandequity research. Millward Brown helpsclients grow great brands through a set ofcomprehensive research-based qualitativeand quantitative solutions. Specialistpractices include Dynamic Logic (globalleader in measuring digital marketingeffectiveness), a network of media experts(measuring mass media effectiveness),Firefly Millward Brown (our global qualitativenetwork), a neuroscience practice (usingneuroscience to optimize the value oftraditional research techniques) and MillwardBrown Optimor (focused on supportingclients to maximize return on brand andmarketing investments). Millward Brown ispart of Kantar, the insights, information andconsultancy division of WPP.www.millwardbrown.comEileen CampbellGlobal CEOeileen.campbell@millwardbrown.comMillward BrownOptimorMillward Brown Optimor is the brand andbusiness consultancy of Millward Brown,dedicated to igniting business growth throughtransformative brand and market strategies.Millward Brown Optimor provides strategiccorporate and brand consulting, rooting itsapproach in consumer research, stakeholderunderstanding and financial analysis.www.millwardbrown.com/mboptimorNick CooperManaging Directornick.cooper@millwardbrown.comMindshareMindshare is a global media agency networkwith billings in excess of $29.2 billion (source:RECMA). The network consists of 113 officesin 82 countries throughout North America,Latin America, Europe, Middle East, and AsiaPacific, each dedicated to forging competitivemarketing advantage for businesses and theirbrands. Mindshare is part of GroupM, whichoversees the media investment managementsector for WPP.www.mindshareworld.comGreg BrooksGlobal Marketing Directorgreg.brooks@mindshareworld.comOgilvy & MatherOgilvy & Mather is one of the largestmarketing communications companiesin the world comprised of industryleading units in all of the followingdisciplines: advertising; public relationsand public affairs; branding and identity;shopper and retail marketing; healthcarecommunications; direct, digital, promotionand relationship marketing; consulting,research and analytics capabilities; brandedcontent and entertainment; and specialistcommunications. O&M services FortuneGlobal 500 companies as well as localbusinesses through its network of more than450 offices in 120 countries.www.ogilvy.comMiles YoungGlobal CEOmiles.young@ogivly.comPossiblePOSSIBLE is a digital agency focused oncreating great work that delivers measurablebusiness results. The agency specializes inaward-winning creative, technology, ideasand insights, performance marketing andinteractive touch. On paper, POSSIBLE is 27offices in 13 countries around the globe. Inaction, POSSIBLE is 1200+ people united bya drive to create compelling work. Clientsinclude Barclays, Comcast, The Bill & MelindaGates Foundation, Procter & Gamble,Microsoft, Mazda and Starwood Hotels andResorts Worldwide. POSSIBLE is part ofWPP Digital.www.possible.comShane AtchisonGlobal CEOshane.atchison@possible.com142 BrandZ Top 100 Most Valuable Global Brands 2013 143

Part 5 | ResourcesWPP Company ContributorsSalmonSalmon is a highly innovative e-commercedigital agency helping leading retail,wholesale and manufacturing brandsdefine, deliver and exploit enterprise-scalee-commerce and multichannel operations.Salmon quickly understands the businessvision, creates realistic project plans andefficiently delivers solutions to plan. Salmonhas offices in the UK, China and Australia.Clients include Akzo Nobel, Argos, Audi UK,Halfords, Morrisons and Selfridges.www.salmon.comSue PrattHead of Marketingmarketing@salmon.comTeam Detroit Inc.Team Detroit brings together five of WPP’slargest marketing agencies in one location,Dearborn, Michigan, to provide its clientsaccess to best practises and talent. TeamDetroit is the 21st century equivalentto the full-service agency, acting as aportal to provide a single point of contactand accountability.www.teamdetroit.comGeri DonahoeBusiness Planning Directorgeri.donahoe@teamdetroit.comTGIGlobal TGI helps marketers to expandmarkets, launch new products, respondto competitive threats, and plancommunications. We do this by providinga unique 360° understanding of consumerattitudes and behavior – with the depthprovided from 700,000 personal interviewsconducted annually across 60+ countries.Typical client engagements can involvemarket sizing, segmenting, trending, andlinking with YOUR survey data. With insightsdrawn from the largest network of consumersurveys in the world, marketers can beconfident that key decisions are based onrobust, reliable and high-quality research.www.globaltgi.comGeoff WickenHead of TGI InternationalGeoff.Wicken@kantarmedia.comThe Forward GroupForward Worldwide is a content marketingagency specializing in developing strategies,planning, managing and creating high qualityomni-channel content for brands. Clientsinclude Tesco, Patek Philippe, Standard Life,Barclays, B&Q, and Fabric.www.theforwardgroup.comSimon HobbsCEOsimon.hobbs@forwardww.comThe FuturesCompanyThe Futures Company is an award-winning,global strategic insight and innovationconsultancy. Unparalleled global expertisein foresight and futures enables The FuturesCompany to unlock new sources of growthfor clients through a range of consultancy,global insight and subscription solutions.The Futures Company was formed throughthe integration of The Henley Centre,HeadlightVision, Yankelovich and mostrecently, TRU.www.thefuturescompany.comJennifer ChildsMarketing & PR Managerjennifer.childs@thefuturescompany.comTNSTNS advises clients on specific growthstrategies around new market entry,innovation, brand switching and stakeholdermanagement, based on long-establishedexpertise and market-leading solutions.With a presence in over 80 countries,TNS has more conversations with theworld’s consumers than anyone else andunderstands individual human behaviors andattitudes across every cultural, economic andpolitical region of the world.www.tnsglobal.comBertina BusMarketing Directorbertina.bus@tnsglobal.comVMLVML is a global digital marketing agencywith major operations on five continents.Dedicated to delivering creative solutions atthe intersection of marketing and technology,VML engineers best-in-class digitalexperiences for some of the most respectedand recognized brands in the world. VMLwas recognized by Ad Age as a StandoutShop in 2012, and was the recipient of sevenCannes Lions awards last year.www.vml.comLynsay MontourCommunications Managerlmontour@vml.comWundermanAdvertising Age ranks Wunderman as the#1 digital and #1 CRM agency in the world.Founded by Lester Wunderman in 1958,Wunderman has 170 offices in 60 countriesoffering brand experience, consumerengagement, data and insights and worldhealth marketing solutions. Powered bycomplex analytics and strategic insight,creative content engages the consumer –as participant, critic, creator and champion –in always-on conversations to propel growth.Clients include Best Buy, Citibank, Coca-Cola, Ford, Levi’s, Microsoft, Nokia, Novartis,Telefónica and leading local and regionalbrands. Wunderman is a member of WPPand part of Young & Rubicam Group.daniel.morel@wunderman.comDaniel MorelChairman and CEOdaniel.morel@wunderman.comY&RY&R is one of the leading global marketingcommunications companies, comprisingthe iconic Y&R Advertising agency; VML,one of the world’s most highly regardedand fastest-growing digital agencies; aswell as premier mobile marketing companyiconmobile. Y&R Advertising has 186 officesin 90 countries around the world. Its clientsinclude Campbell’s Soup Company, Colgate-Palmolive, Danone, Dell, Virgin Atlantic,Xerox, Revlon, GAP, Land Rover, LGand Telefónica.www.yr.comDavid M SableCEOdavid.sable@yr.com144 BrandZ Top 100 Most Valuable Global Brands 2013 145

Part 5 | ResourcesBrand ExpertsBrand experts who contributedto the reportThese individuals, from WPP companies, provided thought leadership, research, analysisand insight to the report.Aaron Shields FitchKevan Mulcahey Kantar WorldpanelLayla Kammeier Lambie-NairnAdrian Zambardino OgilvyAdam Poole Lambie-NairnAlexis Cuddyre DigitAlice Brady MindshareAlison Martin WorldpanelAmy Harrison Added ValueAmy Li TGIAnastasia Kourovskaia Millward Brown OptimorAndrew Curry The Futures CompanyAnne Zybowski Kantar RetailArvind Kapavarapu MindshareBarry Kessel WundermanBen Peers Lambie-NairnBhargavi Manohar Millward BrownBrad Doble Lambie-NairnBryan Gildenberg Kantar RetailBryan Roberts Kantar RetailCarl Hartman WPPCate Hunt Added ValueCatherine Coulson TNSCharles Duncan VMLCharles Schembri TNSChris Whalley Millward BrownChristianne Hamilton Grey, LondonClaire Koeneman Hill+Knowlton StrategiesColin Gray MediaComDany Khosrovani JWTDavid Keefe Landor AssociatesDavid Recaldin Kantar RetailLeah Hattendorf JWTLeonardo Reyes MindshareLindsay Resnick KBMGLopamudra Mukherjee Millward BrownLloyd Burdett The Futures CompanyLyndon Cao Ogilvy & MatherLouise Pearce The Forward GroupMark Edwards TGIMark Rukman Y&RMartin Coady VMLNakia Clements MindshareMelanie Puddick Added ValueNgaia Calder TNSNick Ashley MindshareNick Cooper Millward Brown OptimorNimai Swain Millward BrownNorm Johnston MindshareOliver Joyce MindsharePatty Bifulco Hill+Knowlton StrategiesParnika S Mehta Millward BrownPeggy Moylan Team Detroit Inc.Peter Necarsulmer Hill+Knowlton StrategiesPhilip Herr Millward BrownReut Klein-Meron MediaComRob McCave MindshareRobin Sherk Kantar RetailRob Alexander JWTRon Carroll Y&RRosie Riley Millward Brown Scott Miskie JWTScott Pollack WundermanShane Atchison PossibleSilvia Quintanilha Millward BrownElena Chuvakhina FitchElaine Quirke Mindshare LuxuryEleanor Sellar Added ValueEduardo Tomiya BrandAnalyticsShelley Diamond Y&RScott Townsend Ogilvy & MatherStephen Gilbert Ogilvy & MatherSpencer Osborn Ogilvy & MatherGabe Dorosz DesignkitchenEmma Beckmann Landor AssociatesHayes Roth Landor AssociatesGiovanni Romero Mindshare WorldwideIan Elmer Millward BrownJane Liu MECJames Marples MediaComJim Vancho Millward BrownJohanna Fawcett Kantar RetailJohn Rand Kantar RetailJohn Rudaizky WPPJonathan Dodd G2 WorldwideKaiyu Li Y&RKaren Imbrogno KBM GroupKate Jones Added ValueStephen Mader Kantar RetailSue Pratt SalmonSteve Barton Barton ConsultingStewart Pearson WundermanTerry Tyrrell The Brand UnionSue Burden Grey, LondonTheresa Loo MECTim Greenhalgh FitchSuzannah Rowland WorldpanelTim Pritchard TNSTodd Sullivan Ogilvy & MatherUwe Becker The Brand UnionTracy Allnutt TGIVicky McPhail Hill+Knowlton StrategiesVladimir Melikov Millward BrownYann Thefaine Mindshare146 BrandZ Top 100 Most Valuable Global Brands 2013 147

Part 5 | ResourcesBrandZ Top 100 TeamBrandZ Top 100 TeamThese individuals created the report, providing valuations, research, analysis and insight,editorial, photography, production, marketing and communications.Alexandra HillAlexandra Hill is Global Communications and MarketingAssistant at Millward Brown and assists with the marketing andcommunications of the BrandZ projects.Cecilie ØstergrenCecilie Østergren is a professional photographer, based inShanghai, who has worked closely with WPP agencies since 2009.Cecilie specializes in documentary, consumer insight and portraits.In collaboration with Added Value, she produced award-winninginsights on Chinese consumers. She’s travelled extensively inChina, Brazil and other locations to photograph images for theBrandZ reports. Her photographs of China have been exhibitedin the Houses of Parliament, London. In collaboration with Danishbook publisher Politikens Forlag, she’s photographed travel booksabout India, Greece and Denmark, her native country.David RothDavid Roth is the CEO of the Store WPP for Europe, the MiddleEast and Africa (EMEA) and Asia and leads the BrandZ worldwideproject. He has been associated with China for the past 19 yearsand advises many companies and retailers on their China entrystrategy and the changing Chinese consumer. Prior to joining WPPDavid was main board Director of the international retailer B&Q.Elspeth CheungElspeth Cheung is Head of BrandZ Valuation for MillwardBrown Optimor. She is responsible for research, analysis andexternal communication for the BrandZ rankings and otherbrand strategy engagements.Katie PearceKatie Pearce is Global Communications & Marketing ProjectManager at Millward Brown, and works on the marketingand communications of the BrandZ projects, liasing withcontributors worldwide and coordinating production.Ken ScheptKen Schept is a professional writer specializing in articles andreports about brands, marketing and retailing. For the past severalyears he’s helped develop the BrandZ library of reports. Hespent much of his career as an editor with a leading US businessmedia publisher.Miquet HumphryesMiquet Humphryes is Director, Global Corporate Marketing atMillward Brown. She is responsible for overseeing the marketingand communications for the Top 100 ranking.Nick CooperNick Cooper is Managing Director of Millward Brown Optimor. Heleads the overall practice in Europe and the development of brandstrategy, portfolio optimization and brand licensing.Peter WalshePeter Walshe, Global Director of BrandZ, was involved in thecreation of this brand equity and insight tool 15 years ago, and hascontributed to many valuation studies and developed BrandZmetrics, including CharacterZ, TrustR and ValueD.Robin HeadleeRobin Headlee is Vice President of Millward Brown Optimor.She is responsible for managing BrandZ from a valuationperspective as well as leading other Millward Brown Optimorstrategy engagements.With AppreciationTo Layla Kammeier, Adam Poole and Ben Peers, the Lambie-Nairnteam that designed and produced this report (Ben also supplyingadditional photography), and to Amanda Harrison, WPPProject Manager and Coordinator.The BrandZbrand valuationcontact detailsThe brand valuations in the BrandZ Top 100Most Valuable Global Brands are producedby Millward Brown Optimor using data fromKantar Worldpanel and Kantar Retail (Pleasesee WPP Company Contributors on page140), along with Bloomberg.The consumer viewpoint is derived from theBrandZ database. Established in 1998and constantly updated, this database ofbrand analytics and equity is the world’slargest, containing over two million consumerinterviews about more than 10,000 differentbrands in over 30 countries. (Please see theBrandZ Valuation Methodology on page 134)For further information about BrandZcontact any WPP Group company or:Peter WalsheGlobal BrandZ Director+44 (0) 1926 826 213peter.walshe@millwardbrown.comRobin HeadleeVice President Millward Brown Optimor+44 (0) 207 126 5082robin.headlee@millwardbrown.comBloombergThe Bloomberg Professional service is thesource of real-time and historical financialnews and information for central banks,investment institutions, commercial banks,government offices and agencies, law firms,corporations and news organizations in over150 countries. (For more information, pleasevisit www.bloomberg.com)148 BrandZ Top 100 Most Valuable Global Brands 2013 149

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