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Top 100Most valuableglobal brands2011Valuation and Methodology by

BrandZ Top 100 2011 4Welcome to the sixthannual BrandZ Top 100Most Valuable GlobalBrands.In the wake of the economic meltdown a mere18 months ago and signs in most markets that therecession is easing its grip on purse strings, we areseeing the emergence of a new consumer mood.In this year’s BrandZ Top 100 brand evaluationreport, evidence suggests that brands are movingfrom recovery to real growth, with significantincreases in brand value across almost allproduct sectors.While this is good news for brands the world over, residualconsumer behaviour and expectations pose increasedchallenges for brands striving to catch the wave. And theretail environment – the most direct connection betweenbrand and buyer – will play an increasingly influential role inshaping a shopper’s moment of truth in this new world.In our work with many of the companies you’ll read about inthe following pages, we’re being asked by our clients to helpthem break through to high-value consumer segments thatare increasingly influenced by non-traditional communicationchannels and who have shifted perceptions of believabilityand value. Long gone are the days when what a marketerwould say about its brand was enough to shape opinion.Instead, we find greater cynicism amongst consumers whoare willing to share insight and information, and who cansample, return and move on to another choice at the clickof a button — all in a virtual environment that’s difficult tocontrol. But we are also seeing that retail is becoming acritically important moment of real-world interaction, wherebrands can add levels of engagement and experience wherethe consumer is ready to make a decision and spend.Today’s retail environment is not dissimilar to the onlineone a decade ago: it is a place where the rules are beingrewritten; where expectations are high and companiesare changing the way their brand is brought to life. Often,it is also the final stage along the shopper journey, oneleading-up to a cash till that shapes both short-term salesresults and long term brand value.We’re pleased to share the findings of sister WPP agencyMillward Brown’s BrandZ Top 100, one of the world’smost comprehensive brand valuation guides. Over nearly40 years of translating brands into consumer experience,FITCH is proud to have partnered with so many of thebrands you will find featured on these pages.We’d be delighted to discuss the findings found here andhope you find the report insightful.Lois JacobsCEO FITCHwww.fitch.com

PrefaceThe definitive brand valuation toolBrandZ Top 100 2011: INTRODUCTION 8The BrandZ Top 100 Most Valuable Global Brands isthe most comprehensive annual ranking of brand value.Developed by Millward Brown Optimor, the rankinganalyzes the world’s leading brands and theeconomic and competitive dynamics that influencevalue fluctuations.BrandZ focuses on market-facing brands that generaterevenue and profits through the sale of goods andservices directly to consumers or business customers,establishing the value of the Coca-Cola brand, forexample, rather than the Coca-Cola Company.It’s the only ranking grounded in both quantitativeconsumer research and in-depth financial analysis.Created 13 years ago, and perpetually updated, the WPPBrandZ database contains information from more than2 million in-depth consumer interviews in 30 countries.This proprietary data is analyzed with publicly availablefinancial information from Bloomberg, Kantar Worldpaneland other sources.These valuations are critical to the CEOs, financial andmarketing executives, security analysts, institutionalinvestors and others who depend on well-researched,reliable information for the assessments and comparisonsthat lead to well-considered decisions. All valuationsin this report appear in US dollars and are subject tofluctuations for those brands that are denominated inother currencies.Content HighlightsNew this year, the report includes thoughtful commentsby experts from WPP operating companies and othersinterpreting societal shifts that are likely to influencebrands and brand value in the future as they did in 2010:– The Digital Revolution: Finding the shopper along therandom and confusing “Path to Purchase.”– A Generational Shift: Meeting the different expectationsof the “Millennial” and “Boomer” generations.The report also includes, for the first time, in-depthreports on brand development in three of the world’sfastest-growing markets – Brazil, China and India.An overview summarizing key brand and productsector developments and trends accompanies the Top100 ranking. Charts and analysis explore year-on-yearchanges in brand value:– Top 20 Risers: Brands that ascended fastest.– Newcomers: Brands ranked for the first time.– Year-on-Year Change: What sectors moved up ordown.– Brand Contribution: Customer-bonding leaders.– Regions: Value concentration geographically.Brands are ranked and their performances analyzed in 13product sectors: apparel, beer, cars, fast food, financialinstitutions, insurance, luxury, oil and gas, personal care,retail, soft drinks, technology and telecom providers. Thereport concludes with a series of recommendations forbuilding great brands and an in-depth explanation of theBrandZ valuation methodology.

Top 100overviewBrand value rose 17 percentas all sectors gained and theeconomy shifted from recoveryto growthApple became the world’s mostvaluable brand last year.The brand increased in value by 84 percent to $153.3billion. Apple’s rise came as the value of the BrandZ Top100 Most Valuable Global Brands appreciated by 17percent to $2.4 trillion, driven by year-on-year growthin all 13 product sectors studied.Increases in fast food (22 percent), luxury (19 percent)and technology (18 percent) led sector brand valueappreciation, although a dramatic spike in value pushedinsurance to first place because results included threelarge, expanding Chinese companies. Four of the Top5 ranking leaders were in technology. McDonald’s wasthe fifth.Most sectors also grew in value compared with 2008pre-recession levels. The Top 100 brands increased 24percent during that period, demonstrating the resilienceof leading brands and suggesting the economy hasshifted from recovery into real growth. In fact, the Top100 brands have added $500 billion in value since 2008.Since the launch of the Top 100 Most Valuable GlobalBrands in 2006, the value of the Top 100 has increased64 percent.Along with Apple, year-on-year standout performersfor the 2011 BrandZ brand valuation report includeFacebook, Amazon and Baidu.– With a 246 percent rise in brand value to $19.1 billion,Facebook made the BrandZ Top 100 for the first timeat No. 35.– Amazon edged passed Walmart to become the No. 1retail brand, with a 37 percent rise in brand value to$37.6 billion.– The Chinese search engine Baidu increased 141percent in brand value to $22.6 billion, ranking it No. 29in the Top 100, up from No. 75 a year ago.Toyota rebounded to the No. 1 rank in cars.Its performance demonstrated the power of strong brandsto recover from the most fundamental challenges toproduct efficacy and reputation.BrandZ Top 100 2011: INTRODUCTION 10Technology and telecom brands continued to grow asa portion of the BrandZ Top 100 Most Valuable GlobalBrands. These categories now comprise a third ofthe Top 100 brands compared with a quarter in 2006.Reflecting the influence of fast-growing markets,12 Chinese brands, 3 Brazilian brands, 1 Indian brandand 1 Russian brand appear in the Top 100. Two Indianbrands narrowly missed the Top 100 in brand value,but rank in the Top 20 most valuable brands in thetechnology sector.Changes in what we value, how we shopFrugality eased last year, but consumers didn’t spendfrivolously, suggesting that brands will continue to feel theimpact of the recession-accelerated shift to considered –rather than conspicuous – consumption.Overall, consumers sought quality at a good price.The desire for well-crafted and long-lasting merchandiseat almost any price ignited sales in luxury, with brandslike Louis Vuitton and Hermès appreciating significantlyin value. Brands in the middle received less consumerattention.Changes in shopping behavior touched most sectors asconsumers emerged from the recession more skepticaland savvy and more empowered by digital technology tosearch for the best prices and most trusted reviews, evenon mobile devices while standing in store aisles. Thesedevelopments influenced the ways brands communicatedwith consumers, increasing investment in social media, as“engaging” replaced “targeting” in the marketing lexicon.With Facebook sites, YouTube videos and mobile apps,brands attempted to cultivate the long-term loyalty of“Millennials,” now in their teens and twenties. At the sametime, brands worked to retain the parent generation ofrelatively wealthy “Boomer” customers, the oldest ofwhom turn 65 this year.

BrandZ Top 100 2011: INTRODUCTION 12New media messagesUsing both new and traditional media, brandscommunicated messages shaped by themes thatinformed this year’s BrandZ Top 100 Most ValuableGlobal Brands, including:– Assertion of individuality: The surge of personalexpression empowered by the Internet was matchedby a consumer preference for personal expressionin apparel and other products, resulting in a trend tothe bespoke (for those who could afford it) or masscustomization (for everyone else).– Concern for personal health and wellness: Consumers,across economic groups, paid more attention to thefood they put in their bodies (improvements in fastfoodmenus) and the products they put on their bodies(changes in personal-care ingredients).– Concern about the environment: Consumers weren’twilling to pay any price for environmentally friendlyproducts, but being “green” became a hygiene factorin some categories (the introduction of more hybrid andsome electric cars).– Concern about product provenance: Consumerswanted to feel good about their possessions.They wanted peace of mind, knowing that any pleasurethey derived from owning a product did not come atthe expense of the people who made it.The changes in media and message influenced the verynotion of brand. Digital media enabled brands to becomemore present and interactively involved in the lives ofconsumers. Prompted by a shift in consumer values,brands pursued their commercial interests in a largercontext, if not with a higher purpose.

®13 BrandZ Top 100 2011: INTRODUCTIONBrandZ Top 100 2011: INTRODUCTION 14BrandZ Top 100 Most Valuable Global Brands 2011# Brand Brand Value % Brand Value2011 ($M) Change 2011vs. 2010# Brand Brand Value % Brand Value2011 ($M) Change 2011vs. 2010# Brand Brand Value % Brand Value2011 ($M) Change 2011vs. 2010# Brand Brand Value % Brand Value2011 ($M) Change 2011vs. 20101 153,285 84%26 24,312 23%51 15,168 0%76 11,558 7%2 111,498 -2%27 24,198 11%52 15,131 N/A77 11,363 -37%3 100,849 17%28 22,587 -4%53 14,900 3%78 11,291 -19%4 81,016 23%29 22,555 141%54 14,306 19%79*****11,147 -37%5 78,243 2%30 22,425 3%55 14,258 0%80 S 10,883 12%6*73,752 8%31 21,834 -15%56 14,182 -1%81 10,735 -28%7 69,916 N/A32 19,782 -4%57 13,917 10%82 10,731 15%8 67,522 18%33 19,542 N/A5813,904 -2%83 10,540 N/A9 57,326 9%34 19,350 11%59 13,754 -8%84 10,525 26%10 50,318 12%35 19,102 246%60 13,543 16%85******10,443 19%11 44,440 1%36 17,597 N/A61 13,421 39%86 10,335 15%12 43,647 -2%37 17,530 -20%62 13,006 7%87 10,076 N/A13 42,828 N/A38 17,290 15%63****12,931 1%88 10,072 17%14 37,628 37%39 17,182 3%64 12,542 -27%89 9,877 10%15 37,277 -5%40 17,115 23%65 12,471 3%90 9,600 29%16 36,876 97%41 16,973 10%66 12,413 3%91 9,587 N/A17 35,737 35%42 16,931 19%67 12,160 7%92 9,358 -43%18 35,404 -11%43 16,909 N/A68 12,083 -3%93*******9,263 4%19**29,774 N/A44 16,314 -2%69 12,033 45%94 9,251 6%20 28,553 15%45***15,952 0%70 11,998 29%95 8,838 21%21 27,249 N/A46 15,719 11%71 11,917 41%96 8,760 4%22 26,948 9%47 15,674 17%72 11,901 40%97 8,668 5%23 26,078 7%48 15,449 19%73 11,759 25%98 8,600 15%24 25,524 22%49 15,427 5%74 11,694 N/A99 8,535 N/A25 24,623 -20%50 15,344 12%75 11,609 N/A100 8,439 -9%*The Brand Value of Coca-Cola includes Lites, Diets and Zero**Deutsche Telekom is in the process of re-branding its business to ‘T’, which incorporates T-Mobile, T-Home and T-Systems***The Brand Value of Budweiser includes Bud Light****The Brand Value of Pepsi includes Lites, Diets and Zero*****The Brand Value of Nintendo includes Wii and Nintendo DS******The Brand Value of Sony includes Playstation 2 and 3, as well as PSP*******The Brand Value of Red Bull includes sugar-free and ColaSource: Millward Brown Optimor (including data from BrandZ, Kantar Worldpanel and Bloomberg)

Top 20 RisersTechnology, vision drove growthBrandZ Top 100 2011: INTRODUCTION 16Facebook led the top risers last year.With a 246 percent surge in brand value, Facebookentered the BrandZ Top 100 for the first time at No. 35.Along with Facebook, the Top 20 Risers included onlineretailer Amazon and four other technology brands –Apple and Baidu along with Siemens and Cannon, whichbenefited from resurgence in business-to-businessdemand. Visionary, entrepreneurial leadership alsocontributed to growth in value, especially for Facebook,Apple, Amazon and Starbucks.With almost 600 million members worldwide, Facebooklast year was anointed “The Social Network” by the film ofthe same name about the firm’s founding in 2004 by MarkZuckerberg. Ironically, the film’s release coincided withFacebook’s rapid evolution into a powerful commercialplatform exploring ways to monetize its social reach byconnecting shoppers, retailers and brand marketers.Valuation is based on a Goldman Sachs study.Apple rose to the No. 1 position in the BrandZ Top 100Most Valuable Global Brands. It earned an 84 percentincrease in brand value with successful iterations ofexisting products like the iPhone, creation of the tabletcategory with iPad, and anticipation of a broadenedstrategy making the brand a trifecta of cloud computing,software, and innovative, well-designed devices.Perpetual concern over the health of CEO Steve Jobsintensified at the end of the year when he announced atemporary leave of absence.The Chinese search engine Baidu captured rank No. 29in the BrandZ Top 100, up from No. 75 in 2009 on asharp 141 percent rise in brand value. As more of China’s1.3 billion citizens searched the Internet, they turned toBaidu because the brand has deeply understood thenuances of China’s diverse cultures and languages.Illustrating how dramatically shopping has changed,Amazon, the online company with no stores, surpassedWalmart as the most valuable retail brand. The companycontinued to add categories last year, even food, to drivetraffic. Since founding the company in 1995, Jeff Bezoshas worked to perfect its unparalleled selection, peerreviews and a delivery scheme that builds loyalty.The Starbucks 40 percent rise in brand valuedemonstrated the success of the brand revitalizationinitiatives implemented two years ago by Howard Shultzwhen he returned as CEO. He closed underperforminglocations and improved the coffeehouse experience whileextending the brand into instant coffee and preparing itfor aggressive international and multi-channel growth ingrocery as well as fast food.TOPBRANDSBrand Value$MBrand ValueGrowth1 Facebook 19,102 246%2 Baidu 22,555 141%3 Wells Fargo 36,876 97%4 Burberry 3,379 86%5 Apple 153,285 84%6 Skol 4,579 68%7 Pizza Hut 5,305 58%8 GEICO 2,785 53%9 StandardChartered Bank12,033 45%10 Hermès 11,917 41%11 Starbucks 11,901 40%12 Petrobras 13,421 39%13 Amazon 37,628 37%14 UPS 35,737 35%15 Cartier 5,327 34%16 Estée Lauder 2,592 31%17 MetLife 2,270 31%18 Siemens 11,998 29%19 IKEA 7,293 28%20 Canon 7,588 27%Source: Millward Brown Optimor(including data from BrandZ,Kantar Worldpanel and Bloomberg)The housing recovery drove IKEA’s 28 percent growth.Sector strength also helped brands in fast food,insurance and luxury. While the brand value of the luxurysector still lagged its pre-recession level, customers cameback as evinced by Burberry’s 86 percent leap and thebrand appreciation of Cartier, Estée Lauder and Hermès.The fast-growing market dynamism that boosted China’sBaidu also pushed the brand values of Skol, Brazil’slargest beer brand, up 68 percent, and Petrobras, thecountry’s oil and gas giant, which advanced 39 percent.The 58 percent rise in the brand value of Pizza Hut wasin part driven by its performance in China. StandardChartered Bank of the UK, up 45 percent, also benefitedfrom global business.

NewcomersMore Chinese brands debutedThe Newcomers ranking featuredbrands from fast-growing marketsand Canada.The ranking included six financial institutions and fivetelecom and technology brands. Almost half of thenewcomers were Chinese brands. Russia’s largestbank, Sberbank, and Itaú, one of Brazil’s major banksalso made the ranking for the first time. The increasein telecom providers in part reflects a change in thevaluation method that now includes all a brand’sbusinesses: landlines, cable, wireless mobile and Internet.With almost 600 million members worldwide since itsformation in 2004, Facebook was the most familiarnewcomer name. Scotiabank, also known as Bank ofNova Scotia, a less well-known entry, benefited fromCanada’s strong housing market and increased consumerborrowing. In addition, the bank operated in 50 countriesand was especially active in the fast-growing markets ofAsia and Latin America.BrandZ Top 100 2011: INTRODUCTION 18TOPBRANDSBrand Value$M19 Deutsche Telekom 29,77433 China Life Insurance 19,54235 Facebook 19,10243 Agricultural Bank of China 16,90952 Tencent/QQ 15,13175 Telecom Italia 11,60983 Ping An 10,54087 Scotiabank 10,07690 Itaú 9,60091 China Telecom 9,58799 Sberbank 8,535Source: Millward Brown Optimor(including data from BrandZ,Kantar Worldpanel and Bloomberg)

Year-on-YearChangeAll sectors grew in brand valueBrandZ Top 100 2011: INTRODUCTION 20Category growthAll sectors grew in brand valueEach of the 13 product sectorsmeasured in the BrandZ Top 100ranking appreciated in overall brandvalue last year.The performance dramatically differed from results a yearearlier when just four sectors appreciated only moderatelyin brand value. It signaled a shift in the global economyfrom recovery to real growth.It also demonstrated the resilience of brands. Brand valuein many sectors not only appreciated year-on-year, butalso exceeded pre-recession levels. Fast food, whichclimbed a substantial 22 percent last year alone, was up42 percent when compared with 2008.Technology ascended too, 18 percent year-on-yearcompared with 32 percent over the three-year period.The story was similar for beer, which grew 7 percent lastyear but 32 percent since the recession. Soft drinks grew5 percent last year and 26 percent since 2008.Categories hardest hit during the recession posted gainsin brand value last year, but the values remain below prerecessionlevels. Luxury returned robustly. Even with a 19percent increase in brand value, however, the categoryremained 13 percent lower than its 2008 level.The car category grew by 7 percent last year onthe rebound of the resilient Toyota brand, strongperformances by Ford, GM and other major car makers,and the appetite for badge status in China and otherfast-growing markets. Brand value for the car category,however, remained 27 percent under its 2008 level.TOPBRANDSBrand ValueGrowth (%)'11 vs. '10Brand ValueGrowth (%)'11 vs. '08Insurance* 137% 6%Fast Food 22% 42%Luxury 19% -13%Technology 18% 32%Apparel 10% -1%Financial Institutions 9% 7%Beer 7% 32%Cars 7% -27%Soft Drinks 5% 26%Personal Care 3% 5%Retail 2% 7%Oil & Gas 1% N/ATelecom Providers N/A N/A*Value growth in the Insurance category results fromthe inclusion of China Life Insurance, Ping An andChina Pacific Insurance. Source: Millward BrownOptimor (including data from BrandZ,Kantar Worldpanel and Bloomberg)While apparel, personal care, oil and gas, retail andfinancial institutions moved at slower rates, they allmoved up. The dramatic year-on-year rise for theinsurance sector resulted from the inclusion of threelarge, fast-growing Chinese brands: China Life, Ping Anand China Pacific.

BrandContributionLeaders benefited fromfast-growing marketsMost of the Top 15 brandcontribution leaders were basedin Europe and exported to Asiaand Latin America. In the largestrepresentation to date from fastgrowingmarkets, three Brazilianbrands and one brand from Chinaalso ranked.The ranking included seven luxury brands, threebeer brands and two luxury car brands. This mix ofcategories generally ranks high in brand contribution,which measures the emotional bond between brandand customer.That bond also accounted for the appearance of apersonal care brand and a baby care brand in theTop 15. Brazil’s Natura, a producer of cosmeticsand skincare products, is known for cultivating closecustomer relationships using organic products anddirect sales. Pampers consistently ranks high in brandcontribution and trust.More high-tech than high-touch, the presence of China’slargest search engine, Baidu, seemed less predictable.Deeply integrated into the lives of Chinese young people,consumers respect the brand for its effectiveness as asearch engine because of its understanding of China’scultural and language diversity.Brazil’s best-selling beer, Skol, promoted music events.Brahma beer also emphasized a youthful and energeticview of life. The Guinness brand remained iconic despitethe economic pressure in Ireland, its home market.In general, Moët & Chandon, Louis Vuitton, Hermès, andthe other luxury brands ranked high in brand contributionemphasized heritage and craftsmanship and limiteddistribution in the “mass luxury” market.TOPBRANDSBrand Value$MBrandContribution*1 Möet & Chandon 4,570 52 Baidu 22,555 53 Skol 4,579 54 Hennessy 4,997 55 Pampers 19,350 56 Louis Vuitton 24,312 57 Natura 4,614 58 Brahma 1,996 59 Hermès 11,917 510 Chanel 6,823 511 Rolex 5,269 512 Guinness 3,446 513 Porsche 12,413 514 BMW 22,425 515 Gucci 7,449 5*The Brand Contribution Index runs from1 (low) up to 5 (high). Source: Millward BrownOptimor (including data from BrandZ)BrandZ Top 100 2011: INTRODUCTION 22

25 BrandZ Top 100 2011: INTRODUCTIONBrandZ Top 100 2011: INTRODUCTION 26Continental Europe:TOPBRANDSBrand Value$MBrandContributionBrandMomentumBrand ValueChange1 Deutsche Telekom 29,774 2 4 N/A2 Movistar 27,249 2 6 N/A3 SAP 26,078 3 7 7%4 Louis Vuitton 24,312 5 7 23%5 BMW 22,425 5 8 3%6 Orange 17,597 1 4 N/A7 L'Oréal 15,719 4 6 11%8 Mercedes 15,344 5 8 12%9 Carrefour 13,754 3 7 -8%10 H&M 13,006 2 8 7%Asia:TOPBRANDSBrand Value$MBrandContributionBrandMomentumBrand ValueChange1 China Mobile 57,326 4 9 9%2 ICBC 44,440 2 5 1%3 China Construction Bank 25,524 2 4 22%4 Toyota 24,198 4 7 11%5 Baidu 22,555 5 10 141%6 China Life Insurance 19,542 2 9 N/A7 Bank of China 17,530 2 4 -20%8 Agricultural Bank of China 16,909 1 6 N/A9 NTT DoCoMo 15,449 2 8 19%10 Tencent/QQ 15,131 4 9 N/ASource: Millward Brown Optimor (including data from BrandZ and Bloomberg)Source: Millward Brown Optimor (including data from BrandZ and Bloomberg)United Kingdom:TOPBRANDSBrand Value$MBrandContributionBrandMomentumBrand ValueChange1 Vodafone 43,647 2 4 -2%2 HSBC 22,587 2 2 -4%3 Tesco 21,834 4 7 -15%4 Shell 15,168 1 5 0%5 BP 12,542 1 5 -27%6 Standard Chartered Bank 12,033 2 2 45%7 O2 11,694 2 5 N/A8 Barclays 8,760 1 2 4%9 Marks & Spencer 5,252 4 4 -8%10 Asda 3,975 2 4 -19%Latam:TOPBRANDSBrand Value$MBrandContributionBrandMomentumBrand ValueChange1 Petrobras 13,421 1 7 39%2 Telcel 11,558 3 6 7%3 Itaú 9,600 2 3 29%4 Bradesco 8,600 2 3 15%5 Corona 5,458 4 6 5%6 Natura 4,612 5 9 N/A7 Skol 4,579 5 6 68%8 Brahma 1,996 5 6 N/ASource: Millward Brown Optimor (including data from BrandZ and Bloomberg)Source: Millward Brown Optimor (including data from BrandZ and Bloomberg)

29 BrandZ Top 100 2011: INTRODUCTIONBrandZ Top 100 2011: INTRODUCTION 30Value-DHigh Desire• Amazon(87,133)• Uniqlo(81,109)Good value• Colgate(90,123)• McDonalds(91,116)• Coca Cola(99,125)• Pampers(104,130)• FedEx(105,128)• Petrobras(107,130)• IBM(108,117)Justified premium• Deutsche Telekom(118,132)ValueLineRetailAmazon received one of the highest Value-D scores of theleading global brands across all categories. With a Value-Dscore of (146), Amazon has the relationship between Desireand Price just about right. It’s also the most recommendedretail brand (119). But the heritage of Marks & Spencermakes it the most trusted (112). Aldi led in Price (83).Soft DrinksCoca-Cola is the only positively trusted brand (103)in a category that generally scores low on Trust andRecommendation. One of the highest Desire scores (125)also makes the Coca-Cola among the best value brandsworldwide with a Value-D score of (126).TechnologyGoogle may have lost its number one valuation spot, butit is still the most desirable technology brand (134). Alongwith Microsoft and Nokia, Google also is top in Trust (119)and Recommendation (115). Baidu led in Trust (127).The BrandZ Top 100 Leaders in TrustR and Value-DThe results in the table below confirm two fundamentalfindings of the BrandZ Top 100 Most Valuable GlobalBrands report:– Brand leaders successfully inspire trust andproject value; and– Brand leaders increasingly appear infast-growing markets.Pampers and Amazon are listed three times in thistable. While consumers expect products in the childcarecategory to be highly trustworthy, Pampers consistentlyexceeds those expectations. Effective use of socialmedia has helped the brand connect with new parentsand score high both in Trust (performance over time) andrecommendation (recent experience). In the process ofdriving a revolution in retailing and e-commerce, Amazonhas established itself as a highly desired brand with aprice image sufficient to rank second in Value-D.TrustRPoor valueMidpoint 100,100; (Price/Desire)RecommendationExpensive• Pampers(128,123)High PriceTelecommunication ProvidersIn fast-growing markets, consumers are much morelikely to trust (110) and recommend (109) their localtelecoms providers than are consumers in the matureeconomies where scores are lower for Trust (105) andRecommendation (99). However, in both fast-growingand mature economies the telecommunication providerssector ranks highest in Desire (114). Deutsche Telekomof Germany (132), Verizon in the US (122) and Mexico’sTelcel (118) rank particularly high in Desire.The Number 1 brand in Value-D, Sberbank, is the largestbank in Russia. Founded in 1841, the bank renewed thebrand to make its long heritage relevant to contemporarycustomers. Two other brands from fast-growing marketsalso appear in this table: Petrobras, Brazil’s oil and gasgiant and Baidu, the Chinese search engine.Interestingly, the three Price leaders all are in retail,either bricks and mortar or online. Colgate’s appearanceunderscores the brand’s global stature. The presenceof FedEx as a TrustR leader suggests that the brandcontinues to consistently deliver on its promise of reliability.• Apple(105,114)• BMW(107,111)• Amazon(116,119)• Mercedes(114,108)• Sony(113,106)• Google(119,115) • Petrobras(129,111)• Colgate(118,107)• Visa(124,112)TrustTrustRTrustR Trust RecommendationPampers 125 Petrobras 129 Estée Lauder 124Petrobras 120 Pampers 128 Pampers 123FedEx 118 Baidu 127 Amazon 119Midpoint 100,100;(Trust/Recommendation)Strong brands perform well in TrustR and Value-DThese charts include a selected group of BrandZ leaders.The charts show how highly valued brands are trusted,recommended and strike the right balance betweenDesire and Price.Value-DValue-D Desire PriceSberbank 155 Sberbank 140 Aldi 83Amazon 146 Google 134 Target 84Colgate 133 Amazon 133 eBay 86

BrandZ Top 100 2011: SECTORS/COMMENTARY 32ApparelValue rangthe registerConsumers bought apparel again,but not at every price point.Low-priced brands with perceived quality enticed someconsumers. Other consumers even edged back topremium brands, stirred from their recession hangoversby a desire for quality and value.Lacking the appeal of low price or high fashion, brandsin the middle suffered. And unemployment among youngpeople – and many of their parents – moderated thecritical purchasing power of teens and young adults.The move back to higher-end apparel helped lift theRalph Lauren brand value 18 percent. Ralph Laurencontinued to offer its classic look in many sub-brandsand a wide range of price points. The company renewedthe aspirational nature of the brand with renovation of itsflagship New York store located on Madison Avenue in aformer mansion.At the same time, fast fashion didn’tslow. With stores in about 80 countries,Zara, up 15 percent in brand value,continued to thrive, particularly in Asia.H&M, which rose 7 percent, createdexcitement around the brand bycollaborating with well-known designersand even co-created apparel with anH&M blogger.The first Chinese apparel brand reached the BrandZranking Top 10. Shanghai-based Metersbonwe designsand retails apparel for young adults and benefited from itsdominance in China where it operates over 4,000 stores.Uniqlo, a Japanese brand, also reached the Top 10 on thestrength of its well-priced private-label fashion and simplebut bold merchandising. Strong sales, particularly in theUnited States and China, and an 82 percent profit rise,pushed German fashion brand Hugo Boss into the ranking.TOPBRANDSBrand Value$MBrandContributionBrandMomentumBrand ValueChange1 Nike 13,917 4 5 10%2 H&M 13,006 2 8 7%3 Zara 10,335 3 6 15%4 Ralph Lauren 3,378 4 5 18%5 Esprit 3,375 3 4 -29%6 Adidas 3,088 3 6 -5%7 Uniqlo 2,916 2 7 N/A8 Next 2,567 2 5 0%9 Hugo Boss 2,445 5 7 N/A10 MetersBonwe 1,446 3 9 N/ASource: Millward Brown Optimor(including data from BrandZ, Kantar Worldpanel, and Bloomberg)APPARELUP 10%

33 BrandZ Top 100 2011: SECTORS/COMMENTARYBrandZ Top 100 2011: SECTORS/COMMENTARY 34Nike used digital to infuse the brand into everyday life. ItsTrue City app, for example, provided Nike product detailsalong with travel information that could be updatedinto a customized travel guide. The “Write the Future”campaign associated the Nike brand with the prowess ofWorld Cup athletes and the event’s driving excitement,competitiveness, spectacle and universal appeal.The exposure helped Nike, up 10 percent in brandvalue, widen awareness in China and other fast-growingmarkets. Although Adidas received great visibility as theofficial sponsor of the World Cup, the brand achieved lessof a lift.Some brands struggled to find the right focus in arecovering economy that left many consumers still wary.Next stayed flat in brand value and Esprit declined, withprofit down 21 percent during the last half of 2010.APPARELHIGHLIGHTSConsumers replenished wardrobes butspent carefully, mostly on brands with aclear proposition of fashion and value.Consumer concern about labor practicesand environmental impact focused brandattention on ethical production.The first Chinese apparel brand,Metersbonwe, entered the BrandZ ranking,as China’s consumers drove sales of manyinternational brands as well.APPARELIN 2011Ben Lukawski, Partner MindshareWorldwide, MindShareRise of co-creation“One thing we’ve seen differently this year is therise of the bloggers, above and beyond a standardfashion bible, especially with the youth audience.So much so that H&M have used a bloggerand a journalist to actually design one of theircollections.”SPOTLIGHTA Japanese brand, Uniqlo operates morethan 800 stores in Japan and about 140internationally. It opened its first store in 1984,in Hiroshima, and expanded overseas with aLondon store in 2001. Uniqlo understood thepublic mood last year. Consumers viewed thebrand’s apparel as fashionable but practical,in a range of colors, and of good quality atthe right price. The brand plans aggressiveexpansion in Brazil, India and China duringthe next few years.

BrandZ Top 100 2011: SECTORS/COMMENTARY 36BeerBrand mattered moreIn an industry traditionally driven byvolume, several factors combined toincrease the importance of brand.Consumers in mature markets considered beer as analternative to wine to accompany food. Growing mealtimeconsumption created interest in ale, which is less gassythan lager and therefore less filling. In fast-growingmarkets, Western brands continued to signal qualityand status.The recession-related rise in off-premise drinking,particularly in the UK, drove beer competition atretail, forcing brands to guard against becominginterchangeable traffic drivers always sold on promotion.Brewers developed portfolios of good, better and bestbrands and improved packaging to better compete onretail shelves.The shift to home consumption produced someinnovation. In a World Cup tie-in, Molson Coors in theUK introduced its Carling Home Draught. The productfeatured cold activation technology that enabled beer tobe served extremely chilled. This trend, which started inNorth America, has taken hold in Europe.Budweiser and Bud Light remained at the top of theBrandZ ranking, although they switched places, withBudweiser, the “King of Beers,” again crowned No. 1.Budweiser grew 12 percent in value. Because ofdistribution challenges and local taste preferences, onlyTOPBRANDSBrand Value$MBrandContributionBudweiser and a few other beer brands, such as StellaArtois, enjoyed global recognition. Bud Light took oversponsorship of the NFL from Coors Light starting in 2011.Reflecting the growing influence offast-growing markets and the globalmarketing power of AB InBev, twoleading Brazilian brands made theBrandZ Top 10. Skol had appearedbefore, but Brahma’s presence wasa debut. The value of both brandsincreased dramatically.In a trend prevalent in other product sectors, whenpeople bought less, they spent on what they liked.Corona and Miller Light remained popular. Heineken, up26 percent in brand value, benefited as premium importsin North America. Guinness appreciated 9 percent inbrand value, despite the difficult economy in Ireland, itshome market.Brewers expanded their offering of specialty brandsaccented with fruit and other flavors in response to anincrease in female beer drinkers. Some introduced brandswith lower alcohol content. They marketed these offeringswith care so as not to impact the successful light beerbrands favored by young men, the core customers. In arelated trend, the desire for craft beer continued, refiningconsumer tastes and raising awareness of brand.BrandMomentumBrand ValueChange1 Budweiser 8,805 4 4 12%2 Bud Light 7,148 4 5 -12%3 Heineken 6,577 5 7 26%4 Corona 5,458 4 6 5%5 Skol 4,579 5 6 68%6 Stella Artois 4,534 4 4 -6%7 Guinness 3,446 5 4 9%8 Miller Lite 2,539 3 7 8%9 Brahma 1,996 5 6 N/A10 Beck's 1,936 4 5 N/ASource: Millward Brown Optimor(including data from BrandZ and Bloomberg)BEERUP 7%

37 BrandZ Top 100 2011: SECTORS/COMMENTARYBrandZ Top 100 2011: SECTORS/COMMENTARY 381.Anticipate changeStudy the horizon for changesas they rise into view and beready for changes that seemto materialize from thin air.2.Understand changeEspecially in a chaotic world,insight is the basis for forminga coherent strategy. Whenthe dots fly apart, ask why.As they float randomly, try toreconnect them.3.Stand forsomething originalCompetitors are staring at thesame dots and forming someof the same patterns. Makeyour response original andbrand specific.BEERHIGHLIGHTSThe Millennial generation’s discoveryof spirits and cocktails challengedbeer marketers.As consumption moved off-premise, pricepressure made it difficult to build brandsat retail.In the United States, Stella Artois createda smartphone app for locating bars whereStella was sold.KeytakeoutsBEERIN 2011Nick Cooper, Managing DirectorMillward Brown OptimorChanging tastes in developing markets“We saw a real recognition of the role of thedeveloping markets in the beer industry, and whatis fascinating is that they are growing through acombination of imported Western premium brands,but also some very vibrant local brands as well,and the most fascinating thing of all is that yousee a development of a beer drinking habit indeveloping markets that wasn’t there before.”SPOTLIGHTWith a distinguished-looking middle-agedcharacter called “the world’s most interestingman,” the Mexican beer Dos Equis, aHeineken brand, parodied how traditionalnotions of masculinity have been used to sellbeer, demonstrating how clever media can lifta niche brand.

BrandZ Top 100 2011: SECTORS/COMMENTARY 40CarsThe road aheadclearedMany car brands returned torobust health only a few years afterdisconnecting from the life supportof government funding and autopurchasing schemes such as “cashfor clunkers” or “scrappage.”Consolidation left fewer brands in North America andEurope. But the survivors emerged more customerresponsiveand innovative, serious about meetingenvironmental and safety concerns of citizens andregulators and aware that consumer values, includingperceptions of prestige, have changed.The surviving Western brands probablyare here to stay, and competition isexpected from China and other fastgrowingmarkets. Most Western carproducers looked to China for longtermgrowth as the country’s sales areexpected to reach 30 million units by2015, or about twice the size of theUS car market. Volkswagen remainedChina’s most popular car brand, butothers have set up joint ventures inTOPBRANDSBrand Value$MBrandContributionthe country and at least one Europeanheritage brand, Volvo, is now Chineseowned.Toyota rebounded 11 percent in brand value,demonstrating the resilience of strong brands. Lexusremained America’s top-selling luxury car. To reassure thepublic following the recall of almost 8 million cars witha potential uncontrolled acceleration problem, Toyotaintroduced an extended warranty. A panel of NASAexperts exonerated Toyota in early 2011, finding thatdriver mistakes were responsible for most of the reportedincidents. Toyota increased sales by 8 percent to 8.4million cars worldwide in 2010.Ford reported its highest profit in 10 years, $6.6 billion,and GM showed signs of a strong comeback. Fordenjoyed residual goodwill in the United States forrejecting the government bailout and funding productimprovements with its own capital. Named “Marketerof the Year” by Advertising Age, Ford added a morecontemporary feel to the brand with an effective use ofsocial media, including a launch of its Explorer SUV onFacebook rather than at an auto show. Ford’s brand valuegrew 5 percent.Two electric cars received attention. The Nissan Leafwas named “European Car of the Year.” Motor Trendmagazine named Chevy Volt “Car of the Year” and GreenCar Journal named it “Green Car of the Year.” Even asBrandMomentumBrand ValueChange1 Toyota 24,198 4 7 11%2 BMW 22,425 5 8 3%3 Mercedes 15,344 5 8 12%4 Honda 14,182 3 7 -1%5 Porsche 12,413 5 6 3%6 Nissan 10,072 2 8 17%7 VW 7,408 3 8 6%8 Ford 7,394 2 3 5%9 Audi 3,808 4 8 5%10 Lexus 3,648 4 5 N/ASource: Millward Brown Optimor(including data from BrandZ, Bloomberg and KPMG Industry Reports)CARSUP 7%

41 BrandZ Top 100 2011: SECTORS/COMMENTARYBrandZ Top 100 2011: SECTORS/COMMENTARY 42smart consumption replaced conspicuous consumptionin the calculus of value, the prestige brands, such asBMW, Mercedes and Porsche, sold well because theirquality remained undisputed and enough shopperscould still afford them. Audi reached record sales of over100,000 units in the United States. Demand in China alsodrove sales of the luxury brands.Hyundai and Kia improved and promoted the styleand reliability of their products, which they confidentlybacked up with long-term warranties. As their reputationimproved, Korean brands became a post-recessionconsumer smart choice for buying quality and stylewithout paying a premium for badge status. To someobservers, the Korean car brands did a better job thanToyota and Honda of executing the well-respectedJapanese car playbook.4.Stand for somethingconsistentEvery new trend is tempting andmay even drive sales, at leastat first. But not every trend fitsthe brand and the customer’sexpectations of the brand.5.Stand for somethingmoreCSR is nice but not enough. Makesocial action relevant to the brandand sincere. Consumers dismisswindow dressing. Fix any supplychain problems that potentiallyharm people, and minimizeimpact on the environment.CARSHIGHLIGHTSThe car industry made cars people wanted –and the cars sold.Shoppers spent more time researching onlineand relying on third-party comments as carmarketing adjusted to the digital age.Fuel efficiency became a hygiene factor,and Toyota’s Prius continued its marketleadership.Keytakeouts6.Innovate: Easy to sayhard to doBut consumers expect leadingbrands to deliver the future.CARSIN 2011Chris Hunton, CEO Team Land Rover/WPP Account Leader, Y&RTextbook on brand resilience“Toyota has been a very interesting brand casestudy. When you see the depths to which Toyotahad sunk, the concern that was being exhibitedin the US about safety problems. And when youcompare that with the way the brand performedin terms of sales at the end of the year, Toyota is atextbook example of brand resilience. In the sensethat, if you invest in the brand over a number ofyears, actually it does ensure that you’re able towithstand most things that happen to you in themarketplace.”SPOTLIGHTFord gained positive attention both for what itdidn’t do (take government bailout money) andfor what it did (rationalize its brand offeringand improve vehicle quality). It also spent 2010preparing for the launch of its global car, FordFocus, in March 2011. Ford intends to simplifyproduction to build 10 different global modelson a single platform. The company alsoinvested heavily in China and renewed Lincolnas its luxury option.

BrandZ Top 100 2011: SECTORS/COMMENTARY 44FastFoodBreakfastmade thedifferenceSnacks also contributed to salesgrowth as fast-food brandsexpanded into the off-hours of anindustry built around lunch business.The focus on breakfast and between-meal snacks wasan effort, primarily in North America, to add new profitableproducts and lift the productivity of the restaurants bydriving customer traffic throughout the day. It especiallyhelped fuel McDonald’s, SUBWAY and Starbucks.The pizza segment benefited from its perceived value asa dinner solution. In mature markets, the brands aimedat building business around sporting events and otheroccasions. Pizza Hut and Dominos also enjoyed strongsales in China, which Pizza Hut entered more than 20years ago.The addition of new meal options, along with anemphasis on value, lifted the fast-food category overall.In the third quarter of 2010, the fast-food industryreported positive traffic for the first time since mid-2008,according to the industry’s Crest research results.Breakfast was one of many factors thatcontributed to the dramatic renewal ofStarbucks, which increased 40 percentin brand value. The coffeehouse alsoimplemented efficiency improvements,revised pricing and enhanced itsin-store experience.McDonald’s increased advertisingspending, introduced a $1 breakfastmenu and added oatmeal at $1.99.Available all day, oatmeal drove traffic,projected value and reinforced thechain’s efforts to offer healthier optionson a menu still weighted with burgersand fries. Brand value surged 23 percent.Burger King and SUBWAY also introduced breakfastoptions. Consistent with SUBWAY’s positioning as ahealthier fast-food option, the breakfast consisted of acustomized meal made from egg whites with a choice ofmeats, cheeses, vegetables and breads. The chain usedbreakfast to leverage its lunch business by suggestingthat early-morning customers pick up a sandwich for laterin the day. SUBWAY also benefited from its internationalreach with almost 34,000 outlets worldwide, surpassingMcDonald’s, in second place, by about 1,000.The SUBWAY brand rose 19 percent in value.Breakfast and snacks created new occasions for somefast-food brands to increase coffee sales. The addedcaffeine jolted profit potential but also widened thecompetitive set to include operations such as Dunkin’Donuts and Starbucks. Starbucks successfully addedan entry price point of $1.50 for coffee while maintainingprices for other drinks, and experienced growth in traffic,sales and profit. Wendy’s and Taco Bell were expected toenter the breakfast space.TOPBRANDSBrand Value$MBrandContributionBrandMomentumBrand ValueChange1 McDonald's 81,016 4 7 23%2 SUBWAY 14,306 4 5 19%3 Starbucks 11,901 5 5 40%4 KFC 8,216 3 5 15%5 Pizza Hut 5,305 3 3 58%6 Tim Hortons 2,678 4 7 -17%7 Wendy's 1,994 4 3 -20%8 Burger King 1,931 3 4 9%9 Taco Bell 1,873 3 2 2%10 Domino's Pizza 620 2 6 N/ASource: Millward Brown Optimor(including data from BrandZ and Bloomberg)FAST FOODUP 22%

45 BrandZ Top 100 2011: SECTORS/COMMENTARYBrandZ Top 100 2011: SECTORS/COMMENTARY 46Wendy’s and Burger King were among the fast-foodbrands that struggled with traffic levels because of thehigh unemployment among young men, the fast foodsector’s core customer. KFC also experienced trafficdeclines in developed markets, as consumers soughthealthier options than fried chicken, the chain’s signatureoffering. But KFC continued to enjoy success in China,where menus at its 3,200 outlets in 700 cities ofteninclude Chinese dishes, and where corporate parent Yum!also operates Pizza Hut and other brands.7.DifferentiateCreate a brand personality that’sclear and resonates with theconsumer emotionally.That connection generally isharder to copy than functionaladvantages and it builds morevaluable brands.FAST FOODHIGHLIGHTSMeal deals continued to drive the fast foodbusiness as consumers remained budgetconscious.The deals produced traffic gains but withoutgrowth in average ticket value for some chains.The resilience of the fast food sector attractednew competition, as some mid-tier casual diningbrands developed fast food sub-brands.8.9.Talk clearlySo that the brand is heard aboveall the noise, invest in the contentthat people talk about and share.Converse withcustomersThe customer is not always right.But in the world of social mediacustomers always are heard andgenerally offer useful opinions.FAST FOODIN 2011Larry Swyer, Managing Partner, MediaComGood deals and healthy meals“Along with the growth of breakfast, we saw othertrends that will continue over the next few years.With the difficult economy, we see the fast foodchains offering a lot of different deals to drivetraffic into their restaurants. We also see healthas a big issue. People are very interested to knowwhat is going in their food. They worry aboutsodium. They worry about calorie count. Innovationis very important. Consumers are looking for thingsthat are new and different.”SPOTLIGHTAt the start of the recession, Starbucksseemed to symbolize the high prices and selfindulgencethat consumers rejected in favorof frugality. Today, after the intervention offounder and CEO Howard Shultz, Starbuckshas trimmed the number of stores, added amore attractive opening price point in PikePlace Roast, and improved the coffee-centricenvironment of its outlets. It turns out thatpeople in mature markets still want to breakup the day with an expensive latte. And Shultzis betting that people in the rising middleclasses of the BRICs will feel the same way.Keytakeouts

The DigitalRevolution:Shoppers and brands share the powerin the new commercial democracyThe numbers tell the story.Apple is the world’s most valuable brand, followed byGoogle. Facebook, just seven years old, appears in theBrandZ Top 100 Most Valuable Global Brands for the firsttime, at No. 35.While the meteoric rise of these technology brands iscompelling, equally important is their impact, as brands inevery product sector respond to the fast-changing worldof digitized and disintermediated information.Last year, brands reached customers on brand andretailer Web sites, on Google and other search enginesand on mobile apps that rewarded shoppers forinteracting with brands. Some brands led the way.Others attempted to catch up.Few ignored the tide. As recent events in the Middle Eastdemonstrate, digitally connected people wield enormouspower to express their desires and influence each otherand events. The analogy to brands is imperfect, butrespecting it is imperative.As digital revolutionizes the relationship between brandsand consumers, interactions that could be adversarialincreasingly become collaborations aspiring to mutualbenefit and reciprocal trust.In these digitally enabled relationships, the role ofmarketer as brand builder, selling products to the public,is supplanted by the role of marketer as brand enabler,engaging the public’s help to improve products and raisecustomer satisfaction.In a digital creation story, the universe isn’t completed onthe sixth day. It’s a work in progress, a partnership aimedat perpetual renewal and relevance. One element remainsthe same, however – the desire for an apple.Collaboration and co-creationAt the start of last year, few people fretted that their livesfelt bereft of a digital gadget smaller than their laptopbut larger than their mobile phone. By the end of 2010,however, around 18 million of us owned iPads orother tablets.Apple understood that its customers wanted access todata and images anywhere, anytime, in easy-to-viewdefinition with an easy-to-use touch interface. In a spanof a few months, the brand met these needs with theiPad and iPhone 4.BrandZ Top 100 2011: SECTORS/COMMENTARY 48Apple trusted that its customers would discover usesfor these products that would help organize, simplifyor complicate, but mostly improve their lives. This cocreationapproach resulted in roughly 350,000 Appleapps, and it added value to the product and the brand.Another perhaps 250,000 Android apps were created.In a similar co-creation, brands improved productsand marketing based on comments from customers inconversations on social networking sites. Co-creationalso was the basis of collective shopping sites such asGroupon, which help merchants and brands increasesales and shoppers increase savings. Digital enablesstrangers to connect around something they share incommon – the desire for a bargain.Shift in how we view customersWhen brands enjoyed sovereign control over thedissemination of information about themselves, marketerscould choose a demographic – for example, 18-to-24-year-old women – and design an attention-grabbing,persuasive 30-second TV commercial.That’s changed. Some of our interests cut across thetraditional demographic categories, often making ourdesignation as a Millennial or Boomer less relevant thanwhether it’s Monday morning or Saturday night andwhether we’re focused on planning for the week or forour next vacation.Brand success requires recognizing this changeand allowing customers to self identify, form groups,and access utilities and dynamic, well-built librariesof information. Last year, Pampers, No. 34 in brandvalue, launched an iPad app called “Welcome Baby.” Itillustrated the development of a fetus in the womb andhelped expectant parents understand and track thestages of pregnancy.This kind of information is the currency of the digitaldemocracy. It changes brand-customer interaction from aseries of isolated transactions into an ongoing relationshipthat becomes deeper and more interconnected. Witheach encounter, the customer gains more knowledgeabout the brand and brand-related topics and the brandlearns more about the customer.Sustaining these relationships depends on transparencyand trust from both sides, brand and customer. Bothsides lose when the relationship deteriorates becausebrands collect information using stealth tactics orcustomers respond with a subterfuge of false information.

49 BrandZ Top 100 2011: SECTORS/COMMENTARYBrandZ Top 100 2011: SECTORS/COMMENTARY 5010.Quality products need quality contentBut being straightforward gets brands only part of theway. The quality of the brand-consumer interaction onlineis determined in part by the quality of the digital content.Brand manufacturers, retailers and their ad agenciestraditionally have not been in the content-creationbusiness.Consumer product companies and their advertisingagencies are sometimes more comfortable with thetraditional research-driven, time-consuming processaimed at perfecting a campaign. Digital content,in contrast, is more iterative. Speed subordinatesperfection. Ongoing presence and continuity supersedesthe finite nature of a campaign.Campaigns were designed for the path to purchaseshaped as a funnel, for consumers who wouldmove predictably and sequentially from awareness,engagement, discovery and investigation to selection.Campaigns alone are insufficient in the digital world ofshopper marketing, where the path to purchase hasexploded into random, non-linear points of influencewhen the shopper may be in front of a computer screenat home, making a shopping list or walking down thestreet about to enter a store.Digital’s impact on shopping soon will intensify furtheras 4G – with rapid transmission of rich data – becomesmore widely available and mobile devices continue tooffer greater sophistication for less money. The pathto purchase will never look the same. Its appearancemay be most radically shaped in fast-growing marketslike Brazil, China or India, where mobile was the firsttelephone experience for many consumers. Brandsface immense and unpredictable challenges in thishighly connected, increasingly transparent and digitallytransformed world.Listen closelyA customer who talks about abrand cares about it. And onegood opinion quickly can yieldinsights to inform importantbrand improvements andlift sales.12.Be openTransparency is a buzzword, butthat’s because it covers everythingfrom pricing to problems. It’sessential and expected.11.Be honestTo err is human.To cover up is unforgivable.Especially in a transparent,socially-networked world.DIGITALIN 2011Scott Sorokin, Global Digital Leader,MindshareBrands lose some control“Brands, historically, have managed the assets theyhave made in places that they own, but the futurewill belong to brands that manage assets that theydon’t make, in places that they don’t own, likeFacebook, Twitter, social media.”Keytakeouts

BrandZ Top 100 2011: SECTORS/COMMENTARY 52Banks were at an inflection point.Most banks stabilized their businesses. Balance sheetslooked better. The major remaining deficit was customertrust in the brand.It proved difficult to restore, particularly in the US, wherethe foreclosure rate remained high and small businessloans scarce, while the banks inadequately explainedhow they’d not just survived but also contributed toOLD NEWeconomic growth.In addition, the ubiquity of digital commerce and socialnetworking challenged financial institutions to changehow they market and serve customers. Post-recessiongovernment regulations limited certain fees. Banksresponded by continuing to serve high net worthcustomers while improving service to the “mass affluent”by adopting small-bank approaches to service.The banks in fast-growing markets,such as India’s ICICI and Itaú of Brazil,appreciated in value. ICBC, the world’slargest bank in market capitalization andprofit, operated over 16,200 branchesthroughout China. China’s second largestbank, China Construction Bank focusedon telecommunications and otherrapidly expanding industries. The brandappreciated 22 percent. As the nation’smost global bank, with internationaloperations in 29 countries, Bank of Chinamay have been more impacted by globalfinancial issues.FinancialinstitutionsEarning money,restoring trustTOPBRANDSBrand Value$MBrandContributionBrandMomentumBrand ValueChange1 ICBC 44,440 2 5 1%2 Wells Fargo 36,876 3 2 97%3 Visa 28,553 4 9 15%4 China Construction Bank 25,524 2 4 22%5 HSBC 22,587 2 2 -4%6 Bank of China 17,530 2 4 -20%7 RBC 17,182 3 4 3%8 American Express 17,115 3 2 23%9 TD* 16,931 4 1 19%10 Agricultural Bank of China 16,909 1 6 N/A11 Citi 15,674 2 1 17%12 ICICI Bank 14,900 3 3 3%13 MasterCard 13,543 4 7 16%14 Chase 12,083 3 3 -3%15 Standard Chartered Bank 12,033 2 2 45%16 Santander 11,363 2 5 -37%17 US Bank 10,525 3 2 26%18 Scotiabank 10,076 2 2 N/A19 Itaú 9,600 2 3 29%20 Bank of America 9,358 1 3 -43%*Correction to TD’s 2010 value. Brand value in 2010 is $14,202, not $10,274Source: Millward Brown Optimor (including data from BrandZ and Bloomberg)FINANCIALINSTITUTIONSUP 9%

53 BrandZ Top 100 2011: SECTORS/COMMENTARYBrandZ Top 100 2011: SECTORS/COMMENTARY 54Standard Chartered Bank, a UK-based institution, earnedthe majority of its profits from emerging markets and wasminimally exposed in North America and Europe. It grew45 percent in brand value. HSBC enjoyed the efficienciesand risk balance provided by its extensive global network.Benefits from the acquisition of Wachovia continued toaccrue for Wells Fargo. Brand value almost doubled.Chase had a head start coming out of the recessionbecause the bank went into it less exposed to debt.Meanwhile, Citi and other banks moved beyond viewingtheir customers according to traditional demographiccategories. Instead of focusing on income, the banksorganized offerings around attitudes and interests.Citi marketed to a group it calls “generations forward,”young aspiring people defined by post-recession valuesthat include taking responsibility for their personal welfareand the world’s.Bank of America continued to recover from the globalfinancial crisis and its acquisition of Merrill Lynch.Despite its strength in fast-growing Latin Americamarkets, the Spanish bank Santander was hurt by resultsfrom its European operations.American Express posted strong profits as consumersand businesses returned to spending and morecardholders paid balances in full each month. Brandvalue rose 23 percent. The post-recession consumer shiftaway from credit to cash and debit cards forced creditcard companies to rethink their business models. Visa’s“life flows better,” campaign suggested that the cardhelps the user move through life more easily. The brandincreased 15 percent.FINANCIALINSTITUTIONSIN 2011Mich Bergesen, Global Director,Financial Services, LandorOffering real value“There’s an opportunity for banks now to puttheir money where their mouths are, in termsof focusing on responsible lending and offeringreal value on their products and services.”FINANCIAL INSTITUTIONSHIGHLIGHTSBanks excelled at using digital fortransactional needs, such as online banking,but lagged in brand-building social mediaapplications.Investment banks especially struggled withpost-crisis issues of reputation and trust.While customers often engaged with smalllocal institutions for checking and othertransactional services, they generally kepttheir savings in the large institutions viewedas too big to fail.SPOTLIGHTRussia’s Sberbank appeared for the firsttime in the BrandZ Top 100 Most ValuableGlobal Brands on the strength of a successfulinitiative to transform it into a friendly bankof choice rather an institution recalled for itsdominating presence during the Soviet periodand a heritage dating to 1841. A programcalled “Leading the Change in Russia,”updated the brand and emphasized itsnational reach with almost 20,000 branches.In 2010, Sperbank accounted for almost 40percent of the banking sector’s profits inRussia, compared with 29 percent in 2007.Fees and commissions drove net incometo increase by a factor of 7.4 to roughly $16billion (181.6 billion rubles) in 2010, from $800million (24.4 billion rubles) in 2009.

BrandZ Top 100 2011: SECTORS/COMMENTARY 56InsuranceBack to basicsInsurers focused on fundamentalslast year.They divested tangential businesses and introducedinnovations that increasingly shifted control of purchasingto the consumer.The moves came as part of an effort to rebuild the trusteroded when consumers conflated insurance companieswith banks and other large institutions whose practicescontributed to the global financial meltdown.Some insurers divested or rebranded their assetmanagement businesses, dissociating themselves fromtroubled high-risk investments. Allianz divested Dresdnerand rebranded AGF as Allianz. Insurers concentrated onunderwriting policies.Leading the insurance sector in brand value, China Lifeand Ping An, along with China Pacific, benefited from thesize of the Chinese market and the rapid growth of theinsurance industry. Publicly traded China Life holds over90 million policies. Along with its corporate business,Ping An serves about 56 million retail customers.Property and casualty insurance companies continuedto grapple with increasing consumer control over theprocess of purchasing insurance. The ability of consumersto bypass brokers and research and purchase insuranceonline, began with auto and home and expanded into life.In the United States, MetLife, which grewin brand value by 31 percent, launcheda Web site called “Straight Story on LifeInsurance.” The site takes consumersthrough many contingencies and allowsthem to comparison shop. In the UKand Continental Europe, consumerscontinued to purchase through onlineaggregators. In contrast, US-based StateFarm emphasized its sales force and its“Good Neighbor” positioning.A clear demarcation seemed to emerge between fullservice,agent-led brands, such as State Farm andChubb, and brands, such as GEICO and Progressive,which invested in sophisticated virtual solutions to serveclients. GEICO, a subsidiary of Warren Buffett’s BerkshireHathaway, increased 53 percent in brand value. Its edgycampaign, featuring a gecko speaking with an East EndLondon accent, helped the company add auto insurancecustomers. It now seeks to expand its business intohomeowners insurance.Sale of UK holdings impacted the brand value of theFrench insurer AXA.TOPBRANDSBrand Value$MBrandContributionBrandMomentumBrand ValueChange1 China Life Insurance 19,542 2 9 N/A2 Ping An 10,540 3 7 N/A3 State Farm 8,393 2 8 2%4 Allianz 5,223 2 7 17%5 China Pacific Insurance 3,660 2 3 N/A6 AXA 3,505 1 4 -11%7 GEICO 2,785 2 4 53%8 MetLife 2,270 1 6 31%9 Zurich 2,023 1 1 4%10 Allstate 1,863 2 4 18%*Value growth in the Insurance category results from the inclusionof China Life Insurance, Ping An and China Pacific Insurance.Source: Millward Brown Optimor (including data from BrandZ and Bloomberg)INSURANCEUP 137% *

57 BrandZ Top 100 2011: SECTORS/COMMENTARYBrandZ Top 100 2011: SECTORS/COMMENTARY 5814.Deliver a greatexperienceIntroducing and polishing shinyobjects is fine, as long as theywork reliably and don’t causecustomer frustration.13.Build trustBecause mistrust may be thedefault consumer attitudecoming out of the recession,trust can be difficult to build butpowerful when it’s established.15.Deliver valuePost-recession consumersappreciate durability, quality andheritage, and they expect topurchase them at a fair price.INSURANCEHIGHLIGHTSAllianz launched a campaign stressing its globalreach and empathy with diverse people facingreal life problems.AIG sold its asset management business to aHong Kong firm, part of an overall industry trendto focus on basics and restore consumer trust.The uncertainty around healthcare reform inthe United States affected a segment of theinsurance industry and complicated planning.KeytakeoutsINSURANCEIN 2011Nick Clark, Creative Consultant,The PartnersInsurers develop personalities“Insurance is a low interest category and issuffering from increased commoditization.The challenge for brands is really to create somekind of compelling personality that can allowpeople to engage emotionally with the brand,above and beyond. The other thing is to actuallyact on what you’re saying. It’s not enough thesedays just to advertise, you have to actually do aswell as say.”SPOTLIGHTThe direct-to-consumer trend, which beganin auto and home, moved dramatically into lifeinsurance last year with MetLife’s “StraightStory on Life Insurance.” The award-winningonline utility maps the consumer’s journey andexplores the appropriate life insurance optionsand financing plans. It enables consumers tocomparison shop and puts them in controlof a significant purchase that traditionallydepended on an agent.

BrandZ Top 100 2011: SECTORS/COMMENTARY 60LuxuryIf you’ve got it, enjoy it!Luxury came back, without apology.Although consumers in North America and Europecontinued to reject conspicuous consumption, thosewho could afford the most exclusive shops no longereschewed the shopping bags that proclaimed theirgood fortune.The new ethos frowned on flaunting and encouragedawareness of how one’s purchases, whether diamondsfrom African mines or apparel stitched in Asian factories,impacted the environment and people all along thesupply chain.Connected to the concern with a product’s origins wasa deepened appreciation for the craftsmanship that wentinto its creation. In a world of mass-produced consumergoods, bespoke attention to individuality became theultimate luxury. And it provided a rational reason – ifneeded – for justifying an emotional, expensive purchase.Many brands raised prices. Those that genuinely couldclaim a history of design leadership and customizationcapitalized on their brand heritage in advertising and inonline and in-store presentations. Gucci turned areas ofsome of its stores into small workshops where customerscould view leatherworkers crafting handbags.To attract a new generation of shoppers,Louis Vuitton launched a program toencourage young artists with publicityand financial support, while continuingto evoke its heritage in travel to preserverelationships with the brand’s traditionalfollowing. Louis Vuitton remainedthe highest-valued luxury brand andincreased in value by 23 percent.Louis Vuitton broadcast its London fashion show onYouTube, an indication of the industry effort to be morecontemporary in both product and communication.Burberry sent personalized messages to the mobilephones of customers, inviting them to view the brand’sLondon fashion show streamed live to a Burberry store.Any item from the catwalk could be purchased fordelivery within weeks. Burberry continued to successfullyrejuvenate the 155-year-old British heritage brand andenjoyed year-on-year double-digit increases inall markets.Chanel entered e-commerce for the first time, althoughmore for the sale of accessories than couture, becauseextending luxury credentials to the mass market riskeddiluting the exclusivity of the brand. Brands thatprotected their exclusivity – such as Chanel, Hermès, orCartier – were better insulated from the recession thanmore accessible luxury brands. The Hermès brand valuegrew 41 percent.Hermès launched a Chinese brand that may herald theinception of luxury brands developed in fast-growingmarkets. Meanwhile, China and other BRIC countriesremained important markets because badge statusgratified a growing middle class and a band of affluentindividuals who had wealth for the first time and wereready to spend it.TOPBRANDSBrand Value$MBrandContributionBrandMomentumBrand ValueChange1 Louis Vuitton 24,312 5 7 23%2 Hermès 11,917 5 8 41%3 Gucci 7,449 5 4 -2%4 Chanel 6,823 5 9 23%5 Cartier 5,327 5 6 34%6 Rolex 5,269 5 5 11%7 Hennessy 4,997 5 8 -7%8 Moët & Chandon 4,570 5 8 7%9 Fendi 3,422 5 5 7%10 Burberry 3,379 4 7 N/ASource: Millward Brown Optimor(including data from BrandZ and Bloomberg)LUXURYUP 19%

61 BrandZ Top 100 2011: SECTORS/COMMENTARYBrandZ Top 100 2011: SECTORS/COMMENTARY 6216.Grow brand valueBrand value translates intosales, customer loyalty and – asshown by the performance ofthe BrandZ Top 100 – resilienceeven during the toughesteconomic times.17.Protect brand valueEvery communication or interactionwith a customer needs to fulfill thebrand promise.LUXURYHIGHLIGHTSUltra-luxury returned, prices increasedand aspirational brands did well.Because their customers were online,luxury brands discovered ways to bethere as well.Fashion magazines competed withbloggers for influence.18.Be consistentbut flexibleDeliver the same coherentglobal message acrosscultures, but express it forlocal comprehension.LUXURYIN 2011Penny Logier, Managing Director, MediaComExtending the reach of luxury“We found that the consumer is more and moreable to buy into the assets of the couture brandsby simply purchasing things like a lipstick, or ahandbag or even sunglasses.”SPOTLIGHTLVMH purchased a stake in Hermès, one ofthe few ultra-luxury brands with long andrespected heritage still held privately.The action raised speculation that LVMHeventually would bid for the entire company.Such a deal would further consolidate theluxury category and add efficiencies andprestige to the LVMH portfolio. The potentialimpact on the Hermès brand isn’t as clear.The family owners of Hermès made clear theirdesire to retain control.Keytakeouts

BrandZ Top 100 2011: SECTORS/COMMENTARY 64Oil & GasDisaster revealed resilienceThe big story, of course, was theBP disaster – the tragic DeepwaterHorizon accident and its impact onthe environment, the local economyand the lives of individuals.The disaster highlighted the importance and thevulnerability of brands in a category where brandcontribution to brand equity traditionally has been low.Oil and gas companies explore the world’s remaining oilreserves, often located in extreme environments milesbelow the ocean floor. Proven competence and brandstature is critical for convincing governments to grantexploration rights and for influencing regulators. The BPdisaster undermined this agenda.It also reminded oil companies to cultivate broadersupport by addressing the contradictory consumermessages: respect the environment, energize our liveswithout interruption, and keep fuel prices low. Each brandattempted to explain this energy paradox more openly,while making an argument for its particular approach toreconciling the seemingly irreconcilable.Exxon’s communications continued to focus onoperational excellence. Shell launched a global corporatecampaign with the strapline “Let’s Go,” emphasizingworking collaboratively with partners and end users tofind answers to the energy challenge.Chevron’s “We Agree” campaign suggested thatcompany and consumer are on the same side of themulti-faceted energy issue. Ironically, BP may have beenthe most brand-conscious and differentiated brandbecause of its Helios logo and related emphasis oncorporate responsibility.Brand is especially critical for publicallyowned oil companies becausethey compete against state-ownedorganizations that operate in a differentregulatory environment and control mostof the world’s oil business. Projectsavailable to publically owned companiesgenerally require deep water drilling ormeeting other challenges that entail themost expense and risk.TOPBRANDSBrand Value$MBrandContributionBrandMomentumBrand ValueChange1 ExxonMobil 16,973 1 8 10%2 Shell 15,168 1 5 0%3 Petrobras 13,421 1 7 39%4 BP 12,542 1 5 -27%5 PetroChina 11,291 1 10 -19%6 Chevron 8,120 1 8 12%7 Gazprom 6,849 1 7 24%8 ConocoPhilips 6,486 1 6 21%9 Lukoil 5,792 1 10 N/A10 Total 5,262 1 7 -25%Source: Millward Brown Optimor(including data from BrandZ and Bloomberg)OIL & GASUP 1%

65 BrandZ Top 100 2011: SECTORS/COMMENTARYBrandZ Top 100 2011: SECTORS/COMMENTARY 66Relative to the state-owned companies, the public oiland gas providers will feel much more pressure to meetthe world’s need for energy in ways that are safe andenvironmentally responsible. In a possible deal withRussian oil giant Rosneft, BP would explore for reservesin Russia’s Arctic.Some well-capitalized companies in fast-growingeconomies sought undervalued assets in developedmarkets. PetroChina, for example, acquired a stake in aScottish refinery. Brazil’s Petrobras raised $67 billion froma public offering to help fund exploration in some of theworld’s largest and most difficult deep-water reserves.Based on expectations, the brand value of Petrobras rose39 percent.Gazprom, Russia’s largest company, was well positionedduring this period of diminished oil reserves andheightened environmental concern. As its brand nameimplies, Gazprom is the world’s largest natural gascompany. Its brand value increased 24 percent.SPOTLIGHTBy 2012, Shell for the first time willproduce more gas than oil. Last yearit established a biofuel partnership withCosan, a Brazilian ethanol producer.Increasingly, companies are strugglingto replace the oil reserves they depletewith newly discovered reserves.Leading brands continued shifting theirattention to gas because oil reservesare limited and exploration is complexand expensive.OIL & GASHIGHLIGHTSBrand may become more importanteven for state-owned companies as theymove out of their home markets.Incentives for producing renewableenergy became less likely asgovernments struggled to cut spendingand balance post-recession budgets.Demand from fast-growing economiesdrove oil prices to almost $100 perbarrel, near pre-recession pricing,although the industry had not yetreturned to pre-recession activity.Unrest in the oil-producing Middle Eastpushed prices higher early in 2011.OIL & GASIN 2011Geoff Beattie, Global Head,Corporate Affairs, Cohn WolfeBrands need to explore and explain“Oil and gas companies have a vital role to play insecuring the world’s energy future and providingenough energy for the nine billion people thatit’s estimated will be on the planet by 2050.The first challenge is to find a lot more oil andgas. The second challenge is to deliver it in anenvironmentally responsible and safe way.The communication challenge for the oil andgas companies is to demonstrate to the rest ofus exactly how they are going to do that. Whatreserves are going to be important to securingthe world’s energy future? And how we are goingto get those out, when some of the challengesof exploration and production in the oil and gasbusiness are formidable? So I think the oil andgas companies have to explain to the world howthis can be done in a safe and environmentallyresponsible way.”

A Generational ShiftBrandZ Top 100 2011: SECTORS/COMMENTARY 68By G. Walker Smith,Global Executive Chairman,The Futures CompanyMuch of what we believe aboutMillennials is wrong. But the onething that matters most we get right.Millennials have been trumpeted by pundits and heraldedby headlines as an optimistic, open, committed andsocially conscious generation, itching to step up andrescue the world from the mistakes and excesses ofgenerations past. Unfortunately, such pronouncementsare little more than wish-fulfillment by older observers.A careful assessment of longitudinal cohort data byThe Futures Company in its 2011 Unmasking Millennialsreport shows that Millennials are just like every othergeneration in their optimism and prosocial attitudes.As they age, these attitudes decline. By the time Millennialsreach their late twenties and early thirties, their attitudesare better described as those of adults than as those ofa distinct cohort. For many things, age is more importantand a better predictor than generation. But not foreverything, especially not technology.The generational divide that distinguishes Millennialsis one of technology. The technology revolution ofpersonalized computing that first blossomed in the 1970shas been an everyday reality for Millennials. The same istrue for the Internet revolution that broke out in the mid-1990s. Millennials have come of age steeped in a deeplywired, technologically sophisticated world that moves ata continually accelerating pace. Only older generationsremember something different and thus see today assomething special. For Millennials, this is just the waythings are.It is the experience of technology not simply the densityof technologies that makes Millennials different. By andlarge, older generations have approached technologyfrom an information point-of-view. For them, technologyis about processing data, for which productivity andefficiency are the key metrics. Not so Millennials.Certainly, information matters, but technology is moreabout connection. Technology is social. Information, infact, is managed and modulated through connections.For marketers, the technology divide across generationsis profound. Older consumers want information andentertainment from media. Millennials see media asplatforms for connection. Older generations have grownup directly interacting with marketing communications,processing ads and making decisions individually.Millennials encounter marketing as part of their on-going,never-ending, constantly-evolving conversations aboutbrands, issues, celebrities, causes, sports, politics,music and more. Young consumers no longer encountermarketing in the ways embedded in traditional models ofmarketing, media, persuasion and attitude change.The old objective of marketers was to be heard abovethe noise. In effect, it was about out-shouting thecompetition; hence, the relevant metric was share of voice.Today, and tomorrow, the objective must be one ofgetting talked about, for which the relevant metric willbe share of conversation.Millennials are an intensely social cohort for whominterconnection and engagement are fundamental.Though older generations will continue to hew to a moreindividualistic style, technology will force them to bemore social. In this way, at least, the world as a wholeis looking younger such that all generations will soon beable to claim that we are all Millennials.

BrandZ Top 100 2011: SECTORS/COMMENTARY 70PersonalCareLook good,feel good,spend lessThese imperatives characterizedmid-market consumers, wellinformed by online social networksand more savvy from recenteconomic necessity.Luxury consumers also returned, driving the performanceof brands like Lancôme and Estée Lauder, which gainedacross all of its global markets, with a boost from China,where year-end sales rose almost 30 percent.Estée Lauder enjoyed a 31 percent rise in brand value.The brand value of Lancôme increased by 17 percent.The Estée Lauder brand Clinique, which remainedconsistent with its simple and elegant presentation ofproduct, entered the BrandZ ranking for the first time.Brands serving mid-market consumers continued “masspremiumization” of products, emphasizing affordabilitywhile promoting either glamour or wellness. L’Oréal,which increased 11 percent in brand value, introducedTOPBRANDSBrand Value$MBrandContributionthe brand to a younger audience. Olay added moreproducts to the premium end of its line. Brand valuegrew 9 percent.In a complementary trend, brands also introducedproducts customized to individual skin or hair type, as thenotion of beauty continued to evolve from a single ideal topossibilities as diverse as humanity. Brazil’s Natura, newto the BrandZ ranking, expressed this trend effectivelywith its sustainable ingredients and the healthy-lookingpeople modeling its cosmetics and skin care products.Garnier described its vision as helping make everyone’snatural beauty “shine through.”Many brands focused on enablingthe beauty of Baby Boomers to shinethrough, since Boomers can afford theirage defiance. To enhance male beauty,personal care brands expanded beyondthe “metrosexual” to the mass audienceof guys who also care about groomingbut don’t make it a lifestyle.BrandMomentumBrand ValueChange1 Gillette 19,782 4 4 -4%2 L'Oréal 15,719 4 6 11%3 Colgate 14,258 4 6 0%4 Avon 5,849 4 6 -20%5 Nivea 5,075 3 5 -10%6 Garnier 4,669 4 5 -6%7 Lancôme 4,617 4 5 17%8 Natura 4,614 5 9 N/A9 Dove 3,827 3 7 7%10 Olay 2,825 4 3 9%11 Crest 2,814 4 5 -8%12 Oral-B 2,797 3 4 -20%13 Estée Lauder 2,592 4 5 31%14 Shiseido 2,422 4 7 -7%15 Clinique 2,391 4 5 N/ASource: Millward Brown Optimor(including data from BrandZ, Kantar Worldpanel and Bloomberg)PERSONALCAREUP 3%

71 BrandZ Top 100 2011: SECTORS/COMMENTARYBrandZ Top 100 2011: SECTORS/COMMENTARY 72Gillette, which remained synonymous with malegrooming, may have been affected by the impact of theeconomy on young men. In an interesting demonstrationof brand reinvention, some brands relied on irony andself-deprecating humor to introduce Millennials toproducts, such as the skin-care brand Old Spice, whichBoomers and their parents had forgotten.To counter the incursion of private label accelerated bythe recession, brands with basic functionality, like Colgateor Crest toothpaste or Dove, emphasized the product’spositive impact on emotional well-being and introducedmore benefits. Dove, for example, promoted a body washthat improved skin as it cleansed. Unimpressed by oldschoolmarketing claims alone, consumers wanted toknow not just what a product promised – whiter, brighter,better – but how the promises worked and whether theingredients were natural or had a proven scientific basis.Facebook and other social networking sites led to moreinformed consumer choice and a growing do-it-yourselftrend in which consumers purchased salon-quality brandsfor use at home. In this value equation, the savings inprofessional care made up for a higher product price.Avon, a venerable global leader, encountered difficultiesexpanding in BRIC markets.PERSONAL CAREHIGHLIGHTSCertain brands, like Dove, effectivelyextended the brand halo over manysub-categories.The focus on individual wellness,an influence from fast-growingmarkets of Asia, continued to inspireproduct innovation.Digital utilities enabled brands tocustomize products and services fora mass audience.PERSONAL CAREIN 2011Catherine Coulson, UnileverGlobal Account Director, TNSConsumers seek clear choices“My advice to the personal care sector is to reallyavoid the temptation to just let your innovationsproliferate. Consumers already face a hugechallenge at the shelf. There are a lot of problemsin terms of the number of choices that theyhave, and there’s a lot of confusion at shelf.So I think, be disciplined in what you do, only putproducts out there that will make a differenceand help consumers make those choices in thatcomplicated environment.”SPOTLIGHTSpenders were winners during the recession.Colgate introduced more new products duringthe recession than before the downturn.Along with noting the health benefits oftoothpaste, Colgate and Crest emphasizedwhitening. People visited the dentist lessfrequently during the recession, at least inthe United States.

BrandZ Top 100 2011: SECTORS/COMMENTARY 74Amazon, which operates no stores,became the world’s most valuableretail brand, ahead of Walmart, theworld’s largest retailer.The ascent of Amazon, which rose 37 percent in brandvalue, signaled the disruptive digital impact on the path topurchase, as retailers struggled to establish multi-channelpresence, anywhere, anytime.The growing use of mobile devices compounded thechallenge, with utilities able to identify nearby locations,provide in-stock information, tempt shoppers with specialdeals and provide access to competitive pricing at the“moment of truth.”Although shoppers returned to bricks and mortar as theeconomy improved, they were fortified with knowledgefrom searching on Google, posting on Facebook andorganizing around group purchasing sites like Groupon.The confluence of an enlightenedshopper with a recovering economyimpacted retail brands in differentways. Hard discounters like Aldi andLidl did well, but not as well as mightbe expected because of competition.Carrefour lowered prices and openednew, more convenient smaller storesin Europe.RetailShopperstook controlTOPBRANDSBrand Value$MBrandContributionBrandMomentumBrand ValueChange1 Amazon 37,628 3 10 37%2 Walmart 37,277 2 5 -5%3 Tesco 21,834 4 7 -15%4 Carrefour 13,754 3 7 -8%5 Target 12,471 3 3 3%6 eBay 10,731 2 8 15%7 Home Depot 9,877 2 3 10%8 ALDI 9,251 2 4 6%9 Auchan 7,796 3 7 -1%10 IKEA 7,293 2 6 28%11 Lowe's 6,522 2 3 -7%12 Marks & Spencer 5,252 3 4 -8%13 Best Buy 5,104 3 3 -12%14 Costco 4,544 1 4 17%15 Lidl 4,240 1 4 3%16 Kohl's 4,003 3 4 -8%17 Asda 3,975 2 4 -19%18 Sam's Club 2,935 2 2 -10%19 Sainsbury's 2,685 3 5 -2%20 Safeway 2,012 2 3 -37%Source: Millward Brown Optimor(including data from BrandZ, Kantar Retail and Bloomberg)RETAILUP 2%

75 BrandZ Top 100 2011: SECTORS/COMMENTARYBrandZ Top 100 2011: SECTORS/COMMENTARY 76In the UK, Tesco parried the low-price advance of Aldi.While the brand remained among the global leaders invalue, currency fluctuations somewhat impacted theactual valuation. Hypermarkets struggled as consumerssought price and convenience over enormous productrange.Walmart executed a course correction to reassert priceleadership after alienating some of its US customerbase by reaching for affluent consumers with editedmerchandise displays and less cluttered, more efficientlyrun stores. Meanwhile, dollar stores won shoppers bytinkering with range and promoting low prices. Targetcountered the high-price perception of its trendyapproach to discount retailing, expanding food selectionto drive shopping trips and increase basket size.The combined strength of discount operators andAmazon impacted specialty retailers like Best Buy, whichstruggled even though it remained America’s only nationalhome electronics retailer following the close of Circuit Citymore than a year ago. Warehouse club Costco addedsales. Ikea and Home Depot benefited from an improvinghousing market. Ikea’s brand value increased 28 percent,Home Depot’s, 10 percent. Lowe’s seemed less preparedfor the return to spending. Shifting away from its onlineauction roots, eBay simplified its site and enjoyed a brandvalue rise of 15 percent.Department stores experienced mixed results. Marks& Spencer offered compelling deals in food, but toughcompetition made fashion a more difficult sell. Sales andmargins increased for mid-priced Kohl’s, which preparedfor a stock buyback. Results for Safeway, a supermarketbrand, improved with the economy, but rising food costshindered profits.The largest global brands continued their expansioninto China and other fast-growing markets. Carrefourconsolidated many of its banners under the Carrefourbrand. Walmart’s international division posted strongresults and the company spent much of the year innegotiations to purchase the South African retailerMassmart, a development that eventually couldchange retailing and help elevate living standardsthroughout Africa.RETAILHIGHLIGHTSThe price-driven end of the market thrived,including retailers like Poundland in the UKand Dollar Stores in the United States.Luxury retailers prospered because theircustomers had money and felt free to spend it.Channels continued to blur, especially as moreretailers added food to drive traffic.SPOTLIGHTAmazon surpassed Walmart as the mostvaluable retail brand in part because of therevolutionary shift to online shopping thatAmazon itself instigated. Founded in 1995,Amazon has become a leading shoppingdestination with unparalleled selection, peerreviews and a discounted delivery schemethat builds loyalty. Generally recognized as thegold standard e-commerce company, Amazoncontinued to add merchandise categoriesincluding food.RETAILIN 2011Kim Hsieh, Director, Retail Strategy, G2 USARedefining value“Retailers want to offer value beyond price. They arelooking to work together with brands that can bringanalytics and help uncover more shopper insightsand find opportunities to grow business together.”

BrandZ Top 100 2011: SECTORS/COMMENTARY 78SoftDrinksDiet Coke surpassed Pepsi as theNo. 2 soft drink brand in market share.The shift reflected an ongoing move to diet in the faceof health and obesity concerns. Improving producthealthiness remained a Pepsi core strategy.It happened in a year when the ongoing slide in sodasales slowed, perhaps because consumers needed apleasurable break from the barrage of headlines aboutunemployment and the need for sacrifice.Coca-Cola was more aggressive inappealing to those consumers withtraditional advertising, but both Coke andPepsi relied on innovative social mediathat asserted the strength of their brandsand the emotional bond with customers.Coke’s brand value rose by 10 percent.Pepsi remained flat, but Diet Pepsiimproved 8 percent.In an updated appeal to the “Pepsi Generation,” thebrand launched “Pepsi Refresh,” a social media siteintended to create world-improving partnerships betweenthe brand and its customers. Individuals nominated theirfavorite causes or charities to compete for $20 million inPepsi grant money. More than 60 million votes were cast.Along with sponsoring new digital programs and events,Coca-Cola continued the “My Coke Rewards” programon Facebook and other social media sites. More than17 million people have participated in the four-year-old“Rewards” program, entering numeric codes found onCoke products to qualify for prizes such as movie ticketsand retail gift cards.In a separate online effort to drive interest in its citrusflavoredSprite brand, Coke developed an online sitewhere visitors who enter the code from a Sprite bottlecap could send a message to basketball star LebronJames and also nominate a basketball court near themfor a grant, as “Sprite and LeBron are also refreshing thecountry’s basketball courts.”Pepsi created social network programs for its youthfocusedMountain Dew brand, which increased 7 percentin brand value. Energy drinks generally remained strongas a sub-category. Red Bull, which improved 4 percentCola sparkledTOPBRANDSBrand Value$MBrandContributionBrandMomentumBrand ValueChange1 Coca-Cola 59,866 5 9 10%2 Diet Coke/Coca-ColaLite/Coke Zero13,887 4 7 3%3 Pepsi 10,431 4 6 0%4 Red Bull 9,263 4 5 4%5 Fanta 4,368 2 7 -6%6 Sprite 3,560 2 7 -8%7 Gatorade 2,910 4 5 -1%8 Diet Pepsi 2,500 3 6 8%9 Mountain Dew 2,478 4 6 7%10 Dr Pepper 2,212 4 3 -13%Source: Millward Brown Optimor(including data from BrandZ, Kantar Worldpanel and Bloomberg)SOFT DRINKSUP 5%

79 BrandZ Top 100 2011: SECTORS/COMMENTARYBrandZ Top 100 2011: SECTORS/COMMENTARY 80in brand value, sponsored Formula 1 racing. Interest inother functional beverages, like vitamin water, also grew,especially among younger consumers.Pepsi unified its logo across all international marketsto add efficiencies and leverage the brand’s power.Gatorade also rebranded, changing the name on itspackaging to G, in an effort to signal brand progressionand to reach a new generation.Food service and vending continued to be important andprofitable channels. Coke accelerated the introduction ofits “Freestyle” vending machines, which use innovativetechnology to offer 104 different varieties of Coca-Cola drinks. The somewhat less-profitable grocerychannel drove tremendous volume aided in part by newpackaging that enabled bold and efficient stacking atfood outlets and other mass merchants.Both Coke and Pespi experienced strong sales in BRICmarkets. Pepsi prepared to acquire a majority stake inRussia’s largest food and beverage business,Wimm-Bill-Dann.SOFT DRINKSHIGHLIGHTSBottle size increased in certain markets,such as the UK.Coke and Pepsi advanced corporatesocial responsibility initiatives as the softdrinkscategory continued to face healthand environmental issues.Soft drink brands experimented withcross merchandising in supermarkets,presenting cola near the frozen pizza, forexample, to emphasize a meal occasion.SOFT DRINKSIN 2011David Seabrook, Client Director,Client Leadership, MindshareFunctional drinks growing“The most interesting thing going on in the categoryat the moment is the growth of drinks that are therefor specific needs or functions, so for example thelaunch of Gatorade products, the launch of thevitamin waters, the launch of more and moreenergy drinks.”SPOTLIGHTTo maintain its connection to an oldergeneration and to reinforce its brand essenceas an energy and fitness drink, Gatoradelaunched its Replay initiative, inviting theveterans of two high school football teamsback for a rematch, 16 years later, thatreunited old rivals for a period of intensetraining followed by the big game.

BrandZ Top 100 2011: SECTORS/COMMENTARY 82Apple grew 84 percent in brand valueto become the world’s most valuablebrand.And it surpassed Microsoft in market capitalization.With a 246 percent increase in brand value, Facebookentered the BrandZ Top 100 for the first time at No. 35.These developments reflected both the strength of theApple and Facebook brands and the dramatic changestaking place in the always-dynamic technology sector.Most significantly, the future of storing and accessingdata, software and applications suddenly belonged tometaphorical “clouds,” mega-computer warehouses inremote locations. Consumers shared public clouds whilebusiness established its own clouds, and government, atleast in the UK, had its “G-cloud.”One of the largest clouds, Facebook, overtook Google asthe most visited site in the US last year. Worldwide, morethan 500 million members visited Facebook. Over 600million people subscribed to China’s Tencent/QQ. Google,meanwhile, continued development of its own cloud,Google Chrome OS.TechnologyCloud computingtook offTOPBRANDSBrand Value$MBrandContributionBrandMomentumBrand ValueChange1 Apple 153,285 4 9 84%2 Google 111,498 4 4 -2%3 IBM 100,849 3 5 17%4 Microsoft 78,243 4 7 2%5 HP 35,404 3 4 -11%6 Oracle 26,948 1 7 9%7 SAP 26,078 3 7 7%8 BlackBerry 24,623 4 9 -20%9 Baidu 22,555 5 10 141%10 Facebook 19,102 3 5 246%11 Cisco 16,314 2 5 -2%12 Accenture 15,427 4 3 5%13 Tencent/QQ 15,131 4 9 N/A14 Intel 13,904 2 5 -2%15 Samsung 12,160 3 9 7%16 Siemens 11,998 1 4 29%17 Nokia 10,735 3 6 -28%18 Sony* 9,511 3 9 17%19 Infosys 8,172 2 6 27%20 Canon 7,588 1 6 27%*Value for Sony in the Technology category does not includeGames Consoles and 2010 value has been corrected to $8,147Source: Millward Brown Optimor (including data from BrandZ and Bloomberg)TECHNOLOGYUP 18%

83 BrandZ Top 100 2011: SECTORS/COMMENTARYBrandZ Top 100 2011: SECTORS/COMMENTARY 84Apple continued quietly developing acloud and loudly discovered an emptyspace in the computing category that itfilled with a new device – the iPad. In thelast quarter of 2010, Apple sold moreiPads than Mac computers. The iPad,which quickly met competition from othertablet makers like Samsung, helpedApple pass Dell and HP in total portablecomputer sales. An Apple cloud wouldfurther strengthen the brand as a trinity ofplatform, content and device.At the same time, the smartphone category expandedwith the introduction of iPhone 4 and many versions ofGoogle’s Android platform. Android became the bestsellingsmartphone platform over Apple and Symbian byNokia. BlackBerry worked to sustain appeal among twohigh-messaging groups: business people and teens.The B2B brands also continued moving to the cloud.While the opportunities are great, so are the challenges.Privacy and confidentiality remain vulnerable, asWikiLeaks demonstrated. And the ability to managedatabases that respond to unpredictable change fallsmore in the province of Twitter and Facebook thanbrands like Oracle, SAP and Siemens, which arerenowned for structured databases. As applications andfiles move to clouds it potentially becomes less criticalto have Intel inside.In a strengthening economy, leading brands such asIBM, with its focused “Smarter Planet” strategy, benefitedfrom increased business and government spending ontechnology and consultation. The value of the IBM brandincreased 17 percent. Brands from fast-growing marketsalso became more of a global presence, includingTencent/QQ, China’s social network site, which appearedin the BrandZ Top 100 ranking for the first time, and theChinese search engine Baidu. Its 141 percent increasein brand value made it the fastest riser after Facebook.The brand value of India’s IT leader, Infosys, appreciatedsignificantly.TECHNOLOGYHIGHLIGHTSTelevision and the Internet becameincreasingly linked, and brands, notablySamsung, introduced 3D TV.Facebook and Twitter, cloud venues for thelatest content, became the water coolers forconversation about last night’s TV shows.Technology brands deepened their bondwith customers as activities like sharingphotos and music insinuated the brandsdeeply into personal lives.TECHNOLOGYIN 2011Stephen Yap, Group Director, TNSFacebook transcends social networking“Perhaps the most important trend we’ve seenover the last few months is the rise of Facebook.Transcending its roots as just a social network,a place where people send messages to andfrom their contact list, to become very much anaggregator of all kinds of communication andentertainment activities that people do on theircomputers and mobile devices. Whether it’splaying games, sharing photos, videos or chatting,Facebook is increasingly becoming the dominantplatform for all kinds of technology activities forconsumers across the world.”SPOTLIGHTThe emergence of cloud computing portendsheated competition over who will own theconsumer – device or platform. When thebattle was about winning the PC market,consumers were less concerned about theparticular brand of PC or laptop as long it ranMicrosoft Office. With the cloud, consumersmay care less about the brand of their mobiledevice as long as it can access Facebook.Apple could be an exception because of thestrong emotional and functional appeal ofthe brand.

BrandZ Top 100 2011: SECTORS/COMMENTARY 86Wireless data transmissionsurpassed voice last year for thefirst time.Telecoms struggled to keep up with this major shift,which was driven by the proliferation of smartphonesand complicated by smarter consumers choosingtheir provider based on the desired operating systemand device.The companies became one-stop resources for mostforms of electronic communication, including landlines,cable, wireless mobile and Internet, which they marketedin numerous combinations. This BrandZ report on brandvalue reflects this convergence and groups all the playersunder the heading of telecom providers.Because the brand valuations now reflect the full extentof each enterprise, 11 of the brands appear in the BrandZTop 100 Most Valuable Global Brands: AT&T (No. 7),China Mobile (No. 9), Vodafone (No. 12), Verizon (No.13) Deutsche Telekom (No. 19) Spain’s Movistar (No.21), Orange (No. 36), NTT DoCoMo of Japan (No. 48),Telecom Italia (75), Telcel (76) and MTS (80).In their attempts to differentiate, providersconcentrated primarily on two areas,technology and content. The technologycompetition focused on expandingnetworks and introducing 4G, potentiallya step-change advance in which wirelessdata transmission is faster than cable.Along with functional advantages, the telecoms worked toconnect emotionally with customers. They attempted toshift from being simply the “pipes” that delivered content tobecoming content providers with entertainment packagesaimed at maximizing their share of household media.The increasing availability of mobile devices for saleat mass merchants raised pricing issues. Becauseassortments included a variety of devices from diversetelecom providers with complicated marketing programs,price comparison became frustrating for consumershoping for price transparency.European brand O2 attempted to make pricing moretransparent, which increased by 10 percent in brandvalue, attempted to make pricing more transparent. Pricetransparency perhaps was more difficult for Vodafonebecause of its greater reach as the world’s secondlargesttelecoms provider with 341 million subscribers.TelecomProvidersData went wirelessTOPBRANDSBrand Value$MBrandContributionBrandMomentumBrand ValueChange1 at&t 69,916 3 4 N/A2 China Mobile 57,326 4 9 9%3 Vodafone 43,647 2 4 -2%4 Verizon 42,828 3 4 N/A5 Deutsche Telekom 29,774 2 4 N/A6 Movistar 27,249 2 6 N/A7 Orange 17,597 1 4 N/A8 NTT DoCoMo 15,449 2 8 19%9 O2 11,694 2 5 N/A10 Telecom Italia 11,609 4 5 N/A*Because of the convergence of products and services offered,we redefined and renamed this category, formerly called Mobile Operators.Telecom Providers includes brands that market fixed line, cable, wireless,mobile, Internet and related products and services.

87 BrandZ Top 100 2011: SECTORS/COMMENTARYBrandZ Top 100 2011: SECTORS/COMMENTARY 88The brand revised its Tetris logo to make it more iconicand transnational. NTT DoCoMo rated highest in a J.D.Power customer service survey of Japan’s telecoms. Thebrand appreciated 19 percent.Verizon, the largest US carrier, with an international linkto Vodafone, emphasized the reliability of its network andprepared for the launch of iPhone early in 2011, afterthe expiration of AT&T’s exclusive relationship with Apple.Few defectors to Verizon were expected immediatelybecause the AT&T and Verizon iPhone versions areincompatible.To control costs, consumers increasingly opted forprepayment plans, which have been popular for a whilein Latin America, where carriers such as Movistar andMexico’s Telcel are strong. China Mobile, the world’slargest telecom provider, with 590 million subscribers,faced heated competition at home from China Unicomand China Telecom in the rollout of 3G.MTS, the largest Eastern European telecom company,which has one of the highest brand momentum scoresand shows a 12% appreciation in brand value, isleveraging its equity through expansion into mobilepayments and its own branded devices, as well asinternational expansion into India.TELECOM PROVIDERSHIGHLIGHTSConsumers reacted to the cost of plans.In parts of Latin America, some wore beltswith multiple phones from various carriersbecause buying handsets was cheaper thanpaying excessive toll charges.The introduction of 4G offered telecomsan opportunity to differentiate by deliveringquality video and other dense data.4G also should unify the relatively youngcategory, making it more global, less regional.TELECOMPROVIDERSIN 2011Anthony Cox, Senior Planner, Chi & PartnerBuilding on fundamentals“Over the last 12 months, networks haveemphasized coverage and the very fundamentalthings that consumers expect from their networks.And being dependable on that score is reallyimportant. However, I think the most successfulbrands have been those that have been doingsomething interesting, building on that withrewards, loyalty and extra things that make themmore into entertainment brands.”SPOTLIGHTConsumers get emotional about their phones.Most of the positive feeling is directed at thebrand of the mobile device, however, notat the telecom. Users continue to reservenegative emotions for the carrier – frustrationover dropped calls, confusion over billing andpricing and complaints about coverage. To getonto the positive side of the emotional ledger,carriers looked for ways to differentiate.In the UK, for example, O 2 offered subscriberspriority access to event tickets at O 2 Arenaand other venues it sponsors.

Brand BrazilOptimism fuels economic growthBrandZ Top 100 2011: OPPORTUNITIES/RESOURCES 90Three Brazilian brands rank in the2011 BrandZ Top 100 Most ValuableGlobal Brands.They include the national oil company, Petrobras, rankedNo. 61, and two banks, Itaú (No. 90) and Bradesco(No. 98). Petrobras is the highest-valued brand in LatinAmerica at $13.4 billion. Itaú, valued at $9.6 billion, andBradesco, $8.6 billion, are the third- and fourth-highest.Three other Brazilian brands, while not large enough tobe included in the BrandZ Global Top 100, still rank in theBrandZ list of the most valuable brands in Latin America.They are the personal care brand Natura, with a brandvalue of $4.6 billion, and two beer brands owned by ABInBev: Skol and Brahma.The increasing representation of Brazilian brands inthe BrandZ rankings of brand value reflects the robustexpansion of Brazil’s economy, with GDP growth ofabout 7 percent, and optimism that the new governmentelected last year will continue the country’s commitmentto controlling inflation and addressing the social problemsand poverty that still afflict much of the population.By some estimates, the expanding middle class nowcomprises more than half of Brazil’s population of201 million. Brazil’s financial institutions understandthat the country’s economic advance depends onnarrowing economic inequities. Recognizing the potentialpurchasing power of even Brazil’s poorest citizens, manyof the banks opened branches in the favelas.In a related and urgent challenge, Brazil intends toaccelerate the infrastructure improvement needed to hostthe World Cup in 2014 and the summer games of the2016 Olympics. These projects potentially will create jobsand wealth. Meanwhile, brands contend with merger andacquisition activity across many sectors.Savvy consumers influence brandsBrazil is among the world’s largest social media markets.The number of mobile phones in use exceeds the size ofthe population. Rising incomes and the proliferation oflow-priced unlimited data plans increased the penetrationof smartphones. Using tactics learned during badeconomic times, many Brazilians still use multiple SIMcards, interchanging them as necessary to obtain thebest rates.Similarly, collective buying, an informal coping strategyperfected to retain buying power in an inflation-plaguedeconomy, surged during the past 12 months in categoriessuch as hotels, restaurants and beauty services, asbrands like Groupon and a Brazilian entry, Peixe Urbano,formalized the practice.Rising incomes also influenced food shopping, with morepeople making larger, less-frequent purchases. In certaincategories, such as soft drinks, brands recognized anopportunity to attract new customers away from budgetofferings. Meanwhile, spending by the poorest citizensremained limited by low wages paid daily and lack oftransportation.Both local and international brandsThe economic forces that helped the middle class expandalso made the rich richer. Brazilians continued to preferinternational luxury brands – Brazil is the second largestmarket for Louis Vuitton – but local luxury brands alsoprospered. Möet Hennessy Louis Vuitton (LVMH), theFrench luxury conglomerate, agreed to purchase a majorstake in Sacks, Brazil’s leading online retailerof cosmetics.The preference for international brands over Brazilianbrands remains a residual insecurity from Brazil’sstruggles as an emerging economy. In certain categories,however, imported brands hold minimal appeal comparedwith the well-established Brazilian leaders. It’s notsurprising that in the country of “samba, soccer andbeer,” Brazilian’s prefer Skol, Brahma and other localbeer brands.Both Skol and Brahma scored high on brand contribution,the BrandZ measurement of bonding between brand andcustomers. Natura, the Brazilian cosmetics brand knownfor the purity of its ingredients, also rated high on brandcontribution, suggesting that Brazilian consumers haveaffection for some of the nation’s brand leaders.Rising brand valuesWhile Petrobras did not score high on brand contribution,it enjoyed a positive reputation based in part on abrand personality associated with the friendliness of theBrazilian people. The positive reputation of Petrobras inBrazil is also driven by the jobs it creates and its financialcontribution to society.The rising brand value of Petrobras, up 39 percent lastyear, is based also on future expectations of successfuldeepwater drilling and the record proceeds gained fromthe sale of Petrobras shares to help fund the exploration.As part of its plan to become a major oil exporter,Petrobras expects to introduce new technology to replaceoil platforms with extensive underwater infrastructure.The presence of two Brazilian banks in the BrandZTop 100 Most Valuable Global Brands – Itaú for thefirst time, with a 29 percent rise in brand value, andBradesco, up 15 percent – also signals opportunity in aneconomy where financial habits are rapidly changing. Asindividuals continue to rise into the middle class, somewho traditionally paid for major purchases with monthlyinstallments may now apply for bank credit to afford animproved quality of life.

Brand ChinaFrom cutting costs to adding valueBrandZ Top 100 2011: OPPORTUNITIES/RESOURCES 92Twelve Chinese brands appear in the2011 BrandZ Top 100 Most ValuableGlobal Brands, an increase fromseven brands last year and only twobrands in 2006.Together, the Chinese companies in the BrandZ 100 total$259 billion in brand value; this represents 11 percent ofthe total brand value of the Top 100. They include ChinaMobile, the country’s largest brand, which ranks No. 9 inthe BrandZ Top 100, and Baidu, a search engine that grew141 percent in brand value last year and ranks No. 29.The five Chinese brands that joined the BrandZ Top 100this year are: China Life Insurance (No. 33), AgriculturalBank of China (No. 43), Tencent/QQ, a social network(No. 52), Ping An, an insurance company (No. 83) andChina Telecom (No. 91). Along with China Mobile andBaidu, Chinese brands that continued in the BrandZTop 100 include PetroChina (No. 78) and four banks.The expanding presence of Chinese brands in the BrandZTop 100 reflects the transformation of China from a centerfor low-cost production to a nation capable of productinnovation and marketing originality. The success of theBeijing Olympics accelerated this change. It reinforcedChina’s self-confidence and captured the world’sattention and admiration with memorable infrastructureand spectacle.Size matters. In a country with a population of 1.3 billionpeople, many of the most valuable brands are stateownedenterprises concentrated in the financial service,telecom, technology, and oil and gas sectors. But it’snot about size alone. New Chinese brands are emergingin diverse sectors, from cars to luxury, while existingChinese brands in food, beer, traditional medicines andother sectors gain recognition abroad.Years of manufacturing consumer goods for Westernmarkets endowed Chinese businesses with theknowledge, capital and insights necessary for creatingtheir own products and brands. That endowmentbecomes more critical now. As Western factories moveto lower-wage markets, the redefinition of “Brand China”becomes not just an evolutionary step, but also aneconomic imperative.Fortunately, the redefinition of “Brand China” is welladvanced, shifting from cutting costs to adding value.Developing potential abroadThe potential of Chinese brands perhaps is bestsymbolized by the rapid growth of two technologyleaders, Baidu and Tencent/QQ. Baidu, China’s largestsearch engine, with a market share over 80 percent, wasformed in 2000 and listed on the NASDAQ 100 indexin 2007. The social network Tencent/QQ has over 600million users in China, more than Facebookhas worldwide.Entrepreneurs are introducing this kind of brand powerto audiences outside China, as captured in the mostmemorable image of the Beijing Olympics. Li Ning,an Olympic gymnast who won six medals in the 1984Summer Games, drew attention to himself and hiseponymous apparel brand as, suspended by cables, hecircled the Beijing stadium and lit the Olympic torch.With similar audacity, Li Ning opened flagship storesfor his sportswear brand in a few key North Americancities, including New York and Portland, Oregon, which islocated just a few miles from Beaverton, the headquarterscity of major competitor Nike. It’s likely that other Chineseapparel brands with youth appeal, such as Metersbonwe,with 4,000 outlets in China, will gain an overseasfollowing.International ambition also drives Lenovo, which acquiredIBM’s personal computing division in 2005. The stateownedChinese financial brands are increasing theirglobal presence, too. ICBC (Industrial and CommercialBank of China), China’s largest bank, operates 23subsidiaries in 20 countries along with more than 16,200branches in China.Haier, one of the first Chinese companies to build itsbrand overseas, is the world’s No. 1 supplier of majorhousehold appliances. Haier focused its expansion onNorth America and Europe. BYD, which began as asupplier of batteries to mobile device manufacturers,developed the first mass-produced plug-in hybrid car justover two years ago, a development that drew the interestof Warren Buffet along with his investment of over$200 million. The company intends to export to theUnited States.But Chinese manufacturers often find the mostappreciative audiences for their value-for-moneyproposition in developing markets. Many brands havesucceeded in India. Carmaker JAC Motors enteredBrazil, and Haier is setting up production in Thailand.Brand leaders in traditional Chinese medicine, such asBawang and Tong Ren Tang, are experiencing successin Southeast Asia, particularly in country markets withlarge populations of Chinese nationals. Tong Ren Tang,founded in 1669, operates 800 drug stores in China.

93 BrandZ Top 100 2011: OPPORTUNITIES/RESOURCESBrandZ Top 100 2011: OPPORTUNITIES/RESOURCES 94Marketing at homeDespite these successes, Chinese consumers at homecontinue to prefer Western brands. They presumethat Western products have been developed to pleasemore discerning consumers and they remain wary ofChinese products because of lingering quality and safetyconcerns.Western brands are well established in the large cities,while local brands have a strong presence in smallerones. Regional differences also remain important. KFC,with 3,500 outlets in China, modifies its menu for localtastes. By including rice and other Chinese foods, thechain appeals both to parents preferring a traditional dishand children seeking the chain’s signature fried chicken.As in many other country markets, the “green-ness”of products is growing as a purchase consideration inChina, but it’s not the driving determinant. While thegovernment advances green policies, Chinese consumersare practical and make purchase decisions that deliverimmediate personal advantage.They generally view the financial services sector asgreen because of growth in online and mobile banking.ICBC emphasized this point in a campaign promotingits electronic banking services. The country’s sixthlargestcommercial bank, China Merchants Bank, ranan environmentally focused corporate-responsibilitycampaign during the Shanghai World Expo, aninternational fair held in 2010.Consumer durable manufacturers and electronic retailersoffered allowances to motivate consumers to trade intheir old household appliances and purchase new, moreefficient models. Consumers also expected environmentalawareness from mobile phone suppliers.Shift in media approachChinese brands traditionally advertise on television as theability to afford the high cost of airtime confers credibility.Brands are beginning to allocate more of their mediabudgets to digital, where the message is less controlledand exposed to comment on social networks. The shiftis driven in part by the extent to which the Chinese haveadopted new technology and media, as indicated bythe rise of Baidu, Tencent/QQ and the country’s threetelecommunications companies led by China Mobile,the world’s largest mobile operator, with almost 600million subscribers.Several Western brands recently used digital to buildawareness in China. Nike signaled people in closeproximity to its Beijing store that they could qualify for afree pair of shoes if they were among the first to respondto the mobile phone message by visiting the store.The race to the store reinforced Nike’s association withathletic competition and its “Just Do It” attitude towardlife. To connect its brand with the idea of exploration,North Face created a gaming utility that awarded pointswhen users traveled a virtual map of China and visitedvarious locations.In reaction to the rapid pace of change and the growthof consumerism, some Chinese sense that they’ve lostpart of the past and the values it represented. To connectwith these consumers emotionally, Bright, China’s thirdlargestdairy brand, built a campaign around the theme of“Old Shanghai.” It’s one facet of the dynamic mixture oftradition and modernity that constitute “Brand China.”19.MeasureIn the digital world measuringis easy. But look beyond thenumber of clicks. Old-schoolROI still is important.20.Act nowConsumer confidence remainsshaky. Government treasuriesare thin. But life goes on.Consumers will respond eagerly tobrands that offer something realand relevant to their lives.21.Break the rulesToday’s practices sometimescalcify into tomorrow’s rules.Then blind obedience, alwayslimiting, becomesself-defeating.Keytakeouts

Brand IndiaColorful, confident and creativeBrandZ Top 100 2011: OPPORTUNITIES/RESOURCES 96Economic growth is driving brandpresence in India.India’s largest private bank, ICICI, appeared for a secondconsecutive year in the BrandZ Top 100 ranking, at No.53, with a brand value of $14.9 billion.With a rise of 27 percent in brand value to $8.2 billion,Infosys was one of the most valuable technology brandsin the world and is expected to soon rank among the Top100 Most Valuable Global Brands across all sectors.The IT services and consulting brand operates in33 countries.The appearance of Indian banking and technology brandsin the BrandZ ranking reflects both the prominence ofthese sectors in fast-growing markets and an expansionin brand literacy particular to India.Brands that many Indians until recently saw only in thesuitcases of relatives returning from North America orEurope are now encountered every day in local shopwindows. Indians appreciate the opportunity to ownbrands as living circumstances in India steadily improve.Perhaps drawn by the novelty of the brand explosion,Indian consumers even enjoy advertising.In a multiplier effect, the more that Indian consumersare exposed to brands, the more they desire them. Theexpanding middle class of educated young people,often employed in technology, especially exercises itspurchasing power. And economic progress, particularlyleadership in information technology, has altered India’simage of itself as well as the world’s postcard view ofIndia as simply colorful and exotic.That view also has changed because of the internationalreach of ICICI, Infosys and large Indian conglomerates,such as Tata, which operates in more than 80 countriesand gains annual revenue of almost $68 billion frombusinesses including steel, chemicals, hospitality andcommunications. The recent acquisition of JaguarLand Rover made Tata a player in the luxury end of theinternational car business.Energy, confidence, creativity and purpose characterize“Brand India” today and point to its potential.The growth of “Brand India” could be restrained byan Indian inclination to look to the past or to the Westfor inspiration. But more likely, Indian brands willsurge ahead, powered by a combination of positivefundamentals – economic vitality, a diverse andenterprising population and a cohesive, stable, muddled,democracy.Choice brings challengesThe increase in brand choice, with many internationaloptions, challenges Indian brands. While desired, Indianbrands come weighted with both the advantages anddisadvantages of being familiar. Sometimes, they’re seenas too available and insufficiently aspirational.The Indian conglomerate brand Godrej exemplifies thistrend. Well respected across many product categories,the brand faces international competition from LG,Samsung and Whirlpool, just in its appliance business.In cars, Maruti (the Indian brand of Suzuki) facesincreased competition from international contendersincluding Honda, Toyota and BMW.Some of the Unilever and P&G brands, long establishedin India and seen as local, now are emphasizing theirglobal credentials. Advertising for Dove, for example,features not only Indians, but also women from manybackgrounds. Consumers view brands like L’Oréalor Garnier as international and delivering the qualitythat implies.Large Indian conglomerates, such as Bharti, Godrej,Reliance and Tata, occupy an influential and secureplace in the minds of consumers. Trusted, evenrevered, these conglomerate brands regularly introduceconsumers to new product categories. Although aconglomerate may itself be new to a category, its brandguarantees competence and compensates for any lackof experience.Major brands evoke trustIndians rely on these conglomerate brands for relativelyrisk-free introductions to new products and experiences.For example, a new retail format unusual for Indiaopened in Mumbai in 2005. The up-market gourmet storeoffered delicacies from around the world. Consumersimmediately accepted the new format because it camewith a reassuring brand. The store, called Godrej Nature’sBasket now operates in 13 locations in Delhi, Puneand Mumbai.The conglomerate brand becomes especially importantin high-risk, high-investment ventures. Tata moved intoreal estate – from high-rises in Bangalore to housingdevelopments in Delhi. In a similar way, India’s ITC Ltd.began diversifying its portfolio during the past decadebecause of the health issues and regulatory challengesfaced in its core business, cigarettes. ITC now marketsfood, hotels, personal care and cosmetics and otherfashion-focused products and services.In a country known for traditional mom-and-pop stores,the conglomerates are introducing modern retailing.Reliance, India’s largest private-sector enterprise,operates in many retail channels, including food, apparel,footwear, home improvement and consumer electronics.

97 BrandZ Top 100 2011: OPPORTUNITIES/RESOURCESTata also serves many retail channels and has a jointventure arrangement with Tesco, the global hypermarketchain based in the UK. Bharti last year opened retailand cash-and-carry outlets as part of its joint venturewith Walmart.Culture and valuesThese Indian megabrands, which successfully transcendmany unrelated product categories, may owe theirelasticity in part to India’s cultural particularities. Inmaking some of life’s major decisions – whom to marryor whom to vote for – Indians are especially aware of the“power behind the throne.”In marriages, that notion means knowing the backgroundof the in-law family. In voting, it means understanding theinfluencers in the political parties. This understanding inpart drives the growth of brands like ICICI and Infosys.ICICI (formerly Industrial Credit and InvestmentCorporation of India) projects trustworthiness and comfortin its banking business. In insurance, ICICI emphasizesthe joy of life in a category often associated with thepossibility of death. ICICI operates in 18 countries. It hasincreased visibility in India with over 2,000 branches and5,200 ATMs. The brand projects warmth. Its use of thecolor red in branding evokes the red band that an Indianbride wears in her hair to signify lifelong bonding.The Infosys culture is egalitarian in its approach to theworkforce. Infosys is known for its generous employeestock-sharing program, and it is closely associatedwith government programs to improve the nationalwelfare. Witpro, a competitor, has a similar story, witha major presence in education and social welfare. BothInfosys and Witpro are values-driven, knowledge-basedcompanies. Both companies are entrepreneurially led.Indian brands derive strength from these deep-rootedvalues as they build commercial success while at thesame time attempting to transform a nation of 1.1billion people.POWEREDBYWPP offers an ever-expanding libraryof in-depth but practical studies tohelp grow brand strength and valuein today’s rapidly changing globalmarketplace.Available exclusively to WPP clients through their WPPagencies, the studies examine the performance of individualbrands and categories by country and over time.Beyond Trust: Engaging Consumersin the Post-Recession WorldTrust is no longer enough. Strong brands inspire bothTrust (belief in the brand’s promise developed overtime) with Recommendation (current confirmationof that promise). This combination of Trust plusRecommendation results in a WPP metric called TrustR.There’s a high correlation between high TrustR andbonding, which drives sales.ValueD: Balancing Desire and Pricefor Brand SuccessDesire is primary. High Desire enables Price flexibility.A WPP metric, Value-D, measures the gap betweenthe consumer’s Desire for a brand and the consumer’sperception of the brand’s Price. By quantifying this gap,Value-D helps brands optimize their sales, profit andmarket positioning potential. Value-D can indicate if abrand is taking too much margin—or not enough.The studies are powered by BrandZ, the world’s largest,most reliable and comprehensive brand analytics andequity database. Conducted by Millward Brown forexclusive use by WPP group companies, the study hasbeen running for thirteen years and includes more than1 million in-depth consumer interviews about over 7,000brands in 30 countries. The commentary on this pagefocuses on two key studies that rely on the BrandZdatabase to examine salient trends impacting brandvalue today.Trust-RValue-DTRUSTRECOMMENDATIONTo learn more about BrandZ, TrustR, Value-D, or the otherspecial studies powerd by BrandZ data being launched in2011 on reputation and social media, please contact anyWPP group company or Peter Walshe, Global BrandZDirector, +44 (0) 1926 826 213,peter.walshe@millwardbrown.com.

BrandZ Top 100 2011: OPPORTUNITIES/RESOURCES 100Keytakeouts1. Anticipate changeStudy the horizon for changes as they rise into viewand be ready for changes that seem to materialize fromthin air.2. Understand changeEspecially in a chaotic world, insight is the basis forforming a coherent strategy. When the dots fly apart, askwhy. As they float randomly, try to reconnect them.3. Stand for something originalCompetitors are staring at the same dots and formingsome of the same patterns. Make your response originaland brand specific.4. Stand for something consistentEvery new trend is tempting and may even drive sales,at least at first. But not every trend fits the brand and thecustomer’s expectations of the brand.5. Stand for something moreCSR is nice but not enough. Make social action relevantto the brand and sincere. Consumers dismiss windowdressing. Fix any supply chain problems that potentiallyharm people, and minimize impact on the environment.6. Innovate: Easy to say, hard to doBut consumers expect leading brands to deliver thefuture.7. DifferentiateCreate a brand personality that’s clear and resonates withthe consumer emotionally. That connection generally isharder to copy than functional advantages and it buildsmore valuable brands.8. Converse with customersThe customer is not always right. But in the world ofsocial media customers always are heard and generallyoffer useful opinions.9. Talk clearlySo that the brand is heard above all the noise, invest inthe content that people talk about and share.10. Listen closelyA customer who talks about a brand cares about it. Andone good opinion quickly can yield insights to informimportant brand improvements and lift sales.11. Be honestTo err is human. To cover up is unforgivable. Especially ina transparent, socially-networked world.12. Be openTransparency is a buzzword, but that’s because it coverseverything from pricing to problems. It’s essential andexpected.13. Build trustBecause mistrust may be the default consumer attitudecoming out of the recession, trust can be difficult to buildbut powerful when it’s established.14. Deliver a great experienceIntroducing and polishing shiny objects is fine, as long asthey work reliably and don’t cause customer frustration.15. Deliver valuePost-recession consumers appreciate durability, qualityand heritage, and they expect to purchase them at afair price.16. Grow brand valueBrand value translates into sales, customer loyalty and– as shown by the performance of the BrandZ Top 100 –resilience even during the toughest economic times.17. Protect brand valueEvery communication or interaction with a customerneeds to fulfill the brand promise.18. Be consistent but flexibleDeliver the same coherent global message acrosscultures, but express it for local comprehension.19. MeasureIn the digital world measuring is easy. But look beyondthe number of clicks. Old-school ROI still is important.20. Act nowConsumer confidence remains shaky. Governmenttreasuries are thin. But life goes on. Consumers willrespond eagerly to brands that offer something real andrelevant to their lives.21. Break the rulesToday’s practices sometimes calcify into tomorrow’srules. Then blind obedience, always limiting, becomesself-defeating.

MethodologyHow brand value is calculatedMillward Brown Optimor applies an economic useapproach to brand valuation, using a methodologysimilar to that employed by analysts and accountants.The brand value published is based on the intrinsicvalue of the brand – derived from its ability to generatedemand. The dollar value of each brand in the rankingis the sum of all future earnings that brand is forecast togenerate, discounted to a present-day value.The Data SourcesBrand EquityInsights into customer behavior and brand perceptionscome from WPP’s BrandZ, an annual quantitativebrand equity study in which consumers and businesscustomers familiar with a category evaluate brands. Sincethe inception of BrandZ 13 years ago, over two millionconsumers and business-to-business customers acrossmore than 30 countries have shared their opinions aboutthousands of brands. It is the most comprehensive,global, and consistent study of brand equity.Financial PerformanceFinancial data is sourced from Bloomberg, analystand industry reports, as well as company filings withregulatory bodies. Additionally, we use Kantar Worldpanelfor sales data for certain categories. A team of MillwardBrown Optimor analysts then prepares financial modelsfor each brand that link brand perceptions to companyearnings and valuation, and ultimately shareholder andbrand value.2. Brand ContributionHow much of these branded earnings are generated dueto the brand’s close bond with its customers?Only a portion of these earnings can be considered asdriven by brand equity. This is the “Brand Contribution,”the measure that describes the degree to which brandplays a role in generating earnings. This is establishedthrough analysis of country-, market-, and brand-specificcustomer research from the BrandZ database.This guarantees that the Brand Contribution is rootedin real-life customer perceptions and behavior, notspurious “expert opinion.” The Brand Contribution allowsus to capture differences in the importance of brandsby category and by country, the role of brand versusother factors such as price and location, and changingcustomer priorities. In some categories, such as luxurygoods, cars, or beer, brand is very important. Over thepast five years, the importance of brand has risen. BrandContribution is calculated as a percentage, but displayedas an index from 1 to 5 (5 is the highest).3. Brand MultipleBrandZ Top 100 2011: OPPORTUNITIES/RESOURCES 102What is the growth potential of the brand-driven earnings?In the final step, the growth potential of these brandedearnings is taken into account. Both financial projectionsand consumer data is used . This provides an earningsmultiple aligned with the methods used by the analystcommunity. It also takes into account brand-specificgrowth opportunities and barriers.The Valuation ProcessThe brand value is calculated in three steps:1. Branded EarningsWhat proportion of a company’s earnings is generated“under the banner of the brand”?First, we identify the portion of total company earningsgenerated by each business that carries the brand. Forexample, in the case of Coca-Cola, some earnings arenot branded Coca-Cola, but come from Fanta, Sprite, orMinute Maid. From these branded earnings, we subtractcapital charges. This ensures that we only capture valueabove and beyond what investors would require anyinvestment in the brand to earn – the value the brandadds to the business. This provides a bottom-up viewof the earnings of the branded business.

103 BrandZ Top 100 2011: OPPORTUNITIES/RESOURCESBrandZ Top 100 2011: OPPORTUNITIES/RESOURCES 104With ThanksThe BrandZ Top100 Most ValuableGlobal Brandsis created usingdata from BrandZ,Bloomberg andKantar Worldpanel.About Kantar WorldpanelKantar Worldpanel is the world leader in consumerknowledge and insights based on continuous consumerpanels. Its High Definition Inspiration approachcombines market monitoring, advanced analytics andtailored market research solutions to deliver both the bigpicture and the fine detail that inspire successful actionsby its clients. Kantar Worldpanel’s expertise about whatpeople buy or use – and why – has become the marketcurrency for brand owners, retailers, market analysts andgovernment organizations globally.www.kantarworldpanel.comFor further information about the BrandZ Top 100 MostValuable Global Brands, please contact:WPP is theworld’s leadingcommunicationsservices group.WPP companies, which include some of the mosteminent agencies in the business, provides national,multinational and global clients with:advertisingmedia investment managementconsumer insightspublic relations & public affairsbranding & identityhealthcare communicationsdirectdigitalpromotion & relationship marketing.WPP companies provide communications servicestoclients worldwide including 354 of the Fortune Global500; 60 of the NASDAQ 100 and 33 of the Fortune e50.Collectively, WPP employs over 146,000 people(includingassociates) in 2,400 offices in 107 countries.www.wpp.comFor further information about WPP, please contact:David Rothdroth@wpp.comThe Bloomberg Professional service is the source ofreal-time and historical financial news and information forcentral banks, investment institutions, commercial banks,government offices and agencies, law firms, corporationsand news organizations in over150 countries.Peter Walshepeter.walshe@millwardbrown.comCristiana Pearsoncristiana.pearson@millwardbrown.comwww.bloomberg.comThe BrandZ study, commissioned by WPP and conductedannually by Millward Brown, measures the brand equityof thousands of global “consumer facing” and businessto-businessbrands, and has interviewed over 2 millionconsumers globally. Consumer perception of a brand is akey input in determining brand value because brands area combination of business performance, product delivery,clarity of positioning, and leadership.www.brandz.com

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