BEST GLOBAL BRANDS 200100 / 7
3
CLARITY
The brand’s values, positioning and proposition must be clearly articulated and shared across the organization, along with a clear view of its target audiences, customer insights and drivers. It is vital that those within the organization know and understand all of these elements, because everything that follows hinges on them. At heart, clarity measures the degree to which the brand and its owner are truly dedicated to understanding and defining their customer. From this stems a clear view of what the brand can offer to address an identified customer need. Without clarity, a brand lacks insight – the most precious of commodities, particularly in a recessionary climate. Indeed, as Harvard Business School suggests, instead of cutting research budgets in a recession, “you need to know more than ever how consumers are redefining value.” Boston Consulting Group agrees; it recommends that “to attract post-downturn customers, brands should upgrade their insight capabilities.” And insight doesn’t mean reams of expensive statistics: More and more companies are turning to faster and richer ethnographic techniques to observe and interact with customers, not just count them. So clarity, as we view it, is about audiences as well as what your brand can offer. Sometimes this is almost instinctive (think Virgin and Apple). Other times, it’s the product of a deep commitment to understanding customers fully and consistently. Multi-brand organizations like P&G and Unilever, which spend ahead of their share of market on research, and invest in the best and brightest people in this area, point the way here. At the same time, brands that achieve marketing clarity need to share that knowledge internally across key functions within the business. IBM is one brand that recognizes this. Kevin Bishop, Vice President of Brand System and Workforce Enablement for IBM Worldwide explains, ”It is the IBMer that really brings the brand to life and translates the things that really make a difference to our clients.” This is why the brand has invested in innovative initiatives like Beehive, which acts as a kind of internal Facebook for employees to share information and customer insights. Diageo is another brand that shares its marketing clarity across its business. The brand makes its DWBB model (the Diageo Way of Brand Building) central to its marketing culture and internal communications because it forces clarity on those responsible for assets like Johnnie Walker, Smirnoff, Baileys and Guinness. The markets in which we operate are growing harder to understand, but brands that invest in clarity will out-perform those that run on the vapor of instinct. – Leslie Butterfield, Interbrand Global Chief Strategy Officer
4
RESPONSIVENESS
This component looks at a brand’s ability to adapt to market changes, challenges and opportunities. The brand should have a desire and ability to constantly evolve and renew itself. Two years of recession have impacted the globe. As a direct result, brands were forced to be more agile and responsive to socioeconomic and competitive pressure. In 2010, many brands demonstrated responsiveness by adapting to customers’ increased desire for sustainable products. While the trend has been apparent in virtually every sector, it has been especially evident in the automotive category, where the growing concern among customers regarding fuel efficiency and greenhouse emissions, as well as demand for hybrids, has kept brands on their toes. Indeed, it is no coincidence that every car brand in our study will have some form of hybrid out in the market in the next two years. The true challenge for these brands, however, will be that new offerings adhere to the same design standards as their established models. Another challenge has come in the need to respond to consumers by harnessing the latest technology. This is evident in the growth of smartphones – especially Apple and BlackBerry, with Nokia seemingly in retreat. Not to be forgotten is the latest innovation from Apple: the iPad. Progress with mobile phones and now smartphones has been driven by fastdeveloping markets, which are driving sales at an accelerating pace. While this technology has existed for some years, it is only now gaining traction as consumers respond. Yet another challenge is the need to address competition, or perhaps to gain domination over the opposition. This year, sponsors of pivotal sporting events like the Winter Olympics in Canada and the FIFA World Cup in South Africa have been very active. Adidas is the major sponsor of football and bought sole rights for the event through FIFA. It sponsored the German national team, 11 other national teams, and provided the ball (the Jabulani). At the same time, Nike, as we have become accustomed to over the years, was extremely active through other events with its own sponsorships. Its global effort included a three-minute video, a social-awareness anti-AIDS campaign and co-branding with (PRODUCT) RED. Nike has maintained its momentum well after the football tournament ended, when others stopped. As it happened, the final was played out by one team that was sponsored by adidas, and one that was sponsored by Nike – a perfect match! – Jeremy Sampson, Group Executive Chairman, Interbrand Johannesburg