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Brand Finance GCC Brands Coverage of t he GCC t op 50 brand port folios in Gulf M arket ing Review

GCC Brand Port folios 50


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The only way is up...

GMR Exclusive: Working with Brand Finance ME we reveal the winners and losers in 2011’s Top 50 Corporate GCC Brands survey. Brand Finance is an independent brand valuation consultancy which publishes an annual study of the top 50 portfolio brands in the GCC. In this feature we look at how the brands performed this year compared to 2010 and how they stack as an indicator of short- to medium-term growth potential. The region is largely dominated by family-owned and government-controlled enterprises. Most brands are domiciled in the UAE and Saudi Arabia. Unsurprisingly Bahrain and Oman feature less. Brand selection was restricted by lack of financial information, which is generally only available for publicly quoted companies. Because of this some strong Gulf brands don’t appear as they are privately held or reliable financial data is unavailable. As was the case in 2010, banking and telecos continue to dominate, while property declined dramatically. Telecos and, to a certain extent, banks have recovered from the crisis in much better shape and faster than other sectors.

Since the start of the global financial recovery, many regional brands have increased their brand value (BV) through strategies such as international expansion, disposals, focusing on core competencies and brand repositioning. According to David Haigh, Brand Finance’s global CEO, consumer-orientated brands were the most buoyant. The top 50 This year’s top 50 GCC BV of $37.9bn is up seven per cent from 2010’s $35.9bn. The Brand Value Enterprise Value (BV/ EV) ratio measures how ‘hard’ the brand is working, ie how much value the brand adds to the EV. This year seven per cent of the total GCC Enterprise Value comprises BV, which is consistent with the result in 2010 (seven per cent). Brand portfolios The UAE and Saudi Arabian brands continue to dominate with about 70 per cent of the BV.

Brands portfolio Winners Etisalat Qtel Al Rajhi Bank Mobily Samba Financial Group National Bank of Abu Dhabi Emirates NBD Riyad Bank First Gulf Bank STC Losers Saudi Electricity Co. Zain Kuwait Finance House Petro Rabigh Americana TAQA DP World Agility Emaar Properties Emirates Integrated Telco

Change in BV (US$ millions) 783 584 582 448 317 307 295 290 234 222 Change in BV (US$ millions) -806 -596 -422 -351 -341 -236 -91 -69 -57 -48

Source: Brand Finance plc 2011

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TOP 50 ME Brands (US$ millions) – brand splits


Ranking 2011

Ranking 2010

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

1 3 5 4 2 11 9 10 12 8 25 17 27 24 14 18 20 6 N/A 30 19 29 29 22 31 15 33 26 40 34 35 49 36 13 16 37 38 41 43 39 47 – – – 50 – 45 – 21 n/a




Emirates Etisalat Qtel STC Zain Al Rajhi Bank Mobily Emirates NBD National Bank Of Abu Dhabi DP World Samba Financial Group Sabic Riyad Bank First Gulf Bank NBK Almarai Co. Ltd QNB Saudi Electricity Co. Industries Qatar ADCB Du Banque Saudi Fransi SABB Agility Arab National Bank TAQA Mashreq Emaar Properties Pjsc QIB Ahli United Bank Dubai Islamic Bank Commercial Bank Jarir Bookstore Kuwait Finance House Americana Omantel Dar Al Arkan ADIB Bank Muscat Batelco Woqod RAKBANK Doha Bank Arab Banking Corporation Dubai Investments Union National Bankk Burgan Bank Saudi Hollandi Bank Petro Rabigh Air Arabia

Airlines Cellular Telecom Telephone-Integrated Telecom Services Cellular Telecom Commer Banks Non-US Telecom Services Regional Banks-Non US Commer Banks Non-US Whsing&Harbor Trans Serv Commer Banks Non-US Chemicals-Diversified Commer Banks Non-US Commer Banks Non-US Commer Banks Non-US Food-Dairy Products Commer Banks Non-US Electric-Integrated Chemicals Commer Banks Non-US Telephone-Integrated Commer Banks Non-US Commer Banks Non-US Logistics Commer Banks Non-US Electric-Generation Commer Banks Non-US Real Estate Oper/Develop Commer Banks Non-US Commer Banks Non-US Commer Banks Non-US Commer Banks Non-US Retail-Office Supplies Commer Banks Non-US Food-Misc/Diversified Telecom Services Real Estate Oper/Develop Commer Banks Non-US Commer Banks Non-US Telecom Services Oil Refining & Marketing Commer Banks Non-US Commer Banks Non-US Commer Banks Non-US Venture Capital Commer Banks Non-US Commer Banks Non-US Commer Banks Non-US Chemicals Airlines

UAE UAE Qatar Saudi Arabia Kuwait Saudi Arabia Saudi Arabia UAE UAE UAE Saudi Arabia Saudi Arabia Saudi Arabia UAE Kuwait Saudi Arabia Qatar Saudi Arabia Qatar UAE UAE Saudi Arabia Saudi Arabia Kuwait Saudi Arabia UAE UAE UAE Qatar Bahrain UAE Qatar Saudi Arabia Kuwait Kuwait Oman Saudi Arabia UAE Oman Bahrain Qatar UAE Qatar Bahrain UAE UAE Kuwait Saudi Arabia Saudi Arabia UAE

Brand Value 2011

Brand Rating 2011

Enterprise Value

3,622 3,390 2,949 2,616 2,293 1,504 1,423 1,238 1,142 942 792 791 751 750 743 738 703 650 629 584 599 507 476 462 457 449 425 411 368 366 350 342 330 326 324 323 311 305 300 292 256 245 224 220 216 209 203 196 189 175


22,740 18,067 29,151 20,193 30,919 12,215 4,464 7,651 14,394 15,140 99,482 11,290 5,615 17,804 7,617 16,786 31,488 17,093 3,091 3,681 9,387 9,276 1,988 7,140 18,453 n/a 6,352 4,909 4,145 2,389 5,305 1,751 10,743 2,753 2,412 2,808 1,874 3,007 1,990 1,268 1,352 2,826 1,555 947 2,193 2,354 2,938 12,331 598

Source: Brand Finance plc 2011

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Brand Value / Enterprise Value (%) n/a 15% 16% 9% 11% 5% 6% 28% 15% 7% 5% 1% 7% 13% 4% 10% 4% 2% 2% 19% 7% 5% 5% 23% 6% 2% n/a 6% 7% 9% 15% 6% 19% 3% 23% 15% 11% 16% 10% 15% 20% 18% 8% 14% 23% 10% 9% 7% 2% 29%

Brand Value 2010 3,518 2,607 2,366 2,393 2,889 922 976 943 835 1,033 475 639 461 517 685 621 545 1,457 – 394 572 334 400 531 356 685 330 468 241 323 315 177 300 748 665 285 277 222 202 246 181 132 169 159 174 144 186 147 539 –

Enterprise Value 2010* 12,131 19,951 4,265 32,607 24,170 30,899 10,049 6,734 8,228 13,004 13,380 90,871 11,720 7,319 12,910 6,095 13,165 24,211 – 2,750 3,738 8,755 10,550 2,267 8,233 18,469 3,968 6,401 4,753 2,903 3,083 4,430 1,452 10,172 2,470 2,586 4,046 1,701 2,566 2,245 908 1,179 2,424 1,380 972 2,196 1,440 2,999 15,787 –

Brand Value / Enterprise Value 2010 (%) 29% 13% 14% 7% 12% 3% 10% 14% 10% 8% 4% 1% 4% 7% 5% 10% 4% 6% – 14% 15% 4% 4% 23% 4% 4% 8% 7% 5% 11% 10% 4% 21% 7% 27% 11% 7% 13% 8% 11% 20% 11% 7% 12% 18% 7% 13% 5% 3% –

Brand Rating 2010 AAAAA AA+ A+ AAAA A AAAA AAA AA A+ AA AA AAAA A+ – A+ A A+ A+ A+ A+ AAA+ AA A+ AA AAA A+ A+ AA+ A+ A A+ AAAA+ A A+ AA+ A+ A A –

$57m Amount Emaar lost in Brand Value in 2010 $260m Emirates’ global advertising budget for 2010 Qtel The third most valuable GCC brand with a BV of $2.95bn Mobily Smartphone and tablet PC usage contributes 20 per cent to total revenue October 2011 Gulf Marketing Review 41

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Top brand portfolios by country Brand bahrain Ahli United Bank Batelco Arab Banking Corp Kuwait Zain NBK Agility Kuwait Finance House Americana Burgan Bank UAE Emirates Etisalat Emirates NBD National Bank Of Abu Dhabi DP World First Gulf Bank ADCB Du TAQA Mashreq Emaar Properties Dubai Islamic Bank ADIB RAKBANK Dubai Investments Union National Bank

BV 2011

BR 2011


BV / EV 2011 (%)

BV 2010

EV 2010

BV/EV 2010 (%)

BR 2010

Banks Telecoms Services Banks

366 292 220


4,145 1,988 1,555

9% 15% 14%

323 246 159

2,903 2,245 1,380

11% 11% 12%


Cellular Telecoms Banks Logistics Banks Food Banks

2,293 743 462 326 324 203


20,193 16,558 1,988 10,743 1,393 2,354

11% 4% 23% 3% 23% 9%

2,889 685 531 748 665 186

24,170 12,910 2,267 10,172 2,470 1,440

12% 5% 23% 7% 27% 13%


Airlines Cellular Telecoms Banks Banks Commercial Services Banks Banks Telecoms Services Electric Banks Real Estate Banks Banks Banks Venture Capital Banks

3,622 3,390 1,238 1,142 942 750 584 524 449 425 411 350 305 245 216 209


n/a 22,740 4,464 7,651 14,394 5,615 3,091 7,271 18,453 n/a 6,352 2,389 1,874 1,352 947 2,193

n/a 15% 28% 15% 7% 13% 19% 7% 2% n/a 6% 15% 16% 18% 23% 10%

3,518 2,607 943 835 1,033 517 394 572 685 330 468 315 222 132 174 144

12,131 19,951 6,734 8,228 13,004 7,319 2,750 3,738 18,469 3,968 6,401 3,083 1,701 1,179 972 2,196

29% 13% 14% 10% 8% 7% 14% 15% 4% 8% 7% 10% 13% 11% 18% 7%



Source: Brand Finance plc 2011. Reference: BV = Brand Value; BR = Brand Rating; EV = Enterprise Value

The two remaining real estate brands in the top 50 are Emaar and Dar Al Arkan. Only two property brands remain: Emaar and Dar Al Arkan. Emaar lost $57m in BV to $411m in 2010 and has a lower brand rating of AA-. It fared better than other property companies. However its hotels, in line with Dubai tourism, performed much better than expected. It expanded internationally, which now accounts for more than 10 per cent of revenues. International expansion is forecast to compensate for declining revenue in Dubai. Dar Al Arkan increased its BV to $34m and moves up one slot to 37. Telecos Telecos are operating in a region reaching maturity with projected CAGR of six per

cent, compared to 2010 and 2015, and to a historical CAGR of 28 per cent from 2005 to 2010. Domestic operations remain important as they account for the bulk of revenues, forcing telecos to adopt a number of strategies. Etisalat and STC are pursuing brand expansion; Zain is focusing on key markets and improving brand loyalty, while Qtel is consolidating its brand portfolio. The common aim among telecos is the pursuit of next-generation networks and services. Middle Eastern countries could surpass European countries in adopting LTE led by Saudi Arabia, the UAE and Bahrain. Consequently, broadband has become

the battleground for brand growth. This is driven by the expanding data market, underpinned by the fast-growing global handset and media device segment. Banking The sector is recovering due to improved economic growth driven by high oil prices and various government initiatives. Some banks are performing better depending on the country in which they operate. Qatar, for example, is witnessing runaway growth driven by higher economic growth, sky-high public spending and lower systemic risks. Overall, banking brands have performed well with an increase in brand value of $3.4bn. Top brand analysis Emirates is the most valuable GCC brand for the fifth consecutive year, with an

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Top brand portfolios by country Brand Oman Omantel BankMuscat Qatar Qtel QNB Industries Qatar QIB Commercialbank Woqod Doha Bank Saudi Arabia STC Al Rajhi Bank Mobily Samba Financial Group Sabic Riyad Bank Almarai Saudi Electricity Co. Banque Saudi Fransi SABB Arab National Bank Jarir Bookstore Dar Al Arkan Saudi Hollandi Bank Petro Rabigh

BV 2011

BR 2011


BV / EV 2011 (%)

BV 2010

EV 2010

BV/EV 2010 (%)

BR 2010

Telecoms Services Telecoms Services

323 300


2,171 3,007

15% 10%

285 202

2,586 2,566

11% 8%

A+ A+

Cellular Telecoms Banks Chemicals Banks Banks Oil&Gas Banks

2,949 703 629 368 342 256 224


18,067 16,786 34,182 4,909 5,305 1,268 2,826

16% 4% 2% 7% 6% 20% 8%

2,366 545 – 241 177 181 169

4,265 13,165 – 4,753 4,430 908 2,424

14% 4% – 5% 4% 20% 7%


Telecoms Services Banks Cellular Telecoms Banks Chemicals Banks Food Electric Banks Banks Banks Retail Real Estate Banks Chemicals

2,616 1,504 1,423 792 791 751 738 650 507 476 457 330 311 196 189


29,151 30,919 24,429 15,140 99,482 11,290 7,312 31,488 9,387 9,276 7,140 1,751 2,808 2,938 12,331

9% 5% 6% 5% 1% 7% 10% 2% 5% 5% 6% 19% 11% 7% 2%

2,393 922 976 475 639 461 621 1,457 334 400 356 300 277 147 539

32,607 30,899 10,049 13,380 90,871 11,720 6,095 24,211 8,755 10,550 8,233 1,452 4,046 2,999 15,787

7% 3% 10% 4% 1% 4% 10% 6% 4% 4% 4% 21% 7% 5% 3%

A+ AA A A AA A+ AAA+ A+ A+ A+ A+ A+ A A


Source: Brand Finance plc 2011. Reference: BV = Brand Value; BR = Brand Rating; EV = Enterprise Value

estimated BV of $3.62bn, a three per cent increase. This is driven by a 25 per cent growth in passenger revenues and important strides in the long haul passenger market. Secondly, the focus on brand building and ability to match forecasted demand with a continuous investment in onboard service made a significant contribution. The brand rating has remained at AAA-, while maintaining its position as the only airline in the top 50. Emirates has one of the youngest fleets so it is not burdened with high maintenance or replacement costs, while its perception as a dynamic carrier attracts business and first-class passengers, from which it makes most of its profit. Its massive order book for the next 10 years of Airbus A380s and 190 aircraft means it is projected to record double-digit

passenger growth, leaving competitors such as British Airlines and Singapore Airlines trailing in its wake. Continued investment in quality for both premium and standard level customers has built brand loyalty across the board. With tourism recovering in Dubai, the brand links with Emirates should help it achieve its short-term growth targets. It has taken advantage of its perception as an Asian airline and capitalised on the reputation of carriers such as Singapore Airlines and Cathay Pacific for excellent customer service. In addition to having an open skies policy, it operates wide-body aircraft and flies mostly long haul, which lowers its per-seat-mile costs. Last year it awarded its $260m global advertising budget to Amsterdam-based Strawberry Frog, which is currently roll-

ing out a new brand platform across 80 markets as the national airline for Dubai. Ultimately it aims to be one of the world’s most recognised global names, increasing its marketing focus on DM, digital and event marketing. Emirates also spends substantial amounts on sports marketing, including sponsorships. One of its biggest challenges is opening enough routes quickly enough to ensure the new airplanes are used efficiently. There is also a risk of spreading its resources too thin and encountering a quality-based challenge. Etisalat Etisalat is the second most valuable brand with a BV of $3.4bn. It is heavily dependent on its home market as the UAE contributes 78 per cent to revenues. In addition the UAE is highly saturated and penetration

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Š Getty/Gallo Images


Winning streak: Saudi’s Al Rajhi Bank was named the most outstanding Islamic Bank at the Kuala Lumpur Islamic Finance Forum 2010

...broadband is turning out to be the next battleground for brand growth. levels are the highest in the region at 140 per cent. Increased competition from du meant decreasing market share and increasing pressure on profit margins. In spite of this BV has increased by $700m. There has been a shift towards value creation and profitability, infrastructuresharing, outsourcing, and shared services within the company. With a brand rating of AA- Etisalat has stretched its product offering to innovative new packages and services, such as bundled triple play services, 3D TV and a new fibre-tothe-home network. Its international market expansion bodes well, accounting for 23 per cent of revenues. A successful rebranding of its Sri Lankan operation was followed by useful results from its Afghanistan operation and it has so far been able to distance itself from the 2G Indian Telecoms scandal that could still threaten its operations in the country. Emirates NBD Emirates NBD is the eighth most valuable GCC brand overall and the third

most valuable in the UAE, with a BV of $1.24bn. The bank unveiled its new brand identity in 2009 following the merger of Emirates Bank and NBD in 2007. Rebranding has meant increased cost efficiencies of marketing a single brand. The brand has also been leveraged to enable cross-selling along the range of services it now provides. It is one of the few Middle Eastern banks to focus on maintaining a consistent image while also having three distinctive levels of service in its branches. As a result the brand rating has improved to AA from AA- this year, as well as a year-on-year increase in BV of $295m. Emirates NBD has benefited by associating with Brand Dubai in a similar way to Emirates Airline. It is a sponsor of the Dubai Shopping Festival, for example. Since the rebrand it has maintained the strength of the name through 360-degree marketing reaching all stakeholders through consumer insights, product innovation, internal branding, brand activation, events and sponsorships, local area marketing, digital marketing and communications.

It has navigated the crisis better than its rivals and as markets begin to recover is poised to take advantage of improving economic fundamentals. Key factors driving growth include the return of Asian business investment, better underlying financial performance through lending and credit growth, and sustained high oil and gas prices. Al Rajhi Bank Al Rajhi Bank is the sixth most valuable brand in the GCC with a BV of $1.5bn. It updated its brand identity in 2005 and has since leveraged it to strike the right balance between increased competitiveness in the local market, while expanding internationally into some of the most active Islamic finance destinations of Malaysia, Kuwait and more recently Jordan. It won a 2010 award for the most outstanding Islamic Bank at the Kuala Lumpur Islamic Finance Forum and this is reflected by a brand Rating of AA+ and a year-on-year increase in its BV of $0.5bn. STC STC is the fourth most valuable brand with a BV of $2.6bn, a nine per cent increase from 2010. BV rose steadily from $2.1bn since it rebranded in 2008.

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Top scores: Mobily has become one of the fastest-growing brands in the region

...telecos and to a certain extent banks have recovered from the crisis in much better shape and faster than other sectors. It is one of the top advertisers in the GCC, with an estimated annual budget of $130m. The rebrand was instrumental in repositioning STC in the domestic market as a multi-play operator with a focus on the youth segment. While mobile penetration is one of the highest in the region, the most important avenue for growth is broadband which has seen a CARG of almost 123 per cent since 2006. STC operates fixed lines (nextgeneration network) as well as mobile communications. This enables it to provide triple-play services in addition to data services for data-hungry smart phones. It is also one of the few companies in the region to invest in a 4G LTE network. It has retained its brand rating of A+, with potential for improvement in the near future. STC recently expanded into

countries such as Indonesia and Kuwait where revenues doubled year on year. Its presence in Indonesia holds a lot of promise as Indonesians are one of the largest set of expatriates – approximately one million – in Saudi Arabia, so it presents a great opportunity to build brand loyalty in a market that is set to become one of the five largest by 2030. Mobily Mobily is the seventh most valuable brand in the GCC, with a BV of $1.4bn and a year-on-year increase of 46 per cent. It is one of the fastest-growing mobile operators in the region and, since its launch in 2005, has been responsible for a number of firsts in Saudi Arabia, such as the Iphone 3G, Blackberry Internet Service, and a series of value-added services to attract new customers. Its impressive performance has earned it a brand rating of A+.

Mobily’s smartphone and table PC usage now contribute 20 per cent to total revenue, underscoring the importance of the mobile broadband (this segment has one of the highest margins in the industry) in the region. The provision of network coverage for the tablet market, which is still in its infancy in Saudi Arabia, is expected to produce dramatic growth. As part of its growth strategy, Mobily has adopted GED (growth, efficiency, differentiation), to provide integrated teleco services built around fixed and mobile broadband technologies. Following LTE trials last year, it plans to roll out 4G services by the end of this month. It is also expanding its online presence through social networking platforms, which should help improve its current A+ brand rating. Zain Zain is the fifth most valuable brand in the GCC with a BV of $2.3bn. It has fallen to fifth place primarily due to the sale of its African operations to Bharti Airtel. However it has maintained its brand rating of AA-. This is because the change in its strategy to focus more on more profitable and distinct business in the Middle East is

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widely seen as positive. Apart from the higher margin Middle East markets, it also operates in rapidly growing economies such as Iraq and Sudan. This means the brand is well balanced between value and growth. Qtel Qtel is the third most valuable brand in the GCC with a brand value of $2.95bn. The Qatari teleco sector has seen similar trends to other GCC markets in that mobile penetration exceeds 100 per cent. Competition has also meant eroding market share. In response Qtel carried out a brand refreshment in 2010 complemented by new service offerings. The latest tag line, “Fuel Your Senses,” is intended to engage customers in its entire range of entertainment and media services. This positioning is in line with its strategy to develop the lucrative broadband market. To complement the refreshed brand identity Qtel opened a network of new concept shops. Other enhancements include the launch of a next-day installation service, value-led promotions across the product range, and significant improvements to both the indoor and outdoor 3G network. The new brand architecture should facilitate better group synergies and leverage efficiencies. This will be key going forward as Qtel is now one of the most diversified telecos in the region, with several rapidly growing brands under its portfolio such as Wataniya, Nedjma, Nawras, Tunisiana, Indosat and Asicaell. National Bank of Abu Dhabi The National Bank of Abu Dhabi is the ninth most valuable banking brand in the GCC with a BV of $1.1bn. It is one of the most internationally diversified banks in the UAE and is poised to increase as it expands in Malaysia to offer niche products and services to the SME segment. The National Bank of Abu Dhabi is consistently ranked as one of the safest banks in the world which has helped it retain its brand rating of AA. It is also repositioning its brand to unify itself across all customer touchpoints. This

Definitions Definition of brand – Within brand finance literature, we refer to a brand as a trademark or associated Intellectual Property (IP). A fuller description of a brand would be a collection of images/ideas representing a producer; such as a name, logo, slogan, and design conveying the essence of the company, product or service. Brand Value Brand Value is considered to be the net present value of the estimated future cash flows attributable to the brand. Brand finance uses the Royalty Relief methodology to value a brand. Brand Value is also referred to as Brand Equity. A brand can be an intangible asset to rationalise the variation between a company’s “book value” and market value. For example, research conducted by Brand Finance shows that 62 per cent of the world’s business is intangible. This represents $19.5trn of $31.6trn global market value. Royalty Relief Royalty Relief is based on the notion that a brand holding company owns the brand and licenses it to an operating company. The notional price paid by the operating company to the brand company is expressed as a royalty rate. The Net Present Value (NPV) of all forecast royalties represents the value of the brand to the business. The attraction of this method is that it is based on commercial practice in the real world. It involves estimating likely future sales, applying an appropriate royalty rate to them and then discounting estimated future, post-tax royalties, to arrive at a NPV. Enterprise Value Market capitalisation + preferred equity + minority interest + total debt (long term and short term) – cash and equivalents = Enterprise Value Headquartered in London, Brand Finance plc is an independent intangible asset valuation consultancy, with offices in 22 countries including the UAE. The consultancy publishes an annual study of the top 50 portfolio brands in the GCC.

is possibly in response to the brand being perceived as conservative and protective – even in the boom times. The brand’s growth is bound to be tied to the performance of Abu Dhabi and its diversification of the economy away from oil. The extent of the emirate’s success in implementing this will affect the group’s vision of becoming the world’s best Arab bank. DP World DP World is the 10th most valuable brand in the GCC with a BV of $942m and a few terminal operators. It grew at eight per cent in volume. The brand is highly exposed to fast-growing, emerging markets and trade growth, with

65 per cent of volume flowing through the Middle East, India and Asia; this is projected to rise this year. DP World’s brand rating is A+, which is set to improve next year on the back of its £1.5bn investment in the London Gateway Project and its listing on the London Stock Exchange. There is no comparable European-listed player with a focus on emerging markets’ container n terminal operations.

Gautam Sen Gupta Managing director Brand Finance ME

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Concrete evidence

The continuing economic crisis has wiped $6.3trn off the global value of intangible assets, but are there brighter days ahead?

Further panic in world stock markets has caused a 25 per cent ($6.3trn) reduction in intangible asset values according to the Brand Finance Global Intangible Financial Tracker League Table (GIFT). Despite the fall an update of the Brand Finance Global 100 brands shows that there has only been a 2.4 per cent drop in their combined value. Financial brands Financial service brands have been hit hardest. Tougher legislation, sluggish activity in the corporate market and ongoing fears regarding exposure to sovereign debt has meant banking and insurance brands suffered. Bank brands in the top 100 have lost $25.9bn from their total brand value

(seven per cent) since January. HSBC has become the world’s most valuable bank brand, keeping a steady position at 10. Bank of America experienced a brand value fall of $5.3bn, taking it down to 14. Likewise Wells Fargo saw a 12 per cent reduction in brand value. Santander also fell in the league table, with a reduction of $3.3bn. Insurance brands saw a drop of six per cent, with AXA fairing the worst with a loss of $1.6bn of brand value taking it out of the top 50. Tech brands The crisis has not led to a blanket reduction in brand value, however. Technology and electronics brands are prospering with Google, Apple and Microsoft taking the top

three slots. Apple has increased its value by 33 per cent, making it a more valuable brand than Microsoft for the first time. Established economies The total brand value for the 46 US headquartered brands declined by two per cent from January. US brands dependent on their home market suffered bigger losses than global brands such as McDonald’s, Nike and CocaCola, which all improved their position. Japanese brands dropped three per cent due to the tsunami disrupting business. Europe also felt the pressure with Spanish brands down 13 per cent and France five per cent. Both are exposed to issues within the financial services sector.

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Developing countries In contrast, emerging economies including China, India and South Korea all show strong performances. In China the total brand value increased with two new brands entering the top 100; PetroChina and China Life Insurance Company. Argricultural Bank of China increased brand value by $1.5bn, rising from 99 to 71 in the league table. Samsung is another notable performer, increasing the value of its brand to $26.6bn – up 24 per cent. The South Korean company has not experienced the supply chain disruptions by its Japanese competitors and is developing a stronger hold on both the TV and smart phone markets. Similarly in India TATA moved up the league with a new brand value of $14.8bn at 41 – previously 50. Additional insights • Coca-Cola has reversed the decline noted in BrandFinance® Global 500 and is now the 11th most valuable brand. This shift creates a greater lead over its rival, Pepsi ($19.1bn/ 25). • The auto sector has also performed well in the past six months, with crisisplagued Toyota re-entering the top 10 with a value of $28.8bn. • In Europe, Germany maintained a steady position, underpinned by a stable economy and strong auto industry including brands BMW, Mercedes Benz and Volkswagen. The UK saw two additional brands enter n the top 100; BP and BT. About the study • The Brand Finance plc. Global Intangible Financial Tracker League Table (GIFT) is a 10-year study of the intangible asset values of all public stock exchanges worldwide • GIFT is released in January each year, but due to the exceptional economic conditions was updated in August.

Global Brands portfolio


Ranking 2011

Ranking 2010

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

1 8 2 4 3 5 7 14 10 11 16 18 9 6 13 12 17 27 15 19



Google Apple Microsoft IBM Wal-Mart Vodafone General Electric Toyota AT&T HSBC Coca-Cola Samsung Wells Fargo Bank of America HP Verizon McDonald’s Intel Santander Tesco

United States United States United States United States United States Britain United States Japan United States Britain United States South Korea United States United States United States United States United States United States Spain Britain

Winners Apple Samsung Intel eBay Amazon Bank of China PetroChina Volkswagen Sberbank McDonald’s

Losers Movistar Panasonic Carrefour Bank of America Bbva Itaù Oracle Goldman Sachs Cisco Bradesco

Brand Value 2011

Brand rating 2011

48,278 39,301 39,005 35,981 34,997 30,740 29,060 28,800 28,354 27,100 26,994 26,578 25,451 25,346 24,992 24,687 24,211 23,491 23,403 21,640


Change in BV Jan-Sept 2011 (%) 33 24 23 18 17 16 16 12 12 11

Change in BV Jan-Sept 2011 ($mn) 9,758 5,067 4,413 1,417 3,106 1,530 1,308 1,525 1,385 2,370

Change in BV Jan-Sept 2011 (%) -24 -24 -18 -17 -17 -16 -15 -13 -13 13

Change in BV Jan-Sept 2011 ($mn) -3,572 -2,944 -2,171 -5,273 -1,769 -2,723 -2,225 -1,754 -1,505 -2,397

Source: Brand Finance plc 2011

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Reconnecting with customers through online marketing “Go to the people. Learn from them. Live with them” (Lao Tzu) In an increasingly cluttered and skeptical market, brands are faced with the ongoing challenge of how to maintain and in some cases reconnect with their customer base. Both international and regional research findings indicate growing mistrust in traditional advertising, whilst the impact of peer group endorsement is increasing. Within the banking sector, which is still struggling to recover from negative consumer sentiment over the global financial crisis, the need to rebuild lost trust is even greater. The online shift Online engagement represents an ideal opportunity to connect with new and existing customers. For Al Rajhi Bank the increased online focus is driven by 3 factors: 1. Brand Fit: the online platform provides an ideal opportunity for the brand to engage with customers 2. Consumer Insights: traditional engagement with financial services brands is low relative to other categories and the role of the peer group influencer in the decision making process is high 3. Competition: In an increasingly price sensitive market, online activity provides the ideal opportunity for a brand to reinforce its emotive bond through greater interaction The online journey begins It started with the simple idea of building on the success of the 2010 Ladies Painting Competition ( ). Using customer feedback as the catalyst, the competition was transformed into an online for-

mat for 2011. From a voice of customer perspective, this resulted in a more transparent and engaging experience. Not only did the competition exceed all business expectations with a 200% increase in the number of submitted paintings over 2010 (from 1,200 to 2,800 paintings). The approach resulted in the saving of both time and cost with improved levels of consumer engagement. Paintings from the Competition later inspired the development of an online greeting cards website ( ), where visitors customize their own messages and send e-greeting cards to their friends and family in an environmentally friendly manner. In the first month of the micro-site going live, over 5,000 cards were sent with visitor engagement across multiple markets. An online interactive initiative supporting personal financing products came in the form of an Online “Tell us your need” Competition (www.tellusyourneed. com). Visitors were encouraged to share their stories about financial difficulties on the microsite. By using social media more friends and family viewed their story and voted, with the most voted for stories winning. The Competition was a phenomenal learning experience, with over 700 emotive stories and 200,000 unique visitors. An iterative learning experience The online journey represents a brave new world, one that is treated with a mix of hope and uncertainty by most brands. This journey into the unknown requires an open mind and a mindset willing to risk and always learn. To reach success, brands need to embrace both positive and negative experiences, learn from them and treat them as

building blocks. Lessons learned from our online journey include: 1. Everyone wants “15 minutes of fame” Andy Warhol accurately remarked that in the future everyone will want their 15 minutes of fame. The future is here and the online world gives every person the chance to broadcast their customized message. There are multiple ways for a brand to give back; the traditional approach is based on prizes for participation. The evolving approach provides a platform for people to showcase and share their achievements, hence giving them their 15 minutes of fame. The ARB Ladies Painting Competition developed this very platform for ladies from across KSA to showcase their fine works of art, resulting in an online community of over 70,000 people. 2. Maximizing customer interaction Online campaigns should be engaging but also simple so as to accommodate the lowest possible denominator of targeted visitors. The “Tell us your need” Competition followed 3 easy steps: step 1: submit your story; step 2: get friends and family to vote for your story; step 3: get the most votes and win. An interesting observation was that some voters converted to becoming participants themselves. This resulted in a viral snowball effect, which optimized participation and positive engagement with the brand. 3. Addressing the ROI question Online engagement is attractive ROI option on two fronts; 1. from a brand perspective, the potential for real time engagement is high; 2. from a business perspective, the opportunity to measure cam-

paign impact is more precise and time effective than traditional offline media. However, the opportunity is often offset by the lack of historical benchmarks. To overcome this, a phased approach was used to set targets for the “Tell us your need” Competition. The first phase acted as a dry run in setting up achievement campaign metrics. This allowed us to develop more accurate metrics for phase 2. 4. Embracing the new communication challenge Traditional media is based on the way one way communication model, with the brand speaking to the audience. Whereas online media presents more of an equal playing field with both brand and audience able to interact, alter and influence thoughts, with the brand often taking the role of facilitator for consumers to engage, exchange thoughts and often reach a consensus based on the key influencers present in the online tribe. For the Online Ladies Painting Competition, engagement was increased by shifting the voting mechanism from expert judges in 2010 to visitor voting in 2011. 5. Breaking down geographical borders With expansion into Malaysia, Kuwait and Jordan markets, there is a need for both message consistency and synergies of advertising efforts. The online greeting cards website allowed the brand to communicate across borders, with over 5,000 cards sent across multiple markets, a task difficult to achieve using traditional media in a cost effective manner. Yusuf Jehangir: Head of Marketing & Corporate Communications, Al Rajhi Bank

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The world’s leading independent brand valuation consultancy

The Top 50 Brand Portfolios in the GCC  
The Top 50 Brand Portfolios in the GCC  

Originally featuring in the Gulf Marketing Review, Gautam Sen Gupta, MD, Brand Finance, offers an explanation of how the top GCC brand have...