Best of BrandZ 2019 - Kantar Millward Brown
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TM Best of BrandZ 2019
Best of BrandZ 2019
Introduction
As we prepare to publish our first In today’s marketing world More than this, BrandZ continues
BrandZ™ rankings of the year, dominated by increasing to be the biggest and most in-
looking at the most valuable volatility, uncertainty, ambiguity depth database of brands in the
brands in France, Germany, and complexity, insights have world. We are measuring and
Japan, Canada, the USA and the become the most potent analysing brands like yours every
Netherlands, we wanted to reflect weapons in your brand’s single day.
on some of our most compelling armoury.
and insightful thought leadership If you would like to learn more,
from 2019. In this volume, we have hand- to inform better marketing
picked ten of our most diverse strategies and to anticipate and
Over the past 12 months, we and interesting articles from leverage key marketing trends,
have published reports on 16 last year. Whatever your own don’t hesitate to talk to our brand
different countries, as well as our marketing concerns might be, experts at Kantar or email us at
global report and our special BrandZ has relevant expertise brandz@kantar.com.
editions, including our Top 75 to stimulate your thinking and
Most Valuable Global Retail inform your strategy. And if any Wishing you all the best for a
Brands ranking and report. of these articles make you hungry successful 2020.
We saw Amazon leap to the top for more, all of our 2019 reports
of our global ranking, and an are available to download for free
unprecedented pace of change from our website>>
which impacted many brands.
Doreen Wang
Global Head of BrandZ
Kantar
2
Best of BrandZ 2019
Contents
01 02 03 04 05
Brand meaning in a The importance of Customer-centric journeys Humanising brands: it all Why attention elasticity is the
volatile world Business-to-Business brands in the ‘Age of Experience’ starts with a purpose biggest issue facing marketers
Brands are operating in an ‘Brand’ is especially important People don’t just want products Brands need to re-examine their As marketers, we’re taught
increasingly volatile and complex in the technology sector as anymore, they are looking for relationships with people - what that we need to stand out; to
environment. The development B2B categories become more experiences. These expectations the brand stands for, what they capture an audience’s attention
of brand ecosystems and the heterogenous. It’s rare today for are impacted by experiences say, and how they behave. To with messages across multiple
blurring of categories is creating a company to work exclusively in unrelated categories. If your understand how to better engage channels and guide them
ever more ambiguity. Meaningful with one B2B supplier. With so last trip to a store or a hospital with consumers, brands need to towards a checkout, repeat
associations are now driving many entry points, companies was a wonderful experience, why learn to be more human, because purchase and loyalty. But in
brand value growth, and instant are more likely to work with a wouldn’t you expect the same brands with high emotional today’s terribly noisy ecosystem,
recognition, leading to sustained group of providers to service from your bank or airline? intelligence win. that’s easier said than done.
value. different needs. Go to article >> Go to article >> Go to article >>
Go to article >> Go to article >>
06 07 08 09 10
Chinese brands expand Beauty and wellness To change or not to change… From ‘own label’ to ‘exclusive The success of Swapfiets and
globally, shift from value disruptors is not the question brand’ the lessons to be learned
to premium
The journey from value brand to Brands featured in BrandZ’s Once upon a time it was the Whatever you call them, own Swapfiets, with its distinctive
premium is not an easy one. But most valuable brands rankings privilege of only the choicest label products have been a blue front tyre, is one of the
it’s one that Chinese companies are often well known, but few to own a much-desired car mainstay of the UK grocery fastest growing brands in the
are trying to make. We take the not necessarily the dynamic in India. Enter Maruti – young, scene for more than a quarter of Netherlands – giving young
example of Haier as it transforms disruptors that attract interest modern, vibrant, state of the a century. But the influence of people their own high-quality
its appliance business into an of investors and CMOs. Kantar’s art and democratically priced. private label on the UK grocery bike for a fixed amount per
ecosystem of products and STAN team uses consumers’ Maruti stood for the promise and landscape is now deepening: we month, service included. Its
services. intuitive feelings, social media dream of India. Unbelievably investigate the implications of a marketing director shares some
Go to article >> and AI to identify and understand irresistible – what else could India shopping revolution. lessons for success.
movers and shakers in the US do but fall in love? Go to article >> Go to article >>
skincare market. Go to article >>
Go to article >>
3
Best of BrandZ 2019
01
Meaningful
associations
drive brand value
growth
And instant recognition sustains value
Graham Staplehurst
Global Strategy Director
BrandZ
graham.staplehurst@kantar.com
4
Best of BrandZ 2019
VUCA
Volatile Uncertain Complex Ambiguous
Brands are operating in an increasingly volatile and complex All brands ranked in the sustain their Salience with retail
environment. The development of brand ecosystems and the BrandZ™ Global Top 100 are presence and media investment.
“ Being blurring of categories — even the distinction between products Instant recognition
sustains current
super Salient, scoring an Difference with Salience leads to
Meaningful for business or personal use — is stressing value growth and the
organisation of brands by category, as many brands no longer fit brand value
average of 129 in Salience on
an index where 100 is average.
instant recognition by consumers.
That recognition reminds people
is the most into only one, narrowly-defined space. Overall, the Top 100 score
higher in Salience than in
why they choose these brands,
which sustains their market
discriminating This volatility sits in the wider
context of global insecurity and
double the number from just two
year ago, almost equaling the
Meaningful or Difference. penetration and sales, increasing
the brand’s Salience and closing
characteristic uncertainty produced by multiple
factors, including troubling
shift in 2012, when brands still
were recovering from the global
Similarly, the Global Top 50 score the virtuous circle.
of brands that geopolitics, the threat of climate financial crisis.
significantly higher in Salience
than brands in the bottom half It is a circle, rather than a spiral,
are growing” change, and evolving social
values, with change accelerated The North Star for navigating
of the ranking. Being seen as
Different is also vital. Brands
which would illustrate value
growth, because in a volatile
by technology. Borrowing through this volatile period is in the bottom half of the Top market, with so many new
an acronym that described Meaning. BrandZ™ analysis 100 ranking attain a strong brands appearing, Salience
conditions after the Cold War, revealed that being Meaningful average Difference score of 118. and Difference go only so far.
brands are in a period termed is the most discriminating But brands in the top half of the Salience is important to sustain
VUCA: Volatile, Uncertain, characteristic of brands that ranking average an even stronger current brand value but will not
Complex, and Ambiguous. are growing. 129 in Difference. necessarily produce faster brand
value growth.
The impact is clear in the Meaningful (filling functional, When brands are able to
BrandZ™ Global Top 100 results. emotional, or social needs in effectively combine strong
This year, nine new brands relevant ways) is one of the Salience and Difference, they
joined the ranking, the highest three components of brand trigger a virtuous circle. Their
number since 2015. And reflecting equity, along with Difference large size enables the most
geopolitical changes, six of the (being unlike competitors, valuable brands to remind people
newcomers were Asian brands — setting trends) and Salience why they are Different and to
four from China and two (coming quickly to mind during
from India. consideration).
Volatility in the ranking is also
evident in the average number
of ranks brands that have moved
up or down. In the 2019 BrandZ™
Global Top 100, brands shifted
an average of 9.6 ranks, around
5
Best of BrandZ 2019
Being Meaningful
Salience alone would be fine if
the world were not changing.
enabling them to make fast and
easy brand choices. A consumer “In the 2019 BrandZ™
Global Top 100, the brand ranking
Because of volatility, the who wants to find something with
drives value growth determinative factor for minimum effort may make the
increasing value is ensuring simplest choice because it “meets
the brand has the widest
possible set of positive
my needs.” Or the shopper may
select a product because it is the No. 100 has a value of $13.4 billion,
brand associations that are
Meaningful to consumers.
easiest to buy and has the best
user experience.
Each association interlocks the
219% greater than in 2006“
Brands that are growing in value consumer with the brand. Other
are seen as more Meaningful associations could be choosing
than brands where value is stable a brand because of affection for
or declining. The car category, it or because it makes purchasers
for example, is under pressure feel good about themselves. Brand implications
because of factors like climate This list of associations is not
change and technology (the shift exhaustive. But more is better.
to electric cars) and changing The ability of the association to
social values (the shift to sharing trigger a brand choice varies by To sustain value brands needs Meaningful brands are those that
vs. ownership). In this context, person and even by occasion to achieve Salience and instant anticipate evolving consumer
some brands with long heritage for the same person. These recognition. The BrandZ™ needs, that reset expectations
continue to be Salient. But associations cumulatively build Global Top 100 brands excel of what a brand can deliver in
Salience does not stop them from meaning for the brand. because their scale enables a category, and that redefine
declining in value as they struggle them to expand their retail themselves as their categories
to be Meaningful today. Among the trigger points that presence and invest in media change around them. Brands are
most characterize the faster exposure. networks of mental associations:
The key questions for brands growing brands are offering so, the brands that have
are: what is meaning, and how great value or something But the world of brands is associations rooted in a category
is it created in today’s volatile new. Most relevant in volatile becoming more volatile. With are typically constrained, while
marketplace? Meaning is having times, newcomer brands more newcomers entering the those whose associations are
a broad and deep set of mental scored the highest in each of Global Top 100, just sustaining broader and whose business
associations for the brand. The these dimensions. Newcomers value will not be sufficient. In the operates in an ecosystem, win the
associations relate to innate are tapping into the market 2019 BrandZ™ Global Top 100, battle for consumer relevance
consumer needs. Brand value volatility—and pushing the brand ranking No. 100 has a and affinity.
is created as these associations established brands to value of $13.4 billion, 219 percent
are activated. Each source of do more. greater than in 2006. Established
meaning can trigger a short- brands that do not grow value will
hand reminder for consumers, drop in the ranking or drop out of
the ranking.
Already enjoying the advantage
of consumer recognition,
established brands need to
“Newcomers are tapping into the build on that recognition by
continuously making themselves
market volatility—and pushing relevant and Meaningful.
established brands to do more”
This article was originally featured in our BrandZ Top 100 Most Valuable Global
Brands 2019 report Read the full report here.>>
6
Best of BrandZ 2019
02
Brand
importance
grows as tech
category
fragments
Innovation speed is in tension with
ability to cope
7
Best of BrandZ 2019
“Cloud is evolving so quickly,
clients look for reassurance
that the cloud provider
they choose will continue to
evolve rapidly”
Brand is especially a somewhat differing approach, The shift to cloud is a IBM brings its reputation in full-
leveraging its consumer-side
“ A price war important in technology disruptive punctuation point
expertise in data analytics, The power of brand for businesses when they need
service client engagement and
artificial intelligence, which, along
as the category becomes
is emerging more heterogeneous. It is
which adds value. With products
launched at the end of 2018, IBM
to decide whether to buy,
build, or rent cloud service and,
with data analysis, is also an
advantage for Google. Microsoft
among cloud rare today for a company
to work exclusively with
is becoming more aggressive.
Globally, Alibaba is also among
if choosing a cloud partner,
whether to align with one of
has a legacy physical presence in
many businesses that it leverages
providers” one B2B company, such the top-tier providers of
cloud power.
the majors or with a series of as it attempts to transition clients
as IBM or SAP. With specialists that together form to the cloud.
a customised service.
so many entry points, After these top-tier, multi- Historically, Microsoft had
companies are more likely solution cloud providers the Since the cloud is evolving separate campaigns for each of
to work with a group of market becomes fragmented. so quickly, clients look for its products, such as Windows,
B2B providers to service The leading providers of reassurance that the cloud Surface, and Azure, its cloud
different needs, such as cloud computing power face provider they choose will continue service. Audiences would see
competition from brands that to evolve rapidly and remain simultaneous campaigns that did
cloud, desktop, or data
offer a specialty based in the on the cutting-edge of cloud not necessarily stitch together.
centres. cloud. For example, Salesforce capability in ways that can help Now, Microsoft is focusing on its
was a pioneer in Customer the client succeed. masterbrand, trying to come to
Because so many of the solutions Relationship Management audiences as a unified solutions
are virtual and require minimal software and is known for the The keys for winning amid this provider and partner.
long-term investment, it is ease of adoption. Adobe, with cloud competition are security
relatively easy to make a change. its acquisition of Magento, and trust. When companies A masterbrand halo can add
However, since new solutions has a suite of tools to help stored data in their own data strength or illuminate problems.
are appearing at a rapid pace companies create more centres, they had a sense of Some retailer business customers
it is difficult to keep up and feel customised campaigns. security, justified or not. Putting resist supporting Amazon AWS,
confident about being up-to-
all that information in the cloud the cloud provider, if Amazon,
date. The speed of innovation and
is a leap of trust. Each of the the e-commerce giant, is hurting
opportunity is in tension with the
leading competitors for cloud their business. Some young
ability of organisations to cope.
leadership tries to leverage its people resist Microsoft because
particular advantages. of a legacy that to them is
A price war is emerging among
about being temperamentally
cloud providers because
Entering the cloud early with AWS aggressive and closed
offerings are similar and being
and the idea of infrastructure as in execution.
commoditised. Although Amazon
a service, Amazon created a
AWS leads in cloud, Microsoft
low-friction experience.
Azure is growing quickly, and
Google is coming with
8
Best of BrandZ 2019
“It is important to build an
attachment based on trust
Consistency is key
The brands that cross B2B
and B2C are working on the
consistency of what they deliver,
This consistency of experience
is important to individual
users. A person’s brain doesn’t
and reliability”
across B2B and B2C both as an experience and as keep switching to say this is
a brand. Amazon makes things the business side, this is the
easy and almost omnipresent, consumer side. The question is,
everything goes to your door. what does the umbrella brand
AWS, Amazon’s cloud provider, mean and deliver?
seems to have a similar 1. Build equity 4. Reach more influencers
approach. You can find a plethora
Alexandre Momma of services and set it up quickly. Brand building action All of the purchasing influencers
Building brand equity for a B2B
VP, Client Leadership Google is about search and points brand can be difficult. Difficulty are not sitting in the C-Suite.
Kantar intelligence. It needs to always Academics, journalists, and
provide that experience. should not be an excuse for
alexandre.momma@kantar.com sometimes the public can have
inaction, however. Product-
specific communications are an important voice. And within
necessary and linking them with the C-Suite, it is important
a masterbrand can be useful. to communicate to the individual
stakeholders, such as the
2. Sustain relationships technology head and the CEO,
in ways that meet their
Personal relationships between specific interests.
Some brands, like Google and sign up for Azure, you’re signing executives at the B2B company
Amazon, have always had a up for the cloud, but you’re and the customer company are
Brand experience direct relationship with their connected to the mothership, critical. To the customer, those
becomes more customer. Other brands, like Microsoft. Similarly, when you executives are the B2B brand.
one-to-one Microsoft and IBM, are evolving sign up for Microsoft 365 licenses, Brand health is intertwined with
in that direction. Those two you’re now directly connected people-to-people relationships.
companies used to sell through to Microsoft.
channels. As they increasingly 3. Go beyond the RFP
sell software as a service, they
have a direct relationship with People in procurement roles are
their customer. trying to make rational decisions
Erik Haroldson about the products and business
SVP, Client Leadership The brand experience now is partners they choose. But few
Kantar becoming very one-to-one. That decisions are totally rational.
erik.haroldson@kantar.com changes a lot of things. When you Beyond the detailed response
to a Request for Proposal, it is
important to build an attachment
based on trust and reliability,
what in the B2C world would be
called Brand Love.
This article was originally featured in our BrandZ Top 100 Most Valuable Global Brands 2019 report.
Read the full report here >>
9
Best of BrandZ 2019
03
Consumer-
centric dynamic
journeys and their
role in an ‘age of
experience’
Adhil Patel
Global Brand Director
Kantar
adhil.patel@kantar.com
10Best of BrandZ 2019
“Used wisely, a thorough
understanding of your
consumer-centric dynamic
journey can inform the
direction your brand goes”
Some say that we’ve entered into an age of experience. While most businesses still alongside each other, that
People don’t just want products anymore, they are make use of the old marketing leverage different combinations
Moments of influence funnel in some way, there have of moments, will lead to a more
looking for experiences. Expectations are now impacted
by experiences in other sometimes unrelated categories. been some attempts to update accurate mapping of behaviours.
it for a more modern and
If you have a wonderful in-store experience at Vida, why
connected world. The addition These moments can probably
wouldn’t you expect the same from a visit to a Standard
of recursive elements such as be defined in multiple ways, but
Bank branch? If your last trip to the hospital challenged the loyalty loop makes for a another important consideration
your idea of what service excellence could be, why wouldn’t more non-linear view of the is that no matter what lens you
you want to be treated with the same care and attention path to purchase choose to look at your customer
on your next flight on our national carrier? and beyond. through, these moments should
allow marketers to maintain
In order to better anticipate these One way to refocus the entire Moments of truth along these a certain amount of agency.
expectations and needs, brands organisation on the consumer journeys refer to tangible points Strong, positive lasting memories
“One way are increasingly putting the is to make their journeys of focus, starting with the critical can be created in these
to refocus consumer at the centre of their
worlds. They’re listening more,
more central to the business.
“Journeys” refers to all the paths
first moment at the shop shelf,
which may or may not lead to
moments, and if they’re linked
to your brand, they have the
the entire trying to understand them better,
and hoping to glean insights
that customers take, along which
they encounter your brand or
a sale, and moving on to the
nerve-wracking second moment
power to deepen loyalty, create
excitement and increase revenue.
organisation on that will help them improve the business. If all your stakeholders when the usage experience is
the consumer
experience they offer to their have a unified understanding of evaluated. Google updated Most of the moments in our lives
customers. the processes and motivations this thinking with the addition are fleeting. They don’t leave
is to make their Retailers like Woolworths and
that drive the markets they
operate in, they have a common
of the zero moment of truth
to acknowledge the increased
much of a trace in our memories.
So brands that manage to
journeys more Pick n Pay are utilising what they
know about their customers’
language with which your rallying
call can be written, and your
emphasis on pre-purchase
research, which tends to be online
stand out and generate truly
memorable experiences at
central to the purchasing behaviour to offer brand’s performance evaluated. and likely mobile in today’s highly multiple moments of influence
business”
relevant discounts and cross-sell connected world. will tend to reap the rewards.
offers. But truly consumer centric Used wisely, a thorough
understanding and appropriate understanding of your consumer- Even though at an aggregate
interventions remain sporadic at centric dynamic journey can level it’s tempting to think
best. We see a large gulf between inform the direction your brand of journeys as a typical path
what brands promise and what goes in and the mix of marketing taken, with specific moments
they actually deliver. We see them tools you leverage. in a specific order, care should
struggling to get the basics right, be taken to include a generous
with missed opportunities piled helping of dynamism. The ability
up to the ceiling. to place various microjourneys
11Best of BrandZ 2019
Practically speaking, a thorough Having a framework derived
mapping of the journeys present from a consumer-centric
Mapping the journeys in any given market will also understanding of journeys
provide an opportunity to would also provide a way for
conduct an audit of data assets the business to communicate
and other sources of insight more effectively internally
that might be available to the and externally its progress,
business. Drawing on the most needs, and intentions. Aligned
appropriate sources will improve thinking can and should lead to
the speed and accuracy of such aligned behaviour throughout
insights, while mapping them to the organisational ecosystem,
the journeys will make it easier to and ultimately to the desired
drive implementation through consumer experiences.
the business.
When various departments and
stakeholders are all working
off the same blueprints and
striving towards a unified goal,
everybody wins. Consumers
gain the experiences they crave,
employees get the satisfaction
that comes from knowing their
role in the bigger reality, and
shareholders go home happy
with increased ROI.
“ Brands that manage to
stand out and generate
truly memorable
experiences at multiple
moments of influence
will tend to reap the
rewards”
This article was originally featured in our BrandZ Top 30 Most Valuable South African Brands 2019 report.
Read the full report here >>
12Best of BrandZ 2019
04
Humanising
brands
It all starts with a purpose
The boundaries between
technology and humans are rapidly
blurring, changing the dynamics of
the relationships between people
and organisations. The rules won’t
magically change in the near
future, but how organisations
engage with customers will
continue to evolve dramatically.
Cristina Colombo
Chief Officer and Expertise Officer Italy
Insights Division, Kantar
cristina.colombo@kantar.com
13Best of BrandZ 2019
“Brands in the top third
for brand purpose
grew 212% in value”
The blurring of physical present themselves, what they Purposeful positioning is all that purpose is required to sustain
and digital boundaries, say, how they say it, and how about how your brand makes an enduring competitive edge
they behave. But there’s hope. a positive impact on people’s in consumer preference, talent
the ever-present nature of
Brands just need to learn to lives and the world they live in. acquisition and business growth.
communication, the rapid be more … human, because It must go beyond what you In the Marketing 2020 work
pace of technological brands with high emotional sell, transcending the product completed by Kantar Consulting,
change, the massive intelligence win. category but having a natural and first published in the
volumes of content connection to it. Harvard Business Review in
being produced, and the When brands behave more like 2014, interviews with 600
humans, in a more nuanced Unlike the corporate social CMOs and 15,000 consumers
misguided supremacy way, with appropriate intent, responsibility programs of worldwide identified “purposeful
of data over decorum demonstration of value, yesteryear, brand purpose today positioning” as a key
guiding interaction, make relevance, good timing and serves to empower organisations driver of marketing success,
digital marketing today emotion, they develop stronger through the concerted focus of behind only “big insights” and
frustrating for consumers bonds with consumers. efforts around a singular idea “total experience”.
To understand how to better that connects core capabilities to
and marketers.
engage with consumers, a wider social impact. The BrandZ™ Top 100 Most
businesses must start with Valuable Global Brands ranking
More importantly, it’s inefficient.
brand purpose. Think of Tesla’s focus on shows that of the 87 brands
Investment is wasted on ads
“Brands need to that are a nuisance, poorly
In the words of Keith Weed
accelerating the world’s transition
to sustainable transport, Dulux’s
evaluated in both 2008 and 2018,
brands in the top third for brand
re-examine their
articulated content that is viewed
(Unilever former Chief Marketing desire to add colour to people’s purpose grew 212% in value,
suspiciously, and misguided
and Communications Officer), lives. Less about “do-good” compared to 77% growth for
relationships customer service interactions that
are unfulfilling.
“Brand purpose is a deep and moralism, brand purpose today those in the lowest-scoring third.
with people” Business leaders face
intrinsic connection to the
brand and what it stands for.
acts as a corporate compass with
practical implications.
Purpose must sit at the core of
unprecedented complexity,
the brand, driving everything it When brands have a “why” to
constant disruption and
does. It cannot be an add-on or address, it focuses resources,
profound questions: customers
something that comes and goes guides decision-making,
and employees demand more
according to whim or budget. eliminates inefficiencies and
transparency and value from the
It’s this authenticity that inspires innovation. When done
brands and companies they do
consumers recognise and reward, right, it adds to the bottom line.
business with.
because today’s consumers,
especially Millennials, can smell The value of brand purpose to
Brands need to re-examine their
bullshit a mile away.”1 businesses today is no longer
relationships with people — what
questionable; it is quantifiable.
the brand stands for, how they
Research and experience show
14Best of BrandZ 2019
And according to Kantar Purpose 20201 report:
Top brands better deliver on all Looking to the future, almost Getting purpose right can be
three aspects of brand purpose two-thirds of Millennials a struggle for marketers, but
- functional, emotional and and centennials, who are when the bar for marketing
societal. fast becoming the economic success is set ever higher by our
engine, express a preference “search, skip and share” culture,
for “brands that have a purpose provides the basis for
point of view and stand for a compelling and consistent
something”. platform on which to build an
integrated set of content likely
to engage and motivate an
otherwise-uninterested audience.
1 Purpose 2020 report, visit: https://consulting.kantar.com/purpose2020/
This article was originally featured in our BrandZ Top 30 Most Valuable Italian Brands 2019 report.
15 Read the full report here >>Best of BrandZ 2019
05
Why attention
elasticity is the
biggest issue
facing marketers
As marketers, we’re taught that
we need to stand out.
We need to capture an audience’s
attention with messages across
multiple channels and guide
them down the funnel towards a
checkout, repeat purchases, and,
ultimately, loyalty. In today’s
terribly noisy ecosystem, that’s
easier said than done.
Jason Burby Stephen Dimarco
Chief Client Officer, North America Chief Digital Officer
Wunderman Thompson Insights Division, North America, Kantar
jason.burby@wunderman.com stephen.dimarco@kantar.com
16Best of BrandZ 2019
The universe is expanding, movement (note, these are in
so why can’t our minds?
1. While time is Studies conducted into
stark contrast to dopamine bursts
we receive from social media
finite, our brains can
“We know that time is finite;
neuroplasticity, our ability to apps). All serve to introduce
expand. create new neural pathways and new, disruptive experiences to
neurons, show that the human the brain, requiring it to learn
what we need to determine is
brain can indeed increase its and expand. The message for
capacity to process information. marketers? Effective experiential
This expansion has been linked marketing can increase the
whether consumer attention to activities like alternate day
fasting, engaging in art and
opportunity for attention likely
better than advertising.
is as well”
travel, and even new physical
Consumers are confronted with an endless number of stories
from around the world. Trade wars, gun violence, election
tampering, and impeachment are topics du jour. As marketers,
we add to this cavalcade of content, looking to hang a
marketing message on every consumer touchpoint we
can identify.
The current dynamic begs the win must play a more active role
question: do humans have an in more aspects of consumers’
infinite capacity for processing lives: in advertising, on the retail
this growing noise? We know shelf, and in our daily regimen.
that time is finite (at least as we Consciously. Prominently.
experience it); what we need to Relevantly.
determine is whether consumer
attention is as well. Let’s take a step back and put Recently, neuroscientists from pruned before consumers even
on our lab coats. To solve for this, MIT have pinpointed the notice them.
This is an existential issue facing we need to better understand 2. Distraction, not area in the brain that
marketers. If consumer attention the fundamental functioning time, is the arbiter of
“In order for is capped, then we need to treat of the human brain. And for attention
suppresses distracting and
irrelevant inputs.
How do advertisers make
the cut? If you think about the
brands to thrive it more preciously. Indeed, if there
is a threshold on consumers’
that, we can turn to the field of
neuroscience to gain insight Prior theory held that the
ad campaigns that have stuck in
your head over the years, they’re
in the future, ability to effectively process
information (pay attention),
into the tug-of-war between
infinite content and finite time
cortex served as the gateway
for attention, however, this new
almost always messages that hit
you where you weren’t expecting,
they can’t marketing will become a zero-
sum game in which some brands
with our attention span, an
innate process within our brains,
research shows that the thalamus ads that don’t feel like ads. Ads
simply exist as will be winners and the rest won’t as the middleman.
and the basil ganglia play
prominent roles in the circuitry.
that made you cry or laugh or
think about an old friend. Those
they have in register. Worse, brands vying
for attention and the sales that With our head mirrors on, let’s
According to Duje Tadin of the
University of Rochester, “Before
messages come from bold
creative efforts that push the
the past” follow may fall into the trap of
“advertising as interruption,”
apply the most relevant insights
from neuroscience studies to
attention gets to do its job,
there’s already a lot of pruning
edges of our understanding of
what an ad should be. Now, more
which is already eroding marketing and, specifically, of information.” Our brains are than ever, creativity makes you
consumer trust. advertising. Armed with the built to suppress non-critical memorable.
following three interdependent information, creating time for
Classifying this as an existential findings, we are hopeful us to think and react to what is
dilemma is not overreaching. In that marketers can resolve truly important. Despite our best
order for brands to thrive in the the very challenges that they efforts, most marketing messages
future, they can’t simply exist as are creating. and touchpoints are similarly
they have in the past. Brands that
17Best of BrandZ 2019
In media environments as Cognitive research has shown
cluttered as Times Square,
3. Small signals how can marketers break
that our brain capacity can
increase and our attention can
register more through and be noticed? expand, governed by alternating
prominently than Neuroscience has shown, perhaps processes where our brain shines
loud noises counterintuitively, that smaller the spotlight on one signal,
objects with subtle, distinct while quickly relegating others to
movements seize our attention the background. Without these
more than larger, recognisable processes, human beings would
objects. In fact, large objects are not be able to survive.
subconsciously relegated to the
background. This is a function of How we, as marketers, choose
predictive coding, which occurs to adapt with our new, modern
when a stimulus follows a pattern environment will determine which
that our brains are not able to brands survive. And, don’t forget,
predict, thus requiring additional as much as we need to leverage
attention to understand. In other science to help us build modern
words, newness takes precedence marketing strategies, these new
over loudness, focusing our brains concepts must work hand-in-
on tiny, important signals. For hand with what got us all here
“We still need to transform
marketers, this dynamic stresses in the first place. We still need
the importance of differentiation to transform our organisations
and salience in advertising, to bring out the best of modern
challenging the status quo, and
avoiding safe decisions.
creativity. Bold creative, tied to a
new understanding our audience, our organisations to
bring out the best
is the key to unlocking the
Neuroscience is paving the consumer attention we all seek.
way for a deeper human
of modern
understanding that can elevate
the relationship between
marketers and consumers.
creativity ”
This article was originally featured in our BrandZ Top 100 Most Valuable US Brands 2020 report.
Read the full report here >>
18Best of BrandZ 2019
06
Chinese brands
expand globally,
shift from value
to premium
Haier transforms its appliance business into an
ecosystem of products, services
Doreen Wang
Global Head of BrandZ
Kantar
doreen.wang@kantar.com
19Best of BrandZ 2019
“Having an ecosystem of
services that are fast is
becoming one of the big
drivers for consumers to stay
with the brand”
The journey from value brand E-commerce behemoth Alibaba, While many may not have groups with more diverse needs.
to premium is not an easy one. No. 7 in the Global ranking appreciated the convenience
But it’s one that many Chinese with $131.2 in brand value, and Connected and other benefits of the
While the ecosystem doesn’t
directly generate revenue through
companies are trying to make. smartphone maker Xiaomi (No. appliances and connected fridge, Haier and charging customers, it is proven
74, $19.8 billion) are among a competitive its brands, which include that it does generate greater
The imperative is not just to
appeal to local consumers
host of Chinese brands perceived advantage GE Appliances in the US, value potential to Haier and its
“Being but to build awareness and
as being innovative and cutting
edge by young consumers all over
are turning the connected
appliance into a competitive
brands, in turn making the brand
more valuable.
perceived as recommendation in every country
around the world, partly in
the world. advantage. The company has
built the delivery of Internet of By providing connectivity as
innovative and response to President’s Xi’s clarion
call to Chinese businesses to go
Haier (No. 89, $16.3 billion)
is another company making
Things type services into
its devices.
well as a premium ecosystem of
available partner services Haier
providing an global, but also highlighting
the changing culture among
the same journey. Since being is able to command a greater
enjoyable user Chinese businesses.
founded in 1984 it has expanded
via a combination of organic
For example, food and drinks
ordering from Haier fridges and
value potential, so that it can get
access to a higher ecosystem
experience are The success of these efforts can
growth and global brand
building to become the world’s
wine cabinets and the ecosystem
behind them will ensure that
revenue. In fact, having an
ecosystem of services that are
vital to the be seen in the BrandZ™ Top 100
Most Valuable Global Brands
largest provider of white goods.
It now has more than 80, 000
users never run out of milk or an fast is becoming one of the big
premium ”
essential ingredient for a recipe. drivers for consumers to stay with
2019 study, with Chinese brands employees and a global revenue The technology is open so that it the brand or indeed to invest
taking eight of the top 10 places in 2018 of around $35 billion, up can also connect to new services in it for the first time. The value
in the most valuable Asian brands 25% since 2015. such as Alexa. services provide to their lifestyle
ranking and 15 places in the has a positive impact on the
overall listing. Haier’s journey is something of a The construction of the overall brand experience.
legend among business leaders. ecosystem brand is designed
Limited brand awareness in Its premium positioning is now to build value interactions that
international markets, a lack of centered on two key factors: the go far beyond the traditional
trust due to historic quality issues, company’s ability to create an transactional relationship that
and a reluctance by Chinese Internet of Things (IoT) ecosystem consumers have with white goods
brands to invest in impactful and a management philosophy brands. It creates contact points
global advertising campaigns called Rendanheyi that’s that can help the company
may have put Chinese brands at designed to put customers and perceive and identify user needs.
a disadvantage in the past but employees (seen as entrepreneurs This enables Haier to not only
those issues are clearly being within the company) first. deliver better, more personalised
dealt with. services but also expand its user
base as it identifies and senses
20Best of BrandZ 2019
Global rollout,
Creative product design, easy
access to a premium lifestyle
The bottom line is that consumers
put higher value on the services
“The bottom line is that
local ecosystems
and existing heritage of the
brands in Haier’s portfolio is
and products that improve their
overall quality of life, often as consumers put higher
fuelling the global rollout of
local ecosystems so that the
part of a complex ecosystem.
We may be familiar with that in value on the services
and products that
advantage of connection can the technology space, but Haier
be applied beyond China and is bringing the same premium
the US. philosophy to white goods.
This approach not only ensures The ecosystem that Haier improve their overall
that Haier is less vulnerable
to price wars in consumer
goods, partly caused by online
is building will be key to its
continued brand journey and
future business growth.
quality of life”
marketplaces like Amazon and
Alibaba as well as changing
consumer behaviour.
It also increases Haier’s ability
to create brand value and a
“stickiness” that will see shoppers
continue to buy Haier products
and services for years to come. In
tracking the growth of the world’s
most valuable brands since 2006,
we’ve identified that factors such
as making people’s lives better;
behaving in a socially responsible
way; trust; being perceived as
innovative and providing an
enjoyable user experience are
vital to the premium positioning.
This article was originally featured in our BrandZ Top 100 Most Valuable Global Brands 2019 report.
Read the full report here >>
21Best of BrandZ 2019
07
Beauty & wellness
disruptors
22Best of BrandZ 2019
“Consumers no longer see
skincare products as a
category unto themselves,
but rather as a more holistic,
inside-out phenomenon”
Using consumer’s intuitive appeared everywhere, launching Skincare today is a dynamic, responsible, and produced by
feelings, social media, new products and taking over changing, and growing sector,
technology and AI to identify categories. But with so many new Background: filled with both established
companies that share their
values. They are asking not
and understand movers & brands cropping up, how can you skincare at a glance players and a large number merely whether products are
shakers in the wellness and consistently identify those with a of upstarts. effective, but how they reflect on
skincare market. real chance of disruption? them as people.
These brands are facing a public
The brands in BrandZ™ Top 100 To show how it can work, this year whose tastes are changing. Finally, consumers today are
Most Valuable US Brands ranking we elected to do a deep dive on
“Consumers
Beauty used to be an outwardly seeing skincare as experiential.
are well known and beloved in the skincare industry, one of the facing category. Skincare They seek out the experiences
today are their home country, but they are
not necessarily the ones keeping
most disruptive categories in the
market today.
products were things you put
on your face in order to look
and endorsements of others and
share their own as they lean on a
seeing skincare investors, analysts, and CMOs up
at night. Instead of the familiar
your best. Today, we are seeing
a new paradigm in which
wide variety of attributes to help
them purchase products that are
as experiential” faces, they are interested in the
dynamic disruptors, the small but
health, wellness, and beauty
are converging. Consumers no
uniquely personalised to them.
exciting new brands that may longer see skincare products
soon take the world by storm. as a category unto themselves,
They want to know which ones but rather as a more holistic,
are gaining momentum, what inside-out phenomenon. They
the real threats are, and how are increasingly concerned about
they can stay ahead of emerging what they put in and on their
trends. bodies. They want to know that
products are safe, organically
This is a relatively new set of sourced, and designed to make
concerns. Even just a few years them not merely look at but
ago, launching a successful feel good.
brand required significant
investment in infrastructure, What’s more, consumers are
distribution, channel partners, more concerned than ever about
and supply chains. Today all that the social impact of everything
has gone away. Thanks to the rise they purchase. Beauty has
of e-commerce and social media, become a “woke” category, in
the barriers to market entry which people want to ensure
have fallen precipitously. Young, that the products they buy are
hip, and nimble brands have ethically sourced, environmentally
23Best of BrandZ 2019
Above all, STAN-based The STAN process consists of Our analysis revealed some of the brands and their buzz is growing
methodology leverages social four steps:
Analysing beauty data to generate insights. Unmasking hottest brands in skincare for US
consumers right now. Consumers
fast, which signals a great
potential to increase sales.
and wellness - Create a universe. Gather the disruptors are highly engaged with these
disruptors with Social media is excellent for relevant conversations from
STAN: this because it offers a direct a variety of online sources,
Structured
connection between brands and including Twitter, Facebook, Unstructured
Supercharging human data data & interactive
consumers, and the degree of Instagram, blogs, tumblr, visualisations
intelligence through AI engagement around a brand comments, reviews, and forums.
shows how present it is in
people’s minds. - Structure the universe. Build a
bespoke code framework using Enrich &
Analysing these signals can natural language processing Unify Transform Analyse
Structure
help determine what people to understand the structure of
really think about brands and the conversation around these
how it’s changing over time, products and uncover topics
which enables us to understand and themes that may not have - Acure - Laura Mercier
consumer preferences and
uncover the key trends driving
been recognised in advance.
AI-powered collection - Aztec Secret - Mary Kay
change in the marketplace. - Segment. Map the disruptors of hot brands in
The enhanced data can help and take an analytical deep dive skincare wellness - Beautycounter - NARS
identify disruptive brands into each to identify wellness- - Botanics - Pacifica
far earlier than traditional related attributes.
methodologies. - Deciem - Perricone
- Analyse. Use analytics to
identify hidden trends and likely - Dr. Dennis Gross Skincare - Proactiv
opportunities for growth.
- Glow Recipe - Sisley
- Jack Black - Tarte
- Juice Beauty - Truskin
- Julep - Youth to the People
24Best of BrandZ 2019
These hot brands include Rise up and take a stand.
a combination of older
Key trends and newer brands, but the A good percentage of the hot
unifying theme is that they brands take clear stands on
all offer something distinctive social issues. Youth to the People
to engage the customer. announced its support for
They also share a number of LGBTQ+ needs with customised
characteristics: product labelling; Bliss was
The value services
accepted into PETA’s Beauty
Natural is the name of without Bunnies program; and
Tatcha partnered with Room to
provide to their
the game. Read. By identifying with and
Promoting a natural ingredient publicising key social issues, these
narrative is key to a brand’s
ability to attract consumers
brands defy norms and increase
conversational momentum. lifestyle has a
today. Trends in individual
ingredients come and go, but
naturalness is evergreen.
Lead with well
differentiated offers.
positive impact
Get personal and be Hot brands offer something
tangibly different. The market
authentic.
is heavily saturated with
Brands need to be authentic in the establishment and daily
their messaging. They can also newcomers, but those that
cultivate loyalty using tactics break free gather attention and
like tutorials, before-and-after customers.
experiences, and consumer-
driven conversation spaces.
25Best of BrandZ 2019
Select skincare brands to watch
Youth to the People positions Sephora locations and 1,500 A classic case of a product product line, nor has it made
itself as “superfood for built before its time, Aztec
Youth to the People the skin” with 100% vegan
stores globally.
Its authentic messaging and
Aztec Secret Secret capitalises on
any attempt at marketing in the
online world. Its outdated website
ingredients. Since its inception, minimalist packaging support its consumers’ recent trend even still offers a fax number
the brand has rapidly expanded customer centric voice. Look for toward natural, healthy face for placing orders! Its role as a
from a solely online to a this brand to shed its Disruptor masks as part of their holistic Disruptor is unique for its strict
significant brick-and-mortar status and push into the wellness. Since its launch in adherence to word-of-mouth and
presence in 800 North American Mainstream soon. 1986, Aztec Secret has made positive customer experiences
no substantive changes to its with the product.
Notable differentiators:
- Vegan 3x
the brand is expected
2x
the brand doubled
Notable differentiators:
- Indian
#1 #2
bestseller in bestseller in skincare
- Natural to triple sales its sales every year - Affordable face masks on products on
- Nutrient-rich $20 million in 2018 for the last few - Natural Amazon.com Amazon.com
- Minimalist - Wellness
83% 2x 154% 55%
growth in searches consumer discussion
for vegan skincare around vegan beauty in the US from 2013 expected for the
products has doubled to 2018 industry/sector in
in the past year in
in the past two years the next five years
the US
Self-defined as “clean recent acquisition by Shiseido. Glow Recipe is a key player pure private-label company.
compatible,” Drunk Elephant in the trend towards Korean
Drunk Elephant uses only biocompatible
Its “House of Drunk” pop-
ups are synonymous with the
Glow Recipe beauty (K-beauty) brands,
It has seen a 102% increase in
Instagram followers in the last
ingredients in its skincare brand’s new launches, and the with a focus on making skincare 12 months and 17% increase in
products. A boots-on-the- #barewithus hashtag has opened a fun lifestyle commitment by YouTube subscribers in the last
ground marketing strategy and the door to authentic consumer promoting “skintertainment six months. Look for this brand to
a trending online campaign conversations about clean skin. to educate the customer.” Its become mainstream.
pushed Drunk Elephant to Look for Drunk Elephant to success is due in part to its
become a household name in remain a Mainstream name as it excellent digital presence and
skincare circles, leading to its builds on its success. its successful transition to a
Notable differentiators:
#1
growing skincare
#1
selling skincare
Notable differentiators:
$30M $100M in expected sales
in 2018 sales
- Clean product at Sephora product at Sephora - Watermelon by 2020, a 233%
- (Bio)compatible in 2016 in 2016 - Korean skincare increase over 2018
- Minimalist - Natural
- Fragrance-free
41%
increase in sales of
29%
increase in sales
- Wellness
766% 154%
facial cleansers in of facial cleansers growth in US increase in the sales
the US in the past expected in the next K-beauty category of face masks in the
five years five years from 2012 to 2019 US the last five years
This article was originally featured in our BrandZ Top 100 Most Valuable US Brands 2020 report.
Read the full report here >>
26Best of BrandZ 2019
08
To change or not
to change is NOT
the question
Poonam Kumar
Regional Director. Brand Strategy. Asia Pacific
Insights Division, Kantar
poonam.kumar@kantar.com
27Best of BrandZ 2019
130
125
Maruti brand health 120
“With increased levels of 115
110
affluence and higher consumer
105
100
literacy, expectations of quality,
95
Premium Vitality Experience Love
design, performance, and
Average Brand = 100
2014 2016 2017 2018 Source: BrandZTM / Kantar
technology have changed“ Maruti’s brand health metrics
are well above market
average, rank ahead of all
competitor and has remained
so over the past four years. The
brand has stayed sharply salient,
competitors, and have often deeply meaningful, and clearly
shown improvement over time. differentiated.
Once upon a time – a few decades ago, to be exact – there was
Maruti’s brand power index is
a land where it was a privilege of only the choicest few to own
almost twice that of its nearest
a much desired car. Not only were cars priced out of reach,
but there was limited supply, and those models that were most
widely available were built using outdated, pre-WWII technology.
Enter Maruti – young, modern, vibrant, state of the art, and most
importantly, democratically priced. Maruti stood for the promise
and dream of India. Unbelievably irresistible – what else could
India do but fall in love?
Transforming both the market leader in what is now
automotive landscape and the a fiercely competitive and
“A brand that nation, Maruti won hearts by crowded market.
was proudly democratising optimism, hope,
and upward mobility for a market India has changed. The Indian
Indian, Maruti in its early throes of consumer
adolescence. Maruti allowed
consumer has changed. With
increased levels of affluence
gave India and Indians to dream of owning a
car, and then made many of
and higher consumer literacy,
expectations of quality, design,
all Indians the those dreams come true. The performance, and technology
wings to fly” Maruti brand symbolised a nation
moving forward, of families
have changed. Every single global
automotive brand is in India
coming out of the rain, and now. New models are launched
people going places they had here at the same time that they
Maruti meaningful
250
never been before. A brand that are launched globally. Even
was proudly Indian, Maruti gave Maruti’s prime target audience difference and 200
India and all Indians the wings – the first-time car owner – is a
to fly. different person now: younger, salience 150
trendier, more empowered, and
100
But as inspiring as this story is, individualistic. A scenario where
it isn’t the one we tell today. the oft-heard message “Disrupt 50
The transformation that Maruti or Die,” seems frighteningly close
brought about in the eighties and to home, especially as we’ve 0
nineties was remarkable, but the seen other brands of yesteryear Meaningful Difference Salience
more compelling story is that of struggle to defend their position
sustained growth and survival, of in the changed climate. Average Brand = 100
thriving and continuing to stay 2014 2016 2017 2018 Source: BrandZTM / Kantar
irresistible over four decades. And yet in this fierce battlefield,
Maruti, even today, through good Maruti continues to thrive.
times and bad, has stayed the
28Best of BrandZ 2019
So, what is the secret to Indian and to rejoice in the
Maruti’s success? Has Maruti participative progress.
been disruptive? Is it a The story stays the same but
different, renewed brand from is told in a way that resonates
the one we knew and loved for with the new generation of
so long? consumers, who are trendier,
more demanding, and more
Do we see a different Maruti individualistic.
from the inclusive, democratic
Everyman brand that promised Over coffee and conversation, the
progress without pretension, swanky new dealerships enable
and stood for the idea that the young couples customise their
promise of a good life can only be car, empowering them to choose
kept if no one is excluded? and to build. The process is
“Buying a car is
transparent, hassle-free, friendly,
The answer to these questions and free from intimidation.
the beginning is paradoxically both yes and
no. At first glance, the Maruti
The assurance of help “just next
door” is even truer today.
of a brand new portfolio today seems nothing
like the small, modest Maruti Maruti understands better than
journey of hope” 800 that rolled out almost 40 anyone else that the Indian
years ago. Today, there is a doesn’t buy just a car, but
wide range of models to choose looks for a reward, a validation
from, to meet a wide variety of for achievement and mobility.
needs and budgets. There are Buying a car is the beginning of a
swanky dealerships, beautiful brand-new journey of hope. And
designs, and technology and Maruti is right there, tailoring the
performance specs that match journey for its customers, just the
up to international standards. way they want it.
What hasn’t changed is
Maruti’s unique story. The story
that captured a billion hearts
continues to live on. A story
of a commitment to serve
with empathy and a lack of
pretension. A promise to remain
accessible and trustworthy, to
greet everyone who walks in with
a helping hand and a friendly
smile. A promise to stay proudly
This article was originally featured in our BrandZ Top 75 Most Valuable Indian Brands 2019 report.
Read the full report here >>
29You can also read
