The answer is that they all recorded substantial increases in brand value between 2007 and 2008 as measured by Millward Brown Optimor’s 2008 BrandZ Top 100 Most Powerful Brands Ranking.

Given that technology brands, including mobile providers, accounted for more than half the increase in the Top 100 valuation from 2007 to 2008 and have attracted a lot of the media’s attention, it is nice to see some "traditional" brands not only surviving but thriving. In fact, as we shall see, they share more in common than strong brand valuation.

McDonald’s, the world’s most powerful fast food brand, has eased its way into the Top Ten Most Powerful Brands at number 8, ahead of Nokia and just below Apple. Given that McDonald’s was considered to be in the doldrums a few years ago, this reflects a significant improvement in the company’s fortunes.

In 2003, McDonald’s introduced its "Plan to Win" to address lackluster business performance. Today a substantial amount of the company’s success at home rests in playing to its strengths of quality and value while enhancing its convenience with extended opening times and a cashless payment system. But the real driver behind the brand’s increase in value has been its success abroad. Last year the global giant reported the highest same-store sales growth in a decade in its Asia/Pacific, Middle East and Africa division as well as its third year of consistent global sales growth.

Speaking at the Association of National Advertisers "Master of Marketing" conference, McDonald’s CMO Mary Dillon explained the success as follows: "People’s need for what we have to offer, convenience and value, has grown…To truly connect with communities, you have to be local."

What is the key to McDonald’s success outside its home country? Part of the answer is that many people around the world enjoy what they see as an American dining experience. But another part of the answer lies in the fact that McDonald’s adapts its offer to each country’s needs. McDonald’s Indonesia offers McRice. McDonald’s India offers no beef products. In Israel, the chain offers kosher McShawarma; in Turkey, McTurco. McCafés originated in Australia, but are now found worldwide, and in Germany, they even outsell Starbucks. Now, McDonald’s plans to leverage that expertise back home with the introduction of upscale coffees designed to compete with Starbucks.

One might not think of toothpaste as an innovative market, but innovation is central to Colgate’s success in building strong relationships with consumers around the world. The company’s leading brand, Colgate Total, remains the premium brand in the lineup but it has been joined by a number of other variants. By drawing on ingredients from herbs to bee pollen to chlorophyll, Colgate has succeeded in tapping into local oral health traditions and beliefs to create a varied line of products which appeal to local needs and desires.

Colgate also exemplifies another facet of a successful brand: a strong and consistent positioning. While it adapts its messaging to speak to local understanding, the brand has invested strongly in advertising. In 2007, Colgate’s global ad budget is reported to have grown 11 percent to an all-time record. Colgate can now claim to be the toothpaste brand most recommended by dentists in 37 countries.

Innovation, clarity of positioning, and a willingness to adapt to local needs have helped Colgate move up to the number 71 spot on the Top 100 list. On the ranking of personal care products, Colgate is number three, behind Gillette and L’Oreal.

Last, but certainly not least, we have Tide, a new entrant to the Top 100 at number 82. Like McDonald’s and Colgate, Tide owes much of its success to innovation, consistent marketing support, and growth in developing markets. But those who manage the brand are not shy to admit that market research plays a strong role in guiding its investments. As reported on nextbillion.net, P&G uses consumer research to understand the needs of consumers in developing markets in order to make sure its products can meet those needs at an affordable price.

Nextbillion reports that in China "P&G found that very poor consumers were prepared to do the extra hand-washing needed to compensate for local water hardness, so in response P&G produced a version of its China Tide detergent without water softener," which could be made available at a more affordable price.

Big numbers and substantial growth attract attention, so it is not surprising that a lot of attention has focused on the technology brands in the BrandZ ranking. Google ranks number one at $87 billion. Apple’s valuation climbs 123 percent, lifting it nine places to number 7. And newcomer Blackberry jumps into the ranking at number 51. Tremendous brands though these are, they also benefit from booming interest in their product categories around the world. To my mind, while the numbers may sound less impressive, the performance of brands like McDonald’s, Colgate and Tide is even more compelling. They are a testimony to the fact that innovation and adaptation are the lifeblood of successful global brands.

So which brands do you find to be most impressive in the Top 100? Please share your thoughts.

 

This entry was posted on Monday, April 21st, 2008 at 3:30 pm and is filed under Brands, Research. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site. Print this Page