BrandSimple | BrandDigital: The Blog

Landor’s third annual list of the top ten Breakaway Brands was released in the November 2nd issue of Fortune magazine. The ranking is based on a comprehensive survey that measures brand momentum over a three year period in terms of financial gain and brand strength – how it’s appraised by consumers. As I looked over the newest top ten brands two things immediately came to mind. First, the brands on the list represented a broad spectrum of categories. TJMaxx to iPod, Stonyfield to Gatorade’s Propel, Costco to Barnes & Noble, with a few relative old-timers thrown in for very good measure. Second, the brands on the list all delivered especially well on the fifth in my top ten list of what it takes to be a strong brand. (You can see the other nine in my book, BrandSimple.) And that is, making sure that your brand strategy – what your brand represents to consumers – is in absolute alignment with your business strategy, or what you deliver. In other words, can you validate the brand experience?

While this has always been essential to brand success, it’s never been more important than in today’s totally transparent, digitally-enabled consumer environment. If you don’t keep your promise in today’s marketplace, you’ll get found out and taken down in an instant, whether by blog, text or brand-damning digital video. Should you have any doubt at all, take a look at the video of the sleeping Comcast repairman on YouTube, complete with background music by the EELS. Each of the companies on the top ten list of Breakaway Brands have the entire organization focused on delivering the brand experience just as consumers expect it to be delivered. The brand strategy is inseparable from the business strategy and it shows both in Wall Street satisfaction and customer satisfaction.

The second annual Brandz™ Top 100 Most Powerful Brands ranking was just published by Millward Brown Optimor and it’s an incredibly valuable read. I like it a lot for a few reasons. First, it’s got a rock-solid foundation having been built on consumer insight data from Data Monitor and financial data from Bloomberg. Second, it ranks both consumer and corporate brands as measured by their dollar value. And third, I like it because it confirms that what I talk about in BrandSimple is built on rock-solid branding principles. What’s not to like, as my relatives would say.

It came as no surprise to me that the top-ranking brands in the Brandz study are those based on crisp, clear, simple ideas –the underlying premise of BrandSimple. Google, for example, up 77% over last year, is based on the simple idea that the smartest kid in your class – the one with all the answers - is sitting right on your desktop. Apple, another winner, is up 55%. Ask anyone which brand is responsible for creating the coolest, user-friendliest technology and you’ll know why this is so. Target, whose simple idea is making cheap chic is up 88% versus last year. And Best Buy, up a whopping 113%, proves that the simple, “Geeky” idea of a retailer who helps consumers understand how to actually use the technology they purchase is pretty smart.

While all of the above brands are, indeed, based on simple ideas, these ideas are also relevantly different from what the competition promises. Another topic I address in BrandSimple and something reflected in a few of the brand rankings. For example, Dell promises to “make it my way.” Different, yes, but I’m not sure how relevant this is to consumers anymore, which is, perhaps, why Dell is down 24%. Intel, too, has lost value over last year – 26%. The brand, which once differentiated itself by representing faster, more powerful chip capacity, isn’t differentiating itself quite as well these days. “Intel Inside” seems to have strayed. Even Microsoft has lost over 10% in valuation, perhaps related to the too-little-too-late launch of Zune, or maybe just because it’s difficult to differentiate a brand on sheer size.

Back to the upside, however, it’s interesting to see that a number of the winning brands were those that leveraged major market trends effectively, demonstrating that brands are listening to what consumers have to say. Brands that delivered on the promise of social responsibility, especially with regard to environmental issues, did very well. BP, by addressing the climate change with alternative fuels, rose in valuation. Toyota, too, benefited from its environmental stance. Food brands that showed a concern for healthier eating also gained in value, most prominently McDonald’s. As the only brand ranking that combines consumer insight data with hard financial data, the Millward Brown Brandz study is a significant piece of data in and of itself. It’s an interesting and telling read for anyone who wants to know what makes some brands more powerful than others. It’s rock solid.

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