How the biggest brands in the world work on branding
You might already know which brands are the biggest in the world. We walk past them, and we use them every day. We use their phones to manage our lives and their technology to answer our questions. We wear their clothes and drive their cars. Most of us can quickly list which brands we think have the highest value, but we can't as easily point out why.
Every year, Interbrand names the top 100 most valuable brands in the world, but how do they measure that, and what criteria do they base their decision on? What sets Nike and Disney apart, and why do they perform so well?
Strong brands achieve increased profitability and higher prices than their competitors, and there's often a difference between their perceived and functional value.
Apple sits at the top of Interbrand's list in 2022, above its competitors Microsoft and Samsung. When choosing a new phone, Android often has just as good, if not better, features than an iPhone. Still, a lot of us choose Apple based on the experience they give us as a customer.
We support them, recognise ourselves in them, and want to be associated with the brand's values and status. An iPhone might be more expensive than its other alternatives, but it's not the phone we're buying; it's the brand.
What Can Your Brand Do to Achieve Higher Value?
In addition to the formal requirements of being well established on a global level, being able to show solid results over time and having a sufficiently high level of brand awareness in specific markets, we have tried to determine the other criteria Interbrand have based their decisions on.
Don't Focus on Yourself, Focus on What You Represent
In the past, it has been important for brands to lay low, and focus only on their own business areas. Having too strong an opinion about what is happening in the world could easily cause severe damage to their reputation. Today's consumers expect more than this. The brands of today need to have a clear stance on what is important to the consumer. Companies today need an ethical framework that the entire organisation knows and works to maintain. This way, you create a closer relationship with your target audience.
Don’t Focus on Your Product, Focus on Why You Exist
A brand doesn't necessarily have to be built around a service or product. Today, you can create your brand based on a definite purpose and a fundamental set of values your target audience identifies with. You are no longer stuck with the first product or service you created. On the contrary, your customers trust you to solve their problems in several aspects of life. Believing that the competition only exists in your arena can be quite risky!
Immerse yourself in everything "purpose" in the book Point of Purpose, written by our CEO Bård.
Point of Purpose, written by Bård Annweiler.
Don’t Focus on Your Thoughts on Sustainability, Focus on What You Are Doing
Sustainability was essential among the criteria to reach the top of Interbrand's list. If you're not discussing sustainability in 2022, you risk seeming outdated. More and more brands wish to position themselves within sustainability, but the more essential subject is what you do for the planet. This is what your target audience wants to know. Positioning your brand within sustainability can quickly become a form of greenwashing if you do not focus on the measures you are taking to achieve your promises.
Don't focus on a slogan, have a clear point of view at all stages of the customer journey
Brands that do well in our time manage to balance business and integrity. By utilising their ethical framework and emphasising it at every point of the customer journey, you are building the very core of your brand's reputation. That way, integrity will be a driving force for your brand's growth. You can achieve this by consistently following the purpose and values you have set as the foundation of your brand. This is just as crucial for your employees as it is for your customers.
Don’t Protect Your Brand, Keep Up With the Times
In the many years that Interbrand has been writing this report, only 36 companies have made it through the entire race. Looking back at previous years, you'll read about brands that are no longer relevant and have failed to keep up with the times. Nokia and Yahoo were once the most valuable. Now they are no longer relevant.
Read how to create a brand identity in a changing world.
The criteria that once led to the top, might be your downfall in the years to come. You can no longer bury your head in the sand and only exist within your own industry, because business is no longer just business. So the big question becomes; what can you do to secure your brand for the future, and what criteria will be critical to increase the value of your brand in the years to come?
