Brand Desire 2013

CONTENTS 1

Welcome to Brand Desire

Category Analysis

2–3

2013 Highlights

28–33 Category Snapshots

4–5

Introduction

34–41 Deep Dive : Retail

6–15

Creating Brand Impact

42–49 Deep Dive : Handheld technology

50–53 Deep Dive : Sports apparel

Country Overviews

16–19 UK

54–55 Olympic Impact

20–23 USA

56–57 Study Design

24–27 Australia

58–59 Clear Impact

Brand Desire | Welcome to Brand Desire | 1

WELCOME TO BRAND DESIRE 2013 This is the third year of Clear’s study into what makes us love the brands we love.

This year we’ve taken our understanding of how brands create impact for businesses to a new level. We’ve done this by focusing not only on what makes brands desirable, but also on how Brand Desire is converted into commercial impact and category leadership.

We’ve taken our understanding of how brands create impact for businesses to a new level.

We’ve rigorously mined three years’ data collected from 60,000 consumers, covering more brands in more categories than ever before. For the first time, we’ve also incorporated external data sources such as sales performance and media spend into our analysis.

This has enabled us to uncover 3 simple and inspiring principles that explain how to create more impact with your brand: have an ambition that truly energises your business ensure you make a substantial difference to people’s lives create a personality that connects with the right people.

These principles will help you identify the best things to focus on to create more impact with your brand, as well as providing inspiration for how to do them well.

This is not about improving performance on some intangible metric, it’s about realising your brand’s potential to have a bigger impact on your business and on the wider world.

These pages give just an overview of our findings. For more information on how to create greater impact with your brand please visit brand-desire.com or get in touch.

8

KEY THEMES

WHEN DOES DOING GOOD MEAN DOING WELL?

IS FUNCTION THE NEW EMOTION?

WHO IS SETTING THE PACE IN INNOVATION – THE HUNTER OR THE PREY?

How the race for the top in technology is won.

How brands across categories win on functional attributes in 2013.

18

How brand personality can help challenger brands create commercial impact.

22

GETTING REAL (AGAIN)

THE CHANGING FACE OF LUXURY

How growing cynicism towards marketing messaging has made consumers fall back in love with authenticity and reassurance.

50

How brands that focus on performance in product development and sponsorship win the desirability race across categories.

How classic luxury brands can lose to mid-tier competitors as soon as they step back from exclusivity.

53 55

THE NEW DESIRE FOR PERFORMANCE

THE DIFFERENCE DIFFERENCE CAN MAKE

23

18

41

47

15

45

12

2013 Highlights

How brands on a mission to improve society can energise both their business and the world around them.

18

26

THE VALUE OF VALUE

39

How value consciousness amongst consumers has changed expectations of proposition and experience.

42

PRODUCT BRANDS STEP OUT OF THE SHADE

47

How many product brands outperform their parent brands on desirability and why.

Brand Desire | 2013 Highlights | 3

THE RACE FOR IMPACT 2013 Highlights

TOBACCO, BANKS AND … WHILST TECHNOLOGY, BUDGET AIRLINES CHARITY AND SNACK FINISH LAST IN THE BRANDS TAKE THE DESIRABILITY RACE… TOP SPOTS GIVES A RUN FOR ITS MONEY…

… WHILST TAKES NO. 1 SPOT IN US TECHNOLOGY BRANDS

MAY HAVE TAKEN ONE STEP TOO FAR INTO STREET STYLE…

… WHILST MANAGES TO MAKE IT COUNT

TAX TAKES ITS TOLL ON IN THE UK…

… WHILST COMES OUT CLEAN ACROSS THE GLOBE

RETAINS ITS TOP TEN SPOT IN AUSTRALIA…

… WHILST FALLS FAST IN DESIRABILITY DOWN UNDER

FALLS FAST DESPITE SPACE JUMP…

… WHILST FLIES HIGH ON PATRIOTIC PROMISE

DESIRABLE BRANDS PROVIDE STABILITY AND IMPACT For marketers, the world is becoming ever more complicated and demanding.

A growing number of factors, internal and external, are increasing complexity for brands and brand owners. This makes it incredibly hard to know where to focus, to reach clear decisions, and to achieve a positive impact with your brand.

In this ever changing environment desirable brands are incredibly valuable. They give businesses stability and decision makers direction. They provide predictability for investors and help simplify consumers’ lives.

THE DRIVERS OF BRAND DESIRE THINK Achieve recognition

FEEL Provoke emotion

ACT Motivate action

A growing number of factors are increasing complexity for brand owners

Desirable brands have a positive impact on businesses because they help secure future demand and command a premium, and on consumers because they simplify choice and establish a clear role in people’s lives.

Brands are the ‘user interface’ between business and people.

Our work on Brand Desire over the last three years has shown us that brands that connect with consumers’ heads, hearts and hands are more likely to drive action and purchase: an increase in Brand Desire of 1% can represent up to 1.5% sales growth2.

In this year’s study we have investigated the relationship between desirability and commercial performance more thoroughly than ever before, uncovering exactly how brand owners can best leverage the drivers of Brand Desire to impact business performance.

BRAND DESIRE’S IMPACT Sales growth for the most and least desirable brands in the UK 20122

15%

10%

5%

Most desirable brands

Least desirable brands3

Sources: 1) Euromonitor International 2012, 2) Basket of 30 brands from the top 100 most and least desirable brands for whom sales data is publically available, 3) excluding energy and financial services sector

Brand Desire | Introduction | 5

HOW TO CREATE IMPACT WITH YOUR BRAND Three years’ data from Brand Desire together with rigorous deep-dives into different categories’ market performance data tell us that any brand can manage its desirability.

CONNECTION

What does it mean?

A personality that makes people want to connect with your brand.

How do you do it?

Know who you want to connect with and develop a personality they can relate to.

But it takes a clear and focused strategy to do this in a way that creates real impact. We’ve been able to identify three simple principles that will not only make people desire your brand more, but can also enhance overall business performance.

The most desirable brands start from a purpose that energises the whole business to deliver the right kind of substance and establish the right kind of connections with the right people.

CONNECTION

Brand Desire | Creating Brand Impact | 7

ENERGY

What does it mean?

An ambition that’s genuine and viable, engaging and energising all stakeholders, and creating direction and headroom for growth.

How do you do it?

Identify the impact your business has on the world, and use it as a starting point to grow beyond the confines of your category.

ENERGY SUBSTANCE

What does it mean?

An offer that keeps on making a difference to people’s lives.

How do you do it?

Never stop re-evaluating the usefulness of what you offer to your audience’s changing everyday needs.

SUBSTANCE

ENERGY

(Inspiration + Authenticity) Have an ambition that energises your world.

tangible link to the realities of the business, so that it is credible and authentic.

Desirable brands impact commercial performance because they give the business the right energy. The kind of energy that inspires the whole organisation to keep progressing, do the right things across touchpoints, and motivate consumers to buy into not only product benefits or brand image but the business itself.

A brand has greater impact on business performance if it has energy - a tangible purpose with the power to inspire and drive the business forward, and the authenticity to deliver against it.

Energy creates headroom for growth, but it requires the business to be aligned behind one ambition for the positive impact it wants to make on the world.

Does your brand have the right energy to inspire your world and drive the desirability of your offer?

So energy is an idea to buy into that goes beyond the norms of the category and connects with consumers as people. But, importantly, it must also have a clear and

BRAND ENERGY

BDI

= Brand Desire index 2013

+ This brand makes great products

This describes the right fit between an ambition to do good and actually making good products (selected UK brands).

138 5 Bang & Olufsen

2212 Apple

166 Innocent

8 Disney 168

142 Sony

152 Dove

114 L’Oreal 105 Nivea

103 Bacardi

68 McDonalds 36 Ryanair

Virgin Atlantic

139 7 BMW 123 Google 11 124 Nike

107 Facebook 114 BA

92 M&Ms

151

149 Durex

144 Andrex

Green & Blacks 160 6 6 132 Body Shop

11 82 Method 11 80 TfL

28 RBS 47 EDF This brand is on a mission to improve society

+

Brand Desire | Creating Brand Impact | 9

A BRAND WASTING ENERGY ON THE WRONG THINGS

Sources: 1) Reckitt Benckiser.com; 2) Facebook, Inc. (FB), NasdaqGS; yahoo.finance.com; at time of writing this report, 24 May 2013

Facebook’s purpose is to ‘give people the power to share and make the world more open and connected’.

Yet this is at odds with why consumers sign up to the platform: to share information in ‘the privacy of their network’. In order to make money, the business is continually exploiting the trust of its users – yet trust is a key reason why people share information with others in the first place.

A BRAND WITH AN ENERGISING PURPOSE

Durex reframed the purpose of its category (‘the-bringingcouples-together-business’) with an ambition to help couples enjoy great sex.

They bring this idea to life in a humorous and singleminded way across TV, outdoor, social media, and PoS, literally connecting consumers with a clear link to their product offer.

This makes Durex the third most socially focused brand in our study and its products are as desirable as Aston Martin.

Durex has just the right energy for the business to push category conventions and motivate consumers to refresh their relationships.

Brand Desire 2012–13

+16% UK

+46% USA +ACTION

Market Share Number 1 condom brand in the world1

In the same way that money cannot buy friends, an intangible or insincere purpose cannot buy energy.

Brand Desire 2012–13 -FEEL

Connection -Users and talent

Durex Others

Share Price -25% since IPO2

SUBSTANCE

(Utility + Evolution)

Keep reinventing your offer in a meaningful way.

Great substance should be driven by, and reinforce, an energetic purpose.

Brands that innovate meaningfully are more desirable.

That might sound obvious, but although brands innovate constantly, 8 out of 10 product innovations and 47% of business start-ups fail within three years. Often this is because they don’t deliver the kind of innovation that makes a real difference to people’s lives.

A brand has greater impact on business performance if it has substance: continuously evolving to ensure it brings utility to people’s lives.

Is your brand experience delivering an enduring difference to people’s lives?

A lack of meaningful innovation can erode the substance of a brand over time, reducing its value to the business.

Conversely, a brand that continuously re-evaluates and enhances its utility in people’s lives, increases its value to the business.

BRAND SUBSTANCE 179 Dyson 212 Apple

This brand is innovative

This describes the right fit between constantly innovating and making a difference to people’s lives (selected UK brands).

102 Walkers

84 Tesco

156 IKEA 168 Disney 152 Samsung

151 Virgin Atlantic

195 Tiffany

92 Metro Bank

73 Burger King

60 HSBC

BDI

= Brand Desire index 2013

148 Xbox 164 Lego

164 Audi

89 Blackberry

138 Dettol 172 Calpol

56 Nokia

51 WH Smith BDI

155 Always

This brand makes a difference to people’s lives

39 Weight Watchers

Brand Desire | Creating Brand Impact | 11

A BRAND THAT HAS LOST ITS SUBSTANCE

Nokia’s ambition of ‘connecting people’ played a key role in building the category, making it the world’s number 1 mobile phone manufacturer, and the first phone most people owned.

Sources: 1) Ikea UK press office 02-11-2012; 2) Euromonitor International 2012 ; 3) Nielsen Ad Dynamix

A BRAND OF ENDURING SUBSTANCE

However, aside from fond memories, there is very little substance left. Nokia has lost its connection with consumers by remaining a synonym for mobile phones rather than smartphones. Despite its scale, network and brand strength, Nokia stood still and didn’t evolve fast enough to meet changing needs and to continue to deliver real utility.

IKEA ’s purpose to ‘create a better everyday life for the many’ puts meaningful innovation at the heart of the business.

Much more than just a value proposition, the IKEA concept is a business model innovation that gives the consumer a key role in product development: from self-assembly to ever more practical interpretations of their promise to help people make the most of their homes, however big or small. This idea is at the very substance of the brand and inspires continuous reinvention of both home design and their own retail space.

Giving people the opportunity to reinvent their homes at any budget delivers real substance and has paid off for the brand and the business.

Brand Desire 2012–13 +53% UK Number 1 desirable bricks and mortar retailer 2013 (UK)

This failure to innovate the substance of its brand in line with the changing nature of consumers’ mobile lives eroded the brand and the business. Those who have never used Nokia think better of it than those who have, and in October 2012 it exited the top five global smartphone brands.

UK Sales 2011–121 +6%

Brand Desire 2012–13 -23%

UK Sales 2010–112 -23%

Share Price One of the top 3 spenders3

CONNECTION

(Relevance + Clarity)

Develop a personality that humanises connections.

The world economy is powered by connections - connections between businesses and people.

Your brand gives your business a personality that connects it with people.

The clearer you are about who you are and the more coherent you are across touchpoints, the more memorable and desirable your brand will be.

People tend to build relationships with brands the same way they do with ‘real people’. Some people want friends that reflect who they are, whilst others feel drawn to people who they’d like to be.

Similarly, some people desire brands that help them be who they’d like to be, whilst others want brands that reflect who they are.

This study helps us to map the relevance of brands in consumers’ lives amongst six consumer typologies. These typologies can be matched by six corresponding brand typologies. Three quarters of consumers are attracted to their corresponding brand typology, irrespective of category.

So, as in real life, the clearer you are about who you are and the more coherent you are across touchpoints, the more memorable and desirable

your brand will be - as long as it’s a personality your audience wants to connect with.

In most categories brands share similar personality profiles. But as with human relationships the right difference can attract.

You can choose to stand for the same personality as the rest of the category but do it better, or you can adopt a totally different personality to the rest.

Both strategies can drive desirability, but what will drive most impact for your business depends on your relative market position (e.g. challenger vs. leader) and the maturity of the category (growing vs. saturated).

A brand has greater impact on business performance if it makes a strong connection via a clear and relevant personality that reflects the relationship consumers want to have with it.

So, does your brand have a clear personality that connects with the right people in the right way?

Brand Desire | Creating Brand Impact | 13

WHO ARE YOU CONNECTING WITH? Consumer typologies and corresponding brand typologies, UK. SOCIAL BUTTERFLIES desire brands that help them to be outgoing, optimistic and lend social currency. 20% of consumers in the study.

COOL HUNTERS like brands that help make them look/feel cool and in the know. 15% of consumers in the study.

BADGE WEARERS desire brands that help them feel unique and project confidence, success and sophistication. 18% of consumers in the study.

COOL BRANDS are risk-taking, laid-back, imaginative, sexy, exciting, modern, e.g. Ferrari, Axe, Benefit. 13% of brands in the UK.

SOCIABLE BRANDS are spontaneous, open-minded, sociable, fun, approachable, e.g. Pringles, Twitter, YouTube.

18% of brands in the UK.

STATUS BRANDS are outspoken, competitive, focused on image, independent, aggressive, sophisticated, e.g. Porsche, Apple. 15% of brands in the UK.

CO O L

53%

BA

SOC

S AT U ST

IAB

E/

LE

DG

“BRANDS HELP ME BE WHO I’D LIKE TO BE”

PL

R AY /

EA SSU RIN

G

47%

CT

C

PE

E AR

RES

“BRANDS HELP ME BE WHO I AM”

RESPONSIBLES desire sensible, serious brands that help promote wellbeing. Brands that share their own values.

12% of consumers in the study.

PLAY IT SAFES desire less risky, tried and trusted brands that provide reliability and reassurance. 23% of consumers in the study.

RESPECT COMMANDERS like to be in control and desire brands that reflect their own values: hard-working & successful.

12% of consumers in the study.

CARING BRANDS are careful, considerate, cooperative, focused on wellbeing, e.g. Unicef, WWF, Calpol. 12% of brands in the UK.

REASSURING BRANDS are reliable, practical, conservative, sensible, reassuring, realistic, reserved, e.g. Disprin, Scholl, Quaker.

16% of brands in the UK.

RESPECT BRANDS are hard -working, organised, assertive, traditional, wise, serious, e.g. FT, Red Cross, Rolls Royce. 18% of brands in the UK.

CONNECTION

(Relevance + Clarity)

We know from our past Brand Desire studies that 75% of consumers seek out a certain type of brand personality, irrespective of the category they are shopping in.

For example, if a consumer normally buys into ‘aspirational’ brands, but doesn’t find these in a particular category, they are forced to ‘connect’ with a brand typology they wouldn’t normally choose.

Across whole categories and in all markets we see brands missing out on opportunities to connect better with people.

Automotive

Energy

Could there be a caring car brand?

Could there be a caring, sociable, or cool energy brand?

CO O L

LE IAB

SOC

RES PE

PE

RE

LE IAB

SOC

RES

S

RE

U AT ST

S

CT

CT

CA

CO O L

CA

U AT ST

REAS

REAS

S U RING

S U RING

Financial Services

OTC Healthcare

Could there be a caring, sociable or cool financial services brand?

Could there be a sociable, statusdriven or cool OTC brand?

CO O L

IAB

SOC

PE

PE

RE

RES

RES

CT

CT

CA

LE IAB

SOC

S

S

RE

U AT ST

U AT ST

CA

CO O L

LE

REAS

S U RING

REAS

S U RING

BRAND TYPOLOGIES

BY INDUSTRY AND COUNTRY – UK – USA – AUS

Brand Impact | Clear | Brand Desire | 15

BRAND TYPOLOGIES AIRLINE INDUSTRY UK CO O L

S

SOC

IAB

LE

BRITISH AIRWAYS

British Airways rediscovered its calling by celebrating and aligning the business’ energy around the purpose ‘To Fly. To Serve’.

This provided the business with a clear focus on service excellence, to set itself apart from low cost competitors.

However, as reassurance and status are personality table stakes in this category, it takes more investment to cut through from the likes of an especially reassuring Lufthansa and status-driven Emirates.

U AT ST

CT

CA

PE

RE

RES

REAS

S U RING

Sources: 1) Nielsen ‘Ad Dynamix’ 2013; 2) BA Revenues ( British Airways PLC annual report 2012); 3) Virgin Revenue (Virgin Atlantic Press Release 16 May 2013)

TWO BRANDS CONNECTING IN DIFFERENT WAYS

Virgin Atlantic British Airways Other airlines

BA has ridden the ‘patriotic’ trend of 2012 well, but once the post-Olympics-hype has faded, what kind of reassurance and status can they provide that will help them stand out from the crowd in the long run? Could they redefine what these qualities should look like in the industry? How do they keep them fresh?

Brand Desire 2012–13 Number 4 airline

+57% UK +FEEL

VIRGIN ATLANTIC

A notoriously unprofitable industry - facing democratisation through the arrival of low cost airlines and consolidation of long-established traditional players - has increasingly lost differentiation.

Virgin Atlantic has managed to break away from category norms by pulling off a very cool, sexy, fun yet sophisticated personality.

Very popular with Cool Hunters and Status Seekers, they are constantly hitting the right buttons across touchpoints, whilst at the same time maintaining a viable value proposition.

Brand Desire 2012–13 Number 1 airline +28% UK +ACT

Share of Voice 2012–131 Share of Voice 2012–131 +22% -40%

Revenues 20122 +8%

Revenues 20123 +5%

BRAND DESIRE IN THE UK 2013

BIGGEST WINNERS AND LOSERS IN BRAND DESIRE TOP 100 +69%

+59%

+56%

+53%

+48%

-16%

-17%

-17% -20% -23%

MOST IMPACTFUL BRAND STORIES 2012/13

Winners

26

Visa’s investment in Olympics sponsorship seems to have paid off as the brand jumps in desirability.

45 22

M&S surges in desirability after celebrating ‘a summer to remember’, seeing an increase in food sales 1 despite a difficult retail climate.

% -13

Losers

Sky falls in desirability despite high visibility as team sponsor at the Tour de France.

Brand Desire | Country Overviews | UK | 17

Most...

Top 20 UK Desirable Brands

Cool Think

Source: 1) Marks and Spencer Group Plc Full Year Results 2012/13; 2) Whitbread PLC; Annual report and accounts 2012/13

Status DRIVEN

RespectFUL

ReassurING

CarING

Sociable

...BRAND

Feel

Act

BDI change

(from last year)

Apple

212

+1%

iPhone

207

+1%

ferrari

198

+34%

tIFFANY

195

+46%

MARMITE

190

+5%

ITUNES

186

-4%

AMAZON

184

+1%

IPAD

184

-23%

CADBURY

180

+26%

DYSON

179

+28%

TRIPADvisor

176

NEW

GHD

174

NEW

CALPOL

172

NEW

KITKAT

172

+22%

UNICEF

171

+20%

WWF

168

+6%

YOUTUBE

168

+2%

DISNEY

168

+23%

FAIRTRADE

167

-8%

tag heuer

166

+8%

70

Starbucks’ reaction to the tax scandal prevents a bigger effect on Brand Desire.

Costa surges ahead in Brand Desire and sales 2 (+22%).

3

-38

BDI

Even Google’s ‘glass’ innovation can’t prevent the brand’s desirability from falling, especially on ‘respect’ and ‘pride’.

-10

BBC loses desirability and respect in the wake of the Saville sex scandal.

35

UK: THE YEAR OF SUBSTANCE Whereas last year’s survey showed UK consumers responding to economic doom and gloom in a light-hearted (head in the sand?) way, 2012 was the year reality finally seemed to have kicked in for the Brits.

In this year of austerity we seem to have become more cynical about big promises – be they from politicians, organisations, or brands – and traded a fondness for distraction and extravagance with a search for substance.

Function is the new emotion We see brands soaring to the top of the Brand Desire table specifically because they over-deliver on rational drivers.

Consumers have become more discerning about just how useful innovation really is. These days things must work better – not just look better – in order to justify a price premium. Function has become the new emotion.

Consumers have become more discerning about just how useful innovation really is.

And so, with technology brands making up half of the country’s ten most desirable brands, we’re seeing the stakes escalating rapidly for technological innovation.

Meanwhile in sports apparel, performance has become more desirable than fashion.

BY ANNE IMBACH, DIRECTOR CLEAR EUROPE

We’re valuing value Within the trend towards more rational drivers of preference, we also see value brands becoming more desirable. From everyday consumption (e.g. retail) to holiday escapes, consumers are trading down. In times of lower disposable household income, affordable luxury has increased in desirability (Tiffany, Tag Heuer) and online shopping has become a much valued form of escapism.

And falling in love with our heritage This isn’t to say we’ve lost our emotional side. We’ve just been drawing inspiration from bigger things. From the Queen’s Jubilee, to the Olympics, to James Bond, a nation known for its understatement seems to have fallen back in love with, and been energised by, its heritage.

Since mid-2012 we’ve seen an increase in consumer confidence, with quintessentially British brands becoming more desirable, so long as they offer products that substantiate this newfound pride in our nation. Examples include M&S, Fred Perry, Dyson, Marmite, Aston Martin and British Airways.

So, where next?

Heritage may still be energising us now as we bask in the afterglow of 2012, but as the memories fade, the country’s brand owners will need something more substantial to create desire and impact in the long term.

So, how can we innovate in a way that draws on what we are great at today and turns it into meaningful substance for consumers and a tangible competitive advantage for British brands tomorrow?

Country Highlights | Clear | Brand Desire | 19

SUBSTANCE WITH STYLE

Benefit, a new entry to the UK brand list this year, is far and away the UK’s most desirable cosmetic brand with a Brand Desire Index of 162.

BUILDING SUBSTANCE FROM HERITAGE

This is a brand built on substance, remaining true to its mission to provide ‘Fake Its’ – great products that instantly solve women’s beauty dilemmas.

...another hellish year for the high street...

But it is a combination of substance and connection that has really allowed the Benefit brand to create commercial impact, with it’s playful personality and offbeat style winning it numerous celebrity endorsers and creating a strong connection with its target market.

However, during a year when M&S invited us to be ‘On your Marks…for a summer to remember’ the brand has seen a huge increase in desirability (+45%).

‘Instant beauty fixes with an extra dose of humour’ certainly appears to be a recipe for success. Benefit reported double digit revenue growth in all of its markets in 20121.

BRAND TYPOLOGIES TOTAL UK 2013

CUSTOMER TYPOLOGIES UK 2011 vs. 2013

CO O L

CO O L HUNTERS

B U T TS O CI E R AL FL I ES

IB L

LE IAB

SOC

RE

S ON

SP

CT

RE

PE

R CO M ME S P E A N CT DE

RES

P L AY I T SAFES

S

CA

W

ES

E DG ERS BA A R E

U AT ST

REAS

S U RING

Source: 1) LVMH 2012; Annual report

Although not an official Olympic sponsor, the campaign allowed M&S to make a light-hearted connection to the ‘summer of a lifetime’ for the British. It seems to have struck a chord with consumers, reinforcing the brands’ British heritage and connecting through a sense of fondness and nostalgia.

RS

2012 was another hellish year for the high street and M&S suffered alongside its peers, with poor sales performance in clothing and modest sales growth from its foods business.

As M&S continues its transformation plan, the key challenge will be how to translate this positive sentiment into commercial results. This will mean dialling up substance across the offer. Certainly one to watch for 2014!

BRAND DESIRE IN THE USA 2013

BIGGEST WINNERS AND LOSERS IN BRAND DESIRE TOP 100 +90%

+87%

+79%

+76%

+65%

-10%

-12%

-15% -16%

MOST IMPACTFUL BRAND STORIES 2012/13

Winners 89

%

Losers

Fiat successfully re-launches 500 in US.

-10

Apple apologises for Maps issue, fires key leaders Forstall and Browett.

90

Ikea push installation of solar energy panels.

-10 %

Brand Desire | Country Overviews | USA | 21

MOST...

TOP 20 DESIRABLE BRANDS

COOL

STATUS DRIVEN

RESPECTFUL

REASSURING

CARING

SOCIABLE

...BRAND

59

THINK

FEEL

ACT

BDI

BDI CHANGE

(from last year)

AMAZON

202

+18%

REESE’S

184

NEW

DISNEY

182

+27%

CHOBANI

165

NEW

BEN & JERRY

162

+20%

ROLEX

162

+32%

M&MS

160

+11%

COCA COLA

159

+56%

J&J

158

+58%

QUAKER

157

+18%

PINTEREST

156

NEW

LIPTON

152

+47%

GOOGLE

152

+3%

TRADER JOE’S

150

-5%

ETSY

150

NEW

BBC

150

NEW

MOET

149

+27%

NESTLE

149

+37%

AVEENO

148

+39%

DOVE

147

-6%

Red Cross responds to Hurricane Sandy.

9

Microsoft launches Surface and IE10 campaign.

-11

Crest

-25

Head and Shoulders

P&G brands suffer from lack of truly innovative new products.

USA: BABY STEPS FORWARD

BY MIKE WEBER, MD CLEAR USA

In last year’s study we saw that US consumers were looking for brands which they perceived as hard-working, solid and safe.

A tougher economic climate demanded consumers play life a little ‘safer’, making hard choices and sacrificing the ‘nicer things’ in life in exchange for more reliable products and services.

The tide appears to be turning. The top performers on this year’s Brand Desire list demonstrate that consumers are shifting from risk aversion to being on the front-foot, more assertive, optimistic and ready for what’s next.

Consumers are shifting from risk aversion to being on the frontfoot, more assertive, optimistic.

We’re not willing to sacrifice authenticity.

With the country taking a step forward, consumers are less about ‘now’ and more about ‘tomorrow’. They don’t just want to buy, they want to connect with and ‘join’ brand experiences that can provide long term enrichment. They’re searching for brands which have meaning, and which have developed authentic relationships with their consumers.

Millions of consumers have joined Etsy and its cause to connect homemade, locally produced crafts to the world. Despite being less than ten years old, Etsy is the #15 most desirable brand in the US. The total value of goods sold on Etsy is up 60% YOY, totaling ~$100 million in April 2013, and capturing 1.49 billion page views! As the community has significantly grown, the brand is working hard to maintain authenticity – ensuring sellers are truly offering homemade, locally and individually crafted goods.

We want brands to stand with us, not just behind us.

US consumers want brands that will be on their side – not just talking about making their lives better but with the energy of truly acting on it, all the time.

For example, Bank of America, Wells Fargo, HSBC, Citi – 4 of the 10 largest US banks – are all in the bottom 20 of Brand Desire. Why? These brands are not seen as considerate, cooperative, or approachable.

Despite the efforts the industry is making to give back to society, consumers do not see this come to life in their day-to-day brand experiences.

And, it’s alright to have a little fun.

With an election over and the job market stabilizing, the tension in the US seems to have eased a bit.

Now, enjoyment is back (in moderation).

Consumers appreciate lighter hearted brands to share the journey back to good times with.

For example, with the introduction of Marvel and LucasFilms to its portfolio, Disney has the substance to continue fueling the imagination of millions with meaningful content. The brand has stayed incredibly focused on doing what it takes to make sure people have wholesome enjoyment across all touch points and tastes.

So, where next?

Social without sacrifice is critical. People are the ultimate custodians of brands. Employees, customers, government officials – every interaction influences perceptions and has the potential to affect the ultimate success of a brand. Because of this, brands must learn to connect with the social-sphere, while not sacrificing their core energy and beliefs.

Brand Desire | Country Overviews | USA | 23

TIFFANY LOSES CONNECTION WITH ITS CORE TARGET

LE IAB

SOC

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RE

RES

REAS

S U RING

BRAND TYPOLOGIES USA 2013 CO O L

CO O L HUNTERS

LE IAB

SOC

B U T TS O CI E R AL FL I ES

SP

IB L S ON

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CT

P L AY I T SAFES

PE

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CA

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CONSUMER TYPOLOGIES USA 2013

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Accordingly, one of J&J’s star brands, Aveeno has increased Brand Desire significantly, with strong consumer perceptions as being ‘reassuring, considerate and focused on well being’.

USA 2012 USA 2013

U AT ST

The first corporate branding campaign in 10 years has deepened connections with consumers and brought to life how J&J is practicing its values every day.

CO O L

U AT ST

Demonstrating the ability of a desirable brand to bounce back when under pressure, the corporate brand has dealt with product recalls and lawsuits over the past couple years – but by responding in a values led way, the response has led to an increase in Brand Desire.

...the corporate brand has dealt with product recalls and lawsuits...

JOHNSON & JOHNSON TAKES MEASURES TO REGAIN SUBSTANCE

Tiffany has seen a significant decline in Brand Desire (-16%) in the US, following a strategy to build presence and volume, at the expense of premiumness and exclusivity.

The more accessible price point and proliferation of stores is alienating the affluent consumer who desires the authentic, exclusive experience of owning (and wearing) Tiffany.

In her mind, mainstream customers haven’t ‘earned the right’ to wear the brand.

BRAND DESIRE IN AUSTRALIA 2013

BIGGEST WINNERS AND LOSERS IN BRAND DESIRE TOP 100 +100%

+67%

+60%

+49%

+49%

-25% -29% -29% -35% -35%

MOST IMPACTFUL BRAND STORIES 2012/13

Winners

34

Nike creates strong bond with female runners via ‘She Runs The Night’

49

Qantas bounces back from trade disputes and mechanical failures.

%

Losers

Woolworth’s loses to Coles -55 who are winning the price war.

-49

Carman’s emotive story is no longer that differentiating to consumers.

Brand Desire | Country Overviews | Australia | 25

MOST...

TOP 20 DESIRABLE BRANDS

COOL

STATUS DRIVEN

RESPECTFUL

REASSURING

CARING

SOCIABLE

...BRAND

70

Aussie consumers share Omo’s opinion that ‘dirt is good’.

THINK

FEEL

ACT

BDI

BDI CHANGE

(from last year)

APPLE

198

+3%

WWF

179

-5%

RED CROSS

178

+67%

SONY

177

-3%

CADBURY

170

-1%

GOOGLE

166

-20%

VEGEMITE

165

-12%

NIKE

161

+34%

SKYPE

161

+6%

TIFFANY

157

0%

BMW

157

-3%

BONDS

155

NEW

DISNEY

153

+1%

TIM TAMS

153

NEW

TOYOTA

152

+20%

TASTE.COM

151

NEW

DOVE

148

+3%

ARNOTT’S

147

+31%

PRADA

146

+20%

CONTINENTAL

146

NEW

85

VB goes back to basics and wins.

100

Nurofen’s ‘Live Well’ campaign resonates with Aussies.

BY ALAN KING, MD CLEAR AUSTRALIA

Last year we identified that Aussie consumers desire brands that are a little bit like themselves – down to earth, optimistic and not taking things too seriously.

And Coles manages to package up its value message in a fun way that doesn’t come across as too aggressive in its ongoing battle with Woolies.

This year’s study confirms these findings.

Out of the six consumer typologies identified this year, Aussies are most likely to fall into the ‘Play It Safe’ category – a group that likes tried and tested products that give a sense of reliability and reassurance.

But why is it that there aren’t more ‘Cool Hunters’ or ‘Badge Wearers’ in Australia?

We have never been a nation of posers and this might be amplified by the economic chill that is beginning to reach our shores. As a result, reassurance and reliability are becoming even more important than appearance in terms of the products we are attracted to.

‘Play It Safes’ like brands that are practical, reliable, honest and sensible. They don’t like brands that are too serious, too image-focused or aggressive.

With the mining boom beginning to slow, you can feel a change in the air.

So it’s not surprising that brands which reflect these core Aussie values are rising to the top.

VB has returned to its core by raising its alcohol content and issuing an apology. The result: an 85% increase in brand desirability and sales going up 3% in the fourth quarter of 20121.

Qantas confronted its operational issues head on and engaged consumers with a direct and pragmatic campaign ‘You’re the reason we fly’.

Omo’s ‘dirt is good’ message is light-hearted, resonating with Aussie parents by focusing on the importance of outside play.

Now it’s certainly not all doom and gloom here! Australia’s economy is still going strong (we’ve had 21 years of steady economic growth2) and for a third year in a row, Australia has topped the OECD’s ‘Better Life Index’ which ranks developed nations on how satisfied residents are with their lives.3 But with the mining boom beginning to slow and consumer confidence dwindling, you can certainly feel a change in the air.

This trend might explain why this year consumers find brands which have a strong value or quality proposition more desirable, Toyota, Bonds, Arnott’s and Continental all make the top 20.

So, where next?

In a nation of ‘Play It Safes’ it is more important than ever for brands to reassure Aussies with a substance of quality and value, as well as creating strong connections and great brand experiences.

Sources: 1) TheAustralian.com.au , 24th May 2013 2) Reuters.com , 5th March 2012 3) Bloomberg.com, 28th May 2013

AUSTRALIA: A NATION OF ‘PLAY IT SAFES’

Country Highlights | Clear | Brand Desire | 27

VB REALISED THAT TAMPERING WITH THE CORE WAS A BAD MOVE

So in 2012 it launched its ‘You’re the reason we fly’ campaign – a huge undertaking involving multiple channels, changing the slogan on two of their planes

With this campaign they managed to create new brand energy by having a clear brand purpose and bringing their message to where the consumers were – in (and on!) the plane, in their homes via TV ads and at the airport, via posters with ‘reasons to fly with us’.

BRAND TYPOLOGIES AUSTRALIA 2013

CONSUMER TYPOLOGIES AUSTRALIA 2013

CO O L

CO O L HUNTERS

RE

CT

CA

PE

B U T TS O CI E R AL FL I LES

R CO M ME S P E A N CT DE

RES

S IB

ON

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SOC

S

E DG ERS BA A R E

U AT ST

W

ES

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In 2012 VB went back to its original recipe. Its purpose was restored and the brand once again was energised by what it had stood for since 1854 – ‘a hard earned thirst needs a big cold beer’. The result: consumers returning in their droves.

After the Qantas brand took a big hit due to industrial disputes and a range of mechanical failures in 2011 it needed to win consumers’ confidence and trust again.

to ‘Spirit of Australians’ and inviting consumers to upload their names in the hope of having them appear as one of hundreds emblazoned on the planes.

VB reduced the alcohol content of the beer to 4.6%... it backfired.

Consumers felt cheated.

‘You’re the reason we fly’ connects with travellers across multiple channels.

P L AY I T SAFES

In 2009 Carlton & United Breweries reduced the alcohol content of the beer to 4.6% in order to decrease excise tax and keep the price affordable for consumers.

But it backfired. Consumers felt cheated and stopped buying VB.

QANTAS RECONNECTS WITH CONSUMERS AND CREATES NEW BRAND ENERGY

RS

Changing the recipe impacted the brand’s substance and as a result the brand lost its ‘energy’.

CATEGORY SNAPSHOTS 2012-13

ALCOHOL USA +61%

+33%

Biggest winners and losers of Brand Desire in:

+28% -7% -21%

UK

+102%

AUS +49%

+78% +23% +32%

-23%

-25% -32% -34% -35%

-39%

Is the party over for prestige brands in alcohol?

Is it ‘back to basics’ for mixers?

Have ‘bubbles’ gone flat?

TRAVEL & LEISURE

MEDIA UK

UK +65%

+57%

+23%

+43% +14% +31% -17% -4% -27%

-16%

-38%

-27%

USA AUTOMOTIVE

USA

+62% +24%

+89%

+9% -15% +87%

AUS +49% -9%

+33% W hat is the role of brand in Travel and Leisure?

Was 2012/13 the year of patriotism?

I s there a role for a brand to connect with the ‘global citizen’ of the future?

USA

+6%

+27%

AUS

+3% +21%

+1%

+20%

-7% -20%

Is Google losing its substance?

-35%

W hat impact do brands have on the changing face of the media landscape?

W hat can other media brands learn from Disney?

UK

AUS +41%

+56%

+35% +54% +20% -3%

+50% -13%

-37% I s ‘value’ the new ‘value’ in automotive?

-16%

H ow can value brands differentiate on more than just price?

W hat can premium automotive brands do to sustain Brand Desire in the long run?

-47%

SNACKING AUS

UK +27% +5%

+95%

-12% I s the future of snacking healthy?

+61% -27% +42%

ow do some H brands manage to stretch categories without sacrificing Brand Desire?

-31% -10%

I s Brand Desire for ice cream melting in the UK?

-16% -17%

PERSONAL CARE UK

USA

+43%

+65%

+42% +59% +24% -26% -26%

What has made hair care brands desirable again?

+58% -6%

-28%

-11% -25%

Can ‘hygiene’ brands be truly desirable?

Is ‘reassurance’ the new ‘care’?

Brand Desire | Category Snapshots | 32

LUXURY USA +44%

UK +46%

+37%

+27%

+20%

+24%

-1%

-12%

-5% -25% -24% -27%

USA +37%

AUS +29% +12%

+32% +25% -16%

+4% -8% -8%

AUS +20%

-33% hy did classic luxury fashion lose W desirability in 2013?

-16% -18%

Is this the price for increased availability?

Is ‘affordability’ the new trend in luxury?

-19%

Brand Desire | Category Snapshots | 33

FINANCIAL SERVICES UK

USA

+105%

+59%

+45% +395%

-15% -16%

-16%

AUS +60%

+95%

+53% +76% +41%

-15%

-1% -32% -25% s financial markets slowly pick up A speed, are financial services brands finally recovering from their downturn in desirability?

What impact can brands have in this climate?

-39%

TOWARDS A NEW ERA OF SUBSTANCE IN RETAIL A global perspective

It has been a difficult year for shoppers and the high street alike. Across markets, we’ve seen more retail price wars and increasing numbers of empty shop fronts as consumer shopping habits evolve. In this tough and rapidly changing environment retail brands that stuck to the three core principles of brand impact had a clear competitive advantage.

What counted most in retail this year, was getting your substance right. For some retailers this was about moving beyond pure value propositions, evolving to provide consumers with a more inspiring shopping experience. For others, the focus was much more on winning desirability by having a stricter focus on value.

The truth is, both value and experience are fundamental elements of the substance of a retail brand. In the long run only retail brands that make a meaningful difference to both consumers’ shopping experience and their wallets will win.

At the same time, retail brands that have a truly energetic purpose and a very clear connection with their target audience seem to be able to get away with adapting the substance of their offer more slowly than their competitors.

So, whilst evolving your substance is critical to staying on top in a rapidly changing retail environment, without energy and connection it is not enough on its own to create lasting impact for a retail brand.

Divedesire : Retail | 35 35 DeepBrand Dive Desire | Clear| Deep | Brand

What counted most in retail this year was getting your substance right

BIGGEST WINNERS AND LOSERS BRAND DESIRE RETAIL

+61%

UK +80%

+61%

-4% -9% -25%

The truth is, both value and experience are fundamental elements of the substance of a retail brand.

USA +90% +42% +36%

-15%

-15%

AUS +48%

CATEGORY TYPOLOGY RETAIL 2013 UK, USA, AUS

+24%

CO O L

SOC

S

-16%

IAB

LE

U AT ST CT

CA

PE

RE

RES

-29%

S U RING

-55%

REAS

+16%

Brand Desire | Deep Dive : Retail | 37

THE GLOBAL RETAIL HERO: AMAZON

Amazon’s purpose to ‘become earth’s most customer-centric company’ has driven it to the top of the list of desirable retailers in every market this year, with its Brand Desire scores increasing by as much as 24%.

consistency and clarity of personality. They’ll need to juggle an ever more complex business model of content, suppliers and customer touch-points without losing connection with their core audience.

Amazon has had a huge impact on the retail landscape. The list of new services it has introduced is impressive, from product reviews to personalised offers to a one-click checkout process. But beyond this, by bringing its purpose to every part of the value chain, Amazon has become something much more than a retailer. From helping you find the right book, to enabling you to access your books electronically and on the go, to stretching the Kindle into a full scale publishing brand, Amazon is always seeking new ways to offer customers a better experience and more value for money. In the process it continues to reinvent its substance in line with changing consumer needs.

Brand Typologies 2013 CO O L

It’s about time ‘real world’ shops reevaluated their substance and the value of the experiences they’re offering consumers.

S

SOC

IAB

LE

U AT ST

CT

CA

PE

RE

RES

REAS

S U RING

Whilst Amazon may seem unstoppable, the key watchout for the brand now is

WHAT WILL DRIVE BRAND IMPACT IN RETAIL IN THE FUTURE?

Amazon, UK Amazon, USA Amazon, Australia

With blurring boundaries between on and offline, retailers need to keep an eye on consistency and clarity of who they are and who they want to connect with.

Retailers need to reframe the purpose of their category from ‘selling goods’ to a ‘service that makes customers’ lives better’ to make a bigger impact.

UK: EVOLVING DRIVERS OF VALUE IN RETAIL

TOP 20 DESIRABLE RETAIL BRANDS UK 2013

THINK

FEEL

ACT

BDI

BDI CHANGE

(from last year)

ITUNES

186

-4%

AMAZON

184

+1%

ASOS

165

NEW

EBAY

162

+59%

IKEA

156

+53%

M&S

138

+45%

WAITROSE

134

-9%

NET-A-PORTER

133

NEW

THE POST OFFICE

133

+14%

JOHN LEWIS

126

+11%

Followed by Waterstones, Wiggle, Morrisons, Sainsbury’s, Lidl

CO O L

U AT ST

IAB

SOC

CT

CA

PE

RE

RES

S U RING

Amazon John Lewis Sainsbury’s M&S Aldi Total retail

REAS

Will this connection drive continued success in a changing retail landscape?

S

Brits remain strongly connected with John Lewis.

A brand that stands out for respect, reassurance and status and that is hitting the right spot for Badge Wearers and Respect Commanders alike.

E-TAIL THERAPY

Retail: Bricks and mortar UK 2013

LE

A PERFECT FIT

With the demise of our high street shopping habit, and the doom and gloom of our finances, we found solace in online retail. The e-tail equation just seemed to stack up for us, peaking on being ‘fun’, ‘spontaneous’ and ‘modern’ where traditional high street brands were seen as ‘reassuring’ and ‘sensible’.

Is it time for ‘real world’ shops to re-evaluate the kind of value and experiences they’re offering?

Brand Desire | Deep Dive : Retail | 39

MULTIPLE VALUE

Of all supermarkets, Lidl saw the greatest increase in Brand Desire this year – a huge 80%.

Alongside Aldi, Lidl won with a pure value proposition, and as a result enjoyed huge affinity ‘a brand that matters to me’ and promoter scores ‘a brand I’d recommend to others’.

Making the most of what you’ve got

Sources: 1) Devin Wenig, eBay President of Global Marketplaces Feb 12

Last year we looked for ways of making the most of what we’ve got – whether that meant buying and selling second hand, or staying put and making the most of our homes. eBay, now 4th in our retail leader board, profited from this trend (UK is now its fastest growing market1), but so did IKEA, which generated record profits and improved its market share against the

context of a declining market for furniture. So for IKEA the irresistibility of its value equation, combined with an upgraded in-store experience, made it this year’s highest substance retail brand, and paid dividends for the business.

How can other retailers help people create value from what they’ve already got?

As seen on screen

There is much to be learned from asos’ success story: proving every critic wrong, they pioneered the accessible online fashion retail experience. Paired with a high convenience delivery service and daily fashion updates, they reinvented the substance of their industry and became the trend setter that left classic high street fast

fashion heroes like Zara and H&M behind. Having created the experience they are now bringing consumers value with a new focus on their own fashion labels.

How will asos’ range architecture work in synergy with its e-tailer brand?

Much of consumers’ increased desire for these brands came from pure, rational substance: the ability to offer shoppers innovative value solutions in the face of tightening household budgets – a point particularly borne out by the 129% growth in Lidl’s ‘Think’ score.

No substitute for substance

Two of the biggest losers this year were Argos and WH Smith, showing that brands without a unique and competitive point of difference will fail. If they’re to survive, both brands need to rapidly reappraise the purpose of their business, and communicate it clearly and simply to all stakeholders.

Will these classic retail models evolve their substance before it is too late?

USA: COMMUNITY RETAILING

TOP 10 DESIRABLE RETAIL BRANDS USA 2013

THINK

FEEL

ACT

BDI CHANGE

BDI

(from last year)

AMAZON

202

+18%

TRADER JOES

150

-5%

ETSY

150

NEW

IKEA

140

+90%

WHOLE FOODS

135

+36%

SEPHORA

126

-10%

EBAY

118

NEW

KOHL’S

112

NEW

MACY’S

108

NEW

TARGET

107

-15%

THE POWER OF THE MASSES

CO O L

LE IAB

SOC

CT

CA

PE

RE

RES

REAS

S U RING

Etsy Pinterest Total retail

Sources: 1) www.wired.com; 28th January, 2013

As they grow, will these brands be able to keep commercialising their communities without losing authenticity?

Retail: USA 2013

S

Pinterest has evolved its substance from purely sharing passions, to being

able to immediately purchase them via the community with ‘rich pins’. Both are great propositions that bring something much more sociable to the world of retail – allowing both brands to stand out from the category and connect with Social Butterflies and Responsible Citizens alike.

U AT ST

Pinterest and Etsy both started as communities to share your passions and have morphed their substance to become fullblown commercial retailers.

Etsy has demonstrated that the spirit of creativity and homemade products can thrive on a global shopping platform and saw an increase of 70% in sales1 and 10 million new users.

Brand Desire | Deep Dive : Retail | 41

Sources: 1) Sydney Morning, 14th February 2013 2) News.com.au, 28th February 2013

AUSTRALIA: THE VALUE OF VALUE

TOP 10 DESIRABLE RETAIL BRANDS AUSTRALIA 2013

THINK

But as in other markets, with growing competition it will take more to win than just ‘fast fashion’.

ACT

BDI

BDI CHANGE

(from last year)

IKEA

133

+16%

AMAZON

123

+24%

EBAY

120

-16%

BUNNINGS

113

-6%

DAVID JONES

99

+48%

WESTFIELD

78

-9%

TAB

72

NEW

MYER

70

-29%

COLES

62

-8%

HARVEY NORMAN

61

NEW

A SUBSTANTIAL BUSINESS MODEL

Zara managed to repeat their global market entry success story based on the innovativeness of their substance in Australia: a perfect mix of a European style, bang for your buck, and a great in-store experience, paired with a unique supply chain model that allows them to turn over new styles and re-invent their offer every 3 weeks.

FEEL

VALUE BEFORE RELATIONSHIPS

Is it time for Zara to reevaluate the energy behind their brand, and who they are connecting with?

It will take more to win than just ‘fast fashion’

Coles’ substance had a strong focus on value this year whereas Woolworths followed a much more emotional route (‘fresh food people’) putting their employees at the heart of their proposition. Both brands lost desirability, but Coles to a lesser extent and reported earnings growth of 15%1, compared to Woolies’ 6%2 When it comes to substance in groceries retail, is value more important than the relationship with the store manager?

THE BATTLE FOR SUBSTANCE IN HANDHELD TECHNOLOGY A global perspective

It was a year of change and challenge for technology brands. Categories only just launched were rapidly attacked, new platforms and operators were driving change, big corporate plays continued, and old supremacies were challenged.

Brands that upped their game on product innovation gained valuable ground this year. In many cases, individual product brands – from handsets to operating systems – outperformed their parent brands in terms of desirability.

With brands such as Samsung, Blackberry and Nokia gaining ground on the strength of improved substance, the ‘old guard’ is coming under increased pressure. Apple barely maintained its desirability in the UK and Australia and saw it slip back significantly in the US. And it’s not only established players that are challenging Apple’s supremacy. Google’s smart move to steal a march in the mini-tablet segment with the Nexus 7 may have prompted Apple to react and produce the iPad mini.

A highly unusual move for the normally confident company that had a big impact on consumers’ desire for iPad (-23% in the UK).

Apple will need to work hard to counter this, and to avoid having to respond tactically to competitor actions. Currently it is Apple’s masterbrand that drives its sub brands. But for others - most notably Samsung - it is the best product brand that’s driving growth.

Watch out next year for the potentially changing fortunes of Sony and Motorola, both via substantial product innovation this year with Xperia and Razr respectively.

Brand Desire Deep |Dive : Handheld technology 43 Deep| Dive Clear | Brand desire | 43

The ‘old guard’ is coming under increased pressure

BIGGEST WINNERS AND LOSERS BRAND DESIRE HANDHELD TECHNOLOGY

UK +192%

All of a sudden the rules of the game seem to have changed

+22% +8% -23% -31% -39%

USA +43%

CATEGORY TYPOLOGY HHT 2013 UK, USA, AUS

+35% +28%

-10%

-12%

CO O L U AT ST

AUS CT

CA

-12%

PE

RE

RES

-3%

+3%

S

SOC

IAB

LE

REAS

S U RING

-15%

Brand Desire | Deep Dive : Handheld technology | 45

WHAT WILL DRIVE BRAND IMPACT IN HANDHELD TECHNOLOGY IN THE FUTURE?

WHO IS SETTING THE PACE – THE HUNTER OR THE PREY?

For years, Apple wrote the agenda in mobile technology.

From its operating system to its devices’ ecosystem, it was the most desirable ‘tool’ to own.

But part of its success was driven by its status as a ‘challenger brand’, continually setting an agenda of simple, human substance in an incredibly complicated and impersonal technology world.

As market share increased, its battleground grew bigger and with this came all sorts of new challenges, from fighting to protect the IP and substance of its brand to managing unnaturally high expectations of innovation that can easily lead to disappointment.

And all of a sudden the rules of the game seem to have changed. With a whole new raft of serious challengers, not least Samsung’s Galaxy S3, Apple doesn’t seem quite as ‘challenging’ and ‘innovative’ as it once did.

Whilst the Apple brand still retains impressive energy, Nokia’s story shows us that fond memories can’t make up for falling substance forever.

As well as brilliant innovation, tomorrow’s winners will have a bigger idea beyond substance that energises their business and gives focus to portfolio decisions.

There is a clear need to build better connections with people – not just between them.

In a sector that is all about change and possibility, brand owners need to consider the complete ecosystem when thinking about innovating their substance, not just the handset.

UK: A YEAR OF CHANGE AND CHALLENGE

TOP 10 DESIRABLE HANDHELD TECHNOLOGY BRANDS UK 2013

THINK

FEEL

ACT

BDI

BDI CHANGE

(from last year)

APPLE

212

+1%

IPHONE

207

+1%

IPAD

184

-23%

SAMSUNG GALAXY

157

NEW

SAMSUNG

152

+22%

ANDROID

150

NEW

MICROSOFT

143

+8%

SONY

142

-7%

122

-39%

119

NEW

62

HTC SONY XPERIA

BETTER CONNECTED

CO O L

SOC

IAB

LE

S

CT

CA

PE

RE

RES

REAS

S U RING

Should handheld technology brands look beyond ‘cool’ and find other ways to connect with consumers?

HHT UK 2013

U AT ST

With ever growing product portfolios reaching out into adjacent categories, there is a risk of technology brands losing focus. The times when it was clear that Blackberry was for ‘busy business people’ and Apple for ‘creative people’ are long gone. With more and more products and ranges to manage, brands run the risk of losing clarity around ‘who they are’ and ‘who they are for’.

Apple Nokia Samsung Microsoft Blackberry Total handheld technology

With more and more products and ranges to manage, brands run the risk of losing clarity

Brand Desire | Deep Dive : Handheld technology | 47

A CONNECTION HERO

Will PlayStation 4 live up to the hype and help revive the brand’s fortunes?

HHT UK 2013 CO O L

E

BL

IA SOC

S

CT

CA

PE

RE

RES

S U RING

Can Samsung build on great substance by establishing a clear and energising purpose that creates even more headroom for growth?

U AT ST

The answer is that people are voting for the challenger brand, some even because it’s the ‘anti-Apple’. This could be a first indication that the Apple ecosystem comes first and foremost at the advantage of the manufacturer, but can leave consumers feeling ‘suffocated’. In a sector

that is all about change and advancements, loyalty may be better won in future by providing ‘freedom’.

REAS

In 2012 Samsung achieved a sizeable 22% Brand Desire increase. Importantly it is achieving this growth by making both a rational and emotional connection. It’s not immediately obvious, however, what’s driving its emotional engagement, the Samsung brand certainly doesn’t yet have the same kind of energy as Apple.

Is it any surprise that PlayStation is the best connected technology brand in the UK this year?

Playstation Vita got the power of gaming into the hands of their target audience, performing best on ‘Status’, ‘Sociability’ and ‘Coolness’ and connecting with Badge Wearers, Social Butterflies and Cool Hunters better than any other tech brand in the study.

THE NEXT BIG THING?

Playstation Total handheld technology

USA: A NEW BATTLE GROUND

TOP 10 DESIRABLE HANDHELD TECHNOLOGY BRANDS USA 2013

THINK

FEEL

ACT

BDI CHANGE

BDI

(from last year)

ANDROID

140

NEW

SAMSUNG

140

+28%

MICROSOFT

138

+9%

APPLE

135

-10%

SONY

135

-12%

HTC

132

+22%

HUAWEI

105

NEW

NOKIA

91

+35%

MOTOROLA

86

+17%

DELL

86

-8%

BLACKBERRY

84

+43%

THE SHOWDOWN: DEVICE VS. OPERATING SYSTEM

Google Vs. Samsung Samsung Google

$

Galaxy Launch 03.07

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Samsung Apple Android

REAS

Can technology brands really drive enduring substance by playing a bigger role in the entire ecosystem – software, service provider and device?

HHT USA 2013

S

Samsung’s reaction of pushing for greater separation from Android demonstrates the severity of the battle to gain credit for the consumer experience. So too does their plan to strike back by extending their substance with the launch of a high-end smart phone powered by Tizen – a new open source OS platform.

U AT ST

This year’s results demonstrate clearly that the operating system has emerged from an ‘ingredient brand’ to become a desirable brand in its own right.

Android in the US is equally as desirable as the Samsung brand – all built on the substance of its product whilst investing very little in brand building. Consumers instinctively know their phone is nothing without a dynamic operating system that allows seamless access to the world of applications.

03.12

Brand Desire | Deep Dive : Handheld technology | 49

AUSTRALIA: CONNECTION IS KEY

TOP 10 DESIRABLE HANDHELD TECHNOLOGY BRANDS AUSTRALIA 2013

THINK

FEEL

ACT

BDI CHANGE

BDI

(from last year)

APPLE

198

+3%

SONY

177

-3%

SAMSUNG

138

0%

MICROSOFT

137

-12%

VIRGIN MOBILE

112

NEW

II NET

101

NEW

NOKIA

85

-15%

TPG

75

NEW

OPTUS

60

+25%

VODAFONE

28

-55%

CONNECTING THE DOTS

LE IAB

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Samsung Apple Nokia Sony

REAS

So how can Australian mobile communications brands build better connections with people – not just between them?

CO O L

Four of Australia’s Top 10 most desirable brands are brands that have connectivity at their core and help bring people closer together to friends and family: Apple (#1), Sony (#4), Google (#6), Skype (#9) and even the

But some of them seem to have carved out a more differentiated personality profile than others. The service providers especially seem to have lost differentiation and connectivity with their audience.

HHT Australia 2013

S

Service providers seem to have lost connectivity

National Broadband Network is Australia’s 32nd most desirable brand – ahead of brands such as Mercedes and Coca Cola.

U AT ST

Australia is a large country – which is why Aussies love their mobile devices (Australia has one of the highest smartphone penetrations in the world). Smartphones keep people connected to friends and family who live interstate or overseas and keep them entertained on long journeys.

NO PERFORMANCE WITHOUT ENERGY IN SPORTS APPAREL A global perspective

Sports and sports apparel brands have a lot in common, the more energy you have, the better you are likely to perform.

Bold and confident brand purposes that connect with audiences on an attitudinal level and celebrate the potential of the individual have paid off. Those that put this competitive ambition at the heart of their brand win on energy and, consequently, desirability.

From Nike to Northface we see great brand purposes translated into very empowering communications.

But it is those brands that use their ambition to drive substance that have the biggest commercial impact. In every market we see functional apparel brands doing especially

well: Berghaus, Northface and Under Armour are heroing the functionality of their products and innovative materials, and seem to have driven brand respect and pride at the same time.

Equally, when it comes to driving desirability through sponsorship of sports events or athletes, it is authenticity that counts.

When it comes to sports, consumers admire sports people more than brands. Although a person can give a brand a face, a brand will not gain personality from a person that doesn’t ‘fit the kit’.

Brand Desire Dive| :Brand Sports apparel 51 Deep Dive| |Deep Clear desire | 51

Brands that put competitive ambition at their heart, win on desirability.

BIGGEST WINNERS AND LOSERS BRAND DESIRE SPORTS APPAREL

UK

+140%

It all starts with a bigger purpose that energises the business and consumers alike.

+69% +36% -16% -20%

USA +50%

+44%

CATEGORY TYPOLOGY SPORTS APPAREL 2013 UK, USA, AUS

+18%

CO O L U AT ST

S

SOC

IAB

LE

AUS

REAS

S U RING

-35%

CT

CA

PE

RE

RES

+34%

Brand Desire | Deep Dive : Sports apparel | 53

IN SPORTS, STAYING REAL IS MORE IMPACTFUL THAN LOOKING GOOD

Sports apparel brands have to ignite ambition and energy for the individual and the business to win the race.

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This is where Adidas falls behind, lacking energy that gives clear focus and helps ensure authenticity in what the brand is about.

Although extending their

Sports apparel UK 2013

U AT ST

So what is Nike getting right that Adidas isn’t? It all starts with a bigger purpose that energises the business and consumers alike. All product, comms, sponsorship, and CSR initiatives are focused on helping people to ‘unleash their inner athlete’. This energy has given direction to and redefined the substance of the category, providing more than just perfect kit, but products that help provide motivation to use them in the first place. Accordingly, even the ‘street’ shoe collection is inspired by the look of performance kit and therefore keeps sports performance at its heart.

offer may have yielded initial commercial results for the business, for consumers the brand has clearly taken one step too far into street wear, losing track of why it exists in the first place: to provide confidence through performance and not through looks.

Nike is one of the most desirable brands in sports apparel and left their initial peer Adidas far behind last year.

WHAT WILL DRIVE BRAND IMPACT IN SPORTS APPAREL IN THE FUTURE?

Adidas Nike Total sports apparel

Function beats fashion in product innovation.

Sponsorship is most impactful for sports apparel brands if there is a clear personality fit between the brand and the athlete.

OLYMPIC IMPACT OLYMPIC SPONSORS AND PARTNERS BIGGEST WINNERS AND LOSERS

UK

The Olympic & Paralympic Games are the world’s premier sports entertainment product.

Over a four-week period the Games attracts billions of global viewers and brands will spend anything up to US$100million1 to be associated with them. Brand Desire shows that global exposure for your brand does not necessarily equate to increased desirability. Like the athletes competing at the games, there were winners and losers.

+70%

CELEBRATING A NATION +57%

+54% +30% +26%

-6%

-1% -16% -18% -21%

Perhaps unsurprisingly, among the winners were the homegrown British sponsors.

As Team GB accumulated its golds, the British brands getting behind it notched up their desirability. British Airways, Lloyds TSB, BP, BT, Cadbury, Sainsbury’s and Thomas Cook all saw gains in their overall desirability, with increases across the board on the ‘Feel’ metric, neatly demonstrating that those brands energising the British public were gratefully rewarded with brand love.

FAST FOOD FALLS FLAT

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Sources: 1) The Guardian; 19 July 2012; 2) Marketing, 15.February 2012

PIGGYBACK BRANDING

Olympic sponsorship

S

Equally, both brands celebrated the sociability of the games, which considering the gravity of having the world’s focus on Team GB’s performance, didn’t fully

connect with UK consumers.

Those brands that stood for reassurance, respect and status provided more relevance to UK sports fans than those that ‘kept the party going’.

U AT ST

Where technology is a good suitor to elite sport, fast food and sugary drinks are not.

McDonald’s and Coca-Cola, two Worldwide Olympic Partners, saw Brand Desire drop. The contributions of both are significant.

McDonald’s helped recruit and train the 70,000 Games Makers that ensured the smooth delivery of the show, whilst Coca-Cola refreshed over 6,000,000 spectators and athletes. But despite their best efforts to aid the running of the show, all consumers see is a brand whose substance is at odds with sports performance.

Visa Samsung McDonalds Coca Cola British Airways

HARDER, BETTER, FASTER, STRONGER

There are obvious parallels between elite sport and technology with their shared values of speed, efficiency and performance, the hunt for improvement and innovation, and technology as a facilitator in showcasing great sports performance. It is logical then that Panasonic, Samsung

and Visa used the greatest show on earth as a platform to demonstrate their latest products and make a real difference to consumer’s lives.

All three brands were winners at the games and saw at least a 15% increase in their Brand Desire score this year.

The spoils of the Olympics & Paralympics were not just divided between the athletes and sponsors. In the run up to the games, non-sponsor Nike launched a campaign combining British Olympians Mo Farah and Paula Radcliffe with amateur athletes under the banner #MAKEITCOUNT. By connecting to the attitudes of their target audience and building on Nike’s energising brand purpose, the campaign dominated online channels.2 By comparison, Adidas’ Take the Stage campaign – more resembling an advert for Team GB – should have delivered more for the US$63million privilege of official sponsorship. Nike saw a 25% Brand Desire increase this year to Adidas’ 16% decrease.

So, in the run up to the world’s next big sports events in Brazil, what does it take for brands to really make sponsorship count?

STUDY DESIGN Over the last 3 years Clear has spoken to almost 60,000 people in 7 countries about 900+ brands to identify and understand what makes a brand desirable.

In 2013 we focused on 3 core markets UK, USA and Australia.

Brand Desire considers 9 individual metrics measuring consumers’ rational, emotional and behavioural responses to a brand.

In the UK 12,000 respondents shared their point of view on more than 450 brands they were familiar with, covering a broad range of categories with special deep-dives into selected categories (Beer, Snacking, Sports Apparel, Travel & Leisure, Handheld Technology, Retail, OTC healthcare).

THINK • A brand I respect • A brand I think of as great • I wouldn’t consider any alternative

In the USA we spoke to 4,600 consumers about 245 brands and in Australia to 3,700 consumers about almost 200 brands they were familiar with.

FEEL • A brand I am proud to be seen with • A brand I feel attracted to • A brand that matters to me ACT • A brand I am interested to hear more about • A brand I like to talk about • A brand I would love to use in the future The Brand Deisre Index is based on average performance scores across these measures for each market over the last 3 years.

This year we have started to complement our findings with external data on market performance (source: Euromonitor International) as well as share of voice (source: Nielsen ‘Ad Dynamix‘) to get a better understanding of the commercial impact of changes in brand desirability, and an indication of what it costs brands to achieve this.

Also new this year are some additional equity measures within the category deep-dives ranging from the “innovativeness” of a brand to its “mission to improve society”.

By evaluating performance on these against both the Brand Desire metrics and sales performance data, we were able to identify the measures of Energy, Substance and Connection. These key levers explain how brands create greater Brand Desire and how they translate desirability into improved business performance.

Brand Desire | Study Design | 57

KEY BRAND EQUITY MEASURES CONNECTION • What is the personality of your brand?

(6 Brand Typologies as clusters of 44 bipolar personality traits)

ENERGY • Is your brand “on a mission to improve society”?

• Does your brand “make great products/services”?

• Who are you connecting with best?

(6 Consumer Typologies based on the relationship they want to have with a brand)

ENERGY

BRAND IMPACT CONNECTION

SUBSTANCE

SUBSTANCE • Is your brand “innovative, regularly improves or introduces new products/services”?

• Does your brand “make a difference to people’s lives”?

CLEAR IMPACT Our 2013 study shows us more clearly than ever the fundamental importance of brands to business.

Creating energy through purposeful enterprise, building substance with propositions and experiences that are truly valuable, and forging connections through the right interactions with the right audiences, a desirable brand impacts every part of a great business.

Brand Desire is a tool to help us ask the right questions.

Clear is here to help answer them.

But achieving impact from your brand requires asking the right questions, making the right choices, and taking the right action. None of this is easy.

Our company is founded on a simple belief that when businesses focus on the right things and work effectively to make them happen, they have the power to achieve extraordinary success and create extraordinary value, for their customers, their teams and leadership, shareholders, suppliers and for the world at large.

Through rigorous business, consumer and market insight, clear commercial thinking, simple strategic focus, and inspiring creativity we build energy, substance and connection for our clients’ brands, creating a clear impact on their businesses.

To find out more about how we can help you create more impact from your brand please visit brand-desire.com and get in touch.

Brand Desire | Clear Impact | 59

WE HELP OUR CLIENTS TRANSLATE BRAND DESIRE INTO COMMERCIAL IMPACT Here’s how we do it:

Establishing the right kind of connections with the right people.

An engaging brand ambition that provides direction and headroom for growth.

An offer that evolves and keeps making a difference to people’s lives.

Insight & market analysis

Brand purpose

Portfolio strategy

Consumer segmentation & growth mapping

Brand engagement

Brand architecture

Brand experience design

Innovation strategy (business model, service, product, offer)

rand positioning & B personality Activation strategy

ENERGY

BRAND IMPACT

CONNECTION

SUBSTANCE

Clear is a global marketing strategy business. We are part of the M&C Saatchi Group.

Brand Desire helps us create more impact for our clients.

Our work creates impact across the globe, but you can find us in our offices in London, New York, Singapore and Sydney.

Clear London +44 (0) 20 8439 8280 jamesh@clear-ideas.com

Clear New York +1 917 287 4083 mike@clear-ideas.com

Clear Australia +61 2 9356 9393 alank@clear-ideas.com

Clear Singapore +65 6697 0246 charlottew@clear-ideas.com