Brand Royalty—How the World’s Top 100 Brands Thrive & Survive

Innovation Brands

1 Adidas: the performance brand
Secrets of success
 Innovation. Studs for soccer boots; spikes for running shoes; nylon soles: these are just three of the innovations that helped build the Adidas brand.
 Performance. As an athlete himself, Adolph Dassler never neglected the performance of his products. He always looked for new ways to improve athletic standards through the use of Adidas equipment.
 Competition. Sportswear is as tribal as sport itself. Therefore it will never be a one-brand market. Adidas has stuck to its own gameplan and has thrived in competing with other brands such as Nike and Reebok.
 History. Unlike other sports brands, Adidas keeps its history alive through its Sports Heritage division. Far from making the brand seem stuffy and outdated, its ‘old-school’ ranges are considered the most fashionable among the hip-hop community.
 Key influences. Hip-hop stars like Run DMC and Missy Elliott, and sports stars such as David Beckham have helped give the brand street and sport credibility.

2 Sony: the pioneer brand
Secrets of success
 A distrust of market research. As a true pioneer, Sony has often been wary of market research. The Walkman, which was Akio Morita’s own invention, would certainly not have been invented if it had been dependent on market research. ‘I do not believe that any amount of market research could have told us that it would have been successful,’ said Morita, adding: ‘The public does not know what is possible. We do.’
 Innovation. Sony is the innovation brand and looks set to remain so in the future, with its new focus on ‘connectivity’ – the meeting of computing and home entertainment.
 A belief in buzz. When the Walkman first appeared in Japan, Sony workers walked the streets of their native Tokyo with Walkmans strapped to them, creating a valuable buzz. When the MiniDisc was launched in the UK, postcards advertising the product were placed in trendy bars and clubs.
 A belief in people. People are important to Sony. The human element is never neglected in its advertising (hence the recent slogan ‘Products for People’). It always finds a way to make technology accessible and friendly. This belief in people extends to the employees themselves. ‘Never break another man’s rice bowl’ was Morita’s motto. Morita also believed it was better to sacrifice a profit than lay off employees in a recession.

3 Hoover: the synonymous brand
Secrets of success
 It invented the category. The market for vacuum cleaners didn’t exist before Hoover. It is therefore the natural leader.
 Home improvement. New products only work if they offer a visible improvement on the way things were done before. The invention of the vacuum cleaner provided a clear step up from the broom.
 Try before you buy. Free 10-day trials in the early 20th century were key to Hoover’s market dominance in North America.

4 Xerox: the research brand
Secrets of success
 First mover. Xerox was the first in a new category when it launched its Xerox 914 copier.
 PR. As the first in a new category, it was able to generate valuable PR as the US media sought to document the technological breakthrough Xerox had made.
 Research. Through its research centre and university, Xerox remains at the cutting edge of technological research.
 Name. Xerox is a short, distinctive name that has become synonymous with the copiers it manufactures. As such, it is hard for competitors to eat into the company’s market share, even when it makes a few wrong turns.

5 American Express: the integrity brand
Secrets of success
 Foresight. Its introduction of traveller’s cheques and charge cards showed remarkable foresight, and has set the world on its long journey towards a cashless economy.
 The ability to evolve. From its origins as a freight company to its current ‘financial supermarket’ status, the American Express business has proved able to adapt to changing lines. So too has the brand: its recent move from an aspirational image to the mass market has strengthened its position as one of the world’s few super-brands.

6 L’Oréal: the individuality brand
Secrets of success
 Innovation. Great brands are launched by innovation, not advertising. That can come later.
 Individuality. L’Oréal uses different brands to attract different markets. It is unlike other global brands in that no ‘God complex’ seems to be at work, and L’Oréal shows no desire to create the world in its own, singular image.
 Personality. Because L’Oréal has different brands for different markets, it is not scared to exaggerate their personality. With other brands the tendency is to water their identity down as they expand.
 Consolidation. L’Oréal does not launch new brands just for the sake of it. It capitalizes on the brands it has already built up or acquired through carefully targeted markets.
 Nationality. Many brands play down their nationality for fear of alienating foreign markets. L’Oréal, on the other hand, exaggerates the national or regional identities and even places them next to the brand name. Think of ‘Maybelline New York’ or ‘L’Oréal Paris’, for instance.

7 Durex: the safe brand
Secrets of success
 Durability. Durability, reliability and excellence remain the brand’s guiding principles.
 Responsibility. For a product associated with safe sex and sexual health, responsibility should not be a brand add-on. Indeed, Durex has brought the issue of responsibility into the heart of its business, combining market and health research, and promoting awareness of sexually transmitted diseases.

8 Mercedes-Benz: the prestige brand
Secrets of success
 Innovation. Innovation is a natural quality you would expect from the company associated with the invention of the car.
 Price. Historically, its high prices have helped Mercedes-Benz become a prestigious brand.
 Prestige. People who drive a Mercedes-Benz like to feel superior. Whether they continue to feel superior when everyone can afford one remains to be seen.

9 Nescafé: the instant brand
Secrets of success
 Research. Seven years of intensive research went into the original Nescafé product.
 Innovation. That ‘I’ word again. Nescafé is yet another brand that shows that if you invent a market you are the natural leader within it.
 Added value. The various Nescafé brands fall roughly into the ‘popular’ and ‘prestige’ brackets, but both types of product are promoted in such a way that they add to, rather than diminish, the appeal of other Nescafé products.

10 Toyota: the big-picture brand
Secrets of success
 Mission. Toyota has switched from being a boring old car manufacturer to one with a broader mission, reflected by its partnership with Nissan to develop environmentally friendly vehicles.
 Innovation. Innovations such as ‘self-parking’ and hybrid cars have gained the company a lot of valuable PR, and positioned Toyota as a forward- thinking brand.



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Brand Royalty—How the World’s Top 100 Brands Thrive & Survive