OUR TAKE
ON THE GLOBAL
BRAND REPORT

The international branding consultancy agency Interbrand recently published its 24th list of the most valuable brands in the world. A very much anticipated annual report which also outlines the major current trends and the challenges ahead. Our brand strategist, Eliza looked into the report and shared 3 highlights with you.

“People don’t buy what you do; they buy why you do it. The goal is not to do business with everybody who needs what you have. The goal is to do business with people who believe what you believe”. In his 2009 book, titled “Start With Why”, author and inspirational speaker Simon Sinek foresaw how purpose would become essential to companies and brands. Throughout the years, this notion has become a buzzword in branding and marketing, with the question of what your brand stands for beyond profit becoming something of an obsession. In this year’s report, Interbrand points to Microsoft as being a leading example of a purpose-driven brand, with its motto: “To empower every person and organization on the planet to achieve more”.

At a closer look, this very broad purpose statement tells us three things: that Microsoft is a global brand with global ambitions, that it values success and productivity and that it sees itself as an enabler. And that’s not particularly surprising.

However, there is no indication of how this will be achieved. Even though the aspect of responsibility might be the most interesting in the context of purpose, it is not addressed... On purpose?

Interbrand’s choice is interesting with regard to the definition of purpose. Should it be seen purely rationally as an action-oriented definition of a brand's mission and values? Or should it (also) encompass the ‘positive contribution’ elements that stem from a broader social responsibility, ethics, integrity, sustainability etc.?

Treating purpose as something “bigger”, but not necessarily “higher”, can move us away from the zone of hypocrisy, greenwashing, false claims, and into a more constructive zone of inspiration. On the other hand, it can isolate the brand from a broader social context in constant demand for a clearer and more involved purpose. A crucial choice for companies that want to stay connected to the reality that goes far beyond business and sales of the product or services.

Connecting the brand to the business strategy, through relevant brand architecture, is the Holy Grail for many companies. According to Interbrand, German multinational Allianz is the master in this field. The numerous entities owned by the insurance, finance and asset management giant are now grouped under a single brand across different countries.

This successful approach capitalizes on the trust and reputation of the core brand, but can present certain risks if it is not managed correctly. Every experience, at every moment and in every business unit, must be aligned with the very essence of what the brand represents. And this must be crystal clear to everyone in-house. It is therefore essential to define the common denominator and keep it alive.

The only way forward – continuous transformation to perpetuate FREUDE Forever. When you think of Lacoste, the image of a crocodile immediately springs to mind. Or the colour red when you think of Coca-Cola. The list of these "distinctive brand assets" described by Jenni Romaniuk and Byron Sharp in their seminal work based on neuroscience, notably in their book “How brands grow”, could go on and on. During a panel discussion transcribed in the 2023 report, Oli Maltby, Interbrand's Creative Director, raised an interesting point about this "identification imperative" and the way in which the codes that make a brand recognizable should be constructed: “People try to build flexibility into the brand immediately, but I'm not sure if that's the best solution, because it's very difficult to introduce equity into more than one or two assets”.