No Shock and Awe in Interbrand’s Top 100

I had hoped to go out with a preview of Interbrand’s top global brands ranking for 2009, but didn’t make it in time. That’s too bad as I would have been right on the money in many of my predictions and you would have bowed before me in true Wayne and Garth fashion: “We’re not worthy! We’re not worthy!”

But then again, maybe not. After all, who wouldn’t have been able to predict what we see in this year’s list? I didn’t see much in the way of surprises.

Coca-Cola Holds No. 1 Crown
Coca-Cola is still the king of the brand mountain. That’s ten years running for the behemoth brand. This isn’t by chance. Coca-Cola doesn’t rest on its laurels. In 2008, the company launched some 700 new products and continued to aggressively market and assert its relevance in the world.

Financials, Yawn, Fall
No mouths dropped to the floor with the tumbling taken by financial sector brands. As expected American International Group (AIG) dropped to… well… oblivion! That’s a big fall from No. 54 in last year’s list. Merrill Lynch, formerly No. 34, and ING, formerly No. 86, also dropped off the board.

Google in Next Year’s Top 5?
Google continued its upward trajectory. I felt Google would crack the top 10, which it did. The question in my mind is whether Google will be a top 5 brand in 2010. Chances are good. This is a company that’s in full growth mode with the innovation pedal pushed to the floor.

No Rot in Apple
You won’t find any rot in Apple, which jumped to No. 20 from No. 24. Though Mac sales have fallen, the brand asserted its relevance in record iPod sales and all-time high market share for Mac OS software. This is a brand with iconic status in its category and I expect to see Apple’s brand worth rise even higher, especially with the legendary Steve Jobs back full-time at the helm.

Sony: Free Fallin’?
Sony, by contrast, may be poised for a free fall in the years ahead. Though still ranked in the top 30 at No. 29, Sony is starting to lag behind its competitors in all of the categories where it once dominated. That kind of erosion is significant. Sony was once a speck on the horizon for wannabe competitors. Now, competitors actually have Sony in their rear view mirror. Sony needs to step it up on the innovation front to retake a commanding lead.

Bounce Back for Harley?
Another brand on the decline is Harley-Davidson, which dropped to No. 73 from No. 50. The economy isn’t on the company’s side and poor sales in the U.S. have hurt badly. However, we’re still talking about an iconic brand here… and I believe we’ll see the hog bounce back when turbulent economic waters calm.

$55.5 Billion: Poof, Gone Just like That!
We saw the overall value of Interbrand’s top 100 global brands fall for the first time, by $55.5 billion. That’s a four percent drop. With the world’s economic engine sputtering, that’s no shocker. I don’t know if we’ll see this value recaptured by 2010, do you? I hope so though!

Be sure to stop by Interbrand’s best global brands page where you can download the full report and see the rankings and analysis for yourself.

I’d appreciate hearing your take on Interbrand’s top brands list. Did any of the rankings surprise you? What trends are we seeing? What lessons can we learn from any of the brands increasing or decreasing in value?

Microsoft’s Positioning vs. Apple: Brand Champ or Chump?

Some of you may already be aware of the latest mini drama between rivals Apple and Microsoft.

The controversy stems from Microsoft’s “Laptop Hunters” ads, which seek to drive home a single idea: that a PC is cheaper than a Mac.

A PC Costs Less… Duh!
I already knew that… I think most of us knew that!

The “laptop hunters” campaign is one in which Microsoft gives consumers $1,000 to buy a laptop. With Macs starting at well over $1,000, the result is predictable: they buy a PC every time and even have some cash left over.

Ads Get Under Apple’s Skin?
Microsoft believes the ads are having an impact. So much so, in fact, that the company’s chief operating officer seemed to wet his pants with joy upon learning that Apple’s legal eagles had asked Microsoft to stop running the spots. He was so happy about the development that he shared it publicly as evidence the campaign is working.

Oh no, COO!
But there’s more to the story. Seems as if Apple simply asked Microsoft to stop running spots that had not been changed to reflect accurate pricing on Mac Books.

To me, Apple’s request is fair and reasonable. The wrong information is misleading and Microsoft should amend the spots before running them. Apple, from what I can decipher, did not ask its rival to terminate the overall campaign.

Sounds like over exuberance on the part of Microsoft’s COO. Certainly divulging Apple’s request without a full understanding of the facts is a chump move.

Microsoft’s Best-Price Rut
That Microsoft’s COO would embrace this story speaks to the depth of the company’s troubled position vs. Apple.

I can’t say it any better than John Dvorak in his piece in The Wall Street Journal’s Market Watch: “Microsoft is stuck in the best-price rut.” See his full commentary.

As he rightly points out, Microsoft’s only focus is the low price of Windows-based computers over Mac Books. Price is the only benefit, the only differentiator. Microsoft doesn’t highlight any of the Mac Books’ limitations or downsides.

Meanwhile, Dvorak notes: “Apple has no qualms about blasting the vulnerability of the PC to viruses and other weaknesses.”

His advice to Microsoft: “… add some real personality and stick it to Apple with some genuine commentary about the flaws nobody talks about. The public can see the ‘best price’ part of the equation for themselves.”

I agree wholeheartedly with Dvorak. Microsoft’s best-price emphasis is largely ineffective in competing with Apple.

That’s because consumers who would be in the market for a Mac Book aren’t focused on price; they’re focused on value and quality. And that’s exactly what Apple addresses in its “I’m a Mac and I’m a PC” spots.

Anyone who is only interested in the lowest cost will never buy a Mac Book. Most of us understand that quality costs more. In a battle of the brands, I’d rather be in the quality/value spot, each and every time.

Microsoft Earns Brand Chump Title
To me, Microsoft has earned the brand chump designation. Their “Laptop Hunters” campaign is flawed, and their excitement over Apple’s request that inaccurate ads be pulled is misguided.

Agree or Disagree? Sound Off
Do you agree? Should Microsoft wear the Brand Chump hat or do you see something I don’t?

Palm Goes with the Flow: Brand Champ or Chump?

Who dares take on the iPhone from Apple in the mobile space?

Palm with its Pre, that’s who.

You’ll remember Palm as the T-Rex brand of handheld PDAs (personal digital assistants). The Palm Pilot was the biggest thing out there.

But this device, quickly it seemed, went the way of the dinosaur with the advent of Blackberrys and the Apple iPhone.

But Palm isn’t going away quietly into the history books. Instead, it’s trying to revive its brand image with the Pre smartphone.

“The Palm brand had waned,” acknowledged Brodie Keast, Palm’s senior vice president of marketing. “It has been perceived as a legacy brand. … We want to reintroduce the brand to those who may have known us in the past and to a giant new audience.”

Smart. Very smart. Sure, the Apple iPhone is clearly at the top of the food chain. But as Palm points out, Apple has only 10 percent of the smartphone market. The remaining 90 percent is still up for grabs.

The challenge is to stand out and bring Palm back in consumers’ minds and introduce itself in a whole new way to a whole new segment of buyers.

Enter Palm’s first shot at winning consumers over: the Flow commercial. You can view the commercial and a short behind-the-scenes film on the Palm Pre Facebook page.

I have mixed feelings about this creative effort, but I am strongly leaning toward Brand Champ.

My first impression of this spot: Wow! I was riveted by the circles of dancers, the choreography and synchronicity and the overall message around ease of use. I found myself thinking: If only I could manage my life so beautifully and effortlessly.

Apple’s ads are quite different in that they focus more on the phone’s capabilities. Palm doesn’t go there and for good reason, I believe. The Pre lags well behind the iPhone, based on reviews I’ve come across (which highlight the Pre’s smaller number of applications and low battery life).

Still, the Flow commercial, in my view, is a winner. This spot is eye-stopping, thought provoking and inspiring. Sure, it’s not going to convert iPhone users. But it’s got the juice to generate interest in the untapped market… and that’s the market Palm’s largely going after.

What are your views? Is the Flow spot:

1. A brand champ?
2. A brand chump?
3. Somewhere in between?

Can Adamo Change Consumer Perception of Dell?

Dell Adamo

Originally uploaded by bruceeric_anderson

Remember Legally Blonde, the film about a sorority girl who goes to Harvard Law School and leads in the fight for respect for blondes everywhere?

At one point, the heroine Elle Woods is shown in the middle of the classroom with her brand new tangerine Apple iBook surrounded by a sea of dark PC laptops. The whole point of the scene is to show the contrast between the main character and her classmates. Elle’s different. She’s fashionable. She’s stylish. And so is the iBook!

Now, imagine that same scene… not with an Apple… but with an Adamo notebook from Dell.

Yes, that’s right… a Dell… you know, the maker of plain Jane, low-cost computers.

With its new Adamo brand (Adamo means “to fall in love with” in Latin), Dell is going stylish and fashionable, or trying to at least. This brand of high-end laptops is all about luxury and design.

The laptop is thinner than the Air, Dell claims (not if you consider that the Air tapers to 0.16 inches), comes in stylish colors and has similar tech specs to the Air.

Of course, Dell isn’t highlighting performance. Dell is highlighting design and aesthetics.

All of this is part of a deliberate strategy by Dell to become more consumer-friendly. They’re saying: “We can be cool,” and “We can be sexy.” As one Dell representative has said: “We’re focusing on the fashion instead of the IT… We want the user to be presented with this and feel special about what they’re getting.”

Can Dell change consumer perception? Sure, could happen.

But at the end of the day, it’s all going to come down to performance. Dell may change people’s perception of its computers as plain Jane… but can the performance match up with the desired upscale image? Consumers care about aesthetics, but they need to have trust in the brand.

All of this reminds me just how difficult it is to change perceptions and transcend current brand images. I think Dell is going in the right direction with its Apple-like approach. However, Dell has a long way to go.

Even Dell recognizes this, with one representative saying: “The thing about the marketplace and really how to change perception — you’re judged on your deeds. So you build a great product, and you deliver that. It doesn’t happen overnight, so we’re doing it product-by-product and brand-by-brand.”

There’s the difference. Apple doesn’t have anything to prove. Everyone knows they know how to deliver design and performance. Dell needs to prove they can, too. Dell needs to fight for respect. And that will take time.

Brand building, after all, is a marathon… not a 5K.