Interbrand is pleased to present its second biennial ranking of the Best Canadian Brands by brand value, in cooperation with The Globe and Mail’s Report on Business.

This country-specific study for Canada uses the same methodology as our Best Global Brands ranking, which is published each year with BusinessWeek magazine.

Over the past ten years, our global and regional rankings have become the barometer of successful brand management. The environments in which brands operate, and the challenges and opportunities they face, have changed dramatically during this time. Evidence is stronger each year that brands have the ability to create significant economic value for the businesses they serve, and we can successfully measure the value created.

Interbrand pioneered the technique of measuring brands as business assets twenty years ago and draws upon a wealth of valuation experience and branding expertise to produce this study, having conducted over 5,000 valuations for brands around the world.

The clearest output of this exercise is the asset value of the brand, but understanding what is driving this brand value is far more important to the business. The insights gained through brand analytics and measurement focus brand management on the elements that will effectively increase the brand’s value among stakeholders – revealing how brand can drive revenue and profitability by influencing choice and sustaining margins.

We regard brand valuation as a proactive tool. The process of determining the earnings attributable to intangibles, assessing the role that brand plays in purchase decisions, and the relative competitive strength of the brand within its markets focuses attention on building brand value. It is now common knowledge that branding is fundamental to business success. Increasingly, we need to understand how brands deliver value, and use this information to better inform business decisions.

More and more, successful businesses are using brand as a compass for organizational alignment around the customer and other stakeholders. As brand management moves from a promise developed by the marketing department to an experience that must be delivered across all aspects or touchpoints of an organization’s relationship with its constituents, brand has become a critical tool for integrating operational decisions so they will cumulatively build the business’s desired reputation.

Ultimate responsibility for delivering the brand to stakeholders rests with the whole company. HR, Finance, Operations, Marketing and Sales must all feel a sense of ownership of the brand so that it lives throughout the organization, and that’s why the leaders of the organization must be the primary brand ambassadors. Great brand management sees the brand as a go-to-market strategy and an action driver, and realizes that each activity the company undertakes should holistically reinforce the brand’s promise and experience.

The rewards are worth the effort. If brands are managed correctly they can move seamlessly across geographies, creating demand for their goods and services around the world.

In our second Best Canadian Brands study we have highlighted the need for Canadian brands to build their presence internationally. This will not only enhance growth, but will also help to defend against an onslaught of global players in our home market in an increasingly integrated and borderless world economy. The brand topping this year’s ranking is the quintessential success story of a global Canadian brand. Overall, the results are very encouraging for brands in Canada, with an increase of $13.2 billion in value across the top 25 brands compared to our 2006 study.

We thank our partners at Report on Business for their support in sharing this study with the business community, and we look forward to tracking the value generated by Canadian brands as they become formidable global competitors in the years ahead.

Bev W. Tudhope
Chief Executive
Interbrand Canada Inc.

Download Best Canadian Brands 2008

PDF format, 2MB, 44Pages.

COMPETING IN THE GLOBAL BRAND ECONOMY

Historically many of Canada’s best brands have been simply that, great Canadian brands.

Brands like Petro-Canada, Sobeys, Shoppers Drug Mart, Canadian Tire, RBC and TD help fuel, feed, facilitate and finance the lives of Canadians. They help create the fabric of our Canadian culture and hold a special place in our minds and hearts. But is this enough when brands need to compete, grow and create value in a global economy?

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ABOUT INTERBRAND

creating and managing brand value

The Interbrand Brand Value Management Model Brands do not become and remain successful on their own. Nor are they ensured ongoing leadership without proactive, diligent and detailed management. Interbrand works collaboratively with clients to consistently and continually evaluate, create and manage their brand assets. We do this by employing the following model.

The Brand Value Management Model is a closed loop with neither a specific beginning nor a definite end. The model begins at a different point for every brand, based on business need. However, one aspect does remain constant: once in progress, the model actually accelerates by generating synergies and capturing new opportunities through carefully crafted and integrated activities. It becomes an inexhaustible source of energy and competitive advantage for every brand.

Brand Value Management comprises three distinct, yet interrelated, phases: Evaluate, Create, and Manage – where the brand and market opportunities are painstakingly examined, creatively brought to life, and thoroughly and holistically coordinated.

For over 30 years, Interbrand has worked with leading global brands to create and manage brand value through an integrated set of offerings. We offer brand and business strategy, brand valuation, quantitative and qualitative research, retail design, brand architecture and portfolio optimization, naming, corporate identity design, packaging design, communications creation, brand engagement, customer experience mapping and online digital asset management tools. Interbrand has over 30 offices in more than 20 countries around the globe and clients from among the most respected businesses.

Interbrand is a wholly owned subsidiary of the Omnicom Group, the industry leader in Marketing Communications.

The importance of valuing brands

significance of the ranking

Interbrand’s second ranking of the Best Canadian Brands continues to put a spotlight on brand performance and its contribution to business performance. The ranking provides a brand value that is a top-line measure of economic performance driven by the brand, stating what the brand is worth overall and among competitors. Brand value brings to marketing what “revenue goals” or “financial hurdle rates” bring to other aspects of business.

The payoff comes when one looks behind the number – a single number only tells you so much. It’s important to understand what drives brand value: intangible earnings (the cash flow of a business not associated with such tangible assets as equipment or materials), the role of brand (a measure of how much brand influences purchasing decisions), and brand strength (a benchmark of brand’s relative risk compared to competitors).

Understanding the drivers of brand value can inform management action, from overall business strategy to specific marketing tactics. It’s an easy-to-understand metric to help brand owners determine where they are, where they are going, and how to get there. It helps make branding a more important aspect of Canadian business management.

It tells you whether you are investing adequately in your brand.

Putting an economic value on a brand (overall and by segment) can help make a strong business case for marketing investments, overall and across the portfolio.

It tells you whether you have a marketing strategy that positions your brand around the right messages.

Your customers make decisions every day between you and your competitors. Analyzing the role of the brand in those decisions helps you to focus your strategy on the attributes that differentiate your brand from others and to strengthen your relationship with your best customers, ensuring future earnings.

It tells you whether you have the right short-term tactics to create value.

By analyzing the strength of your brand, you can target marketing campaigns to the most valuable customers, and against your most formidable competitors, to drive short-term sales. There are many “take-aways” from this ranking, but there is one primary message: brands are important assets requiring proactive and consistent investment, management, and measurement.

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