Best Canadian Brands 2010

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Best CanadianBrands 2010The Denitive Guide

to Canadas MostValuable Brands

Are Canadian Brands Ready

or the Global Podium?

A Ranking o Canadas

Top 25 Brands by Value

Industry Trends and Outlook

Brand Advocacy: Who s Telling

Your Brand Story?


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About Interbrand

Interbrand began in 1974 when the world stillthought o brand as just another word or logo.We have changed the dialogue, redened themeaning o brand management, and continue tolead the debate on understanding brands asvaluable business assets.

We now have nearly 40 oces and are the worldslargest brand consultancy. Our practice bringstogether a diverse range o insightul right- andlet-brain thinkers making our business bothrigorously analytical and highly creative. Our workcreates and manages brand value or clients bymaking the brand central to the businesssstrategic goals.

Were not interested in simply being the worldsbiggest brand consultancy. We want to be themost valued.

About Best Canadian Brands

Interbrands third Best Canadian Brands rankinguses the same brand valuation methodologyas our Best Global Brands report. Publishedevery two years, Best Canadian Brands ranksthe top 25 Canadian brands according to valueand provides insight into their ability to managebrands eectively as a contributor to businessperormance.

Interbrand pioneered the technique or valuingbrands in 1984 and has continued to improve uponour methodology. Our valuation techniques havelong been recognized by businesses, academics,and regulatory bodies as uniquely valuablestrategic tools. Our annual Best Global Brandsreport, published in partnership with Businessweek,has been voted one o the three most infuentialbenchmark studies by business leaders. As a rm,we have conducted over 5,000 valuations or

clients around the world to provide guidance inmanaging their most valuable asset their brand.


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A Dening Moment or Canadian Brands? 2

Are Canadian Brands Ready or the Global Podium? 4

Dening Brand Canada With Condence 6

Not-or-Prots Need to Understand How

Brand Can Support the Cause 10

Can Social Media Lead to Deeper Engagement or B2B Brands? 14

Brand Advocacy: Whos Telling Your Brand Story? 16

Evaluating the Best Canadian Brands Interbrands Methodology 18

Best Canadian Brands 2010 20

Other Prominent Brands 26

Sector Overview: Whats Driving Change? 30

Whats Happening in 2010? 32

Acting Like a Leader: The Art o Sustainable Sustainability 34

Authors and Contributors 36

Contact Us 37

Contents

All values in this report are expressed in Canadian dollars unless otherwise indicated.


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2 I Interbrand Best Canadian Brands 2010

Interbrand is pleased to present our third biennial ranking o theBest Canadian Brands by brand value. Following the last 18 24months o global economic dislocation, it is very encouraging toreport that Canadian brands have ared extremely well through theturmoil, with this years top 25 increasing by an aggregate value o$14.9 billion, or 35% over our last study in 2008.

Our past rankings were conducted during strong growth periods,when most brands will create some incremental value. But in therecent uncertain environment, where short-to-medium term protshave been under signicant pressure, the imperative or all brands isto reassess their proposition and better understand their customers

perceptions o value. The dramatic shits in demand and businesssentiment have altered the landscape or most companies. Withcontinued pressure or perormance, the temptation is to curtailbrand investment and compromise the quality o the experience thatcustomers have been promised. However, erosion o long-term valueis certain i the integrity o the brands promise is put at risk to driveshort-term results. Fortunately, Canadian brands have or the mostpart stayed true to the pillars that orm the oundation o their abilityto create value.

Conservatism and aversion to risk have oten been consideredinherent Canadian traits. Particularly as demonstrated by our nancialinstitutions, these characteristics have served us well and shielded usrom some o the dramatic government interventions and resultingburdens that have been required in other developed countries. This iscertainly something to be proud o, and yet, will a cautious approachenable us to move to the next level o development where brandswill have to move more aggressively beyond our borders to grow andcompete successully?

Our scal stability and relative success in managing through thedownturn has raised our prole internationally. Suddenly the worldis looking to Canada as a model o good governance, sound regulatoryrameworks, and prudent business management. At the sametime, the Winter Olympic Games in Vancouver have demonstratedto the global community that Canada can compete with the bestinternational athletes, own the podium , and set a new standard inorganizing and hosting a world-class event. These accomplishmentshave led to a swelling o national pride and newound condence, a

new patriotism that sets the stage or Canadian brands to leveragetheir nationality and boldly grow and win in new markets.

I now is indeed a dening moment or Canada, our brands canseize the opportunity to capitalize on this momentum. We need lookno urther than the example o the leader on this years ranking.

A Dening Moment orCanadian Brands?

The condent acquisition o Reuters by the Thomson Corporationin 2008 serves as a model o how a Canadian enterprise can becomea global powerhouse, and build a brand that establishes it at thetop o its sector. Organically, BlackBerry continues its dominance inthe smartphone category around the world, and brands as diverseas Lululemon and Bombardier have gained recognition and successin global markets. A wider reach gives these brands greater growthopportunities, enhancing revenue generation and reducing risk totheir earnings prole. And as more Canadian brands successullycompete in the global arena, they will create greater awarenesso Canadas strengths and capabilities and contribute to a clearerdenition o this country.

While our study ocuses on the economic value created by strategicbrand management, many o the brands on our ranking havedemonstrated their ability to create social value as well. The bestbrands understand that their values must align with the values othose they expect to support them. There is a new moral standard onbusiness behaviour and risk, and our tolerance or both companiesand individuals to say one thing and do another is rapidly diminishing.In an age o transparency where consumers now control the narrativeabout how brands behave, actions speak louder than words, andbeyond delivering a superior experience around products and services,corporate social responsibility and sustainability commitments arenow undamental to building strong and lasting relationships withall stakeholders.

We congratulate all the brands that are included on the 2010 ranking,and wish them continued success with their brand-building eorts inthe uture. The changes o the last two years have brought challengesas well as new opportunities. It is an exciting time, and we believeCanadian brands are poised as never beore to capitalize on the newrealities o the global economy and, like our outstanding athletes,compete with the best and win.

Bev W. TudhopeChie ExecutiveInterbrand Canada Inc.


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Interbrand Best Canadian Brands 2010 I 3


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Since our Best Canadian Brands study in 2008, some o Canadastop 25 brands have also proven themselves to be world-classcompetitors. Thomson Reuters, our top-ranked Canadian brand andBlackBerry, both moved onto Interbrands Best Global Brands listin 2008, and in the 2009 global ranking they stood at #40 and #63,respectively. Our banking sector has outperormed its internationalpeers, and specically our top two nancial brands, TD and RBC, areviewed as models o prudent risk management by the internationalbanking community. More Canadian brands are earning globalreputations are they becoming more competitive globally?

How strong are our brands?

Our 2010 Best Canadian Brands study shows that Canadianbrand values or the most part have been growing strongly.Despite challenging economic conditions, our top 25 have gained$14.9 billion in aggregate value, increasing by 35% since 2008.When contrasting that gain to the -2.5% drop in overall value othe top 25 brands in Interbrands Best Global Brands rom 2008 to2009, we should eel both proud and relieved. In act, only our oour top 25 brands lost value and two others ell rom the list due toperormance. In a rough comparison to Interbrands Best GlobalBrands 2009, where 14 o the top 25 brands lost value, itsan incredible achievement, and good news or Canadian brands.

The increase in brand value is making more Canadian brandscomparable in value to those on Interbrands global ranking. Thelowest brand value in our 2009 global study was over US$3.0 billion(#100 Campbells). In 2010, ve o our top Canadian brands now

have values in excess o $3.0 billion. Even as some o the traditionalglobal brand engines o growth have slowed or even choked duringthe past 18 months o economic turmoil, Canadian brands havegrown and are starting to catch up. We have momentum, but whatwill we do with it?

Our brands are growing stronger but are wecompetitive globally?

This is a dicult question. How many o our top 25 Canadian brandscould conceivably climb the steep stairs to the global brand podium?The answer still remains: very ew.

To qualiy or consideration as one o Interbrands Best Global Brands,a brand must earn at least one-third o its revenues outside its homecountry. Despite our recent success in building brand value, manyCanadian brands still remain ocused on national, not international,markets. Sixteen o our top 25 Canadian brands have operationsoutside Canada. Fourteen have operations outside North America.And only a ew have well-developed brand recognition outside

Canada. In many cases, Canadian brands remain domesticallyocused, selling their wares and telling their stories primarily withinour own borders. But there are positive signs on the horizon.Canadian brands have cracked the global

glass ceiling

Our global success stories, BlackBerry and Thomson Reuters,have demonstrated what is possible or Canadian brands. In 2009,BlackBerry had acquired an estimated 20% share o the worldsextremely competitive smartphone market primarily through anaggressive organic growth strategy. BlackBerrys are now sold inmore than 160 countries around the world, and consumers as araway as Indonesia carry their BlackBerry as a badge o status.

Thomson courageously acquired and integrated the venerableReuters brand and rocketed to the top o our Canadian ranking.Thomson Reuters now operates in more than 100 countries and

Are Canadian Brands Readyor the Global Podium?By Debbie Bolton

Few Canadians would dispute that the 2010 Vancouver Winter Olympics were adening moment in Canadian history. Our athletic community set an audaciousand controversial goal: Own the Podium. How very unCanadian o us. But ourOlympians pitted themselves against the best talent in the world and provedthat they can indeed prevail against world-class competition.


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is the worlds leading source or business inormation. ThomsonReuters, with a brand value o $9.4 billion, and BlackBerry, with abrand value o $6.0 billion, are clearly competitive global ranchises.

Other strong brands are starting to

compete globally

Our top two nancial brands, TD and RBC, also deserve congratulations.Both these brands are great Canadian icons that are attracting globalattention. TDs strong nancials, its US acquisitions and disciplinedbrand management have made it a top 10 North American nancialinstitution and pushed it past its Canadian peers.

TD and RBC brand values have increased an astonishing $2.9 billionand $2.0 billion, respectively, since 2008. TDs brand value o$6.7 billion and RBCs o $6.2 billion now place them clearly aheado the bueted global nancial giant UBS which, ater losingapproximately 50% o its 2008 brand value, sank to US$4.4 billionin Interbrands 2009 Best Global Brands study. TDs value also edgedpast Morgan Stanley at US$6.4 billion.

TD and RBC are on the journey to becoming global brands. Theirconservative nancial practices have helped them weather theglobal economic crisis admirably. As other nancial institutions havealtered, they have gained strength and prole on the world stage.

But will their momentum continue as the global economy recovers?And do high brand values equal global success?

Despite signicant growth internationally, TD and RBC continue toearn the majority o their revenues in Canada and their brands arestill most recognizable on home soil. In 2009, TD earned about 32%o its total revenues outside Canada and is gaining traction in theUS. While RBC operates in 53 countries outside o North America, itstill only generates approximately 40% o its total revenues beyondCanadian borders. These brands have to leverage their currentstrengths to gain the recognition they need to push ahead to trueglobal status.

We have brands that need to tell a compelling

global story

Other top brands have not yet achieved the broader consumerrecognition they need outside Canada. Tim Hortons and Manulieare good examples. Despite recent brand value erosion, Manulie isstill one o the worlds largest insurance brands. But is the Manuliebrand well known outside Canada? How many people know thatTim Hortons is now one o the largest publicly held quick-servicerestaurants in North America? Canadians embrace Tims as an iconicCanadian brand, but as it continues to expand in the US, will Tims beable to duplicate its Canadian success without the emotional appealo a Canadian story?

Our smaller brands need time to develop

global momentum

A number o Canadian brands are still relatively small but have agrowing presence both in Canada and abroad. Lululemon specicallyhas grown at an astonishing rate since it started delivering its uniquebrand promise in markets in Canada, the US, Australia and HongKong. Since scal 2008, its revenues outside Canada have grown241% and now account or 40% o total revenues. With time, brandssuch as Imax, La Senza and Lululemon could represent our next waveo high-prole global players.

Brands ghting of competitors at home

In the fattened world o our global economy, brands cannot relyon borders or even governments to provide protection. Retailbrands such as Rona and Canadian Tire are increasingly battling theWalmarts, Home Depots and Lowes o the world to maintain theirshare o mind, heart and wallet with Canadian consumers. Canada isnot a sae haven or brands. Remember Eatons?

Successul communications brands such as Rogers, Bell, Telus andShaw have been historically protected rom oreign competition bygovernment regulation. But these brands are starting to ace a newreality as the regulatory walls are breached by new wireless entrants.

Fierce competitors nationally, now Canadian rms must alsobattle global players such as Orascoms Wind Mobile. These savvyconsumer-ocused marketers have honed their skills in aggressivemarkets around the world. Our brands will need to adapt to a newgame with new contestants and rules.

Why does winning globally matter?

Global brand success is not just about brand bravado or achievinginternational admiration. Global competitiveness is the key togrowth, nancial success and brand protection. In Canada, brandsace the challenges o a large geography sprinkled with a smallpopulation. Brand ambitions can quickly outstrip our nationalmarket potential. Our borders have also become increasingly porous.A Canadian brand can no longer stick its head in the sand in its homemarket and expect to fourish and be let in peace. I a brand does notactively seek to compete globally, global competitors will seek it outeither as an acquisition target or a competitor.

Like our Olympic athletes, our brands must become elite perormers.Thomson Reuters and BlackBerry have valuable lessons to teach.They have sought out and seized global opportunities. They havepersevered in the ace o oreign obstacles. Their brands addressuniversal customer needs and they deliver on their brand promises ina multitude o languages every day. But perhaps most importantly,they have travelled beyond national complacency to compete withthe best because they realize that their brand success now dependsincreasingly on beyond-the-backyard thinking. In act, both o thesebrands now earn the greatest proportion o their revenues outside

Canada, and increasingly outside North America. They are not justvaluable brands, they are global brands. Like our Olympic athletes,they have pushed hard to win on the world stage. Who will be next?


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Dening Brand Canada With CondenceBy Erin OKeefe

Canada is not a country that takes sel-denition lightly. Wevegrappled with our identity over decades, listening to our cultural andcivic leaders tell us how to see ourselves, but also listening to peopleoutside Canada tell us how were perceived.

There are countless assessments by authors, politicians, actors andathletes to sum up our positioning as a nation. Former Prime MinisterMacKenzie Kings amous assessment was that i some countrieshave too much history, we have too much geography, and authorMargaret Atwood was quoted as saying that i the national mentalillness o the United States is megalomania, that o Canada isparanoid schizophrenia.

To put it plainly, weve been told that were stuck in the wilderness,

lack a sense o where weve come rom, have delusions about whowe are today, and are more likely to believe the voices that we hear,instead o trusting our own. There may be some kernels o truth inthese ideas. But in the last ew years and especially ollowing on theNew Patriotism that began to take shape during the Vancouver 2010Olympics we seem to have ound a new voice, and a new sort ocondence in our country brand, or Brand Canada.

Part o this new patriotism is our appetite or, and loyalty to,brands that build iconic Canadian images into their character andpersonality. The strongest are the Canadian brands that go beyondthe stereotypes we have grown up with and push us to embrace ourevolving character as a nation. These emblematic brands may evenhelp us expand Brand Canada, whether it be through experiencesand causes that we value, people we want to believe in, and/orplaces that help us dene our identity.

Too much geography, or a geography that brings

us together?

Rather than thinking o our geographic reach as a disadvantage,weve learned to think o the resilience it takes to live here as essentialto our history. Over the past year, numerous brands were eaturedin campaigns that tied their identity to our geography. For example,Rona positioned itsel as the builder o our country based oncontributions to building Olympics acilities. Its ad campaign eatureda measuring tape that connected us rom coast to coast and explainedhow the home and building retailer provided materials that made ourathletes achievements possible.

Rona also contributes to our communities by investing in youthdevelopment programs building condence through capabilities in12 to 30 year olds. This kind o smart alignment between the brandspositioning and its corporate social responsibility eorts suggestsa commitment to building and sustaining communities across anexpansive environment. At the same time, when we reward theRona brand or exhibiting hard work and commitment in the longterm, we are signalling the value o these themes to us as Canadians.Ultimately, this contributes to the positioning o Brand Canada.

Bombardier is another brand that uses its relationship to geographyas a way to signiy its Canadian character. Bombardiers trains areincreasingly recognized as a Canadian product that enables physicalconnections across international geographies. This hardworking

brand is about dependability and consistency, and uses its globalpresence to tell stories at home, through ads that eature its trainstravelling across other parts o the world.

Few sponsorship eorts are as evocative and inspiring as the Olympictorch run, when Bombardiers torches were carried across the longesttorch run in Olympic history. Every Canadian was invited to participatein ollowing the fame that connected us across communities andlandmarks, all careully chosen to bring Canadas physical identity to lie.

We are also connected by our ability to withstand the physicalenvironment. Brands that share in our experience o bracing againstthe elements eel inherently Canadian, and consequently, weverewarded them with extreme loyalty. Tim Hortons knows how toreerence our relationship with winter in a positive light. It neverstrays rom its positioning as the brand that is always resh and alwaysavailable, and may be the reason parents can get up at 5am to taketheir kids to hockey practice. Leveraging themes o consistency inexperience and commitment to quality, Tims has been rewarded witha place in Canadian iconography and most certainly contributes toBrand Canada.

While these themes o consistency, commitment and resilienceare important to older generations, Tims is introducing these themesto new Canadians as well. Thats why it has expanded its targetmarket beyond those who grew up spending hours at communityice rinks; it is now presenting itsel an essential part o theintroduction to Canada.

How do we understand the brand o Canada? What does it encompass today,and what do we want it to represent in the uture? As we head towards our150th anniversary as a country, what can Canadians do to make our countrybrand into something that were proud o and something that refects ourevolving character as a nation?


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A recent Tim Hortons campaign eatures a vignette that is highlyevocative o Canadas ever-evolving cultural mosaic. The TV ad, whichwas launched during the Olympics, eatures a man whose amily arrivesat the airport rom a much warmer climate. Beore they put on theirnew winter coats, the husband puts a Tims coee cup in his wieshand. Here, resilience is also about the ability to take on challenges,whatever the uture holds. Instead o geography and natural elementsoutshining our history, it has become a proud point o dierentiation.The story helps incorporate multiculturalism into the narrative o ourcountry, and emphasizes that an evolving and diverse population isbuilding the characteristic o resilience into Brand Canada.

Brands that emphasize the importance o our geography and theneed to preserve it also eel inherently Canadian. Commitment tothe environment is a powerul way or Brand Canada to grow beyonda country that oers natural resources as exports, into one thatembraces its natural world as a place to be preserved, admiredand explored.

The Canadian Tourism Commission has made great strides inadvancing Brand Canada or tourism purposes through the expressiono Keep Exploring . This brand wants Canadians and the world

to keep exploring our country, but it expands the denition oexploration to include our urban spaces and cultural destinations.

The keep exploring experience has been detly executed in the digitalenvironment to shape and expand what we know about our country,including a Facebook eature that sends daily alerts to subscribers othe dierent, unexpected and interesting destinations across Canada.

Thanks to keep exploring, we can advance Brand Canada as a placewhere the environment is valued and cared or because the more weknow about our physical and cultural geography, the more likely wellbe to connect with it, experience it, and join together in the interesto preserving it.

Misguided about who we are, or unsure about who

we want to be?

Reerencing our shared identity based on geography is one way or usto create a sense o commonality among Canadians old and new. Butbeyond geography, what else inorms Brand Canada?

We certainly have our share o stereotypes. Classic Canadiana includesiconic images o Mounties and mountains, hockey players and hosers,all o which have been reerenced and over-reerenced or decades,and seem indivisible rom Brand Canada. We even played with these

concepts at the closing ceremonies or the Olympics tongue in


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cheek, o course making them a part o the comedic delivery.While eorts to clariy our national identity in a humorous waymay be part o our sel-deprecatory nature, its unclear whetherit does us any good.

I we are one o the most multicultural countries in the world, shouldthese stereotypes, built on ethnographic snapshots, really inorm ournational identity? It may be that these images are preventing us romexpanding Brand Canada into what we want it to be.

Perhaps we havent ound a way to ocus on our evolving character insideCanada. And perhaps we lack a clear identity because we havent stoppedlooking or cues about what others think o us beyond our borders.

I you made it here, it doesnt mean you can makeit anywhere

One o the challenges o being content with our evolving Canadianbrand is that we still arent convinced that what constitutes successinside Canada is actually successul enough. We love to be known orour successul celebrities Hollywood actors, business leaders whohave made a mark in international markets, and proessional sportsstars who come home rom time to time to tell Canadian kids thatthey too can really make it .

Seen in that light, the campaign or the Province o British Columbialaunched in Winter 2010 may be o debatable merit. Likely modeled ona recent campaign or the state o Caliornia that eatures celebrities

who love their lives in the sunshine state, Canadians such as SteveNash, Kim Catrall, Michael J. Fox and Nellie Furtado share theirconnection to the province to prove to the world that importantpeople have come rom Canada.

Perhaps this cause clbre will truly benet tourism or BC and orCanada, but isnt it possible to build richer proles o our countrythrough the strengths we develop at home? Importantly, it sets up acritical imperative: We need to invest in the people, organizations andcauses that we value i we intend to build a country brand that is trulyrefective o us and helps us compete and win globally.

Success among global leaders on our own terms,

in our own way

The sense that a person or thing has more value when validatedexternally is no less true when it comes to corporate brands. Considerthe Best Canadian Brands in 2010 that gained signicant marketshare beyond our borders. Success in the US market includes TD andLululemon, with Tim Hortons making a notable entrance as well.Brands that have reached beyond North America to become trueglobal players are BlackBerry and Thomson Reuters. Were proud othese successes, and we need more strong Canadian brands on theworld stage.

But the lesson is not to look at international success as an indicator owhat makes us valuable its to learn what these Canadian brands sharein terms o character that expand what Brand Canada stands or, and tohelp other Canadian brands achieve similar breakthrough success.

All o these corporate brands have grown in unique ways, andhave been able to win in competitive environments due to a strongcharacter thats built on many o the aorementioned themes.Whether expansion happened through acquisition or cautious organicgrowth, top Canadian brands exhibit consistency in their eort andexecution, commitment to a long-term vision, and resilience in theace o adversity.

There is one more theme to add to the list: condence. Yes, Canada,

condence. A word oten used to describe other celebrities, otherOlympic athletes, other business leaders, and even other countries.Now it is becoming part o our character, and its not coming romexternal validation. Its coming rom within.

In this year o Olympic glory, bolstered by Own the Podium and a surprising discovery o this thing were calling the NewPatriotism , we became known to the world because o what weare starting to think and say about ourselves. We are nally seeingourselves or who we really are and who we want to become.

When we pay attention to our true nature, we have the bestopportunity to win. Brand Canada benets when we embrace thishealthy tension. Just like many o our Olympians, it means being opento a little more risk when we decide that it matters.

Jon Montgomery was condence personied when he walkedthrough Whistler village ater his gold medal bobsled run, and later atthe ceremony when he jumped onto the podium to receive his medal.We need more Jon Montgomery in Brand Canada, with all his wackycharm and quirky condence. We need to build on our resilienceagainst tough conditions, embedding in it a passion and zeal orovercoming challenges. Sometimes, we need to put everything onthe line. Weve started to show that being nice doesnt have to meanresigning to second place. We need to learn rom mistakes and believeit matters to press on as a nation brand.

Approaching our 150th anniversary, we are rewarding brandsthat help dene Brand Canada through reerences to a new sort

o Canadian character, built on our natural and cultural history,but expanded to include a diverse and evolving population. BrandCanada connects us through shared experience and mindset:commitment, resilience, consistency and a newound condence.And the more we stop looking or validation externally, the morewe will take on the world condently. Thats a country brand tobe proud o.

When we pay attention to our true nature, we have the best opportunity to win.Brand Canada benets when we embrace a healthy tension between seeingourselves or who we are today, and taking a bold, assertive step towards whowe want to become. Just like many o our Olympians, it means being open to alittle more risk when we decide that it matters.


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The journey has begun

Powerul orces have converged on the not-or-prot world a simultaneous increase in competition and demand or servicesalong with a decrease in available resources. These three orcesare causing not-or-prots to struggle with enhancing relevance,securing loyalty and driving innovation and sending them on a

journey to do more with less.

1. Rapid increase in competitionWhile several hospitals, universities and charities come to mind asthe dominant players in the sector, there are over 160,000 non-protand volunteer organizations operating across Canada. The successo new entrants in the category is remarkable. Brands such asRethink Breast Cancer, The Michael J. Fox Foundation or ParkinsonsResearch, and Pathways to Education are relatively new, yet theyhave made a substantial impact in a short time.

In the corporate world, the rise o Corporate Social Responsibility(CSR) and sustainability initiatives have added more prominentbrands to the consideration set. TD Friends o the EnvironmentFoundation, The Tim Horton Childrens Foundation, Canadian TireJumpstart and CIBC Run or the Cure are just a ew examples oCanadian brands that are more prominently connected to causesor social good, leveraging amiliarity o their brand and adding

more choice to the space.

Success on the home ront is not enough. Technology and socialmedia have made local and global choices equally accessible ordonors. In the online world it is just as easy to support a run or alocal hospital as it is to support an international relie eort. Theglobal playing eld is something that all not-or-prot organizationstoday need to keep in mind. Leading Canadian institutions such asThe Hospital or Sick Children and The University o Toronto mustcontinue to stand out on a stage that goes well beyond our nationalboundaries. Says Alex Usher, President o Higher Education StrategyAssociates, Over the past decade, the competition or talent andprestige in higher education has become much more globalized.Canadian institutions that ail to show global ambition, that remainwedded to a regional or even national role, are inevitably going tosuer in the battle or top academics.

2. Greater demandsGone are the days when unding partners would simply cutcheques. Today, corporate partners and major donors are lookingor alignment both in strategy and in organizational values. Theyseek a true partnership where parties can work together to achievecommon goals.

At the micro level, individual donors, members and volunteershave much more choice and thereore have higher expectationso what they will get in return. Customers in general are moresophisticated and expect more, so anyone who interacts with anot-or-prot organization has a heightened expectation o servicein this new reality.

3. Less supportWhile choice has grown, sources o unding have been tightened.Between government cuts, poorly perorming endowment undsand reductions in corporate and individual donations, the needor non-prot organizations to ocus on relevance, loyalty andinnovation has intensied.

A new direction

In the past, not-or-prot organizations have survived on thestrength o their mission and the passion o their stakeholders.

Many have not embraced brand strategically because it hasnt beennecessary ewer alternatives, less demands and more support. Thisis no longer the case. The rules o engagement have clearly changed.Not-or-prots that cling to the allacy that this too shall pass aremissing the warning signs. Those that have the courage to examinea new direction will be set to reap the rewards. Brands are one o themost powerul and valuable assets that or-prot organizations own.A unique approach to brand-building in the not-or-prot contextis critical to unlocking the benets o strategic brand managementand ensuring an ecient and eective journey.

Enhance relevanceA consistent brand promise will help not-or-prots be better knownand better understood, allowing a more ecient deployment oresources. Not-or-prot organizations have unique operating

structures and governance models. It is not uncommon to have very

Not-or-Prots Need toUnderstand How Brand

Can Support the CauseBy Heather Cartwright

Not-or-prots are essential to society. In Canada they contribute over$100 billion in revenue, employ over 2 million people and draw on morethan 2 billion volunteer hours. They help, they serve, they protect, they heal,they educate. When not-or-prots succeed, we all do. When not-or-protsace challenges, it is in the best interest o all o us to ensure their success.


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disparate units within a single organizational brand communicatingmany dierent (and sometimes conficting) messages. Thesedierent and oten opposing approaches dilute the brand andmake it challenging to develop a common understanding amongstakeholders, not to mention the ineciency and wasted resourcesin promoting ragmented messaging. When todays nancial andcompetitive pressures are added, the need or organizations to beclear and consistent in what they promise is essential. This doesnot require a change in organizational structure, it simply requirescollaboration, communication and a good act base to buildconsensus or the right change.

Secure loyaltyUsing brand as a lter to create the right stakeholder experiencescan help keep all stakeholders engaged and advocating or the cause.It is always a risk to make a promise without the ability to deliver.Because not-or-prot organizations are exceedingly complex, theact o agreeing to a common promise can be hard work. As such, thetemptation is to stop there and let the delivery all where it may a dangerous strategy that risks pushing the organization back intoa disorganized, ragmented state. However, with the competitivepressure and the ability o new players to succeed, literally overnight,many non prots are struggling with loyalty how to securestakeholder commitment over time. This is not an impossible task

but it requires consideration o all groups the not-or-prot touches

(employees, donors, those they serve, etc.) and an examinationo the experience they have with the organization. It is critical tomove beyond a satisactory user experience towards an on-brand,unique and memorable experience that keeps stakeholdersemotionally connected.

Drive innovationA source o innovation is one o the primary rewards or non-prots that have invested in brand. When times are challenging,organizations must look or new and creative ways to be successul.I they have clearly dened a promise and created an on-brandcustomer experience, they earn permission rom stakeholders tostretch into something new. When this stretch is based on a strongexisting brand, there is equity to leverage into the next venture: orproviding a oundation or innovation, or developing an oeringthat aligns to the organization to support ongoing growth, and orsecuring revenue streams.

The roadblocks

1. Managing complexityThere are unique challenges to using brand as a strategic tool in thenot-or-prot space. The myth about non-prots is that they simplylack business sophistication and corporate management practices.

The truth is that non-prot organizations are more complicated


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than their similar-sized corporate counterparts. Typically they havethree objectives (raise unds, serve and advocate) vs. the corporateworld which is mainly concerned with one generating returns toshareholders. There are multiple, diverse and equally importantstakeholder groups (government, donors, members, employees,volunteers, those who are served and partners) in the not-or-protarea compared to the corporate world which is primarily ocusedon revenue generating customers also have a range o dierentgovernance structures and typically require greater collaborationand input rom a much larger and collective decision-making body.In the corporate world, there is clear and oten singular executiveleadership. The undamental dierences between not-or-prot andor-prot entities have implications in strategic brand management.Turning a blind-eye to what makes not-or-prot organizationsspecial exposes the brand to unnecessary risk and distracts rom theunique opportunities not-or-prot brands have or greatness.

2. The B word: BrandThe important reality about non-prots is that they are mission-driven and that they are doing the good that society heavily relieson. However, there exists within these organizations an aversionto the word brand. The reality that brand means many thingsto dierent people makes the situation that much more dicult.There is the belie that the nobleness o not-or-prot deeds shouldbe sucient and that strategic use o brand somehow diminishesthe cause, which should be clear enough in and o itsel. There isthe perception that branding is or consumer products, goodsthat require some convincing beyond their merits. In addition tobeing misunderstood, brand must compete or resources. Inorganizations whose energies are used to save the world , the caseor investing time and money in brand can be dicult. As the not-or-prot industry continues to ace orces that demand a strongbrand, brand investment will become less o a nice to do and moreo a serious contender or resources alongside nance, operations,inormation technology and human resources.



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Interbrand Best Canadian Brands 2010 I 13Best Global Brands 2009 I 13

3. Competition is a dirty wordNot-or-prot organizations need to work in partnership. This is theessence o who they are and how they must operate in order to besuccessul. The purpose o brand strategy is to enable organizationsto attract and grow successul relationships with stakeholders.Understanding and dening the brand involves determining whatmakes an organization most special or unique compared to others.For those in the non-prot world, identiying partners in thecompetitive context can be very uncomortable. Says Laura PalmerKorn, Senior Vice President o YMCA Canada, Its important or us tounderstand what unique value our stakeholders see in the YMCA, butwe do not view other charitable organizations as competitors sincethey are also our key partners.

The shortcuts

1. InspirationWhile not-or-prot organizations have unique challenges and needto consider their own path to gain the benets o strategic branddevelopment, they also have two main advantages in strategic brandbuilding. First, a strong brand requires an inspiring and emotiveidea. While some corporate organizations struggle with nding the

inspiration in what seems like basic business, not-or-prots have asignicant advantage in their mission-driven purpose. Their reasonsor being are naturally inspiring and emotive, resulting in authenticbrand propositions.

2. EngagementThe second advantage not-or-prots have in brand managementis in the engagement process. Not-or-prots have a naturalengagement approach with other stakeholders. It may take moretime to get brand management in gear, but the result is a muchhigher level o buy-in with key groups such as sta, donors andvolunteers. Greater engagement drives a better experience and abetter experience helps secure loyalty.

Like it or not, the not-or-prot industry is being sent out into a newreality. The not-or-prots who choose complacency will struggleas the conditions in which they operate continue to change.Those organizations that embrace a new and unique path towardsstrategic brand management, while avoiding the roadblocks andtaking ull advantage o the shortcuts, will enjoy greater relevance,loyalty and growth and that is a trip worth taking.



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While social media promises ecient connection with a new typeo engaged stakeholder, it also represents a real risk to companiesthat come down on the wrong side o the digital mob or a perceivedtransgression. Some companies have also been skewered onlineor trying to use social media as any other broadcast channel,pushing their key messages at a group o people, hoping that theycan generate more positive impressions about their brand. Forexample, Kmart recently sponsored a pay-per-post campaign orinfuential people on Twitter. This move met with much criticism, asit betrayed the spirit o what makes word o mouth so eective i.e.,unprompted, authentic recommendations or a product or service.As a result, many companies have been treading lightly while themedium continues to evolve, with their marketing, HR, IT, and legaldepartments continuing to slowly weigh the risks.

To date, the consumer products sector has been the most visibleparticipant in the social media realm and, as such, is also reapingmost o the rewards. Dell reportedly generated US$ 3 million inrevenue since 2007 rom its DellOutlet Twitter eed, and Nike hasseen a double-digit market share gain in the running category asa result o the Nike community, which encourages runners to log inand record their times while competing with other users. Lubricantmaker WD-40 has increased sales volume to existing customers bycreating a site that takes user-generated suggestions or urther

uses o the product. To get a sense o the scale o participation insocial media, consider that Gartner estimates that 60% o theFortune 1000 will experiment with some sort o brand communityin 2010.

So what about social media and B2B?

Social media encompasses the entire digital landscape where corecontent is user generated and the community oten dictates theevolution o the space (e.g., brand communities, blogs, podcasts,wikis, and social networking). The key success actor is a high degreeo participation.

Contrary to what one might naturally expect, business-to-business (B2B) is a sector that should be critically reliant on the

key capabilities delivered by social media participation (content

generation, community building, and decision support). Forrester,or example, notes that 91% o B2B decision makers participate insocial media, and 69% use this technology or business purposes.B2B customers and prospects also tend to maintain much longerrelationships, and in sectors such as enterprise sotware, ongoingupgrades and service contracts are oten the key to protability.

Somewhat surprisingly, many B2B businesses have already beeninvolved with social media or years, but out o the public eye andunder dierent names. While B2C companies have been recentlybuilding up very visible external networks, B2B companies have hada long run with developing internal networks. Employee intranets,client extranets, supplier sites, and customer orums were all earlyprecursors o social media in terms o community-building anduser-generated content.

While B2B companies understood early on that they needed deeperengagement with customers and partners, to avoid risk theydeliberately limited access to these sites to a select and careullycontrolled group that could contribute. But this risk aversion haslimited the potential that can only be achieved by high levels oparticipation and minimal, i any, supervision (e.g., crowdsourcing,innovations, and participatory marketing).

Understandably, what most B2B rms have been trying to avoid aresocial media blunders, which can easily occur when engagementis not done properly. Some embarrassing mistakes theyve seenothers make in the past involve disguised company representativesposting AdverQuestions (thinly veiled advertisements) to orumstargeted to a particular set o customers/users. Honest peer-to-peerknowledge sharing is extremely valuable in a B2B context (thinko industrial engineers nding other industrial engineers to shareinnovative new uses or an existing product), but this can becomerustrating i you have to wade through questions like Does anyoneknow where I can buy that great new product rom Company X?

So what can B2B companies learn rom both the positive andnegative examples o businesses trying to engage with socialmedia? There are three key ways to get started: listen, experiment,and evolve.

Can Social Media Lead toDeeper Engagement or

B2B Brands?Social media is currently top o mind or many brand owners. Not a day goesby without the appearance o headlines trumpeting new eye-popping growthstats (Facebook has grown to over 300 million users in less than ve years), hugechanges in where people go to get breaking news (Twitter became the de factosource o inormation when Iran expelled all oreign journalists during the last

election), and massive shits in marketing budgets (Forrester Research predictsUS online marketing spend to reach US$50 billion by 2014).


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1. ListenA conversation about your company is already taking place online.Invest the time and money to nd out whats being said andunderstand how that might be infuencing others. Monitoringsotware rom companies like Sysomos and Radian6 have made itincredibly simple to give you an early warning o what is being saidabout your brands online. They oer sentiment readings and helpyou gain valuable insights into what makes people bond with yourbrand or reject you outright. You can also see how youre doingrelative to the competition with tools like Twitalyzer, which ranksbrands based on how they score against elements such as the ratioo positive to negative citations, number o unique individualsreerencing your brand, and the likelihood that individuals talkingabout your brand will do so repeatedly.

2. ExperimentDont put all your bets on the latest shiny new social media object.Friendster was usurped by MySpace, which was overtaken by

Facebook, which is currently being overshadowed by Twitter (inthe media at least). Engage with multiple social media sites andnetworks. Create a an page on Facebook or recruiting. Developan alumni group on LinkedIn to share news, gain input, or generatereerrals. Encourage employees to use Twitter as a way o sharingideas and generating new ones. Companies should also syndicatetheir own digital content by creating RSS eeds or news, events,and job postings so that it can be easily ound and shared by thenumerous other social media sites.

3. EvolveTry to remove push and broadcast rom your vocabulary.The advantages o social media only come when the participantshave a real role to play and are not just passive recipients o yourcorporate key messages (good examples include Intuit or

Amex OPEN communities). Ask questions that you dont know theanswer to, try to answer other peoples questions, post links romother people and brands that inspire you, be conversational, behonest, and have a point o view.

Recently a research rm called the Altimeter Group released a widelycited study called ENGAGEMENTdb which used the Interbrand list othe 100 most valuable global brands as the basis or examining thelevel o engagement top brands had across social media channels(measuring actors such as a companys likelihood to respond to blogposts). While Interbrands methodology or this particular rankingexcludes rms that are exclusively B2B, it is interesting to see thattwo providers o business services (Thomson Reuters and SAP) oundthemselves in the top 10 o engaged brands (a list that includesStarbucks, Nike, and Google). The lesson here is that these rms arecommitted to engaging. In other words, once you open the door todialogue, you must respond, and you need the resources to handlethis responsibility.

Much o this advice presupposes that you have thought careullyabout your brand rom creation through to the ongoing managemento its value. This will help you answer the question, Does a socialmedia approach make sense or my particular business at this pointin time? In particular, you should careully consider whether youvealigned the promise and delivery o your brand because, i youhavent, this massive online, engaged constituency is sure to tellyouand the rest o the world.


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Brand Advocacy: Whos TellingYour Brand Story?By Debbie Bolton

Advocacy is a powerul but underutilized tool

A strategic approach to creating advocacy is worth the eort.Research rom Bain and Company has shown that brands withthe highest level o advocacy outgrow their competition in theircategory 2.5 times.

The power o advocacy stems rom the trust people place in others.Nielsens Online Global Consumer Study o April 2009 listed thisranking o inormation sources based on trust:

1. Recommendations rom known people2. Consumer opinions posted online3. Brand websites4. Editorial content (news articles)5. Brand advertising

The studys results are not startling. Word o mouth, good or bad, hasalways infuenced perceptions o brands. Online consumer opinionshave also gained importance as new communications channels haveemerged. But it is surprising that marketers continue to spend moretime and budget battling or awareness and pushing inormationat targets rather than building trust with potential advocates andnurturing their recommendations and opinions. So how do you ndadvocates and how do you motivate them to tellthe story you would like them to tell?

Advocacy starts close to home

The most powerul brand storytellers are infuencers with credibilityand extensive reach who can share their halo with your brand. Oprahtelling the world she used her BlackBerry to write an article aboutFirst Lady Michelle Obama is a great brand story. But it is unlikelythat a brand can capture Oprahs attention without rst building astrong base o brand supporters.

Brands must start by creating advocates in the world around them.I you gain the passionate support o customers and employees,their enthusiasm or the brand will spill over into words and actions.I they trust the brand, they will stake their reputation with othersby endorsing it. I you channel them eectively, you can help build a

groundswell o support that will ensure loyalty and help draw newcustomers and employees.

Make customers and employees part o the

brand story

Transorming customers and employees into advocates requiresnew thinking that puts them at the heart o the brand. Zappos,the online clothing and shoe retailer, has employees who are valuedand empowered partners in creating and delivering the customerexperience. Interactions between employees and customersbecome unscripted and engaging experiences that oten transcendthe transaction o buying shoes. Delighted customers andpassionate employees play an important part in creating andtelling brand stories.

Zappos uses these stories to develop an inclusive and appealingbrand culture. Some TV spots launched in March 2010 are actualcustomer service calls. I heart Zappos stories are posted online.CEO, Tony Hsieh, tells brand stories on his numerous speakingtours. Zappos has helped build its brand through stories starring itscustomer and employee advocates.

Deliver an experience that gets them talking

Creating brand advocates requires persistence and eort. Keepingcustomers and employees satised and loyal is not enough. Loyalistscan be quiet and passive and remain in the brand boat either through

lack o choice, inertia, or in the case o an employee, a paycheque.Even the most loyal customers and employees do not alwayspromote the brand to others. Microsot is a great example o a brandwith captive loyalty.

On the other hand, Apples advocates go beyond loyalty to activelypromote the brand. Followers o Steve Jobs swarm Apple storesto buy the latest iCreation and have made Apples phones andcomputers hot topics o conversation. But Apple has earned thisenthusiasm. It consistently develops and delivers innovativeproducts and services and thinks dierently about consumer needsand how they can be satised. It engages people emotionally inthe brand and delivers the experiences that its advocates wantto talk about.

In an online and connected world, brand success increasingly depends on whatothers say about brands, not just what brands say about themselves. Audienceshave become authors and brand stories travel exponentially urther and aster.So how can companies ensure that the stories being told about the brandalways work or the brand? The short answer is they cant. But a committedeort to create brand advocates who are willing to promote and recommend

your brand can encourage the type o stories that will help your brand grow.


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Outperorm when they care the most

For most brands, todays consumers are a tough crowd. Theyare skeptical, overwhelmed with choice and inormation, otenunderwhelmed by brand delivery, and too busy to care aboutmost brands most o the time. Employees, too, are oten cynical,indierent, and worn down by employers who appear to put protsbeore people. It is extremely dicult to push the brand into theminds and hearts o these individuals. How can you turn theminto advocates?

Every contact you have with customers and employees is anopportunity to build, maintain or damage your brands potential oradvocacy. But the secret to creating advocates is to outperorm orbrand participants when they most need it. I you truly understandthe customer and employee experience with your brand, you canoptimize the critical touchpoints when they are most willing toinvite you into their lives.

Understanding and solving problems is universally one o the mosteective ways to create brand advocates. Problems get you onthe radar o busy or indierent people. You have their undividedattention. They are emotionally invested because the outcome trulymatters to them. How you treat them at this critical point is pivotal.

Whether you are dealing with a problem on the scale o Toyotasrecalls, a customers upcoming presentation to their boss, or adisgruntled employee, a brands treatment o problems can provideodder or stories that will enhance or detract rom its reputation.

From monologue to dialogue

Its not news that the old rules o brand communication no longerapply. Brand users have become content creators. Virtual word omouth can exponentially expand reach and requency. New ormso media and new infuencers reign. Social media is the new rontieror many brands.

The world has changed but many marketers still bring old thinkingto new spaces and pitch the brand in corporate monologues on theirwebsites, Facebook and Twitter. They are losing opportunities toencourage meaningul dialogue, provide value to stakeholders andgain brand insights.

Brands need to keep their nger on the ast-beating online pulse.Good news can travel ast online but bad news can travel even asterand urther. The inamous Dominos employees YouTube video had

760,000 views within 24 hours. A recent Google search or Toyota

ail yielded over 15 million hits and a Twitter search or Toyotaquality concerns pulled up Did Twitter topple Toyota? Brandsneed to monitor and deal with unavourable brand stories eectivelyand quickly.

Some brands are adapting well. Companies such as Methodcleaning products are creating opportunities or dialogue withbrand participants, listening and acting on insights they obtainonline. Comcast employees use social media to help customerssolve problems. And many brands are creating brand platorms orcommunities or advocates to share their stories. More than 4,800Tim Hortons enthusiasts have shared tales in the Every Cup Tells aStory section o the website. But many brands are still at the earlystages o ully understanding and building advocacy.

Where can you start?

1. Develop an advocacy strategy.Understand who your potentialadvocates are, how you will gain their attention and support,how you will activate them, how you will recognize their help,and how you will measure success.

2. Use experience audits to understand the critical touchpointsin the customer and employee brand experience. What are theydoing and why? How are they eeling?

3. Measure satisaction with brand perormance at these criticaltouchpoints. You might be surprised. Research by Bain andCompany showed that 80% o companies believe they areproviding above-average customer service but only 8% o theircustomers agree.

4. Make outstanding experiences the norm or customers andemployees at important touchpoints. Create buzz by addingvalue and excitement. Turn problems into opportunities.

5. Transorm employees into passionate and empoweredpartners. Engage them in the brand. Listen to them, train them,empower them and reward them or creating and deliveringvalue-added brand experiences.

6. Make it easy and appealing or advocates to tell their stories.Create opportunities or customers and employees to talk abouttheir brand experiences in online communities and two-waychannels o communications. Recognize and acknowledge youradvocates or their support.

7. Use social media wisely.Participate, dont preach. Createdialogue, not monologue. Monitor, listen, learn and act quicklyon insights and problems.

8. Measure your progress. Track your perormance regularlyand in ways that encourage candour and provide actionablesolutions.

Why does brand advocacy matter?

A brand advocacy strategy is not just a eel-good approachthat brands should bolt onto their traditional marketing plan.Brand advocates can help attract new customers and employees

inexpensively through recommendations and reerrals. Theirloyalty reduces churn and rewards the brand with more stable andprotable long-term business and growth. Brand advocacy is asmart business strategy that eectively and eciently builds andprotects both revenue and prots.Brand advocacy should be the Holy Grail or brand marketers. Intodays online world where brand messages can come rom anyoneand everywhere, brands cannot expect customers and employeesto listen and accept only what brand marketers choose to tell them.Brand success now depends on the willingness o others to tell thebrand story, and the nature o the stories they tell. One o thetop indicators o business success is captured in Fred ReichheldsThe Ultimate Question: Would you recommend this company to ariend or colleague? Shouldnt your customers and employees be

saying yes?


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To start, Interbrand compiles a list o Canadian brands rom ourmarketing database based on more than 25 years o valuing brandsand nearly our decades o consulting with organizations in Canadaand around the world.We then narrow the candidates based on the ollowing criteriaor consideration:

1. The brands country o origin must be Canada.2. There must be substantial publicly available nancial data.3. The brand must have a broad public prole and awareness or

the brand must be positioned to play a signicant role in theconsumers purchase decision.

4. The Economic Value Added (EVA) must be positive, showing

that there is revenue above the companys operating andnancing costs.

Based on these criteria, certain brands you might expect to seein this ranking are not included. Roots and Cirque du Soleil, orexample, are privately held and do not have publicly availablenancial data. Additionally, you will not nd certain industry sectorsincluded in our study. Airline brands, or example, have capital-intensive structures, which make it quite challenging to generatepositive EVA (see criterion #4 above).

For brands that do meet the Interbrand criteria, we next look at thecurrent nancial health o the business and brand, the brands role increating demand, and the uture strength o the brand as an asset tothe business. This method is dened on the opposite page.

Evaluating the BestCanadian Brands Interbrands Methodology

The Interbrand method or valuing brands is proven, straightorwardand proound. It examines brands through the lens o nancial strength,importance in driving consumer choice and the likelihood o ongoingrevenue generated or the brands owners.


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FinancialAnalysis

We begin by orecasting the

current and uture revenue

specically attributable to

the branded products. We

subtract operating costsrom this revenue to calculate

branded operating prot.

We then apply a charge to the

branded prot that is based

on the capital a business

spends in order to generate

those orecasted returns.

This gives us a businesss

economic earnings.

All nancial analysis is based

on publicly available company

inormation. An estimate

or nancial reporting is

established rom a wide rangeo analysts reports.

Role o BrandAnalysis

The Role o Brand is a

measurement o how the

brand infuences customer

demand at the point o

purchase. This is applied tothe economic earnings to

arrive at the revenue that

the brand alone generates

(Branded Earnings). We use

in-house market research to

establish individual brand

scores against our industry

benchmarks to help us dene

the role a brand plays within

the category. For example,

we know that Role o Brand

is traditionally much higher

in the luxury category than in

the energy and utilities sector.

The brand, not the business, isarguably the principle reason

why consumers choose these

goods and services.

Brand StrengthScore

Since we view brands as assets,

when valuing them, we need

to assess their ability to secure

uture earnings on behal o

the businesses that own them.Brand strength is a measure

o the brands ability to secure

that demand, and thereore

earnings, over time. Securing

customer demand typically

means achieving loyalty,

advocacy, avourable levels

o customer trial, and in

many cases, maintaining a

price premium.

Our method generates a

discount actor that adjusts

the orecasted brand earnings

or their riskiness based on thelevel o demand the brand is

able to secure.

We calculate brand strength

by assessing the brands

perormance against a set o

critical dimensions. Examples

are as ollows:

Qualityandbrandexperience

Distinctivenessofits

proposition

Relevancetothecustomers

it serves

Capacitytodeliverthepromised brand experience

Abilitytoevolveandlead

within its category

Positivebuzzitenjoysinthe

media and among consumers

Levelofimportancethe

organization places on brand

Consistencyacrossallits

touchpoints

Through this analysis, we also

develop deep insights about

how a brand creates value

and what it can do to increase

that urther.

BrandValue

A brands value is a nancial

representation o the

businesss earnings due

to the superior demand

created or its productsand services through the

strength o its brand.

Brand value is the absolute

nancial worth o the brand

as it stands today. Accordingly,

the brands value can be

compared to the total value

o the business, e.g., as the

business would be assessed

on the stock exchange.

Brand value can also be

compared to other tangible

and intangible assets owned

by the business. We adjust

the businesss earnings based

on uture risk to the strength

o the brand (i.e., the net

present value or dollar value

in todays money). In doing

so, brand value becomes a

key perormance indicator

or brand strategy and serves

as the overall perormance

measure or all branding

activity and investment.

Operating Costs Non-BrandedEarnings

Brand Revenue

Taxes

Capital Costs

Assess Brand PerormanceEconomic Earnings

Economic Earnings Branded Earnings Branded Earnings Brand ValueNet Present

Value

Brand Revenue

Operating Costs

Taxes

Capital Costs

Economic Earnings

Brand Earnings:

The revenue that the

brand alone generates


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BestCanadian

Brands2010A snapshot o thebrand values or the25 leading brands

All values in this report are

expressed in Canadian dollars

unless otherwise indicated.

25 282 $m

2008 Rank NEW

La Senza

NEW

15 1,241 $m

2008 Rank 14

Telus

-6%

05 3,425 $m

2008 Rank 4

ShoppersDrug Mart

8%

16 1,035 $m

2008 Rank 15

Sun Lie

1%

06 2,654 $m

2008 Rank 10

Tim Hortons

40%

17 827 $m

2008 Rank 22

Lululemon

57%

07 2,452 $m

2008 Rank 7

Bell

-3%

18 784 $m

2008 Rank 18

Molson

6%

08 2,276 $m

2008 Rank 12

Rogers

33%

19606 $m

2008 Rank 13

Suncor/Petro-Canada

-87%

092,159 $m

2008 Rank 8

Scotiabank

13%

20 500 $m

2008 Rank 19

Rona

3%

10 1,972 $m

2008 Rank 11

BMO

19%

21 459 $m

2008 Rank 25

Shaw

41%

11 1,906 $m

2008 Rank 9

Canadian Tire

4%

01 9,413 $m

2008 Rank NEW

Thomson

Reuters

NEW

22436 $m

2008 Rank 20

InvestorsGroup

13%

12 1,801 $m

2008 Rank 6

Manulie

-42%

02 6,668 $m

2008 Rank 3

TD

43%

23 383 $m

2008 Rank 24

Labatt

25%

13 1,704 $m

2008 Rank NEW

Bombardier

NEW

03 6,171 $m

2008 Rank 2

RBC

33%

24 330 $m

2008 Rank NEW

IMAX

NEW

14 1,491 $m

2008 Rank 17

CIBC

47%

04 6,000 $m

2008 Rank 1

BlackBerry

7%


23/40


TDAchieving one o the most notable increases in our 2010 ranking,TD Bank Financial Group has advanced its brand both in Canadaand the US. Its actions have engendered trust in spite o thechallenges to the nancial services sector over the past two years.Since its acquisition o Commerce Bank and Bank North, TD hasdemonstrated an ability to develop and execute complementary

brand strategies and campaigns across its two key markets expressed as Americas Most Convenient Bank at US locations andsustained in Canada under the Banking Can Be This Comortable

43%

026,668 $m

RBCRBCs globally recognized success in weathering the economicdownturn can be attributed to strong brand management as wellas prudent, cautious business decisions that have served to benetboth customers and shareholders. RBC continues to reinorce itsFirst or You positioning through experiences across multiplechannels or retail and institutional clients. Making an eortto develop programs that are rst in terms o their impact onindividuals and communities, RBC supports unique CSR initiativessuch as the Blue Water Project and has been a sponsor o Canadian

33%

036,171 $m

Thomson ReutersThomson Reuters is a bold new entrant to the Canadian brand

rankings. Ater two years o commitment to uniying the companyunder a strong corporate brand since Thomson acquired Reutersin 2008, the company has continued to drive success across itsdiversied portolio o innovative products and services or highlyspecialized customers. Innovation is central to the Thomson Reutersbrand and the company continues to gain ground in business servicesthrough a range o new oerings across its product portolios.Industry buzz and excellent press abound or Reuters Insider,

a unique application that consolidates news rom more than

150 global partners into an ecient platorm or news and analysisand is customizable by users in the nancial sector. Other notablenew oerings include WestlawNext or the legal sector, the Elektronenterprise data distribution service, web content accessibility tools,and unique applications or the Sony eReader, Apple iPhone and iPod.Thomson Reuters has also proven its CSR credentials, ranking in theCorporate Knights Top 50 Best Corporate Citizens, and EthisphereInstitutes Worlds most Ethical Companies in 2009.

NEW

019,413 $m

positioning. Jumping ahead in the rankings required this brand tocombine strong nancial results with delivery o a promised brandexperience. TD is considered one o the most approachable nancialinstitutions, and sees employees ability to wow the customer as soundamental to its brand experience that it is currently attemptingto register the word WOW as a trademark on both sides o the

Canada/US border.

Olympians since 1947. Few other brands built stronger associationsbetween themselves and their country brand at the Vancouver 2010Olympics, generating emotional connections that should contributeto long-term loyalty. In addition to sponsoring the torch relay andthe games themselves, RBC beneted rom close association withVISA during the Olympics through shared touchpoints, all o whichyielded both domestic and international presence or the brand.


24/40


BellWith a new high-speed 3G network, Bell has been implementingchange and shaking o some cobwebs. Bell has renewed itscommitment to customers, rebranded and made a big push withits Better campaign. As ocial telecommunications partner, Bellplayed an integral part in the Vancouver Olympics and Paralympicsand its strong advertising presence during the Games has beenollowed up with direct mail and ongoing campaigns. Bell acquiredThe Source in 2009 to bee up its retail presence. Record wirelesssubscriber growth at the end o 2009 has been tied to holiday salesand aggressive promotion. But Bell still needs to ght o toughcompetition rom other Canadian telcos, cable companies likeShaw, and new competitors such as Wind Mobile to maintainits market position.

Tim HortonsTim Hortons continues to wrap its brand in Canadian imagery andremains rmly entrenched in the hearts and mouths o Canadiansrom all walks o lie. It continues to expand in Canada and is nowpositioned to take a bigger bite o the breakast market with itsnew English mun sandwich. But Tims is not just resting on itsCanadian laurels. It is North Americas ourth largest publicly tradedquick-service restaurant based on market cap. Its US expansionhas gained momentum with more than 500 current locationsand additional locations planned. Tims is also testing the waterso co-branding and an expanded oering by introducing Cold StoneCreamery premium ice cream in the US and six test locationsin Canada.

40%

062,654 $m -3%

072,452 $m

BlackBerryBlackBerry has continued to grow in the smartphone market both

at home and globally. It has received kudos as one o the worldsastest growing companies and most powerul brands. It was one oonly two Canadian brands to enter Interbrands Best Global Brandsranking in 2008 at #73 and in 2009 held the #63 spot. Despiteincreased competition rom Apples iPhone, BlackBerry subscribershave more than doubled since 2008. BlackBerry still remains true to

Shoppers Drug MartShoppers Drug Mart has fourished economically as one o themost trusted brands in Canadian retailing. It has broadened itsreach o Canadians with an aggressive store expansion programincluding bigger stores and six Murale cosmetics stores whichprovide an engaging and well-researched customer experience.An ever-expanding product line o private label brands and oodand electronics has blurred the lines o competitors to include

not only pharmacies but also mass merchandisers and grocery

8%053,425 $m

7%

046,000 $m

its enterprise customer base, but growth has been ueled at least in

part by its increased penetration o the consumer market, with theree BlackBerry Messenger eature holding special teen appeal. Anew ocus on non-telco sponsored consumer advertising, consumerriendly initiatives such as mobile albums or U2 and ties to the 2010Black Eyed Peas tour show that BlackBerry means business beyondthe boardroom.

retailers. Marketing support is ocused on aggressive promotionsand successully targets its Optimum card database o 9.5 millionactive users. But recent Ontario rule changes regarding the pricingo generic drugs could shake the oundations or this brand i thenancial repercussions impact brand delivery through store closuresand reduced service levels.


25/40


ScotiabankScotiabanks value has increased since 2008, due in large part to the

brands ability to consistently execute against a clear brand strategyacross multiple geographies. With an established internationalpresence including Mexico and Central and South America, Scotiabankhas also made Asia a priority, where its operations in 12 countries arebeneting rom that regions earlier nancial recovery. Domestically,the brand has invested or years in an approach that positions it tocustomers as an inormed riend and partner. Youre Richer ThanYou Think continues to resonate in short-term product marketingeorts such as Bank the Rest , a program to help customersincrease short-term savings. Scotiabank is highly consistent acrossdigital, print and retail banking touchpoints and has won awards orInternet banking usability.

RogersRogers has entered a new era ater the passing o its visionary

ounder, Ted Rogers. New leadership under CEO Nadir Mohammedis ocused on building rom a strong heritage and economic basewhile transorming Rogers into a one-stop company that is easieror customers to do business with. Ater receiving lots o buzz or itsexclusive iPhone launch in 2008, competition has heated up withthe entry o new lower-cost wireless providers, and the launch o Belland Telus 3G network which led to the loss o the iPhone monopoly.However, Rogers continues to push orward with aggressivemarketing support while it seeks to regain the technological edge byinvesting in innovative 4G technology which will push mobile dataoerings to the next level.

BMOBMO has made solid eorts in the past two years to improve itsoverall approachability and appear more customer-centric. Thebrand has adopted some clever strategies aimed at an investment-savvy audience including making some orays into social mediawith talks by its BMO Capital Markets division on YouTube eaturingexperts sharing their perspectives on changes in the economicclimate. BMO has also invested in understanding and improving

the retail banking experience with new branches designedand reinvented with a new layout that is much more open andapproachable. This suggests BMO is taking its promise o MakingMoney Make Sense through to an engaging in-person experience.

BombardierAs designer o this years Winter Olympics torch, Bombardier reinorcedits leadership position in engineering ingenuity, supplemented with adose o Canadian spirit. A television advertising campaign generatedbroad awareness by clearly articulating the values o this growingCanadian brand to a national audience. While it continues to endurepressure rom the curbed demand or business jets as a result o theglobal recession, the company has won contracts to supply commutertrains to France and high-speed trains to China. Bombardier has alsoramped up its presence in India to capitalize on ambitious plans totransorm the countrys rail system, making it one o the ew Canadianbrands to gain a oothold in the Indian market. Bombardier supportsits positioning as a leading manuacturer o innovative transportationsolutions with its development o environmentally conscious products

and services, its commitments to corporate social responsibility andnotable investments to develop local roots in key markets to protectthe brand as it travels into the uture.

19%101,972 $m

33%

082,276 $m 13%

092,159 $m

Canadian TireDespite a growing range o competitors and a slower economicclimate in 2009, Canadian Tire continues as a stalwart presenceand leading corporate citizen o communities large and small acrossCanada. It is estimated that about 90% o Canadians live within a15 minute drive o a Canadian Tire store. But new managementplans to revitalize the brand. It has retired its long-term suburbanshopper, Bob, rom ads and launched an updated and more broadly

targeted new campaign with the tagline For days like today.The uture plan is to reocus on the core business o sporting goods,hardware and automotive, with more emphasis on customer serviceand new, more productive smart store ormats. Online shoppinghome delivery was discontinued in 2009 but may be revived.

ManulieManulie has been dealing with the 2009 nancial challenges ostrengthening their balance sheet and increasing their capital base.Under the new leadership o Donald Guoloien, this world-classinsurance company is on the road to recovery. Recent nancial reportshave been positive. The brand is moving orward by expanding itsgeographic reach both in North America and Asia and is broadeningits product oering to become a ull services nancial institution.However, there is still work to be done. Manulie needs to invest inchanging its brand perception as Canadas largest insurance companyto a nancial brand that can challenge Canadas big ve banks orcustomers across a wider product range.

4%111,906 $m

-42%

121,801 $m NEW

131,704 $m


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MolsonMany mainstay Canadian beer brands have slipped rom the radar,but Molson Canadian has been bucking the trend by investing in anew positioning, logo, packaging and communications that play upits Canadian identity. Aggressive marketing that capitalized on itsOlympics sponsorship gained attention and created positive buzzboth beore and ater Vancouver. From its gold online jersey app toits Made rom Canada campaign to Molson Hockey House andthree-litre bottles o Canadian beer or medalists, it was hard to missMolson during these dening Canadian moments. It didnt hurt thebrands prole that President Obama owed Prime Minister Harper acase o Canadian ater Canadas gold medal hockey win.

LululemonTagged as a rising star in our 2008 study, Lululemon pulled throughthe recession strongly, coming out ahead o most retailers andachieving category-leading annual same-store-sales growth o 9%.How did the Vancouver-based activewear company do this? Whileother retailers ran recession-driven discounts to drive sales volume,Lululemon invested in its operations, including an expanded and

innovative running line, a more streamlined supply chain and a newe-commerce site. Exposure rom the Vancouver Winter Olympics,along with the addition o pop-up stores and new showroomsin Canada and the US, has had yoga enthusiasts bending overbackwards to get their hands on Lululemons gear.

57%

17827 $m

6%

18784 $m

Suncor/Petro-CanadaSuncor Energys blockbuster combination with Petro-Canada in2009 created Canadas largest energy company. Initial post-mergerresults were disappointing as CEO Rick George ocused on digestingthe acquisition and creating a new Suncor. Since then, though,the company has rebounded well, suggesting it may soon realizethe anticipated benets o the marriage. Suncor will graduallyphase out its Sunoco brand o gas stations and convert the sitesto Petro-Canada. Dened as Canadas gas station, Petro-Canadaenjoys high recognition as an iconic Canadian brand, and its socialmedia initiatives have proven successul in engaging consumers.Operational excellence coupled with strong brand equity suggeststhe recent drop in brand value will likely be short-lived.

Sun LieSun Lie has a relationship with one out o every ve Canadians butit hasnt stopped there. With operations in the US, UK and Asia, SunLie is continuing to build its global presence. The buzz associatedwith Sun Lie acquiring the renaming rights to Miami Dolphins SunLie Stadium just prior to the 2010 Super Bowl has helped spotlightthis brand. A recognized sustainable company and good corporate

citizen, Sun Lies mission is to help customers achieve nancialsecurity. It is using social media strategically to drive trac to itswebsite and its blog, where it oers tips or consumers dealing withtodays economic challenges. An Advisor Match program launchedin 2009 and supported by advertising is an innovative way orconsumers seeking a nancial advisor to nd a good t.

-87%

19606 $m

1%

161,035 $m

TelusTelus has a good track record as an admired company and employer

with a strong brand presence. It has emerged rom a challengingeconomic year that saw its wireless and data growth oset bydeclines in traditional voice services. Telus is increasing its marketingand public relations to stem its loss o wireless customers to anincreasing number o low-priced competitors. These eorts alliedto investments in Canadas largest 3G network, expansion oHDTV coverage and the introduction o Telus TVs new MicrosotMediaroom should start paying o in 2010.

CIBCCIBC has begun to signal its emergence rom the credit crisis,

ater its exposure to US subprime mortgages and other troubledassets led to signicant write-downs. It has pursued cautiousgrowth opportunities through oreign investments and potential

joint ventures. Strengthening its brand presence in its coredomestic market under the promise o For What Matters , CIBCcommunicates its understanding o unique customer needs.CIBC has improved its digital capabilities introducing Canadasrst mobile banking app and being awarded the best Canadianconsumer Internet bank by Global Finance Magazine. A recentcampaign eaturing employees telling stories about their personaleorts to help customers has strengthened the employer brand,which also benets rom a strong digital presence, including anintuitive careers website and Twitter eeds.

-6%

151,241 $m47%

141,491 $m


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ShawShaw has diversied its holdings with its acquisition o CanWest

assets, and has signalled its intentions to enter the wireless marketwith its $190 million spectrum buy. Shaw has many ans in its localmarkets, and a reputation or better customer service than itscompetitors. No longer merely a regional player, Shaw still acesincreased competition as Telus introduces TV services in some oShaws traditional territories. Its roll-out to new geographies isanticipated to be paced and occur on a city-by-city basis.

Investors GroupInvestors Group has continued to steadily grow both its number oadvisors and its assets under management since our last report in2008. A good corporate citizen, Investors Group now oers nancialservices and planning to about 1 million Canadians through itsnetwork o over 4,600 independent consultants. The brand continuesto be primarily delivered and communicated by entrepreneurs

operating locally rather than through a strong national presence.However, Investors Group has kept its nger on the nancial pulse andhas expanded its oerings to address the economic conditions andevolving needs acing Canadians while providing one-stop solutions inbanking, investing and insurance.

IMAXAter three years o net losses, IMAX emerged in 2009 to post aprot, no easy eat in a poor economy or a company that charges upto $5 more than the price o a conventional movie. The release andtremendous global success o James Camerons Avatar undoubtedlyplayed a signicant role. Since release, it has gone on to generateover $200 million in gross ticket sales or IMAX. Approximatelyone-third o that revenue has come rom outside o North America,and that ratio will likely increase in the uture. By 2012, IMAX plansto double its presence in China and Japan by introducing 30 newtheatres. Expansion through new sales and joint ventures has pickedup signicantly in 2010, with 41 new contracts reported in therst quarter, up rom 35 or all o 2009. With the emergence o 3Dtechnology, a new 20-picture licensing deal with Warner Bros., and

mega-titles such as Twilight, Harry Potter, Batman 3 and Toy Story 3on their way, this big screen is poised or international success.

LabattAlthough Labatts traditional fagship brand, Labatt Blue, is still thebest-selling Canadian beer in the world, it has lost some o its zzin its home market. Blue is promoted with The good stu taglinebut its relevance to younger Canadians is questionable. Historically,Labatt has been an Olympic sponsor, but the Vancouver opportunitywas passed to Molson. However, Labatt still carries corporate cachet

in Canada. The brand is a good corporate citizen that undertakes abroad range o responsible activities. Labatts Better World programaddresses three main areas: responsible drinking, the environment,and community-building through a number o its own initiativesand support o Canadian charities.

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Best Canadian Brands 2010