It’s “taken its foot off the gas,” but RIM has “huge opportunity”
Most of Canada’s biggest marketers weathered the recession well with their brands gaining value, according to the latest research from Brand Finance.
One noteworthy exception was Research in Motion’s BlackBerry, whose brand value dropped almost 25% since January of this year.
London-based Brand Finance calculates a brand value by forecasting the royalties that would accrue to a brand holding if that company licensed the brand to an operating company. In January, Brand Finance figured Blackberry was worth $4.36 billion. It has since dropped to $3.3 billion (see chart below).
Canada’s banks dominate the top 15 Canadian brands and all showed growth. Royal Bank of Canada retained the top spot overall, valued at $7.55 billion, followed closely by TD at $7.53 billion.
“Blackberry has also failed to recently capture the hearts and minds of consumers globally in the way that Apple has managed to do,” stated the release announcing the findings. “The Blackberry Playbook tablet device has struggled since its launch last April and has disappointed investors by failing to meet initial targets.”
RIM is also scheduled to announce its quarterly earnings today.
Bombardier, Loblaw and CN also fell down the top 15 rankings since January.
Brand Finance concluded that the “Brand Canada” – the aggregate of individual Canadian brands in Canada – was on the rise and doing better than “Brand USA.” However, when it comes to managing global brands, like Blackberry, Canadian marketers struggle.
“There is a stark contrast when you compare the drop in brand value of Blackberry, with iPhone maker Apple, which saw a 33% rise in value over the same period,” said David Haigh, CEO, Brand Finance, in the release. “While Apple is recognized for its flow of new innovative products, Blackberry appears to have taken its foot off the gas. As ambitious brands that are prospering within Canada look beyond their national borders, it remains to be seen if Canadian brands can become truly global leaders.”
“Blackberry is a tremendous high-end brand which has faltered in the last 12 months,” said Edgar Baum, general manager, Brand Finance Canada. “But it still has the opportunity to capitalize on its strengths in both B2B and B2C markets. Apple is in a precarious position having over-reached itself and having lost its brand visionary, Steve Jobs. Nokia, Samsung, HTC and Motorola all face significant challenges and uncertainties. RIM has a huge opportunity to turn the tide if it can refocus its brand strategy, innovate new products, capitalize on its distribution strengths and leverage its established brand equity.”
