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indEX Published on December 7, 2011

2. Global Brand Simplicity Index: 2011
letter from the cEo
We all seek simplicity.
the circumstances vary from generation to generation
and culture to culture, but the instinct is universal and its
implications in the global marketplace indisputable.
it sends messages that are clear, direct and unfettered
by the unnecessary. it expresses itself in ways that are
easily transmitted and translated. in business, simplicity
creates an environment that promotes peace of mind
with consumers, inspires confidence and generates
brand loyalty.
2

3. Global Brand Simplicity Index: 2011
Simplicity is elemental, essential and profitable.
The 2011 global brand simplicity added questions relating specifically employ simplicity succeed by getting confirmation number arriving in lockstep
indextm articulates and underscores the to technology, Internet shopping and out of their own way and, in doing so, with an online transaction.
across-the-board demand for simplicity social media. drawing customers closer.
But whatever the industry or the
from consumers trying to navigate
Because while the introduction of the When properly applied, simplicity product, the companies that effectively
their way through an increasingly
iPad made 2010 a technological game- serves purpose. It gets into our heads employ simplicity tend to come out
complicated world crowded with both
changer, 2011 was the year mobile faster and stays there longer, helps us on top, the wisdom of their approach
real and virtual clutter.
technology took unprecedented hold, make choices, saves time, money and reflected time and again in their market
Companies that respond to the fully embedding itself into our daily lives. minimises debate over decisions. share and stock performance.
collective cry for transparency, easy
Consider the level of public engagement This year’s report takes an industry-by- That, however, is only half of the
access and clear presentation—i.e.,
surrounding the death of Steve Jobs, industry look at the state of simplicity. equation. Consumers are, after all,
simplicity—gain on the bottom line
the co-founder of Apple. As one human and whether connectivity
and beyond. Some industries, we found, are just
Washington Post writer put it: “People is achieved online, over the phone,
simple by nature—the need to feed, for
In our first global brand simplicity built their lives around the objects Steve through the media or face-to-face,
example, drives the primal give-and-
index study in 2010, we confirmed just Jobs gave them: the MacBook, the iPod, in the end it’s all about perception
take of a fast-food restaurant. Others,
how much simplicity pays. This year, we the iPhone, the iPad.” and relationships. It’s about how we
like insurance, are more complex.
wanted to dig deeper—to quantify the experience our lives and, by extension,
But progress and invention bring their
impact of technology and the Internet In healthcare, simplicity contributes how companies and products do or
own complications. And achieving a
in particular—and further identify and to wellness; in retail, it facilitates don’t relate to that experience.
state of simplicity has never been that
analyse the attributes of simplicity the ease of purchase and yields
simple to begin with. In the United States, the United
(and, conversely, complexity) coursing higher rates of sales; in the world of
Kingdom, Germany, China, India
through our wired world. “You can’t believe how hard it is for telecommunications, it cuts through
and the Middle East where we
people to be simple, how much they the static, connects and informs us,
In 2010, we found older respondents felt conducted our research, several
fear being simple,” former GE CEO through space and time.
technology added layers of complexity recurring themes presented themselves
Jack Welch once observed.
to their lives while the young concluded Simplicity manifests itself in an endless in the aggregate and in sometimes
quite the opposite. So in 2011, we Nobody really wants a complicated variety of forms. It can be as fashionably particularly personal responses.
followed that thread and included far relationship—certainly not in the world elegant as that must-have little black
more Internet brands in our survey and of business. The businesses that dress or as purely functional as the
3

4. Global Brand Simplicity Index: 2011
When properly applied, simplicity serves a purpose. It gets into
our heads faster and stays there longer, helps us make choices,
saves time, money and minimises debate over decisions.
6,026 PeoPle
Ease of communication is the No.1 Sincerely,
reason the world thinks technology
makes their lives easier.
across 7
But respondents voiced concerns,
too, about the double-edge sword of Howard Belk
technology. We can connect, they said. Co-CEO, Chief Creative Officer
But we are under pressure to always
be on. It saves time but demands
countries
time. There’s less privacy and more
dependency. And with each new
generation of innovation and hardware,
there’s a new learning curve. David B. Srere
evaluated
Co-CEO, Chief Strategy Officer
So, they concluded, unequivocally
and almost universally, if you want our
business, keep it simple: Be straight. Be
clear. Be quick and be real.
consuMer
Consumers are so serious about
simplicity they’re willing to pay for it—
between 5 percent and 6.5 percent
extra, depending on the category. That
brands.
translates to $30 billion at stake in the
U.S., UK and Germany alone.
For brands in need of motivation, it
doesn’t get any simpler than that.
4

5. Global Brand Simplicity Index: 2011
Table of contents
letter from the cEo................................................. 2–4 the state of simplicity by region
United States................................................... 35–44
Executive summary.................................................. 6 United Kingdom............................................... 45–54
Germany.......................................................... 55–64
the state of simplicity—global............................... 8–20 Middle East...................................................... 65–73
Relationships................................................... 9–10 India................................................................. 74–82
Technology...................................................... 11 China............................................................... 83–91
the state of simplicity by industry methodology............................................................. 92
Electronics/Appliances.................................... 22
Telecom............................................................ 23 about siegel+gale.................................................... 94
Social Media..................................................... 24
Internet Search................................................. 25
News Media..................................................... 26
Retail................................................................ 27–28
Retail Banking.................................................. 29
General Insurance............................................ 30
Health Insurance.............................................. 31
Utilities............................................................. 32
Travel................................................................ 33
Automotive....................................................... 34
Shipping........................................................... 34
5

6. Global Brand Simplicity Index: 2011
Executive summary
simplicity continUEs to mattEr and pay Among the highlights: Ways to simpliFy
In our first study in 2010, we found that people were Retail: Think experience:
willing to pay more for simpler communications and There’s a bona fide opportunity for simplicity-based Take a customer-centric approach to everything,
experiences from brands. This trend continued in 2011, profit at the nexus of retail and technology. Online retail including typically ignored touchpoints like bills, labels
with global Simplicity Premiums averaging between offers the simplest overall shopping experience by far, and service interactions.
5 percent and 6.5 percent depending on industry— but still lags in-store for obtaining advice, assessing
Think human:
leaving billions on the table. merchandise quality and returning purchases.
Devise processes and communications to better serve
Our Simplicity Portfolio, which is comprised of stocks Technology: people rather than merely increase efficiency.
from the leading global Simplicity Index brands, As a growing, worldwide, consumerist culture interacts
Think innovation:
continues to outperform the major indexes. and intersects with technology, both the sector and the
Look to technology as a tool to simplify, not just
brands with a focus on simplicity are rising to the top
simplicity bUilds loyalty dazzle. Find unexpected ways your brand can simplify
of the index. A compelling 81 percent of respondents
its experience and use these to gain differentiation
Simplicity is not just about short-term returns. A worldwide say that technology simplifies their lives.
and loyalty.
sustained investment in simplified communications Google and Amazon top the worldwide list of simple
and experiences breeds more extensive and enduring consumer brands. Think consistency:
brand loyalty. More than 82 percent of respondents Focus on delivering a consistent and true experience
simplicity WinnErs and losErs
globally said they would be more likely to recommend across all touchpoints and communications.
a brand that provided simpler communications The winning and losing brands cluster by industry,
and experiences. with technology, media and retail brands dominating
the top of the list and insurance and utilities crowding
EntirE indUstriEs sUccEEd dUE to
grEatEr simplicity the bottom. Brands with a clear sense of identity,
focused on consistent experience and communications,
Having established the inextricable link between came up the big winners. Simple brands are simply
simplicity and industry categories in 2010, we took a easier to understand. They live longer in memory. They
much deeper look at the meaning of simplicity within minimise—or at least don’t add to—the complexity
different industries in 2011. bedeviling people’s lives.
6

7. Global Brand Simplicity Index: 2011—Global
Simple can be harder than
complex: You have to work
hard to get your thinking
clean to make it simple.
But it’s worth it in the end
because once you get there,
you can move mountains.
—Steve Jobs
7

8. the
state of
siMPlicity
global
8

9. Global Brand Simplicity Index: 2011
relationships
Love or work, simply?
turns out that there’s nothing like friends and
family after all. When it comes to relationships,
respondents the world over found family and friends
easier to handle than the complications they faced
at work and in romance.
Friendship was first in simplicity in the without interfering in the running of China had the largest overall having mixed results at best: many
United States, India and the United their daily lives.” relationship spread with family rated respondents see as many complications
Kingdom followed by family, while family far simpler than all other relationships. in their interactions with the sector as
GPS has made life less complicated
was No. 1 in China, Germany and the they do simplifications.
and volatile, too, giving direction to On the global scale, respondents said
Middle East, followed by friendship.
the many who might otherwise find their relationships get simpler with age— LinkedIn is one of the bottom global
Romance was seen as the most themselves confused, lost and angry. with the notable exception of the Middle brands in terms of simplicity, but
complicated of all relationships in the East where relationships are simple there’s a real opportunity for the brand
“With GPS, there are no disputes in our
U.S., India and the Middle East, and from 18–39 and 60 and older, but are that succeeds—where LinkedIn has
family during long car rides,” says one
work was next in line. China, Germany seen as less simple from ages 40–59. failed—to find a new way to simplify
German respondent.
and the UK had an easier time with the workplace.
Finally, men find relationships slightly
romance than work. Social networks cut both ways, making
simpler than women in all countries The same is true of romance.
it easier on the one hand, to connect
Technology was seen as a key except the UK.
with faraway and long lost friends, but The brand that manages to not
connector in keeping relationships
also contributing to complexity with What’s the lesson for brands here? only bring people together but also
simple through ease of communication
an implied demand to be “always help them navigate their romantic
with photo and video sharing reinforcing First, that there is still work to be done
on,” respond faster, and maintain— relationships in a more simplified
those personal ties. and money to be made in simplifying
if not create whole cloth—a separate fashion could be the next Facebook.
relationships. Our findings on social
One UK respondent was particularly online persona. Others found life Assuming, of course, that Facebook
media, a new category and set of
grateful for text messaging, saying, complicated by their inability to doesn’t get there first.
brands we added to this year’s study,
“Text has been the best thing as I can separate work from their personal
show that social media brands are
keep in touch with my daughters… life because of technology.
9

10. Global Brand Simplicity Index: 2011
Results in: Simple Complex
United States
and India
1. Friendship 2. Family 3. Work 4. Romantic
Germany
and China
1. Family 2. Friendship 3. Romantic 4. Work
United Kingdom
1. Friendship 2. Family 3. Romantic 4. Work
Middle East
1. Family 2. Friendship 3. Work 4. Romantic
10

11. Global Brand Simplicity Index: 2011
technology
The generational impact of technology
Wherever we went in the world, the Technology even made them feel safer. Familiarity doEsn’t brEEd contEmpt
answers to our questions about the
But concerns and complaints arrived in
impact of technology on simplicity
tandem with the acknowledgments. 8.43 8.43
lead to two connected conclusions: 8.36
technology brings simplicity to our The presumed need to be tethered to
lives but there is a price to be paid technology—to always be “on” with 7.96 7.91
7.55 7.48
colleagues and friends—finished first in 7.17 7.16
for progress.
the list of most complicating attributes
Across the globe, ease of communications
globally. Many saw their time being
was considered technology’s greatest
sucked away amid all the texts, emails
contribution to a more simplified life,
and virtual social interactions and felt
social media
smartphone
which was supported by overall results.
mp3 player
the pressure that came with the higher
computer
ereader
Email and phone ranked in the top three
Simplicity
expectations of instant responses and
phone
tablet
Email
simplest technology products.
gps
the ramp-up time necessary to keep
Respondents agreed that technology pace with new improvements.
saved them time, saved them money, Despite all the hype about the iPad and the rapid growth of the
made their lives more efficient, more tablet market, computers and email still rank simpler than tablets.
convenient and gave them greater
simplicity WitH agE?
access to a wider world.
While younger generations and retirees
They sang the praises, too, of the think technology greatly simplifies their
simple virtues of online banking lives, older generations still working find
and shopping. They were grateful technology most challenging.
for technology’s ability to speed up
Technology has made my life easier compared
household chores and stay connected to my mother’s and grandmother’s. I give full
to others. They appreciated GPS-
aided ability to get home faster in
credit to technology when it comes to taking
the first place. care of my baby, my husband and myself.
11
—HoUsEWiFE in tHE middlE East

12. Global Brand Simplicity Index: 2011—Global
Global: Simplicity by Industry
1000
Simple
900 + cross the globe, the search engine, Internet
A
retail and mobile phone industries are creating
simple experiences through usable technology
800 and communications.
700
600
500
400
Restaurants/Entertainment
general (department/big box)
300
restaurants/Entertainment
Electronics/Appliances
Travel and Hospitality
General Insurance
200
Health Insurance
general insurance
Health insurance
cable providers
Retail Banking
internet search
Shipping/Mail
mobile phones
retail banking
internet retail
shipping/mail
Heath/beauty
social media
Automotive
automotive
Electronics
appliances
car rental
100
booking
grocery
Fashion
Complex
Telecom
Utilities
Fitness
Utilities
Hotels
news
Media
Retail
train
air
0
The Simplicity Score is a normalised composite based on ratings on key elements of our Simplicity LabTM methodology, including stated
12
simplicity, ease of understanding, transparency, caring, innovation and usefulness of communications as well as how painful or not typical
interactions are.

13. Global Brand Simplicity Index: 2011—Global
The Simplicity Premium can increase profits for many industries.
Depending on the industry, between 7 percent and 19 percent of people
are willing to pay more for simpler experiences and interactions. The
amount they are willing to pay varies by industry, but is significant.
For simpler experiences, people would pay:
6.3% 6% 5.5% 5%
more more more more
Restaurants/ Travel:Train
Media:InternetSearch Travel:Hotels
SocialMedia Entertainment NewsMedia Travel:Air
Retail:Grocery
Retail:Fashion
Retail:Fitness Retail:Health/Beauty Utilities
Retail:General Retail:Internet
Appliances Electronics Automotive Shipping/Mail
HealthInsurance
Telecom:MobilePhones
13

14. Global Brand Simplicity Index: 2011—Global
Global: Brand Simplicity Index
1–29:LeaderS, 30–58: MIddLe-OF-THe-PaCK, 59–87: LaGGardS
% Change % Change
Rank Brand BSI from 2010 Rank Brand BSI from 2010
1 Google 955 NA 20 Dell 775 10%
Automotive 2 Amazon 885 5% 21 Audi 772 8%
RetailBanking 3 IKEA 882 NA 22 SUBWAY 765 -5%
Electronics/Appliances 4 McDonald's 867 2% 23 Yahoo! 764 NA
GeneralInsurance 5 Apple 861 25% 24 Toyota 762 5%
6 Nokia 859 1% 25 Puma 759 NA
HealthInsurance
7 Pizza Hut 853 5% 26 HP 758 12%
Media
8 Marks Spencer 844 14% 27 Holiday Inn 756 9%
Restaurants/Entertainment
9 LG 843 NA 28 iTunes 755 NA
Retail
10 Starbucks 842 3% 29 YouTube 753 NA
Shipping/Mail
11 Carrefour 836 7% 30 Canon 753 6%
Telecom 12 Siemens 831 4% 31 HM 751 0%
Travel 13 Sony 827 10% 32 Honda 748 23%
Utilities 14 Samsung 814 11% 33 Hilton 741 NA
15 CA 809 NA 34 BMW 738 31%
16 Walmart 807 -1% 35 Philips 738 NA
Brands that were rated in at least two 17 Motorola 786 NA 36 Nike 735 -2%
geographies have been ranked in the 18 Boots 786 -2% 37 Adidas 732 -2%
Global Brand Simplicity Index. 19 KFC 781 -5% 38 Debenhams 731 6%
14

15. Global Brand Simplicity Index: 2011—Global
Global: Brand Simplicity Index (continued)
1–29:LeaderS, 30–58: MIddLe-OF-THe-PaCK, 59–87: LaGGardS
% Change % Change % Change
Rank Brand BSI from 2010 Rank Brand BSI from 2010 Rank Brand BSI from 2010
39 O2 729 NA 58 Reebok 683 -10% 77 Bupa 588 NA
40 Burger King 729 -12% 59 Google+ 683 NA 78 Ramada 583 NA
41 eBay 725 6% 60 Bosch 679 NA 79 Budget 572 1%
42 Vodafone 723 1% 61 DHL 679 12% 80 AXA 562 0%
43 Facebook 715 NA 62 ZARA 677 6% 81 Hertz 548 -4%
44 Volkswagen 713 12% 63 ING 676 NA 82 LinkedIn 540 NA
45 Microsoft 712 NA 64 Gap 675 7% 83 Peugeot 538 26%
46 BlackBerry 710 NA 65 Marriott 675 NA 84 Allianz 531 -1%
47 Mercedes-Benz 707 NA 66 Twitter 674 NA 85 Enterprise 522 -11%
48 easyJet 706 3% 67 Nissan 664 17% 86 Ryanair 473 -12%
49 Expedia 706 NA 68 Ford 660 10% 87 GE 459 NA
50 Sephora 704 NA 69 Best Western 648 NA
51 Topshop 697 NA 70 Panasonic 638 NA
52 MSN 694 NA 71 Sky 632 NA
53 Haier 691 NA 72 Avis 624 13%
54 HSBC 691 48% 73 Virgin Mobile 602 NA
55 UPS 689 10% 74 Bing 601 NA
56 FedEx 687 2% 75 Europcar 599 14%
57 Citibank 685 41% 76 Groupon 589 NA
15

16. Global Brand Simplicity Index: 2011—Global
Global Top 10 Brands
Intuitive experiences and design, both online and in-store,
are notable attributes of the brands in this year’s top 10.
1BSI: 955
2BSI: 885
3
BSI: 882
4
BSI: 867
5BSI: 861
Googleisourclearwinnerin Ifthere’sonewordthatdescribes Thankstostrongpositionsin McDonald’sowesmuchof Admiredforitslaser-sharp
thisyear’sGlobalBrandSimplicity Amazonit’s“easy”—easyto Germany,ChinaandtheMiddle itshighrankingtoitsabilityto focusonconsumer-friendly
Index,dominatingeverypart find,easytoorderandeasy East,theSwedishretailerlands consistentlydeliveronconsumer products,Applescoresbig
oftheworldexceptChina(where toreturn.That’sthetrifectafor intheNo.3spotglobally. expectationswhilestillkeeping pointsforeverythingfrom
domesticbrandBaidustillreigns). successintheworldofonline IKEA’sbrandidentityisas thebrandrelevant.Withever- productfunctionalitytotargeted
Itshouldcomeasnosurprise. retail.ButAmazonhasmoved uncomplicatedasitsproducts expanding,healthiermenu advertisingthatconsumers
Google’ssimpledesignboth furtherstill.Fromitsperchas —simple,inexpensiveandwith optionsandofferingstailoredto findbothrelevantandintuitive.
containsandunleashesamind- theworld’slargestonlineretailer acleareyeondesign.IKEA’s localtastes,thefastfoodgiant Elegantandsimple,Applemakes
bogglinguniverseofinformation, withthelargestselection,the advertisingfollowsthesame hasnowturneditsattentionto technologymorethaneasyand
opportunitiesandservices.All brandhaslaunchedastringof consistent,appealing,easy-to- itsphysicalspace.Inspiredby funtouse,ithasbecomeago-to
withoutoverwhelmingtheuser. electronicdevices(beginning shoppattern.Thecompanytakes Apple,McDonald’sstoresaround statussymbol.Whileoursurvey
Capitalizingonitssuccess, withtheKindle)showcasing itallthewaytothenuts-and- thecountryareintheprocessof wasconductedpriortothe
Googlehasrunitsubiquitous itscommitmenttosimple, boltslevelwhererespondents revampingtheirdesignstoreflect passingofApplefounderSteve
onlinethreadthroughnews, intelligibleelectronicsaswellasa findassemblingIKEAproducts amoreupscale,modernfeel—all Jobs,hislegacylivesonthrough
productsandadvertisingand willingnesstocompeteinthetech generallyeasierthanthoseof ofwhichcouldleadtoaface-off awaitedproductssuchasiPhone
madeitalllookdeceptivelysimple. spacewithitsowninnovativeand itscompetitors. withPaneraandStarbucksinthe 5andiPad3,duetohitstores
price-competitiveproducts. nearfuture. in2012.
16

17. Global Brand Simplicity Index: 2011—Global
Global Top 10 Brands (continued)
6BSI: 859
7
BSI: 853
8BSI: 844
9
BSI: 843
10
BSI: 842
Nokiasucceedsinsimplicity Clearpromotionsperceivedas MarksSpencerwinswith Intheworldofelectronics, Starbucksredesigneditsiconic
thankstoacombinationof honestbyrespondentsplace clarity.Easy-to-understand consumersgetampedwhen logothisyear,droppingthetext
usability,awiderangeof PizzaHutinourTop10.Around promotions,regularmailings, simple,usablegoodsseamlessly encirclingitsmarkandsignaling
productsandbroaddistribution theworld,consumersplaced diverseproductlinesandeasy- integratewiththeirlives.And thebrand’stransitionintoa
inemergingmarkets.In PizzaHuthighontheSimplicity to-read,well-designed,in-store LGdeliversthegoodsacross worldthatofferedsomething
developingcountries,Nokia Indexpointingtocompelling displaysearnthebrandatop fivedifferentcategories— morethanjustcoffee.Change
ranksatornearthetopofmobile offers,reliableserviceanda spotonthisyear’sSimplicity mobilecommunications,home ornot,respondentsconsistently
phonebrands.Inthedeveloped streamlineddeliverysystem. Index.Customersalsoappreciate entertainment,homeappliance, praiseStarbucksforitseasy-to-
world,wherethereisagreater Thecompanycontinuesto thehighqualityandreliability airconditioningandbusiness understandprices,reliableservice
saturationofsmartphones,it’s enhanceallaspectsofconsumer ofthebrandscarriedbythe solutions—thatrespondentssay andpromiseofcommunityacross
adifferentstory:Appleisthe interactionswiththebrand,from retailchain. theyintuitivelyunderstandwhile stores.Thebrand’scommitment
clearleaderinthecategory.With in-storediningtoquickfeed- alsoappreciatingLG’ssuperior toglobalsocialresponsibilityand
hopesofpenetratingthemarket back.Alladdinguptosimple customerservice. transparencyconcerningfuture
andcompetinginthecategory, andsmartmovesforalarge goalshasgarneredconsumer
Nokiahasrecentlyintroduced pizzachainoperatinginahighly supportandpeaceofmind.
newproducts(i.e.,Lumia)with competitiveindustry.
featureslikefree,multichannel
17
globalmusicstreaming.

18. Global Brand Simplicity Index: 2011—Global
Global Bottom 10 Brands
Car rental services and insurance cluster at the bottom of
the Brand Simplicity Index.
78 79 80 81 82
BSI: 583 BSI: 572 BSI: 562 BSI: 548 BSI: 540
Ramadaallbutcheckedoutof It’snocoincidencethatthree ThoughAXAwasactually Despiteitslowglobalrank,the Consumerscomplainthat
theglobalcompetitionwitha oftheBottom10brandsare rankedasthesimplestinsurance launchofHertz-On-Demand— LinkedIn,theworld’slargest
simplicityscorewellbelowthe carrentalcompanies.With companyglobally,itstillranks thecarrentalbrand’sanswer business-orientedsocial
industryaverage.Ontheother fuelsurcharges,complicated intheBottom10overall,losing toZipcar—contributedtoa networkingsite,invitesthem
hand,theWyndhamHotelGroup insurancefeesandcoverage pointsforitsconvolutedpolicy strongperformanceinthe tomeetandgreetbuttoooften
raiseditshipprofilethisyear plansthatoverlapwithcreditcard statements.Whenitcomes U.S.whereitledthepackbya impedestheirabilitytodoso.
withanewselect-servicebrand, benefits,complexityisclearly tosimplicityandinsurance, considerabledistance.Aretooling Unfocusedcommunications,
TrypbyWyndham,andadeal anindustrything.Simplified thereseemstobenoprotection ofthebusinessmodel,withat aclutteredinterfaceandsite
thatgivesWyndhamexclusive languageandpricingcouldbea fromcomplexity. leastoneeyeontheroadto upgradesthatcomplicateor
franchisingrightstoultracool truepointofdifferentiationwithin reinvention,couldjump-startthe preventinteractionarefrequently
brandsDreamandNight. theindustry. brandglobally. cited.ThoughLinkedInfinished
Ramadacouldbenefitfroma nearFacebookandTwitterin
similarstrongertietotheup-and- theU.S.,itwasmuchfurther
comingmasterbrandbeforetheir backinthepackintheUK,and
brandgoeslightsout. significantlytrailedFacebook
inIndia.
18

19. Global Brand Simplicity Index: 2011—Global
Global Bottom 10 Brands (continued)
83 84 85 86 87
BSI: 538 BSI: 531 BSI: 522 BSI: 473 BSI: 459
Peugeotwasonlyslightlybelow Atouchbelowtheglobalindustry Enterprisejustcouldn’tmake TheIrishairlinemadeheadlines SeeingGEatthebottomof
theindustryaverageintheUK, averageandabottomfivefinish agoofitwithU.S.consumers, withsomeofitsàlacartepricing: thegloballistwasabitofa
butinIndia,itwasanotherstory show,there’sreallynothing trailingfarbehindindustryleader chargingforbathroomprivileges, surprise,astheirEcomagination
entirely.LeadingbrandsTVS simpleaboutinsuranceorAllianz. HertzalongwithAlamo.Inthe standing-room-onlyseating,afat platformhasbeentheenvy
Motors,MarutiSuzukiandHero Astheworld’slargestinsurerby UK,however,Enterpriseactually taxforoverweightpassengers ofmanyacompanyfroma
HondaleftPeugeotinthedust. revenueoutsideChina,Allianz cameoutontop,leadingby anda$63chargetoprint corporatepositioningstandpoint.
putsitsnameonadizzying adiscernibledegree.Still,it boardingpassesattheairport. However,whenwedugalittle
arrayofinsurancecompaniesit wasn’tenoughtopaveover Thecompanysaysthemeasures deeperintotheresults,we
hascobbledtogetherthrough industry-widecomplexities aremeanttoreframeconsumer sawhowthebreadthoftheir
acquisitionsandmergers. thatcausecustomerconfusion expectationsandkeeptheircosts portfolioishavinganegative
andfrustration. low.Butrespondentssayit’snot impactonperceptions.GE’s
thatsimpleandaren’tbuyingthe communicationswereperceived
rationaletoooftenfoundinthe asunclear,withpeoplenotsure
fineprint. astowhatproductstheywere
reallyadvertising.
19

20. Global Brand Simplicity Index: 2011—Global
Simplicity still pays
Building on the trend from 2010, investing in a stock portfolio based on simplicity continues
to beat the major indexes. A portfolio made from the publically traded top 10 global
simplest brands outperforms and is less volatile than the major indexes.
80%
Simplicity Portfolio
SP
60% Dow
FTSE
% growth of index/portfolio
DAX
40%
20%
0%
20%
09
09
9
9
9
09
9
09
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9
9
09
09
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l-1
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The Simplicity Portfolio is comprised of the publicly traded stocks of the top 10 brands from the Global Brand Simplicity Index.
20

21. the
state of
siMPlicity
by indUstry
In 2010, we saw that the industry category had a strong impact on
how simple or not a brand was perceived to be. In 2011, we have delved
deeper into individual industries, uncovering the simple, the complex
and the plain ugly. Within industries, media and technology reign and
insurance fails; however, in each industry, there are winners and losers
to learn from.
21

22. Global Brand Simplicity Index: 2011
Electronics/appliances
Technology, where the drive to simplify is a primal force,
is not without its paradoxes.
As a symbol of elegant simplicity, Apple Sitting near the bottom of this year’s
ranked first among electronics and global list is Panasonic with its
appliances companies in the Global everything-but-the-kitchen-sink product
Brand Simplicity Index and the 5th most line that puts televisions, phones,
simple brand overall. DVD players, cameras and more into
one virtual bin.
Out of 25 industries, electronics
and appliances ranked 4th and 5th Apple remains almost ruthlessly simple
ucts respectively, contributing six brands in that regard and, in doing so, has
Prod
logy
in the top 20 (even more than quick- been able to not only charge a premium,
no service restaurants). Apple’s success but have customers wear the expense
ech
lE
Fo rT and its ranking is a function of more as a badge of honor.
mp
than its iconic devices. It’s also due in
It’s a compelling dynamic where simple
si =
large part to its consumer experience
equals status.
focus in all aspects of its business—
from point of purchase to packaging
Us
to service. UK rEspondEnt:
at
On the one hand, the steady stream “Apple is clear about their products,
what they do and what they stand
st
of innovation continues to make it
for and, in the end, deliver what
easier for consumers to watch, listen, they promise.”
share and communicate. But many
companies in acquisition mode have
expanded their profiles and portfolios
and incorporated such a sea of product
models and technology types that
many customers feel lost as they
attempt to navigate their way to a
simple purchase.
22

23. telecom
It makes perfect sense to us that a truly simple industry
gave birth to something called the smartphone.
Mobile phones (handsets and providers) Nokia offers both smartphones and phones, finishing 13th out of 25 globally
ranked No. 3 globally in the field of 25 standard mobile phones.) in our survey. While mobile phones are
industries. In fact, 78 percent of global seen as a simple offering, the world of
BlackBerry was seen as least simple in
users found smartphones contributed cable TV is perceived as being more
four out of the six regions of the world
to simplicity in their lives. That’s an complex. And with the rise of online
we surveyed where it was repeatedly
impressive performance for reasons television content, many consumers are
called out for being too difficult to use
almost as numerous as available apps. reconsidering the cable packages they
with too many features.
frequently see as overly complicated
Once gaudy, oversized and less than
BlackBerry, said one respondent in the and overpriced.
dependable, mobile phones have been
United Kingdom, is just “not intuitive”
slimmed down, their problems trimmed
from a user’s point of view.
down making them the ubiquitous,
blacKbErry Fail:
indispensible standard for millions. While traditional mobile tele-
communications still lead as carriers,
Of the telecom brands, BlackBerry skype is a very
In the beginning, mobile phones were
just phones. A simple concept.
there’s new, aggressive competition
was seen as least simple in four out
of the six regions of the world we
fun and convenient
Now they’re smartphones—game-
coming from Internet voice and
communications as well as smartphone
surveyed, where it was repeatedly service that allows
called out for being too difficult to
changers with a seemingly endless
array of communicative and enter-
apps enabling Internet calls.
use with too many features. my family to have
taining possibilities.
Microsoft’s recent purchase of Skype
has only upped the ante.
long distance,
This despite the variety of operating
systems, brands and options that
In the U.S., the only country where face-to-face
usually contribute to customer confusion
Skype was included as an individual
brand, Skype was far out in front of
communication.
and frustration in other industries.
the pack—including its next closest it’s a very simple
Apple was the world-beater with competitor, Verizon.
Nokia a close runner-up. (Apple
The cable television industry as a whole
programme to use
offers smartphones exclusively;
fared poorly when compared to mobile and it’s free.
23

24. Global Brand Simplicity Index: 2011
social media
Social networks not only dominate the conversation, they’ve
changed the very nature of conversation and the global culture.
In the U.S. some 22.5 percent of online respondent puts it: “social media LinkedIn hugged the bottom of the list
time is spent on a social network or complicates my life by creating new in every region. The service, originally
blog, according to the Nielsen Company. social norms, requiring me to be created as a sharable database of
And, by year’s end, Deloitte predicts constantly connected to all my friends, business contacts, gets low scores for
membership in social networks could especially people that in the past I usability with an unwieldy combination
top 1 billion worldwide. would not have kept in touch with. of user-to-user connectivity issues
Additionally there is a constant pressure including specialised groups with
The oldest social media brand on the
to keep up your digital image, as it varying membership rules.
Global Brand Simplicity list, LinkedIn,
can be seen by professionals, peers
is just eight years old, a pioneer in
and others.”
the sector along with the now all-but-
forgotten Friendster and Myspace. Unlike the news media, social media
is dominated by global brands.
The social media concept has always
Respondents in almost every region
seemed simple enough: users gather
weighed in on the same brands,
at one online address to share their
thoughts, photos, videos, links and lives,
including Facebook, YouTube, Twitter though social media usage
bringing friends, colleagues and family
and LinkedIn with China, again, by older generations has
standing apart. (Facebook, YouTube
up to date as they please in a virtual increased in the past few
and Twitter were banned in 2009,
world connected (at least theoretically)
though the country has its own Twitter years, those over 50 find
to the real world.
and Facebook clones.) it contributes much less
Yet as an industry, social media ranks
YouTube (now owned by Google) was
to simplicity than those
low globally on the simplicity scale—
found to be simplest globally, with under 30.
coming in 17th out of 25 industries
Facebook following—earning its place
we surveyed. The complicating factor
despite an onslaught of changes to
isn’t, as it turns out, the mechanics of
the service raising the ire of users who
the medium as much as the demands
complain of interference and worry
of participation—both on time and
about compromises to their privacy.
in creating social pressure. As a U.S.
24

25. Global Brand Simplicity Index: 2011
internet search
Internet search has become such a fundamental aspect of modern
life that it finished first among all industries by a wide margin in
this year’s Global Brand Simplicity Index.
FocUs on
In every country we surveyed, with the In every country but China, Google
notable exception of India, Internet was seen as the most simple Internet
use exceeds the worldwide average search brand, dominating its category
of 30.2 percent of the population. It in stunning fashion. And even in China,
tHE UsEr
should be noted, however, that India’s where Google has faced issues ranging
comparatively paltry 8.4 percent, which from government censorship to claims
pulled down the worldwide average, of hacking, Google still plays host to
translates to more than 100,000,000 19 percent of the country’s searches—
users. (In Western countries, by the way, second only to China’s homegrown
ANDALL
about 80 percent of people are online.) Baidu, which respondents there found
to be the simplest.
It didn’t take much searching to come
up with a winner—Google far outpaced The industry’s impressive performance
its closest rival Yahoo! and a barely- speaks plainly and powerfully to the
ELSEWILL
there Bing. benefits of simplicity. Online advertising
revenues were up 10 percent from
Clearly, Google’s guiding principle:
Q3 2010 to Q3 2011 (excluding Asia),
“Focus on the user and all else will
bucking the economic anemia plaguing
follow,” has paid off and then some.
many, if not most, industries globally.
One of our survey respondents was
FOLLOW
particularly detailed in their appreciation,
saying: “Google’s programmes such
googlE rEigns:
as Gmail or YouTube are more intuitive
Google was seen as the most simple
to use than other similar programmes.
Internet brand in every country but
The design is not cluttered, and the
—googlE’s gUiding principlE China, where homegrown Baidu was
company seems to be constantly
found to be the simplest brand.
working to make their products better
and easier to use.”
25

26. Global Brand Simplicity Index: 2011
news media
There’s good news for news media in 2011 even in the bad news.
Consumers see the media—whether in in the U.S., BILD in Germany and
print, broadcast or online—as relatively DNA in India, claimed the top spots
simple, placing it 6th out of 25 industries for simplicity with readers citing clean
as compared to its 4th out of 20 finish online interfaces.
in 2010.
In the UK, the BBC—the world’s largest
For a market sector that has experienced broadcaster—was also the No. 1
a sea change in the way it conducts media brand when it came to simplicity.
business in recent years, that kind of Business news outlets such as the
consistency sends an affirming message. Financial Times (UK) and the Wall Street
Journal (U.S.) were considered the
Online news consumption, not surprisingly,
most complex.
continues its climb. Nevertheless, the
Even though online global view is that broadcast news is
the simplest way to consume news,
Social media also ranked very low as
a news channel. There were some
publications are which holds true across lines of gender, exceptions to the rule around the world:
on the rise, broadcast age, income, education and community
in virtually every part of the globe with
in the Middle East, where it ranked
3rd; and in India and China, where it
tV is still the simplest the notable exception of China, where
news aggregators come in first.
ranked 4th.
way to get the news. Online publications, by contrast, finish
tHE simplEst Way to gEt
second in most regions (except, again,
tHE nEWs:
in China) but show powerful potential
Those under 40 find online publications
when used in combination with other
to be the simplest way to get the news
media—particularly as it applies to
more than those over 40, for which
traditional print newspapers. When
broadcast TV is still the clear winner.
consumers were asked to rate individual
media brands, newspapers with an
online presence such as USA TODAY
26