By ANG SWEE HOON

EVERY year, consulting company Interbrand, with BusinessWeek, ranks the world's top brands based on how much they can earn. Over the years, the rankings have remained largely unchanged, except for some musical-chair swapping and the occasional entry of an emerging big player. Microsoft, Coca-Cola and IBM remain the stalwarts, occupying the top three positions in brand value. The only Asian brand in the top 10 last year was Toyota, at number six. Other top Asian brands include Honda (20th), Samsung (21st) and Sony (25th).

One of the more recent initiatives to enhance our own local brands is Get Singapore. It showcases Singapore brands as well-designed and of superior quality, and its 37 participants include Eu Yan Sang, I Nouvi, Kwanpen and Charles & Keith. Such initiatives are laudable, as they slowly, but steadily, help improve the image of local brands.

Building brand image or equity is critical not only for survival but also for long-term performance. A strong brand name serves to reduce consumer risk perception and signals implicitly that the brand stands behind its delivery of consistent quality. Consumers want to be assured that they get what they buy. A strong brand endows the company with unique associations that differentiate it from the competition and help it gain an edge.

Having said that, according to consulting firm Brand Finance, Singapore firms were among the hardest hit in Asia when more than $292 billion of intangible assets, which includes brand equity, were wiped out in 2008. The erosion of brand equity is a setback to establishing Singapore's international presence.

It appears that this erosion is not limited to smaller brands. Changi Airport, one of our world-class brands, has been beaten to third place by Korea's Incheon International Airport and Hong Kong International Airport. Granted, being in the top three is no mean feat, but it shows we cannot rest on our laurels. Competitors are perpetually nipping at our heels, so we cannot take things for granted. In the case of Changi airport, washroom cleanliness and security processing were apparently its Achilles heel.

Creative Technology, the other brand we often rely on as Singapore's representative in the international arena, has also faulted. Creative's success with Soundblasters did not extend to its MP3 players when up against the more marketing savvy Apple, even though Creative pioneered the MP3. It focused too heavily on product features that appeal to logic and ignored the emotions underlying a purchase. Creative did not understand what makes consumers buy one brand over another. Functional features may be a consideration, but there is an emotional side to the purchase and use. Young people want to feel hip and cool. Their products have to convey this. Indeed, world brands generally have a duality. They have product performance complemented by strong imagery to create a rich, favourable response from consumers.

Building brand equity therefore requires an intimate understanding of one's target market - what makes it tick, not only in a product but also the peripherals such as advertisements and accessories that support the product.

In the case of Apple, a hip and cool brand image extended from its sleek casing to its ads using black dancing silhouettes accompanied by a popular soundtrack. This singular focus on being cool amplifies its image. Further, an endorsement by Irish rock band U2 for a special edition was something the market identified with. In contrast, Creative had its special edition signed by its CEO. True, Creative has its cache of loyal customers - those who look more for functionality - but they are more a niche than the majority. To be a world brand, you need a large presence. Hence the need to appeal to a large audience.

Singapore Airlines was started from scratch in the 1970s, its iconic Singapore Girl is now an international hallmark. Indeed, world brands have focused positioning identified by a symbol that makes them easily recognisable. When people see the lady in the sarong kebaya, they associate her with above-par service. While SIA has done remarkably well in building its brand equity, a world brand also needs to be nimble to stay relevant. Just before the recession, SIA converted some of its Singapore-US flights to all business and first-class - an exercise that now appears irrelevant, given the economic conditions. A world brand does not shy away from self-examination and taking swift corrective action.

What can our smaller home-grown brands learn from their bigger counterparts in building brand equity?

First, put customers in the forefront. Companies need to know the pulse of the marketplace - they need to understand the logic and emotion, yin and yang, of their customers, and blend them into a holistic and relevant offering. This helps consumers to associate the brand meaningfully in their minds. What is this brand? What does this brand stand for?

Second, be focused and consistent. The positioning adopted should be translated consistently in most, if not all, matters involving the brand - its name, promotions and extensions, etc. -- to harness synergy and speak with one voice. World brands are not Dr Jekyll and Mr Hyde. Porsche, at one time, had a messy image. While on one hand, it was known for its German engineering, its promotion contained some risque innuendos. Was this a well-engineered car or one for pick-ups? In contrast, Volvo has consistently focused on safety as its differentiator.

Third, enhance brand awareness by making the image tangible wherever possible. The tangible aspect of SIA is not only the Singapore Girl but also the sub-brands it has. The in-flight entertainment is called KrisWorld, while its membership service is KrisFlyer. The consistent use of 'Kris' helps enhance brand awareness and recognition.

Fourth, consistently deliver on brand promises. Broken promises, even in minor matters, appear as a big blob - especially when competition is faultless. Changi Airport's less-than-clean toilets is a case in point. Not resting on your laurels is a credo to uphold.

Fifth, be nimble. While focused positioning is essential, a world brand must be aware of changing dynamics and be flexible to tweak its positioning to stay relevant to changing external circumstances.

Finally, while a strong brand is market driven, a world brand drives the market. Sometimes, consumers do not know what they want or what they are missing. Thinking ahead of consumers and offering them something they did not realise they could not do without is something brands should strive for. The classic example is Sony's Akio Morita. While in the US, Morita observed many Americans carrying huge heavy boomboxes on their shoulders, blasting loud music while sauntering along the beach or sidewalks, disturbing others while developing a shoulder ache. Yet, no one complained. They accepted the problems associated with the boombox and never thought there was a solution. Morita, thinking ahead of consumers, changed the face of the industry with the introduction of the Walkman. He drove the market.

Singapore brands should measure themselves on these yardsticks and ask themselves, 'Have I done enough?' Japan and Korea have broken through the once Western domination of world brands. One day, we will be there too.

Ang Swee Hoon is associate professor in the department of marketing at the NUS Business School

This article was first published in The Business Times.