BrandZ Top 100 Most Valuable Global Brands - Key Lessons over 11 Years
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Check out the slides from the series of BrandZ webinars we held on the 23rd June 2016 presented by Doreen Wang, Head of BrandZ, and Peter Walshe, Global BrandZ Strategy Director. In these webinars Doreen and Peter take you through the key findings from the BrandZ Top 100 Most Valuable Global Brands 2016 (http://www.millwardbrown.com/brandz/top-global-brands/2016) and share lessons for future brand building that we have learnt from looking in detail at over 100,000 brands over the last 11 years. To view a recording of the webinar please click here (http://www.millwardbrown.com/global-navigation/news/news-events/webinars/2016/brandz-global-2016), and if you are interested in finding out more about BrandZ or how these learnings could be applied to your brand please contact your local Millward Brown team.
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BrandZ Top 100 Most Valuable Global Brands - Key Lessons over 11 Years
- 1. Key Lessons over 11 years
- 2. #BrandZ100
- 3. #BrandZ100 Your hosts today Peter Walshe Global BrandZ Strategic Advisor Doreen Wang Global Head of BrandZ @DoreenBrandZ
- 4. #BrandZ100 27,500 reports downloaded annually 100 daily reports 300+ annual studies 400 CATEGORIES 3m CONSUMERS 100k BRANDS 4.5bn DATA POINTS 50 MARKETS The largest brand platform worldwide IS BIG DATA 4
- 5. #BrandZ100 BrandZ brand valuation ranking is the most authoritative, robust and unique; integrating primary and secondary data 5 GLOBAL STANDARD CUSTOMER FOCUS CREDIBLE PUBLIC DATA VALIDATED
- 6. #BrandZ100 BrandZ valuation process 6 X = STEP 3: Brand Value Source: STEP 2: Brand Contribution (%) Proportion of financial value generated by the brand’s ability to increase purchase volume and charge premium Source: STEP 1: Financial Value ($) Financial value created by a brand
- 7. #BrandZ100 Brand contribution derived from brand equity 7 MEANINGFUL Consumers feel an affinity for the brand or think it meets their needs DIFFERENT Feels different from other brands or sets the trends for the category SALIENT Comes to mind quickly and readily when activated by ideas relating to category purchase BRAND EQUITY Brand contribution is the ability of a brand to deliver value share by predisposing consumers to choose the brand or pay more for it, based purely on perceptions £ € $ ¥ Buy more Pay more
- 9. #BrandZ100 Values increase in 2016 • The combined brand value of the BrandZ™ Global Top 100 grew from $3.3 trn to $3.4 trn from 2015 to 2016, an annual growth rate of 3% • The combined brand value of the Global Top 100 has grown by 133% since 2006 9
- 10. #BrandZ100 Strong brands generate superior shareholders’ return 10 105.9% 60.7% 20.1% BrandZ™ Strong Brands Portfolio vs. S&P 500 vs. MSCI World Index (Apr 2007 - Apr 2016) BrandZ™ S&P 500 MSCI APRIL 2007 APRIL 2008 APRIL 2009 APRIL 2010 APRIL 2011 APRIL 2012 APRIL 2013 APRIL 2014 APRIL 2015 APRIL 2016
- 11. #BrandZ100 The Google Apple competition – Innovation is key 11 No.1 $229bn +32% No.2 $228bn -8%
- 12. #BrandZ100 The Top B2B brand 12 No.1 B2B brand $122bn +5%
- 13. #BrandZ100 Facebook up to No.5 (+7 places) 13 No.5 $103bn +44% Up 1,756% since first ranked in 2010
- 14. #BrandZ100 Amazon fastest riser this year 14 No.7 $99bn +59% Up 1,554% since rankings began in 2006
- 15. #BrandZ100 % Value of Top 100 Fast growing markets increase 15 Other Asia/Australia China UK Continental Europe North America 2006 2016 $2,318.2bn (51 Brands) $2,318.2bn (51 Brands) $367.1bn (18 Brands) $402.4bn (15 Brands) $171.5bn (11 Brands) $912.7bn (54 brands) $303.0bn (29 Brands) $68.7bn (6 Brands) $39.2bn (1 Brand) $120.6bn (10 Brands) $101.1bn (5 Brands) +42% +927% +47%% +21% +154%
- 17. #BrandZ100 What makes a strong and valuable brand 17 BrandZ™ research behind the valuations shows that to be successful, INNOVATION & DISRUPTION is at the core: Brands need to have a recognisable point of DIFFERENCE, this Difference needs to be MEANINGFUL, and that Meaningful Difference to become SALIENT The most Different, Meaningful and Salient brands have the best FUTURE POTENTIAL GROWTH
- 18. #BrandZ100 What makes a brand GROW 18 (167 common brands valued in both 2015 and 2016) Being a Meaningfully Different brand adds value Mid third Potential Bottom third Potential Top third Potential +5% -1% -2%
- 19. #BrandZ100 What sustains brand growth 19 (95 common brands valued in both 2006 and 2016) Mid third Potential Bottom third Potential Top third Potential +200% +31% +93% Being a Meaningfully Different brand sustains value
- 20. #BrandZ100 What is the pathway to success for brands? (Learnings from BRANDZ) 20 Innovation Great Brand Experience Brand Love Meaningfully Different Brand Purpose
- 21. #BrandZ100 Innovation is a value creator 21 Innovation Mid third Innovation Bottom third Innovation Top third Innovation +154% +17% +64% (95 common brands valued in both 2006 and 2016)
- 22. #BrandZ100 Most valuable brands 11 year growth 22 Innovative Different Shaking things up Creative Top third on each metric +144% +142% +197% Bottom third +20% +67% +61%
- 23. #BrandZ100 A poor experience hinders growth 23 Brand Experience +166% -0.4% +62% (95 common brands valued in both 2006 and 2016) Mid third Brand Experience Bottom third Brand Experience Top third Brand Experience
- 24. #BrandZ100 Most valuable brands 11 year growth 24 Brand Experience Meets Needs Better Online Unique Make lives better Top third on each metric +187% +133% +160% +147% Bottom third +23% +37% +66% +42% (Brand Purpose)
- 25. #BrandZ100 Love sustains value 25 Brand Love Mid third Love Bottom third Love Top third Love +182% +22% +52% (95 common brands valued in both 2006 and 2016)
- 26. #BrandZ100 Communication & Brand 26 BrandZ™ research behind the valuations indicates that APPEALING COMMUNICATIONS can add value, But… only if they are supporting MEANINGFUL DIFFERENCE.
- 27. #BrandZ100 Communication & Brand – 11 year value growth 27 High High Low Advertising Appeal Meaningfully Different Low +19%
- 28. #BrandZ100 Advertising without Meaningful Difference adds little 28 High High Low Advertising Appeal Meaningfully Different Low +19% +21%
- 29. #BrandZ100 A Meaningfully Different brand will grow 29 High High Low Advertising Appeal Meaningfully Different Low +19% +21% +82%
- 32. #BrandZ10032 Innovation and Love form a virtuous circle
- 33. #BrandZ100 Innovation can lead to Love 33 High High Low Innovation LoveLow
- 34. #BrandZ100 11 years 34 The value of LOVE INNOVATION drives success BRAND EXPERIENCE is key
- 35. #BrandZ100 The questions to ask 35 How can you optimise the Brand Experience? How can your brand make peoples’ lives better? Build MEANINGFUL DIFFERENCE
- 36. #BrandZ100 To find out more www.millwardbrown.com/brandZ @ BrandZranking 36 Email us: Doreen.wang@millwardbrown.com Peter.walshe@millwardbrown.com
- 37. Key Lessons over 11 years
Hinweis der Redaktion
- DOREEN: Welcome to the BrandZ learning session! My name is Doreen Wang, Global Head of BrandZ. For the next 45mins, we will show you what we have found from looking in detail at the 100,000 brands we have researched over the last eleven years. Not only we look at their dollar values and changes, but more importantly, consumers’ impression and ratings – what are the drivers behind brand value growth and what are the implications and lessons for future brand building. Before I start this webinar there are a few housekeeping points that I would like to make you aware of. If you have any questions please use the ‘ask a question’ box below this presentation and someone will respond to your questions after the webinar. Please also feel free to tweet us during the webinar using the BrandZ hashtag ‘BrandZ100’ that you will see throughout the presentation at the bottom of the slides. We would love to hear your thoughts.
- DOREEN Two weeks ago on June 8th, we launched BrandZ Top100 Most Valuable Global Brands for the 11th year. Big congratulations to the most valuable brands and the category winners. I did some calculation, winning the global top100 out of the 100,000 brands we’ve researched, is statistically more difficult than winning the academy awards! It’s you, the brand owners and agency partners’ commitment, dedication and hard work which devleoped the most valuable brands – these are the most valuable brands in the minds and hearts of the customers!
- DOREEN: Let me introduce you to my co-hosts today. Peter Walshe, Chief Strategic Advisor to BrandZ who has mined the database and conducted the analyses for today.
- DOREEN: BrandZ is the largest brand equity platform worldwide, in the past 11 years we’ve researched 100,000 brands across 50 country markets. Different from the other rankings, which estimate brand value from “expert panel”, BrandZ is the most consumer focused valuation, we interviewed 3 million consumers worldwide to hear their perspectives on how meaningful the brands in consumers’ lives, how different from the competitors and salient in market.
- DOREEN: BrandZ is the most authoritative and robust ranking system, marrying primary and secondary consumer data. First, brandZ uses the global standard, the same methodology being applied for brands across the world, which enables us not only value established global brands but also identify fast-growing new disruptive innovators. Second, BrandZ takes the most customer focused approach: from deep-diving customers’ perspective toward brands, we calculate brand power – how strong the brand is now, but more importantly brand potential – how much the brand will support the future business growth. Third: BrandZ uses credible public data by using Bloomberg’s financial data and Kantar worldpanel and Kantar retail behavioural data. Last but least, as the largest brand equity platform, validation against financial market performance is critical. BrandZ has been validated by the financial stock market over the past 11 years.
- DOREEN: BrandZ valuation process: two steps: Step 1: Financial Value created by a brand – separate branded earning from the overall corporate earning Step2: calculate brand contribution based on BrandZ consumer research – proportion of financial value generated by the brand’s ability to increase purchase volume and charge premium. Financial value combined with brand contribution gets the final brand value. Peter, can you please share more on the brand contribution? (PETER FOR THE NEXT CHART)
- PETER: Brand Contribution is unique to The BrandZ valuation system. A few, validated, simple brand equity questions establish how much the brand is in the mind of the consumer in terms of creating PRE-DISPOSITION to choose the brand or to pay more for it. Three key factors emerge, each of which can drive pre-disposition, but combined create the strongest brand equity: MEANINGFUL which is a combination of Meeting Needs and Affinity (or Love/hate towards the brand) DIFFERENT being Unique in a positive way and Setting Trends (for the benefit of the consumer) And being SALIENT, coming to mid spontaneously as the brand that is the answer. The Brand Contribution percentage sums up the proportion of the value that is due entirely to what the brand stands for in the mind of the consumer. THEN HAND BACK TO DOREEN
- DOREEN: Some highlights about the 2016 BrandZ global result. THIS YEAR HAS SEEN SOME DRAMATIC SHIFTS. FIRST OF ALL…
- DOREEN: The top100 brand value increase 3% in total (which is a slowdown reflecting the oil price, low interest rates and challenging conditions in many developing markets). It may have a been a difficult year across the Globe, but strong and valuable brands have fared well! The top100 total value is $3.4trillion which is equivalent to the GDP of Germany, the 4th largest economy in the World!
- DOREEN: One key theme from BrandZ over the past 11 years: Strong brands generate superior shareholders’ return. If you invest 100 dollars on BrandZ top100 in 2006 – the blue line, the return in 2016 is $105; The benchmarks are the pink and yellow lines – the S&P 500 ($61) and the MSCI World Index ($21). The return in investing strong brands almost doubled S&P 500 and 5 times as MSCI index. During the economic downturn (08’ and 09’), both strong and average brands dropped share price significantly, however it only took the strong brands half year versus the average brands 3 years to recover to the original level. As you can see from this financial performance chart, marketing and brand building are not cost, it is the most important investment to ensure company’s long-term and sustainable financial success for any company.
- DOREEN: So what about this year’s MOST VALUABLE BRANDS? The Google/Apple battle continues. They have switched places again but the gap in value is the smallest ever at 0.3%. Google has had a great year with investment in the Cloud paying off whilst Apple has not revealed any significant innovations as yet (in spite of a recent $1bn investment in China ride-sharing platform Didi Chuxing). BrandZ data shows that both brands provide a great experience but that Google has overtaken Apple in terms of brand Love.
- DOREEN: In the past few years, we’ve observed that the B2B brands start to pay more and more attention on brand building. This is the first year, we partner with LinkedIn and launched the global top 20 most valuable B2B brands. Microsoft is No.1, In the B2B space Microsoft is extremely successful (and increasingly overlapping the consumer space). Its longer term grown has been good (+96% over eleven years) but nowhere near Google (+512% 5 times) or Apple (+1,330%, 13 times) Microsoft is a very ‘Wise’ brand according to the BrandZ research and is hugely trusted. Consumers also think it is positively ‘shaking things up’
- DOREEN: And for the first time Facebook enters the Top 10, up 44% on value from last year (one of our Top Risers) with massive growth in the six years since it entered the Rankings in 2011. Capitalising on mobile (77% of its revenue is from Mobile advertising) is the key driver. Monthly active users continue to increase and reached 1.6bn recently (to give you a feeling of how many this is, if Facebook was a country, it would be the biggest in the World, even larger than China and India.). This brand is really top of mind. It attracts lots of love and is thought to be ‘making peoples’ lives better’ as well as ‘leading the way. And it’s brand personality is delivering ‘fun’.
- DOREEN: Amazon is the fastest riser this year. for a brand that began in a backyard Garage 22 years ago, not a bad progression! Into the Global Top 10 for the first time, the fastest riser this year (up +59% in value). The year saw Amazon expand its reach into the logistics sector by shipping its own packages. It also extended the brand experience to include new technology devices that cater for consumers’ personal needs at home, building on last year’s introduction of Amazon Dash, automated replenishment buttons for key FMCG items. And it continues to innovate and offer new services. Amazon is a massively Different brand and because of this consumers rate it as having great future Potential. The on-line experience is particularly highly rated.
- DOREEN: The dramatic change over eleven Years indicates that North America has grown slightly ahead of the Top 100 as a whole, but the rise of the East (and China specifically by over nine hudred percent) means that the future will be very different. Over the past 11 years, we observe that brand power is gradually moving from Europe to Asia. With the rise of local brands from China, India, and other emerging markets, many of these local brands start to take share from global players. With their globalization journey, they will gradually change the competitive landscape at the global level. (may finish on Doreen mentioning example brands)
- DOREEN: 11 Years, We have one question in mind - what are the drivers behind those fast-growing brands? How could the other brands learn from them? 11 Years of brand research and valuation, there are a few lessons we’d like to share with the global marketers. Over to Peter Walshe
- PETER: Thanks Doreen….
- PETER: So lets look at the Potential measure that we saw last year and how it predicts success. These are the 167 common brands that we have values for across the Top 100 and Categories Rankings in BOTH 2015 and 2016. We can look at the percentage change in Brand Value. In 2015 the top third with the best Potential scores grew significantly more over the year than the other two groups. Being MEANINGFULLY DIFFERENT TODAY MEANS THAT THE CHANCES OF SUCCESS TOMORROW ARE MUCH HIGHER
- PETER: But what is even more impressive is the longer term effect of having a strong brand. There are 95 brands in common from 2006 that were also valued this year. Those with a high Potential score back in 2006 grew 200 percent, which is twice that of the middle group , which in turn is three times the bottom group. Being Meaningfully Different really pays off.
- PETER: So what is the pathway we have seen for successful brands? BRANDZ data shows us that brands that challenge the status quo, or maintain their leadership by continually refreshing what they offer to ensure they, and they alone, are the most MEANINGFULLY DIFFERENT to their key consumers are the ones that grow most and fastest. When an innovation is heard about, or talked about, as long as the resulting brand experience is at least as good as promised (and preferably even better!), the brand develops love. This love is particularly deep if the Experience has Brand Purpose (making peoples’ lives better) at its centre. The resulting love then sustains the brand until the next innovation comes along. Crucially, these are all steps to be MEANINGFULLY DIFFERENT.
- PETER: This shows just how influential a perception of Innovation is. (I will show you what goes into our measurement of Innovation shortly.) The 95 brands that we have values for eleven years ago in 2006 and today in 2016 split into the top third perceived to be the most Innovative today – and they have grown in value 9 times the bottom third. Innovating and disrupting is the path to greater riches provided the innovation is perceived by the relevant target audiences and it is MEANINGFULLY Different to them.
- PETER: The ingredients of Innovation – and note that an innovation is not an innovation unless it is PERCEIVED as so. Without getting noticed and connected to a brand, Innovation does not count! A large R&D budget helps, but it must result in something that is meaningfully different for the target audience. DIFFERENCE makes a difference – as with the other ingredients the brands that score top vastly out grow and increase in value over 11 years compared to those at the bottom. NIKE and ROLEX both have this advantage. Rolex – amid the change in consumption pattern of watches and the rise of smartphone and wearables, Rolex retains its very different status which moves it away from a timepiece to an investment piece. And consumers like it being so different Nike – growing by introducing “personalised performance” through breakthrough innovation in more sustainable materials in apparels. Footwear with adaptive lacing. Personalised service for athletes through Nike + app. These innovations make it different in such a positive way. PETER: The second aspect ‘Shaking things up’ or disrupting has a similar significant effect on value growth. And a brand that typifies this is Tesla The premium electric car brand has just entered the world’s top 10 most valuable car brands for the first time, just over a month after entering the mainstream car market with its more affordable $35,000 Tesla 3. Moreover, Tesla is using the same retailing model as Apple: selling directly to customers. Rather than to go to a dealership, you can order a Tesla's car online or visit a company-owned showroom. It has a reputation that goes before it, similar to those that Apple and Facebook exhibited in their early days. Led by a charismatic leader (CEO Elon Musk) with a clear and purposeful vision, the brand is poised for a great future. And Aldi is taking many markets by storm. Aldi is the leader on the discounters channel globally. The brand continues to expand internationally: Australia, UK and USA are its fastest growing markets. And it is evolving as it gradually shifts to softer discounting. The brand has started restructuring and modernising its stores to make them more appealing for the customers. And the CREATIVE way in which change occurs is a consumer motivator. DOREEN… DOREEN: Huawei, telco provider, a consistent disruptor over the past decade! Successfully stepping up from a traditional B2B brand to consumer-facing brand in 170 countries. Consumers say that “is exciting to see what Huawei will do next”. Behind Huawei’s success is cost-effective but also super innovative products, plus the digitalized and localized global communication platform. Adobe, a newcomer to our Top 100 this year, has become significantly more meaningful as its software products in the Cloud gain more and more subscribers and is one the top rated brands for being ‘creative’.
- PETER: BRAND EXPERIENCE. Millward Brown research over the years has shown that brand image does not change significantly until people TRY a brand. They may well hear the message from advertising and communications and be able to replay what it is, but they won’t BELIEVE it until they experience. A new BrandZ Brand Experience metric has been created which shows the importance of a good experience – if its poor brand value tends to be LOST, and big gains in value if it is great.
- PETER: All the components of Experience contribute individually to growth if they are positive. Meeting Needs may sound like a basic requirement, but if you do it exceptionally well the consumer will reward you. Housing remains a bright spot in the US economy and consumers are increasingly redirecting spending to invest in their homes. The Home Depot saw impressive growth because of best-in-class execution shown by (i) its increase in apartments seasonal décor share and (ii) the new Pro-line driving significant sales and a bit of luck in (iii) warmer weather allowing consumers to complete an above-average number of outdoor projects. Microsoft, which we mentioned at the beginning, is also delivering what’s needed for both the B2B and B2C markets, and although it has not impacted these results, the recent acquisition of LinkedIn betrays its future intent. Doreen, tell us about the online experience brands: DOREEN: Online is becoming a critical part of brand’s total experience. Tesco seems to have turned a corner, dramatically reducing its losses this year, partly thanks to its leading online delivery service in the UK. But further afield in China, JD.com the largest B2C e-commerce platform in China, has grown sensationally in the past 5 years. JD.com partner with Tencent WeChat system and realize the dream of combining social and e-commerce into one stop shop. Those brands, who are perceived by the customers as delivering Unique brand experience, have achieved value growth 3 times higher than those who are not. The UNIQUENESS story is very clear when you see a brand such as Porsche scoring so highly. A courageous brand that does not stand still in spite of previous and on-going success. New unique models with the desirable badge attract a fabulous price premium. Moutai, Chinese luxury liquor is a brand that has been unfortunately associated with bribery and corruption of top officials (but it has such a unique and premium product). It has reinvented itself with a more medium priced offering and established a new audience. Now you can find the brand in trendy bars in London and Manhattan. As you can see, successful brands are able to reinvent great experience in a meaningfully different way to a wider target group. Last but not least “brand purpose” It can be argued that Brand Purpose is the foundation of everything - Innovation, Experience, Communication. And indeed when it is intergrated and linked to Experience as in our model above it is particularly influential. Pampers may not have done so well recently as its price premium is being challenged in some key emerging markets, but the brand has very strong Purpose – perceived to make people live better. its concern with the wellbeing of the new generations are felt to be beyond profit for many consumers. Also in tune with the modern World is PayPal providing an easy simple and hugely safe and reliable service for money transfer and payments. The brand is synonymous with helping consumers, also geared up for the increasing shift to MOBILE commerce with its new OneTouch system. All these brands put their consumers at the centre and are making things more frictionless and seamless to cope with the speed and demands of modern life. Peter…
- PETER: Thanks Doreen. The last but by no means least part of the value equation is that of Brand Love. You see the figures and the power of love. Brands can’t survive on love alone. But love has a multiplier effect. Brands that are loved by consumers increase more rapidly in brand value – and the impact is substantial. Love measures the emotional affinity of a brand. It’s not simply about making the brand warm and friendly, although that’s fine, if it’s genuine. Rather, love usually follows great performance. Loved brands exist in partnership with their customers and try to understand the world from the customer’s point of view In a category where there is little separating products in a functional sense, a brand that is more lovable is more likely to be chosen. AND avoid giving consumers any reason to dislike your brand, especially if your brand is new, or new to a market. Doreen: DOREEN Red Bull is a polarising brand – but its fans really do love it. And this is a key lesson. Don’t try to expand your appeal by watering down what you stand for. Better to concentrate on what makes you uniquely and meaningfully different. Google, our number one brand this year, has translated its many consumer friendly developments into a more lasting love, so that it now outscores Apple. It has the answers, it helps, its so easy to use. Consumers are waiting for the new and unknown to come from Google - virtual reality is one to watch. Back to Peter…
- PETER: Thanks Doreen. Last year we looked at the relationship between appealing advertising (in the eyes of consumers as measured on BrandZ) and the ‘Proposition’ of the brand. This year we have slightly refined the ‘proposition’ part to analyse brands that are strong on being Meaningfully Different (an average of those two factors). The key insight is that appealing communications on their own are not greatly effective in driving brand value. They need to link and enhance what is meaningfully different about the brand.
- PETER: We split the SAME 95 brands that we have values for 11 years ago and today. They fall into the quadrants shown on the chart. In the bottom (low/low) quadrant the average change in brand value for those brands was only +19%.
- PETER: When we look at those with appealing advertising (but not very meaningfully different as a brand) the increase is only marginally more (+21%). Advertising without substance or relevance does not work very well.
- PETER: But when Meaningful Difference is high, even though the communications are not greatly loved, growth is impressive.
- PETER: However the sweet spot of relevant, interesting, meaningfully different supporting, communications is a value multiplier. Nearly 10 times that of the lowest quadrant.
- PETER: Amongst those brands is our fastest riser this year: Amazon. And others include Coca-Cola, Colgate, Microsoft and Samsung. These tend to be loved and innovative brands that provide a great brand experience – they are meaningfully different.
- PETER:Love and innovation go together like food and wine. They separately drive brand value growth. Love provides the cushion till the next creative development wave. But together they form a virtuous circle that balances brands with qualities that help ensure long-term survival and success. Even the most trend-setting brands experience swings between periods of intensive innovation and periods of iterative progress. Love provides the forgiveness necessary when a brand’s cycle of creative development is out of sync with consumer expectations.
- PETER: You see there is a good correlation between Innovation and Love – but actually Love tends to FOLLOW Innovation – it is often an outcome. The Top Right brand is IKEA. The ability to drive seamless multichannel strategies is a key factor behind the success of many of the brands that have grown their value in this year’s Retail Top 20. This is a process that will have to continue as the sector adapts to a consumer audience that no longer distinguishes between shopping on and off-line and expects the same brand experience and quality of service in all channels. Over the next five years, successful retail brands will have to respond to these demands by reducing friction in the online world, improving delivery times as well as creating physical environments that are as much about retail theatre as selling. IKEA is one of the brands that understands the importance of this, with plans to significantly expand its e-commerce business and improve the logistics of delivering goods to customers to build an online business with a strong service and distribution offer that seamlessly links with its physical estate. Then you see Apple which seems to be in a fallow period of innovation (although Tim Cook the CEO has promised major innovation this year) – it still has a good perception of Innovation but Love could be higher. Google, on the right, in contrast, is not seen as quite so innovative but is massively loved. Marlboro, Disney and Starbucks are all strong with a good balance of the two. And so as we are running out of time, for the final word to sum up what we have seen: Doreen
- DOREEN: Thank you Peter. You must be curious where your brand stands on each of these lessons versus the competitors, but more importantly compared to top performers beyond your category. We are happy to customize this deck based on your needs. Please contact one of us or your local Millward Brown contact to discuss this further. We have shown you the power of INNOVATION The ability to set trends is a key differentiating factor for a brand. A trend-setting brand is Different. Trend-setting brands are pro-active, not reactive. To be a trendsetter is to anticipate the directions your customers will want to go in, and then get there first. Getting out in front is risky; mitigate that risk by knowing your customers well. LOVE In a category where there is little to separate products on functional sense, a brand that is more lovable is more likely to be chosen. In the digital era, just being warm or nice are good, but not enough. More importantly, Love is being genuine, transparent, and deliver the promise. As peter said earlier, love follows great performance. And think how you can continue to surprise and delight with iterative innovation on product and communications. The focus on how consumers EXPERIENCE your brand comes from all the interactions and connection points, from communications and recommendation and social media. The more these can emphasise what is different about your brand in a positive way, the more likely your brand will be chosen above others.
- DOREEN: Looking at the future, in order to grow our brand value in the digital era, three key questions we need to ask ourselves as marketers; Think deeply and strive to see just how your brand can make your consumers lives better, easier, and fit in to what they need. What purpose does it have beyond profit? In what way would the customers be worse off without it? The brand should make a difference in however small a way to lives. 2. Deliver on the expectations created by brand marketing and depend on marketing communication to focus attention on the positive aspects of brand experience. Deal with any complaints promptly, transparently and honestly. Speed is the key. 3. Build meaningful difference: Create deeper meaning with a positive and repeated brand experience that is in some way different.
- Thank you for attending this Webinar. To find out more, you are highly welcome to download the BrandZ app, download the 2016 global BrandZ report from millwardbrown.com; talk to us on twitter, and feel free to email me and Peter. Once this webinar ends you will be asked to rate the webinar and leave a comment. Please let us know your thoughts and if there are any other topics you would like to hear about from the BrandZ team. Finally, please take a look at this year’s Report and BrandZ materials on our website, using the links in the ‘attachments’ tab under the slide. Thank you again and goodbye from Peter and myself, Doreen.