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Key Lessonsover 11 years
#BrandZ100
#BrandZ100
Your hosts today
Peter WalsheGlobal BrandZ
Strategic Advisor
Doreen WangGlobal Headof BrandZ
@DoreenBrandZ
#BrandZ100
27,500reports downloaded
annually
100daily reports
300+annual studies
400 CATEGORIES
3mCONSUMERS
100kBRANDS
4.5bnDATA POINTS
50MARKETS
The largest brand platform worldwide
IS BIG DATA
4
#BrandZ100
BrandZ brand valuation ranking is the most authoritative, robust and unique; integrating primary and secondary data
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GLOBAL STANDARD
CUSTOMER FOCUS
CREDIBLE PUBLIC DATA
VALIDATED
#BrandZ100
BrandZ valuation process
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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 premiumSource:
STEP 1: Financial Value ($)Financial value created by a brand
#BrandZ100
Brand contribution derived from brand equity
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MEANINGFULConsumers feel an affinity for the brand or think it meets their needs
DIFFERENTFeels different from other brands or sets the trends for the category
SALIENTComes to mind quickly and readily when activated by ideas relating to category purchase
BRANDEQUITY
Brand contribution is the ability of a brand to deliver value share by predisposing consumers to choose the brand or pay more for it, based purely on perceptions
£ €$
¥
Buymore
Paymore
2016 Highlights Summary8
#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
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#BrandZ100
Strong brands generate superior shareholders’ return
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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
APRIL2007
APRIL2008
APRIL2009
APRIL2010
APRIL2011
APRIL2012
APRIL2013
APRIL2014
APRIL2015
APRIL2016
#BrandZ100
The Google Apple competition – Innovation is key
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No.1 $229bn+32%
No.2 $228bn
-8%
#BrandZ100
The Top B2B brand
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No.1 B2B brand
$122bn+5%
#BrandZ100
Facebook up to No.5 (+7 places)
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No.5 $103bn+44%
Up 1,756% since first ranked in 2010
#BrandZ100
Amazon fastest riser this year
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No.7 $99bn+59%
Up 1,554% since rankings began in 2006
#BrandZ100
% Value of Top 100
Fast growing markets increase
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Other Asia/AustraliaChinaUKContinental EuropeNorth 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%
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Lessons Over11 years
17 #BrandZ100
What makes a strong and valuable brand
BrandZ™ research behind the valuations shows that to be successful,
INNOVATION & DISRUPTIONis 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
(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%
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What sustains brand growth
(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)
Innovation Great BrandExperience Brand Love
Meaningfully Different
BrandPurpose
#BrandZ100
Innovation is a value creator
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Innovation
Mid third Innovation
Bottom third Innovation
Top third Innovation
+154%
+17%
+64%(95 common brands valued in both 2006 and 2016)
#BrandZ100
Most valuable brands 11 year growth
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Innovative
Different Shaking things up Creative
Top third on each metric +144% +142% +197%Bottom third +20% +67% +61%
#BrandZ100
A poor experience hinders growth
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Brand Experience+166%
-0.4%
+62%(95 common brands valued in both 2006 and 2016)Mid third
Brand Experience
Bottom thirdBrand Experience
Top thirdBrand
Experience
#BrandZ100
Most valuable brands 11 year growth
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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)
#BrandZ100
Love sustains value
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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
BrandZ™ research behind the valuations indicates that
APPEALING COMMUNICATIONS
can add value,
But…
only if they are supportingMEANINGFUL DIFFERENCE.
#BrandZ100
Communication & Brand – 11 year value growth
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High
High
Low
Advertising Appeal
MeaningfullyDifferent
Low
+19%
#BrandZ100
Advertising without Meaningful Difference adds little
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High
High
Low
Advertising Appeal
MeaningfullyDifferent
Low
+19%
+21%
#BrandZ100
A Meaningfully Different brand will grow
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High
High
Low
Advertising Appeal
MeaningfullyDifferent
Low
+19%
+21%
+82%
#BrandZ100
The sweet spot
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High
High
Low
Advertising Appeal
MeaningfullyDifferent
Low
+19%
+21%
+82%
+187%
#BrandZ100
The sweet spot
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High
High
Low
Advertising Appeal
MeaningfullyDifferent
Low
+19%
+21%
+82%
+187%
32 #BrandZ100
Innovationand Loveform a virtuous circle
#BrandZ100
Innovation can lead to Love
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High
High
Low
Innovation
LoveLow
#BrandZ100
11 years
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The value of
LOVE
INNOVATION drives success
BRAND EXPERIENCE
is key
#BrandZ100
The questions to ask
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How can you optimise the
Brand Experience?How can your
brand make peoples’ lives
better?Build
MEANINGFUL DIFFERENCE
#BrandZ100
To find out more
www.millwardbrown.com/brandZ
@ BrandZranking
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Email us:[email protected] [email protected]
Key Lessonsover 11 years
