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Peter Walshe BrandZ Global Director Millward Brown

Peter Walshe BrandZ Global Director Millward Brown. Let’s start with a short description of the most rigorous brand valuation method in the World. X. =. Financial Value. Brand Contribution. Brand Value. The secret ingredient. X. =. Financial Value. Brand Contribution. Brand Value.

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Peter Walshe BrandZ Global Director Millward Brown

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  1. Peter Walshe BrandZ Global Director Millward Brown

  2. Let’s start with a short description of the most rigorous brand valuation method in the World

  3. X = Financial Value Brand Contribution Brand Value

  4. The secret ingredient X = Financial Value Brand Contribution Brand Value

  5. WHAT IS‘BRAND’? “A strong brand is not the same as a business or a trademark. A brand – global or local - derives its value from creating a strong relationship with consumers.”

  6. WHAT IS‘BRAND’? Cierralos ojos!

  7. DONOT THINK OF…

  8. Valuable brands haveSTRONG RELATIONSHIPS with consumersand are MEANINGFULLY DIFFERENT

  9. The Brand Relationship is like dating… Now a very strong relationship Bonding A strong liking is developing Advantage The first date goes well Performance At first you are cautious Relevance Relationships start with awareness Presence

  10. All LatAm Top 50 LatAm Bonding More valuable brands have stronger relationships Advantage Performance Relevance Presence (6.977 brands)

  11. Top 50 LatAm Top 50 Global Bonding LatAm compares favourably with Global brands Advantage Performance Relevance Presence

  12. The POWER of the brand: Brand Contribution

  13. Coca Cola LatAm Bonding Bonding only 50% Advantage Advantage only 26% Performance Relevance Presence

  14. Coca Cola LatAm Customers % Value % Customers % Value % Bonding only 50 72 Advantage only 26 17 Performance/ Relevance/ 23 Presence 10 No Presence 1 0

  15. Coca Cola LatAm These people account for the vast majority of sales because they are more loyal to the brand. Bonding Advantage Performance Relevance Brand Contribution Percentage Presence

  16. The Brand Contribution effect… = X X =

  17. Brand Contribution effect: Example from Global Valuations

  18. BRAND CONTRIBUTION AVERAGE Interbrand value $28bn BRANDZ™ value $23bn Values very similar

  19. BRAND CONTRIBUTION LOWER Interbrand value $28bn BRANDZ™ value $13bn Interbrand fails to take account of lower Brand Contribution

  20. BRAND CONTRIBUTION HIGH Interbrand value $34bn BRANDZ™ value $183bn Interbrand fails to take account of high Brand Contribution

  21. GLOBALBRAND VALUE BRANDZ™ $183BN BRAND CONTRIBUTION 4 BRAND CONTRIBUTION 3 Interbrand $34BN $16bn $9bn 2006 2012

  22. What about investing your money in strong Brand Contribution?

  23. STRONG BRANDS PERFORM BrandZ Global Valuations STRONG BRANDS 37.5% 0.4% S&P 500 APR 06 MAY 12

  24. What drives Brand Contribution? Global LatAm Local Top 50 Top 50LatAm Popularity 302 208 117 Affinity 192 139 86 Difference 107 42 90 Price 3520 210 Source: BrandZ (Index Average = 100)

  25. What drives Brand Contribution? Global LatAm Local Top 50 Top 50LatAm Popularity 302 208 117 Affinity 192 139 86 Difference 107 42 90 Price 3520 210 Source: BrandZ (Index Average = 100)

  26. What drives Brand Contribution? Global LatAm Local Top 50 Top 50LatAm Popularity 302 208 117 Affinity 192 139 86 Difference 107 42 90 Price 3520 210 Source: BrandZ (Index Average = 100)

  27. Top Brands are more trusted, recommended and more desirable GlobalLatAmChina Top 50Top 50Top 50 Trust 105 104 110 Recommendation 104 102 106 Desire 112 112 110 Source: BrandZ (Index Average = 100)

  28. Character of Top Brands Global LatAmChina Top 50Top 50 Top 50 In Control 109Friendly 106Wise 108 Assertive 107Kind 105In Control 107 Creative 105Generous 104Friendly 105 Source: BrandZ (Index Average = 100)

  29. Before we see some results… Let’s have a short QUIZ (5 questions)

  30. Stand up please! If you get the answer wrong you will need to sit down again…

  31. Q1. BRAND CONTRIBUTION • Some brands generate more than their fair share of financial value because the brand contributes so much. • Which one of these has the greatest Brand Contribution (in Argentina)? • Guinness • Heineken • Quilmes 

  32. Q2. BRAND TRUST & RECOMMENDATION • Brands that are BOTH trusted by all and recommended by their users have heritage and contemporary relevance. • Which one of these has the greatest TrustR(in Brazil)? • Allianz • Porto Seguro • Sul America 

  33. Q3. BRAND DIFFERENCE • Brands that are different can have an advantage over others. • Which one of these is rated most different (in Colombia)? • Bing • Taringa • Wikipedia 

  34. Q4. BRAND DESIRE • Brands that create desire tend to justify their price premiums and can generate greater profits. • Which one of these has the greatest Brand Desire(in Mexico)? • Banamex • Mexicana de Aviacion • Telmex 

  35. Q5. CHARACTER CLARITY • Brands that have a distinct and defined character tend to be stronger. • Which one of these has the clearest Character(in Chile)? • Chrysler • Ford • Toyota 

  36. Anyone still standing is a WINNER!

  37. And brands that score well on these things will also be winners: Clear Character/Personality Recommendation by users Affinity/Desire/Popularity Trust Different

  38. How brands drive value growth Define Meaningfully Different Experience Value Growth Amplify

  39. Brand Contribution Meaningfully Different get more sales because of brand Different 168 Source: LatAm 1,340 brands 2010-2011 (Average = 100) Meaningful

  40. Brand Contribution Meaningfully Different get more sales because of brand Different 93 121 168 76 129 109 104 53 78 Source: LatAm 1,340 brands 2010-2011 (Average = 100) Meaningful

  41. Meaningfully Different All brands LatAm 30% All brands worldwide 30%

  42. Meaningfully Different Local brands LatAm 27% International brands LatAm 32%

  43. Meaningfully Different 67% LatAm Top 50 68% Global Top 50

  44. And now, the most valuable brands…

  45. Combined value ($US) of Top 50 brands 1,845bn 311bn 136bn 60bn Global China LatAm Brazil

  46. Now, it really is time to reveal the most valuable brands

  47. Top brand in each country

  48. Contribution of countries(% of $US brand value in Top 50) Number in Top 50 Brazil 14 Mexico 13 Chile 12 Colombia 8 Argentina 2 LatAm 1

  49. How LatAm compares (% value) LatAm China Global Financial 25 43 13 Telecoms 19 22 15 Retail 19 3 5 B2B 18 8 13 Consumer Goods 16 10 20 Technology - 11 27 Other 3 3 7

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