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Welcome!. 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. WHAT IS ‘BRAND’?. CLOSE YOUR EYES!.
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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
WHAT IS‘BRAND’? CLOSE YOUR EYES!
Valuable brands haveSTRONG RELATIONSHIPS with consumersand are MEANINGFULLY DIFFERENT
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
All LatAm Top 50 LatAm Bonding More valuable brands have stronger relationships Advantage Performance Relevance Presence (6.977 brands)
Top 50 LatAm Top 50 Global Bonding LatAm compares favourably with Global brands Advantage Performance Relevance Presence
Top 50 LatAm Top 50 China Top 50 Global Bonding Advantage Performance Relevance Presence
Top 5 LatAm Top 5 Argentina Bonding Advantage Performance Relevance Presence
The POWER of the brand: Brand Contribution
Coca Cola Argentina Bonding Bonding only 51% Advantage Advantage only 25% Performance Relevance Presence
Coca Cola Argentina Customers % Value % Customers % Value % Bonding only 51 76 Advantage only 25 14 Performance/ Relevance/ 23 Presence 10 No Presence 1 0
Coca Cola Argentina 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
The Brand Contribution effect… = X X =
Brand Contribution effect: Example from Global Valuations
BRAND CONTRIBUTIONAVERAGE Interbrand value $28bn BRANDZ™ value $23bn Values very similar
BRAND CONTRIBUTIONLOWER Interbrand value $28bn BRANDZ™ value $13bn Interbrand fails to take account of lower Brand Contribution
BRAND CONTRIBUTIONHIGH Interbrand value $34bn BRANDZ™ value $183bn Interbrand fails to take account of high Brand Contribution
GLOBALBRAND VALUE BRANDZ™ $183BN BRAND CONTRIBUTION 4 BRAND CONTRIBUTION 3 Interbrand $34BN $16bn $9bn 2006 2012
STRONG BRANDS PERFORM BrandZ Global Valuations STRONG BRANDS 37.5% 0.4% S&P 500 APR 06 MAY 12
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)
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)
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)
Before we see some results… Let’s have a short QUIZ (5 questions)
Stand up please! If you get the answer wrong you will need to sit down again…
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
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 Argentina)? • Ford • Honda • VW
Q3. BRAND DIFFERENCE • Brands that are different can have an advantage over others. • Which one of these is rated most different (in Argentina)? • Apple iPhone • Nokia • Samsung
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 Argentina)? • Carrefour • Jumbo • Walmart
Q5. CHARACTER CLARITY • Brands that have a distinct and defined character tend to be stronger. • Which one of these has the clearest Character(in Argentina)? • Andes • Eki • Tai
Anyone still standing is a WINNER!
And brands that score well on these things will also be winners: Clear Character/Personality Recommendation by users Affinity/Desire/Popularity Trust Different
Combined value ($US) of Top 50 brands 1,845bn 311bn 136bn 60bn Global China LatAm Brazil
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
How countries differ (% value) Brazil Mexico Chile Colombia Argentina Financial 32 29 13 48 4 Telecoms 4 18 - 29 23 Retail 8 22 59 5 - B2B 21 4 12 18 66 Consumer Goods 26 27 2 - 7 Other 9 - 14 - -