by David Roth
In 2015, it will be 10 years since the first BrandZ Top 100 Most Valuable Global Brands study was conducted. A lot has happened in the world since then, with change being the only constant.
Since the first global brand valuations, the number of studies has increased. The BrandZ brand valuation suite now includes: The BrandZ Top 100 Most Valuable Chinese Brands, The BrandZ Top 50 Most Valuable Latin American Brands and The BrandZ Top 50 Most Valuable Indian Brands.
What makes the BrandZ valuation methodology so definitive and uniquely distinguished from its competitors is the BrandZ™ valuation methodology. This is the only brand ranking that uses consumer data to establish every single brand contribution. Brand Contribution is a vital component of a brand valuation as it measures the influence of brand alone on earnings.
We do this using the world’s largest brand analytics big data: the unique and proprietary WPP BrandZ study. Conducted worldwide, it is ongoing, in-depth quantitative consumer research that builds a global picture of brands on a category-by-category and country-by-country basis.Globally, our research covers 2.2 million consumers and more than 10,000 different brands in over 30 countries.
The uniquely consumer-facing BrandZ™ methodology combines this extensive consumer research with rigorous financial analysis to create the BrandZ valuation methodology by Millward Brown.
The BrandZ big data also gives us the unrivalled ability to look across the world and see the trends and influences that shape brands and consumers’ relationships with them. Fusing this with the data and observations from the brand valuation studies generates some fascinating and actionable insights.
Whilst there are undoubtedly differences between regions and individual countries, perhaps the most obvious difference with the valuation data in LatAm, compared to all the other studies across the world, is the strength of the LatAm beer and retail categories in the valuations. We do not see this anywhere else. (And I am deeply envious, both as a beer drinker and someone who also runs the WPP Global Retail practice).
But… there are many more similarities than differences in the direction of travel of consumers and brands right across the globe.
So here, as a taster, are five insights:
1) Deliver sensational value
Brands that deliver sensational value are brands that are increasingly winning in the world. Consumers want a strong value proposition and brands that
over-deliver in this are being rewarded.
2) Help the consumer feel smart
Brands that are passionately on the side of their consumers and work with them to make them feel and act smart are disproportionally valued.
3) Study the young; view the future
Young people desire the newest and shiniest products and they’re more likely to purchase them. They’re also less risk adverse and more open to trial, yet more difficult to satisfy and less brand loyal.
Millennials represent 50% of the global workforce now, but 75% in around 10 years.
They increasingly have a different mindset in their relationship with brands, one that is less transactional and more involving. “If I spend my money on a brand, I’m voting for that company, and I want to be treated the same way as if I bought stock in that company.”
4) Get social and mobile
Brands that don’t embrace the social world and engage in a dialogue with their customers are missing a significant route to grow relevance. We are living in a mobile world. Think brand building – Think mobile.
5) Be meaningful, differentiate and build trust
Well technically that’s three insights, so I am really practicing what I preach in trying to deliver sensational value…
Being different, meaningful and relevant is imperative to becoming a brand that is personally significant. An affinity well beyond the transactional relationship drives the highest brand value across the globe without exception.
Trust and recommendation are the most critical attributes for a brand to possess. Any gaps between the brand promise and the delivery of that promise erode trust and in a socially connected, digital, mobile world will be exposed in a nanosecond.
To find out more go to www.brandz.com and download the comprehensive reports from the Global, China and Indian brand valuations. And of course there’s the BrandZ mobile appto keep you up to date with brand news, insights and valuations www.brandz/mobile.
CEO The Store WPP
EMEA and Asia