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Healthy brand, healthy bottom line

Healthy brand, healthy bottom line

 

Just as there are many contributors to human wellbeing, there are multiple factors that contribute towards a healthy brand. BrandZ analysis has identified five key attributes shared by healthy, strong and valuable brands.

 

 

It starts with a purpose (making people’s live better).

Decathlon, Free and Michelin have an especially strong sense of purpose.

 

Brands must be innovative ideally in a way that underlines that purpose, which means they’re seen as leading the way in their sector and shaking things up.

La Roche-Posay, Leroy Merlin and Sephora shine in this area.

 

They must also be creative, with powerful, memorable advertising and communications.

Think here of Chanel, Crédit Mutuel and Louis Vuitton.

 

They provide a great brand experience that meets consumers’ needs, and is available when and where consumers need it.

EDF, Maison du Monde and Hennessy are great at providing a memorable brand experience.

 

Over time, consumers develop a strong sense of love towards the brand.

Love is what people feel about sector-leading brands such as Carte d’Or, Orange and Tefal.

 

 

When a brand is strong on all five of these attributes (scoring 5 percent above average), they have healthy “vital signs” and we say they’re healthy brands overall. If they are lacking in any one area, they are at risk of damaging their brand health and underperforming in the market. If they fail on all five measures (99 or less compared to an average score for all brands of 100), they are classed as being “frail”.

 

In France, the healthiest 25 brands in the Top 50 account for 65 percent of the ranking’s total value. Good health is supercharging these brands’ value. These brands are also growing their value faster than the less healthy half of the ranking; on average, they’re worth 15 percent more this year than in 2018, while the less sprightly half have collectively lost 2 percent of last year’s brand value.

 

The healthy brands in the Top 50 have an average value of $10.8 billion; the OK brands are each worth an average of $3.8 billion, and the frail ones just $3.2 billion.

 

And if you’re still not convinced about the value of investing in all five elements of brand health, let’s compare the 43 French brands that appeared in last year’s Top 50 and have made the ranking again this year.

 

Being healthy is a huge driver of brand value growth, and the brands that are strong in all these indicators of vitality post the strongest growth. The brands that are new to the French Top 50 this year are significantly healthier than those that have dropped out, but the healthiest brands in the ranking overall are the continuing giants – the likes of

Louis Vuitton, Hermès, L’Oréal, Orange and Michelin.

 

 

 

 

 

 

 

Leaders of the pack

 

Decathlon, Air France and Michelin are all among the Top 10 brands in the ranking on all five aspects of brand health. When you think about what these brands have in common, it becomes possible to feel more intuitively what the BrandZ data is telling us.

 

All three brands operate in increasingly crowded and highly competitive sectors. Yet in many people’s minds, they stand apart from the rest – and not just because they are long-standing and trusted brands, and they’re distinctly French.

 

Air France and Michelin are both premium brands in their category, but Decathlon is not. A high price tag is not what makes a brand healthy. What unites these brands starts with their focus on a mission that has led them since they began. For Michelin, that’s about safety and driver control, while for Decathlon it’s making fitness accessible. They are all innovative, adapting their offer to changing consumer demands. They communicate their distinctive style and their innovations clearly and consistently – the “France is in the Air” campaign sums up the brand’s mission – and they deliver on experience.