Post on 22-Feb-2016
description
transcript
Peter WalsheBrandZ Global DirectorMillward Brown
Let’s start with a short description of the most
rigorous brand valuation method in the World
Financial Value
X =Brand
ContributionBrand Value
Financial Value
X =Brand
ContributionBrand Value
The secret ingredient
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.”
Cierra los
ojos!
WHAT IS‘BRAND’?
DO NOT
THINK OF…
Valuable brands haveSTRONG RELATIONSHIPS
with consumersand are
MEANINGFULLY DIFFERENT
The Brand Relationship is like dating…
Relationships start with awareness
At first you are cautious
The first date goes well
A strong liking is developing
Now a very strong relationship
Presence
Relevance
Performance
Advantage
Bonding
Advantage
Performance
Relevance
Presence
Bonding
55%
40%
33%
25%
5%
82%
67%
56%
45%
13%
Top 50 LatAm
All LatAm
(6.977 brands)
More valuable brands have
stronger relationships
82%
67%
56%
45%
13%
Top 50 LatAm
73%
60%
49%
41%
13%
Top 50 Global
LatAm compares favourably with Global
brands
Advantage
Performance
Relevance
Presence
Bonding
The POWER of the brand:
Brand Contribution
99%
84%
77%
76%
50%
Coca Cola LatAm
Bonding only 50%
Advantage only 26%Advantage
Performance
Relevance
Presence
Bonding
Advantage only
Performance/
No Presence
Coca Cola LatAm
Bonding only
1
23
26
50
Customers %
Relevance/ Presence
Customers %
010
17
72
Value %
Value %
99%
84%
77%
76%
50%
Coca Cola LatAm
Brand Contribution Percentage
These people account for the vast majority of sales
because they are more loyal to the brand.Advantage
Performance
Relevance
Presence
Bonding
X
=
X=
The Brand Contribution effect…
Brand Contribution effect:
Example from Global Valuations
Interbrandvalue
$28bn
BRAND CONTRIBUTION AVERAGE
Values very similar
BRANDZ™value
$23bn
Interbrandvalue
$28bn
BRAND CONTRIBUTION LOWER
Interbrand fails to take account of
lower Brand Contribution
BRANDZ™value
$13bn
Interbrandvalue
$34bn
BRAND CONTRIBUTION HIGH
Interbrand fails to take account of high Brand Contribution
BRANDZ™value
$183bn
GLOBALBRAND VALUE
2006 2012
Interbrand
BRANDZ™ $183BN
$34BN
$9bn
$16bn
BRAND CONTRIBUTION
3
BRAND CONTRIBUTION
4
What about investing your money in strong
Brand Contribution?
STRONG BRANDS
STRONG BRANDS PERFORM BrandZ Global Valuations
APR 06 MAY 12
37.5%
0.4%
S&P 500
What drives Brand Contribution?
Global LatAm Local
Top 50 Top 50 LatAm
Popularity 302 208117
Affinity 192 139 86
Difference 107 42 90
Price 35 20 210
Source: BrandZ (Index Average = 100)
What drives Brand Contribution?
Global LatAm Local
Top 50 Top 50 LatAm
Popularity 302 208117
Affinity 192 139 86
Difference 107 42 90
Price 35 20 210
Source: BrandZ (Index Average = 100)
What drives Brand Contribution?
Global LatAm Local
Top 50 Top 50 LatAm
Popularity 302 208117
Affinity 192 139 86
Difference 107 42 90
Price 35 20 210
Source: BrandZ (Index Average = 100)
Top Brands are more trusted, recommended and more desirable
Global LatAm China
Top 50 Top 50 Top 50
Trust 105104 110
Recommendation 104 102106
Desire 112112 110
Source: BrandZ (Index Average = 100)
Character of Top Brands
Global LatAm China Top 50 Top 50 Top 50
In Control 109 Friendly 106Wise 108Assertive 107 Kind 105 In Control 107Creative 105 Generous 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 CONTRIBUTIONSome 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)?
GuinnessHeinekenQuilmes
Q2. BRAND TRUST & RECOMMENDATIONBrands 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)?
AllianzPorto SeguroSul America
Q3. BRAND DIFFERENCEBrands that are different can have an advantage over others. Which one of these is rated most different (in Colombia)?
BingTaringaWikipedia
Q4. BRAND DESIREBrands 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)?
BanamexMexicana de AviacionTelmex
Q5. CHARACTER CLARITYBrands that have a distinct and defined character tend to be stronger.Which one of these has the clearest Character(in Chile)?
ChryslerFordToyota
Anyone still standing is a WINNER!
And brands that score well on these things will also be winners:
Clear Character/PersonalityRecommendation by usersAffinity/Desire/Popularity
TrustDifferent
AmplifyMeaningfully
DifferentExperience
Define
ValueGrowth
How brands drive value growth
Different
MeaningfulSource: LatAm 1,340 brands 2010-2011 (Average = 100)
Brand Contribution
168
Meaningfully Different get more sales because of brand
Brand ContributionDifferent
MeaningfulSource: LatAm 1,340 brands 2010-2011 (Average = 100)
168
129
104
121
109
7853
76
93
Meaningfully Different get more sales because of brand
Meaningfully Different
All brands LatAm
30%All brands
worldwide
30%
Meaningfully Different
Local brands LatAm 27%
International brands LatAm 32%
Meaningfully Different
LatAm Top 50 67%
Global Top 50 68%
And now, the most valuable brands…
Combined value ($US) of Top 50 brands
Global China LatAm Brazil
311bn
1,845bn
136bn 60bn
Now, it really is time to reveal the most
valuable brands
Top brand in each country
Contribution of countries(% of $US brand value in Top 50)
Brazil33%
Mexico24%
Argentina3%
Chile20%
Colombia17%
Latin American3%
Number in Top 50
Brazil14Mexico13Chile12Colombia 8Argentina 2LatAm 1
How LatAm compares (% value)
LatAm China Global
Financial 2543 13
Telecoms 1922 15
Retail 19 3 5
B2B 18 8 13
Consumer Goods 16 1020
Technology - 1127
Other 3 3 7
How LatAm compares (% value)
LatAm China Global
Financial 2543 13
Telecoms 1922 15
Retail 19 3 5
B2B 18 8 13
Consumer Goods 16 1020
Technology - 1127
Other 3 3 7
How LatAm compares (% value)
LatAm China Global
Financial 2543 13
Telecoms 1922 15
Retail 19 3 5
B2B 18 8 13
Consumer Goods 16 1020
Technology - 1127
Other 3 3 7
How countries differ (% value)
Brazil Mexico Chile Colombia ArgentinaFinancial 32 29 13
48 4Telecoms 4 18 -
29 23Retail 8 22 59
5 -B2B 21 4 12
18 66Consumer Goods 26 27 13
48 4Other 9 - 14
- -
And how about investing in these brands?
STRONG BRANDS
STRONG BRANDS LESS VULNERABLE BrandZ LatAmValuations
May 11 June 12
-16.5%
-23.6%MSCI
LatAm
Finally…
(10 thoughts)
LatAm ‘Top 50’ (should have some Peru brands in it!)
Countries across Region are very different – but a STRONG BRAND is still a great investment wherever you are
A strong brand gets its value from creating a UNIQUE RELATIONSHIP with consumers
LatAm Top 50 are AS STRONG as any other Top 50 in the World
Many local brands can learn lessons from the Top 50 and be less price driven and more MEANINGFULLY DIFFERENT
A DISTINCTIVE brand is more likely to attract consumer passion
Brand relationships are built on experience of the brand. A genuinely good experience is VALUABLE
Do not worry about POLARISING your audience, success in NOT about being all things to all people
As a brand be TRUE to yourself throughout the organisation, with your suppliers and retailers, so that it eventually affects the customers
Passionate users of your brand are your BEST ADVOCATES and should be looked after
‘BUZZ’ means Money
$511bn
$112bn
Value
Earned Buzz
Top 100 Global brands
Muchos Gracias!