The Power of Corporate Brand from BrandZ

Post on 09-Jan-2017

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THE POWER AND CONTRIBUTIONOF THE CORPORATE BRAND

1 9 t h A P R I L 2 0 1 6

Nick BullSenior Director

@nickatmb@Millward_Brown

3

100kBRANDS

400CATEGORIES

3mCONSUMERS

50MARKETS

4.5bnDATA POINTS

The largest brand database worldwide

4

RepZMeasuring the Power and Contribution

of the Corporate Brand

5

Four factors influence Corporate Reputation

SUCCESS RESPONSIBILITYFAIRNESS TRUST

Innovative/Leading the way

Offer investors a good financial return

Charge fair prices

Deal fairly with suppliers and other companies

Socially responsible

Treat employees well

Environmentally responsible

Can be trusted

HARD SOFT

6

Computing RepZ - factors have different contributions

SUCCESS FAIRNESS RESPONSIBILITY TRUST

35% 32% 17% 16%

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Benefits of high RepZ: Better performance on Key Brand Metrics

BRAND PROMISE CONSIDERATION TRUSTWORTHY RECOMMENDATION BRAND CLARITY BRAND PREMIUM BRAND POTENTIAL

16% 21% 7% 8% 12% 17% 10%

% that brands with strong reputations (top third) exceed those with weak reputations (bottom third)

Company Reputatio

n

Brand Reputation

One without the other is less valuable

Company and Brand Reputation: Two sides of a coin

(31,652 brands/companies 2010-2015 in 100 groups in rank order of corporate reputation)

Company better corporate reputation

Com

pany

mor

e tr

uste

d

R² 0.849

Two sides of a coin:Companies that are more trusted have a better reputation

R2 = 0.85

Two sides of a coin:Trust for Companies comes from having trusted brands

(31,652 brands/companies 2010-2015 in 100 groups in rank order of Companies you can trust)

Company more trusted

Bra

nds

mor

e tr

ustw

orth

y

R² 0.9658

R2 = 0.96

Two sides of a coin:Trustworthy brands are more successful

(31,652 brands/companies 2010-2015 in 100 groups in rank order of trustworthy brands)

Brand more trustworthy

Hig

her b

rand

sha

re

R² 0.981

R2 = 0.98

Average Global Value Growth

2015 vs 2006“Trustworthy”

Above average $37bn +170%Average $23bn +84%

Low $19bn +38%

Common brands in each year from BrandZ Top 100 Most Valuable Global Brands

BIG POINT: Trusted brands GROW business value

The average RepZ score is 100Scores over 105 demonstrate reputation superior strength, under 95, relative weakness.

RepZ Scores of the Top 10 Most Valuable Global Brands in 2014

Source: Global RepZ 201413

118

105

120

150

111

113

123

106

105

124

$158.8bn

$147.9bn

$107.5bn

$90.2bn

$85.7bn

$80.7bn

$79.2bn

$77.9bn

$67.3bn

$64.3bn

Three Tips on Measuring, Managing and Maximising Corporate Reputation

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MEASURE TRUST ALONGSIDE OTHER CORPORATE

REPUATTION MEASURES

MAKE NODISTINCTION

BETWEEN THECORPORATION

AND YOURBRANDS

THEREUNIFICATION

OF CORPORATIONAND BRAND CANHELP RESTOREAND SUSTAIN

TRUST

1 2 3

Building trustin your brandsand adding the

corporate side ofthe coin will add

$value

Bonus Tip

38%

+170%

Trust

$ Va

lue

-8% +7%Average

Ave

rage

+1% trust could add up to 1% in value per year*

*Per Year extrapolating from the Top 100 Most Valuable Brands