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You’ve seen the numbers. Eighty percent of the United States’ population
growth during the next five years will come from multicultural segments:
Hispanics, Blacks and Asians*. What does this new marketplace mean for
brands and how they are valued by consumers and Wall Street? Companies
spend billions marketing and advertising to consumers hoping they choose
their brand when they enter grocery stores, visit a retail destination or click
on a website. Given the population trends, where do brands stand today
and how are they positioned to build value over the next five to 15 years?
This was the question we were asking when, through our work at Millward
Brown and Ogilvy, we first met in late 2010. We began tossing around
hypotheses with the hope of truly understanding brand valuations inclusive
of the multicultural customer segments.
We developed a simple hypothesis: A brand that appeals to consumers
across ethnic segments increases its brand “Power”, or consumers’
predisposition to choose that brand over another. And we decided that
Millward Brown’s BrandZ™, the world’s largest brand equity database,
would be the perfect tool to test our hypothesis.
In November 2012 we released an “alpha” version of the Brand
Cross-Cultural Index (BCCI), looking at the automotive category.
The findings in this initial study provided enough evidence for us to, with a
few minor tweaks in the algorithm, pursue additional categories in 2013:
Quick Service Restaurants, Beer and Retail Banking. The analysis allowed
us to identify the segments driving brand value and, in many cases, it was
not White consumers.
We are pleased to introduce the Brand Cross-Cultural Index (BCCI). This
new marketing tool is powered by BrandZ and uses Millward Brown’s
Meaningfully Different brand equity framework to: 1) rank brands based on
their ability to nurture a meaningful connection with consumers across
ethnic segments, and 2) gain an in-depth understanding of brands’ total
market equity, or predictive volume share based purely on perception,
absent of activation factors (Brand Power).
We believe you’ll find this inaugural report helpful as you think about
growing your brand in the new marketplace, and we look forward to sharing
additional insights to support your work.
David Burgos Jeffrey L. Bowman
[email protected] [email protected]
OVERVIEW
* Throughout this report, the terms Whites, Blacks and Asians specifically refer to non-Hispanic consumers that
belong to these racial segments.
REFRAMING BRAND VALUE IN THE NEW MARKETPLACE From the Authors
David Burgos, VP Cultural Strategy, Millward Brown
Jeffrey Bowman, Managing Director, Senior Partner, Ogilvy & Mather
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• Room to grow. Brand Power of many brands,
including Arby’s, Samuel Adams and PNC Bank,
indicates room for growth with Hispanics, Blacks
and Asians. Using the Selig Center’s expenditure
data, the study estimates that Arby’s, for example,
has the opportunity to grow revenue by as much as
$334 million if the brand is able to create a
meaningful connection with ethnic consumers.
Takeaway: It is no longer a choice; brands must win
the hearts and wallets of ethnic consumers to stay
relevant and grow in the new marketplace.
• Meaningfully different ideas work across
cultural boundaries. Despite not doing much
ethnically-targeted marketing, equity measures for
Panera and Yuengling are at the same level or even
stronger among multicultural consumers, placing
the brands in third and fifth places respectively in
their BCCI rankings. Takeaway: Meaningfully
different brand ideals that are founded in core
human insights will deliver higher ROIs.
• Balance relevancy and reach. McDonald’s
commands market share driven primarily by its
strong salience among multicultural segments
(Brand Power of 13.4 percent, followed by Subway
at 7.4 percent). The Subway brand, though, actually
has the most meaningful connection with consumers
across most segments, putting it first in the BCCI
ranking. Takeaway: It is about both being in the right
places and having the right products and messages.
• Cross-cultural marketing works both ways. Not
surprisingly, Corona and Modelo, brands of Hispanic
origin, have their strongest Brand Power among
Latinos (9.8 percent and 3.5 percent respectively).
However, these brands enjoy high equities among
other segments as well, which propels Corona to
number two in the BCCI ranking among beer
brands. Takeaway: Leading with ethnic insights can
influence many facets of culture and increase brand
value.
THE HEADLINE NEWS
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The Brand Cross-Cultural Index (BCCI) provides two main solutions:
• A BCCI Ranking that identifies brands doing the best job at nurturing a meaningful
connection with consumers across all racial or ethnic segments of the population,
including Whites. The analysis also determines a brand’s Multicultural Opportunity
(MCO), which helps identify segments driving the BCCI up or down – multicultural or
White consumers.
• Brand Power, a cross-cultural equity analysis that allows brand owners to pinpoint
growth opportunities and understand the revenue potential of dialing up various
marketing levers within and/or across groups.
A syndicated tool that looks at different industries, the BCCI serves as a valuable benchmark
instrument for marketers seeking to grow their brands in today’s diverse and evolving
marketplace.
THE BRAND CROSS-CULTURAL INDEX
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With this release, we evaluated and assessed three categories. Using an expanded ethnic
sample, the tool assessed 58 brands in three industries: Quick Service Restaurants, or QSR,
($120 billion total value), Beer ($92 billion) and Retail Banking ($165 billion).
EVALUATED THREE CATEGORIES
Quick Service Restaurant Banking Beer
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AT THE CORE OF THE BCCI
Millward Brown’s Meaningfully Different Framework
• Consumers have an impression of brands – ideas, memories and emotions – that exerts an
influence on their purchase behavior. Depending on how meaningful, different and salient
these brand impressions are, consumers are going to be more or less predisposed to
choose a brand over others (Power) and pay more for it (Premium), both now and in the
future (Potential).
• Predisposition and in-market activation is what allows us to determine what drives financial
performance.
POWER
PREMIUM
POTENTIAL
Millward Brown findings reveal that meaningfully different brands capture five times more volume, command a 13% price
premium and are four times more likely to grow value share during the next 12 months, compared to brands lacking
meaningful difference. Meaningfully different brands are expected to grow value share an average of 6.9% per year.
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As a first step, the framework determines whether brands are meaningful, different and
salient to consumers. It then correlates these metrics to volume and price dependent
variables to understand their Power, Premium and Potential.
HOW DOES THE MODEL WORK?
Meaningful Indicates the extent to which brands build an
emotional connection and are seen to deliver
against functional needs.
Different Indicates the extent to which brands set
themselves apart from the category by offering
something others don’t intangible or tangible –
and by leading the way.
Salient Indicates how quickly and easily the brands
come to mind.
Premium Is the ability of a brand to command a price
premium relative to category average, based
purely on perceptions. Reported as an index to
reflect its relation with in-market Price Index.
Potential Is the probability that the brand will grow value
share based purely on current perceptions.
Power Is a prediction of a brand’s volume share
based purely on perception, absent of
activation factors. Reported as percentage
share to reflect its relation with Volume Share.
BCCI Ranking
As explained later in the report, the BCCI Ranking is calculated using the
Meaningful score only. And while all metrics are available, the cross-cultural
equity analysis in this summary report focuses on Brand Power.
In the
BCCI
analysis
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The BCCI is powered by Millward Brown’s BrandZ database, the world’s largest brand equity
database.
With a focus on the U.S. market, the 2013 BCCI study covered three categories: QSR, Beer
and Retail Banking.
Data collection details:
• 560 interviews per category
• National coverage, online English survey
• Readable sample of four major ethnic segments (Whites, Hispanics*, Blacks and Asians*)
• Consumers asked to evaluate brands in a competitive context from a category in which
they actually shop
THE DATASOURCE
Powered by
* Hispanic sample in this pilot skewed to bilingual and English-dominant consumers, who roughly represent 2/3 of the
total Latino population. Asian sample was primarily comprised by respondents of Chinese descent.
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THE BCCI RANKING
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The BCCI Ranking identifies brands doing the best job at nurturing a meaningful
connection with consumers across all segments of the population, including Whites.
The analysis also determines a brand’s Multicultural Opportunity (MCO), which helps
identify segments driving the BCCI up or down – multicultural or White consumers.
THE BCCI RANKING
Both the BCCI Ranking and the MCO are
calculated using the Meaningful score only, which
measures the extent to which brands build an
emotional connection with consumers, and are
seen to deliver against functional needs.
The assumption behind the analysis is that more
cross-cultural brands are able to establish a
meaningful connection with consumers in all/most
ethnic segments – including Whites – while less
cross-cultural brands appeal to just a few of them.
* Questions used to calculate Meaningful score are asked only to consumers who know that brand, therefore results are
comparable regardless of whether brands have a national or regional presence.
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• The BCCI, is the average
“Meaningful” score across
all four major ethnic
segments
• Brands with higher BCCI
have been able to establish
a meaningful connection
with consumers in all or
most ethnic segments
(including Whites)
• Brands with lower BCCI
have room to further
strengthen their relationship
with some groups
TOP 3 BRANDS IN THE BCCI RANKING
1 2 3
BCCI: 139 BCCI: 130 BCCI: 125
BCCI: 120 BCCI: 118 BCCI: 116
BCCI: 123 BCCI: 115 BCCI: 115
QSR
BANKING
BEER
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• The Multicultural Opportunity, or MCO, is a comparison between the “Meaningful” score of ethnic versus
White consumers.
• Using the White segment as benchmark, a brand with a MCO score below 100% has room to
strengthen its connection with at least one of the three minority segments evaluated. A score over 100%
means that the connection the brand has with all/most minorities is more meaningful than with Whites.
Brands whose BCCI is driven up by
multicultural* (highest MCO)
Brands whose BCCI is driven up
by Whites (lowest MCO)
WHO IS DRIVING THE BCCI UP OR DOWN (MCO)
QSR
MCO: 126% MCO: 120% MCO: 117%
Beer
MCO: 126% MCO: 115% MCO:113%
Banking
MCO: 126% MCO: 109% MCO: 108%
QSR
MCO: 85% MCO: 90% MCO: 90%
Beer
MCO: 67% MCO: 83% MCO: 90%
Banking
MCO: 69% MCO: 73% MCO: 77%
* Brand performance is not necessarily consistent across all three minority segments. Therefore it is important to
understand what specific multicultural group(s) is driving up or down a brand’s BCCI, information that is also
provided within our BCCI tool.
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BCCI RANKING & MCO PER CATEGORY
QSR
Rk Brand BCCI MCO
1 Subway 139 90%
2 McDonald's 130 103%
3 Panera 125 94%
4 Chipotle 122 126%
5 Chick Fil-A 119 107%
6 Wendy's 109 91%
7 Burger King 106 92%
8 Taco Bell 101 96%
9 KFC 99 98%
10 Pizza Hut 96 110%
11 Popeyes 94 120%
12 Starbucks 93 108%
13 Dairy Queen 88 90%
14 Arby's 88 85%
15 Jack in the Box 86 117%
16 Sonic 86 93%
17 Papa John's 85 105%
18 Dunkin' Donuts 83 93%
19 Domino's Pizza 82 104%
20 Carl's Jr. 82 98%
21 Hardee's 80 97%
Beer
Rk Brand BCCI MCO
1 Heineken 120 126%
2 Corona 118 115%
3 Bud Light 116 96%
4 Coors Light 115 90%
5 Yuengling 114 102%
6 Samuel Adams 108 67%
7 Blue Moon 107 99%
8 Budweiser 105 110%
9 Stella Artois 102 113%
10 Dos Equis 101 103%
11 Guinness 99 98%
12 Miller Lite 95 83%
13 Modelo 93 106%
14 Michelob 91 96%
15 MGD 90 111%
16 Miller High Life 87 109%
17 Keystone Light 83 98%
18 Busch 81 100%
19 Natural Light 79 95%
20 Pabst Blue
Ribbon 78 90%
Banking
Rk Brand BCCI MCO
1 Chase 123 108%
2 Wells Fargo 115 97%
3 Bank of America 115 126%
4 US Bank 100 94%
5 Ally Bank 99 97%
6 BB&T 98 105%
7 Capital One 96 109%
8 PNC Bank 96 73%
9 TD Bank 95 93%
10 Regions 94 77%
11 Key Bank 94 95%
12 M&T Bank 91 69%
13 Citibank 89 108%
14 SunTrust 88 100%
15 Fifth Third 87 90%
16 HSBC 86 104%
17 Citizens Bank 84 93%
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UNDERSTANDING
TOTAL MARKET BRAND POWER
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Brand Power is a predictive model of a brand’s volume share based purely on perception,
absent of activation factors. It is reported as a percentage to reflect the relationship it has
with Volume Share.
WHAT IS BRAND POWER?
Drivers of Brand Power for specific brands are
illustrated in Millward Brown’s signature
Propeller charts:
1. Size of the blades represents how important
Meaningful, Different and Salient are in explaining
Power within the category, as in a pie chart.
2. Depth of the blades represents how strong the
brand performs on each category: Meaningful,
Different and Salient. Numbers are indexed
against category/segment average.
3. Average circle (100) serves as category
benchmark.
4. Red circle at the center indicates the brand’s
Power, or its likely share of market based purely
on predisposition.
Meaningful Different Salient Power
152
168
95
16.4
Index: 100
* Questions used to calculate Meaningful, Different & Salient scores are asked only to consumers who know that
brand, therefore results are comparable regardless of whether brands have a national or regional presence.
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Unlike QSR and beer brands, the highest ranked
retail banking brands in the BCCI also hold the
strongest Power, or share, based purely on
perception, meaning they are doing a
consistently better job than smaller competitors
at connecting with consumers across segments.
TOTAL MARKET BRAND POWER: TOP 3 BRANDS
Although Heineken and Corona had the top spots
in the BCCI ranking, Sam Adams and two ABInBev
brands show the strongest Power when segment
sizes are factored in, driven by stronger equity
among White consumers.
While consumers across most segments view
Subway as the most meaningful brand (highest
BCCI), McDonald’s Power, or share based purely
on perception, is the strongest in the category,
primarily driven by its significantly higher saliency.
Power is reported as a percentage to reflect the relationship it has with Volume Share.
1 2 3
QSR
BANKING
BEER
Power: 13.4% Power: 7.4% Power: 6.4%
Power: 8.9% Power: 8.2% Power: 6.9%
Power: 15.6% Power: 13.4% Power: 13.4%
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TOTAL MARKET BRAND POWER FULL RANKING
2.6%
3.1%
3.3%
3.6%
3.6%
3.7%
3.7%
3.8%
3.9%
3.9%
4.0%
4.2%
4.4%
4.6%
4.8%
4.9%
4.9%
5.6%
6.4%
7.4%
13.4%
0% 5% 10% 15% 20%
Carl's Jr.
Hardee's
Jack in the Box
Dairy Queen
Popeyes
Domino's …
Papa John's
Arby's
Chipotle
Panera
Dunkin' Donuts
Sonic
Pizza Hut
KFC
Taco Bell
Starbucks
Chick Fil-A
Wendy's
Burger King
Subway
McDonald's
2.4%
3.0%
3.1%
3.1%
3.2%
3.4%
3.5%
3.8%
4.2%
4.2%
4.4%
5.9%
6.1%
6.1%
6.4%
6.4%
6.8%
6.9%
8.2%
8.9%
0% 5% 10% 15% 20%
Modelo
Keystone Light
Natural Light
Pabst Blue …
Busch
Yuengling
Miller High Life
Stella Artois
MGD
Michelob
Dos Equis
Blue Moon
Corona
Miller Lite
Coors Light
Guinness
Heineken
Budweiser
Bud Light
Samuel Adams
1.8%
2.2%
2.3%
2.5%
2.7%
3.0%
3.4%
3.4%
4.1%
4.3%
5.1%
6.7%
7.5%
8.6%
13.4%
13.4%
15.6%
0% 5% 10% 15% 20%
M&T Bank
Key Bank
Fifth Third
BB&T
Regions
SunTrust
TD Bank
HSBC
Citizens Bank
Ally Bank
PNC Bank
US Bank
Citibank
Capital One
B. of America
Wells Fargo
Chase
QS
R
BE
ER
BA
NK
ING
Power is reported as a percentage to reflect the relationship it has with Volume Share.
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WHAT’S THE TOTAL
MARKET VALUE?
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The BCCI allows brand owners to pinpoint growth opportunities by dissecting their brand’s
Power by ethnicity.
BRAND POWER BY ETHNICITY
0.5
-1.8
-0.1
-2.1
-4
-3
-2
-1
0
1
2
Tot Market Power: 4.1% / MCO: 93%
1.3
-2.6
-3.4
-2.2
-4
-3
-2
-1
0
1
2
Tot Market Power: 8.9% / MCO: 67%
0.1
-0.6 -0.2
-1.2
-4
-3
-2
-1
0
1
2
Tot Market Power: 4.2% / MCO: 93%
Whites
Hispanics
Blacks
Asians
• Brand Power scores for Sonic, Sam Adams and Citizens Bank, for
example, indicate room for growth with all three minority segments,
especially the two fastest growing groups: Hispanics and Asians.
• McDonald’s, on the other hand, seems to have an opportunity to
become more meaningful and be more top of mind among White
consumers.
-0.7
0.6 0.7 0.6
-4
-3
-2
-1
0
1
2
Tot Market Power: 13.4% / MCO: 103%
Charts show
deviation from
brand’s total market
Power by ethnicity
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Using the Selig Center’s expenditure data, we estimate that Sonic, for example, has the
opportunity to grow revenue today by as much as $248M, if the brand is able to create a
meaningful connection with ethnic consumers.
REVENUE IMPLICATIONS
4.3%
3.6% 4.0%
2.9%
Whites Hispanics Blacks Asians
$248M
Sonic’s Power within each ethnic segment
Total Market Power: 4.2%
3.3% 3.3%
3.6%
4.2% 4.1% 4.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
2013 2020 2050
Up 8.3%, +328M
Down 3.8%, -186M
A sense of urgency: If all things remain equal, Sonic’s
share and revenue will likely decline just as a result of
demographic population changes – Census: 98% of growth
coming from ethnic consumers, especially Hispanics and
Asians. Conversely, Jack in the Box is expected to benefit
from this shift.
Power shift over time
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Hispanic
s
Blacks Asians Whites
76
98
86 Power
2.9 85
125
87 Power
4
94
92
78 Power
3.6
Index : 100 Index : 100 Index : 100
90
106
91 Power
4.3
Index : 100
Increased Meaningful
by 8% among
Hispanics, from 78 to 84
Power goes up to 4.3%,
and revenue increases by
$179MM
Increased Salient by
20% among Asians,
from 76 to 91
Power goes up to 4.3%,
and revenue increases by
$63MM
The BCCI analysis and custom
modeling tool help marketers
understand the revenue
potential of dialing up various
marketing levers within and/or
across groups.
SCENARIO PLANNING – A CASE STUDY
0.1
-0.6 -0.2
-1.2
-4
-3
-2
-1
0
1
2
Total Market Power: 4.2%
MCO: 93%
What if Sonic…
Revenue estimate based on the Selig Center’s data on consumer expenditure by ethnicity.
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• The Brand Cross-Cultural Index is a
unique tool to help brands grow in today’s
increasingly multicultural marketplace
• The BCCI Ranking and Brand Power
Score rank brands based on how they are
doing in nurturing a meaningful
connection with consumers across all
segments of the population, including
Whites
• Given the growth of the multicultural
segments in the U.S., it is now imperative
for brands to understand where they rank
amongst their peers and quantify the
brand value they are leaving on the table
IN SUMMARY
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David Burgos
VP of Cultural Strategy
Millward Brown
@DavidBurgosatMB
+1 (630) 955-8933
Jeffrey Bowman
Sr. Partner, Managing Director
Ogilvy & Mather
@jeffreylbowman
+1 (512) 466-6592
For additional information about the Brand Cross-Cultural Index (BCCI), visit
www.millwardbrown.com or www.ogilvy.com.
Contact David and Jeffrey with questions or to schedule a one-on-one conversation.
CONTACT US