Page 15 - Connecting Media, Technology And Brands To Tomorrow's Consumer

Section 02
10-Year Trends // DIFFERENCE & BRANDS
10-YEAR RESULTS
1. DIFFERENCE MAKES THE DIFFERENCE
Brand Difference drives Brand Value
2. BRAND BECOMES MORE IMPORTANT
Strongest brands survive during challenging times
In a world of so much product sameness, being different makes a difference. Brands consumers view as "Different" generally achieve higher Brand Value.
Over the past 10 years, the brands valued both in 2006 and 2015, which ranked
in the top half of the BrandZTM Top 100 Most Valuable Global Brands, achieved an average Difference score of 139 and grew 124 percent in Brand Value. In contrast, brands in the bottom half of the ranking scored 96 in Difference and increased only 24 percent in Brand Value (An average Difference score is 100).
How brands achieve difference varies.
The top-scoring brands on Difference
are also seen as creative, in control and trustworthy. But it’s not enough to be different just for the sake of being different. Difference needs to correspond to the brand proposition. Brands need to be different with a purpose that’s inspiring and relevant to consumers.
The fast food, retail and technology categories are highest in Difference overall. Global banks and soft drinks are lowest
– although individual brands buck the trend, such as Chase Bank and Red Bull. The possibility of being seen as different is open to any brand in all categories.
Difference influences Brand Value
Brands consumers view as "Different" generally achieve a higher Brand Value than brands not viewed as different.
Brand Power proved crucial during the past 10 years. The decade divided roughly into two halves, before and after the global financial crisis. No category was spared as consumers spent more cautiously and consciously.
High Brand Power helped brands survive and even flourish during this turmoil.
Brand Power is the BrandZTM measure of one aspect of brand equity, a consumer’s predisposition to purchase a particular brand. In 2006, the BrandZTM Global Top 100 brands achieved an average Brand Power score of 142. By 2015 that score had increased to 170 (A score of 100 is average).
Newcomer brands in part drove the increase in Global Top 100 Brand Power scores. Brands entering the Global Top 100 since 2006 score 176 in Brand Power, on average. The average score of brands that dropped from the ranking since 2006 is 135.
In fact, 135 is a high score, but not high enough to remain in the increasingly competitive BrandZTM Global Top 100 ranking with valuable newcomer brands that effectively build Salience and Meaningful Difference, the key components of Brand Power.
Brand Power becomes more important
The BrandZTM Global 100 Brand Power score rose as new brands entered the ranking with higher Brand Power scores than the brands that dropped out.
BRAND VALUE BRANDS 1 TO 50
Average Difference Score
139
10-Year Value Change
+ 124%
BRAND VALUE BRANDS 51 TO 100
Average Difference Score
96
10-Year Value Change
+ 24%
Brand Power score change 2006 vs 2015
Average Brand Power scores 164
142
Top 100 2006
170
Top 100 2015
176
NEW 2015
Survivors
35
Dropped Out
1
Source: BrandZTM / Millward Brown
Based on the BrandZTM Top 100 Most Valuable Global Brands 2006 and 2015
Source: BrandZTM / Millward Brown
BRAND IMPLICATIONS
Brand Power helps sustain and grow Brand Value and profitability. Given the amount of market disruption, brand should become more important, even in categories, such as banks or oil and gas, where financial performance, rather than brand historically has driven Brand Value. In the digital era, brands need to be more meaningfully different to engage with consumers and achieve higher Brand Power.
BRAND IMPLICATIONS
Difference is vitally important. It impacts how much money a brand makes and the sustainability of the brand’s value and profit growth.
A category leader - like Coca-Cola or BMW - needs to guard leadership and keep refreshing the brand message to be always unique. An innovator like Apple needs to constantly lead the innovation curve. In the digital era, all brands need to increase meaningful difference to engage consumers and increase Brand Power.
28 BrandZTM Top 100 Most Valuable Global Brands 2015
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