Page 18 - Connecting Media, Technology And Brands To Tomorrow's Consumer

Section 02
10-Year Trends // INNOVATION & LOVE
10-YEAR RESULTS
5. INNOVATION DRIVES BRAND VALUE
Trend-setting brands viewed as Different
Loved brands grow value at faster pace
Consumers see innovative brands – brands that set trends – as Different and as leaders. These perceptions pay significant dividends in brand value growth. Over the past 10 years, brands that scored highest in the BrandZTM trend-setting metric increased an average of 161 percent in Brand Value. Brands that scored lowest increased only 13 percent.
When consumers score a brand high in trend-setting, they typically view it as creative, different, desirable, adventurous or assertive. The trend-setters include many technology brands, but not exclusively. Nike, UPS and PayPal score high in the BrandZTM Trendsetter Index, for example.
Trend-setting brands share in common the determination to understand the needs of consumers, the ability to identify the gaps where needs are going unmet, and the willingness to take the creative leaps and risks required to close those gaps with new products and services.
Trend-setting brands win in value
Over the past 10 years, brands that scored highest in the BrandZTM trend-setting metric increased an average of 161 percent in Brand Value.
Brands can’t survive on love
alone. But love has a multiplier effect. Brands that are loved by consumers increase more rapidly in Brand Value – and the impact is substantial. Over the past 10 years, the rise in value for brands scoring high in the BrandZTM "Love" metric was 10 times greater than the value rise for brands scoring low in Love.
Love measures the emotional affinity of
a brand. It’s not simply about making the brand warm and friendly, although that’s fine, if it’s genuine. Rather, love usually follows great performance. Brands from across categories score high in love, from a payment system like Visa to fast-food giant KFC to Baidu, the Chinese search engine.
Sometimes brands do all the right things but are not highly loved. Then love is an area to boost, because love is a key component of making a brand meaningful. Loved brands exist in partnership with their customers and try to understand the world from the customer’s point of view.
Loved brands are highly valued
Over the past 10 years, the rise in value for brands scoring high in the BrandZTM Love metric was 10 times greater than the value rise for brands scoring low in Love.
+36%
Three groups of brands from the 57 brands in the BrandZTM Global Top 100 that have 10-year value change and the Trend-setting metric.
Source: BrandZTM / Millward Brown
+39%
+22%
+ 13%
10-Year Value Change
+161%
10-Year Value Change
+227%
6. LOVE ISN’T ALL YOU NEED, BUT IT’S POWERFUL
Three groups of brands from the 57 brands in the BrandZTM Global Top 100 that have 10-year value change and the Love metric.
Source: BrandZTM / Millward Brown
BRAND IMPLICATIONS
Brands need to set trends to win. They need to become leaders through innovation. Especially as categories become more competitive, being a trendsetter means being seen as different, which is increasingly difficult but critical for brand value growth. The difference needs to be noticeable, relevant to the customer, genuine for the brand and matched with a big creative idea. Brands need to be forward- looking and can deliver innovative product and experiences beyond consumers’ expectation at more acceptable prices. Even without breakthrough products, brands still need to make sure their communications look and feel innovative.
34 BrandZTM Top 100 Most Valuable Global Brands 2015
35
Top Third Trend-Setting Set Trends Index - 166
Top Third “Love” "Love" Index - 173
Middle Third Trend-Setting Set Trends Index - 95
Middle Third “Love” "Love" Index - 95
Bottom Third Trend-Setting Set Trends Index - 58
Bottom Third “Love” "Love" Index - 61
BRAND IMPLICATIONS
Love alone is not enough. But when love is part of the full package
of efficacy and purpose, and communication is humane in tone, love can strengthen brand loyalty and drive brand value growth. Sustaining love depends to a large degree on continuous and genuine communication.