Page 19 - Connecting Media, Technology And Brands To Tomorrow's Consumer

Section 02
10-Year Trends // INNOVATION-LOVE & TRUST
10-YEAR RESULTS
7. INNOVATION AND LOVE FORM A VIRTUOUS CIRCLE
Balance ensures long-term success
8. TRUSTED OR BUSTED
Repaired trust adds brand power, value
Love and innovation go together like a horse and carriage. They separately drive brand value growth. But together they form a virtuous circle that balances brands with qualities that help ensure long-term survival and success.
Brands seen as innovative are more likely to be loved. Love provides the space brands need to innovate while still functioning effectively day to day in the unremitting pressure of the marketplace.
Consumers often become infatuated with the newest, shiniest product. That’s fine
for brands looking for a fling. But it's not enough to sustain brand value growth over the potentially long lifetime of a great brand.
Even the most trend-setting brands experience swings between periods of intensive innovation and periods of iterative progress. Love provides the forgiveness necessary when a brand’s cycle of creative development is out of sync with consumer expectations.
Consumers may try a brand once or twice but they won’t stay with it if they don’t trust it. A brand's good behavior over time builds trust. Once the trust reservoir is filled, consumers are more likely to recommend a brand, assuming that its current behavior matches its promise.
Brands can lose trust. And, most important, brands can restore trust. The possibility
of restoring trust became important as brands recovered from the global financial crisis. Not only is it possible to restore
trust, but greater trust also correlates with greater Brand Value, Brand Power and differentiation.
A comparison between the 10 BrandZTM Global Top 100 brands that improved most in trust over the past decade and 10 brands that declined most in trust revealed that the trust improvers significantly outperformed the trust decliners in the growth of Brand Value, Brand Power and Brand Difference.
The 10 trust improvers came from many categories and include brands such as Apple and Domino’s Pizza. Not surprisingly, global banks dominate the trust decliner group.
Trust impacts Brand Value and Brand Power
Changes in trust correlate with changes in Brand Value, Brand Power and Brand Difference.
Top 10 Trust Movers
Brand Power Change +58 Source: BrandZTM / Millward Brown
Top 10 Most Valuable
+61
Top 10 Trust Decliners
-28
Brand Trust Change
+13
-2
-17
Brand Value Change
+571%
+179%
+118%
Brand Difference Change
+25
+21
-1
Love and innovation are a winning combination
There is a strong and productive correlation between being innovative as a brand and being loved.
HIGH
LOW
Based on 165 brands in the BrandZTM rankings Source: BrandZTM / Millward Brown
HIGH
36 BrandZTM Top 100 Most Valuable Global Brands 2015
37
Brand I Love
BRAND IMPLICATIONS
From the consumer view, some brands are more innovative and others more lovable. For the brand it doesn’t have to be an either-or situation. Even the strongest brands gain greater stability and long-term resilience from a healthy balance of innovation and love.
BRAND IMPLICATIONS
It’s possible to repair trust. And repaired trust makes a big difference to Brand Value, Brand Power and Difference. Conversely, when trust erodes – and is not repaired – both Brand Value and Brand Power are negatively impacted.
Sets Trends