Learnings from the best brand value builders
The BrandZ Top 100 Most Valuable Global Brands represents the tip of the iceberg in terms of brand management. Many additional insights and learnings can be obtained by mining the BrandZ database and linking it to financial value. The secret is to look at results over time.
Taking the BrandZ database and valuation methodology as the starting point it is possible to see which brands have built the most brand value over time; and then, uncover what it is that makes them so successful. Some of the common factors in building strong brands include an ability to:
• Engage with consumers – The best brand value builders do not talk at their consumers, but invite them to communicate with their brands. They engage their consumers in exciting encounters. They tend to devote a larger portion of their marketing budgets to non-traditional communications than run-of-the-mill brands.
• Speak with one voice across all their different activities—from TV and print, to billboards, to retail, to events, internet and social networking. The consistency of Apple’s messaging across all forms of communications is a good example of this.
• Remain relevant. Brands that remain strong over many years are able to remain relevant by adapting their products to changing times. This might be through product innovation, as demonstrated by Starbucks, or through changing the way they operate to be more in time with how customers consume their services. This is can be demonstrated by at&t’s customer-centric billing practices that focus on services being consumed rather than infrastructure being
• Deliver on the brand promise. Companies that deliver what they say they will are more likely to build loyal consumers and strong brands. Communication needs to be consistent with experience that the product gives consumers in order to avoid a reality gap and a negative brand perception.
• Leverage employees as brand ambassadors. This is an age old organizational skill that is sometimes forgotten in the new age of unfettered communications, but employees really are a valuable asset as ambassadors for the brand.
According to Millward Brown there is a lot more to be done before brand is something that every business undertakes as integral in every part of its operation – a value builder rather than a cost centre – even though many more CEOs are now familiar with the importance and meaning of ‘brand’ than they were 10 years ago. Brand valuations will help by creating a common measure for both marketers and financiers, ensuring that marketing is better understood and accounted for by the business as one of the key drivers, alongside more direct sales activities and business partnerships, of financial and business success.
Finally, the importance of valuing brands stretches far beyond a ranking of the most valuable. Studying the strong brands in the ranking can be a source of learnings which can then be applied to inspire and support other brands in development of the brand, marketing and business strategies which will do the most to grow the company’s brand as well as financial value.Share your thoughts with us: michael.umogun@millwardbrand.com
Michael Umogun