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THE POWER AND CONTRIBUTION OF THE CORPORATE BRAND 19 th APRIL 2016

The Power of Corporate Brand from BrandZ

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Page 1: The Power of Corporate Brand from BrandZ

THE POWER AND CONTRIBUTIONOF THE CORPORATE BRAND

1 9 t h A P R I L 2 0 1 6

Page 2: The Power of Corporate Brand from BrandZ

Nick BullSenior Director

@nickatmb@Millward_Brown

Page 3: The Power of Corporate Brand from BrandZ

3

100kBRANDS

400CATEGORIES

3mCONSUMERS

50MARKETS

4.5bnDATA POINTS

The largest brand database worldwide

Page 4: The Power of Corporate Brand from BrandZ

4

RepZMeasuring the Power and Contribution

of the Corporate Brand

Page 5: The Power of Corporate Brand from BrandZ

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Four factors influence Corporate Reputation

SUCCESS RESPONSIBILITYFAIRNESS TRUST

Innovative/Leading the way

Offer investors a good financial return

Charge fair prices

Deal fairly with suppliers and other companies

Socially responsible

Treat employees well

Environmentally responsible

Can be trusted

HARD SOFT

Page 6: The Power of Corporate Brand from BrandZ

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Computing RepZ - factors have different contributions

SUCCESS FAIRNESS RESPONSIBILITY TRUST

35% 32% 17% 16%

Page 7: The Power of Corporate Brand from BrandZ

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Benefits of high RepZ: Better performance on Key Brand Metrics

BRAND PROMISE CONSIDERATION TRUSTWORTHY RECOMMENDATION BRAND CLARITY BRAND PREMIUM BRAND POTENTIAL

16% 21% 7% 8% 12% 17% 10%

% that brands with strong reputations (top third) exceed those with weak reputations (bottom third)

Page 8: The Power of Corporate Brand from BrandZ

Company Reputatio

n

Brand Reputation

One without the other is less valuable

Company and Brand Reputation: Two sides of a coin

Page 9: The Power of Corporate Brand from BrandZ

(31,652 brands/companies 2010-2015 in 100 groups in rank order of corporate reputation)

Company better corporate reputation

Com

pany

mor

e tr

uste

d

R² 0.849

Two sides of a coin:Companies that are more trusted have a better reputation

R2 = 0.85

Page 10: The Power of Corporate Brand from BrandZ

Two sides of a coin:Trust for Companies comes from having trusted brands

(31,652 brands/companies 2010-2015 in 100 groups in rank order of Companies you can trust)

Company more trusted

Bra

nds

mor

e tr

ustw

orth

y

R² 0.9658

R2 = 0.96

Page 11: The Power of Corporate Brand from BrandZ

Two sides of a coin:Trustworthy brands are more successful

(31,652 brands/companies 2010-2015 in 100 groups in rank order of trustworthy brands)

Brand more trustworthy

Hig

her b

rand

sha

re

R² 0.981

R2 = 0.98

Page 12: The Power of Corporate Brand from BrandZ

Average Global Value Growth

2015 vs 2006“Trustworthy”

Above average $37bn +170%Average $23bn +84%

Low $19bn +38%

Common brands in each year from BrandZ Top 100 Most Valuable Global Brands

BIG POINT: Trusted brands GROW business value

Page 13: The Power of Corporate Brand from BrandZ

The average RepZ score is 100Scores over 105 demonstrate reputation superior strength, under 95, relative weakness.

RepZ Scores of the Top 10 Most Valuable Global Brands in 2014

Source: Global RepZ 201413

118

105

120

150

111

113

123

106

105

124

$158.8bn

$147.9bn

$107.5bn

$90.2bn

$85.7bn

$80.7bn

$79.2bn

$77.9bn

$67.3bn

$64.3bn

Page 14: The Power of Corporate Brand from BrandZ

Three Tips on Measuring, Managing and Maximising Corporate Reputation

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MEASURE TRUST ALONGSIDE OTHER CORPORATE

REPUATTION MEASURES

MAKE NODISTINCTION

BETWEEN THECORPORATION

AND YOURBRANDS

THEREUNIFICATION

OF CORPORATIONAND BRAND CANHELP RESTOREAND SUSTAIN

TRUST

1 2 3

Page 15: The Power of Corporate Brand from BrandZ

Building trustin your brandsand adding the

corporate side ofthe coin will add

$value

Bonus Tip

Page 16: The Power of Corporate Brand from BrandZ

38%

+170%

Trust

$ Va

lue

-8% +7%Average

Ave

rage

+1% trust could add up to 1% in value per year*

*Per Year extrapolating from the Top 100 Most Valuable Brands