Welcome!
Let’s start with a short description of the most rigorous brand valuation method in the World
Financial Value X = Brand Contribution Brand Value
Financial Value X = Brand Contribution Brand Value The secret ingredient
CLOSE YOUR EYES! WHAT IS ‘BRAND’?
DO NOT THINK OF…
Valuable brands have STRONG RELATIONSHIPS with consumers and are MEANINGFULLY DIFFERENT
The Brand Relationship is like dating… Relationships start with awareness At first you are cautious The first date goes well A strong liking is developing Now a very strong relationship Presence Relevance Performance Advantage Bonding
Advantage Performance Relevance Presence Bonding Top 50 LatAm All LatAm (6.977 brands) More valuable brands have stronger relationships
Top 50 LatAm Top 50 Global LatAm compares favourably with Global brands Advantage Performance Relevance Presence Bonding
Top 50 LatAm Top 50 Global Top 50 China Advantage Performance Relevance Presence Bonding
Top 15 LatAm Top 15 Mexico Advantage Performance Relevance Presence Bonding
The POWER of the brand: Brand Contribution
Coca Cola Mexico Bonding only 57% Advantage only 20% Advantage Performance Relevance Presence Bonding
Advantage only Performance/ No Presence Coca Cola Mexico Bonding only Value %Customers % Relevance/ Presence Customers % Value %
Coca Cola Mexico Brand Contribution Percentage These people account for the vast majority of sales because they are more loyal to the brand. Advantage Performance Relevance Presence Bonding
X = X = The Brand Contribution effect…
Brand Contribution effect: Example from Global Valuations
Interbrand value $28bn BRAND CONTRIBUTION AVERAGE Values very similar BRANDZ™ value $23bn
Interbrand value $28bn BRAND CONTRIBUTION LOWER Interbrand fails to take account of lower Brand Contribution BRANDZ™ value $13bn
Interbrand value $34bn BRAND CONTRIBUTION HIGH Interbrand fails to take account of high Brand Contribution BRANDZ™ value $183bn
GLOBALBRAND VALUE Interbrand BRANDZ™ $183BN $34BN $9bn $16bn BRAND CONTRIBUTION 3 BRAND CONTRIBUTION 4
STRONG BRANDS STRONG BRANDS PERFORM BrandZ Global Valuations APR 06MAY % 0.4% S&P 500
What drives Brand Contribution? Global LatAm Local Top 50 Top 50 LatAm Popularity Affinity Difference Price Source: BrandZ (Index Average = 100)
Top Brands are more trusted, recommended and more desirable Global LatAm China Top 50 Top 50 Top 50 Trust Recommendation Desire Source: BrandZ (Index Average = 100)
Character of Top Brands Global LatAm China Top 50 Top 50 Top 50 In Control 109Friendly 106Wise 108 Assertive 107Kind 105In Control 107 Creative 105Generous 104Friendly 105 Source: BrandZ (Index Average = 100)
Before we see some results… Let’s have a short QUIZ (5 questions)
Stand up please! If you get the answer wrong you will need to sit down again…
Q1. BRAND CONTRIBUTION Some brands generate more than their fair share of financial value because the brand contributes so much. Which one of these has the greatest Brand Contribution (in Mexico)? Capcom Cicatricure Corona
Q2. BRAND TRUST & RECOMMENDATION Brands that are BOTH trusted by all and recommended by their users have heritage and contemporary relevance. Which one of these has the greatest TrustR (in Mexico)? Dove Olay Pond’s
Q3. BRAND DIFFERENCE Brands that are different can have an advantage over others. Which one of these is rated most different (in Mexico)? Banco Azteca Chedrahai L’Bel
Q4. BRAND DESIRE Brands that create desire tend to justify their price premiums and can generate greater profits. Which one of these has the greatest Brand Desire(in Mexico)? Banamex Mexicana de Aviacion Telmex
Q5. CHARACTER CLARITY Brands that have a distinct and defined character tend to be stronger. Which one of these has the clearest Character(in Mexico)? Apple Coca Cola Ford
Anyone still standing is a WINNER!
And brands that score well on these things will also be winners: Clear Character/Personality Recommendation by users Affinity/Desire/Popularity Trust Different
And now, some facts about the most valuable brands…
Combined value ($US) of Top 50 brands GlobalChinaLatAmBrazil 311bn 1,845bn 136bn 60bn
Contribution of countries (% of $US brand value in Top 50)
How LatAm compares (% value) LatAm China Global Financial Telecoms Retail B2B Consumer Goods Technology Other 3 3 7
How countries differ (% value) Brazil Mexico Chile Colombia Argentina Financial Telecoms Retail B2B Consumer Goods Other
Now it is time to reveal the most valuable brands