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Increasing brand value: A masterclass from the world’s strongest brands
Anastasia Kourovskaia, Research on Warc, November 2013
This article uses analysis of the BrandZ Top 100 Most Valuable Global Brands to identify the common factors in building a successful brand.
This article uses analysis of the BrandZ Top 100 Most Valuable Global Brands to identify the common factors in building a successful brand. Being 'meaningfully different' helps a brand to command a 13% price premium, and maintaining relevance through renewal and adaptation helps create emotional resonance. Brands should deliver on their 'brand promise' in order to build loyalty, and speak with one coherent voice across the entire consumer experience to amplify the brand's meaningful difference. This all then needs to be supported by relevant marketing that ensures that the most motivating impression comes readily to mind when consumers are faced with making a purchase decision.
Battle of the brands: Winners and losers in the culture war
Kate McDougle, Market Leader, Quarter 3, 2013, pp. 32-35
This article discusses Added Value's Cultural Traction 2013 survey interviewed over 60,000 people about 160 brands to find out which ones are culturally relevant and future-focused.
This article discusses Added Value's Cultural Traction 2013 survey interviewed over 60,000 people about 160 brands to find out which ones are culturally relevant and future-focused. The study measures a brand's cultural vibrancy (VIBE) - how Visionary, Inspiring, Bold and Exciting it is. Tech brands such as Google, Apple, Samsung, Microsoft and eBay dominate the top ten. Dove, Unilever's flagship hygiene and beauty brand, beats key competitor Nivea and is the only packaged goods company to receive outstanding scores worldwide for being inspiring. On the other hand, mainstream alcohol brands appear to have lost their shine. They no longer feel like exciting cultural innovators, but are seen as industrial and boring. Having cultural traction means being able to participate in what is going on in society and categories outside your brand. Successful brands don't just keep up with cultural shifts, but drive them in the most relevant way for their consumers.
Breakaway brands of 2012 (Landor Perspectives 2012)
Mich Bergesen and Stephanie Simon, WPP Atticus Awards, Highly Commended, 2012
This paper discusses Landor research that uncovered 10 brands that had demonstrated exceptionally strong growth in brand strength over 2008-2011.
This paper discusses Landor research that uncovered 10 brands that had demonstrated exceptionally strong growth in brand strength over 2008-2011. Facebook, Keurig and Skype were the top three brands, but across the whole list, three major traits were shown: the brands tended to enhance connections between users, offered convenience and, finally, a sense of security. The paper concludes with a general overview of the Breakaway Brands study's methodology.
Applying spreadsheet maths to consumer behaviour is folly
Rory Sutherland, Market Leader, Quarter 4, 2012, pp. 58-58
When he was asked why he didn't turn his mind to economics, the Nobel prize winning mathematician Max Planck replied: "I couldn't.
When he was asked why he didn't turn his mind to economics, the Nobel prize winning mathematician Max Planck replied: "I couldn't. The maths is too difficult." The same can be said of brand value. A brand affects how much you sell of a product, to whom, how often and at what price. It also affects your relationship with suppliers, whom you recruit, how hard they work, what they are paid and how long they stay. Most of all, it affects how your competitors behave. So when you are asked to develop a system of marketing where the value of every intervention can be known and evaluated in terms of its precise contribution to your bottom line, the only scientifically valid response is to quote Max Planck.
Marketing for share price effect
Malcolm McDonald, Warc Best Practice, July/August 2012, pp. 42-43
In today's competitive environment, the major sources of shareholder value creation are the intangible marketing assets of the business such as brands and customer relationships.
In today's competitive environment, the major sources of shareholder value creation are the intangible marketing assets of the business such as brands and customer relationships. These represent around 80% of a company's value that do not appear on the balance sheet and it is the failure of the marketing community to get to grips with shareholder value that is the real reason why so few companies have a marketing person on their board, says Malcolm McDonald. This article briefly describes how the marketing community should address this major deficiency.
Meaningful brands for a sustainable future: A new approach to measuring brand value
Kate Cox, Warc Exclusive, MPG Media Contacts, December 2011
Both the OECD and the UK Government have recently published measures of the well-being of populations in an attempt to provide a truer account of people's state than using such blunt factors as GDP.
Both the OECD and the UK Government have recently published measures of the well-being of populations in an attempt to provide a truer account of people's state than using such blunt factors as GDP. In its new analysis, Meaningful Brands for a Sustainable Future, Havas Media has re-framed this debate within the context of branding and marketing. The report investigates well-being not in terms of governments and public policy, but in relation to businesses and brands. It applies the theory of well-being, at a personal and collective level, to brand attachment and equity, arguing that more meaningful brands drive business success in the short and long-term. This research demonstrates that businesses that can successfully connect quality products and services to personal well-being have developed better business practices to make them more responsible partners in society, and are able to derive incrementally higher business success as a result.
Assessing Celebrity Endorsement Effects in China: A Consumer-Celebrity Relational Approach
Kineta Hung, Kimmy W. Chan and Caleb H. Tse, Journal of Advertising Research, Vol. 51, No. 4, 2011, pp. 608-623
Celebrity endorsement is a salient executional strategy in China, where national celebrities often endorse more than 20 brands.
Celebrity endorsement is a salient executional strategy in China, where national celebrities often endorse more than 20 brands. This paper adopts a relational perspective to examine this research issue. The relational perspective is driven by three core Chinese cultural values: collectivism, risk aversion, and power distance. The authors propose a model that postulates how celebrity-worship leads to value transfer that, in turn, affects brand purchase intent. Findings from a survey involving 1,030 respondents from a national panel of consumers, showed that consumer celebrity worship is a significant antecedent to endorser effects; over-endorsement by a celebrity is an important moderator; and the model is robust across both sports and entertainment celebrities.
Corporate brand value
James R. Gregory, Admap, December 2011, pp. 14-15
Consumer goods companies such as Unilever, Procter & Gamble and Nestlé place the main focus of their branding efforts on their individual brands, while the likes of Colgate-Palmolive and Coca-Cola reap huge value from their corporate branding.
Consumer goods companies such as Unilever, Procter & Gamble and Nestlé place the main focus of their branding efforts on their individual brands, while the likes of Colgate-Palmolive and Coca-Cola reap huge value from their corporate branding. Research shows that the corporate brand accounts for between 5% to 7% of market capitalisation of the companies tracked. Corporate brand value varies significantly by type of industry and general economic conditions. This article puts forward the arguments for why companies should aim to boost this and ways in which it can be made to happen.
Measuring brand value
John Wolfe, ANA Magazine, April 2011
A discussion of how to measure brand value. The ANA's goal is to develop a single uniform metric - and, to achieve that objective, the ANA has teamed with the Marketing Accountability Standards Board (MASB) in a new initiative dubbed the Brand Valuation Model Project.
A discussion of how to measure brand value. The ANA's goal is to develop a single uniform metric - and, to achieve that objective, the ANA has teamed with the Marketing Accountability Standards Board (MASB) in a new initiative dubbed the Brand Valuation Model Project. It is hoped the metric will convince senior managers to view advertising and marketing costs as an investment in a company’s future, not simply as an expense that’s subject to the vagaries of a fickle marketplace. The project, in its nascent stages, is off to a good start. Documents have been drafted, presentations have been completed, teams have been selected, and goals have been set. The next phase is to put all the pieces in motion.
Why a Ruritanian poltergeist can be as valuable as an automated processing plant
Jeremy Bullmore, Market Leader, Quarter 3, 2010, pp. 18-20
In his regular column, Jeremy Bullmore reflects on the paradox of how assets are valued. Tangible assets, such as plants and machinery, are inevitably impermanent while the intangible assets represented by brands can endure forever.
In his regular column, Jeremy Bullmore reflects on the paradox of how assets are valued. Tangible assets, such as plants and machinery, are inevitably impermanent while the intangible assets represented by brands can endure forever. He gives the fictional example of a board meeting where the production director appears to do better than the marketing director because he wins a reduction in promotional costs during an economic downturn. But advertising and promotional investment is an intangible that can pay big dividends for brands in the long term.
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