Brand Value Creation: Three Pillars of Success


With the world still recovering from what some are calling an economic disaster, a handful of brands are emerging from the chaos relatively unscathed. This is evidenced by the fact that a portfolio of the top 100 global brands, as established by Millward Brown, grew by 18.5% while that of the S&P 500 declined by 11.5% over the five-year period to April 2010.

Julian Daily of Interbrand believes this value comes from a brand's ability to influence businesses in three ways. Firstly, relevant and differentiated brands are more likely to be considered by consumers, allowing companies to charge premium prices for them (even though the only difference may be a logo their unbranded brethren don't have). Secondly, strong brands bring a level of stability to business operations, which is increasingly important in these fast-changing times. Finally, strong brands are able to travel globally and thrive in markets others can only dream of, much like Virgin's operations in fields as diverse as banking and space travel, not to mention the ability to imbue any offering with luxury and prestige simply by using a French name.