Interbrand pioneered the idea that brands have tangible value, making brands a boardroom conversation. Strong brands generate growth and value. They drive superior financial returns for their businesses.
Brand is a platform for communicating the business strategy to audiences. It is the business strategy brought to life. The modern brand is equivalent to how the world experiences your company, reflected through the brand experience at every interaction and touch-point.
But managing your brand seamlessly across the entire customer experience to deliver business growth is a real challenge. There are thousands of things you could change to improve the brand experience. You need a clear roadmap to identify and prioritise actions that will have the most impact on growth.
Interbrand's proprietary Brand Strength framework is a framework for the organisation, an analysis based on research and data from across the business. The process creates focus and opportunities for quick wins and longer term initiatives to drive brand and business growth.
Connecting your activities to research, analysis and business results will build a business case for more investment in marketing capabilities.
2. Interbrand pioneered
the idea that brands
have tangible value
Making brands a
boardroom
conversation
Most useful rankings to
CEOs (PR Week):
1. Fortune 500
2. Best Companies to
Work For
3. Interbrand’s Best
Global Brands
2
3. Strong brands generate
growth and value
3
Drive
choice
Command
a premium
Build
loyalty
Leading to increased
revenue..
..increased
profit
..and reduced risk
4. Strong brands drive superior financial returns for their businesses
0
20
40
60
80
100
120
140
160
180
200
220
240
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
BGB 100 S&P 500 MSCI World
Best Global Brands portfolio versus
S&P 500 and Morgan Stanley Composite World Index
Source: Interbrand analysis with data sourced from Thomson Reuters and Best Global Brands
Indexesto2000valuesequaling100
4
5. Brand is a platform for communicating the business strategy to audiences
Business Strategy
Brand
5
It is the business strategy
brought to life
6. The modern brand: How the world experiences your company
Business Strategy
Brand
Customer Experience
6
Reflected through the
brand experience at every
interaction and touch-point
7. 7
The real challenge: Managing your brand seamlessly across the entire customer experience
to deliver business growth
The Business The Brand Products &
Services
People &
Behaviors
Comms
Online &
Offline
Environments
The Experience
8. But there are thousands of things you could change to improve
the brand experience
8
9. 9
You need a clear roadmap to identify and prioritize actions that
will have the most impact on growth
9
10. External factors
Clarity Commitment Governance Responsiveness
Authenticity Relevance Differentiation Consistency Presence Engagement
A framework for the organisation
Internal factors
10
11. AUTHENTICITY 0 - 10
CLARITY 0 - 10
COMMITMENT 0 - 10
CONSISTENCY 0 - 10
PRESENCE 0 - 10
GOVERNANCE 0 - 10
RELEVANCE 0 - 10
ENGAGEMENT 0 - 10
RESPONSIVENESS 0 - 10
DIFFERENTIATION 0 - 10
0-100
Brand Strength
Score
Credibility
Brand vision
Leadership
Coherence
AwarenessSentiment
Vision Skills
Delivers on
needs
Dialogue
Understand-
ing
Co-creation
Customer
Insight
R&D Pipeline
IdentityPromise
Employee
clarity
Expression
Roles &
Responsibility
Experience
50 being the
competitive
average
Illustrative:
11
Engagement Behaviours
IP Protection
Story Heritage
A brand for
me
Conversation
Identification
Analysis based on research and data from across the business
12. The process creates focus and opportunities for quick wins and longer term initiatives to
drive brand and business growth
Overall 42
Clarity 0 1 2 3 4 5 6 7 8 9 10
Commitment 0 1 2 3 4 5 6 7 8 9 10
Governance 0 1 2 3 4 5 6 7 8 9 10
Responsiveness 0 1 2 3 4 5 6 7 8 9 10
Authenticity 0 1 2 3 4 5 6 7 8 9 10
Relevance 0 1 2 3 4 5 6 7 8 9 10
Differentiation 0 1 2 3 4 5 6 7 8 9 10
Consistency 0 1 2 3 4 5 6 7 8 9 10
Presence 0 1 2 3 4 5 6 7 8 9 10
Engagement 0 1 2 3 4 5 6 7 8 9 10
InternalExternal
Competitive
set best in class
Competitive
set average
Biggest gap to
competitive set
2.5
3.5
3.5
Illustrative:
13. A greater focus on content marketing may be one initiative that is generated via this process,
with the potential to influence a number of external factors
13 | BSS Icons | Interbrand | 15 February 2016
Authenticity
The brand is soundly based on an internal truth
and capability. It has a defined story and a well
grounded value set. It can deliver against the
(high) expectations that customers have of it.
Relevance
The fit with customer/consumer needs,
desires, and decision criteria across all
relevant demographics and geographies.
Differentiation
The degree to which customers/consumers
perceive the brand to have a differentiated
proposition and brand experience.
Consistency
The degree to which a brand is experienced
without fail across all touchpoints or formats.
Presence
The degree to which a brand feels omnipresent
and is talked about positively by consumers,
customers and opinion formers in both
traditional and social media.
Engagement
The degree to which customers/consumers
show a deep understanding of, active participation
in, and a strong sense of identification with,
the brand.
14. Connecting your activities to
research, analysis and
business results will build a
business case for more
investment in marketing
capabilities
14
Take-away
The chart shows the market value of the BGB portfolio falling by less than the benchmarks in both recessions, providing evidence that strong brands protect/shield businesses in a downturn. The BGB portfolio also outperforms in the upturns (particularly the most recent one), providing evidence that strong brands act as accelerators for businesses in periods of recovery and growth.
Methodology - overview
Effectively, we assume that we invest in the BGB portfolio at the beginning of each year, calculate the total returns for the brands in that year and then assume that we sell that portfolio at the end of the year. We then re-invest the money in the new portfolio for the following year, and so on. The portfolio changes each year as brands enter and leave BGB hence the need to sell and re-invest in the new portfolio each year.
Methodology - detail
The analysis uses “TR Total Return” (TR) data for the portfolio set to September 30th of each year. It assumes the value for year X is the value for year X-1 grown by the indexed growth rate for the last year. The indexed growth rate is the TR rate of each brand weighted by their brand value in year X-1. Brands are not included in either growth or the weighting if we lack data.
Where one or more brands are part of a parent company, we’ve used the parent company as that is how someone could invest. Like other brands, they are weighted in by brand value.
Following private brands are excluded through lack of data: Absolut, Armani, Bacardi, Chanel, IKEA, Levi’s, Rolex, Swatch, Wrigley (after the MARs purchase).
We lack full data history from Thomson Reuters for brands that have moved in and out of public/private ownership: Budweiser, Burger King, Compaq, Dell, Duracell, Ericsson (and Sony Ericsson), Financial Times, Gillette, Heinz, Kodak, Kraft, Reuters, Sun Microsystems, Wall Street Journal.
Additional notes
The analysis was originally inspired by “Brands Matter: An Empirical Investigation of Brand-building Activities and the Creation Of Shareholder Value”, Thomas J. Madden, University of South Carolina, Frank Fehle, University of South Carolina, Susan M. Fournier, Harvard University, 2002.