Branding News South Africa

Strong brands recover faster

According to recent international research, strong brands are recovering from the effects of the global recession ahead of others. The BrandZ study, commissioned by WPP and conducted annually by Millward Brown, measures the brand equity of thousands of global “consumer facing” and business-to-business brands, and interviews over a million consumers globally.

The ranking of the world's Top 100 most valuable brands shows, ‘the recession has provided fresh evidence of the tremendous value of brand assets. Over the past year, even when things were at their worst, the BrandZ Portfolio outperformed the market. New analysis reveals that as the stock market recovers, the share prices of companies who have invested in developing strong brands are recovering fastest. Companies that continue to invest in their brands in a recession emerge with a sustainable competitive advantage.'

Consumer perception of a brand is a key input in determining brand value because brands are a combination of business performance, product delivery, clarity of positioning, and leadership.

The most valuable global brands ranking is calculated using a methodology called, “Economic Use,” which is emerging as the preferred way to calculate brand valuation. The brand value is calculated by looking at the role that brand plays in the purchase decision and identifying what proportion of the business value can be attributed purely to the brand.

Besides inputs from the BrandZ study, the ranking uses financial data from Bloomberg and market and product data from Datamonitor. The ranking takes into account regional variations since even for truly global brands measures of brand contribution might differ substantially across countries.

Millward Brown is one of the world's leading research agencies and is expert in effective advertising, marketing communications, media and brand equity research - www.millwardbrown.com.

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