WELCOME. METHODOLOGY CORPOATE FINANCES = CORPORATE FINANCES INTANGIBLE NAMED BRAND EARNINGS BRAND...
Transcript of WELCOME. METHODOLOGY CORPOATE FINANCES = CORPORATE FINANCES INTANGIBLE NAMED BRAND EARNINGS BRAND...
WELCOME
METHODOLOGY
CORPOATE FINANCES
=
CORPORATE FINANCES
INTANGIBLE NAMED BRAND
EARNINGS
BRAND DRIVEN SALES
X Multiple
BRAND VALUE
OVERVIEW
HIGHLIGHTS
APPLE IS THE NEW #1
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Facebook IS THE FASTEST
RISER
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VALUE OF TOP 100
UP +17%
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20112006 2007 2008 2009 2010
$1.59bn$1.45bn
$1.92bn$1.94bn
$2.04bn
$2.38bnBRANDZ™ Top 100 The Top 100 up 17% on last year (+64% on 2006)
BRANDZ™ Top 100
Strong Brands are a great investment
CHINA NOW HAS 12 Brands in
the top 100
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OTHER BRICs ALSO GAIN
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USA & Europe THE
BIGGEST LOSERS
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02
10
36
52
19
07
28
46
2006 2011
USA/Canada Western Europe Japan/Korea Brics & Mexico
BRANDZ™ Top 100
Big shift over five years to BRICs
THEFIVE YEAR
PICTURE
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SHIFT TO technology
& telecoms
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Financial STILL STRONG
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CARS & RETAIL lose out
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20112006
Technology/Telecoms
45%
Financial 18%
Cars 4%
Retail 6%
Other 27 %
Technology/Telecoms
36%
Financial 16%
Cars 10%
Retail 9%
Other 29%
BRANDZ™ Top 100
Technology Growth (Value in Top 100)
SECTOR CHANGES
RANK CATEGORY 2011 v 2010 Brand Value Growth (%) '11 vs. '08
1 FAST FOOD 22% 42%
2 LUXURY 19% -13%
3 TECHNOLOGY 18% 32%
4 APPAREL 10% -1%
5 INSURANCE* 10% -51%
6 FINANCIAL INSTITUTIONS 9% 7%
7 BEER 7% 32%
8 CARS 7% -27%
9 SOFT DRINKS 5% 26%
10 PERSONAL CARE 3% 5%
11 RETAIL 2% 7%
12 OIL & GAS 1% N/A
13 TELECOM PROVIDERS N/A N/A
BRANDZ™ Top 100 Sector changes – all increased
*excludes new entrant China brands
BRANDZ™ Top 100 Sector changes since recession
RANK CATEGORY 2011 V 2008
1 FAST FOOD 42%
2 TECHNOLOGY 32%
3 BEER 32%
4 SOFT DRINKS 26%
5 FINANCIAL INSTITUTIONS 7%
6 RETAIL 7%
7 PERSONAL CARE 5%
8 APPAREL -1%
9 LUXURY -13%
10 CARS -27%
11 INSURANCE* -51%
12 OIL & GAS N/A
13 TELECOM PROVIDERS N/A *excludes new entrant China brands
BRANDZ™ Top 100
Top fast food risers
STARBUCKS +40%PIZZA HUT +58%
BRANDZ™ Top 100
Luxury top riser
BURBERRY +86%
BRANDZ™ Top 100
Technology top risers
FACEBOOK+246%
BAIDU+141%
APPLE+84%
BRANDZ™ Top 100
Retail brands hit by recession
2006 20112007 2008 2009 2010
Global 164
Retail 132
BRANDZ™ Top 100
eRetail and Discounters doing much better
2006 20112007 2008 2009 2010
Online only 252
100
Discounters 180
Other 110
REGION OVERVIEW
(AMERICAS)
Rank Brand Brand Value 2011 ($m) Change v 2010
1 Apple 153,285 +84%
2 Google 111,498 -2%
3 IBM 100,849 +17%
4 McDonald's 81,016 +23%
5 Microsoft 78,243 +2%
6 Coca-Cola 73,752 +8%
7 at&t 69,916 N/A
8 Marlboro 67,522 +18%
9 GE 50,318 +12%
10 Verizon 42,828 N/A
BRANDZ™ Top 100
Top 10 North American ownership (9 of global top 10)
2006 2011
USA/Canada 165
2007 2008 2009 2010
Global 164
Top 10 USA 206
100
BRANDZ™ Top 100
Brand Value Growth
2006 20112007 2008 2009 2010
BRANDZ™ Top 100 USA in TOP 100 – More value for fewer brands
$1.42trillion
42 brands
52 brands
$0.9trillion
Average brand = 100
CREATIVE ASSERTIVE IN CONTROL
BRANDZ™ Top 100
Top 10 North American dominance from innovation
114
131
116125
135
147
TOP 100USA
TOP 10
BRANDZ™ Top 100
Top 8 Latin American ownership
Rank Brand Brand Value 2011 ($m) Change v 2010
1 Petrobras 13,421 +39%
2 Telcel 11,558 +7%
3 Itaú 9,600 +29%
4 Bradesco 8,600 +15%
5 Corona 5,458 +5%
6 Natura 4,612 New
7 Skol 4,579 +24%
8 Brahma 1,996 New
DESIRABLE SEXY PLAYFUL
Top 100 LatAm 8
111117
89
120
86
134
Average brand = 100
BRANDZ™ Top 100
Party time in Latam
REGION OVERVIEW
(Asia)
Rank Brand Brand Value 2011 ($m) Change v 2010
1 China Mobile 57,326 +9%
2 ICBC 44,440 +1%
3 China Construction Bank 25,524 +22%
4 Toyota 24,198 +11%
5 Baidu 22,555 +141%
6 China Life Insurance 19,542 N/A
7 Bank of China 17,530 -20%
8 Agricultural Bank of China 16,909 N/A
9 NTT DoCoMo 15,449 +19%
10 Tencent/QQ 15,131 N/A
BRANDZ™ Top 100
Top 10 Asia Ownership
2006 20112007 2008 2009 2010
BRANDZ™ Top 100 Brand Value Growth – Driven by China
Japan &Korea 81
Global 164
China 597
100
Asia 227
2006 20112007 2008 2009 2010
26%
44%
56%62% 61%
70%
BRANDZ™ Top 100
China value proportion of Asia brands in Top 100
Average brand = 100
DIFFERENT FRIENDLY DESIRABLE
144
95
127
98
116124
Top 100 Asia 20
BRANDZ™ Top 100 Friendly Asia
REGION OVERVIEW
(BRICs/Mexico)
BradescoItaúPetrobrasMTSSberbankICICIAgriculture Bank of ChinaBaiduBank of ChinaChina Construction BankChina Life InsuranceChina Merchant’s BankChina MobileChina TelecomICBCPetroChinaPing AnTencent/QQTelcel M
BRICs
$336.5bn$43.4bn
China Mobile Esprit
BRANDZ™ Top 100 BRICs/Mexico from 2 to 19 in Five Years (+775%)
Rank Brand Brand Value 2011 ($m) Change v 2010
1 China Mobile 57,326 +9%
2 ICBC 44,440 +1%
3 China Construction Bank 25,524 +22%
4 Baidu 22,555 +141%
5 China Life Insurance 19,542 N/A
6 Bank of China 17,530 -20%
7 Agricultural Bank of China 16,909 N/A
8 Tencent/QQ 15,131 N/A
9 ICICI Bank 14,900 +3%
10 PetroChina 11,291 -19%
BRANDZ™ Top 100
Top 10 BRICs ownership (China 9 out of 10)
2006 20112007 2008 2009 2010
BRANDZ™ Top 100 Phenomenal BRICs/Mexico growth
Global 164
BRICs/Mexico 597
100
Average brand = 100
DIFFERENT FRIENDLY CARING
95
132
98
133
100
130
Top 100 BRICs/Mexico 19
BRANDZ™ Top 100
BRICs/Mexico different, friendly & caring
REGION OVERVIEW
(Europe)
RANK BRAND BRAND VALUE 2011 ($M) CHANGE V 2010
1 Deutsche Telecom 29,774 N/A
2 Movistar 27,249 N/A
3 SAP 26,078 +7%
4 Louis Vuitton 24,312 +23%
5 BMW 22,425 +3%
6 Orange 17,597 N/A
7 L'Oréal 15,719 +11%
8 Mercedes 15,344 +12%
9 Carrefour 13,754 -8%
10 H&M 13,006 +7%
BRANDZ™ Top 100
Top 10 Mainland Europe ownership
RANK BRAND BRAND VALUE2011 ($M) CHANGE V 2010
1 Vodafone 43,647 -2%
2 HSBC 22,587 -4%
3 Tesco 21,834 -15%
4 Shell 15,168 0%
5 BP 12,542 -27%
6 Standard Chartered Bank 12,033 +45%
7 O2 11,694 N/A
8 Barclays 8,760 +4%
9 Marks & Spencer 5,252 -8%
10 Asda 3,975 -19%
BRANDZ™ Top 100
Top 10 ownership – Not a great year for most of UK
BRANDZ™ Top 100
Europe struggling and UK stalling
Top 10 Europe/UK and Global 100
2006 20112007 2008 2009 2010
Mainland Europe 119
Global 164
UK 176
Average brand = 100
BRANDZ™ Top 100
UK & Europe behind on Trust and User Recommendation
GLOBAL TOP 100 UK TOP 10 EUROPE TOP 10
RECOMMEND
TRUST
104102 103
108 101
93
Average for Top 100 = 100
BRANDZ™ Top 100
Online ‘Buzz’ UK & Europe top brands less talked about
GLOBAL TOP 100
8 UK BRANDS IN TOP 100
20 EUROPE BRANDS IN
TOP 100
27
47
100
INTERACTIVE QUESTIONS
RECESSION BEATERSGlobal Recession began after our Ranking in 2008.Since then Apple is the brand that has put on most value (+$98bn).But which of these put on the next most?
AmazonIBMMcDonald’s
BUSINESS TO BUSINESSWe classify a B2B brand as one that gains 80%+ of its revenues from B2B.How many of the brands in this year’s Top 100 are B2B?
91114
BRAND TRUSTBrands that are both highly trusted and strongly recommended by their users are what we call ‘TrustR’ brands which tend to be the most successful.Which of these have the greatest TrustR Score?
PampersPetrobrasPing An Insurance
(125)(120)(118)
THE SEXIESTBrandZ measures the character or personality of brands.Which of these is rated the sexiest?
L’OrealPorscheZara
(23%)(50%)(28%)
BRAND BUZZBrandZ also measured the amount of online ‘buzz’ that the Top 100 brands attracted throughout 2010. Not surprisingly, technology brands dominate the list. But one car brand gets in at Number 6.Which one of these is it?
BMWHondaToyota
(366)(307)(198)
POWERED BY BRANDZ
TRUST
SUCCESS
The brands that are most valuable and most successful are also strongly recommended by their users
TRUSTR the new metric
BRANDZ™ Top 100
Trust alone is not enough +=
More TRUSTR
GREATER $ VALUE
(2011 Top 100 in groups of 5 brands)
BRANDZ™ Top 100
Why TrustR is an important metric
The greater TRUSTR the
more valuable the
brand
Average Brand = 100
BRANDZ™ Top 100
Top 100 well trusted and recommended
TRUSTR
TRUST
RECOMMENDATION104
102
106
Pampers No.1 125
Value-D measures THE GAP between the consumer’s DESIRE for a brand and the consumer’s perception of THE BRAND’S PRICE
HIGH DESIRE
100/100
80/80
140/140
BRANDZ™ Top 100
The Value-D Map
HIGH PRICE
HIGH PRICE
GOOD VALUE
POOR VALUE
JUSTIFIED PREMIUM
EXPENSIVE
BRANDZ™ Top 100
The Value-D MapHIGH DESIRE
Average Brand = 100
BRANDZ™ Top 100
Top 100 highly desirable justifying a price premium
VALUE-D GAP
DESIRE
PRICE108
103
111
BRANDZ™ Top 100
No. 1 brand from Top 100 (brands in more than one country)
DESIRE PRICE VALUE D
GOOGLE ALDI AMAZON
134 83 138
CHINA FOCUS
comparison with
Global TOP50
BRANDZ™ Top 100
China different focus
CHINA TOP 501495443322211-
GLOBAL TOP 503
1211---831-336
CHINA TOP 50Food & Drink Financial InstitutionsTechnologyApparelWhite GoodsMedicineTelecom OperatorsRetailOil & GasAirlinesPersonal CareCarsOther
CHINA TOP 50Trustworthy
DesirableDifferent
CaringFriendly
Kind
GLOBAL TOP 50Trustworthy
DesirableIn ControlAssertive
Wise
BRANDZ™ Top 100
Brand Character
BRANDZ™ Top 100 China Top 50 Brands: Much softer, kinder and caring
BRANDZ™ Top 100
More trusted then recommended
CHINA TOP 50110103
GLOBAL TOP 50107104
CHINA TOP 50Trust Recommendation
BRANDZ™ Top 100
China local lower quality but more affordable(China: local brands vs. foreign brands)
Has excellent qualityIs safeStrong functionality
Setting the trendsIs international
Is value for money
Is different from othersHas a long historyHas its own culture
Has affordable price
Source: BrandZ database and MB China ideablog study
-58%
-50%
-34%
-32%
-29%
-16%
-2%
10%
5%
42%
BRANDZ™ Top 100
China TOP 50 not so premium
CHINA TOP 5010899
____109
Good Value
GLOBAL TOP 50113105____108
Justified Premium
CHINA TOP 50Desire Price______________Desire/Price gap
(Average brand = 100)
FINAL THOUGHTS
RECOVERY TOGROWTH
Change is INEVITABLEunderstand and anticipate
Deliver the Futureinnovate and differentiate
LISTEN closely, converse with customers
and talk CLEARLY be open, honest, build trust
Deliver a GREAT EXPERIENCE
Stand for SOMETHINGoriginal, consistent, more!
BREAK THE
RULES!