DRIVING BRAND GROWTH 132,000 BRAND REPORTS

Transcription

1 DATABASE CONSISTS OF 132,000 BRAND REPORTS DRIVING BRAND GROWTH Successful brands have many characteristics, but they can be distilled into three broad areas; being different, being meaningful and being salient. Brands that increase their salience are likely to grow; and if they are meaningfully different they re likely to grow faster. And, strong marketing activity can help brands grow across all three of these measures. SALIENT People will often buy the brands that quickly come to mind when a need arises these brands are salient. One of the most salient brands in the world is Coca-Cola. The Millward Brown chart below from BrandZ illustrates this (the circumference of each segment shows how important the factor is within the category, and the radius shows how strongly the brand performs on that factor; the score is the brand s performance indexed on the category average). Coca-Cola is highly salient in the soft drink market in Mexico, as it is in many other markets. The Power score, shown in the center of the chart, is derived from attitudinal measures and indicates the likely share of market of the brand based purely on predisposition. Mexico: Coca-Cola Other examples of highly salient brands include: Sberbank in Russia, PZU Insurance in Poland, Aeroflot in Russia, Hyundai in Korea, Skoda in Czech Republic, and McDonald s in many countries. DIFFERENT For many years it has been rare (although not impossible) for brands in most categories to be substantially different in function; however even a small difference can be enough to tip the balance in favor of your brand over the competition. The difference could be a feature, a feeling, an impression; or even residual associations from a prior functional advantage. And in markets where technologies are rapidly developing, substantial differences are not uncommon but you need to ensure that potential customers recognize the difference, or recognize that your brand has redefined category expectations and is setting trends for others to follow. The Apple iphone is a great example of a brand succeeding by being so different that it redefined the category. Launched in 2007, the iphone established design precedents, like its button placement and screen size. While less expensive copies quickly appeared on the market, the iphone has retained its perception as being different, and maintains a high market share despite premium pricing. In addition to being physically different, the iphone also has a distinctive personality; being seen as idealistic, assertive, sexy, adventurous and desirable. It is one of the reasons why Apple regained its number one position in the Millward Brown/ WPP Top 100 Global Brands ranking in The chart below shows that in China, the iphone performs well on being meaningful and salient, but is seen as massively different.

2 DATABASE CONSISTS OF 100,000 ADS China: Apple iphone US: Levi s Other examples of highly different brands include: Tesla in Norway, Pampers in Germany, Ikea in the Netherlands and Poland, Free mobile in France, and the Apple iphone in many countries. In China, the cooking oil market is dominated by established Chinese brands; but Western olive oil is establishing itself, notably through the Chinese brand Mighty. While still not particularly salient, the brand is noted as being meaningful and different. MEANINGFUL Marketing plays an important role in creating brand meaning and shaping the brand experience. A meaningful impression made by a brand on consumers can be a powerful influence, whether it s based on tangible or intangible aspects: an emotional affinity or a sense of functional needs being met. A brand s meaning for you might simply be that it s familiar when others aren t, or the design may look more distinctive; but most likely it will stem from personal experience of a brand: Your mother may have used the brand, it may have been recommended to you by a friend, or you ve found it meets your needs better than other brands. Levis, a long established brand in the US, is seen as both meaningful and salient in the women s apparel market. While not seen as particularly different, the brand is considered trustworthy and straightforward. China: Mighty Source: Millward Brown/WPP BrandZ study

3 DATABASE CONSISTS OF 1,400 CASE STUDIES Other brands considered highly meaningful in certain markets include: All Nippon Airways in Japan, Singapore Airlines in Singapore; Toyota in Thailand; Google in France; Samsung in China; Castrol in India, and Sberbank in Russia. THE BENEFITS OF BEING MEANINGFUL, DIFFERENT AND SALIENT The examples given above demonstrate patterns we see in the Millward Brown global BrandZ database, that covers almost 200,000 brand reports. Brands can succeed by being meaningful, different or salient, or a combination of the three. But, are these three characteristics equally important? The analysis below examines if a brand is Meaningfully Different (top quartile for each) in one year, and overlays that with its change in salience over the next five years; and relates that to its change in survey-based market share over the same period. The analysis highlights that building saliency is an important thing to do: Brands that increase their saliency are likely to grow. But meaningfully different brands tend to grow more than twice as fast; and typically grow even if salience does not. If your brand is meaningfully different, growth can be accelerated. Being Meaningfully Different amplifies Salience BECOMING MORE SALIENT So how do brands improve their performance on these key measures? Strong marketing activity can have a powerful effect. UK airline, easyjet, launched its Europe by easyjet ad campaign to move on from its cheap and cheerful positioning. The campaign, which highlighted the joy and human connection made possible by low-cost airfare, was highly impactful. Millward Brown s BrandZ data shows the brand enjoyed a huge increase in salience as well as an increased Power score (predisposition). UK: Easyjet Volume Growth/Decline over 5 years Salience Grows BECOMING MORE DIFFERENT Meaningful Difference Weak +13% -8% +29% +10% Meaningful Difference Strong In China, the premium toothpaste Yunnan Baiyao has been enjoying substantial growth (from 8.5 percent in 2013 to 10.6 percent in Euromonitor) despite strong competition from major global brands. The product contains Chinese herbs claimed to help bleeding gums, and is increasingly noted as being different. Its digital advertising and content sponsorship, emphasizing its heritage and oral problem solved message, positions the brand as increasingly meaningful; and its Power score is growing. Salience Declines Source: Millward Brown BrandZ analysis 2015

4 DATABASE CONSISTS OF OVER 900 CONFERENCE PAPERS AND MAGAZINE ARTICLES China: Yunnan Baiyao In the UK, supermarket brand, Aldi introduced the swap and save challenge. While Aldi was known as a discounter, the campaign aimed to overcome perceptions of limited range, and the social stigma of shopping at a discount store. Through TV, print and digital, consumers followed aspirational people challenged to use Aldi for their main shop for four weeks. Market share increased, the brand was seen as increasingly different; and the Power score improved. The Aldi campaign won an IPA Effectiveness award. UK: Aldi Grocery Stores 2012 In 2007, Samsung s wide range of handsets and low pricing meant it was seen as meaningful by many consumers. Good distribution and heavyweight advertising kept the brand salient. Aggressive innovation in the form of the Galaxy (2009) grew perceptions of the brand s difference, which led to increased market share in the US as shown in the chart below Samsung grows Differentiation with the launch of the Galaxy In the US, Trader Joe s sells unusual foods at a good price in a characterful store environment. The brand had advertised on local radio, outdoor and social media, but largely ignored traditional marketing, relying on customer experience and word of mouth. Brand salience has remained low over the past few years but the store has been increasingly noted as being different; its indexed score rose from 158 to 196. Both its Power score (predisposition), and market share have also grown (0.9% in 2011 to 1.1% in Euromonitor) Meaningful Different Salient BECOMING MORE MEANINGFUL Aviva, a UK insurance company, used the wellknown comedian Paul Whitehouse, playing a series of characters, to communicate messages about Aviva s value, service and innovations. Car quotes soared. BrandZ data showed that the brand was seen as more meaningful; and the Power score grew. The campaign also won an IPA Effectiveness Award.

5 DATABASE CONSISTS OF OVER 900 CONFERENCE PAPERS AND MAGAZINE ARTICLES UK: Aviva Insurance 2009 GROWING ACROSS MULTIPLE MEASURES Successful marketing activity will often help brands grow across more than one of the key measures Coca-Cola s I Lohas brand was launched in Japan in 2009 around an eco-friendly positioning. The brand tapped into an unmet need in order to disrupt the bottled water category: Research revealed that consumers wanted to do something about environmental issues but acknowledged that their behavior had not changed. Thin and lightweight PET bottles offered Coca-Cola s I Lohas the chance to create a ritual out of twisting the bottle, offering the consumers the means to choose a brand with a lower carbon footprint and demonstrate their commitment to the environment. The brand is increasingly meaningful, and topped $1 billion retail sales in, showing 8% year on year growth. Japan: I Lohas The Dove brand has become synomymous with its Real Beauty campaign, which began in 2004, but still benefits the brand, in this very aggressive category. In 2013 their Real Beauty Sketches drew attention to low self esteem in a striking way, involving artists drawing sketches based on women s descriptions of themselves. The campaign won an IPA Effectiveness Award. Over the period in the UK, Dove grew in saliency and meaningfulness. UK: Dove Female Beauty and Skincare The Commonwealth Bank (CBA), a well-known brand in Australia, has had to fight off a number of competitive threats including the growth of new regional banks. To do so, Commonwealth doubled down on customer service with their CAN campaign. CBA invested over a $1billion in technology enabling them to take the lead on innovation and customer experience. The launch of the CAN campaign was well executed with strong alignment across all touch points. This amplified the brand inmarket, maintaining its leadership status. CBA equity grew strongly on all three measures and expanded its share of market both attitudinally and in terms of customers. 9

6 DATABASE CONSISTS OF OVER 900 CONFERENCE PAPERS AND MAGAZINE ARTICLES Commonwealth Bank s CAN campaign helped grow equity by focusing on a differentiated experience In China, Blue Moon detergent has focused on an integrated campaign with heavyweight spend, except for 2012 when they stopped above the line to focus on instore efforts; Blue Moon staff helped educate consumers about the benefits of the product. Over a four year period the brand has become much more meaningful, different and salient. Power has grown, and value share has increased rapidly. In China Blue Moon detergent engaged people in-store to engage consumers with a different experience Premium Index : 106 Premium Index : Meaningful Different Salient Power Source: Millward Brown BrandZ study 2013 In 2011, Volkswagen China was losing its positioning and was increasingly seen as mainstream, sensible and utilitarian. The brand was facing falling market share. They launched the People s Car Project, a platform to inspire Chinese people to contribute their ideas for future car designs. In 2012, Volkswagen celebrated the people s ideas by turning them into reality. Volkswagen s design team took on an idea for a hover car and developed it using magnetic levitation technology which they depicted in a series of films. The brand has become more salient, meaningful and different. Its Power score has grown, and sales were up from 2.6million in 2012 to 3.4 million in (Wards Automotive Reports and Sterne Agee estimates) Source: Millward Brown BrandZ Study Brands that are salient, and perceived as different and meaningful stand the best chance of growth; and strong marketing activity can help develop this equity. China: Volkswagen