Ranking remains consistent year-on-year
Brand Contribution, a BrandZ™ metric, measures the value of a brand itself—the intangible asset that exists in the minds of consumers—stripped of any market influences, such as price, availability, and distribution. Put another way, Brand Contribution is the portion of a financial value generated by the brand’s ability to increase purchase volume and charge a premium.
Brand Contribution can take time to build, but it is enduring. Except for one brand—the tire brand MRF—the 2017 Brand Contribution Top 10 is identical to the Brand Contribution Top 10 from last year, and little changed from 2015 and 2014. Brand Contribution is expressed as an index that is scored 1 to 5, with 5 being the best score.
Brand Contribution high scorers typically have cultivated the three BrandZ™ components of brand equity. They are Meaningful (consumers have an emotional affinity with them and feel the brands meet their needs), Different (consumers feel they are distinctive or trend setting), and Salient (consumers think of them quickly when considering a purchase in the relevant category).
Brands high in Brand Contribution enjoy strong Brand Power, the BrandZÔ metric of brand equity, and they increase brand value faster. Between 2014 and 2017, brands with high Brand Contribution increased 38 percent in brand value on average, while brands with low Brand Contribution increased only 18 percent.
In addition, brands high in Brand Contribution have a high Vitality Quotient (VQ), a BrandZÔ metric of brand health. The VQ score is a composite of the scores in five indicators: Brand Purpose, Innovation, Communications, Brand Experience, and Brand Love.
An average score for VQ and for the five indicators is 100. Brands with high Brand Contribution achieve a VQ score of 116. Other brands in the India Top 50 averaged a score of 108. Brands high in Brand Contribution also outscored other Top 50 brands, on average, in the five indicators.