BrandZ™ Analysis: Brand Contribution
High Brand Contribution
drives volume, premium
And it adds stability in disruptive markets
Brand Contribution is the BrandZ™ metric that assesses the extent to which brand alone, independent of financial or market factors, drives purchasing volume and enables a brand to command a price premium. Brands that score well in Brand Contribution are viewed positively by consumers.
High Brand Contribution can take time to build, but it is a sustaining force. Of this year’s Brand Contribution Top 15, all but four appeared in the Brand Contribution ranking a year ago. The newcomers are Falabella, a Chile-based Latin American department store chain that entered the Retail Top 20; Guinness, the global beer, returning to the Brand Contribution Top Risers after a brief absence; PayPal, the payments brand; and the logistics brand FedEx.
The No. 1 and No. 2 Brand Contribution leaders—Pampers and Coca-Cola—illustrate the impact of strong Brand Contribution. Both brands are experiencing ongoing category pressure. In some markets, including China, Pampers faces fierce online competition from challengers commoditizing the diaper category. Consumer health concerns continue to impact Coca-Cola and the soft drinks category. With strong Brand Contribution, both brands gain time to implement the long-term strategies needed to confront these challenges.
Similar to last year, the the beer and luxury categories are well represented in the Brand Contribution ranking, with six brands and three brands, respectively. Brands in both categories rely heavily on the consumers’ perception of value. And brands in both categories invest in brand building and communication. In addition to beer and luxury, six other categories are represented with one brand apiece: baby care, soft drinks, personal care, payments, logistics, and retail.
Brand Contribution is expressed on a scale of one to five, five being highest.