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Brand Power drives sales and brand value growth

Brand Power is the BrandZ™ metric of brand equity, the predisposition the consumer’s mind that influences selection of one brand over another. It correlates with both sales and brand value growth. To measure the impact of Brand Power on brand value, we divided the 85 brands that appear in the 2006 and 2017 BrandZ™ Global Top 100 ranking into three equal groups, according to their Brand Power scores.

 

Brand Power is the BrandZ™ equity metric that describes the predisposition of consumers to choose a brand.  It correlates with both sales and brand value growth. To measure the impact of Brand Power on brand value, we divided the 85 brands that appear in the 2006 and 2017 BrandZ™ Global Top 100 ranking into three groups, according to their Brand Power scores.

 

The group with the highest Brand Power scores grew 171 percent in brand value over the past 12 years. The middle group increased 125 percent, which was twice the rate of the lowest group, which increased in value only 59 percent.

 

Brands that appeared in the 2006 Global Top 100 but dropped out of subsequent rankings scored reasonably well in Brand Power, 133. (An average score is 100.) However, brands that appeared in both the 2006 and 2017 ranking scored much higher (172), as did brands that joined the ranking in 2017 (178).

 

When we tried to understand why some brands dropped from the ranking and other brands joined it, we found one striking distinction: age. Brands new to the ranking, on average, started 20 years ago, in 1997, while brands that dropped from the ranking started 64 years ago, in 1953. Because of their relative youth, the newcomer brands made an impression on consumers who viewed them as much more Creative, Fun, Adventurous, and Brave.

 

Brand Implication

The Brand Power score changes over 12 years confirm the importance of brand. Brands that increased in Brand Power—that created and amplified Meaningful Difference—should enjoy a large and ongoing advantage in growing sales and value. Sustained high Brand Power is necessary to remain in the BrandZ™ Global Top 100.

 

 

 

High Brand Power drives value rise…

Brands with the highest Brand Power scores grew the most in brand value—171 percent—over the past 12 years.

 

 

… Remaining and new brands grow the most in value…

Compared with brands that dropped out of the Global Top 100, those that appeared in both the 2006 and 2017 ranking, and brands that joined the ranking in 2017, scored much higher in Brand Power.

 

 

 

 

… And the new brands are younger and more exciting

Brands new to the Global Top 100 were generally much younger and more exciting than the brands that dropped out.