BrandZ™ analyzes implications for categories
A new BrandZ™ Index called Vital Signs assesses brand health across five diagnostic indicators—Brand Purpose, Innovation, Communications, Brand Experience, and Love. The average Vital Signs score, a composite of the individual indicator scores, is 100.
The healthiest brands start with a clear Brand Purpose and related Innovation, according to BrandZ™ research. Effective use of Communications to explain Brand Purpose and Innovation leads to positive Brand Experience, which helps solidify the customer relationship. Love, an outcome of this process, helps sustain the customer relationship.
People see brands with strong Vital Signs as Meaningful (meeting needs in relevant ways) and Different (distinctive and trend setting). Meaningful brands successfully grow market share, and Different brands are more able to command a higher price premium.
Most important, Meaningful Difference is a key driver of brand value. Of the 86 brands valued both in the 2006 BrandZ™ Global Top 100 and the current report, the top third in Meaningful Difference increased 207 percent in brand value. In contrast, the bottom third in Meaningful Difference increased only 47 percent over those 12 years.
Vital Signs and Meaningful Difference scores reflect category health. Of the 14 categories studied in this report, the Technology Top 10 scored highest in Vital Signs, 116, and increased 292 percent in brand value over the past 12 years. The Global Banks Top 10 scored average in Vital Signs, 100, and declined 16 percent over the past 12 years. The analysis that follows will expand on the presence of Vital Signs and Meaningful Difference across categories and the implications for brands.