Brand contribution is a metric that quantifies the strength of a brand exclusively, without financial or other elements. It’s a critical component in the calculation of brand value.
Brands that score high in brand contribution have distinguished themselves in the consumer’s mind. They’ve effectively differentiated from the competition and generated high customer loyalty. They’re resilient during market fluctuations because of their engagement with the consumer.
To determine brand contribution we analyze relevant corporate financial data and strip away everything that doesn’t pertain to the branded business. Then we go further, with a step that makes BrandZ™ unique and definitive among brand valuation methodologies.
We conduct ongoing, in-depth quantitative consumer research with more than 150,000 consumers annually, across more than 30 countries, to assess consumer attitudes about over 10,000 brands. Our database includes information from over two million consumers.
This step quantifies the power of the brand in the mind of the consumer that creates predisposition to buy and, most importantly, validates a positive correlation with better sales performance. We call this factor brand contribution and express it as an index of 1 to 5, with 5 being the most positive score.
The 15 brands ranked in the Brand Contribution chart scored highest in brand contribution among all of the brands examined, including both brands in the BrandZ™ Global Top 100 and the category rankings.
Luxury is the most represented category, with six brands. But one of the clearest take aways is that brands of any size, and regardless of product category or place of origin, can achieve high brand contribution.
The 15 ranked brands represent nine different product categories. And the brands range in size from the North American fast food operator Panera, with a brand value of $2.9 billion, to the Coca-Cola brand valued at $67.7 billion in the soft drinks ranking.
The luxury brands are European. Baidu is the Chinese search engine and online portal. From Latin America, Aguila is an Argentine beer and Falabella is a retailer based in Chile with department stores and other outlets throughout the region.
In addition, high brand contribution provides staying power. These nine brands that rank in this BrandZ™ Top 100 Most Valuable Global Brands 2014 also appeared as brand contribution leaders in 2013: Aguila, Gucci, Panera, Pampers, Chanel, Coca-Cola, Falabella, Baidu and Louis Vuitton.
Six of these nine – Pampers, Chanel, Coca-Cola, Falabella, Baidu and Louis Vuitton –
also appeared in the 2012 brand contribution ranking. Hermès and Rolex, which appeared in 2012, returned in 2014.
Of the remaining four brands, Gillette has appeared in the brand contribution rankings of earlier BrandZ™ Global Top 100 reports. Audi, Burberry and Stella Artois have reinvigorated distinguished brand heritages.
Brands of any size, and regardless of product category or place of origin, can achieve high brand contribution.