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GLOBAL 2016: Brands strong in key metrics outperform Top 100 growth

Over the past 11 years, the BrandZ™ Top 100 Most Valuable Global Brands increased 133 percent in value. Certain brands outperformed that rate of growth while others underperformed. To find out why, we looked at four BrandZ™ metrics: Potential, Innovation, Brand Experience and Love. 

These metrics work together in a cumulative way to drive brand value. Brands that score high in Potential achieve those scores in part by being Innovative. Innovative brands provide customers with a great Brand Experience. And great Brand Experience increases Love for the brand.
 
Of course, no brand can survive on love alone. But love can help sustain a brand during disruptive times like these. And when mistakes happen, as they inevitably do, consumers are more forgiving of brands they regard with affection.
 
To measure the impact of each of these four metrics on the growth of brand value, we selected 95 brands that are common to both 2006 and 2016, and for each metric we divided the 95 brands into three groups based on how they scored: Low, Medium or High. We then calculated the value change for each group over the 11 years between 2006 and 2016.
 
We found a strong relationship between high scores on each of the four metrics and accelerated brand value growth. In other words, a brand that scored high in Potential also grew more in value. This analysis provides a roadmap for growing brand value, which is especially important because high brand value correlates with commercial success.
 
Finally, to score high in Potential, Innovation, Brand Experience and Love, brands must first achieve strong brand equity. That is, they must be Meaningful (meeting functional needs and generating emotional attachment); Different (seen as being distinct from the competition); and Salient (coming to mind quickly when the consumer is making a purchase decision).
 

Over the past 11 years, the BrandZ™ Top 100 Most Valuable Global Brands increased 133 percent in value. Certain brands outperformed that rate of growth while others underperformed. To find out why, we looked at four BrandZ™ metrics: Potential, Innovation, Brand Experience and Love.
 
These metrics work together in a cumulative way to drive brand value. Brands that score high in Potential achieve those scores in part by being Innovative. Innovative brands provide customers with a great Brand Experience. And great Brand Experience increases Love for the brand.
 
Of course, no brand can survive on love alone. But love can help sustain a brand during disruptive times like these. And when mistakes happen, as they inevitably do, consumers are more forgiving of brands they regard with affection.
 
To measure the impact of each of these four metrics on the growth of brand value, we selected 95 brands that are common to both 2006 and 2016, and for each metric we divided the 95 brands into three groups based on how they scored: Low, Medium or High. We then calculated the value change for each group over the 11 years between 2006 and 2016.
 
We found a strong relationship between high scores on each of the four metrics and accelerated brand value growth. In other words, a brand that scored high in Potential also grew more in value. This analysis provides a roadmap for growing brand value, which is especially important because high brand value correlates with commercial success.
 
Finally, to score high in Potential, Innovation, Brand Experience and Love, brands must first achieve strong brand equity. That is, they must be Meaningful (meeting functional needs and generating emotional attachment); Different (seen as being distinct from the competition); and Salient (coming to mind quickly when the consumer is making a purchase decision).
 
 
 
High Potential predicts market success…
Brands that scored high in Potential in 2006 increased brand value by 200 percent between 2006 and 2016, while low-scoring brands increased brand value by just 31 percent.

Source: BrandZ™ / Millward Brown
95 common brands valued in both 2006 and 2016

 
 
… Brands seen as Innovative grew value much faster ...
Innovation is a BrandZ™ metric that measures the extent to which brands are viewed as different, creative and likely to shake things up. Innovation is also a key driver of brand value. Brands that scored high on Innovation in 2016 increased in value 154 percent over the previous 11 years, while brands scoring low in Innovation increased in value only 17 percent.
 

Source: BrandZ™ / Millward Brown
95 common brands valued in both 2006 and 2016

 

… Innovation contributed to great Brand Experience…
A great Brand Experience is defined by several components, including: standing for something unique; meeting needs, making people’s lives better, and having a better online presence. Brands scoring high in Brand Experience grew 166 percent in brand value; brands with low scores decreased 0.4 percent.
 

Source: BrandZ™ / Millward Brown
95 common brands valued in both 2006 and 2016

 
 

 
… All these factors culminated in greater brand Love
Ultimately, high scores on Potential, Innovation and Brand Experience help create brands that are loved, and brands that are loved increase faster in value. Brands with high Love scores increased value by 183 percent over the past 11 years. Brands low in Love increased only 22 percent.

Source: BrandZ™ / Millward Brown
95 common brands valued in both 2006 and 2016