Finding the love – using love and innovation to fuel future growthLove is not all you need, but it certainly helps when it comes to building a valuable, profitable brand. Brands that are loved by consumers post the strongest growth in brand value in the long term, and there’s a strong correlation between love and innovation that creates a virtuous cycle of benefit to brands.
The BrandZ measure of love isn’t just about appearing caring, although that can certainly help. Love measures the emotional affinity of a brand, and it is usually closely linked to performance and innovation. Innovation inspires a consumer to try something new, and when performance lives up to expectations and there’s a sense of partnership between brand and user, that can lead to love. This love then helps sustain a brand during the time between innovations. Love is difficult to create in itself, but brands that are driven by innovation often find love will come naturally.
Indonesian brands were found lacking in both love and innovation in the inaugural BrandZ Top 50 brand valuation in 2015 in this market. In the year since then, however, Indonesia’s strongest brands have closed the love and innovation gap with the BrandZ Global Top 100.
The average score of all brands on the BrandZ love scale and the innovation scale is 100. Indonesia’s leading brands last year were performing better than the global average, but only just, and were some distance behind the strongest brands in the Global 100. This year, they have narrowed the gap significantly.
How love and innovation power future growth
Brands that are associated with innovation get talked about and tried. When people’s experience of a brand is as good as they’d hoped, they start to fall in love. This is not just nice to have for a brand – it counts towards the bottom line. When 95 global brands taken from a decade of BrandZ™ analysis were assessed, the third with the strongest love scores were found to have grown at nine times the rate of the bottom third. Innovation and disruption can therefore lay a path to greater riches – provided consumers notice the innovation and see it making a meaningful difference to their lives.
The most innovative brands in Indonesia are the most loved, and this fuels their potential future growth. The Top 25 most loved brands in this year’s ranking also over-index in terms of their future potential to grow.
And the top 25 most innovative brands are 32 percent more likely experience future growth.
BrandZ Global research shows how innovation has fuelled love and brand value for some of the best-known and most valuable global brands. Nike, for instance, which is ranked 24th in the BrandZ Top 100 Most Valuable Global Brands 2016 with a brand value of over US$37 billion, uses innovative materials in its products and provides personalized service through its Nike+ app. Tesla has rocketed into the BrandZ™ Top 10 most valuable car brands with its self-drive and electric technology, and its charismatic founder Elon Musk, helps the brand stand out in a similar way to the early days of Facebook and the fast-growth years of Apple.
Theory in Action – Indomie
Fostering innovation and love is the next challenge for Indonesia’s most powerful brands. They must protect and refresh the values and associations that have made them so meaningful in Indonesia. But they must also find new moments, touchpoints and services to bring to life a bigger societal purpose, and to extend the role that the brand plays in the daily lives of consumers.
Indomie is the first name in noodles in Indonesia, and ranks number one in the country on the BrandZ™ love scale. It is the biggest instant noodle brand in the country and is well known and trusted. But what makes it so loved is that it is always innovating, releasing new flavors and variants, and through its communications promotes that innovation in an emotionally powerful way. Its flavors are uniquely Indonesian, and it celebrates the country’s vibrancy and diversity. It is not just different but meaningfully different.
Indomie’s love ranking is 139 compared to a global average for all brands of 100.
Indomie’s innovation ranking is 121 compared to a global average for all brands of 100.