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Investing in brand supercharges value

There are some brands that punch well above their financial weight in the BrandZ™ rankings by building strong brand equity. Brand equity serves as a sort of “rocket fuel” that adds real pep to the influence and value of brands, and we measure it through Brand Contribution. Brand Contribution is scored on a scale of one to five, and it is a measure of the influence of brand equity relative to other in-market aspects (such  as promotions or distribution) in driving consumer choice. Value can of course come from in-market activity, but value derived from brand equity is particularly hard for competitors to replicate. This score is what helps make BrandZ™ a distinct and important ranking; BrandZ™ is the only brand valuation methodology that includes the customer view obtained through in-depth consumer research – conversations with the people who know and buy these brands.

Businesses that focus on brand development can supercharge their performance in the rankings. For example, Thuisbezorgd.nl and Nationale Nederlanden have very similar brand values, and rank 12th and 13th in the Dutch Top 30. Nationale Nederlanden is a bigger corporation than Thuisbezorgd.nl, with more financial value, but it has a Brand Contribution score of two out of five. Thuisbezord.nl, meanwhile, makes up for its comparative lack of financial size with a Brand Contribution score of four – the second largest possible – and this powers it to a place just ahead of Nationale Nederlanden.

Unusually, the brands with the highest Brand Contribution scores in the Dutch Top 30 all hail from the realms of food and drink, with all six beer brands and both coffee brands present in the rankings earning Brand Contribution scores of four or five. Grocery Albert Heijn and Thuisbezorgd.nl round out the top 11. That said, this list also shows that a brand does not, as a rule, need premium positioning to earn a high Brand Contribution score; price point is no barrier to building a strong brand.