Five Key Steps to Improve Your Brand

Five Key Steps to Improve Your Brand

Among the many permanent changes brought about by the pandemic, there will be the higher standards to which stakeholders of all stripes must hold brands. This will apply to all industries and markets, according to a recent report “2021: The world’s most valuable brands” from the Kantar Group. Companies will have to “adapt quickly to these new expectations of trust, value and mutual responsibility”.

The report draws on Kantar’s proprietary database, which includes “information from nearly 4 million consumers about their attitudes towards (and their relationships with) 18,500 brands in 512 categories in 51 markets.” Kantar also surveys more than 170,000 consumers each year in more than 50 countries.

Brands that score high as “significantly different – which emotionally connect with people and set trends in the market – have also seen impressive gains in brand value.” Brands like Apple and Amazon not only have the greatest reach in the market. They also connect deeply with the feelings of consumers.

Definition of Brand Value

Accountants and marketers have yet to agree on a formal GAAP approach to valuing brands. Pending that deal, Kantar’s approach is a promising two-step way to measure brand value.

First, the research examines financial value: that is to say “The proportion of the parent company’s total dollar value that can be attributed to the brand in question, taking into account current and future performance.

It then evaluates the brand contribution: “Share of the financial value generated by the brand’s ability to increase the purchase volume and invoice the premium.

Brand value is “the dollar amount that the brand contributes to the overall business value of the parent company.” This approach aims to isolate the value generated by the strength of the brand alone in the minds of consumers, that is, without any other element.

The result is “a holistic picture of brand equity: a picture that incorporates how the market values ​​a company’s brand assets – and the way ordinary people do, too.”

The Great Acceleration

As in all areas, the pandemic “has exponentially accelerated the existing models of business evolution towards digitalization, towards sustainability, towards corporate responsibility”.

Kantar found that the greatest acceleration came “from the relationship between brands and technology. Across all categories, technology-driven brands “now represent over 50% of the value of the Top 100 brands. This figure includes major social media, electronics, and business service brands like Facebook, Apple and Microsoft, but also tech retailers like Amazon and Pinduoduo.

Fast food brands like McDonald’s and Chipotle “have capitalized on their digital ordering apps and delivery partnerships.” Telecom brands “have finally shaken up their customer experience by unveiling new virtual showrooms”. Shoppers around the world have “embraced online ordering of beauty and home products.”

Businesses around the world have “embraced new telecommuting technologies and services, as part of a rapid transition to working from home.” So there has been “a massive, cross-category shift towards e-commerce and online ordering services.”

So Domino’s is no longer just a pizza company: “It’s an expert in last mile delivery, with efficiency protocols and customer service standards that would be world class in any industry. This need to control “last mile” logistics has “forced the big brands to think smaller and act more locally”.

The pandemic has obviously increased the importance of the home. Homes have become “prime sites for shopping, entertainment, work and consumption, with far-reaching consequences”.

In the process, brands have become more and more important. Kantar’s Top 100 Most Valuable Global Brands recorded a massive 42% increase in value from last year. now amounting to $ 7 trillion in total value, up from just $ 1.4 trillion in 2006.

Look in The Mirror, Not Out the Window

The report also contains five key recommendations for companies looking to grow their brand. An essay by knowledge leader Walker Smith argues that “the fundamental prerequisite for growth is the courage to grow. The obstacles to growth lie within the company itself. Growth is rarely held hostage to the market.

Even in the industries hardest hit during the pandemic, brands that turned to delivery, e-commerce, privacy guarantees, home-centric solutions, hygiene signage and virtual experiences were able to emerge. develop.

1. Focus on Good Deeds

Two things are of particular importance. The first is a full-fledged commitment to customer focus. The second is a company-wide competency in organizational learning.

2. Develop the cCategory, Not Just the Brand.

Strong brands often outperform the odds in weak categories, but growth-oriented companies do more. They take control of their categories and expand the category boundaries.

In this way, “animal feed becomes pet care, the automobile becomes intelligent mobility, alcoholic beverages become social drinks, cleaning becomes public health, dairy products become protein, and the local pharmacy. becomes local health care ”.

3. Move from Small Ideas To Transformative Ideas

In a rapidly changing market, the logistical complexity of managing multiple brands is increasing exponentially. Companies need to invest in “fewer, even bigger brands”. Innovation, too, must “move from small ideas to transformative ideas worth the logistical complexity”.

4. Find Profit Through A Goal

The pandemic has put more emphasis on the goal. Kantar’s analysis shows that “accountability is three times more important for reputation than ten years ago.” Competition for talent will reinforce this trend.

5. Plan Scenarios Beyond “Business as Usual”

In a world where disruption is the new normal, Kantar recommends “bundling the detection of downward and upward trends and the evaluation of futures.” Businesses need to move beyond “best-in-class” thinking and seek growth outside the comfort zone of “business as usual”.

The Best Global Brands 2021

According to the report, the top ten brands in 2021 in descending order are Amazon, Apple, Google, Microsoft, Tencent, Alibaba, Visa, McDonald’s and Mastercard.

The 158-year report covers these, as well as the 90 other major global brands, as well as the sectors involved, in great detail. Overall, the report is a wealth of information on modern branding.