2018 COLMAR BRUNTON CORPORATE REPUTATION INDEX

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2018 COLMAR BRUNTON CORPORATE REPUTATION INDEX
COLMAR BRUNTON
C O R P O R AT E R E P U TAT I O N I N D E X

             2018
        I N PA R T N E R S H I P W I T H
      W R I G H T C O M M U N I C AT I O N S
2018 COLMAR BRUNTON CORPORATE REPUTATION INDEX
THE 2018 NZ CORPORATE REPUTATION RANKING

 Uses the global RepZ          17 Industry categories       Nationally               Survey period from
 framework with                                             representative sample    end October 2017 to
 standardised reputation       Brands indexed against       by age, gender and       December 2017
 attributes                    major competitors in their   region.
                               category to remove
 Includes New Zealand’s top    industry bias                Average sample size of
 100 consumer facing                                        n=500 per category
 corporates by revenue as
 listed in Deloitte Top 200,
 plus includes financial
                                                            Over 20,000 New
 services brands
                                                            Zealanders interviewed
                                                            over last 4 years
2018 COLMAR BRUNTON CORPORATE REPUTATION INDEX
Our model focuses on the four pillars driving reputation weighted by their impact on
advocacy

                                                                                                 PURPOSE
   SUCCESS                                                                                SUBSTANCE

        28%                          22%                    14%                     36%

  LEADERSHIP/                    FA I R N E S S      RESPONSIBILITY                TRUST
    SUCCESS

 › Well known                 › Charge fair prices   › Treat employees well   › Can be trusted
 › Leaders not followers                             › Environmentally        › Positive influence
                                                       responsible              on society
 › First to market with new
   products & services                                                        › Honest and ethical
                                                                                in the way they
 › Offer investors                                                              conduct business
   a good financial return
2018 COLMAR BRUNTON CORPORATE REPUTATION INDEX
Compared to global consumers, New Zealanders still respond more strongly to
 corporates that show they care

                                                                               PURPOSE
   SUCCESS                                                               SUBSTANCE

           LEADERSHIP/
           SUCCESS             FA I R N E S S   RESPONSIBILITY         TRUST

 NZ IMPACT ON
  ADVOCACY      28%      50%          22%           14%          50%      36%

GLOBAL IMPACT
 ON ADVOCACY    35%      67%          32%           17%          33%      16%
2018 COLMAR BRUNTON CORPORATE REPUTATION INDEX
WHY IS REPUTATION
IMPORTANT AND WHAT
CAN WE LEARN FROM
OUR REPUTATIONAL
LEADERS?
2018 COLMAR BRUNTON CORPORATE REPUTATION INDEX
A RepZ score of >105 places corporates into a “Resilient Zone”.
We see little movement in ranking amongst our top performing organisations
even if they face tough issues

    9% LOW                           72% MID                              19% HIGH
2018 COLMAR BRUNTON CORPORATE REPUTATION INDEX
MOST POPULAR POSITIVE BRANDS AND THEIR SENTIMENT (TOP BOX)

We can see
the benefits of                                                                               New
                                                                                              World

having a strong
                     Average Sentiment
                                                                                                               Air New Zealand

                                                                                The

reputation by                                                                Warehouse
                                                                          Apple
                                                                                             Briscoes     Auckland
                                                                                                        International

people’s ability                                                   AA
                                                                Insurance
                                                                                  Z Energy
                                                                                                           Airport

to recall positive
                                                              Pak’nSave             Toyota
experiences
                                                   Fisher &
                                                    Paykel
                                                                    TVNZ

                                                                     Average Intensity
2018 COLMAR BRUNTON CORPORATE REPUTATION INDEX
95% of the thinking we do is automatic and informs most of our judgement

                                              95%                                 SYSTEM 2
                                        SYSTEM 1                                  Slow, effortful
                                                                                  Logical, deliberative
                                      Fast, effortless                            Conscious
                      Look for patterns/associations                              Allows for reflection
                                       Unconscious
                              Jumps to conclusions

            If what we see and hear doesn’t connect with a personal
            experience, it is difficult to shift a pre-existing bias

              Source: Thinking Fast & Slow - Daniel Kahneman Nobel Prize Winner
2018 COLMAR BRUNTON CORPORATE REPUTATION INDEX
SYSTEM 1 IS MORE
INFLUENTIAL THAN
YOUR EXPERIENCE
TELLS YOU, AND IT IS
THE SECRET AUTHOR OF
MANY OF THE CHOICES
AND JUDGEMENTS YOU
MAKE
2018 COLMAR BRUNTON CORPORATE REPUTATION INDEX
Shifting negative perceptions therefore requires significantly more work than
  reinforcing the positive – but it can be achieved

                 110
RESILIENT ZONE
                                     106          106
                                                                105
                                                                          Auckland Intnl Airport
                 105
                                                  102            104
                                     101
                                                                 103
                 100                 102
                                                  101
                       98
                                                                          SilverFernFarms
                       97
                 95

BRITTLE ZONE     90
                                                                          Countdown

                 85
                        2015         2016         2017        2018
Equally, maintaining positive messages and experiences is important to nourish
  reputation, otherwise it can start to wilt

                 110
RESILIENT ZONE

                 105

                 100

                 95

BRITTLE ZONE     90

                 85
                       2015         2016        2017        2018
LET’S TAKE A LOOK AT
NEW ZEALAND’S TOP 20
 CORPORATES IN 2018
105
                                      119

                                            104
                                      111

                                            104
                                      110

                                            104

TOP 20
                                      110
                                            104
                                      109
RANKED BY INDEX                             103
                                      108
A RepZ Index of 105 or above places         103
 corporates in the top 10% globally
                                      108
                                            103

              REPZ INDEX              106
                                            103

                                      105
                                            103

                                      105
                                            103
The top 10 generally demonstrate strength across all reputation pillars, often with
   outstanding performance in one or more

                                                                                                       RESPONSIBILITY
                                               RESPONSIBILITY
                      LEADERSHIP/

                                                                              LEADERSHIP/
                                    FAIRNESS

                                                                                            FAIRNESS
                      SUCCESS

                                                                              SUCCESS
                                                                TRUST

                                                                                                                        TRUST
                       119          108        116              126     119      105         122        103             105     108

                       106          118        104              115     111      108         108        104             109     108

                       106          116        105              111     110      104         114        103             104     106

                       111          109        104              111     110      108           99       106             107     105

                       112          102        107              111     109      109           99       102             106     105

105+ = within top 10% globally
126

                                              115

                                              111

                          Trust remains the
  T HE TOP 10                                 111
TRUST LEADERS             most important
  IN NZ 2018:             pillar driving
                                              111
                          reputation
                                              109

   Amongst top 100 NZ                         108
  corporates by revenue

                                              107

                                              106

                                              105
TRUST MEANS BEING RELIABLE AND DEPENDABLE…

 I have been a member of the AA for over 50 years...                          We have never had any issues with F&P
 AA Insurance has always shown to me as being a                               appliances that we have had over the years
 brand you can trust to deliver when required.                                and they would be my first choice if I was
 - AA Insurance
                                                                              replacing appliances. Also love that they are a
                                                                              New Zealand company.
                                                                              - Fisher & Paykel
 TVNZ have been around a long time. They
 entertain as well as inform.
 - TVNZ
                                                                              It’s my national carrier and thus trust my own
                                                                              to take care of me and my friends and family -
  Our current cars are Toyota. We have had a few                              good record and I know what to expect.
  over the years. Always reliable, economical, look                           - Air New Zealand
  great. They are just made to last.
  - Toyota

And why do you think so well of [xxx], that you would speak highly of them?
119

                                               118

                         Leaders in the RepZ   112

  THE TOP 10             Success component
   SUCCESS               tend to be big and    111

LEADERS IN NZ            established,
    2018:                dominating or         111

                         leading their
                                               109
                         categories and seen
                         as meaningfully
  Amongst top 100 NZ                           109
 corporates by revenue   different from the
                         competition.
                                               109

                                               108

                                               108
BEING WORLD CLASS AND ADDING VALUE THROUGH
INNOVATION CONTRIBUTE TO A LEADERSHIP POSITION

 Great products that are at the leading edge of                               The main international port into New Zealand.
 technology, which are also intuitive to use.                                 World class facilities with the capability of
 – Apple                                                                      servicing large amounts of visitors and cargo.
                                                                              – Auckland International Airport

Excellent performance in both domestic and
export domains… Very innovative when it
comes to adding value to milk products.
– Fonterra
                                                                              In comparison to other international airports
                                                                              we are a class leader.
                                                                              – Auckland International Airport
They set high standards and regularly
achieve excellence.
– Air New Zealand

And why do you think so well of [xxx], that you would speak highly of them?
122

                                              118

                         Brands known for a   116
                         strong value
  T HE TOP 10
                         proposition help     114
   FA I R N E S S
                         create a sense of
LEADERS IN NZ
     2018:               Fairness about the   109
                         corporation.
                                              108

  Amongst top 100 NZ                          108
 corporates by revenue

                                              108

                                              107

                                              106
AFFORDABILITY, VARIETY AND GOOD SERVICE UNDERPIN
A SENSE OF FAIRNESS

 Definitely the most cost-effective way to shop                               Awesome variety of well priced products…
 and feed a family.                                                           easy returns and good after sales back-up.
 - Pak n Save                                                                 - The Warehouse

 Good quality, reliable cars at a reasonable
                                                                              Good local service, simple to claim when
 price point.
 - Toyota                                                                     required, and reasonable premiums.
                                                                              - AA Insurance

 Great selection at a fair price.
 - Briscoes

And why do you think so well of [xxx], that you would speak highly of them?
116

                                                   107

                           Responsibility is not   106

  T H E TO P 1 0           the main driver of
                                                   105
RESPONSIBILITY             reputation, but
  LEADERS IN               where it is
                                                   104
    NZ 2018                conspicuously lacking
                           it is a weakness
                                                   104
                           holding back the
                           brand and
    Amongst top 100 NZ                             104
   corporates by revenue   corporation.
                                                   104

                                                   104

                                                   103
GIVING BACK TO NZ ENVIRONMENTALLY, SOCIALLY AND
ECONOMICALLY IS VALUED

 The programs they run are good and they do a                                 [Meridian has a] commitment to sustainability.
 lot of good community work.                                                  - Meridian
 - TVNZ

 NZ owned, innovative, invest in employee training                            [Toyota has a] partnership with DoC for
 and [offer] the good in the hood programme.                                  conservation in NZ.
 - Z Energy                                                                   - Toyota

 Air New Zealand supports the community very
 well and has a strong international presence
 and reputation… promotes NZ well.
 - Air New Zealand

And why do you think so well of [xxx], that you would speak highly of them?
Sustainability is increasingly influencing decision making behaviour across
categories
                                     W H ET H ER B U YI N G I S I N F L U E N C E D B Y S U S TA I N A B I L I T Y

        +15                    +14                   +14                  +11                               +10                                   +9                                   +9

      Insurance            Cosmetics And             Banks               Airlines                      Fast Food                            Local And                             Food And
      Companies            Personal Care                                                               Companies                            Regional                              Beverage
                           Manufacturers                                                                                                   Government                             Producers

                  +9                     +9                   +7                         +6                                    +3                                    +2

          Food Retailers         Energy / Power      Oil / Petrol Companies     Technology And                           Car Makers                         Home-care And
                                  Companies                                     Communications                                                                Appliance
                                                                                   Suppliers                                                                Manufacturers

2009/10 diff with 2016/17                                                           Base: 2009/2010 (n=5045) | 2016/2017 (n=2000) How much influence do issues of sustainability have on who you choose to buy or deal with?
COMMITMENT TO LIVING A
                                               S U S TA I N A B L E L I F E S T Y L E
  We are also seeing
                           2017     10                                60                                                                                30
significant increases in
       commitment
   to a sustainable                NC                                   -5                                                                               +5
    lifestyle by New
       Zealanders
                           2016     10                                     65                                                                                25

                                     -7                                       +6                                                                            +1

                           2015           17                                      59                                                                          24
                                  LOW COMMITMENT                  MEDIUM COMMITMENT                                                              HIGH COMMITMENT

                                                         Base: (n= 2000) Source: Where would you place yourself on our scale in terms of how committed you are to living a sustainable lifestyle?

                                                                                                                              © COLMAR BRUNTON BETTER FUTURES REPORT 2017 EDITION
KEY TAKEOUTS
There is payback for being in
                   the “Resilient Zone”

       Why is
    reputational
1    strength so
    important to
     strive for?
                   In times of crisis – it can determine
                   how quickly a company will bounce back

                   Actively managing your reputation
                   will reduce the possibility of the
                   “contamination” effect
A re-brand
                           /refresh

       If you need
        to change      Brave commitment
                           to a cause
      perceptions,

2   doing something
    exceptional may
     be required to       Outstanding
                       products/services/
      get people to       experiences

    reconsider their
     current view.
                           A strong
                       connection to the
                         NZ mindset
GLOBALLY, THERE ARE A NUMBER OF BRANDS THAT
                                                                                      HAVE BEEN DRIVING GREEN INITIATIVES AND ARE
                                                                                      STILL DELIVERING GROWTH.

                                  Social licence                                                                       Purpose before profits
                                 to operate has
                                   never been
                                 more important
3
                                                                                                                       Sugarcane bricks
                                  – people are
                                    enacting
                                                                                                                       Full disclosure on palm oil
                                 choice through
                                  the products
                                  and services                                                                         Carbon neutral operations
                                    they buy.

                                                                                               Are NZ corporates doing enough?

    Source: “Does sustainability sell” , Anita Rao Kapur, Regional Director, Brand Guidance Systems, Kantar Millward Brown
4   5    6
Congratulations!

   TO THE TOP      7   8    9
  PERFORMERS
    FOR 2018
                       10
FOR FURTHER
I N F O R M AT I O N P L E A S E C O N TA C T:

     SARAH BOLGER
SARAH.BOLGER@COLMARBRUNTON.CO.NZ

Colmar Brunton, a Kantar Millward Brown Company
     Level 1, 46 Sale Street, Auckland 1010
          PO Box 3622, Auckland 0740
              Phone (09) 919 9200
           www.colmarbrunton.co.nz
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