Lessons from BrandZ on winning in 2020+ - What works, what doesn't, what's the evidence? - Kantar Australia
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Lessons from BrandZ on winning in 2020+ What works, what doesn’t, what’s the evidence? www.kantaraustralia.com
Your Presenters Today
Ryan France Steven Howlett Suzanne Murphy Cameron Dove Carolyn Reid
Executive Director, Executive Director Senior Insights BrandZ Analyst Executive Director,
Brand & Strategy Manager, Mondelez, Qualitative
Australia and New
Zealand Biscuits,
Candy & Cheese
2
Agenda today
Strong brand equity proves Brands to learn from in Weighing in on marketing The Rule of 3
its worth Australia debates
The Top 100 Most Valuable We’ll look at which brands in Are differentiation or brand In the end, popular wisdom
Global Brands show Aus are getting results, and purpose worthwhile pursuits if says you’ll probably only
resilience and preserve value narrow in on two of the you want to grow your brand? remember 3 things from this
in the face of Covid-19 and biggest movers and shakers Many will tell you “no”, but the session. What should they
the looming recession. in our Brandscape (and the evidence begs to differ… be!?
brands may surprise you).
3
Strong brand equity
proves its worth
4
The largest brand
building platform
in the world
3.8m 17k
Consumer Brands
interviews
512 51
Categories Markets
5.3bn
Data points
Ranking methodology
Step Step Step
01 02 03
Financial value ($) Brand contribution (%) Brand value ($)
Financial value created Proportion of financial value
by a brand generated by the brand’s ability to
increase purchase volume and
charge premium.
Source: Step 1 – Bloomberg, Kantar; Step 2 – BrandZ 6
The Global Top 100 Most Valuable Brands 2020
7
BrandZ’s strong brand portfolios continue to out-perform the market
BrandZTM Portfolios vs S&P 500 vs MSCI World (April 2006 - April 2020)
400%
350%
BrandZ
300% Powerful brands
Top 10 Portfolio
285.2%
250%
200% BrandZ Strong
Brands Portfolio
150% 172.9%
S&P 500
100%
120.0%
50%
MSCI World Index
45.6%
0%
-50%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
8
Proportionate declines from the peak to the bottom of the trough
BrandZ portfolios vs. S&P500 and MSCI World: 14 February to 20 March 2020, indexed on April 2006
% of value lost:
37% 42% 51% 75%
400%
350%
300%
250%
200%
150%
100%
50%
0%
Feb brandsMar
BrandZ Powerful Top 10 Portfolio Feb Brands
BrandZ Strong Mar Portfolio Feb Mar
S&P 500 Feb World Mar
MSCI Index
BrandZ Powerful brands BrandZ Strong S&P 500 MSCI World Index
Top 10 Portfolio Brands Portfolio
9
Size is no guarantee There is no correlation between the
of future growth brand value of the Top 100 brands a year
ago and their growth since 2019
Brand value in 2019 vs. brand value % change 2019 -2020x
80
Brand Value % change 2019 to 2020
60
40
20
0
-20
-40
$10.0 $100.0
Brand Value $bn in 2019 (log scale)
Horizontal axis is shown as a logarithmic scale to make all brands easily visible 10The Top 100 brands are in excellent health, far exceeding
‘average’ brand performance on the core brand equity elements
of being Meaningful, Different and Salient
150
Drivers of:
139
140
130
122 123
120
110
100
Average
90 Brand Brand
Power Premium
80
70
60
Meaningful Different Salient
11Brand equity across Average global index scores for
the Top 100 brands Top 100 brands in each year
was much stronger at
150
the start of the
139
current pandemic 140
than before the Great 130 126
122 122 123
Recession of 2008 120 116
120 119
116
110
109 110 110
Average
100
90
80
70
60
2007 2010 2015 2020
Meaningful index Different index Salient index 12Brand marketing strategies have become more effective
Meaningful Different Salient Meaningful Different Salient
175
161
150 152
143
131
113
105 103
98 96 Average:
100
74
2008 2020 2008 2020
Source: BrandZ global studies average 13The biggest discriminator of resilience and growth in difficult times is
Difference
Advantage for growing brands:
+3 +7 -7
150
144
140 137
130
125 126
122
119
120
110
100
90
80
Meaningful Different Salient
Growing brands Declining brands
Base: 38 growing brands (+5% or more increase in brand value from 2019 to 2020) 14
36 declining brands (-5% or more decline in brand value)A closer look at Australia
15Australian Categories 2020
Banking Apparel General Retailers
29th Jan – 10th Feb 30th April – 11th May 18th Feb – 26th Feb
Biscuits Sports Brands Spirits
18th Feb – 26th Feb 21st April – 3rd May 29th Jan – 10th Feb
DIY & Home Retailer Info, News & Search Mobile Phones
3rd March – 11th March 21st April – 1st May 30th April – 11th May
Fast Food Liquor Retailers Online Sharing
3rd March – 11th March 8th May – 27th May 8th May – 27th May
16The Most Meaningfully Different Brands in Australia
196
174
167 163 159 156 152 151 150
144 143
136 135 131 130 128 128 127 127 124
Category
Avg.
Local
Restaurant
Meaningfully Different
17VQ explanation slide
Case Study
Purpose Innovation Communications Brand Experience Love
‘Making people’s Creativity Great advertising Meet needs Affinity
lives better’ Disruption Better online/on mobile
Leadership Unique
18There is a familiar shape in this Netflix example we showed earlier
Meaningful Different Salient
161
150 152
113
98 Average:
100
74
2008 2020
Source: BrandZ global studies average 19We see the importance of “difference” as a platform for growth time and again
Meaningful Different Salient
161
150 152
113
98 Average:
100
74
2008 2020
Source: BrandZ global studies average 20So we could see the potential in Oreo back in 2018
Meaningful Different Salient Meaningful Different Salient
161 Brand Power Share Brand Power Share
150 152 8.7% 11.7%
113 114 116 113
104
98 Average:
87 87 100
74
2008 2020 2018 2020
Source: BrandZ global studies average 21And Oreo capitalised in the next two years, generating the biggest Brand
Power gain of any brand, in any category, in Australia over this period
Meaningful Different Salient Meaningful Different Salient
161 Brand Power Share Brand Power Share
150 152 8.7% 11.7%
113 114 116 113
104
98 Average:
87 87 100
74
2008 2020 2018 2020
Shift over TWELVE years Shift over TWO years
Source: BrandZ global studies average 22Suzanne Murphy Senior Insights Manager, Australia and New Zealand Biscuits, Candy & Cheese
The Most Different Brands in Australia
215 212
174
160
150 148 145 145 145 144 139 136 134 134 133 132 131 130 128 126
Category
Avg.
New Entrant
New Entrant New Entrant New Entrant
Difference
25ING is the only banking business in the TOP 20 MD brands in Australia
There has been category change
over the past year, with other
banking institutions starting to
introduce low/no fee policies &
the entrance of new neo banks
Meaningfully Different Different combining to erode ING’s notable
differences.
200 200
180 180 175
166
160 160
144
139 139
140 140
127
120 120
100 100
80 80
60 60
2018 2019 2020 2018 2019 2020
26Difference alone is not enough…
Create a difference that has the potential to be meaningful
Competitive advantage can be found in design, route to
Difference customer, service, purpose, positioning or communications not
just product innovation.
200 Innovation must differentiate the brand from competition and
must address a functional and/or emotional need to be
180 175
166 meaningful. Test the innovation’s potential to appeal to a wider
audience than the existing user base.
160
139
140 Continue to innovate or risk disruption
120 Stay true to the brand’s meaningful difference and add real
value for the brand’s primary target audience. Stay alert for
100
changes in consumer needs and context that create new
80 opportunities or which might demand revitalisation. Ensure that
all types of innovation add incremental sales: new users, new
60 occasions, new value or new premium. Do not fragment the
2018 2019 2020
brand with meaningless variants and line extensions.
27More meta-learnings
please!
2829
30
1. Difference
2. Corporate Responsibility
(Brand Purpose?)
31Difference Corporate
Responsibility
32Why Difference? Difference is critical to sustaining margins
Volume drivers Margin drivers
“
Contribution to Power Contribution to Premium
An average price increase of
1% would boost the net 6%
income of the typical large US 38%
corporation by about 12%. 42%
Getting pricing right is a big 45%
deal”
From Principles of Pricing, 49%
Harvard Business School 20%
33Two approaches to building Difference…
Offer
(Brazil)
(Canada)
(UK)
Source: BrandZ Global Top 100 Report 2020
34Two approaches to building Difference…
Offer Brand
(Brazil)
(Canada)
(UK)
Source: BrandZ Global Top 100 Report 2020
35Even as market leader, Apple has built iPhone’s equity through a
distinctive and unique proposition…
Distinctiveness Have a distinctive
look and feel %
Stand for something
unique %
BrandZ Database, Mobile Phones Category, Australia, 2020
36Dan Murphy’s remains highly differentiated through focusing in on
the in-store experience – both range and design
30.0
Dan Murphy's
Relevance 25.0
Brand Equity (% Share)
BWS
20.0
Liquorland
15.0
10.0
ALDI Liquor
5.0
Costco
0.0
0 50 100 150 200 250
Difference Index
BrandZ Database, Liquor Retailers Category, Australia, 2020
37Nike remains differentiated through their advertising
Nike Dream Crazy
Link™ Results
Nike Brand Vitality
Brand Purpose
Communications
135
Love Innovation
126 133
125
157
Brand Experience Communication
BrandZ Database, Sports Brands Category, Australia, 2020
Nike Dream Crazy Link Now Results 38Bonds is a great example of an Australian brand that uses
specialisation as a source of differentiation…
Specialism
Brand Equity (% Share)
19.8% 12.4% 10.7% Specialise in a
particular type of %
BrandZ Database, Apparel Category, Australia, 2020
39Difference Corporate
Responsibility
40Bit of a debate around this in our marketing world
The good
41Bit of a debate around this in our marketing world
The good The bad
42Bit of a debate around this in our marketing world
The good The bad The Stats
How well a brand responds to this crisis
will have a huge impact on my likelihood
to buy that brand again in the future
43Elements of Responsibility
Environment
Employees 34%
21%
Elements of
Responsibility
Supply chain
14% Society
31%
44Responsibility has been core to many Global Top 100 brands
129 120 156
Toyota Nike FedEx
Environmental Responsibility Social Responsibility Employee Responsibility
45Small brands in Aus perceived as socially responsible. Notice anything?
115 114
102
72
64
54
Grill'd Byron Bay Cookies
109
99
93
85 85
66
Bendigo Bank Decathlon
47Brand Purpose can help brands penetrate the clutter, if done well
Long term brand building effect
Brand Power
Contribution
With ‘Purpose’ and 79
Fits with Brand
Without ‘Purpose”
55
With ‘Purpose’ but 27
weak Fit with Brand
Kantar Whitepaper: THE EMOTIONAL POWER OF PURPOSE IN ADVERTISING
https://advertising.report/Resources/Whitepapers/03693f08-f65f-4acf-bccd-137a1c526098_Kantar_Affectiva_power_of_purpose_advertising_ebooklet.pdf
48Brand Purpose can help brands penetrate the clutter, if done well
Long term brand building effect Short term persuasion effect
Brand Power Persuasion
Contribution
With ‘Purpose’ and 79 63
Fits with Brand
Without ‘Purpose”
55 55
With ‘Purpose’ but 27 27
weak Fit with Brand
Kantar Whitepaper: THE EMOTIONAL POWER OF PURPOSE IN ADVERTISING
https://advertising.report/Resources/Whitepapers/03693f08-f65f-4acf-bccd-137a1c526098_Kantar_Affectiva_power_of_purpose_advertising_ebooklet.pdf
49TYPE 2: Slow brain
Scrutiny
TYPE 1: Fast brain
Feeling of Rightness
50If you only take three
things away from
today…
51Meaning Difference Salience
52Share of Brand Power 2019 vs 2020: The Big 4
Westpac is the only one of the Big4 to enhance its brand power, going from #4 to #2 in the process
21.3
19.3
+ 2.5 pts
11.7 11.2
10.8 10.7 10.2 9.7
2019 2020 2019 2020 2019 2020 2019 2020
53Big uplifts in meaning and salience
Westpac 2019: Share of AUS bank brand equity 9.7% Westpac 2020: Share of AUS bank brand equity 11.2%
150 150
131
123
116
103
100 100
94 94
50 50
Meaningful Different Salient Meaningful Different Salient
54Digging deeper our data reveals meaning has helped Westpac
increase its brand power
Big 4 Power % Change Westpac Attribute % Change Amongst Women
(2019 – 2020)
(2019 – 2020)
2.3
Men Women
Treat everyone with respect and as equals % 6
0.7 0.7
Hear good things about % 4.9
0
Fit well into everyday life % 4.8
-1.2
Superior % 4.5
-1.8 -1.8
-2.7
CBA ANZ NAB Westpac Great advertising % 4.4
55‘Meaning’ worth sharing and talking about
Finding ‘saliency’ through loss
Westpac has shifted meaning and salience for women and men
alike
Big 4 Power % Change
(2019 – 2020)
2.3
Men Women
0.7 0.7
0
-1.2
-1.8 -1.8
-2.7
5859% of women 47% of men Would like to feel more confident understanding finance
Financial autonomy boosts self-esteem
Our key takeaways
61To sum up…
Strong brand equity proves Brands to learn from in Weighing in on marketing The Rule of 3
its worth Australia debates
Strong brands are the not so Oreo leveraged a difference, Differentiation and being Be meaningful, be different,
secret ingredient for a resilient Westpac drove meaning and perceived as “responsible” be salient
business salience among women. makes brands money in 2020
There is a lot to learn from
these two brands.
62Supercharge brand and business growth
Access a suite of customised reports and data packages from BrandZ, the world’s
largest brand equity platform
Custom Reports Data Packages
Understand the evolving influence of Explore brand performance data: brand
key drivers of business success and equity, corporate reputation and brand
your brand’s performance versus personality, across a range of
competitors in this series of reports: categories, markets and time periods
ꟷ Brand Purpose
ꟷ Corporate Reputation
ꟷ Consumer Trust
ꟷ Brand Equity
Available via www.kantar.com/marketplace
63Thank you Ryan.France@kantar.com Steven.Howlett@kantar.com Cameron.Dove@kantar.com Carolyn.Reid@kantar.com www.kantaraustralia.com
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