value

Report
Welcome!
Let’s start with a short
description of the most
rigorous brand valuation
method in the World
X
Financial
Value
=
Brand
Contribution
Brand Value
The secret
ingredient
X
Financial
Value
=
Brand
Contribution
Brand Value
WHAT IS
‘BRAND’?
CLOSE
YOUR
EYES!
DO
NOT
THINK
OF…
Valuable brands have
STRONG RELATIONSHIPS
with consumers
and are
MEANINGFULLY DIFFERENT
The Brand Relationship is like dating…
Bonding
Advantage
Performance
Relevance
Presence
Now a very
strong
relationship
A strong liking
is developing
The first date
goes well
At first you
are cautious
Relationships
start with
awareness
All
LatAm
Bonding
Top 50
LatAm
5%
13%
Advantage
25%
45%
Performance
33%
56%
Relevance
40%
67%
Presence
55%
82%
(6.977 brands)
More valuable
brands have
stronger
relationships
Top 50
LatAm
Bonding
Top 50
Global
13%
13%
Advantage
45%
41%
Performance
56%
49%
Relevance
67%
60%
Presence
82%
73%
LatAm
compares
favourably
with Global
brands
Top 50
LatAm
Bonding
13%
Top 50
China
Top 50
Global
15%
13%
Advantage
45%
54%
41%
Performance
56%
60%
49%
Relevance
67%
71%
60%
Presence
82%
85%
73%
Top 10
LatAm
Bonding
Top 10
Colombia
14%
11%
Advantage
52%
39%
Performance
60%
49%
Relevance
76%
58%
Presence
87%
70%
Coca Cola
Colombia
Bonding
38%
Bonding only 38%
Advantage
70%
Advantage only 32%
Performance
71%
Relevance
80%
Presence
99%
Coca Cola Colombia
Bonding only
Customers %
Value %
Customers %
Value %
38
66
Advantage only
Performance/
Relevance/
Presence
No Presence
32
23
29
10
1
0
Coca Cola
Colombia
Bonding
38%
Advantage
70%
Performance
71%
Relevance
80%
Presence
99%
These people account for
the vast majority of sales
because they are more
loyal to the brand.
Brand
Contribution
Percentage
The Brand Contribution effect…
Brand Contribution effect:
Example from Global Valuations
BRAND CONTRIBUTION AVERAGE
BRANDZ™
value
Interbrand
value
$23bn
$28bn
Values very similar
BRAND CONTRIBUTION LOWER
BRANDZ™
value
Interbrand
value
$13bn
$28bn
Interbrand fails to
take account of
lower Brand
Contribution
BRAND CONTRIBUTION HIGH
BRANDZ™
value
Interbrand
value
$183bn
$34bn
Interbrand fails
to take account
of high Brand
Contribution
GLOBALBRAND VALUE
$183BN
BRAND
CONTRIBUTION
4
BRAND
CONTRIBUTION
3
$16bn
$34BN
$9bn
2006
2012
STRONG BRANDS PERFORM
BrandZ Global Valuations
STRONG BRANDS
37.5%
0.4%
S&P 500
APR 06
MAY 12
What drives Brand Contribution?
Global
Top 50
LatAm
Top 50
Local
LatAm
Popularity
302
208
117
Affinity
192
139
86
Difference
107
42
90
Price
35
20
210
Source: BrandZ (Index Average = 100)
Top Brands are more trusted,
recommended and more desirable
Global
Top 50
LatAm
Top 50
China
Top 50
Trust
105
104
110
Recommendation
104
102
106
Desire
112
112
110
Source: BrandZ (Index Average = 100)
Character of Top Brands
Global
Top 50
In Control 109
Assertive 107
Creative 105
LatAm
Top 50
China
Top 50
Friendly 106
Kind
105
Generous 104
Wise
108
In Control 107
Friendly 105
Source: BrandZ (Index Average = 100)
Before we see some results…
Let’s have a short QUIZ
(5 questions)
Stand up please!
If you get the answer wrong you
will need to sit down again…
Q1. BRAND CONTRIBUTION
Some brands generate more than their fair
share of financial value because the brand
contributes so much.
Which one of these has the greatest Brand
Contribution (in Colombia)?
Club Colombia
Davivienda
Eltiempo

Q2. BRAND TRUST & RECOMMENDATION
Brands that are BOTH trusted by all and
recommended by their users have heritage
and contemporary relevance.
Which one of these has the greatest TrustR
(in Colombia)?
Google
Nokia
Toyota

Q3. BRAND DIFFERENCE
Brands that are different can have an
advantage over others.
Which one of these is rated most different
(in Colombia)?
Bing
Taringa
Wkipedia

Q4. BRAND DESIRE
Brands that create desire tend to justify
their price premiums and can generate
greater profits.
Which one of these has the greatest Brand
Desire(in Colombia)?
Carrefour
Éxito
Olimpica

Q5. CHARACTER CLARITY
Brands that have a distinct and defined
character tend to be stronger.
Which one of these has the clearest
Character(in Colombia)?
Aguila
Bancolombia
Comcel

Anyone still standing
is a WINNER!
And brands that score well on these things
will also be winners:
Clear Character/Personality
Recommendation by users
Affinity/Desire/Popularity
Trust
Different
And now, some facts
about the most valuable
brands…
Combined value ($US) of Top 50 brands
1,845bn
311bn
136bn
Global
China
LatAm
60bn
Brazil
Contribution of countries
(% of $US brand value in Top 50)
Latin American
3%
Colombia
17%
Brazil
33%
Chile
20%
Argentina
3%
Mexico
24%
How LatAm compares (% value)
LatAm China
Financial
Telecoms
Retail
B2B
Consumer Goods
Technology
Other
25
19
19
18
16
3
43
22
3
8
10
11
3
Global
13
15
5
13
20
27
7
How countries differ (% value)
Brazil Mexico Chile Colombia Argentina
Financial
32
29
13
48
4
Telecoms
4
18
29
23
Retail
8
22
59
5
B2B
21
4
12
18
66
Consumer Goods
26
27
2
7
Other
9
14
-
Now it is time to reveal
the most valuable brands

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