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Tag: BrandZ

  • BrandZ to launch second report in September 2015

    BrandZ to launch second report in September 2015

    MUMBAI: Ever since coming to power in 2014, Indian Prime Minister Narendra Modi has made frequent foreign visits, and his purpose of travel was to promote a brand – “Brand India.” Be it Madison Square in the US or Allphones Arena Sydney or the recent Middle East trip, Modi was concisely making efforts to convey the message that India is a destination for business explorers and investors. The argumentative Indians argued the pros and cons of every travel of his, though the Indian diaspora welcomed him with full houses, claps and slogans, back home he earned titles like NRI Prime Minister etc.  

    A little more than one year down the line, what impact did Modi’s foreign visits have? Has “Brand India” succeeded in making a mark in investors’ mind? Has a government with absolute majority made a big difference in bringing in adequate reforms, which in turn will enhance the brand value? Where are Indian brands placed in terms of brand valuation, are they forging towards being dominators or do MNCs still stand tall in the top spot when it comes to brand valuation?

    The second edition of the BrandZ Top 50 Most Valuable Indian Brands, which will be released by WPP and Millward Brown on 9 September, 2015 will answer many such questions.

     BrandZ is a global rankings study that uses a unique brand valuation methodology that combines officially released financial data and consumer-driven brand equity measurement to calculate brand value. The valuation studies were introduced globally in 2006, in China in 2011 and Latin America in 2012 and have received an overwhelming response internationally.

    Speaking to Indiantelevision.com, Millward Brown South Asia director Prasun Basu says, “The study will reveal key insights on trends in the Indian market by WPP companies across India, insights into how brands drive financial growth, the brands with the greatest potential for growth, the elements that have led to successful brand building in India and the way forward for building valuable brands in India.”

    The study analyses brands across various key business sectors including banking, automotive, telecom, personal and household care, foods, beverages, and insurance.

    Basu asserts, “Clear and concise communication, which has a concrete purpose gives brands the wings to fly. Communication is an important aspect, which impacts a brand and now with social media proliferation, consumer insights are easily accessible. Brand communication managers need to be on top of the data and curate communications around that.”

    “We created a stock portfolio of the BrandZ Top 50 Most Valuable Indian Brands 2014 and compared its performance over the past five years with the performance of India’s Sensex. Between May 2009 and May 2014, The BrandZ India Top 50 Portfolio appreciated 201 per cent compared with a rise of 74 per cent for Sensex. The BrandZ India Top 50 Portfolio includes all the brands in BrandZ Top 50 Most Valuable Indian Brands. Sensex is a weighted Index of 30 stocks listed on the Bombay Stock Exchange,” adds Basu.

    BrandZ collates data by studying more than two million consumer insights, interviewing over 25,000 consumers directly. “In 2015 edition of the report, we will have over 500 categories and 200 brands analysed,” informs Basu.

    “Last year’s report had many encouraging factors for the Indian marketplace and brands, Banking sector’s HDFC topped list followed by telecom giant Airtel, the report subtly told the entire fraternity that there is huge potential of growth,” he adds.

    “India is at the threshold of becoming an economic superpower with evolved consumers. The process of valuing brands paves the way for growth strategies for various Indian companies in an otherwise very competitive environment. The report also consists of inputs and opinions by brand experts across WPP companies in India that highlights the dynamic nature of the Indian market and brand-building strategies. This year’s report will have a lot of positives and that’s all I can say before its launch,” concludes Basu.

  • Apple pips Google to take top spot as most valuable brand

    Apple pips Google to take top spot as most valuable brand

    MUMBAI: Apple has overtaken Google to reclaim the title of ‘world’s most valuable brand’ in the 2015 BrandZ Top 100 Most Valuable Global Brands released by WPP and Millward Brown.

    Apple has increased its brand value to $247 billion, a rise of 67 per cent year on year. Google (no.2) also grew, achieving a nine per cent value increase to reach $173.7billion. Microsoft, now worth $115.5billion, is the new no.3, rising one position with value growth of 28 per cent.

    Though the AppleWatch has proved extremely popular, it is the success of the iPhone 6 that has been the main driver of Apple’s brand value growth.

    Millward Brown’s Global Head of BrandZ Doreen Wang said, “Apple continues to ‘own’ its category by innovating and leading the curve in a way that generates real benefits for consumers. It meets their rational and emotional needs, and makes life easier in a fun and relevant way. Apple is clear on what it stands for, and never stops refreshing its message to sustain the difference that makes it so desirable.”

    The total brand value of the Top 100 now stands at $3.3 trillion, a 14 per cent increase on 2014 and a 126 per cent growth over the 10 years since the ranking was first launched.

    WPP’s The Store CEO, EMEA and Asia David Roth said, “Brand value has risen substantially despite a disruptive decade. This is a pivotal moment for brand builders. We’re at the threshold of a new normal, and a changing consumer. The past 10 years of valuing brands proves that investing in creating strong, valuable brands delivers superior returns to shareholders.”

    Highlights and key findings from this year’s BrandZ Top 100 study include:

    •Technology is the fastest-growing category – up 24 per cent in the last year, the tech brands in the Top 100 are worth more than $1 trillion, nearly a third of the value of all brands in the ranking.

    •Facebook is the fastest riser, with 99 per cent growth achieved through its successful strategy of acquiring and integrating other social apps such as Instagram and WhatsApp, and an understanding of how to monetise and cross-sell its platforms.

    •E-commerce boosts retail brand value as Alibaba enters ranking and overtakes Amazon – Chinese e-commerce leader Alibaba entered the retail ranking at $66.4billion, helping to grow the retail category ranking by 24 per cent and overtaking both Amazon and Walmart. The most valuable retail brands Alibaba and Amazon, which lack physical stores, are now worth more than Walmart, which has 11,000 stores worldwide.

    The BrandZ Top 100 Most Valuable Global Brands is now in its tenth year. Analysis of the 10-year trajectory of the brands in the ranking has revealed that:

    •Europe’s brand powerhouses stagnate as Chinese brands grow and US brands make a comeback. The number of Chinese brands continues to grow with 14 brands in the Top 100, up from one in 2006, and an increase of 1004 per cent in value. The value of US brands grew by 137 per cent in the last 10 years (up 15 per cent in the last year) compared to just 31 per cent in Europe (down -9.3 per cent in the last year). There are now just 24 brands from Europe in the ranking (down from 35 in 2006). This represents a shift from West to East; most of the brands that have been ‘pushed out’ of the Top 100 by China were from Europe.

    •High value brands provide faster bottom-line growth and shareholder value. In the last 10 years, a measurement of the strongest brands from the Top 100 as a ‘stock portfolio’ shows their share price has risen over three times more than the MSCI World Index and almost two thirds more than the S&P500.

  • HDFC Bank Named India’s Most Valuable Brand In Brand Ranking

    HDFC Bank Named India’s Most Valuable Brand In Brand Ranking

    MUMBAI: According to the first ever BrandZ™ Top 50 Most Valuable Indian Brands ranking announced today, the combined Brand Value of all the brands in the rankingis almost $70bn.HDFC Bank is India’s most valuable brand, with a value of $9.4bn. Carried out by marketing and brand consultancy Millward Brown in conjunction with WPP, the valuationis the only one in India that takes into account consumers’ opinion of brands to calculate thecontribution that product brands make to business success.

    The BrandZ™ India study shows that India’s unrestricted ‘right to play’ for businesses has nurturedgreat diversity amongst brands in the ranking.The Top 50 come from 13 different categories. Seventeen are multi-national corporations (MNCs), 26 are private Indian brands and seven are state-owned brands. This indicates that India is an open, fertile market for building valuable brands, irrespective of age, origin, structure, category, ownership or even price range.

    HDFC Bank, the no.1 brand, has a network in more than 2,100 cities. It is popular with its 28 million customers for launching mobile apps designed to make banking easier, and running literacy, education and skills training programmes in rural areas. The No.2 brand, Airtel, is the fourth largest mobile operator in the world with nearly 300 million customers, while India’s largest commercial bank, State Bank of India, is at No.3 in the ranking.

    Services businesses (Banking, Telecoms and Insurance), which are the nerve centre of today’s Indian economy, are prominent in the ranking.Seven of the Top 10 brands, and 30% of the Top 50 brands, come from the service sector. Financial services stand out, with the12 banks and insurers in the ranking holding the largest proportion (37%) of total Brand Value.Analysis shows these brands have built value by successfully achieving scale – both ingeographical reach and the diversity of their offerings. Telecoms, Personal Care, and the Food and Dairysectors also feature strongly in the Top 50. The data shows that these brands – along with the other FMCG brands in the ranking – excel at connecting with Indian consumers.

    The average Brand Contribution (ameasure of the impact brand alone has on value) of the Top 5 brands is far higher than the overall average of the Top 50, illustrating the positive impact that building a strong brand has on the financial valuation of the brand. These brands create powerful connections by being meaningful to consumers,and differentiating themselves from others.

    The BrandZ™ Top 50 Most Valuable Indian Brands 2014

    Key findings highlighted in the BrandZTMTop 50 Most Valuable Indian Brands include:

    •    Being meaningful and different builds value – India’s most valuable brands are highly relevant to consumers and differentiate themselves through service, new offerings and brand experiences. One such example is personal care brand Colgate (No.28) – even after 70 years in India the brand has successfully remained relevant and continues to differentiate itself from the competition.

    •    India has evolved into a brand powerhouse – its Top 50 most valuable brands have as much Brand Power (consumers’ predisposition to choose that brand over another) as the global Top 50, and are ahead of the other emerging economies.

    •    Private sector players and multinational corporations dominate – together these contribute around 85% of total brand value. They have succeeded by nurturing a strong relationship with Indian consumers.

    •    Megabrands lead the game – like other fast growing economies, India is dominated by a handful of big brands or companies that own stables of brands: the Top 5 account for 45% of the ranking’s total value. Their tremendous scale and ability to cater to a wide spectrum of the population has translated into financial gains.

    •    ‘Balanced brands’ is the mantra – brands that are able to build both strong connections with consumers and business scale that leads to the creation of financial value are contenders for entering or rising up the BrandZ ranking. Three out ofthe Top 5 Indian brands demonstrate this balance.

    •    Consumer technology is ‘the category waiting to happen’ – there are currently no home-grownconsumer technology brands in the Top 50, but this category is on the verge of emergence. The presence of Indians working in the sector globally is high, and consumer-facing technology brands founded by young entrepreneurshave already started to gain ground.

    •    ‘Indianizing’ products and services is important – the many successful international brands in the ranking have taken the time to understand Indian needs and tastes and adapt to them. Noodles, food seasoning, soup and sauce brand Maggi (No.18), personal care brand Colgate (No.28) and beverage brand Horlicks (No.20) are mastersat this – and are thought of as Indian brands by most consumers as a result.

    •    Old and new sit side by side – living with one foot in the ancient world and one in the modern makes consumers equally receptive to heritage brands (Bajaj Auto, No.5, established 1945) and new brands (Airtel, No. 2, established 1995). More than a quarter of the Top 50 brands were created after the economic liberalization in 1991 while Dabur, No.22, was established 130 years ago.

    Prasun Basu, Millward Brown’s Managing Director – South Asia, said, “The stronger the relationship a brand can build withconsumers in its category, and the more it canleverage that to build scale, the more sustainable and profitable it becomes. All of the Top 50brands are reputable, successful engines of growth for the future of India. Any global manufacturer that makes the effort to understand the diversity of the Indian consumer’s needs, tastes and aspirations, and which can build a proposition that is both meaningful and appropriately differentiated,will succeed in building a strong brand.”

    David Roth, CEO of The Store, WPP added,“With the second highest number of social networking users in the world, and the third highest number of users of mobile devices, developing an e-commerce strategy that focuses on social and mobile platforms is essential for brands in this region.”

    CVL Srinivas, CEO GroupM – South Asia, added,“We are already seeing the impact of the purchasing power of the internet and mobile users in India, with the exponential growth of e-commerce companies in the space of travel, e-tailing, ticketing and many main line brands increasing their brand building budgets to digital media in multiples.”

    In addition to the rankings, special awards were also presented to brands among the Top 50 under the following categories.

    Millward Brown BrandZ India Awards 2014

     

  • “We hope Brandz study will propel other brands to become like the top 50”: Prasun Basu

    “We hope Brandz study will propel other brands to become like the top 50”: Prasun Basu

    WPP CEO Sir Martin Sorrell calls him the data analyst expert.  Prasun Basu’s relationship with WPP’s brand, media and communications research company Millward Brown, goes back a couple of years.

     

    In 2013, two years after he joined Millward Brown as managing director of East Africa operations, he was elevated as managing director south Asia region. A frequent presenter and writer for many journals, publications and seminars, he co-authored the article ‘The New Indian Consumer’ published in the Harvard Business Review in 2006, and ‘The Curve-fitting Problem’ in the leading journal Philosophy of Science.

     

    On the debut launch of BrandZ top 50 most valued brands in India, indiantelevision.com’s Meghna Sharma caught up with the man for a quick conversation on how he sees the report helping the Indian market, the future scenario and any favourite brand which he would like to see on the list.

     

    Excerpts…

     

    You launched the BrandZ top 100 in China four years ago and two years ago came the top 50 in the Latin American market. Why made you opt for India now and not before?

     

    You need to ask this question to Martin. In the relative order of things, China is a much bigger economy today. There was a time when India and China were almost at par. India had a great story but China had a massive one in the last decade or so. The country has really pulled itself out of the crowd especially amongst the BRIC markets. And after seeing the success in China, it gave us enough confidence that we should go with India. It’s also important to remember that we don’t cover the UK or US. It’s just China, LatAm and India.

     

    In the coming years what changes do you see in the top 50 compilation? Currently, the top five have three from the financial sector.

     

    If you see our global reports, this year Google dislodged Apple and it did so with a huge margin. While last year, Apple had a large gap. So, I’m sure changes will come because India is a dynamic market than any other. India is also a very stable economy. If we look at the past, India was one of the less touched markets during recessions. I expect some changes by next year for sure.

     

    What expectations do you have from the new government and how do you see it impacting the market?

     

    The way the Prime Minister Narendra Modi is implementing his policies, there is a very clear sense that this will start having results, but the size of the economy at the current stage will take a little time to show results. So you might see results in six months, I don’t know. Two years down the line, probably yes. In his term we will see results.

     

    We are talking about FDI in railways, defence; nobody ever thought about FDI in defence. He has already taken up the limits in insurance. It is very clear in which direction he is heading. With ‘Make in India’, the country which has been driven by the service sector is not talking about manufacturing as well. So, while the service sector continues to do well and we manage to build the manufacturing industry then think about the quantum shift we will create.

     

    How do you see the report helping the Indian clients/brands?

     

    Actually it can help in a big way. For some of them, especially the big brands on the list, it can give them a very sound evaluation of the work they are doing, it will give them more confidence and more boldness to do what they are doing better. It will reinforce their talent in either building skill or building brand equity and consumer connect.

     

    The other thing it can do is that it will propel other brands to try to become like the top 50.

     

    Apart from this, the third community that will gain is the financial community within the companies like the CFOs, evaluation people etc.

     

    Globally, technology companies rule the list. Why is that not the case in India?

     

    Look at what is happening in the e-commerce sector in the country. So, who knows maybe we will see them in the list soon if they go public. Some of the best minds in technology are sitting somewhere else and with India being a very clear economy, global technology companies trade freely here. So as a result, building local outfits has not been much while it is quite opposite in China.

     

    How important is advertising when it comes to building of a brand?

     

    ICICI Bank was the first one in the financial sector to advertise years ago with Amitabh Bachchan. The campaign helped it reach the level it is today and since then, many have followed suit. Different brands have different strategies to succeed. Today, one doesn’t have to do just television advertising, social media route can be taken as well since it has become very important today. Some do CSR activities which help them connect with the consumers. Word-of-mouth is an excellent way as well, used by many high-end brands.

     

    Is there any particular brand which you would like to see on the list?

     

    We have followed a very transparent method in India and are very proud of the list we have come out with.

     

    I would like to see Indigo on the list because it has done an amazing work. It doesn’t believe much in TV advertising and concentrates more on outdoor, print etc. But they have built themselves very well and the service experience has been built through word of mouth. Their position is also very clear – arrive on time – and has struck to it over the years.

  • HDFC Bank tops the BrandZ Top 50 most valuable Indian brands 2014

    HDFC Bank tops the BrandZ Top 50 most valuable Indian brands 2014

    MUMBAI: Before the FIFA World Cup commenced in Brazil, several concerns were raised about its execution and other related issues, however when it started, all those concerns were laid to rest as the world experienced a strong tournament both on and off the field.

    With this example, WPP CEO Sir Martin Sorrell, while speaking at the launch of ‘Brandz Top 50 Indian brands’ emphasised on the importance of one. Highlighting the potential of the Indian market, Sorrell said that the worldwide advertising spend and revenue have remained constant and in mature markets it is not growing as rapidly as it is in fast-growing markets like India.

    With $500 million revenue from India, the conglomerate believes that the country has grown strongly for WPP and predicts a positive future as well, especially with the new government.

    After nine long years, the BrandZ valuations rankings, commissioned by WPP and carried out by Millward Brown, has finally entered the Indian market.

    In its debut year, the top 50 most valued bands report was unveiled in a glittering night in the presence of the media and corporate stalwarts by none other than Sorrell.  

    The list which includes the various sectors ranks HDFC Bank as the most valued brand in the banks category with the brand value of $9,425 million, followed by Airtel in telecom with $8,217 million. At the third position is once again a bank, State Bank of India, with $6,828 million brand value.

    The top 10 consisted of banks, automobiles, telecom industry with just one from the paint category, Asian Paints at number six with $2,812 million brand value.

    The research agency claims to be the only global rankings study that uses a unique brand valuation mechanism that combines officially released financial data and consumer-driven brand equity measurement to calculate brand value.

    “There is no other valuation which is statistically as rigorous as Millward Brown’s approach. Others lack the rigour and the credibility which BrandZ has,” said Sorrell while adding that the group has the global data and it was about time to tap the regional markets as well given the importance of the BRIC (Brazil, Russia, India and China) countries.

    The model of Brandz was thought of by Sorrell in 2006 with the vision of a common framework that will enable understanding of how brands work and help everyone in the WPP group.  It would also help the group understand the relationship brands have with consumers and help it service its clients.

    “The methodology is different and much more reliable, consistent and credible”, said Sorrell. Globally, the BrandZ study covers two million consumers and more than 10,000 different brands in over 30 countries, in India it was more than 25,000 consumers, 500 brands in 37 categories.

    The ranking combines rigorously analysed financial data from Bloomberg and Kantar Worldpanel with consumer opinions gathered from Indian consumers. “The core of the data comes from interviews with consumers and what relationship brands play with them,” added The Store CEO David Roth highlighting the big data collected by it.

    The brands valued in the report had to meet the eligibility criteria: of being owned by a company which is publicly traded in India, reported positive earnings and derived at least 25 per cent of revenue from retail business. The report that includes the MNCs trading in the country also spoke to rural consumers.

    Explaining the mathematics behind it, the Millward Brown MD south Asia Prasun Basu said that what makes the brand value is the financial value of a company along with the brand contribution for the consumers.

    The stronger the relationship a brand can build with consumers in its category and the more it can leverage that scale, the more profitable and sustainable it becomes, highlights the study while elaborating the key takeaways from it to help brands grow.

    One of the most important takeaways is that a brand needs to be meaningful to its consumers and be able to differentiate itself through its services. For example, the 70 year old brand, Colgate, has remained relevant and continues to differentiate itself from the competition.

    Also, one needs to have a perfect balance between brand equity and financial value to drive it.

    Examples like McDonalds tell how international brands have taken an understanding of Indian needs and tastes and adapted to it. “India has evolved into a powerhouse where premium as well mass brands survive and the story will only grow stronger,” said Basu.  

    With the middle class and disposable income growing, the conglomerate sees a massive growth potential in the country. “After a year or two, we might take the list to top 100!” concluded an optimistic Sorrell.

  • BrandZ launches Top 50 most valuable Indian brands

    BrandZ launches Top 50 most valuable Indian brands

    MUMBAI: Global research agency Millward Brown will announce the BrandZ Top 50 most valuable Indian brands 2014 on 19 August 2014.

     

    Currently in its ninth year, the BrandZ Top 100 most valuable global brands study aims to create a new milestone with the launch of its first Indian edition, BrandZ Top 50 most valuable Indian brands. The rankings will be unveiled on 19 August in the presence of WPP CEO Sir Martin Sorrell and top executives of leading Indian companies.

     

    The study will reveal key insights on trends in the Indian market by WPP companies across India, insights into how brands drive financial growth, the brands with the greatest potential for growth, the elements that have led to successful brand building in India and the way forward for building valuable brands in India. A highlight is the release of the list of top 50 most valuable Indian brands. The study analyses brands across various key business sectors including banking, automotive, telecom, personal and household care, foods, beverages, and insurance.

     

    Millward Brown south Asia managing director Prasun Basu said, “BrandZ is a unique brand valuation methodology that has established a global credibility. This makes the BrandZ Top 50 Most Valuable Indian Brands the definitive and most robust ranking available. BrandZ approach starts with officially available financial information and scientifically attributes the contribution of consumer facing brands to business success, especially important in the context of large corporations, business houses or conglomerate brands. The stronger the relationship that a brand can build with consumers in its category, and is able to leverage those consumer connections, the more sustainable and profitable the brand becomes. Therefore, the Top 50 are reputable, successful engines of financial growth for the future of India”.

     

    Millward Brown chief global analyst Nigel Hollis commented, “The BrandZ Top 100 Most Valuable Global Brands study has given marketers and brand managers deeper insights into their brands. Globally, the BrandZ study covers two million consumers and more than 10,000 different brands in over 30 countries. The Indian edition of BrandZ aims to enable brand owners to evaluate their brands, compare them with competitors around the globe, especially in a world where Indian brands have already demonstrated their ambitions to go global and make better-informed investment decisions. We hope that the study becomes a benchmark reference for brand insights in the market.”

     

    Commissioned by WPP and carried out by Millward Brown, BrandZ valuations rankings are the only global rankings study that uses a unique brand valuation mechanism that combines officially released financial data and consumer-driven brand equity measurement to calculate brand value. The valuation study, which was introduced globally in 2006, in China in 2011 and Latin America in 2012, has seen a huge success and has received an overwhelming response in both markets as well as internationally .