Overview

Value of BrandZ™ Top 100 up 98 Percent Since 2006

All components of brand equity strengthen, technology leads in total brands and value

The 12 percent brand value increase in the BrandZ™ Top 100 Most Valuable Global Brands 2014 represents a resurgence of growth following the financial downturn in 2008, and a 98 percent increase in value since the ranking was introduced in 2006.

The technology category, which rose 16 percent in the 2014 BrandZ™ Global 100, represents nearly a third of the total brand value and almost a fifth of the brands. The technology category has grown 143 percent in brand value since the ranking began.

Of the Top 10 brands that grew most in brand value since 2006, five are in the technology category. During those eight years, Apple increased in value by $131.9 billion or 826 percent, followed by Google with a 324 percent or $121.4 billion rise in brand value.

The Top 100 are resilient. Since the financial crisis, the BrandZ™ Global Top 100 brands have strengthened in each component of brand equity, which is the consumer's predisposition to select a brand.

The components are: meaningful (generating appeal or "love"), different (setting trends that benefit the consumer) and salient (coming to mind spontaneously). The BrandZ™ Top 100 Most Valuable Global Brands significantly outscore other brands in each component.

Difference and salience drive and sustain value

In the telecom provider category, where brands are struggling to differentiate and be viewed as more than a conduit of data, UK-based BT rose 61 percent in brand value and moved up 30 positions in the ranking.

The brand value rise was driven in part by acquiring rights to English Premier Football, adding over two million new subscribers, a successful Olympic sponsorship and increasing revenue. The added value helped justify premium pricing.

Being different was a key driver for Amazon, which continued to grow its consumer share of life, expanding into food and other businesses, while also disrupting business-to-business technology pricing with its Cloud computing services.

With a 41 percent brand value increase to $64.3 billion, Amazon entered the BrandZ™ Global Top 10 for the first time.

Brand salience helped sustain Coca-Cola. Because of consumer health concerns the sale of CSDs (Carbonated Soft Drinks) declined for the ninth consecutive year in the US. The Coca-Cola brand rose 3 percent, however.

Coca-Cola slipped one spot in the BrandZ™ Global Top 10, as did McDonald's, another salient brand in a category impacted by consumer health concerns. At the same time, Microsoft, a salient technology brand, gained three places in the ranking on a 29 percent increase in brand value.

Brands gain in trust and value metrics

Two other BrandZ™ metrics, TrustR and ValueD, also help explain brand value increases. TrustR measures how much consumers trust a brand (because it consistently has met its promises in the past) and the likelihood consumers would recommend a brand (because it consistently keeps its promises today).

The three logistics companies ranked in the BrandZ™ Global Top 100 score high in TrustR. Each increased significantly in brand value, led by DHL with a rise of 53 percent, followed by Fedex, 24 percent, and UPS, 12 percent.

ValueD measures the gap between a consumer's desire for a brand and the consumer's perception of the price. The measurement is important because, coming out of the recession, consumer are significantly more concerned about obtaining good value for money.

Responding to this change in consumers attitude, the BrandZ™ Global Top 100 have improved their desire and price scores. A high desire score gives a brand flexibility to be premium priced or good value.

How brands manage the desire/price balance depends on the product category and brand proposition. Some brands with high desirability, like Pampers, are able to command a premium. Consumers view IKEA as good value for money. IKEA improved 61 percent in brand value.

BrandZ Top 100 2014

BrandZ Global 2014 Report Top 100 Report

Top 100 Chart

Top 100 Infographic


Methodology and valuation by Kantar Millward Brown


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