Five ways to build healthy Spanish brands
Just as there are many contributors to human wellbeing, there are multiple factors that go towards making a healthy brand. BrandZ™ analysis has identified five key attributes shared by healthy, strong and valuable brands.
These are: Purpose, Innovation, Communications, Brand Experience and Love. Brands that score highly on all five aspects are the most successful: they are “healthy” brands. Those that are low on all five aspects are “frail” and the least successful. Brands with a mix of high and low scores are “OK”.
These five health indicators can be combined into a single score we call a brand’s Vitality Quotient, or its VQ. The average score of all brands is a VQ of 100. A high VQ score means a brand is meaningfully different, and this can drive growth in brand value.
Brands can look at how they perform on these individual measures when they are seeking clues to improving their overall brand health. When one or more of the vital signs is lacking, general brand health can suffer.
In the Spanish Top 30, brands with higher health scores are far more valuable than brands in only fair or poor health. Healthy brands in the Top 30 have an average brand value 3.5 times that of the frail brands.
This table shows the value of the Top 15 and lower 15 on each score, and their corresponding average brand value.
The path to good health
1. Brand Purpose
Brand purpose is what a brand sets out to achieve, beyond making money. It is the way a brand makes people’s lives better – not just the practical, literal things that a product or service does for someone. Having a strong sense of purpose is increasingly important as consumers seek brands that don’t simply do a good job at a fair price, but also do something positive for the community or the environment. Brands with purpose make consumers feel good. Over 12 years, the brands in the Global Top 100 with high scores for purpose have grown in value by 175 percent, while those with the lowest have grown by just 70 percent.
Innovation is not just the preserve of technology brands. Any brand that is seen as doing something new, or setting trends for their category, will get talked about and tried. When trial goes well, that can lead to a longer-term relationship and, ultimately love, which correlates strongly with innovation. Innovation can mean developing a product that does something different, providing an innovative service, or delving into a new category. Innovation creates a predisposition for sales. The brands that have high innovation scores in the Global Top 100 have risen in value by 276 percent in 12 years, compared to just 15 percent growth for the slowest innovators.
Strong communication has two key elements to it, and neither one alone will be effective. At its most basic level, brands need to be doing sufficient advertising in the right places to be visible and recognizable to the people they’re trying to reach. But being vocal and announcing a brand’s presence is not enough on its own; brands also need something genuinely engaging to shout about. Brands therefore need to do great things, and then tell people they’re doing them. One without the other means wasted resources, but strong communication and share of voice put a brand at a clear advantage. Brands from the Global Top 100 that have high communication scores have surged in brand value 191 percent over 12 years, while those that perform poorly on this measure have only grown by 55 percent.
4. Brand Experience
A brand not only has to deliver a great experience at every point of interaction, and help consumers at every step, it also has to remind consumers, through effective communications, that it is focused on doing this well. Experience starts long before a person considers buying a product, and lasts well beyond the moment of purchase and even the moment of consumption. It includes every exposure to an ad, every experience on a brand’s web site, and every minute they spend waiting for help at a counter or on the phone. Providing a great brand experience cements the relationship between consumers and brands. Those brands in the Global Top 100 that deliver the strongest experiences have grown in brand value by 188 percent in 12 years. Those brands with low experience scores have only increased their value by 18 percent in that time.
Some of the most loved brands in the world are also the most innovative – brands like Nike and Apple, for instance. Love in this context is the emotional affinity of a brand, and it’s something that can’t be bought or manufactured. However, the conditions in which love can flourish can be created. If brands take the time and care to invest in promoting a higher purpose, innovating, and delivering a consistently great experience, then love tends to happen naturally. In the times between innovation, love is often what sustains the consumer relationship with a brand.
Among the most-loved brands in the Global Top 100, brand value has risen an average of 191 percent over 12 years, while those with poor love scores are up just 32 percent.