Brand assets on a spike
The brandvantage? The world’s strongest brands are recovering faster than the overall market, according to Millward Brown Optimor. The brand strategy and research consultancy says its BrandZ Portfolio, which comprises a century of the most valuable brands, is currently outperforming the S&P 500.
“The recession has provided fresh evidence of the tremendous value of brand assets,” says Joanna Seddon, MBO’s CEO. “Over the past year, even when things were at their worst, the BrandZ portfolio outperformed the market. Our new analysis reveals that as the stock market recovers, the share prices of companies who have invested in developing strong brands are recovering fastest. Companies that continue to invest in their brands in a recession emerge with a sustainable competitive advantage.”
Brands achieve their ranking in BrandZ via economic use methodology which calculates value by looking at the role that brand plays in the purchase decision, and identifying what proportion of the business value can be attributed purely to the brand.
MBO identifies Amazon as having the best short-term growth prospects, ahead of Subway and Baidu (see below). “Amazon has benefited from a shift to online purchasing as consumers, attempting to economize, try to control their shopping experience and find the lowest prices,” the consultancy says in its BrandZ 2009 report.
The success of Subway reflects both increased traffic at fast food restaurants and consumer preference for healthier menus, while the relatively strong Chinese economy accounts for the forecast growth of Baidu, China’s largest search engine.
“BMW’s high brand momentum indicates pent-up demand during the recession, as customers may defer purchases but remain loyal to the brand,” MBO says of the seventh-ranked car brand.
