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 5 LatAm Bonding 14% Top 5 Argentina 16% Advantage 51% 44% Performance 60% 54% Relevance 76% 64% Presence 96% 74% The POWER of the brand: Brand Contribution Coca Cola Argentina Bonding 51% Bonding only 51% Advantage 76% Advantage only 25% Performance 79% Relevance 87% Presence 99% Coca Cola Argentina Bonding only Customers % Value % Customers % Value % 51 76 Advantage only Performance/ Relevance/ Presence No Presence 25 14 23 10 1 0 Coca Cola Argentina Bonding 51% Advantage 76% Performance 79% Relevance 87% 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 Argentina)? Guinness Heineken Quilmes 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 Argentina)? Ford Honda VW Q3. BRAND DIFFERENCE Brands that are different can have an advantage over others. Which one of these is rated most different (in Argentina)? Apple iPhone Nokia Samsung 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 Argentina)? Carrefour Jumbo Walmart Q5. CHARACTER CLARITY Brands that have a distinct and defined character tend to be stronger. Which one of these has the clearest Character(in Argentina)? Andes Eki Tai 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