Tag Archives: brand management

2022 Top Global Brands

As marketers, we know that brands influence consumer purchasing decisions. But really, what is a brand? Does a brand have a financial value? Does it drive growth?

These are critical questions that drive the strategic marketing decisions of corporations around the world. In general, marketers define brand as the position that a company/product holds in the minds of the consumers. It follows then that if the brand holds a position in consumers’ minds, then it would definitely translate into a financial value for companies.

Each year, Interbrand does a financial analysis that seeks to define, in dollars, the value of a company’s brand – the result is the annual Best Global Brands ranking. In order to be included in the report:

  • The brand must be global – it must have successfully crossed geographic and cultural boundaries.
  • At least 30% of revenue must come from outside the brand’s home region.
  • The brand must have a significant presence in at Asia, Europe, and North America, as well as geographic coverage in emerging markets.
  • There must be sufficient publicly available data on the brand’s financial performance.
  • Economic profit must be expected to be positive over the longer term, delivering a return above the brand’s cost of capital.
  • The brand must have a public profile and awareness above and beyond its own marketplace.

Interbrand’s brand valuation methodology seeks to determine, in customer and financial terms, the contribution of the brand to the company’s business results. There are three key components in the methodology for the valuations: analyses of the financial performance of the branded products or services, of the role the brand plays in the purchase decision, and of the competitive strength of the brand.

Brands in the top five  in 2022 include Apple (number one for the 10th consecutive year), Microsoft (moving up a spot to number 2), Amazon, Google, and Samsung. Indeed, the top 10 brands have a cumulative brand value greater than the combined value of the 90 brands.

The fastest risers from 2022 in terms of brand value percentage change are Microsoft, Tesla, Chanel, Ferrari, Lego, Google, Hermes, and Dior. New entrants to the list in 2022 include Airbnb (#54), Red Bull (#64), and Xiaomi (#84).

How many did you correctly guess?

Group Activities and Discussion Questions:

  1. Ask students to define “brand.” What is it? Does it have value to a company?
  2. Have students take out a piece of paper. Ask them to choose what they think are the top 10 most valuable brands in the world.
  3. Then show the top 10 list from the Global Brand report: https://interbrand.com/best-global-brands/
  4. How many did they get correct? What surprised them?
  5. Show a video on the methodology used to evaluate brand value: https://youtu.be/tK2ozWQ0HA4
  6. Show students several of the sections within the site and view the videos as a class.
  7. Divide students into teams and assign each team an industry category to examine: automotive, apparel, beverage, electronics, energy, etc.
  8. Have each team present key findings from the industry sector they examined.
  9. How can these findings be applied in marketing strategies?

Source: Interbrand.com; PR Newswire

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Gen Z’s top 20 brands

Marketers recognize the importance of understanding demographics when deciding on target markets to pursue. Age is a significant factor as different generational cohorts have different tastes, aesthetics, expectations, and values. While different research firms may define the age cohorts slightly differently, the most-often cited years for Gen Z are 1997 to 2012, making Gen Z between 10 and 25 years old. This group is just forming their tastes and solidifying their values. This of course leads them to favor certain brands and companies over others. But which ones are their favorites?

Since this group makes up a large portion of traditional college students, it is critical for marketers to understand which brands they favor and why. Their evolving preferences can indicate how companies should adapt to the new group of consumers.

A recent study done by Morning Consult, which fields tens of thousands of surveys around the world, measured Gen Z’s favorite brands.  Data was gathered between May and August, 2022, with an average sample size of 2,031 Gen Z adults born between 1997 and 2004. Key insights and rankings include:

  • Tech brands are tops with Gen Z. The most favorable brand is YouTube at 86% favorable impression.
  • Major retailers such as Amazon, Target, and Walmart have high ratings hovering around 80% favorability.
  • In particular, gaming brands hold strong sway, along with food and beverage brands.
  • Top 10 most favorable brands: YouTube, Google, Netflix, Amazon, M&Ms, Walmart, Target, Doritos, KitKat, and Oreo.
  • Top 10 with Gen Z men: YouTube, Gatorade, PlayStation, Google, Walmart, Netflix, Microsoft, Amazon, Nike, M&Ms.
  • Top 10 with Gen Z women: YouTube, Google, Netflix, Target, M&Ms, Doritos, Amazon, Oreo, KitKat, Walmart.

Which brands are your favorites?

Group Activities and Discussion Questions:

  1. Poll students: What are their favorite brands? (Note: You might have students break into groups to arrive at a list of 20 brands.)
  2. Link to download the report from Morning Consult: https://go.morningconsult.com/2022-q3-pg8764a1-gen-z-favorite-brands-download.html
  3. Divide students into teams and have students analyze a data segment in the report. Teams can present their insights to the class.
  4. Have teams choose a brands that is NOT in the top (i.e., cars, household goods, consumer product companies).
  5. How can these findings be used to market weaker brands to Gen Z consumers?

Sources:  Jackson, S. (2 October 2022). From Amazon to Skittles, a new survey of the top 20 brands among Gen Z adults shows tech and snack brands reign supreme with the demographic. Business Insider.; Morning Consult. Gen Z’s Favorite Brands.

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General Mills Adds Brand Loyalty Program

High prices and inflation are big issues for consumers these days. Food inflation reached a 43-year high in June. As inflation keeps prices going high, many consumers are switching to lower-cost store brands instead of higher priced name brands.

To help keep loyal consumers, and to gain new ones, General Mills has launched its first-ever brand loyalty program called Good Rewards. The program includes special offers and points for consumers that can be redeemed for products, gift cards, and more, helping families stretch their grocery dollars.

The program gives consumers rewards every time they purchase General Mills products. Consumers scan receipts after shopping to get rewards, including one percent back on all General Mills purchases.

Good Rewards is part of the popular app Fetch Reward. With roughly 15 million Fetch users, it is the top downloaded shopping app for iPhone and the second most downloaded app for Android users. General Mills has a goal of 1 million consumers to use Good Rewards within a year; in less than a month the gained 350,000 users.

Rewards programs also offer brands a detailed look at consumer behavior and purchase habits. The better companies are at understanding their customers, the more opportunity exists to offer personalized rewards.

Get rewarded!

Group Activities and Discussion Questions:

  1. Start with a discussion about loyalty and rewards programs and their use in marketing.
  2. Have students count up the number of different rewards programs they participate with. Who has the most?
  3. Show Good Rewards website: https://www.generalmills.com/news/stories/introducing-good-rewards
  4. Show Fetch Rewards website: https://www.fetchrewards.com/
  5. Discuss setting SMART objectives (specific, measurable, achievable, realistic, and time-bound).
  6. Divide students into teams. Have each team develop five SMART objectives for General Mills Good Rewards.
  7. Discuss the objectives. How would the objectives change if a different strategy was used?

Sources:  Johnson, B. (5 August 2022). General Mills adds loyalty app. Minneapolis Star Tribune.

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