So what comes to your mind when someone says BRAND VALUE??? According to Millward Brown "Value-D" ranking based on surveys of 150,000 consumers in 24 countries; AMAZON.com, founded by Jeff Bezos in 1994 has emerged as the strongest brand globally & in the U.S.
Amazon is recognized as the strongest brand globally as measured by how consumers perceive value vs. the associated costs. It’s the first time the unit of WPP’s Kantar Group has released the value-based ranking of brand strength in the Millward Brown’s research report.
The list of winners in the rankings primarily includes brands based on the Desire-Price relationship (known as value-D score). Value D score was developed by WPP’s Millward Brown and is based on BrandZ, the world’s most comprehensive and reliable collection of brand equity information available. Created 13 years ago, BrandZ contains data from more than one million consumers in 30 countries. Globally, Amazon is followed by Colgate, Nokia, Pampers & others as shown in the chart.
The report emphasizes that Price alone is not rather brand has increased in importance relative to other purchase drivers such as price, location, convenience and habit. On average worldwide,
only 7 percent of consumers buy on price alone, down from 20 percent ten years ago. On the other hand, 81 percent regard brand as an important purchase driver. The study is designed to be a practical and relevant tool for sharpening customer’s perception and improving profitability.
The irony is that tech giants like Apple and Google didn’t make the cut, but Nokia did. The basic reason may be people find Apple too expensive & Google on contrary provides services for free so cannot be measured on the price angle.
On that same pricing spectrum, while Starbucks and other premium coffee brands might be more desirable overall, Nescafe globally and Folgers in the U.S. make the top 10 on price perception.
Value-D measures the gap between the consumer’s Desire for a brand and the perception of the brand’s Price. By quantifying this gap, Value-D helps brands optimize their sales, profit and market positioning potential. Since the score essentially measures the gap between what consumers think the brand is worth and how they think it’s priced, the higher the score, the greater the potential & flexibility for raising prices and boosting profits.