Recession may be short for strongest brands
An analysis report released by Millward Brown Optimor has revealed that bigger brands are recovering faster than the S&P 500 stock index as a whole, due to strong branding strategies developed by the organisations.
Additionally, according to Ben Dixon, managing director of Millward Brown Australia, increasing consumer confidence is set to deliver strong gains to Australian companies who continued to invest in their brand during the economic downturn.
“Australian companies who have stayed true to their brand and continued to invest throughout the tough times will benefit most from increased consumer confidence,” said Dixon.
Millward Brown has experienced a surge in demand for qualitative research in Australia over the past three months as brands cautiously increase their investment in new product development and creative executions and move from maintenance mode to competitive mode, Dixon commented.
On a global level the recession has provided fresh evidence of the tremendous value of brand assets, explained Joanna Seddon, CEO Millward Brown Optimor.
“Over the past year, even when things were at their worst, brands that appeared in the BrandZ portfolio outperformed the market. Our 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,” asserted Seddon.
According to Millward Brown, the BrandZ Portfolio, created from the world’s top 100 most valuable brands, is estimated to be worth 28 percent more than the S&P 500 and has returned to profit ahead of the market.
The BrandZ 2009 report revealed its top three brands as Google, Microsoft and Coca-Cola.