How to Make a Beloved Brand Valuable 〜From Profit to Benefit
↑The world “brand” comes from “burned” (branding iron), burning the cow.
Companies go from profits to benefits
KANTAR presented survey results of company brand value, “BrandZ Top 50 Most Valuable Japanese Brands 2021”.
Below is the status of the top companies in Japan.
・Toyota’s total sales are 29.9 trillion yen with a 10% brand value of 2.9 trillion yen.
・Sony’s total sales are 8.3 trillion yen with a 13% brand value of 1.1 trillion yen.
On the other hand, global companies…
・Amazon’s total sales are 38 trillion yen with a +50% brand value of 42 trillion yen.
・apple’s total sales are 26 trillion yen with a +44% brand value of 35 trillion yen.
In other words, the brand value of Japanese companies is only about 1/15 of that of global companies. This huge difference in brand value is naturally reflected in the stock price.
According to Jim Stengel, the god of marketing, the representative stock index “S & P 500” in the United States (the 500 representative from the stocks listed on the NASDAQ, the New York Stock Exchange calculated by the Dow Jones Index) One-third of the stock value (calculated based on the stock price of the stock) is estimated to be the brand value. That’s how important “branding” is.
Book “Grow: How Ideals Power Growth and Profit at the World’s Greatest Companies” Author: Jim Stengel
Japanese companies must take more branding measures rather than only marketing measures.
The difference between marketing and branding must be changed 180 degrees from the perspective of companies or consumers.
Marketing is the task of getting to know your company’s products and services and buying them. Branding, on the other hand, is about how much consumers love products and services.
Knowing the product and buying is becomes a profit short term, but the power and effect is short lived. With branding, once you love the brand it leads to a profit. Therefore, it is a difficult field with a single-year budget measure. It’s a difficult place to reach an in-house consensus.
Thats why, if the president doesn’t understanding branding, the company cannot move forward. Even if the vice president or the managing director leads, it will not move forward. The marketing budget (PR) may belong to the general manager of the promotion department, but the branding budget must be handled by the president. Branding consists of 4 Rs. PR / IR / CSR / HR. In addition to conventional public relations, corporate information, corporate social activities, and care measures for workers will increase brand value.
In order to be loved by the consumers, there’s no point if you sell many advertisements, even if the quality of the product is good, how will the product be a necessity in society? You need to create an environment where the company or employees who make the products are loved by society. In order to enter the insight of the heart of the consumers, you need to actively strategize through SNS as well.
Good products made by good people are loved. Companies that are environmentally friendly and do good things for society are also loved. If you look closely at marketing, very profitable toxic companies, in the long run, are losing profit.
Branding measures are not the kind that raise your sales right away. However, it contributes to your business in the long run. That is the effect of branding.
* BrandZ™ Kantar is an English market research company that is a survey database for brand assets of companies all over the world. Worldwide, it is the only brand evaluation survey that combines brands collected from the results of more than 3 million consumer surveys with analysis of the financial performance and performance of each company, and has been updated annually since 1998. Kanta’s headquarters are in London, and operates in about 90 countries around the world.
* Profit : Financial profits such as gains and profits.
Benefit : Not limited to money, it also includes psychological benefits such as satisfaction