NEW YORK--(BUSINESS WIRE)--Millward Brown, a global leader in brand, media and communications research, released a report today entitled “Value-D: Balancing Desire and Price for Brand Success,” revealing that only seven percent of consumers truly buy based on price alone. The report ranked the top global brands based on how consumers perceive the value of the brand and the cost associated with it and found that Amazon.com led the Value-D ranking both globally and in the U.S.
“The Value-D report clearly indicates that despite an economic environment that has bred a cautious consumer, price alone is not enough to attract shoppers--brand strength is just as important as ever,” said Eileen Campbell, Global CEO of Millward Brown. “Value-D is a great indicator of which brands can realize a ‘justifiable premium,’ and it’s clear that Amazon is doing a great job of balancing its brand perception with its pricing strategy.”
Created in conjunction with The Futures Company, The Value-D report also found that 81 percent of consumers regard brand as an important reason to purchase.
“Too many brands fail to fully optimize their power and instead overemphasize Price and downplay Desire. The consumer usually desires a brand first and then considers the price to determine whether to purchase or not. Amazon.com has mastered the art of being a trusted brand that consumers want to buy from. Its pricing is perceived to be great value, but it is its brand power that attracts customers in the first place,” commented Peter Walshe, Global BrandZ Director, Millward Brown.
|
Global Top 10 Value-D Brands |
||||||
| Brand | Country of Origin | Value-D score* | Brand Type | |||
| 1. Amazon | U.S. | 146 | Great Value | |||
| 2. Colgate | U.S. | 133 | Great Value | |||
| 3. Nokia | Finland | 128 | Great Value | |||
| 4. Pampers | U.S. | 126 | Justified Premium | |||
| 5. Visa | U.S. | 125 | Great Value | |||
| 6. Coca-Cola | U.S. | 125 | Justified Premium | |||
| 7. Microsoft | U.S. | 125 | Justified Premium | |||
| 8. McDonald’s | U.S. | 124 | Great Value | |||
| 9. Nescafé | Switzerland | 120 | Great Value | |||
| 10. Lidl | Germany | 118 | Great Value | |||
*The Value-D Score is an index based on consumers’ desire for a brand minus the perception of a brand’s price (taken from rating it “expensive,” “cheap,” or “about right”). A score that exceeds 100 is considered positive, as it indicates a balance towards desirability which overcomes a high price or adds value to a low price.
Source: Millward Brown
Brand Types
The Top 10 Global Value-D Brands are dominated by those that are categorized as “Great Value” and “Justified Premium.” “Great Value” brands combine high desirability scores with price scores that indicate consumers feel the brand is priced less expensively or reasonably. Brands categorized as “Justified Premium” are so desirable that consumers are willing to pay more for them.
In some price-sensitive categories like fast food some brands that generate strong desire and are priced higher are seen as “Great Value.” Subway is a great example of this. Any score over 100 is considered to be strong, as it indicates the brand has a favorable value ‘gap’ that can sustain value or even demand a greater price premium to lift profitability.
“In the current economic climate many brands worry about their prices being perceived as too high, leading to lost business. Others are concerned that prices are too low, leading to profit loss. What is needed is a balance between consumers’ desire for a brand and the price they are prepared to pay for it. This new report will help brands understand where there is a shortfall and how to increase sales potential,” said Walshe.
|
Top 10 Value-D Brands in the U.S. |
||||
| Brand | Value-D score* | Brand Type | ||
| 1. Amazon.com | 157 | Great Value | ||
| 2. Crest | 136 | Great Value | ||
| 3. Coca-Cola | 134 | Great Value | ||
| 4. Folgers | 133 | Justified Premium | ||
| 5. Bud Light | 133 | Great Value | ||
| 6. Walmart | 132 | Justified Premium | ||
| 7. Microsoft | 131 | Justified Premium | ||
| 8. Colgate | 130 | Great Value | ||
| 9. Dell | 130 | Great Value | ||
| 10. HP | 129 | Great Value | ||
Source: Millward Brown
Emerging in the U.S. Top Value-D brands list was Crest, edging out Colgate, which ranked 8th in the U.S., as the top Value-D toothpaste brand in the U.S; Folgers, the U.S. coffee brand that replaced Nescafe from the global list; Bud Light; Wal-Mart; Dell and HP. Interestingly, McDonald’s, which ranked 8th among the top Global Value-D brands, did not appear within the Top 10 Value-D U.S. brands.
About Value-D
Value-D is a special analysis from the BrandZ study, which is commissioned by WPP and measures thousands of brands across 20 countries.
The full report is available exclusively to WPP clients, but a summary version can be accessed at www.millwardbrown.com.
About Millward Brown
Millward Brown is one of the world's leading research agencies and is expert in effective advertising, marketing communications, media and brand equity research. Through the use of an integrated suite of validated research solutions — both qualitative and quantitative — Millward Brown helps clients build strong brands and services. Millward Brown has more than 77 offices in 53 countries. Additional practices include Millward Brown's Global Media Practice (media effectiveness unit), The Neuroscience Practice (using neuroscience to enhance traditional research techniques), Millward Brown Optimor (focused on helping clients maximize the returns on their brand and marketing investments), Dynamic Logic (the world leader in digital marketing effectiveness) and Firefly Millward Brown (a global qualitative research business). Millward Brown is part of Kantar, WPP's insight, information and consultancy group.
About WPP
WPP is the world’s largest communications services group. Through its operating companies, the Group provides a comprehensive range of advertising and marketing services including advertising; media investment management; consumer insight; public relations and public affairs; branding and identity; healthcare communications; direct, digital, promotion and relationship marketing and specialist communications. The company employs over 141,000 people (including associates) in 2,400 offices in 107 countries. For more information, visit www.wpp.com.
About Kantar
Kantar is one of the world's largest insight, information and consultancy networks. By uniting the diverse talents of its 13 specialist companies, the group aims to become the pre-eminent provider of compelling and inspirational insights for the global business community. Its 26,500 employees work across 95 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at each and every point of the consumer cycle. The group’s services are employed by over half of the Fortune Top 500 companies.
For further information, please visit www.kantar.com.