How can you get a 7-fold increase in your brand value?

brandingMarketing professionals have been advising clients for decades to invest in brand positioning and identity to produce a greater ROI on all other marketing and promotional efforts. After a 10-year study, we now have quantifiable data to support that sage advice courtesy of WPP brand consultancies The Partners and Lambie-Nairn, in collaboration with Millward Brown and BrandZ. Using a 10-year period of brand valuation data and combining that with consumer opinions of the same brands for the same 10-year period, we can now quantify what we always suspected:  investing in brand positioning and identity produces markedly greater returns in brand value when compared to, or used in conjunction with strong advertising.

Here are the comparative results for the 10-year study period:

1. Compelling brand value proposition, a distinctively designed brand identity, and compelling advertising and marketing support:  168% increase in brand valuation

2. Compelling brand value proposition, a distinctively designed brand identity, and weak advertising and marketing support:  76% increase in brand valuation

3. Weak brand value proposition, a poorly designed brand identity, and compelling advertising and marketing support:  27% increase in brand valuation

4. Week brand value proposition, a poorly designed brand identity, and weak advertising and marketing support:  21% increase in brand valuation

For food and beverage brand owners and stakeholders, one of the most remarkable takeaways from this study effort is the degree to which branding drives brand value growth, even though most brands allocate the majority of their marketing budgets to advertising and promotional efforts. Without a clear commitment upfront to creating and establishing a brand, along with consistent brand messaging over time, the dollars spent on marketing and promotional support are far less effective. Investing in a brand strategy and identity before focusing on advertising and promotional support efforts can increase the ROI, ranging from 21% to 168%, in brand value over the long haul. With brand valuations ranging from millions to hundreds of millions of dollars, these percentage increases represent huge bottom line dollars.

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