Hot Brands Deliver Cool Value

Written by Judith Ricker    There are several respected and well-known brand valuation approaches.  Interbrand’s Best Global Brands 2010, and the recently released Millward Brown’s 2011 BrandZ study are two excellent examples.  While the methodologies and results are different, the message is the same – brands generate value for their shareholders and their customers by clearly defining themselves in a differentiated and meaningful way, delivering on their promises, and creating excitement in the marketplace.  These are brands that understand the importance of activating passion among consumers.

Amazon.com is on both lists, albeit with different rankings and vastly different valuations, but showing large year-over-year double-digit increases.  Market Probe’s recently completed syndicated study of 23 large U.S. Retailers also put Amazon at the top of our Brand Passion assessment, a model that looks at Emotional bonds, personal Harmony (“fit”) and Attachment.  In fact, 66% of frequent Amazon.com customers are excitedly “passionate” about the online retailer.  The only brand that rivals this level of intensity is IKEA, which also shows up on the Interbrand list.  What’s driving this passion for Amazon?  It’s a combination of both functional and intangible factors.  Yes – the company is “reliable” and offers “quality products” that are “worth the price,” but the brand is also seen as “caring about its customers,” “trustworthy,” and a “leader” that is “willing to try new ideas.”  

Brands like Amazon.com, Coca-Cola, Apple, Google and McDonald’s remain hot and continue to deliver value because they understand their customers, stay true to their core ideals, and always keep an eye on the future.  Please tell us what you think hot brands are doing to deliver value in the comments below!

Judith Ricker is Executive Vice President, Brand Research and Consulting at Market Probe CLICK FOR JUDITH'S BIO