Global communications company, WPP, has released its inaugural BrandZ Top 40 Most Valuable Australian Brands report, which uses consumer perceptions to help value brands, as well as “rigorous financial analysis”.
While this is the first edition of the report, WPP says that this annual review will track and anticipate the rapidly evolving environment for brands in Australia and will subsequently chart the changing fortunes of Australia’s most valuable brands.
Five of the top 10 brands in the report are banks, two are in retail, two are telecom providers and one is an energy provider. The report lists Woolworths as the sixth most valuable Australian brand, worth US$7105m, while Coles is seventh with a brand value of $5207m.
Detailing the methodology behind the report, WPP said; “The BrandZ valuation methodology can be uniquely distinguished from its competitors by the way we use consumer viewpoints to assess brand equity, as we strongly believe that how consumers perceive and feel about a brand determines its success and failure.
“We conduct worldwide, on-going, in-depth quantitative consumer research, and build up a global picture of brands on a category-by-category and market-by-market basis.
“Brands embody a core promise of values and benefits consistently delivered. Brands provide clarity and guidance for choices made by companies, consumers, investors and other stakeholders. Brands provide the signposts we need to navigate the consumer and B2B landscapes.
“At the heart of a brand’s value is its ability to appeal to relevant customers and potential customers. BrandZ uniquely measures this appeal and validates it against actual sales performance. Brands that succeed in creating the greatest attraction power are those that are meaningful, different and salient.”
The 2018 BrandZ top 40 includes five liquor brands and three liquor retailers, with the five alcohol brands being worth a combined total of $2385m, which is 2.3 per cent of the total value of the BrandZ Australian Top 40.
The most valuable Australian liquor brand is Foster’s which is ranked 19th in total with a value of $748m, the report does say this position as Australia’s most valuable alcohol brand is “ironic” because it is entirely driven by the brand’s popularity in the UK.
The report adds: “Iconic brands like Victoria Bitter, Crown Lager, and Bundaberg have strong roots over many years, and have built strong brand loyalty across multiple age groups.”
Victoria Bitter is the next most valuable alcohol brand, coming 22nd on the list and being worth $545m, next is Carlton Dry (33rd and $410m); Crown Lager (36th and $343m) and finally Bundaberg Rum which is 37th and has a brand value of $340m.
Of the liquor retailers the report lists BWS as the most valuable, coming 20th overall and with a value of $741m, next is Liquorland (35th and $354m) and finally Dan Murphy’s which the report puts 39th in the top 40, with a brand value of $281m.
WPP CEO David Roth said: “Australian brands are beloved and have rich histories that are embedded in the upbringing of its populace. For WPP, Australia is a unique market, one that is undergoing change and facing unparalleled disruptive forces upon its shores.
“Australia’s impact on the world has stemmed from its high quality of life and strong environmental sustainability as Australia like nowhere else celebrates equality, diversity, and strong social ‘mateship’. This heritage serves many Australian brands well.”