Every year, Kantar Millward Brown calculates the brand values of more than 2,000 international brands, which are listed in the global database BrandZ. A recent analysis shows that less than 10% of these brands increased their value between 2014 and 2017.
That many brands are leaving their disruptive potential, and thus the expansion of market shares untapped, has been named as an important reason for this development, the survey revealed. By contrast, Amazon - the prime example of a disruptive business model - more than doubled its brand value over the same period.
Obviously, young, fast-growing disruptors in the style of Amazon, Netflix or Airbnb, have one thing in common: they make everyday life easier for consumers. These agile disruptors challenge the established brands, which generally show significantly lower growth. In marketing, for example, companies could be more courageous and add disruptive elements to their activities to create additional growth opportunities for the business and thus for the brand value.
The How Disruption Can Fuel Brand Growth study analyzes Do's and Don'ts and uses examples to illustrate the growth strategies of disruptors in industries, such as e-commerce or automotive. In a nutshell, Kantar Millward Brown names seven points to drive brand growth:
1. Get out of your comfort zone: Every brand has disruptive potential that just has to be released. This is achieved on one hand with activities beyond the mainstream, and on the other hand with a clear focus on the needs of the customers.
2. Identify and address the need for change: Brands who know what is important to consumers and how they behave towards a brand can make better use of growth opportunities. The challenge of any well-differentiated brand is to bring the added value of change to potential consumers and to become more meaningful in their eyes than the competition.
3. Understand fans, followers and loyal customers: On average, consumers pay 14% more for branded products and services that are important to them. In terms of business development and the value of a brand, it is therefore important to not only target the right audience, but to influence the perception of a brand as meaningful and differentiated in order to sharpen the profile accordingly.
4. Consumer insights promote disruptive potential: If established brands lack clear differentiation, they run the risk of becoming "commodities" for consumers. Disruptive elements can be diverse, raising the key question of how target groups react and like innovative changes.
5. Investments make the difference: A simple increase in spending will not automatically lead to more disruption. More important is to invest in a creative idea that suits the brand at the right time. For this reason, those responsible for marketing should get away from product innovation cycles, since especially creative approaches can lead to disruption.
6. Higher returns through fast learning: There are many examples of great products and great creative ideas whose launch or implementation ultimately failed. Therefore, it is recommended to build an agile environment that promotes innovation. Continuous work on improvement - a state of perpetual beta testing - and rapid feedback are crucial to truly capitalize on opportunities.
7. Measure marketing effectiveness and consumer behavior: The current success of a brand is always an opportunity to improve the effectiveness of marketing and at the same time explore growth options. That’s why marketers should measure the impact of their activities as much as consumer behavior.
The fact is that every company can unleash disruptive potential if it has a clear idea of its own brand and knows what status the brand enjoys with consumers, Kantar TNS concludes.