By: Sylvia Palka Melo, Senior Consultant
Brands are critical assets, have equity, and drive business strategy and performance. When a brand is viewed as an asset, multiple opportunities arises to leverage this strategic asset to generate profitable, sustainable growth. CEOs that adopt and successfully implement this perspective see brand building shift from a tactical effort that is typically delegated to their marketing department to a key driver of business strategy.
The financial impact of a brand-driven business strategy helps make the case for managing brands as an asset. When Brand Finance® measured the share price of brands and their subsequent stock market performance between 2007 and 2015, it found that an investment strategy based on the most highly branded companies (those where brand value makes up a high proportion of overall enterprise value) would have led to a return almost double that of the average for the S&P 500 as a whole. In fact, between 2007 and 2015, the average return across the S&P was 49%; however, investing in companies with a brand value to enterprise value (BV/EV) ratio of greater than 30% would have generated returns of 94%.1
These findings have one common attribute and that is brand-driven CEOs who leverages brand as a key driver of performance and business value. The challenge is that most CEOs don’t know where to begin.
In our latest white paper, LEVEL5 takes a closer look at why brand management needs to start at the top – with the CEO – and the six critical success factors for transforming a company into brand-driven organization to unlock new profitable, sustainable growth:
As part of the white paper, we showcase four prominent brand-driven business leaders – Allan MacDonald, President, Canadian Tire Retail; Joe Natale, former CEO, TELUS; Ana Dominguez, President, Campbell Company of Canada; and Michael Jones, President & Chief Executive Officer, Equity Financial Trust – who have successfully embraced the concept of brand as an asset and unleashed extraordinary new sustainable value for their organizations by putting these six success factors into practice.