A brand should behave and uphold the message it communicated, said Kingsley Makubela, chief executive officer of Brand South Africa, ahead of the South African Top 50 Brands announcement.
The leading brands will be announced by Brand South Africa and Brand Finance Africa on Thursday, 15 September at the Nelson Mandela Foundation in Houghton, Johannesburg. This will be the fourth annual survey released on South Africa’s Top 50 Brands
How the top brands are valued
The Brand Finance approach to brand valuation involves valuing brands on three different levels, each reflecting the different definitions of brand commonly used in the marketplace, reads Brand South Africa’s site. “The levels include: brand business value, brand contribution and brand value.”South African commercial brands are a key component of a strong nation brand and how this is experienced by domestic and international audiences, it adds. “As such, commercial brands are key messengers in positioning the country competitively.”
Brand Finance defines brand as the “trademark and associated IP (intellectual property) including the word mark and trademark iconography”.
Last year, the five Most Valuable Brands in the country were MTN, Vodacom, Sasol, Standard Bank and First National Bank. Retail group Woolworths and First National Bank were the strongest brands in South Africa in 2014-15. The cellphone network MTN was the Top Valuable Brand in the country.
The top 50 corporate brands in South Africa last year were valued at approximately R1.5-trillion, reported Media Club South Africa.
News portal Business Tech reported that the Top 50 Brands survey was conducted by Brand Finance, which calculated brand value using the Royalty Relief approach. This approach involves estimating the likely future sales that are attributable to a brand and calculating a royalty rate that would be charged for the use of the brand.
Characteristics of top brands
Last year, Thebe Ikalafeng, chief executive officer of Brand Finance Africa, said the key pillars of a brand’s success were its performance, its relationship with its customers, and the money it spent on equity.
This week, Makhubela narrowed the characteristics of a successful brand down to authenticity. “This is an especially important principle in positioning the Nation Brand positively.”
Authenticity, honesty, reliability and credibility are crucial to how a brand is able to weather crises that may impact on its reputation.”It was very important for a brand to be able to generate positive emotions to help it to enable the conversion of attention into loyalty, according to Makhubela.
Why celebrate top brands?
Commercial brands were important carriers of the South African brand and message, he said. “It conveys the story of a South Africa that is innovative, caring and entrepreneurial.”
Commercial brands can also carry a message of a country that is grounded in the principles of good governance,” he said. “Behaviour to the contrary impacts negatively on the corporate entity as well as the nation brand.”In international markets, the corporate entity is sometimes a consumer’s first experience of a country. South Africa’s corporates are therefore very important in our work to position South Africa positively.”
South Africa’s Most Valuable Brands of 2014 and 2015 are listed here.
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