20200413-Brand_Finance-The_annual_report_on_the_most_valuable_and_strongest_Irish_brands_17页_7mb

Summary of Ireland 25 2020 Annual Brand Report

Core Content

The Ireland 25 2020 report by Brand Finance provides an analysis of the most valuable and strongest Irish brands. It highlights the impact of the global Coronavirus pandemic on brand value and emphasizes the importance of brand valuation in aligning marketing efforts with financial performance.

Key Findings

• Brand Value Loss from COVID-19: The report estimates that the brand value of the world's 500 biggest companies could potentially lose up to €1 trillion due to the pandemic. The aviation sector is the most affected.
• Ireland's Brand Value Impact: The top 25 most valuable Irish brands could potentially lose up to 14% of their brand value, reducing the total from €20.4 billion to €17.5 billion.
• Strongest Brand: Baileys is identified as Ireland's strongest brand with a Brand Strength Index (BSI) score of 86.2 and an AAA brand strength rating. It also recorded a 115% increase in brand value to €1.2 billion.
• Brand Value by Sector: The brand value distribution across sectors is as follows:
  • Engineering & Construction: €3.4 billion (16.8%)
  • Banks: €3.4 billion (16.4%)
  • Spirits: €2.5 billion (12.1%)
  • Apparel: €2.4 billion (11.7%)
  • Airlines: €2.3 billion (11.0%)
  • Food: €1.9 billion (9.3%)
  • Other: €4.6 billion (22.7%)

Main Points

• Brand Finance Overview:
  • Brand Finance is a leading brand valuation consultancy that bridges the gap between marketing and finance.
  • It quantifies the financial value of brands and offers a unique combination of expertise across various disciplines.
  • The firm is a chartered accountancy firm and has developed international standards for brand valuation (ISO 10668 and ISO 20671).
• Brand Valuation Methodology:
  • Brand values are calculated using the Royalty Relief approach, which estimates the economic benefit of a brand by applying a royalty rate to forecasted revenues.
  • The methodology involves calculating brand strength, determining royalty rates, and forecasting revenues to arrive at a net present value (NPV) for brand value.

Brand Strength Index (BSI)

• The BSI score is used to measure brand strength on a scale of 0 to 100.
• Baileys leads with a score of 86.2, followed by Penneys/Primark (82.7), Gunnes (82.2), and AIB (78.7).

Brand Value Change (2019–2020)

• The top 10 strongest brands in Ireland show varying changes in brand value and ratings:
  • Baileys: +2.5, AAA
  • Penneys/Primark: +4.6, AAA-
  • Gunnes: -0.4, AAA-
  • AIB: -0.5, AA+
  • Ryanair: -1.5, AA+
  • Others: +2.1, AA+
  • Jameson: +0.6, AA+
  • OM: +5.7, AA
  • Aer Lingus: -1.0, AA
  • Smurfit Kappa: -0.6, AA

Sector Reputation Analysis

• Top Sectors by Reputation:
  • Auto: 6.9/10
  • Tech: 6.8/10
  • Apparel and Restaurants: 6.6/10
  • Airlines and Retail: 6.6/10
• Reputation Trends:
  • Overall reputation scores have dipped slightly from 6.6 to 6.4 out of 10.
  • Sectors like utilities, telecoms, and banks have struggled to maintain a strong consumer perception.

Impact of the Pandemic

• The pandemic has caused significant disruptions to global markets, with brands across all sectors affected.
• The report warns that the impact will be felt well into 2021, surpassing the effects of the 2003 SARS outbreak.

Brand Finance Services

• Consulting Services:
  • Valuation: Includes branded business, trademark, intangible asset, and brand contribution valuations.
  • Transactions: Offers M&A due diligence, franchising, tax & transfer pricing, and expert witness services.
  • Analytics: Provides market research analytics, return on marketing investment, brand audits, and brand scorecard tracking.
  • Strategy: Offers brand governance, architecture & portfolio management, brand transition, and positioning & extension services.
• Communications Services:
  • Brand Accolade: Digital endorsement stamps for marketing materials.
  • Video Endorsement: Video content featuring Brand Finance executives.
  • Bespoke Events: Award ceremonies and event coordination.
  • Digital Infographics: Visual representations of brand performance.
  • Trophies & Certificates: Personalized recognition for brand performance.
  • Sponsored Content: Articles, advertorials, and interviews in reports.
  • Media Support: Editorial assistance for press releases and media monitoring.

Contact Information

• Simon Haigh: Managing Director, Brand Finance Ireland
  Email: s.haigh@brandfinance.com
  Phone: +353 (0)876695881
• Florina Cormack-Loyd: Communications Manager
  Email: f.cormackloyd@brandfinance.com
  Phone: +44 7939 118932
• General Enquiries:
  Email: enquiries@brandfinance.com
  Phone: +44 (0)207 389 9400
• Website: www.brandfinance.com

Disclaimer

Brand Finance disclaims all liability for the report and does not intend it to be relied upon for any purpose.

Conclusion

The report underscores the critical role of brand valuation in understanding and leveraging the financial impact of brands. It highlights the need for effective brand management and the importance of aligning marketing and financial strategies to maximize returns and mitigate risks, especially in the context of global crises like the Coronavirus pandemic.