Consumers came out of the Great Recession looking to get the most value for their buck. When it comes to ranking brands that deliver on that requirement, Amazon.com comes out on top in the U.S. and globally.
A new report by Millward Brown, Value-D: balancing Desire and Price for brand success, shows Amazon out well ahead of its closest competitor in the U.S. (Crest) and internationally (Colgate).
"In the current economic climate many brands worry about their prices being perceived as being too high, leading to lost business. Others are concerned that prices are too low, leading to profit loss. What is needed is a balance between the consumer's desire for a brand and the price they are prepared to pay for it," said Peter Walshe, global brandz director at Millward Brown, in a press release.
Millward Brown's research classifies brands by prices tiers from cheap to more expensive. Less expensive brands that grade high for cost may ultimately be perceived as a "poor value" if they are unable to create a sense of "desire" on the part of consumers. Scores over 100 (Amazon received a 157 from U.S. consumers) are considered strong for delivering the right mix of desire and price.
"Too many brands fail to fully optimize their power and instead overemphasize price and downplay desire. The consumer usually desires a brand first and then considers the price to determine whether to purchase or not. Amazon.com has mastered the art of being a trusted brand that consumers want to buy goods from. Its pricing is perceived to be great value, but it is its brand power that attracts customers in the first place," said Mr. Walshe.
Global top 10 Value-D brands
1. Amazon 146
2. Colgate 133
3. Nokia 128
4. Pampers 126
5. Visa 125
6. Coca-Cola 125
7. Microsoft 125
8. McDonald's 124
9. Nescafé 120
10. Lidl 118
U.S. Top 10 Value-D Brands
- Amazon 157
- Crest 136
- Coca-Cola 134
- Folgers 133
- Bud Light 133
- Walmart 132
- Microsoft 131
- Colgate 130
- Dell 130
- HP 129
Source: Millward Brown
Indexed to average brand score of 100