top 10 most and least respected brands of 2015
TRANSCRIPT
October 28, 2015
2015 Top 10 Most and Least Respected Brands
Our Starting Point
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Brand Respect scores are derived from the CoreBrand Index (CBI), a quantitative database based on a continuous benchmark tracking survey of nearly 1,000 companies across 50 industries. To be considered, brands must be:
– A corporate brand (not a product or divisional brand)
– Publicly traded for 5+ years
– Tracked by the CBI for 5+ years
Our Starting Point (continued)
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Respondents representing opinion elites and business decision-makers at the top 20 percent of U.S. corporations are polled on the following:
– Familiarity: Respondents are considered to be familiar with a brand if they state that they know more than just the company name. Familiarity scores can range from 0 to 100.
– Favorability: Respondents familiar with a corporation are then asked about three dimensions that together, form a Favorability score, also on a scale of 0 to 100. These three dimensions include Overall Reputation, Perception of Management, and Investment Potential.
Methodology
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Familiarity and Favorability are used to uncover the sentiment behind the most well known brands. Over 500 companies meet the previously noted criteria and were eligible to be considered for our most respected analysis.
• First, we sorted by Familiarity. Companies needed to achieve a threshold of understanding – ensuring that we were ranking only the most well known brands. Focusing on the 100 brands in the CoreBrand Index (CBI) with the highest Familiarity, we then sorted by Favorability score.
• Those with the most Familiarity and with the highest Favorability are defined as most respected. Those with the lowest Favorability are considered the least respected.
Top 10 Most and Least Respected Brands 2015
America’s Most – and Least – Respected Corporate Brands
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Brand
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Most Respected Rank Least Respected
Coca-Cola 1 Delta Air Lines
PepsiCo 2 H&R Block
The Hershey Company 3 Big Lots
Bayer 4 Papa John’s
Johnson & Johnson 5 Denny’s
Apple 6 Rite Aid
Harley-Davidson 7 JCPenney
IBM 8 Best Buy
Microsoft 9 Foot Locker
GE 10 CVS Health
Based on “Familiarity” and “Favorability” scores. Note: “Least Respected are not “Least Favorable” – rather, they represent the bottom of the most familiar in regards to brand respect.
Top 10 Most Respected Brands Key Take-away:
Even the most respected
brands must remain vigilant
Coca-Cola retains its top position as the Most Respected brand despite years of decline in Favorability
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Familiarity & Favorability Trends
2010 2011 2012 2013 2014 2015 Familiarity 97.5 96.7 96.8 96.7 96.9 97.1 Favorability 88.4 86.6 86.1 84.5 83.7 83.6
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Examining the three dimensions of Favorability, Coca-Cola’s Overall Reputation, Perception of Management, and
Investment Potential scores have all trended down since 2010
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Investment Potential has decreased the greatest during the past five years, perhaps reflecting the company not keeping pace against major financial indices as well as the macro consumer trend toward healthier consumption
2010 2011 2012 2013 2014 2015 Overall Reputation 93.0 90.8 90.1 89.0 89.1 89.1 Perception of Management 82.8 81.7 81.9 80.4 79.6 79.7 Investment Potential 89.2 87.3 86.4 84.2 82.4 82.1
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Top 10 Most Respected Brands Key Take-away:
Favorable Brand Perceptions are driven in part by innovation, collaboration and brand experiences, however, missteps
can be highly damaging
Apple and Microsoft demonstrate the strongest momentum among the Top 10 Most Respected while J&J has declined
the most
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Favorability – Top 10 Most Respected Brands
65.0
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100.0
2010 2011 2012 2013 2014 2015
Coca-Cola
PepsiCo
Hershey
Bayer
Johnson & Johnson
Apple
Harley-Davidson
IBM
Microsoft
General Electric
Apple’s strong rating on Overall Reputation and Investment Potential – both experiencing doubt-digit growth – propels the
tech giant to move up 2 spots and place at #6 this year
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This trend may be driven, in part, by Apple’s continuing focus on new product innovation, acquisition of complementary brands and outstanding customer experiences to maintain
momentum and increase its reputation
2010 2011 2012 2013 2014 2015 Overall Reputation 76.3 77.4 80.5 83.2 85.6 87.5 Perception of Management 66.5 67.7 70.9 72.2 73.2 74.4 Investment Potential 67.0 68.5 72.1 74.5 76.3 77.3
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Microsoft places on the Most Respected List at #9 having gained on both Familiarity and Favorability since 2010
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Microsoft's upward trend may be attributed, in part, to its strong financial results, expansion in its device business (Nokia, Xbox) and partnerships (Apple, SAP and Salesforce)
2010 2011 2012 2013 2014 2015 Familiarity 92.4 90.8 91.9 92.7 94.1 95 Favorability 72.2 72.2 74.8 75.5 77.6 78.9
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While Microsoft improved across the board, its Overall Reputation jumped 9 points since 2010
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Improved Perception of Management closely mirrors Investment Potential, helping bolster Overall Reputation
2010 2011 2012 2013 2014 2015 Overall Reputation 77.3 77.1 80.2 82.2 84.3 86.3 Perception of Management 67.6 67.6 70.6 70.8 72.9 74.2 Investment Potential 71.7 71.7 73.5 73.4 75.6 76.1
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Although J&J maintains its #5 position from 2014 on the Most Respected Brands, the company’s Favorability has
been steadily declining
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Familiarity and Favorability Trends
2010 2011 2012 2013 2014 2015 Familiarity 92.9 91.5 91.3 92 92.7 93.5 Favorability 87.3 84 81.8 80.1 80.4 80.2
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J&J’s downward trend may reflect multiple product recalls among its portfolio and numerous lawsuits during
the past few years
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J&J’s Overall Reputation, Perception of Management, and Investment Potential have all suffered since 2010, with the company’s Investment Potential taking the biggest hit, dropping 11.1 points
within the past five years
2010 2011 2012 2013 2014 2015 Overall Reputation 92.3 90.3 89.0 88.0 88.0 87.8 Perception of Management 82.6 80.2 79.3 77.2 77.3 77.0 Investment Potential 87.0 81.4 77.1 75.3 75.9 75.9
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Top 10 Least Respected Brands Key Finding:
While once on the verge of bankruptcy,
many of the Least Respected Brands are finding new vigor
CVS Health experiences the most significant decline on Favorability since 2010; Best Buy, Denny’s, and Big Lots see
consecutive gains on Favorability year-over-year
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Favorability – Top 10 Least Respected Brands
35.0
45.0
55.0
65.0
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85.0
95.0
2010 2011 2012 2013 2014 2015
Delta Air Lines
H&R Block
Big Lots
Papa John's
Denny's
Rite Aid
JCPenney
Best Buy
Foot Locker
CVS Health
Top 10 Least Respected Brands Key Take-away:
Socially responsible corporate actions are important but may not be enough
to overcome financial concerns
CVS Health’s Favorability has been trending downward since 2010
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Recent increases in Familiarity and corresponding decreases in Favorability may be linked to investor skepticism about pulling tobacco products from shelves
2010 2011 2012 2013 2014 2015 Familiarity 81.3 78.7 77.7 77.4 77.8 79.9 Favorability 70.2 68.9 67 65.2 64.6 62.9
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Significant losses across Overall Reputation, Perception of Management, and Investment Potential cause CVS Health to
enter onto the Least Respected Ranking for the first time
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Increased cohesion among downward trending dimensions contribute to brand “drag”
2010 2011 2012 2013 2014 2015 Overall Reputation 75.8 74.1 71.6 69.1 67.8 64.0 Perception of Management 66.7 65.5 64.7 63.6 64.0 63.6 Investment Potential 69.6 67.1 64.6 63.0 62.1 61.1
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Top 10 Least Respected Brands Key Take-away:
Traditional brick and mortar retailers face significant competition and fight
for share-of-wallet from online channels
Retail is most dominant category across the Top 10 Least Respected Brands, representing 4 out of the 10 companies
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Favorability – The Top 4 Least Respected Retail Brands
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2010 2011 2012 2013 2014 2015
Big Lots
JCPenney
Best Buy
Foot Locker
While these retail brands benefit from high Familiarity, their Favorability scores have yet to reach the threshold necessary
to enter onto the Most Respected list
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Among the Least Respected retail brands, Foot Locker benefits from a 7-point advantage
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Big Lots JCPenney Best Buy Foot Locker
Familiarity
Favorability
Placing at #3, Big Lots is the Least Respected retail brand though the company has been steadily
improving its Favorability.
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Big Lots Favorability Attributes – in order to sustain its momentum, the brand needs to carefully manage its Overall Reputation
2010 2011 2012 2013 2014 2015 Overall Reputation 53.5 53.7 56.2 57.5 57.1 56.7 Perception of Management 50.0 50.1 53.1 54.2 55.7 57.2 Investment Potential 46.3 46.8 49.9 51.2 52.4 54.0
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Best Buy moves from #5 and places as the #8 Least Respected Brand
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Best Buy Favorability Attributes
2010 2011 2012 2013 2014 2015 Overall Reputation 58.8 60.1 63.3 65.0 66.3 66.5 Perception of Management 52.0 52.4 55.7 58.6 62.2 64.2 Investment Potential 48.7 48.7 49.8 51.2 52.4 54.2
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JCPenney registers as the #7 Least Respected Brand for the third consecutive year
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While Perception of Management is steadily improving, consumers and investors are still wary of the brand’s ability to rebound
2010 2011 2012 2013 2014 2015 Overall Reputation 70.1 69.9 70.9 70.6 70.6 69.8 Perception of Management 59.7 59.2 59.6 60.0 62.9 64.6 Investment Potential 55.1 53.8 51.8 51.4 50.1 49.5
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Foot Locker re-enters the Least Respected list at #9 In 2013 the company held the #10 position
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Foot Locker Favorability Attributes
2010 2011 2012 2013 2014 2015 Overall Reputation 62.8 64.4 67.4 68.4 69.5 66.3 Perception of Management 58.2 58.6 61.6 63.7 66.6 67.0 Investment Potential 51.3 50.8 51.3 53.0 54.5 55.3
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