views Shifting
Peter Walshe explains why it’s worth investing in brand building to change public perceptions
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Below Peter Walshe is Global BrandZ Director at Kantar Millward Brown
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s one of the most scrutinised industries in the world, moves made by major oil companies to demonstrate greater responsibility can be met with scepticism by media commentators and other influencers. When Shell, BP, ExxonMobil and Total backed the US carbon tax, for example, Greenpeace called it a ‘PR stunt’. Evidence from the latest BrandZ Top 100 Most Valuable Global Brands research, however, shows that efforts made by oil brands to be perceptibly more conscientious are having a positive impact on their reputation, value and – as a result – their bottom line. As one of the most important intangible assets a business possesses, alongside its IP and data, brand is a major source of shareholder value. Strong brands predispose customers to purchase, build long-term loyalty, protect a business from risk and help it recover from a crisis. Brands exist in the minds of consumers, which is why the BrandZ research measures the opinions the public holds about them as well as their financial strength.
ENERGY,oil&gas
energy-oil-gas.com
The world’s ten most valuable oil and gas brands increased their value to the businesses that own them by five per cent over the last year, in contrast to a drop of 20 per cent the previous year. This turnaround was in part due to more favourable geopolitical climate, recovering oil prices and businesses streamlining their operations, but it also reflects the focused investment companies made in developing the consumer-facing part of their brands. Oil and gas brands have increasingly recognised the importance of public opinion, and re-examined their communications strategies to reach a wider audience beyond legislators, journalists, academics, lobbyists and other influencers. They are also making a concerted effort to engage millennials, who are inclined to select brands which are aligned with their values. The value of Shell’s brand has increased 23 per cent to $18.3 billion in the last year, following its merger with BG and investment in marketing, brand-building and corporate social responsibility (CSR). It is the 57th most valuable brand in the world.