2018 COLMAR BRUNTON CORPORATE REPUTATION INDEX
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COLMAR BRUNTON C O R P O R AT E R E P U TAT I O N I N D E X 2018 I N PA R T N E R S H I P W I T H W R I G H T C O M M U N I C AT I O N S
THE 2018 NZ CORPORATE REPUTATION RANKING Uses the global RepZ 17 Industry categories Nationally Survey period from framework with representative sample end October 2017 to standardised reputation Brands indexed against by age, gender and December 2017 attributes major competitors in their region. category to remove Includes New Zealand’s top industry bias Average sample size of 100 consumer facing n=500 per category corporates by revenue as listed in Deloitte Top 200, plus includes financial Over 20,000 New services brands Zealanders interviewed over last 4 years
Our model focuses on the four pillars driving reputation weighted by their impact on advocacy PURPOSE SUCCESS SUBSTANCE 28% 22% 14% 36% LEADERSHIP/ FA I R N E S S RESPONSIBILITY TRUST SUCCESS › Well known › Charge fair prices › Treat employees well › Can be trusted › Leaders not followers › Environmentally › Positive influence responsible on society › First to market with new products & services › Honest and ethical in the way they › Offer investors conduct business a good financial return
Compared to global consumers, New Zealanders still respond more strongly to corporates that show they care PURPOSE SUCCESS SUBSTANCE LEADERSHIP/ SUCCESS FA I R N E S S RESPONSIBILITY TRUST NZ IMPACT ON ADVOCACY 28% 50% 22% 14% 50% 36% GLOBAL IMPACT ON ADVOCACY 35% 67% 32% 17% 33% 16%
A RepZ score of >105 places corporates into a “Resilient Zone”. We see little movement in ranking amongst our top performing organisations even if they face tough issues 9% LOW 72% MID 19% HIGH
MOST POPULAR POSITIVE BRANDS AND THEIR SENTIMENT (TOP BOX) We can see the benefits of New World having a strong Average Sentiment Air New Zealand The reputation by Warehouse Apple Briscoes Auckland International people’s ability AA Insurance Z Energy Airport to recall positive Pak’nSave Toyota experiences Fisher & Paykel TVNZ Average Intensity
95% of the thinking we do is automatic and informs most of our judgement 95% SYSTEM 2 SYSTEM 1 Slow, effortful Logical, deliberative Fast, effortless Conscious Look for patterns/associations Allows for reflection Unconscious Jumps to conclusions If what we see and hear doesn’t connect with a personal experience, it is difficult to shift a pre-existing bias Source: Thinking Fast & Slow - Daniel Kahneman Nobel Prize Winner
SYSTEM 1 IS MORE INFLUENTIAL THAN YOUR EXPERIENCE TELLS YOU, AND IT IS THE SECRET AUTHOR OF MANY OF THE CHOICES AND JUDGEMENTS YOU MAKE
Shifting negative perceptions therefore requires significantly more work than reinforcing the positive – but it can be achieved 110 RESILIENT ZONE 106 106 105 Auckland Intnl Airport 105 102 104 101 103 100 102 101 98 SilverFernFarms 97 95 BRITTLE ZONE 90 Countdown 85 2015 2016 2017 2018
Equally, maintaining positive messages and experiences is important to nourish reputation, otherwise it can start to wilt 110 RESILIENT ZONE 105 100 95 BRITTLE ZONE 90 85 2015 2016 2017 2018
LET’S TAKE A LOOK AT NEW ZEALAND’S TOP 20 CORPORATES IN 2018
105 119 104 111 104 110 104 TOP 20 110 104 109 RANKED BY INDEX 103 108 A RepZ Index of 105 or above places 103 corporates in the top 10% globally 108 103 REPZ INDEX 106 103 105 103 105 103
The top 10 generally demonstrate strength across all reputation pillars, often with outstanding performance in one or more RESPONSIBILITY RESPONSIBILITY LEADERSHIP/ LEADERSHIP/ FAIRNESS FAIRNESS SUCCESS SUCCESS TRUST TRUST 119 108 116 126 119 105 122 103 105 108 106 118 104 115 111 108 108 104 109 108 106 116 105 111 110 104 114 103 104 106 111 109 104 111 110 108 99 106 107 105 112 102 107 111 109 109 99 102 106 105 105+ = within top 10% globally
126 115 111 Trust remains the T HE TOP 10 111 TRUST LEADERS most important IN NZ 2018: pillar driving 111 reputation 109 Amongst top 100 NZ 108 corporates by revenue 107 106 105
TRUST MEANS BEING RELIABLE AND DEPENDABLE… I have been a member of the AA for over 50 years... We have never had any issues with F&P AA Insurance has always shown to me as being a appliances that we have had over the years brand you can trust to deliver when required. and they would be my first choice if I was - AA Insurance replacing appliances. Also love that they are a New Zealand company. - Fisher & Paykel TVNZ have been around a long time. They entertain as well as inform. - TVNZ It’s my national carrier and thus trust my own to take care of me and my friends and family - Our current cars are Toyota. We have had a few good record and I know what to expect. over the years. Always reliable, economical, look - Air New Zealand great. They are just made to last. - Toyota And why do you think so well of [xxx], that you would speak highly of them?
119 118 Leaders in the RepZ 112 THE TOP 10 Success component SUCCESS tend to be big and 111 LEADERS IN NZ established, 2018: dominating or 111 leading their 109 categories and seen as meaningfully Amongst top 100 NZ 109 corporates by revenue different from the competition. 109 108 108
BEING WORLD CLASS AND ADDING VALUE THROUGH INNOVATION CONTRIBUTE TO A LEADERSHIP POSITION Great products that are at the leading edge of The main international port into New Zealand. technology, which are also intuitive to use. World class facilities with the capability of – Apple servicing large amounts of visitors and cargo. – Auckland International Airport Excellent performance in both domestic and export domains… Very innovative when it comes to adding value to milk products. – Fonterra In comparison to other international airports we are a class leader. – Auckland International Airport They set high standards and regularly achieve excellence. – Air New Zealand And why do you think so well of [xxx], that you would speak highly of them?
122 118 Brands known for a 116 strong value T HE TOP 10 proposition help 114 FA I R N E S S create a sense of LEADERS IN NZ 2018: Fairness about the 109 corporation. 108 Amongst top 100 NZ 108 corporates by revenue 108 107 106
AFFORDABILITY, VARIETY AND GOOD SERVICE UNDERPIN A SENSE OF FAIRNESS Definitely the most cost-effective way to shop Awesome variety of well priced products… and feed a family. easy returns and good after sales back-up. - Pak n Save - The Warehouse Good quality, reliable cars at a reasonable Good local service, simple to claim when price point. - Toyota required, and reasonable premiums. - AA Insurance Great selection at a fair price. - Briscoes And why do you think so well of [xxx], that you would speak highly of them?
116 107 Responsibility is not 106 T H E TO P 1 0 the main driver of 105 RESPONSIBILITY reputation, but LEADERS IN where it is 104 NZ 2018 conspicuously lacking it is a weakness 104 holding back the brand and Amongst top 100 NZ 104 corporates by revenue corporation. 104 104 103
GIVING BACK TO NZ ENVIRONMENTALLY, SOCIALLY AND ECONOMICALLY IS VALUED The programs they run are good and they do a [Meridian has a] commitment to sustainability. lot of good community work. - Meridian - TVNZ NZ owned, innovative, invest in employee training [Toyota has a] partnership with DoC for and [offer] the good in the hood programme. conservation in NZ. - Z Energy - Toyota Air New Zealand supports the community very well and has a strong international presence and reputation… promotes NZ well. - Air New Zealand And why do you think so well of [xxx], that you would speak highly of them?
Sustainability is increasingly influencing decision making behaviour across categories W H ET H ER B U YI N G I S I N F L U E N C E D B Y S U S TA I N A B I L I T Y +15 +14 +14 +11 +10 +9 +9 Insurance Cosmetics And Banks Airlines Fast Food Local And Food And Companies Personal Care Companies Regional Beverage Manufacturers Government Producers +9 +9 +7 +6 +3 +2 Food Retailers Energy / Power Oil / Petrol Companies Technology And Car Makers Home-care And Companies Communications Appliance Suppliers Manufacturers 2009/10 diff with 2016/17 Base: 2009/2010 (n=5045) | 2016/2017 (n=2000) How much influence do issues of sustainability have on who you choose to buy or deal with?
COMMITMENT TO LIVING A S U S TA I N A B L E L I F E S T Y L E We are also seeing 2017 10 60 30 significant increases in commitment to a sustainable NC -5 +5 lifestyle by New Zealanders 2016 10 65 25 -7 +6 +1 2015 17 59 24 LOW COMMITMENT MEDIUM COMMITMENT HIGH COMMITMENT Base: (n= 2000) Source: Where would you place yourself on our scale in terms of how committed you are to living a sustainable lifestyle? © COLMAR BRUNTON BETTER FUTURES REPORT 2017 EDITION
KEY TAKEOUTS
There is payback for being in the “Resilient Zone” Why is reputational 1 strength so important to strive for? In times of crisis – it can determine how quickly a company will bounce back Actively managing your reputation will reduce the possibility of the “contamination” effect
A re-brand /refresh If you need to change Brave commitment to a cause perceptions, 2 doing something exceptional may be required to Outstanding products/services/ get people to experiences reconsider their current view. A strong connection to the NZ mindset
GLOBALLY, THERE ARE A NUMBER OF BRANDS THAT HAVE BEEN DRIVING GREEN INITIATIVES AND ARE STILL DELIVERING GROWTH. Social licence Purpose before profits to operate has never been more important 3 Sugarcane bricks – people are enacting Full disclosure on palm oil choice through the products and services Carbon neutral operations they buy. Are NZ corporates doing enough? Source: “Does sustainability sell” , Anita Rao Kapur, Regional Director, Brand Guidance Systems, Kantar Millward Brown
4 5 6 Congratulations! TO THE TOP 7 8 9 PERFORMERS FOR 2018 10
FOR FURTHER I N F O R M AT I O N P L E A S E C O N TA C T: SARAH BOLGER SARAH.BOLGER@COLMARBRUNTON.CO.NZ Colmar Brunton, a Kantar Millward Brown Company Level 1, 46 Sale Street, Auckland 1010 PO Box 3622, Auckland 0740 Phone (09) 919 9200 www.colmarbrunton.co.nz
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