For a brand to be considered successful, it must have a strong recall with the general public. A consumer must associate the brand with the product or service it is offering.
As part of its annual ranking of the 1,000 most recognizable brands in the Asia-Pacific region in 2016, media and marketing consulting firm Campaign Asia surveyed consumers in the Philippines to find out what the top 100 brands in the country are. The firm categorized brands into 14 industries and asked 400 respondents what the best and second best brand was for each category.
Not surprisingly, the resulting list was dominated by multinational companies. In fact, the top 10 names consisted exclusively of foreign brands such as Samsung, Nestlé and Apple.
Only 20 of the top 100 brands in the country belonged to local companies, led by the Ayala-owned Bank of the Philippine Islands (BPI) which ranked at number 17, the highest in the financial services category. Right behind BPI were pharmacy retail chain Mercury Drug (No. 23) and food manufacturer Magnolia (No. 25).
The few Philippine companies behind the most recognized local brands were more than amply rewarded with exceptional financial performance. On average, both the revenue and net income of each of the 20 companies were six times that of the typical company included in the latest edition of the BusinessWorld Top 1000 Corporations in the Philippines.
While the average revenue of the top 1,000 companies was only Php9.5 billion in 2015, the average revenue of the companies behind the top 20 local brands was Php61.4 billion. Similarly, the former's average net income was only Php1.1 billion while the latter's average earnings was Php6.9 billion.
Indeed, branding matters to the bottom line.
Lorenzo Kyle Subido is a staff writer of Entrepreneur PH