Weber Shandwick has released the results of “The Company Behind the Brand: In Reputation We Trust,” a study finding that 70 percent of consumers won’t buy into a brand if they don’t like the parent company. Among senior execs, 87 percent said that having a strong brand for the parent company is as important as having a strong product brand.
A couple of stats that jumped out at us as well: 56 percent of respondents said they do research on companies that make products they buy; and 56 percent said they “hesitate” to purchase a product if they can’t tell which company makes it.
Lesson: invest more time and energy in branding the parent company like making website improvements that go into greater detail, clear labeling (more than two-thirds of respondents said they’re checking labels), and use promotional campaigns as an opportunity to talk about the parent company and the individual brands.
Last week, Interbrand released its list of “Best Global Brands” with Coca-Cola topping the list for the 12th straight year. Forbes reminds us, “…[R]egardless of the factors at play, ultimately the value of a brand is tied to its capacity to increase profits for its owner.”
KRC Research, IPG’s market research firm, polled 1,375 consumers and 575 senior execs at companies with annual revenue of $500 million or more in October and November 2011. Research was conducted online in the U.S., U.K., China, and Brazil.