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Johnson’s tops Cosmetics and Personal Care Brand Ranking

Johnson’s tops Cosmetics and Personal Care 
Brand Ranking

Johnson’s tops the list with a brand value of US$16.8 billion. Johnson’s high brand value stems from both its revenues and its high brand strength, which indicates the relative contribution of a brand compared to other business assets. Johnson’s has a brand strength score of 89, second only to Garnier. Part of the reason for this its associations with maternity. An exceptionally high level of brand trust is required to succeed when marketing products for infants. Johnson’s has earnt this over decades with effective, safe and reliable products and advertising that positions the brand in this way.

Second-placed Gillette was one of the fastest growing brands in the sector this year. Its brand grew by 68% in value last year to reach $12 billion. The Procter & Gamble-owned brand continued to deliver razor-sharp marketing campaigns, including its “Perfect isn’t pretty” campaign in the lead up to the Olympics. Beyond strengthening brand awareness and consideration through association with such a high profile event, the campaign is designed to align the dedication and precision of Olympic athletes with that of Gillette’s product developers.

L'Oréal Paris has lost ground this year, falling behind Gillette to 3rd. Brand value is down 11% in value to US$8.7 billion. Whilst the brand has rolled out powerful campaigns in 2016, such as the #YoursTruly campaign which featured 23 ‘beauty influencers’ from a diverse range of backgrounds and ethnicities, these have not translated into immediate sales as well as would have been hoped. Though demand in the US remained relatively strong, conditions in L’Oréal’s core market of western Europe and in particular its home market of France were more challenging.

Amongst the brand owners, P&G comes out on top, with 8 brands in the sector’s top 50, with a combined brand value of US$34.1 billion. P&G’s brands are growing very strongly; in addition to Gillette’s strong growth, Pantene, Olay and SK-II are growing by 72%, 74% and 80% respectively. Recent divestments have enabled P&G to focus more on its core capabilities and best-selling brands. A US$10 billion cost saving is being pursued by CEO David Taylor, which saw earnings beat analyst expectations in 2016.

Head & Shoulders is perhaps P&G’s biggest success story this year. The anti-dandruff shampoo is the fastest growing cosmetics and personal care brand this year, more than doubling brand value to US$5.4 billion. Recent campaigns include “Scalp Brave.” In a break with ads that tended to rely solely on Head & Shoulders’ functional attributes, this campaign takes a quirkier approach. The faces of celebrities such as Sofia Vergara and footballer Giovani Dos Santos are shaved into people’s hair, to illustrate the confidence to do bold, fun things that having a flake-free scalp allows. P&G has demonstrated that well-executed creativity can help boost brand value.

Coty has acquired many of the brands that P&G has divested itself of. It is possible that the sudden influx of 43 brands has proven too much of a challenge for Coty, leading to a lack of focus. Since the acquisition, Coty’s revenue of $2.3 billion for the three months leading up to December 2016 fell below expectations and it reported a 7% drop in revenues for its fiscal second quarter.  All four of Coty’s brands in the table have lost brand value. The Coty brand itself is down 10%, Rimmel 5% and Cover Girl 21%. Clairol is the fastest falling brand this year; its brand value is down 26% to US$ 859 million.


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