On September 26th, Nikkei Research Inc. released the 2023 edition of its Brand Strategy Survey, which measures and analyzes the brand strength of 600 major companies in Japan.
In this year's overall ranking, Yamato Transport has achieved the top position after 7 years, induced by large support from business professionals. With the reclassification of COVID-19 in Japan, restrictions on the movement of people and goods were relaxed, and companies within the transport and railway sectors have gained much support. Their efforts to address the challenges of the “2024 problem” in logistics (concerns over transport capacity shortage triggered by the adoption of a 960 work-hour limit regulation on truck drivers) are also receiving significant attention.
Among other top companies, Sony Group, Apple Japan, Google, and Microsoft Japan have shown solid strength. Companies thriving to establish new business domains were seen among the top list: Sony Group focusing on gaming to expand its contents, Apple Japan throwing out the Apple Vision Pro and its innovative approach in fintech, Google and Microsoft Japan leveraging cutting-edge technology such as generative AI.
Food companies are also ranked high, such as Ajinomoto and Meiji, that provide easily accessible and delicious products. People's lifestyles have diversified and the preference for "time-saving" is also seen in food products. Companies that receive support are those who are recognized for offering products that can be prepared quickly without hassle.
Starting this year, a new indicator, "social goodness of businesses," has been adopted to measure corporate brand strength. This indicator questions whether "the company, product, or service contributes to making a better society for our future" and reflects the expectations of each company's purpose. For companies today, showing their commitment to target both their business growth and the community’s growth, with considering across broad stakeholders, is a big challenge. Responding to the demands in this sustainability- era, this indicator will help corporate branding activities as a KPI.
Methodology
The Brand Strategy Survey is an annual online survey that evaluates the corporate brand power by two segments; consumers (BtoC) and business professionals (BtoB). Starting from 2003, this year marks the 21st time, conducted from June to July.
The Brand Perception Quotient (PQ), resembling the brand strength, is calculated based on five elements: “Empathy (“Attractiveness” for BtoB),” “Necessity (“Usefulness in Business” for BtoB),” “Premium (Premium over Brand and Price),” “Uniqueness,” and “Willingness to Recommend.
The overall ranking is based on the Overall PQ calculated by integrating the Brand PQ scores of both BtoC and BtoB. Various rankings are introduced in articles across the Nikkei media.
Highlights
- Yamato Transport Regains as Top After 7 Years.
Yamato Transport has returned as No.1 in the Overall PQ ranking after 7 years. Yamato Transport, which has the top share in home deliveries, has a great number of daily interactions with consumers, gaining a strong presence over them even in the get-back to in-person trend. It seems business professionals also support Yamato Transport's policy of focusing its investment on e-commerce. - Sony Group at 2nd, same as last year, with anticipation over their expansion of various content businesses as semiconductor shortages resolve.
- TOTO in 5th, gaining support from consumers and business professionals.
TOTO, previously ranked 12th, was listed as the 5th in the overall ranking. Their beautifully designed toilets and new features based on the voices of consumers are receiving attention. With the increase of remote working, there seems to be a growing demand for good design as an interior for "my personal space." - Kao jumps to 11th from 21st in the overall ranking with the push of the "mask-free" trend.
Kao, which improved its ranking from last year, increased its sales of cosmetics under the "mask-free" trend, but also successfully grasped consumer needs by increasing production of sunscreen mist sprays. The strong performance of disposable refreshing towels may also had an impact.
About the Brand Strategy Survey
- The survey measures the overall strength of a brand, the level of brand penetration, and the outcomes of corporate activities, and visualizes the structure of brand value by grasping the interrelationships among them.
- In addition to the above, we measure “sympathy to the corporate’s policies and initiatives” which is important for evaluating the penetration and the empathic state toward the purpose of a company. Also, “price premium,” is measured for understanding the desire to purchase at a higher price than other companies. Furthermore, a variety of items are measured relating to today’s corporate issues.
- By comparing the brand strength with competitors, you get to know your company's overall brand position.
- By tracking the longitudinal changes, you will see the trajectory of the brand penetration and value transition.
- Analyzing a variety of evaluation items from various perspectives, leads to the understanding of who — what segments — match your brand.
- Visualization in easy-to-understand charts, and reports of performance compared by competitors and segments.
- Analysis combined with financial data (sales and operating revenue, operating income, overseas sales and export sales, advertising expenses, and market capitalization, as of the end of June of each year) are available for some companies.
- Various methods of analysis are available, including Bayesian networks and value chain maps.
