Brands, Innovation and Growth: A Pims Study of Brand Value

New research on the behaviour and performance of over 200 fast-moving consumer businesses selling through multiple outlets show that: (i) the "economic case" for branding can be demonstrated — there is evidence that brands can help producers bring new products and services to market, and that they help consumers exercise effective choice of "value for money"; (ii) branded producers are more innovative than their non-branded counterparts; (iii) branded producers typically create significantly more value added from investment in innovation; and (iv) non-price competition is particularly strong in the branded sector, with the key drivers of growth for individual businesses being improving value position, innovation advantage and reputation. Branded product markets show these "rules" for business growth much more clearly than businesses in the economy as a whole. In branded businesses, we can identify the impact of investment in intangibles — communication and technology development — through the strengthening of capabilities, the building of intangible business assets in the form of reputation, innovative edge and value advantage. This comprises a model for innovation which is both statistically valid and endorsed by practising managers.