NEW YORK: A number of popular US consumer brands, such as La-Z-Boy, Chiquita Brands, Ruby Tuesday, and KB Homes, are undervalued, according to a study by brand strategy and communications firm CoreBrand.
The firm noted that La-Z-Boy has a “strong corporate brand that is recognizable to consumers and synonymous to its product line.” However, it added that the company is “confined with an image that makes it difficult to expand into other product markets.” Therefore, it should diversify its product line, according to CoreBrand.
Meanwhile, the firm also suggested Chiquita Brands should broaden its brand identity to include other products. It also said Ruby Tuesday should create an ad campaign and “be committed to their brand in a convincing manner.”
CoreBrand measures brand-image ratings by measuring a brand's familiarity and favorability on a scale of one to 100. These ratings are determined in part through annual surveys of senior business decision-makers.
“We're always looking at it from a fresh perspective, and we just noticed that these brands have huge power but were of very low value, so it just jumped out at us,” said Corebrand CEO James Gregory. He added that the firm defined “low value” as having low dollar value as a percentage of market cap. The findings are a part of the firm's “Corporate Branding Index” study it has conducted for the past two decades.
La-Z-Boy, Chiquita, and Ruby Tuesday did not return inquiries seeking comment.
Gregory added that even when some companies are successful with strong branding, other factors can contribute to bring down the company's overall brand value. These factors include lack of diversification, being part of an unfavorable industry, and weak financials.
CoreBrand based its findings on quantitative research obtained by interviewing business decision-makers. The study examined more than 1,000 companies in 54 countries.
“We really understand how value is created, so we try to share that information,” said Gregory. “We're reporting it more, sharing the information with people, and letting the world know that there is a lot of information out there that they may be interested in, including valuable data that can provide insight into how branding creates value.”