The top 10 Spanish brands most in demand in 2022 will be Mercadona, Correos, Repsol, Iberia, El Pozo, Mahou, Campofrío, Zara and Día. Other Spanish brands in the top 100 BrandBeta are, El Corte Inglés, Movistar, Estrella Damm, Nueva Pescanova , San Miguel, Iberdrola, Solán de Cabras, Alcampo, Telefónica, Mango, Seat, Vueling, Endesa, Air Europa, Cepsa (energy) and Mapfre.
Brand reputation is important, but it’s not the only thing businesses should be concerned about. Reputation explains only about 50% of brand relevance. To be successful, you also need to build familiarity, have the necessary products or services, available in the right places and at the right price.
Brand Finance has created a unique model capable of forecasting sales growth as a result of brand equity and brand awareness in the long term. The model, called BrandBeta, is calculated with the statistical regression analysis process where the relationship between the brand attributes, familiarity and relevance, as well as their impact on market share, is studied.
BrandBeta Spain 2021of Brand Finance, the leading independent intangibles valuation consultancy whose rankings comply with ISO 10668 and ISO 20671 for brand valuation and evaluation respectively and which contributes with its brand value database to create one of the Index indicators of Global Innovation (GII) of the UN, has made a new report that anticipates which are the brands that will increase their market share by 2022, has analyzed the Spanish market, being able to accurately forecast market share and changes in brand revenue year after year.
According to the 2021 report, the top 10 brands that Spaniards will prefer in 2022 will be Google, Mercadona, YouTube, Fairy, Correos, Nestlé, Amazon, Samsung, Nivea and Repsol. In terms of Spanish brands, in addition to Mercadona, Correos and Repsol that appear in the top 10, Iberia, El Pozo, Mahou, Campofrío, Zara, Día, El Corte Inglés, Movistar, Estrella Damm, Pescanova, San Miguel, Iberdrola, Solán will be highlighted de Cabras, Alcampo, Telefónica, Mango, Seat, Vueling, Endesa, Air Europa, Cepsa (energy) and Mapfre. Teresa de Lemus, Managing Director of Brand Finance Spain: “Our regression analysis gives us a statistical basis to understand not only how the brand behaves itself, but the correlation of its drivers, extremely relevant information when managing a brand” .
The BrandBeta model is highly predictive. In fact, our analysis shows that, when combined, familiarity and relevance explain more than 80% of the variations that occur in market share in the categories covered by the study.
This is the same for all countries and sectors of activity. When analyzing the impact of each result of familiarity and relevance, we see that familiarity accounts for about 65% of the variation in participation, while relevance is approximately 35%. BrandBeta is therefore a combination of the two measures in a 65:35 ratio. This combination creates a score of 10 that our further analysis shows can be used to forecast market share growth for any brand and in any industry.
The weight of brand attributes in relation to their impact on market share
In the minds of consumers and customers, the center of any Marketing strategy, they begin by highlighting some brands over others because they have heard about them and they begin to take them into consideration in their purchase decision process because they need it or because they have created the necessity, reasonably priced. In the race to gain market share it is necessary for brands not to forget the basics, sometimes tempted to develop their purpose and reputation, rather than their value offer.
The first step is to be aware of the brand, its knowledge, having heard of it. From knowledge , the result of visibility , one passes to familiarity , that is, knowing the brand – knowing which sector it belongs to, what products or services it offers, how it works, its values, … – All this is achieved through of a strategic visibility plan and relationship with key stakeholders.
The next step, considerationor being at the top of mind of specific audiences requires generating a connection with them. Connection that, together with the needs and other elements such as quality, price and promotion, materialize the purchase and manage to be the chosen brand. With this, the turnover and market share are increased. Therefore, that value offer must be put on the market making use of visibility. It is the first step to be able to talk about familiarity, consideration and preference, key indicators of the future performance of brands .
In this study, we want to draw attention to the consideration, since, according to our analysis, the consideration has a very close relationship with the increase in market share , that is, with the growth of sales and therefore of the business. The difficulty is turning consideration into acquisition. Moreover, in anticipating and being able to anticipate what could happen. Teresa de Lemus, Managing Director of Brand Finance Spain: “Knowing the weight of familiarity and relevance is key when assigning a budget and marketing actions”
The brands that will see their demand increase in Spain (2022)
Three Spanish companies, Mercadona, Correos and Repsol among the top 10 brands that we will consume the most in Spain in 2022.
Google is the product that we have consumed the most in Spain in 2020 and 2021 and it will also be the one that we consume the most in Spain in 2022.
If we only take into account Spanish brands, the top 10 will be Mercadona, Correos, Repsol, Iberia, Cepsa (oil and gas), El Pozo, Mahou, Campofrío, Zara and Día.
Mercadona , the Valencian supermarket chain that improves its results year after year and gains market share. The sales figure for 2019 was 25,500 MEUR and closed 2020 with a profit of 727 MEUR. Its president, who addresses the client as “the boss”, has highlighted the profitability achieved thanks to internet sales and considers the improvement of competitors, which he says are doing better every time, a threat.
Juan Roig highlights a future focused on the quality of the products, identifying that some should improve, being in general the products the ones that give the chain more visibility and recommendation on social media. For all this, it has a BrandBeta score of 9.5 out of 10, occupying the second position only surpassed by Google which reaches 9.6, becoming the Spanish brand with the highest score in the 2021 ranking.
The American company, which has announced the reopening of the Google news service in our country for 2022, leads the BrandBeta ranking in our country, still holding eighth place in the US ranking YouTube, with a 9.4 in BrandBeta, contributed 313MEUR to Spain’s GDP in 2020.
The American brand, which holds third place in the BrandBeta ranking of our country and 42nd in the BrandBeta ranking in the US, considers itself to be an opportunity to sponsor content for brands and is currently working on a voice interface to be able to overtake Netflix in television consumption.
Six brands with a score of 9.3 follow in the ranking: Fairy, Correos, Nestlé, Amazon, Samsung, Nivea . The British Fairy, which came to Spain in the 60s and became very popular with the advertisements for paellas from Villarriba and Villabajo, ousted Mistol, recently acquired by the Valencian ORO, who is working to relaunch it. For its part, Correos, a brand that became one of the top 30 most valuable brands in Spain in 2010, continues in the loop of repeated losses, the last of 264MEUR in 2020.
With the increase in e-commerce, all its European counterparts obtain benefits so Correos is in an optimal position to make its brand profitable using the BrandBeta model, targeting familiarity and relevance. The rest of the brands in this group – Nestlé, Samsung, Amazon and Nivea – are characterized by being foreign brands that Spanish consumers like. Amazon stands out as the brand of this group that is most recommended and the one that is perceived the most innovative, you will surely notice the impact on your familiarity and brand recommendation with the planned opening of physical stores.
Nivea is the one with the highest score for value for money and Nestlé , which lost 8 positions in the ranking of the most valuable brands in the world, has a wide margin for improvement in the recommendation since visibility and familiarity may suffer severe restrictions if Garzón’s plans on advertising unhealthy foods are continuing.
The fastest growing brands in Spain by sector
The top 5 brands that have seen the most growth in BrandBeta are Revolut with 25% growth, followed closely by Castle, Banco Ciaxa Geral, O2, Uber and Lenovo. Revolut, the London-based fintech that provides banking, investment, currency transfer and other financial services, this year managed to place the company’s valuation at $ 33 billion (€ 27.945 billion) thanks to the closing of a Round of financing for 800 million dollars (about 677.3 million euros).
With this, it becomes the best-valued fintech in the United Kingdom and one of the largest emerging companies in Europe and the world. The telecommunications sector, which continues to fight because large platforms such as Google and Netflix – now pending the result of the General Audiovisual Law proposal – also bear infrastructure expenses, has as growth leader BrandBeta O2 , the brand “low cost “from Telefónica merged with Virgin in the UK. O2, which has always operated as the low-cost face of Movistar, saw it lower prices in a unique strategy for the brand. In fourth place in growth is Uber , which in its distribution division, has lived in Spain the Law of the Ryders and seeks to benefit from the departure of Deliveroo from our country.
In 2021, it has launched its connection platform between users and taxi drivers in Valencia as an alternative to its own drivers. For their part, Chinese brands Lenovo and Alibaba are the growth leaders BrandBeta in fifth and sixth position. The owner of Aliexpress , which has communicated that Spain is the third market by turnover of the Chinese multinational, is an example of a brand that has known how to take advantage of the opportunity of excessive use of electronic commerce during the pandemic.
The Lenovo technology company , which is experiencing shipping delays in our country due to the shortage of chips, claims to have a high demand for PCs and smartphones even though presence at work has returned. In addition, it plans to raise prices in Spain to compensate for the third-year warranty requirements. With 0.3%, Iberdrola is the Spanish one that grows the most.
The most demanded brands by sector (2021-2022)
Eleven of the twenty sectors analyzed are led by a Spanish brand: airlines, banking, beer, distribution, hotels, insurance, logistics, oil and gas, telecommunications, energy, and wines and spirits. Mercadona and Correos, with a BrandBeta score of 9.5 and 9.3 respectively, are the most popular brands in the distribution and logistics sectors. With a score of 9.0, our most representative and international airline, Iberia , is a sector leader. Vueling and Air Europa follow in second and third place, both with a score of 7.7.
Air Nostrum, Volotea and Level complete the list of Spanish airlines included in the analysis. Spanish brands lead the banking sector. 18 of the 29 banking brands analyzed are Spanish, 62%. BBVA is the spearhead with the highest sector score of 7.5. The ranking of the top 100 BrandBeta in Spain is characterized by not having any brand from the banking sector. Although, within this sector, BBVA leads the BrandBeta ranking, who has the best forecast.
BBVA continues with the closure of branches, keeps its eyes on Turkey and seeks an alliance in the insurance sector without closing the door to the expected merger with Banc Sabadell. BBVA fell 59 positions in the ranking of the 500 most valuable brands in the world, 7 positions in the banking sector and maintains a 4 position in the ranking of the 100 most valued brands in Spain, highlighting the number 1 position of its CEO Onur Gen.
BBVA is followed in this ranking by CaixaBank , whose merger with Bankia materialized at the beginning of this year has culminated the technological merger, being the largest operation in the history of the Spanish financial sector, by business volume, by the amount of data and by the complexity of technological structures. At a time when “sun and beach” tourism in our country has more than 600 hotels for sale, 12 Spanish hotel brands are among those that will grow the most in market share, led by Meliá with 7.5 points.
NH Hoteles complete the top 5 sector with 7.4 points, Barceló 7.3 points, Paradores 6.3 points – whose agreement with another emblematic Spanish brand such as “Viajes El Corte Inglés” to sell experiences in their establishments, will undoubtedly increase their familiarity with their brand- and Iberostar with 6.1 points. In the insurance sector there are 6 Spanish brands.
This is another of the sectors led by a Spanish brand, our most international insurer Mapfre , with a BrandBeta score of 7.6, it is expected to be the insurance brand that will grow the most in the following period, followed by Sanitas with 6.4, Santalucía with 6.3 and Mutua Madrileña with 6.2. The pandemic has fueled the growth of health insurance. With 8.5 points, the Spanish Mahou is the one with the best growth forecast. The brewery has opted to open an online store as well as win audiences on YouTube.
Thanks to Josie’s “reward your palate” initiative, a very difficult visibility in the alcoholic beverages environment works. For its part, Heineken , exploits the “green” of its brand with the sustainable campaign in which it wants to “return the water from its beers.” Heineken follows with 8.5 and three Spanish: Estrella Damm (8.2), San Miguel (8.1) and Cruzcampo (8.0). Movistar is the leader in the telecommunications sector with 8.2 points. Repsol with 8.2 in the energy segment and 9.2 in the oil and gas segment.
Completing the list of sectors led by Spanish brands: The wine and spirits sector with Freixenet (7.5 points) and the automobile sector with Seat (7.7 points). Mutua Madrileña , acquired 8% of the capital of El Corte Inglés, and 50.01% of each of the two companies that carry out the insurance activity of El Corte Inglés (Life and Accident Insurance, and the Brokerage) to give it a greater boost to this business line considered strategic by ECI.
The leading brand in cava, Freixenet, is the one with the best forecasts for next year with the highest BrandBeta index in the sector, and to which the Segura Viudas brand belongs in fifth place. It is followed by Tio Pepe , the Gonzalez Byass fine brand, which, even falling in turnover due to the pandemic, has bought 2 wineries in Chile. Being a pioneer in the export of Jerez wines to the United Kingdom, it has the first “Sherry hotel” in the world, being based on the culture of Jerez wine and brandy.
The sectors with the greatest presence of Spanish brands are wines and spirits as well as banking with 18 Spanish brands, hotels with 11 brands, telecommunications 10 brands, distribution with 9 brands, textiles with 8, insurance with 7 brands and restaurants and airlines with 6 brands Spanish each. To a lesser extent, we are already present in the food and beer sectors with 4 brands, beverages and oil and gas with 3 brands and luxury (textile), automobiles and logistics with only one brand.
Other Spanish brands with a good forecast
These are not the only Spanish brands that stand out in BrandBeta in our country. Many other Spanish brands stand out within the top 10 BrandBeta of their sectors. This is the case of 100 Montaditos , which defends itself more than well by dividing the demand with giants such as Burger King, McDonalds, Dominos or KFC . Gallo, El Pozo or Campofrío that enter the top 10 for food, SEAT in second place in automotive, just 0.02 decimal places behind the leader Renault. Zara , with H&M on the heels of just 0.04 decimal places, Correos or Solán de Cabras in 4th position in the beverage sector, at the level of Coca-Cola, Fanta, Pepsi and Sprite.
Sectors where Spanish brands foresee greater growth
Within the sectors analyzed, the presence of Spanish brands is much higher in wines and spirits (100%) where there are only Spanish brands, energy with 88.9% of Spanish brands, banking (62%), telecommunications (58, 9%) and hotels with a 52.3% presence of Spanish brands. In other words, these are the sectors where Spanish brands foresee the greatest growth.
What value to give to Reputation when we want to increase market share?
The final choice for a brand occurs when (i) the brands have a good reputation, (ii) they have an offer at the right price, (iii) the offer is readily available, and (iv) their products meet their needs. Reputation is therefore a key concept when discussing and trying to anticipate the customer’s choice. Reputation is important, but it is not the only thing that brand managers should be concerned about. Reputation only explains about 50% of a brand’s relevance.
The increase in investment must be supported by a strong positioning and vice versa. BrandBeta is a combination of familiarity and reputation (understanding this as how much good a company or brand contributes for its stakeholders) precisely because both are necessary to drive changes in market share. The top 10 national and international brands that we Spaniards consider most reputable are Google, Mercedes, Fairy, Paypal, Armani, Porsche, NETFLIX, BMW, YouTube and Solán de Cabras.
If we only take into account the Spanish brands, the most reputable ones in their sector are Solán de Cabras (8.4 points), Paradores (8.2), Iberia (8.0), Mercadona (8.1), Correos ( 8.0), LOEWE (8.0), Repsol (7.8), Mahou (7.7), GOIKO (7.7), Adolfo Domínguez (7.6), Mutua Madrileña (7.4) and Carlos I (7.2).
Reputation must be closely monitored, but companies must be cautious and do not rely too much on reputation as their only savior. A strong, readily available product at the right price can often outweigh a temporarily low reputation. Therefore, it is imperative for branding and marketing teams to review their activities more broadly and identify how they deliver value to customers and other stakeholders and how managing those levers, together, can bring the most value to their business. brand and its businesses.