How NSE unlocks brand equity

Years ago, people associated brands with the look and feel of the organizations, its logo, tagline and visual recognition. The association of branding and its impact to the organisations bottom line was a tough conversation for many leaders. Fast forward to 2020 and the shift to leverage brand exposure for the financial benefit of the organisation is at the top of many CEO’s strategic agendas.

So what changed? It became very clear to organisations that to gain a competitive advantage, one not only had to have a superior product or service but also ensure that the target audience knew about it and were persuaded to be loyal to the brand. This reminds me of the popular saying by Steuart Henderson Britt that, “Doing business without advertising is like winking at a girl in the dark. You know what you are doing but nobody else does.”

Brand Finance, a global leader in brand valuation and strategy, published the world’s 500 most valued brands based on brand value. The top five global brands to date are Amazon, Google, Apple, Microsoft and Samsung, according to their report. It is clear that tech companies are taking the lead, but these five companies also have another thing in common. They are all publicly listed companies in their various countries of origin.

Listing on the Securities Exchange unlocks an organisations’ brand equity much faster and easier than having all year round marketing and publicity campaigns, which frankly speaking, very few companies can afford.

Brand equity is simply the perception and feeling that customers have of a brand. These then translate to the financial worth (brand value) of the brand.

Companies listed on the Securities Exchange are highly noticeable and more identifiable than those privately held. Listed companies are able to entice new customers and clients and attract more media attention and coverage. That can be hard for the other companies, which have to continually pay for advertisements. Securities exchanges provide companies with unlimited exposure to local, regional and global investors, media and the general public.

The same principle applies in our local Kenyan context. Companies listed on the Nairobi Securities Exchange garner more visibility and credibility among institutions and the investing public due to compliance with various regulatory standards and transparency while conducting their business operations.

The boards and management of listed companies have high levels of accountability towards their shareholders. Additionally, listed companies need to ensure timely compliance by providing regular information and disclosures to their shareholders. These measures boost the brand credibility and brand value of the organisation.

Exchanges publish data on the performance of listed companies on a daily basis, with more detailed analysis published quarterly, bi-annually and annually. Financial analysts, researchers and business news outlets also regularly report on the performance of listed entities to investors and the general public. All this is free publicity that the company gets by virtue of being a publicly quoted company.

Marketing, public relations and publicity of an organisation is paramount for the success of the organisation.

Having a holistic marketing strategy coupled with the exposure of being a listed company is what sets apart the leading brands from everybody else.