Take Your Brand From Good To Great

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Transcript of Take Your Brand From Good To Great

  • 1. March 7th 2013 Nigel Hollis1

2. 90% of the worldsLEADING BRANDS2 3. Agenda1. Measuring Financial Value2. Creating Financial Value3. Measuring the drivers of Financial Value3 4. How much is this brand worth? US$1.6 Billion 5. Strong brands outperform their peers BrandZ Strong Brands Portfolio vs. S&P 500 (Apr 2006 - Dec 2012) 60%51.1% 40% 20%15.3%0%Apr 06 Aug 06 Dec 06 Apr 07 Aug 07 Dec 07 Apr 08 Aug 08 Dec 08 Apr 09 Aug 09 Dec 09 Apr 10 Aug 10 Dec 10 Apr 11 Aug 11 Dec 11 Apr 12 Aug 12 Dec 12 -20%BrandZ PortfolioS&P 500 -40%Source: Bloomberg; MB Optimor London Analysis -60% 6. Valuing a brand is more than just guessworkBRANDED EARNINGS$ What proportion of a companys earnings can be attributed to abrand?BRAND CONTRIBUTION %How much of these earnings are due to the brands close bondwith its customers?BRAND MULTIPLE MWhat is the growth potential of the brand-driven earnings? 7. Guesswork!7 8. What is the worlds most valuable brand worth? $182bn$77bn 9. What is the worlds most valuable brand? 10. Which brand is the more valuable?$74bn$95bn 11. Which is worth more? $34bn $17bn 12. Which is the world most valuable financial brand? $42bn $38bn 13. Which declined more between 2011 and 2012? -17%-18% 14. Which increased most between 2011 and 2012?+61%+74% 15. Which brand is worth more? 11.5bn 9.3bn 16. Coke is the worlds largest cpg brand.What comes next? $15bn $18bn 17. Global Top 10 in 2012 1.$183bn 6.$74bn 2.$116bn 7.$74bn 3.$108bn 8.$69bn 4.$95bn9.$49bn 5.$77bn10. $47bn 18. The importance of brand equity differs by category 19. Agenda 1. Measuring Financial Value 2. Creating Financial value 3. Measuring the drivers of Financial Value19 20. Brands can create value in 4 ways Creating demand for theCommanding a brand or service nowpremium nowFinancialValue Growth Extending to new uses, Creating the potential to grow countries and categories future market share 21. BrandWhatWhat the consumersbrand does experience andand saysremember21 22. Meaningful22 23. 23 Different 24. Salient24 25. Strong brands offer a meaningfully different experiencePurpose Resonance MeaningfullyDifferent ExperienceDeliveryDifference25 26. Match the driver to the carMukesh Ambani Ingvar KampradPrince Alwaleed bin TalalAlsaud Worth: $30bn Worth: $23bnWorth: $20bn Rolls Royce PhantomMercedes Maybach 62 Volvo 240 GL26 27. IKEA: largest retailer of furniture in the world 28. IKEAs purpose is to create a better life forpeoplebut how?By removing squeezing out every cent from the design, manufacturing and transport of its products. Prices fell by 2.6 per cent in 2011. 29. Delivery: any brand needs to mind the gapHR Manager complains that work experience doesnot match brand image:"Well we have two choices. Either you makethe bank a better place to work, or I cancreate a worse brand. Chris ClarkHead of marketing, planning, and business strategy at HSBC 30. Delivery: how well the brands experience lives up to its purposeThe more positive and distinctive sensoryimpressions come to mind, the more loyalpeople are to the brand. The girl does not only tell it has good fragrance,NUMBER OF POSITIVE SENSES RECALLED but also teaches 70% me how to smell it 60% properly should50% not directly smell from the bottle, 40% but wave the 30% hands back & 20% forth to air the fragrance out, as10% to smell the 0% perfume 0 to 12 to 3 4 to 5 Source: BRANDsense survey conducted in US, UK and Japan30 31. Resonance: people appreciate the brand for what it does and how it makes them feelMade bycompanies youcan trustAre leading thewayDove NaturaOffer somethingdifferent0 50 10031 32. Difference: provides a reason to choose and justifies a price premium Average Potential for Average potential forbrand to grow Brands that brand to grow ARE different 1.3% 15.9% Brands that ARENT different Average potential forbrand to grow -7.2%32 33. The five facets of effective brand amplification33 34. Strong brands amplify their meaningful differencedrive financial value growth Findability CredibilityVitality Affordability Extendability 35. Findability: ensure your brand is everywhere people might want to find itFindability Availability Visibility35 36. Tropicanas new packaging caused revenues todecline by $30 million in 2 months 37. Credibility: enhance meaningful differentiation through innovation and association37 38. Vitality: ensure your brand is seen as contemporary, salient, talked about and fresh in look and feel.38 39. Break the mould, create something compelling & newVideo title: Coca-Cola Security Camerasyoutube video link: http://www.youtube.com/watch?v=auNSrt-QOhw 40. Challenging preconceptions and creating a sense of momentum helped Audi boost sales Six major car launches in 2008115 But Audi remains considered but 110 not chosen105 In 2010 the Shock the Sheep 100 campaign challenged the status Desire 95 quoPrice 90 After shifting perceptions Audi has enjoyed strong sales growth and 85 improved margins80 2008 2009 2010 2011 201240 41. Challenging preconceptions 42. Affordability: justifying your price point while making it accessible to more people 80 60 Relevance 40 200Bought Last2007 2008 2009 201042 43. Extendability: leveraging a strong brand into new categories and countries Dove grew from global sales of about 300M in 1990 tobecoming Unilevers first 3B brand in 2011. 1955 1965 1991199519971998 1999 200220072010 Bar soap 1 Globalexpansion:launched to 55 countriesbetween 1991-Anti-aging 1994. range Facial Deodorant cleansersDish soap Hair care Body wash Body lotionMens care products43 44. How successful brands drive financial value growth Define AmplifyGrow Purpose Resonance FindabilityMeaningfulCredibilityFinancialDifference VitalityValueAffordability Growth Extendibility DeliveryDifference44 45. Agenda 1. Measuring Financial Value 2. Creating Financial value 3. Measuring the drivers of Financial Value45 46. BrandDynamics has evolved significantly over time19922012199619982003 20052009Launch of Launch of Bonding Factor LaunchDevelopment ofNew BrandDynamics BRANDZ analysis of D&AVoltage2.0 model20032010 Launch of theDevelopmentPaw Print analysisof the Brand Strength Score2010Development of theValue Driver workshops46 47. People are more predisposed brands they findmeaningful, different and salient Meaningful BrandAssociationsDifferent $Brand In-marketPredisposition FacilitatorsSalientPredisposed customers will be more likely to choose your brand, pay apremium for it and the brand will be better poised to grow market share 47 48. Top 100 Most Average Brand Valuable Brands Power Index 100 Power Index 171 SalientMeaningful MeaningfulSalient100100 Power 116127 Power6 11Different 124 Different 100 49. Handsets France 2012 Power Index 199Power Index 120Meaningful 95 MeaningfulSalientSalient 133Power120 Power130 22 13DifferentDifferent240 59 50. South Africa 2012 Power Index 446Meaningful183SalientPower 212 32 Different 162 51. Three new measures of brand equity A single, accurate measure of demand for the brandPOWER The relative price point that the brands equity can support PREMIUM The likelihood that the brand will grow value POTENTIAL market share51 52. Stronger brands produce better returns Average operating profit reported as a percent of revenues16% 15% 14%13%12%11% High Potential10% Low Potential Low Power High Power52 Source: BrandZ and annual company reports for 49 companies 53. How successful brands drive financial value growth Define AmplifyGrow Purpose Resonance FindabilityMeaningful Credibility FinancialVitality ValueDifference AffordabilityGrowth Extendability DeliveryDifference53 54. Conclusions Brands are the most valuable asset that many companies own they creating lasting financial value Brands exist in the mind you can only assess their value and potential if you know what people think Strong brands provide a meaningfully different experience to people marketers must not rest until they build this Once you have this then has to be amplified through all available channels Vitality is a key battleground. Communications can frame your brand, build salience and talkability54