Walking The Talk

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Walking the Talk: The Power of Brand Belief, Brand Behavior and CEO Embodiment A conversation at Stanford with Rob Schwartz CEO TBWA\CHIAT\DAY

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Walking the Talk: The Power of Brand Belief, Brand Behavior and CEO EmbodimentA conversation at Stanford with Rob SchwartzCEO TBWA\CHIAT\DAY

The Company We Keep

3TBWA\CHIAT\DAY 3 4 Stories

Framework for brand success

Case discussionToday

4TBWA\CHIAT\DAY 4 The power of a belief in business

The case for simplicity

A framework you can use to inspire and filter your future success

4. A few laughs and good anecdotesWhats In It For You?

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6TBWA\CHIAT\DAY Framework for Brand SuccessBrand BeliefCEO EmbodimentBrand BehaviorsBrand Success

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8TBWA\CHIAT\DAY AppleThink DifferentBeDifferentActDifferentBrand Success

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Brand Belief

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13TBWA\CHIAT\DAY AppleThink DifferentBeDifferentActDifferentBrand Success

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Brand Behaviors

14Were trying to get back to the basics - great products, great marketing, great distribution

We got rid of 70% of the stuff on the product roadmapSteve Jobs, 1997 internal meeting

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Brand Behaviors

15Fewer productsAugmented by powerful ecosystems

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Brand Behaviors

16Fewer productsAugmented by powerful ecosystems

Ecosystems includes packaging3.5 mm Apple unboxing videos on YouTube

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Brand Behaviors

17Fewer productsAugmented by powerful ecosystems

Ecosystems includes retail experience

18TBWA\CHIAT\DAY AppleThink DifferentBeDifferentActDifferentBrand Success

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19Every thing a brand does is an ad.~Lee ClowMarketing is about values. Its a complicated world, noisy world. So we have to be very clear about what we want them to remember about us.

Our customers want to know who is Apple, and what do they stand for. Where do we fit in this world. CEO Embodiment

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20The company does a lot of things for reasons besides profit motive. We want to leave the world better than we found it.CEOEmbodiment

http://www.forbes.com/sites/stevedenning/2014/03/07/why-tim-cook-doesnt-care-about-the-bloody-roi/#42c8b93040b3

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Brand Embodiment

http://www.forbes.com/sites/stevedenning/2014/03/07/why-tim-cook-doesnt-care-about-the-bloody-roi/#42c8b93040b3

22TBWA\CHIAT\DAY SuccessAct Different

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Brand Success23

317,000,000

355,000,000575,000,0001,000,000,000+

http://www.statisticbrain.com/apple-computer-company-statistics/

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50,000,000,000+17,500,000,00037,250,000,000

http://www.statisticbrain.com/apple-computer-company-statistics/

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Remember that one week where Google was more valuable than Apple?

http://fortune.com/2016/02/03/apple-facebook-amazon-google/

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27TBWA\CHIAT\DAY T-MobileThe Un-CarrierMagentaManListenDoShoutBrand Success

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TBWA\CHIAT\DAY 28Were still a wireless carrier. Were simply not going to act like one1.Listen to customers

2.Listen to front-line employees

3.Do what they sayBrand Belief

29TBWA\CHIAT\DAY Framework for Brand SuccessThe Un-CarrierMagentaManListenDoShoutBrand Success

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Brand Behaviors

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Brand Behaviors

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Brand Behaviors

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Trolling competitors

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Trolling competitorsSkywriting End Overages Now over Verizon headquarters

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Trolling competitorsVerizon Earnings Call game was so fun, so heres another one for the AT&T earnings call

https://newsroom.t-mobile.com/news/att-earnings-call-the-drinking-game.htm

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EmployeesReversed T-Mobiles policy of not allowing its store employees to have tattoos and piercings

https://www.washingtonpost.com/news/innovations/wp/2014/01/09/t-mobiles-john-legere-brilliantly-transforms-into-a-rebel-ceo/

37TBWA\CHIAT\DAY T-MobileThe Un-CarrierMagentaManListenDoShoutBrand Success

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Spent evenings his first few months on the job listening in on T-Mobiles customer service calls.

None of the technology mattered. There was a plethora of hatred for the industry and a never-ending list of things people wanted to change.Brand Embodiment

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CEO Debut at CES in VegasBrand Embodiment

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Brand Success

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T-Mobile ranked highest among the four major U.S. wireless providers

https://newsroom.t-mobile.com/news-and-blogs/tmo-highest-ranked-customer-service-jdp.htm

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Brand Success

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47TBWA\CHIAT\DAY T-MobileThe Un-CarrierMagentaManListenDoShoutBrand Success

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49TBWA\CHIAT\DAY VolkswagenThe Peoples CarInternalSquabblerRace for No. 1Brand Success?

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Brand Belief

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The peoples car.

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Brand Belief

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Unabashedly embracing what makes Volkswagen different

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Brand Belief

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Unabashedly embracing what makes Volkswagen different

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55TBWA\CHIAT\DAY VolkswagenThe Peoples CarInternalSquabblerRace for No. 1Brand Success?

TBWA\CHIAT\DAY 56Number one in global sales8% ProfitMost satisfied customersHappiest workersSource: CNBCVWs Objectives

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The lie: VWs pollute 40X more than the norm1 in 4 cars in Europe11 milion cars worldwide

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Brand Behaviors

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Brand Behaviors

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Brand Behaviors

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Volkswagen should use simple ads that hark back to those early days to rehabilitate its tarnished image.

http://www.bloomberg.com/news/articles/2015-10-05/evoking-think-small-urged-as-primary-vw-message-post-crisis

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TBWA\CHIAT\DAY 67Ok, so tons of activity right?

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http://www.bloomberg.com/news/articles/2015-10-05/evoking-think-small-urged-as-primary-vw-message-post-crisis

69TBWA\CHIAT\DAY VolkswagenThe Peoples CarInternalSquabblerRace for No. 1Brand Success?

TBWA\CHIAT\DAY 70CEO Resigned

US CEO Resigned

March 2016 US sales: -12%

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Brand Success

http://www.economist.com/news/briefing/21667918-systematic-fraud-worlds-biggest-carmaker-threatens-engulf-entire-industry-and

http://www.nytimes.com/2015/12/11/business/international/vw-emissions-scandal.htmlthe decision by employees to cheat on emissions tests was made more than a decade ago, after they realized they could not meet United States clean air standards legallyIt is particularly difficult to squeeze such systems into compact cars like the Golf or JettaBut the Golf, Jetta, and Beetle did not get the chemical systems until 2015

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TBWA\CHIAT\DAY 73SteveLegereElon MuskMary BarraDov Charney

WW__________D?

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75TBWA\CHIAT\DAY American ApparelFashion: Democratized.Localized.Le DisruptorFor the people.Made by the people.Brand Success?

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Brand Belief

Fashion: Democratized. Localized

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Brand Belief

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Brand Belief

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Largest clothing manufacturer in the USBrand Behaviors

https://en.wikipedia.org/wiki/Dov_Charney

80TBWA\CHIAT\DAY American ApparelFashion: Democratized.Localized.Le DisruptorFor the people.Made by the people.Brand Success?

TBWA\CHIAT\DAY 81Sweatshop freePays workers more than minimum wageHealthcareSubsidized mealsEnglish lessons

Brand Behaviors

83TBWA\CHIAT\DAY For the people.Made by the people

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Brand Behaviors

Ads featured non-traditional models and didn't airbrush

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Brand stood for social movements

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Brand stood for social movements

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She is the photographer. She shot these of herself. Feeling good in her jeans. Im proud of his ad. Shes the customer, shes wearing the product and shes the photographer. This is American Apparel. ~Dov Carney, CEO

89TBWA\CHIAT\DAY American ApparelFashion: Democratized.Localized.Le DisruptorFor the people.Made by the people.Brand Success?

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Dov CharneyStarted t-shirt company in dorm room in 1988Dropped out of Tufts to manage company full-timeRefused to manufacture outside U.S.Paid workers more than double minimum wage + healthcare + free international phone calls during work

Height of American Apparel2008: The Guardian named American Apparel Label of the Year2009: Finalist for Times 100 Most Influential PeopleBrand Embodiment

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LawsuitsSexual HarassmentRacial SlursSexting

CEOEmbodiment

http://www.huffingtonpost.com/entry/american-apparel-lawsuit-dov-charney-sexual-harassment_us_5617c6dce4b0082030a2067dhttp://www.nylon.com/articles/dov-charney-sexual-harassment-lawsuit

93TBWA\CHIAT\DAY Chapter 2 = Chapter 11

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Brand Behaviors

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Factory Issues

Moved It

Was supposed to cost $5 mmEnded up costing $20 mm

Couldnt make the $17 mm interest payment on debt that year

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Federal Immigration and Customs audited 1,800 workers immigration Fired 1,600 employees1/3 of LA-based workforce

Legalize LA campaign more self-serving than idealistic

http://www.huffingtonpost.com/2013/06/05/10-things-american-apparel-learned-from_n_3248529.html?slideshow=true#gallery/296554/1http://abcnews.go.com/Business/1600-american-apparel-workers-legal-status/story?id=8497761

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Employee mishandling at store-level$300k settlement for manager using racial slurs$60k settlement for firing an employee undergoing cancer treatment

http://www.huffingtonpost.com/2013/06/05/10-things-american-apparel-learned-from_n_3248529.html?slideshow=true#gallery/296554/1http://abcnews.go.com/Business/1600-american-apparel-workers-legal-status/story?id=8497761

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Brand Behaviors

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Store employee recruitmentJob applicants submitted full body photos

http://gawker.com/5323472/we-predict-more-lawsuits-in-dov-charneys-future

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AdvertisingBanned in BritainSexual harassment charges from modelsUnderage models

http://www.huffingtonpost.com/2012/12/05/american-apparel-sexy-ads-asa-child-models_n_2243360.html

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Brand Success

100TBWA\CHIAT\DAY American ApparelFashion: Democratized.Localized.Le DisruptorFor the people.Made by the people.Brand Success?

101TBWA\CHIAT\DAY 101 The power of a belief in business

The case for simplicity

A framework you can use to inspire and filter your future success

So

102TBWA\CHIAT\DAY Framework for Brand SuccessBrand BeliefCEO EmbodimentBrand BehaviorsBrand Success

103TBWA\CHIAT\DAY @Schwartzie14CEO, TBWA\Chiat\Day New York

Thank You.@TaraHaganDirector of Business Analytics, TBWA\Chiat\Day New York