how brands work

How Brands Work SoHo House

August 25, 2009

$3.00 $1.00

2 | How Brands Work | SoHo House | August 25, 2009

High Quality Coffee Excellent Flavor Non-branded

High Quality Coffee Excellent Flavor

Branded

It is a key competitive asset

Higher level of future earnings

Higher security of future earnings

It influences customer’s choice

Value

Simply put, brands drive choice and create value

Role of Brand

Brand Strength

3 | How Brands Work | SoHo House | August 25, 2009

Interbrand is recognized as the global standard for valuing brands

Data: Interbrand Corp., JP Morgan Chase & Co.

25.59 10

29.25 9

31.05 8

31.26 7

34.05 6

35.94 5

53.09 4

59.01 3

59.03 2

66.67 1

2008 Brand value ($B)

Brand Rank

“Most Useful Rankings to CEOs” —PR Week

1. Fortune 500

2. Best Companies to Work for

3. Interbrand’s Best Global Brands

2008 Best Global Brands

4 | How Brands Work | SoHo House | August 25, 2009

Why do we care? Social media pays off. ENGAGEMENTdb study indicates engaging brands outperform their peers

Brands engaging communities through social media grew revenues by 18% annually, those that didn’t sunk 6%

3 ENGAGEMENTdb: The World’s Most Valuable Brands. Who’s most engaged? July 2009 4 “New Study Finds Correlation Between Social Media and Financial Success”, Sarah Perez, Read Write Web

5 | How Brands Work | SoHo House | August 25, 2009

Social Media has overtaken porn as the #1 activity on the Web

—Huffington Post

6 | How Brands Work | SoHo House | August 25, 2009

If Facebook were a country it would be the world’s 4th largest between the United States and Indonesia

—Facebook or Socialnomics, Erik Qualman

7 | How Brands Work | SoHo House | August 25, 2009

25% of search results for the Best Global Brands are links to user-generated content

—Nielsen BuzzMetrics SES Magazine June

8 | How Brands Work | SoHo House | August 25, 2009

Video initiations outnumber google searches on a daily basis

—ComScore

9 | How Brands Work | SoHo House | August 25, 2009

What happens in Vegas stays on YouTube, Flickr, Twitter, Facebook…

—Opinion, not a statistic

10 | How Brands Work | SoHo House | August 25, 2009

Today most people’s first, second, third and often only interaction with a brand is online. Consumers want more

control of the conversation.

Consumers don’t look at digital vs. analog….

Research Compare and refine

Reach final purchase decision

Identify Dealer or Source

MSRP: $22,569

12 | How Brands Work | SoHo House | August 25, 2009

…they see a seamless world

Research

Compare and refine

Reach final purchase decision

Identify Dealer or Source

MSRP: $22,569

13 | How Brands Work | SoHo House | August 25, 2009

Let go.

Invite consumers to play with you.

| How Brands Work | SoHo House | August 25, 2009 14

Consumers want intimacy. They want to share and create!

| How Brands Work | SoHo House | August 25, 2009 15

Coca-Cola Facebook Page Twitter.Zappos.com Nike ID

Building Brands in the Seamless World

| How Brands Work | SoHo House | August 25, 2009 16

17 | Unprecedented Times, New Opportunities | An Introduction to Brand Valuation

Have a purpose

1.

Know what value you offer to society, not just the economy

18 | How Brands Work | SoHo House | August 25, 2009

Talk about what you’re on, not what you

make

2.

Hint at what’s alpha, invite feedback on beta, and keep the conversation going…

20 | How Brands Work | SoHo House | August 25, 2009

21 | Unprecedented Times, New Opportunities | An Introduction to Brand Valuation

Embrace co-creation.

3.

What are you willing to give up

Product

Price

Place

Promotion

People

22 | How Brands Work | SoHo House | August 25, 2009

What the Internet has taught us

| How Brands Work | SoHo House | August 25, 2009 23

Andy Bateman

CEO, Interbrand

212.798.7770

andy.bateman@interbrand.com

http://www.interbrand.com/newyork

Thank you!

SoHo House

August 2009

How does your brand work?

Demand

+

Delivering compelling customer experiences across all touchpoints

Effectiveness Generating efficiencies/ business impact

Brand Value

=

Current and future earnings attributable to the brand

26 | How Brands Work | SoHo House | August 25, 2009