Disconnection between people and brands

Today’s paradigm:

Most people would not care if

73% of brands disappeared

Less than

20% of brands notably improve

our quality of life

People’s relationships with brands vary strongly across markets

EUROPE (Fr, UK, Ger, It, Sp, Port, Net, Sweden,

Russia, Baltics, Turkey)

LATAM (Mex, Br, Arg,

Chile, Peru))

ASIA (China, India,

Indonesia, Japan)

Contribution % of brands improving notably people’s quality of life

USA

Attachment % of brands people would care about if they disappeared

7% 8%

5% 9%

42%

27% 39%

51% 27%

20%

Today’s consumer paradigm

Real human prosperity is continuing to fall

Changing social contracts,

! from: more, bigger, faster, cheaper, now

! to: smarter, fitter, wiser, tougher, closer Relationships are largely broken between brands and people

And people are empowered more than ever before

Brands face growing expectations

Large companies should be actively involved in solving social/ environmental problems

I frequently consider the impact of a brand on people’s well-being or the environment when I decide to buy

50%

% AGREE 2013

71%

WEST EUROPE

71%

42%

Companies and brands should play a role in improving our quality of life and well-being

71% 71%

Unmet expectations increase the disconnection between people and brands in western economies

Brands work hard at improving our quality of life and well-being

WEST EUROPE

USA LATAM ASIA EAST EUROPE

40% 29% 36% 46% 53% 31%

I generally trust brands

They communicate honestly about their commitments and promises

Brands can play a role in improving my quality of life and well-being

32% 21% 26% 36% 52% 28%

46% 38% 40% 40% 49% 61%

53% 49% 58% 65% 37% 40%

Opportunity for brands to make a real, tangible meaningful difference % AGREE 2013

MEANINGFUL MATTERS

To understand how relationships are changing

2013: 134,000 consumers, 23 countries, 700+ brands across 12 industries

10

Meaningful brands is a new metric of brand strength

It measures the quality of benefits brands bring to peoples lives

It lets us understand, visualize and influence the competitiveness of brands in 21st century terms, in:

Human terms, not just product terms  

Economic terms, not just sociological terms  

Financial terms, not just marketing terms

Meaningfulness pays in marketing terms

Brand Indicators

Highest MBI

Lowest MBI

Familiarity 96% 92%

Overall Impression 81% 46%

Purchasing intention (non-clients) 42% 15%

Repurchasing Intention (Clients) 94% 80%

Advocacy 74% 38%

Quality of Life Contribution 65% 17%

Attachment 66% 36%

FOOD & BEVERAGE INDUSTRY

GLOBAL BRANDS

Across all categories and markets, Meaningful brands get

! Stronger brand equity KPIs ! Greater preference & loyalty ! Stronger attachment

Meaningful brands outperform the market by 120%

HM MEANINGFUL BRANDS Index’13

STOXX 1800 FTSE4 Good Index x 120% x 175%

MB Index considers top 25 meaningful global brands (from companies operating in the stock market)

Pathway to growing brand value

Tom

orro

w

Toda

y

Make a difference Differentiation Cost-advantage

Functional

Aspirational

Meaningful

Understanding what matters: Meaningful Brand Index

Marketplace outputs Personal wellbeing Collective wellbeing

Our meaningful brand index goes beyond the product

Marketplace outputs

Good Quality

Products

Safe & Responsible

Products

Listens & Cares

Range Useful Products

Innovative Products Fair Prices Clearly

Labeled

Helps me feel good or happier

Exploring how brands tangibly improve people’s lives

Personal wellbeing

Emo$onal   Physical  

Intellectual  

Financial  

Organiza$onal  Natural  Social  

Helps me stay healthy, fitter

Helps me save money

Helps me connect with

others

Inspires me to make the world a better place

Makes my life easier

Ideas/ develop skills, be smarter

Along with the roles played related to society and the planet

Collective wellbeing

Work  Place   Community   Environment  

Economy  Gov.  &  Ethics  

Good place to work

Community development

Water management Recycles,

sustainable sourcing

Ethical, transparent, Sust leader

Benefits the economy / jobs

Brands that enhance the well-being of citizens, communities and societies are more meaningful

MEANINGFUL BRANDS Global 2013

Grateful & Passionate

Indifferent but fan seekers

Brand Agnostics

Address different challenges across countries/regions

Category matters…

+ Aspirational + Meaningful

Disfunctional commodities Functional commodities

Brands are not limited by their industry boundaries,

Laggards On the way Meaningful Oil & Energy 2013

WHAT MAKES BRANDS MEANINGFUL IN 2013 ?

Who are the most meaningful global brands in 2013?

RANK BRAND New MB INDEX ’13

1 GOOGLE 75,3

2 SAMSUNG 72,6

3 MICROSOFT 72,3

4 NESTLE 72,1

5 SONY 71,5

6 IKEA 71,4

6 DOVE 71,4

7 NIKE 71,3

7 WALMART 71,3

8 DANONE 71,2

9 PHILIPS 70,8

10 P&G 70,1

11 ADIDAS 69,8

11 MERCEDES 69,8

12 SPRITE 69,2

RANK BRAND New MB INDEX ’13

13 VOLKSWAGEN 68,8

13 HONDA 68,8

14 LEROY MERLIN 68,5

15 UNILEVER 68,1

16 L’OREAL 67,5

17 STARBUCKS 67,4

17 ACTIVIA 67,4

18 COCACOLA 67,3

19 TOYOTA 66,8

20 H&M 66,5

21 AUDI 66,3

22 APPLE 66,1

22 EVIAN 66,1

23 ZARA 65,8

24 HEINEKEN 65,5

25 LG 65,0

Half of top 10 most meaningful global brands are technological

TOP 25 GLOBAL MEANINGFUL BRANDS

Which brands are gaining momentum in 2013?

Rising Stars New brands amongst the top 20 meaningful global brands in 2013, with notable growth in performance vs. 2011

Flourishing Brands Brands that continue to be placed amongst the top 20

in 2013 and who are growing significantly in

meaningful terms vs. 2011

Brands to watch Brands losing

momentum in some key markets, showing signs

of possible future decline

Global Rising Stars in 2013

Rising Stars

1.

2.

3. 4.

Rank ‘2013

7 56 %

11 39%

11

6

MB Index growth %

% people it Improves

lives

% people who really care

+ 9,7%

n/a

n/a

n/a

51%

55%

48% 53 %

44% 49%

% SALES ** change (2012-’11)

+ 16 %

+ 7,3 %

+ 11,7 %

n/a

(*) Note: Fiscal year ended March’12. Results strongly negatively affected by the japanese earthquake and Thailand floods (**) Annual Reports 2012

Flourishing brands in 2013

Flourishing Brands

7 + 5,4% 58% 61%

2

5 + 2,2%

+ 2,7%

68% 68%

68% 58%

3 + 3,9% 71% 66%

- 9,6 %*

+ 5,9 %

+ 21,9 %

10 + 4% 64% 55%

+ 3,4 %

+ 3,2 %

5. 6. 7. 8. 9.

(*) Note: Fiscal year ended March’12. Results strongly negatively affected by the japanese earthquake and Thailand floods (**) Annual Reports 2012

Rank ‘2013

MB Index growth %

% people it Improves

lives

% people who really care

Brands to watch Losing momentum in some markets

15

45 % - 2 % 42%

Rank ‘2013

MB Index change %

% people it Improves lives

% people who really care

22

- 1,3 % 59% 51 %

8 +0,7% 51% 52 %

! Unilever is not as meaningful to people as it was in 2011 (i.e. India, Spain, Mexico).

! Losing ground in meaningful terms vs P&G in some markets (Spain, Mexico)

! Apple is losing momentum in France, Spain, and slightly in the USA. The economic context together with the missing S. Jobs may contribute

! Samsung is becoming stronger

! While remaining strong (especially in France, Spain, Mexico and Brazil), it is losing momentum in some markets such as USA, Germany

! Nestlé, more meaningful in Germany, and in emerging markets such as Russia, Indonesia

In 2013, people’s quality of life and personal well-being becomes increasingly relevant

PERSONAL wellbeing

COLLECTIVE wellbeing

OUTPUTS

% Change Importance (2013 vs 2011) Rank importance 2013

Personal dethrones Collective in 2013 to make a meaningful difference

-2

-4

-2

-2

2

0

5

2

-3

1 -6

-2

APAC LATAM USA EUROPE

What makes brands meaningful varies across markets

!  Globally, people demand brands to contribute meaningfully to their personal lives while enhancing the collective well-being.

!  In emerging markets, contributing to their communities matter relatively more than in the rest

!  India, China and Mexico to a degree, are increasingly expecting brands to enhance their personal wellbeing.

Note: 100 = global average

Relative importance amongst markets

Rel

ativ

e im

porta

nce

amon

gst m

arke

ts

What makes brands meaningful varies across industries

+ PERSONAL focus Ranking Importance + COLLECTIVE focus

FRANCE

RANK BRAND

1 DECATHLON

2 DANONE

3 CRISTALINE

4 SAMSUNG

5 GOOGLE

6 LU

7 EVIAN

8 LEROY MERLIN

9 NESTLE

10 PRESIDENT

RANK BRAND

11 EDF

12 SONY

13 AMAZON*

14 FNAC

15 LEBONCOIN*

16 VOLVIC

17 OASIS

18 ORANGINA

19 CASTORAMA

20 COEUR DE LION

* Marques étudiées dans le terrain de l’été 2012

TOP 20 2013

France 2013

Rising Stars Flourishing Brands

Brands to watch

NETHERLANDS

TOP 20 2013

RANK BRAND

1 HEMA

2 ALBERT HEIJN

3 GAMMA

4 HONIG

5 PHILIPS

6 DOUWE EGBERTS

7 JUMBO SUPERMARKTEN

8 KARWEI

9 HEINZ

10 KLM

RANK BRAND

11 RABOBANK

12 H&M

13 DANONE

14 WE

15 HUNKEMOLLER

16 NL SPOORWEGEN

17 TRANSAVIA

18 ING DIRECT

19 APPLE

20 KPN

GERMANY

36

RANK BRAND

1 DROGUERY MARKET

2 NIVEA

3 LEGO

4 VOLKSWAGEN

5 IKEA

6 BAHLSEN

7 DOVE

8 LINDT

9 OBI

10 PLAYMOBIL

RANK BRAND

11 CHIQUITA

12 DE BEUKELAER

13 NESTLE

14 DANONE

15 L’OREAL

16 DOUGLAS

17 MATTEL

18 SPARKASSE

19 SKODA

20 VOLKSBANKEN

TOP 20 2013

HOW TO GET THERE ?

Brands follow different routes to meaningfulness

Holistic PERSONAL Well-being

COLLECTIVE Well-being

RATIONAL path to meaningfulnes

EMOTIVE path to meaningfulnes

Rising stars have focused on personal well-being enhancement, choosing the emotive path to meaningfulness

39

Holistic

Top Rising stars Top Flourishing

PERSONAL Well-being

COLLECTIVE Well-being

RATIONAL path to meaningfulnes

EMOTIVE path to meaningfulnes

Meaningful Brands create Meaningful Connections

Rich, relevant, and shared interactions between brands and people which ignite

action, conversations, and drive business success.

Meaningful Connections

Peoples expectations

Performance gaps

Brand archetype role

Touchpoints, content, formats

Realizing wellbeing

1. Fuel data , human & ROI driven insights

2. Provide personal & collective value

3. Share a brand story

4. Connect experiences across all platforms

5. Ignite conversation & action

Meaningful archetypes that connect with people minds, hearts and values

The Truth-Teller The Truth-Teller gives people better information. Using better information, people can make better, more informed, more sophisticated consumption and investment choices, that will make a positive difference in their lives.

The Coach The Coach helps people achieve higher levels of performance in terms of human, physical, social, or organizational capabilities. It makes a difference by helping train, drill, and motivate them to achieve better human potential.

The Guardian The Guardian protects people from the many kinds of harm, whether physical, mental, emotional, or social. It offers people meaningfully better lives by safeguarding them against negative impacts and effects.

“coach” making every interaction count

Empowering & mobilizing people to achieve their full potential

A better “you” A better “us” A better “world”

Bring the love back