brand value creation in a world of accelerating change

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March 2016 Brand Value Creation in a World of Accelerating Change

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Page 1: Brand Value Creation in a World of Accelerating Change

March 2016

Brand Value Creation in a World of Accelerating Change

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BRANDZ™ is the world’s largest brand equity database

Covers over 50,000 of world’s biggest and key local brands

Major investment

Running since 1998

Commissioned by WPP

Over 2000 separate studies across 30 countries

1,000,000 consumers and B2B customers in 443 categories

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BRANDZ™ Top 100 Global Ranking published annually in the FT

Source: Millward Brown Vermeer (including data from BrandZ, Datamonitor, and Bloomberg)*The Brand Value of Coca-Cola includes Lites, Diets and Zero

ENDORSED BY

BRANDZ™ Top 10 Most Valuable Brands 2015

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212 Billiondevices

2008 2015 2020

7Billion

25Billion

!Connected Society

Data People

Process Devices

27 times more connected devices than people by 2020

Page 6: Brand Value Creation in a World of Accelerating Change

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New Touch Points

Total Brand Experience

New Solutions

Redefined Categories

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This is the Age of the Connected Consumer

1900 - 1960

1960 - 1990

1990 - 2010

2010 - PRESENT

Age of Manufacturing

Age of Distribution

Age of Information Technology

Age of the Connected Consumer

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There will be winners and losers

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Short-termism growing – CAPEX at lowest levels since 2010Goldman Sachs Research forecasts a 5% global capex decline in 2016 that will kick off the first multiyear downturn since the early 1990s

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New record levels of M&A – focused on cost cutting

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But, revenue growth drives outperformance

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And strong brands drive long-term outperformance

Businesses with strong brands command higher share prices

BrandZ™ Strong Brands Portfolio vs. S&P 500(Apr 2006 - Mar 2014)

Source: Proprietary BrandZ™ brand strength data; Bloomberg; Vermeer analysis

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Investors are becoming increasingly impatient - holding shares for < 1 year

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And demand accountability from executives

AIG settles with Activist Carl Icahn

U.S. banks targeted by activist investors on merger wave hopes

Activist Investors question United Airlines CEO’s Board

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Deluge of data points questions strategy every minute of every day

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Brands become a lens for short-term investment allocation

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We must become better portfolio managers than our shareholders

…. all impacting the return per $ spent on media

Market Opportunity

Brand opportunity

Media Effectiveness

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Consumer-Centricity As The Only Sustainable Advantage

The Insights2020 study is focused on developing the strategic framework, practical guidelines, case studies and engagement opportunities to help marketing, insights and analytics leaders

60 Markets

400 Industries & Sectors

337 Vision Interviews

10,495 Survey Respondents

Founding Partners

I2020 Advisory Board

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Consumer-centricity drives disproportionate revenue growth

Consumer-Centricity (%)

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Challenges

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Opportunities

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Challenges

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Key dimensions of consumer-centricity

INSIGHTS ENGINE

CONSUMER OBSESSIONTOTAL EXPERIENCE

CONSUMER CENTRIC GROWTH

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Ten drivers of consumer-centricity

8. Leading role of I&A9. Unlocking the power of data10. Critical capabilities

4. Embraced by all5. Leadership priority6. Collaboration7. Experimentation

1. Purpose-led2. Data-driven customization3. Touch point consistency

CONSUMER CENTRIC GROWTH

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Purpose-led

Overperformers on Revenue Growth

Underperformers on Revenue Growth

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Purpose-led

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Identify & embed a consistent “north star” and drive value growth

Purpose is the brand’s inspirational reason for being – “why the brand exists” and the impact it seeks to make in the world

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Building total brand experiences

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Bring the purpose to life through creating a consistent, total experience

B R E A C H O FP R I V A C Y

I N C O N S I S T E N C Y

DE

PT

HVa

lue

Prop

osit

ion

B R E A D T H# of Touch Points and Experiences

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Total experience inspires to innovate and stretch to new territories

“WE EXIST TO FUEL YOUR THIRST FOR LIFE”

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Drive a whole-brain culture of AND

71% of Over-performers find Whole-brain thinking a critical capability

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Accountable AND consumer-centric marketing is the last function to escape linearization

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Structure your business to put marketing at the heart and drive strategy

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Diagnose your degree of consumer-centricity, uncover growth potential

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Brands help us deliver in the short termAND in the long term

By: • driving profit growth• shaping new territories• creating agile organizations