brand value creation in a world of accelerating change
TRANSCRIPT
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
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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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Thought leadership on building brand value
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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