how brands work
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Understanding how brands work in a brand new world.TRANSCRIPT
How Brands Work SoHo House
August 25, 2009
$3.00 $1.00
2 | How Brands Work | SoHo House | August 25, 2009
High Quality Coffee Excellent Flavor Non-branded
High Quality Coffee Excellent Flavor
Branded
It is a key competitive asset
Higher level of future earnings
Higher security of future earnings
It influences customer’s choice
Value
Simply put, brands drive choice and create value
Role of Brand
Brand Strength
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Interbrand is recognized as the global standard for valuing brands
Data: Interbrand Corp., JP Morgan Chase & Co.
25.59 10
29.25 9
31.05 8
31.26 7
34.05 6
35.94 5
53.09 4
59.01 3
59.03 2
66.67 1
2008 Brand value ($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
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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
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Social Media has overtaken porn as the #1 activity on the Web
—Huffington Post
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If Facebook were a country it would be the world’s 4th largest between the United States and Indonesia
—Facebook or Socialnomics, Erik Qualman
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25% of search results for the Best Global Brands are links to user-generated content
—Nielsen BuzzMetrics SES Magazine June
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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
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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.
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Consumers want intimacy. They want to share and create!
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Coca-Cola Facebook Page Twitter.Zappos.com Nike ID
Building Brands in the Seamless World
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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
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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…
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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
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What the Internet has taught us
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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
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