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WOLFF OLINS ON GROWTH

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Page 1: WOLFF OLINS ON GROWTH

WOLFF OLINSONGROWTH

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WE ARE AT THETHRESHOLD OFUNBELIEVABLYEXCITING TIMES

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THE CONDITIONS FORGROWTH HAVE CHANGED

EVERYONE IS TALKING ABOUTOPTIMIZING FOR A LOW-GROWTHFUTURE

BUT LASER-LIKE FOCUS ONOPTIMIZATION HAS ITS LIMITS,AND LEADS TO PARITY

THE OPPORTUNITY TODAY IS TOUSE YOUR BRAND TO DRIVEGROWTH, TO INSPIRE INNOVATIONAND TO CAPTURE NEW MARKETS

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THE OLD WAYSAREN�’T WORKING

© Wolff Olins

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ADVERTISING ISN�’T WORKING

IN A HYPER-TRANSPARENT WORLD ENABLED BY DIGITAL SOCIALTECHNOLOGIES, CONSUMERS DON�’T TRUST THE PROMISES BEING MADEBY CORPORATIONS, RELYING INSTEAD ON THE VIEWS, NOT JUST OF THEIRFRIENDS, BUT OFTEN OF COMPLETE STRANGERS.

THIS NEW REALITY OF TRANSPARENCY COMBINED WITH UNPRECEDENTEDFRAGMENTATION OF MEDIA CHALLENGES ANYONE LOOKING FORADVERTISING TO DRIVE GROWTH.

© Wolff Olins

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PRODUCT DEVELOPMENT ISN�’T WORKING

THE RECORD FOR NEW PRODUCT AND SERVICE INTRODUCTION STILL SITSSTUBBORNLY AT A 75% FAILURE RATE, A NUMBER THAT HAS STAYEDCONSISTENT SINCE THE 1950S, EVEN AS CORPORATIONS AROUND THEWORLD HAVE INVESTED INCREASING AMOUNTS OF THEIR REVENUES INTOINNOVATION INITIATIVES.

THIS OLD REALITY OF INNOVATION METHODOLOGIES FAILING TO DELIVERMEANINGFUL RESULTS CHALLENGES ANYONE LOOKING FOR INNOVATIONTO DRIVE GROWTH.

© Wolff Olins

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LEGACY ISN�’T WORKING

OVER-RELIANCE ON PAST ACHIEVEMENTS INHERENTLY INTRODUCES RISKTO BRAND SUSTAINABILITY IN A WORLD SHAPED BY IMMEDIATEEXPECTATIONS AND CONTINUAL INNOVATION.

YOUR BRAND IS WHAT YOUR CUSTOMERS SAY IT IS TODAY. PERIOD.

© Wolff Olins

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SOURCES1. Razorfish study, 20092. Yankelovich + CNN/USA Today/Gallup Poll3. Bango Analytics

CONSUMERS HAVECHANGED

MORE PROACTIVE97% OF INTERNET USERS SEARCHFOR A BRAND ONLINE AND SAY THEEXPERIENCE INFLUENCES WHETHERTHEY MAKE A PURCHASE1

MORE CRITICALOVER THE PAST 50 YEARS,CONSUMER BELIEF IN BUSINESSACTING RESPONSIBLY HAS DROPPEDFROM 68% TO UNDER 20%CONFIDENCE2

MORE CONNECTEDWEBSITE ACCESS THROUGH MOBILEDEVICES IS PROJECTED TO PRODUCEA 600% GROWTH IN TRAFFIC3

MORE INFORMED73% OF ONLINE CONSUMERS POSTA PRODUCT OR BRAND REVIEW ONA WEBSITE1

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LOYALTYIS BUILTON TRUST

TRUST ISBUILT ONBELIEF

BELIEF ISACHIEVEDTHROUGHACTIONS

IT�’S NOTWHAT YOUSAY �–IT�’S WHATYOU DO

© Wolff Olins

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NEW EXPERIENCESUSE BRAND TO CREATENEW BUSINESSES,NEW REVENUE STREAMS

NEW PLATFORMSCREATE NEW BRANDSYSTEMS, NOTINCREMENTALOFFERINGS

NEW PROCESSESOPEN UP, MOVE FASTER,ACHIEVE MORE

NEW EQUITYFOCUS ON VALUESAND VALUE

NEWWAYSTODRIVEGROWTH

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NEW EXPERIENCES 76% OF CUSTOMERSDON�’T BELIEVE THECLAIMS MADE INADVERTISING1

86% OF YOUNG ADULTSIN AMERICA DON�’T WANTTAILORED ADVERTISING2

NOW

VALUE =SERVICINGADJACENTMARKETS

DESIGN =EXPERIENCES

BRANDPOSITION =ACTION

THEN

VALUE =MARKETPENETRATION

DESIGN =PRODUCTS +SERVICES

BRANDPOSITION =COMMUNICATIONS

SOURCES1. Word of Mouth Marketing Association2. University of Pennsylvania + University of California study

© Wolff Olins

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NEW EXPERIENCESMERCEDES-BENZ

Wolff Olins worked with Mercedes-Benz tochallenge the paradigm of what it meansfor an automotive manufacturer to provideexceptional, best-in-class experience. Welooked beyond the car. We looked beyondthe showroom. The result is three newbusinesses that offer entirely newexperiences to entirely new customersegments growing both brand equity andrevenue.

GROWING A GLOBAL ICONIn 2007, Daimler set up a team of seniorexecutives to develop new growth initiativesbeyond the world of cars. Having identifiedthe brand as one of the most importantassets to leverage, the Business Innovationteam approached Wolff Olins to help developappropriate businesses that generated newand profitable growth without putting oneof the world�’s most iconic brands at risk.

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FROM IDEAS TO REALITYWolff Olins developed a brand-led innovationframework that ensures that each ventureprotects the Mercedes-Benz brand,leverages what is tangibly special about it(e.g., German engineering), gives the brandnew relevance in the world (e.g., attractingyounger customers and building newsustainability credentials) and makes money(with a return on sales of 20% or more).Working with Daimler�’s Business Innovationteam and the leaders of the business in UK,US, China and Japan, we developed ten newbusinesses to pilot. In January 2009 (tenmonths after the start of the project),Daimler launched Kinderclass �– elegantsolutions for family mobility �– at Mercedes-Benz World in Surrey, UK. June 2009 markedthe launch of the Mercedes-Benz DrivingAcademy in the UK �– the first of its kind in theworld. Later in 2009, an exclusive travelservice will be launched in China.

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A PLATFORM FOR GROWTHKinderclass has already led to a significantincrease in the sale of child safetyaccessories and continues to attract youngerfamilies to the Mercedes-Benz brand. TheMercedes-Benz Driving Academy wasreceived enthusiastically, gaining over 500customers within eight weeks. The Timescredited the brand for �“highlighting a hugeand long ignored problem.�” The academyaims to have 1,000 franchises by 2015, andby August 2009 had already received 200franchise applicants.

© Wolff Olins

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NEW PLATFORMS

IN AN INCREASINGLYCOMMODITIZED WORLD,AVOID OVER-INVESTMENTIN THE OPTIMIZATION OF�“ME TOO�” OFFERINGS THATDILUTE YOUR BRAND

THRIVING BRANDSDISRUPT CATEGORIESBY DEVELOPING SERVICEPLATFORMS THATENABLE NEW OFFERINGSAND DELIVER NEWREVENUE

© Wolff Olins

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NEW PLATFORMS(RED)

Wolff Olins elevated the level of impact of(RED) by looking beyond product offers andfocusing instead on the development of ahigher order platform to position the brandand attract new partners.

A NEW MODEL(RED)�’s ambition was to harness the power ofthe world�’s greatest companies to helpeliminate AIDS in Africa. To do this, it createdboth a new business model and a new brandmodel to achieve three goals: deliver a sourceof sustainable income for the Global Fund,provide consumers with a choice that makesgiving effortless and, last but not least,generate profits and a sense of purpose forpartner companies.

© Wolff Olins

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CONSCIOUS CONSUMPTIONThe first challenge was to get the all-important founding partners on board. So wehelped Bobby Shriver and Bono paint a visionof what (RED) could be. This vision of thefuture provoked Amex, Converse, EmporioArmani and Gap to take the plunge.

We built the brand around the idea that (RED)inspires, connects and gives consumerspower, with a unique brand architecture thatunites participating businesses by literallyembracing their logos to the power (RED).Many partners have gone the extra mile andmanufactured products or packaging inAfrican countries, generating jobs andopportunities for local people.

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$130 MILLIONWithin the first five weeks of the US launch,the (RED) brand registered 30% unaidedawareness. Over 1.35 million peoplewatched a YouTube video showing theimpact and there are over 850,000 (RED)friends on MySpace. In its first two years,(RED) partners delivered $108 million to theGlobal Fund, more than most countriesdonated in the same period. This is enoughmoney to give 650,000 people life-savingdrugs for a year.

© Wolff Olins

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NEW PROCESSES

FROM: LINEARMETHODOLOGIES THAT FOCUSON INCUBATED DEVELOPMENTAND RELY ON PUSH-TO-MARKETSTRATEGIES

TO: NONLINEARCO-CREATED METHODOLOGIESTHAT EMPOWER CONSUMERSTO EXERCISE THEIRPREFERENCES EARLY ANDOFTEN, ENABLING A PULLDYNAMIC INTO THE MARKET

THE WORLD ISMOVING FASTERAND IS MORE VOLATILE

WE DON�’T HAVE TIMEFOR TRADITIONALMETHODS BECAUSECUSTOMER ATTENTIONHAS BECOME FLEETING

NEW PROCESSES MUSTBE ORGANIC AND FASTMOVING

© Wolff Olins

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NEW PROCESSESAOL

Wolff Olins customized the process fordeveloping the new AOL brand identity byinterweaving and informing strategic andcreative team activities in real time. Theresult was a completely new, iconic, flexibleidentity system delivered in less than threemonths.

FROM ACCESS TO CONTENTIn early 2009, global web services businessAOL announced its departure from parentcompany Time Warner. Still under the nameof AOL, the new independent business wouldoffer online content, products and servicesfor consumers, publishers and advertisers.AOL asked Wolff Olins to help it reach out tonew audiences, stay relevant to existingcustomers, and create a brand for a 21st

century media company.

© Wolff Olins

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NOT MORE OF THE SAMEAOL�’s CEO, Tim Armstrong, defined a newmission: to inform, entertain and connectthe world �– not with more of the same butwith extraordinary content experiences.Wolff Olins worked with AOL to develop abrand identity that expresses this mission.The identity separates AOL from other mediabusinesses and embraces the fragmented,nonlinear online world. It�’s fluid, flexible andchangeable, and the name �“AOL�” is revealedthrough ever-changing images. Some ofthe world�’s best creative artists, includingUniversal Everything, GHAVA and DylanGriffin, created art and animations forthe brand.

© Wolff Olins

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READY TO DISRUPTAOL�’s new identity launched on December 10,2009 and has already made an impact withresearch firm YouGov listing it as one of itstop five gainers on their December BrandIndex. Behind the identity, AOL is making itsnew brand real through new ventures. AOLhas left its old world of access, entered thenew world of content �– and is ready todisrupt the whole media industry.

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NEW EQUITY

RISE OF THECONSCIOUS CONSUMERTOTAL MARKET SIZE OF 209BILLION FOR �“CONSCIOUSCONSUMER�” MARKET AS 93% OFCONSUMERS CLAIM PURCHASE ISINFLUENCED BY THE SOCIAL ANDENVIRONMENTAL ACTIONS OF ANORGANIZATION1

RISE OF CORPORATE SOCIALRESPONSIBILITYTODAY, A SURPRISING NUMBEROF COMPANIES ALREADY REGARDTAKING A RESPONSIBLE POSITIONAS A PLATFORM FOR GROWTH ANDDIFFERENTIATION

68% OF BUSINESSLEADERS ARE FOCUSINGON CSR ACTIVITIES TOCREATE NEWREVENUE STREAMS2

54% BELIEVE THATTHEIR COMPANY�’S CSRACTIVITIES ARE ALREADYGIVING THEM ANADVANTAGE OVER THEIRTOP COMPETITORS2

© Wolff Olins

SOURCES1. Lifestyles of Health and sustainability Analysis,Hartman Report on Sustainability 20082. IBM Report, Attaining growth through CSR, survey of 250 business leadersworldwide. George Pohle, Jeff Iittner

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NEW EQUITYUNILEVER

With transparency and corporate socialresponsibility issues increasingly impactingbrand value, the role of Unilever had tochange from an invisible owner to a guidingforce for their many product brands. Byproviding stewardship and guiding principlesto live by, Unilever has transitioned into the21st century through the equities andprinciples it represents, not solely on theproducts they offer.

SINGLE-MINDED GROWTH BUSINESSUnilever is big. 150 million times a day, in 150countries, people choose to make Unileverbrands part of their lives. But in theconsumer goods industry, growth is hard.Unilever decided that it was too diffuse, withtoo many brands and with no unifying driverof growth. Unilever wanted to become asingle-minded, idea-led growth business.

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TELLING THE VITALITY STORYWolff Olins helped Unilever change from aninvisible owner of brands to a much morevisible business, leading its brands through asingle idea: �“adding vitality to life.�” Wecreated a visual identity that expresses�“vitality,�” and that is starting to appear onevery Unilever product. Under this banner, wealso worked on dozens of projects to putvitality at the heart of the organization �– fromdesigning workplaces to transforming therecruitment process to training employeeshow to pass along the stories that underliethe idea. And we�’ve helped Unilever inventnew products and projects that delivervitality.

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GROWING AT 6%Every Unilever business, from China toArgentina, has embraced the vitality idea.Unilever is using the idea to determine whichbusinesses to invest in, which to exit from,and where to innovate, and now spendsalmost 1 billion a year on vitality-driveninnovation. Results are coming through: thenew vitality-inspired Knorr Vie drink, forexample, has sold 60 million bottles sincelaunch. Unilever now has six new vitality-inspired products. By June 2007, Unileverwas achieving an underlying sales growthclose to 6%. In 2008, Unilever�’s worldwiderevenue reached 40.5 billion.

© Wolff Olins

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NEWEXPERIENCES

NEWPLATFORMS

NEWPROCESSES

NEWEQUITY

=

NEWGROWTH

TATADOCOMO:

2MCUSTOMERSIN ITS FIRSTMONTH

PLANET LUNCH:

500SUPERMARKETSSELL IT ON DAY ONE

MERCEDES-BENZ:

3NEWBUSINESSESIN 10MONTHS

HEATHROWEXPRESS:

34%OF ALLPASSENGERSTO AND FROMAIRPORT

LAZYTOWN:

1CLEAR BRANDPULLING INNEWLICENSEES

VERY:

10MONTHS TO LAUNCHA NEW BUSINESS

LIVING PROOF:

$1.4MSALES IN JUST ONE MONTH

(RED):

$130MTO FIGHT AIDS

© Wolff Olins

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WOLFF OLINS IS A BRANDAND INNOVATION FIRMFOR THE 21ST CENTURY

More than your message, brand is theguiding force that informs and shapes theexperiences you offer, the business modelsyou design and the culture you inspire.

For over 40 years, Wolff Olins has providedsolutions for the ever-changing role of brand.Over that time, the environment for ourinteraction with brands has become morecomplex, more sophisticated.

By bringing clarity to these complexchallenges, we deliver disruptive solutionsand validate new opportunities for creatingvalue across the ecosystem of your brand�’sofferings, experiences, interactions andbehaviors.

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SOME OF OUR CLIENTS

(RED)ADIDASAOLAPPLE RECORDSATHENS 2004OLYMPICSBEELINEBOOZ AND COMPANYBTCARTER�’SCITIDIAGEOEMIFILAFRITO-LAYGEGMHAWAIIAN AIRLINESILORILIVING PROOFLLOYDS TSBLONDON 2012 OLYMPICSMAPQUESTMCDONALD�’SMERCEDES-BENZMICROSOFTMOVISTAR

NBCNEW MUSEUMNEW YORK CITYOIORANGEPEPSICOREPSOLROYAL MAILSKYSKYPESMITH & NEPHEWSOCIETE GENERALESONY ERICSSONSTAPLESSTARBUCKSTARGETTATATATETELENORTESCOTOKYO METROUNICEFUNILEVERV&AVIVOWACOMWAMU

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Michael Wolff and Wally Olins set upWolff Olins in 1965.

In the 60s, we did convention-breakingdesign work for big companies like boc,for government bodies like Camden and forthe Beatles.

In the 70s, we pioneered corporate identityfor P&O. And with tough economic times inBritain, we moved into France with Colr andGermany with Aral.

The 80s was the great age of corporateidentity. Wally wrote the book. We workedFor 3i, Q8 and Prudential. Repsol took us intoSpain. And we created a little banking brandin Britain called First Direct.

We started the 90s with Europe�’s biggestcorporate identity project, BT, and thenmorphed into branding with Orange, thenHeathrow Express. And we closed the decadeby opening in New York.

In the 00s, we�’ve become a world businesswith GE, Oi, PwC and (RED) in the Americas.Beeline, London 2012, Macmillan, SonyEricsson, Tate and Unilever in Europe. AndAirtel, Sony, Tokyo Metro and Wacom in Asia.

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