SAMRA%ANNUAL%CONFERENCE,%2015%

Dipanjan Chatterjee Senior Vice President

Young & Rubicam/ BAV Consulting

EMPOWERING BRANDS WITH

RESEARCH

THE NOAH PRINCIPLE

© Dipanjan Chatterjee, 2015.

LONDON 1850s

DATA

INFORMATION

INSIGHT

ACTION

It’s not enough to predict the rain …

… You need to build the ark

THE%NOAH%PRINCIPLE%

? Behavi

or

BATTLE%OF%THE%BRANDS%

BRAND%POWER%

If this business were split up, I would give you the land and

bricks and mortar, and I would take the brand, and I would

fare better than you.

“ ” Quaker Oats “mascot” pictured here, Quote

from Ex-CEO, Quaker Oats

Market Value Per Share Book Value Per Share

Notes: price as of 10/26/14, book value based on latest quarter, Source: yahoo finance

~ $40

~ $5

patents trademarks copyrights processes

designs goodwill

brand

88%

30%

S&P 500

Brand share of market value

BRAND VALUE

Source: BAV analysis

SO%WHAT%IS%A%BRAND?%

Products are made in the factory, but brands are created in the mind!

“ ” Walter Landor

Thinking – Fast and Slow

“System 2 allocates attention to the effortful mental activities that demand it, including complex computations”

“System 1 operates automatically and quickly, with little or no effort and no sense of voluntary control”

THIS%REQUIRES%SOME%THOUGHT%

My brain: it’s my second

favorite organ “

” Woody Allen

How can I tap into the brain to understand, frame, and analyze perceptions?

14

How can I influence decisions?

EMPOWERING%BRANDS%

In God we trust; all others must

bring data “

” Edward Demings

• A Young & Rubicam/WPP company

• Marketing and brand strategy consulting

• 20+ years

• Help clients rethink their products, services, brands, and marketing

BAV CONSULTING …

Brand Asset® Valuator

50 countries

20 years of history

870,000 consumers

330 studies

BAV HAS THE LARGEST CONSUMER INSIGHT AND BRAND DATABASE IN THE WORLD

Academically vetted

50,000 brands

70 brand metrics

Mentioned in 30+ books

200+ categories

•  US (every quarter)

•  Canada

•  France

•  Spain

•  Germany

•  Russia

•  Austria

•  Denmark

•  Thailand

•  Hungary

•  Australia

•  Mexico

•  Brazil

•  Chile

•  Argentina

•  Italy

•  Colombia

•  Belgium

•  Germany

•  Holland

•  China

•  Japan

•  India

•  South Korea

•  Indonesia

SOME OF OUR RECENT STUDIES …

… in addition to hundreds of client-specific and country-specific custom studies

BAV MODEL: 48 ATTRIBUTES BUILDING BLOCKS OF BRAND EQUITY

ATTRIBUTES THAT IMPACT BRAND ASSET VALUE

Energized Differentiation

What is a brand’s point of difference and

reason for being?

Relates to margins

Esteem

How well regarded is the brand?

Relates to loyalty

Relevance

How appropriate is the brand to

you?

Relates to consideration

& trial

Knowledge

How well do you understand

the brand?

Relates to brand saliency and familiarity

BRAND EQUITY STANDS ON FOUR PILLARS …

PILLAR PATTERNS TELL BRAND STORIES

Esteem > Knowledge Brand is better liked than known: desire to find out more

Esteem

Knowledge

Esteem < Knowledge Brand is better known than liked: looking for better options

Esteem

Knowledge

Energized Differentiation < Relevance Uniqueness has faded, price or convenience has become dominant reason to buy and use: commodity

Energized Differentiation

Relevance

Energized Differentiation > Relevance Brand has captured attention and now has power to build Relevance

Energized Differentiation

Relevance

… AND BUILD TO BRAND STRENGTH AND BRAND STATURE

Brand Strength An indicator of future

brand potential

Energized Differentiation Relevance

Brand Stature An indicator of

current brand status

Esteem

Knowledge

Bra

nd S

TREN

GTH

Brand STATURE

The value of a brand is maximized when Brand Strength and Brand Stature are

both at their peaks

Brand Equity

CASE%STUDIES%

RISE AND FALL OF BUSINESS EMPIRES: CASE 1

0

20

40

60

80

100

Energized Differentiation

Relevance Esteem Knowledge

0

20

40

60

80

100

Energized Differentiation

Relevance Esteem Knowledge

Brand Equity among General Population

Brand Pillars among General Population

2005

2006

2007

2008 2009 2010 2011

2012 2013

2014

2001 2002 2003

2004 2005

2006 2007

2008 2009

2010 2011

2012

2001-2014

2005-2014

Commodity or Eroded

Declining or Ubiquitous

Niche

New or Unknown

Leadership

Source: BAV Brand Health, USA

RISE AND FALL OF BUSINESS EMPIRES: CASE 2

2007

2008

2009 2010

2011 2012 2013 2014

2001

2002 2003

2004

2005

2006

2007 2008

2009 2010

2011

2012

2013

2014

0

20

40

60

80

100

Energized Differentiation

Relevance Esteem Knowledge

0

20

40

60

80

100

Energized Differentiation

Relevance Esteem Knowledge

Brand Equity among General Population

Brand Pillars among General Population

Commodity

2001-2014

2007-2014

Commodity or Eroded

Declining or Ubiquitous

Niche

New or Unknown

Leadership

Source: BAV Brand Health, USA

Credit Card Issuers

Bra

nd S

TREN

GTH

(E

ne

rgiz

ed

Diff

ere

ntia

tion

& R

ele

van

ce

)

Brand STATURE (Esteem & Knowledge)

0

50

100

0 50 100

BREAK AWAY BRANDS

Breakout brands outperform the category with a higher Brand Equity, typically through creating a differentiated brand persona.

Niche or Momentum

New, Unfocused or

Unknown

Leadership

Commodity or Eroded

Car Rental

Online Retailers

Airlines

Hotels & Resorts

Source: BAV Brand Health, USA

“DRIVING” DIFFERENTIATION

Bra

nd S

TREN

GTH

(E

ne

rgiz

ed

Diff

ere

ntia

tion

& R

ele

van

ce

)

0

50

100

0 50 100

Brand STATURE (Esteem & Knowledge)

ZIPCAR REDEFINES THE AUTO CATEGORY

0

20

40

60

80

100

Energized Differentiation

Relevance Esteem Knowledge

Zipcar Alamo Rent A Car Avis Budget Rent a Car Enterprise Rent-A-Car Hertz

Rental Car Companies: Brand Pillars

Alamo Avis Budget

Enterprise Hertz

Rental Car Companies: Brand Equity

Category Average

Source: BAV Brand Health, USA

SHIFTING CONSUMER PREFERENCES

Brands the General Population thinks are Worth More

Brands Millennials think are Worth More

Source: BAV Brand Health, USA

HOW FORD WENT FURTHER

31

THE REJUVENATION OF FORD

- 10 20 30 40 50 60 70 80 90

100

2006 2007 2008 2009 2010 2011 2012 2013 2014

Ford Esteem and Energized Differentiation Percentile Rank

How appropriate is the brand to

you?

Energized Differentiation

What is a brand’s point of

difference and reason for being?

Esteem

How well regarded is the brand?

57 percentile Energized

Differentiation rank

82 percentile rank (25

percentile improvement in

in 4 years)

Bra

nd S

TREN

GTH

(E

nerg

ized

Diff

eren

tiatio

n &

Rel

evan

ce)

0

50

100

0 50 100

Brand STATURE (Esteem & Knowledge)

Niche

Leadership

Mass Market

Undeveloped Commodity

Source: BrandAsset® Valuator USA All Adults, 2006-2014

2006 2007 2008 2009

2010-2014

0

20

40

60

80

100

Energized Differentiation

Relevance Esteem Knowledge

RETURN TO LEADERSHIP

Ford Power Grid Percentile Rank

Ford Brand Equity Pillars Percentile Rank

BUILDING ATTRIBUTES THAT MATTER

3

3

4

5

5

10

11

Leader

High Performance

Reliable

Worth More

Cares Customers

High Quality

Innovative

Ford’s Largest Attribute Improvements since 2006 Percentile Rank

BRANDS IN SOUTH AFRICA

Bra

nd S

TREN

GTH

(E

nerg

ized

Diff

eren

tiatio

n &

Rel

evan

ce)

0

50

100

0 50 100

Brand STATURE (Esteem & Knowledge)

Source: BAV Syndicated Dataset All Adults. South Africa 2010.

SELECTED BRANDS IN SOUTH AFRICA

Brand Perceptions in South Africa All Adults 2010

Niche

Leadership

Mass Market

Commodity

New, Unfocused

Bra

nd S

TREN

GTH

(E

nerg

ized

Diff

eren

tiatio

n &

Rel

evan

ce)

0

50

100

0 50 100

Brand STATURE (Esteem & Knowledge)

Source: BAV Syndicated Dataset All Adults. South Africa 2010. USA 2010.

SELECTED BRANDS IN SOUTH AFRICA AND USA

Brand Perceptions in South Africa vs. USA All Adults 2010

Niche Leadership

Mass Market

Commodity

New, Unfocused 2010

2010

HOW SOUTH AFRICAN CONSUMERS DIFFER FROM US CONSUMERS

Top 15 Brand Values in SA vs. USA

Source: BAV Syndicated Dataset All Adults. South Africa 2010. USA 2010.

Upper Class Worth More

Stylish

Original Fun

High Performance

Trustworthy Reliable

Good Value High Quality

Down to Earth Friendly

Best Brand Cares for Customers

Leader Intelligent

Helpful Simple

BRANDS IN SOUTH AFRICA

THE POWER OF A NATION BRAND

Brand Stature (Esteem & Knowledge)

Bran

d St

reng

th

(ene

rgiz

ed D

iffer

entia

tion

& R

elev

ance

)

German Perceptions of Foreign Countries US Perceptions of Foreign Countries

Japanese Perception of Foreign Counties Italy in Japan

Italy in Germany

Italy in the US

Source: BAV Consulting data

Source: BAV Brand Health, multiple countires

BRAZIL’S PERSONALITY HALO

Source: BrandAsset® Valuator, Based on analysis in USA 2013, Australia 2013, Japan 2012, South Korea 2012, Germany 2012

Brazil is known as a fun, exciting and social place – mixing a carefree energy with glamour; its brand reflects this personality around the globe, making it a great ally for energizing its partners

BRAND ASSOCIATIONS FOR NATIONS

Australia Germany

vs.

BRAND%SOUTH%AFRICA%

Bra

nd S

TREN

GTH

(E

nerg

ized

Diff

eren

tiatio

n &

Rel

evan

ce)

0

50

100

0 50 100

Brand STATURE (Esteem & Knowledge)

Source: BAV Syndicated Dataset All Adults. Brazil 2013. France 2014. Germany 2014. Hungary 2014. Italy 2013. Mexico 2012. Netherlands 2014. Switzerland 2013. UK 2014. USA 2012.

HOW SELECTED COUNTRIES VIEW BRAND SOUTH AFRICA

Brazil

France

Germany

Hungary

Italy

Mexico

Netherlands

Switzerland

UK USA

Global Perceptions of Brand South Africa Niche Leadership

Mass Market

Commodity

New, Unfocused

STRONGER EQUITY IN GERMANY THAN IN THE UK

0

20

40

60

80

100

Energized Differentiation

Relevance Esteem Knowledge

Brand South Africa Germany 2014

0

20

40

60

80

100

Energized Differentiation

Relevance Esteem Knowledge

Brand South Africa UK 2014

Source: BAV Syndicated Dataset All Adults Germany 2014. UK 2014.

0%#

5%#

10%#

15%#

20%#

25%#

30%#

35%#

40%#

Brazil# France# Germany# Hungary# Italy# Mexico# Netherlands# Switzerland# UK# USA#

DistribuIon#of#Knowledge#of#South#Africa#

Knowledge_1# Knowledge_2# Knowledge_3# Knowledge_4# Knowledge_5# Knowledge_6# Knowledge_7#

Distribution of knowledge included here.

Most people fall in the familiar range (2-7) but

on the lower end, reflecting that they’re

aware the country exists, but probably don’t know

much else about it.

COMPARES FAVORABLY TO MOST BRICS

Source: BAV Syndicated Dataset. All Adults. Germany 2014. UK 2014.

83

25 31

64

0 20 40 60 80

100

ED REL EST KNO

96

54

20

54

0 20 40 60 80

100

ED REL EST KNO

91

15 6

45

0 20 40 60 80

100

ED REL EST KNO

93

46

15

53

0 20 40 60 80

100

ED REL EST KNO

84

8 21

49

0 20 40 60 80

100

ED REL EST KNO

71

7 14

60

0 20 40 60 80

100

ED REL EST KNO

84

10 4

47

0 20 40 60 80

100

ED REL EST KNO

77

10 2

54

0 20 40 60 80

100

ED REL EST KNO

71

5 2

42

0 20 40 60 80

100

ED REL EST KNO

74

6 15

44

0 20 40 60 80

100

ED REL EST KNO

Germany 2014

UK 2014

South Africa

Comparison of BRICS Nations in Germany & the UK

KNOWLEDGE IS A DOUBLE-EDGED SWORD

12% 8%

19% 12% 13%

19% 19% 23%

38%

19%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

France Germany Switzerland UK USA

Distribution of Knowledge of South Africa (7 = Max)

Knowledge_1 Knowledge_2 Knowledge_3 Knowledge_4 Knowledge_5 Knowledge_6 Knowledge_7

DIFFERENT AND FRIENDLY, BUT ALSO UNAPPROACHABLE

Source: BAV Syndicated Dataset All Adults. Brazil 2013. France 2014. Germany 2014. Hungary 2014. Italy 2013. Mexico 2012. Netherlands 2014. Switzerland 2013. UK 2014. USA 2012. Note: Perceptions are based on a global average of the aforementioned countries.

Global Perceptions of Brand South Africa

RELATES TO EXCITEMENT, ENERGY, RUGGEDNESS, AND GUILTY PLEASURE?

Consumer Views of Brand South Africa

is like…

Source: BAV Syndicated Dataset All Adults. USA 2012. Brazil 2013. Netherlands 2014. Switzerland 2013.

USA Brazil Switzerland Netherlands

TO UK BRAZIL IS MORE FUN AND TRENDY, SOUTH AFRICA MORE RUGGED AND UNAPPROACHABLE

Fun

Trendy

Energetic

Glamorous

Intelligent

Arrogant

Unapproachable

Rugged

South Africa vs. Brazil

Source: BAV Syndicated Dataset All Adults UK 2014.

DATA

INFORMATION

INSIGHT

ACTION

THE%NOAH%PRINCIPLE%

DATA Unique research framework to collect data across the globe

INFORMATION Analytics and methodologies to make sense of this mountain of data

INSIGHT

The skill to translate information into “a-ha”; beyond reporting the weather to framing strategy

ACTION

Driving to a roadmap, actions, initiatives … measure, manage, fix, measure again

THE%NOAH%PRINCIPLE%IMPROVEMENT%=%VALUE%CREATED%

THANK%YOU% Connect on LinkedIn https://www.linkedin.com/in/branddipanjan Email me dchatterjee@bavconsulting.com Contact me Young & Rubicam/BAV Consulting 3 Columbus Circle New York, NY 10019