GLOBAL, LOCAL, RETAIL BRANDS…. AND …fdin.org.uk/wp-content/uploads/2015/09/Global-Local...WHY POWERBRANDING? GLOBAL, LOCAL, RETAIL BRANDS...AND INNOVATION • Rising costs •

GLOBAL, LOCAL, RETAIL BRANDS….

AND INNOVATION

6th March 2014

GLOBAL, LOCAL, RETAIL BRANDS...AND INNOVATION


FROM THIS …

REPEAT

LOYALTY

PURCHASE

CONSIDERATION

AWARENESS


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“…to promote the development of

China’s brand commodities so as to

benefit the world’s people….

development of brand commodities

concerns China’s economic growth

and social progress”




BEST GLOBAL BRANDS BY SECTOR

FINANCIAL SERVICES

ELECTRONICS

FMCG

AUTOMOTIVE ALCOHOL

LUXURY

BUSINESS SERVICES

BEVERAGES

DIVERSIFIED

INTERNET SERVICES RESTAURANTS

APPAREL MEDIA

COMPUTER SOFTWARE

SPORTING GOODS

ENERGY

TRANSPORTATION

HOME FURNISHINGS

Sector Breakdown

FINANCIAL SERVICES 14

ELECTRONICS 14

FMCG 11

AUTOMOTIVE 12

ALCOHOL 7

LUXURY 7

BUSINESS SERVICES 5

DIVERSIFIED 5

BEVERAGES 4

INTERNET SERVICES 4

RESTAURANTS 4

APPAREL 3

MEDIA 3

COMPUTER SOFTWARE 2

SPORTING GOODS 2

ENERGY 1

HOME FURNISHINGS 1

TRANSPORTATION 1

USA

GERMANY

FRANCE

JAPAN

SWITZERLAND

UNITED KINGDOM

ITALY

THE NETHERLANDS

CANADA

SOUTH KOREA

SPAIN

SWEDEN

FINLAND MEXICO

TAIWAN

Region/Country Breakdown

USA 50

GERMANY 10

FRANCE 7

JAPAN 7

SWITZERLAND 5

UNITED KINGDOM 4

ITALY 3

THE NETHERLANDS 3

CANADA 2

SOUTH KOREA 2

SPAIN 2

SWEDEN 2

FINLAND 1

MEXICO 1

TAIWAN 1

BEST GLOBAL BRANDS BY REGION/COUNTRY


0% 10% 20% 30% 40% 50% 60%

IF YOUR BRAND DOES NOT INFLUENCE ALL THE DECISIONS MADE AT YOUR

ORGANISATION, WHICH OF THE FOLLOWING MIGHT BE THE CAUSE?


CMOs/Senior Marketers

Brand Enthusiasts

25%

PERCENTAGE OF RESPONDENTS

Lack of CEO endorsement

Brand is not included in the “sphere of influence”

There is an inability to prove the financial benefit of brand

Budgets are focused on communications activities

Metrics do not support the importance of brand

29%

28% 35%

49% 46%

32% 38%

39% 33%

51% 30%

15%

39%

35%

40%

Branding expertise does not yet exist

Current branding expertise is not widely accepted

Incentives do not support the importance of brand

METHOD FOR VALUING BRANDS

FINANCIAL PERFORMANCE ROLE OF BRAND BRAND STRENGTH

OPERATING PROFITS –

TAXES

NOPAT –

WACC =

ECONOMIC PROFIT x

ROLE OF BRAND =

BRANDED EARNINGS x

BRAND STRENGTH

DISCOUNT RATE =

ECONOMIC PROFIT BRANDED EARNINGS BRAND VALUE

BRAND VALUE RESULTS

The parts come together so that the

forecasted financial performance projects

economic profits that are multiplied by the

role of brand to reveal branded earnings.

These branded earnings, which are

based on the brand strength, are

discounted back to a present value and

totaled to arrive at a brand value.

%

$

B


ALLOCATION OF BOARD AGENDA TIME



NAME VISUAL

IDENTITY

PRODUCTS & SERVICES

EXTERNAL COMMUNICATIONS

VISION VALUES

MANAGEMENT SYSTEMS

BUSINESS PROCESSES

TRAINING & RECRUITMENT

BELIEFS & PERSONALITY

EMPLOYEE COMMUNICATION

CLEAR BRAND STRATEGY

METHODS OF REWARDS

SENSE OF PURPOSE

BRAND AS CENTRAL ORGANISING PRINCIPLE

SALES

MARKETING

MANUFACTURING/ RETAIL OPERATIONS

DISTRIBUTION

R&D

FINANCE

TO THIS:

BRAND

STRATEGY TRADITIONAL

COMMUNICATION

HR

SALES

MARKETING

MANUFACTURING/ RETAIL OPERATIONS

DISTRIBUTION

R&D

FINANCE

HR

BRAND

STRATEGY

BUSINESS

STRATEGY

FROM THIS:


BUSINESS

STRATEGY

PRODUCTS

AND SERVICES

PEOPLE AND

BEHAVIOURS

ENVIRONMENTS

AND CHANNELS

COMMUNICATIONS

BRAND




Clarity

Coherence


Clarity

Coherence

Leadership



VISION

Man is the creator of change in this world and

should not be subordinate to machines or

systems.

MISSION

Providing human tools. Dedicated to the

empowerment of man, helping change the way we

work, learn and communicate.

VALUES

Individualistic, thinking differently, clarity, clever.


HUMANISING TECHNOLOGY COMMUNICATIONS

PRODUCTS AND SERVICES

ENVIRONMENTS AND CHANNELS

PEOPLE AND BEHAVIOURS

DELIVERING THE BRAND







MICROSOFT ACQUIRES NOKIA


MICROSOFT BUYS NOKIA

FOR $7.2BILLION IN LATEST

ATTEMPT TO EDGE OUT

APPLE IN PHONE AND

TABLET MARKET

MICROSOFT GOES ALL

IN AND BUYS NOKIA'S

DEVICE BUSINESS IN

$7.17 BILLION DEAL







‘Our mission is to be the earth’s most customer-centric company… it’s the job of every person in this company to reinforce the culture, including me.’

JEFF BEZOS, AMAZON








LBO blah LBO blah



“Competing successfully in the 21st century will require

more than just outstanding product quality and functions.

Intangibles such as corporate image and brand image

will be crucial factors for achieving a competitive edge.”

Jong-Yong Yun, President and CEO, Samsung Electronics


“This is our first attempt to be at the leading edge

rather than being a follower”

Eric B Kim, Samsung


• Rising costs

• Pressurised budgets

• Hyper competition

• Leverage brand loyalty and scale

• Critical mass for investment and innovation

WHY POWERBRANDING?


• Rising costs

• Pressurised budgets

• Hyper competition

• Leverage brand loyalty and scale

• Critical mass for investment and innovation

• CLARITY AND FOCUS

WHY POWERBRANDING?








P&G




“New products are a lazy

man’s marketing” Former president of Coca Cola


PRODUCTS

AND SERVICES

PEOPLE AND

BEHAVIOURS

ENVIRONMENTS

AND CHANNELS

COMMUNICATIONS

BRAND


SEARCH

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Clarity

Coherence

Leadership



Documents

GLOBAL, LOCAL, RETAIL BRANDS…. AND …fdin.org.uk/wp-content/uploads/2015/09/Global-Local...WHY POWERBRANDING? GLOBAL, LOCAL, RETAIL BRANDS...AND INNOVATION • Rising costs •