Lewis silkin Brand Academy 2013 - Building valuable brands presentations

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Lewis silkin Brand Academy 2013 - Building valuable brands presentations

  1. 1. Brand Academy y 2013 Building valuable brands
  2. 2. Giles C Gil Crown, Lewis Silkin L i Silki INTRODUCTION
  3. 3. GOING UP?
  4. 4. Dec. 10, 2008 Jan. 14, 2009 Feb. 18, 2009 March 23, 2009 April 24, 2009 May 28, 2009 June 30, 2009 Aug. 3, 2009 Sept. 3, 2009 Oct. 7, 2009 Nov. 9, 2009 Dec. 11, 2009 Jan. 15, 2010 Feb. 19, 2010 March 24, 2010 April 27, 2010 May 28, 2010 July 1, 2010 Aug. 4, 2010 Sept. 7, 2010 Oct. 8, 2010 Nov. 10, 2010 Dec. 14, 2010 Jan. 18, 2011 Feb. 18, 2011 March 24, 2011 April 27, 2011 May 31, 2011 July 1, 2011 Aug. 4, 2011 Sept. 7, 2011 Oct. 10, 2011 Nov. 10, 2011 Dec. 14, 2011 Jan. 19, 2012 Feb. 22, 2012 March 26, 2012 April 27, 2012 May 31, 2012 July 3, 2012 Aug. 6, 2012 Sept. 7, 2012 Oct. 10, 2012 Nov. 14, 2012 Dec. 18, 2012 Jan. 23, 2013 Feb. 26, 2013 April 1, 2013 May 2, 2013 June 5, 2013 July 9, 2013 Aug. 9, 2013 Sept. 12, 2013 Oct. 15, 2013 Nov. 15, 2013 Apple Market Cap Ycharts - Morningstar NASDAQ data Apple Brand Value Interbrand data Enduring brand value? $700,000 M $600,000 M $500,000 M $500 000 $400,000 M $300,000 M $200,000 M $ $100,000 M , $M
  5. 5. Aug. 27, 2009 Jan. 6, 2011 Nov. 30, 2011 Dec. 14, 2011 Dec. 29, 2011 Jan. 13, 2012 Jan. 30, 2012 Feb. 13, 2012 Feb. 28, 2012 March 13, 2012 March 27, 2012 April 11, 2012 April 25, 2012 May 9, 2012 May 23, 2012 June 7, 2012 June 21, 2012 July 6, 2012 July 20, 2012 Aug. 3, 2012 Aug. 17, 2012 Aug. 31, 2012 Sept. 19, 2012 Oct. 3, 2012 Oct. 18, 2012 Nov. 5, 2012 Nov. 19, 2012 Dec. 4, 2012 Dec. 18, 2012 Jan. 3, 2013 Jan. 17, 2013 Feb. 1, 2013 Feb. 15, 2013 March 4, 2013 March 18, 2013 April 2, 2013 April 16, 2013 April 30, 2013 May 14, 2013 May 29, 2013 June 12, 2013 June 26, 2013 July 11, 2013 July 25, 2013 Aug. 8, 2013 Aug. 22, 2013 Sept. 6, 2013 Sept. 20, 2013 Oct. 4, 2013 Oct. 18, 2013 Nov. 1, 2013 Nov. 15, 2013 Samsung Market Cap Ycharts - Morningstar OTC Markets data Samsung Brand Value Interbrand data Profit before brand? $250,000 M $200,000 M $150,000 M $100,000 M $50,000 M $M
  6. 6. MUST IT COME DOWN?
  7. 7. Dec. 19, 2008 Jan. 27, 2009 March 3, 2009 April 6, 2009 May 11, 2009 June 15, 2009 July 20, 2009 Aug. 21, 2009 Sept. 25, 2009 Oct. 29, 2009 Dec. 3, 2009 Jan. 8, 2010 Feb. 12, 2010 March 19, 2010 April 23, 2010 May 27, 2010 July 1, 2010 Aug. 5, 2010 Sept. 9, 2010 Oct. 13, 2010 Nov. 16, 2010 Dec. 21, 2010 Jan. 26, 2011 March 2, 2011 April 5, 2011 May 10, 2011 June 14, 2011 July 19, 2011 Aug. 22, 2011 Sept. 26, 2011 Oct. 28, 2011 Dec. 2, 2011 Jan. 9, 2012 Feb. 13, 2012 March 19, 2012 April 23, 2012 May 25, 2012 June 29, 2012 Aug. 3, 2012 Sept. 7, 2012 Oct. 11, 2012 Nov. 16, 2012 Dec. 21, 2012 Jan. 29, 2013 March 5, 2013 April 9, 2013 May 13, 2013 April 5, 2013 May 9, 2013 June 13, 2013 July 18, 2013 Aug. 21, 2013 Sept. 25, 2013 Oct. 29, 2013 Dell Market Cap Ycharts - Morningstar NASDAQ data A lost brand? Dell Brand Value Interbrand data $40,000 M $35,000 M $30,000 M $25,000 M $20,000 M $15,000 M $10,000 M $5,000 M $M
  8. 8. Dec. 10, 2008 Jan. 14, 2009 Feb. 18, 2009 March 23, 2009 April 24, 2009 May 28, 2009 June 30, 2009 Aug. 3, 2009 Sept. 3, 2009 Oct. 7, 2009 Nov. 9, 2009 Dec. 11, 2009 Jan. 15, 2010 Feb. 19, 2010 March 24, 2010 April 27, 2010 May 28, 2010 July 1, 2010 Aug. 4, 2010 Sept. 7, 2010 Oct. 8, 2010 Nov. 10, 2010 Dec. 14, 2010 Jan. 18, 2011 Feb. 18, 2011 March 24, 2011 April 27, 2011 May 31, 2011 July 1, 2011 Aug. 4, 2011 Sept. 7, 2011 Oct. 10, 2011 Nov. 10, 2011 Dec. 14, 2011 Jan. 19, 2012 Feb. 22, 2012 March 26, 2012 April 27, 2012 May 31, 2012 July 3, 2012 Aug. 6, 2012 Sept. 7, 2012 Oct. 10, 2012 Nov. 14, 2012 Dec. 18, 2012 Jan. 23, 2013 Feb. 26, 2013 April 1, 2013 May 2, 2013 June 5, 2013 July 9, 2013 Aug. 9, 2013 Sept. 12, 2013 Oct. 15, 2013 Nov. 15, 2013 Nokia Market Cap Ycharts - Morningstar NYSE data Nokia Brand Value Interbrand data A brand left behind? $70,000 M $60,000 M $50,000 M $50 000 $40,000 M $30,000 M $20,000 M $10,000 $10 000 M $M
  9. 9. Intellectual p y Property Innovation Product Heritage Valuable brand Consumer engagement Trust & Transparency Profit Reputation Allure
  10. 10. Mike R h Interbrand Mik Rocha, I t b d BEST GLOBAL BRANDS 2013
  11. 11. @mikerocha73 www mobro co/ www.mobro.co/ mikerocha
  12. 12. Agenda 1. Best Global Brands 2013 overview 2. Methodology and applications 3. How can you be a brand leader?
  13. 13. Best Global Brands 2013 overview i 1
  14. 14. A few statistics
  15. 15. Top 10 Brands McDonald’s +5% 41,992 $m IBM +4% 78 808 $m 78,808 Samsung +20% 39,610 $m Google +34% 93,291 $m Microsoft +3% 59,546 $m Apple +28% 98,316 $m Intel –5% 37,257 $m Toyota y +17% 35,346 $m Coca-Cola 79,213 +2% 79 213 $m GE +7% 46,947 $m
  16. 16. Methodology and applications li i 2
  17. 17. Interbrand brand valuation methodology
  18. 18. Brand Strength Authenticity Clarity Relevance Commitment C it t INTERNAL FACTORS Protection Responsiveness Differentiation Diff ti ti EXTERNAL FACTORS Consistency Presence Understanding
  19. 19. Brand valuation applications Brand Management How can we grow the value of our brand? Strategy/ Business Case Which strategy will deliver the best return? Financial What is our brand worth today? y
  20. 20. How can you be a brand l d ? b d leader? 3
  21. 21. HAVE CONVICTION NURTURE YOUR CULTURE SURRENDER CONTROL DELIVER AN EXPERIENCE
  22. 22. Trust Speed Working Purpose HAVE CONVICTION 22 | Best Global Brands 2013 | Amsterdam | #BGB2013
  23. 23. Thought leadership platforms Trust Speed Working Purpose
  24. 24. Currently, Smarter Planet acts as a unifying belief and innovations platform for the business • Positions IBM as ‘chief problem solver chief solver’ • Bigger than the company • A unifying idea IBM has reinvented itself many times. But through it all, its DNA, its soul remained i t t IBM's most i d intact... IBM' t important innovation wasn't a technology or management system. Its revolutionary idea was to define and run a company by a set of strongly held beliefs. Sam Palmisano, Former Chairman & CEO .
  25. 25. Trust Speed Working Bigger Purpose HAVE CONVICTION 25 | Best Global Brands 2013 | Amsterdam | #BGB2013
  26. 26. NURTURE YOUR CULTURE 26 | Best Global Brands 2013 | Amsterdam | #BGB2013
  27. 27. Google culture Nurturing the people in your organization doesn’t require expensive perks or touchy-feely gimmicks. It’s about motivating, engaging and listening – and it can work for anybody You don't need a lot of money to do what Google has done. If you give people freedom, they will amaze you. Laszlo Bock, Google’s SVP of People Operations 2.5m 2 5m
  28. 28. NURTURE YOUR CULTURE 28 | Best Global Brands 2013 | Amsterdam | #BGB2013
  29. 29. Are you an IBM’er? 6 years Its genius lies in fostering innovation through cocreation with its employees, i i hi l suppliers, partners and customers. Mark Fidelman, Forbes
  30. 30. Surrender control – co-creation
  31. 31. SURRENDER CONTROL
  32. 32. SURRENDER CONTROL
  33. 33. DELIVER AN EXPERIENCE 33 | Best Global Brands 2013 | Amsterdam | #BGB2013
  34. 34. Apple’s obsessive attention to detail is a unique brand s hallmark of their brand’s experience • Product – setting the tone for the brand experience • Details matter I love the process of unpacking something. You design a ritual of unpacking to make the product feel special. P k i i l Packaging can be theatre, it b h i can create a story. Sir Jony Ive, Senior VP of Design, Apple
  35. 35. Attention to detail has been applied to all touch points, particularly retail • Early reliance on big box computer and electronics stores • Poorly trained staff and illill maintained Mac sections • Needed to get closer to customers • A l ’ disruptive i Apple’s di ti innovation i ti in retail programme was to focus on the brand-led experience
  36. 36. Ambassadors needed clear guidelines on how to deliver a brand led service brand-led Appears seamless but Apple’s behaviour requires: • Internally codified behaviours • Rigorous training • Not externally communicated Genius Principles Approach Probe Present Listen End
  37. 37. HAVE CONVICTION NURTURE YOUR CULTURE SURRENDER CONTROL DELIVER AN EXPERIENCE
  38. 38. Thank you! www.mobro.co/ mikerocha Mike Rocha Global Director, Brand Valuation Mike.Rocha@Interbrand.com
  39. 39. Anthony Mullen, Forrester Research TRUST & TRANSPARENCY – THE UPCOMING CHALLENGE
  40. 40. Trust & Transparency – the i h ll upcoming challenge Anthony Mullen, Senior A l t A th M ll S i Analyst 21st Nov 2013 @ant_mull Please tweet us your questions:
  41. 41. Trust takes years to earn but it can be destroyed in seconds 1991 - "How can you sell this for How such a low price?", I say, "because it's total crap." © 2012 Forrester Research, Inc. Reproduction Prohibited 2009 - Worst Family Brand 2011 - Worst UK Airline 2012 - Worst European Short-Haul Airline 41
  42. 42. Be Real or Be Rejected THE ERA OF CONSEQUENCES After 30 years of indulgence, consumers, businesses and governments are rebuilding the marketplace on a firmer foundation foundation. Trust has become a cornerstone value. The prevalent skepticism that makes trust difficult to achieve and maintain also makes its achievement more powerful. Brands face a choice – be real or be rejected. © 2012 Forrester Research, Inc. Reproduction Prohibited 42
  43. 43. The Window of Opportunity ‘Covert’ Advertising – no real public awareness pre 2009 Maturing Public Awareness Legislation & Privacy 2.0 2009 2011 2013 2015 Greater Automation & Transparency 2016+ 3 killer use cases Show me everything Delete everything Move everything
  44. 44. Risk Profiles – 3 responses to the ePrivacy Directive © 2013 Forrester Research, Inc. Reproduction Prohibited 44
  45. 45. New tools give consumers more power to track and control their data Personal Identity Management • Digital Identity Managers • Reputation and Data Removal Management • Personal Data Aggregators gg g • Specialized Data Vaults • Privacy & arbitration tools • Sco g Scoring / Trust / Value us a ue Mechanisms • Preference Management • Quantification of self >45 sites ! © 2013 Forrester Research, Inc. Reproduction Prohibited 45
  46. 46. Consumers don t trust advertising don’t © 2013 Forrester Research, Inc. Reproduction Prohibited 46
  47. 47. STAFF WEBSITE APPLICATION ADVERTISERS PUBLISHER GOVERNMENT BRAND AGENCY CONSUMERS SERVICE HARDWARE Within given context a recipient TRUSTS a provider for performing an action and realizing the result that corresponds to a recipients goal © 2012 Forrester Research, Inc. Reproduction Prohibited 47
  48. 48. It s It’s possible to come back from being ‘crap’ but it takes honesty © 2013 Forrester Research, Inc. Reproduction Prohibited 48
  49. 49. Brands have tools for managing reputation and trust © 2013 Forrester Research, Inc. Reproduction Prohibited 49
  50. 50. Digital and social activities provide an audit trail of behavior from both consumers and brands Sharing Economy © 2012 Forrester Research, Inc. Reproduction Prohibited Social Platforms 50
  51. 51. Allowing for richer models than reputation © 2013 Forrester Research, Inc. Reproduction Prohibited 51
  52. 52. © 2013 Forrester Research, Inc. Reproduction Prohibited 52
  53. 53. The Window of Opportunity Greater Automation & Transparency Legislation & Privacy 2.0 2013 2015 use technology to really UNDERSTAND and SERVE the customer and do so in a RESPONSIBLE way that engenders TRUST and LOYALTY ? 2016+
  54. 54. Thank you Anthony Mullen amullen@forrester.com ll @f t +44 (0)207 323 7733 @ant_mull @ant mull
  55. 55. Marcus Taylor, Venture Harbour BUILDING BRAND VALUE WITH DIGITAL MEDIA
  56. 56. Building Brand Value With Digital Media
  57. 57. Why do we care about building “brand value”?
  58. 58. “Brand Building” Brand Building “Branding” “Build Brand Equity” Build Equity “Brand Enhancement” = “Improving our reputation”
  59. 59. Your reputation precedes you ou eputat o p ecedes If it’s positive, much of your work is done for you.
  60. 60. Why build brand value using digital media?
  61. 61. It s It’s where the eyeballs are
  62. 62. It’s where conversations & buying decisions are taking place.
  63. 63. don t If we don’t our competitors will
  64. 64. Long Term Colleagues Friends & Family Professional Intimate Brands One Night Stands Short Term Credit: Mat Clayton
  65. 65. Those we trust the most... are recommending (through likes,  tweets, and other social signals)… Long Term Friends & Family Professional Intimate I i Brands …Those we trust the least Th t t th l t Short Term Credit: Mat Clayton
  66. 66. H ff ti l ? How d we d it effectively? do do “If one cannot increase the supply of a resource, one must increase its yield” – Peter Drucker
  67. 67. Lower Your Budget, The Lo er Yo r Marketing B dget the Smarter Your Digital Strategy Must Be. Lower budgets can be a blessing in disguise. They force you to think about 1:many (viral) marketing opposed to marketing, the easier 1:1 marketing options.
  68. 68. Quality x Quantity Red Bull own a media company with 135 staff producing branded content.  Their official video content has been viewed over 700,000,000 times.
  69. 69. Create conversions around the brand, not necessarily about the brand.
  70. 70. Emerging opportunities & innovation Mobile advertising is Currently ~1/3rd of the cost of desktop advertising. p g Huge opportunity for cost Effective content distribution.
  71. 71. Buzz + Advocacy Most brands are great at building buzz online, but struggle with advocacy
  72. 72. What are you doing to ensure your brand is getting involved in conversations around your products / services – and is it enough?
  73. 73. Thank you Thank you
  74. 74. Kelvin King, Valuation Consulting Co INDEPENDENCE, INDEPENDENCE INNOVATION AND TRANSPARENCY
  75. 75. INDEPENDENCE, INDEPENDENCE INNOVATION TRANSPARENCY KELVIN KING, MANAGING DIRECTOR KELVIN@VALUATIONCONSULTINGCO.COM WWW.VALUATIONCONSULTINGCO.COM
  76. 76. STRUCTURE PLANNING & VALUATION  Privileges of ownership  What is being transferred, definition and identification  Transfer part of rights  Lowest defendable scenarios  Valuations for exit  Licensing from IP HoldCo
  77. 77. STARTING AT THE TOP AND TRYING TO BUILD DOWN BRAND VALUATION THE LAWS OF PHYSICS AND VALUATION SUGGEST THAT THIS IS NOT POSSIBLE Awareness, perceptual attributes, attitude, loyalty, strategies and ,p p , , y y, g management; just a few of the due diligence areas of examination alongside financial and economic g
  78. 78. ACCOUNTING STANDARDS The US FASB has created a list of what it considers to be a firms intangibles: Market‐related  Trademarks, trade names, service marks, trade dress, newspaper mastheads, internet domain names. Customer‐related  Customer lists, customer contracts, customer relationships, customer agreements. Artistic related  Ballets, books, plays, articles, other literary works, musical words, opera, pictures, photographs, video and audio‐visual material. Contract‐based  Licensing agreements, advertising or service contracts, lease agreements, construction permits, operating and broadcast rights, employment contracts. Technology‐based  Patented technology, computer software, unpatented technology, databases, trade secrets, secret formulae
  79. 79. OCCASIONS FOR VALUING BRANDS  Mergers & Acquisitions  Portfolio review and risk assessment  Arrange a loan – securitisation  Tax purposes  Licensing  Balance Sheet  Joint Ventures and Technology Transfer  Pension deficits  Selling your IP  Distress
  80. 80. WHY ARE WE VALUING?  Tax Valuation and Open Market Value  Fair Value  Fair Market Value F i M k V l  Commercial Value  Investment Value  Owner Value
  81. 81. TOOLS How much?  The determinants for discounted cashflow models How much? The determinants for discounted cashflow models  Gross Profit Differential  – Premium Prices/Premium Profits /  Excess Profits   Relief from Royalty 
  82. 82. USEFUL LIFE How long for (time periods)? How long for (time periods)?  Physical Life y  Functional Life  Technological Life  Economic Life  Legal Life
  83. 83. LICENSING  Many factors affect licensing and royalty rate advice  Deal structure (term, cash, profit etc)  Exclusivity  Relative risks  Investment rates of return  Commercial relationship between parties (fair value is not fair market value and neither is open market value)  Arms length requirements – HMRC and Transfer Pricing
  84. 84. THE LICENSEE/PURCHASER & LICENSOR/VENDOR Four Calculations or Steps – 'can Kelvin count' 1. 2. Intrinsic value of Vendor or Licensor Intrinsic value of Purchaser or Licensee PLUS 1. 2. Intrinsic value of Vendor or Licensor Intrinsic value of Purchaser or Licensee The capital values calculated are an essential step to calculate royalty rate or valuation 
  85. 85. Karl Bygrave, L h F K lB Lush Fresh H d d C h Handmade Cosmetics ti DO ETHICS ADD TO OR SUBTRACT FROM THE VALUE OF A BRAND?
  86. 86. LUSH FRESH HANDMADE COSMETICS Do ethics add to or subtract from the value of a brand? Karl Bygrave, Director, Lush Fresh Handmade Cosmetics
  87. 87. The original Body Shop team (clockwise): Mark Constantine Constantine, Anita Roddick, Deb McCormick © 2013 Lush Fresh Handmade Cosmetics
  88. 88. © 2013 Lush Fresh Handmade Cosmetics
  89. 89. The 10 Company Rules: 1. Value people before profit 1 2. Develop & promote talent from within: 'opportunity hangs in the air’ 3. 3 Take responsibility for our environment 4. Value and serve our customers 5. Benefit from the use of new technology 6. Increase creativity and sales opportunities 7. Create a balanced and profitable business 8. Contain staff and space additions 9. Behave ethically 10. Communicate effectively: 'We need to care about each other and help others' © 2013 Lush Fresh Handmade Cosmetics
  90. 90. LUSH FRESH HANDMADE COSMETICS
  91. 91. 91
  92. 92. What are ‘ethics’ for Lush? ethics © 2013 Lush Fresh Handmade Cosmetics
  93. 93. How do we have an opinion? © 2013 Lush Fresh Handmade Cosmetics
  94. 94. Charity Pot • • • We have donated over £1.3m since 2007 I 2012 we d d £343,895, 37% In donated £343 895 +37% on 2011 In the last 12 months we have donated to 133 groups “…Makes “ M k me feel great inside and out k f l t i id d t knowing th t i that I’m helping others while helping myself ” online customer review Buying/ Slush Fund Our Ethical Buying team: 94 © 2013 Lush Fresh Handmade Cosmetics
  95. 95. Transport Policy • • • We aim to air-freight less than 5% in weight of the raw materials we import. p From February 2009 we asked our staff not to take any UK mainland domestic flights. We have gone from 122 return flights a year to zero. We tax ourselves on flying – for every tonne of CO2 y g y emitted when we fly, we pay £50. More than just campaigning • 95 Our first all female shop opened in Jeddah in March this year © 2013 Lush Fresh Handmade Cosmetics
  96. 96. Does everyone believe in everything? © 2013 Lush Fresh Handmade Cosmetics
  97. 97. Are we doing this to build the business? © 2013 Lush Fresh Handmade Cosmetics
  98. 98. Why do the public know about our ethics? © 2013 Lush Fresh Handmade Cosmetics
  99. 99. Do we upset more people than we appeal to? © 2013 Lush Fresh Handmade Cosmetics
  100. 100. Do ethics add to or subtract from the value of a brand? © 2013 Lush Fresh Handmade Cosmetics
  101. 101. Thank You © 2013 Lush Fresh Handmade Cosmetics
  102. 102. Brand Academy y 2013 Building valuable brands
  103. 103. Giles C Gil Crown, Lewis Silki L i Silkin QUESTIONS? © 2009 Deloitte Touche Tohmatsu
  104. 104. Brand Academy y 2013 Building valuable brands

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