Brand Value Creation in a World of Accelerating Change
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Vermeer presented at the 2016 CAGE conference and discussed the urgency of creating brand value in a world full of disruptions.
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Brand Value Creation in a World of Accelerating Change
- 1. March 2016 Brand Value Creation in a World of Accelerating Change
- 2. 2
- 3. 3 BRANDZ™ is the world’s largest brand equity database Covers over 50,000 of world’s biggest and key local brands Major investment Running since 1998 Commissioned by WPP Over 2000 separate studies across 30 countries 1,000,000 consumers and B2B customers in 443 categories
- 4. 4 BRANDZ™ Top 100 Global Ranking published annually in the FT Source: Millward Brown Vermeer (including data from BrandZ, Datamonitor, and Bloomberg) *The Brand Value of Coca-Cola includes Lites, Diets and Zero ENDORSED BY BRANDZ™ Top 10 Most Valuable Brands 2015
- 5. 5 212 Billion devices 2008 2015 2020 7 Billion 25 Billion ! Connected Society Data People Process Devices 27 times more connected devices than people by 2020
- 7. 7 This is the Age of the Connected Consumer 1900 - 1960 1960 - 1990 1990 - 2010 2010 - PRESENT Age of Manufacturing Age of Distribution Age of Information Technology Age of the Connected Consumer
- 8. 8 There will be winners and losers
- 9. 9 Short-termism growing – CAPEX at lowest levels since 2010 Goldman Sachs Research forecasts a 5% global capex decline in 2016 that will kick off the first multiyear downturn since the early 1990s
- 10. 10 New record levels of M&A – focused on cost cutting
- 11. 11 But, revenue growth drives outperformance
- 12. 12 And strong brands drive long-term outperformance Businesses with strong brands command higher share prices BrandZ™ Strong Brands Portfolio vs. S&P 500 (Apr 2006 - Mar 2014) Source: Proprietary BrandZ™ brand strength data; Bloomberg; Vermeer analysis
- 13. 13 Investors are becoming increasingly impatient - holding shares for < 1 year
- 14. 14 And demand accountability from executives AIG settles with Activist Carl Icahn U.S. banks targeted by activist investors on merger wave hopes Activist Investors question United Airlines CEO’s Board
- 15. 15 Deluge of data points questions strategy every minute of every day
- 16. 16 Brands become a lens for short-term investment allocation
- 17. 17 We must become better portfolio managers than our shareholders …. all impacting the return per $ spent on media Market Opportunity Brand opportunity Media Effectiveness
- 18. 18 Thought leadership on building brand value
- 19. 19 Consumer-Centricity As The Only Sustainable Advantage The Insights2020 study is focused on developing the strategic framework, practical guidelines, case studies and engagement opportunities to help marketing, insights and analytics leaders 60 Markets 400 Industries & Sectors 337 Vision Interviews 10,495 Survey Respondents Founding Partners I2020 Advisory Board
- 20. 20 Consumer-centricity drives disproportionate revenue growth Consumer-Centricity (%)
- 21. 21 Challenges
- 22. 22 Opportunities
- 23. 23 Challenges
- 24. 24 Key dimensions of consumer-centricity INSIGHTS ENGINE CONSUMER OBSESSIONTOTAL EXPERIENCE CONSUMER CENTRIC GROWTH
- 25. 25 Ten drivers of consumer-centricity 8. Leading role of I&A 9. Unlocking the power of data 10. Critical capabilities 4. Embraced by all 5. Leadership priority 6. Collaboration 7. Experimentation 1. Purpose-led 2. Data-driven customization 3. Touch point consistency CONSUMER CENTRIC GROWTH
- 26. 26 Purpose-led Overperformers on Revenue Growth Underperformers on Revenue Growth
- 27. 27 Purpose-led
- 28. 28 Identify & embed a consistent “north star” and drive value growth Purpose is the brand’s inspirational reason for being – “why the brand exists” and the impact it seeks to make in the world
- 29. 29 Building total brand experiences
- 30. 30 Bring the purpose to life through creating a consistent, total experience B R E A C H O F P R I V A C Y I N C O N S I S T E N C Y DEPTHValueProposition B R E A D T H# of Touch Points and Experiences
- 31. 31 Total experience inspires to innovate and stretch to new territories “WE EXIST TO FUEL YOUR THIRST FOR LIFE”
- 32. 32 Drive a whole-brain culture of AND 71% of Over-performers find Whole-brain thinking a critical capability
- 33. 33 Accountable AND consumer-centric marketing is the last function to escape linearization
- 34. 34 Structure your business to put marketing at the heart and drive strategy
- 35. 35 Diagnose your degree of consumer-centricity, uncover growth potential
- 36. 36 Brands help us deliver in the short term AND in the long term By: • driving profit growth • shaping new territories • creating agile organizations
Editor's Notes
- Don’t worry! This is a story about when I realised the power of brands. My grandfather cried when my dad bought a Cadillac..
- The age of disruption is the new constant – Look outside and you see companies that are creating… New touch points BURBERRY DIGITAL CATWALK New solutions BOA ONLINE CHECKS Total Brand Experience FUELBAND Categories redefined UBER
- Strong brands are able to grow their share prices more than companies with weak brands Strong brands allow companies to achieve higher share prices in good times Strong brands protect the business in times of crisis
- Every moment of every day you receive an email that makes you question your LT strategy SAP business performance in real time…. Hard to maintain LT perspective - tempted to act on short term
- MB Vermeer creates industry leading IP and forward-thinking marketing best practice MB Vermeer partners with leading brands like Google to help shape the marketing agenda and discussion MB Vermeer created Marketing2020 – the biggest and most global marketing leadership initiative ever MB Vermeer’s Insights2020 delivers strategic frameworks and practical guidelines to help Marketing and Insights & Analytics leaders drive Consumer-centric growth
- The Insights2020 study is focused on developing the strategic framework, practical guidelines, case studies and engagement opportunities to help marketing, insights and analytics leaders: Define the role of I&A in driving business strategy and growth Build and organize this function for success Emulate the leadership competencies and behaviors of over-performing organizations
- Consumer-centric companies are growing revenue faster than their competitors and are creating personalized, experiential value propositions based on data-driven insights. Over-performers are fostering a more Consumer-centric business culture and prioritizing the alignment of their Insights & Analytics strategy, structure and capability. Insights2020 focuses on what it takes to win and how to drive a more Consumer-centric mindset and approach within the organization.
- Consumer-centric companies are growing revenue faster than their competitors and are creating personalized, experiential value propositions based on data-driven insights. Over-performers are fostering a more Consumer-centric business culture and prioritizing the alignment of their Insights & Analytics strategy, structure and capability. Insights2020 focuses on what it takes to win and how to drive a more Consumer-centric mindset and approach within the organization.
- Consumer-centric companies are growing revenue faster than their competitors and are creating personalized, experiential value propositions based on data-driven insights. Over-performers are fostering a more Consumer-centric business culture and prioritizing the alignment of their Insights & Analytics strategy, structure and capability. Insights2020 focuses on what it takes to win and how to drive a more Consumer-centric mindset and approach within the organization.
- Big insights, Purposeful positioning, total Experience
- Conclusion: Brands drive profit. Brands drive future profit. Brands drive future growth. Brands can bridge this paradox, because they drive human growth by connecting consumers to meaningful products and experiences, by connecting employees to meaningful workplaces, and connecting company strategies to innovation and reinvention. Most importantly, brands drive human growth. The first budget to be cut in a downturn and the last budget to be raised in strong times, let’s re-think the role of marketing. Today, it is more essential than at any time in prior history to CREATE. Let’s acknowledge marketing’s opportunity to play that role in our ecosystems and look to our brands to inspire our shareholders, ourselves, and our neighbors to a brighter future.