How to ensure each customer interaction is a coherent expression of the brand when different functions within the organisation are responsible for creating them?
Today’s CMOs need to create internal alignment in order to deliver a coherent brand experience to their customers.
To do this, they need a simple framework that can:
- align the organisation around a clear set of brand priorities
- bring meaningful improvements to the customer experience today
- deliver long-term brand value
“I know that our business success is dependent on a strong brand. What I need is a way to engage the entire organization so that cross-functional teams can understand the role they should play today in improving brand performance tomorrow.” Roel de Vries, CMO, Nissan
Interbrand London hosted a breakfast workshop in December 2015 and used the Nissan and Guinness World Records brands to demonstrate how the Brand Strength framework can be used to generate valuable insights, identify priority areas and define an action plan for brand and business growth.
2. To arm you with ideas for how you can:
Align your organisation around a clear set of brand
priorities
Bring meaningful improvements to the customer
experience today
Deliver long-term brand value
Our objective for today
| Interbrand Accelerator | London | 10 December 20152
3. The objective: To deliver on your business strategy, through your brand…
Business Strategy
Brand
Customer Experience…by delivering a
seamless and
coherent brand
experience for
customers across
touchpoints
| Interbrand Accelerator | London | 10 December 20153
4. But to deliver a seamless customer experience CEO’s and CMO’s face a major challenge
CMO
Retail
Experience
Social
Media
Customer
ServiceCRM
Team
Digital
TeamSales
Team
Marketing
Team
Product
Team
Comms
IBE
Media
Channels
Product
People
HR
Team
Media
Team
Int.
Comms
Team
| Interbrand Accelerator | London | 10 December 20154
5. This can be compounded by multiple external partners and geographies
CMO
Social
Media
Digital
Team
Marketing
Team
Comms
Media
Channels
Media
Team
North
America
Africa
South
America
Middle
East
Asia
Agency
1
Agency
2
Agency
3
Agency
4
Agency
5
Agency
6
| Interbrand Accelerator | London | 10 December 20155
6. Agency
Agency
Agency
Agency
Agency
Agency
AgencyAgency
What is needed is internal brand alignment to deliver external brand coherence
CMORetail
Experience
Social
Media
Customer
Service
Comms
IBE
Media
Channels
Product
People
CRM
Team
Digital
Team
HR
Team
Int.
Comms
Team
Product
Team
Sales
Team
Media
Team
Marketing
Team
| Interbrand Accelerator | London | 10 December 20156
8. We know strong brands generate superior financial returns
0
20
40
60
80
100
120
140
160
180
200
220
240
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
BGB 100 S&P 500 MSCI World
Best Global Brands portfolio versus
S&P 500 and Morgan Stanley Composite World Index
Source: Interbrand analysis with data sourced from Thomson Reuters and Best Global Brands
Indexesto2000valuesequaling100
| Interbrand Accelerator | London | 10 December 20158
9. | #3 Widescreen | Interbrand | February 6, 20159 | Interbrand Accelerator | London | 10 December 20159
A case study
example
10. 10
Juke Nismo
We have been working with Nissan for 3+ years now
• A strong company that punches
under its weight
• Historically, globally fragmented
• Heritage as engineering business
more than a customer business
| #3 Widescreen | Interbrand | February 6, 201510 | Interbrand Accelerator | London | 10 December 201510
11. With challenging targets, Nissan needed a way to building and manage its brand globally
Our business success is dependent
on a strong brand. What I needed
was a way to engage the entire
organization so that cross functional
teams could prioritize what they were
doing and understand the role they
should play in improving brand
performance.
—Roel de Vries, CMO, Nissan Motor Limited
| Interbrand Accelerator | London | 10 December 201511
12. A dedicated Interbrand team work with the top 14 markets to drive brand activation in the
regions
Regional
Brand
Engineer
Americas
Regional
Brand
Engineer
AMIE
Regional
Brand
Engineer
APAC
Global Brand
Engineer
Regional
Brand
Engineer
China
| Interbrand Accelerator | London | 10 December 201512
13. What we do in each market on an ongoing basis:
First:
Analyze
Second:
Prioritize
Third:
Activate
| Interbrand Accelerator | London | 10 December 201513
14. The Foundation – The annual Brand Strength Analysis
We asses the brand across the 10 dimensions of Brand Strength using carefully selected quantitative
and qualitative data.
14
• Moves away from the cruder
measures of ‘overall opinion’ or ‘net
promoter score’
• The brand strength analysis gives
strong direction when developing
strategy
• It also provides a globally common
‘language’ for senior management to
use.
• We undertake 15 regional analyses
for NIssan.
First:
Analyze
15. Nissan’s brand value experienced double digit growth every year since 2011
Nissan’s brand value has
grown by over $5 bn in 4 years,
an increase of 138% or almost 25%
per year (compound).
Over the last year, Nissan’s brand
value increased by $1.46 Bn, or
19%. Although this percentage
increase is in decline, the growth is
from a higher base, and is still
almost double competitors’. The
average level of automotive brand
value growth last year (excluding
Nissan) was 10%.
0
5
10
15
20
25
30
Toyota VW Ford Hyundai Nissan Kia
Averagebrandvaluegrowth%2011
-15
| Interbrand Accelerator | London | 10 December 201515
16. Benefits for Nissan
1. Actionable and forward-looking tool to help determine what to do next
2. Focus – Strategic focus and consistency
3. Alignment - builds a sense of responsibility and a common language
for the brand
4. Fresh, independent perspective from brand engineers: dedicated
‘hybrid’ agency/client staff
5. Marketing/brand best practice ‘on tap’ internal capability
supplemented by latest brand thinking, tools etc
6. Deeper global alignment of agencies, and between regions. IB
strategy guides diverse agencies within and between regions
| Interbrand Accelerator Workshop | 10 December 201516 | Interbrand Accelerator | London | 10 December 201516
Morning, thanks for coming, Mike to introduce himself
We’re framing the problem that our Accelerator approach solves in this way…
The ultimate objective – to deliver on your business strategy, through your brand, which is where and how your key audiences interact with your business, by delivering a seamless and coherent experience for customers across touchpoints
Take-away
The chart shows the market value of the BGB portfolio falling by less than the benchmarks in both recessions, providing evidence that strong brands protect/shield businesses in a downturn. The BGB portfolio also outperforms in the upturns (particularly the most recent one), providing evidence that strong brands act as accelerators for businesses in periods of recovery and growth.
Methodology - overview
Effectively, we assume that we invest in the BGB portfolio at the beginning of each year, calculate the total returns for the brands in that year and then assume that we sell that portfolio at the end of the year. We then re-invest the money in the new portfolio for the following year, and so on. The portfolio changes each year as brands enter and leave BGB hence the need to sell and re-invest in the new portfolio each year.
Methodology - detail
The analysis uses “TR Total Return” (TR) data for the portfolio set to September 30th of each year. It assumes the value for year X is the value for year X-1 grown by the indexed growth rate for the last year. The indexed growth rate is the TR rate of each brand weighted by their brand value in year X-1. Brands are not included in either growth or the weighting if we lack data.
Where one or more brands are part of a parent company, we’ve used the parent company as that is how someone could invest. Like other brands, they are weighted in by brand value.
Following private brands are excluded through lack of data: Absolut, Armani, Bacardi, Chanel, IKEA, Levi’s, Rolex, Swatch, Wrigley (after the MARs purchase).
We lack full data history from Thomson Reuters for brands that have moved in and out of public/private ownership: Budweiser, Burger King, Compaq, Dell, Duracell, Ericsson (and Sony Ericsson), Financial Times, Gillette, Heinz, Kodak, Kraft, Reuters, Sun Microsystems, Wall Street Journal.
Additional notes
The analysis was originally inspired by “Brands Matter: An Empirical Investigation of Brand-building Activities and the Creation Of Shareholder Value”, Thomas J. Madden, University of South Carolina, Frank Fehle, University of South Carolina, Susan M. Fournier, Harvard University, 2002.
Introduction. Nissan case study. My role is an integral ‘accelerator’ role.
4th BIGGEST. Nissan motor corp. is the world’s 4th biggest producer of cars (Nissan, Datsun, Renault, Infiniti) selling about 9m cars annually.
It’s the world leader in 100% Electric cars.
Is highly advanced in autonomous drive cars.
Produces a supercar which does 0-60 in 2.9 seconds…
Roel de Vries.
FINANCIAL TARGETS. Senior management recognized that the financial targets they set themselves required a strong, global brand. This is where the accelerator model appealed to them.
NOT ONE SIZE FITS ALL. It’s worth saying that, the accelerator model is not a ‘one size fits all approach’, so distinctive to Nissan, is that we also work within a structure called Nissan United, where diverse Omnicom agencies collaborate closely to produce aligned strategies and activations.
Global presence
So in each of Nissan’s key regions, we have a Regional brand strategist which we call a brand engineer.
We have 7 globally – 3 in the Americas, One in EMEA, One in Japan and one in China.
We are dedicated Interbrand staff, coordinating with Nissan United and working v. closely with Nissan.
BSM underpins much of our work
BESPOKE: We have a dedicated version co-created with Nissan, called the Brand Power Model
DECONSTRUCT: Many companies look at just one measure such as NPS or overall opinion –which limits understanding of causes to management prejudice or conventional wisdom. (Like an employee appraisal which just says above or below expectations with no narrative). We deconstruct brand into 10 dimensions, which helps to pinpoint areas of weakness or strength, and is therefore much more robust.
COMMON: It also gives a common language globally so that managers from different regions can discuss brand meaningfully with the same understanding
Brand value growth.
Nissan has undertaken a lot of positive brand strategy initiatives, of which the accelerator model is a part. And over the last 5 years, Nissan has been the fastest growing automotive brand the 100 best global brand. While we don’t claim this, we are able to provide a fresh perspective, robust insight and support strategy development and implementation.
In summary
Outside Inside view
Best practice on tap
Deeper global alignment