Brand-building has departed from traditional models of awareness, image, and emotion, and has landed in an era of utility. Marketers must compete, more so even than before, for a share of their customers’ busy lives. Utility is what allows brands to deliver on customer expectations and create value in the 1,440 minutes of their day. Vivaldi CEO Erich Joachimstaler names the old era the “World of Walls,” driven by supply, wherein branding serves to insulate from competitors, and the new world: the “World of Webs.” Today’s world is ruled by demand, and brands serve to facilitate connection, interaction, and change. To succeed in this age of disruption, brands and businesses need a new roadmap that harnesses technology and data to connect more deeply with customers and rethink how to work within the larger ecosystem. Erich shares the 4 new principles of building strong brands in this presentation given at the annual Brand Smart event in Chicago.

1. A NEW ERA OF
Erich Joachimsthaler, Ph.D.
BRAND BUILDING
Founder & CEO of VIVALDI
Brand Smart | Chicago | April 26, 2018

2. Insulate from competitors
Create preference / liking
SUPPLY
Facilitate connection,
interaction, and change
DEMAND
WORLD OF WALLS WORLD OF WEBS
V I V A L D I | 2

3. FOUR ERAS OF BRANDING
V I V A L D I | 3

4. “Fast free delivery”
“30 minutes or it’s free”
“Official Pizza of
March Madness”
“Pizza Profiles” allow online
pizza customers to save
their favorites
Domino’s Anyware offers
customers the ability
to order their favorite pizza
from virtually any platform
FOUR ERAS OF BRANDING
VIVALDI V I V A L D I | 4

5. 1. Have a direct connection with consumers
2. Make consumers participants in value creation
3. Build a system around the consumer
4. Ensure systematic learning for continuous improvement
WHAT ARE THE NEW PRINCIPLES OF BUILDING
STRONG BRANDS?
V I V A L D I | 5

6. 1.
HAVE A DIRECT
CONNECTION
WITH CONSUMERS
Car ownership in the World of Walls
requires consumers to adapt
to the brand’s infrastructure:
• Large dealerships
• Tired waiting rooms
• Loaner cars without your radio presets
V I V A L D I | 6

7. Tesla rewrote the car ownership experience for the World of Webs
ORDERING
PROCESS
SOFTWARE
UPDATES
DIAGNOSTICS
PHYSICAL
REPAIRS
Accomplished entirely
online
Sent over-the-air
at night
90% of issues are
identified and resolved
remotely
Mobile service techs
meet owners at their
homes
V I V A L D I | 7

8. In the World of Walls, digital cameras compete
against each other, and highlight product
features (i.e. Canon PowerShot ELPH)
2.
MAKE CONSUMERS
PARTICIPANTS IN
VALUE CREATION
FRAME OF
REFERENCE
COMPARISON
POINTS
PURPOSE
Other digital cameras
Megapixels, Screen Size, Zoom
Save memories for your family
V I V A L D I | 8

9. In the World of Webs, customers actively create and define a brand’s value
FRAME OF
REFERENCE
COMPARISON
POINTS
PURPOSE
Defined by customer
Experience, Connectivity
Share lifestyle with the world
Capture, manage, + share
engaging content
Virally scale product
awareness + enthusiasm
THE GOPRO VIRTUOUS CYCLE
SEAMLESSLY SHARE MEDIA WITH THE WORLD
V I V A L D I | 9

10. • In the World of Walls, this was considered
“brand architecture” (Major brands, sub-
brands, etc.)
• Brands are organized around similarity of
product or service
3.
BUILD A SYSTEM
AROUND
THE CONSUMER
• Brand Architecture: 31 Brands
• Marginally differentiated lines confuse consumers
V I V A L D I | 10

11. Airbnb introduced hospitality for the World of Webs, with a coherent
ecosystem under one name
• In the World of Webs, this is fluid, and
organized around what a brand solves for
• AirBnB solves a need for lodging and a
desire for experiences; it is organized as
one ecosystem under one name
V I V A L D I | 11

12. THE WORLD OF WALLS IS RESPONDING TO PRESSURE FROM THE WORLD OF WEBS
Marriott releases “Moments”
marketplace with 110,000
experiences across 1,000 global
destinations redeemable
with Marriott rewards points,
including partnerships
with Hertz and StubHub
V I V A L D I | 12

13. • For years, data captured on Nike+ shoes
existed in a closed loop, available only
to users
• While run metrics were certainly valuable
to users, Nike did not mine the data for
product development insights
4.
ENSURE SYSTEMATIC
LEARNING
FOR CONTINUOUS
IMPROVEMENT
WORLD OF WALLS
V I V A L D I | 13

14. Nike became the shoe company for the World of Webs by meticulously
tracking its customers’ habits
NIKE 1:1 NIKE APP NIKE RUN CLUB NIKE STORE
Customers with
specific interests
paired with experts,
from stylists to
competitive runners
REGIONAL
SHOES
Customize shoes
with logos and
personalized laces
Register with Nike+
to create a digital
thumbprint for
exclusive awards
AR-enabled shoes
are customized
and 3D printed
in-store in
60 minutes
Release shoe
editions unique
to wants and needs
of specific
US regions
V I V A L D I | 14

15. 1. Have a direct connection with consumers
WHAT ARE THE NEW PRINCIPLES OF BUILDING STRONG BRANDS?
2. Make consumers participants in value creation
3. Build a system around the consumer
4. Ensure systematic learning for continuous
improvement
V I V A L D I | 15

16. V I V A L D I | 16

17. Thank you
Founder & CEO of VIVALDI
Erich Joachimsthaler, Ph.D.
@ejoachimsthaler | ej@vivaldigroup.com