Brands have a great opportunity to create economic value from social innovation. See global best practice cases applied to the context of Iran, the biggest white spot market.

1. CREATING BRAND VALUE
THROUGH SOCIAL INNOVATION
Global Marketing Summit, Tehran, 21st Nov 2015

2. © GOODBRAND 2015
AN ECONOMIC OPPORTUNITY
• Educated population
• Good infrastructure
• Low labour costs
• Strategic access to markets
• Internal stability and security

3. © GOODBRAND 2015
FULL FOCUS ON ECONOMIC GROWTH
IR Iran’s Supreme Leader’s official website
June 2015
Rapid, sustainable economic growth
focusing on employment, mobilizing
all capabilities and facilities of the
country, such that 8% average
growth is fulfilled through the plan
1980 - 2010
average
2012 – 2014
average
2016 - 2021
Government
objective
10
8
6
4
2
0
-2
-4
Annual GDP growth Iran 1980 - objective 2021

4. © GOODBRAND 2015
A LEAPFROG ECONOMY?
Long term annual growth rates (1980-2010)
GDP JOBS HDI CO2
3% 2.5% 1.6% 5-6%

5. © GOODBRAND 2015
ECONOMIC CHALLENGES
Inequality
World Bank
Unemployment: 10.5%

6. © GOODBRAND 2015
SOCIAL CHALLENGES
“The shocking statistics of crime”
More than 4m drug addictsCrime increasing

7. © GOODBRAND 2015
Iranian consumers want brands to take action and contribute to solving pressing social problems
Report on Company’s Social Responsibility, Samsung Iran 2015
A VALUE OPPORTUNITY FOR BRANDS

8. © GOODBRAND 2015
VALUE THROUGH
LOCAL RESONANCE

9. © GOODBRAND 2015
SOCIAL CHALLENGES
Poland 2002:
• Deep economic crisis
• High unemployment
• Many living in poverty
• Low trust in companies and brands
Consumers turned nationalistic:
“buy Polish”
Danone perceived as foreign and losing
loyalty and share to local Polish brands
18.1
19.5 19.3
20.2
21.1
22.5
1.7 2.1 2.2 2.7
3.1 4.1
13.2
10.5
10.4
13
14.5
17.4
0
5
10
15
20
25
1996 1997 1998 1999 2000 2001
People living in poverty vs unemployment rate
Social minimum Subsistence minimum Unemployment rate

10. © GOODBRAND 2015
#1 PUBLIC PARTNERSHIP
Danone’s challenge:
• Re-gain trust and win hearts
• Grow its business in lower socio-
demographic groups
Solution: identified child malnutrition as a
key social issue with business relevance
Partnership with public authorities and
civil society

11. © GOODBRAND 2015
#2 BRAND INNOVATION
Launch of the SHARE YOUR MEAL
campaign
Major cause marketing initiative to promote
awareness of the issue and engage citizens
in a collective response
On pack, PR and above the line
campaign

12. © GOODBRAND 2015
#3 PRODUCT INNOVATION
Development and launch of a new product
range targeted at the Base of the Pyramid
30% of daily micro-nutrient needs of children
Affordable price due to product design,
supply chain and distribution

13. © GOODBRAND 2015
POSITIVE OUTCOMES
The SYM program was an astounding
success for Danone and wider society:
• More than 11 million meals financed
• Turnaround of the brand image into a
“local hero” brand
• Strong penetration increase overall
and in low socio-economic groups
• 65 million units Milky Start sold in 5
years
70
53
57
66
49
30
0 20 40 60 80
The brand I buy
Company that cares
about people
Helps to fight
malnutrition among
hungry children
Jan 03 Oct 03

14. © GOODBRAND 2015
VALUE THROUGH
SUPPLY CHAIN
INNOVATION

15. © GOODBRAND 2015
AGRICULTURE IN NEED
Major challenges in the food supply chain:
• 20% decrease in crop yield forecast
due to climate change
• 40% of crop production at risk due to
water scarcity
• Crop yields are stagnating at a low
level
• Iran a net importer of agricultural
products

16. © GOODBRAND 2015
#1 ADDED VALUE SUPPLY
Nespresso and its partners have helped
coffee farmers deliver transformational
improvements
Working with agricuLtural NGOs and
farmer organisations
• Yields up 26%
• Quality rejections down significantly
• Net income up 23%
• Ability to invest in labor, agro-inputs
and energy

17. © GOODBRAND 2015
#2 LEADING FARM MANAGEMENT
The Nespresso AAA Sustainable Quality
Program brings advanced systems and
management to support farmers
• 70 000 farmers
• 9 countries
• 300 agronomists
• Database of farm visits to monitor
training programmes and KPIs

18. © GOODBRAND 2015
#3 LEVERAGING BRAND VALUE
AAA has become a major asset for the
Nespresso brand
• Guarantee quality and supports
premium brand position
• Unique in the category
• Endorsed by leading NGOs
• Driver of innovation and new
product development

19. © GOODBRAND 2015
POSITIVE OUTCOMES
Awareness of Nespresso AAA and
recycling programmes drives net
promoter score
NPS is a critical driver of profitable
growth for the business