This document outlines the marketing value chain for building an iconic brand that increases shareholder value. It discusses that iconic brands develop deep emotional attachments with consumers, gaining status beyond functional benefits. This allows them to achieve sustainable competitive advantages through strong emotional bonds that are difficult for competitors to replicate. If utilized correctly, this competitive advantage can drive volume growth and price increases. Iconic brands also offer lower risk investments with significant opportunities to further build brand value. When managed properly, iconic brands deliver sustainable cash flows in excess of their cost of capital, creating shareholder value through increased dividends and share prices.

1. How marketing
grows shareholder
value

2. The Coup Factory Value Chain

3. The Coup Factory Marketing Value Chain©
A status that transcends
functional benefits an
Iconic Brand
Sustainable Competitive
advantage via the
marketing mix
Volume growth
Increased prices
Lower Risk Investments
Sustainable discounted
cash flows in excess of
cost of capital
Shareholder Value
(Increased dividends and
share price)

4. A status that transcends functional
benefits an Iconic Brand
Sustainable Competitive advantage via
the marketing mix
Volume growth
Increased prices
Lower Risk Investments
Sustainable discounted cash flows in
excess of cost of capital
Shareholder Value (Increased dividends
and share price)
Iconic Brands
An Icon - A person or thing regarded as a representative
symbol or as worthy of veneration.
Oxford English Dictionary
“Consumers flock to brands that embody the ideals they
admire, brands that help them express who they want to be.
The most successful of these brands become iconic brands”
Douglas B Holt (How brands become Icons)
From Coke to Apple, from Harley to Absolut, Iconic brands
develop deep emotional attachments with their target
audience, gaining the brand a status that transcends
functional benefits. Their consumers become
apostles, loyally following and supporting the brand.

5. Sustainable Competitive Advantage
Via a quality product underpinned by compelling
advertising, Iconic brands develop incredibly strong
emotional bonds with consumers. Unlike functional
benefits these are extremely difficult for competitors to
replicate, in effect giving these brands a powerful,
sustainable, competitive advantage.
A status that transcends functional
benefits an Iconic Brand
Sustainable Competitive
advantage via the marketing mix
Volume growth
Increased prices
Lower Risk Investments
Sustainable discounted cash flows in
excess of cost of capital
Shareholder Value (Increased dividends
and share price)

6. Superior Brand Performance
This competitive advantage will, if correctly utilized,
drive superior brand performance. Notably via volume
growth (increased demand/usage) and achievement of
price premiums (increased brand loyalty/brand
desirability.)
From an investment perspective given the brands Iconic
status they offer lower risk and higher long term
earnings potential with significant opportunities to
further build the brands value via category leadership,
new market penetration, line extensions etc.
A status that transcends functional
benefits an Iconic Brand
Sustainable Competitive advantage via
the marketing mix
Volume growth
Increased prices
Lower Risk Investments
Sustainable discounted cash flows in
excess of cost of capital
Shareholder Value (Increased dividends
and share price)

7. Discounted Cash Flows
This superior brand performance will in turn, if properly
managed, deliver sustainable positive cash flows -
Strong cash inflows via volume growth and pricing.
Reduced outflows by more effective marketing spend and
possible cost reductions driven by economies of scale.
Superior brand and financial performance underpinned by
a sustainable competitive advantage will also decrease
perceived investor risk reducing the cost of capital. Thus
further assisting the brand in delivering outstanding
discounted cash flows.
A status that transcends functional
benefits an Iconic Brand
Sustainable Competitive advantage via
the marketing mix
Volume growth
Increased prices
Lower Risk Investments
Sustainable discounted
cash flows in excess of
cost of capital
Shareholder Value
(Increased dividends and share price)

8. Shareholder Value
Shareholder value considers cash flows the lifeblood of business.
The basic principle behind shareholder value is to earn investors a
higher return than they could earn themselves by investing in other
assets.
Managers create value when they invest to maximize the present
value of long-term free cash flows. The premise is that if a
company builds value, earnings and the stock price will follow.
One of the most effective ways to deliver this value and
ensure strong future cash flows is by achieving and
then maintaining Iconic status for your brand.
Capital Allocation
Decisions
Shareholder Value Stock Price and
Dividends
A status that transcends functional
benefits an Iconic Brand
Sustainable Competitive advantage via
the marketing mix
Volume growth
Increased prices
Lower Risk Investments
Sustainable discounted cash flows in
excess of cost of capital
Shareholder Value
(Increased dividends
and share price)

9. The Building Blocks to an Iconic Brand

10. What is an Iconic Brand?
OK so what is an Iconic brand, the Oxford English dictionary defines an icon as “A person or
thing regarded as a representative symbol or as worthy of veneration.” In other words it’s
something that has a special place in the hearts and minds of its consumers. This is more than
just being a successful brand, it’s all about establishing a place in the pantheon of modern
culture.
While some Iconic brands are easy to identify, Coke, Harley, Apple, Nike, Marlboro and the VW
Beetle to name a few, others are probably more arguable - why?- because iconic status
ultimately lies in the eyes of the beholder and how that brand has helped to define them, hence
different cultures, age groups and people will have different views. Ultimately though Iconic
brands have one other criteria, they have proven incredibly successful, generating significant
volume and earnings over a long period of time for their owners and shareholders.
So Iconic status is highly profitable and therefore highly desirable, so how do you achieve it?
Well, over the next few pages we will outline our perspective in how to make it happen. Enjoy!
The Building Blocks to an Iconic Brand

11. The Building Blocks to an Iconic Brand
The Coup
Factory“Iconic
Brand Model”©

12. The Building Blocks to an Iconic Brand
The Coup
Factory“Iconic
Brand Model”©

13. COMMUNICATION PRINCIPLES - An explanation
Aspirational: More a mindset thing as a price thing - Although premium pricing can
certainly help - An aspirational message strikes a cord with your target in regard to who they
are or want to be.
Don’t get confused, this is not necessarily about aspiration in a upmarket kind of way, but rather
aspirational in regard to the target audiences dreams and desires. It could be to escape the
pressures of modern life, to be creative or maybe to just be themselves. From the freedom and
adventure of the Marlboro cowboy, to the creative and witty world of Absolut, to the anti hype
bohemian message of the VW Beetle, iconic brands have always had the ability to present an
aspirational and pertinent message as an underlying pillar of their communication.
The Building Blocks to an Iconic Brand

14. COMMUNICATION PRINCIPLES- An explanation
Inspirational: In addition to being aspirational, truly iconic brands are also inspirational, not
just striking a cord in regard to their audiences desires but then spurring them on with a
yearning to do or experience something. This call to action can be as simple as encouraging a
leisurely drive or as ambitious as having the courage to try to change the world.
From Nikes “Just Do It” ethos, Cokes “teaching the world to sing” or Apples “Think
Different” ads, Iconic brands are able to inspire their audience, filling them with an urge to do
or feel something way in excess of regular brand communication.
The Building Blocks to an Iconic Brand

15. COMMUNICATION PRINCIPLES- An explanation
Differentiated: Probably obvious but no less important Iconic brands, when communicated
properly, stand out from the crowd. This desire to be positively different, assists in building the
brands leadership credentials, and ensures a unique and memorable positioning in the mind of
the consumer.
From VW Beetle and Apple to Absolut, Iconic brands adverts have stood out from the norm,
achieving memorable, eagerly anticipated, clearly differentiated and highly successful
communication approaches.
The Building Blocks to an Iconic Brand

16. COMMUNICATION PRINCIPLES- An explanation
Symbolic: Another important aspect in order to gain Iconic status is to load your communication
and therefore your brand with powerful symbolic messages in order to ensure it represents or
stands for something more than just a simple product.
When positioned properly iconic brands offer much more than just a functional benefit. From
Apple to Coke from Nike to Harley iconic brands epitomise a mindset and way of life that enables
them to play a fundamental role in helping to shape a consumers identity. They achieve this by
using strong symbolic messages and imagery to capture their consumers attention and
imagination.
Be it Apple’s “1984”, Marlboro Country, Nike’s “Just do it” or Coke’s “Mean Joe Greene”
Iconic brands have symbolically told stories that have cemented their reputation in the consumers
psyche. Filling an apple, a chevron, a swoosh or a bottle shape with meaning way beyond their
initial form.
The Building Blocks to an Iconic Brand

17. COMMUNICATION PRINCIPLES- An explanation
Credible: Last but not least Iconic brands stand apart from the competition in the way they are
able to portray their messages in a credible and authentic way. Its all about ensuring your brands
communication is delivered and maintained in a believable way both in how this fits your product
offering and in the minds of your target consumers.
Apple wouldn’t be the creatives choice if it hadn’t developed distinctive products that truly
helped their audiences creativity. The VW Beetle wouldn’t have become a symbol of the hippie
generation if it hadn’t been for its communication and quirky design, that enabled the brand to
position itself as a clever, creative and credible bohemian insider.
But be warned credibility is also a case of knowing what you’re not as much as what you are.
Iconic brands are successful via a singleminded focus on what they stand for, any move that
undermines that , no matter how potentially profitable, can erode a brands credibility and
ultimately its iconic status.
The Building Blocks to an Iconic Brand

18. A compelling story with cultural resonance - An explanation
Ok, the last piece of the jigsaw, its all about putting the communication principles together to
form a compelling story with cultural resonance.
Its all about developing a powerful story that evokes attention and admiration by ensuring it
relates to real and important matters of life in the minds of your consumers.
From Apple to the VW Beetle to Absolut to Nike to Coke, these brands have been able to achieve,
compelling stories that have resonated culturally with their target audience. Also by ensuring
these stories have been inspirational, aspirational, different, symbolic and credible they have
enabled these brands to become icons, earning a special place in the hearts and minds of their
consumers, as well as significant sustainable earnings.
The Building Blocks to an Iconic Brand