The document discusses measuring return on investment (ROI) for brand value. It suggests that ROI is determined by three indices: financial, organizational, and brand. The financial index monitors the difference between a company's market capitalization and the net present value of its cash flows plus book value. The organizational index monitors employee engagement levels. The brand index monitors how distinct and relevant a brand is to customers. Measuring these three indices can help companies understand the ROI generated by their brand.

1. Brand Value
Measuring ROI
March 12, 2013

2. Brand can enable
a company to
become the go-to
for a category and
its inherent value.
March 12, 2013 p.2

3. But It’s Challenging
“We
have
lots
of
services,
loads
of
technology,
great
products
and
tons
of
assets.
But
customers
don’t
care.
They
want
to
know,
‘What’s
in
it
for
me?’
”
VP
of
Global
Branding
Ci#bank
 e M c G l o w n G r o u p.com March 12, 2013 p.3

4. 1. IDEAL
Craft a beacon to attract and
motivate employees in concert,
while driving innovation toward
higher-order benefits.
Steps to Attain 2. POSITIONING
Succinctly define your category
Brand Value role(s) through bold claim of
distinguishable benefits.
3. ARCHITECTURE
Make it easy for people, inside
and outside of your company, to
shop and explain the portfolio of
offerings.
BRAND ALIGNMENT. Inside & Outside. p.4

5. Strong brands outperform the S&P 500.
* WPP / Bloomberg /
Datamonitor rankings and
results based on brand value,
brand contribution, brand
momentum and brand value as
percentage of market cap
Study includes following
categories: Apparel, Beer,
Bottled Water, Cars, Coffee,
Fast Food, Financial
Institutions, Gaming, Insurance,
Luxury, Mobile Operators,
Motor Fuel, Personal Care,
Retail, Soft Drinks, Spirits,
Technology
March 12, 2013 p.5

6. Brand drives shareholder value intangibles.
100
THE BLUE Box
90
Brand is the primary driver
80
40% of unexplained market cap.
Total
Shareholder
Value
(%)
70
60
Net present value
of cash flow
50
25%
40
30
Company
book value
20
35%
10
March 12, 2013 p.6

7. Measuring ROI

8. ROI is determined by three indices.
1. Financial
2. Organizational
3. Brand
 e M c G l o w n G r o u p.com March 12, 2013 p.8

9. 100
90
ROI 80
40% Brand
Total
Shareholder
Value
(%)
70
(Financial Index) 60
50
25% Net present value
of cash flow
40
Monitor the Blue Box 30
= Market Cap – (NPV Cash 20
35% Company
book value
Flow + Book Value) 10
BRAND ALIGNMENT. Inside & Outside. p.9 March 12, 2013

10. “Only 37% of employees feel they clearly
understand what their organization
is trying to achieve, and why.”
– Stephen Covey, The 8th Habit
ROI 2008 Harris Interactive Fortune 1000
Disengaged
(Organizational Index) 24%
71% Indifferent
76%
Will undermine or
Monitor Engagement simply don’t care
about the brand
= Function + Social + Engaged
Emotional 29%
Know how to create
relevant brand value
BRAND ALIGNMENT. Inside & Outside. p.10 March 12, 2013

11. ROI
(Brand Index)
Monitor Distinction
= Uniqueness +
Relevance
BRAND ALIGNMENT. Inside & Outside. p.11 March 12, 2013

12. For follow-up
questions, please
contact: Lawrence McGlown
MANAGING DIRECTOR
{317} 800-8319
lawrence@themcglowngroup.com