The Marketing2020 study by Millward Brown Vermeer looks at the opportunities and challenges facing global marketing leaders, and gives answers on how to future-proof marketing organizations, focusing on the role of marketing in delivering the business strategy, the best way to structure the marketing department and how to build capabilities and equip marketers for success.
3. Unleashing brand-led business growth
The journey to brand-lead business growth
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STRATEGY
Where to play &
how to win?
▪ Segmentation
▪ Market Sizing &
Market Entry
▪ Category & Brand
Portfolio Strategy
PURPOSE
What to stand
for?
▪ Brand Positioning
▪ Brand Architecture
ORGANIZATION
How to organize for
delivery?
▪ Operating Model &
Ways of Working
▪ Global Brand Team
Effectiveness
EXCELLENCE
How to equip for
sustainable growth?
▪ Marketing Academy
Design
▪ Learning Experience
VALUATION
What is the
financial impact?
▪ Brand Valuation
▪ Return on
Investment
4. Unleashing brand-led business growth
Strategy
4
Vermeer developed and rolled out the
AB InBev consumer segmentation, brand
portfolio, and positioning strategy globally.
5. Unleashing brand-led business growth
Purpose
5
Vermeer led the unlocking and embedding of
the Whiskas global brand purpose with our
proprietary mass-qualitative storytelling
methodology.
6. Unleashing brand-led business growth
Valuation
6
Vermeer is Red Bull’s partner in measuring the
brand value impact and sales effectiveness of
the marketing and business mix of activities
around the world.
7. Unleashing brand-led business growth
Excellence
7
Vermeer supported the Way of Marketing
codification, learning curriculum and content
creation, and the roll-out of Hershey’s highly
successful global marketing training academy.
8. Unleashing brand-led business growth
Organization
8
Vermeer designed and implemented the
detailing of the new marketing operating
model for Pernod Ricard Americas.
9. Unleashing brand-led business growth
BRANDZ™ Top 100 Global Brand Ranking
We power the industry benchmark for brand valuation
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PUBLISHED BY
The most robust and reliable global brand ranking
Detailed financial models linked with the BrandZ™
database covering 50,000 brands, 30 countries,
and 1.5 million people
Includes predictive metrics that allow us to pinpoint
brands likely to increase in value in the near future
11. 11
The most comprehensive and global marketing
leadership initiative ever undertaken
Focused on aligning marketing strategy,
structure and capability with business growth
Contributions by over 250 CMOs, CEOs and
Marketing Thought Leaders and over 10,000
marketers from 92 countries
Partners included the WFA, WARC, ANA,
Spencer Stuart, Forbes and advertising
associations from 10 markets
Harvard Business Review cover story
Marketing2020
The most comprehensive and global marketing leadership initiative ever
33. 39%
35%
48%
52%
30%
35%
40%
45%
50%
55%
We have right data and analytics available to
measure marketing effectiveness
We are able to leverage all data
and analytics available
to improve our marketing effectiveness
Underperform
Overperform
Big Insights
Purposeful Positioning
Total Experience
34. Purposeful Positioning
Big Insights
Purposeful Positioning
Total Experience
8%
70%
0%
20%
40%
60%
80%
I believe that brands with a clear societal purpose will drive
more business growth
Disagree
Agree
38. 30%
40%
50%
60%
70%
80%
Q9 Market share Q11 Lead
generation
Q13 Marketing
efficiency
Q14 Net promoter
score
Q15 Consumer
engagement
Q16 Revenue
growth
Q17 Marketing
return on
investment
Q18 Brand health
Impact of having a societally purposeful brand
on marketing KPIs (current performance versus competition)
With purpose Without purpose
38
Purpose drives business growth
Advantages to be achieved
41. Nike’s share of experience
0
1
2
3
4
5
6
7
8
9
10
Price of
shoe and
system
Heart rate
monitoring
Running
computer
Quality
of shoe
Brand
image, self-
identification
Tracking
runs
Motivation
to run
Integrating
music and
running
Participating
in social
network
Emotional
association
with running
experience
QualityofExperience
Key Elements of the Customer’s Experience
Nike Experience Curves
Perspective of the RunnerHigh
Low
41
46. 38%
19%
54%
46%
10%
20%
30%
40%
50%
60%
Marketing works closely with the CEO to
establish the company’s strategic growth
agenda
Within the organization marketing is
regarded as a more strategic partner for
driving business growth
2006 2013
Big Insights
Purposeful Positioning
Total Experience
Marketing Influence
47. “Marketing works closely with the CEO …
64%
50% 49%
34% 41%
30%
38% 39%
47%
42%
6% 12% 12% 19% 17%
CPG
Manufacturing
Financial
Energy
&Utilities
HealthCare
Always Sometimes Rarely
47
Marketing’s Influence
Big Insights
Purposeful Positioning
Total Experience
49. Inspire: Engage internally
72
43
47
84
60
63
40
50
60
70
80
90
I am proud of my brand’s purpose In our company we ensure that all
employees are fully engaged with our
brand purpose
We continuously engage
our consumers and customers
around our brand’s purpose
Under Perform Overperform
Big Insights
Purposeful Positioning
Total Experience
49
52. “I support the global strategy of the brand I am working for - % AGREE”
EVP VP/MD Manager Other
Global 83% 80% 83% 82%
Regional 72% 74% 75% 73%
Local 66% 64% 63% 56%
Communicate, Communicate …
Big Insights
Purposeful Positioning
Total Experience
54. Collaborating more closely with IT,
Finance and HR
% Always
29%
14%
30%
37%
22%
37%
10%
20%
30%
40%
Marketing works closely with IT Marketing works closely with HR Marketing works closely with Finance
Underperform Overperform
Big Insights
Purposeful Positioning
Total Experience
55. More agencies
% that works with more than 5 agencies
31%
42%
20%
30%
40%
50%
# agencies
Underperform Overperform
Big Insights
Purposeful Positioning
Total Experience
58. … and better
60
48
20
40
60
% who rate quality of training program >6 (scale o
Over-performers Rest
Big Insights
PurposefulPositioning
Total Experience
59. Marketing capabilities have the strongest correlation to revenue growth,
brand health and MROI…
Growing marketing excellence
24 26
15
42
52 50
10
20
30
40
50
60
Consumer Understanding &
Insights
Brand Positioning Brand Strategy
Underperform
Big Insights
Purposeful Positioning
Total Experience
59
No I’m not Benoit… Instead of a Frenchman your getting a Brit!
Might be a stand in, but… Proud to represent MB & MB Vermeer across Africa & the Middle East.
MBV’s Purpose is encompassed in our mission to… Unleash brand-led business growth.
A short video to start…
As seen in video we have 5 core practice areas…
Situation (in a bar vs home vs sporting event) & Needs based segmentations – used to drive best brands to position into each usage occasion… Share of wallet…
Unleash the beast within – inside every cat is a tiger… “Feeding cats instincts”
Brand Purpose resulted in a campaign to Highlight connections between small cats & there big bigger cousins…. Tigers
Outcomes of purpose – protecting tigers in natural habitat…
Econometric modelling of effectiveness of touchpoints.. For Red Bull + impact on brand & sales…
Similar to KC – Unify go to market practices around world –
Best practice training school… 3 day course for all Hershey's marketers
Breaking down silos within the co making sure all teams / departments working to one strategy…
Might be coming to Saudi – summer 2016…
Study is the biggest ever undertaken, with 250 depth interviews of CMO’s & CEO’s & a quant phase among over 10,000 marketers around the world.
This truly is a program of the future by virtue of the partners that have come together to pool expertise and experience….
I wanted to touch up on some of the key highlights now and at the CMO round table, we are going to go through a little bit more detail
The World Federation of Advertisers who represent all the worlds national advertising associations as well as most of the top 25 actual advertisers
Forbes who have quickly become a leading source of CMO insights and learning
And Adobe who are now also applying their software and creative work flow expertise to improving marketing and messaging speed and effectiveness
And then its important to recognize how global this study is. No less than 8 major national advertising associations are partners of Marketing2020 as well as
MarketingWeek, CampaignAsia, Werben und Verkauf, Roularta and the Adfogroup.
But I am representing a very esteemed group of partners that really collaborated on this. MB Vermeer does this for a living but we collaborated not just with the ANA but Spencer Stewart who in the CMO, I think probably one of the leading recruiters but also Forbes with their CMO circle and Matrix Lab and the Dobey, that is the US team. But over the last year this has snowballed into a 10 market initiative where literally from Turkey to China to Brazil and everywhere in between, people, marketers like yourself contributed to Marketing 2020 and I’ll tell you who and what they were talking about. The first is that we talked to over 250 CEO’s, peers of the CMO’s and CMO’s themselves, as well as agency heads like Bob Greenburg from RGA but also the head of Digital for Obama’s campaign who I think many of us would credit of having made just that little difference in the elections, what does it take and how do you organise for 2020
We also went Quant and that is why we said that this is the biggest study ever, over 10 000 marketers world wide from 92 countries contributed to some of the findings that I am going to be taking you through and there is a quick summary on your chair, but I wanted to touch up on some of the key highlights now and at the CMO round table, we are going to go through a little bit more detail
Study designed to probe “What does it take , and how do you best organize for 2020?”
Firsts, we talked to over 250, CEO, peers of CMO, agency head, head of digital for Obama campaign.
We also went quant. Over 10, 000 that’s why we said it’s the biggest marketing study ever.
Demographics of marketiers are very well spread. Good representation.
Everything around us is changing. I hate it when we say marketing is changing. Frankly It’s WHAT we do in Marketing is changing beyond recognition
I don’t’ think anyone would argue with that…..
Social / digital / experiential / Mobile / Music integration / Mobile / E-Retail – Amazons / Alibaba’s all present a huge learning curve for marketers.
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What you do see is some new corners of expertise being created.
Analytics are hugely important. But what does the data say that becomes the insight, so we can adopt our solution.
New type of role that you see is that of a community manager, marketers that feels & represents and interacts with the community, on behalf of our company And represents that community inside the company
And there’s whole new area of content. That we can’t any longer rely on the agency, who we traditionally brief and they come back 2 weeks later and I know that’s not true for so many agencies today, but sadly it is the case for many other.
Now overarching above that, that something every senior marketing leaders must be experiencing – average tenure was 3 years now edging upwards…
Which is how to lead marketing teams into this evolving space?
Clear need to make sure we transition, without pretending to have the right expertise, to motivate the right people, and actually bring your team into this new era.
All in the quest for business growth.
Now I am going to take you through the some of the top level findings.
Let me take what we’re hearing, Opportunities & Challenges that are motivating while challenging CMO’s worldwide.
First in terms of opportunities that really excites people, is obviously social media.
There’s no marketers that don’t feel that we suddenly can do what we as marketers always wanted to do. Rapid feedback – personalizing content etc etc…
Collaborate with consumers, be out there, have new touchpoints, this is exciting stuff. It is all about external world, the ability to ask people, what’s motivating you now.
Thirdly, term is used already, is purpose. A lot of Marketers played back to us, that they felt they were giving back meaning not just to brand, but also to the company.
And also globalization. This is something different, if you think just 2~3 years back, we weren’t talking about globalization then. “Did you know size of middle class that’s buying my product will double in the next decade’ that’s exciting stuff.
Overarchingly, marketers say, “I feel my influence is increasing” . My colleagues, my peers, my boss are looking to me and asking what should we do as a company. I think there’s a transition here, maybe 10 years ago, in the eye of CEO and CFO, we were in dog house. People with their own little KPIs, we didn’t exactly know which part of our spend worked or didn’t, and in short, they didn’t feel we were they’re peer in terms of responsibility for business results.
Over the last decade, what’s the clearly happened, and I’ll show the stats,. Marketers increasingly are seen as equal. But it goes deeper, because the door is wide open. All other discipline are saying, help us figure out what do to next, and they’re looking at marketing.
And marketers, feel that pull, guess what, it’s exciting, when people want you to make a difference.
But there are some challenges as well. And the scary part is that 90% of this is internal.
1st infobesity. The term Big Data, been used a lot.
Generated internally & externally via mobile & the web & transaction data among many others…
When it comes through the door, window, the ceiling, and the chimney, oh boy, it’s suddenly a lot. What do I do with all this data.
But less funny, but much more to the Challenges point, and it’s been mentioned a lot, as CMOs, as marketing, we sit on that cast between the inside and the outside world, and we see the need for integrated solution, and we look inside the firm and we see silos. We see some parts of the organization that don’t want to collaborate. How are we going to bring people, to get them to work together.
And how do we get consistency across all these touch points. #2 worry.
And then privacy. If you get this wrong, oh boy, hits the fan.
And the sense, that we have to do more with less. The CFO saying that Earned Media is free isnt’ it, but Touchpoints have exploded, so marketers feel like we have to do more with less.
So it raises the questions: What does it take to win.
Well, this whole study, was predicated on analysing on one side winners & on the other the losers.
We asked people, and many contributed. “How are you doing relative to your competitors over the last 3 years”.
Winners and the losers. From here onwards, I’ll be a bit more polite, will call them overperformeres and underperformeres.
But you might question whether actually, that is a sensible way to look,. Why would somebody be honest, well one. we know from research like this, people on online questions they are actually are very honest. But we didn’t take that word for it. We took 49 companies, outside, looked at brand health and revenue growth with team from NYU. So when I say overperformers, you can take my word for it.
The correlation between claimed ‘Winners’ & ‘Decliners’ with actual performance was validated by NY University….
Winning characteristics of Winning / high growth Companies brands were 3:
But to dig deeper – its organizing around & delivering on these characteristics – need organisation to do so..
Our research identified five drivers of organizational effectiveness…
Summarise what's coming:
Connected / Inspire internally & externally / Clarity of purpose / Organising effectively & building structures to grow…
Proportion of CMO’s who agreed that big insights were instrumental in driving there brand success were 30 % more likely be over-performers…
Big Insights doesn’t just mean Big data.
Lots of people talking about big data, but not many doing effectively. Often if they do it, they do it very badly.
Big data = Talks to what consumers are doing, not ‘why’ = need insight to build Why…
Firstly, big insight. Someone said, big data = big insight. Not necessarily big data – but insights which can transform your Company or brand…
It’s things like “We have data available” “Are we are able to leverage”.
I wanna talk about purpose. It’s been mentioned so often.
I want to put some clarification here.
We asked people, 10,000 people worldwide, IS purpose going to drive difference? Not surprisingly, it’s going to drive competitive advantage, drive business growth.
That number is too high. “What do we / you marketers mean by purpose”
Pampers purpose is to help mothers have happy healthy babies… Cant ensure unless nappy doesn’t leak– There’s no substitutes for delivering that first.
So its about the functional benefits of Pampers, where dri’ness serves for the overall purpose of Pampers.
Functional benefit of Dove was a soap bar to wash!
UL Developed an ongoing program, Tapping into Universal human truth - programs 85% women have low esteem about their looks. That’s emotional. “’ - Sketches campaign – UL
Because of this emotional based platform – They have evolved into moisturizers / deos / shampoos etc
For some companys, not everyone, there can be a societal benefit.
This a picture from a real favela (Brazil). Where the #1 paint company, started by giving away paint to poor neighborhood.
Guess what, when you paint the walls, you feel different. When you paint neighborhood, crime goes down. Axel Nobel / Dulux discovered this, with their program around Purposeful positioning, now they’ve done it 10,000 places in the world. It now sell “tins of optimism.” This new definition of Dulux’s brand purpose led to a marketing campaign, “Let’s Color.”
This is where CSR meets brand purpose. But I think it is wrong to think, your CSR activity serves as a purpose. But the purpose needs to be on brand.
And purpose clearly drives business growth.
What we see across full spectrum of metrics is that brands where people say they have clear Purpose overachieve.
That’s the 2nd part of mix.
Where is all comes together. The Total experience that a brand or company is able to offer. Nike now offer not just training shoes but a total brand experience encompassing social network, wearables, training routes & times.
We think as we look forward at our brand values, & what our brand offers, it will be around maximising the depth of the customer relationship, how personalized the services feel, is it just a product, a product with tailor made information, a product with info and services that are right for you? Every one of these steps increases the value in the mind of the customer.
Amazon does Depth very well - Amazon Prime – 1 click payment – free video – indispensable services – real depth of understanding customer
Dangers - Because if you get personalization wrong, you breach privacy, and that’s not where you want to be.
The other dimension is the breadth, we’ve heard of the increasing the TouchPoints, that brands have to reach out. Consumers have to interact with brand. Question: Are we in every one of those Touch Points that are relevant to the consumer?
Disney have range of different service – Have a commonality of ‘delighting consumer’ & within offer may have consistency & depth. But across Movies – cruise ships – TV channels – Amusement parks – fewer links there…
If you get it wrong, you risk being inconsistent. I don’t think anybody here doubts marketing 101 school, that if a brand does not feel consistent then everything drops.
Where we think the things are going, is where Nike has gone with the Nike fuel band wearable, social network motivational feedback, routes & timings etc. Because Nike took a step back and said, our purpose is to unleash the athlete in every one’s body.
So Nike looked at the Touchpoints that they had when they just sold you shoes, (and btw, their share started to drop for the first time), and they said, let’s explode it out, what all the potential touchpoints?
Where we can add value for our consumers.
And we think they got it right. They did a very good job.
Also another example in Starbucks coffee (think of the pick-me-up Starbucks coffee provides); emotional benefits, or how it satisfies a customer’s emotional needs (drinking coffee is a social occasion); and societal benefits, such as sustainability (when coffee is sourced through fair trade)
Nike Fuelband video: http://www.youtube.com/watch?v=LC6wptkt2Wk
In hyperlink
Our research has identified five drivers of organizational effectiveness…
Some key findings along the way.
The most important, it’s about connection. It’s about recognizing, we’re gonna go to integrated solution, marketing is far too important to be left just for marketers. We as marketers, we need to make this clear.
Or we need to make that clear within the organization that we provide seamless internal connections….
And that requires influence, 1st piece of very good news.
This survey, was done in a smaller form, 7 years ago.
Marketers are actually being listened to more than before.
This partnership are higher in some industries than others. There are some real catch up industries.
Key message here is that, Engineer less, engage more. Yes, relaunches and so on are important, but marketers acknowledge they don’t engage enough internal audience so they get, what our purpose is, or what we’re trying to do with our consumer.
Paint example: These people are those that work for that company. 80% of their employees have actually engaged in the activity and they’ve felt what it feels like to make a difference in the community. Words can never reach that.
Now this is not some softy thing you can’t measure, it’s very measurable.
It’s 4th of your appraisal, are you living the purpose of google, do you embody the brand
Google expects googliness
Strategy not disseminating down to ‘bottom’
Example : Oreo famously took to Twitter during the blackout at the 2013 Super Bowl, reminding consumers, “You can still dunk in the dark,” making the brand a trending topic during one of the world’s biggest sporting events. That the tweet was designed and approved in minutes was no accident; Oreo deliberately organized and empowered its marketing team for the occasion, bringing agency and brand teams together in a “mission control” room and authorizing them to engage with their audience in real time.
Data shows that CMOs that collaborate closely with IT, HR, Finance overperform. These numbers speak clearly.
Cases of CMOs double hatting with HR & IT… overperform…
And another one…
The number of agencies you work with turns out to be discriminator for growth.
Overperforming companies, 5 agencies or more.
No, if you’re small companies, you don’t have to work with small # of agenceis.
Because it about the expertise that agencies represent. And that is exploding with all the different touchpoints available.
Example : Oreo famously took to Twitter during the blackout at the 2013 Super Bowl, reminding consumers, “You can still dunk in the dark,” making the brand a trending topic during one of the world’s biggest sporting events. That the tweet was designed and approved in minutes was no accident; Oreo deliberately organized and empowered its marketing team for the occasion, bringing agency and brand teams together in a “mission control” room and authorizing them to engage with their audience in real time.
So yes, it is about the WHAT of the brand, & the WHY
But just as importantly it’s about the HOW of the brand.
About How do you connect, inspire, focus your organization, create clarity around those roles and evolve those roles, and then iterate and learn from them.
Vermeers vision of purpose led-business growth is inbusiness to help you do this...