The Evolution of Modern Brands

1. 2429 Nicollet Ave. | Minneapolis, Minnesota 55404 | T +1 612 279 1400 | www.zeusjones.com The Evolution of Modern Brands MARCH 22, 2018

2. DIGITAL HAS TRANSFORMED THE NATURE OF BRANDS

3. BENEFITS ATTRIBUTES VALUES PERSONALITY ESSENCE Traditional brand models

4. Built for traditional media

5. BENEFITS ATTRIBUTES VALUES PERSONALITY ESSENCE

6. First disruption: traditional media…

7. NCSA Mosaic Web Browser Becomes interactive

8. Product Dominant Logic SUPPLY CHAIN COMPANY VALUE CUSTOMER Brands are a form of value, and traditional brands were built upon a one-way transmission of value from company to consumer.

9. Service Dominant Logic RESOURCE INTEGRATION RESOURCE INTEGRATION COMPANY VALUE CUSTOMER Stephen Vargo and Robert Lusch. Journal of Marketing, January 2004 With the proliferation of interactive media, academics realized that one-way value models needed to evolve.   This gave rise to a new model of co-created value.

10. BENEFITS ATTRIBUTES VALUES PERSONALITY ESSENCE In 2008 at Zeus Jones, we replaced our outdated, one-way branding models…

11. CORE BELIEF & PURPOSE PURSUIT PURSUIT PURSUITPURSUIT …with a “modern brand“ model, built around collaboration with groups of consumers and communities.

12. NCSA Mosaic Web Browser But in recent years, that company-to-consumer interaction has dramatically magnified and fragmented.

13. Now, a wide range of different voices impacts and shapes a brand’s perceived value. These can change how people feel about your brand over night.

14. Service Dominant Logic RESOURCE INTEGRATION RESOURCE INTEGRATION COMPANY VALUE CUSTOMER Stephen Vargo and Robert Lusch. Journal of Marketing, January 2004 So, in the last two years, a new model of value has arisen, and it’s moving from co-created value…

15. Customer Dominant Logic RESOURCE INTEGRATION COMPANY VALUE CUSTOMER Kristina Heinonen and Tore Strandvik Journal of Services Marketing, 2015 EXPERIENCE CONTEXT CULTURE …to a world where consumers, their past experiences, their context and their culture have a much larger impact upon value than the company’s activities. Value today is created by consumers and given to brands.

16. CORE BELIEF & PURPOSE PURSUIT PURSUIT PURSUITPURSUIT So, at Zeus Jones, we’re evolving our thinking about brands again. We’re moving from isolated, stand-alone brand models…

17. CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE PARTNER PLATFORM OWNED PLATFORM OWNED PLATFORM PAID PLATFORM PARTNER PLATFORM PAID PLATFORM PARTNER PLATFORM CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE …to networked or ecosystem models - models that recognize the fact that your brand sits within a world of explicit and implicit relationships that have huge impact on how people feel.

18. DAVID OGILVY  —  The intangible sum of a product’s attributes. OWNED BY COMPANY CO-CREATED OWNED BY CUSTOMER JOHN GRANT  —  The sum of the great ideas used to build that brand. ZEUS JONES  —  The sum of the assets and networks that are owned by the brand. BRANDS AS IDEAS BRANDS AS ACTIONS BRANDS AS ECOSYSTEMS We’re entering the third wave of brand

19. Characteristics of a brand ecosystem: Complex and diverse. They exhibit emergent properties that aren’t planned and can’t be controlled. • Different processes at different levels of scale • Share a common purpose, aligned around mutual success • Living, evolving, adaptive organisms

20. PROCESSES WITHIN BRAND ECOSYSTEMS

21. CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE PARTNER PLATFORM OWNED PLATFORM OWNED PLATFORM PAID PLATFORM PARTNER PLATFORM PAID PLATFORM PARTNER PLATFORM CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE

22. CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE 1. Owned platforms 2. Shared platforms 3. Paid platforms 4. Business ecosystem

23. Three kinds of owned platforms: 1. Engagement 2. Loyalty 3. Mass

24. Properties of an   Engagement Platform — Primary growth engine for   the company Based upon an operational asset Delivers an exchange of value Acquisition tool that often generates WOM Engages collaboration partners Increased usage builds its value Delivers marketing benefits as collateral, not primary, purpose

25. Properties of a Loyalty Platform — Generates frequency of usage Leverages external content creators for efficiency Assembles brand and partner assets into a cohesive “media” network Optimized for traffic/SEO and user experience Can contain both digital and physical assets Fed by other platforms

26. Properties of a   Mass Platform — Aggregates advocates and media to drive scale Operates on the company’s calendar Works in pulses or bursts that are timed to big news Often has its own marketing program built around it Highly connected to other platforms

27. Shared platforms • Bring new ideas and audiences to brands • Helps them extend into areas of culture that they can’t access alone

28. Properties of Shared Platforms — Delivers something entirely new, not old things in combination Brings different ideas together Cultural freshness and relevance is a key output Contains multiple levels of engagement Virality built in, not about catering to a mass audience

29. Paid platforms Traditional and digital media platforms Traditional and digital distribution platforms

30. Small brands suﬀer from lower market share and lower loyalty (purchase frequency). Loyalty is an outcome of market share - not the other way around. The surest way to gain market share is to increase your penetration (make your product more available). DOUBLE JEOPARDY PROF. ANDREW EHRENBERG

31. Mass awareness is not mass penetration

32. Paid Platform Strategy — Availability, not interruption: Make it really easy to buy your product/service. Don’t interfere with other actions users are trying to take.

33. Business ecosystem The relationships and partnerships within your supply, manufacturing, services, distribution and retailing chain. The individuals in your organization and partner organization and their personal, business, political and spiritual affiliations.

34. Your brand can change over night.

35. Business Ecosystem Strategy — About reshaping value, perception and industry. Achieves commercial, social and environmental goals simultaneously. Makes ecosystem owners incredibly difficult to unseat or disrupt.

36. CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE 1. Owned platforms 2. Shared platforms 3. Paid platforms 4. Business ecosystem Increase distribution Increase awareness Increase engagement Organic growth Communication of news Value enhancement Reputation change Business transformation Gain or increase relevance Meaning or image extension Audience extension

37. PURPOSE IN A BRAND ECOSYSTEM

38. Those companies holding leadership roles may change over time, but the function of ecosystem leader is valued by the community because it enables members to move toward shared visions to align their investments, and to ﬁnd mutually supportive roles. THE DEATH OF COMPETITION JAMES F. MOORE

39. Society is demanding that companies, both public and private, serve a social purpose. To prosper over time, every company must not only deliver ﬁnancial performance, but also show how it makes a positive contribution to society. Companies must ask themselves: What role do we play in the community? How are we managing our impact on the environment? LETTER TO CEOS LARRY FINK CEO BLACKROCK

40. Brand Purpose Strategy — Corporate social responsibility is not an add- on to purpose. It needs to be a central part of the mission. It must be aligned with and integrated into the business overall.

41. Business aligns to purpose.

42. BRANDS & EVOLUTION

43. Julien Malland

44. Culture’s role is progress http://www.today.com/video/crowd-turns-its-back-on-hillary-clinton-to-capture-selfies-773131843750

45. Conducted a study to examine the relationship between cultural evolution and human evolution. Culture is essentially a second inheritance mechanism that operates   in conjunction with our genetic system. PROFESSOR IN HUMAN EVOLUTION AND SOCIAL CHANGE CHARLES PERRAULT

46. Culture helps us evolve when biology can’t keep up.

47. Brands help us live in the future.

48. DAVID OGILVY  —  The intangible sum of a product’s attributes. OWNED BY COMPANY CO-CREATED OWNED BY CUSTOMER JOHN GRANT  —  The sum of the great ideas used to build that brand. ZEUS JONES  —  The sum of the assets and networks that are owned by the brand. BRANDS AS IDEAS BRANDS AS ACTIONS BRANDS AS ECOSYSTEMS We’re entering the third wave of brand

49. Modern brands Guided by a purpose Internal culture Multiple coherent ideas Deliver an experience Trust through transparency Progress by iterating Empowering Marketing is built in Create a community Ecosystem brands Aligned around a purpose Relationships and assets Multiple coherent platforms Coordinate an ecosystem Shared destiny Constant evolution Sustaining Marketing is invisible Support their community

50. @ADRIANHO