Intelligent Branding in a Downturn Economy Insights from 2009 Best Global Brands
2009 Best Global Brands
“Most Useful Rankings to CEOs” —PR Week 1. Fortune 500 2. Best Companies to Work for 3. Interbrand’s Best Global Brands
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What is brand value?
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Which MP3 would you buy?
MP3 #1
MP3 #2
$200
$250
• 16GB
• 8GB
• Video out – high definition
• Video out (not HD)
• Wireless file sharing (MP3s + more)
• Wireless MP3 shop
• Touch control • Integrated voice recorder • Built-in FM tuner (32 stations)
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• Touch control
What about now‌?
Creative Zen X-Fi 2
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Apple iPod Touch
Brands drive value
High Quality Coffee Excellent Flavor Branded
High Quality Coffee Excellent Flavor Non-branded
$1.00
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$3.00
Benefits of a strong brand
Drives demand Commands strong reputation Generates premium fees/revenue Creates strong word of mouth Delivers loyalty Enhances ability to negotiate with partners Elevates ability to recruit top talent
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Benefits of a strong brand
Drives demand Commands strong reputation Generates premium fees/revenue Creates strong word of mouth Delivers loyalty Enhances ability to negotiate with partners Elevates ability to recruit top talent
Frank Gehry 8 | Intelligent Branding in a Downturn Economy | September 24, 2009
Simply put, brands drive choice and create value It influences customer’s choice
Role of Brand
Creates demand
Value It is a key competitive asset
Brand Strength
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Creates loyalty
Survey says: Many of you believe branding makes a difference In your opinion, what are ways that branding/marketing could add the most value to your organization?
Source: 2009 EFCG Architecture & Design Firm Confidential Benchmarking Survey 10 | Intelligent Branding in a Downturn Economy | September 24, 2009
2009 Winners or Losers?
Winner
New
Loser
Winner
+2%
-4%
-10%
+14%
#2 (was #2)
#98 (N/A)
#38 (was 38)
#50 (was 62)
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How should brands be managed in a downturn?
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Recessionary tools that work in other parts of the business, don’t necessarily apply to branding
While you can downsize, right size, in-source, and outsource… you can’t fire the brand. It won’t go away. —The Crisis Paradox, Josh Feldmeth, Interbrand
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Your choice
Ignore it
Manage it
Successful brands in professional services
1. Delivered on a clear value proposition 2. Invested in their culture and their people 3. Behaved boldly in tough times, investing in strategic assets/R&D
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In professional services, it’s all about the experience you deliver
1. Out-behave the competition 2. Understand your client’s business and how to make them win
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How can we make our clients’ brands work harder for them?
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What were some of the key learnings from 2009?
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At the core of great brands is a simple idea
Man shall not be subservient to machine
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Performance
Simple, easy, enjoyment
Brand touches all parts of the customer journey
People
Environments
Brand
Communications
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Product / Service
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Apple Store 767 Fifth Avenue Architect: Bohlin Cywinski Jackson 2006
Apple Store 767 Fifth Avenue Architect: Bohlin Cywinski Jackson 2006
Apple Store 767 Fifth Avenue Architect: Bohlin Cywinski Jackson 2006
Apple Store 767 Fifth Avenue Architect: Bohlin Cywinski Jackson 2006
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Consistency across all touch points
I’m a PC
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I’m a Mac
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BMW Welt Architect: Coop Himmelb(l)au 2007
BMW Welt Architect: Coop Himmelb(l)au 2007
BMW Welt Architect: Coop Himmelb(l)au 2007
BMW Welt Architect: Coop Himmelb(l)au 2007
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Performance is woven into all touch points
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Embracing glocalization
McDonalds (UK) West Thurrock Architect: SHH 2005
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McDonalds (UK) West Thurrock Architect: SHH 2005
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McDonalds (UK) West Thurrock Architect: SHH 2005
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So, does it really matter?
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The numbers speak for themselves
Brand value 2001 $13,858MM
Brand value 2001 $25,289MM
Brand value 2001 $5,464MM
Brand value 2009 $21,671MM
Brand value 2009 $32,275MM
Brand value 2009 $15,433MM
36% increase
22% increase
65% increase
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5 macro trends
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1. It’s all about the experience
Prada Epicenter New York Architect: Rem Koolhaas (OMA) 2001
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2. No brow
Forever 21 San Francisco Architect: Gensler 2005
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3. Mobility
Uniqlo Pop up New York Architect: LOT-EK 2006
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4. Sustainability
Bank of America New York Architects: Cook+Fox Gensler 2009
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5. Design for all
Aloft Hotel Rancho Cucamonga $99/night 2009
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Thank you!
Andrea Sullivan Executive Director, Client Services 212.798.7510 andrea.sullivan@interbrand.com http://www.interbrand.com/newyork