How Brands Work SoHo House August 25, 2009
High Quality Coffee Excellent Flavor Branded
High Quality Coffee Excellent Flavor Non-branded
$1.00
2 | How Brands Work | SoHo House | August 25, 2009
$3.00
Simply put, brands drive choice and create value It influences customer’s choice
Role of Brand
Higher level of future earnings
Value It is a key competitive asset Brand Strength
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Higher security of future earnings
Interbrand is recognized as the global standard for valuing brands 2008 Best Global Brands Rank
Brand
2008 Brand value ($B)
1
66.67
2
59.03
3
59.01
4
53.09
5
35.94
6
34.05
7
31.26
8
31.05
9
29.25
10
25.59
Data: Interbrand Corp., JP Morgan Chase & Co.
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“Most Useful Rankings to CEOs” —PR Week 1. Fortune 500 2. Best Companies to Work for 3. Interbrand’s Best Global Brands
Why do we care? Social media pays off. ENGAGEMENTdb study indicates engaging brands outperform their peers
Brands engaging communities through social media grew revenues by 18% annually, those that didn’t sunk 6% 3 ENGAGEMENTdb: The World’s Most Valuable Brands. Who’s most engaged? July 2009 4 “New Study Finds Correlation Between Social Media and Financial Success”, Sarah Perez, Read Write Web 5 | How Brands Work | SoHo House | August 25, 2009
Social Media has overtaken porn as the #1 activity on the Web —Huffington Post
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If Facebook were a country it would be the world’s 4th largest between the United States and Indonesia —Facebook or Socialnomics, Erik Qualman
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25% of search results for the Best Global Brands are links to user-generated content 窶年ielsen BuzzMetrics SES Magazine June
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Video initiations outnumber google searches on a daily basis —ComScore
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What happens in Vegas stays on YouTube, Flickr, Twitter, Facebook… —Opinion, not a statistic
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Today most people’s first, second, third and often only interaction with a brand is online. Consumers want more control of the conversation.
Consumers don’t look at digital vs. analog‌.
Research
Compare and refine
Reach final purchase decision
MSRP: $22,569
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Identify Dealer or Source
‌they see a seamless world Identify Dealer or Source Reach final purchase decision Compare and refine Research
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MSRP: $22,569
Let go.
Invite consumers to play with you.
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Consumers want intimacy. They want to share and create! Nike ID
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Twitter.Zappos.com
Coca-Cola Facebook Page
Building Brands in the Seamless World
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1.
Have a purpose
17 | Unprecedented Times, New Opportunities | An Introduction to Brand Valuation
Know what value you offer to society, not just the economy
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2.
Talk about what you’re on, not what you make
Hint at what’s alpha, invite feedback on beta, and keep the conversation going…
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3.
Embrace co-creation.
21 | Unprecedented Times, New Opportunities | An Introduction to Brand Valuation
What are you willing to give up
Product Price Place Promotion People
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What the Internet has taught us
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Andy Bateman CEO, Interbrand 212.798.7770 andy.bateman@interbrand.com
http://www.interbrand.com/newyork
Thank you! SoHo House August 2009
How does your brand work?
Demand +
Delivering compelling customer experiences across all touchpoints
Effectiveness
Generating efficiencies/ business impact
= Brand Value 26 | How Brands Work | SoHo House | August 25, 2009
Current and future earnings attributable to the brand