IQ InEdit 3 The Growth Issue
Q3 2014 London
INTRO
IQ InEdit 3 The Growth Issue Q3 2014 London
Cover Image ‘Growth Rings’, by Finnian Sturdy, Interbrand London. Each year trees add a layer of growth between the older wood and the bark. These rings, as seen in cross section, can be wide (recording a wet season) or narrow (recording a dry season).
Editor’s Newsletter Welcome to the third Issue of IQ InEdit. Over the next few editions we will be taking a look at a number of key drivers for businesses, with this issue focusing on, and discussing strategies for growth. Our Global Director of Brand Valuation, Mike Rocha explores the importance of measuring and managing brands as an asset and demonstrates how brand valuation can be used as a strategic tool for ongoing management. We also look at the concept of the circular economy with Paula Oliveira, Director of Valuation and Analytics, who analyses the true meaning of sustainable business. And our travelling consultants share their observations on the changing brandscape in the growing economy of Pakistan. Other features include the story of Jeans for Genes, and how they were able to triple their fundraising action in just 2 quarters since sharpening their brand strategy and honing their new look. We also look at our Cannes Lions favourites from this year with a view to inspire and engage. The global travels and top tips of our Interbranders take in Dublin, Dubai, and Vietnam. And finally, we catch up with our new Head of Marketing and New Business, Sarah Lent, as well as getting a flavour of the eclectic mix of sounds coming out of 85 Strand. Intrigued? Read on…
Simon Bailey CEO Europe
85 Strand London WC2R 0DW United Kingdom +44 020 7554 1000 @InterbrandUK vimeo.com/interbrandpop
THE GALLERY GROWING ON US
Lyst.com gives consumers their own shopping experience, so they can discover more of the fashion they love. It partners with thousands of the world’s leading brands, boutiques and department stores, so consumers can follow their favourites all from one place. By following a brand or store, lyst.com lets you know whenever one of their items is newly in or goes on sale so you never miss a thing. Consumers can add items they love to their own Lyst, sharing them with their followers and getting notified the instant they go on sale. Since launch the site has seen enormous growth, growing by 400% over the course of 2012 and a further 400% in 2013.
GROWING ON US
INCREMENTAL GROWTH, EXPONENTIAL GROWTH. ORGANIC GROWTH, EXPLOSSIVE GROWTH. FROM THE BEST STORIES OF GROWTH AROUND US WE HAVE SELECTED OUR FAVOURITES. THE BRANDS INNOVATING AND INVIGORATING, REINVENTING CATEGORIES OR CREATING NEW ONES AND GROWING IN THE DOUBLE AND TRIPLE DIGITS. SHARE WITH US THE BRANDS GROWING ON YOU @INTERBRANDUK
BYRON HAMBURGERS has been a great success story within the catering industry, going from strength to strength. The journey began in 2007, when founder Tom Byng wanted to bring alive the idea ‘do a simple thing well, and do it properly’, and apply it to hamburgers. The idea has proved to be successful as Byron currently has 36 restaurants and in 2013 was valued at £100 million.
KEEPCUP’s focus is on encouraging the use of reusable cups. They are aiming to create a global brand that demolishes the idea of the disposable. Within four years Keepcup created a behavioural change in Melbourne that is spreading worldwide. In 2012, they opened up a warehouse in the UK, with another opening in Los Angeles in 2013. Since 2009 they have sold over 3 million cups in 32 countries around the world.
PACT COFFEE are a coffee delivery service aiming to get the UK drinking better coffee by making freshly roasted coffee accessible to everyone. Pact’s top quality beans are bought from dedicated farmers, hand-roasted in London and shipped within 7 days. Pact also doesn’t grind their beans until the last possible moment before being sent straight to customers to enjoy.
WORD LENS is an app that uses the built-in cameras on smartphones and similar devices to scan and identify foreign text, then translate it displaying the words in another language. This all in real-time and without the use of the internet. Its first version was released in 2010 and received 2.5 million views on YouTube in the first 6 days. It has featured as the no.1 free app on iTunes.
THE GALLERY
UBER is a venture-funded start-up and transportation network company based in San Francisco. The company arranges pick-ups in dozens of cities around the world. Cars are reserved by sending a text message or by using the mobile app. In June 2014, Uber completed a round of funding valuing the company at $18.2 billion with Fidelity investments supposedly leading this investment.
Brit electronic pop trio LONDON GRAMMAR released their debut album, ‘If You Wait’ in September 2013. It reached platinum certification and is the fifth top selling album of 2014. The album has reached around 356,000 sales and the band is currently touring worldwide. They won a Ivor Novello award in the ‘best song musically and lyrically’ category for ‘Strong’.
Jasper Cuppaidge, founder of CAMDEN TOWN BREWERY began making beer in the basement of the pub he owned, the horseshoe, just to experiment. At the time, there wasn’t many people creating craft beer and Jasper’s beers became highly popular. Camden Town Brewery now has its very own bar and street food stall and also offers tours around its brewery.
LEEFEST is a non-profit music festival based in South London. It started in August 2006 when Lee was 16 and his parents went on holiday. Before leaving they gave him one strict rule: do not have a house party… so Lee did the logical thing and decided to have a festival in his garden. Because of that he now hosts the festival annually, this year saw around 3,000 people attend.
JEANS FOR GENES
A wonderful artful gift was created for us by the client and Billie Stevenson of Olive Mayin, as a way of celebrating a great partnership between the Genetic Disorders team and Interbrand. www.facebook.com/pages/Olive-May
PROJECT
Denim potential HAVING BECOME SYNONYMOUS SIMPLY WITH THEIR FUNDRAISING DAY – AND WITH A COMPLICATED INVESTMENT STRUCTURE ALONGSIDE GENETIC DISORDERS UK – JEANS FOR GENES NEEDED TO GET THEIR EDGE BACK. EXAMINING THEIR STRATEGIC POSITIONING AND MESSAGING THROUGH THE LENS OF THE BRAND’S PERSONALITY AND CREATIVE TERRITORIES, WE CAME UP WITH THE IDEA OF ‘INSPIRING POTENTIAL’. WORKING CLOSELY ON THEIR LANGUAGE AND CREATIVE EXPRESSION IN PARTICULAR TO MOVE THEM FROM SIMPLY A VEHICLE FOR WEARING CASUAL CLOTHES TO WORK INTO AN EMPOWERING AND INSPIRING ROLE MODEL POSITION. WITH NEARLY £1M FREE ADVERTISING IN THE 1ST 2 QUARTERS SINCE LAUNCH THE BRAND HAS TRIPPLED ITS FUNDRAISING POSITION.
Little is known about the more than 6,000 genetic disorders that exist today; they are complex, rare and highly specialised. And yet they affect children and families across the country.
JEANS FOR GENES
DON’T FOCUS ON GROWTH The circular economy concept, being adopted by leading global brands, is contrary to the idea of growth. It suggests that continuous growth will destroy life as we know it, so we need to stop growing. The contradiction is that, by not focusing on growth, companies that have adopted this new way of thinking have been innovating at fast pace and… guess what? Growing! By Paula Oliveira
The reason behind it is the focus on solving real world problems. This new wave of sustainability is much less about the environment and reducing CO2 emissions, and much more about a responsible and holistic way of leading businesses. While academia and practitioners are still trying to find a robust and consistent way to integrate performance measurement beyond hard financial metrics, so we can prove the ROI of looking beyond the short-term profit line, consumers, customers and employees are rewarding businesses that take the lead. The Ellen McArthur foundation is one of the main voices of circular economy. With Philips, Renault, Unilever, Cisco and Kingfisher as its global partners, the foundation has been spreading the concept and supporting innovation across various industries and today consits of over 100 members. Repairing, upgrading and reusing products or components is the most common idea: in 2012, for example, the Renault’s Choisy-le-Roi plant remanufactured around 200,000 components, a turnover of 100 million Euros according to the foundation website. Caterpillar, with Brand Value of over US$ 7bn and 13% growth in 2013 according to Interbrand, is also a member and is the world’s leading remanufacturing business through its Cat Reman business unit, bringing new income to the group and developing stronger and lasting relationships with its customers. But many successful projects are based on new ways of doing business, such as selling services rather than products. The idea is that customers only pay for the service they require and use, while manufacturers retain ownership and control over products, materials and energy. Philips, with almost US$10mm of Brand Value and 14th Best Global Green Brand on Interbrand’s rankings, is a good illustration of this model: instead of selling one-off lighting
products, Philips can now develop bespoke solutions based on space and cost requirements. It ca retain long-term relationships with its customers through continuous service and subsequent upgrading, while recovering and recycling or reusing products and materials. Good for the customer, good for Philips and good for the planet.
Philips is building an internal centre of excellence on circular economy. B&Q is committed to producing more energy than they use. But the world’s problems go far beyond preserving our natural environment so businesses can still have enough supply to manufacture their products. Poverty and inequality, if not dealt with, will have an impact in the ‘supply’ of customers and employees, limiting organisations’ growth. So sustainability (or whatever we want to name it) goes far beyond environmental issues and business’ reputational license to operate in our over transparent digital world: for organisations to exist and grow, more than ever they need to support their communities to grow as well. And for that, they need to commit deeper to solving real world issues. Management guru C.K.Prahalad, with his ‘Fortune at the Bottom of the Pyramid’, over 10 years ago illustrates how global brands have been driving growth by creating profitable products and services, while also providing the less privileged with better access to the consumer market or to relevant technology that could improve their lives.
Most recently, the Brazilian cosmetics brand Natura is gaining international reputation by combining its strong understanding of customers, concern with the environment, care for communities and relentless pursuit of innovation to drive success. Its EKOS brand represents the work with over 2,700 families that grow and harvest the tropical plants and fruits used in its products. In 2013, Natura invested 2.6 percent of its net revenue in R&D, it was among the 12 companies that won a National Award for Innovation, it was awarded the “Best Socio-environmental Sustainability” by IR Magazine Awards Brazil for the sixth consecutive year and took 10th place in Forbes’ The World’s Most Innovative Companies ranking. The result? Revenues of over US$ 3.0bn, 12% average growth in sales and 7.5% average growth in profit over the last 5 years according to Forbes. In a 2013 study with 1000 CEOs in more than 100 countries by Accenture, 78% of respondents see sustainability as an opportunity for growth and innovation. Businesses that take a long-term and holistic view of the world, focusing on solving its real issues, are already collecting the benefits by taking the lead. By all means we need to attend to consumers and business needs and objectives now, but to guarantee continuous growth and prosperity we need to take risks and bet on things we truly believe in. The profit and growth are a happy consequence for business leaders and shareholders. Paula Oliveira is Director, Strategy, at Interbrand London. Connect and continue the conversation @paulaoliveirabv
BEST GLOBAL GREEN BRANDS
WHERE HAVE WE TRAVELLED IN 2014?
Ireland What took you there? Holiday Recommendation Queen of Tarts in Dublin for brunch or an afternoon sweet treat, off the beaten path and not touristy If you are in Ireland in Kilkenny County, stop in for lunch at Knockdrinna Cheese & stay at the Lawcus Farm Guesthouse for a peaceful countryside stay. Sarah Kornblum
Barcelona What took you there? I’d been to Barcelona a few times before, but had the opportunity to go with a few girls from Interbrand for a 2 night stay. Although I’d only been there 6 months before, I couldn’t think of a better thing to do to brighten up rainy February! Recommendation Parc de la Citadella near the Arc de Triomf close to where we were staying. My favourite area of the park was an incredible fountain called The Cascada which was erected by Josep Fontsére and Antonio Gaudi in the late 1800’s. Emma Winter
Ecuador (Galapagos Islands, Quito, Cotopaxi) What took you there? I’ve always had the Galapagos Islands on my bucket list because of the opportunity to see so many creatures that have been mostly safeguarded from human disruption. Recommendation Buy water shoes – ones you’re happy to walk right through mangrove swamps or flooded trails as you’ll be doing a lot of that and it’s not so pleasant doing it barefoot. Denise Chan
Basel What took you there? For business. I stopped off there on my way by train to Geneva from Cologne. Recommendation Have a coffee and a cake at Pfifferling Deli. It’s also just behind the station and is beautifully designed. They say you only go to Basel for two reasons: art or watches. But I’d say it had enough charm around its main station to merit a stop off if you’re travelling through Europe! Fred Burt
IB GLOBETROTTERS
France What took you there? Work
North of India (The Golden Triangle)
Recommendation Champagne: stop to visit and have a chat with the owners of small champagne houses on villages between Epernay and Rehms – much better than visiting the big / famous / touristic ones!
What took you there? A holiday with one of my university friends. We were looking for a real experience and a very different kind of holiday and we certainly got that…! Recommendation I’d say having your own bodyweight in antibacterial gel with you and being prepared to discuss / haggle / fend people off every 2 minutes…!
Paula Oliveira
Julia Bland
Vietnam Dubai What took you there? Business and pleasure. We had to run workshops for a client (BA) and I was able to stay the weekend to see my mother’s best friend and her family who live in Dubai. I also managed to fit an indoor skydiving lesson in with my colleagues! Recommendation Have a drink at the Atmosphere Bar at the Burj Al Khalifa and see the same sights as on the 124th floor. This might be in the guidebooks but drinks at the Barasti Beach Bar and have a Kanafeh – it’s an amazing cheese pastry! Floortje Beemsterboer
What took you there? Adventure, history and a taste of the unknown (i.e. Food!) Recommendation Find a Vietnamese friend and dive into the street food culture. Straying beyond restaurants is the only way to truly understand their all-day grazing style of eating. And eat where they do! The next best thing is a street food walking tour with Hidden Hanoi hiddenhanoi.com.vn Katie Rothschild
ON THE SHELF
Celebrating the best for Irish tastes IN THE MIDDLE OF ONE OF THE WORST RECESSIONS IN MODERN IRISH MEMORY, NO CUSTOMER WAS REALLY LOOKING FOR OR NEEDED TO SPEND YET MORE OF THEIR HARD-EARNED MONEY ON PREMIUM FOOD CHOICES. ALL OF IRELAND’S MAJOR SUPERMARKETS HAD WELL DEVELOPED AND MATURE PREMIUM FOOD RANGES, WHILE SUPERVALU, A NETWORK OF INDEPENDENTLY OWNED IRISH SUPERMARKETS, WAS STRUGGLING TO JUSTIFY PLACING THEIR SUPREME RANGE ON SHELF. INTERBRAND’S CHALLENGE WAS TO CREATE A DIFFERENT PROPOSITION THAT COULD STAND OUT IN AN ALREADY CROWDED MARKETPLACE – ONE THAT WOULD INSPIRE IRISH HOUSEHOLDS FEELING THE PINCH TO FIND A FEW PENNIES MORE FOR SOMETHING WITH WHOM THEY IDENTIFIED. SOMETHING THEY WANTED, NOT NEEDED.
Best Global Green Brands 2014
WINDOW DISPLAY
IB ACADEMY
Mid-May saw two of us hop on a minuscule plane and fly over to the city of Zurich, renowned for its stupendoüs fondues, trams, beautiful lake and cocoa-based delights. We were not there as tourists, however, as we were to embark on three intense and brilliantly informative days at the Interbrand office as part of the Academy 1.0. (although we did ensure significant fondue exposure too). The group of 16 represented all corners of our vast and incredible Interbrand network and served to prove the humbling talent that our firm encompasses. It was a great
opportunity to get insight into offices ranging from Madrid to Tokyo, with stand-out work presented and a snapshot into their cultures and teams rounding off the quick-fire globetrotting! It was a real pleasure to work alongside and learn from such a highly-motivated and engaging group of people. The three days took on the format of working sessions and talks from experts across the network, spearheaded by Leslie Butterfield, our Global Group Strategy Officer, as we were immersed fully into the world of the toolbox, commercial understanding, building successful
client relationships and more. Academy modules and talks were complemented by group discussions and exercises and provided a hugely valuable level of specificity and depth that I, for one, benefited from hugely. The three days were also framed by a syndicate project that we worked on in smaller groups and presented back to a panel of highly-esteemed Interbrand judges. We were fortunate enough to have a live client brief out of the Milan office and it was a great opportunity to test our own expectations and typical ways of working as we looked to provide a holistic approach for the
brand’s potential transformation. A fantastic and worthwhile experience, rich in take-aways that we can continue to apply to our daily working lives back at the ranch in London. It was an unprecedented insight into the scope and the global footprint of Interbrand and further developed and cemented our strategic knowledge. A whirlwind and highlyfocused few days that will have longterm benefits and has already made a difference to the way we approach and consider client work. Thank you Switzerland and thank you Interbrand!
Left: Meat for the fondue. Right: One of many small streets in Zurich. Bottom: The famous tram line with a Swiss church nestled amongst the buildings.
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IT WAS AN UNPRECEDENTED INSIGHT INTO THE SCOPE AND THE GLOBAL FOOTPRINT OF INTERBRAND
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IB ACADEMY
A Week In Zürich THE ‘RISING STARS’ OF INTERBRAND LONDON, MACAILA LAUBSCHER AND JULIA BLAND, TAKE PART IN AN INTENSIVE TRAINING SESSION WITH GLOBAL CHIEF STRATEGY OFFICER LESLIE BUTTERFIELD
Left: Cheese fondue. Right: Interbrand’s Zürich office and their red scooter. Bottom: Interbrand’s Academy candidates.
PAKISTAN UNDERSTANDING THE BRANDSCAPE In May 2014, three curious Interbranders visited Pakistan to immerse themselves in the culture and brandscape of the country. It was part of a project to rebrand one of Pakistan’s biggest banks. They discovered a nation where brands play a very unique role: one of trust in uncertain times. By Iván Mato
In 2013, a combined audience of 90 million people watched the Turkish TV drama ‘Forbidden Love’ on Pakistani TV Channel, URDU1. The predominant themes of the series are illicit romances, unfulfilled desires and destructive greed. The cast is beautiful, the dress code exposing and the plots taboo-tackling, however, it was all too much for the conservative country and it was asked to be axed. But the Pakistanis went mad for it. And the TV series became the symbol of the changing attitudes of modern Pakistan. Salman Danish, the CEO of MediaLogic Pakistan, in charge of measuring audiences explained it like this at bloomberg.com: “A major shift is taking place in Pakistan’s entertainment scene. Competition is forcing production houses to come up with creative ideas and bold topics. But the biggest surprise is that society is accepting and enjoying this freedom.” Pakistan is a very young nation. The median age is twenty two and one third of the population is under fifteen. Amidst high population growth rates, rapid urbanisation, political instability and insecurity are permanent features within the community. In a context of chaos and violence, life offers very few certainties, and in order for brands to succeed they have to step up to the challenge and become beacons of trust. Our colleagues at DDB Karachi described the role of branding in Pakistan aptly: “In a country of controversies and unfulfilled promises, brands perhaps are the only creed of heroes that actually deliver upon the pledges they make”. Brands seem to be able to galvanise a country divided on so many levels.
HIGHLIGHT OF THE TRIP Enduring a bumpy internal flight to Lahore, the capital of Pakistani Punjab, where we marvelled at the Badshahi Mosque, its red bricks and white marble domes drawn against the setting sun. There is a new, emerging Pakistan marked by a progressive attitude, bold new ideas and a sense of freedom never before experienced. Brands have huge opportunity to take advantage of this. To lead the charge and disrupt the market with a futurefocused, modern and dynamic brand positioning and vibrant, living identities, fit for an increasingly digital nation. Mobile penetration is high, social media is growing amongst affluent youths and while 3G has not quite happened yet, its emergence will change how people interact with each other and brands. Pakistani society is demonstrating its readiness for change and increasingly liberal mindset through the choices being made. Not only is Pakistan looking at the world, but the world is also looking at Pakistan.
FOUR BRANDS GETTING IT RIGHT Pepsi Pepsi’s latest ‘Dil Dil Pakistan’ campaign mixes the three things necessary to win over the heart of a nation: food, music and cricket. They have inspired a younger audience via the sponsoring of Pakistani Idol (talent show in Pakistan) and targeted the youth with action, fun and excitement, empowering girls by choosing them as the face of their campaigns. They also have Shahid Afridi, the cricket hero, fronting their sponsoring of the cricket national team.
Khaadi A fashion brand reviving the ancient craft of the handloom and popularising the traditional medium in contemporary design. They sell Ready-to-wear clothes, unstitched fabric, accessories and home products. Their Khaas range features exclusive and limited-edition pieces. In 2010, Khaadi started their international expansion. They now have stores in the UAE, Malaysia and in both Westfield London and Starford. Their online store was launched in Pakistan in 2014.
QMobile The mobile device manufacturer is taking on Samsung and Nokia with compelling value phones imported directly from China. Their distinctive personality and their value proposition has made them the largest smartphone brand in Pakistan, popular amongst the growing number of smartphone users. Their approach to comms and sponsoring cuts through the market.
Dolmen Mall One of the symbols of modern Pakistan, the Dolmen Mall is more than just a shopping centre – it has become a must-visit destination for shoppers in Clifton, Karachi. It opened in September 2011 and in a safe and clean environment offers a combination of international brand outlets, forward thinking Pakistani retailers and food outlets (our favourite the unashamedly named Fatburger).
Pepsi
Khaadi
Qmobile
Dolmen Mall
SAMSUNG
The power of branding
2003
2005
Interbrand Best Global Brands Ranking 25
Interbrand Best Global Brands Ranking 20
Released the first HD DVD combo
5th on the “Most Admired Electronics Company” list released by the Fortune Magazine
Ranked 27th in ‘the World’s Most Admired Company’ of Fortune
2007 Interbrand Best Global Brands Ranking 21
2008 Became the official sponsor of Chelsea football club
Developed the first-ever speech recognition phone
Released the world’s first 7 megapixel camera phone
Interbrand Best Global Brands Ranking 21
No.1 worldwide market share position for LCD for the sixth year in a row
No.1 worldwide market share position for TVs for the 9th quarter in a row
No.1 spot in U.S. cellphone market
Became the official sponsor of 2010 Guangzhou Asian Games
Opened Global Brand PR Centre ‘Samsung D’light’, Seoul
2004 Interbrand Best Global Brands Ranking 21
2006 Released 46” LCD TV for the first time in the world
Sold more than 20 million cellular phones in the U.S
Interbrand Best Global Brands Ranking 20
Launched the world’s first Blu-Ray Disc Player
Developed the world’s first real double-sided LCD
SAMSUNG
SINCE 2003 WE’VE HELPED SAMSUNG MOVE FROM A COMPONENTS MANUFACTURER INTO A CUTTING EDGE PRODUCER OF INNOVATIVE TECHNOLOGY, PREMIUM DESIGN, AND STATE-OFTHE-ART RETAILING. WITH A VALUE OF 45,462 $M SAMSUNG HAS BECOME ONE OF THE WORLD’S MOST VALUABLE BRANDS AND ENTERED THE INTERBRAND BEST GLOBAL BRANDS TOP 10.
2009
2012
2013
Interbrand Best Global Brands Ranking 19
Interbrand Best Global Brands Ranking 9
Interbrand Best Global Brands Ranking 8
Samsung’s design school received the most iF Concept Design Awards for its entrants
Sponsored the 2012 London Paralympic Games
Galaxy S4 unveiled in the US
2010 Interbrand Best Global Brands Ranking 19
Honoured with 37 CES 2011 Innovation Awards
Starts Mass Producing Industry’s first 3D Vertical NAND Flash
Opened Samsung Academy in Turkey
2011 Established as the world’s largest display company
Interbrand Best Global Brands Ranking 17
Launched the hull of Shell’s Prelude floating liquefied natural gas facility, the world’s largest floating facility
2014 Selected as one of the ten brands with the highest values in Africa
Cheil Worldwide won the Grand Prix at the Cannes
Premier Sponsor of the 2011 London World Skills Competition
Interbrand Best Global Brands Ranking 7
BRAND VALUATION AIDING GROWTH FROM WITHIN Compared to when Interbrand first pioneered brand valuation in the 1980s, global business leaders now widely accept the importance and value of strong brands – and the significant role they can play in driving growth for their businesses. By Mike Rocha. Best Global Brands portfolio versus the S&P 500 and Morgan Stanley Composite World Index (MSCI)
Interbrand recently analysed the stock market performance of the portfolio of brands appearing on our Best Global Brands study. The portfolio was found to significantly outperform the S&P 500 and MSCI World indices. Not only that, our analysis also showed the BGB portfolio outperforming throughout the economic cycle, demonstrating that strong brands shield their businesses from economic headwinds and accelerate growth during recoveries. This serves to highlight the critical importance of measuring and managing your brand as an asset. Our brand valuation framework is a strategic tool for ongoing brand management, it brings together market, brand, competitor and financial data into a single, value-based framework within which we assess the current performance of the brand, identify areas for improvement, and develop an action plan to enhance the future influence of the brand on business results. Whilst traditional brand measurement tracking can give you a rear view mirror of past performance, our brand valuation framework has been designed to be forward-looking, generating a rich and insightful
analysis of your brand today, leading to actionable recommendations and a roadmap of activities to ensure that it can be an accelerator of growth for your business tomorrow. The brand valuation model also provides a framework within which one-off business case modelling can be conducted to evaluate brand strategy options, such as positioning, architecture, and extension, make the business case for brand change and lay the foundations for future growth. Many firms claim to be able to evaluate strategic branding options. However, very few have the range of skills needed to tie the impact of branding to financial results (and therefore brand and business value). To help inform decision-making and make the case to upper management and the board for investment, we examine the variables in a financial model of the business, compare the potential upside with the cost to deliver, present strategic options for brand change, and show how each approach is expected to drive growth in brand and business value. Mike Rocha is Global Director, Brand Valuation, at Interbrand London.
Do you want to know more about how growth can be unlocked when we bring together strategic and analytical capabilities with a winning creative strategy. Download our white paper ‘Making the business case for brand change’ using the QR code below.
PIECES BRAND VALUATION
FREEDOM CANDLES TO VAN DAMME TO A DRINKABLE BOOK TO 3D SELFIES TO INGLORIOUS FRUITS. WE PICK OUR FAVOURITES AMONGST THE CANNES 2014 WINNERS
Harvey Nichols – Sorry I spent it on myself by Adam & Eve DDB
Volvo Trucks – The Epic Split by Forsman & Bodenfors
Misereor – Social Swipe by Kolle Rebbe
Nelson Mandela Children’s Hospital Trust – The Paper Prison by Interbrand
Yoshida Hideo Memorial Foundation – The Beautiful Black List by Dentsu, Japan
Lidl Supermarkets – Dill Restaurant by Ingo
Al Market – Azersun Private Label by TomatDesign
Honda Internavi – The Sound of Honda by Dentsu, Japan
Intermarché – Inglorious Fruits and Vegetables by Marcel
FEELING INSPIRED? TWEET US YOUR FAVOURITES @INTERBRANDUK #INEDIT
Adidas – D-Rose Jump Store by TBWA
Kishokai Medical Corportation Bell – Net Obstetrics Mother Book by Dentsu, Japan
Nivea – Protection AD by FCB
Colgate Palmolive – Attack at Night by Red Fuse Communications
Amnesty International – Freedom Candles by Ogilvy & Mather
MegaFaces – Kinetic Facade Shows Giant 3D Selfies by I art
Tama Art University – Tamabi by Mr_Design
WaterIsLife and Carnegie Mellon University – Drinkable Book by DDB
Cleft Awareness – Operation Smile India :{TO:) Cleft to smile by Ogilvy & Mather
Watch Hannah Hughes
Brief: Create a new visual language for The Body Shop that reflects their pioneering spirit within the beauty industry and as a forward-thinking British brand. Response: A set of posters featuring projections of ingredients used within that product onto the corresponding part of the body where that product would be applied.
Watch Oliver Hurcombe
Brief: Create a stationery layout design for a job sector of your own choice. Selected designs could be used and sold on Instantprint’s website. Response: Designs for a gardening stationery set. A combination of minimalist illustations to apply to letterheads, business cards and other forms.
Brief: Final major project. Response: An alternative prospectus aimed at getting parents to understand the importance of creative disciplines and for the students to be reassured of their choice of subject. It also includes useful information to help them through the application process to university.
Watch Zanis Mikelsons
D&AD PORTFOLIO SURGERY
When They Grow Up Watch James Richards
Brief: Create a new brand identity for a cat charity based in Leeds. Response: A set of touchpoints that represent a clear and minimal brand. A logo concept which represents the re-homing of cats.
Watch Natalie Dyson
Brief: Create an interactive experience for a festival. Response: A scheduling, navigation, database application for smartphones and tablets. One of the features is an augmented reality dynamic navigation system that uses the phones camera to project points of interest and social markers on to a real time feed.
INTERBRANDERS
NINE TO SIX(ish) TO NINE
SARAH LENT JOINED INTERBRAND LONDON IN JUNE 2014. HERE SHE TAKES US THROUGH FIVE HOURS IN EACH OF SAN FRANCISCO, SOUTH AFRICA AND LONDON. SARAH TALKS ABOUT FOLLOWING THE BLUE DOT FOR NAVIGATIONAL HELP AND THE DIFFERENCE IN SOUTH AFRICAN CULTURE.
A MORNING IN SAN FRANCISCO
7 9 11
Awoken by the fog horns. For some it can be annoying, but for me nothing is better than a foggy San Francisco morning and the deep, soothing sounds of the ship horns as they navigate through the Golden Gate Bridge into the bay. I reach for my phone to field any immediate needs from my New York colleagues before I go for my morning run along the Marina Green. Coffee, tunes and team meeting. Boutique coffee wars is not good news for Starbucks. But for a coffee loving professional, there is nothing better than having a variety of ‘Ritual’ and ‘Blue Bottle’ pop-ups on your doorstep. Interbrand San Francisco is full of coffee-loving professionals. Music is also a large part of the culture. At any given day you can hear the sounds of Jack White, The National, and The XX permeate through the hallways. Some could say that the common love for music and hipster-made coffee is what drove the IBSF team to collaborate so well! Journey to the Valley. The Silicon Valley. The tech capital of the world. The home to the innovators who changed our lives and continue to change our lives. Whether it is helping Intel to simplify in order to sell more, or driving brand value growth through a measurement system for HP, most of our days are spent in the Valley. Full of the most creative people in the world!
AN AFTERNOON IN SOUTH AFRICA
1 3 5
Braai time. The Interbrand South African office cultivates a family-like environment. Our on-site kitchen provides us all with traditional South African braai. The delicious smells of boerewors permeate the industrial building as I navigate my way downstairs to a table of South African cuisine, including chakalaka, pap, and biltong. I sit outside in the garden with the team, and enjoy my lunch with a new Interbrand family. Just as intelligent and inspiring as the one I left in San Francisco. Traffic jam. Johannesburg is one of the largest cities in the world. With a population of 10 million people, traffic tends to be an issue. On any given day, I would spend at least 2 hours stuck in traffic navigating my way from client to client. Being a multi-tasker, I FaceTime with my family. Somehow seeing their faces makes sitting in a parking lot much more enjoyable. Deserted. South African culture dictates that work stops at 5pm. I look up at my desk at 5:01 and everyone is gone. It’s a different work-life balance that I am use to from the States, and I like it. But I know where everyone is. At the ‘Eatery’, a posh wine bar up the street from the office and a second home to Interbranders enjoying each other’s company outside of work. Like I said, it’s a family. And one that welcomed me in with open arms.
AN EVENING IN LONDON
7 9 11
The Scramble. I speed-walk back to my desk after a series of meetings throughout the day. I quickly get through my emails and respond. I dash outside trying to navigate the London tube in a bid to head West. Which, well… I thought I worked in the West because it’s called the West End. But you quickly learn it’s not that West. I get off the tube. Look at my phone. Immediately open my maps application. Put in the location of where I’m supposed to be… Take a look at the moving blue dot on my screen. It’s a 50/50 chance whichever way I turn is the right way. I walk for 2 minutes, see the dot moving in the opposite direction to which I am supposed to be going. Turn around and retrace my steps. Getting to know a new city is not easy. I have no idea how people did it without a smart phone! Show starts. Live music has been a passion of mine since I was a young girl. I am thrilled to be back in a city where there is a variety of options for music lovers almost every night. I’ve been here for just 1 month and have already seen an array of music, including my favourite musician, Jack White. It keeps me inspired and smiling. Even after the toughest of days. Lights out. Bedtime. I, unlike most people, absolutely need 8 hours of continuous sleep every night or the next day is not pleasant. Even if those sorely missed fog horns wake me up. I have a strict bedtime, to which I happily adhere. Good night.
MUSIC @85 STRAND
WHAT WE’VE BEEN LISTENING TO… OUR NEW DIGITAL CREATIVE DIRECTOR SHARES SOME SOUND BITES.
With our Executive Creative Director now in charge of our Spotify playlist the dark days of Simply Red’s ‘Stars’ and Elton John’s ‘Candle In The Wind’ are thankfully behind us. The Utopian device that is Sonos allows everyone to play at being the DJ which leaves us with a very eclectic playlist. I’m not going to lie, some of it isn’t my bag! I always like to try my luck with playing a bit of Radio 6 in the morning; sadly it never makes it past 10am. Shame – Lauren Laverne has a lot to offer.
Apparently it doesn’t lend itself to a studio environment. Too much talking so I was told, thanks to the junior design crew! Rudimental and Disclosure will be pretty pleased with the news that streaming music will now count towards the UK’s singles chart. I predict that our studio plays alone will get them to number one. Watch this space. Our FMCG Creative Director doesn’t play much, but when he does, he tends to put in a solid
performance; a bit of Bryan Ferry and Fleetwood Mac is a staple to anyone [with taste]. On the flip side I’m sure the ladies in the studio have played some Katy Perry recently although this hasn’t been confirmed–thankfully I was in a meeting for most of that. I’ve just managed to sneak a bit of Depeche Mode on, oh wait it’s been changed... goodie gum drops, it’s John Newman again. Transmission ends.
IQ InEdit 3 The Growth Issue Q3 2014 London
WORK IT HARDER MAKE IT BETTER DO IT FASTER, MAKES US STRONGER MORE THAN EVER / HOUR AFTER OUR WORK IS NEVER OVER.
‘HARDER, BETTER, FASTER, STRONGER’ by DAFT PUNK, Virgin, 2001