Meaningfully different brandsCharles FosterMD Millward Brown MEA

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W E A R E

THE WORLD’S

LEADING EXPERT

helping clients

GROWgreat brands

IN

Meaningfully different brands,

properly amplified, create sustainable

financial value growth.

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Millward Brown Brand Philosophy

Brands

Brands

Brands

Brands

a brand?

A set of associations (ideas, memories and feelings) in

the mind of a consumer

What is

What makes a brand valuable?

Successful brands build associations that deliver these commercial benefits

I N C R E A S I N GT H E L I K E L I H O O D

that a consumerwill buy/consider

I N C R E A S I N GH O W M U C H

consumerswill pay

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MEANINGFUL

DIFFERENT

SALIENTComes to mind

quickly and readily

when activated by

ideas relating to

category purchase

Consumers feel an

affinity for the brand

or think it meets their

needs

Feels different from

other brands or sets

the trends for the

category

Apple: unique personality and tangible product innovation =

differentiation worth paying for

137 248 131

137 158 272

Avr = 100

$185b

MEANINGFUL DIFFERENT SALIENT

Avr = 100

Coca-Cola: first to mind for billions of thirsty people =

dominant volume share for impulse category

$78b

Salient

DifferentMeaningful

The five key inputs…

Meets Needs

Affinity

Unique

Dynamic

Awareness Intensity

The new approach has inputs which shorter, quicker, easier to administer

Please drag each brand onto the scale to indicate how different they seem to others in the market. You can place more than one brand in each box or leave a box empty. Please place all brands on the scale before continuing.

This type of questioning improve the model fit by 16%

Further development work through BrandZ:

>40 countries, >5000 brands, >300,000 consumers

MDS derives three key summary metrics of brand equity related specifically to core business objectives

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Our headline measures of equity recognise that your portfolio can deliver a financial return in two ways and provides a predictive measure of future potential.

P O W E R is a prediction of the brand’s

share based purely on brand perceptions.

Are consumers predisposed to choose the brand over others?

Delivering more share

P R E M I U M is a prediction of the price

index a brand can charge based purely on

perceptions.

Are consumers predisposed to pay more for the brand?

Justifying a price premium

P O T E N T I A L is the probability that the brand will

grow share based purely on brand perceptions.

Are consumers predisposed to stick with the brand in future or try it?

NO

WF

UT

UR

E

Meaningful, different and salient brands…

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Each of these metrics are created from measures of how meaningful, different and salient brands are.

… Have the POWER to capture significantly MORE VOLUME

POWER

… Can command a price PREMIUM PREMIUM

… Have much greater POTENTIAL to gain value share in the future

POTENTIAL

Our Framework of consumer decision making

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Predisposition and in-market activation allow us to determine what drives your financial performance and the best way for you to leverage share and/or to justify your price point now and in the future.

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Great metrics,

need great data

capturing techniques

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Busy consumers

Less accessible

Poorer quality data

Slow study timelines

We are 90% electronic DC today, PAPI is going because….

BUT WHAT’S NEXT?

Mobile interviewing is the future; in fact it is already here

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Why consider mobile surveys?

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ACTUALLY THE REAL QUESTION SHOULD BE WHY NOT?

*Source: e.Marketer Global report June 2014 **Source: Informa WCIS;***Source: StatCounter Global Stats, 9/12

1.76 BILLION

37% GROWTH

15% OF WEB

smartphones users by the end of 2014 – overtaking

laptops and PCs*

in the number of global 3G subscribers in the past year**

traffic comes via mobile – more than double last year;

Mobile traffic share already over 50% in India and China***

Nearly 51% of web traffic in KSA comes from a

mobile phone device and not from a desktop (49%)

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15

18

25

33

40

42

43

44

47

47

48

53

India

Indonesia

Vietnam

Brazil

Turkey

Japan

Philippines

Argentina

South Africa

Thailand

Mexico

Russia

This is not surprising since KSA has the 3rd highest smart phone penetration in the world.

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62

65

65

68

72

75

76

81

81

85

Italy

France

Germany

China

USA

Canada

Saudi Arabia

Spain

Australia

UK

Source – Google Our Mobile Planet 2014.

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MOBILE SURVEYS GIVE YOU GREAT SHORT TERM ADVANTAGES

Consumers are connected to

their mobile phones all the time

and find it comfortable and

engaging as a communication

medium better interview

context

Pilot studies have shown that without

interviewers (over)prompting, mobile

data is more discriminating between

brands and reflect market reality better

better data quality

Speed of data access and deliverables

increases significantly.

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MOBILE SURVEYS WILL HELP YOU FUTURE PROOF YOUR INSIGHTS

Door to door access will get increasingly difficult and expensive due to

rising trend of gated communities where higher income respondents reside

better representativeness of the sample

Can integrate exciting possibilities offered by the smartphone platform:

multimedia, geo-location (GPS), passive behaviour monitoring (once the

smartphone penetration is sufficiently high).

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Data quality is impressive

on Mobile

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KEY INSIGHTS WE HAVE SEEN FROM THE DATA

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ACCESS TO HIGHER INCOME HOUSEHOLDS

MOBILE GIVES US BETTER ACCESS TO HIGHER INCOME HOUSEHOLDS (MORE

VALUABLE CUSTOMERS) THAN TRADITIONAL DOOR-TO-DOOR INTERVIEWING CAN

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MOBILE DATA MATCHES UP TO MARKET SHARE

OVER TIME, MOBILE DATA MATCHES UP TO MARKET REALITY EVEN MORE

DUE TO THE ABILITY TO COVER WIDER GEOGRAPHIES NATIONALLY

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MORE HONEST FEEDBACK

SELF-COMPLETION MODE MEANS THAT RESPONDENTS

ARE MORE DISCRIMINATING TOWARDS BRANDS,

GIVING US MORE HONEST AND USEFUL FEEDBACK

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NOT AN ISSUE CAPTURING OPEN ENDED RESPONSES

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SCREEN SIZE DOESN’T MATTER –RESPONSES ARE CONSISTENT

TWO KSA STUDIES IN FIGURES

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8 minsto complete on average for Banking

65% answered the surveys using an Apple iOS device

83% answered the surveys using a smartphone

11 minsto complete on

average for Auto

9 days get 1000 completes

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KSA STUDIES BY RESPONDENT LOCATION

2 Brand Equity Studies completed via Mobile in KSA

Cars example

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EQUITY OF LEADING CAR BRANDS

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Take a Guess–Which Brands have higher Power?

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Power

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What is driving Toyota’s Power?

Very Salient and Strongly Meaningful overall. Weak perceived difference is its main weakness as it is the most popular make in the country.

Salient

156

Power

19.3

Salient

156

Different

88

Power

19.3

Salient

156

Different

88

Meaningful

128Power

19.3

Salient

156

Different

88

Meaningful

128Power

19.3

Salient

156

Different

88

Meaningful

128Power

19.3

Because people are predisposed to consider

brands when they believe them to be

meaningful. They meet their needs better

than other brands and they appeal to them

more than others.

If a brand seeks to charge a premium, people

will only do so if they believe the brand is

meaningfully different in some way.

People consider the brands that are most

salient – the ones that come to mind

quickest when the need arises.

Leading car brands in Saudi Arabia

Power

12

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Over the last couple of years, the brand equity scores of Toyota has come down at the expense of growth of brands like Ford and Hyundai.

Power can transform quickly…

0%

5%

10%

15%

20%

25%

Toyota Ford Hyundai Mercedes-Benz BMW

2011

2013

Changing demographics also impacting power shift: Younger Saudis lean towards Hyundai and BMW

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POWER SCORES

IN 2013

TOTAL

SAMPLE20-29 YRS 30-50 YRS

Toyota 19.3%

Ford 12.1%

Hyundai 12%

Mercedes-Benz 11.8% Average Average

BMW 11.1%

Chevrolet 9%

Honda 9%

Nissan 8% Average Average

GMC 7% Average Average

(236) (164)(400)Base:

Lower than the average Higher than the average

What contributes to being Meaningful & Different in cars?

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40

- 12.4%

0.4%

3.1%

16.3%

17.0%

24.2%

26.6%

Doesn't meet needs

Too cheap

Costs more

Acceptable price

Stylish design

Better to drive

Proud to drive

- 15.6%

- 1.3%

29.9%

1.7%

16.7%

14.0%

20.9%

Doesn't meet needs

Too cheap

Costs more

Acceptable price

Stylish design

Better to drive

Proud to drive

Contribution to Meaningful Contribution to Difference

What is driving Meaningful & Difference for cars in KSA?

Premium

pricing

Driving

experience

Average

Endorsement

across category

Toyota Ford Hyundai

Better to drive than others in their

class33%

More stylish and better designed

than others in their class34%

Would be proud to use 34%

Acceptable price 13%

Does not meet my needs 22%

Costs more than you're prepared

to pay12%

Too cheap 6% -1%

1%

-5%

13%

-4%

-8%

1%

Power differences across mid-range car brands

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2%

-6%

9%

9%

-15%

-1%

-10%

1%

-3%

-2%

4%

-6%

-2%

1%

Average

Endorsement across

category

Mercedes Benz BMW

Better to drive than others in

their class33%

More stylish and better designed

than others in their class34%

Would be proud to use 34%

Acceptable price 13%

Does not meet my needs 22%

Costs more than you're prepared

to pay12%

Too cheap 6% -1%

13%

-2%

-10%

33%

36%

22%

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-5%

16%

-13%

-11%

38%

29%

31%

Power differences across prestige brands

TO SUM UP….

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The MDS framework:- Helps you build meaningful brands & grown brand value- Holistic in approach, yet can diagnose in detail the barriers &

facilitators to brand growth- Validated, forward looking and linked to brands’ financial

performance.

Digital data-collection is already a reality- Consumers are spending more time on digital devices- Gives us better access to different consumer profiles- Better quality data- Realistically shorter questionnaires are the future

Any Questions?

Get in touch with Charles Foster

charles.foster@millwardbrown.com