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Building Brands in Challenging Times Presented by Andrew Zolli Clark University GSOM May 2003.
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Building Brands in Challenging Times Presented by Andrew Zolli Clark University GSOM May 2003
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Transcript of Building Brands in Challenging Times Presented by Andrew Zolli Clark University GSOM May 2003.
Building Brands in Challenging Times
Presented by Andrew ZolliClark University GSOMMay 2003
YUCK!(I Want the 90’s Back!)
Rapid Commoditization
Recession
Global Fear & UncertaintyRebuilding Iraq
Lack of Trust
Corporate Scandals
Over Capacity
Ken Lay
Dot BombWar &
Terrorism
SARS
Investor Revolt
A Quick Definition…
“A brand is a meaningful, enduring and distinctive idea, formed in the minds of key constituencies based on the sum of direct and indirect experiences of an organization: its products, services, communications, behavior, history, cultural standing and interaction with stakeholders.”
“A brand is a promise delivered.”
What’s Not Mentioned…
Logos
Tag Lines
Corporate Identity
Positioning
Direct Marketing
Advertising
Viral Anything
BRANDS
EXPERIENCES
CULTURE
No Logo vs. Pro Logo vs. Whoa! Logo!
“We Hate Starbucks!”
“They’re a blight on the neighborhood!”
“They’re taking over!”
“They put the local place out of business.”
“They have too much power.”
“I want my brain back!”
The Heavenly Starbucks, Christian Family Center, Munsey, IN
Meanwhile…
The Last Ride, Munsey, IN
How Did We Get Here?
1860 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Relative increaseof new brands
How Did We Get Here?
1860 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Relative increaseof new brands
The Dawn of the Modern Brand
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Growth in New Goods
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Percentage Change in the Growth in New Goods
1880-19001980-2000
MassManufacturing
MassDistribution
MassCommunications
Parity Products
The Dawn of the Modern Brand
Where Are We Today?
Old vs. New
communications behavior
vs.
communications behavior
innovation innovation
The Modern Acceleration of Branding
1960 20001960
2000
The Modern Acceleration of Branding
1960
2000
Key Drivers: Globalization New Technology Deregulation Tax Policy Public Policy
The Modern Acceleration of Branding
1960
2000Responses: New Branding Disciplines New Brand Consultants Expansion of Brands into the Public Sphere
Key Drivers: Globalization New Technology Deregulation Tax Policy Public Policy
2002 Brand of the Year: Google
Source: Interbrand
#1 in Loyalty…#1 in Preference…
…NO AD AGENCY.
2002 Top Global Brands
Source: BusinessWeek
Of the Top Global Brands…
On a normalized basis:
40% spend less on marketing and advertising than their nearest competitor!
But … they all spend more on IT – 18% more, on average!
Source: Z+Partners
…And It Has a Huge Impact!
Source: Z+Partners
+30%
Value of the top 10 global brands, as a percentage of their parent’s market value.(~ $390b!)
+160%
Difference in brand value between these leaders and their closest competitors
+340%
Difference in market cap between these leaders and their closest competitors
+18%
Difference in IT spending by brand leaders and their closest competitors(size adj.)
IT is the New Glue
customercare ebusiness
advertising
strategicplanning
employees
services
R&DIR
BRANDPROMISE
HR
supplychain
operationsinventorymgmt.
Shaping
Interpreting Integrating
Delivering
UsingImproving
Commodities
$.10
Experiences
$4.50
Culture
$???
?
Moving Up The Chain of Meaning
Products
$.25 $1.00
Services
Total inventory managed every 90 minutes.
Winning through design and aesthetics.
120,000 prescriptions filled by telephone.
Leadership through ease of use.
Claiming one’s heritage
The brand as sensory theatre.
New Technologies of Intimacy
#1 is HomeDepot.com
#2 is HomeDepotSucks.com
#3 is HomeDepot’s Suppliers
Another Quick Story
So What Comes Next?
Just Screw It.
Another Curve!
2000
2020
Another Curve!
2000
2020
Key Drivers: Values New Structures New Metrics Sustainability Accountability Transparency Responsiveness Dialogue
Another Curve!
2000
2020
Key Drivers: Values New Structures New Metrics Sustainability Accountability Transparency Responsiveness Dialogue
Some Questions For The Next Curve Growth : Is it the foremost goal? Scale : Is it the enemy of accountability? Time : Do we need a longer view? Profit : Is it only financial? Customers : Are we merely consumers? Metrics : How should we measure and
reward?
“We’ve pushed market wisdom and moral wisdom as far apart as possible.
The next chapter will be dominated by the painful process of bringing them back together.”
-Eamon Kelly
GBN (2000)
Thank You! Download This Presentation At www.zpluspartners.com/ta03
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