Lessons Learned from Tenet's 2015 Most Powerful Brands

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Lessons Learned from Tenet’s 2015 Most Powerful Brands November 16, 2015

Transcript of Lessons Learned from Tenet's 2015 Most Powerful Brands

Page 1: Lessons Learned from Tenet's 2015 Most Powerful Brands

Lessons Learned from Tenet’s 2015 Most Powerful Brands

November 16, 2015

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Today’s agenda

•  The benefits of a powerful corporate brand

•  How Tenet determined the Top 100 Most Powerful Brands

•  Macro trends impacting the brand landscape

•  Lessons from the 2015 Most Powerful Brands

•  Summary and key take-aways

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The benefits of a powerful corporate brand

Powerful brands:

•  Help attract and retain talent

•  Pave the way for favorable terms with partners and suppliers

•  Drive word of mouth for recommending products and services

•  Enable companies to command a premium price for their offerings

•  Provide valuable insulation in times of crisis

•  Encourage media to seek management’s point of view

•  Have an impact on financial performance

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How Tenet Partners determines the Top 100 Most Powerful Brands

Business decision-makers Executives at companies with sales revenue of $50 million to several billion

•  80% involved in B2B purchase decisions

•  90% determine purchase needs

•  72% select specific companies to work with

•  68% authorize purchases

When viewed as consumers Affluent and well-educated

•  87% college degrees

•  83% HH size 2 or more

•  74% above $75K HHI

•  72% ages 35+

•  Investment savvy

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The CoreBrand Index Opinion Elite survey audience

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How Tenet Partners determines the Top 100 Most Powerful Brands

•  A unique database of 1000+ companies across 50 industries

•  25 years of corporate brand tracking

–  10,000 telephone surveys a year

•  BrandPower is an easy to understand and consistently measured metric that links to financial performance of a company. BrandPower is comprised of two key measures:

–  Familiarity: rated on a 5-point scale (very well known, familiar, somewhat familiar, know name only, unfamiliar)

–  Favorability: attributes rated on a 4-point scale (excellent, good, fair, poor) •  Overall Reputation •  Perceptions of Management •  Investment Potential

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A rigorous, quantitative approach to understanding brand equity

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Intangible assets, including brand, are increasingly contributing to corporate value

Why Brand is important

17%

32%

68%

80% 80% 84%

83% 68% 32% 20% 20% 16%

1975 1985 1995 2005 2010 2015

Physical and financial assets

Other factors

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Components of the S&P 500 as a percentage of market value Source: EY Integrated Reporting/Ocean Tomo’s Annual Study of Intangible Asset Market Value — 2015

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Margins of Most Respected companies nearly 2X vs. Least Respected

Most respected companies financially outperform lesser peers

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28.2%

16.9%

11.7%

5.4%

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Operating Margin % Net Profit Margin %

% M

argi

n R

ates

Average Margin Rates Most / Least Respected

Most Respected Average Least Respected Average

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Top 10 BrandPower risers have increased communications more aggressively

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Represents the average paid media spend for the Top 10 risers and 10 biggest decliners on an annual basis.

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Macro trends impacting the brand landscape

The CMO role is being reshaped and amplified to address a number of macro trends:

•  Blurring industry lines

•  Digital convergence

•  New innovations

•  Fast moving disruptors

A new set of skills is required to stay relevant and ahead of the game.

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Tenet Partners 2015 Top 100 Most Powerful Brands

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Lessons from 2015’s Most Powerful Brands

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Achieve strategic alignment

Lessons learned from Amazon

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Create brand clarity

Lessons learned from Google

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Delivering consistent experiences that drive business results

Lessons learned from Wells Fargo

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3 Effective strategies for driving growth and brand value:

Summary and key take-aways

Achieve strategic alignment across the

enterprise for full impact

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Create brand clarity to drive focus and on-point

business decisions

Design customer experiences that drive loyalty

and consistent results

Brand Value

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Thank you

tenetpartners.com

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