brands and businesses: the anatomy of growth

InterbrandManfredi Ricca

@Manfredi_Ricca Chief Strategy Officer, EMEA & LatAm

October 26th, 2016

Brands and the Anatomy of Growth

Growth is the only evidence of life

Businesses and Brands, like people, have a natural impulse to grow.

#BGB2016

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+5%178,119 $m

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New11,027 $m

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New10,386 $m

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New4,909 $m

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We pioneered the idea that brands are valuable business assets

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

BGB100 S&P500 MSCIWorld NASDAQ B2B

Source: Interbrand analysis with data sourced from Thomson Reuters and Best Global Brands

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Today, we see brands are powerful growth catalysts

How brands have historically helped businesses grow

How brands have historically helped businesses grow

Age of Identity

Brands acted as a tool to identify and differentiate offering.

How brands have historically helped businesses grow

Age of Identity Age of Value

Brands acted as a tool to identify and differentiate offering.

Brands leveraged to improve business decision making

How brands have historically helped businesses grow

Age of Identity Age of Value Age of Experience

Brands acted as a tool to identify and differentiate offering.

Brands leveraged to improve business decision making

Brands become the higher purpose that inspires a connected ecosystem

How brands have historically helped businesses grow

Age of Identity Age of Value Age of Experience Age of You

Brands acted as a tool to identify and differentiate offering.

Brands leveraged to improve business decision making

Brands become the higher purpose that inspires a connected ecosystem

Brands are becoming the consumer’s personal partner

Brands are theinterfaces betweenpeople and businesses

Brands bring your business strategy to life

Brands are deliberate acts of leadership.

Brands drive choice, loyalty and profit

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create an expectation

drive choice

increase expected value

deliver an experience

drive loyalty and advocacy

reduce risk

generate value

Brands drive choice, loyalty and profit

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The forces of growth in the age of you: built around people Culture

Your people, who they do it for, and why

Capability How your people get it all done, together

Expectations Your customers and what they demand

Experience How your customers interact with you

Growth

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How do we create business growth through brands?

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Forensic Detail

How do we create business growth through brands?

1. Define Growth

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Forensic Detail

CreativeEmpowerment

How do we create business growth through brands?

1. Define Growth 2. Fuel Growth

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Forensic Detail

CreativeEmpowerment

OrchestratedFocus

How do we create business growth through brands?

1. Define Growth 2. Fuel Growth 3. Sustain Growth

Define Growth

Forensic Detail

1

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“It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain’t so.”

—Mark Twain

Brands must be managed seamlessly across the entire customer experience to deliver business growth.

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Products "& services

Online "& offline "environments

People "& behaviors

Communications

The Brand The strategy "for the business

The experience

But there are thousands of things that could change to improve the brand experience and build value.

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And most of those experiences are controlled by departments outside the marketing function.

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This overwhelming amount of choice can easily create a lack of focus throughout the organization.And an incoherent experience for customers.

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What CEO’s and CMO’s need is a clear roadmap that helps identify and prioritize actions that will have the most impact on growth.

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And a means to align their organization around those priorities.

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Leadership…!

Clarity!Clarity internally about what the brand stands for in terms of its values, positioning and proposition. Clarity too about target audiences, customer insights and drivers.

Commitment Internal commitment to the brand, and a belief internally in its importance. The extent to which the brand receives support in terms of time and influence.

Governance The degree to which the organization "has the required skills and an operating model for the brand that enables effective and efficient deployment of the brand strategy.

Responsiveness The organization’s ability to constantly evolve the brand and business in response to, or anticipation of, market changes, challenges and opportunities.

…steers brand experience...!

Consistency The degree to which a brand is experienced without fail across "all touchpoints or formats.

Presence The degree to which a brand feels omnipresent and is talked about positively by consumers, customers and opinion formers in both traditional and social media.

Engagement The degree to which customers/consumers show a deep understanding of, active participation in, and a strong sense of identification with, the brand.

…influencing expectations!

Authenticity The brand is soundly based on an internal truth and capability. It has a defined story and a well grounded value set. It can deliver against the (high) expectations that customers have of it.

Relevance The fit with customer/consumer needs, desires, and decision criteria across all relevant demographics and geographies.

Differentiation The degree to which customers/consumers perceive the brand "to have a differentiated proposition and brand experience.

We know what those priorities are.

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Leadership…! …steers brand experience...! …influencing expectations!

And their impact on business performance.

Staff engagement > churn, cost to hire, etc.

Efficiency > reduced costs

Sense of purpose > productivity

Speed to market > margin protection

Value perception > premium justification

Desirability > choice/demand/price

Uniqueness > price, loyalty

Efficiency and recognition > cost saving, loyalty driver

Top of mind > choice, loyalty reinforcement

Emotional investment > loyalty, price, advocacy

Fuel Growth Creative Empowerment

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Growth is a permanent process of curiosity, learning and development

“Culture eats strategy for breakfast.”

—Peter Drucker

It all starts on the inside

When employees know they can make a difference, they do.

•  Loyalty is a direct result of customer satisfaction.

•  Satisfaction is largely influenced by the value of services provided to customers.

•  Value is created by satisfied, loyal, and productive employees.

The service-profit chain - HBS

Experience and creative transformation

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Ultimately we need to shape the experiences customers have with the business to create real change.

The brand is the score.The experiencethe performance.

The Brand

The Experience

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And that experience is increasinglycategory-agnostic.

Great brands no longer belong to a sector.

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Great brands no longerbelong to a category.

They define one, by creating an experience built on a well-defined proposition and creative idea.

So while before categorieswere articulated from a supply perspective, today they are articulated from a demand perspective

Today the old question “what business are we in”,is answered by a benefit,not a category. Brands are replacing sectors.

In the business of proximity

In the business of contemporary Britishness

In the business of extreme energy

In the business of dreamweaving

Sustain Growth

Orchestrated Focus

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“Growth is never by mere chance; it is the result of forces working together. ”

—James Cash Penney

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It takes vision underpinned by orchestration at every level—from people to processes

Marketing Capabilities

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Its one thing to create a process for change and develop experiences that will change how customers interact with the business. But to sustain change, we need to permanently improve the skills and capabilities of the organization.

The fundamentals have changed

From Chief Marketing Officer “Customer Advocate” Key responsibilities: •  Insights •  Brand Strategy •  Internal Brand Engagement •  Influencing •  Implementing the Brand identity

To Chief Integration Officer “Leader of the Customer Engagement Machine”

Key responsibilities: •  Insights, Data, Analytics •  Brand Purpose and Experience Strategy •  Building skills, standards, tools •  Integrating the Silos •  Enabling Coherence •  Deploying Technology

The Alpha of Cohesiveness

Investment is required beyond ‘engagement’

Understand brand

Empowered Brand Engagement: Creating understanding andpassion around the brand

Marketing Capabilities:Ensuring we have the right structure,processes, tools, skills, and talent to effectively deliver the brand

Investment is required beyond ‘engagement’

Brand Engagement: Creating understanding andpassion around the brand

Skills to do job

Tools and processes to do job

Understand brand

Strong teams and structure

Empowered

The mandate and expectations of the central brand and marketing team have changed

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1990s •  Savings in procurement costs •  Message consistency "

across brands

1990s – mid 2000s •  Discipline and rigor in measuring

effectiveness •  Deployment of IT and marketing

automation

Late 2000s •  Digital centers of excellence •  Balancing effectiveness "

with efficiency

Today •  Real-time personalization •  Customer experience management •  Data-mining to drive growth

•  Advertising •  Research •  Media buying •  Creative

•  Data management •  Direct marketing •  CRM & Lead management •  Performance measurement

•  Online marketing •  Social media marketing •  Advanced analytics modeling •  Integrated campaign management

•  Integrated data analytics •  Marketing innovation •  Customer experience planning •  Integrated engagement planning

Scop

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Key Focus

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It takes vision underpinned by orchestration at every level—from people to processes

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Recap

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Forensic Detail

CreativeEmpowerment

OrchestratedFocus

Growing brands and businesses

1. Define Growth 2. Fuel Growth 3. Sustain Growth

Thank you @Manfredi_RiccaChief Strategy Officer, EMEA & LatAm