minimizing the risk of rebranding...rebranding is a process of visual differentiation in the minds...

June, 2013 Financial Executives Canada Conference

Minimizing the Risk of Rebranding

Risks CFO can help minimize

• Poor alignment and confusion

• No clear destination

• Implementation mayhem

• Investment surprises

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Rebranding is a process of visual differentiation in the minds of employees, consumers, investors, and competitors that builds stronger brand value

Reasons for rebranding• A shift in focus• Consolidation/acquisitions• Staying relevant• Name change• New leadership• Employee engagement

Significant investment and risk



The importance of value

Defining a relevant destination

Brands are one of the most valuable assets of a company


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Brand value a significant factor in market capitalization


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Brand Value Cycle

Value Proposition

Brand Belief

Brand Coherence Brand

Identity




Value Proposition

• Defines your unique offering that resonates with your target group

• Provides clear differentiation


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Identity

• The total promise that an organization makes to consumers

• The noticeable elements of a brand that identify and differentiate




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Brand’s Moments of Truth

Brand Belief

• Your mantra, the essence of why you are in business

• Answers the WHY of the organizationThe

importance of value



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“TO BE THE BETTER BANK by being the Best Run, Customer-focused, Integrated Financial Institution with a Unique and Inclusive Employee Culture.”

TD has just been named Canada’s most valuable brand in Interbrand’s Top 25 Best Canadian Brands for 2012 study.

TD now ranks as one of the seven largest banks by branch network in North America.

Brand Coherence

• The consistent application of the brand identity across all brand touch points




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TD Comfort

Leveraging the role of CFO

• Ensuring value is defined in measurable terms

• Strong link to investment areas

• Determine the value of the brand and the impact following the branding initiative




The power of alignment

Creating brand meaning


Consumer

Employees Company

The power of

alignment



Customer: higher loyalty and sales

• Bad experience = consumers stop spending

• Poor response after a bad experience, 47% of consumers stopped!spending!completely

• 17% of consumers who earn $100K or more have tweeted about a bad experience

(Temkin Group report, What Happens After A Good or Bad Experience?!, 2012 Study)


shikatanilacroixJD Powers 2012 Retail Banking Report



Employee: higher retention and productivity

• Willingness to do more than expected (39%)

• Higher productivity (27%),

• Better working relationships (13%)

• 66% of highly engaged employees reported that they had no plans to leave their company

(Sources: Psychometrics Canada 2010 Study, Towers Perrin 2004 European Talent Survey: Reconnecting with Employees: Attracting, Retaining, and Engaging, Towers Perrin)


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TD Comfort



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TD Comfort

Company: higher revenues, profits and shareholder returns

• 60 to 70 percent of employees engagement, average total shareholder’s return (TSR) stood at 24.2 percent

• 49 to 60 percent of their employees engaged, TSR fell to 9.1 percent

• Below 25 percent suffered negative TSR.

(Source: Employee engagement at double-digit growth companies, Hewitt Research Brief)





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MacFormat Magazine 2013

May, 2013



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shikatanilacroixPing pong table

Creative team meeting space



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Sold to Ecover in 2012. Ecover now the largest green cleaning products company, worth over $200 million with 300 employees

2001-2005$34 million39 employees

2005-2012$100 million100 employees



Leveraging the role of CFO

• Ensure branding initiative is aligned

• Have a dedicated team

• Ensure the right level of investment against the employee

• Provide both the soft and hard cost


The branding pitfalls

Avoiding implementation risks



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3 logos - 3 years

Attempted to be everything to everyone

Three-tiered pricing structure

80-100 boutique shops

Logo: Americanized acronym

“Fair and square pricing”



2011

2010

Campaign tagline:“Fair and square pricing”

2012

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Macy's (M)Sears Holdings (SHLD) Kohl's (KSS)

Risk: Wrong value proposition



The branding pitfalls

The big five mistakes CFOs need to avoid

1. No brand planning team or plan

2. Failure to align internal processes and goals

3. Focus on the functional and not the emotional

4. Poor buy-in within departments

5. Lack of governance on consistency

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Contact: [email protected]



minimizing the risk of rebranding...rebranding is a process of visual differentiation in the minds...

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