THE CHARISMA INDEX

Summary Document February 2018

Charisma: the study in brief

SIX DIMENSIONS:

Consciousness:anticipatingconsumerneedsandrespondingtothemPurpose:havingatruesenseofwhatitstandsforandwhereitisgoingIntegrity:abrandconsumersfeeltheycantrusttoactwithintegrityanddotherightthingGenerosity:willingtogiveofitstimeandservices,notjustmotivatedbyprofitCourage:havingthecouragetotrulyinnovate,notsimplytofolloworcopyothersDelivery:doingwhatitsaysitwill,andnotlettingpeopledown

WHAT:Multimarketonlinesurvey,panelsample

WHO:Almost10,000onlineinterviewsacross4markets

WHERE:

WHY:Multi-marketexplorationofbrands’capabilities:

• tobuildenduringrelationships• toachieveleadershipstatus• tocreatelong-termsuccess

Multi-dimensionalpositioningofbrands:• past/currentperformance• futureresilienceandprosperity• basisofconsumerrelationship

Provideadefinitiveexplorationoftheabove,whichareneglectedinexistingbrandequitystudiesCharismaConsortium:KeithWells,Brandwell– OriginatorJulietStrachan,WindsoredgeResearch- StudydevelopmentAllysonStewart-Allen,InternationalMarketingPartnersDeliveredthroughRespondi

Charisma: brands measured

Resultsforbrandsinthisdocumentareshowninthecolourofthesectorasunderlinedabovee.g.allInternetbrandsareshown inpink

AdidasAldiAllianzBecksBossBraunDeutscheBankLidlLufthansaMiele

Internetbrands:

AirBnBAmazonFacebookGooglePaypalTwitterUberTechnologybrands:

AppleMicrosoftSamsungSony

FMCGbrands:

CocaColaJohnson&JohnsonMcDonaldsKellogg’sStarbucks

Financebrands:

AmericanExpressHSBC

Auto&transportbrands:

BMWEmiratesFordMercedesBenzVolkswagen

Media&Entertainmentbrands:

BBCDisneyFIFALEGONetflixOtherbrands:

IKEANike

AlitaliaAlfaRomeoBarillaFerrariFerreroFiatGucciPeroniPirelliUnicredit

BritishAirwaysBarclaysBTCadbury’sCarlsbergJohnLewisNatWestRyanairSportsDirectTesco

EquifaxHersheyHiltonTheGapTiffanyTrumpUnitedAirlinesVerizonWalMartWellsFargo

30common,globalbrands,plus10localhomebrands:

A study of brand resilience: will people keep buying you?

DIAGNOSTIC

Insights into brands’ real status with consumers

Competitive and peer positioning

DYNAMIC

Different perspectives of brands’status over time

Projective understanding of changing consumer relationships

DIRECTIVE

Focus on corrective / affirmative action

Strategies to help brands improve their chances

SUMMARYOF FINDINGS

WhilstLEGOconsistentlyexcelstodelighttimelessly,FIFAhasfailedconsumersdramatically,condemnedacrossdemographicsandgeography

LEGO is the leading ‘global brand’, FIFA the lowest

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8Consciousness

Purpose

Integrity

Generosity

Courage

Delivery

LEGO

Starbucks

FIFA

CharismamultimarketsurveyNovember2017Averagescoresoutof10foreachdimension;Allmarkets,Base1500-1600perbrand

Top, mid & lowest global brand

LEGO and top tech brands feature significantly in all markets

TOTAL Ranking

Lego 1st 1st 6th 1st 3rdAmazon 2nd 5th 2nd 2nd 1stGoogle 3rd 6th 3rd 7th 2ndPaypal 4th 3rd 1st 3rd 14thDisney 5th 11th 4th 4th 6thIkea 6th 2nd 5th 5th 13thSamsung 7th 4th 10th 6th 9thMicrosoft 8th 9th 7th 8th 8thApple 9th 10th 8th 11th 7thSony 10th 13th 11th 10th 10thCharisma multi market survey November 2017 Ranking of 30 global brands only All markets base 1500-1600 per brand; per market c.350-530 per brand

NB: Rankings are only within the 30 global brands and do not account for the 10 local brands within each market

Theleadingbrandsinthissectordemonstratethevalueofunderstandingwhatconsumersneed,andmeetingthoseneeds

Theageoldprinciplesapplyineventhenewestofcompetitivefields

Top Internet brands globally

Internet service brands with a resilient platform for growth

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Consciousness Purpose Integrity Generosity Courage Delivery

Amazon Google PayPalHighest to lowest brand recorded (Global)

Charisma multi market survey November 2017Average scores out of 10 for each dimension; All markets, Base 1500-1600 per brand

Popularitydoesnotguaranteecommitment

It’seasytostandagainstsomething–whatcountsiswhatyoustandfor,andthatyoudeliver

Newerbrandsstillhavetobuilddepthandresilience - becausewithoutit,consumerswillnotcontinuetobuyyou

Because ‘disruptive’ is not enough

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Consciousness Purpose Integrity Generosity Courage Delivery

AirBnBTwitter Facebook Internet brands avg.

Charisma multi market survey November 2017Average scores out of 10 for each dimension; All markets, Base 1500-1600 per brand

Low Internet brands globallyHighest to lowest brand recorded (Global)

Althoughrecognizedasafirstinitsfield,Uber doesnothavethecriticalmassofconsumersupporttowithstandeventheslightestchallenge

Surprisingly,thisistrueforbothyoungerandoldergenerations– youngpeoplemaybuyintotheUberconceptmorereadily,buttheyhavelittlemoreregardfortheUberbrand

Uber lacking brand depth for the future

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Consciousness Purpose Integrity Generosity Courage Delivery

uber Av. Internet brandsHighest to lowest brand recorded (Global)

Charisma multi market survey November 2017Average scores out of 10 for each dimension; All markets, Base 1500-1600 per brand

Uber vs Internet brand average

Inthetechsector,brandsaregenerallyviewedpositively,seentopushtheinnovationboundariesanddeliveragainstconsumerneeds:

• Samsungisthemostconsistentandpowerfulbrand

• Appleisthemosterraticbrand:itisaloneindippingbelowtheGlobalAveragefor‘generosity’,andhasthegreatestdrop-offbetween‘courage’and‘delivery’

Consumer technology: natural strength, but not unassailable

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Consciousness Purpose Integrity Generosity Courage Delivery

HighestBrand Microsoft Sony

Samsung Apple Globalbrandavg.

Charisma multi market survey November 2017Average scores out of 10 for each dimension; All markets, Base 1500-1600 per brand

Brands vs technical sector averageHighest to lowest brand recorded (Global)

VWistheweakestautomotivebrand,mostnotablybehindonIntegrityanddelivery

VWisthelowestratedcarbrandinallmarketsexceptItaly(23rd)

• whereitisonaparwithAlphaRomeo,aboveFord,andwherethelowestautobrandratingisreservedforhomegrownFiat(34th)

EveninGermany,VWisclearlyatroubledbrand• UK26th• DE30th• US31st

NBTheseresultswerecurrentbeforetheTimesarticleofJanuary2018

Positionsgivenareoutof40brandsineachmarket

Automotive: respected, but not liked;VW in serious trouble

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Consciousness Purpose Integrity Generosity Courage Delivery

BMW Mercedes-Benz

Ford Volkswagen/VW Car brands average

Charisma multi market survey November 2017Average scores out of 10 for each dimension; All markets, Base 1500-1600 per brand

Automotive brands vs sector averageHighest to lowest brand recorded (Global)

Lufthansa,BAandEmiratesdemonstratesomeresidualresiliencefromtheirheydays,butairlinesareamongstthelowestregardedbrandsacrossmarkets

• Ryanairistheleastwellregardedbrandinanymarket– abrandthatappearstolackanyvirtue

• Nationalcarriersseenaspoorperformersandfailasflagflyers

• Hasthesectorbecomeacommoditywithalossofengagementandrespect?

Airlines are a deeply troubled sector, with RyanAir at rock bottom

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Consciousness Purpose Integrity Generosity Courage Delivery

Emirates AlitaliaIT LufthansaDE UnitedAirlinesUS

BAUK RyanairUK Globalbrandavg.

Charisma multi market survey November 2017Average scores out of 10 for each dimension; All markets, Base 1500-1600 per brand

Airline brands vs global average

Inasectoruniversallybelowglobalaverageratings,AMEXemergesasthestrongestfinancialbrand

Allmarketsratetheirownfinancialinstitutionsrelativelylow

WellsFargo,Equifax,DeutscheBankandUniCredit areallwithinthebottomfiverankedbrandsintheirrespectivemarkets

Consumerrespectandtrustwillbehardtowinback,butthebarissetverylow

Banking sector: poor reputation will make recovery difficult

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Consciousness Purpose Integrity Generosity Courage Delivery

AmericanExpress HSBC WellsFargoUS EquifaxUS UniCreditIT

AllianzDE DeutscheBankDE NatWestUK BarclaysUK Globalbrandavg.

Charisma multi market survey November 2017Average scores out of 10 for each dimension; All markets, Base 1500-1600 per brand

Finance brands vs Global brand average

McDonaldshaspreviouslyenjoyedmuchhighersenseofpurposeandethicalequity(despiteconcernsovernutritionalvalue).However,itisnotenjoyingthatcriticalleadcurrentlyAldileadsthefoodretailsector,enjoyingastrongleadoverrivalLidl,eveninGermanyTescoinUKlackspurpose,courageandconsciousness– allessentialforstrongretailmarketpositionDiscountersaretheonly‘aboveaverage’scores,andonlyonConsciousnessandPurpose:sectorappearsunlovedandunheraldedforotheraspectsofbeingontheconsumer’sside,orinnovation/differentiation

Food retail/restaurants: room to excel, but little evidence of it

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Consciousness Purpose Integrity Generosity Courage Delivery

McDonalds Starbucks TescoUK AldiDE

LidlDE WalMartUS Globalbrandavg.

Charisma multi market survey November 2017Average scores out of 10 for each dimension; All markets, Base 1500-1600 per brand

Food restaurant & retailer brands vs Global brand average

Brands still not on the consumer’s side: weak engagement, low defences

Charisma multi market survey November 2017Average scores out of 10 for each dimension; All markets, Base 1500-1600 per brand

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Consciousness Purpose Integrity Generosity Courage Delivery

Technologybrands

Internetbrands

FMCGbrands

Auto/Transportbrands

Otherbrands

Media&entertainmentbrands

Financebrands

1.BrandsareuniversallyregardedlowestforGenerosity:CSRpoliciesarenotworking,brandsarestilloutforthemselves

2.TheInternetandTransportsectorsarethemostpolarized,whilstFIFAdragstheMedia&Ent.sectordown

3.Financeisisthelowestsector,includinglocalfinancebrandswhichgenerallyranktowardsthebottomineachmarket

Charisma dimensions – average scores across 30 global brands

Widest gulf in responding to consumer needsThemostpolarizingdimensionisinConsumerConsciousness,whichiswherethewidestgapisseenbetweenthehighestandlowestscoringbrands

Withoutthisplatform,brandswillstruggletobuildrelationshipsandsustainablesuccess.Dissatisfactionwillleadtodefection

Consciousness: aware of consumer needs, and good at responding to them

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Amazon Google Samsung AirBnB HSBC FIFA

CharismamultimarketsurveyNovember2017Averagescoresoutof10forConsciousness;Allmarkets,Base1500-1600perbrand

FerrerolovedbyItalians,butAlitaliaand

UniCredit scrapeinatthebottom

TrumpbottomofthepileinUS,someway

behindEquifaxandWellsFargo

Ryanairrecordsthelowest

scoresacrosstheentirestudy,andisbottominthe

UK

OnlyGermanyreallytalkuptheirhome

grownbrands

Marketsshowagreatdealofconsistencyforglobalbrands,butviewhome

brandsdifferently

THANK YOUForfurtherdetailspleasecontact:

KeithWells keith.wells@brandwell.uk.com

Juliet Strachan juliet.strachan@windsoredge-research.com

AllysonStewart- Allenallyson@intermarketingonline.com