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This is a presentation I have been giving on how/why NFP\’s should use the value of their Brand to maximise their chances of success in seeking corporate philanthroic support
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Douglas Sumner – not to be copied or reproduced without permission© Douglas Sumner. Please do not copy without permission
1
“If this business were split up, I would give you the land and bricks and mortar, and I would take the brand and I would do better than you”
John Stuart, former CEO of Quaker Oats
Brand Value and Philanthropy
Douglas Sumner – not to be copied or reproduced without permission© Douglas Sumner. Please do not copy without permission
Key Drivers:
Government funding
How do we differentiate ourselves
in a crowded philanthropic market?
Corporate Philanthropy
Not-For Profit’s can differentiate
themselves by clearly articulating both the social and business
benefit(s)
Consider a Brand based business
proposition.
Your brand in support of theirs – in exchange
for philanthropic support
Demonstrate potential for return on investment
Douglas Sumner – not to be copied or reproduced without permission© Douglas Sumner. Please do not copy without permission
You can differentiate your requests for
Philanthropic support by highlighting the
value of your Brand and the business benefits
that flow from it.
Strong Brands establish long-term and power
balanced partnerships. This helps both parties to make decisions that
are commercial and more strategic in
nature.
The starting point is to understand what your
Brand is worth
Understand the value of your brand
Douglas Sumner – not to be copied or reproduced without permission© Douglas Sumner. Please do not copy without permission
We too have built our Brand
“We have invested 20 years and $2,000,000 (sic) to get where we are today.
Our Brand has attributes that can help you
That investment has built a powerful Brand that occupies a position of respect and credibility in the community as well as a Brand that speaks to considerable intellectual property around the operation of our market place. When considering your Philanthropic support you should know that you are ‘buying’ access to the attributes that make up our Brand for your benefit.
Our Brand supports a strong philanthropic proposition
Given that you are being offered the opportunity to leverage off the investment we have made to build our brand and given that access to our Brand helps you to achieve your own business goals, we believe that you will understand that a commercially viable and balanced level of philanthropic support starts at $500,000. (for instance)”
Our Brand is strong enough to give you a noticeable return on investment
Our Brand is of sufficient scale to support your CSR aspirations
By valuing your Brand, you are, in effect, saying to potential partners:
Douglas Sumner – not to be copied or reproduced without permission© Douglas Sumner. Please do not copy without permission
CONE Power Brand 100
Douglas Sumner – not to be copied or reproduced without permission© Douglas Sumner. Please do not copy without permission
Income before dividends and interest $9,345,026
Capital $11,000,000
Capital Charge 10.00%
Capital Earnings $1,100,000
'Intangible' Earnings $8,245,026
Brand Earning Index 41.00%
Brand Earnings $3,380,461
Brand Strength 29
Brand Discount Rate 12.90%
Brand Earning Growth Rate 5.00% Year1 2 3 4 5
Brand earnings 5 year forecast $3,380,461 $3,549,484 $3,726,958 $3,913,306 $4,108,971
Brand Earnings NPV Yrs 1-5 $13,017,437
Terminal Growth 4.00%
Terminal Value of Brand $48,014,943
Total Brand Value $61,032,379
Brand Value model
Douglas Sumner – not to be copied or reproduced without permission© Douglas Sumner. Please do not copy without permission
Key Inputs to the Brand Value Model
Douglas Sumner – not to be copied or reproduced without permission© Douglas Sumner. Please do not copy without permission
Major Brand Brand is a major brand in the Not for Profit ‘space’
Directly touch Australians
As the leading brand it will be instantly recognised and appreciated
Public Interest The Brand is Associated with an issue of significant public interest.
Brand will grow The Brand that will becomes increasingly prominent as the scale of problem becomes increasingly apparent
Favourable association
The opportunity to have your brand favourably linked with an issue of real concern to a key demographic
Now is the time The Brand will grow in value and the ‘cost’ of philanthropic support will rise to reflect that brand growth – now is a good time to invest.
Product and Service opportunities
The opportunity to work together to develop health, Lifestyle, technology and advice services and solutions for the demographic .
Connect with consumers
The opportunity for marketers to remain connected with consumers through philanthropy
Corporate Social Responsibility
The opportunity to demonstrate corporate social responsibility and significant foresight by supporting this major and currently underfunded public health issue.
Cause related marketing
Any number of cause related marketing opportunities.
Brand Value Proposition e.g
Douglas Sumner – not to be copied or reproduced without permission© Douglas Sumner. Please do not copy without permission
Brand Benefits Supporting NFP in meeting the challenge makes sound strategic sense for organisations looking to position their Brand through CSR
Commercial Benefits
NFP is seeking expressions of interest from organisations interested in providing products and services that can assist in supporting the needs of those affected.
Philanthropic Support
NFP is seeking expressions of interest from organisations with a history of Philanthropic activity and which have a willingness to support the Philanthropic activity of NFP.
Flagship Project NFP is seeking Philanthropic support for the introduction of the Flagship initiative.
Conversation with potential supporters (philanthropic value proposition)
Douglas Sumner – not to be copied or reproduced without permission© Douglas Sumner. Please do not copy without permission
Target your audience
Douglas Sumner – not to be copied or reproduced without permission© Douglas Sumner. Please do not copy without permission
•Philanthropic activities expose companies to new markets and increase market share through exposureNew Markets
•Philanthropic activities can involve the creation of products that meet social needs and increase differentiation.New Products
•Philanthropic activities engage new and existing consumers and contribute to a greater understanding of consumer expectations and behavior.
New Customers
•Philanthropic activities can lead to the development of cutting-edge technologies and innovative products also applicable to business use, patenting, and proprietary knowledge.
New Technologies
The benefits for companies from engaged philanthropy
Douglas Sumner – not to be copied or reproduced without permission© Douglas Sumner. Please do not copy without permission
Value your brand
Identified a range of relevant brand
attributes that can be woven into the philanthropic
narrative
Built a philanthropic narrative targetting the needs of donors
Research potential donors for ‘fit’
In order to leverage and grow the worth of your
Brand to increase philanthropic support:
Brand as a basis for a philanthropyProcess Summary
Douglas Sumner – not to be copied or reproduced without permission© Douglas Sumner. Please do not copy without permission
Thank-you for your attention
Questions ?