Transcript
Page 1: Design Firm Leadership Conference: Intelligent Branding in a Downturn Economy

Intelligent Branding in a Downturn Economy

Insights from 2009 Best Global Brands

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2009 Best Global Brands

“Most Useful Rankings to CEOs” —PR Week

1. Fortune 500

2. Best Companies to Work for

3. Interbrand’s Best Global Brands

Intelligent Branding in a Downturn Economy | September 24, 2009

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What is brand value?

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Which MP3 would you buy?

$200

•16GB

•Video out – high definition

•Wireless file sharing (MP3s + more)

•Touch control

• Integrated voice recorder

• Built-in FM tuner (32 stations)

$250 • 8GB

• Video out (not HD)

• Wireless MP3 shop

• Touch control

MP3 #1 MP3 #2

Intelligent Branding in a Downturn Economy | September 24, 2009

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What about now…?

Creative Zen X-Fi 2 Apple iPod Touch

Intelligent Branding in a Downturn Economy | September 24, 2009

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Brands drive value

$3.00 $1.00

High Quality Coffee Excellent Flavor Non-branded

High Quality Coffee Excellent Flavor

Branded

Intelligent Branding in a Downturn Economy | September 24, 2009

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Benefits of a strong brand

Drives demand

Commands strong reputation

Generates premium fees/revenue

Creates strong word of mouth

Delivers loyalty

Enhances ability to negotiate with partners

Elevates ability to recruit top talent

Intelligent Branding in a Downturn Economy | September 24, 2009

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Benefits of a strong brand

Drives demand

Commands strong reputation

Generates premium fees/revenue

Creates strong word of mouth

Delivers loyalty

Enhances ability to negotiate with partners

Elevates ability to recruit top talent

Frank Gehry

Intelligent Branding in a Downturn Economy | September 24, 2009

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It is a key competitive asset

Creates demand

Creates loyalty

It influences customer’s choice

Value

Simply put, brands drive choice and create value

Role of

Brand

Brand

Strength

Intelligent Branding in a Downturn Economy | September 24, 2009

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Survey says: Many of you believe branding makes a difference

In your opinion, what are ways that branding/marketing could add the most value to your organization?

Source: 2009 EFCG Architecture & Design Firm Confidential Benchmarking Survey

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+2%

#2 (was #2)

Winner New

-4%

#98 (N/A)

Loser

-10%

#38 (was 38)

+14%

#50 (was 62)

Winner

2009 Winners or Losers?

Intelligent Branding in a Downturn Economy | September 24, 2009

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How should brands be managed in a downturn?

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Recessionary tools that work in other parts of the business, don’t necessarily apply to branding

While you can downsize, right size, in-source, and outsource… you can’t fire the brand. It won’t go away.

—The Crisis Paradox, Josh Feldmeth, Interbrand

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Your choice

Ignore it Manage it

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Successful brands in professional services

1. Delivered on a clear value proposition

2. Invested in their culture and their people

3. Behaved boldly in tough times, investing in strategic assets/R&D

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In professional services, it’s all about the experience you deliver

1. Out-behave the competition

2. Understand your client’s business and how to make them win

Intelligent Branding in a Downturn Economy | September 24, 2009

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How can we make our clients’ brands work harder for them?

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What were some of the key learnings from 2009?

Intelligent Branding in a Downturn Economy | September 24, 2009

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At the core of great brands is a simple idea

Man shall not be subservient to machine

Performance Simple, easy, enjoyment

Intelligent Branding in a Downturn Economy | September 24, 2009

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Brand touches all parts of the customer journey

People Environments

Communications Product / Service

Brand

Intelligent Branding in a Downturn Economy | September 24, 2009

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Apple Store 767 Fifth Avenue

Architect:

Bohlin Cywinski Jackson

2006

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Apple Store 767 Fifth Avenue

Architect:

Bohlin Cywinski Jackson

2006

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Apple Store 767 Fifth Avenue

Architect:

Bohlin Cywinski Jackson

2006

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Apple Store 767 Fifth Avenue

Architect:

Bohlin Cywinski Jackson

2006

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Consistency across all touch points

I’m a PC I’m a Mac

Intelligent Branding in a Downturn Economy | September 24, 2009

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BMW Welt

Architect: Coop

Himmelb(l)au

2007

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BMW Welt

Architect: Coop

Himmelb(l)au

2007

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BMW Welt

Architect: Coop

Himmelb(l)au

2007

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BMW Welt

Architect: Coop

Himmelb(l)au

2007

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Performance is woven into all touch points

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Embracing glocalization

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McDonalds (UK) West Thurrock

Architect:

SHH

2005

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McDonalds (UK) West Thurrock

Architect:

SHH

2005

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McDonalds (UK) West Thurrock

Architect:

SHH

2005

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So, does it really matter?

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The numbers speak for themselves

Brand value 2001 $13,858MM

Brand value 2001 $25,289MM

Brand value 2001 $5,464MM

Brand value 2009 $21,671MM

Brand value 2009 $32,275MM

Brand value 2009 $15,433MM

36% increase 22% increase 65% increase

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5 macro trends

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1. It’s all about the experience

Prada Epicenter New York

Architect:

Rem Koolhaas (OMA)

2001

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2. No brow

Forever 21 San Francisco

Architect:

Gensler

2005

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3. Mobility

Uniqlo Pop up New York

Architect:

LOT-EK

2006

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4. Sustainability

Bank of America New York

Architects:

Cook+Fox Gensler

2009

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5. Design for all

Aloft Hotel

Rancho Cucamonga

$99/night

2009

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Thank you!

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Andrea Sullivan

Executive Director, Client Services

212.798.7510

[email protected]

http://www.interbrand.com/newyork