1. BEYOND ECO-BABBLE INSPIRE CHANGING THE CONVERSATION AROUND SOCIAL GOOD

2. SOCIAL GOOD: THE HISTORIC & CURRENT CONVERSATION 3. BUT CHANGE IS BREWING Brands today have new paths to purpose. A new global consumer is here. Most people arent looking to save the world. Were experiencing fatigue. 4. REASONS WHY CONSUMERS PURCHASE 5 DRIVERS TO PURCHASE*: Thinking about the brands or products that you currently purchase, which of the following qualities is the most important to you? 54% 6% 17% 15% 10%Allowing you to impact the world Fostering pride or security Enabling exploration/trying new things Creating a connection to other people Providing joy or happiness SOURCE: INSPIRE/CIVIC SCIENCE RESEARCH JUNE 2013*Based on Jim Stengels book Grow 5. THE GOOD NEWS: A NEW GLOBAL VANGUARD IS HERE. 6. IDENTIFYING A NEW CONSUMER VANGUARD WE LOOKED AT THE RANGE OF GLOBAL CONSUMER MACRO TRENDS, AND SAW THAT TWO ARE DOMINANT: From me / stasis oriented values to we / openness to change OUR THESIS: SOME CONSUMERS ALREADY LIVING THESE TWO MACRO TRENDS ARE THE NEW CONSUMER VANGUARD VALUES CHANGE Role of digital / mobile / social in shaping how we interact with the world CONNECTIVITY REVOLUTION 7. 23% MEET GENERATION WORLDTM Power Wealth Status VALUES Trendy Stylish Daring WIRED THRILL SEEKERS Connectivity: HIGH Eco Attitudes: LOW/AVG Shopping: HIGH Maintaining security Respect for tradition VALUES Following rules Down to earth Independent LOW TECH PRAGMATISTS Connectivity: LOW/AVG Eco Attitudes: LOW/AVG Shopping: LOW/AVG Meaning in life Environmentalism Helpfulness VALUES Social Original Innovative GENERATION WORLD Connectivity: HIGH Eco Attitudes: HIGH Shopping: LOVE TO SHOP Meaning in life World peace Equality VALUES Reliable Trustworthy CARING / NURTURERS Connectivity: LOW/AVG Eco Attitudes: AVERAGE Shopping: LOW/AVG SOURCE: Y&R Inspire Global Research May 2014 Low/ Moderate VALUESMe Tradition We Change CONNECTIVITY High 25% 23% 29% 8. MEET GENERATION WORLD We Values vs. Me Values Openness to Change Hyper-Connected Love to Shop Care About the Planet Ageless and Borderless Transmitters of Culture Game-Changers Expect Brands to be Part of the Solution SOURCE: Y&R INSPIRE GLOBAL RESEARCH MAY 2014 9. CHANGING THE CONVERSATION OLD NARRATIVE NEW NARRATIVE Consumer as hero Humble, believable role for brand Making a meaningful difference in life Helping our customers live better Optimistic, fun, invites you in Eye level, consumer as equal Brand and movement as heroes "Look at the good we're doing" Brand's "noble crusade to improve the world Fighting the enemy of consumer apathy Worthy, high-minded, guilt-inducing "Preaching" and talking down to customers 10. A NEW BRAND IDEAL: MEANINGFUL PURPOSE 11. We have used Y&Rs proprietary Brand Asset Valuator TM database to create a diagnostic tool to assess which brands are doing the best job of creating the meaningful connections Generation World craves and to help guide brands to the most productive path 12. OUR DIAGNOSTIC TOOL: THE MATRIX OF MEANINGFUL DIFFERENCES MORE MEANINGFUL MOREDIFFERENTIATED BRANDS WITH A STRONG DIFFERENTIATION, BUT NO MEANING BRANDS WITH STRONG MEANING AND STRONG DIFFERENTIATION BRANDS WITH STRONG MEANING, BUT NO DIFFERENTIATION BRANDS WITH NEITHER DIFFERENTIATION NOR MEANING BE HERE 13. BRANDS THAT ARE BOTH MEANINGFUL AND DIFFERENTIATED SEE OUTCOMES IN BRAND EQUITY MORE MEANINGFUL BRANDS WITH A STRONG DIFFERENTIATION, BUT NO MEANING BRANDS WITH STRONG MEANING AND STRONG DIFFERENTIATION BRANDS WITH STRONG MEANING, BUT NO DIFFERENTIATION BRANDS WITH NEITHER DIFFERENTIATION NOR MEANING BE HERE .98x Brand Strength .99x Brand Strength 1.26x Brand Strength .68x Brand Strength MOREDIFFERENTIATED 14. BRAND STRENGTH, IN TURN, TIES DIRECTLY TO FINANCIAL OUTCOME BRANDS THAT OUTPERFORM ON BRAND STRENGTH OUTPERFORM IN STOCK PRICE, TOO (AMONG OTHER FINANCIAL OUTCOMES) $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 BAV Brand Strength Top 50 Weighted Index S&P 500 CAGR: 8.9% CAGR 2.7% *Dollar value based on half year returns of the BEX, NASDAQ and S&P 500 on a hypothetical $10,000 initial investment *BEX Brand Strength Index returns weighted by change in Brand Strength for each period Performance of BAVs Brand Strength Index vs. the S&P 500 since 2001 15. WHAT THIS FRAMEWORK MEANS FOR BRANDS LOOKING TO BE SUSTAINABLE IN A CONSUMPTION- DRIVEN WORLD: WHAT IS UNIQUE ABOUT YOUR BRANDS IDENTITY AND OFFERING? HOW IS YOUR BRANDS PURPOSE FOR BEING UNIVERSALLY MEANINGFUL? THE ANSWER THE NEW (MORE PRODUCTIVE) CONVERSATION THE OLD OUT OF TOUCH CONVERSATION THE OLD (LESS PRODUCTIVE) CONVERSATION 16. THE BRANDS THAT ARE DOING IT RIGHT ARE DOING IT IN A WAY THATS APPROACHABLE AND TRUE TO /IN LINE WITH THEIR UNIQUE IDENTITY 17. WATERLESS 19. THE RESULT: LEVIS IS OUTPERFORMING ON BEING PURPOSEFULLY MEANINGFUL, IN A PLACE ALONGSIDE PATAGONIA AND NIKE. This also demonstrates that going beyond just traditional CSR to create meaning can be powerful, too. MORE MEANINGFUL MOREDIFFERENTIATED 20. WANT TO KNOW WHERE YOUR BRAND LIVES? We track over 3,500 brands in the BAV database, and if your brand is one of them we are happy to provide a free data point for you and 1 competitor MORE MEANINGFUL MOREDIFFERENTIATED ? ? ? ? 21. OPPORTUNITIES 1. Socially conscious consumer 2. Mainstream sustainability 3. Be Meaningfully Different 22. Trish Wheaton Founder/President YRG INSPIRE Trish.Wheaton@yrbrands.com yrgrp.com/inspire Contact UsQuestions? Anna Blender Brand Strategist BAV Consulting ABlender@bavconsulting.com Bavconsulting.com Follow us on Twitter @yrgINSPIRE