Generous Brands 2.0Tim Greenhalgh

Chairman and Chief Creative Officer

FITCH/GROUP XP

@timghalgh @FITCHdesign

1. History 2. A Generous Spectrum 3. Stirring Emotions 4. The Value of Experience

A new spirit

Generosity of Things

BehaviourThings

Generosity of

BehaviourExperience

Things

Generosity of

In the beginningGenerosity

Genus - Lineage (Nobility)

17th Century

(Nobility) of Spirit

Gallantry Courage

Strength

Gentleness Fairness

17th Century

Fertile Land Strong Animals Abundant Food

17th Century

Strong Liquor Powerful Medicine

17th Century

‘Largess’

The virtue of giving good things to others freely and abundantly

17th Century

Rejection of…

Selfishness Greed Fear

17th Century

Rejection of…

Selfishness Greed Fear Meanness

17th Century

William Morris 1834 -1896 Textile designer, poet, novelist and socialist

19th Century

Sir… What is the purpose of art and design…?

…to give hope

Every age has had its hope… hopes that look to something beyond the life of the age itself… hopes that try to pierce into the futureWilliam Morris - Signs of Change - Chapter 4 The Hopes of Civilisation 1888

Are we wired to be generous?

What generous people’s brains do differently

Nicole Torres 2015 Harvard Business Review

NEUROECONOMICS

NEUROECONOMICS

How much this benefits

me

‘Survival of the Fittest’

Ventral Striatum

How much this benefits

you

‘Community Minded’

Temporoparietal Junction

TEMPOROPARIETAL JUNCTION

Community Minded

Associated with empathy and thinking of others

Alan Watts - 1915-1973 British philosopher and writer

What do you desire?

“Doing things you don’t like doing…to go on to do things you don’t like doing”

All wretch and no vomit!

What would you like to do if money were no object ?

Dispatch Work Jan Vormann

We had to understand that everyone must be personally accountable and responsible for the outcome of every single customer interaction.

We started the conference with community service

21st Century

MEAN

BRIBERY

survival

How much this benefits me

progress

CYNICAL

In the rush for the new… we’re forgetting how to communicate

things that genuinely move people Sir John Hegarty BBH

MEAN

BRIBERYGIVE & TAKE

GIVING FREELY

progress

CYNICAL

survival

How much this benefits me

How much this benefits you

A new spirit of value exchange

GIVE & TAKE

0

10

20

30

40

50

60

70

Number of Amazon Prime members in the United States as of June 2016 (in millions)

DEC 13 JUN 14 DEC 14 JUN 15 DEC 15 JUN 16

© Statista 2017

63m

54m

44m

40m

28m

25m

GIVING FREELY

Lockheed Martin Group VR - Mars Experience Bus

Giving freely that which

stirs emotion

Stirring Emotions Generosity of Experience

46

P E R S O N A LE X P E R I E N C E S

47

S H A R E DE X P E R I E N C E S

48

B O U G H TE X P E R I E N C E S

7 8 % O F M I L L E N I A L S P R E F E R T O S P E N D

M O N E Y O N E X P E R I E N C E S

O V E R P R O D U C T S Harris Research International 2015

50

EXPERIENCES = CURRENCY

ADMAP - Design a luxury experience 2015

52

It took Uber 5 years to book its billionth trip then…

6 months to book its 2nd billionth journey

WHY DID HEGO THAT WAY??

GENERATION ‘PICKY’

BB, X, Y & Z

but does a Generous Experience

make money ?

QUANTIFYING SUCCESS The financial impact of creating generous brand experiences

Brands that create extraordinary experiences achieve financial returns more than double the market

Our Methodology

EXPERIENCE INDEX

Group XP Experience Index ANALYSIS

46 COUNTRIES 43,000 BRANDS 1/2 MILLION BITS OF DATA 3 YEARS PERFORMANCE DATA

EXPERIENCE INDEX

INTERACTIONIMPRESSION

RESPONSIVENESS RESILIENCE

Group XP Experience Index THE 4 COMPONENTS TO UNLOCK VALUE

IMPRESSION Stands for something unique

1943 Ingvar Kamprad launched IKEA - 17 yrs old

“to create the better everyday life for the many people”

Impression Stands for something unique

1956 the birth of flatpack

Lövet table

“to make it easier to get this home remove the legs and then screw them back on when you get home”

Impression Stands for something unique

Impression Stands for something unique

INTERACTION Delivers on your most important needs

INTERACTION Deliver on your most important needs

RESPONSIVENESS Have better digital services and engaging content

RESPONSIVENESS Have better digital services and engaging content

RESPONSIVENESS Have better digital services and engaging content

RESPONSIVENESS Have better digital services and engaging content

RESILIENCE Strive to make people’s lives better

RESILIENCE Strive to make people’s lives better

RESILIENCE Strive to make people’s lives better

RESILIENCE Strive to make people’s lives better

RESILIENCEStrive to make people’s lives better

RESPONSIVENESSHave better digital services and engaging content

INTERACTIONDelivers on your most important needs

IMPRESSIONStands for something unique

S&P 500

Stock Performance - Jul 13 - Sept 16 MSCI vs S&P vs EI

Source: Bloomberg Millward Brown Analysis

MSCI WORLD INDEX

28.3%

14.3%

EXPERIENCE INDEX

73.3%80%

-10%

GLOBAL TOP 30

EXPERIENCE INDEX

TOP 50 GLOBAL EXPERIENCE BRANDS

TOP 50 GLOBAL EXPERIENCE BRANDS

DEUTSCHE POST

FEDEXDHL

PAMPERS

APPLE

PAYPAL

FACEBOOK

VISA

GOOGLEIKEAUPS

DISNEY

SOUTHWEST

NIKE

AMAZON

TESLA

SAMSUNGSKYECOVER

HUGGIES

IBM

BMWBOSE

COLGATE

ADIDAS

FERRARI

VERIZONMERCEDESUNDER ARMOUR

OMO

TOP 50 GLOBAL EXPERIENCE BRANDS

IMPRESSION

INTERACTION

RESPONSIVENESS

RESILIENCE

IMPRESSION

INTERACTION

RESPONSIVENESS

RESILIENCE

IMPRESSION

INTERACTION

RESPONSIVENESS

RESILIENCE

UNPACKING THE TOP 3 SCORES

IMPRESSION

INTERACTION

RESPONSIVENESS

RESILIENCE

IMPRESSION

INTERACTION

RESPONSIVENESS

RESILIENCE

IMPRESSION

INTERACTION

RESPONSIVENESS

RESILIENCE

149.9

134.2

129.9

143

144

155

159

148

118

144

127

129

130

131

126

UNPACKING THE TOP 3 SCORES

DEUTSCHE POST

FEDEXDHL

PAMPERS

APPLE

PAYPAL

FACEBOOK

VISA

GOOGLEIKEAUPS

DISNEY

SOUTHWEST

NIKE

AMAZON

TESLA

SAMSUNGSKYECOVER

HUGGIES

IBM

BMWBOSE

COLGATE

ADIDAS

FERRARI

VERIZONMERCEDESUNDER ARMOUR

OMO

HOW GLOBAL BRANDS IMPACT MARKET SECTORS

VERIZON

GLOBAL TOP 10 TECHNOLOGY BRANDS

APPLE

PAYPALFACEBOOK

GOOGLEAMAZONSAMSUNGSKY

IBMBOSE

GLOBAL TOP 10 LIFESTYLE BRANDS

DISNEY APPLE IKEA NIKE AMAZON SAMSUNG TESLA BOSE ADIDAS UNDER ARMOUR

DEUTSCHE POST

FEDEXDHL

HOW GLOBAL BRANDS IMPACT LOCAL MARKETS

PAMPERS

APPLE

PAYPAL

FACEBOOK

VISA

GOOGLEIKEAUPS

DISNEY

SOUTHWEST

NIKE

AMAZON

TESLA

SAMSUNGSKYECOVER

HUGGIES

IBM

BMWBOSE

COLGATE

ADIDAS

FERRARI

VERIZONMERCEDESUNDER ARMOUR

OMO

SINOPEC

NONGFU SPRING

PHILIPSKANGSHIFU

TOP 15 CHINESE BRANDS

PAMPERSAPPLE

KFCMIDEA

BMW

ZHANG YU

CTRIP

TMALLBLUE MOONJD.COMPETROCHINA

TOP 15 UK BRANDS

PAMPERS

APPLEPAYPAL

VISAIKEA

NIKEAMAZONSKY

HUGGIES

BMW JOHN LEWISBUPA

MERCEDES

AUDI

BA

PAMPERSAPPLE PAYPAL

ENTERPRISE

DISNEY SOUTHWEST

LOWES

AMAZON

HUGGIES

BOSE

BLUE CROSS

HOME DEPOT

VISA

TOP 15 US BRANDS

STARBUCKS

2016 Report

IN SUMMARYthe beauty of this analysis is that it is based on peoples emotional response to experiences

Define you brand’s attitude toward generosity

What would you do if money was not the object?

Explore Impression, Interaction, Responsiveness and Resilience as defining actions

Generation ‘Picky’ believes in actions versus words

Search for hope and acknowledge that people increasingly care more about

What I can achieve with you versus

What I can buy from you

@timghalgh @FITCHdesign #stirringemotionsNRF

Thanks