measuring brand value per the mcglown group
DESCRIPTION
How to measure the financial, organizational, and market value of a brand.TRANSCRIPT
Brand Value Measuring ROI
March 12, 2013
Brand can enable a company to
become the go-to for a category and its inherent value.
March 12, 2013 p.2
e M c G l o w n G r o u p.com
But It’s Challenging
March 12, 2013 p.3
“We have lots of services, loads of technology, great products and tons of assets. But customers don’t care. They want to know, ‘What’s in it for me?’ ” VP of Global Branding Ci#bank
B R A N D A L I G N M E N T . I n s i d e & O u t s i d e . p.4
Steps to Attain Brand Value
1. IDEAL Craft a beacon to attract and motivate employees in concert, while driving innovation toward higher-order benefits.
2. POSITIONING Succinctly define your category role(s) through bold claim of distinguishable benefits.
3. ARCHITECTURE Make it easy for people, inside and outside of your company, to shop and explain the portfolio of offerings.
Strong brands outperform the S&P 500.
March 12, 2013 p.5
* WPP / Bloomberg / Datamonitor rankings and results based on brand value, brand contribution, brand momentum and brand value as percentage of market cap
Study includes following categories: Apparel, Beer, Bottled Water, Cars, Coffee, Fast Food, Financial Institutions, Gaming, Insurance, Luxury, Mobile Operators, Motor Fuel, Personal Care, Retail, Soft Drinks, Spirits, Technology
Brand drives shareholder value intangibles.
March 12, 2013 p.6
25%
40%
35%
100
90
70
60
50
40
30
20
10
80
Total Sha
reho
lder Value
(%)
THE BLUE Box
Brand is the primary driver of unexplained market cap.
Net present value of cash flow
Company book value
Measuring ROI
e M c G l o w n G r o u p.com
ROI is determined by three indices.
1. Financial
2. Organizational
3. Brand
March 12, 2013 p.8
B R A N D A L I G N M E N T . I n s i d e & O u t s i d e . p.9
ROI (Financial Index)
Monitor the Blue Box
= Market Cap – (NPV Cash Flow + Book Value)
March 12, 2013
25%
40%
35%
100
90
70
60
50
40
30
20
10
80
Total Sha
reho
lder Value
(%)
Brand
Net present value of cash flow
Company book value
B R A N D A L I G N M E N T . I n s i d e & O u t s i d e . p.10
ROI (Organizational Index)
Monitor Engagement
= Function + Social + Emotional
March 12, 2013
24%
76%
Disengaged
Indifferent
Will undermine or simply don’t care about the brand
Engaged
Know how to create relevant brand value
71%
29%
2008 Harris Interactive Fortune 1000
“Only 37% of employees feel they clearly understand what their organization
is trying to achieve, and why.” – Stephen Covey, The 8th Habit
B R A N D A L I G N M E N T . I n s i d e & O u t s i d e . p.11
ROI (Brand Index)
Monitor Distinction = Uniqueness +
Relevance
March 12, 2013
For follow-up questions, please
contact: Lawrence McGlown MANAGING DIRECTOR
{317} 800-8319 [email protected]