measuring brand value per the mcglown group

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Brand Value Measuring ROI March 12, 2013

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How to measure the financial, organizational, and market value of a brand.

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Page 1: Measuring brand value   per the mcglown group

Brand Value Measuring ROI

March 12, 2013

Page 2: Measuring brand value   per the mcglown group

Brand can enable a company to

become the go-to for a category and its inherent value.

March 12, 2013 p.2

Page 3: Measuring brand value   per the mcglown group

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  

Page 4: Measuring brand value   per the mcglown group

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.

Page 5: Measuring brand value   per the mcglown group

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

Page 6: Measuring brand value   per the mcglown group

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

Page 7: Measuring brand value   per the mcglown group

Measuring ROI

Page 8: Measuring brand value   per the mcglown group

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

Page 9: Measuring brand value   per the mcglown group

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

Page 10: Measuring brand value   per the mcglown group

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

Page 11: Measuring brand value   per the mcglown group

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

Page 12: Measuring brand value   per the mcglown group

For follow-up questions, please

contact: Lawrence McGlown MANAGING DIRECTOR

{317} 800-8319 [email protected]