lessons learned from tenet's 2015 most powerful brands
TRANSCRIPT
Lessons Learned from Tenet’s 2015 Most Powerful Brands
November 16, 2015
Today’s agenda
• The benefits of a powerful corporate brand
• How Tenet determined the Top 100 Most Powerful Brands
• Macro trends impacting the brand landscape
• Lessons from the 2015 Most Powerful Brands
• Summary and key take-aways
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The benefits of a powerful corporate brand
Powerful brands:
• Help attract and retain talent
• Pave the way for favorable terms with partners and suppliers
• Drive word of mouth for recommending products and services
• Enable companies to command a premium price for their offerings
• Provide valuable insulation in times of crisis
• Encourage media to seek management’s point of view
• Have an impact on financial performance
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How Tenet Partners determines the Top 100 Most Powerful Brands
Business decision-makers Executives at companies with sales revenue of $50 million to several billion
• 80% involved in B2B purchase decisions
• 90% determine purchase needs
• 72% select specific companies to work with
• 68% authorize purchases
When viewed as consumers Affluent and well-educated
• 87% college degrees
• 83% HH size 2 or more
• 74% above $75K HHI
• 72% ages 35+
• Investment savvy
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The CoreBrand Index Opinion Elite survey audience
How Tenet Partners determines the Top 100 Most Powerful Brands
• A unique database of 1000+ companies across 50 industries
• 25 years of corporate brand tracking
– 10,000 telephone surveys a year
• BrandPower is an easy to understand and consistently measured metric that links to financial performance of a company. BrandPower is comprised of two key measures:
– Familiarity: rated on a 5-point scale (very well known, familiar, somewhat familiar, know name only, unfamiliar)
– Favorability: attributes rated on a 4-point scale (excellent, good, fair, poor) • Overall Reputation • Perceptions of Management • Investment Potential
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A rigorous, quantitative approach to understanding brand equity
Intangible assets, including brand, are increasingly contributing to corporate value
Why Brand is important
17%
32%
68%
80% 80% 84%
83% 68% 32% 20% 20% 16%
1975 1985 1995 2005 2010 2015
Physical and financial assets
Other factors
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Components of the S&P 500 as a percentage of market value Source: EY Integrated Reporting/Ocean Tomo’s Annual Study of Intangible Asset Market Value — 2015
Margins of Most Respected companies nearly 2X vs. Least Respected
Most respected companies financially outperform lesser peers
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28.2%
16.9%
11.7%
5.4%
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Operating Margin % Net Profit Margin %
% M
argi
n R
ates
Average Margin Rates Most / Least Respected
Most Respected Average Least Respected Average
Top 10 BrandPower risers have increased communications more aggressively
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Represents the average paid media spend for the Top 10 risers and 10 biggest decliners on an annual basis.
Macro trends impacting the brand landscape
The CMO role is being reshaped and amplified to address a number of macro trends:
• Blurring industry lines
• Digital convergence
• New innovations
• Fast moving disruptors
A new set of skills is required to stay relevant and ahead of the game.
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Tenet Partners 2015 Top 100 Most Powerful Brands
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Lessons from 2015’s Most Powerful Brands
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Achieve strategic alignment
Lessons learned from Amazon
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Create brand clarity
Lessons learned from Google
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Delivering consistent experiences that drive business results
Lessons learned from Wells Fargo
3 Effective strategies for driving growth and brand value:
Summary and key take-aways
Achieve strategic alignment across the
enterprise for full impact
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Create brand clarity to drive focus and on-point
business decisions
Design customer experiences that drive loyalty
and consistent results
Brand Value
Thank you
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