普华永道：品牌价值

Adrian DavisNick Anderson16thJuly 20022“The fundamental task of todays CEO is simplicity itself: Get the stock price up. Period.”“A 15%- 20% premium is justified for premium brands”“Being passionate about brands is a questionable attribute for marketing professionals； far better to be rational about managing them”Peter Doyle, Visiting Professor “I know I am throwing away half of my marketing budget. But as I dont knowwhich half, Id better continue to do so” Morris Tabaksblatt, former CEOThe view 3Fact The most important objective for todays CEO is delivering shareholder value Brands can be the single most important component of intangible assets A strong brand adds real value to its company Brands drive business success4A Brand: It is not fame alone It is a promise of quality, meaning and consistency (what you are getting, how you feel about it and who it is from) It is a source of differentiation It is an entity that rests in customers imaginations It is a driver of shareholder value resulting in higher prices, higher volume growth and lower costsDrivers of Brand Value5 For a typical FMCG organisation:9 Trial (and hopefully repeat)9 Customer Loyalty9 Increased Price Premium (Reputation)9 Repeat Purchase (e.g. Multibuy/ BOGOF)9 Increased Regularity of Use 9 Stretch into new markets or categories9 Lower costs of advertising and marketing9 Lower costs of SKUs and merchandising9 Lower discounts to multiples 9 Economies of scale over many territories (production, distribution and promotional spend)Strong brands - strong performers6American Express05001,0001,5002,0002,5003,0003,5004,0004,50090 91 92 93 94 95 96 97 98 99 00 01S&P 500 (Us) American ExpressAt endSource JCFQuantGeneral Electric05001,0001,5002,0002,5003,0003,5004,0004,50090 91 92 93 94 95 96 97 98 99 00 01S&P 500 (Us) General Elect.At endSource JCFQuantGucci02004006008001,0001,20090 91 92 93 94 95 96 97 98 99 00 01Aex (Nl) Gucci GroupAt endSource Brands. Command a premium price Gain a disproportionate market share Provide a barrier to entry Create a breakaway propositionBrand can be a powerful tool for leveraging market value7Intangible Assets195019752001%of Market Value0%100%Intangible assets71%Book value 29%FTSE All Share BRAND Customer relationships Patents, processes & know-how Technology Intellectual and human capital Other goodwillPwC Research 20018Direct link between brand value management and improved shareholder return AWARENESS Recognition RecallIMAGE Attributes Benefits ValuesBRAND VALUESHAREHOLDER VALUEBRAND EQUITYBrand RecognitionBrand Associations Higher market share Stronger selling price Higher brand NPV Lower cost of capital Greater positive cash-flow Higher expected earningsPERCEPTION Quantifying financial value Understanding value driversValue DeliveryMarket communicationBrand LoyaltyBrand DifferentiationDiageo - A prime example9Quantifying value“ driving top line growth in our global priority brands and markets, we continue to deliver growth in shareholder value”Paul Walsh CEO30/6/20011 Coca - Cola 1 Heineken2 Gillette 2 Anheuser-Busch3 Campbells 3 Nestle4 Phillip Morris 4 Colgate-Palmolive5 Proctor & Gamble 5 Allied Domecq6 Colgate-Palmolive 6 Unilever7 PepsiCo 7 Tricon8 Heinz 8 Diageo9 Bestfoods 9 Pepsi-Co10 Anheuser-Busch 10 Phillip Morris16 GrandMet19 Guiness1995 - 1997 1998 - 2001TSR measures return from movement in theshare price, together with dividends received A business philosophy linked to shareholder return (Managing for Value) Calculated by TSR (Total Shareholder Return), benchmarked against competitive set EP drives brand strategy Forms the basis of decision making for brand investment10The importance of brand to differentiate in increasingly competitive marketsOver 70% do not and cannot measure ROI in brand buildingDifferentiate throughBrandStrategyDiscerningcustomersNew reportingrequirementsE-biz ConvergenceGlobalisationNew brand online now recognised as waste of s/h valueContinuing trend towards global brands - up to 50% in certain sectorsStakeholders want more information on brand equityMore than 60% state that branding is an important consideration in NPD Source: Property & Casualty: Mapping the Future, PwC Survey, 2001Major strategic decisions taken without questioning value returns?11The new corporate environment is calling for a step change in branding12Stage 41970s2000sP & G Brand Management ModelAdvertising AgenciesBrand ConsultancyBrand Value ConsultancyStage 1Stage 2Stage 31980s 1990sBrand ValueShareholder ValueCreation Marketing Function FMCG market Advertising focus Creative execution Emphasis on visual logos Focus on communicationsStrategicConsultingFinancialAnalysisEvolutionA new perspective .13 We place shareholder value creation as the key driver of brand decision-making We question and quantify the value of different strategic options to determine which route will generate most value This enables informed and robust decisions to be taken on: creation of new brands brand migration brand re-positioning brand management brand investment 14Brand strategy focused on the delivery of superior earnings growth, through maximising value creation in the development of brandsA business needs to focus on core processes in managing the brand15Brand ValueManagementPrinciplesSelect plans and strategies to maximise brandvalueCommunicate performanceeffectivelywith investorsAllocate resources to optimise brandvalueDesign incentiveschemes toreward brandvaluecreationManagement reporting on value-basedmeasures12345How does it work?16By focusing on value creation as the key driver of brand strategy development and managementBRANDREVIEWBRAND STRATEGYBRAND VALUEBRAND MANAGEMENTBRAND ADVISORYReviewing value Creating value Realising value Retaining valueQuantifying valueManaging brand valueOur framework - our Brand Value approach181. BRAND RESEARCHIndustry ResearchBrand BestPracticeQualitative ProcessInternal ExternalPrimary Secondary4. INVESTMENT APPRAISALPortfolio InvestmentBrand ROIBrand Strategy Modelling (ROV)2. STRATEGIC ANALYSISMarket CompetitorBrand Organisation3. VALUE ANALYSISBrand Valuation Value Driver MappingBrand Value DeliveryQuantitative ProcessDELIVERABLESA toolbox to guide effective brand investment and an ongoing monitor of brand equity delivery11. Brand Research19Our entire approach is fed by objective customer & market research Firstly we utilise existing internal secondary research. This would typically comprise of brand awareness, CSI, ESI and purchase decision making research, in addition to any specific market reports or strategy papers We would also seek to combine this with internal primary research - one to one interviews or focus groups with various stakeholders: customers, distributors and employees (as appropriate) Where existing research is not sufficiently detailed we will suggest utilising our proprietary conjoint analysis which particularly useful for gaining an in-depth understanding of brands. We also make good use of our own deep industry knowledge calling on market specialists throughout our global network. Understanding and emulating best practice is important for our clients, and lessons from other industries can provide unique insights.11. Brand Research continued20Understanding the impact of corporate brand investment on organisational performance We would seek to evaluate corporate brand best practice and suggest application to the company x brand, allowing you to gain a comprehensive understanding of the role of corporate branding and typical amounts of associated expenditure. This involves the following activities: analysis of marketing investment split by corporate versus product marketing ranking the brand performance of the sample, in terms of differentiation and strength evaluation of competitors financial performance and the extent of correlation between revenue and profit enhancement and corporate brand expenditure. evaluate industry customer acquisition costs to identify trends and correlation to Brand performance/strength222. Strategic Analysis21We use real strategic insight to develop sustainable competitive advantage The combination of internal and external research gives us rich & objective data on which to evaluate what the brand portfolio equals in the minds of consumers, and then to determine potential future directions. Our analysis maps in detail the inter-relationships between the organisation, the brands, the market and your competitive set, clearly identifying opportunities for example: identifying and ranking the attributes of the brands vis a vis the competition examining brand stretch into other potential markets and services analysing drivers behind changes in the market environment finding areas of synergy with other brands Using a variety of bespoke tools we can map your proposition against your competitors, and examine potential sustainable territories of competitive advantage for your brand strategy222. Strategic Analysis continued22Helping you develop unique and innovative brand proposition The data derived from the research phase can help us to understand that given current performance how can company x leapfrog the competitive set by building on its existing corporate brand proposition Articulating those brand attributes that make the greatest contribution to brand equity, and the organisational processes that underpin these attributes Providing a clear route map towards brand equity development, one which can easily be followed for internal and external brand expression (e.g. by the incumbent advertising agency) Our real area of innovation is combining this strategic analysis with financial analysis - quantifying what this return on investment would mean to company x, this is explored in the next section.33. Value Analysis23An unsurpassed understanding of the levers of enhanced brand value. Putting a value on your brands - the strengths and potential strengths of your brand portfolio are now expressed in financial terms. A brand valuation provides a baseline valuation which can be used to evaluate future strategic options and enhances ongoing management of the asset. The drivers of brand value are identified and their propensity to create future brand equity are quantified Examination of brand value delivery examines how important brand is to a transaction or a relationship when compared with other purchase criteria. This analysis can assist in the identifying areas of opportunity for brand equity development 3. Value Analysis continued324Rigorous financial analysis is a core component of our skill set A core element of our analysis is to determine a baseline valuation for the brand with reference to both the research (readily available and undertaken) and to the value drivers of the branded business as a whole The methodologies used are a combination of premium pricing, the relief from royalty and residual approaches The combination of the methodologies provide us with a range of values within which to consider a brand value We will distinguish (where appropriate) between the economic value of the Brand and the market value of the Brand - in other words is the brand owner maximising brand value or is the brand owner destroying value4. Investment Appraisal425Clearly articulating the best strategy to create greater brand equity Identifying optimum areas of opportunity for maximum brand return by examining the trade off between components of capital investment - with reference to portfolio investment techniquesModelling different brand strategies using Real Option Valuation techniques which identifies probable brand equity outcomes given alternative brand strategy scenarios. Our approach creates a clear link between marketing & advertising investment and return on brand equity, and Forms the basis for an ongoing system of measuring and monitoring the creation of brand value 44. Investment Appraisal continued26