brands in a new age of responsibility - jez frampton, interbrand
DESCRIPTION
The social demands of the new marketplace are clear: be ethical and responsible. Global CEO Jez Frampton of Interbrand, discusses sustainability's place on the business agenda, but notes that few brands are notable leaders and that only a small minority of employees feel prepared to take the issue head on. CSR and corporate responsibility for the most part haven't resonated because marketing and basic identity communications superceded substantive change, progress, or radical product/service development. In addition to various research findings, Jez speaks on the role of brands and their strength as the key elements of value, and how they do have the power to do great things. Sometimes change the world in both small and bigger ways. Outlining principles from stories like Tom's Shoes, Method, Aveda, Nokia, 3M, and Xerox, he goes on to give 3 steps for brands going forward.TRANSCRIPT
Brands in a New Age of Responsibility
Jez FramptonInterbrand
Jez Frampton Global Chief Executive Interbrand
Brands in a New Age of Responsibility
52% of green themed issues of magazines sell significantly less than standard issues.
Source: Mediamark Research & Intelligence, 2009
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Regulation
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Responsibility
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Accountability
Sustainability is a “must have”
Interbrand and sustainability 7 |
“What is required of us now is a new era of responsibility.”
Inaugural address of President Barack Obama; January 2009
Interbrand and sustainability 8 |
we from me to
Social pressure is growing
Damned if you do, damned if you don’t
Change
Increased effort but…
More companies now report sustainability data but to what effect?
37% 74%
2008 2005
Source: KPMG, October 2008
Lack of leadership
The few consumers who do identify leaders tend to recall the same brands.
26% 35%
Source: Consumers, Brands and Climate Change; The Climate Group, 2008
2008 2007
It’s on the agenda but…
In most organizations, sustainability is on the C-suite agenda.
42.4% 18.5%
CEO Board
Source: The Vandiver Group study; May 2008
Are employees ready?
Only 1 in 10 employees feel prepared to tackle the issue head on.
Source: Corporate sustainability employee study, Fresh Marketing, 2008
Source: Deloitte/GMA Green Shopper Study, 2009
95% of shoppers say they would consider buying a green product.
of shoppers purchased green products.
22%
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Sustainability as green noise
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Sustainability as a differentiator
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Sustainability as a table stake
Crafting a new understanding
Brand
Segmentation
Financial Analysis
Importance of Brand
Competitive Benchmark
Brand Value
Intangible Earnings (EVA)
Role of Branding Index
Brand Strength Score
Brand Earnings Brand Discount Rate
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2 3 4
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A key competitive asset
Higher level of future earnings
Higher security of future earnings
Role of Brand
Brand Strength
Influences customer’s choice
Value
Doing well by doing good
Brands have the power to change the world.
The medium is the message.
Toms gives back what it takes.
Sustainable from the outset.
Method offers a new standard practice and model for its industry.
Core principles realized.
7 of Aveda’s products are completely sustainable from cradle to cradle.
Greenpeace approved.
60% to 80% of Nokia’s products can be recycled.
Reduce, remove, and recycle.
3M recognized and took action to restore natural resources.
Changing negative associations.
Xerox outperforms competitors in sustainable actions.
The way forward:
1. Set the highest standard for your industry
2. Measure the impact of your actions
3. Communicate your platform appropriately
Brands will change the world.
