design firm leadership conference: intelligent branding in a downturn economy
DESCRIPTION
Andrea Sullivan, Executive Director of Client Services, delivered this presentation at the 2009 Design Firm Leadership Conference at Harvard. Leaders in architectural field joined in strategic discussions at Harvard with Frank Gehry.TRANSCRIPT
Intelligent Branding in a Downturn Economy
Insights from 2009 Best Global Brands
2 |
2009 Best Global Brands
“Most Useful Rankings to CEOs” —PR Week
1. Fortune 500
2. Best Companies to Work for
3. Interbrand’s Best Global Brands
Intelligent Branding in a Downturn Economy | September 24, 2009
3 |
What is brand value?
4 |
Which MP3 would you buy?
$200
•16GB
•Video out – high definition
•Wireless file sharing (MP3s + more)
•Touch control
• Integrated voice recorder
• Built-in FM tuner (32 stations)
$250 • 8GB
• Video out (not HD)
• Wireless MP3 shop
• Touch control
MP3 #1 MP3 #2
Intelligent Branding in a Downturn Economy | September 24, 2009
5 |
What about now…?
Creative Zen X-Fi 2 Apple iPod Touch
Intelligent Branding in a Downturn Economy | September 24, 2009
6 |
Brands drive value
$3.00 $1.00
High Quality Coffee Excellent Flavor Non-branded
High Quality Coffee Excellent Flavor
Branded
Intelligent Branding in a Downturn Economy | September 24, 2009
7 |
Benefits of a strong brand
Drives demand
Commands strong reputation
Generates premium fees/revenue
Creates strong word of mouth
Delivers loyalty
Enhances ability to negotiate with partners
Elevates ability to recruit top talent
Intelligent Branding in a Downturn Economy | September 24, 2009
8 |
Benefits of a strong brand
Drives demand
Commands strong reputation
Generates premium fees/revenue
Creates strong word of mouth
Delivers loyalty
Enhances ability to negotiate with partners
Elevates ability to recruit top talent
Frank Gehry
Intelligent Branding in a Downturn Economy | September 24, 2009
9 |
It is a key competitive asset
Creates demand
Creates loyalty
It influences customer’s choice
Value
Simply put, brands drive choice and create value
Role of
Brand
Brand
Strength
Intelligent Branding in a Downturn Economy | September 24, 2009
10 |
Survey says: Many of you believe branding makes a difference
In your opinion, what are ways that branding/marketing could add the most value to your organization?
Source: 2009 EFCG Architecture & Design Firm Confidential Benchmarking Survey
Intelligent Branding in a Downturn Economy | September 24, 2009
11 |
+2%
#2 (was #2)
Winner New
-4%
#98 (N/A)
Loser
-10%
#38 (was 38)
+14%
#50 (was 62)
Winner
2009 Winners or Losers?
Intelligent Branding in a Downturn Economy | September 24, 2009
12 |
How should brands be managed in a downturn?
13 |
Recessionary tools that work in other parts of the business, don’t necessarily apply to branding
While you can downsize, right size, in-source, and outsource… you can’t fire the brand. It won’t go away.
—The Crisis Paradox, Josh Feldmeth, Interbrand
Intelligent Branding in a Downturn Economy | September 24, 2009
Your choice
Ignore it Manage it
15 |
Successful brands in professional services
1. Delivered on a clear value proposition
2. Invested in their culture and their people
3. Behaved boldly in tough times, investing in strategic assets/R&D
Intelligent Branding in a Downturn Economy | September 24, 2009
16 |
In professional services, it’s all about the experience you deliver
1. Out-behave the competition
2. Understand your client’s business and how to make them win
Intelligent Branding in a Downturn Economy | September 24, 2009
17 |
How can we make our clients’ brands work harder for them?
18 |
What were some of the key learnings from 2009?
Intelligent Branding in a Downturn Economy | September 24, 2009
19 |
At the core of great brands is a simple idea
Man shall not be subservient to machine
Performance Simple, easy, enjoyment
Intelligent Branding in a Downturn Economy | September 24, 2009
20 |
Brand touches all parts of the customer journey
People Environments
Communications Product / Service
Brand
Intelligent Branding in a Downturn Economy | September 24, 2009
21 |
Apple Store 767 Fifth Avenue
Architect:
Bohlin Cywinski Jackson
2006
Apple Store 767 Fifth Avenue
Architect:
Bohlin Cywinski Jackson
2006
Apple Store 767 Fifth Avenue
Architect:
Bohlin Cywinski Jackson
2006
Apple Store 767 Fifth Avenue
Architect:
Bohlin Cywinski Jackson
2006
26 | Intelligent Branding in a Downturn Economy | September 24, 2009
27 |
Consistency across all touch points
I’m a PC I’m a Mac
Intelligent Branding in a Downturn Economy | September 24, 2009
28 |
BMW Welt
Architect: Coop
Himmelb(l)au
2007
BMW Welt
Architect: Coop
Himmelb(l)au
2007
BMW Welt
Architect: Coop
Himmelb(l)au
2007
BMW Welt
Architect: Coop
Himmelb(l)au
2007
Intelligent Branding in a Downturn Economy | September 24, 2009 33 |
34 |
Performance is woven into all touch points
Intelligent Branding in a Downturn Economy | September 24, 2009
35 |
Embracing glocalization
Intelligent Branding in a Downturn Economy | September 24, 2009 36 |
McDonalds (UK) West Thurrock
Architect:
SHH
2005
Intelligent Branding in a Downturn Economy | September 24, 2009 37 |
McDonalds (UK) West Thurrock
Architect:
SHH
2005
McDonalds (UK) West Thurrock
Architect:
SHH
2005
Intelligent Branding in a Downturn Economy | September 24, 2009 38 |
39 |
So, does it really matter?
40 |
The numbers speak for themselves
Brand value 2001 $13,858MM
Brand value 2001 $25,289MM
Brand value 2001 $5,464MM
Brand value 2009 $21,671MM
Brand value 2009 $32,275MM
Brand value 2009 $15,433MM
36% increase 22% increase 65% increase
Intelligent Branding in a Downturn Economy | September 24, 2009
41 |
5 macro trends
1. It’s all about the experience
Prada Epicenter New York
Architect:
Rem Koolhaas (OMA)
2001
Intelligent Branding in a Downturn Economy | September 24, 2009 42 |
2. No brow
Forever 21 San Francisco
Architect:
Gensler
2005
Intelligent Branding in a Downturn Economy | September 24, 2009 43 |
3. Mobility
Uniqlo Pop up New York
Architect:
LOT-EK
2006
Intelligent Branding in a Downturn Economy | September 24, 2009 44 |
4. Sustainability
Bank of America New York
Architects:
Cook+Fox Gensler
2009
Intelligent Branding in a Downturn Economy | September 24, 2009 45 |
5. Design for all
Aloft Hotel
Rancho Cucamonga
$99/night
2009
Intelligent Branding in a Downturn Economy | September 24, 2009 46 |
Thank you!
Andrea Sullivan
Executive Director, Client Services
212.798.7510
http://www.interbrand.com/newyork