LISBON COACHING DAY 2017

“The importance of positioning and reputation management

in brand strength and economic value”. EACD - EURONEXT

9th June 2017

Pedro Assude

Agenda

1 RepScoreTM

Model

DELTA Cafés

Group

DELTA

Reputation

Management

Reputation

Economy

2 3 4 Conclusions

5

reputation Your reputation is the general belief or opinion that other people have about you. If you are considered trustworthy and kind, you have a good reputation. Reputation comes from the Latin word reputation which means "consideration." It's how people consider, or label, you — good or bad. The noun reputation can also mean "being known for having a specific skill or characteristic.“ Source: https://www.vocabulary.com/dictionary/reputation

Reputation is known as the set of

emotional and rational perceptions that

the different stakeholders have about

people, organizations or places, and

that according to them they develop

attitudes and behaviors. Source: Reputation Institute

The Reputation Economy

Reputation is the perception

that different stakeholders

have on past and present

actions which influence future

expectations.

For stakehoders their perception is

their reality...

Source: Reputation

Institute

The Reputation in Sharing Economy What they are in common?

“What unifies them all is a reliance on our ability to get

enough information about the person we are exchanging with

to feel comfortable setting the terms on an individual basis. In

other words, they are economies of reputation.”

Source: World Economic Forum

Trust

The Reputation in Sharing Economy

Reputation impacts Brand Strength, Brand Value and Enterprise Value

The Reputation Economy

Source: OnStrategy

Brand Stakeholders

Brand Touchpoints

Brand Economic Value

Stakeholders Equity & Behavior

Drivers

Business Economic Value

Brand Positioning

& Reputation

Enterprise Economic Value

Brand Strength & Risk

Brand Portfolio &

Architecture

The Reputation Economy

Source: OnStrategy

Brand Strength

Brand Positioning & Reputation

Admiration Trust

Preference Recommendation

Products & Services Innovation & Differentiation

Workplace & Wellbeing Social Responsibility Governance & Ethics Leadership & Vision

Finance Profit & Loss

Brand Equity

Legal Protection Awareness Relevance Advantage

Loyalty & Bonding

Market Share Communication Share Touchpoints Efficiency Numeric Distribution Weighted Distribution

Volume / Value Growth

Brand Business Performance

Trust / Buy / Defend / Recommend / Invest / Work

The Reputation Economy Reputation Management is a discipline

Source: OnStrategy

Customer Brand Perceptions affect • Price • Volume • Repeat • Share of wallet • Cross sell

External Audiences Brand Perceptions affect • Distribution terms • Channel access • Strategic alliances • Deal completion • Licensing • CSR

Staff Brand Perceptions affect • Recruitment • Retention • Recommendation • Morale • Staff costs

Financial Audiences Brand Perceptions affect • Interest spread • Share price • Debt/ Equity ratio • Risk appetite • Cost of borrowing

Potential Customers

Existing Customers

Influencers e.g. Media

Trade Channels

Strategic Allies &

Suppliers Investors

Debt providers

Sales

Production

All Other Employees

Middle Managers

Directors

Brand

Reputation and Risk affects a wide range of stakeholders

The Reputation Economy Reputation Management is a discipline

Source: OnStrategy

The Reputation Economy Reputation is on the agenda of all companies and its is a driver of business value

Source: OnStrategy and Reputation Institute

CEO’s Tracking 56%

Say that Reputation is a HIGH priority to Executive Management

and Board of Directors

63% Expect Reputation Management to

be a HIGHER PRIORITY for their company in the next 2-3 years

and

79% agree that we are competing

in a Reputation Economy

but 20% Say they are ready to take

advantage of it

only

Agenda

1 RepScoreTM

Model

DELTA Cafés

Group

DELTA

Reputation

Management

Reputation

Economy

2 3 4 Conclusions

5

The Reputation Economy Reputation Management is a discipline

POSITIONING Based on 4 dimensions (belonging and acceptance, stability and security, recognition and influence, risk and dominance) to map and identify differences in how different stakeholders see and would like to see the brand with which they interact.

Source: OnStrategy

CITIZENSHIP & SOCIAL RESPONSIBILITY

PREFER

ADMIRE

TRU

ST

REC

OM

MEN

D

REPUTATION SCORE

The Reputation Economy Reputation Management is a discipline

Source: OnStrategy

BEH

AVIO

R CONSUMERS

CUSTOMERS SUPPLIERS EMPLOYEES MEDIA COMPETITORS OPINION LEADERS OPINION MAKERS SHAREHOLDERS INVESTORS SINDICATES ASSOCIATIONS REGULATORS POLITICAL AUTHORITIES ECONOMICAL AUTHORITIES

STAKEHOLDERS

RepScore™ Model

Why Measure Reputation?

Source: OnStrategy

The Reputation Economy Reputation Management is a discipline

Excellent/Top Tier Above 80 Strong/Robust 70-79 Average/Moderate 60-69 Weak/Vulnerable 40-59 Poor/Bottom Tier Below 40

All Global Pulse scores that differ by more than +/-0.5 are significantly different at the 95% confidence level. Pulse scores are based on questions measuring Trust, Admiration & Respect, Good Feeling and Overall Esteem (captured in the Pulse score on a 0-100 scale). Q: I would recommend 'Company' to others.

Strong correlation between reputation and recommendation

Source: OnStrategy

The Reputation Economy Reputation Management is a discipline

Source: OnStrategy

The Reputation Economy Reputation Management is a discipline

POSITIONING

REPUTATION TRUST PREFERENCE PURCHASE RECOMMENDATION

Support Behavior

IMPACT According to the different stakeholders perceptions about the brands with regard to their positioning and reputation, we identify their support behavior.

Source: OnStrategy

Agenda

1 RepScoreTM

Model

DELTA Cafés

Group

DELTA

Reputation

Management

Reputation

Economy

2 3 4 Conclusions

5

DELTA CAFÉS in World 35 countries 41 commercial departaments 6 international direct presence

OUR VALUES INTEGRITY TRANSPARENCE

LOYALTY TOTAL QUALITY SUSTAINBILITY S O L I D A R I T Y RESPONSABLE INNOVATION

HUMILITY T R U E

Agenda

1 RepScoreTM

Model

DELTA Cafés

Group

DELTA

Reputation

Management

Reputation

Economy

2 3 4 Conclusions

5

BRAND OVERVIEW Global RepScore™ Pulse Portugal 2017

Source: REPSCORE 2017 OnStrategy

ARCHETYPAL POSITIONING Dimensions and Attributes

Source: OnStrategy

ARCHETYPAL POSITIONING Dimensions and Attributes

Source: REPSCORE 2017 OnStrategy

BRAND OVERVIEW RepScore™ Brand Delta

Source: REPSCORE 2017 OnStrategy

BRAND OVERVIEW RepScore™ Brand Delta Q

Source: REPSCORE 2017 OnStrategy

Integrated Brand Management Platform GN

The Reputation Economy Reputation Management

REPUTATION

Source: OnStrategy

BRAND OVERVIEW Global Brand Management BI Platform

BRAND REPUTATION EMOTIONAL SCORE RATIONAL SCORE CSR SCORE ASSET VALUATOR INDEX BRAND VALUE BRAND AWARENESS MOST TRUSTED BRAND CONSUMER CHOICE BRAND TOUCHPOINTS COMMUNICATION SHARE DIGITAL PRESENCE

BRAND DIMENSIONS

Integrated Brand Management Platform GN

Touchpoints Efficiency 2016 Coffee Industry

BRAND OVERVIEW Touchpoints Efficiency – Coffee Drinkers

Global Score

Source: OnStrategy

>3,5

>4,5

>3,5

Global Score (pts):

Avrg Positioning Score + Avrg Reputation Score + Avrg Impact Score

BRAND OVERVIEW Touchpoints Efficiency – Delta Q Drinkers

Global Score

Moderate >2,5

Strong >3,5

Weak >1,5

Improvement area

Improvement area

Source: OnStrategy

Global Score (pts):

Avrg Positioning Score + Avrg Reputation Score + Avrg Impact Score

Strong >3,5

ON TRADE

Strong >3,5

OFF TRADE

Strong Brand Score

Strategy:

• COMMUNICATE SELECTIVELY

• ACTIVATE AGGRESSIVELY

BRAND OVERVIEW Touchpoints Efficiency – Delta Q Drinkers

Global Score

Source: OnStrategy

Agenda

1 RepScoreTM

Model

DELTA Cafés

Group

DELTA

Reputation

Management

Reputation

Economy

2 3 4 Conclusions

5

CONCLUSIONS

Companies with Excellent or Strong Reputation get significantly more support from the public;

Reputation management should now be a top priority for companies;

Brand activation must be aligned and optimized with industry touch-points, identified as the most efficient;

The financial investment of the brands must be correctly allocated according to the efficiency of the touch-points.

Reputation directly impacts the strength and value of brands and companies;

O Café da Sua Vida

LISBON COACHING DAY 2017

“The importance of positioning and reputation management

in brand strength and economic value”. EACD - EURONEXT

9th June 2017