iconic brand model

How marketing grows shareholder

value

The Coup Factory Value Chain

The Coup Factory Marketing Value Chain©

A status that transcends functional benefits an

Iconic Brand

Sustainable Competitive advantage via the

marketing mix Volume growth

Increased prices

Lower Risk Investments

Sustainable discounted cash flows in excess of

cost of capital

Shareholder Value (Increased dividends and

share price)

A status that transcends functional benefits an Iconic Brand

Sustainable Competitive advantage via the marketing mix

Volume growth

Increased prices


Sustainable discounted cash flows in excess of cost of capital

Shareholder Value (Increased dividends and share price)

Iconic BrandsAn Icon - A person or thing regarded as a representative symbol or as worthy of veneration. Oxford English Dictionary

“Consumers flock to brands that embody the ideals they admire, brands that help them express who they want to be. The most successful of these brands become iconic brands” Douglas B Holt (How brands become Icons)

From Coke to Apple, from Harley to Absolut, Iconic brands develop deep emotional attachments with their target audience, gaining the brand a status that transcends functional benefits. Their consumers become apostles, loyally following and supporting the brand.

Sustainable Competitive Advantage

Via a quality product underpinned by compelling advertising, Iconic brands develop incredibly strong emotional bonds with consumers. Unlike functional benefits these are extremely difficult for competitors to replicate, in effect giving these brands a powerful, sustainable, competitive advantage.



Volume growth

Increased prices




Superior Brand Performance

This competitive advantage will, if correctly utilized, drive superior brand performance. Notably via volume growth (increased demand/usage) and achievement of price premiums (increased brand loyalty/brand desirability.)

From an investment perspective given the brands Iconic status they offer lower risk and higher long term earnings potential with significant opportunities to further build the brands value via category leadership, new market penetration, line extensions etc.



Volume growth

Increased prices




Discounted Cash Flows

This superior brand performance will in turn, if properly managed, deliver sustainable positive cash flows - Strong cash inflows via volume growth and pricing. Reduced outflows by more effective marketing spend and possible cost reductions driven by economies of scale.

Superior brand and financial performance underpinned by a sustainable competitive advantage will also decrease perceived investor risk reducing the cost of capital. Thus further assisting the brand in delivering outstanding discounted cash flows.



Volume growth

Increased prices


Sustainable discounted cash flows in excess of

cost of capital

Shareholder Value

(Increased dividends and share price)

Shareholder ValueShareholder value considers cash flows the lifeblood of business.

The basic principle behind shareholder value is to earn investors a higher return than they could earn themselves by investing in other assets.

Managers create value when they invest to maximize the present value of long-term free cash flows. The premise is that if a company builds value, earnings and the stock price will follow.

One of the most effective ways to deliver this value and ensure strong future cash flows is by achieving and then maintaining Iconic status for your brand.

Capital Allocation Decisions

Shareholder Value Stock Price and Dividends



Volume growth

Increased prices



Shareholder Value (Increased dividends

and share price)

The Building Blocks to an Iconic Brand

What is an Iconic Brand?

OK so what is an Iconic brand, the Oxford English dictionary defines an icon as “A person or thing regarded as a representative symbol or as worthy of veneration.” In other words it’s something that has a special place in the hearts and minds of its consumers. This is more than just being a successful brand, it’s all about establishing a place in the pantheon of modern culture.

While some Iconic brands are easy to identify, Coke, Harley, Apple, Nike, Marlboro and the VW Beetle to name a few, others are probably more arguable - why?- because iconic status ultimately lies in the eyes of the beholder and how that brand has helped to define them, hence different cultures, age groups and people will have different views. Ultimately though Iconic brands have one other criteria, they have proven incredibly successful, generating significant volume and earnings over a long period of time for their owners and shareholders.

So Iconic status is highly profitable and therefore highly desirable, so how do you achieve it? Well, over the next few pages we will outline our perspective in how to make it happen. Enjoy!



The Coup Factory“Iconic Brand Model”©

COMMUNICATION PRINCIPLES - An explanation

Aspirational: More a mindset thing as a price thing - Although premium pricing can certainly help - An aspirational message strikes a cord with your target in regard to who they are or want to be.

Don’t get confused, this is not necessarily about aspiration in a upmarket kind of way, but rather aspirational in regard to the target audiences dreams and desires. It could be to escape the pressures of modern life, to be creative or maybe to just be themselves. From the freedom and adventure of the Marlboro cowboy, to the creative and witty world of Absolut, to the anti hype bohemian message of the VW Beetle, iconic brands have always had the ability to present an aspirational and pertinent message as an underlying pillar of their communication.


COMMUNICATION PRINCIPLES- An explanation

Inspirational: In addition to being aspirational, truly iconic brands are also inspirational, not just striking a cord in regard to their audiences desires but then spurring them on with a yearning to do or experience something. This call to action can be as simple as encouraging a leisurely drive or as ambitious as having the courage to try to change the world.

From Nikes “Just Do It” ethos, Cokes “teaching the world to sing” or Apples “Think Different” ads, Iconic brands are able to inspire their audience, filling them with an urge to do or feel something way in excess of regular brand communication.



Differentiated: Probably obvious but no less important Iconic brands, when communicated properly, stand out from the crowd. This desire to be positively different, assists in building the brands leadership credentials, and ensures a unique and memorable positioning in the mind of the consumer.

From VW Beetle and Apple to Absolut, Iconic brands adverts have stood out from the norm, achieving memorable, eagerly anticipated, clearly differentiated and highly successful communication approaches.



Symbolic: Another important aspect in order to gain Iconic status is to load your communication and therefore your brand with powerful symbolic messages in order to ensure it represents or stands for something more than just a simple product.

When positioned properly iconic brands offer much more than just a functional benefit. From Apple to Coke from Nike to Harley iconic brands epitomise a mindset and way of life that enables them to play a fundamental role in helping to shape a consumers identity. They achieve this by using strong symbolic messages and imagery to capture their consumers attention and imagination.

Be it Apple’s “1984”, Marlboro Country, Nike’s “Just do it” or Coke’s “Mean Joe Greene” Iconic brands have symbolically told stories that have cemented their reputation in the consumers psyche. Filling an apple, a chevron, a swoosh or a bottle shape with meaning way beyond their initial form.



Credible: Last but not least Iconic brands stand apart from the competition in the way they are able to portray their messages in a credible and authentic way. Its all about ensuring your brands communication is delivered and maintained in a believable way both in how this fits your product offering and in the minds of your target consumers.

Apple wouldn’t be the creatives choice if it hadn’t developed distinctive products that truly helped their audiences creativity. The VW Beetle wouldn’t have become a symbol of the hippie generation if it hadn’t been for its communication and quirky design, that enabled the brand to position itself as a clever, creative and credible bohemian insider.

But be warned credibility is also a case of knowing what you’re not as much as what you are. Iconic brands are successful via a singleminded focus on what they stand for, any move that undermines that , no matter how potentially profitable, can erode a brands credibility and ultimately its iconic status.


A compelling story with cultural resonance - An explanation

Ok, the last piece of the jigsaw, its all about putting the communication principles together to form a compelling story with cultural resonance.

Its all about developing a powerful story that evokes attention and admiration by ensuring it relates to real and important matters of life in the minds of your consumers.

From Apple to the VW Beetle to Absolut to Nike to Coke, these brands have been able to achieve, compelling stories that have resonated culturally with their target audience. Also by ensuring these stories have been inspirational, aspirational, different, symbolic and credible they have enabled these brands to become icons, earning a special place in the hearts and minds of their consumers, as well as significant sustainable earnings.


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