The Current Economic Crisis and its Impact on Branding

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The Current Economic Crisis and its Impact on Branding Powered By Docstoc
					The Current
 Economic
Crisis and its
 Impact on
 Branding:

 Ubiquitous
  Brands

 June 2009
BrandAsset® Valuator:
The World’s Most Extensive Study on Brands

World’s Largest Database of Brands

Over 500,000 consumers
   • 35,000 brands
   • 250 studies
   • 15 years’ worth of data
                                          Canada                                            Russia
                                                                     Europe
   • 46 countries                       United States
                                                                                                China           Japan
   • US panel of 17,000+ respondents
                                          Mexico                                                               Taiwan
      –   Quarterly data
                                                                                        India
                                                       Venezuela
72 different brand metrics,                                                                Malaysia     Philippines

including                                   Colombia
                                                                                            Indonesia
                                                                Brazil
   • Brand health                                       Chile            South Africa                       Australia
   • Brand imagery / personality
                                                         Argentina
   • Usage
   • Consideration
   • Loyalty

Over $130 million invested




                                       Proprietary Database:                                    June 2009
                                       BrandAsset® Valuator
BrandAsset® Valuator:
The Tools Behind the Knowledge

 BAV measures the way brands are built, not just how products are
  sold
 Categorized into Four Pillars that drive the strength and stature of a
  brand
   • Energized Differentiation: contributes to pricing power and consideration
   • Relevance: builds consideration and trial
   • Esteem: builds loyalty that helps moves sale
   • Knowledge: awareness that moves sale

 Dimensions are category agnostic and brands are viewed
  independent of category
 The model captures Dynamic Movement mapping patterns and
  trends for growth, decay and recovery
 Provides leading indicators of development and momentum of the
  brand and business
 Relates key brand metrics to Financial Performance


                                 Proprietary Database:             June 2009
                                 BrandAsset® Valuator
    Essential Brand Dimensions: The Four Pillars


  A Brand’s pillars are measured relative to all other brands in the BrandScape.
                ENERGIZED
             DIFFERENTIATION
               The brand’s point
                 of difference.
              Relates to margins.       RELEVANCE
                                     How appropriate the
                                       brand is to you.
                                      Relates to market
                                         penetration.

                                                                       ESTEEM
                                                                  How well regarded
                                                                    the brand is.            KNOWLEDGE
Percentile                                                                                       An intimate
  rank                                                                                         understanding
                                                                                                of the brand.
                                                                                      Relates to consumer experience.




                            Brand Strength                                      Brand Stature
                          Leading Indicator                                   Current Indicator
                         Future Growth Value                               Current Operating Value



                                               Proprietary Database:                              June 2009
                                               BrandAsset® Valuator
  PowerGrid of Brand Lifecycle


The life of a brand can often be plotted on the PowerGrid as Strength increases first, followed
by Stature and eventually losing Strength and becoming ubiquitous

                              100



                                      (Energized Differentiation / Relevance)

                                                                                                           Leadership
                                                                                                                        Ubiquitous
                     Brand STRENGTH




                                                                                    Niche, Momentum
                                                                                      or Unrealized
                                                                                        Potential




                                                                                        New,
                                                                                                                Commodity or
                                                                                     Unfocused or
                                                                                                                   Eroded
                                                                                      Unknown
                                                            0
                                                                                0              Brand STATURE                   100
                                                                                             (ESTEEM / KNOWLEDGE)



                                                                                              Proprietary Database:                  June 2009
                                                                                              BrandAsset® Valuator
                                                      As discussed in The Brand Bubble, brands look like they
                                                      are stuck in a parking lot

                                                                       Before

                                                            Niche                     Leadership

                                                                                    75%
                     (DifferentiationE / Relevance)
Energized Brand Strength




                                                             61%                               78%




                                                                                          Ubiquitous




                                                             82%                     70%


                                                        New, Unknown or         Commodity or
                                                           Unfocused              Eroded

                                                                    Brand Stature
                                                               (Esteem / Knowledge)

Pre-recession benchmark periods include movements between Q4 2006-Q1 2007 vs. Q2-Q3 2006 and Q4 2007-Q1 2008 vs. Q2-Q3 2007.
Recession periods include movements between Q4 2008-Q1 2009 vs. Q2-Q3 2008.
BrandAsset Valuator: USA All Adults.




                                                                                                       Proprietary Database:   June 2009
                                                                                                       BrandAsset® Valuator
Overview
BrandAsset Consulting's Strategies for Brands during a Recession

   Brands are undergoing a shakeout. Brands are now gaining and falling at
    a more significant rate compared to a benchmark market
    • It is becoming more difficult to stay in or advance from the Niche quadrant
    • For Ubiquitous brands it’s becoming easier to erode and tougher to recover
    • But Ubiquitous brands have a new shot at leadership


   Winning brands in this recession deliver on fundamental needs while also
    embodying higher order desires
    • A focus on basic needs builds current sales, but meeting desires as well leads to
      future growth and best positions brands coming out of a recession


   Seven strategies emerged that will help carry established brands through
    a recession, capitalize on opportunities to improve while times are tough
    and position brands for post-recession growth
    • The winners are succeeding at theses strategies and have been able to elevate
      their brand during the recession
    • The decliners are not delivering on the promise embedded in the strategy




                                      Proprietary Database:                  June 2009
                                      BrandAsset® Valuator
7 strategies to weather the storm and improve brand
equity during this recession

   Build on lasting value with new service or trends


   Prove your brand is an enduring advocate

   Leverage established reputation to renew and extend consumer
   interest

   Make it easy and contemporary for consumers to take care of
   themselves

   Couple chic with wallet friendly and lasting quality


   Offer accessible and guilt-free indulgences

   Help consumers make the most of today and be more optimistic
   about tomorrow



                              Proprietary Database:       June 2009
                              BrandAsset® Valuator
                                                      During the recession, brands are more likely to move,
                                                      but with increased risk to deteriorate


                                                                       Before                                                                                                         Recession
                                                            Niche                     Leadership                                                                             Niche                     Leadership

                                                                                    75%                                                                                                              72%
                     (DifferentiationE / Relevance)




                                                                                                                                        (DifferentiationE / Relevance)
Energized Brand Strength




                                                                                                                   Energized Brand Strength
                                                             61%                               78%                                                                           56%                                71%

                                                              27.1%                  11.3%                                                                                    36.3%                   14.3%


                                                                                          Ubiquitous                                                                                                       Ubiquitous




                                                             82%                      70%                                                                                     80%                      73%



                                                        New, Unknown or         Commodity or                                                                             New, Unknown or        Commodity or
                                                           Unfocused              Eroded                                                                                    Unfocused              Eroded

                                                                    Brand Stature                                                                                                    Brand Stature
                                                               (Esteem / Knowledge)                                                                                             (Esteem / Knowledge)
Statistically significant differences in quadrant movements between recession and pre-recession periods are bolded.
Pre-recession benchmark periods include movements between Q4 2006-Q1 2007 vs. Q2-Q3 2006 and Q4 2007-Q1 2008 vs. Q2-Q3 2007.
Recession periods include movements between Q4 2008-Q1 2009 vs. Q2-Q3 2008.
BrandAsset Valuator: USA All Adults.




                                                                                                       Proprietary Database:                                                                          June 2009
                                                                                                       BrandAsset® Valuator
                                                      Yet, there are also more opportunities for Ubiquitous
                                                      brands to improve


                                                                        Before                                                                                                     Recession
                                                            Niche                    Leadership                                                                           Niche                     Leadership


                                                             10.9%                                  10.0%                                                                 7.0%                                    13.1%
                     (DifferentiationE / Relevance)




                                                                                                                                     (DifferentiationE / Relevance)
Energized Brand Strength




                                                                                                                Energized Brand Strength
                                                             61%                             78%                                                                          56%                             71%

                                                              27.1%                  11.3%                                                                                 36.3%                  14.3%


                                                                                       Ubiquitous                                                                                                    Ubiquitous




                                                        New, Unknown or          Commodity or                                                                         New, Unknown or        Commodity or
                                                           Unfocused               Eroded                                                                                Unfocused              Eroded

                                                                     Brand Stature                                                                                                Brand Stature
                                                               (Esteem / Knowledge)                                                                                          (Esteem / Knowledge)
Statistically significant differences in quadrant movements between recession and pre-recession periods are bolded.
Pre-recession benchmark periods include movements between Q4 2006-Q1 2007 vs. Q2-Q3 2006 and Q4 2007-Q1 2008 vs. Q2-Q3 2007.
Recession periods include movements between Q4 2008-Q1 2009 vs. Q2-Q3 2008.
BrandAsset Valuator: USA All Adults.




                                                                                                    Proprietary Database:                                                                         June 2009
                                                                                                    BrandAsset® Valuator
                     Why invest for the future during a recession?
                     Investing in Marketing and R&D during a recession has long term
                     benefits for all companies, even those with net operating losses
                      Marketing and innovation solidify an                                                            Even in bad times, it makes sense to
                       advantage during a recession                                                                     invest for the future
                       • Firms with operating income that continue to                                                   • Investing is also the best strategy for firms
                         increase investments enjoy returns 4 times                                                       with net operating losses
                         higher than firms that cut costs

                     40%                                                                                              0%



                     30%                                                                                             -10%
                                                                                                                                                                              2x
  Relative Returns




                                                                                                  Relative Returns
                     20%                                                          4x                                 -20%



                     10%                                                                                             -30%



                     0%                                                                                              -40%
                           Year 0   Year 1   Year 2      Year 3       Year 4       Year 5                                      Year 0     Year 1   Year 2   Year 3   Year 4   Year 5


                                                                         Expenditure                                        Expenditure
                                                                          Increases                                         Reductions
Based on Natalie Mizik and Robert Jacobson (“Marketing Strategies Across Economic Conditions”), Columbia University Working Paper, 2009.
Recessionary times are determined using the Chicago Fed National Activity Index (CFNAI). Sample Period: 1989-2005.
Changes in operating income are based on unanticipated earnings. Operating Income is measured relative to Assets.
Expenditures includes Marketing, R&D, and Corporate costs (=[SG&A+R&D]/Assets). Relative returns are risk adjusted stock returns.




                                                                                  Proprietary Database:                                                         June 2009
                                                                                  BrandAsset® Valuator
The winners,
the losers, and
how to get ahead
       Successful brands today fulfill both needs and desires
      Needs are ties to current sales while desires drive future value

         DESIRES                                     Yes we Can                                       Durable           NEEDS
                                                    Independent                                      Energetic
                                                     Intelligent                                      Reliable
                                                       Leader                                         Rugged
                                                     Progressive                                    Trustworthy
         ENERGIZED
      DIFFERENTIATION                                     Chic                                     The Value Add
                                                     Glamorous                                                        RELEVANCE
                                                                                                     Worth More
                                                       Stylish                                       High Quality
                                                       Trendy                                     High Performance


                                                                                                   No Nonsense
                                                       Playful                                     Down to Earth                    ESTEEM
                                                                                                       Simple
                                                      Carefree
                                                                                                  Straightforward
                                                        Fun
                                                      Friendly
                                                                                                    Good Value
                                                                                                    Good Value
                                                     Innovative

                                                     Innovative
                                                                                                    True to Self
                                                                                                     Authentic
                                                                                                      Original

                                                    Conspicuous
                                                     Arrogant                                         Advocate
                                                    Prestigious                               Cares about Customers
                                                  Unapproachable                                     Helpful
                                                    Upper Class                                      Obliging

Strategic themes are shown next to Pillar with which they are most correlated.




                                                                          Proprietary Database:                         June 2009
                                                                          BrandAsset® Valuator
In a recession, established brands have to continue to invest in
Energized Differentiation but also protect Relevance and
Esteem levels to prevent dropping



                                                           • Energized
                                                       Differentiation still
             Brands                                   the largest factor in
            Improving                                   brands dropping
                                                           • Relevance and
                                                          Esteem losses are
              • Energized                                 increasing factors
         Differentiation is the
           leading driver of                                  Brands
             improvement                                     Dropping
           • Relevance and
           Esteem are more
          important to drive
                change




                                  Proprietary Database:                        June 2009
                                  BrandAsset® Valuator
                                                      Energized Differentiation is still the most important component,
                                                      for Ubiquitous brands gaining or losing, but Relevance and
                                                      Esteem are now more critical than before

                                                                     Recession




                                                                                                                            Average Pillar Increase
                                                            Niche                   Leadership


                                                                                                                                                                              1.4x Esteem
                                                                                                   13.1%
                                                                                                                                                                              1.4x Relevance
                     (DifferentiationE / Relevance)
Energized Brand Strength




                                                                                             71%
                                                                                                                                                                              1.0x Energized
                                                                                    14.3%                                                                                          Differentiation

                                                                                                                                                        Pre-      Recession    Change in Pillar
                                                                                      Ubiquitous                                                      Recession


                                                                                                                                                        Pre-
                                                                                                                                                      Recession   Recession    Change in Pillar




                                                                                                                           Average Pillar Drop
                                                                                                                                                                              1.2x Energized
                                                                                                                                                                                   Differentiation


                                                        New, Unknown or       Commodity or
                                                           Unfocused            Eroded
                                                                                                                                                                              1.3x Relevance
                                                                    Brand Stature
                                                               (Esteem / Knowledge)                                                                                           2.1x Esteem

Pre-recession benchmark periods include movements between Q4 2006-Q1 2007 vs. Q2-Q3 2008 and Q4 2007-Q1 2008 vs. Q2-Q3 2008.
Recession periods include movements between Q4 2008-Q1 2009 vs. Q2-Q3 2008.
Base: BAV USA All Adults.




                                                                                                   Proprietary Database:                                                        June 2009
                                                                                                   BrandAsset® Valuator
7 strategies to weather the storm and improve brand
equity during this recession

   Build on lasting value with new service or trends


   Prove your brand is an enduring advocate

   Leverage established reputation to renew and extend consumer
   interest

   Make it easy and contemporary for consumers to take care of
   themselves

   Couple chic with wallet friendly and lasting quality


   Offer accessible and guilt-free indulgences

   Help consumers make the most of today and be more optimistic
   about tomorrow



                              Proprietary Database:       June 2009
                              BrandAsset® Valuator
          Build on lasting value with new service or trends
          Brands that are built to last are winning

       Provide consumers with enhanced and
         lasting value. As uncertainty in the
         financial markets and the economy
      persist, consumers are taking shelter by
                                                                                                                                                          Recession
       buying into brands that will be around                                                                                                    Niche                   Leadership
      tomorrow, next week, and in 100 years.
      Brands with the durability to survive and




                                                                                                            (DifferentiationE / Relevance)
                                                                                       Energized Brand Strength
                                                                                                                                                                                       13.1%
      the credibility to deliver on promises are
                                                                                                                                                                               71.3%
      poised to thrive. Combine stability with a
      bonus element of service, style, or fun to
               gain an extra advantage.                                                                                                                                   Ubiquitous




                                                                                                                                             New, Unknown or       Commodity or
                                                                                                                                                Unfocused             Eroded

                                                                                                                                                         Brand Stature
                                                                                                                                                  (Esteem / Knowledge)




Pre-recession benchmark periods include movements between Q4 2006-Q1 2007 vs. Q2-Q3 2006 and Q4 2007-Q1 2008 vs. Q2-Q3 2007.
Recession periods include movements between Q4 2008-Q1 2009 vs. Q2-Q3 2008.
BrandAsset Valuator: USA All Adults.




                                                                   Proprietary Database:                                                                                  June 2009
                                                                   BrandAsset® Valuator
  Build on lasting value with new service or trends
  Successful brands deliver on shaded themes
 DESIRES            Yes we Can                                 Durable           NEEDS
                   Independent                                Energetic
                    Intelligent                                Reliable
                      Leader                                   Rugged
                    Progressive                              Trustworthy
   ENERGIZED
DIFFERENTIATION        Chic                                 The Value Add
                    Glamorous                                                  RELEVANCE
                                                              Worth More
                      Stylish                                 High Quality
                      Trendy                               High Performance


                                                            No Nonsense
                     Playful                                Down to Earth                    ESTEEM
                                                                Simple
                    Carefree
                                                           Straightforward
                      Fun
                    Friendly
                                                             Good Value
                                                             Good Value
                    Innovative

                    Innovative
                                                             True to Self
                                                              Authentic
                                                               Original

                   Conspicuous
                     Arrogant                                  Advocate
                    Prestigious                        Cares about Customers
                  Unapproachable                              Helpful
                    Upper Class                               Obliging




                                   Proprietary Database:                         June 2009
                                   BrandAsset® Valuator
          Prove your brand is an enduring advocate
          Brands who are faltering on security are falling

       Security is no longer guaranteed. Yet,
      personal safety and financial security are
           must haves in uncertain times.
        Consumers need to believe that your
                                                                                                                                                          Recession
      brand will not only survive the economic                                                                                                   Niche                   Leadership
       storm, but will carry them through as
       well. Prove your brand is an enduring




                                                                                                            (DifferentiationE / Relevance)
                                                                                       Energized Brand Strength
       advocate who doesn’t mess around to
             move back to solid ground.
                                                                                                                                                                         14.3%


                                                                                                                                                                          Ubiquitous




                                                                                                                                             New, Unknown or       Commodity or
                                                                                                                                                Unfocused             Eroded

                                                                                                                                                         Brand Stature
                                                                                                                                                  (Esteem / Knowledge)




Pre-recession benchmark periods include movements between Q4 2006-Q1 2007 vs. Q2-Q3 2006 and Q4 2007-Q1 2008 vs. Q2-Q3 2007.
Recession periods include movements between Q4 2008-Q1 2009 vs. Q2-Q3 2008.
BrandAsset Valuator: USA All Adults.




                                                                   Proprietary Database:                                                                                  June 2009
                                                                   BrandAsset® Valuator
  Prove your brand is an enduring advocate
  Successful brands deliver on shaded themes
 DESIRES            Yes we Can                                 Durable           NEEDS
                   Independent                                Energetic
                    Intelligent                                Reliable
                      Leader                                   Rugged
                    Progressive                              Trustworthy
   ENERGIZED
DIFFERENTIATION        Chic                                 The Value Add
                    Glamorous                                                  RELEVANCE
                                                              Worth More
                      Stylish                                 High Quality
                      Trendy                               High Performance


                                                            No Nonsense
                     Playful                                Down to Earth                    ESTEEM
                                                                Simple
                    Carefree
                                                           Straightforward
                      Fun
                    Friendly
                                                             Good Value
                                                             Good Value
                    Innovative

                    Innovative
                                                             True to Self
                                                              Authentic
                                                               Original

                   Conspicuous
                     Arrogant                                  Advocate
                    Prestigious                        Cares about Customers
                  Unapproachable                              Helpful
                    Upper Class                               Obliging




                                   Proprietary Database:                         June 2009
                                   BrandAsset® Valuator
          Leverage established brand reputation to renew and extend
          consumer interest
          Winning brands bring good value and have the consumer’s faith

          Make it easy for consumers to make
       choices that don’t break the bank. Given
        all the uncertainty, consumers have no
         patience nor discretionary money for
                                                                                                                                                          Recession
       trying out the unknown. Consumers are                                                                                                     Niche                   Leadership
        reverting back to the simple, authentic,
         and value conscious brands that they




                                                                                                            (DifferentiationE / Relevance)
                                                                                       Energized Brand Strength
                                                                                                                                                                                       13.1%
         have known (but maybe not used) for
                                                                                                                                                                               71.3%
        years. Innovate with new product lines
       and category extensions to capitalize on
                   captive audience.                                                                                                                                      Ubiquitous




                                                                                                                                             New, Unknown or       Commodity or
                                                                                                                                                Unfocused             Eroded

                                                                                                                                                         Brand Stature
                                                                                                                                                  (Esteem / Knowledge)




Pre-recession benchmark periods include movements between Q4 2006-Q1 2007 vs. Q2-Q3 2006 and Q4 2007-Q1 2008 vs. Q2-Q3 2007.
Recession periods include movements between Q4 2008-Q1 2009 vs. Q2-Q3 2008.
BrandAsset Valuator: USA All Adults.




                                                                   Proprietary Database:                                                                                  June 2009
                                                                   BrandAsset® Valuator
  Leverage established brand reputation to renew and extend
  consumer interest
  Successful brands deliver on shaded themes
 DESIRES            Yes we Can                                 Durable           NEEDS
                   Independent                                Energetic
                    Intelligent                                Reliable
                      Leader                                   Rugged
                    Progressive                              Trustworthy
   ENERGIZED
DIFFERENTIATION        Chic                                 The Value Add
                    Glamorous                                                  RELEVANCE
                                                              Worth More
                      Stylish                                 High Quality
                      Trendy                               High Performance


                                                            No Nonsense
                     Playful                                Down to Earth                    ESTEEM
                                                                Simple
                    Carefree
                                                           Straightforward
                      Fun
                    Friendly
                                                             Good Value
                                                             Good Value
                    Innovative

                    Innovative
                                                             True to Self
                                                              Authentic
                                                               Original

                   Conspicuous
                     Arrogant                                  Advocate
                    Prestigious                        Cares about Customers
                  Unapproachable                              Helpful
                    Upper Class                               Obliging




                                   Proprietary Database:                         June 2009
                                   BrandAsset® Valuator
          Make it easy and contemporary for consumers to take care of
          themselves
          Losers fail to deliver on functional and financial value

      Help consumers take care of themselves.
          With wallets stretched, people are
          trading in salons and other pricey
        services for a do it yourself approach.
                                                                                                                                                          Recession
      Brands that are straightforward, durable,                                                                                                  Niche                   Leadership
      offer value (functional and financial), and
       make life easier are well positioned and




                                                                                                            (DifferentiationE / Relevance)
                                                                                       Energized Brand Strength
                                                                                                                                                                                       13.1%
        can even flourish in today’s economy.
                                                                                                                                                                               71.3%
           Break out by innovating on basic
          functionality to make self-reliance
                    contemporary.                                                                                                                                         Ubiquitous




                                                                                                                                             New, Unknown or       Commodity or
                                                                                                                                                Unfocused             Eroded

                                                                                                                                                         Brand Stature
                                                                                                                                                  (Esteem / Knowledge)




Pre-recession benchmark periods include movements between Q4 2006-Q1 2007 vs. Q2-Q3 2006 and Q4 2007-Q1 2008 vs. Q2-Q3 2007.
Recession periods include movements between Q4 2008-Q1 2009 vs. Q2-Q3 2008.
BrandAsset Valuator: USA All Adults.




                                                                   Proprietary Database:                                                                                  June 2009
                                                                   BrandAsset® Valuator
  Make it easy and contemporary for consumers to take care of
  themselves
  Successful brands deliver on shaded themes
 DESIRES            Yes we Can                                 Durable           NEEDS
                   Independent                                Energetic
                    Intelligent                                Reliable
                      Leader                                   Rugged
                    Progressive                              Trustworthy
   ENERGIZED
DIFFERENTIATION        Chic                                 The Value Add
                    Glamorous                                                  RELEVANCE
                                                              Worth More
                      Stylish                                 High Quality
                      Trendy                               High Performance


                                                            No Nonsense
                     Playful                                Down to Earth                    ESTEEM
                                                                Simple
                    Carefree
                                                           Straightforward
                      Fun
                    Friendly
                                                             Good Value
                                                             Good Value
                    Innovative

                    Innovative
                                                             True to Self
                                                              Authentic
                                                               Original

                   Conspicuous
                     Arrogant                                  Advocate
                    Prestigious                        Cares about Customers
                  Unapproachable                              Helpful
                    Upper Class                               Obliging




                                   Proprietary Database:                         June 2009
                                   BrandAsset® Valuator
          Couple chic with wallet friendly and lasting quality
          Losers offer style without substance

      Style without substance is out of fashion.
          Wear today, throw away tomorrow
          doesn’t cut it in today’s economic
         climate. Fashionable brands without
                                                                                                                                                          Recession
      genuine or lasting value are falling out of                                                                                                Niche                   Leadership
        favor. Couple chic with wallet friendly
         and enduring quality to stay afloat.




                                                                                                            (DifferentiationE / Relevance)
                                                                                       Energized Brand Strength
                                                                                                                                                                                 71.3%

                                                                                                                                                                         14.3%


                                                                                                                                                                          Ubiquitous




                                                                                                                                             New, Unknown or       Commodity or
                                                                                                                                                Unfocused             Eroded

                                                                                                                                                         Brand Stature
                                                                                                                                                  (Esteem / Knowledge)




Pre-recession benchmark periods include movements between Q4 2006-Q1 2007 vs. Q2-Q3 2006 and Q4 2007-Q1 2008 vs. Q2-Q3 2007.
Recession periods include movements between Q4 2008-Q1 2009 vs. Q2-Q3 2008.
BrandAsset Valuator: USA All Adults.




                                                                   Proprietary Database:                                                                                  June 2009
                                                                   BrandAsset® Valuator
  Couple chic with wallet friendly and lasting quality
  Successful brands deliver on shaded themes
 DESIRES            Yes we Can                                 Durable           NEEDS
                   Independent                                Energetic
                    Intelligent                                Reliable
                      Leader                                   Rugged
                    Progressive                              Trustworthy
   ENERGIZED
DIFFERENTIATION        Chic                                 The Value Add
                    Glamorous                                                  RELEVANCE
                                                              Worth More
                      Stylish                                 High Quality
                      Trendy                               High Performance


                                                            No Nonsense
                     Playful                                Down to Earth                    ESTEEM
                                                                Simple
                    Carefree
                                                           Straightforward
                      Fun
                    Friendly
                                                             Good Value
                                                             Good Value
                    Innovative

                    Innovative
                                                             True to Self
                                                              Authentic
                                                               Original

                   Conspicuous
                     Arrogant                                  Advocate
                    Prestigious                        Cares about Customers
                  Unapproachable                              Helpful
                    Upper Class                               Obliging




                                   Proprietary Database:                         June 2009
                                   BrandAsset® Valuator
          Offer accessible and guilt-free indulgences
          Home entertainment and fun foods are winning

        Give consumers an enjoyable escape.
         These days, volatile markets provide
          enough excitement (and not in an
        entertaining way) so people are taking
                                                                                                                                                          Recession
       solace in the small things that make life                                                                                                 Niche                   Leadership
         more enjoyable. But, being fun is not
            enough, brands that don’t also




                                                                                                            (DifferentiationE / Relevance)
                                                                                       Energized Brand Strength
                                                                                                                                                                                       13.1%
          incorporate value won’t see a big
       payday. Brands growing in this economy                                                                                                                                  71.3%

         also offer substance and originality.
                                                                                                                                                                          Ubiquitous




                                                                                                                                             New, Unknown or       Commodity or
                                                                                                                                                Unfocused             Eroded

                                                                                                                                                         Brand Stature
                                                                                                                                                  (Esteem / Knowledge)




Pre-recession benchmark periods include movements between Q4 2006-Q1 2007 vs. Q2-Q3 2006 and Q4 2007-Q1 2008 vs. Q2-Q3 2007.
Recession periods include movements between Q4 2008-Q1 2009 vs. Q2-Q3 2008.
BrandAsset Valuator: USA All Adults.




                                                                   Proprietary Database:                                                                                  June 2009
                                                                   BrandAsset® Valuator
  Offer accessible and guilt-free indulgences
  Successful brands deliver on shaded themes
 DESIRES            Yes we Can                                 Durable           NEEDS
                   Independent                                Energetic
                    Intelligent                                Reliable
                      Leader                                   Rugged
                    Progressive                              Trustworthy
   ENERGIZED
DIFFERENTIATION        Chic                                 The Value Add
                    Glamorous                                                  RELEVANCE
                                                              Worth More
                      Stylish                                 High Quality
                      Trendy                               High Performance


                                                            No Nonsense
                     Playful                                Down to Earth                    ESTEEM
                                                                Simple
                    Carefree
                                                           Straightforward
                      Fun
                    Friendly
                                                             Good Value
                                                             Good Value
                    Innovative

                    Innovative
                                                             True to Self
                                                              Authentic
                                                               Original

                   Conspicuous
                     Arrogant                                  Advocate
                    Prestigious                        Cares about Customers
                  Unapproachable                              Helpful
                    Upper Class                               Obliging




                                   Proprietary Database:                         June 2009
                                   BrandAsset® Valuator
          Help consumers make the most of today and be more
          optimistic about tomorrow
          Win with hope

         Bestow consumers with hope and
         optimism. Since gloom and doom
        surround, consumers will latch onto
      anything that makes tomorrow seem like
                                                                                                                                                          Recession
          it will be better. Brands that help                                                                                                    Niche                   Leadership
      consumers believe in themselves and the
             future have a bright outlook.




                                                                                                            (DifferentiationE / Relevance)
                                                                                       Energized Brand Strength
                                                                                                                                                                                       13.1%

                                                                                                                                                                               71.3%




                                                                                                                                                                          Ubiquitous




                                                                                                                                             New, Unknown or       Commodity or
                                                                                                                                                Unfocused             Eroded

                                                                                                                                                         Brand Stature
                                                                                                                                                  (Esteem / Knowledge)




Pre-recession benchmark periods include movements between Q4 2006-Q1 2007 vs. Q2-Q3 2006 and Q4 2007-Q1 2008 vs. Q2-Q3 2007.
Recession periods include movements between Q4 2008-Q1 2009 vs. Q2-Q3 2008.
BrandAsset Valuator: USA All Adults.




                                                                   Proprietary Database:                                                                                  June 2009
                                                                   BrandAsset® Valuator
  Help consumers make the most of today and be more
  optimistic about tomorrow
  Successful brands deliver on shaded themes
 DESIRES            Yes we Can                                 Durable           NEEDS
                   Independent                                Energetic
                    Intelligent                                Reliable
                      Leader                                   Rugged
                    Progressive                              Trustworthy
   ENERGIZED
DIFFERENTIATION        Chic                                 The Value Add
                    Glamorous                                                  RELEVANCE
                                                              Worth More
                      Stylish                                 High Quality
                      Trendy                               High Performance


                                                            No Nonsense
                     Playful                                Down to Earth                    ESTEEM
                                                                Simple
                    Carefree
                                                           Straightforward
                      Fun
                    Friendly
                                                             Good Value
                                                             Good Value
                    Innovative

                    Innovative
                                                             True to Self
                                                              Authentic
                                                               Original

                   Conspicuous
                     Arrogant                                  Advocate
                    Prestigious                        Cares about Customers
                  Unapproachable                              Helpful
                    Upper Class                               Obliging




                                   Proprietary Database:                         June 2009
                                   BrandAsset® Valuator
7 strategies to weather the storm and improve brand
equity during this recession

   Build on lasting value with new service or trends


   Prove your brand is an enduring advocate

   Leverage established reputation to renew and extend consumer
   interest

   Make it easy and contemporary for consumers to take care of
   themselves

   Couple chic with wallet friendly and lasting quality


   Offer accessible and guilt-free indulgences

   Help consumers make the most of today and be more optimistic
   about tomorrow



                              Proprietary Database:       June 2009
                              BrandAsset® Valuator
BrandAsset® Consulting Team




                                                                BrandAsset® Consulting
                                                                285 Madison Avenue
                                                                New York, NY 10017

                                                               www.brandassetconsulting.com




     Ed Lebar                    Anne Rivers                  Seth Traum                   Ryan Barker
     EVP                         SVP                          SVP                          SVP
     CEO                         Director of Brand Strategy   Director of Brand Strategy   Director of Brand Strategy
     212.210.4226                212.210.3553                 212.210.3841                 212.210.4665
     ed.lebar                    anne.rivers                  seth.traum                   ryan.barker
     @brandassetconsulting.com   @brandassetconsulting.com    @brandassetconsulting.com    @brandassetconsulting.com




                                                  Proprietary Database:                                      June 2009
                                                  BrandAsset® Valuator
Appendix
Time periods



Pre-recession                                          Recession:
(benchmark periods):

Q2-Q3 2006 -> Q4 2006-Q1 2007
                                                       Q2-Q3 2008 -> Q4 2008-Q1 2009

Q2-Q3 2007 -> Q4 2007-Q1 2008


              t1                 &                t2                     vs.             t3




Q2     Q3          Q4     Q1         Q2    Q3          Q4         Q1       Q2     Q3          Q4          Q1
2006   2006        2006   2007   2007     2007         2007       2008     2008   2008        2008        2009




                                          Proprietary Database:                               June 2009
                                          BrandAsset® Valuator
Methodology
BrandAsset Consulting's Strategies for Brands during a Recession

   We used our database of 3,500 brands to find common themes and strategies emerging when
    looking at brands that have been gaining and falling at a more significant rate during a recession
    compared to a benchmark market
    •   Aggregated all brands in BAV database over last seven half-years starting from most recent half-year (Q42008-
        Q12009)
    •   Evaluated brand movement pre-recession vs. current time period to identify statistically significant differences in
        the likelihood of moving across PowerGrid quadrants

   We found 10 emergent themes that relate to needs and desires
    •   Factored BAV imagery into strategic themes based on how attributes move together in recessionary times to
        identify key levers
    •   Developed econometric models showing that strategic themes align with Pillars along needs and desires and power
        of themes to explain movements in brand equity across full BrandScape has not shifted during recession.

   We also found strategies based on strategic themes and defined by brand winners and losers that
    will help carry a brand through a recession
    •   Clustered normalized brand factor data to identify category patterns among brands that are winning and losing.
        Normalization for mean and standard deviation within a brand’s image isolates true brand essence. Classified
        historic brand data into clusters to evaluate changes over time.
    •   Analyzed factor and category composition of clusters to discover value proposition offered
    •   Identified brand groups that over index versus baseline quadrant in upward and downward movements to pinpoint
        types of brands which experience excess movement.
    •   Compared deltas and levels in themes across quadrants and time to identify successful strategies. Uncovered
        elements separating winners and losers by analyzing factor composition of brand clusters across winning and losing
        brands.




                                                    Proprietary Database:                                   June 2009
                                                    BrandAsset® Valuator