HOWTOBRIDGETHEDISTANCEBETWEENBUSINESSSTRATEGYANDDESIGNAVISUALPRESENTATIONBYMARTYNEUMEIERNEUTRONLLC.COMCopyright©2003NeutronLLC.Foreducationaluseonly.Nopartofthispresentationmaybepublished,sold,orotherwiseusedforprofitwithoutthewrittenpermissionoftheauthor.ProducedbyNEUTRONLLCinpartnershipwithNEWRIDERSPUBLISHINGandTHEAMERICANINSTITUTEOFGRAPHICARTSAmoderndefinitionofbrandThefivedisciplinesofbrand-buildingWHATYOU’LLLEARN:21NEUTRONLLC.COMNEUTRONLLC.COMREADY?NEUTRONLLC.COMLET’SSTARTBYDISPELLINGSOMEMYTHS.NEUTRONLLC.COMFIRSTAbrandisnotalogo.NEUTRONLLC.COMNEUTRONLLC.COMSECONDAbrandisnotanidentity.NEUTRONLLC.COMXNEUTRONLLC.COMFINALLYAbrandisnotaproduct.NEUTRONLLC.COMNEUTRONLLC.COMSowhatexactlyisabrand?NEUTRONLLC.COMABRANDISAPERSON’SGUTFEELINGABOUTAPRODUCT,SERVICE,ORORGANIZATION.NEUTRONLLC.COMNEUTRONLLC.COMNEUTRONLLC.COMInotherwords…NEUTRONLLC.COMIT’SNOTWHATYOUSAYITIS.NEUTRONLLC.COMIT’SWHATTHEYSAYITIS.NEUTRONLLC.COMWHYISBRANDINGSOHOT?PeoplehavetoomanychoicesandtoolittletimeMostofferingshavesimilarqualityandfeaturesWetendtobaseourbuyingchoicesontrust123NEUTRONLLC.COMTHEREARE1,349CAMERASONTHEMARKET.HOWDOYOUDECIDEWHICHONETOBUY?NEUTRONLLC.COMNEUTRONLLC.COMTRUSTNEUTRONLLC.COMNEUTRONLLC.COM$Doesabrandhaveadollarvalue?NEUTRONLLC.COMANDHOW.NEUTRONLLC.COM5waystomeasurebrandvalue:PRICEPREMIUMCUSTOMERPREFERENCEREPLACEMENTCOSTSTOCKPRICEFUTUREEARNINGS12345NEUTRONLLC.COMBRANDNAMECOCA-COLAMICROSOFTIBMFORDMERCEDESHONDABMWKODAKGAPNIKEPEPSIXEROXAPPLESTARBUCKSTHISSELECTIONFROMINTERBRAND’STOP100LISTSHOWSWHYBRANDSAREWORTHPROTECTING:2001BRANDVALUE($MM)68,94565,06852,75230,09221,72814,63813,85810,8018,7467,5896,2146,0195,4641,757%CHANGEBRANDVS.PREVIOUSYEAR-5%-7%-1%-17%+3%-4%+7%-9%-6%-5%-6%-38%-17%+32%BRANDVALUEAS%OFMARKETCAP61%17%27%66%48%33%62%82%35%66%9%93%66%21%NEUTRONLLC.COMCOKE’SMARKETCAP,INCLUDINGBRANDVALUE:$120BILLIONCOKE’SMARKETCAP,NOTINCLUDINGBRANDVALUE:$50BILLIONWITHOUTTHEBRAND,COKE’SGLASSWOULDBEHALFEMPTY.NEUTRONLLC.COMThemainpurposeofbrandingistogetmorepeopletobuymorestufff...