The last decade has seen unprecedented change in the branding landscape - none moreso than the emergence and spectacular growth of digital brands – and these changes have been observed, tracked and measured by BrandZ. Brands such as Google, Facebook, Trendyol and Lidyana have become embedded in the lives of billions and created a global industry based on IP, customer data and the unparalleled ability to tailor information to create astonishingly strong bonds with consumers. This, in turn, has caused corporations with more traditional and established business models to reassess how they communicate and interact with and serve their consumers – from FMCG and service industries to luxury and B2B. The presentation will draw on examples of best practice from Turkey and around the world in order to demonstrate key learnings for all brand owners.

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Brand Power in the Digital Age
10 Years of BrandZ - The Rise of Digital Brands
Istanbul – 26th November 2015

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Agenda
2
BrandZ
The rise of digital brands in the Top 100
The rise of digital brands in Turkey
Adopting digital
Adopting digital in Turkey
The digital challenge – a case study in banking
The future

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BrandZ

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BRANDZ is the largest brand database worldwide
4

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BRANDZ is underpinned by the an extensive
consumer & customer research programme
5
IS BIG DATA
100K
BRANDS
400
CATEGORIES
3m
CONSUMERS
50
MARKETS
4.5bn
DATA POINTS

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BRANDZ is the most robust ranking
6
GLOBAL STANDARD
PUBLIC DATA
VALIDATED
 Globally 3million+ consumers,
100,000+ brands, 50+ markets.
 Category specific, with cross
category findings
 Entirely objective, direct-from-
consumer
COMPREHENSIVE
& OBJECTIVE
BRANDZ™ TOP 100
GLOBAL BRANDS
BRANDZ™ TOP 100
CHINESE BRANDS
BRANDZ™ TOP 50
LATAM BRANDS
BRANDZ™ TOP 50
INDIAN BRANDS
BRANDZ™ TOP 50
INDONESIAN BRANDS

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We believe that strong brands create optimal
business success
7
Source: Proprietary BrandZ™ brand strength data; Bloomberg; Millward Brown analysis
Millward Brown's analysis shows that companies with strong brands are able to
grow their share prices more than companies with weak brands:
BrandZ™ Strong Brands Portfolio Performance vs. S&P 500 vs. MSCI World Index
-50%
-30%
-10%
10%
30%
50%
70%
90%
110%
Apr 06 Sep 06 Feb 07 Jul 07 Dec 07 May 08 Oct 08 Mar 09 Aug 09 Jan 10 Jun 10 Nov 10 Apr 11 Sep 11 Feb 12 Jul 12 Dec 12 May 13 Oct 13 Mar 14 Aug 14 Jan 15
BrandZ™ Strong Brands Portfolio
S&P 500
MSCI World Index
63.0%
102.6%
30.3%

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The rise of Digital
Brands in the Top 100

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Digital Brands in the BRANDZ Top 100
9
2015201320112006
Source: BrandZ, 2105, MBV Analysis

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Drivers of digital brand success
10
• Diversified portfolio of projects and areas of interest
• Focused on driving penetration
• Premiumisation of users is a relatively recent
phenomenon
• Two types of players:
– Brands that moved real life operations into the
digital world
– Brands that invented services that did not exist
before and created new markets
2006 2015
-2000
0
2000
4000
6000
8000
10000
12000
14000
TWITTER INC LINKEDIN CORP - A FACEBOOK INC-A
Net Income RevenueSource: BrandZ, 2105, MBV Analysis
Financial performance 2014

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Value of Digital brands in the BRANDZ Top 100
11
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Billion
Value and Proportion of Digital Brands in BrandZ T100
Digital brands values % of total Top 100 brnads value
0
2
4
6
8
10
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Digital Brands in BrandZ T100
Brand Contibution % Intangible Ratio
Brand Contribution &
Intangible Ratio
Digital Brands in Top 100 (Average)
Other Brands in Top 100 (Average)

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The rise of Digital
Brands in Turkey

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Digital Brands in Turkey
Turkey is among the world leaders in B2C E-Commerce growth
Online audience is one of the most engaged in Europe – behind only the UK
Turkey's Internet users are the youngest in Europe
A quarter of all Internet users shop online
The B2C E-Commerce market share of pure Internet players in Turkey is the
highest in Europe

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Online mass merchants
Amazon-style marketplace
Attracted overseas investment
Valued at over $400M
Turkish subsidiary of eBay
“Going, going, gone”
Established in 2001

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Online fashion
Leading online fashion retailer in Turkey
with 2,000+ brands and 10million + users

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Private shopping club & celebrity
From private shopping club to e-commerce vehicle
Largest online fashion retailer in MENA
Operates across Turkey, Australia, Ukraine, Korea, Greece, Poland

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Online food delivery & grocery
“Food Cart”
3 million customers and 9,000 member restaurants in Turkey and Cyprus
CEO shared his windfall with 114 employees –gave them $237k each
Bought by Delivery Hero of Germany for $589M

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Adopting Digital

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Burberry brought the brand vision to life through a
connected on- & offline experience
• Cohesive customer experience
• Upgraded all stores to become live
versions of the website
• Digitalized to engage with Millennials
• Allocated 60% of the marketing budget to
Digital media
• Created 3 new departments: Insights &
Analytics, Social Media and Mobile
• Brought the creation of social media
content in-house
• New products would be first launched
online and only after that via traditional
media, such as billboards
• Retained its heritage
716 743 850
995
1,202 1,185
1,501
1,857 1,999
2,330
2,523
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Global Revenue, (in GBP million)

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HSBC has moved into the digital space more
aggressively than almost any other bank
“How do our consumers
want to engage with their
bank?”
“We’ll judge that in the
advocacy of the brand and
recommendation.”

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Tesco is the largest online grocer in the world
Revenue % of online UK market
≈£1Bn 10%
Revenue % of online UK market
≈£5Bn 50%

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Adoption of digital in fmcg is more difficult
Product range
Cocktails & recipes
“Good times”
Product range
Grooming tips & Online videos
New products

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Adopting digital in
Turkey

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Adoption of digital to win nationally
Leader in Turkish market
Diversified and international portfolio
Embraced implications of digital across its businesses

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Adoption of digital to win internationally
Voted Europe’s best airline 4 years in a row
More destinations than any other airline with 270+ destinations
Reservations Bookings
Baggage Tracking
Check-In Timetable
Car Rental Hotel Reservations Pay & FlyRewards
Flight Status E_Tickets
Customer Relations

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The digital challenge
A C ASE ST U D Y IN BAN KIN G

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Digital is just another cycle in the innovation of
banking
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• Digital innovations in banking industry
created new markets that carry
opportunities as well as threats for well
established players…
• … but this is nothing new
• However, banks are pressing ahead with
digital plans not only to win customers
from their immediate rivals…
• … but also with an eye to the potential
threat from Apple, Google and other tech
giants.
Source: FT, BBA report

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But the size and speed of change is striking
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Source: FT, BBA report
-4
-3
-2
47
63
70
-20 0 20 40 60 80
Negative Positive
Recent dealings with your bank:
..how enjoyable
were the interactions you had
..how effective
were they at meting your needs
..how easy
was it it get your banking tasks done
20%
30%
21%
18-24 25-34 35+
Share of UK customers who would consider using a
pure digital bank
Visits to bank branches
DOWN -
30%
Telephone banking
DOWN -
5%
Online Loans
50%
SHARE

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Banks have to keep adapting the way in which they
adopt digital
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LIFE STAGES OF DIGITAL CHALLENGE
1. Technology-led cost reduction plays
2. Digital as a tool for service and sales
3. Digital as a way of offering tailored,
relevant experiences
4. Findings the right balance
Source: BBA report, Bain & Co report
Customers who interact with their banks through both digital and physical channels are:
• more engaged
• more loyal
• more likely to hold more products

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Digital is an opportunity as well as a challenge
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Source: ThisisMoney, 2014
Consumer trust is
driven by
category norms
And is still far
more likely to
reside in
established
businesses

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The future

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Disruption of digital
An imminent launch in the UK b2c market:
• Fair and transparent, that acts in the best interest of its customers
• Technology that makes life easier and puts you in control
• A bank that is run for the benefit of its customers rather than for itself
SME-focused challenger bank :
• Traditional banks failing to increase lending to SMEs
• There is growth - but it’s all going to internet banks
• Similar mindset

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The Future?
Most categories are not
fundamentally disrupted
Most categories that are
disrupted continue to deliver the
same products and services
Digital companies are there for
the benefit of the consumer
Digital results in a far more
customer-centric business model
But they may be disintermediated
But they are accessed in a new way
Not the benefit of the provider
This is an existential challenge for
businesses that do not want to
change

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THANK YOU