2. TULIPMANIA!
TIME DESTROYS THE
SPECULATION OF MEN,
BUT IT CONFIRMS
NATURE
-CICERO, 106-43 BC
Tuesday, May 18, 2010
3. 62% OF THE WORLD’S
GDP ($19.5 TRILLION) IS
NOW INTANGIBLE
60
50
ENTERPRISE VALUE
40
30
1950S 1960S 1970S 1980S 1990S 2000S
Source: Brand Finance 2007
Tuesday, May 18, 2010
4. BRANDS NOW ACCOUNT
FOR 30% OF THE VALUE OF
THE S&P 500
Source: Millward Brown Optimor 2007
30
37 Copyright John Gerzema/Young & Rubicam
Tuesday, May 18, 2010
5. THE 250 MOST VALUABLE
GLOBAL BRANDS ARE WORTH
$2.197 TRILLION DOLLARS
Source: Calculation based on 2007 IMF list on GDP purchase power parity
31
38 Copyright John Gerzema/Young & Rubicam
Tuesday, May 18, 2010
6. TOP 10 MOST VALUABLE
BRANDS ARE LARGER THAN
THE MARKET CAP
OF 70% OF U.S. PUBLIC
COMPANIES.
Source: Booz & Co 2007
6
Tuesday, May 18, 2010
8. THE MARKETS THINK BRANDS
ARE WORTH MORE THAN THE
CONSUMERS WHO BUY THEM.
WALL STREETS
ESTIMATION OF
PERCEIVED CONSUMER
UTILITY
THE BRAND BUBBLE
CONSUMERS ACTUAL
PERCEIVED UTILITY
VALUE TO CONSUMER
PRICE
VALUE TO COMPANY
COST
CONSUMERS ARE SHORTING BRANDS BASED
ON 2,500 BRANDS STUDIED 1993-2008
Tuesday, May 18, 2010
9. BRAND ESTEEM AND
REGARD IS DOWN 12%
BRAND AWARENESS HAS
DECLINED BY 20%
PERCEPTIONS OF BRAND
QUALITY HAS ERODED 24%
TRUST IN BRANDS HAS
DECLINED BY 50%
32
39 Copyright John Gerzema/Young & Rubicam
39
Tuesday, May 18, 2010
10. 90% OF 42 CONSUMERS ARE ONLY 7% OF
PRODUCT 50% MORE PRICE PRIME TIME
CATEGORIES SENSITIVE COMMERCIALS
LOST BRAND THAN 25 YEARS INCLUDED A
DIFFERENTIATION. AGO. DIFFERENTIATED
-Source: Jack Trout/Kevin Clancy 2002 & -Source: Leanord Ladish, Carl Mela MESSAGE.
Copernicus Market Facts 2007 Harvard Business Review, 2006
-Source: jack Trout/Kevin Clancy 2002
THE PERCENTAGE BETWEEN 2004- AMONG
OF PEOPLE WHO 2007, THE TOP 100 INTERBRAND’S
SAY THEY’RE BRANDS GREW BY TOP 100 MOST
LOYAL TO ONE 16%, BUT BRAND VALUABLE
BRAND DECLINED DIFFERENTIATION BRANDS, 45%
FROM 40 TO 9% DID NOT IMPROVE WERE ACTUALLY
FROMS 2000-2006. AMONG 85% OF DECLINING IN
-Source: Carlson Marketing Group BRANDS IN BAV. CONSUMER
-Source: Interbrand 2004-2007, PERCEPTIONS.
BAV same period
-Source: BAV 1993-2007
10
Tuesday, May 18, 2010
11. THEN CAME ‘THE GREAT RECESSION’
54 Copyright John Gerzema/Young & Rubicam
Tuesday, May 18, 2010
12. SELFISHNESS AND
COLLUSION
27 Copyright John Gerzema/Young & Rubicam
Tuesday, May 18, 2010
13. FAILURE OF REGULATORS
30 Copyright John Gerzema/Young & Rubicam
Tuesday, May 18, 2010
14. TAXPAYERS ARE NOW
SHAREHOLDERS
31
25 Copyright John Gerzema/Young & Rubicam
Tuesday, May 18, 2010
15. EGREGIOUS AND
CRIMINAL BEHAVIOR
29 Copyright John Gerzema/Young & Rubicam
Tuesday, May 18, 2010
16. WE EXAMINED 15 YEARS OF DATA FROM
BRANDASSET VALUATOR®
WORLD’S LARGEST 40,000 BRANDS QUARTERLY U.S.
DATABASE OF PANEL OF 15,000+
BRANDS 215 STUDIES RESPONDENTS
OVER 500,00 ACROSS 44 72 DIFFERENT
CONSUMERS COUNTRIES BRAND METRICS
16
Tuesday, May 18, 2010
17. A ‘TRUST VIRUS’ HAS INFECTED
MANY CATEGORIES
41 Source: BAV USA FY2006, FY2007, Q4 2007, Q4 2008; All Adults
Copyright John Gerzema/Young & Rubicam
Tuesday, May 18, 2010
18. TRUST IS DESIRABLE, BUT IT HASN’T
DIFFERENTIATED
40 Source:BrandAsset Valuator 1993-2007 Copyright John Gerzema/Young & Rubicam
Tuesday, May 18, 2010
20. CONSUMERS ARE SHIFTING THEIR
CONCEPTS OF ‘NECESSITY’
10 Source: The Atlantic Copyright John Gerzema/Young & Rubicam
Tuesday, May 18, 2010
21. THE 50-20 PARADOX
9 Source: Board of Governors of the Federal Reserve System Copyright John Gerzema/Young & Rubicam
Tuesday, May 18, 2010
22. WE ARE SHIFTING OUR VALUES FROM WHAT WE CARRY,
TO HOW WE CARRY OURSELVES
1 Source: BAV 1997, 2001, 2005, 2008, 2009 FH; attribute correlations to energized differentiation Copyright John Gerzema/Young & Rubicam
Tuesday, May 18, 2010
23. RADICAL SHIFTS IN WHAT MATTERS
23 Source: BAV Recession Survey 2009-2010/J.Gerzema
Tuesday, May 18, 2010
24. AND CONSUMERS ARE ALIGNING THEIR
SPENDING WITH THEIR VALUES
“These days I feel more in
“I am happier with a
control when I do things
64.8% simple, more down to 64.7% myself instead of relying
basics lifestyle”
on others”
“I believe my friends and I “I realize that how many
can change corporate possessions I have does
65.5% behavior by supporting 76.1% not have much to do with
companies that do the how happy I am”
right thing”
“I make it a point to buy
“Money is the best measure from companies whose
77.9% of success”
70.9% values are similar to my
own”
2 Source: BAV Recession Survey 2009-2010/J.Gerzema Copyright John Gerzema/Young & Rubicam
Tuesday, May 18, 2010
25. THE NEW RULES OF
‘POST-CRISIS CONSUMERISM’
NEW CULTURAL VALUES
NEW CONSUMER BEHAVIORS
NEW MANAGEMENT PRINCIPLES
49 Copyright John Gerzema/Young & Rubicam
Tuesday, May 18, 2010
26. POST-CRISIS CONSUMERISM
RULE #1
CULTURAL VALUE = LIQUID LIFE
CONSUMER STRATEGY = DÉCLASSÉ
CONSUMPTION
MANAGEMENT PRINCIPLE = DOLLARS & SENSE
56 Copyright John Gerzema/Young & Rubicam
Tuesday, May 18, 2010
40. POST-CRISIS CONSUMERISM
RULE #2
CULTURAL VALUE = ETHICS AND
FAIR PLAY
CONSUMER STRATEGY = EMPATHY AND
RESPECT
MANAGEMENT = VALUE AND
PRINCIPLE VALUES
40 Copyright John Gerzema/Young & Rubicam
Tuesday, May 18, 2010
67. POST-CRISIS CONSUMERISM
RULE #4
CULTURAL VALUE = RETURN TO THE
FOLD
CONSUMER STRATEGY = COOPERATIVE
CONSUMERISM
MANAGEMENT = COMMUNITY
PRINCIPLE ORGANIZER
59 Copyright John Gerzema/Young & Rubicam
Tuesday, May 18, 2010
