IF THIS BUSINESS WERE SPLIT UP I WOULD

IF THIS BUSINESS WERE SPLIT UP, I WOULD GIVE YOU THE LAND BRICKS AND MORTAR, AND I WOULD TAKE THE BRANDS AND TRADE MARKS, AND I WOULD FARE BETTER THAN YOU… JOHN STUART, CHAIRMAN OF QUAKER CIRCA 1900 LECTURE 4. THE FINANCIAL VALUE OF BRANDS. BRAND MANAGEMENT. BRAND IDENTITY Branding

Federal Express Mission Fed. Ex Corporation will produce superior financial returns for its shareowners by providing high valueadded logistics, transportation and related business services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. Fed. Ex will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards. Strategy The unique Fed. Ex operating strategy works seamlessly - and simultaneously - on three levels. Compete collectively by standing as one brand worldwide and speaking with one voice. Operate independently by focusing on our independent networks to meet distinct customer needs. Manage collaboratively by working together to sustain loyal relationships with our workforce, customers and investors. Values People: We value our people and promote diversity in our workplace and in our thinking. Service: Our absolutely, positively spirit puts our customers at the heart of everything we do. Innovation: We invent and inspire the services and technologies that improve the way we work and live. Integrity: We manage our operations, finances and services with honesty, efficiency and reliability. Responsibility: We champion safe and healthy environments for the communities in which we live and work. Loyalty: We earn the respect and confidence of our Fed. Ex people, customers and investors every day.

Federal Express 14 Fred Smith, Fed. Ex Tenure: 1971 - Present Company growth: 6 Corporate legacy: 7 Personal reputation: 5 A former US Marine Captain, Smith took his experience as a forward air controller to the express delivery in 1971 when he founded Fed. Ex. Smith developed the first integrated air-ground shipping system, which took off two years in with 14 jets servicing 25 cities. The model revolutionized the shipping industry and the capability for easy use, overnight delivery eventually became the norm. Now Fed. Ex is the largest overnight delivery service in the US and has a market cap of $31 billion.

www. businessinsider. com

MSCI The MSCI Global Equity Indices are widely tracked global equity benchmarks and serve as the basis for over 400 exchanged traded funds throughout the world. The indices provide exhaustive equity market coverage for over 70 countries in the Developed, Emerging and Frontier Markets, applying a consistent index construction and maintenance methodology. This methodology allows for meaningful global views and cross regional comparisons across all market capitalization size, sector and style segments and combinations.

The S&P 500 is a free-float capitalization-weighted index published since 1957 of the prices of 500 large-cap common stocks actively traded in the United States. The stocks included in the S&P 500 are those of large publicly held companies that trade on either of the two largest American stock market exchanges: the New York Stock Exchange and the NASDAQ The index focus is U. S. -based companies although there a few companies with headquarters in and/or incorporated in other countries. After the Dow Jones Industrial Average[, the S&P 500 is one of the most commonly followed equity indices, is considered a bellwether for the American economy, and is included in the Index of Leading Indicators. Many mutual funds, exchange-traded funds, and other funds such as pension funds, are designed to track the performance of the S&P 500 index. Hundreds of billions of US dollars have been invested in this fashion. The index is the best known of the many indices owned and maintained by Standard & Poor's, a division of Mc. Graw-Hill. S&P 500 refers not only to the index, but also to the 500 companies that have their common stock included in the index. The ticker symbol for the S&P 500 index varies. Some examples of the symbol are ^GSPC[. INX, and $SPX. The stocks included in the S&P 500 index are also part of the broader S&P 1500 and S&P Global 1200 stock market indices.

Components of S&P market value

The contribution of brands to shareholder value

Brand valuation methodology

Why Predicting the effect of marketing and investment strategies Determining and assessing communication budgets Calculating the return on brand investments Assessing opportunities in new or undeveloped markets Tracking brand value management

For strategic brand management Making decision on business investments (resource allocations between different asset types) Measuring the return on brand investments based on brand value to arrive at ROI compared to other investments. Brand management can be measured against performance targets related to the value of brand assets Making decisions on licensing the brand to subsidiary companies. Communicating the economic value created by brand to the capital markets in order to support share prices and obtain fundings.

For strategic brand management Allocating marketing expenditures according to the benefit each business unit derives from the brand asset Optimising the use of different brands in the business (corporate, product and subsidiary brands according to their economic value contribution Assessing co-branding initiatives according to the benefits and risks to the brand Deciding a proper branding after a merger according to clear economic rationale Making decisions on brand investments (priorities by brand, customer segment, geographic market, product or service, distribution channels)

The brand management iceberg

pret a manger staff don't take a happy drug. People

The brand management process

Customer experience audit Proposition How clear is the offer and what does the brand promise? People To what extent do people behave in a way that meets customer expectations and delivers the brand promise? Processes Do they create value for customers and deliver the brand promise? Products Are products differentiated and valuable to target customers?

Сreating a brand platform Brand positioning How can you position your brand with clarity and precision? Brand naming Choosing a name for the brand that is distinctive and creates the right emotional associations Brand architecture How should the brand or subbrand work together to communicate the proposition? Brand identity How best can the brand be portrayed visually and verbally?

Customer experience design Proposition to create competitive advantage People how organization interacts with the customer Processes Products how can products be improved to highlight or demonstrate the brand value

Communicating the brand Internally Communication – everyone knows who the target customers are, what they expect, what the brand stands for and what it promises Leadership – prepare managers to lead the brand demonstrate their own commitment to the promise Training –develop on-brand training that will emotionally engage managers to equip them with knowledge Measurement – align measurement systems

Communicating the brand Externally Brand communication How best the brand communicated to its intended audience? Advertising, promotion, packaging. Audit regular management of brand image, reputation, and customer experience against the desired proposition Redefinition –periodic refreshing

The branding pentagram from Baker M. and Hart, S product strategy and Management

The branding pentagram Principles of branding: brand mission (which goals to achieve with the brand), desired brand perception (core values of brand), brand architecture (brand portfolio) Positioning: segmentation, target group, position (proposal to the clients vs the clients’ perception) Consistency in brand carriers Embedding the branding Planning and control cycle *SMART targets of brand policy and measuring method

Brands. Some common facts Brands and therefore branding are subjective by nature Many of the world’s best brands are companies and not products. A brand can easily be a service, an organization, or even an aspiration Brands can take many forms and are not just names, nor they restricted to physical products Branding is optimal when the real brand experience is equal to the desired brand experience creating a competitive advantage

POD and POP Nivea became a leader in the skin cream category by creating strong POD on the benefits of gentle, protective and caring. As long as Nivea leveraged its brand equity into categories such as deodorants, shampoos, cosmetics, Nivea found it necessary to establish category points of parity before it could promote its brands points of difference. These were of little value unless consumers discovered that its deodorant was strong enough etc Once points of parity were established, Nivea’s heritage and other associations could be introduced as compelling points of difference.