Main Week: 1 2 3 4 5 6 7 8 9 10

video storytelling ©2008 ralph budd

Video Notes with time markers

01.02  Bubbles in the past,  1643 tulip bulb craze 

02.40  Brand bubble is speculation like bubbles of past

03.07  His argument:  Wall Street is overvaluing brands relative to how main street values the brand.

keep in mind the role of creativity,  the solution to restoring value is CREATIVITY

03.34  They analyzed 2500 brands 

04.05  62% of GNP is intangible

04.38  Brand value now accounts for 30% of value of S&P 500.  It varies within industry and sector.   Prada's brand is 83% of it's company value.  Nike is 72%.  Brand value as per cent of total value has grown from 5% in late 80's to 30% today.

05.47  Brands are worth $4 trillion in S&P Market cap.  Top 250 brands are worth $2.197 trillion. 

06.11  Top 10 most valuable brands are larger than the market capitalization of 70% of U.S. Public Companies

06.30  Brand Asset Valuator  BAV  have invested over $100 million in research since 1963.   Research is to assess the CONSUMER'S perception of brands:

• world's largest database of brands

• 40k brands

• panel of 15k respondents

• 500k consumers across 44 countries

• 72 different brand metrics

This info is available for free at:     www.thebrandbubble.com/explore/

08.00  they measure brands for strength and energy

09.30  brands are not static.  they're constantly in motion.  they measure brands as an air traffic controller would.

10.18  while brand value has increased by over 80% in three decades...

•  brand awareness has declined by 20%

•  perceptions of brand quality has eroded 24%

•  trust in brands had declined by a staggering 50%

11.12  Factoids...

•  brand esteem and regard is down 12%

•  consumers are 50% more price sensitive than 25 years ago

•  only 7% of prime time commercials included a differentiated message

•  90% of 42 product categories lost brand differentiation

•  2004-07 top 100 brands grew by 16% and $160bil even though 85% of brands were stagnant or eroding in brand differentiation

•  among interbrand's most valuable brands, 45% were acually declining in consumer perceptions

12.58  What are the forces behind the decline in brand perception

•  Excess capacity  (too much stuff)

58k new products every year

30k items in supermarket

•  Lack of creativity

14.25  brands that were truly considered "special" by consumers were declining in number.

14.42  the longer a brand is out there the less it feels special.  you need creativity to keep it fresh.

•  Loss of trust

15.50  people are going to each other for info (gizmodo reviews).  collaboration, wiki's

16.10   "consumerland" was created by  broadband.   BB penetration is up to 67% from 33% in last three years.  This is why youtube and facebook are possible.

17.00  more people are tuning into SNL through youtube than broadcast television. 

18.25  power has shifted to the consumer so brands decay at a faster rate.

19.20  brands have no where to hide.   brand managing is more brand maintenance.  in today's environment you can't control a brand anymore

19.50   think about brand creativity in a different way.  it's not enough for a brand to be different today, it has to keep being different.

20.35  the brands outperforming others had "energized differentiation"

These are the three components of ENERGY

• vision

• invention

• dynamism

VISION

21.20  Vision is....    thought leadership, corporate culture, e.g. Subway, Charismatic person (Steve Jobs), 

22.08  clip->  nicholas negroponte -  one laptop per child.   OLPC  laptopgiving.org

INVENTION  

tangible product and service experiences.  how does the product walk or talk.

24.26 customer service call center for LG.  that's a tangible customer experience

free bicycles in Paris

DYNAMISM

26.17  market place conversations,  new ways to communicated with consumer

26.40  clip->  Absolut "Be Kanye"

27.52  clip->  "You Have the Power"  climate change

29.56  the higher you go on their measurements the more loyalty and pricing power you get

30.20  he's making an economic argument for creativity.  Creativity matters.  Brands with energized differentiation outperform the S&P 500 over varying market conditions.

you need creativity in your brand to drive your business.

30.57  there are fewer "important" brands.  Wall street keeps ratcheting up the value of brands but there are fewer and fewer good brands.

31.40  the five laws of energy

1)  Law of Averages - creativity spreads out risk

32.12 "creativity" sounds dangerous but the best companies are the most creative.  (xerox, GE)

2)  Law of Openness -  Brands don't control they enhance and extend.

33.23  if you're not collaborating with consumers you're going to get blogged to death

3) Law of Direction -  a brand is not a place it's a direcition

33.51  think about velocity not size

04)  Law of Immunity - brands with remarkable marketing access access remarkable privileges

05)  Law of Reflex - Tactics are strategy and strategy is tactics

best placed strategy is infused with tactics.

active listening, active response to keep brand on the edge.

35.51  example->  Eric Boker    Brand dissection  

36.06  example->  muxtape

36.20  example->  design your own tequila bottle

36.38  example->  pandora

36.52  clip-->   mentos intern Trevor    being to interact with the brand

40.32  example->  duncan sheif (?)  remix the artist's music

41.03  example->  Geico

41.23  example->  We Feel Fine

41.37  clip->  Axe

Law of Immunity - brands with remarkable marketing can access special places

42.49  clip->  obama girl

46.07  example->  nike + apple

46.30  what we need to think about...

brand value is being hollowed out.  it's not a brand problem, it's a business problem.  The best CEO's treat the brand as their's,  they get involved in the marketing.  e.g. Steve Jobs

Marketing and creativity is necessary to create shareholder value. 

John Gerzema

Chief Insight Architect,  Y&R

The Brand Bubble  48:09

recorded october  21, 2008

Short Version  5:32

Full Version  48:09