Brands in a New Age of Responsibility

Jez Frampton Interbrand

Jez Frampton Global Chief Executive Interbrand
Brands in a New Age of Responsibility

52%
of green themed issues of magazines sell significantly less than standard issues.
Source: Mediamark Research & Intelligence, 2009

Sustainability is a “must have”
Regulation Responsibility Accountability

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“What is required of us now is a new era of responsibility.”

Inaugural address of President Barack Obama; January 2009 7 | Interbrand and sustainability

we
from me to
8 | Interbrand and sustainability

Social pressure is growing

Damned if you do, damned if you don’t

Change

Increased effort but…
More companies now report sustainability data but to what effect?

37%
2005

74%
2008

Source: KPMG, October 2008

Lack of leadership
The few consumers who do identify leaders tend to recall the same brands.

26%
2007

35%
2008

Source: Consumers, Brands and Climate Change; The Climate Group, 2008

It’s on the agenda but…
In most organizations, sustainability is on the C-suite agenda.

42.4%
CEO

18.5%
Board

Source: The Vandiver Group study; May 2008

Are employees ready?
Only 1 in 10 employees feel prepared to tackle the issue head on.

Source: Corporate sustainability employee study, Fresh Marketing, 2008

95%

of shoppers say they would consider buying a green product.

22%

of shoppers purchased green products.

Source: Deloitte/GMA Green Shopper Study, 2009

Crafting a new understanding
Sustainability as green noise Sustainability as a differentiator Sustainability as a table stake

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Brand

1

Segmentation

2Financial
Analysis

Importance of Brand

3

Competitive Benchmark

4

Intangible Earnings (EVA)

Role of Branding Index

Brand Strength Score

Brand Earnings

Brand Discount Rate

Brand Value

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Influences customer’s choice Role of Brand
Higher level of future earnings

Value
A key competitive asset Brand Strength
Higher security of future earnings

Doing well by doing good

Brands have the power to change the world.

The medium is the message.
Toms gives back what it takes.

Sustainable from the outset.
Method offers a new standard practice and model for its industry.

Core principles realized.
7 of Aveda’s products are completely sustainable from cradle to cradle.

Greenpeace approved.
60% to 80% of Nokia’s products can be recycled.

Reduce, remove, and recycle.
3M recognized and took action to restore natural resources.

Changing negative associations.
Xerox outperforms competitors in sustainable actions.

The way forward:
1.
Set the highest standard for your industry

2.
Measure the impact of your actions

3.
Communicate your platform appropriately

Brands will change the world.

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