4A's Transformation 2014 - March 18 - Rosemarie Ryan, co:

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STORY DOING

Building your story into your business

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What’s different today?

Scarce

AbundantAudiencesResource

sTime

ScarceBrands

ChannelsSpecialist

s

Abundant

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In just the last decade

PerceptionsBrand quality -24%Brand loyalty -31%Brand trust -50%Differentiation -90%

BrandsGrowth in number 4x

ChannelsGrowth in number 100x +

Products250K every year

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80% of CEOs believetheir productsare differentiated.8% of customers agree with them.

Source: Bain & Company

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Sources: Nielsen, Young & Rubicam Brand Asset Valuator, Weber Shandwick Planning

New game, new rules

Recommendationsdrive performance more than communications

…and recommendations are based on great product experiences

90% of people trustfriends’ recommendations75% trust anonymousreviews on the Internet50% trust ads

70% of recommendations are driven by product experiences2% are driven by ads

81% Blogs 81% Pinterest73% Twitter 67% Facebook

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A fundamentally different approach is needed

Peopleare nowthe medium

It’s aboutdoing,not saying

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Old world: storytelling

Marketingdepartment

engaged

Engineeringengaged

Media purchased

Digitalagency

engaged

UIdesigned

Product researchbegins

Product planningbegins

Product named

Media agencyalerted

Story defined

Social media strategy

formulated

Finger pointingbegins

Growth opportunityidentified

Launch!

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New world: storydoing

Story

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A companywithout a storyis a companywithout a strategy.Ben Horowitz

9

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Storytelling Sears JC Penney Dillard’s Saks Macy’s

Time Warner News Corporation ViacomComcast CBS

Dunkin Brand Groups Wendy’s Company Burger King Panera Cosi

JP Morgan & Chase Mastercard DiscoverFidelity Visa

Panasonic Samsung ToshibaSony Dell

American Airlines United Continental US Airways Skywest Delta

Hewlett-Packard Cisco OracleSAP CSC

Storydoing Target

Walt Disney

Starbucks

American Express

Apple

Jet Blue

IBM

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Less spent on paid media

Media spent as % of annual revenue

* Does not include Cisco, HP, Sony, Dillard’s

Storydoing

Storytelling

Storytelling companies spend nearly 3x more on media as a percent of revenue than Storydoing companies

Source: Company annual reports, Magnum media spend data Co:collective analysis

2007 2008 2009 2010 20110.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

1.4%

3.9%

1.1%

3.4%

1.0%

2.8%

1.2%

2.9%

1.0%

2.7%

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More social awareness

Number of social media mentions 2008-2011

(millions)

Storydoing companies are mentioned much more in social media conversations

2008 2009 2010 20110

5

10

15

20

25

30

35

40

45

50

0.32.8

0.8

9.9

1.9

27.6

2.2

44.0

Source: Radian6, Co:collective analysis

Storydoing

Storytelling

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Better financial performance

Operating income growth rate(2007-2011)

Storydoing companies outperform storytelling companies in topline sales…

Revenue growth rate(2007-2011)

* Due to negative operating income in 2007 or 2011, we had to calculate 3-yr CAGR for Sears, JCPenney, Dillard’s, Visa, and American Airlines

And in finding better ways to reduce costs and optimize assets

Storytelling Storydoing0%

2%

4%

6%

8%

10%

12%

Source: company annual reports, co:collective analysis

Storytelling Storydoing0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

v v

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Higher valuations Stock price

CAGR(2007-2011)

Storydoing stock price growth demonstrates the value created through their actions

Source: Google Finance, Co:collective analysis

Storytelling Storydoing-6%

-4%

-2%

0%

2%

4%

6%

8%

Storydoing

Storytelling

v

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Thanks!