TWITTER@JOHNGERZEMA
Tuesday, May 18, 2010
TULIPMANIA!
TIME DESTROYS THE SPECULATION OF MEN,BUT IT CONFIRMSNATURE-CICERO, 106-43 BC
Tuesday, May 18, 2010
62% OF THE WORLD’SGDP ($19.5 TRILLION) ISNOW INTANGIBLE
Source: Brand Finance 2007
1950S 1960S 1970S 1980S 1990S 2000S
30
40
50
60
EN
TE
RP
RIS
E V
AL
UE
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Source: Millward Brown Optimor 2007
Copyright John Gerzema/Young & Rubicam37
BRANDS NOW ACCOUNTFOR 30% OF THE VALUE OFTHE S&P 500
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THE 250 MOST VALUABLEGLOBAL BRANDS ARE WORTH$2.197 TRILLION DOLLARS
Copyright John Gerzema/Young & Rubicam38Source: Calculation based on 2007 IMF list on GDP purchase power parity
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TOP 10 MOST VALUABLEBRANDS ARE LARGER THANTHE MARKET CAPOF 70% OF U.S. PUBLICCOMPANIES.
Source: Booz & Co 2007
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THE MARKETS THINK BRANDSARE WORTH MORE THAN THECONSUMERS WHO BUY THEM.
WALL STREETSESTIMATION OF PERCEIVED CONSUMER UTILITY
CONSUMERS ACTUAL PERCEIVED UTILITY
PRICE
COST
CONSUMERS ARE SHORTING BRANDS BASEDON 2,500 BRANDS STUDIED 1993-2008
THE BRAND BUBBLE
VALUE TO CONSUMER
VALUE TO COMPANY
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BRAND ESTEEM ANDREGARD IS DOWN 12%
BRAND AWARENESS HASDECLINED BY 20%
PERCEPTIONS OF BRANDQUALITY HAS ERODED 24%
TRUST IN BRANDS HAS DECLINED BY 50%
Copyright John Gerzema/Young & Rubicam3939
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90% OF 42PRODUCTCATEGORIESLOST BRANDDIFFERENTIATION.-Source: Jack Trout/Kevin Clancy 2002 & Copernicus Market Facts 2007
CONSUMERS ARE50% MORE PRICESENSITIVETHAN 25 YEARSAGO.-Source: Leanord Ladish, Carl MelaHarvard Business Review, 2006
ONLY 7% OFPRIME TIMECOMMERCIALSINCLUDED ADIFFERENTIATEDMESSAGE.-Source: jack Trout/Kevin Clancy 2002
THE PERCENTAGEOF PEOPLE WHOSAY THEY’RELOYAL TO ONEBRAND DECLINEDFROM 40 TO 9%FROMS 2000-2006.-Source: Carlson Marketing Group
BETWEEN 2004-2007, THE TOP 100BRANDS GREW BY16%, BUT BRANDDIFFERENTIATIONDID NOT IMPROVEAMONG 85% OF BRANDS IN BAV.-Source: Interbrand 2004-2007, BAV same period
AMONGINTERBRAND’STOP 100 MOSTVALUABLEBRANDS, 45%WERE ACTUALLYDECLINING IN CONSUMERPERCEPTIONS.-Source: BAV 1993-2007
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THEN CAME ‘THE GREAT RECESSION’
Copyright John Gerzema/Young & Rubicam
Tuesday, May 18, 2010
27 Copyright John Gerzema/Young & Rubicam
SELFISHNESS AND COLLUSION
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FAILURE OF REGULATORS
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Copyright John Gerzema/Young & Rubicam
TAXPAYERS ARE NOWSHAREHOLDERS
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EGREGIOUS AND CRIMINAL BEHAVIOR
Copyright John Gerzema/Young & Rubicam
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WE EXAMINED 15 YEARS OF DATA FROM BRANDASSET VALUATOR®
WORLD’S LARGESTDATABASE OFBRANDS
OVER 500,00CONSUMERS
40,000 BRANDS
215 STUDIES
ACROSS 44 COUNTRIES
QUARTERLY U.S.PANEL OF 15,000+RESPONDENTS
72 DIFFERENTBRAND METRICS
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A ‘TRUST VIRUS’ HAS INFECTED MANY CATEGORIES
41Copyright John Gerzema/Young & Rubicam
Source: BAV USA FY2006, FY2007, Q4 2007, Q4 2008; All Adults
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TRUST IS DESIRABLE, BUT IT HASN’TDIFFERENTIATED
40 Source:BrandAsset Valuator 1993-2007 Copyright John Gerzema/Young & Rubicam
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FUNDAMENTAL SOCIETAL SHIFTS IN VALUES AND BEHAVIORS
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CONSUMERS ARE SHIFTING THEIR CONCEPTS OF ‘NECESSITY’
10 Source: The Atlantic Copyright John Gerzema/Young & Rubicam
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THE 50-20 PARADOX
9 Source: Board of Governors of the Federal Reserve System Copyright John Gerzema/Young & Rubicam
Tuesday, May 18, 2010
Copyright John Gerzema/Young & Rubicam
WE ARE SHIFTING OUR VALUES FROM WHAT WE CARRY, TO HOW WE CARRY OURSELVES
Source: BAV 1997, 2001, 2005, 2008, 2009 FH; attribute correlations to energized differentiation1
Tuesday, May 18, 2010
23 Source: BAV Recession Survey 2009-2010/J.Gerzema
RADICAL SHIFTS IN WHAT MATTERS
Tuesday, May 18, 2010
Copyright John Gerzema/Young & Rubicam
AND CONSUMERS ARE ALIGNING THEIR SPENDING WITH THEIR VALUES
Source: BAV Recession Survey 2009-2010/J.Gerzema2
64.8%“I am happier with a simple, more down to basics lifestyle”
76.1%“I realize that how manypossessions I have doesnot have much to do with how happy I am”
77.9% “Money is the best measureof success”
64.7%“These days I feel more incontrol when I do things myself instead of relying on others”
65.5%“I believe my friends and I can change corporate behavior by supporting companies that do the right thing”
70.9%“I make it a point to buy from companies whose values are similar to my own”
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THE NEW RULES OF ‘POST-CRISIS CONSUMERISM’
Copyright John Gerzema/Young & Rubicam
NEW CULTURAL VALUES
NEW CONSUMER BEHAVIORS
NEW MANAGEMENT PRINCIPLES
Tuesday, May 18, 2010
POST-CRISIS CONSUMERISM RULE #1
CULTURAL VALUE = LIQUID LIFE
Copyright John Gerzema/Young & Rubicam56
CONSUMER STRATEGY = DÉCLASSÉ CONSUMPTIONMANAGEMENT PRINCIPLE = DOLLARS & SENSE
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POST-CRISIS CONSUMERISM RULE #2
CULTURAL VALUE = ETHICS AND FAIR PLAY
CONSUMER STRATEGY = EMPATHY AND RESPECT
MANAGEMENT = VALUE AND PRINCIPLE VALUES
Copyright John Gerzema/Young & Rubicam40
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POST-CRISIS CONSUMERISM RULE #3
CULTURAL VALUE = INDESTRUCTIBLE SPIRIT
CONSUMER STRATEGY = DURABLE LIVING
MANAGEMENT = BRAND THAT PRINCIPLE LASTS
Copyright John Gerzema/Young & Rubicam50
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POST-CRISIS CONSUMERISM RULE #4
CULTURAL VALUE = RETURN TO THE FOLD
CONSUMER STRATEGY = COOPERATIVE CONSUMERISM
MANAGEMENT = COMMUNITY PRINCIPLE ORGANIZER
Copyright John Gerzema/Young & Rubicam59
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POWER HAS SHIFTED FROM INSTITUTION TO INDIVIDUAL
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THERE ARE NO LONGER CONSUMERS, ONLY CUSTOMERS
Photo from Thomas Hawk
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WE ARE MOVING FROMMINDLESS TO MINDFUL CONSUMPTION
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Photo by ShashiBellamkonda
WE ARE ENTERING AN ERA WHERE VALUES NOW DEFINE CONSUMERISM AND COMPETITIVE ADVANTAGE
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A VALUES-LED MARKETPLACE:FROM CONSUMER OF QUANTITY TO PRODUCER OF QUALITY
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TWITTER: @JOHNGERZEMATuesday, May 18, 2010