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How are our brands doing,reduxFebruary 2010

Last year we took a look at how U.S.brands were faring early in the recessionIt didn’t look goodA year later, what’s going on? How healthyare our brands?Page 2© 2009 Landor Associates

Brand Health is one indicator of who willcome out the other endwith strength to spare or gasping for breathPage 3© 2009 Landor Associates

Brand pundits continue to rival politicalpundits on the noise-o-meterPage 4© 2009 Landor Associates

Who’s fault is the recession:236,000 results in April 2009345,000 in January 2010Page 5© 2009 Landor Associates

Brands and the recession: 1,760,000results in April 20094,230,000 in January 2010Page 6© 2009 Landor Associates

Data abounds“When money is tighter, we apparentlydrink more. At home. And alone. BrownForman, reported that earnings per shareincreased 13% and operating incomeincreased 4% for fiscal 2009 secondquarter. In other words, they’re makingmoney even in a recession.”wideawakeinwonderland, writerPage 7© 2009 Landor Associates

But no one agrees“It's a complete myth that people drinkmore during recessions. In fact, just theopposite is true.”David Ozgo, Distilled Spirits Council chief economistPage 8© 2009 Landor Associates

So to find out what really is happening tobrandsWe dipped into…Page 9© 2009 Landor Associates

BrandAsset Valuator®Over 750,000 consumers globally50,000 brands – consumer and b2b@3000 brands in US17 years45+ countriesBrand health, imagery/personalityUsage, consideration, loyaltyPage 10© 2009 Landor Associates

BAV Brand Measurement modelDIFFERENTIATIONRelates to MarginRELEVANCERelates to Consideration/ UsageESTEEMRelates to LoyaltyKNOWLEDGERelates to experienceBrand StrengthLeading IndicatorBrand StatureLagging IndicatorPage 11© 2009 Landor Associates

DifferentiationRelevanceEsteemKnowledgeBrandHealthScoreNote: diagnosing and recommending strategy requires anuanced analysis of pillars, patterns, personality, etcPage 12© 2009 Landor Associates

67% of you logged in today felt that ourbrands are weakeningPage 13© 2009 Landor Associates

And you are rightPage 14© 2009 Landor Associates

44% grew in brand health and 56% percentdeclined(2007 – 2009)Page 15© 2009 Landor Associates

On the whole, brands didn’t do so well –Brand Health scores decreased by 3%(2007 – 2009)Not a disasterPage 16© 2009 Landor Associates

But some are doing just finePage 17© 2009 Landor Associates

It helps to be digital, give something backor so do some goodTraditional CPG, CES, Services, TV…less soPage 18© 2009 Landor Associates

The biggest winners4 digital brandsFacebook, Explorer, YouTube, craigslist2 not-for-profitsHabitat for Humanity, American Red Cross2 rewards programsBofA WorldPoints, SPGand several Google sub-brandsNote: in percentage change in brand healthPage 19© 2009 Landor Associates

How about the recession poster children?Page 20© 2009 Landor Associates

Necessary disclaimers1. Brand strength is more than the sum of fourmeasures (duh)2. Smaller brands show more dramaticpercentage increases and decreases (duh)3. We don’t have all the why’s4. Only showing changes greater than 10%...ifyour brand isn’t here, probably showed asmaller changePage 21© 2009 Landor Associates

When the tsunami hits, the small (literally)survivePage 22© 2009 Landor Associates

Auto winners and losersMini CooperMazdaKiaScion-10-10-11-12-13-14-14-15-16-16-16-16-17-17-18-21-21-21-22-23-25-27-28-29-29121110Aston MartinAlfa RomeoHummerRolls-RoyceBMWMercedes-BenzChryslerFerrariLincolnBuickGMCCadillacAcuraGeneral MotorsHyundaiJaguarAudiDodgeFiatMercurySAABJeepPontiacInfinitiLand Rover33Only brands with changesof 10% or greater shownPage 23© 2009 Landor Associates

Overall changes in the image of the autocategoryIncreasedno consistent patternof increasesDecreased**high quality**upper classstylish/trendyprestigioushigh performancereliablePage 24© 2009 Landor Associates

Bank winners and losersBanco PopularHSBC-13-15-17-201211WachoviaKey BankMellonCitibank-27Washington MutualOnly brands with changesof 10% or greater shownPage 25© 2009 Landor Associates

Overall changes in the image of the BankCategory changesIncreasedarrogantdistinctiveDecreasedtrustworthycares about customersgaining in popularityprogressiveworth paying morePage 26© 2009 Landor Associates

Credit card winners and losers-43-37-38-12-15-16-17-21-21-27-29VisaMasterCardCiti CardsDiscover CardAmerican ExpressDiners ClubBank of America Credit CardsSears Credit CardCapital OneCiti MasterCardMBNAOnly brands with changesof 10% or greater shownPage 27© 2009 Landor Associates

Overall changes in the image of the creditcard categoryIncreasedarrogantDecreasedtrustworthyreliableleaderqualityperformanceintelligencecaringPage 28© 2009 Landor Associates

So who’s doing well in the recession?Page 29© 2009 Landor Associates

Many “winners” showed increases on BAVattributessocialvisionaryleaderstraightforward(less so… helpful, value, reliable)Page 30© 2009 Landor Associates

Winning categoriesCategoryPercent change2007 to full year 20091 Extreme Sports Clothing & Equipment 32%2 Rewards Programs 27%3 Internet Tools and Services 25%4 Video Games 14%5 Airlines 13%6 Pasta 10%7 Spirits & Liquors 10%8 Charity & Non-Profit Organizations 9%9 Gasoline/Petroleum 9%10 Meats Poultry & Cold Cuts 8%Note: No losing brands only in Extreme Sports Clothing & EquipmentPage 31© 2009 Landor Associates

And who’s doing poorlyPage 32© 2009 Landor Associates

Many “losers” showed decreases on BAVattributeshigh qualityperformancetrustworthyvaluedistinctivePage 33© 2009 Landor Associates

Losing categoriesCategoryPercent change2007 to full year 20091 Credit Cards -19%2 Financial Services -15%3 Yogurts -14%4 Chewing Gum Mints & Breath Fresheners -14%5 Paper Goods -13%6 Insurance Companies -12%7 Automobiles -12%8 Sport & Leisure Shoes -10%910Frozen and Ready to Eat Meals -10%Condiments (Ketchup, Mustard, etc) -10%Page 34© 2009 Landor Associates

So what have we learned1. Our brandscape is weakening2. It’s good to be digital3. Doing good is in, as is giving somethingback4. Don’t mess with the public: as goes yourbusiness so seems to go your brandPage 35© 2009 Landor Associates

And if you want to win think about …1. Being out there, being social andstraightforward2. Standing up as a visionary leaderPage 36© 2009 Landor Associates

And don’t …1. Lose the consumers’ belief in yourquality and performance2. Lose the public’s trust3. Be uncaring4. Be arrogantPage 37© 2009 Landor Associates

If you are interested in specific brands orcategories in or outside the US…Susan.Nelson@landor.comAll other new business inquiries:Britt.Dionne@landor.comPage 38© 2009 Landor Associates

Thanks