How to build a brand that will connect with customers and grow your business
In BRANDING IT 3.0 global branding expert Marco Casanova uses best practice examples from more than 20 of today’s leading corporations, including Amazon, Starbucks, and Ritz Carlton, and shows how state-of-the-art brand management can be achieved.
You will learn:
- How branding drives the value of today’s businesses and is increasingly associated with impressive corporate gains
- The 10 “Cs of Branding” that can dramatically improve the bottom line
- The key factors needed to successfully brand any new product and new product launch
BRANDING IT 3.0 is the essential guide on building a successful world-class brand.
Please find below an excerpt from “Branding It 3.0: Business Performance through Excellence in Brand Management”.
Branding drives business performance!
The value of a company is strongly influenced by the value of its brands
Empirical data proves that the value of the brand as a so called intangible asset is responsible for more than 50% of the value of the entire company. This is true for B2C and as well for B2B brands.
Brand relationship becomes the competitive advantage
To be successful a brand must be seen by stakeholders (customers, shareholders, employees, talents, suppliers, opinion leaders, media and others more) as something that has a purpose, adding value in their lives (rationally and/or emotionally). By doing so, stakeholders engage in a positive way with the brand, the company, its employees and its products and services, communicating and behaving accordingly and also influencing others positively. This kind of brand relationship becomes the competitive advantage. It becomes the core competence of success.
A strong Brand turns stakeholders into advocates
Advocates are powerful influencers by
- bringing third party credibility to messages
- being financially supportive
- expert influence on other
- defending in times of crisis
The financial metric EV / EBITDA ratio
EV / EBITDA has historically been the best performing metric and outperforms many investor favorites such as price-to-earnings, free-cash-flow to total enterprise value, and book-to-market. EV / EBITDA is the enterprise value of a company divided by its earnings before interest, taxes, depreciation and amortization. EV / EBITDA answers the question «What is a company being valued per each dollar of EBITDA?».
Competitive comparison of different EV / EBITDA ratio
The competitive comparison on the EV / EBITDA ratio shows that the stronger the brand purpose is perceived the stronger the company is valued. The brand purpose of Apple and Google are not so clear anymore, somehow a little bit outdated and as well not really unique anymore. While Facebook and Amazon are doing fine, the real stars are Netflix and Tesla with their very much appealing brand purposes!
The more inspiring and relevant the brand purpose is perceived by the stakeholders, the higher the EV / EBITDA ratio!
The crucial question is how has the brand purpose to be, to be compelling enough?