onstrategy brand value management
INSURANCE INDUSTRY Brands Posi oning and Reputa on
June, 2017 onstrategy 1 onstrategy ON STRATEGY is a mul disciplinary consul ng firm focused on the crea on and op miza on of the financial value of their customers and partners, and it is en rely focused on quan fying and maximizing the value of tangible and intangible assets as a result of robust and interna onally recognized methodologies which are supported by a deep understanding of the economic, poli cal and social environment, and in par cular the various industries that make up the business environment.
ON STRATEGY was founded in 2009, and it aims to create and manage value for its customers, ac ng in Portugal, Spain, United Kingdom and PALOP countries, developing partnerships with global ins tu ons, leaders, independent, cer fied and disciplines excellence experts. www.onstrategy.com.pt
Our Partners:
onstrategy 2 We provide consul ng services through independent and cer fied tools, analyzing and evalua ng the strategies defined, the management decisions and the financial impact of the same on the brands and on the business performance.
• Brand Due Diligence • Business Valua on • Talent Strength, Leadership and Sustainability • Brand Por olio Analysis • Brand Valua on • Talent Strength vs Brand Strength • Brand Extension Evalua on • Business and Brand Value Analysis • Leadership and Vision • Brand Migra on • Intangible Asset Valua on • Governance and Ethics • Brand Iden ty Analysis • Fair Value Exercise • Ci zenship and Social Responsibility • Brand Architecture Analysis • Intangible Asset Impairment Reviews • Appraisal and Bonus Se ngs • Brand Strength Analysis • Patent Valua on • Coaching and Mentoring • Brand Posi oning Analysis • Asset Transfer Valua on • Communica on and Nego a on • Brand Equity Analysis • Royalty Ra ng Se ng • Culture Alignment • Brand Innova on and Differen a on Analysis • Transfer Pricing Analysis • Workplace Wellbeing • Brand Reputa on and Risk Analysis • Price Posi oning Analysis • Brand Performance Analyisis • Profit and Loss Analysis • Brand Sustainability Analysis • Return on Investment • Touchpoints Analysis • Budget Se ng • Sponsorship Analysis • Franchising and Licensing • Point of Sale Analysis • BrandCo and IPCo Strategy • Customer Experience Analysis • Scenario Modelling and Planning • Percep on Mapping • KPIs Management and Target-se ng • Compe tor Benchmarking • Value Crea on • Market Research onstrategy 3 OTHER ENTERPRISES We have created and developed 3 stakehoders 1% 14% panels, with whom we are 365 days a year online to discuss issues rela ng to over 28 sectors of na onal economic ac vity where we discuss subjects and do studies that support the leaders decision making in order to build +40.000 trust, preference, purchase and DATA BASE recommenda on of the same... CONTACTS
85% CITIZENS
GENERIC PUBLIC ENTERPRISES OTHERS +35.020 ci zens +5.870 board +40 journalists members (large, +20 Opinion Leaders medium, small and +25 Analysts micro companies) +25 University Prof onstrategy 4 The Reputation Economy Reputation Management is a discipline
In a world characterized by the stress of everyday life, the speed with which everything happens, the permanent change in habits and a tudes, the compe veness of financial and human resources, instability and uncertainty, the constant demand for success...
... many of the largest global organiza ons do not meet in full the objec ves set annually, because they do not map and manage in an integrated way their human, physical, intellectual and financial resources, and because they do not map and manage in an integrated manner its stakeholders to poten ate trust, preference, purchase and recommenda on of the same. onstrategy 5 The Reputation Economy Reputation Management is a discipline
Reputa on is known as the set of emo onal and ra onal percep ons that the different stakeholders have about people, organiza ons or places, and that according to them they develop a tudes and behaviors.
Reputa on is the percep on that different stakeholders have on past and present ac ons which influence future expecta ons.
For stakehoders their percep on is their reality... onstrategy 6 The Reputation Economy Reputation Management is a discipline
How much is it worth?
onstrategy 7 The Reputation Economy Reputation Management is a discipline
And this? insurance BRAND
onstrategy 8 The Reputation Economy Reputation Management is a discipline
insurance The brand ma ers, but BRAND today it’s not enough...
Brand Reputa on drives behavior.
onstrategy 9 The Reputation Economy Reputation Management is a discipline
insurance PRICE, BRAND is what you pay...
VALUE, is what you perceive you get.
onstrategy 10 The Reputation Economy Reputation Management is a discipline
Brand Brand Brand Stakeholders Positioning Portfolio & & Reputation Architecture
Stakeholders Brand Brand Equity & Behavior Touchpoints Strength & Risk Drivers
Business Brand Enterprise Economic Value Economic Value Economic Value
onstrategy 11 The Reputation Economy Reputation Management is a discipline
INSURANCE Brand Enterprise INDUSTRY Economic Value 28% Economic Value
onstrategy 12 The Reputation Economy Reputation Management is a discipline Brand Strength
Brand Brand Brand Equity Positioning & Reputation Business Performance
Admiration Trust Preference Market Share Legal Protection Recommendation Communication Share Awareness Products & Services Touchpoints Efficiency Relevance Innovation & Differentiation Numeric Distribution Advantage Workplace & Wellbeing Weighted Distribution Loyalty & Bonding Social Responsibility Volume / Value Growth Governance & Ethics Leadership & Vision Finance Profit & Loss
Trust / Buy / Defend / Recommend / Invest / Work onstrategy 13 The Reputation Economy Reputation Management is a discipline REPUTATION SUPPORTIVE BEHAVIOR 0-39 40-59 60-69 70-79 80-100
TRUST 9% 16% 35% 55% 84%
BUY PRODUCTS AND SERVICES 8% 14% 31% 51% 83%
PREFERENCE 8% 13% 30% 50% 83%
RECOMMEND 7% 13% 30% 50% 82%
SAY SOMETHING POSITIVE 8% 12% 27% 44% 77%
WORK FOR/WITH 10% 17% 31% 47% 73%
INVEST IN 7% 11% 24% 39% 67% onstrategy 14 The Reputation Economy Mapping out the Reputation journey Reputa on impacts Brand Strength, Brand Value and Enterprise Value
onstrategy 15 The Reputation Economy Mapping out the Reputation journey Reputa on impacts Brand Strength, Brand Value and Enterprise Value
onstrategy 16 The Reputation Economy Reputation Management is a discipline
Reputa on and Risk affects a wide range of stakeholders
Customer Staff
Directors Brand Perceptions affect Brand Perceptions affect Potential Middle • Price Customers Managers • Recruitment • Volume • Retention • Repeat • Recommendation • Share of wallet Existing All Other • Morale • Cross sell Customers Employees • Staff costs
Influencers Production e.g. Media Brand External Audiences Financial Audiences
Brand Perceptions affect Brand Perceptions affect Trade • Distribution terms Sales • Interest spread Channels • Channel access • Share price • Strategic alliances • Debt/ Equity ratio • Deal completion Strategic • Risk appetite Debt Allies & • Licensing providers • Cost of borrowing Suppliers • CSR Investors
onstrategy 17 The Reputation Economy The Insurance Industry – Stakeholders Weight
CUSTOMERS & CONSUMERS 20% BROKERS & AGENTS 20% EMPLOYEES 15%
MEDIA & JOURNALISTS 15% COMPETITORS 10%
SUPPLIERS 10% ANALYSTS & OPINION LEADERS 5% AUTHORITIES & REGULATORS 5%
onstrategy 18 POSITIONING Based on 4 dimensions (belonging and acceptance, stability and security, recogni on and influence, risk and dominance) to map and iden fy differences in how different stakeholders see and would like to see the brand with which they interact.
onstrategy 19 ARCHETYPAL POSITIONING The Insurance Industry Aspirational Brand - Dimensions and Attributes
Lealdade, Apoio, Protecção Poder, Dependência Autoridade Atencioso
Pureza, Renovação Verdade, Sabedoria
Estabilidade Segurança Mago Divertimento, Aceitação POSICIONAMENTO Independência Transformação, Espontaneidade Pertença PERSONALIDADE Reconhecimento Visão Bon-Vivant Bon-Vivant
Risco Vitalidade
Atracção, Descoberta, Sensualidade Aventura
Coragem, Rebelde Inovação, Determinação Criatividade Não convencional, Rebeldia onstrategy 20 ARCHETYPAL POSITIONING MOST ASPIRATIONAL The Insurance Industry Aspirational Brand - Dimensions and Attributes POSITIONING
ATENCIOSO DIRIGENTE MESTRE CRIADOR
Protecção Poder Verdade Cria vidade Segurança Estabilidade Respeito Imaginação Estabilidade Controlo Sabedoria Paixão Genuidade Orgulho Confiança Invenção Integridade Ordem Competência Inspiração Hones dade Respeito Inteligência Inovação Lealdade Segurança Liderança Experiência Confiança Organização Visão Modernidade Conforto Protecção Excelência Dinamismo Social Autoridade Objec vidade Empreendimento Coragem Racionalidade Solidez É ca Reconhecimento
onstrategy 21 REPUTATION Reputa on management plays with qualita ve and quan ta ve data to support emo onal and ra onal dimensions and a ributes indicators.
STAKEHOLDERSSTAKEHOLDERS EMOTIONAL PERCEPTIONSEMOTIONAL PERCEPTIONS RATIONAL PERCEPTIONSRATIONAL PERCEPTIONS
CONSUMERSCONSUMERS ADMIRE CUSTOMERSCUSTOMERS PRODUCTS & SERVICESPRODUCTS & SERVICESDIFFERENTIATION INNOVATION & SUPPLIERSSUPPLIERS ADMIREADMIRE EMPLOYEESEMPLOYEES INNOVATION & DIFFERENTIATIONINNOVATION & DIFFERENTIATION
MEDIAMEDIA TRUST COMPETITORSCOMPETITORS TRUSTTRUSTVISION REPUTATION WORKPLACE & WELLBEINGWORKPLACE & WELLBEING OPINION LEADERSOPINION LEADERS LEADERSHIP & SCORE OPINION MAKERSOPINION MAKERS CITIZENSHIP & SOCIAL RESPONSIBILITYCITIZENSHIP & SOCIAL RESPONSIBILITY RECOMMEND SHAREHOLDERSSHAREHOLDERS PREFERPREFER BEHAVIOR INVESTORSINVESTORS BUSINESS & FINANCIAL PERFORMANCEBUSINESS & FINANCIAL PERFORMANCE BEHAVIOR SINDICATESSINDICATES PREFER ASSOCIATIONSASSOCIATIONS RECOMMENDRECOMMEND GOVERNANCE & ETHICSGOVERNANCE & ETHICS REGULATORSREGULATORS POLITICAL AUTHORITIESPOLITICAL AUTHORITIES CITIZENSHIP & SOCIAL LEADERSHIP & VISIONLEADERSHIP & VISION RESPONSIBILITY ECONOMICAL AUTHORITIESECONOMICAL AUTHORITIES
onstrategy 22 REPUTATION DRIVERS The Insurance Industry - Dimensions and Attributes
GENERIC ENTERPRIS BROKERS ANALYSTS SUPPLIERS MEDIA PUBLIC ES AGENTS OPLEADERS
REPUTATION RATIONAL SCORE WEIGHT WEIGHT WEIGHT WEIGHT WEIGHT WEIGHT
High quality products High quality services PRODUCTS & SERVICES Value for money 24% 24% 21% 19% 17% 14% Meets customer needs
Innovative products INNOVATION & Innovative services DIFFERENTIATION First to market 21% 18% 16% 17% 15% 10% Adapts quickly to change
Cares about employees WORKPLACE & Rewards employees fairly WELLBEING Employee wellbeing 8% 8% 7% 8% 11% 6% REPUTATION EMOTIONAL SCORE Offers equal opportunities
ADMIRE Cares about citizens TRUST ATTRIBUTES CITIZENSHIP & SOCIAL Supports good causes PREFER RESPONSIBILITY Environmentally responsible 17% 10% 8% 11% 15% 9% RECOMMEND Positive influence on society
Open and transparent Behaves ethically GOVERNANCE & ETHICS Fair business conduct 14% 14% 15% 15% 14% 21% Meet regulatory requirements
Industry leader Well organized LEADERSHIP & VISION Excellent management 10% 14% 16% 14% 14% 21% Clear vision for its future
Profitable BUSINESS & FINANCIAL Secure and sustainable PERFORMANCE Better results than expected 6% 12% 17% 16% 14% 19% Strong growth prospects
onstrategy 23 IMPACT According to the different stakeholders percep ons about the brands with regard to their posi oning and reputa on, we iden fy their support behavior.
Support Behavior TRUST POSITIONING PREFERENCE PURCHASE RECOMMENDATION SAY SOMETHING POSITIVE WORK FOR / WITH REPUTATION INVEST
onstrategy 24 TOUCHPOINTS ACTIVATION The Insurance Industry
Iden fy the most efficient touchpoints in each industry to generate and / or build posi oning, reputa on, trust, preference, purchase and recommenda on in their brands. 4,5 > EXCELLENT
3,5 > STRONG / ROBUST
2,5 > MODERATE
1,5 > VULNERABLE / WEAK
TOUCHPOINT POSITIONING REPUTATION IMPACT SCORE 1,5 < POOR
OFFICES / SHOPS / POINT OF SALE 4,6 4,6 4,5 4,6
DIGITAL INTERNET / SOCIAL MEDIA 4,6 4,5 4,4 4,5
EMPLOYEE AMBASSADOR PROMOTER 4,5 4,5 4,4 4,5
SPONSORSHIP MUSIC 4,3 4,2 4,2 4,2
SPONSORSHIP SPORTS 4,3 4,2 4,1 4,2
PROPRIETARY EVENTS 4,1 4,1 3,8 4,0
TV PRODUCT PLACEMENT 4,0 3,8 3,7 3,8
TV MAINTHRUST 4,0 3,8 3,5 3,8
PROMOTIONS 3,6 3,4 3,8 3,6
SPONSORSHIP PUBLIC SPOTS 3,7 3,6 3,3 3,5
SPONSORSHIP EDUCATION 3,6 3,5 3,3 3,5
SPONSORSHIP CONFERENCES 3,5 3,5 3,3 3,4
MERCHANDISING / GIFTS 3,4 3,4 3,4 3,4 onstrategy 25 REPUTATION & RISK VALUE The Insurance Industry
Brand Strength 65 GROSS SALES IMPACT ENTERPRISE VALUE IMPACT # Ações 300 000 000 REPUTATION VALUE 684 706 000 € REPUTATION VALUE 1 728 333 024 € Valor Bolsa (30/12/2016) 8,36 € RISK VALUE 231 691 215 € RISK VALUE 578 803 453 € Enterprise Value 2 508 000 000 € Gross Sales 1 000 000 000 €
REPUTATION & RISK VALUE CUSTOMERS 20% BROKERS AGENTS 20% MEDIA 15% OTHERS 45% INVESTOR ANALYST 100%
REP VAL RISK VAL REP VAL RISK VAL REP VAL RISK VAL REP VAL RISK VAL REP VAL RISK VAL (Gross Sales Base) (Gross Sales Base) (Gross Sales Base) (Gross Sales Base) (Enterprise Value Base)
Dimension Weight 22% 21% 19% 19% 17% PRODUCTS & SERVICES Dimension RepScore 60,2 26 488 000 € 9 535 680 € 67,5 28 350 000 € 10 489 500 € 65,3 18 610 500 € 6 885 885 € 69,3 59 251 500 € 20 145 510 € 67,1 285 917 016 € 105 789 296 € Dimension Brand Strength 64,0 63,0 63,0 66,0 63,0
Dimension Weight 21% 18% 17% 17% 15% INNOVATION & Dimension RepScore 64,8 27 216 000 € 8 709 120 € 64,8 23 328 000 € 8 864 640 € 67,5 17 212 500 € 6 196 500 € 69,8 53 397 000 € 18 154 980 € 65,3 245 809 080 € 92 424 214 € DIFFERENTIATION Dimension Brand Strength 68,0 62,0 64,0 66,0 62,4
Dimension Weight 8% 8% 8% 8% 8% WORKPLACE & Dimension RepScore 59,4 9 504 000 € 4 086 720 € 66,8 10 688 000 € 4 275 200 € 63,6 7 632 000 € 3 358 080 € 67,2 24 192 000 € 10 160 640 € 66,2 132 743 424 € 54 159 317 € WELLBEING Dimension Brand Strength 57,0 60,0 56,0 58,0 59,2
Dimension Weight 15% 8% 13% 11% 8% CITIZENSHIP & SOCIAL Dimension RepScore 57,2 17 160 000 € 7 550 400 € 59,8 9 568 000 € 3 827 200 € 64,2 12 519 000 € 4 757 220 € 70,2 34 749 000 € 14 594 580 € 60,7 121 748 352 € 48 212 347 € RESPONSIBILITY Dimension Brand Strength 56,0 60,0 62,0 58,0 60,4
Dimension Weight 14% 16% 15% 15% 17% GOVERNANCE & ETHICS Dimension RepScore 65,5 18 340 000 € 5 135 200 € 71,0 22 720 000 € 5 907 200 € 73,0 16 425 000 € 4 106 250 € 69,3 46 777 500 € 15 904 350 € 71,4 304 421 040 € 78 540 628 € Dimension Brand Strength 72,0 74,0 75,0 66,0 74,2
Dimension Weight 10% 15% 14% 14% 17% LEADERSHIP & VISION Dimension RepScore 67,0 13 400 000 € 3 886 000 € 71,2 21 360 000 € 6 835 200 € 73,6 15 456 000 € 4 173 120 € 70,8 44 604 000 € 11 597 040 € 71,7 305 614 848 € 94 740 603 € Dimension Brand Strength 71,0 68,0 73,0 74,0 69,0
Dimension Weight 10% 14% 14% 16% 18% BUSINESS & FINANCIAL Dimension RepScore 69,8 13 960 000 € 4 606 800 € 73,0 20 440 000 € 6 540 800 € 75,8 15 918 000 € 4 775 400 € 77,0 55 440 000 € 16 632 000 € 73,6 332 079 264 € 104 937 047 € PERFORMANCE Dimension Brand Strength 67,0 68,0 70,0 70,0 68,4
126 068 000 € 43 509 920 € 136 454 000 € 46 739 740 € 103 773 000 € 34 252 455 € 318 411 000 € 107 189 100 € 1 728 333 024 € 578 803 453 €
onstrategy 26 Thank You
Pedro Tavares, Partner and CEO
onstrategy (Brand Finance | Corporate Excellence) Mail: [email protected] Mobile: +351 91 938 3036
Avenida Engº Duarte Pacheco Amoreiras Torre 2, Piso 9, Sala 8 1070-102 Lisboa, Portugal
onstrategy is a consultancy firm, partner of Brand Finance and Corporate Excellence, helping companies to manage and improve their business and brands results.
www.onstrategy.com.pt onstrategy 27