Investing in Brand Leaders

Warren Buffett is the leader of that new category of investors--a brand investor. Strong brands drive his portfolio.

This savvy investor's strategy reflects a strong penchant for stocks with a verifiable brand identity--those household brands with value not sensitive to swings in the economy and free to increase prices to keep profits up.

Buffett supports companies that stand behind and deliver on their brand promise. And the results...well, check their marketplace position. A well-regarded brand--that intangible corporate asset with business value and economic impact that influences the behavior of customers and stakeholders--delivers in the marketplace.

Buffett owns Coca Cola, for example, the world's #1 brand as ranked by Interbrand in a 2007 Business Week magazine article when Coca Cola was determined to have a brand value of $65 billion. This brand value was determined by taking the company's outstanding stock value and then subtracting the value of its existing physical assets listed its annual report.

Brand investors focus on strong brand leaders that leverage their brand equity, which includes their cadre of loyal customers, name recognition, and their dominance in the field.

While not a perfect and error free model for investing, brand investing fits the patient investor who is comfortable with a long term-investment that uses brand power as a tail wind.

If brand can indeed be valued on a balance sheet and is used as a financial performance indicator that affects investor activity, it behooves any organization to focus on effective management of their brand assets.

Brand valuation can help companies, government agencies, and non-profits refocus their "business" and ensure that marketing and branding efforts do not drain the kitty, but create returns.

While a brand provides a unique long-term competitive advantage and has obvious commercial importance, it is important to mention that current accounting regulations are deficient in the treatment of intangible assets. That is changing as the large number of mergers and acquisitions has forced a second look at how to report brand value on the balance sheet.

Branding in the Federal Sector - AMA Event

Brand development is no longer the sole domain of consumer marketing. Government organizations and non-profits are reaping the benefits of a strong brand, creating awareness for their causes, and moving people to action.

At the June 25 American Marketing Association - DC Chapter luncheon seminar, "Branding in the Federal Sector," Len Johnson and Joanne Giordano, former USAID Deputy Assistant Administrator for Public Affairs will each present a high-profile federal agency branding case study.

DHS - Len will present the process used to create the employer recruitment brand developed under a contract with OPM for the Department of Homeland Security. He will discuss the research and design process used to develop key messages, taglines, and collateral materials to attract new employees to DHS.

USAID - Joanne will discuss challenges and ultimate success of USAID's global branding campaign to brand U.S. foreign assistance as “from the American people.”

Held at the Herman Miller Design Center, 600 14th Street NW, Suite 700, Washington, DC 20005 (Near Metro Center station on the Red, Orange and Blue lines), the luncheon seminar costs $20 for members and $35 for non-members. A $10 surcharge will be added for onsite registrations.

RSVP deadline: Monday, June 23, 2008 C.O.B.
Registration: www.amadc.org or 703-683-4883

Looking Nice - It's Not Enough

In today's crowded brand marketplace, looking nice is not enough. The road to developing collateral—be it web banners, brochures, or print ads—can be a rocky path if not approached in a strategic manner.

Graphic design should not be an afterthought or developed simply based on what "looks nice."

Good design is only truly effective if it's created with a clear understanding of an organization's goals, audience, and unique selling proposition.

Rely on the power of the creative brief. This essential tool outlines the scope and parameters of a project and helps define client expectations. Tactical and goal-oriented questions yield information that pinpoints business objectives and vision as they relate to the design project. They can also help to define exactly what sets your company apart from the competition...your unique selling proposition.

This information serves as the bedrock to successful concept development and strategically created projects that set your company, organization, or agency apart in a meaningful and distinctive way.

Research and a detailed creative brief drove a successful brand alignment at the US Environmental Protection Agency (EPA).

To establish the business case for a project inspired at the grass-roots level, the EPA's Office of Research and Development conducted nearly 350 interviews with scientists, managers, and staff prior to the kick-off of the visual identity project.

At the beginning of this project, JDG performed a communication audit and one-day workshop and focus group with the project Advisory Board comprised of scientists, senior managers, and communication staff representing both ORD and other offices throughout the EPA.

This audit and workshop fed the creative brief for this project. To collect additional real-time feedback and to present status updates, the team held small group feedback sessions and video conferences with key agency stakeholders throughout the process.

Research ensured that ORD and JDG charted the appropriate course and guaranteed a successful implementation and adoption. It yielded insights on current communications vehicles, organizational perceptions, and new potential products.

The increased adoption, cost savings, and strong identity development is helping ORD and EPA build a voice for environmental science that is resonating in the U.S. and worldwide.

The 52-page visual identity guidelines was recognized with a 2007 M Award from the D.C. Chapter of the American Marketing Association and two Silver Inkwell Awards from the International Association of Business Communicators.