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It’s Incredible How Much Reputation Matters For Brands
Source: http://www.businessinsider.com/its-incredible-how-much-reputation-matters-for-brands-2012-12
In a time where trust in companies is at an all time low, it’s more valuable than ever. That’s not a moral or values based statement, it’s about the impact on the bottom line.
This chart, from a presentation at McKinsey’s Chief Marketing And Sales Officer Forum, shows how much investors and consumers reward an outstanding reputation:
Despite the incredible value of reputation, according to McKinsey’s Betsy Holden, companies aren’t taking full advantage of their opportunities to increase it:
One thing they can do to improve their reputation is bolster their social media presence. They can publish material related to the above, like information about transparency or environmental efforts, and can use it as a customer service tool. Being accessible and accountable increases trust.
That route may be particularly effective because social media is trusted by consumers at a rapidly increasing rate:
NOW READ: McK insey Predicts The War For Talent Will Go Nuts By 2020
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The Best And Worst Industries At Going Digital
Source: http://www.businessinsider.com/these-industries-wont-touch-digital-2012-11
Whether it’s because of regulation, a conservative outlook, or simply because they don’t see the benefit, some industries have been incredibly slow to embrace the digital age.
However, even in the industries where it’s not widely adopted, making significant investments in digital technology and integrating it into an organization has a significant positive impact on the bottom line. Capgemeni Consulting estimates that ‘digital beginners,’ those companies who have barely touched digital technology are 24 percent less profitable than average.
Capgemeni’s research divides companies into four categories based on digital adoption:
“‘Beginners’ have barely started, usually because they’re unaware of the opportunities, ‘Fashionistas’ adopt the newest or sexiest digital innovations, but without a cohesive strategy or eye to maximizing business value, ‘Digital Conservatives’ have a cohesive vision, but are slow to invest in new technology, and finally, the ‘Digirati,’ who both invest in digital and integrate it with their whole organization.”
Here’s where major industries fit on the spectrum of going digital, from high technology at the top, to the pharmaceutical industry way at the bottom:
Read the full report here
NOW READ: The 10 Most Innovative Companies In The World
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The 20 Biggest Corporate R&D Spenders In The World
Source: http://www.businessinsider.com/biggest-research-and-development-spender-2012-10
Every year management consulting Booz & Co. puts together a comprehensive report on the world’s 1000 biggest spenders on research and development, and the connection between that spending and performance.
Booz & Co. senior partner Barry Jaruzelski told us that “in the US, Europe, and Japan that’s fairly easy to put together, but to do it on every market, to get South Africa, China, India, Brazil, Russia, Israel, etc. takes a fair amount more effort.”
There’s an incredible amount of money in R&D. The top 20 companies alone spent $153.6 billion last year, which is more than a quarter of the total $603 billion by the world’s 1000 biggest spenders.
Here are last year’s top 20 spenders:
Read the full report here
NOW READ: The 10 Most Innovative Companies In The World
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Lego For Girls Is A Gigantic Success Despite Huge Controversy
Source: http://www.businessinsider.com/lego-for-girls-2012-8
COPENHAGEN, Denmark (AP) — Danish toy maker Lego says a new series it created specifically for girls has proved popular despite being criticized for fueling gender stereotypes — and has made first-half profit jump 35 percent.
Net profit rose to 2 billion kroner ($336 million), from 1.48 billion kroner the same period last year. The family-owned company says sales rose 24 percent to 9.1 billion kroner.
The company, based in western Denmark, sold twice as many LEGO Friends sets as expected during the first six months of the year.
Chief Executive Joergen Vig Knudstorp said Friday that “sales (of the new sets) have been quite astonishing.”
When Lego Friends was launched earlier this year, it was met with petitions demanding to put an end to the sexualization of women and girls in media.
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There’s A Valuable Lesson About Innovation You Can Learn By Flipping Burgers At McDonald’s
Source: http://www.businessinsider.com/what-a-campbells-soup-exec-learned-from-working-at-mcdonalds-2012-7
Lydia Dishman at Fast Company interviewed Darren Serrao, VP of beverages and breakthrough innovation at Campbell’s Soup, and he revealed an interesting thing he learned on the job well before he was a big-time executive.
He was a teenager flipping burgers at McDonald’s. There, he learned about the value of a process-driven company.
Serrao says he learned the value of a “disciplined, repeatable process” thanks to McDonald’s “operations machine” which is timed down to the second.
Everything in a McDonald’s is a set process. All the tasks behind the counter are logically related, so you as long as everyone does their specific jobs, things get done efficiently. That’s what allows McDonald’s to get the food to its customers so quickly.
And all of this can be applied to innovation. Under CEO Denise Morrison, Serrao has independent innovation teams working on projects for Campbell’s. The structure lets them move more quickly.
“From an innovation standpoint it’s highly relevant, because you are able to move through the process time and again no matter who you are working with,” he told Fast Company.
NOW SEE: 27 Brilliant Insights About Creativity >
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This Chart Shows Why Best Buy Should Be Particularly Terrified Of ‘Showrooming’ (BBY)
Source: http://www.businessinsider.com/showroomings-consumer-electronics-best-buy-2012-6
Brick-and-mortar retailers are scared of being reduced to a “showroom” where shoppers go to try items out before going online to make the final purchase. Some feel that the showrooming panic is totally overblown, but there’s one segment of retailers that’s particularly affected.
Consumer electronics retailers are experiencing more showrooming than any other category by far.
More than 6-in-10 customers who have used showrooming bought an item online in that category, according to a slide from comScore’s “State of the Internet in Q1 2012” presentation by senior director Tiffany Walker. No other product category came anywhere close to that number.
As the biggest consumer electronics big box store out there, Best Buy needs to do something about this fast.
Acting CEO Mike Mikan said as much at his company’s recent annual meeting. “[The customer’s] needs have changed,” he said. “We, unfortunately, have not.”
Here’s the chart:
NOW SEE: The Secrets Of The Apple Store’s Success >
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VC Explains Why A Founder’s Initial Idea Often Doesn’t Matter At All
Investor Laura Sachar says she can spot entrepreneurs who have ideas, but don’t know how to execute them.
Sachar, general partner and founder of StarVest Partners, has been involved in early stage companies since the mid-’90s. She shared her insights on a panel at Business Insider’s Startup 2012 conference:
Sachar focuses on people in the early stage, because it’s about the belief that the person can figure out what to do with the business to make it successful.
“Often, the initial idea is not how the company succeeds and drives revenue,” says Sachar. “Focusing on the people first, and a belief that they can develop attractive ideas and move from there, makes sense.”
There needs to be a clear path that shows that the person can turn the idea into something real.
“If you can’t execute, you don’t have a company,” she says. “A lot of people have ideas.”
Nowadays, companies don’t need as much money to get momentum. She suggests that you take more money than you think you need (if it’s available), because so many investors are looking for the companies that are gaining tons of velocity in the early going. By having that money, you have more resources to pull that off.
NOW SEE: 10 VCs And Founders Give Their Best Advice For Raising Money >
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These Are The Brands Taking Over America
Source: http://247wallst.com/2012/05/14/americas-hottest-brands/
24/7 Wall St. asked CoreBrand to identify America’s hottest brands. We wanted to know the biggest brands that were the best known and most well regarded.
Generally, most brand analysis done by the business press is biased toward dollar valuations and contributions to corporate earnings.
Obviously, financial success is one factor that demonstrates how well a brand is regarded by consumers.
But brand valuation is a financial view, and not one that relies entirely on consumer perception. Based on analysis performed by brand expert company CoreBrand, 24/7 Wall St. wanted to see brands through the eyes of the consumer.
For this reason, Corebrand examined brands from the standpoint of favorability and familiarity.
One of the most notable results of the analysis is the high ranking of brands not normally present on most highly valued brands list. When they are evaluated through the consumers’ eyes, however, brands that belong to companies that are struggling financially can still be high on a consumer-perception weighted list. These brands, naturally, are used by a large number of people. More than that, the consumer interaction with the product and services associated with the brand is positive.
Read the rest of the story at 24/7 Wall St >
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PepsiCo Discovers Consumers Will Pay More For Orange Juice With Less Juice (PEP)
This post originally appeared at Newser.
PepsiCo’s plan to increase profit margins for its Tropicana orange juice is simple: Just add water. Apparently some consumers are already doing that on their own, in order to get a less-thick or lower-calorie beverage. “They themselves add water before drinking OJ,” a PepsiCo exec tells Bloomberg. “So why not add the water ourselves and charge for it?” Tropicana lost market share to Coca-Cola Co.’s Minute Maid and Simply Orange brands after PepsiCo repackaged its juice three years ago.
Now, instead of continuing to compete in the 100% juice category, PepsiCo will focus on different products with higher profit margins. One such product—Trop50, which contains 42% orange juice and uses a low-calorie stevia-based sweetener—has already been successful. Says the exec, “We have lost perspective here on the primary reason we are in business, which is to make money.” Consumers will always know what they’re getting, thanks to strict FDA juice labeling guidelines.
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See Also:
- Pepsi Learns The Hard Way That Indians Don’t Like Diet Soda
- Check Out Pepsi’s Latest Coke-Bashing Ad Campaign
- The REAL Differences Between Coke And Pepsi People
The Most Overpaid CEOs In America (OXY)
Source: http://www.businessinsider.com/obermatt-overpaid-underpaid-ceos-america-2012-2
Executive compensation is one of the most ironic hotly-debated topics out there. It’s hotly debated because people often complain that CEOs are overpaid. It’s ironic because most of the people who complain about excessive pay have the capacity to do something, yet they do nothing.
You see, every year shareholders of a company are mailed a Form DEF 14A, also known as the proxy statement. In the proxy are the details of the company’s executive compensation plans, and they are typically written plain English. If shareholders don’t like the plan, they vote it down.
But many shareholders will receive the proxy in the mail and throw it right into the trash. And by default, they vote in favor of whatever plan is recommended by the Board.
Anyways, research firm Obermatt (via The Economist) computed the excess pay of CEOs of the S&P 100 companies. Excess pay is calculated as deserved pay less actual pay. Deserved pay is measured considering earnings growth and shareholder return and the compensation practices of peer group companies.
On the top of the “Most Overpaid” list is Occidental Petroleum’s Ray Irani. Irani is widely considered the poster child of excessive pay.
On the bottom are fan favorites Steve Jobs and Warren Buffett.
Here’s a chart of Obermatt’s rankings courtesy of The Economist:
SEE ALSO: These CEOs Were Paid $100+ Million To Quit >
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See Also:
- INFOGRAPHIC: It’s Not Easy To Be A CIO
- Apple Might Lose A $1.6 Billion Lawsuit For Using The Word ‘iPad’
- DOUG KASS: SELL EVERYTHING! EVEN ROUBINI IS BULLISH!
Digital Consigliere
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
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