SlideShare a Scribd company logo
1 of 55
Download to read offline
Founder Brands
                      From Original Vision to
                      Sustained Value
Davis Brand Capital
Clarity.              September 2012
What do some of the world’s
most valuable and well-known brands
         have in common?



                            Copyright © 2012 Davis Brand Capital   2
3



Copyright © 2012 Davis Brand Capital
They are all founder brands.




                        Copyright © 2012 Davis Brand Capital   4
What does this mean?




                   Copyright © 2012 Davis Brand Capital   5
A founder brand is most easily defined as
a brand where a founder or founding
family exercises significant influence over
the business.



Source: International Finance Corporation, “Corporate Governance,” 2007, p. 1                                    6



                                                                                Copyright © 2012 Davis Brand Capital
That “influence” is manifested through
ownership, effective voting control,
management or history.




Source: International Finance Corporation, “Corporate Governance,” 2007, p. 1                                    7



                                                                                Copyright © 2012 Davis Brand Capital
Why do founder brands
  matter so much?




                    Copyright © 2012 Davis Brand Capital   8
Founder brands make enormous
contributions to the U.S. economy.




                            Copyright © 2012 Davis Brand Capital   9
35 80+
  more than 35 percent of Fortune 500
companies are family owned or controlled
                                                          60                                 244
 Source: Conway Center for Family Business, “Family Business Facts, Figures and Fun,” 2012                                    10



                                                                                             Copyright © 2012 Davis Brand Capital
35 80+
eighty to 90 percent of all U.S. businesses

60   are family owned or controlled
                                                       244
 Source: Conway Center for Family Business, “Family Business Facts, Figures and Fun,” 2012                                     11



                                                                                             Copyright © 2012 Davis Brand Capital
60                                 244
sixty percent of all public companies in
      the U.S. are family controlled

Source: Conway Center for Family Business, “Family Business Facts, Figures and Fun,” 2012                                    12



                                                                                            Copyright © 2012 Davis Brand Capital
60                               244
      the founder brands* on the
2011 Davis Brand Capital 25 had a market
 capitalization exceeding $244 billion…
     * Apple, Microsoft, Google, Toyota Motor Corporation, Volkswagen, Samsung Electronics, Wal-Mart                               13



                                                                                                  Copyright © 2012 Davis Brand Capital
… and outperformed the S&P by 13.53 percent in 2011
     DBC25 (+9.32%)                  FOUNDER BRANDS (+13.53%)                               DOW JONES (+5.53%)                        S&P 500 (0.00%)                   NASDAQ (-1.80%)

                                                                                                                                                                                                       14%
                                                                                                                                                                                                       12%
                                                                                                                                                                                                       10%
                                                                                                                                                                                                         8%
                                                                                                                                                                                                         6%
                                                                                                                                                                                                         4%
                                                                                                                                                                                                         2%
                                                                                                                                                                                                         0%
                                                                                                                                                                                                        -2%
                                                                                                                                                                                                        -4%
                                                                                                                                                                                                        -6%
                                                                                                                                                                                                        -8%
                                                                                                                                                                                                      - 10 %
                                                                                                                                                                                                      - 12 %
                                                                                                                                                                                                      -14%
JAN. 2011                                   ARPIL 2011                                       JULY 2011                                       OCT 2011                                         DEC 2011




    JANUARY 9, 2011 – DECEMBER 30, 2011

   Note: Based on a hypothetical stock portfolio comprised of the 25 companies on the Davis Brand Capital 25, with holdings proportionately allocated according to each company’s position in the ranking.

                                                                                                                                                                        Copyright © 2012 Davis Brand Capital
Surprisingly, even when family businesses
         grow into major brands,
   they are neither well understood
             nor well studied.



                                Copyright © 2012 Davis Brand Capital   15
Think




                                         16



        Copyright © 2012 Davis Brand Capital
Founder brands are often
     the product of a
supremely charismatic and
  motivated individual.



                       Copyright © 2012 Davis Brand Capital   17
Consider




                                            18



           Copyright © 2012 Davis Brand Capital
The brand and the individual
become one in the public’s mind.



                          Copyright © 2012 Davis Brand Capital   19
Think




                                         20



        Copyright © 2012 Davis Brand Capital
Separating founder and brand to ensure
the brand’s growth and longevity is one
of the core issues founder brands face as
they grow.



                                                                       21



                                      Copyright © 2012 Davis Brand Capital
However,
sometimes the founding influence
    gets eclipsed over time.



                           Copyright © 2012 Davis Brand Capital   22
Consider



Who would you name its greatest leader?

     Thomas Edison or Jack Welch?
                                                                           23



                                          Copyright © 2012 Davis Brand Capital
No matter the scenario,
founder brands are unique brands …




                            Copyright © 2012 Davis Brand Capital   24
… facing unique challenges and
opportunities for growth – everyday.




                             Copyright © 2012 Davis Brand Capital   25
Founder brands share five common
  challenges and opportunities …




                          Copyright © 2012 Davis Brand Capital   26
1.
For founder brands, image and reputation
       are not abstract concepts.



                                Copyright © 2012 Davis Brand Capital   27
Managing a personality-focused equity
     can be a major challenge and
   how a brand handles it, can be the
         difference between
short-term success and sustained value.

                              Copyright © 2012 Davis Brand Capital   28
How to solve this conundrum?




                        Copyright © 2012 Davis Brand Capital   29
For example, convey a brand promise
          that lives beyond a personality




   Steve Jobs effectively prepared the company and his successor,
Tim Cook. Apple now is the world’s most valuable company, nominally.
                                                                                          30



                                                         Copyright © 2012 Davis Brand Capital
Or, define a higher ideal that both
 honors the legacy and shapes the future




 IBM has evolved into an iconic, global brand, honoring not its
powerful founder, but the more universal power of “thinking.”
                                                                                         31



                                                        Copyright © 2012 Davis Brand Capital
So, what will Martha Stewart
         do next?




                                                        32



                       Copyright © 2012 Davis Brand Capital
2.
   Founder brands must consider that
 what is best for the brand may not be
   what is best for the founder. This is
  an essential consideration for keeping
competitive position and consumer trust.
                                 Copyright © 2012 Davis Brand Capital   33
The road from founding garage to
founder brand is not always clear,
 nor free of potholes and u-turns.



                            Copyright © 2012 Davis Brand Capital   34
Think
     Jerry Yang’s attempt to right the long-suffering Yahoo,
                  the company he co-founded.




                          The result?
One of many executives dismissed by a board without a roadmap.
                                                                                       35



                                                      Copyright © 2012 Davis Brand Capital
Consider
Wall Street’s pressure on Mark Zuckerberg’s Facebook.




                     The result?
                   Too early to tell.
                                                                                 36



                                                Copyright © 2012 Davis Brand Capital
3.
 Founder brands often struggle with
  how best to manage and leverage
past achievements in a meaningful and
         future-focused way.

                               Copyright © 2012 Davis Brand Capital   37
To protect the equity in the
founder brand, a portfolio strategy
    is essential to its longevity.



                             Copyright © 2012 Davis Brand Capital   38
Allowing the brand to evolve …




 Hermes, contemporary artisans since 1837
                                                                             39



                                            Copyright © 2012 Davis Brand Capital
… and connect with a new generation of
customers with different needs and habits.




petit h, a new Hermes collection, made from up-cycled studio
          scraps but with the same level of artisanship
                                                                                      40



                                                     Copyright © 2012 Davis Brand Capital
Founder brands also tend to undertake
innovation with extreme due diligence,
which can be a positive and a negative.



                               Copyright © 2012 Davis Brand Capital   41
Case in Point

Kodak’s auction of intellectual property has yet to produce a sale. But it has
had one unlikely result: turning the fiercest rivals in the global patent battle into
potential collaborators.

In recent days, the rival technology giants and patent-hoarding firms that had mounted
competing bids for the portfolio have joined forces, people with knowledge of the
negotiations said – a move that could take the patents off the market at a price below
what Eastman Kodak Co. had hoped to raise in a competitive auction.

The bidding group brings together a raft of strange bedfellows. It includes Apple Inc. and
Google Inc., …

Source: wsj.com, August 22, 2012
                                                                                                               42



                                                                              Copyright © 2012 Davis Brand Capital
4.
Founder brands are often synonymous with
        a strong company culture.



                                Copyright © 2012 Davis Brand Capital   43
Founder brand cultures rise
            and may fall
on the vision and spirit of those who
        brought them to life.



                              Copyright © 2012 Davis Brand Capital   44
Consider
Southwest Airlines’ founder and chairman emeritus, Herb Kelleher




 He serves as an adviser and teaches in the company’s learning and
  development center. Southwest has also created a video archive
  featuring interviews with Kelleher and the company’s founding
employees, “so people won’t lose that connection with the founder.”
                                                                                        45



                                                       Copyright © 2012 Davis Brand Capital
But, the intensity of founder brand
  cultures can end up creating insular
environments and blind deference to the
         founder’s ideals as well.



                              Copyright © 2012 Davis Brand Capital   46
Consider
        News Corporation’s phone hacking scandal




     It took a grieving mother and the government of the
United Kingdom to expose what was likely clear to many on the
inside: Murdoch and his children might not be the best choices
         to run the global media empire he had created.
                                                                                     47



                                                    Copyright © 2012 Davis Brand Capital
5.
  Historically, founder brands excel at
social responsibility and some have even
        spearheaded new notions.


                                 Copyright © 2012 Davis Brand Capital   48
Founder brands are in a particularly
     good position to extend the
 trusted relationships they enjoy with
            their customers.

 They can further cement their brand’s
   future success by institutionalizing
the implicit contract they entered with
            early supporters.
                               Copyright © 2012 Davis Brand Capital   49
Think
                   Patagonia




Under founder Yvon Chouinard’s vision, Patagonia
    became one of the first B corporations.
                                                                              50



                                             Copyright © 2012 Davis Brand Capital
Consider
                         Chipotle




Steve Ells redefined fast food and introduced the notion of
                    “food with integrity.”
                                                                                    51



                                                   Copyright © 2012 Davis Brand Capital
Think
        The Bill & Melinda Gates Foundation




While separate from Microsoft, the Foundation reveals
       the Gates mind at work in familiar ways:
  finding and deploying solutions to global needs.
                                                                                 52



                                                Copyright © 2012 Davis Brand Capital
Taken together…




                  Copyright © 2012 Davis Brand Capital   53
Founder brands are subject to
unique opportunities and challenges
     throughout their lifetime.

   To manage them for full value,
      a keen understanding of
their particular nature is paramount.

                              Copyright © 2012 Davis Brand Capital   54
For ongoing updates and perspectives on
        founder brands, follow:

     #founderbrands on Twitter
 #FounderBrands on Unbound Edition

 Or, request a copy of the white paper:
 founderbrands@davisbrandcapital.com

                               Copyright © 2012 Davis Brand Capital   55

More Related Content

Similar to Davis founder brands 091812

Farifax Financial 2008-2009 Presentation
Farifax Financial 2008-2009 PresentationFarifax Financial 2008-2009 Presentation
Farifax Financial 2008-2009 PresentationMShareS
 
Raddon Chart of the Day August 21, 2012
Raddon Chart of the Day August 21, 2012Raddon Chart of the Day August 21, 2012
Raddon Chart of the Day August 21, 2012Raddon Financial Group
 
Raddon Chart of the Day August 28, 2012
Raddon Chart of the Day August 28, 2012Raddon Chart of the Day August 28, 2012
Raddon Chart of the Day August 28, 2012Raddon Financial Group
 
Study of Debit, Credit & Prepaid Programs. Member Preferences and Marketing S...
Study of Debit, Credit & Prepaid Programs. Member Preferences and Marketing S...Study of Debit, Credit & Prepaid Programs. Member Preferences and Marketing S...
Study of Debit, Credit & Prepaid Programs. Member Preferences and Marketing S...NAFCU Services Corporation
 
Sales Webinar | The Global Sales Industry - Where to Spend Your Time in 2013
Sales Webinar | The Global Sales Industry - Where to Spend Your Time in 2013 Sales Webinar | The Global Sales Industry - Where to Spend Your Time in 2013
Sales Webinar | The Global Sales Industry - Where to Spend Your Time in 2013 Altify
 
"Open CRM" - Tom Schuster
"Open CRM" - Tom Schuster"Open CRM" - Tom Schuster
"Open CRM" - Tom SchusterOutdare
 
Raddon Chart of the Day October 16, 2012
Raddon Chart of the Day October 16, 2012Raddon Chart of the Day October 16, 2012
Raddon Chart of the Day October 16, 2012Raddon Financial Group
 
Raddon Chart of the Day August 13, 2012
Raddon Chart of the Day August 13, 2012Raddon Chart of the Day August 13, 2012
Raddon Chart of the Day August 13, 2012Raddon Financial Group
 
SolarWinds UK and Germany SME Survey Results - Time and Budget
SolarWinds UK and Germany SME Survey Results - Time and BudgetSolarWinds UK and Germany SME Survey Results - Time and Budget
SolarWinds UK and Germany SME Survey Results - Time and BudgetSolarWinds
 
Raddon Chart of the Day August 30, 2012
Raddon Chart of the Day August 30, 2012Raddon Chart of the Day August 30, 2012
Raddon Chart of the Day August 30, 2012Raddon Financial Group
 
Raddon Chart of the Day October 11, 2012
Raddon Chart of the Day October 11, 2012Raddon Chart of the Day October 11, 2012
Raddon Chart of the Day October 11, 2012Raddon Financial Group
 
2013 Gibbs-Soell Sense & Sustainability Study
2013 Gibbs-Soell Sense & Sustainability Study2013 Gibbs-Soell Sense & Sustainability Study
2013 Gibbs-Soell Sense & Sustainability StudySustainable Brands
 
Social: Session 6: Social CRM Tools: What Makes Sense and What Doesn't
Social: Session 6: Social CRM Tools: What Makes Sense and What Doesn't Social: Session 6: Social CRM Tools: What Makes Sense and What Doesn't
Social: Session 6: Social CRM Tools: What Makes Sense and What Doesn't SugarCRM
 
Marketing ROI Graphs
Marketing ROI GraphsMarketing ROI Graphs
Marketing ROI GraphsGailGuge
 
Take the Guesswork Out of Measuring ROI for Sales Training
Take the Guesswork Out of Measuring ROI for Sales TrainingTake the Guesswork Out of Measuring ROI for Sales Training
Take the Guesswork Out of Measuring ROI for Sales TrainingCorporate Visions
 
Ted Hart 11 Am June 15 2009 Digital Leap Success Online
Ted Hart 11 Am June 15 2009 Digital Leap Success OnlineTed Hart 11 Am June 15 2009 Digital Leap Success Online
Ted Hart 11 Am June 15 2009 Digital Leap Success OnlineDigital Leap
 
GuideStar Webinar (07/24/12) - Building the Best Board for Challenging Times
GuideStar Webinar (07/24/12) - Building the Best Board for Challenging TimesGuideStar Webinar (07/24/12) - Building the Best Board for Challenging Times
GuideStar Webinar (07/24/12) - Building the Best Board for Challenging TimesGuideStar
 

Similar to Davis founder brands 091812 (20)

Farifax Financial 2008-2009 Presentation
Farifax Financial 2008-2009 PresentationFarifax Financial 2008-2009 Presentation
Farifax Financial 2008-2009 Presentation
 
Raddon Chart of the Day August 21, 2012
Raddon Chart of the Day August 21, 2012Raddon Chart of the Day August 21, 2012
Raddon Chart of the Day August 21, 2012
 
2013 SMB Ad Spending Preview
2013 SMB Ad Spending Preview2013 SMB Ad Spending Preview
2013 SMB Ad Spending Preview
 
Webbdagarna malmö
Webbdagarna malmöWebbdagarna malmö
Webbdagarna malmö
 
Raddon Chart of the Day August 28, 2012
Raddon Chart of the Day August 28, 2012Raddon Chart of the Day August 28, 2012
Raddon Chart of the Day August 28, 2012
 
Study of Debit, Credit & Prepaid Programs. Member Preferences and Marketing S...
Study of Debit, Credit & Prepaid Programs. Member Preferences and Marketing S...Study of Debit, Credit & Prepaid Programs. Member Preferences and Marketing S...
Study of Debit, Credit & Prepaid Programs. Member Preferences and Marketing S...
 
Sales Webinar | The Global Sales Industry - Where to Spend Your Time in 2013
Sales Webinar | The Global Sales Industry - Where to Spend Your Time in 2013 Sales Webinar | The Global Sales Industry - Where to Spend Your Time in 2013
Sales Webinar | The Global Sales Industry - Where to Spend Your Time in 2013
 
"Open CRM" - Tom Schuster
"Open CRM" - Tom Schuster"Open CRM" - Tom Schuster
"Open CRM" - Tom Schuster
 
Raddon Chart of the Day October 16, 2012
Raddon Chart of the Day October 16, 2012Raddon Chart of the Day October 16, 2012
Raddon Chart of the Day October 16, 2012
 
Raddon Chart of the Day August 13, 2012
Raddon Chart of the Day August 13, 2012Raddon Chart of the Day August 13, 2012
Raddon Chart of the Day August 13, 2012
 
SolarWinds UK and Germany SME Survey Results - Time and Budget
SolarWinds UK and Germany SME Survey Results - Time and BudgetSolarWinds UK and Germany SME Survey Results - Time and Budget
SolarWinds UK and Germany SME Survey Results - Time and Budget
 
Raddon Chart of the Day August 30, 2012
Raddon Chart of the Day August 30, 2012Raddon Chart of the Day August 30, 2012
Raddon Chart of the Day August 30, 2012
 
Raddon Chart of the Day October 11, 2012
Raddon Chart of the Day October 11, 2012Raddon Chart of the Day October 11, 2012
Raddon Chart of the Day October 11, 2012
 
2013 Gibbs-Soell Sense & Sustainability Study
2013 Gibbs-Soell Sense & Sustainability Study2013 Gibbs-Soell Sense & Sustainability Study
2013 Gibbs-Soell Sense & Sustainability Study
 
Raddon Chart of the Day March 8, 2012
Raddon Chart of the Day March 8, 2012Raddon Chart of the Day March 8, 2012
Raddon Chart of the Day March 8, 2012
 
Social: Session 6: Social CRM Tools: What Makes Sense and What Doesn't
Social: Session 6: Social CRM Tools: What Makes Sense and What Doesn't Social: Session 6: Social CRM Tools: What Makes Sense and What Doesn't
Social: Session 6: Social CRM Tools: What Makes Sense and What Doesn't
 
Marketing ROI Graphs
Marketing ROI GraphsMarketing ROI Graphs
Marketing ROI Graphs
 
Take the Guesswork Out of Measuring ROI for Sales Training
Take the Guesswork Out of Measuring ROI for Sales TrainingTake the Guesswork Out of Measuring ROI for Sales Training
Take the Guesswork Out of Measuring ROI for Sales Training
 
Ted Hart 11 Am June 15 2009 Digital Leap Success Online
Ted Hart 11 Am June 15 2009 Digital Leap Success OnlineTed Hart 11 Am June 15 2009 Digital Leap Success Online
Ted Hart 11 Am June 15 2009 Digital Leap Success Online
 
GuideStar Webinar (07/24/12) - Building the Best Board for Challenging Times
GuideStar Webinar (07/24/12) - Building the Best Board for Challenging TimesGuideStar Webinar (07/24/12) - Building the Best Board for Challenging Times
GuideStar Webinar (07/24/12) - Building the Best Board for Challenging Times
 

Recently uploaded

To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Onlinelng ths
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHelene Heckrotte
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxJemalSeid25
 
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...ISONIKELtd
 
Trauma Training Service for First Responders
Trauma Training Service for First RespondersTrauma Training Service for First Responders
Trauma Training Service for First RespondersBPOQe
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.mcshagufta46
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfJohnCarloValencia4
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfHajeJanKamps
 
Personal Brand Exploration Presentation Eric Bonilla
Personal Brand Exploration Presentation Eric BonillaPersonal Brand Exploration Presentation Eric Bonilla
Personal Brand Exploration Presentation Eric BonillaEricBonilla13
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato pptElizangelaSoaresdaCo
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
Amazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the companyAmazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the companyfashionfound007
 
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...Khaled Al Awadi
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003believeminhh
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toumarfarooquejamali32
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024Stephan Koning
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...Brian Solis
 

Recently uploaded (20)

To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Online
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptx
 
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
 
Trauma Training Service for First Responders
Trauma Training Service for First RespondersTrauma Training Service for First Responders
Trauma Training Service for First Responders
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdf
 
Personal Brand Exploration Presentation Eric Bonilla
Personal Brand Exploration Presentation Eric BonillaPersonal Brand Exploration Presentation Eric Bonilla
Personal Brand Exploration Presentation Eric Bonilla
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato ppt
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
Amazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the companyAmazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the company
 
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb to
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
 

Davis founder brands 091812

  • 1. Founder Brands From Original Vision to Sustained Value Davis Brand Capital Clarity. September 2012
  • 2. What do some of the world’s most valuable and well-known brands have in common? Copyright © 2012 Davis Brand Capital 2
  • 3. 3 Copyright © 2012 Davis Brand Capital
  • 4. They are all founder brands. Copyright © 2012 Davis Brand Capital 4
  • 5. What does this mean? Copyright © 2012 Davis Brand Capital 5
  • 6. A founder brand is most easily defined as a brand where a founder or founding family exercises significant influence over the business. Source: International Finance Corporation, “Corporate Governance,” 2007, p. 1 6 Copyright © 2012 Davis Brand Capital
  • 7. That “influence” is manifested through ownership, effective voting control, management or history. Source: International Finance Corporation, “Corporate Governance,” 2007, p. 1 7 Copyright © 2012 Davis Brand Capital
  • 8. Why do founder brands matter so much? Copyright © 2012 Davis Brand Capital 8
  • 9. Founder brands make enormous contributions to the U.S. economy. Copyright © 2012 Davis Brand Capital 9
  • 10. 35 80+ more than 35 percent of Fortune 500 companies are family owned or controlled 60 244 Source: Conway Center for Family Business, “Family Business Facts, Figures and Fun,” 2012 10 Copyright © 2012 Davis Brand Capital
  • 11. 35 80+ eighty to 90 percent of all U.S. businesses 60 are family owned or controlled 244 Source: Conway Center for Family Business, “Family Business Facts, Figures and Fun,” 2012 11 Copyright © 2012 Davis Brand Capital
  • 12. 60 244 sixty percent of all public companies in the U.S. are family controlled Source: Conway Center for Family Business, “Family Business Facts, Figures and Fun,” 2012 12 Copyright © 2012 Davis Brand Capital
  • 13. 60 244 the founder brands* on the 2011 Davis Brand Capital 25 had a market capitalization exceeding $244 billion… * Apple, Microsoft, Google, Toyota Motor Corporation, Volkswagen, Samsung Electronics, Wal-Mart 13 Copyright © 2012 Davis Brand Capital
  • 14. … and outperformed the S&P by 13.53 percent in 2011 DBC25 (+9.32%) FOUNDER BRANDS (+13.53%) DOW JONES (+5.53%) S&P 500 (0.00%) NASDAQ (-1.80%) 14% 12% 10% 8% 6% 4% 2% 0% -2% -4% -6% -8% - 10 % - 12 % -14% JAN. 2011 ARPIL 2011 JULY 2011 OCT 2011 DEC 2011 JANUARY 9, 2011 – DECEMBER 30, 2011 Note: Based on a hypothetical stock portfolio comprised of the 25 companies on the Davis Brand Capital 25, with holdings proportionately allocated according to each company’s position in the ranking. Copyright © 2012 Davis Brand Capital
  • 15. Surprisingly, even when family businesses grow into major brands, they are neither well understood nor well studied. Copyright © 2012 Davis Brand Capital 15
  • 16. Think 16 Copyright © 2012 Davis Brand Capital
  • 17. Founder brands are often the product of a supremely charismatic and motivated individual. Copyright © 2012 Davis Brand Capital 17
  • 18. Consider 18 Copyright © 2012 Davis Brand Capital
  • 19. The brand and the individual become one in the public’s mind. Copyright © 2012 Davis Brand Capital 19
  • 20. Think 20 Copyright © 2012 Davis Brand Capital
  • 21. Separating founder and brand to ensure the brand’s growth and longevity is one of the core issues founder brands face as they grow. 21 Copyright © 2012 Davis Brand Capital
  • 22. However, sometimes the founding influence gets eclipsed over time. Copyright © 2012 Davis Brand Capital 22
  • 23. Consider Who would you name its greatest leader? Thomas Edison or Jack Welch? 23 Copyright © 2012 Davis Brand Capital
  • 24. No matter the scenario, founder brands are unique brands … Copyright © 2012 Davis Brand Capital 24
  • 25. … facing unique challenges and opportunities for growth – everyday. Copyright © 2012 Davis Brand Capital 25
  • 26. Founder brands share five common challenges and opportunities … Copyright © 2012 Davis Brand Capital 26
  • 27. 1. For founder brands, image and reputation are not abstract concepts. Copyright © 2012 Davis Brand Capital 27
  • 28. Managing a personality-focused equity can be a major challenge and how a brand handles it, can be the difference between short-term success and sustained value. Copyright © 2012 Davis Brand Capital 28
  • 29. How to solve this conundrum? Copyright © 2012 Davis Brand Capital 29
  • 30. For example, convey a brand promise that lives beyond a personality Steve Jobs effectively prepared the company and his successor, Tim Cook. Apple now is the world’s most valuable company, nominally. 30 Copyright © 2012 Davis Brand Capital
  • 31. Or, define a higher ideal that both honors the legacy and shapes the future IBM has evolved into an iconic, global brand, honoring not its powerful founder, but the more universal power of “thinking.” 31 Copyright © 2012 Davis Brand Capital
  • 32. So, what will Martha Stewart do next? 32 Copyright © 2012 Davis Brand Capital
  • 33. 2. Founder brands must consider that what is best for the brand may not be what is best for the founder. This is an essential consideration for keeping competitive position and consumer trust. Copyright © 2012 Davis Brand Capital 33
  • 34. The road from founding garage to founder brand is not always clear, nor free of potholes and u-turns. Copyright © 2012 Davis Brand Capital 34
  • 35. Think Jerry Yang’s attempt to right the long-suffering Yahoo, the company he co-founded. The result? One of many executives dismissed by a board without a roadmap. 35 Copyright © 2012 Davis Brand Capital
  • 36. Consider Wall Street’s pressure on Mark Zuckerberg’s Facebook. The result? Too early to tell. 36 Copyright © 2012 Davis Brand Capital
  • 37. 3. Founder brands often struggle with how best to manage and leverage past achievements in a meaningful and future-focused way. Copyright © 2012 Davis Brand Capital 37
  • 38. To protect the equity in the founder brand, a portfolio strategy is essential to its longevity. Copyright © 2012 Davis Brand Capital 38
  • 39. Allowing the brand to evolve … Hermes, contemporary artisans since 1837 39 Copyright © 2012 Davis Brand Capital
  • 40. … and connect with a new generation of customers with different needs and habits. petit h, a new Hermes collection, made from up-cycled studio scraps but with the same level of artisanship 40 Copyright © 2012 Davis Brand Capital
  • 41. Founder brands also tend to undertake innovation with extreme due diligence, which can be a positive and a negative. Copyright © 2012 Davis Brand Capital 41
  • 42. Case in Point Kodak’s auction of intellectual property has yet to produce a sale. But it has had one unlikely result: turning the fiercest rivals in the global patent battle into potential collaborators. In recent days, the rival technology giants and patent-hoarding firms that had mounted competing bids for the portfolio have joined forces, people with knowledge of the negotiations said – a move that could take the patents off the market at a price below what Eastman Kodak Co. had hoped to raise in a competitive auction. The bidding group brings together a raft of strange bedfellows. It includes Apple Inc. and Google Inc., … Source: wsj.com, August 22, 2012 42 Copyright © 2012 Davis Brand Capital
  • 43. 4. Founder brands are often synonymous with a strong company culture. Copyright © 2012 Davis Brand Capital 43
  • 44. Founder brand cultures rise and may fall on the vision and spirit of those who brought them to life. Copyright © 2012 Davis Brand Capital 44
  • 45. Consider Southwest Airlines’ founder and chairman emeritus, Herb Kelleher He serves as an adviser and teaches in the company’s learning and development center. Southwest has also created a video archive featuring interviews with Kelleher and the company’s founding employees, “so people won’t lose that connection with the founder.” 45 Copyright © 2012 Davis Brand Capital
  • 46. But, the intensity of founder brand cultures can end up creating insular environments and blind deference to the founder’s ideals as well. Copyright © 2012 Davis Brand Capital 46
  • 47. Consider News Corporation’s phone hacking scandal It took a grieving mother and the government of the United Kingdom to expose what was likely clear to many on the inside: Murdoch and his children might not be the best choices to run the global media empire he had created. 47 Copyright © 2012 Davis Brand Capital
  • 48. 5. Historically, founder brands excel at social responsibility and some have even spearheaded new notions. Copyright © 2012 Davis Brand Capital 48
  • 49. Founder brands are in a particularly good position to extend the trusted relationships they enjoy with their customers. They can further cement their brand’s future success by institutionalizing the implicit contract they entered with early supporters. Copyright © 2012 Davis Brand Capital 49
  • 50. Think Patagonia Under founder Yvon Chouinard’s vision, Patagonia became one of the first B corporations. 50 Copyright © 2012 Davis Brand Capital
  • 51. Consider Chipotle Steve Ells redefined fast food and introduced the notion of “food with integrity.” 51 Copyright © 2012 Davis Brand Capital
  • 52. Think The Bill & Melinda Gates Foundation While separate from Microsoft, the Foundation reveals the Gates mind at work in familiar ways: finding and deploying solutions to global needs. 52 Copyright © 2012 Davis Brand Capital
  • 53. Taken together… Copyright © 2012 Davis Brand Capital 53
  • 54. Founder brands are subject to unique opportunities and challenges throughout their lifetime. To manage them for full value, a keen understanding of their particular nature is paramount. Copyright © 2012 Davis Brand Capital 54
  • 55. For ongoing updates and perspectives on founder brands, follow: #founderbrands on Twitter #FounderBrands on Unbound Edition Or, request a copy of the white paper: founderbrands@davisbrandcapital.com Copyright © 2012 Davis Brand Capital 55