“The average tenure of a CMO is 23 months” (Spencer Stuart Study, October 2004)
To suggest that there is a relationship between brand performance and tenure would be a blinding glimpse of the obvious. Which is why AHPL has developed its next-generation Brand Performance Practice.
Brands are the core assets of any business. They provide annuity-like, sustainable revenue and profits and create multiple valuations that drive shareholder value. The trouble is, 80+% of all new brands fail; the costs and complexities of launching new brands has never been higher or more difficult and you’re left wondering how to wring another basis point of margin contribution from your existing brand stable.
The ways in which consumers learn of, adopt, reject or become loyal to brands have undergone seismic change within just the last 8 years. Sadly, too many companies and advisers still believe the traditional market drivers and practices will suffice in the “Next Economy”. We suggest that the decreased ROI on brands that companies have experienced over the past 8 years suggests otherwise. The relentless transfer of control of the brand adoption cycle to the consumer from the marketer is upending traditional thinking and demanding new approaches to problem definition, strategic response and marketplace execution and measurement.
Powered by the rate of technological change, coupled with an ever-fragmenting consumer marketplace and supported by the dramatic concentration of distribution and retail channels, the old “proven” models of brand valuation, brand communication architecture and brand performance tracking and consumer behaviour no longer work. Client organizations have not evolved to meet the demands of the “Next Economy” and suppliers and vendors--advertising, media, PR and promotion agencies--haven’t evolved their business models in 30 years. Is is any wonder so many marketers are frustrated with the current choices available to them?
Which is why AHPL has created its next-generation “Brand Performance” practice, specifically designed to leverage the dynamics of this emerging new marketplace by providing new thinking, new solutions and the expertise to implement, manage and measure the outcomes. Our “Brand Performance” practice consists of four primary disciplines, which work individually or together as a matrixed team as the Client engagement may require.
4 Key Drivers of Improved Brand Performance