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Walking The Talk

I gave this presentation to the Stanford Graduate School of Business. The course was on Reputation Management. This presentation (minus the voiceover) offers a framework and case studies for brands and their behavior, including the CEO.

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Walking The Talk

  1. 1. Walking the Talk: The Power of Brand Belief, Brand Behavior and CEO Embodiment A conversation at Stanford with Rob Schwartz CEO TBWACHIATDAY
  2. 2. The Company We Keep
  3. 3. 3TBWACHIATDAY 3 1. 4 Stories 2. Framework for brand success 3. Case discussion Today
  4. 4. 4TBWACHIATDAY 4 1. The power of a belief in business 2. The case for simplicity 3. A framework you can use to inspire and filter your future success 4. A few laughs and good anecdotes What’s In It For You?
  5. 5. 5TBWACHIATDAY 5
  6. 6. 6TBWACHIATDAY Framework for Brand Success Brand Belief CEO Embodiment Brand Behaviors Brand Success
  7. 7. 7TBWACHIATDAY
  8. 8. 8TBWACHIATDAY Apple Think Different Be Different Act Different Brand Success
  9. 9. 9TBWACHIATDAY Brand Belief
  10. 10. TBWACHIATDAY 10
  11. 11. TBWACHIATDAY 11
  12. 12. TBWACHIATDAY 12
  13. 13. 13TBWACHIATDAY Apple Think Different Be Different Act Different Brand Success
  14. 14. TBWACHIATDAY Brand Behaviors 14 “We’re trying to get back to the basics - great products, great marketing, great distribution” “We got rid of 70% of the stuff on the product roadmap” Steve Jobs, 1997 internal meeting
  15. 15. TBWACHIATDAY Brand Behaviors 15 Fewer products Augmented by powerful ecosystems
  16. 16. TBWACHIATDAY Brand Behaviors 16 Fewer products Augmented by powerful ecosystems Ecosystems includes packaging 3.5 mm Apple unboxing videos on YouTube
  17. 17. TBWACHIATDAY Brand Behaviors 17 Fewer products Augmented by powerful ecosystems Ecosystems includes retail experience
  18. 18. 18TBWACHIATDAY Apple Think Different Be Different Act Different Brand Success
  19. 19. 19TBWACHIATDAY 19 “Every thing a brand does is an ad.” ~Lee Clow “Marketing is about values. It’s a complicated world, noisy world. So we have to be very clear about what we want them to remember about us. Our customers want to know who is Apple, and what do they stand for. Where do we fit in this world.” CEO Embodiment
  20. 20. 20TBWACHIATDAY 20 The company does “a lot of things for reasons besides profit motive. We want to leave the world better than we found it.” CEO Embodiment
  21. 21. 21TBWACHIATDAY 21 Brand Embodiment
  22. 22. 22TBWACHIATDAY Success Act Different
  23. 23. TBWACHIATDAY Brand Success 23 317,000,000 355,000,000 575,000,000 1,000,000,000+
  24. 24. TBWACHIATDAY Brand Success 24 50,000,000,000+ 17,500,000,000 37,250,000,000
  25. 25. TBWACHIATDAY Brand Success 25 Remember that one week where Google was more valuable than Apple?
  26. 26. 26TBWACHIATDAY
  27. 27. 27TBWACHIATDAY T-Mobile The Un-Carrier Magenta Man Listen Do Shout Brand Success
  28. 28. 28TBWACHIATDAY 28 We’re still a wireless carrier. We’re simply not going to act like one 1.Listen to customers 2.Listen to front-line employees 3.Do what they say Brand Belief
  29. 29. 29TBWACHIATDAY Framework for Brand Success The Un-Carrier Magenta Man Listen Do Shout Brand Success
  30. 30. TBWACHIATDAY Brand Behaviors 30
  31. 31. TBWACHIATDAY Brand Behaviors 31
  32. 32. TBWACHIATDAY Brand Behaviors 32 Trolling competitors
  33. 33. TBWACHIATDAY Brand Behaviors 33 Trolling competitors Skywriting “End Overages Now” over Verizon headquarters
  34. 34. TBWACHIATDAY Brand Behaviors 34 Trolling competitors “Verizon Earnings Call game was so fun”, so here’s another one for the AT&T earnings call
  35. 35. TBWACHIATDAY Brand Behaviors 36 Employees Reversed T-Mobile’s policy of not allowing its store employees to have tattoos and piercings
  36. 36. 37TBWACHIATDAY T-Mobile The Un-Carrier Magenta Man Listen Do Shout Brand Success
  37. 37. TBWACHIATDAY 38
  38. 38. TBWACHIATDAY 39
  39. 39. TBWACHIATDAY 40 Spent evenings his first few months on the job listening in on T-Mobile’s customer service calls. None of the technology mattered. There was a plethora of hatred for the industry and a never-ending list of things people wanted to change. Brand Embodiment
  40. 40. TBWACHIATDAY 41 CEO Debut at CES in Vegas Brand Embodiment
  41. 41. TBWACHIATDAY 42
  42. 42. 43TBWACHIATDAY Brand Success 43
  43. 43. 44TBWACHIATDAY Brand Success 44
  44. 44. 45TBWACHIATDAY Brand Success 45 T-Mobile ranked highest among the four major U.S. wireless providers
  45. 45. 46TBWACHIATDAY Brand Success 46
  46. 46. 47TBWACHIATDAY T-Mobile The Un-Carrier Magenta Man Listen Do Shout Brand Success
  47. 47. 48TBWACHIATDAY
  48. 48. 49TBWACHIATDAY Volkswagen The People’s Car Internal Squabbler Race for No. 1 Brand Success ?
  49. 49. TBWACHIATDAY Brand Belief 50 The people’s car.
  50. 50. TBWACHIATDAY 51
  51. 51. TBWACHIATDAY Brand Belief 52 Unabashedly embracing what makes Volkswagen different
  52. 52. TBWACHIATDAY Brand Belief 53 Unabashedly embracing what makes Volkswagen different
  53. 53. 54
  54. 54. 55TBWACHIATDAY Volkswagen The People’s Car Internal Squabbler Race for No. 1 Brand Success ?
  55. 55. TBWACHIATDAY 56 Number one in global sales 8% Profit Most satisfied customers Happiest workers Source: CNBC VW’s Objectives
  56. 56. TBWACHIATDAY 57
  57. 57. TBWACHIATDAY 58
  58. 58. TBWACHIATDAY 59
  59. 59. TBWACHIATDAY 60
  60. 60. TBWACHIATDAY 61
  61. 61. The lie: VW’s pollute 40X more than the norm 1 in 4 cars in Europe 11 milion cars worldwide
  62. 62. TBWACHIATDAY Brand Behaviors 63
  63. 63. 64 Brand Behaviors TBWACHIATDAY
  64. 64. TBWACHIATDAY Brand Behaviors 65 “Volkswagen should use simple ads that hark back to those early days to rehabilitate its tarnished image.”
  65. 65. TBWACHIATDAY 66
  66. 66. TBWACHIATDAY 67 Ok, so tons of activity right?
  67. 67. TBWACHIATDAY Brand Behaviors 68
  68. 68. 69TBWACHIATDAY Volkswagen The People’s Car Internal Squabbler Race for No. 1 Brand Success ?
  69. 69. TBWACHIATDAY 70 CEO Resigned US CEO Resigned March 2016 US sales: -12%
  70. 70. 71TBWACHIATDAY Brand Success
  71. 71. TBWACHIATDAY 72
  72. 72. TBWACHIATDAY 73 Steve Legere Elon Musk Mary Barra Dov Charney WW__________D?
  73. 73. 74TBWACHIATDAY
  74. 74. 75TBWACHIATDAY American Apparel Fashion: Democratized. Localized. Le DisruptorFor the people. Made by the people. Brand Success ?
  75. 75. 76TBWACHIATDAY Brand Belief Fashion: Democratized. Localized
  76. 76. 77TBWACHIATDAY Brand Belief
  77. 77. 78TBWACHIATDAY Brand Belief
  78. 78. 79TBWACHIATDAY Largest clothing manufacturer in the US Brand Behaviors
  79. 79. 80TBWACHIATDAY American Apparel Fashion: Democratized. Localized. Le DisruptorFor the people. Made by the people. Brand Success ?
  80. 80. TBWACHIATDAY 81 Sweatshop free Pays workers more than minimum wage Healthcare Subsidized meals English lessons Brand Behaviors
  81. 81. 83TBWACHIATDAY For the people. Made by the people
  82. 82. 84TBWACHIATDAY Brand Behaviors Ads featured non- traditional models and didn't airbrush
  83. 83. 85TBWACHIATDAY Brand Behaviors Brand stood for social movements
  84. 84. 86TBWACHIATDAY Brand Behaviors Brand stood for social movements
  85. 85. 87
  86. 86. 88 “She is the photographer. She shot these of herself. Feeling good in her jeans. I’m proud of his ad. She’s the customer, she’s wearing the product and she’s the photographer. This is American Apparel. “ ~Dov Carney, CEO
  87. 87. 89TBWACHIATDAY American Apparel Fashion: Democratized. Localized. Le DisruptorFor the people. Made by the people. Brand Success ?
  88. 88. TBWACHIATDAY 90 Dov Charney • Started t-shirt company in dorm room in 1988 • Dropped out of Tufts to manage company full-time • Refused to manufacture outside U.S. • Paid workers more than double minimum wage + healthcare + free international phone calls during work Height of American Apparel • 2008: The Guardian named American Apparel “Label of the Year” • 2009: Finalist for Time’s 100 Most Influential People Brand Embodiment
  89. 89. 91TBWACHIATDAY
  90. 90. TBWACHIATDAY 92 Lawsuits Sexual Harassment Racial Slurs Sexting CEO Embodiment
  91. 91. 93TBWACHIATDAY Chapter 2 = Chapter 11
  92. 92. TBWACHIATDAY Brand Behaviors 94 Factory Issues Moved It Was supposed to cost $5 mm Ended up costing $20 mm Couldn’t make the $17 mm interest payment on debt that year
  93. 93. TBWACHIATDAY Brand Behaviors 95 Federal Immigration and Customs audited 1,800 workers immigration Fired 1,600 employees 1/3 of LA-based workforce “Legalize LA” campaign more self-serving than idealistic
  94. 94. TBWACHIATDAY Brand Behaviors 96 Employee mishandling at store-level • $300k settlement for manager using racial slurs • $60k settlement for firing an employee undergoing cancer treatment
  95. 95. TBWACHIATDAY Brand Behaviors 97 Store employee recruitment Job applicants submitted full body photos
  96. 96. TBWACHIATDAY Brand Behaviors 98 Advertising • Banned in Britain • Sexual harassment charges from models • Underage models
  97. 97. 99TBWACHIATDAY Brand Success
  98. 98. 100TBWACHIATDAY American Apparel Fashion: Democratized. Localized. Le DisruptorFor the people. Made by the people. Brand Success ?
  99. 99. 101TBWACHIATDAY 101 1. The power of a belief in business 2. The case for simplicity 3. A framework you can use to inspire and filter your future success So…
  100. 100. 102TBWACHIATDAY Framework for Brand Success Brand Belief CEO Embodiment Brand Behaviors Brand Success
  101. 101. 103TBWACHIATDAY @Schwartzie14 CEO, TBWAChiatDay New York Thank You. @TaraHagan Director of Business Analytics, TBWAChiatDay New York

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I gave this presentation to the Stanford Graduate School of Business. The course was on Reputation Management. This presentation (minus the voiceover) offers a framework and case studies for brands and their behavior, including the CEO.

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