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About Spendshift
Brand Bubble Excerpt
The Brand Bubble
The Brand Bubble: The Looming Crisis in Brand Value and How to Avoid It

How to use brands to gain and sustain competitive advantage

Companies today face a dilemma in marketing. The tried-and-true formulas to create sales and market share behind brands are becoming irrelevant and losing traction with consumers. In this book, Gerzema and Lebar offer credible evidence--drawn from a detailed analysis of 15 years worth of brand and financial data using Young & Rubicam's BrandAsset® Valuator, the largest database of brands in the world--that business is riding on yet another bubble that is ready to burst--a brand bubble. While most managers still see metrics like trust and awareness as the backbone of how brands are built, they're dead wrong--these metrics do not add to increased asset value. In fact, by following them, they actually hasten the declining value of their brands.

Using a five-stage model, The Brand Bubble reveals how today's successful brands--and tomorrow's--have an insatiable appetite for creativity and change. These brands offer consumers a palpable sense of movement and direction thanks to a powerful Energized Differentiation. The Brand Bubble explains why brands with Energized Differentiation achieve better financial performance than traditional brands, and offers readers insight on how to develop Energized Differentiation in their own brands in order to create consumer-centric and sustainable organizations.

John Gerzema (New York, NY) is Chief Strategy Officer for Young & Rubicam Brands. He joined Young & Rubicam from Fallon Worldwide, where he created the firm's global expansion strategy. A member of The Council of Foreign Relations, he is the recipient of more than a half-dozen industry awards and has appeared frequently on/in CNBC, Newsweek, the New York Times, the Wall Street Journal, and various industry publications.

Ed Lebar (New York, NY) is the CEO of BrandAsset® Consulting™, a division of Young & Rubicam Brands. He oversees the implementation of BrandAsset® Valuator, consulting across all lines of business, global accounts, and joint ventures. Many of the Fortune 500 companies are clients and employ the BrandAsset® Valuator model. He began his career at Young & Rubicam 32 years ago and has held the position of Professor of Economics at CCNY and Finch College.

THE RELATIONSHIP BETWEEN EACH PILLAR TELLS A DIFFERENT STORY IN THE BRAND'S DEVELOPMENT
Pillar Patterns Tell a Story

Momentum or Niche:
Brand has captured attention and now has power to build Relevance

When Energized Differentiation is greater than Relevance, the brand has captured attention, interest and now can build Relevance and penetration. This reflects a new niche or luxury brand. This type of brand has more creativity than functionality.

Commodity:
Uniqueness has faded, price or convenience is the dominant reason to buy.

If a brand is more Relevant that it is Differentiated, it may still be vital, but its uniqueness is fading and price or convenience is becoming a dominant reason to buy. It may also be more rational than creative.

Leaders, Cultural Icons:
Strong on Energized Differentiation and Relevance

Leadership brands are strong on both Energized Differentiation and Relevance. High levels demonstrate that the brand stands out to consumers in a meaningful way. It is a leader commanding high margins, loyalty and volume.

Desire to Find Out More:
A brand is more liked than known

When a brand's Esteem is greater than Knowledge, it is liked but not well-known. Consumers are curious to find out more. There is growth potential in this brand.

Looking for Better Options:
Brand is better known than liked

Too much knowledge can be a bad thing. If Knowledge is greater than Esteem, the brand has become too familiar, and consumers are not interested in knowing it better. They are probably looking for better options.

Established Leaders:
Strong on both Esteem and Knowledge

When a brand is strong on both Esteem and Knowledge, it has successfully established itself in the hearts and minds of consumers.