Millward Brown H E L P I N G Y O U R B R A N D S G R O W

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W E A R E

THE WORLD’S

LEADING EXPERT helping clients GROW great brands

IN

BRAND EQUITY is only ONE of the ways we create Meaningful Impact for our clients

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Our Areas of Focus

meaningfully DIFFERENT

Our Areas of Expertise – Brand Media & Comms

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Brand Tracking

Digital CrossMedia

Marketing Mix ROI

Copy Testing

Brand Strategy

Social Brand

Valuation Qualitative

Neuroscience Marketing Science

Consulting

Market Leadership and Consulting

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PUBLICATIONS

MEDIA

INSIGHTS

ANNUAL DIGITAL PREDICTIONS

BRAND VALUE

PERSPECTIVES SERIES

ENGAGING DISPLAY CAMPAIGNS

MOST VALUABLE BRANDS

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90% of the world’s

L E A D I N G B R A N D S

-60%

-40%

-20%

0%

20%

40%

60%

Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

Millward Brown Top 20* Clients vs. S&P 500 (Jan 2005 - July 2012)

MB Top 20* SP500

Our clients exceed market returns to shareholders

Source: Bloomberg, Millward Brown, MB Optimor analysis * Portfolio is re-weighted annually based on top 20 client each year

+29%

Global Presence (90 offices), Local Expertise (research over 70 languages)

9 MENA – Dubai & Cairo (2012), KSA in (Dec’13)

Africa – South Africa, Kenya, Ghana, Nigeria

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Great metrics,

need great data

capturing techniques

One answer is mobile interviewing

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Why consider mobile surveys?

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ACTUALLY THE REAL QUESTION SHOULD BE WHY NOT?

*Source: Morgan Stanley Research; **Source: Informa WCIS; ***Source: StatCounter Global Stats, 9/12

1.5 BILLION

37% GROWTH

15% OF WEB

smartphones and tablets will be installed globally by mid 2013 – overtaking laptops and PCs*

in the number of global 3G subscribers in the past year**

traffic comes via mobile – more than double last year; Mobile traffic share already over 50% in India and China***

Nearly 40% of web traffic in KSA comes from a mobile phone device and not from a desktop

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This is not surprising since KSA ranks third in the world with over 70% smart phone penetration.

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MOBILE SURVEYS GIVE YOU INCREDIBLE SHORT TERM ADVANTAGES

Consumers are connected to their mobile phones all the time and find it comfortable and engaging as a communication medium better interview context

Pilot studies have shown that without interviewers (over)prompting, mobile data is more discriminating between brands and reflect market reality better better data quality

Speed of data access and deliverables increases significantly.

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MOBILE SURVEYS WILL HELP YOU FUTURE PROOF YOUR INSIGHTS

Door to door access will get increasingly difficult and expensive due to rising trend of gated communities where higher income respondents reside better representativeness of the sample

Can integrate exciting possibilities offered by the smartphone platform: multimedia, geo-location (GPS), passive behaviour monitoring (once the smartphone penetration is sufficiently high).

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Data quality is impressive

on Mobile

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KEY INSIGHTS WE HAVE SEEN FROM THE DATA

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ACCESS TO HIGHER INCOME HOUSEHOLDS

MOBILE GIVES US BETTER ACCESS TO HIGHER INCOME HOUSEHOLDS (MORE VALUABLE CUSTOMERS) THAN TRADITIONAL DOOR-TO-DOOR INTERVIEWING CAN

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MOBILE DATA MATCHES UP TO MARKET SHARE

OVER TIME, MOBILE DATA MATCHES UP TO MARKET REALITY EVEN MORE DUE TO THE ABILITY TO COVER WIDER GEOGRAPHIES NATIONALLY

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MORE HONEST FEEDBACK SELF-COMPLETION MODE MEANS THAT RESPONDENTS ARE MORE DISCRIMINATING TOWARDS BRANDS, GIVING US MORE HONEST AND USEFUL FEEDBACK

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NOT AN ISSUE CAPTURING OPEN ENDED RESPONSES

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SCREEN SIZE DOESN’T MATTER – RESPONSES ARE CONSISTENT

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AS OF NOV 2013, WE HAVE INTERVIEWED 10,000+ CONSUMERS IN ASIA, AFRICA AND MIDDLE EAST THROUGH THEIR MOBILE.

Our mobile fieldwork partner is ODR

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WITH UP TO 1500 NEW PANELISTS BEING ADDED EACH MONTH

How does it work? Give it a try

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Banking example: https://s.on-device.com/w/e1W

• Males and Females • Between 20-50 YO • Currently has an active

bank account in KSA.

If you have an active data connection, go to your mobile browser and type in the following URLs in the address line.

THE TWO KSA STUDIES IN FIGURES

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8 mins to complete on average for Banking

65% answered the surveys using an Apple iOS device

83% answered the surveys using a smartphone

11 mins to complete on

average for Auto

9 days get 1000 completes

Brand Equity Study completed via Mobile in KSA Cars & Banking

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EQUITY OF LEADING CAR BRANDS

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Take a Guess– Which Brands have higher Power?

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Power 12

What is driving Toyota’s Power?

Very Salient and Strongly Meaningful overall. Weak perceived difference is its main weakness as it is the most popular make in the country.

Salient 156

Power 19.3

Salient 156

Different 88

Power 19.3

Salient 156

Different 88

Meaningful 128 Power

19.3

Salient 156

Different 88

Meaningful 128 Power

19.3

Salient 156

Different 88

Meaningful 128 Power

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Because people are predisposed to consider brands when they believe them to be meaningful. They meet their needs better than other brands and they appeal to them more than others.

If a brand seeks to charge a premium, people will only do so if they believe the brand is meaningfully different in some way.

People consider the brands that are most salient – the ones that come to mind quickest when the need arises.

Leading car brands in Saudi Arabia

Power 12

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Over the last couple of years, the brand equity scores of Toyota has come down at the expense of growth of brands like Ford and Hyundai.

Power can transform quickly…

0%

5%

10%

15%

20%

25%

Toyata Ford Hyundai Mercedes-Benz BMW

20112013

Changing demographics also impacting power shift: Younger Saudis lean towards Hyundai and BMW

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POWER SCORES IN 2013

TOTAL SAMPLE 20-29 YRS 30-50 YRS

Toyota 19.3%

Ford 12.1%

Hyundai 12%

Mercedes-Benz 11.8% Average Average

BMW 11.1%

Chevrolet 9%

Honda 9%

Nissan 8% Average Average

GMC 7% Average Average

(236) (164) (400) Base:

Lower than the average Higher than the average

What contributes to being Meaningful & Different in cars?

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- 12.4%

0.4%

3.1%

16.3%

17.0%

24.2%

26.6%

Doesn't meet needs

Too cheap

Costs more

Acceptable price

Stylish design

Better to drive

Proud to drive

- 15.6%

- 1.3%

29.9%

1.7%

16.7%

14.0%

20.9%

Doesn't meet needs

Too cheap

Costs more

Acceptable price

Stylish design

Better to drive

Proud to drive

Contribution to Meaningful Contribution to Difference

What is driving Meaningful & Difference for cars in KSA?

Premium pricing

Driving experience

What drives Power for Cars in KSA?

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Does not meet my

needs -5%

Costs more 2%

Acceptable price 18%

Stylish 22%

Better to drive 23%

Proud to use 28%

POWER

Average Endorsement

across category Toyota Ford Hyundai

Better to drive than others in their class 33%

More stylish and better designed than others in their class 34%

Would be proud to use 34%

Acceptable price 13%

Does not meet my needs 22% Costs more than you're prepared

to pay 12%

Too cheap 6% -1%

1%

-5%

13%

-4%

-8%

1%

Power differences across mid range car brands

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2%

-6%

9%

9%

-15%

-1%

-10%

1%

-3%

-2%

4%

-6%

-2%

1%

Average Endorsement across

category Mercedes Benz BMW

Better to drive than others in their class 33%

More stylish and better designed than others in their class 34%

Would be proud to use 34% Acceptable price 13%

Does not meet my needs 22% Costs more than you're prepared

to pay 12%

Too cheap 6% -1%

13%

-2%

-10%

33%

36%

22%

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-5%

16%

-13%

-11%

38%

29%

31%

Power differences across prestige brands

From Power to Volume Share Tapping in to brand’s potential

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Toyota Ford

Hyundai

Mercedes-Benz

BMW

Chevrolet

Honda

Nissan

GMC

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10

20

30

40

50

60

70

80

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

POTE

NTIA

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POWER % (current equity share)

POWER % vs. POTENTIAL

Enjoying the lion share of the market but the path ahead is less clear. Challenged by the likes of Hyundai on price point and also seen to be held back by less differentiated design and exteriors compared to some of the newer market entries.

Momentum for the luxury / premium brands continue to be strong going forward in KSA. Superior drive experience and particularly differentiated designs appeal to the younger car buyers.

While clocking in impressive sales nationally, Hyundai’s brand equity has yet to catch up with its sales volume. Needs to address weak perceptions around drive experience to improve the sense of prestige and pride to counter this

For Toyota, analysis of the barriers & facilitators shows that a significant part of Toyota market share comes from conversion of demand from other brands.

£ € $

¥

Brand Predisposition

Volume Share

OPPORTUNITY LOST through In-Market

Activation

The segment that will exit fastest if they could afford to ‘buy up’. Toyota should address some perceived weaknesses around design & drive exp

Were pre-disposed (high equity) and bought a Toyota

Not pre-disposed (equity) to Toyota but bought anyway

Pre-disposed to Toyota but didn’t buy the brand

Quick look at the Saudi Banks

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Al Rajhi

Take a Guess–Which Brands have higher Power?

Top banks in Saudi Arabia

Power 35.2

Different 120

Power 35.2

Different 120

Meaningful 136

Power 35.2

Salient 165

Different 120

Meaningful 136

Power 35.2

Salient 165

Different 120

Meaningful 136

Power 35.2

Power 17.6

Different 102

Power 17.6

Different 102

Meaningful 112

Power 17.6

Salient 119

Different 102

Meaningful 112

Power 17.6

Salient 119

Different 102

Meaningful 112

Power 17.6

Al Rajhi

•Market leader across all regions. • Impressive scores on Meaningful and Salient which are important when choosing banks.

•Overall very strong and positive disposition towards the bank.

•Strong second player overall but held back by weaker scores in Riyadh.

•Above category average on Meaningful and Salient but just about average on Difference.

Offering emotional assurance is even more important than offering attractive rates when chasing customers.

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- 8.7%

1.1%

10.7%

25.5%

25.6%

28.3%

Doesn't meet my needs

Charges more

Charges acceptable price

Growing more popular

Better saving rates / Cheaper loans

Better Customer Service / Feels secure

What drives Brand Power?

TO SUM UP….

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The MDS framework: - Helps you build meaningful brands & grown brand value - Holistic in approach, yet can diagnose in detail the barriers &

facilitators to brand growth - Validated, forward looking and linked to brands’ financial

performance. Digital data-collection is already a reality - Consumers are spending more time on digital devices - Gives us better access to different consumer profiles - Better quality data - Realistically shorter questionnaire (is the future)

Thank You

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Any questions? Or for more information, please contact Charles Foster charles.foster@millwardbrown.com

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