The Power of Branding
32
Proprietary and confidential. Do not distribute. UBS Prime Brokerage Conference April 24, 2015 The Power of Branding Michael Dunn CHAIRMAN & CEO
Transcript of The Power of Branding
Proprietary and confidential. Do not distribute.
UBS Prime Brokerage Conference
April 24, 2015
The Power of Branding
Michael
Dunn CHAIRMAN
& CEO
Why am I here?
When I say BRANDING
and HEDGE FUND in the same sentence,
what are your first impressions?
Poll:
Brand is the sum of all information about a product, service, or company that is conveyed through communications and experience…
…creating an associative and
emotional relationship between
that entity and its stakeholders
Brand is not advertising
Logo
Advertising
Brand Sponsorships
Public Relations
Marketing
Naming
Product
Brand is the cohesive story of the smart decisions you make to maximize value for stakeholders
Strategy
Track record
Brand Vision
Philosophy
Personality
Values
Reputation
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Brand is rational and emotional
“Brand can drive future sales
growth, pricing power and profit
margins - strong brand translates
into solid future EPS growth
“I’ve always
just been
a Nike person”
“Brand is an intangible asset, but
it does have value and can be
measured even though it’s not on
the balance sheet”
“I would rather feel
bad in Maine then
good anywhere else
in the world”
“Wherever you go, there
are three icons that
everyone knows: Jesus
Christ, Pele and Coca-
Cola”
“Companies that have a brand,
and are able to monetize that
brand, are tremendously
profitable”
RATIONAL EMOTIONAL
Having a brand matters to your firm because you need to be trusted
It is hard to sell trust directly;
your brand can be that container to
build the components of trust
Trust
/trəst/
Noun
Firm belief in the capability, reliability, and truthin someone or something
Synonyms: confidence, belief, faith, certainty, assurance, conviction, credence, reliance
Brand as a demand driver
How can a strong BRAND
HELP your business?
Poll:
Strong brands generate greater demand
Share
Pri
ce share
$
Unbranded
curve
Branded
curve
In 2011,
35% of U.S.
consumers polled
said they would
pre-order the
iPhone 5…
sight and price
unseen
BRAND
EQUITY
MODEL OUTCOME
Funds at any stage, are chasing demand so they can execute their strategy
Growing
Proven
Established
Size (AUM) < $500M
Strategic priority:
Sourcing investors
FUND STAGE
Size (AUM) $500M - $1B
Strategic priority:
Closing funds to
new investors
DE
MA
ND
TRUST
Size (AUM) > $1B
Strategic priority:
Seeding additional funds
Brand is the conduit between trust and demand for funds at any stage
Growing
Proven
Established
Size (AUM) < $500M
Strategic priority:
Sourcing investors
FUND STAGE
Size (AUM) $500M - $1B
Strategic priority:
Closing funds to
new investors
DE
MA
ND
TRUST
Size (AUM) > $1B
Strategic priority:
Seeding additional funds
Brands tell a compelling story about a fund’s capabilities, reliability, and truth
Proving track
record of success
Reaffirming
reliability
Expanding influence
through thought
leadership
Communicating
truth
Establishing credibility
through pedigree and
unique philosophy
Defining
capabilities
STRATEGIC
PRIORITY
ROLE OF
THE BRAND
DEMAND
DRIVING
OUTCOME
Closing funds to
new investors
Seeding
additional funds
Sourcing
investors
Proprietary and confidential. Do not distribute.
BECOMING THE UNCARRIER...
…unlocking demand to drive $1BN in revenue
Building a strong brand
What company has
the STRONGEST brand?
Poll:
We believe strong brands arerelentlessly relevant…
Customer Obsessed Pervasive Innovation
Ruthlessly Pragmatic Distinctively Inspired
…and depend on four primary objectives
Prophet Project Proposal 21Proprietary and confidential. Do not distribute.
First, having the discipline to stay
customer obsessed like none other
in their category. This doesn’t mean
simply conducting research. It
means tirelessly working to
creatively uncover breakthrough
insights that give rise to fresh, new
ideas for how, where, and when to
engage and win with customers.
Customer Obsessed
Prophet Project Proposal 22Proprietary and confidential. Do not distribute.
hga
l
Second, continually practicing
pervasive innovation. This is a
philosophy of being nimble and
responsive in creating opportunities
for authentic engagement, and of
delighting customers at every turn.
Whether it is with new offerings,
content, channels, experiences, or
business models, brands that
constantly give customers fresh,
novel, better ways to interact and
engage will win.
Pervasive Innovation
Prophet Project Proposal 23Proprietary and confidential. Do not distribute.
Third, being ruthlessly pragmatic in
how the brand can support the
business strategy, and how it is
brought to life in practice. This
requires clear alignment around the
brand’s role in driving business
growth and a practical approach to
ensure new proof points to activate
the brand positioning.
Ruthlessly Pragmatic
Prophet Project Proposal 24Proprietary and confidential. Do not distribute.
But all this has to be built on the
brand being distinctively inspired in
its promise and ambition. The brand
has to be supported and pushed by
employees’ energy and talent –
they need to feel that they own it.
Distinctively Inspired
MAKING ROOM ON THE STRIP...
…in a saturated market with a difficult operating environment
Brand as a strategic tool
What is the biggest
CHALLENGE you face?
Poll:
Brand can be the tool that unlocks the opportunity that lies in the tensions you face
Transparencyvs.
Mystery
Differentiated
vs.
Dependable
Human
vs.
Machine
Humanvs. Machine
The challenge:
Defining the right balance of
relationship-anchored
expertise and technicals to
appeal to your target investor
Transparencyvs. Mystery
The challenge:
Telling the right story
Differentiatedvs. Dependable
The challenge:
Defining your white-space
without introducing
outsized risk
