Why NFP’s and Foundations should value their Brand
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This is a presentation I have been giving on how/why NFP\’s should use the value of their Brand to maximise their chances of success in seeking corporate philanthroic support
Why NFP’s and Foundations should value their Brand
- 1. Brand Value and Philanthropy “If this business were split up, I would give you the land and bricks and mortar, and I would take the brand and I would do better than you” John Stuart, former CEO of Quaker Oats Douglas Sumner – not to be copied or reproduced without permission © Douglas Sumner. Please do not copy without permission 1
- 2. Key Drivers: Your brand in support of Demonstrate potential Government funding theirs – in exchange for for return on philanthropic support investment How do we Consider a Brand differentiate ourselves based business in a crowded proposition. philanthropic market? Not-For Profit‟s can differentiate themselves Corporate Philanthropy by clearly articulating both the social and business benefit(s) Douglas Sumner – not to be copied or reproduced without permission © Douglas Sumner. Please do not copy without permission
- 3. Understand the value of your brand You can differentiate your requests for Philanthropic support by highlighting the value of your Brand and the business benefits that flow from it. Strong Brands establish long-term and power balanced partnerships. This helps both parties to make decisions that are commercial and more strategic in nature. The starting point is to understand what your Brand is worth Douglas Sumner – not to be copied or reproduced without permission © Douglas Sumner. Please do not copy without permission
- 4. By valuing your Brand, you are, in effect, saying to potential partners: We too have “We have invested 20 years and $2,000,000 (sic) to get built our Brand where we are today. Our Brand That investment has built a powerful Brand that has occupies a position of respect and credibility in the attributes community as well as a Brand that speaks to that can considerable intellectual property around the help you operation of our market place. When considering your Philanthropic support you should know that you are „buying‟ access to the attributes that make up our Brand for your benefit. Given that you are being offered the opportunity to Our Brand leverage off the investment we have made to build our supports a brand and given that access to our Brand helps you to strong achieve your own business goals, we believe that you will philanthropic understand that a commercially viable and balanced level proposition of philanthropic support starts at $500,000. (for instance)” Our Brand is Our Brand is of sufficient scale to support your CSR strong enough aspirations to give you a noticeable return on investment Douglas Sumner – not to be copied or reproduced without permission © Douglas Sumner. Please do not copy without permission
- 5. CONE Power Brand 100 Douglas Sumner – not to be copied or reproduced without permission © Douglas Sumner. Please do not copy without permission
- 6. Brand Value model Income before dividends and interest $9,345,026 Capital $11,000,000 Capital Charge 10.00% Capital Earnings $1,100,000 'Intangible' Earnings $8,245,026 Brand Earning Index 41.00% Brand Earnings $3,380,461 Brand Strength 29 Brand Discount Rate 12.90% Brand Earning Growth Rate 5.00% Year 1 2 3 4 5 Brand earnings 5 year forecast $3,380,461 $3,549,484 $3,726,958 $3,913,306 $4,108,971 Brand Earnings NPV Yrs 1-5 $13,017,437 Terminal Growth 4.00% Terminal Value of Brand $48,014,943 Total Brand Value $61,032,379 Douglas Sumner – not to be copied or reproduced without permission © Douglas Sumner. Please do not copy without permission
- 7. Key Inputs to the Brand Value Model Douglas Sumner – not to be copied or reproduced without permission © Douglas Sumner. Please do not copy without permission
- 8. Brand Value Proposition e.g Major Brand Brand is a major brand in the Not for Profit ‘space’ Directly touch As the leading brand it will be instantly recognised and appreciated Australians Public Interest The Brand is Associated with an issue of significant public interest. Brand will grow The Brand that will becomes increasingly prominent as the scale of problem becomes increasingly apparent Favourable The opportunity to have your brand favourably linked with an issue of real concern to a association key demographic Now is the time The Brand will grow in value and the ‘cost’ of philanthropic support will rise to reflect that brand growth – now is a good time to invest. Product and Service The opportunity to work together to develop health, Lifestyle, technology and advice opportunities services and solutions for the demographic . Connect with The opportunity for marketers to remain connected with consumers through consumers philanthropy Corporate Social The opportunity to demonstrate corporate social responsibility and significant foresight Responsibility by supporting this major and currently underfunded public health issue. Cause related Any number of cause related marketing opportunities. marketing Douglas Sumner – not to be copied or reproduced without permission © Douglas Sumner. Please do not copy without permission
- 9. Conversation with potential supporters (philanthropic value proposition) Brand Benefits Supporting NFP in meeting the challenge makes sound strategic sense for organisations looking to position their Brand through CSR Commercial NFP is seeking expressions of interest from organisations Benefits interested in providing products and services that can assist in supporting the needs of those affected. Philanthropic NFP is seeking expressions of interest from organisations with Support a history of Philanthropic activity and which have a willingness to support the Philanthropic activity of NFP. Flagship Project NFP is seeking Philanthropic support for the introduction of the Flagship initiative. Douglas Sumner – not to be copied or reproduced without permission © Douglas Sumner. Please do not copy without permission
- 10. Target your audience Douglas Sumner – not to be copied or reproduced without permission © Douglas Sumner. Please do not copy without permission
- 11. The benefits for companies from engaged philanthropy New Markets •Philanthropic activities expose companies to new markets and increase market share through exposure New Products •Philanthropic activities can involve the creation of products that meet social needs and increase differentiation. New •Philanthropic activities engage new and existing consumers and contribute to a greater understanding of consumer Customers expectations and behavior. New •Philanthropic activities can lead to the development of cutting-edge technologies and innovative products also Technologies applicable to business use, patenting, and proprietary knowledge. Douglas Sumner – not to be copied or reproduced without permission © Douglas Sumner. Please do not copy without permission
- 12. Brand as a basis for a philanthropy Process Summary Identified a range of relevant brand Value your brand attributes that can be woven into the philanthropic narrative In order to leverage and grow the worth of your Brand to increase philanthropic support: Built a philanthropic Research potential narrative targetting donors for „fit‟ the needs of donors Douglas Sumner – not to be copied or reproduced without permission © Douglas Sumner. Please do not copy without permission
- 13. Thank-you for your attention Questions ? Douglas Sumner – not to be copied or reproduced without permission © Douglas Sumner. Please do not copy without permission
Editor's Notes
- #3: Government funding is cyclical, volatile and subject to the swings and roundabouts of policyQuestion is : “How do we differentiate ourselves in a crowded philanthropic market”?Corporate support is a potential source of significant philanthropic support - but you need to speak the language of business to differentiate yourself- everyone has a worthy cause!Not-For Profit’s can differentiate themselves in this environment when seeking philanthropic support by clearly articulating both the social and business benefit(s) that derive from supporting your cause.Major commercial organisations expend considerable strategic effort and spend considerable capital in developing, building and defending their Brand – they ‘get’ a Brand based business proposition.You can differentiate your requests for Philanthropic by offering your brand in support of theirs – in exchange for philanthropic supportYou can provide ROI (Return On Investment) through:Growth in Brand ValueCommercial opportunities
- #4: Strong Brands establish long-term and power balanced partnerships. This helps both parties to make decisions that are commercial and more strategic in nature. By valuing your Brand, you are, in effect, saying to potential partners: “We have invested 20 years and $2,000,000 (sic) to get where we are today.That investment has built a powerful Brand that occupies a position of respect and credibility in the community as well as a Brand that speaks to considerable intellectual property around the operation of our market place. When considering your Philanthropic support you should know that you are ‘buying’ access to the attributes that make up our Brand for your benefit. Given that you are being offered the opportunity to leverage off the investment we have made to build our brand and given that access to our Brand helps you to achieve your own business goals, we believe that you will understand that a commercially viable and balanced level of philanthropic support starts at $500,000. (for instance)”