1. Proprietary and confidential Do not distribute Making Competitors Irreverent DAVID A. AAKER Vice Chairman, Prophet Blog: davidaaker.com Top Marketing Forum, Moscow April, 2012

2. Brand Relevance1 Brand Relevance Market Dynamics

3. Brand Relevance2 Asahi-Kirin Beer War

4. Brand Relevance3 Brand PreferenceBrand Relevance  SUV  BMW Select Brand to Buy  Lexus  BMW  Cadillac Select Product Category or Subcategory Customer Decision Process Determine Brands To Consider

5. Brand Relevance4 Routes to Winning Brand Preference Brand Relevance VS. Competitor Brand Not Preferred Competitor Brand Not Considered Winning Means

6. Brand Relevance5 Innovation Continuum Innovation Incremental Substantial Transformational Offering Enhancement Noticeable Impact on Brand Preference New Category Or Subcategory Game Changer Body Armor with duPont Kelvar Hybrid & Electric Fleet

7. Brand Relevance6 Test—New Category/Subcategory? Can we deliver? Is there a “must have”? Business worthwhile? Legs?

8. Brand Relevance7 The Payoff 1982-1998 No Competition

9. Brand Relevance8 The Pay Off 108 Business launches: Those creating new categories subcategories: 14% of sample 38% of revenue 61% of profits McKinsey Study: 1,000 firms, 40 years New entrants Return premium over average for their industry First year 13% 3% in fifth year 1 % in tenth year New Product Success Correlated with Differentiation

10. Brand Relevance9 How? Create Barriers to Competitors Become the Exemplar

11. Brand Relevance10 Create Barriers Execute over the top Continuously innovate Branded differentiators Nano Shuffle Touch Ipad

12. Brand Relevance11 Alpine Class Fill OuterStyle The Power of Brands

13. Proprietary and ConfidentialPROPHET12 Branded Ingredients Shampoo/Conditioner With Weightless Moisturizer

14. Brand Relevance13 Branded Service

15. Proprietary and ConfidentialPROPHET14 Branded Package

16. Brand Relevance15 Branded Technology

17. Brand Relevance16 How? Create Barriers to Competitors Become the Exemplar

18. Brand Relevance17 Become the Category or Subcategory Exemplar The Exemplar Brand Represents Category or Subcategory Defines Connects

19. Brand Relevance18 Becoming an Exemplar Market the category/subcategory and not the brand Be the early market leader Be the authentic brand

20. Brand Relevance19 Swiffer Exemplar Brands iPod

21. Brand Relevance20 You do not merely want to be considered just the best of the best, You want to be considered the only one who do what you do. Jerry Garcia, The Grateful Dead

22. Brand Relevance21 Staying Relevance No longer make what customers are buying Lose Energy Or Credibility Energy bar for Women

23. Brand Relevance22 Brand Relevance Market Dynamics

24. Proprietary and confidential Do not distribute Making Competitors Irreverent DAVID A. AAKER Vice Chairman, Prophet Blog: davidaaker.com Top Marketing Forum, Moscow April, 2012