Investors discover the Gisele brand value index.

There are many indexes that track the value of different global brands. But, financial experts in London have now discovered a new index, ‘The Gisele Stock Index’, named after the Brazilian supermodel. Investors who have put their money into brands connected with Gisele endorsements (Volkswagen, Polo Ralph Lauren, Procter & Gamble, Vivo Participacoes) in January 2007 will have seen their portfolio grow by 41%. While during the same period The Dow is down by 4%. So does this mean that Gisele’s management team is good at placing her with successful brands or does a Gisele endorsement really justify her $45m annual income? Smart investors will keeping an eye on Gisele’s next brand endorsement to find out.   

Posted By: duncanmackay

 


Posted By: lizbigham

SUSTAINABILITY: WHAT BRANDS CAN DO BETTER

The eve of Earth Day 2011 seems like a good time to point out a few things brands across sectors can do to improve their sustainability. (In fairness, I’ve also pointed out things I can do to improve my sustainability; see * bottom.)

First let’s be clear: “sustainability” resides not at the eco-preachy fringes but squarely in the common-sense center, that is, the place where the vast majority of consumers’ heads already are—and therefore, the place that brands that want to be competitive should be, too. According to Procter & Gamble’s research, fully two-thirds of consumers say they’d choose a more sustainable product over a less sustainable competitor as long as they don’t have to pay more or sacrifice product performance.

So here, a few common-sense sustainability improvements:

CPGs
Why does any brand still use wasteful and unnecessary packaging? For example, plastic clamshell packaging enclosing a product already encased in plastic? Some rising mass market brands stand out for their smart packaging: Seventh Generation has a new liquid laundry detergent that comes in a recycled cardboard outer container, or Method’s super-concentrated detergent that comes in a much smaller (still plastic) bottle than competitors. Other standouts already noted on the JACK blog include Puma. I wonder when a major CPG company will truly stand out by developing a cool “refillable” option.

QSRs 
Eco-purists would complain that there’s something inherently unsustainable about fast food, but Chipotle Mexican Grill stands out as an admirable exception: their ingredients are organic and sourced locally when possible, and their cups, napkins and other tableware are made from recycled materials. They’re eco-friendly without being even slightly preachy. Which really makes me wonder: why doesn’t every quick service brand follow this example? And someone please explain why Dunkin’ Donuts still uses styrofoam (which can’t be recycled and is lethal to some animals) despite all the guff they get online for doing so?

Service brands
Why don’t sectors that have historically relied on direct mail better leverage data-mining and permission marketing to greatly reduce wasteful mailings? Case in point: I get at least two mailings a month from a cable company for a service—a service to which I already subscribe. Huh? Or the banks and credit card companies that have been sending me mailings for longer than many people have been alive—despite the fact that I have never asked for or responded to their mailings.

Consumers don’t want to be preached to and can’t afford to pay a premium for sustainability. But brands can exercise common sense and thereby behave not just more sustainably. Sure, there might be a short-term cost of change—but in the long term, to paraphrase British retailer Marks & Spencer, sustainability has to be plan A, because there is no plan B—either for the planet or for brands who refuse to change to be more competitive.

(*Sustainability mea culpas: I could improve my sustainability by taking the train instead of flying for business day trips, running fewer loads of laundry [there is no Energy Star rating for clothes dryers for a reason] and bringing a refillable cup for my dozens of daily Starbucks.)


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