BRAND INTIMACY STUDY 2019 USA Are you leveraging the science of emotion? T able of contents Leverage the science of emotion . . . . . . . . . . . . . . . . . . . . . . . . . 3 Why Brand Intimacy? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Financial performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 USA T op 10 Most Intimate Brands 2019 . . . . . . . . . . . . . . . . . . . 6 Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 The smartphone ecosystem . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Millennial findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Global findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Brand Intimacy Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 More on Brand Intimacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Brands matter. Emotion counts. Every year, we produce the largest study of brands based on emotion. The proprietary methodology we have developed over the past decade is based on 20,000 qualitative brand stories, 1,000 hours of insights, and more than 18,000 quantitative interviews and 156,000 brand evaluations. This year we examined how 6,200 consumers across three countries bond with the brands they use and love. We also showcased how brands based on emotion continue to outperform top brands in financial indices such as Fortune 500 and S&P , demonstrating the clear business advantages of leveraging emotional science. This document features only the top 10 ranking brands, and from them we gain key insights or lessons on how they build successful bonds with their customers. By exploring our data dashboard, you can broaden your understanding of nearly 400 brands. If your brand is in our study, consider how you can deepen and enhance the character and intensity of its bonds with consumers. If your brand is not in our study, examine whether you are measuring and leveraging your brands emotional power. We can be the partner to help you get there. All brands have the potential to be intimate with their users. Are you doing everything possible to ensure your brand is building strong bonds? 2 3 BRAND INTIMACY 2019 BRAND INTIMACY 2019 Provides greater price resilience Centers on emotion, which drives decision and willingness to purchase Creates strong sense of loyalty Is customer-centric and based on reciprocity Leverages technology to establish an ecosystem for building bonds Advantages T op intimate brands have double the number of consumers willing to pay 20 percent more We continue to see that consumers are more willing to pay a premium for highly intimate brands than they are for brands with lower levels of intimacy. Price Resilience Why Brand Intimacy? As has been the case over the past 10 years, intimate brands continue to outperform established financial indices for both revenue and profit. We compiled the top 10 companies from the Brand Intimacy Rankings, Standard & Poors 500, and the Fortune 500 lists. For each brand, our teams gathered the reported revenue and profit/loss for 20082017 from their annual reports and form 10-Ks. From the data, we then calculated the average year- over-year growth rates for both revenue and profit for the 10-year period. T op intimate brands deliver superior results in relation to revenue and profit growth, suggesting the importance of emotion in driving the worlds leading brands. Outperforming leading financial indices 0 . 500 0 . 250 0 . 375 0 . 125 0 6 . 37% 44.98% 38 . 60% 20 . 45% 24 . 52% Average profit growth 20082017 4 . 75% 3 . 66% 8.68% 3 . 93% 5 . 01% 0 . 090 0 . 045 0 . 068 0 . 023 0 Average revenue growth 20082017 Brand can be a key asset, helping facilitate demand, encourage growth, ensure consistency of users, and create advantage. Although the world around us has changed dramatically and shaped the way we consume, buy, and sell, approaches to marketing and brand building have largely stagnated. Most feature models and structures from decades ago that tend to focus on the importance of rational, hierarchal thinking and create constructs designed to mimic a deliberate decision-making process. With advances in behavioral science and neuroscience, we now understand that humans process information and make decisions based on emotion. This suggests that to influence and affect decision- making, you have to appeal and connect to peoples emotions. We focus on decoding this emotional science to build strong brands. BRAND INTIMACY 2019 BRAND INTIMACY 2019U . S . T op 10 Most Intimate Brands 2019 QUOTIENT 7 7. 9 1 QUOTIENT 70.9 2 QUOTIENT 69.8 3 QUOTIENT 62.5 4 QUOTIENT 61.4 5 QUOTIENT 58.4 6 QUOTIENT 57.7 7 QUOTIENT 56.2 8 QUOTIENT 54.8 9 QUOTIENT 54.7 10 U . S . Rankings This years rankings are the latest findings in nearly a decade of research and analysis related to Brand Intimacy. In last years U.S. T op 10 Most Intimate Brands, we saw the growing dominance of media & entertainment, and that trend continues in 2019. After three years of leading our study, Apple has been dethroned by Disney, and the top 10 has become increasingly saturated with media & entertainment brands (four out of ten, up from three last year). Automotive has also increased its presence at the top of the rankings. Although it has slid from its #2 spot last year, Amazon maintains a strong position in the rankings. We also have a fast-rising new entrant in fast food brand Chick-fil-A. 6 7