Executive Summary The Authenticity Gap Managing expectations and experience The Authenticity Gap: Managing expectations and experience What people say about you is as important as what you say about yourself. But what happens when what an organization does and says is out of sync with the expectations and experiences of its stakeholders? It creates a gap that is an expensive barrier to success and growth – and in some cases, a destructive force. Instant information and heightened social interaction is creating an environment that every business needs to actively manage. Organizations need a new set of measures that offer a single view of stakeholder expectations and experiences that encompasses both brand and reputation. Fleishman-Hillard and Lepere Analytics have partnered to create a new research methodology to help companies understand and pro-actively manage the ‘Authenticity Gap’ – the gap between consumers’ expectations and their actual experience of a company or brand. The research identifies nine drivers that shape perceptions of a company. The drivers can be tracked over time to monitor the organization’s current authenticity and momentum against key competitors. All findings are country, category and brand specific. The data shows managers what they can do, specifically, to close the gaps between expectations and experience, allowing them create true relationships with consumer audiences – real Authentic Engagement – that drives progress and opportunity. Authentic Engagement Drives organizational purpose, as well as products and profits Bra nd W say hat y an ou you d how beh ave ers oth ou t a y Wh bout ared a h s say d on e s s n ba ptio ce per n tio a t pu Re Authenticity Gap The gap between people’s expectations and experiences Fleishman-Hillard | The Authenticity Gap – Global Executive Summary | 2012 | Qtr 4 © Fleishman-Hillard Inc 1 Executive summary Mind the Gap: Companies face global gap between consumer experience and expectation A new global research project by Fleishman-Hillard and Lepere Analytics found that for every brand studied there is an Authenticity Gap – a gap between peoples’ expectations of the category and their actual experience of the company or brand. In a world where companies and management are under increasing scrutiny, understanding and addressing the expectations and experiences of those we are trying to have a relationship with is fundamental. Companies can no longer succeed if they fail to align their behaviors and their messages with the expectations of their stakeholders. Fleishman-Hillard | The Authenticity Gap – Global Executive Summary | 2012 | Qtr 4 © Fleishman-Hillard Inc 2 Executive summary cont’d The Power of Nine: The drivers of authenticity The DNA of Authentic Engagement is made up of three essential strands: Management behavior, Customer benefits and Society outcomes. Authenticity drivers (full statements) Management Behaviors –More committed to doing the right thing –Having more consistent and stable financial and operational performance –Communicating more frequently and credibly Each strand is made up of three individual drivers. Management behaviors are driven by ‘doing right,’ more ‘consistent performance,’ and ‘credible communications.’ Customer benefits are a combination of ‘better value,’ ‘customer care,’ and ‘innovation.’ And finally, Society outcomes are driven by ‘employee care,’ wider ‘community impact,’ and ‘care of the environment.’ Together these nine authenticity drivers provide the code of conduct to understanding and managing authentic engagement. They map to the agendas of today’s stakeholders and how they engage with a company. Ma nag em en tb Customer Benefits –Taking better care of employees –Contributing to society in a way that has a better impact on my community –Taking better care of the environment Society ou tcom es Society Outcomes Doing right Care of environment Consistent performance Community impact s ior av eh –Offering products and services that are better value –Taking better care of customers –Innovating new and better products and services Credible communications Employee care Better value Innovation Customer care Cu rb st o m e ene fit s For example the ‘consistent performance’ driver maps to the investor agenda while ‘better value’ clearly maps to the consumer agenda. But where in the past these different stakeholder groups might be addressed in isolation, in today’s interconnected world this can no longer be the case. By first understanding the authenticity gap through the eyes of the ‘expert consumer’ companies have a key piece of insight to help them engage more authentically. These insights can be combined with other data to understand the full spectrum of various stakeholder expectations and experiences, creating a roadmap for companies to better align their brand and reputation. The drivers were identified and validated in separate studies in the US, Germany and China through a combination of primary and secondary research. Additional information on the methodology is available in the full reports. Fleishman-Hillard | The Authenticity Gap – Global Executive Summary | 2012 | Qtr 4 © Fleishman-Hillard Inc 3 Executive summary cont’d There is no such thing as “Global”: Consumer expectations vary widely by market Consumer expectations in virtually every one of the 20 categories studied differ from country to country. For example one would think expectations of the automobile category, for something as universal as cars, would be consistent from country to country. But expectations vary widely. -1.9% Doing right Automobiles authenticity gap % 50 40 30 -4.4% 2012 | Qtr 4 Care of environment Authenticity Gap: Category expectation minus Category experience equals 5 Credible communications -3.2% -2.8% Employee care Better value -6.6% +2.5% Innovation -0.3% Doing right 50 40 30 +3.5% 50 40 30 +0.3% Consistent performance 20 Care of environment Consistent performance 10 5 -2.2 % Community impact Credible communications +1.0% +2.8% Employee care Better value -3.3% +0.4% 20 10 Innovation Customer care +1.7% Doing right +2.6% +3.2 % Community impact In the US the category is falling short of expectations on care of the environment. The same is true in Germany but to a much lesser extent. In China however the category is credited with broadly meeting expectations of care of environment. Peoples’ actual experience of brands also differs markedly from country to country. Care of environment Consistent performance 10 ±% gap +1.8% -2.2% +3.6% 20 -0.4% Customer care 5 -1.7% +6.0 % Community impact Credible communications -0.9% -3.9% Employee care Better value -2.5% Innovation Fleishman-Hillard | The Authenticity Gap – Global Executive Summary | 2012 | Qtr 4 -0.5% Customer care © Fleishman-Hillard Inc 4 Executive summary cont’d Corporate behavior matters as much as customer care The drivers that make up consumer benefits may be the most important but consumers are putting more weight on the combination of management behavior and a company’s impact on society than things closer to home such as customer care or innovation. This finding is consistent across all 20 categories in all three countries. In many categories consumers now have a personal relationship with brands that goes deeper than transactions. Such deep, personal relationships are raising consumer expectations and putting greater emphasis on corporate behavior. Customer benefits – better value – customer care – innovation 45% Management behaviors – doing right – consistent performance – credible communications 30% Society outcomes – employee care – community impact – care of environment 25% Category leaders meet or exceed competitors on all 9 authenticity drivers In an overwhelming number of cases, across 20 different business categories in US, China and Germany the market leader met or exceeded expectations for all nine drivers. They also exceeded by a wide margin the expectations that consumers held for the one or two differentiating drivers in the category. el rav care T & r nes n pho tio a art nov Smiver: In ri yd Ke r .8 yd Ke 7 18 . 18 .6 19 .4 22 . 8 26 .8 29 yd Ke e S ter -lin r: Bet n O ve on me ati Custo c a V iver: r Ca ge ra ve ya r e g ra ve ya r de ea yl or g te de r go te ea yl or g te Fleishman-Hillard | The Authenticity Gap – Global Executive Summary | 2012 | Qtr 4 Ca or g te Ca ge ra ve ya r de r go te ea yl Ca r go te Ca Ca Regulation, competitive activity or simply consumers transferring experience and expectations from one category to another are amongst the many forces continuously shaping and shifting stakeholder expectations. Category leaders understand that maintaining momentum requires meeting expectations and engaging authentically on a consistent basis. g pin ue p o l h va © Fleishman-Hillard Inc 5 Executive summary cont’d Only four industries are meeting expectations The categories that appear to have the greatest momentum in meeting consumer expectations in all three countries are: On-line shopping, Major Appliances, Tablets & E-Readers and Pharmaceuticals. Those with the weakest momentum are the Vacation & Travel, Internet Service Providers and Wireless Carriers categories. These seven categories appear consistently in the top/ bottom 10 across all three countries. On-line Shopping Major Appliances Tablets & E-Readers Pharmaceuticals Vacation & Travel Internet Service Providers Wireless Carriers China most optimistic followed by US and Germany All 20 categories in the China study recorded positive momentum, unlike in the US and Germany. Momentum is an indicator of the authenticity gap – how successfully peoples’ expectations of the category are being met (or not) by their actual experiences of the companies and brands. The US is reasonably positive but with lower overall momentum scores across all categories; the Wireless Carrier category is the only category to have a negative score. By comparison, Germany is the least optimistic with four categories recording negative competitive momentum; Life, Property, Health Insurance, Banking & Investing, Shipping & Logistics and Energy. Overall the German scores are in a similar range to the US. Fleishman-Hillard | The Authenticity Gap – Global Executive Summary | 2012 | Qtr 4 © Fleishman-Hillard Inc 6 Study outline The study was conducted in the US, China and Germany across 20 different categories of products and services and studied more than 150 brands. The methodology ‘flips’ the traditional recruitment process and identifies a subset of consumers who self-select categories in which they have a higher level of interest, knowledge, engagement and influence. Qualifying respondents are polled on three key measures: 1. Expectations of the category 2. Actual experience of brands 3. Perceptions of brand momentum 1 ns atio ect Exp f the o ory eg cat 2 ual A c t e n ce i r e ex p ra n d s of b 3 s tion ce p Pe r b ra n d of ntum me mo Each respondent ranks their expectations of the category and their experience of the brand on nine drivers. These drivers map to today’s stakeholder agendas and shape perceptions of a company. The drivers fall into three groups: management behaviors, customer benefits and society outcomes, with customer benefits being the most significant. The authenticity drivers were identified and validated in separate studies in the US, Germany and China. Fleishman-Hillard | The Authenticity Gap – Global Executive Summary | 2012 | Qtr 4 © Fleishman-Hillard Inc 7 Available on request Authenticity Guides Authenticity Guides help clients understand and pro-actively manage the authenticity gap and monitor the organization’s competitive momentum against key competitors. All findings are country, category and brand specific. Available on-request. Custom Guides Custom Guides apply the same methodology in a deep-dive into a particular company or brand and the particular issues and opportunities they face. They can be commissioned in all major markets worldwide and are available on-request. Authentic Engagement Drives organizational purpose, as well as products and profits Bra nd W say hat y an ou you d how beh ave ers oth ou t a y Wh bout ared a sh y a s d on e s bas ption e c r pe ion tat u p Re Authenticity Gap The gap between people’s expectations and experiences Marjorie Benzkofer Global Leader, Reputation Management Practice Senior Vice President & Senior Partner Marjorie.Benzkofer@fleishman.com Fleishman-Hillard Inc. 200 E. Randolph Street, 37th Floor Chicago, IL 60601-6513 United States Phone: +1-312-729-3700 www.fleishmanhillard.com Fleishman-Hillard | The Authenticity Gap – Global Executive Summary | 2012 | Qtr 4 © Fleishman-Hillard Inc 8 Company directory Industry Sectors Technology Public United States Consumer Products & Services Healthcare Manufacturing & Industrials Financial & Professional Services Food & Agribusiness Energy & Utilities Internet Service Providers Discount Retail Pharmaceuticals Fast Food Restaurants AT&T Inc Costco Wholesale Corp Abbott Laboratories Chick-fil-A Inc Verizon Communications Inc Family Dollar Stores Inc AstraZeneca PLC Doctors Associates (Subway) Time Warner Cable Ross Stores Inc Bayer AG Domino’s Pizza Inc DirecTV Sears Holdings Corp (Kmart, Sears) GlaxoSmithKline PLC Burger King Worldwide Inc Charter Communications Inc Sears Holdings Corp Merck & Co Inc McDonald’s Corp Comcast Corp Target Corp Novartis AG Papa John’s International Inc Cox Communications Inc Wal-Mart Stores Inc (Wal-Mart, Sam’s Club) Roche Holding AG Yum! Brands Inc (Pizza Hut, Taco Bell) Smartphones Major Appliances Automobiles Packaged Foods Apple Inc (iPhone) Electrolux Bayerische Motoren Werke AG (BMW) Kellogg Google Inc (Android) General Electric Co (GE) Ford Motor Co Kraft Foods HTC Corporation (HTC) Whirlpool Corp General Motors Frito Lay LG Electronics Inc Sears Holdings Corp (Kenmore) Honda Motor Co Ltd Dean Foods Motorola Inc LG Electronics (LG) Daimler AG (Mercedes-Benz) ConAgra Foods NOKIA OYJ Sub-Zero/Wolf Inc. (Sub-Zero, Wolf) Subaru Hormel Foods Research in Motion (Blackberry) Viking Range Corporation (Viking) Toyota Motor Corp General Mills Volkswagen AG (VW) Nestlé SA Samsung Electronics (Samsung Galaxy) Sanofi Software On-Line Shopping Shipping & Logistics Energy Adobe Systems Inc (Acrobat, Photoshop) Amazon.com Inc (Amazon, Zappos) Deutsche Post AG (DHL) BP Autodesk Inc (AutoCAD) Apple Inc (iTunes) FedEx Corporation Exxon Mobil McAfee Inc eBay Inc (eBay, PayPal) Ryder System Inc Chevron Corp Microsoft Corp (Office, Windows) The Gap Inc (Piperlime) United Parcel Service Inc Royal Dutch Shell Salesforce.com Inc IAC/Interactive Corp (ShoeBuy) United States Postal Service (USPS) Petrobras Schneider National, Inc. Statoil Symantec Corp (Norton) Penske Corp. J.B. Hunt Transport Services, Inc. Tablets & E-Readers Specialty Retail Beverages Banking & Investing Acer (Iconia Tab) Hallmark Cards Inc The Coca-Cola Co (Coke, Diet Coke) Bank of America Corporation Amazon.com Inc (Kindle) Barnes & Noble PepsiCo Inc (Pepsi, Diet Pepsi, Gatorade) Barclays Plc Apple Inc (iPad) Michael’s Stores Nestlé SA (Perrier) JP Morgan Chase & Co (Chase) Barnes & Noble (Nook) Bed Bath & Beyond Inc Danone (Evian) Citigroup Inc Rakuten Inc (Kobo) Best Buy Co Inc Red Bull Fidelity Investments Research in Motion (PlayBook) AutoZone Inc Royal Bank of Scotland Group plc Samsung Electronics (Galaxy) HHGregg Inc State Street Global Advisors (State Street) Huawei (MediaPad) Sun Life Financial Wireless Carriers Vacation & Travel Family & Fast/Casual Restaurants Life, Property, Health Insurance AT&T Inc (AT&T Mobility) Unique Vacations Inc. (Sandals) Biglari Holdings Inc (Steak ‘n Shake) Aetna Inc Qwest Communications (Qwest Wireless) The Walt Disney Co (Disney World) Carlson (TGI Fridays) Allstate Corporation Sprint Nextel Corp Carnival Corp (Carnival Cruises) Chipotle Mexican Grill Inc Berkshire Hathaway Inc (Geico) Deutsche Telekom AG (T-Mobile) American Cruise Lines Nationwide Insurance America Movil (Tracfone) Starwood Hotels & Resorts (Starwood, W Hotels, Sheraton) Darden Restaurants Inc (Olive Garden, Red Lobster) Buffalo Wild Wings Sun Life Financial United States Cellular Corp (U.S. Cellular) Verizon Communications Inc (Verizon) Vodafone Group PLC (Vodaphone) Marriott International Inc (Marriott) Sun Capital Partners (Boston Market) Panera Bread Co Fleishman-Hillard | The Authenticity Gap – Global Executive Summary | 2012 | Qtr 4 Progressive Corp The Travelers Companies Inc United States Automobile Association (USAA) © Fleishman-Hillard Inc 9 Company directory Industry Sectors Technology Public China Consumer Products & Services Healthcare Manufacturing & Industrials Financial & Professional Services Food & Agribusiness Energy & Utilities Internet Service Providers Discount Retail Pharmaceuticals Fast Food Restaurants China Telecom Corp. Ltd. (Tianyi Broadband) Wal-Mart Stores Inc (Wal-Mart) Abbott Laboratories McDonald’s Corp China Mobile Ltd. (China Tietong) Carrefour S.A. (Carrefour) AstraZeneca PLC Papa John’s International Inc Chia Tai Group (Lotus) GlaxoSmithKline PLC Yum! Brands Inc (KFC, Pizza Hut) Beijing Jingkelong Co Ltd (Jingkelong) Johnson & Johnson Jollibee Foods Corp. (Yonghe King) China Resources Enterprise Ltd (Vanguard) Novartis AG Beijing Hualian Group (Hualian) Pfizer Inc Beijing Hehegu Restaurant Management Ltd ( 北京和合谷餐饮管理有限公司) (Hehegu) (Jiaheyipin) China Unicom Ltd. CITIC Networks Co., Ltd. and Chengdu Dr Peng Technology Company Ltd. (Great Wall Broadband Network) Tongrentang Baiyunshan Zhenkongfu Restaurant Management Ltd (真功夫餐饮管理有限公司) (Zhenkungfu) Smartphones Major Appliances Automobiles Packaged Foods Google Inc (Android) LG Electronics (LG) Bayerische Motoren Werke AG (BMW) Kraft Foods Inc Samsung Electronics (Samsung Galaxy) Phillips BYD Auto Co., Ltd (BYD) Amoy Food Ltd Lenovo Group Limited (LePhone) Siemens AG Samsung Electronics Co Ltd (Samsung) Honda Motor Co Ltd (Honda) Kellogg Co Huawei Technologies Co Ltd (Huawei) Yulong Computer and Telecommunications (China Wireless Technologies Ltd.) (Coolpad) TCL Corporation (TCL) NOKIA OYJ Midea Group (Midea) ZTE Corporation Haier Group (Haier) Daimler AG (Mercedes-Benz) Nissan Motor Co Ltd (Nissan) Toyota Motor Corp (Toyota) Calbee Meiji Bright Food COFCO Sichuan Changhong Electric Co (Changhong) Volkswagen AG (Audi, VW) Nestlé SA Software On-Line Shopping Shipping & Logistics Energy Microsoft Corp (Office, Windows) Amazon.com Inc (Amazon.cn) COSCO Group CNOOC Global Tech Limited (Kingsoft) eBay Inc (eBay, PayPal) Evergreen Marine Corporation (Evergreen) Sinopec BeiJing Rising Technology Limited (Rising) alibaba Group (Alipay, Taobao & Tmall) Mediterranean Shipping Company SA (MSC) CNPC Souhu.com, Inc (Sogou (search engine & pinyin method)) 360buy Jingdong Mall (360buy.com) CMA CGM Group (CMA) ChinaCoal Fan Ke Cheng Pin (Beijing) Technology Ltd (凡 客诚品(北京)科技有限公司) (VANCL) Orient Overseas (International) Limited (Orient Overseas Container Line) PetrolChina 58.com (58同城网) The A.P. Moller – Maersk Group (Maersk) Apple Inc (iPhone) Qihoo 360 Technology Co Ltd (360 (Safe Guard & Anti-Virus)) Tencent Holdings Ltd (QQ) Kuehne & Nagel Inc. China Mobile Ltd (Fetion (instant messaging)) Deutsche Post AG (DHL) Tablets & E-Readers Specialty Retail Beverages Banking & Investing Apple Inc (iPad) Cie Financiere Richemont SA (Cartier) The Coca-Cola Co (Coke, Minute Maid) Agricultural Bank of China Lenovo Group Ltd (LePad) Tiffany & Co PepsiCo Inc (Pepsi, Gatorade) Bank of China Samsung Electronics Co Ltd (Galaxy) Li Ning Company Ltd (Li Ning) Nestlé SA (Perrier) Bank of Communications Huawei Technologies Co Ltd (MediaPad) Gome Electrical Appliances Holdings Ltd (Gome) Danone (Evian) China Construction Bank Hangzhou Wahaha Group Co Ltd (Wahaha) Suning Appliance Company Ltd (Suning) DBS Bank Ltd (DBS) Asus Tek Computer Inc (asus Transformer Pad) Tingyu (Cayman Islands) Holding Corp (Master Kang) HSBC Holdings plc (HSBC) Newsmy Ideal Digital Technology Co Ltd (Newpad) Inter IKEA Systems B.V. (IKEA) Google Inc (Google Nexus) Best Buy Co Inc China Merchants Bank A.S. Watson Group (Hong Kong) Ltd (Watsons) Yuandaocn Corporation (Yuandao) Industrial & Commercial Bank of China (ICBC) Wireless Carriers Vacation & Travel Family & Fast/Casual Restaurants Life, Property, Health Insurance China Mobile Ltd (China Mobile) Blackstone Group (Hilton) Bloomin’ Brands Inc (Outback Steakhouse) China Motion Telecom International Ltd. (China Netcom) Marriott International Inc (Marriott) Ruby Tuesday Inc (Ruby Tuesday) American International Assurance Company (Bermuda) Limited (AIA) China Unicom Limited (China Unicom) Hyatt Hotel Group (Hyatt) UCC UESHIMA COFFEE CO.,LTD (UCC Café) Ctrip.com International Ltd (Ctrip.com) Breadtalk Group Ltd. (Din Tai Fung, Toastbox) Qunar.com Inc (Qunar.com) Yoshinoya Co., Ltd. (Yoshinoya) 7 Days Group Holding Ltd (7 Days Inn) Sichuan Haidilao Restaurant Holdings Ltd (四 川海底捞餐饮股份有限公司) (Haidilao) Vodafone Group PLC (Vodaphone) Homeinns Co Ltd (Home Inns) China Lodging Group, Ltd (Hanting Inns & Hotels) Ping An Insurance (Group) Company (Ping An Insurance) Prudential Financial, Inc (Prudential) The China Life Insurance Company Limited People’s Insurance Company of China Holdings Company (PICC) China Taiping Insurance Holding Company Ltd (China Taiping) China Pacific Insurance Group (CPIC) Fleishman-Hillard | The Authenticity Gap – Global Executive Summary | 2012 | Qtr 4 © Fleishman-Hillard Inc 10 Company directory Industry Sectors Technology Public Germany Consumer Products & Services Healthcare Manufacturing & Industrials Financial & Professional Services Food & Agribusiness Energy & Utilities Internet Service Providers Discount Retail Pharmaceuticals Fast Food Restaurants Deutsche Telekom AG (T-Online, T-Com, Congstar) ALDI Einkauf GmbH & Co. oHG (Aldi) Bayer Vital GmbH McDonald’s Corp Arcor AG (Vodafone) Schwarz Gruppe (Lidl) Merial GmbH Yum! Brands Inc (KFC, Pizza Hut) REWE Group (Penny) Pfizer GmbH Burger King NORMA WARENHANDELS-GmbH (Norma) Boehringer Ingelheim Vetmedica GmbH (Vetmedica) Doctor’s Associates Inc (Subway) Lilly Deutschland GmbH (Elanco) coa Holding GmbH (Coa) United Internet AG (1&1, GMX, WEB.DE) O2 Kabel Deutschland Netto Marken-Discount (Netto) Unitymedia MSD Tiergesundheit Intervet Deutschland GmbH (Intervet) Freenet AG (mobilcom, Strato) Novartis Tiergesundheit GmbH (Novartis) MoschMosch GmbH Markov GbR (Heidi und Paul) My Thai Smartphones Major Appliances Automobiles Packaged Foods Apple Inc (iPhone) Electrolux (AEG) Bayerische Motoren Werke AG (BMW) Lorenz Snack World Google Inc (Android) Whirlpool Corp (Bauknecht, KitchenAid) Toyota Motor Corp Funny-frisch HTC Corporation (HTC) BSH Bosch und Siemens Hausgeräte GmbH (Bosch, Gaggenau, NEFF) Fiat Nestlé Miele & Cie. KG (Miele) Daimler AG (Mercedes-Benz) Dr. Oetker General Motors (Opel) Kraft Foods Inc Ford Motor Co Bahlsen GmbH & Co. KG Volkswagen AG (Audi, VW) Leibniz LG Electronics Inc Motorola Inc NOKIA OYJ Phillips Research in Motion (Blackberry) Samsung Electronics (Samsung Galaxy) Kellogg Co Software On-Line Shopping Shipping & Logistics Energy Adobe Systems Inc (Adobe) Amazon.com Inc Deutsche Post AG (Deutsche Post DHL) BP Autodesk Inc (AutoCAD) Apple Inc (iTunes) FedEx Corporation Exxon Mobil Google Inc (Google Docs) eBay Inc (eBay, PayPal) United Parcel Service Inc Shell McAfee Inc DPD RWE Dea Microsoft Corp (Office, Windows) TNT Wintershall Salesforce.com Inc Hermes OMV Symantec Corp (Norton) Primagas Gazprom Germania Tablets & E-Readers Specialty Retail Beverages Banking & Investing Acer (Iconia Tab) Douglas Holding AG (Christ) The Coca-Cola Co (Coke, Diet Coke) Deutsche Bank AG Amazon.com Inc (Kindle) beeline GmbH (beeline) PepsiCo Inc (Pepsi, Diet Pepsi, Gatorade) Commerzbank AG Apple Inc (iPad) Amor GmbH (Amor) Nestlé SA (Perrier) KFW (KFW Bankengruppe) Barnes & Noble (Nook) PANDORA A/S (Pandora) Danone (Evian) Regional Savings Banks* Rakuten Inc (Kobo) Esprit Holdings Limited (Esprit) Red Bull DZ Bank AG Research in Motion (PlayBook) Bijou Brigitte modische Accessoires AG Samsung Electronics (Galaxy) Gerhard D. Wempe KG (Wempe) Huawei (MediaPad) Juwelier Rüschenbeck KG (Rüschenbeck) Wireless Carriers Vacation & Travel Family & Fast/Casual Restaurants Life, Property, Health Insurance AT&T Inc (AT&T Mobility) Carnival Corp (Costa Crociere) VAPIANO SE (Vapiano) Allianz SE (Allianz Versicherungen) Deutsche Telekom AG (T-Mobile) NH Hoteles Vodafone Group PLC (Vodaphone) Accor S.A. (Ibis, Sofitel, Novotel) MAREDO Restaurants Holding GmbH (Maredo) Telefonica (O2) Steigenberger Hotel Group Zurich Gruppe Deutschland (Zurich Deutscher Herold Lebensversicherung AG) ePlus Kempinski Hotels & Resorts debitel Carlson Companies (Radisson) HSBC Holdings plc (HSBC Trinkaus & Burkhardt) ING Groep NV (ING-Diba) UBS AG Unternehmensgruppe Theo Müller (Nordsee) Block Gruppe (Eugen Block Holding GmbH&Co.KG) (Block House) INGKA Holding B.V. (Ikea Food Services) Dinea Gastronomie GmbH (Dinea) Karstadt Warenhaus GmbH (Le Buffet) R+V Versicherung AG (R+V) Generali Holding Deutschland AG (Generali, AachenMünchener) Munich Re (Münchener RückversicherungsGesellschaft AG) (Ergo Leben) Debeka Sparkassen Finanzgruppe (Versicherungskammer Bayern) Fleishman-Hillard | The Authenticity Gap – Global Executive Summary | 2012 | Qtr 4 © Fleishman-Hillard Inc 11 Study details The ability to identify ‘Expert Consumers’ from the general population was developed by Lepere Analytics. The methodology is US Patent Pending. Polling is conducted online for Lepere Analytics by Ipsos – the world’s third largest research company with operations in 84 countries. Online panels are in compliance with International quality standards ESOMAR and AIMRI and certified on key ISO standards. The following metrics and definitions were used in the analysis of the data: Authenticity momentum A net score based on the % of people who say a company is gaining ground minus the % who say it is losing ground. Authenticity gap The gap between peoples’ expectations of the category and their experience of the company (or brand). Expectations and experience Expectations are specific to the category and experience is specific to an individual company (or brand). Each is based on a separate ranking of the authenticity drivers from 1 to 9. Country US Germany China Fieldwork dates 15th - 22nd October 2012 23rd - 29th October 2012 24th - 30th October 2012 Total sample 1,025 1,003 1,014 Category Sample % Sample % Sample % Automobiles 101 10% 89 9% 116 11% Banking & Investing 97 9% 136 14% 114 11% Beverages 100 10% 87 9% 73 7% Discount Retail 130 13% 92 9% 67 7% Energy 166 16% 164 16% 115 11% Family & Fast/Casual Restaurants 132 13% 74 7% 111 11% Fast Food Restaurants 94 9% 51 5% 32 3% Internet Service Providers 98 10% 95 9% 116 11% Life, Property, Health Insurance 153 15% 95 9% 177 17% Major Appliances 82 8% 138 14% 143 14% On-line Shopping 150 15% 131 13% 151 15% Packaged Foods 96 9% 97 10% 51 5% Pharmaceuticals 88 9% 83 8% 60 6% Shipping & Logistics 38 4% 50 5% 53 5% Smartphones 114 11% 104 10% 138 14% Software 130 13% 131 13% 141 14% Specialty Retail 97 9% 74 7% 37 4% Tablets & E-Readers 97 9% 87 9% 119 12% Vacation & Travel 132 13% 113 11% 132 13% Wireless Carriers 117 11% 95 9% 66 7% Fleishman-Hillard | The Authenticity Gap – Global Executive Summary | 2012 | Qtr 4 © Fleishman-Hillard Inc 12 Fleishman Authenticity Guides are published bi-annually based on on-going online polling in 8 sectors and 40 categories. The methodology is proprietary to Fleishman-Hillard and Lepere Analytics. Fleishman-Hillard Inc., one of the world’s leading strategic communications firms, has built its reputation on creating integrated solutions that deliver what its clients value most: meaningful, positive and measurable impact on the performance of their organizations. The firm is widely recognized for excellent client service and a strong company culture founded on teamwork, integrity and personal commitment. Based in St. Louis, the firm operates throughout North America, Europe, Asia Pacific, Middle East, Africa and Latin America through its 80 owned offices. For more information, visit the Fleishman-Hillard website at www.fleishmanhillard.com. Fleishman-Hillard is a part of Omnicom Group Inc. (NYSE: OMC) (www.omnicomgroup.com). Omnicom is a leading global advertising, marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms provide advertising, strategic media planning and buying, interactive, direct and promotional marketing, public relations and other specialty communications services to more than 5,000 clients in more than 100 countries. Lepere Analytics is an independent research firm whose data forecasts company reputation and revenue. The methodology is US Patent Pending, is independently validated and is used by Wall Street investment analysts and portfolio managers. Lepere Analytics was founded in 2007. It is a privately held company, registered in the UK with partners based in London and New York. Polling is conducted for Lepere Analytics by Ipsos – the world’s third largest research company with operations in 84 countries. Online panels are in compliance with International quality standards ESOMAR and AIMRI and certified on key ISO standards. Fleishman-Hillard | The Authenticity Gap – Global Executive Summary | 2012 | Qtr 4 © Fleishman-Hillard Inc 13