Quick Study: Investor Pessimism; Break-Away Brands

It's Raining On Wall Street

This summer, the glass was half-empty for many investors according to the UBS/Gallup Index of Investor Optimism, leaving corporate communicators with one very unhappy

constituent group. According to the report - which was based on interviews with 801 investors - negative business trends are contributing to the general malaise among the

stakeholder group. The culprits: A soft residential real estate market, soaring energy prices, inflation and outsourcing of jobs, to name a few. (See chart)

  • Ninety-seven percent of respondents said energy prices are negatively affecting the U.S. investment climate
  • Sixty-fix percent cite the risk of a real estate crash as another impediment
  • The overall index was down 38 points from January, after a brief rebound following the catastrophic 2005 hurricane season

Ironically, investors expressed optimism for their own investment portfolios, expecting a double-digit average rate-of-return over the next 12 months.

Break-Away Brands

Landor Associates, in conjunction with Fortune magazine, just announced its second annual list of the top ten breakaway brands - that is, the brands with the greatest

percentage gains in brand health and business value as a result of superb brand strategy and execution over a three-year period (2002-2005). They are:

  • iPod - Consumer Electronics
  • Viking - Major Appliances
  • Converse - Athletic Shoes
  • Robitussin - Cough & Cold
  • Best Buy - Electronics Retail
  • Kohl's - Department Stores
  • French's - Condiments
  • Geico - Insurance
  • Dove - Personal Care
  • eBay - Online Auction

The study's findings are based on consumer perception and financial data, as well as the link between changes in brand strategy and the value of the company. Each company in

the top ten rated well based on its interaction with one of the following trends:

  • Building on a foundation of trust
  • Empowering customers with knowledge
  • And forging strong brand communities PRN