Brand Road Map

Strengthening the Jewish Federation System through Brand Management Federation Leadership Institute February 10, 2009

Today’s agenda 1. How brands create value • • • •

Clear focus on a compelling idea secures revenue Consistent communication strategies build understanding Brands managed like business assets Effective re-branding assets

2. The UJC/Federation System brand 3. Recommendations & Next Steps

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A clear focus on compelling idea attracts donors

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In today’s world, people do not shop like this...

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… but like this

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Everything we do defines our brand Public Behavior Relations Community Relations

Advertising

Name

Environments Internal Communications

Brand

Promotional Material

Identity / Logo

People

Web Products Presence & Support

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The definition of a “brand idea”

What It Is • Simple • True • 3-5 word distillation • Benefit(s) that the brand “promises” consumers • “Heart and soul” of the brand

What It’s For • Guide strategic and marketing decisions • Screen out of brand, inappropriate marketing activities • Employees and partners understand what the brand most fundamentally means

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What does this mean for non-profits?

A brand is a relationship between the organization and donor that secures future revenue by establishing preference and loyalty

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A well-known, trusted non-profit brand secures donations more effectively Generic Nonprofit We Need Your Help to Ensure Your Retirement Security

We Need Your Help to Ensure Your Retirement Security

Generic Nonprofit Bill Novelli Chief Executive Officer

Bill Novelli Chief Executive Officer

Dear New Member,

Dear New AARP Member,

A secure retirement has always been a part of the American Dream. Sadly, that dream is becoming increasingly difficult to reach for many American citizens.

A secure retirement has always been a part of the American Dream. Sadly, that dream is becoming increasingly difficult to reach for many American citizens.

Social Security needs protecting and strengthening. Many businesses have decided to cut employee benefits. The cost of health care is skyrocketing. Many seniors have to continue working or must reenter the workplace only to face age discrimination. And too many Americans are saving too little for the future.

Social Security needs protecting and strengthening. Many businesses have decided to cut employee benefits. The cost of health care is skyrocketing. Many seniors have to continue working or must reenter the workplace only to face age discrimination. And too many Americans are saving too little for the future.

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The “Pink Ribbon” brand has a clear message and strong following

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The Obama Campaign energized its target audience with one clear idea

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Building Stronger Brands Online Sizeable online giving being driven by strong brand building & promotion campaigns Annual Online Giving Traditional Brands

New Brands

American Cancer Society

$ 30,131,986

American Red Cross

$157,700,000

Catholic Relief Services

$ 15,261,321

National Multiple Sclerosis Society

$ 26,200,000

Salvation Army

$ 45,964,040

Save the Children

$ 15,951,997

United Way of America

$140,949,586

World Vision

$ 37,100,000

$13,627,897

$85,124,606

Source: The Chronicle of Philanthropy 2006

$750,000,000

Source: Official Websites

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A clear focus on compelling idea attracts donors • A brand is a relationship between the organization and donor that secures future revenue by establishing preference and loyalty • Behind every great brand is a great idea • Focused integrated marketing campaigns make a difference for both traditional and emerging brands

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Consistent communications build understanding

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United Way Brand Architecture

United Way of Southeastern Pennsylvania

United Way of Greater St. Louis

United Way of Greater Los Angeles

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No matter where you are, your local YMCA looks and sounds the same

Regional Chapter

Logo

Mission Statement

Dallas

To put Christian Values into practice through programs that build healthy spirit, mind and body for all.

St. Louis

To put Christian principles into practice through programs that build healthy spirit, mind and body for all.

Los Angeles

To put Judeo-Christian principles into practice through programs that build healthy spirit, mind and body for all.

Local chapters tailor message for geographic differences

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The Red Cross is consistent, with certain geographic allowances

Regional Chapter New York

Atlanta

Arizona

Logo

Mission Statement The American Red Cross, a humanitarian organization led by volunteers…will provide relief to victims of disaster and help people prevent, prepare for, and respond to emergencies Your Metro Atlanta Red cross is part of a nationwide network dedicated to saving lives and helping people prevent, prepare for and respond to emergencies. The American Red Cross, a humanitarian organization led by volunteers…will provide relief to victims of disasters and help people prevent, prepare for and respond to emergencies. 17

American Cancer Society adopted clear brand standards The American Cancer Society was historically overshadowed by its events

It adopted brand standards in order to benefit from their high profile events

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Blue Cross Blue Shield Brand Leadership Though recognized as the leading Brand in Healthcare industry, it actually consists of 39 independent companies with complex branding and varied naming Most Members

#1 Brand

Most Providers

Financial Strength

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BCBS Brand Architecture

Blue Cross Blue Shield of Florida Primary Branding

Double Branding

Single Marks

Blue Cross Blue Shield of Michigan

Horizon Blue Cross Blue Shield of New Jersey Wellmark Blue Cross Blue Shield

Blue Cross of Idaho Blue Shield of California

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Consistent communications build understanding • Consistency in what you say: successful federation brands communicate a common mission • Consistency in how you look: successful federation brands go to market with one dominant logo

• Brand consistency extends to product and event branding • This consistency helps strengthen leadership position and increase fundraising power and ability

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Re-branding initiatives can successfully unite federated systems

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America’s Second Harvest historically lacked a cohesive identity

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The ‘08 re-brand united over 200 organizations under new identity

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The organization is currently migrating both system and local brands System brand migration:

Local brand migration:

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Re-branding initiatives can successfully unite federated systems • Research showed the America’s Second Harvest brand was not maximizing its impact for the organization • To increase the brand’s value to the organization, America’s Second Harvest adopted a new identity for all local chapters to implement • The local chapters are currently in a migratory process to implement the new Feeding America name and identity

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Today’s agenda 1. How brands create value • • • •

Clear focus on a compelling idea secures revenue Consistent communication strategies build understanding Brands managed like business assets Effective re-branding assets

2. The UJC/Federation System brand 3. Recommendations & Next Steps

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How does the UJC/Federation System brand perform in this context?

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UJC/Federation system increasingly faces new challenges

• Declining and aging donor base • Higher mobility of population • Economy in decline • Stronger branding efforts by leading nonprofits • Increasing use of online fundraising • Increasing competition for share of wallet and mind

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Steady Donor Decline Over Two Decades

Donors (U.S. Only) 900,000

813,903

800,000 700,000 600,000 500,000 400,000

491,115

300,000 200,000 100,000 19 88 19 89 19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07

0

Source: UJC Progress Report

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Mobility presents additional challenges People who recently moved to a new community:

•

less likely to be familiar with local Jewish Federation

•

less likely to be contacted by local Jewish Federation

•

less likely to give $ to local Jewish Federation

Source: Sid Groeneman and Tom Smith, The Impact on the Jewish Community of Jewish Geographic Mobility

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Brand Research provided key brand measures Brand Measurement Dashboard

Brand Awareness

Satisfaction

Growth

Brand Affinity

Renewal

Recommendation

Federations 41% 50%

100%

40%

80%

800

30%

60%

600

20%

40%

UJA 38%

UJC 11%

10%

31%

20%

'08

599

569

400

100%

'08

0 '05

'06

76%

100%

83%

100%

80%

80%

80%

60%

60%

60%

40%

40%

40%

20%

20%

20%

66%

524

200

0%

0%

–7%

'07

0%

0% '08

0% '08

'08

(thousands)

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Of the largest, UJC is the only federated system with misaligned branding 16 of the largest 20 non-profit organizations are based on a federation model Organization

2002 Revenue (billions)

# of Affiliates

National Council of YMCAs

4.27

972

American Red Cross

4.09

940

United Way of America

3.71

1,400

Catholic Charities USA

2.62

179

Salvation Army

2.16

Goodwill Industrious International

2.06

207

United Jewish Communities

1.96

157

Boys & Girls Clubs of America

1.08

3,300

The Nature Conservancy

0.97

71

American Cancer Society

0.82

14

Gifts in Kind International

0.80

Fidelity Investments Charitable Gift Fund

0.76

Habitat for Humanity International

0.75

2,100

Planned Parenthood Federation of America

0.69

125

Boy Scouts of America

0.67

300

Girl Scouts of America

0.66

300

Volunteers of America

0.65

44

YWCA of the USA

0.65

302

Easter Seals

0.65

90

Feed the Children

0.55

Federation Other

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Brand Audit: Many faces to the public

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Implicit Naming Consistency Has Emerged *Figures represent 2006 Annual Campaign

136

Jewish Federation of geography Geography Jewish Federation

10

____/Jewish Federation of geography

7

Jewish Community Federation of geography United Jewish Federation of geography

Unique Names

UJA Federation of geography

4 United Jewish Community of geography

87% of Federations

7% of Federations

4% of Federations

2% of Federations

73.7% of Total Donors

3.5% of Total Donors

18.5% of Total Donors

4.3% of Total Donors

69.9% of Total Gift Value

4.5% of Total Gift Value

22.3% of Total Gift Value

3.3% of Total Gift Value

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Today’s agenda 1. How brands create value • • • •

Clear focus on a compelling idea secures revenue Consistent communication strategies build understanding Brands managed like business assets Effective re-branding assets

2. The UJC/Federation System brand 3. Recommendations & Next Steps

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System Branding Options Common Tagline

Common Naming Architecture

Common Product Naming

Consistent Naming

Common Mark

One Brand (name and mark, etc.)

Consistent continental branding Live Generously™

e.g: ___/Jewish Federation of geography

• Broad federation participation – indicates unmet need

• Preserves brand equities built up in local communities

• Insufficient to establishing effective continental brand

• Almost 90% already do • Building block of common branding

e.g: ___ Annual Campaign, __Foundation

• Aligns well with UJC mission • Reinvigorates core product

e.g: United Way of geography Red Cross of geography

New visual representation of common brand attributes

• Clearest brand architecture for more mobile population

• Visual is strongest element of brand identity – highest recall – and provides for stronger brand protection

• Significant impact on local federation branding

e.g: Habitat for Humanity

• Very effective at raising recognition • Significant impact on local federation branding

• Significant impact on local federation branding

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Benefits of Common Branding Jewish Federations would benefit from: 1. Continental advertising of Federation system value and needs, raising its awareness, stature and appeal 2. Greater exposure and leverage from PR media activities, both locally and continentally 3. Stronger recognition and awareness for mobile segment of population 4. Better economies of scale for marketing best practices, templates and tools 5. More effective promotion and enabling of online fundraising

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Recommendations

1. Build a continental brand strategy based on a compelling idea 2. Adopt a common naming architecture to strengthen our identity across the world 3. Rebrand UJC to clearly reflect the Federation naming 4. Plan a clear path to transition to the new identity 5. Brand common product line, starting with the annual campaign

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The Federations would migrate toward new naming architecture Federation migration toward common naming architecture will occur over 18 months period:

Now

18 months Jewish Federation of geography ____ Jewish Federation of geography

Jewish Federation of geography Geography Jewish Federation ____/Jewish Federation of geography Jewish Community Federation of geography United Jewish Federation of geography

Unique Names

UJA Federation of geography

United Jewish Community of geography

____ / Jewish Federation of geography ____: Jewish Federation of geography Jewish _____ Federation of geography

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New UJC name will align with Federations’ The new name will clearly and succinctly communicate its alignment with Jewish Federations continentally:

Association of Jewish Federations of North America Jewish Federations of North America United Jewish Federations of North America

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Brand Strategy Development: Next Steps

BRAND DEVELOPMENT

BRAND LAUNCH

2009

BRAND BUILD

2010

Board Meeting

Board Meeting

Board Meeting

General Assembly

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Brand Strategy Development Details BRAND DEVELOPMENT

(6 months)

• Development and testing of continental Branded messages • Development of Brand Architecture system, new logo, visual guidelines, etc.

BRAND LAUNCH & MIGRATION (6 - 18 months) •

Integrated, multi-media communications plan and creative development

•

Focused Public Relations and Events Planning

•

Internet Media Placements and Web-based communications - SEO, banner ad development

BRAND BUILD

(18 months +)

• Comprehensive PR • Broad Media Placements (Radio, Print, TV) • Leverage system scale in continental media buy 44

Adam J. Smolyar Senior Vice President Strategic Marketing & Communications United Jewish Communities (212) 284-6505 [email protected]

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Q&A

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Brand Strategy Development Details BRAND DEVELOPMENT

(6 months)

$475k

• Development and testing of continental Branded messages • Development of Brand Architecture system, new logo, visual guidelines, etc.

BRAND LAUNCH & MIGRATION (6 - 18 months)

$950k

•

Integrated, multi-media communications plan and creative development

•

Focused Public Relations and Events Planning

•

Internet Media Placements and Web-based communications - SEO, banner ad development

BRAND BUILD

(18 months +)

$1M+

• Comprehensive PR • Broad Media Placements (Radio, Print, TV) • Leverage system scale in continental media buy 47

Appendix

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Estimated Marketing Spend for Federation System (extrapolation from 77 Marketing Survey responses)

Estimated Marketing Expense = $24.8MM

Distribution by Marketing Channel

12%

$1.6MM

30%

8%

$3.8MM

$14.9MM

17% $4.5MM

13% 20%

Large Intermediate

Large-Intermediate Small

Events Direct Mail Public Relations

Web/Online Collateral Other

Source: Extrapolated from Marketing Directors Survey – 77 Responses

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