Brand Value Drives Business Value -- Snapdragon's Strategic Evolution - Episode Hero Image

Brand Value Drives Business Value -- Snapdragon's Strategic Evolution

The CMO Podcast · · Listen to Original Episode →
Original Title:

TL;DR

  • Elevating Snapdragon from a "tech behind the tech" to a consumer brand requires a strategic pivot to cultural relevance, enabling a 100x increase in global awareness and driving significant business value through increased ASPs and market share.
  • Brand value directly drives business value by creating resonance that leads to action and measurable results, as demonstrated by Qualcomm's Interbrand ranking improvement and Snapdragon's 9.5 billion impressions in one season of Manchester United partnership.
  • Successful brand evolution, like Snapdragon's 2.0 and 3.0 iterations, necessitates formalizing brand ethos, visual identity, and messaging to ensure product truth across diverse categories while adapting to generational attitudes and purpose-driven consumer expectations.
  • Ingredient branding, exemplified by Intel Inside, can be a powerful tool for less tangible products, but requires continuous evolution beyond product category limitations to avoid becoming verticalized and losing market relevance over time.
  • Leveraging sports partnerships, such as Manchester United, offers a massive scale and storytelling platform, generating billions of impressions and high fan awareness, even when the team's on-field performance is suboptimal.
  • Integrating AI into marketing requires a foundational shift to an "AI-powered, human-led" architecture, moving beyond tool integration to a systems approach that scales capabilities, enhances efficiency, and reduces fear through upskilling and training.
  • Building a strong brand ethos requires knowing who you are at your core, which is crucial for navigating distractions and making disciplined decisions, as deviating from brand identity can lead to rapid negative consequences.

Deep Dive

Qualcomm's Global CMO, Don McGuire, asserts that brand value is intrinsically linked to business value, emphasizing that marketing efforts must be demonstrably accountable for driving tangible results. This requires a strategic approach where brand resonance translates into action, ultimately contributing to the company's bottom line. McGuire's experience, particularly with the Snapdragon brand, illustrates how a deliberate focus on brand building, even for an underlying technology, can elevate a company's market position and financial performance. The core argument is that brand is not a separate entity from performance, but rather a critical driver of it.

The transformation of Snapdragon from an internal component brand to a globally recognized consumer brand highlights the power of strategic brand development. McGuire details the journey of building Snapdragon from its foundational awareness in Asia to a global cultural icon, a process that required significant internal advocacy and a shift in the company's perception of brand value. This evolution involved formalizing brand ethos, visual identity, and a clear narrative, essentially creating "Snapdragon 2.0" and now "3.0." The success of this strategy is evidenced by Snapdragon's appearance on prestigious brand lists like Interbrand and Brand Z, and critically, by its impact on business metrics such as increased Average Selling Prices (ASPs), healthy margins, and market share growth. This demonstrates a clear causal chain: investing in brand building leads to increased brand equity, which then directly influences financial outcomes.

Furthermore, McGuire emphasizes the strategic adoption of sports and music as platforms for scaling brand awareness and connecting with audiences on a passion-based level. Partnerships with entities like Manchester United, Formula 1, and music collaborations are not merely transactional sponsorships but are designed to be innovative, storytelling platforms that embed Snapdragon into consumers' lives. The Manchester United partnership, for instance, generated billions of impressions and significant brand affinity, even with the team's on-field performance challenges, underscoring that brand ethos and global reach can transcend immediate sports results. This approach allows Qualcomm to move beyond discussing technology for technology's sake and instead focus on how its products enable people to experience their passions more fully.

In parallel, McGuire addresses the profound impact of AI on marketing organizations, advocating for an "AI-powered, human-led" structure. This involves fundamentally redesigning marketing operations with AI as a foundational layer, rather than an add-on tool. The approach prioritizes upskilling and training to mitigate fear and foster integration, aiming to scale capabilities and improve efficiency. McGuire's personal objective for this AI integration is to overcome human capital limitations and keep pace with the accelerating business environment, particularly in a diversifying company. This strategic imperative to scale and adapt, driven by AI, is presented as a critical factor for future marketing success, emphasizing that clear objectives and customized implementation are key.

The overarching implication is that to thrive in today's market, companies must intentionally build and leverage their brand as a core business driver, adapt to technological shifts like AI with strategic foresight, and connect with consumers through shared passions. This requires a disciplined approach to brand management, a willingness to innovate in marketing partnerships, and a commitment to evolving organizational structures and skill sets. The success of Qualcomm's Snapdragon brand serves as a compelling case study for how these principles can lead to significant business value and market leadership.

Action Items

  • Audit Snapdragon brand strategy: Identify 3-5 product categories where brand ethos is diluted and propose targeted messaging adjustments.
  • Create runbook for AI integration: Define 5 required sections for implementing AI tools, focusing on upskilling and workflow adaptation.
  • Measure brand-driven business value: For 3-5 key initiatives, track correlation between brand resonance metrics and financial outcomes.
  • Develop partnership innovation framework: Document 3-5 creative approaches to sponsorship agreements, focusing on mutual value beyond transactional exchange.

Related Episodes

Key Quotes

"The bottom line will be, the bottom line will be, if you have the right recipe, which we're not going to reveal here because I'm going to reveal on stage, that you know, ultimately what you're trying to do is drive resonance, and resonance drives action, and then that action, you know, turns into results, and then there's results you can share back, excuse me, share back with the organization."

Don McGuire argues that the ultimate goal of marketing efforts is to drive resonance, which in turn leads to action and measurable business results. This perspective emphasizes the need for marketing initiatives to be directly linked to tangible outcomes that can be communicated to the broader organization, thereby justifying their value.

"Well, when I got the call, you know, a couple days before, I was, I was obviously pleasantly surprised and and happy and validated from all the good work we've been doing. So Interbrand tracks a company for three years before they're even eligible to be on the list. Once that sort of process is completed, then it's all about ranking and establishing those rankings. So the first question I asked to Gonzalo, who's the CEO of Interbrand, I said, how did we get here? I mean, I kind of have an idea about basic on what we've been doing, but I'd like to hear like your methodology a little bit more."

Don McGuire expresses his surprise and validation upon learning that Qualcomm was ranked on the Interbrand 100 list for the first time. He highlights the rigorous three-year tracking process Interbrand employs before a company is eligible, indicating that the ranking is a result of sustained effort and strategic brand building.

"So about 65 to 70% is the work we've been doing there. And then I think the other two things that he mentioned were our diversification strategy. The Interbrand 100 list this year is about companies who are entering new ecosystems, building new ecosystems, and disrupting and driving transformation. And Qualcomm, we've been on this diversification journey for the past several years, and it's working."

Don McGuire explains that approximately 65-70% of Qualcomm's Interbrand ranking is attributed to the work done with the Snapdragon brand. He further elaborates that the company's diversification strategy, which involves entering and building new ecosystems to drive transformation, was also a significant factor in their high ranking.

"And then I also learned a lot from the limitations of of that story. That Intel Inside story was limited by product category. Intel as a company sort of missed a couple really key inflection points in the technology sort of revolution. And so over time, that opportunity became smaller and smaller and smaller and more verticalized."

Don McGuire reflects on the limitations of the Intel Inside playbook, noting that its focus was constrained by product categories and that Intel missed key technological shifts. He uses this as a cautionary tale, emphasizing the importance of avoiding similar mistakes and ensuring that brand strategies remain adaptable and broad enough to capture evolving market opportunities.

"So it's really about scale, which is less scary, I'll admit. And so I think the one takeaway, it's like, start with a really solid objective going into it and then customize, you know, your process around that."

Don McGuire advises that when implementing new strategies, particularly those involving AI, it is crucial to first define a clear objective. He shares that his primary objective is to scale capabilities due to being under-resourced, which makes AI a powerful tool for efficiency and growth, underscoring the need to tailor the approach to specific organizational goals.

"So we decided to attach ourselves and the brand to people's passions, sports being one of them. I'm a big believer that people feel passionate about players and teams, not so much leagues. So that's where we've gone with our with our sports partnerships at the team level, on the case of Bryson at the player level, although he is a team too with the Crushers."

Don McGuire explains Qualcomm's strategy of aligning the Snapdragon brand with consumer passions, particularly sports, by focusing on teams and players rather than just leagues. This approach aims to create a more direct and compelling connection with audiences by tapping into the emotional engagement people have with specific athletes and teams.

Resources

External Resources

Books

  • "1985" by Bowling for Soup - Mentioned as a song title used in a historical technology comparison.

Articles & Papers

  • Forbes Top 50 CMO List - Mentioned as an event where the speaker learns from colleagues.
  • Interbrand 100 - Referenced for data showing brand value outperforming market indices.
  • Brand Z - Mentioned as a ranking where Snapdragon appeared for the first time.

People

  • Don McGuire - Global Chief Marketing Officer and Chief Communications Officer of Qualcomm.
  • Matt Spiegel - EVP of True Audience Growth Strategy at TransUnion.
  • Jim Stengel - Host of the CMO podcast, founder of Five, and former CMO of Procter & Gamble.
  • Cristiano - CEO of Qualcomm.
  • Irwin Jacobs - Founder of Qualcomm.
  • Gonzalo - CEO of Interbrand.
  • Mark Pritchard - Successor CMO at P&G, former Chairman of the ANA.
  • Jonathan Adashack - CMO of IBM.
  • Emily Kitchen - Mentioned as a peer CMO from Lenovo.
  • Craig Bromersh - Mentioned as a peer CMO from American Eagle.
  • Lorraine Tuhill - Mentioned as a peer CMO from Google.
  • Bozoma Saint John - Mentioned as a speaker at the IAB Annual Leadership Meeting.
  • Remy Bader - Mentioned as a creator speaking at the IAB Annual Leadership Meeting.
  • Eric Cantona - Mentioned for his involvement in a Manchester United front-of-shirt launch video.
  • Bryson - Mentioned as a player with a partnership.
  • Kaleo - Mentioned as an artist from Iceland who is a Manchester United fan and performed a song for the brand.
  • Brian Nickel - CEO of Starbucks.

Organizations & Institutions

  • Qualcomm - Company that developed Snapdragon.
  • Deloitte - Mentioned for its CMO program and hosting an event.
  • TransUnion - Partner of the CMO podcast, providing data and identity resolution.
  • ANA (Association of National Advertisers) - Mentioned for its Masters of Marketing event and CMO Growth Council.
  • Intel - Previous employer of Don McGuire, known for the "Intel Inside" playbook.
  • AT&T Wireless - Previous employer of Don McGuire.
  • Kyocera - Previous employer of Don McGuire.
  • Sierra Wireless - Previous employer of Don McGuire.
  • Amp Mobile - Previous employer of Don McGuire.
  • New England Patriots - Mentioned as an example team for performance analysis.
  • Pro Football Focus (PFF) - Data source for player grading.
  • Vans - Brand that made an impact on Don McGuire as a child.
  • Starbucks - Brand that is part of Don McGuire's daily life.
  • The Ad Council - Don McGuire sits on the board.
  • Wall Street Journal CMO Council - Don McGuire is on the council.
  • Interbrand - Organization that tracks brand value.
  • Meta - Mentioned for its partnership with Mercedes and WhatsApp.
  • Microsoft - Mentioned as a partner of Qualcomm.
  • Aramco - Mentioned as a partner of Qualcomm.
  • Manchester United - Football club with a front-of-shirt partnership with Snapdragon.
  • Mercedes - Partner of Qualcomm, specifically with Formula 1.
  • Formula 1 - Racing series where Snapdragon has a partnership.
  • LIV Golf Tour - Mentioned as a sports platform.
  • Live Nation - Partner for Snapdragon Sound Studio series and original content.
  • Sony Pictures - Partner for Snapdragon Studios.
  • IBM - Mentioned for its AI strategy and Jonathan Adashack.
  • Proficient - Company helping Qualcomm with its AI systems architecture.
  • Five - Production company for the CMO podcast, offering programs for entrepreneurs and business leaders.
  • Nasdaq - Location of Qualcomm's 40th-anniversary celebration.
  • Snapdragon Stadium - Location of Qualcomm's employee celebration.
  • Chipotle - Previous employer of Brian Nickel.
  • P&G (Procter & Gamble) - Mentioned in relation to Mark Pritchard and brand history.
  • General Motors - Mentioned as a speaker at the IAB Annual Leadership Meeting.
  • Major League Soccer - Mentioned as a speaker at the IAB Annual Leadership Meeting.

Tools & Software

  • Snapdragon - Qualcomm's brand for mobile processors and related technology.
  • Writer - AI tool deployed broadly within Qualcomm.

Websites & Online Resources

  • cmo.deloitte.com - Website to learn more about the Deloitte CMO program.
  • transunion.com/clarity - Website to learn more about TransUnion's services.
  • iab.com/alm - Website to learn more about the IAB Annual Leadership Meeting.

Podcasts & Audio

  • CMO Podcast - The podcast where this conversation is taking place.

Other Resources

  • AI (Artificial Intelligence) - Discussed as a transformative technology for marketing and organizations.
  • Identity Resolution - A deep analytical problem that TransUnion addresses.
  • Measurement - A key component for understanding marketing performance.
  • 360 View of the Customer - TransUnion's approach to combining data for a full customer picture.
  • Brand Value vs. Business Value - A topic Don McGuire presented on.
  • Ingredient Brand - A term Don McGuire dislikes, preferring to focus on relevance and resonance.
  • Snapdragon 2.0 / 3.0 - Refreshed brand ethos and evolution for Snapdragon.
  • Brand Ethos - The core principles and values of a brand.
  • Manifesto - A statement of a brand's beliefs and purpose.
  • Snapdragon Sound Studio Series - A music-related initiative by Snapdragon.
  • AI Powered Human Led - Tagline for Qualcomm's marketing team's approach to AI integration.
  • Assistant's Architecture - An organizational structure centered around AI.
  • AI Systems Architecture - A foundational layer for integrating AI tools and workflows.
  • Brand Governance - A process that can be largely automated by AI.
  • Super User FOMO - A strategy for driving adoption of new tools.
  • Purposefulness - A concept related to brands doing good and aligning with consumer values.
  • Sports Partnerships - A strategy for scaling brand awareness and connecting with audiences.
  • Front of Shirt Partner - A type of sponsorship agreement, exemplified by Manchester United.
  • Pass Through Rights - An innovative element in sponsorship contracts allowing partners to be integrated.
  • AI Council - A group within Qualcomm that vets new AI tools and concepts.
  • IP (Intellectual Property) - Mentioned in the context of data security with AI tools.
  • Creator Economy - Implied through discussions of photography, videography, and content creation.
  • Digital Curve - Staying ahead of technological advancements.
  • Brand with Purpose - A concept where brands align with social causes.
  • The Bigger Picture - A marketing philosophy promoted by Deloitte.
  • Performance Marketing - Discussed in relation to brand marketing.
  • Brand Resonance - The emotional connection a brand creates with its audience.
  • Brand Affinity - The positive feeling consumers have towards a brand.
  • Brand Character - The attitude, tone, point of view, and voice of a brand.
  • Brand Ethos - The fundamental beliefs and guiding principles of a brand.
  • Brand Archetypes - Implied through the discussion of brand character and identity.
  • Consumer Behavior - A factor in modernizing retail stores.
  • Menu Simplification - A strategy to reduce complexity and improve focus.
  • Roots and Core - Returning to a brand's foundational identity.
  • Founder's Spirit - Staying true to the original vision of a brand.
  • Scalability - Using AI to increase marketing capabilities.
  • Efficiency - Using AI to optimize processes and resource allocation.
  • Bureaucracy - A potential outcome of organizational size that AI can help mitigate.
  • Human Capital - The workforce and skills within an organization.
  • Pace of Business - The speed at which business operations and market demands evolve.
  • Diversification - Expanding into new product categories and markets.
  • New Ecosystems - Building and entering new market environments.
  • Disruption - Introducing significant changes to an industry.
  • Transformation - Fundamental changes in how a company operates or its market position.
  • Partnerships - Collaborations with other companies or entities.
  • Innovation - Developing new products, services, or processes.
  • Storytelling Platform - Using content and partnerships to communicate a brand's narrative.
  • Content Creation - Producing original material for marketing and engagement.
  • Qualitative and Quantitative Measurement - Methods for assessing the effectiveness of marketing efforts.
  • Key Performance Indicators (KPIs) - Metrics used to track progress towards objectives.
  • Sponsorship Agreements - Contracts for marketing partnerships.
  • Innovation in Contracts - Incorporating creative elements beyond traditional exchanges.
  • Cause Marketing - Aligning a brand with a social cause.
  • Product Truth - The factual accuracy and integrity of product claims.
  • Cross-Pollination of Partnerships - Integrating different partnerships to create synergistic effects.
  • Technology Integration - Using technology to enhance partner operations.
  • Two-Way Partnership - A collaborative relationship with mutual benefits.
  • Transactional Relationship - A partnership based on exchange rather than deep collaboration.
  • Creative Partnership - A collaboration focused on innovative approaches.
  • Digital Curve - Staying current with digital trends and technologies.
  • Music Partnerships - Leveraging the music industry for brand engagement.
  • Photography/Videography - Creative fields enabled by technology.
  • Creator's Ideation Process - The conceptualization phase of creative work.
  • Physical and Virtual Spaces - Creating environments for brand experiences.
  • Humanoid Robot - Technology showcased at a company celebration.
  • Video Games - Used as an example for historical technology comparison.
  • Computers - Used as an example for historical technology comparison.
  • Mexican Food - A favorite type of cuisine in San Diego.
  • Beaches - A favorite outdoor activity.
  • Airport Experience - A factor in the feeling of returning home.
  • Empathy - A crucial skill for leadership, especially in times of change and fear.
  • Upskilling and Retraining - Developing new skills to adapt to evolving job markets and technologies.
  • AI Integration - Incorporating AI into workflows and processes.
  • Fear of AI - Concerns about job displacement and skill obsolescence due to AI.
  • Accountability - Marketing's responsibility for business results.
  • Discipline - The practice of adhering to a set of principles or methods.
  • Intentionality - Deliberate and purposeful action.
  • Generous Network - The supportive nature of the marketing industry.
  • Sounding Board - A resource for testing ideas and

---
Handpicked links, AI-assisted summaries. Human judgment, machine efficiency.
This content is a personally curated review and synopsis derived from the original podcast episode.