0/<2>=E3 0CA7<3AAA16==:(  2@3AA327<>/>3@(>@ÇB®>/<B73A /;/5/H7<34@=;A1/=<B@3<2A;/@93BA/<20CA7<3AA<¡! ' Australia  oilet pa  B316<=:=5G 4=@3D3@G BG>3=4 E63@3 3D3@G2@=> 1=C<BA 0/57</0=F 87;1/@:3 793/A B@3<25C@C  0/<2>=E3 E/B16;/< 4=@B63 E=@:2A E==2A AC113AA A?C/@32 B63<3E 4/::ABG:3A IN THE HANDS OF THE CONSUMER Contents N 3 2009 BVSV]bbSabP`O\Ra VOdSc\QS`bOW\Tcbc`Sa B]ROgaeW\\S`a QO\PSR]e\T]`bVS Q]c\bb][]``]e 1=<A17=CA<3AA B631=;>/<G 0@/<2A/@30C7:B7<B63 =4B63@3137D3@<=B0G 6 "A6/>3C> Why is everyone talking cash flow? SCA’s business school teases out the what’s and the why’s. $A6/>31=D3@ A strong brand is priceless. Shape asks some of the marketing industry’s sharpest minds for the recipe for branding success. $³ B@3<2A Bag in a box – the little package with the big suc- cess. Plus the latest in lingerie fashion as well as Ikea’s trend expert on furniture trends for the fall. B316<=:=5G What makes toilet paper different, and why can’t you use it to dry your hands? !>@=47:3 Nature is Jim Carles’ life, at work and at home. For the UN, he keeps watch over the world’s forests. !=CB:==9 With a climate that ranges from desert-dry to floodwater wet, Australia is a land of extremes. Australians keep track of every little drop of water. %³ 'A1/7<A723 Backyards made beautiful, plus consumers talk about Libresse Hipsters. !"31=<=;G Which SCA business area is holding up best? I !  ' K A6/>3A1 /  ! A1/AVO^SWaO[OUOhW\ST`][A1/ ^`W[O`WZgUSO`SRb]eO`RaVO`S V]ZRS`aO\RO\OZgabaPcbOZa]T]`X]c`\OZWaba]^W\W]\ZSORS`aO\R]bV S`aW\bS`SabSRW\A1/¸aPcaW\SaaO\RRSdSZ]^[S\bAVO^SWa^cPZWaVSR T]c`bW[Sa^S`gSO`BVS\SfbWaacSWaRcSW\2SQS[PS` ' /RR`SaaA1/ 1]`^]`ObS1][[c\WQObW]\a0]f%& %!'% Ab]QYV]Z[BSZS^V]\S"$&%&&#4Of"$&$%&&! >cPZWaVS`0]RWZ3`WYaa]\;O\OUW\USRWb]`/\\OASZPS`U 3RWb]`WOZ/\\OASZPS`UA1/O\R/\\O5cZZS`a5`O\:W\R /^^SZPS`U2SaWU\B]\S9\WPSabZ/^^SZPS`U >`W\bS`A`[ZO\Ra5`OTWaYO/09Ob`W\SV]Z[ 1]dS`^V]b]/ZSfO\RS`>WVZ A1/AVO^SWa^cPZWaVSRW\AeSRWaVO\R3\UZWaVBVSQ]\bS\baO`S^`W\bSR]\5`O^V]1]bS&U`O[T`][A1/4]`Sab>`]RcQba@S^`]RcQbW]\]\ZgPg ^S`[WaaW]\]TA1/1]`^]`ObS1][[c\WQObW]\aBVS]^W\W]\aSf^`SaaSRVS`SW\O`SbV]aS]TbVSOcbV]`a]`^S`a]\aW\bS`dWSeSRO\RR]\]b\SQSaaO`WZg `STZSQbbVSdWSea]TbVSSRWb]`a]`A1/ G]cQO\acPaQ`WPSb]A1/AVO^S]``SORWbOaO^RTObeeeaQ OQ][ 30 20 23 21 P   in 4=@/:: 7<'$$ when America’s Scott Paper Company launched a paper dress as a promotion to customers who bought their new line of napkins and toilet pa- per, ecological awareness didn’t exist. The dress was a tremendous success, and in four months Scott had 500,000 reorders. Soon the choices of paper clo- thes were astonishing. They includ ed paper dresses, hats, bags, slippers and bikinis, and American women loved them. Women could even dress in the same style as their dinner tablecloths and napkins. Because of their fragi- lity, the dresses could only be worn once or twice, so they never went out of style. They were sold fl at and didn’t need to be tried on. Custo- mers made their choices based on the design and colors. B63 2@3AA3A E3@3 also perfect for advertising. Time maga zine made 6 million dres- ses adorned with its logo. Campbell's Soup launched an A ndy Warhol-inspired dress to promote its line of soups. Robert Kennedy’s 1968 presidential campaign used a star-spangled dress featuring the candidate’s face. Bob Dylan’s visage loomed large on one frock. The pop ar- tist James Rosenquist teamed up with fashion designer Horst to make a paper suit, a feat he reprised years later with Hugo Boss. /4B3@A=;3G3/@A in the limelight, paper dresses disappeared from the mar- ket, and today paper clothes are found only among hot fashion designers who use paper to create collections. Paper has sculptural qualities and is cheaper to experiment with than textiles. The French fashion house Chanel’s spring 2009 haute couture collection inclu- ded headwear made of paper fl owers. The Swedish fashion designer San- dra Backlund uses the Japanese art of origami to make her spectacular creations. The Antwerp designers A.F. Vandevorst and Dirk Van Sa- ene among many other designers fi nd new ideas by working with paper. The exhibition Paper Fashion shows a unique collection of the art of cellulose-based apparel. Paper Fashion will be shown at the Design Museum in London from November 4 to February 28, 2010. B3FB(B=D3;583AA7<5 >6=B=(;=;C/<BE3@>3< B]ROgTOaVW]\RSaWU\S`acaS^O^S`b] Sf^S`W[S\bO\R¿\R\SeWRSOaBVWaWa]\S ]T/\beS`^RSaWU\S`/4DO\RSd]`ab¸a Q`SObW]\a AeSRWaVTOaVW]\RSaWU\S`AO\R`O0OQY Zc\RcaSa]`WUO[Wb]Q`OTbVS`a^SQbOQcZO` Q`SObW]\a 2`SaaSa[ORS]T^O^S`BVWa]\SeOa[ORS W\bVS'$ab]^`][]bS1O[^PSZZ¸aA]c^ /B=>=A1]ZZSQbW]\/bVS\S   "  A1/A6/>3 I !  ' K A6/>3C> [ 3 * 2009 ] SHAPE SC A * 5 Pu rty Getting a grasp on CASH FLOW TEXT: GÖRAN LIND Last December, SCA’s president and CEO Jan Johansson explained that one of the company’s most important tasks was “to turn the cash fl ow situation around as a re- sult of the economic downturn and fi nancial uncertainty.” During the fi rst half of the year SCA's cash fl ow strengthened by an improvement of the operating cash fl ow through, among other things, reduced work- ing capital. Many other companies have set similar priorities over the last year to secure their fi nancial positions. But just what is meant by cash fl ow and what information does it provide? Cash fl ow can be defi ned as the difference between a company’s incoming and outgoing payments during a given period, showing the change in its liquidity. Cash fl ow is usually broken down into what is generated from operations, in- vestments and fi nancing activity. Cash fl ow is positively affected by, among other things, running a sur- plus in operating activities or selling fi xed assets. Similarly, cash fl ow is adversely affected by losses from operations and by new investments. The difference compared with profi tability based on the income statement (profi t before tax and Everyone seems to be talking about cash fl ow. The recent econo- mic downturn has led many companies, including SCA, to focus on it. But what is cash fl ow and why is it suddenly so important? DON'T ERASE! REMARK NEDAN: BILDER FINNS . LÄGG PÅ SHAPE UP SIDAN other items) is that cash fl ow is not affected by depreciation, allocation of costs or other accounting adjust- ments. In a sense, cash fl ow can be said to be more objective than the income statement because it does not include items based on estimates. On the other hand, it provides no indica- tion of future investment needs. Cash fl ow simply indicates whether more money is fl owing into than out of the company. If so, this may be because operations are going well, but also be- cause investments are put on hold. Cash fl ow is often used to assess the value of an investment, such as a new factory. Then the present value* of future cash fl ow is calculated by discounting this at an interest rate determined by the return required by the investor. If the present value, in- cluding any residual value, is greater than the cost of the investment, then it is profi table. *Present value of a cash fl ow of 100 dol- lars over fi ve years when the rate of return required is 7.2 percent is: 100/(1.072 5 ) = 70.63 dollars. Trying to carry a couple of grocery bags in each hand plus a box under one arm is enough to make most people despair. But adding a plastic handle to that cumbersome box can make the job possible. Jan Nilsson is the man who came up with the idea of portable handles for cardboard boxes, one of those clever little inventions that make everyday life easier. The handle has two sharp plastic points attached to a strap with hinges. The points pierce the box and then splay outward. Pre-attached handles can make stacking boxes diffi cult, but a handle that is provided separately solves this problem. The handle can also be made available at checkout counters in stores. Danish girls are starting to enter puberty at increasingly younger ages. Fifteen years ago, girls were 11 years old on average when they developed breasts. Now they’re barely 10. This is shown in a Danish study carried out by Rigshos- pitalet, the Copenhagen University hospital. A growing number of girls are being treated for precocious puberty, a condition in which they develop breasts before the age of 8. At Rigshospitalet the number of such children in- creased 10-fold between 1996 and 2006. Lise Askglaede, the principal author of the study, says one explanation may be chemi- cals that interfere with hormones, such as those found in makeup. She suspects that preserva tives, fl ame retardants and softening agents may also be in- volved. Chemicals are everywhere – in cos- metics, creams, ba- by bottles, textiles and electronic goods. PLASTIC PIECE THAT GIVES YOU A HANDLE SCA FINANCE SCHOOL starting increasingly earlier EN_04-05_09APB3_shape_up_473.indd 5 2009-09-10 14:37:08 The value of their brands has become many successful companies’ most important asset. But building a strong brand is an art. ]QO1]ZOVOa]\S Toyo ta , IBM, Gillette, Intel, BMW, H&M and Moët & Chan- don have them as well. In a global economy, su- per strong brands have become the surest way to spur sales and share prices. The value of the world’s brands today is esti- mated at USD 150 billion. Most companies with international operations nowadays want to be includ- ed among the heavyweights in that elite category of global brands. “The driving force for companies to protect and strengthen their brands is basi- cally economic rationality,” says Dorothy Mackenzie, chairman of the brand agency Dragon Rouge in London. “The brand increases and facilitates sales and creates loyal customers. In a market with growing competition, where the price of produc- tion is steadily decreasing and there are in- creasingly fewer unique technological dif- ferences between products, strong brands have become a key to success.” As a marketing veteran, she has ob- served a major change in the fi eld. “When I started in the advertising in- dustry 25 years ago, brands were very much about pure marketing and one-way communication,” she says. “The com- pany told consumers what it thought were the most important qualities of its product – a laundry detergent that smelled good or coffee with a slightly mellower fl avor. Today, the power has shifted to consum- ers, and companies have been forced into dialogue and greater openness.” 2C@7<5;=AB=4B63 20th century, brands were essentially about a good- looking logo and fl ashy ads that praised the unique qualities of the product or service. Now the competition has inten- sifi ed, and there are more ingredients in the recipe for success. Advertising, public relations and de- sign are important for most brands, but so are corporate social and environmen- tal responsibility, quality and customer service. There are differing views about what the proportions should be and what the mixture should look like – especially when a growing number of different kinds of consultants and advisers such as advertising agencies, PR people, management consultants and corporate social responsibility experts want to be included and compete for corporate in- vestments in branding. But the experts are all agreed on one point – the time is past when you could sell anything with killer advertising. Behind every strong brand today are well-functioning operations. As Ama- zon.com’s founder Jeff Bezos notes, “A brand for a company is like a reputation for a person. You earn reputation by try- ing to do hard things well.” Dorothy Mackenzie says the essence of all strong brands is a good product or service. “The organization also needs to have an understanding of what’s unique about what it offers and its own vision of how it wants to be seen,” she says. At the same time, she says the qualities that make a brand unique have changed. “One example is Dove,” she says, re- ferring to the soap and shower gel made by the multinational Unilever. “For a c B3FB(;/BB7/A/<23@AA=<>6=B=(/:3F/<23@>76: $  A1/A6/>3 I !  ' K A6/>31=D3@ /0=CB0/<2 EVERYONE’S TALKING I !  ' K A6/>3A1 /  % /0@/<22=3A<¸B6/D3/ >3@A=</:7BG7B¸AB630@/<2CA3@ E6=6/A/>3@A=</:7BG long time, the brand stood for soap with added moisturizers. But today the company stands for an alternative and more realistic ideal of human beauty.” A strong connection between brand and operations is also important. “Brands are built in the consciousness of the receiver, not by the company or organization,” says Henrik Evrell of the international brand agency Rewir. “It’s crucial that the strategy that’s chosen to develop the brand works well with the strategy set for the business.” 23>3<27<5 =< the customer and type of service or product, there are a number of widely divergent paths and strategies. Broad-based consumer prod- ucts companies have shifted increasingly from refl ecting the lifestyle and attitude of their target groups to shaping opin- ions themselves. “For a typical B2B company that pro- vides advanced technological solutions, brand building means something com- pletely different,” Mackenzie says. “There, the best communication channel may be the company’s highly specialized engineers. The brand is about the impressions and values that this group communicates to the com- pany’s customers.” A typical pitfall, according to Jacob Fant at Rewir, is copying strategies that work for others without thinking them through. “Instead, it’s a matter of fi nding what distinguishes them and makes them in- teresting and thus makes people want to choose them,” he says. “The challenge in all branding work is to whittle out what is the unique DNA of the organi- zation, those particular qualities that differentiate the company from other players in the market arena.” Among the trends that have had the strongest impact on those who craft brands around the world is the growing power of consumers – both in individual purchasing decisions and through their basic power over increasingly valuable assets in the form of brands. “A brand doesn’t have a personality,” says American marketing guru Al Ries. BVS\]bW]\bVObg]c QO\aSZZO\gbVW\U eWbVYWZZS`ORdS`bWa W\UWa]Pa]ZSbS3dS`g P`O\R[cabSO`\Wba `S^cbObW]\ &  A1/A6/>3 I !  ' K  “It’s the brand user that has a personality. In other words, brands live and die in the target group’s perceptions of them. Some brands attract certain target groups.” As an example he cites Starbucks, the Ameri- can coffee chain. “Starbucks attracts the young and well-to-do,” he says. “It’s these individuals who give the Starbucks brand its personality.” Digital and social media have further tipped the balance of power, increasing consumers’ power over the brand. “One consequence of this is that it’s become increasingly diffi cult to main- tain control over how, when and where the target group chooses to think about or discuss your brand,” Fant says. “The challenge here is to simply give up control of the brand in this respect and rely on the power created in all the social envi- ronments available online.” The opportunity to reach millions via the Internet at almost no cost has created many new missionaries promoting dig- ital brand building, converts who never tire of telling uplifting stories, like the one about two YouTube users and their stunt creating a homemade geyser by putting Mentos candy in Diet Coke. B63A=2/1/A1/23 attracted a mil- lion viewers on YouTube and became a marketing triumph for both companies. Part of the story is that Coca-Cola – the strongest brand in the world – was initially mostly worried about the unex- pected and uncontrolled digital success. Most consumer goods companies are now fl ocking to YouTube, MySpace, Face book and most recently Twitter. In some cases, this eagerness has had unexpected and unintended conse- quences. When the auto manufacturer General Motors invited the public sever- al years ago to make their own commer- cials on YouTube, the result was the re- sult was sharp criticism of the company’s gas-guzzling behemoths. Increasingly, a more common fate – even for expensive digital campaigns – is a quiet life in obscurity. “The general public wants entertain- ment, and that requires more and more to stand out above all the digital noise,” A6/>31=D3@ Mackenzie says. “So I think many com- panies today are about to reassess some of their digital strategies.” She believes instead in new forms of collaboration and sponsorship, working together with established media and new digital players. But she sees the strongest trend in branding outside the traditional market- ing arena – companies’ investments in sustainability for the environment and in the social arena. “If brands have a personality, then more and more people are requiring that person to be both pleasant and responsi- ble,” she says, stressing the importance of long-term work, openness and back- ing those fi ne words with action. She is supported in this by Jacob Fant, who warns brand builders against being overly sensitive to trends. “Right now, for instance, there’s an abundance of messages about the cli- /;=@31=;;=<4/B3³3D3<4=@  3F>3<A7D32757B/:1/;>/75<A³7A /?C73B:7437<=0A1C@7BG mate out there where the connection to reality is seen as more or less contrived,” Fant says. “In that case, there is a risk of undermining the whole issue of environ- mental impact by reducing the general credibility and importance of the argu- ment, which is obviously unfortunate.” /11=@27<5 B= 4/<B diffi cult economic times for many companies present a golden opportunity to polish their brand. “Brand building is more interest- ing in an economic downturn because media budgets are being tightened,” he says. “Marketers are forced to aban- don their tried and true strategies and look for more effective ways to speak to the market. Companies also tend to pare down their operations when times are tough, which provides opportuni- ties for more distinct and, in the long term, stronger brands.” BVS`SaV]cZROZeOgaPSOQ]\\SQ bW]\PSbeSS\bVSP`O\RO\RbVS PcaW\Saa 1cab][S`aO\RQ]\ac[S`a]e\bVS P`O\RUWdS\bVSW``WUVbb]W\bS` ^`SbOZZbVSaWU\OZabVS]`UO\WhObW]\ aS\Ra :]]YOb^c`QVOaSRQ][[c\WQObW]\ OaOac^^]`bW\Uab`ObSUg\]bOaO [OW\ab`ObSUgT]`P`O\RPcWZRW\U 1]\aWabS\QgO\RabOgW\U^]eS`O`S bVSYSgab]Z]\UbS`[acQQSaa0cWZR Oab`ObSUgbVObWaacabOW\OPZS]dS` bVSZ]\UbS`[O\R`S\SeWbU`ORcOZZg `ObVS`bVO\b`gW\Ub]eW\SOag^]W\ba 2O`Sb]e]`YeWbVa]QWOZQVO\\SZa O\RZSbQcab][S`aUSbW\d]ZdSRW\ ab`ObSUge]`Y2WOZ]UcSWaOZeOga []`SW\bS`SabW\UO\RObb`OQbWdSbVO\ T]`QW\UO[SaaOUS]\O\OcRWS\QS A]c`QS(6S\`WY3d`SZZO\R8OQ]P4O\b@SeW` 47D35=:23<@C:3A4=@ 1@3/B7<5AB@=<50@/<2A I !  ' K A6/>3A1 /  ' ;]`S^S]^ZSSf^SQbO Q][^O\gO\RWbaP`O\Ra b]OQbZWYSO^ZSOaO\bO\R `Sa^]\aWPZS^S`a]\   A1/A6/>3 I !  ' K A6/>31=D3@ B635:=0/:consultancy Interbrand’s annual list of the 100 best and most valuable brands in the world provides a good overview of changing fortunes in the struggle between competing global superbrands. Since 1996, fi ve of the top 10 brands have fallen. The big losers can be found, not sur- prisingly, in two industries where the winds of change have blown strongest – technology and fashion. B63B@/<A7B7=<4@=; fi lm to digital memory ousted the company whose name was synonymous with memorable times – think “Kodak moment” – from the list of the 100 best brands in the world. Even the once durable jeans maker Levi Strauss has been hit by the rapid swings in fashion, disappearing off the brand radar. Among the survivors that have seen =  B63B=> Tough times at better days are Sony, whose game con- soles have encountered heavy com- petition from both Microsoft’s Xbox and Nintendo’s Wii. In recent years, though, the company has recovered thanks to its successful ventures in TVs (Bravia), laptops (Vaio) and digital cameras (Cyber-shot). The fast food giant McDonald’s went through a diffi cult patch in the 1990s when the brand was linked to obesity, trans fats and generally un- healthy lifestyles. But with investments in healthier food, french fries made without trans fats and communica- tion that focuses on health, this heavy- weight has polished its golden brand. Times have been harder for Marlboro, whose products are anything but healthy. So far, the tobacco giant has been saved by new consumers in developing markets that have – as yet – fewer restrictions on smoking and tobacco advertising. But in their analysis, the brand ex- perts at Interbrand offer a gloomy fore- cast for both the product and the future of the brand. “Sooner or later, the brand will most likely undergo a decline because a more connected world means that even the growth markets can change their view of the dangers of smoking tobacco fast- er than expected,” they say. Among the newcomers since the 1990s is Finland’s Nokia, which surfed in on the IT wave and has maintained its hold at the top. Together with the Japa- nese giant Toyota, the world’s largest au- tomaker, these outsiders have broken the otherwise solid US dominance. B634/AB3AB1:7;03@in all catego- ries is the search engine Google, which made its debut on the list in 2005. Its competitor Yahoo, on the other hand, has steadily lost ground and is now ranked 56th. One longtime player that made a spec- tacular comeback is IBM. During the 1990s, the computer manufacturer “Big Blue” was almost counted out, but it has since bounced back as a service provider. Even the old maxim “Nobody ever got fi red for buying IBM” took on new luster when the company grabbed sec- ond place from its archrival, the soft- ware provider Microsoft. There’s a battling brewing among top-ranked global brands. Today’s winners can be down for the count tomorrow. [...]... makes the wine undrinkable after a few days The solution was a modern version of the ancient wineskin, a leather pouch that collapses as the wine is emptied, thus preventing air from reaching the wine The modern container is made partly of plastic Bag -in- box sales were a big hit almost instantly Since then, bag -in- box – BIB – has grown into a global industry As more and more of the world’s wine was being... Back then, it was a matter of fi nding a safe method for transporting used battery acid The big breakthrough in packaging came in the late 1960s, when the fi rst boxed wine was introduced The inventor was an Australian winemaker who was looking for a way to sell his red wine in greater volumes without the wine being ruined When a bottle of wine is opened, the contents are exposed to air and begin to... besides wine are stored in BIB More and more nightclubs are getting their vodka, gin and rum deliveries in BIB packaging But wine is still the biggest product in this area The French are far and away the biggest users The French market grew 27 percent last year Even some of the most famous and tradition-bound chateaux in the Bordeaux region have begun selling their wines as bag -in- box t he ingenuity involved... years, becoming increasingly important in the furniture industry “Solid light woods are back, not just because of concern for the environment but because many young designers around the world see wood as trendy -preferably untreated.” Among the innovations this year are new wood stains and methods of joining wood Another trend is to combine different types of wood, a common practice in Denmark in the 1950s... according to the United Nations’ Food and Agriculture Organization (FAO) Most of the cleared area becomes farmland To some extent, shrinking native forests are being replaced with planted forests, which are becoming increasingly important to the health of the planet and to people’s livelihoods The large areas of land where the native forest has disappeared could provide great value to people in the region... put layers together by using adhesive in the embossing That adhesive can be tinted or untinted You can also decorate the paper with colored print.” Just about any property can be pro- duced in theory, she says However, some combinations of properties can be hard to achieve because the properties offset one another in the manufacturing process “It’s a difficult combination to make a super soft, super strong... www.TENA.us SCA investing in fewer, more distinct brands “We work in markets with increasingly tougher competition, both from global and strong local competitors with their own brands Moreover, a lot of retailers have their own brands It’s critical that we continue full-out to build and maintain strong brands In the end, almost all brand work is about increasing competitiveness and profitability in a company. ”... as the country struggles to shake off the worst drought on record Cities are running out of water, once mighty river systems are dying, and bushfires are becoming more frequent and catastrophic as vegetation withers and the burning sun sucks the last of the moisture out of the soil Debate rages in Australia about whether this drought is so severe because of climate change or if it is just part of the. .. containers, are far more durable and are easier to stack which leads to lower fuel consumption and less emissions Say “bag -in- box” and most people think of wine But cooking oil, ketchup and soft drink concentrate have long been delivered in air-tight bags packed in heavy cardboard The market for bag -in- box – BIB – has virtually exploded bag -in- box packaging fi rst saw the light of day in the US in the. .. much at the perfume counter,” Treffner says whose brands make them volume winners are big sellers like McDonald’s and Coca-Cola Today, there are a number of different models for valuing brands in dollars and cents Interbrand’s model is based on the earnings forecasts of its analysts minus the return on tangible assets Other valuations look at the licenses and royalties paid for the benefit of using a . also important. Brands are built in the consciousness of the receiver, not by the company or organization,” says Henrik Evrell of the international brand. the amount of garbage?” are often asked. The expres- sion “minimizing waste” is governing many trends, in each phase of the chain. Customers, who are