Introduction
In modern society, if a brand is to succeed it must have a strong brand purpose in order to cultivate a committed and growing base of consumers. James Collins and Jerry Poras defined brand purpose as being ‘the organization’s fundamental reason for being. An effective purpose reflects the importance people attach to the company’s work—it taps their idealistic motivations—and gets at the deeper reasons for an organization’s existence beyond just making money’ (Collins et al, 1994). Similarly Bill Theofilou, senior managing director for Accenture Strategy, defined it as ‘…the reason why a company or a brand exists. It is the underlying essence that makes a brand relevant and necessary to its customers. Purpose sits firmly at the centre of a brand’s vision and informs every business decision’ (Fromm, 2019).
Presently, the market layout see’s top brands spending countless dollars on developing their brand purpose and strategies to convey it to convince their customers and the public at large that their companies are not just about the money but about a higher cause or value. For a company to survive “It’s not enough to have a value statement, brands must advance a cause that will resonate with employees, customers and investors” (Aaker, 2017). Due to the increased scrutiny and criticism on corporations and brands to be ethical and moral in their conduct as well as following their own mission statements, the study of brand purpose has increased exponentially in recent years with academic journals and sources straight from the industry itself commenting and outlining the necessity of having, advertising and living by a strong brand purpose and the factors influencing it’s corporate life. This report will examine the literature written on the topic, delve into the factors influencing brand purpose and the subsequent campaigning behind it and the potential impacts both positive and negative, that the campaigns or strategies can have on the viewing public and the organisation itself.
Literature review
Around a decade ago, purpose driven branding and management was a rarity in the business world. Being so revolutionary in the corporate suite, only a handful of pioneering organisations such as Patagonia that were run by visionary leaders understood that this was the future of the industry. (Keohane, 2018) In 1943, Johnson & Johnson began this movement to be driven by a purpose with their famous credo. It outlines why they are in the business and who they cater too, in other words their product and target market. They also outline their corporate social responsibility to their employees, stakeholders, their environment and to the community (Johnson & Johnson, 2019).
Having a corporate/business purpose allows the customers to feel like that their consuming of products not only benefits them but a greater social purpose. Erik Wander wrote in his article ‘What Consumers Expect of Brands When it Comes to Issues They Care About’, ‘there’s a good reason marketers and the C-suite alike continue to focus so determinedly on brand purpose–it’s important to consumers. According to a new study, 75 percent of global consumers expect brands to contribute to their well-being and quality of life. And purpose is an especially important consideration when marketing to millennials and Gen Z’ers, who factor in companies’ positions and efforts on social and environmental issues when deciding what to buy and where to work’ (Wander, 2018). The future consumers of the world, i.e. the youth of today are the main target for any business looking to survive hence it is crucial that an organization invest in what will bring them success. Sustainable brands such as ‘Patagonia’ are becoming increasingly more popular amongst consumers. The core values of Patagonia, Build the best product, cause no unnecessary harm, use business to protect nature and to not be bound by convention (Patagonia, 2019), reflect what a lot of consumers like to see in a public offering in the modern market. A good product that is sustainably sourced and that gives back to the community through company revenue or creating jobs and using proceeds to find better ways to reduce their carbon footprint.
However, as it is still a new field of research and application, a survey was conducted by ‘Cone Communications’ and ‘Porter Novelli’, two prominent PR agencies, on what factors rank highest amongst consumers in the USA when buying a product. 41% of participants purchased based on the quality of a product. 39% valued cost as the most significant factor when spending. Only 20% of people said that a brand’s purpose was what determined their purchase (eMarketer Editiors, 2018). Whilst this seems to let down the argument for the necessity of having a brand purpose, businesses are not swayed as many are prioritizing the development of their own statements. Hannah Matthews, managing partner of Karmarama an advertising agency in the UK said, “Making brands meaningful and rebuilding trust with consumers can equate to significant success for businesses. Those that focus purely on short-term transactions, ignoring this drive toward empathy and purpose in business, could lose out in the long run.” (Keohane, 2018)
Factors influencing choice of brand purpose, executing and communication of the strategy
There are a vast variety of factors that have influence over the identifying of a brands purpose and the choices they make concerning the execution and communication of said purpose to the market. ‘Brandignity’, a thriving digital marketing agency, outlines several strong factors for a success in the new age of purpose driven brands (Brandignity, 2018):
1. Define the brand purpose
As mentioned earlier, brand purpose is defined as why the organisation is in place to begin with. What is the greater reason beyond the money that drives a business? (Maynard, 2019) By choosing or identifying a strong, defined brand purpose, you are able to give employees, customers and the public at large belief that what you stand for is a cause greater than revenue and profit margins. ‘A brand must solve a problem or meet a need. How well it does that, and how well it creates loyalty, affinity and connections with its customers determines the winners from the losers’ (Fromm, 2019). With brands now viewed as a tool of society, it is imperative to have a purpose appropriate to the times in order to remain relevant and wanted to the mass consumers of today (Henry, 2018).
2. Target Market
Having a good product is often not enough in today’s market. You must have a competitive price, advertise well and have a strong brand purpose that customers can believe in. However, before any of that you must research into who will be or already is buying what you are selling and why they do so. Identify the target market and why they choose to buy your product (Duckler, 2019). When a company decides to promote their purpose they must internally answer questions such as: ‘Why does the brand exist? What role does it play in customers’ lives? What challenge does it solve? How would the world be different without it?’ (Fromm, 2019). By reflecting on these questions brands will identify what makes them unique and hence promoting that to their consumers, forging stronger bonds with the community. Furthermore, by understanding the target market, businesses are able to have a greater understanding of the what the landscape of the market is like and from that they are able to choose the correct purpose to invest in.
3. Competition
By analysing the market, it is possible to identify the strengths and weaknesses of what other organisations are doing. What campaigns have worked, like Nike’s ‘Dream Crazy campaign, and others that have had negative backlash like the Pepsi campaign ‘Live for now’ in 2017. Investigate your direct competition e.g. Nike and Adidas, Myer and David Jones, to see what consumers are responding to the most and what they turn away from. Through studying the competition, creation and execution of a strong purpose campaign can be achieved.
4. Feedback
A crucial part of any campaign comes immediately after the initial launch. It is a must to always ask for feedback on the purpose and direction the company is heading in. In doing so you are able to alter, adapt or completely retcon the campaign to make it more effective in the market. The public is the greatest asset a company has in terms of both revenue and telling you where you went wrong.
5. Perseverance to the Purpose
All companies were founded on a central purpose. However, many have forgotten what they stood for in pursuit of profit margins and corporate success. Others may have stuck to the purpose but failed to adapt it to the markets of today in fear of losing customers or simply because they are comfortable maintaining the status quo (Keohane, 2018). Brands like the aforementioned Patagonia and Nike are examples of living by the purpose. By sticking to their purposes but also adapting to the social climate at the time has allowed them to either stay at the top of the market or continue to climb to the peak. It also has another benefit, by sticking to the purpose, you instil the drive and motivation in your employees to follow the purpose and even think of new ways to improve, execute and/or communicate it (Johnson, 2016).
Potential impacts of the strategies on the brand and consumer relationships over time
Post 2015 an explosion of purpose driven branding was seen in businesses. The corporate world saw that there was an increasing expectation set amongst the public for a brand to have a defined position on social issues. Many have made public statements and promises and in doing so impacted the life of the business. This impact can be positive or negative on to the brand and its reputation as well as the relationship held between the consumer and the brand itself, it all depends on the strategy utilised by the brand (Rodriguez Vila et al, 2017). Chobani is an example of how a purpose driven culture has had a major positive social impact on society. Chobani’s profit sharing model helps to instil a sense of pride and ownership of the brand in the employees, making them wand to do good by their work and by the community. The level of quality and quality of working conditions and pay have motivated them to making the company the 1.5 billion dollar giant that it is (Mainwaring, 2018). The various foundations and initiatives that have derived from the proceeds of Chobani as well as funding for beginning stage health and wellness initiatives demonstrates how they have shaped their culture around their purpose ‘better food for more people’ (Mainwaring, 2018). Communities and employees have responded well to the Chobani culture and through it have begun to buy into their idea’s.
Every strategy an organisation employs to attract business or attention will ultimately have impact on the market it is in.
Conclusion
The growing expectation of the public for companies to have a position on social issues, has created an influx on the demand for organisations to choose, adopt, create or revisit their own brand purpose. The brand purpose must have benefit to society and the brand, and should be developed into a strategy that enhances the company financially and socially (Rodriguez Vila et al, 2017). Consumers now regularly look to buy into an organisation that has a strong purpose driven culture (Fromm, 2019). Selling a good product at a reasonable price is still vital to the existence of a company but to benefit itself, the public and the world in the long run, having a and living by a brand purpose ensures the longevity, support and respect that all companies need.
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