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Introduction Consumer Actionism Emerging Markets Take the Lead Purpose is the 5th P Green as Social and Economic Lever Citizen Consumer Insights Edelman and goodpurpose 2010
86%
business needs to place at least equal weight on societys interests as on business interests.
- Edelman goodpurpose Study 2010
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Introduction
Around the world, we are witnessing rising levels of consumer engagement with social issues as well as heightened expectations of the role that corporations and brands should play. A growing body of influential stakeholdersfrom consumers to investorshas increased its demands that businesses leverage their core competencies to help address social issues. This brochure is based on the insights and experience of Edelmans Purpose practitioners, as well as findings from the Edelman 2010 goodpurpose study. In 2010, the goodpurpose study was conducted in 13 countries: Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, The Netherlands, UAE, United Kingdom and USA, with 7,259 consumers aged 18-64. The study explores consumer attitudes towards Purpose, including their commitment to specific issues and their expectations of brands and corporations. Page 2 A distinct shift occurred in the 2010 study results: Consumers in emerging economies surpassed Western consumers in their involvement in social issues and support of brands and corporations engaged in Purpose. Nevertheless, consumers worldwide demonstrated their expectation that companies support both local and global causes, giving way to the rise of the Citizen Consumer. Pro-social efforts take many names across the spectrum of corporate and brand citizenship. At Edelman, we call these efforts Purpose: The synergy between an organization or a brands social and business mission made manifest through a strategic, differentiating idea and expressed along a continuum that includes product innovation, brand strategy, corporate positioning, supply chain compliance, marketing and communications.
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of respondents believe corporations are in a uniquely powerful position to make a positive impact on good causes.
Purpose is the strategic, emotional driving force behind an organization/brands core value proposition. Purpose imbues societal relevance, and a greater reason for being beyond profit, into every interaction with stakeholders. Purpose provides a filter and focus to key internal and external activities driving innovation and leadership. Purpose answers the question: What do you stand for? And Purpose is changing the way brands and corporations must go to market. Key conclusions from the goodpurpose study: Consumer Actionism There is a global commitment to social concerns and a demand that organizations integrate Purpose into their business models. Emerging Markets Take the Lead Consumer activism in most emerging markets around the globe surpasses that of the West. Purpose is Central to Marketing Purpose is a vital addition to the traditional marketing mix, serving as a new point of differentiation. Green as Social and Economic Lever Corporations are expected to take a stand on environmental issues; going green is no longer simply a cause, it is a must-have with tangible economic benefits. Methodology
BRAZIL 500 CANADA 500 CHINA 1000 FRANCE 500 GERMANY 500 INDIA 500 ITALY 500 JAPAN 500 MEXICO 500 NETHERLANDS 500 UAE 250 UK 500 US 1000
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Consumer Actionism
As consumers relationships with social issues evolve, so do expectations for the private sector. A growing interest in cause, coupled with new channels of communication, has prompted the rise of Citizen Consumers individuals who seek deeper involvement with social issues and expect brands and corporations to provide a means of engagement. It is no longer enough for a corporation to simply donate to a cause, but rather it must integrate Purpose into its everyday business. Sixty-nine percent of consumers believe that corporations are in a uniquely powerful position to make a positive impact in the world.
BUY its products or services RECOMMEND its products or services SHARE positive opinions and experiences
Citizen consumers growing interest in cause, along with the power to promote brands through social media, creates a mutually beneficial relationship between profit and Purpose. Consumers are willing to take action with companies that actively support a good cause.
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Similarly, more than one-third of consumers would punish a company that doesnt actively support a good cause by criticizing it to others, refusing to buy its products or services and/or sharing negative experiences. What are the implications for brands/corporations? Align Purpose with products and services Develop authentic Purpose for both business and social impact Purpose must be a long-term commitment embedded into overall business strategy
Believe brands and consumers could do more to support good causes by working together
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More than 7 in 10 consumers in emerging markets would take action to support brands with social Purpose.
These insights are particularly relevant for multinational companies entering new markets, as it presents the opportunity to cultivate an engaged and Purpose-oriented consumer base as disposable incomes continue to increase. Pairing profit with Purpose in such markets can also trigger innovations in products and services worldwide.
GLOBAL 62%
INDIA 78%
I would switch brands if a different brand of similar quality supported a good cause.
GLOBAL 62% CHINA 77%
I am more likely to recommend a brand that supports a good cause than one that doesnt.
BRAZIL 80%
I would help a brand to promote its products or services if there is a good cause behind them.
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As a result, Purpose is no longer optional for leading brands and corporations. Instead, it is a new business imperative with the potential to galvanize consumers. The 2011 Edelman Trust Barometer found that the majority of respondents in every country agreed that Corporations need to create shareholder value in a way that aligns with societys interests, even if that means sacrificing shareholder value. Brands that differentiate themselves through authentic, sustained and well-executed programs can create brand ambassadors prepared to champion a company rather than its competitors. What are the marketing implications for brands and companies? When quality and price are equal, Purpose is a critical purchase motivator that can differentiate a company within a crowded space. Purpose provides deeper engagement and the ability to forge meaningful relationships with stakeholders. Consumers will take action to support companies with Purpose by recommending their products and services. Purpose can ignite the passion of individuals toward a brand.
42% 31%
When choosing between two brands of equal quality and price... social Purpose is the number one deciding factor.
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