Mutually Beneficial Marketingwhy businesses and brands need a good purpose

Global Winter 08

2nd Annual goodpurpose study inside

Global Call for Public Engagement

“So let us summon a new spirit of patriotism; of service and responsibility where each of us resolves to pitch in and work harder and look after not only ourselves, but each other.”

“But we also know that government initiatives are not enough. Each of us in our own lives needs to do what we can to help the poor. And until we do, our conscience cannot rest….”

Barack Obama

“Yes We Can”

And its more important than ever to put meaning into marketing Only 25 % of people find

contentment from the shopping experience*

- Recessionary times call for more substance

Over 83 % of consumers are willing to change consumption habits to make tomorrow’s world a better place*

Today 70 % of the brand consideration/adoption process is based on emotional subconscious factors**

63% of consumers think brands spend too much on marketing/advertising and should put more into a good cause*

*Source: Edelman GP global study 2008**Source: Brand Keys

Purposeful business pays

General Mills’ Box Top for Education

“…expects the program to raise more money this year than last , when it raked in $39 million. The initiative raised $250 million for public schools since it started…”

“When the economy is down , cause marketing let’s consumers give back by doing something they were always doing, buying cereal”

“When consumers engage in cause marketing, Mr. Peters said, it can ease the burden of charitable giving. “They [think] ‘I can write a check, but I don’t have to, because their cereal purchase diverts funds to public schools so they don’t have to open their wallet twice.” They can make their dollars go further, and that’s important for the consumer to be engaged.”

Brian PetersGeneral Mills

Box Tops For Education

Recession: The 800lb Gorilla in the roomOn global level….

Globally (80%) of consumers feel that during a recession, it is still important for brands and companies to set aside money for social purpose

Women are more likely than men to agree that “during a recession it is still important for brands and companies to set aside money for a good cause or purpose” (82% v 78%) and that “if a company has to cut its costs during a recession it should not stop giving to good causes” (75% v 70%).

(68%) of consumers say that in a recession, they would remain loyal to a brand if they support a good cause

(55%) of consumers say that in a recession, they will buy from brands that support a good cause even if it is not the cheapest brand

Nearly one in two consumers say that the economic downturn has made no difference in their support of a good cause

Source: New findings from the Edelman goodpurpose 2nd annual study

ConsumerEmpowerment

Brand DemocracyBrand Personalization

Company’s New Social Roleand Relevance

Corporation in Trust Flux

Corporate Social Responsibility: definitions vary, but CSR can be described as a commitment by business to mitigate risk, bolster reputation and create opportunities by being a good (corporate) citizen. This may involve any number of activities that move beyond compliance and health and safety policies, from corporate philanthropy to societal well-being

Mutual Social Responsibility: brands, companies and consumers actively working together to effect enduring positive social change

Cause-Related Marketing: partnerships between for-profits and non-profits that create promotional and fundraising opportunities

A new social purpose business paradigm?

Cause –

Related

Marketing

Corporate

Social

Responsibility

Mutual

Social

Responsibility

Build bridge between CSR and Brand Marketing

Point-of-View

Return on Involvement

Foster Emotional Bond

Engage Public

Ownable Idea

MutualSocial

Responsibility

Purpose Driven

Build Mutual Trust & Mutual Benefit

Build brand loyalty / Sustain Relationship

Profit Meets Purpose

Why goodpurpose now?media, websites committed to purposeGood Magazine “is for people who give a damn. it’s an entertaining magazine about things that matter”New Consumer, oneworld.net, stylewillsaveus.com, utopia.de, lohas.de, newethics.comchangex.desublime is the first international ethical lifestyle magazine, partnering aesthetics & ethicsCNN impact your worldlifegate.it, peopleplanetprofit.nl, ivyworld.de Causecast, facebook, socialvibeA new A new contemporarycontemporary, more engaging , more engaging

way to look at social purpose marketingway to look at social purpose marketingA new A new contemporarycontemporary, more engaging , more engaging

way to look at social purpose marketingway to look at social purpose marketing

Evidence of social purpose abounds

Evidence of Social purpose abounds

http://www.innocentdrinks.co.uk/

Meet the Purpose PurveyorsPhilanthropists Campaigners

Consumers“People like

me”Matt Damo

nGeorge Clooney

Millenials

Bill &MelindaGates

Bono

Oprah Winfrey

Tony Blair

Al Gore

Bill ClintonBrad Pitt &

Angelina Jolie

Richard Branson

KofiAnnan

Muhammad Yunus

Women

Moms

Children

Boomers

Edelman presents

helping brands and companies put purpose closer to their core proposition

People and brands working together to take action and effect positive

social change for mutual benefit

A mutual social responsibility initiative

social areas

cross cultural understanding/diversity

education, arts & culture

environment

human rights/civil rights

personal & public health

poverty & hunger

self esteem/self worth

animal rights & protection

ROI.

Financial: reason to buy

Brand differentiation + stakeholder engagement

Halo effect

Brand catalyst for consumers

Why not “Return On Involvement?”

ROI metric: conversation, interaction, co-creation, involvement, membership, brand loyalty, purchase and re-purchase

• 6,000 interviews

(18-64)• Global

consumer insights & evidence

Strategy & Ideation

Developmentrigorous process

3-dimensional amplification

Connecting NGOs

/business stakeholders to

pop-culture & social purpose

strategies/platforms

goodpurposecommunity.com•What’s new•Who’s doing what

10 country Study

Powerful Ideawith purpose

Engage Public

Build mutual trust & benefit

Return on Involvement

the

offer

2nd Annual Global Consumer Study October 2008

StrategyOne surveyed 6,000+ consumers across ten countries, aged 18-64

Canada500

USA1,000

UK500

Brazil500

Italy500

Germany

500

India500

China1,000

Japan500

France500

Consumers are more involved than ever in social purpose

Consumers want to make a difference & prefer brands that do!

Globally, nearly 9 in 10 consumers (87%) feel it is their duty to contribute to a better society and the environment

82% of consumers globally say they can personally make a difference by supporting good causes

83% of consumers are willing to change consumption habits to make tomorrow's world a better place

76% of consumers globally like to buy from brands that make a donation to worthy causes!

How much do you personally care about?…

Base: 6,048

Consumers want not only individuals to drive support of good causes but also want government to get involved/take the lead

Government was chosen by consumers than any other organization to support top social causes:

Equal opportunities to education (55%)

Health (46%) Reducing Poverty (40%)

New 2008 Insights:People want government involved in social causes

Does social purpose beat brand design and innovation? Make money and do good

too! 58% of consumers globally are fine with brands that support good causes and make money

55% globally say they would be prepared to pay more for a brand in a recession that supports a good cause they believe in

When choosing between two brands of similar quality & price, a social purpose is what would most affect consumer decisions, globally (42%), ahead of design & innovation (30%) and brand loyalty (27%).

Globally, consumers will pay more for & evangelize good cause brands

Globally, 52% are more likely to recommend a brand that supports a good cause than one that does not

Nearly seven in 10 globally (69%) would be prepared to pay more for eco-friendly products

Over half of consumers globally would help a brand promote its products if there was a good cause behind it

It is becoming more unacceptable in local communities not to make an effort or show concern for the environment. Globally 65% agreed with this statement

2008 New Insights goodpurpose starts at home

(58%) have switched equipment or lights more often this year than last year

(56%) have used lower wattage light bulbs and 54% have used fewer plastic bags

New Global Insights for 2008 Children driving cause involvement (61%) of people say they have

taken an action because they have been influenced by their children/other peoples children

(24%) of adults used lower wattage light bulbs based on children getting them to do so.

Other activities that were child driven Using fewer plastic bags

(24%) Switching off household

equipments and lights (23%) Participating in a fundraising

event (20%)

Brands weighing in many different ways…

Gucci’s UNICEF Campaign fronted

by Rihanna

Benetton’s Africa WorksMicrofinancecampaign fronted

by Youssou N’Dour

Ben & Jerry’s/WWF Climate Change

College

Brands & Purpose

Shell Fuel Economy

EU Initiative:“You control

climate change”

Dirt is good

More Children, Better CareEvery Child has

the right to play

Take the pledge

Brita – Filter for GoodUSA, Canada

Brita’s FilterForGood program has motivated thousands of Americans to reduce their bottled water waste simply by switching to a reusable bottle with filtered water. The results for Brita have been exponential: sales increased & reinvigoration of the brand, consumer praise and a desire to infuse sustainability practices throughout Clorox brands.

Omo: Dirt is Good - Every Child Has the Right to Play Sweden

“my child spends less than one hour a day outside...help!”

96% positive media impactIncrease in sales/market share

Power of One: Energy Efficiency for IrelandA simple clear expression of one central idea:

That the individual actions of every single person in Ireland will together create a powerful, positive change in the nation’s energy use habits. Only by empowering the individual can we hope to influence society in general.

The power of one individual

Capture the collective power of

individual actions

Media coverage resulted in 13 million+ impressions: increase in awareness: increased internet hits and consumer adoption

Irish Times committed to running monthly column following campaign

Power of One Street (Energy efficient model community)Power of One messagePower of One Office School curriculum Power of One Bite – Restaurant/tourism

Rama: More children better careRama (margarine brand) supports families and government

The Idea:Improvement of flexible

childcare in Germany

Rama stands up for more flexible child care in Germany – and supports government, nation, communities and families with 100 best practice child care projects

Rama: More children better careResults Whitepaper made its way into

political party newsletters and discussion by other key opinion makers

Awards: Sabre Award 2007 (Cause-

Related Marketing) German PR Award 2007

(Corporate Social Responsibility)

Sales increase at retail level Media

100 million impressions in print, TV , online and radio.

are emerging brands themselves

have key role to play with established brands

NGOs engage multiple stakeholders

Which way to go?

Social purpose; which one?

Partnerships

Ownable space

Link to your brand attributes/benefits

Tools of involvement

Discovery

Strategy +Ownable Idea

ROIInvolvement + Sustainability

For Mutual Benefit

Listen + Learn

Differentiate + Action

Process Driven

Survey results inform us that social purpose as a marketing imperative has global consumer appeal and can help brands build deeper relationships

83% of consumers willing to change consumption habits to make tomorrow’s world a better place

Mutual social responsibility is next key step in connecting consumers with brands via social purpose

For businesses, performing well and doing good are linked

Mutual beneficial marketingconclusions/opportunities for brands

Mutual beneficial marketingconclusions/opportunities for brands Return on involvement is a

new metric

Brands need to create powerful ownable ideas out of a social purpose platform to differentiate and rise above the clutter (e.g. Dove real beauty + self esteem)

Word of mouth, social marketing and new, non-traditional channels are key to bringing a social purpose concept to life in a world of attention deficit disorder and 24/7 communications

68% of consumers globally say that in a recession, they would remain loyal to a brand if it supports a good cause.

let’s continue the conversation…

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