goodpurpose (Summer 2008)
The goodpurpose™ cooperative is a consultancy from Edelman designed to mine the creative, socially responsible and financially lucrative opportunities that can arise when brands and consumers join forces around a social platform or meaningful cause.
June 2009 Mutually Beneficial Marketing why businesses and brands need a good purpose goodpurpose global summer 2009 Global Call for Public Engagement "To the people of poor nations, we pledge to work alongside you to make your farms flourish and let clean waters flow; to nourish starved bodies and feed hungry minds. And to those nations like ours that enjoy relative plenty, we say we can no longer afford indifference to the suffering outside our borders, nor can we consume the world's resources without regard to effect. For the world has changed, and we must change with it....." U.S. President Barack Obama TOMS Shoes: a history (video plays in PTT files) TOMS Shoes Blake Mycoskie: Chief Shoe Giver Donates one pair of shoes to children who need them in developing countries around the world for every pair sold 140,000 pairs of shoes to children in need worldwide to date Plans to give over 300,000 pairs of shoes to children in need in 2009. A Communications Evolution Monologue Reviewing Private Passive Command Control Sole Beneficiary Static Mass Shareholder Consuming More Me A Communications Evolution Dialogue Monologue Reviewing Collaborating Private Public Passive Active Shared Command Responsibility Control Multiple Sole Stakeholder Beneficiary Static Dynamic Mass Community Shareholder Stakeholder Consuming More Less Me We Cultural Desire to Connect More... Around Issues, Ideas, Passion Points Real Face-to-Face Conversations Class Reunions Caucuses Brand Communities Town Hall Meetings Religious Gatherings Community Organizing & Po Idol Volunteering Book Clubs, Youth Groups Fueled by Diversity of Public Engagement Channels A changing & evolving social business landscape Consumer citizens & citizen brands emerge and remain committed during a recession Interest in social purpose works across all demographics: children, millennials, boomers, "generation g" (as in generosity) emerges Social purpose is now a popular culture force to be reckoned with Media, websites dedicated to purpose A new contemporary, more engaging way to look at social purpose marketing Evidence of social purpose abounds Evidence of social purpose abounds Why doing good is good business 57% of ceo/coos said the benefits of pursuing social/environmental sustainability strategies outweigh the costs* Top two expectations for these strategies: Attract new customer base/retain existing, attract and retain best quality employees* Companies that paid more attention to these issues over the past three years compared to those that paid least attention: Share price increase of 45% versus 12%* Annual profit increase of 16% versus 7 %* Consumers spent approximately $2.2 billion on fairtrade products in ,,06, a 42 % increase over ,,05 (benefiting over seven million people in developing countries)** *The 2008 Economist Study **The Fair Trade Federation Purposeful business pays! Brands with purpose: 74% higher shampoo sales vs. non-cause brand 29% higher toothpaste sales vs. non-cause brand High recall of cause / brand connection The 2008 Cone/Duke University Behavioral Cause Study 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 lets 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 dont have to, because their cereal purchase diverts funds to public schools so they dont have to open their wallet twice." They can make their dollars go further, and thats important for the consumer to be engaged." Brian Peters General Mills Box Tops For Education Cause sponsorhips improve brand perceptions According to Performance Research, 41% of U.S. consumers believe companies can best improve brand perceptions by increasing their cause sponsorships -- for the first time surpassing sports and arts/cultural categories as ways to boost consumer opinion. While philanthropy may be down, consumers often see a cause campaign as a way to break a tie on a choice and enable them to personally contribute at low to no additional cost. With the demand for increased transparency, brands are learning to leverage their efforts in sustainability and support of other social issues as differentiating drivers of favorability and word-of-mouth. A time for new social purpose business paradigm? Cause-Related Marketing: partnerships between forprofits and non-profits that create promotional and fundraising opportunities Mutual Social Responsibility (for brands and companies) Mutual Social Responsibility: brands, companies and consumers actively working together to effect enduring positive social change Consumer Empowerment Brand Democracy Brand Personalization Company's New Social Role and Relevance Corporation in Trust Flux Cause � Related Marketing Corporate Social Responsibility & Philanthropy Build bridge between CSR and Brand Marketing 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 Point-of-View Return on Involvement Foster Emotional Bond Engage Public Ownable Idea Mutual Social Responsibility Purpose Driven Build Mutual Trust & Mutual Benefit Build brand loyalty / Sustain Relationship Profit Meets Purpose R.O.I. Financial: reason to buy and profit incentive Brand differentiation + stakeholder engagement Halo effect and pride Brand catalyst for consumers Why not "Return On Involvement?" ROI metric: conversation, interaction, co-creation, involvement, membership, brand loyalty, purchase and re-purchase 2nd Annual Global Consumer Study October 2008 Canada 500 UK 500 USA 1,000 France 500 Italy 500 Germany 500 China 1,000 Japan 500 India 500 Brazil 500 StrategyOne surveyed 6,000+ consumers across ten countries, aged 18-64 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 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 Recession: Doing good is still relevant 80% of consumers feel that during a recession, it is still important for brands and companies to set aside money for social purpose UK Germany U.S. France Canada China Italy India Brazil Global 80% 74% 76% 77% 83% 83% 84% 86% 90% 90% Recession: Globally consumers remain loyal to brands if they support a good cause 68 % say that in a recession, they would remain loyal to a brand if they support a good cause Over half of consumers say that in a recession, they will buy from brands that support a good cause they believe in even if it is not the cheapest brand. Women are more likely than men to give the same level or even more support to a good cause Their own role: Consumers want to make a difference & prefer brands that do! 87 % of consumers globally feel it is their duty to contribute to a better society and the environment 82% say they can personally make a difference by supporting good causes Germany U.S. U.K. France Italy Global 82% 83% 83% 92% 93% 87% Consumers prefer brands that support worthy causes 76 % of consumers like to buy from brands that make a donation to worthy causes! 84% 76% 74% 76% 67% 66% Make money and do good is a win-win 58 % of consumers globally are fine with brands that support good causes and make money France Italy U.K. Germany U.S. Global U.K. Germany U.S. France 41% 49% 47% 50% 55% 54% 0% 50% 100% 44% 49% 54% 56% 66% 58% 0% 50% 100% Italy Global 54 % of consumers globally would help a brand promote its products if there was a good cause behind it What causes do consumers personally care about? Improving quality of health/healthcare Protecting the environment Reducing poverty Equal opportunity to education Supporting human and civil rights Building understanding/respect for other cultures Fighting HIV/AIDS Helping to raise people's self esteem 90% 90% 88% 86% 84% 78% 78% 75% 65% Supporting the creative arts Consumers will pay more for & evangelize good cause brands Over half of consumers globally are more likely to recommend a brand that supports a good cause U.S. Germany U.K. France Germany U.K. U.S. France 40% 40% 47% 53% 60% 52% 0% 50% 100% 56% 58% 59% 67% 74% 69% 0% 50% Italy Global Italy Global 100% Nearly seven in ten (69%) of consumers would be prepared to pay more for eco-friendly products. A new value proposition? When choosing between two brands of similar quality & price, a social purpose ranks highest at 42% and is placed higher in order of importance above design & innovation (30%) and brand loyalty (27%) Children driving cause involvement (64%) 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 equipment and lights (23%) Participating in a fundraising event (20%) Social purpose starts at home It is becoming more unacceptable in local communities not to make an effort or show concern for the environment. Globally, 65% of consumers agreed with this statement. Additionally: 58% of people have switched-off equipment or lights more often this year than last year; 56% have used lower wattage light bulbs and 51% recycled more 83% agree that as a society, we need to consume a lot less to improve the environment for future generations Brands and companies weighing in many different ways... Shell FuelSave Driver Challenge Changing Consumer's Behavior: Inspire one million drivers to save fuel Show drivers how 10 tips can help them save more than 10% in fuel consumption Drivers go to their country-specific Shell web site and complete a training module 100,000 fuel voucher incentives for drivers who successfully complete the training Within the first week � 100,000 drivers were fuel-savers! Brita � Filter for Good Brita's FilterForGood program has motivated thousands of consumers 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. Rama: More children better care Rama (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 care Results Whitepaper made its way into political party newsletters and discussion by other key opinion makers Awards: Sabre Award 2007 (CauseRelated Marketing) German PR Award 2007 (Corporate Social Responsibility) Sales increase at retail level Media 100 million impressions in print, TV , online and radio. Cadbury � Bicycles for Africa 5000 rugged Bicycles for children in Ghana cosponsored through purchases Contest � Winner goes to Ghana to help distribute bikes and meet recipients Cadbury Cocoa Partnership & Fairtrade Certification CBC & Cisco � One Million Acts of Green Has engaged 46,000 members so far to commit more than 1.7 million "acts of green" to save the environment & fight global warming In partnership with the CBC has created website as nexus for educating, understanding, logging & tracking each act of green w/member accounts Starbucks Power of One: Energy Efficiency for Ireland So, which way to go? Social purpose; which one? Ownable space Link to your brand attributes/benefits Tools of involvement Partnerships NGOs as engaging partners are emerging brands themselves have key role to play with established brands/companies Hallmarks of a goodpurpose campaign Rally around a powerful idea with a social purpose Engage the public to build mutual trust and mutual benefit Create an emotional bond between brand and public Build a bridge between CSR and brand marketing for maximum benefit using traditional and nontraditional channels to reach the public of today Process Driven Discovery Strategy + Ownable Idea Listen + Learn Differentiate + Action ROI Involvement + Sustainability For Mutual Benefit