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Global Winter 08

Mutually Beneficial Marketing why businesses and brands need a good purpose

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.”

“Yes We Can”

“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


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 Peters General Mills Box Tops For Education


Recession: The 800lb Gorilla in the room On 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


A new social purpose business paradigm? Mutual Social Responsibility: brands, companies and consumers actively working together to effect enduring positive social change Cause-Related Marketing: partnerships between forprofits and non-profits that create promotional and fundraising opportunities

Mutual Social Responsibility

Consumer Empowerment Brand Democracy Brand Personalization Cause – Related Marketing

Company’s New Social Role and Relevance Corporation in Trust Flux

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 wellbeing

Corporate Social Responsibility


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


Why goodpurpose now? media, websites committed to purpose Good 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.com changex.de sublime is the first international ethical lifestyle magazine, partnering aesthetics & ethics CNN impact your world lifegate.it, peopleplanetprofit.nl, ivyworld.de Causecast, facebook, socialvibe AAnew newcontemporary contemporary, ,more moreengaging engaging way wayto tolook lookat atsocial socialpurpose purposemarketing marketing


Evidence of social purpose abounds


Evidence of Social purpose abounds


Meet the Purpose Purveyors Philanthropists Bill & Melinda Gates

Campaigners Matt Damon

Millenials

George Clooney

Bono

Consumers “People like me�

Tony Blair

Oprah Winfrey

Women

Al Gore Moms Bill Clinton

Brad Pitt & Angelina Jolie

Children

Kofi Annan Richard Branson

Muhammad Yunus

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

ďƒľ

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


offer the 10 country Study • 6,000 interviews (18-64) • Global consumer insights & evidence

Powerful Idea with purpose Engage Public

Connecting NGOs /business stakeholders to pop-culture & social purpose strategies/ platforms

Build mutual trust & benefit goodpurpose Return on Involvement community.com •What’s new •Who’s doing what

Strategy & Ideation Development rigorous process 3-dimensional amplification


2nd Annual Global Consumer Study October 2008 Canada 500 UK 500 USA 1,000

France 500 Italy 500

Germany 500

China 1,000

India 500

Brazil 500

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

Japan 500


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


New 2008 Insights: People want government involved in social causes  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%)


Does social purpose beat brand design and innovation? ď‚ž Make money and do good too! 58% of consumers globally are fine with brands that support good causes and make money ď‚ž 55% globally say they would be prepared to pay more for a brand in a recession that supports a good cause they believe in ď‚ž 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 ď‚ž Over half of consumers globally would help a brand promote its products if there was a good cause behind it ď‚ž Globally, 52% are more likely to recommend a brand that supports a good cause than one that does not ď‚ž Nearly seven in 10 globally (69%) would be prepared to pay more for ecofriendly products


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  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


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


Brands & Purpose Shell Fuel Economy

Ben & Jerry’s/WWF Climate Change College

EU Initiative: “You control climate change”

Benetton’s Africa Works Microfinance campaign fronted by Youssou N’Dour

Gucci’s UNICEF Campaign fronted by Rihanna

Dirt is good Take the pledge Every Child has the right to play

More Children, Better Care


Brita – Filter for Good USA, 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 96% positive media impact Increase in sales/market share

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


Power of One: Energy Efficiency for Ireland A 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. Media coverage resulted in 13 million+ impressions: increase in awareness: increased internet hits and consumer adoption

The power of one individual

Capture the collective power of individual actions

Irish Times committed to running monthly column following campaign Power of One Street (Energy efficient model community) Power of One message Power of One Office School curriculum Power of One Bite – Restaurant/tourism


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.


NGOs engage multiple stakeholders ď‚ž are emerging brands themselves ď‚ž have key role to play with established brands


Which way to go?  Social purpose; which one?  Partnerships  Ownable space  Link to your brand attributes/benefits  Tools of involvement


Process Driven

Discovery Strategy + Ownable Idea

ROI

Listen + Learn

Differentiate + Action

Involvement + Sustainability For Mutual Benefit


Mutual beneficial marketing conclusions/opportunities for brands  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 marketing conclusions/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  68% of consumers globally marketing and new, nonsay that in a recession, they traditional channels are key to would remain loyal to a bringing a social purpose brand if it supports a good concept to life in a world of cause. attention deficit disorder and 24/7 communications


community.com

let’s continue the conversation‌

Mutually Beneficial Marketing: Why Businesses and Brands Need a Good Purpose  

The goodpurpose™ cooperative is a consultancy from Edelman designed to mine the creative, socially responsible and financially lucrative opp...

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