Citizens Engage! Edelman goodpurpose® Study 2010FOURTH ANNUAL GLOBAL CONSUMER SURVEY

“We Make a Living

By What We Get,

But We Make a Life

By What We Give”

Winston Churchill

THE RISE OF GLOBAL CITIZENSHIP

consumer, the citizen brand

Social mediacontinues to drive

social purpose

Global issues arelocal concerns

A Purpose “Reset”

Emerging marketstake the lead

86% of global consumers

believe that business needs to place at least equal weight on society’s interests as on business’ interests.

Q33. (Equal weight + more weight on society’s interests) Global (excludes UAE)

Edelman 2010 goodpurpose® Study

THE RISE OF THE “CITIZEN CONSUMER”

COP 15 Copenhagen Summit considered a failure

Citizen journalism spreads support

for Iran

Global citizens unite around disaster in Haiti in unprecedented numbers

Outpouring of support for local communities affected by BP crisis

STITCH TOMORROW – PHILIPPINES

"Stitch Tomorrow would provide underprivileged teens with the resources, capital and education to start their own fashion lines and sustainable source of income, using recycled materials found in their local neighborhoods and villages."

Carmina MancenonPhilippines

Social EntrepreneurAge 16

UNITED NATIONS CALL TO ACTION

GOVERNMENTS RESPOND

UK Tories launch big society

India’s Parliament introduces Bill to require largest companies to donate 2% of their net profits to CSR activities.

Performance with Purpose

“Our belief that our financial

success — Performance —

must go hand-in-hand with our

social and environmental

responsibilities — our Purpose.”

Indra NooyiChairman &CEO, PepsiCo.

BUSINESS PUTS PURPOSE OUT FRONT

“As businesses, we have a responsibility to society. Let me be clear about this point. There is

no conflict between delivering value to shareholders and helping solve bigger societal

problems.”

-H. Lee Scott Jr., Walmart Chairman and Former CEO

National Retail Federation

January 12, 2009

A PURPOSE “RESET”?

Is purpose becoming institutionalized across corporate and marketing spectrum?

BACK TO BASICS?: Jobs and economic development

Will marketing change from

selling more widgets to providing more

substance?

Can purposedrive profit?

Is lessnow more?

guynameddave.com/

100-thing-challenge

UK

500

FOURTH ANNUALGLOBAL CONSUMER STUDY2010

FRANCE

500GERMANY

500

ITALY

500

INDIA

500

CHINA

1000

JAPAN

500

CANADA

500

MEXICO

500

BRAZIL

500

StrategyOne surveyed 7,000+ consumers across 13 countries, aged 18-64

UAE

250

NETHERLANDS

500

US

1000

WHAT CONSUMERS HAVE TO SAY…

WHAT CAUSES DO GLOBAL CONSUMERS CARE ABOUT THIS YEAR?

Q6. (Top 2 Box, Care) Global (excludes UAE)

BUT DIFFERENCES EXIST IN LOCAL MARKETS

Q6. (Top 2 Box, Care) U.S.

EMERGING MARKETS TAKE THE LEAD

CONSUMER ACTIONISM GREEN AS ECONOMIC LEVER

FOUR STORIES EMERGE FROM OUR STUDY

THE FIFTH P OF MARKETING IS PURPOSE

EMERGING MARKETS TAKE THE LEADCitizens in the world’s fastest growing markets – China, India, Brazil, Mexico – have outpaced their peers as most engaged in supporting good causes.

“I volunteer once a week”

26% Brazil

Q11. On average, how often do you give your time or volunteer in support of a good cause? (Once a week; Once a month; NET: Every 6-12 months)

CONSUMERS IN EMERGING MARKETS VOLUNTEER MORE TIME

I volunteer once a week

I volunteer every 6-12 months

I volunteer once a month

Brazil: 26%

Mexico: 19%

US: 14%

France: 13%

EMERGING MARKETS FEEL MORE INVOLVED

Q9. More Involved (Net)

I feel I am more involved in good causes now than I was a year ago.

Brazil: 64%Mexico: 68%

VOLUNTEERS IN BRAZIL

“CONSUMERS IN BRAZIL, CHINA, INDIA AND MEXICO ARE MORE LIKELY TO PURCHASE AND PROMOTE BRANDS THAT SUPPORT GOOD CAUSES, OUTPACING THEIR PEERS IN THE WEST.”

EMERGING MARKETS ARE MOST WILLING TO BUY BRANDS THAT SUPPORT GOOD CAUSES

Consumers who buy a brand that supports a good cause at least every twelve months.

Q20. (Net: at least every twelve months)

EMERGING MARKETS TAKE ACTION TO SUPPORT SOCIAL PURPOSE BRANDS

“I am more likely to recommend a brand that supports a good cause

than one that doesn’t.”

“I would help a brand to promotetheir products or services if there is a

good cause behind them.”

“I would switch brands if a different brand of similar quality supported a

good cause.”

More than 7 in 10 consumers in the emerging markets would take action to support social purpose brands.

INDIA78%

CHINA77%

BRAZIL80%

Q16. (Top 2 box, Agree)

GLOBAL61%

GLOBAL62%

GLOBAL62%

EMERGING MARKETS EXPECT BRAND INVOLVEMENT IN GOOD CAUSES

“I have more trust in a brand that is ethically and socially responsible.”

Brazil: 81%China: 78%Mexico: 78%India: 77%

Q17. & Q16. (Top 2 box, Agree)

8 in 10 consumers in the India, China, Mexico and Brazil expect brands to donate a portion of their profits to support a good cause.

Global: 65%

THE FIFTH “P” OF MARKETING IS PURPOSEThe age-old marketing mix of Product, Price, Place and Promotion are now joined by a fifth “P”…Purpose.

GLOBALLY, SOCIAL PURPOSE REMAINS KEY PURCHASE MOTIVATOR

When choosing between two brands of equal quality and price…

Social purpose continues to rank as the number one deciding factor for global consumers above design, innovation and brand loyalty.

Q23. (First ranked response) Global (excludes UAE)

CONSUMERS WILLING TO PAY MORE FOR A CAUSE

Q24A-Q26B. (Split sample) Global (excludes UAE)

Willing to pay 5% more

Wiling to pay 10% more

56%51% 51%

45% 47%

41%

Beverage Clothing Appliance

CONSUMERS TAKE ACTION TO SUPPORT COMPANIES WITH PURPOSE

BUY its products or services

RECOMMEND its products or services

SHARE positive opinions and experiences

66%

66%

64%

Q39-44. (Top 2 box, Likely) Global (excludes UAE)

THE BIG REWARD FROM GLOBAL CONSUMERS

62% would switch brands if a

different brand of similar quality supported a good cause.

Q16. (Top 2 box, Agree) Global (excludes UAE)

CONSUMER WILLINGNESS TO PROMOTE BRANDS WITH A CAUSE JUMPS

Q16. [TRACKING] (Top 2 Box, Agree) Global (excludes Mexico, the Netherlands, UAE)

GAP RED

+ 9

“I would help a brand to promote their products or services if there is a goodcause behind them.”

… BUT ALSO WILLING TO PUNISH

Q45-49. (Top 2 box, Likely) Global (excludes UAE)

CONSUMERS EXPECT PURPOSE INGRAINED INTO THE MARKETING MIX

68% agree brands should promote good causes

through advertising to help raise public awareness

67% expect brands to donate a portion of their

profits to support a good cause

Q17. (Top 2 box, Agree) Global (excludes UAE)

“WHICH BRAND OR BRANDS COME TO MIND AS PLACING AS MUCH OR MORE IMPORTANCE ON SUPPORTING A GOOD CAUSE AS THEY PLACE ON PROFITS?”

Global consumers respond on an unaided basis:

US

PepsiNewman’s Own

NikeTide

Canada

McDonald’sDoveTim Horton’sDawn

UK

Fair TradeOxfamTescoTraidcraft

France

DanoneNestleMax HavelaarCarrefour

Germany

KrombacherPampersFair TradeAddidas

Italy

CoopNikeBarillaAltromercato

Netherlands

Max HavelaarFair TradeNikeAddidas

Brazil

NaturaYpêNestleOmo

Mexico

DanoneCoca ColaBimboNestle

China

Nongfu Spring

WanglaojiMengiu MilkYili

India

TideArielTataColgate

Japan

VolvicSuntorySonyToyota

UAE

McDonald’sPanasonicTataUNICEF

Q15. (Open ended response)

CONSUMER ACTIONISMConsumers want to work alongside brands and corporations to develop the best ideas for solving the world’s problems, then tackle them head on.

INVOLVEMENT WITH GOOD CAUSES STRONG: SIGN OF CONSUMER ACTIONISM

Q8., Q9. (NET: More involved) Global (excludes UAE)

One-third believe they are more involved in good causes now than they were one year ago

56% of consumers areinvolved in good causes…

Which one of the following entities do you think should be doing the most to support good causes?

CONSUMERS FEEL MORE EMPOWERED TO SUPPORT GOOD CAUSES

-10

+5

Q7. [TRACKING] Global (excludes Mexico, the Netherlands, UAE)

CONSUMERS WANT TO PARTNER WITH BRANDS

71% believe brands and

consumers could do more to support good causes by working together

63% want brands to make it

easier for them to make a positive difference

Q17. & Q16. (Top 2 Box, Agree) Global (excludes UAE)

64% believe it is no longer enough for corporations to give money; they must integrate good causes into their everyday business

CONSUMERS EXPECT CORPORATIONS TO INVEST IN PURPOSE

Q32. (Top 2 Box, Agree) Global (excludes UAE)

61% have a better opinion of corporations that integrate good causes into business, regardless of why they do so

GREEN AS ECONOMIC LEVERCitizens believe that sustaining the environment can help grow the economy.

“GREEN IS GREEN”

71% of global consumers believe projects that protect and sustain the environment can help grow the economy

Demand highest in emerging markets and US.

Q57. (Top 2 Box, Agree) Global (excludes UAE)

GOVERNMENT AND CORPORATIONS MUST PLAY ROLE

Q32. & Q57. (Top 2 Box, Agree), Global (excludes UAE)

72% expect corporations to take actions to preserve and sustain the environment

73% agree government and business need to work together more closely to ensure the environment is protected

64% would support legislation that requires

corporations to meet certain environmental standards even if it would negatively impact a corporation’s profits

62% would support legislation that requires

government to fund partnerships between public and private organizations to help protect the environment

PUBLIC SUPPORT FOR ENVIRONMENTAL LEGISLATION IS STRONG

Q57. (Top 2 Box, Agree) Global (excludes UAE)

NEW SOCIAL PURPOSE ACTIVATORS

“Mother Nature Network WorldShares allows members to earn credits by using the site and turn those credits into real donations for not-for-profits.

ammado connects nonprofits, socially responsible companies and engaged individuals and supplies the tools necessary to support online campaigning, fundraising, engagement and communication.

TakePart is an independent online community that connects its members directly to the issues that inspire them to engage, contribute and take action.

CONTENT DRIVING PURPOSE, TOO

betterplace links companies and individuals with good purpose projects; they sent flipcams to participating organizations and held a video contest.

The Good Pitch holds roundtable discussions all over the world and connects brands and companies with documentary film directors hoping to produce films with a good purpose.

IMAGE

FOUR YEARS IN, WE’RE LEARNING…

After quality and price, purpose trumps design, innovation and brand loyalty

Consumers consistently recommend, promote and buy brands with a social purpose

There is no one “killer-cause” …there are many

Profit and purpose are no longer strange bedfellows

BRANDS AND COMPANIES WEIGHING IN MANY DIFFERENT WAYS…

Helping brands and companiesintegrate purpose into their core business proposition and marketing efforts.

SO, HOW CAN YOU ENGAGE?

THE GOODPURPOSE POINT OF VIEW

APPLY

MATCH

ENGAGE

MEASURE

“MUTUAL SOCIAL RESPONSIBILITY”

YOUR BUSINESS PURPOSE TO A HIGHER SOCIAL PURPOSE

YOUR PUBLIC

“RETURN ONINVOLVEMENT”

People, companies, and brands working together to take action and effect positive social change for mutual benefit

Identify your social issue, and ownable,galvanizing idea

Foster a deeper emotional connection and develop sustainable brand loyalty

Conversation, Participation, Membership,Purchase, Repurchase

“BE THE CHANGE YOU WANT TO SEE IN THE WORLD.”MAHATMA GANDHI

“BE THE CHANGE YOU WISH TO SEE IN THE WORLD.”MAHATMA GANDHI