Brand Purpose: Growth driver or bandwagon?

© BRAND LEARNING 2017

Inspiring people. Lifting capabilities. Growing organisations.

Brand Purpose:

Growth driver or bandwagon?

© BRAND LEARNING 2017 2

Brand Learning: who we are

We believe sustainable growth is best achieved by continuously improving the customer-centred capabilities of people and of organisations

We lift capabilities within and across Marketing, Sales, HR and Digital and in cross-functional teams

Now part of Accenture, our expert team works out of hubs in New York, London and Singapore to support clients in over 60 countries

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WARC

The global authority

on advertising and

media effectiveness

http://www.warc.com/


First discussion: growth driver or bandwagon?

How do you feel about Brand Purpose: when have you seen its power, or do you feel cynical about the Purpose bandwagon?

Who’s doing Brand Purpose well? How?

Where does it go wrong?


A brand’s higher ideal that positively impactscustomers’ and employees’ lives

The reason abrand exists

Defining Brand Purpose


The Stengel effect


A clear purpose is No 1 differentiator of Growth DriversSource: Brand Learning Growth Drivers Study 2016


Brand Purposes can be, but do not have to be, a social good

Serving Britain’s shoppers a little better everyday

TESCO

Simple, personal and fair banking

SANTANDER

Making Heads Happier

HEAD & SHOULDERS

Your co-conspirator to pleasure

BAILEYS

Energize the world

RED BULL

To nourish life’s happiest asset, a bright smile

SENSODYNE

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Cannes Creative Effectiveness Lions

• Measurable business impact, i.e.

hard results over the long term

• Last year, sustainability and CSR

used by 18% of the shortlist

• This year, used by 47% of

campaigns

Source: Cannes Lions 2017 - WARC Insights from the Creative Effectiveness winners

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Is it really a Brand Purpose?

• Action: Does it imply actively

doing something? A sense of

change or momentum?

• Simplicity: Is it a clear, concise aim

that makes sense to anyone?

• Brand Fit: Is there a clear link

between the brand and purpose?

• Cultural Relevance: Is it

addressing a cultural need that is

relevant to the audience?

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Case Study: IKEA

• Purpose: To create a better everyday

life for the many

• Decrease in sales & market share

• Occasional furniture shop =>

assistant for everyday life

• TV + VoD + cinema, complemented

by print, digital & targeted social ads

• Stole 1.7% market share & 26%

growth in ROMI over 3 years

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Bou Khalil: The Good Note

• Purpose: “Generations of care”

• Enabled the Lebanese to give

money responsibly to refugees

• $4.2mill in earned media and PR

• Est. 20mill social media users

• 25mill Lebanese pounds-worth of

Good Notes circulated

Or is Purpose just a bandwagon?

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“His definition of ideal is so broad that it fits everything," Shotton Vs Stengel 50

16 brands within larger holding companies BUT holding company

performance measured

The brands are global, while the index benchmark is US-only

26 companies have a stock market price - only 9 have outperformed the

stock market since 2011

Many purported purposes are generic – E.g. BlackBerry "exists to

connect people with one another"

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Source: Seven lessons from WARC’s 2017 Cannes Analysis


First discussion: growth driver or bandwagon?

How do you feel about Brand Purpose: when have you seen its power, or do you feel cynical about the Purpose bandwagon?

Who’s doing Brand Purpose well? How?

Where does it go wrong?


Second discussion: activating Brand Purpose

What’s your Brand Purpose and how do you activate it?

Does your business have the capabilities to successfully activate its Brand Purpose?

How do you measure if it’s working?


Done well, purpose sets the direction for a joined-up customer and employeeexperience


But Purpose is often laminated rather than lived

Source: EY/Harvard Business School 2015 – The Business Case for Purpose* Percentage of respondents who agreed with each of the following statements.

39%48%

13%PRIORITIZERSPurpose clearly articulated and understood

DEVELOPERSPurpose understood by some areas better than others

LAGGARDSPurpose clear articulated and understood

DEVELOPERS PRIORITIZERS

LAGGARDS


Santander: Using Purpose to reinvent retail banking

Ana Botín galvanised organisation behind distinctive purpose of ‘simple, personal and fair banking’

Translated into hero product for customers - 1:2:3 accounts, fronted by trusted ambassadors

Joined up purpose across CX - simplified and linked accounts, mobile app, internal systems and customer service (worst to best)

Results - loyal customers from 1.6m in 2011 to 3.3m 2014, Profit before tax up 11% 2011 to 2014.


Marks & Spencer identified a new Purpose for its food business

Making every food moment special


Customer Experience principles were developed to deliver on the purpose


Activation of the purpose-driven customer experience has delivered strong results

RECORD MARKET SHARE

4.5%

FOOD SALES GROWTH

+4%

CX MEASURES

Over 75% of CX measures have increased since launch

NET PROMOTER SCORE

+8 points

TALENT

Attracted senior hires fromCompanies such as Unilever, Heinz and Nestle

EMPLOYMENT SURVEY SCORES

+37 %

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The importance of measurement

Lack of sophisticated measurement tools

Emotionally-involving campaigns and fame-based approaches

“outperform across the range of standard business mid-term metrics”.

Opportunity to influence the boardroom

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Source: WARC – “The commercial value of purpose in advertising” by Tom Knox, Former IPA President & Chairman, MullenLowe London

Scope for engendering emotionally engaging creative work (e.g. Persil)

5“Intangible” assets of trust/relevancy/reputation => Brand’s reputation

can boost its valuation

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Persil: Free The Kids

• Objectives:

- Increase the number of washes

- Grow value sales & market share

• Approach:

Provoke -> Educate -> Facilitate

• Impact:

- Relevance & conviction

indicators grew to 8%

- Value sales grew by 2.1%


Second discussion: activating brand purpose

What’s your Brand Purpose and how do you activate it?

Does your business have the capabilities to successfully activate its Brand Purpose?

How do you measure if it’s working?

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Brand Purpose:

Growth driver or

bandwagon?


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Brand Purpose: Growth driver or bandwagon?

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