Executive Summary: 2010 Edelman goodpurpose® Study
12
Citizens Engage! Edelman goodpurpose ® Report 2010
description
The 2010 Edelman goodpurpose® study is the firm’s fourth annual global study that explores consumer attitudes around social Purpose, including their commitment to specific social issues and their expectations of brands and corporations. The survey was conducted by StrategyOne and consisted of 20 minute interviews in 13 countries among 7,259 adults. Online interviews were conducted in Brazil, Canada, France, Germany, Italy, Japan, Mexico, The Netherlands, UAE, the United Kingdom and the United States. Face-to-face interviews were conducted in China and India. The study is representative of the country population, except in UAE, where it is representative of the online population.
Transcript of Executive Summary: 2010 Edelman goodpurpose® Study
Citizens Engage!
www.goodpurposecommunity.com goodpurposeblog.com
[email protected]@Edelman.com
[email protected] Edelman goodpurpose ® Report 2010
Table of Contents
Introduction ... 2
Consumer Actionism ... 4
Emerging Markets Take the Lead ... 6
Purpose is the 5th P ... 7
Green as Social and Economic Lever ... 8
Citizen Consumer Insights ... 9
Edelman and goodpurpose 2010 ... 9
When creating programs, consider that Citizen Consumers:
1. Feel empowered to support social issues
2. Want brands to place at least equal weight on societal and business interests
3. Believe that corporations and government must work together to solve social issues
4. Consider many global issues to be local issues
5. Count on companies to have environmental initiatives and support other causes as well
6. ExpectinvestmentinanauthenticPurposethroughintegratedsupportinadditiontofinancialcontributions
7. Punish brands that do not have Purpose
8. Desire to be part of the solution by partnering with brands
9. Take concrete actions to support brands with Purpose
10. Use Purpose as a critical purchase motivator
Page
9
Citizen Consumer Insights
Edelman and goodpurpose 2010About the 2010 Edelman goodpurpose® studyThe 2010 Edelman goodpurpose®studyisthefirm’sfourthannualglobalstudythatexploresconsumerattitudesaroundsocialPurpose,includingtheircommitmenttospecificsocialissuesandtheirexpectationsofbrandsand corporations.ThesurveywasconductedbyStrategyOneandconsistedof20minuteinterviewsin13countriesamong7,259adults.OnlineinterviewswereconductedinBrazil,Canada,France,Germany,Italy,Japan,Mexico, TheNetherlands,UAE,theUnitedKingdomandtheUnitedStates.Face-to-faceinterviewswereconductedinChinaandIndia.Thestudyisrepresentativeofthecountrypopulation,exceptinUAE,whereitisrepresentative of the online population. For more information visit: www.goodpurposecommunity.com.
About EdelmanEdelmanistheworld’slargestindependentpublicrelationsfirm,withwholly-ownedofficesin53citiesand3,700employeesworldwide.EdelmanwasnamedAdvertisingAge’stop-rankedPRfirmofthedecadeand oneofits“2010A-ListAgencies”and“2010BestPlacestoWork;”PRWeek’s“2011LargePRAgencyoftheYear”and“2009AgencyoftheYear;”EuropeanExcellenceAwards’“2010AgencyoftheYear;”HolmesReport’s “AgencyoftheDecade”and“2009AsiaPacificConsultancyoftheYear;”andamongGlassdoor’stopfive“2011BestPlacestoWork.”EdelmanownsspecialtyfirmsBlue(advertising),StrategyOne(research),Ruth (integratedmarketing),DJEScience(medicaleducation/publishingandsciencecommunications)andMATTER(sports,sponsorshipandentertainment).Visitwww.edelman.comformoreinformation.
Toreceivenotificationofnewresearchandnews,jointhegoodpurposecommunityatwww.goodpurposecommunity.comandvisitourblogatgoodpurposeblog.com.
86% of global consumers believe that
business needs to place at least equal weight
on society’s interests as on business’ interests.
- Edelman goodpurpose® Study 2010
Inthe2010goodpurposestudy,protectingtheenvironmentrankedasthenumberonecausethat
consumerscareaboutworldwide.Thoughdifferencesexistinlocalmarkets,thepersistentgreentrend
indicates the necessity of adopting sustainable business practices. Going green is no longer optional
inthemindsofglobal,engagedconsumers.Seventy-threepercentofconsumersworldwide
reported that government and business need to work together more closely to ensure the
environmentisprotected.Infact,consumerssupportlegislationrequiringcorporationsto
meetcertainenvironmentalstandardsevenifitmightnegativelyimpactprofits.
Inadditiontoconsumerinterestinsustainability,morethantwo-thirdsofrespondents
worldwidebelieveprojectsthatprotectandsustaintheenvironmentcanhelpgrow
the economy.
What insights can we draw about environmental expectations of brands/corporations?
•Highconsumerexpectationsnecessitatethatbusinessesintegrateenvironmentalresponsibility into their core operating tenets.
•Brands and corporations are expected to work with government to ensure protection of the environment.
•Proactive environmental engagement can result in economic growth.
Green as Social and Economic Lever
Page
8
Page
1
Aroundtheworld,wearewitnessingrisinglevels
of consumer engagement with social issues as
well as heightened expectations of the role that
corporations and brands should play. A growing
bodyofinfluentialstakeholders—fromconsumers
toinvestors—hasincreaseditsdemandsthat
businesses leverage their core competencies
to help address social issues.
This brochure is based on the insights and
experienceofEdelman’sPurposepractitioners,
aswellasfindingsfromtheEdelman2010
goodpurpose®study.In2010,thegoodpurpose
study was conducted in 13 countries:Brazil,Canada,
China,France,Germany,India,Italy,Japan,Mexico,
TheNetherlands,UAE,UnitedKingdomandUSA,
with 7,259 consumersaged18-64.Thestudy
exploresconsumerattitudestowardsPurpose,
includingtheircommitmenttospecificissuesand
their expectations of brands and corporations.
A distinct shift occurred in the 2010 study results:
Consumers in emerging economies surpassed
Western consumers in their involvement in social
issues and support of brands and corporations
engagedinPurpose.Nevertheless,consumers
worldwide demonstrated their expectation that
companiessupportbothlocalandglobalcauses,
givingwaytotheriseofthe“CitizenConsumer.”
Pro-socialeffortstakemanynamesacrossthe
spectrum of corporate and brand citizenship.
AtEdelman,wecalltheseeffortsPurpose:
Thesynergybetweenanorganizationorabrand’s
social and business mission made manifest through
astrategic,differentiatingideaandexpressedalong
acontinuumthatincludesproductinnovation,
brandstrategy,corporatepositioning,supplychain
compliance,marketingandcommunications.
69% of respondents believe corporations are in a uniquely powerful position to make a positive impact on good causes.
Introduction
Page
2
Inanovercrowdedmarket,Purposestandsoutas
a point of differentiation. When choosing between
brandsofequalqualityandprice,consumersworld-
wide reported that Purpose outweighs both design
innovation and brand loyalty as the deciding factor.
Moreover,Purposeprovidesameansofengage-
ment between consumer and brand that cannot be
fulfilledthroughthetraditional4Psofmarketing:
Product,Price,Place(distribution)andPromotion.
Purpose provides an emotional connection with
consumers and opportunities for consumers to
work with brands towards common goal. Purpose
thusjoinsasthe5thPoftheage-oldmarketingmix.
Page
7
Asaresult,Purposeisnolongeroptionalforleadingbrandsand
corporations.Instead,itisanewbusinessimperativewiththepotential
to galvanize consumers. The 2011 Edelman Trust Barometer® found
thatthemajorityofrespondentsineverycountryagreedthat
“Corporations need to create shareholder value in a way that aligns
withsociety’sinterests,evenifthatmeanssacrificingshareholdervalue.”
Brandsthatdifferentiatethemselvesthroughauthentic,sustainedandwell-executedprogramscancreatebrand
ambassadors prepared to champion a company rather than its competitors.
What are the marketing implications for brands and companies?
•Whenqualityandpriceareequal,Purposeisacriticalpurchasemotivatorthatcandifferentiateacompanywithin a crowded space.
•Purpose provides deeper engagement and the ability to forge meaningful relationships with stakeholders.
•Consumers will take action to support companies with Purpose by recommending their products and services.
•Purpose can ignite the passion of individuals toward a brand.
Purpose is the 5th P
0 10 20 30 40 50
Brand Loyalty 27%
Design and Innovation
42%Social Purpose
31% When choosing between two
brands of equal quality and
price... social Purpose is the
number one deciding factor.
In2010,emergingmarketsoutpacedthoseinthe
West in their relationship with Purpose. Mexico
and Brazil reported the highest percentages of
consumersthatare“moreinvolved”withcauses
nowthantheywereayearago.Eighty-onepercent
ofrespondentsinIndiaandeighty-ninepercentin
China said
that they are
personally
involved in
supporting a
good cause.
Consumers
in the above
markets are
more likely than other surveyed countries to buy
and promote the products and services
of brands that support good causes.
Emerging Markets Take the Lead
Page
6
These insights are particularly relevant for
multinationalcompaniesenteringnewmarkets,as
it presents the opportunity to cultivate an engaged
andPurpose-orientedconsumerbaseasdisposable
incomescontinuetoincrease.Pairingprofitwith
Purpose in such markets can also trigger innovations
in products and services worldwide.
Many emerging markets have developed economi-
callywhilebattlingsocietalissues,demonstratingthat
profitandPurposearenotmutuallyexclusive.
More than 7 in 10 consumers in emerging markets would take action to support brands with social Purpose.
“I would switch brands if a differentbrand of similar quality supported agood cause.”
“I am more likely to recommend abrand that supports a good causethan one that doesn’t.”
“I would help a brand to promoteits products or services if there is a good cause behind them.”
GLOBAL62%
INDIA78%
GLOBAL62%
CHINA77%
GLOBAL61%
BRAZIL80%
•Purposeisthestrategic,emotionaldrivingforcebehindanorganization/brand’scorevalueproposition.
•Purposeimbuessocietalrelevance,andagreaterreasonforbeingbeyondprofit,intoeveryinteractionwith stakeholders.
•Purposeprovidesafilterandfocustokeyinternalandexternalactivitiesdrivinginnovationandleadership.
•Purposeanswersthequestion:Whatdoyoustandfor?
…AndPurposeischangingthewaybrandsandcorporationsmust“gotomarket.”
Key conclusions from the goodpurpose study:
•Consumer Actionism – There is a global commitment to social concerns and a demand that organizations integrate Purpose into their business models.
•Emerging Markets Take the Lead – Consumer activism in most emerging markets around the globe surpasses that of the West.
•Purpose is Central to Marketing –Purposeisavitaladditiontothetraditionalmarketingmix,serving as a new point of differentiation.
•Green as Social and Economic Lever – Corporations are expected to take a stand on environmental issues;goinggreenisnolongersimplyacause,itisa“must-have”withtangibleeconomicbenefits.
What do you stand for?
BRAZIL 500CANADA 500CHINA 1000
FRANCE 500GERMANY 500INDIA 500
ITALY 500JAPAN 500MEXICO 500
NETHERLANDS 500UAE 250
UK 500US 1000
Methodology
StrategyOne surveyed 7,000+ consumers across 13 countries, aged 18-64
Page
3
As consumers’ relationships with social issues evolve, so do expectations for the private sector.
A growing interest in cause, coupled with new channels of communication, has prompted the
rise of “Citizen Consumers” – individuals who seek
deeper involvement with social issues and expect brands
and corporations to provide a means of engagement.
It is no longer enough for a corporation to simply donate
to a cause, but rather it must integrate Purpose into its
everyday business. Sixty-nine percent of consumers
believe that corporations are in a uniquely powerful
position to make a positive impact in the world.
Page
40 10 20 30 40 50 60 70
SHARE positive opinions and experiences
64%
RECOMMEND its products or services
66%BUY its products or services
66%
Citizen consumers’ growing interest in cause,
along with the power to promote brands
through social media, creates a mutually beneficial
relationship between profit and Purpose. Consumers
are willing to take action with companies that actively
support a good cause.
Page
5
Consumer ActionismSimilarly, more than one-third of consumers would punish a company that doesn’t actively
support a good cause by criticizing it to others, refusing to buy its products or services
and/or sharing negative experiences.
What are the implications for brands/corporations?
• Align Purpose with products and services
• Develop authentic Purpose for both business and social impact
• Purpose must be a long-term commitment embedded into overall business strategy
0 10 20 30 40 50 60 70 80
Want brands to make it easier for them to make a positive difference
71%Believe brands and consumers could do more to support good causes by working together
63%
As consumers’ relationships with social issues evolve, so do expectations for the private sector.
A growing interest in cause, coupled with new channels of communication, has prompted the
rise of “Citizen Consumers” – individuals who seek
deeper involvement with social issues and expect brands
and corporations to provide a means of engagement.
It is no longer enough for a corporation to simply donate
to a cause, but rather it must integrate Purpose into its
everyday business. Sixty-nine percent of consumers
believe that corporations are in a uniquely powerful
position to make a positive impact in the world.
Page
40 10 20 30 40 50 60 70
SHARE positive opinions and experiences
64%
RECOMMEND its products or services
66%BUY its products or services
66%
Citizen consumers’ growing interest in cause,
along with the power to promote brands
through social media, creates a mutually beneficial
relationship between profit and Purpose. Consumers
are willing to take action with companies that actively
support a good cause.
Page
5
Consumer ActionismSimilarly, more than one-third of consumers would punish a company that doesn’t actively
support a good cause by criticizing it to others, refusing to buy its products or services
and/or sharing negative experiences.
What are the implications for brands/corporations?
• Align Purpose with products and services
• Develop authentic Purpose for both business and social impact
• Purpose must be a long-term commitment embedded into overall business strategy
0 10 20 30 40 50 60 70 80
Want brands to make it easier for them to make a positive difference
71%Believe brands and consumers could do more to support good causes by working together
63%
In2010,emergingmarketsoutpacedthoseinthe
West in their relationship with Purpose. Mexico
and Brazil reported the highest percentages of
consumersthatare“moreinvolved”withcauses
nowthantheywereayearago.Eighty-onepercent
ofrespondentsinIndiaandeighty-ninepercentin
China said
that they are
personally
involved in
supporting a
good cause.
Consumers
in the above
markets are
more likely than other surveyed countries to buy
and promote the products and services
of brands that support good causes.
Emerging Markets Take the Lead
Page
6
These insights are particularly relevant for
multinationalcompaniesenteringnewmarkets,as
it presents the opportunity to cultivate an engaged
andPurpose-orientedconsumerbaseasdisposable
incomescontinuetoincrease.Pairingprofitwith
Purpose in such markets can also trigger innovations
in products and services worldwide.
Many emerging markets have developed economi-
callywhilebattlingsocietalissues,demonstratingthat
profitandPurposearenotmutuallyexclusive.
More than 7 in 10 consumers in emerging markets would take action to support brands with social Purpose.
“I would switch brands if a differentbrand of similar quality supported agood cause.”
“I am more likely to recommend abrand that supports a good causethan one that doesn’t.”
“I would help a brand to promoteits products or services if there is a good cause behind them.”
GLOBAL62%
INDIA78%
GLOBAL62%
CHINA77%
GLOBAL61%
BRAZIL80%
•Purposeisthestrategic,emotionaldrivingforcebehindanorganization/brand’scorevalueproposition.
•Purposeimbuessocietalrelevance,andagreaterreasonforbeingbeyondprofit,intoeveryinteractionwith stakeholders.
•Purposeprovidesafilterandfocustokeyinternalandexternalactivitiesdrivinginnovationandleadership.
•Purposeanswersthequestion:Whatdoyoustandfor?
…AndPurposeischangingthewaybrandsandcorporationsmust“gotomarket.”
Key conclusions from the goodpurpose study:
•Consumer Actionism – There is a global commitment to social concerns and a demand that organizations integrate Purpose into their business models.
•Emerging Markets Take the Lead – Consumer activism in most emerging markets around the globe surpasses that of the West.
•Purpose is Central to Marketing –Purposeisavitaladditiontothetraditionalmarketingmix,serving as a new point of differentiation.
•Green as Social and Economic Lever – Corporations are expected to take a stand on environmental issues;goinggreenisnolongersimplyacause,itisa“must-have”withtangibleeconomicbenefits.
What do you stand for?
BRAZIL 500CANADA 500CHINA 1000
FRANCE 500GERMANY 500INDIA 500
ITALY 500JAPAN 500MEXICO 500
NETHERLANDS 500UAE 250
UK 500US 1000
Methodology
StrategyOne surveyed 7,000+ consumers across 13 countries, aged 18-64
Page
3
Aroundtheworld,wearewitnessingrisinglevels
of consumer engagement with social issues as
well as heightened expectations of the role that
corporations and brands should play. A growing
bodyofinfluentialstakeholders—fromconsumers
toinvestors—hasincreaseditsdemandsthat
businesses leverage their core competencies
to help address social issues.
This brochure is based on the insights and
experienceofEdelman’sPurposepractitioners,
aswellasfindingsfromtheEdelman2010
goodpurpose®study.In2010,thegoodpurpose
study was conducted in 13 countries:Brazil,Canada,
China,France,Germany,India,Italy,Japan,Mexico,
TheNetherlands,UAE,UnitedKingdomandUSA,
with 7,259 consumersaged18-64.Thestudy
exploresconsumerattitudestowardsPurpose,
includingtheircommitmenttospecificissuesand
their expectations of brands and corporations.
A distinct shift occurred in the 2010 study results:
Consumers in emerging economies surpassed
Western consumers in their involvement in social
issues and support of brands and corporations
engagedinPurpose.Nevertheless,consumers
worldwide demonstrated their expectation that
companiessupportbothlocalandglobalcauses,
givingwaytotheriseofthe“CitizenConsumer.”
Pro-socialeffortstakemanynamesacrossthe
spectrum of corporate and brand citizenship.
AtEdelman,wecalltheseeffortsPurpose:
Thesynergybetweenanorganizationorabrand’s
social and business mission made manifest through
astrategic,differentiatingideaandexpressedalong
acontinuumthatincludesproductinnovation,
brandstrategy,corporatepositioning,supplychain
compliance,marketingandcommunications.
69% of respondents believe corporations are in a uniquely powerful position to make a positive impact on good causes.
Introduction
Page
2
Inanovercrowdedmarket,Purposestandsoutas
a point of differentiation. When choosing between
brandsofequalqualityandprice,consumersworld-
wide reported that Purpose outweighs both design
innovation and brand loyalty as the deciding factor.
Moreover,Purposeprovidesameansofengage-
ment between consumer and brand that cannot be
fulfilledthroughthetraditional4Psofmarketing:
Product,Price,Place(distribution)andPromotion.
Purpose provides an emotional connection with
consumers and opportunities for consumers to
work with brands towards common goal. Purpose
thusjoinsasthe5thPoftheage-oldmarketingmix.
Page
7
Asaresult,Purposeisnolongeroptionalforleadingbrandsand
corporations.Instead,itisanewbusinessimperativewiththepotential
to galvanize consumers. The 2011 Edelman Trust Barometer® found
thatthemajorityofrespondentsineverycountryagreedthat
“Corporations need to create shareholder value in a way that aligns
withsociety’sinterests,evenifthatmeanssacrificingshareholdervalue.”
Brandsthatdifferentiatethemselvesthroughauthentic,sustainedandwell-executedprogramscancreatebrand
ambassadors prepared to champion a company rather than its competitors.
What are the marketing implications for brands and companies?
•Whenqualityandpriceareequal,Purposeisacriticalpurchasemotivatorthatcandifferentiateacompanywithin a crowded space.
•Purpose provides deeper engagement and the ability to forge meaningful relationships with stakeholders.
•Consumers will take action to support companies with Purpose by recommending their products and services.
•Purpose can ignite the passion of individuals toward a brand.
Purpose is the 5th P
0 10 20 30 40 50
Brand Loyalty 27%
Design and Innovation
42%Social Purpose
31% When choosing between two
brands of equal quality and
price... social Purpose is the
number one deciding factor.
86% of global consumers believe that
business needs to place at least equal weight
on society’s interests as on business’ interests.
- Edelman goodpurpose® Study 2010
Inthe2010goodpurposestudy,protectingtheenvironmentrankedasthenumberonecausethat
consumerscareaboutworldwide.Thoughdifferencesexistinlocalmarkets,thepersistentgreentrend
indicates the necessity of adopting sustainable business practices. Going green is no longer optional
inthemindsofglobal,engagedconsumers.Seventy-threepercentofconsumersworldwide
reported that government and business need to work together more closely to ensure the
environmentisprotected.Infact,consumerssupportlegislationrequiringcorporationsto
meetcertainenvironmentalstandardsevenifitmightnegativelyimpactprofits.
Inadditiontoconsumerinterestinsustainability,morethantwo-thirdsofrespondents
worldwidebelieveprojectsthatprotectandsustaintheenvironmentcanhelpgrow
the economy.
What insights can we draw about environmental expectations of brands/corporations?
•Highconsumerexpectationsnecessitatethatbusinessesintegrateenvironmentalresponsibility into their core operating tenets.
•Brands and corporations are expected to work with government to ensure protection of the environment.
•Proactive environmental engagement can result in economic growth.
Green as Social and Economic Lever
Page
8
Page
1
Table of Contents
Introduction ... 2
Consumer Actionism ... 4
Emerging Markets Take the Lead ... 6
Purpose is the 5th P ... 7
Green as Social and Economic Lever ... 8
Citizen Consumer Insights ... 9
Edelman and goodpurpose 2010 ... 9
When creating programs, consider that Citizen Consumers:
1. Feel empowered to support social issues
2. Want brands to place at least equal weight on societal and business interests
3. Believe that corporations and government must work together to solve social issues
4. Consider many global issues to be local issues
5. Count on companies to have environmental initiatives and support other causes as well
6. ExpectinvestmentinanauthenticPurposethroughintegratedsupportinadditiontofinancialcontributions
7. Punish brands that do not have Purpose
8. Desire to be part of the solution by partnering with brands
9. Take concrete actions to support brands with Purpose
10. Use Purpose as a critical purchase motivator
Page
9
Citizen Consumer Insights
Edelman and goodpurpose 2010About the 2010 Edelman goodpurpose® studyThe 2010 Edelman goodpurpose®studyisthefirm’sfourthannualglobalstudythatexploresconsumerattitudesaroundsocialPurpose,includingtheircommitmenttospecificsocialissuesandtheirexpectationsofbrandsand corporations.ThesurveywasconductedbyStrategyOneandconsistedof20minuteinterviewsin13countriesamong7,259adults.OnlineinterviewswereconductedinBrazil,Canada,France,Germany,Italy,Japan,Mexico, TheNetherlands,UAE,theUnitedKingdomandtheUnitedStates.Face-to-faceinterviewswereconductedinChinaandIndia.Thestudyisrepresentativeofthecountrypopulation,exceptinUAE,whereitisrepresentative of the online population. For more information visit: www.goodpurposecommunity.com.
About EdelmanEdelmanistheworld’slargestindependentpublicrelationsfirm,withwholly-ownedofficesin53citiesand3,700employeesworldwide.EdelmanwasnamedAdvertisingAge’stop-rankedPRfirmofthedecadeand oneofits“2010A-ListAgencies”and“2010BestPlacestoWork;”PRWeek’s“2011LargePRAgencyoftheYear”and“2009AgencyoftheYear;”EuropeanExcellenceAwards’“2010AgencyoftheYear;”HolmesReport’s “AgencyoftheDecade”and“2009AsiaPacificConsultancyoftheYear;”andamongGlassdoor’stopfive“2011BestPlacestoWork.”EdelmanownsspecialtyfirmsBlue(advertising),StrategyOne(research),Ruth (integratedmarketing),DJEScience(medicaleducation/publishingandsciencecommunications)andMATTER(sports,sponsorshipandentertainment).Visitwww.edelman.comformoreinformation.
Toreceivenotificationofnewresearchandnews,jointhegoodpurposecommunityatwww.goodpurposecommunity.comandvisitourblogatgoodpurposeblog.com.
Citizens Engage!
www.goodpurposecommunity.com goodpurposeblog.com
[email protected]@Edelman.com
[email protected] Edelman goodpurpose ® Report 2010
