2. Fifth Global Consumer Study 2012
What consumers have to say from…
CANADA INDIA
500 500
BRAZIL CHINA
500 500
US JAPAN
500 500
UK UAE
500 500
FRANCE GERMANY
500 500
NETHERLANDS ITALY
500 500
BELGIUM INDONESIA
500 500
SINGAPORE MALAYSIA
500 500
StrategyOne surveyed 8,000 consumers across 16 countries, aged 18+
3. The World We are Operating In
Businesses Not Meeting
Declining Trust in Business
Expectations on Social Causes
3
5. Me: Empowered in SEA
„People like me‟ now have more power and influence to make a difference
77%
73%
66%
58% 57% 57%
44% 47%
41% 39%
37% 36%
29% 26%
21% 20% 20%
5
6. Business not meeting public‟s expectations in Malaysia
Business
Importance
Company
Performance
Q52-69. How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means that action is “not at all important to building your trust” and nine means it is
“extremely important to building your trust” in a company. (Top 2 Box, Very/ Extremely Important) General Population in Malaysia (excludes ‘Don’t Know’ responses);Q103-118. Please rate [INSERT COMPANY] on how well
you think they are performing on each of the following attributes. Use a nine-point scale where one means they are performing “extremely poorly” and nine means they are performing “extremely well”. (Top 2 Box,
Performing Very/ Extremely Well) General Population in Malaysia 6
7. Brand‟s Performance Gap in Addressing Societal Issues
9 in 10 Only 4 in 10 think that
businesses are performing
well in this area
Malaysians believe it is EVOLVING CONSUMERS
important for brands to
address societal issues
CONCERNED
VOCAL
EMPOWERED
7
8. How the Global Recession Affected Malaysians
“Has the global economic downturn affected you in any of the following ways?
Affected by economic downturn** 96%
85%
Reduced leisure shopping 62%
51%
Reduced use of electricity in my home 46%
38%
Reduced spending on food 46%
33%
46%
Was unable to donate as much money to societal issues 27%
22%
Drove less frequently 28%
Stopped saving money 23%
28%
30%
Reduced consumption of water 26%
18%
My salary decreased 19%
Was unable to pay some or all of my bills/expenses 34%
18%
Was unable to pay medical expenses or afford healthcare 24%
12%
Had less time to volunteer for a societal issue 25%
12%
Lost my job or got laid-off 14%
11%
Moved into a smaller home 11%
8%
Moved in with friends or family 7%
5%
Other 5%
5%
3%
None of the above 13%
Don't Know 1%
2%
Malaysia Global Total
** ‘Affected by economic downturn' includes all responses except 'none of the above' and 'don’t know' 8
9. How Involved & Responsible Are Malaysians?
“Are you personally involved in supporting any good cause?” “Who from the list below do you believe should be most responsible
for addressing societal issues?”
62%
Government
93% 54%
Yes
60% 16%
People like me
19%
Non-Governmental 13%
Organisations 11%
5%
No 2%
Business in general
34% 5%
6%
Religious Institutions
4%
2% 1%
None of the above
Don't Know 2%
6%
1%
Don't Know
4%
Malaysia Global Total
9
10. What Malaysians Care About
“How much do you personally care about the following good causes?”
#1 Improving the quality of healthcare 87%
89%
#2 Protecting the environment 85%
89%
#3 Equal opportunity to education 82%
86%
Ensuring access to safe drinking water 80%
86%
Helping raise people's self-esteem 78%
78%
Encouraging tolerance for people who are different 77%
82%
Stopping relationship violence and abuse 76%
84%
Reducing poverty 75%
84%
Supporting human and civil rights 75%
83%
Aiding in disaster relief 71%
83%
Alleviating hunger and homelessness 70%
83%
Fighting the spread of global disease and pandemics 68%
80%
Supporting animal rights 60%
74%
Supporting the creative arts (music, art, literature, etc) 56%
67%
Malaysia Global Total
10
11. 5 Years of Purpose
The Reengineering of Brand Marketing
12. The Power of Purpose
From product innovation and R&D, to
supply chain optimisation and 360
marketing, our study reveals it is the
power of Purpose that is helping to drive
consumer preference in a world where
trust in corporations is low and
differentiation between brands is
negligible
13. Profit + Purpose: The New Normal
It is OK for brands to support good causes and make money at the same time
+33%
90%
79%
80% 76%
70%
70% 68%
60% 57%
50%
40%
30%
20%
2008 2009 2010 2012 Malaysia
13
14. Social Purpose as Purchase Trigger
When quality and price are the same, Social Purpose most important factor
60%
+ 26% 53%
50%
52%
Growth from 2010
• Japan (100%)
43%
42% 41% • China (79%)
40%
• Netherlands (43%)
• Germany (36%)
30% • India (43%)
20%
2012: Malaysia (52%)
2008 2009 2010 2012
14
15. If Quality and Price were the Same…
Social purpose would rank highest as a purchasing factor.
Malaysia Global
12% Social 17% Social
Purpose Purpose
Design or Design or
36% 52% Innovation
55% Innovation
29%
Loyalty to the Loyalty to the
Brand Brand
15
16. Purchase Frequency
47% globally and 54% in Malaysia
purchase cause-supporting brands at
least monthly
Global Malaysia
84%
68% AT LEAST
AT LEAST YEARLY
YEARLY
21% 29%
EVERY 6 TO 12 MONTHS EVERY 6 TO 12 MONTHS
47% 54%
AT LEAST AT LEAST
MONTHLY MONTHLY
16
20. How Important Is It to be Societally-Friendly?
If cost were not a factor:
Would prefer to live in an environmentally- 86%
friendly house than merely a large house 81%
Would rather have a brand that supports the 81%
livelihood of local producers than a designer
brand 81%
Would rather drive a hybrid car than a luxury 84%
car 79%
Want a job that allows them to give back to 67%
society 63%
Malaysia Global Total
20
21. Only 42% of Malaysians see Businesses Addressing
Societal Issues Well
Business in General‟s Performance in Addressing Societal Issues
Excellent/Good 42%
28%
Poor/Very Poor 12%
28%
Excellent 12%
7%
Good 31%
21%
Fair 41%
38%
Poor 10%
22%
Very poor 1%
6%
Don't know / Refused 5%
5%
Malaysia Global Total
21
22. 82% of Malaysians Want More Than Just A Product
“Below are some things that people have said about supporting good causes. How much do you agree or disagree with each of the
following statements?”
I'm looking for brands to do more for me today than just provide 82%
me with a product 64%
It is OK for brands to support good causes and make money at the 75%
same time 75%
73%
I have more trust in a brand that is ethically and socially responsible
73%
I would switch brands if a difference brand of similar quality 73%
supported a good cause 73%
I am more likely to recommend a brand that supports a good 72%
cause than one that doesn't 72%
I would help a brand to promote their products or services if there 71%
is a good cause behind them 71%
I want brands to make it easier for me to make a positive 69%
difference in the world 69%
Malaysia Global Total
22
23. Trust & Society
51% say they trust a
company that actively
supports a societal issue,
while only 23% trust a company
that does NOT actively support a
societal issue.
*Photos Courtesy of Sukanto Debnath and hobvias sudoneighm. 23
24. Paying for Purpose
Consumers in SEA willing to pay a premium for Purpose
80%
71%
55% 55% 54%
43% 44% 42%
39% 38%
35% 34%
30% 30% 29% 29% 28%
24
25. Trust and Distrust in Action
How likely would you be to do the following in relation to a company that actively supports a good cause?
Trusted Companies
87%
Buy its products / services
76%
83%
Recommend its products / services
75%
82%
Share positive opinions / experiences about the company
72%
65%
Invest in it
45%
Malaysia Global Total
25
27. It is critical for companies to make consumers
aware of their efforts
92% 90% 88% 87% 87% 86% 84% 84%
80% 80%
76%
73% 73% 73% 72% 70% 68%
Malaysia: 87% say it is important for companies to spread awareness of their efforts to address societal issues. Comparatively, 80%
globally share this view. 27
28. Digital & Social Media Central to Communications
Internet Mobile Phone
73% 54%
At least monthly At least monthly
55% 30%
15% 22%
Every 6 - 12 months Every 6 - 12 months
18% 15%
88% 76%
At least yearly At least yearly
73% 45%
Malaysia Global Total
On average, how often do you use the Internet /Mobile Phone to take part in promoting or addressing a societal issue? 28
29.
30. The New Imperative
Rather than merely exercising your
“license to operate,” leading brands
and corporations of the future must
move beyond operational imperatives
and social add-on‟s to establish your
“license to lead.”
31. 5 Years of Learning Informs Us
1 “Purpose” key driver in reengineering brand marketing
2 “Purpose” definitive purchase trigger
3 Malaysia bullish on “Purpose”
4 Operational excellence + societal performance rewarded
5 Corporations earn License to Lead via “Purpose”
31
32. Not IF, but HOW…
LEAD Powerful programs are leader-led
CONSTRUCT Start with depth, not scale
CUSTOMISE Customise for local execution
COLLABORATE Work with NGOs, colleagues, competitors
MEASURE Build performance measures up front
NARRATE Story, story, story
ENGAGE Employees, partners, consumers
EVOLVE Evolve programs to stay relevant
32
For reference, we defined societal issues and good causes in the survey as the following:…different societal issues, which include social and environmental issues that impact individuals, local communities, the nation and/or the world, as well as different good causes, which include initiatives that seek to positively benefit others and improve lives.
The goodpurpose® study is Edelman’s annual global intellectual property researchstudy that over the course of five years explores consumer attitudes around social purpose, including their commitment to specific societal issues and their expectations of brands and corporations. The survey was conducted in 16 countries with 8,000 adults (ages 18+), and is the only global, longitudinal study of its kind.
Hungry: Ready for jobs but can’t get anyConcerned for othersVocal: Arab Spring – social media empowered citizens
Q30. How much do you agree or disagree with the following statement? - Compared to five years ago, ‘people like me’ now have more power and influence to make a difference. 16-country global total and across 16 countries (Top 2 Box, Agree)
Inclination towards Purpose has grown considerably across many facets of traditional brand marketing and communication. There has also been dramatic acceptance of companies and brands making doing well while doing good.Q40-46. [TRACKING] Below are some things that people have said about supporting good causes. How much do you agree or disagree with each of the following statements? “IT IS OK FOR BRANDS TO SUPPORT GOOD CAUSES AND MAKE MONEY AT THE SAME TIME” (Top 2 Box, Agree) 10-country global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore and UAE)
When quality and price are equal, the most important factor influencing brand choice is Purpose. Across the globe, the prominence of Purpose as a purchase trigger has risen 26% since 2008. Purpose is outpacing design/innovation & brand loyalty…. infusing a brand with an authentic and aligned Purpose provides distinct competitive advantage.Q48. [TRACKING] Now, if you had to choose between two brands that were the same in quality and price, please rank the following remaining factors from 1 to 3 in the order that would affect your decision when selecting a brand where 1 is the most important factor and 3 is the least important. 10-country global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore and UAE) (% WHO RANKED SOCIAL PURPOSE FIRST)Note: In the question, “social purpose” is defined as: Benefits others through charity or selfless acts
Consumers in Purpose Bull Markets - have much higher expectations of and engagement with brands and corporations on societal issues. These consumers’ passion and action on behalf of Purpose stands in contrast to consumers in the more mature Purpose “Bear” Markets, like the US and Western EuropeQ40-46. [TRACKING] Below are some things that people have said about supporting good causes. How much do you agree or disagree with each of the following statements? (Top 2 Box, Agree)Purpose Bull Markets include: China, India, Indonesia, Malaysia, UAE, Brazil. Purpose Bear Markets include: U.S., UK, France, Germany, Italy, Netherlands, Belgium, Japan
As social Purpose’s role in purchasing decisions has increased, purchase frequency has also intensified: 47% of global consumers buy brands that support a good cause at least monthly, a 47% increase from 2010. Q47. [TRACKING] On average, how often do you buy a brand that supports a good cause? (At least monthly NET, Every 6-12 months NET) 10-country global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore and UAE)
Singapore and Global data are not very differentIn Singapore, if cost were not a factor:84% would prefer to live in an environmentally-friendly house than merely a large house (16%).
Singapore and Global data are not very differentIn Singapore, if cost were not a factor:81% would rather have a brand that supports the livelihood of local producers than a designer brand (19%).
Singapore and Global data are not very differentIn Singapore, if cost were not a factor:79% would rather drive a hybrid car than a luxury car (21%).
Over one million since 2006 ($40 – 60 USD per pair)For every pair of TOMS Shoes purchased, a pair of new shoes is given to a child in need. Over 1,000,000 pairs of shoes have been given to children under the One for One program since TOMS launched in 2006.[18] The canvas shoes have been given to children in more than 20 countries worldwide, including the United States (Louisiana, Kentucky, Mississippi and Florida), Argentina, Ethiopia, Rwanda, Guatemala, Haiti, and South Africa. TOMS are sold at more than 500 stores nationwide and internationally, including Neiman Marcus, Nordstrom, and Whole Foods Market, which features styles made from recycled materials.[19]
Make consumers aware: 80% of global consumers believe it is important for companies to make you aware of their efforts to address societal issues.Q98. How important is it for companies to make you aware of their efforts to address societal issues? (Top 2 Box, Important NET) 16-country global total and across 16 countries
Note: Insights based on results and experience in practice.
