The relationship between ‘brand purpose’ and ‘brand communication’
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Ian Rumsby's presentation at the ICCO Summit 2014 in New Delhi
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The relationship between ‘brand purpose’ and ‘brand communication’
- 1. PURPOSE Its relevance, meaning and the opportunity it presents us Ian Rumsby, Weber Shandwick Asia Pacific
- 4. “If you’re still seeing our business essentially as a giant factory producing outputs, instead of a system that creates real, positive, human outcomes, - you’re still stuck in the industrial age, while the rest of the world, especially our customers, are beginning to take a quantum leap into a human age – an era where a life meaningfully well lived is what really counts.” Umair Haque, Havas Media Labs
- 5. Purpose A clear purpose provides an organisation—from any industry and of any size—with the connective thread that aligns all operations and audiences; the heart and soul to connect more meaningfully with the people that matter; and an essential foundation for planning and decision- making.
- 6. WHY THE NOISE AND WHY NOW? Five Things that are Creating the Ripple
- 7. “We have to do more work that matters. It’s not just more, it’s more good.” Wendy Clark Coca-Cola Global Marketing Chief
- 8. “Over the past three decades we have drifted from having a market economy to becoming market societies.” Michael Sandel, Political Philosopher Market Societies
- 9. Market Expectation “People are now more aware of the origin of a product and the ethics used behind producing that product. Consumers expect goods to be made properly and issues such as where a product is made and whether or not it is fair trade are now more important than ever.” Imogen Fowler, Hogan Lovells *FutureBrand, Made In ..
- 10. By 2030, 60% of the worlds population will live in cities. Urbanisation
- 11. Talent Expectation “Millennials work more closely together, leverage right and left brain skills, ask the right questions and take risks previous generations resisted. They truly want to change the worlds and use technology to do so.” Mike Marasco Northwestern University’s Nuvention Initiative
- 12. Greater trust means that your stories need to be grounded in your beliefs as much as your products Brand differentiation Utility and Significance
- 13. WHAT’S THE IMPACT? The Motivations Behind a Renewed Interest in Purpose
- 14. infrastructure Why we do itHow we do it What we do Who we are What we have skills and approach purpose-driven products & services talent & attitude Companies and brands are shifting from ‘What’ to ‘Why’ Brand DifferentiationTangible/Rational Intangible/Emotional
- 15. WHAT POINT OF DIFFERENCE MARKET-DRIVEN COMPETITIVE EMPLOYEES CONSUMERS COMMUNICATIONS ADS SOCIAL RESPONSIBILITY LOYALTY TRANSACTIONAL LEADERSHIP NEXT QUARTER WHY POINT OF VIEW ETHOS-DRIVEN DISTINCTIVE MISSIONARIES ADVOCATES COMMUNITIES ACTIONS SOCIAL OPPORTUNITY LOVE TRANSFORMATIONAL LEADERSHIP NEXT QUARTER CENTURY A Brand A Stand There’s a Mindset Shift Too
- 16. 16 Jim Stengel Former CMO, P&G Author of Grow: How Ideals Power Growth and Profit at the World’s Greatest Companies. More profitable.
- 17. Walmart “We save people money so they can live better.” Increases sales Motivates workforce More valuable brand
- 18. Tesla “Accelerating the world’s transition to electric mobility” Provokes innovation and delivers meaningful social impact.
- 19. Builds a strong emotional connection Redefines the category Delivers sustainable value Makes people’s lives betterCreates engaging experiences at every touch-point Has a compelling vision of the future WANTS TODAY NEEDS TOMORROW Purpose-led brands have to balance:
- 20. “Our 100% pure smoothies . No added sugar. No concentrates. No funny business.” Innocent Tasty or healthy?
- 21. Context & Culture Connection Points Category & Competition Content & Capabilities Offer Behaviours Why you’re here Culture Building a purpose-led organisation
- 22. There are three distinct types of purpose. Determining whether an organisation is moral, institutional or value based is important.
- 23. The purpose triangle WORLD (Moral) PERSONAL (Values) INDUSTRY (Institutional) To make the world a better place. They sell the cause, envision utopia, and take the high road. Then invite people to join a movement To better your personal life with positive emotions and experiences. To better the industry, find a failure to be corrected. Create positive outcomes through rethinking internal norms.
- 24. 24 With every product you purchase, Toms will help a person in need. One for One. World (moral) purpose
- 25. 25 Making everyone an athlete World (moral) purpose
- 26. 26 To be the earth's most customer centric company. INDUSTRY (INSTITUTIONAL) PURPOSEIndustry (institutional) purpose To be the earth’s most customer centric company.
- 27. 27 The highest standards of corporate behaviour towards everyone we work with, the communities we touch, and the environment on which we have an impact. Industry (institutional) purpose
- 29. 29 We strive to refresh the world, inspire moments of optimism and happiness, create value and make a difference. Personal (values) purpose
- 30. THE RULES OF PURPOSE-LED COMPANIES Behaviours, Personality and Commitment
- 31. Authenticity Purpose can not be invented for commercial gain. It’s not a stakeholder engagement tool. It’s a sustained business imperative. 1.
- 33. Simplicity Clear, crisp and articulate. The more words, the less it resonates. 2.
- 35. Visible Purpose must be evidence-based. Show progress. 3.
- 36. Next Generation Hothouse | March 2014 | © FutureBrand 2014 36
- 37. The Anchor-Point Use it as the basis of every story you tell. Decision making is an emotionally driven process. 4.
- 40. EMBRACING PURPOSE Implications and opportunities for the PR industry
- 42. Thank you.
Editor's Notes
- Will talk about three things: why the resurgence in interest in Purpose; its relevance and meaning and how it presents the public relations industry with an important opportunity
- The benefits of jet-lag. Picture taken earlier this year. I don’t know his name, nor do I know the journey he was about to take. But I did know that his sole purpose in life was to seek salvation through disciplined meditation. He has a single purpose, clearly defined, clearly understood and with little ambiguity. There is much that brands could learn from him
- Shortly after that trip, I attended a residential learning initiative called the Hothouse. On the one hand, Purpose has been around for ever. It is the basis of religion and human existence. And yet there seems to be a renewed energy and interest in it. Particularly amount those in our junior ranks. There’s a groundswell of interest in Purpose.
- We’re not alone. There’s a plethora of commentators and authors who are grappling with the emotive elements of organisational purpose and why its becoming so important to us. But before we go any further, let’s at least try to define what we mean by it.
- Consistency Spirit Strategic rigour
- Social impact initiatives were everywhere in Cannes. And they won much too. There was a real sense that technology was finally being used to facilitate emotional experiences rather than be the experience itself
- The disparity of wealth, particularly in emerging markets. The more things money can buy the more lack of affluence matters. When it governs access to the essentials of good life – political voice and influence, education, healthcare – then it provokes inequality matters. When money comes to govern those things, inequality matters a great deal. The marketisation of everything sharpens the sting of inequality and its social and civic consequence.
- From Lehmanns to BP, there’s a litany of organisations that have contributed to the erosion of trust between organisations and their publics. It’s not just sustainability too. People want to know the history of the product and of the organisation. Accountability is everywhere. The demand for greater transparency. Fostered through disruptive technologies Since the GFC, financial services companies have a mountain to climb to rebuild trust and broken reputations with customers, media, and government alike. THE ENVIRONMENT CONTINUES TO BE HOSTILE.
- By 2030, 60% of the world’s populations will live in cities. Enormous pressure on civic leaders. How can cities deliver the healthcare and education services required to reach the required threshold. Role for brands with a shared purpose that goes beyond commitment to communities
- Not just employees, but those we seek to attract too. To attract people, organisations need to demonstrate diversity, freedom of expression and tolerance. To retain people and leverage them as an asset, organisations need to project clarity on what they stand for. Their purpose. And then there’s brand differentiation by creating an emotional connection around purpose. Like this.
- A market shift in recognition to mix up utility and significance. That is left brain and right brain. The shift to service based economies and the need to find a way to understand what they do and why they do it. And when that’s beautifully articulated, simply and with authenticity, it can give you goosebumps.
- Taking a stand means there is a need to shift the mindset from ‘What’ to ‘Why’ What. How. Why. Allows for product diversification An analysis by Booz & Co of consumer attitudes and spending reveals a return to traditional values, driven by consumers searching for quality, affordability and connection. 1. Back to basics values: 78% of those surveyed reported they are happier with a more back-to-basics lifestyle, while 88% reported they buy less-expensive brands than they used to. 2. Empowerment: people want to do more on their own; resourcefulness and self-efficiency are viewed as virtues, and excessive consumption as a sign of weakness. For instance, an organization like Etsy, an online marketplace for aspiring artists, resonates in today’s marketplace, because its goal is to help people learn new skills while connecting with others. 3. Transparency Breeds Trust: Companies need to meet the expectations of a social media savvy customer and be honest beyond their labels. 4. Companies that care: kindness and empathy are now dominant discriminators in commerce, and are valuable attributes of the best companies. The ability of a company to identify with its customers is now a prerequisite for any brand in the post-crisis age. Today, openness, humility and understanding are critical.
- Purpose led businesses require more than a cool tag line, they require a new mindset. And it allows them to do so much more. Brand purposes are not just feel good exercises.
- After Purpose transformed the fortunes of P&G brands like Dove, Old Spice, and Always, Jim Stengel, former P&G CMO made purpose a number one priority of every brand in his portfolio. And he wrote “GROW” which shows the cause and effect relationship between a brand’s ability to serve a higher purpose and its financial performance. Investment in these companies – in the form of his index, the Stengel 50 – over the past decade would have been 400% more profitable than an investment in the S&P 500. P&G: To provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come. Tagline (the everyday effect.)
- Wal-Mart realized that its promise of everyday low prices was empty without its purpose as a support. After they added that the purpose of lower prices was to provide better lives for their families, Wal-Mart grew dramatically. And not only did it boost sales, even more critically, allowed employees to understand “why we are here.” It not only clarifies their roles, but signifies their intrinsic value to the organization and its reputation as a brand. They know that as a result of their work, they’re making it easier for moms to dress their kids in style without sacrificing after-school ballet or karate class, or that food gets put on the table with money left over for family outings. They can directly experience how the company’s purpose pays off, not only in profits, but in customer satisfaction. Clear awareness of how their jobs affected peoples’ lives for the better has created a stronger, more motivated workforce, which, in turn, has made Wal-Mart a stronger, more valuable brand.
- The youngest U.S. automaker, ranks in the top five brands among people surveyed by Consumer Reports. Tesla is revolutionizing the way people interact with their cars and dealerships, and it’s paying off. Third biggest-selling luxury car, $25B valuation, CEO named Fortune’s man of the year, Fast Company’s most innovative companies, and get described as the most disruptive intersection of manufacturing, innovation and capital experienced by the auto industry in more than a century.
- The commercial reality – there’s a tension between immediate and future. Our today self often loses to our tomorrow self. We believe that by creating brands that balance what we want today with what we need tomorrow, we can creative a more positive future.
- Your today self desires something tasty, but your tomorrow self wants to be healthy. There doesn’t need to be a compromise. Now everyone desires a better future – but this desire if often compromised by todays reality – I really think I should be fit and healthy – but that donut looks really good. A great example of a brand that gets the balance right is innocent drinks, where your today self desires something tasty, but your tomorrow self wants to be healthy. There doesn’t need to be a compromise. A FB understands this and is designed to avoid the compromise of what we want today and what we need tomorrow.
- Without clarity of purpose, it becomes difficult to connect other reference points to the development of a position or strategy or anything else.
- Altruism
- Heroism. To bring inspiration and innovation to every athlete in the world.
- Leadership
- Excellence
- BMW Brand Campaign Elicit pleasure
- Experiencing happiness.
- Be motivated by the business, not by the customer.
- When it comes to your customers, honesty is always the best policy, even if it means being honest about something that you’re not exactly proud of. Brands need to know that, when presented with honesty, consumers become loyal enthusiasts. Being honest does not mean being perfect. it simply means truthfully communicating the challenges being faced, and then putting in the legwork to address those challenges. Patagonia encourages consumers to buy less by promoting its Common Threads Initiative on its home page, advocating sustainability. The company says: “We design and sell things made to last and be useful. But we ask our customers not to buy from us what you don’t need or can’t really use. Everything we make--everything anyone makes--costs the planet more than it gives back.” Patagonia makes some of the best, and most expensive outdoor gear in the world, but the company’s mission is bigger than simply maximizing profit. This holiday campaign follows last year’s groundbreaking advertising strategy featuring an ad in the New York Times on Black Friday saying “Don’t Buy This Jacket.” That’s right--an ad discouraging sales on the biggest shopping day of the year. But like any great campaign, their message the past two years is tied to the brand’s promise. Environmentalism is at the core of Patagonia, but to specifically discourage sales is an unusual maneuver since Patagonia is not a non-profit organization. It’s an exceptionally profitable manufacturer and retailer generating $400 million in revenue each year. Patagonia makes some of the best, and most expensive outdoor gear in the world, but the company’s mission is bigger than simply maximizing profit. The mission is: “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.”
- Lesson #1. We spend a lot of time trying to win business. And often that means getting stuck in the way we can win the pitch in the boardroom. So what if we stopped thinking about the clients pitch team and started thinking about what we really, really were setting our to do. Because there’s honesty in great ideas. We want to move people. To inspire them to do something. Go back and read our Rules of Engagement. That’s what we’re really trying to do.
- Lesson #1. We spend a lot of time trying to win business. And often that means getting stuck in the way we can win the pitch in the boardroom. So what if we stopped thinking about the clients pitch team and started thinking about what we really, really were setting our to do. Because there’s honesty in great ideas. We want to move people. To inspire them to do something. Go back and read our Rules of Engagement. That’s what we’re really trying to do.
- Show the impact of your purpose with facts, proof points, data viz, anyway to make it real. Timberland shoes: does this very well by having a packaging label that shows exactly what went into making the shoes that you’re buying and how much energy and resources it cost. Showcasing their sustainability efforts through things like their use of renewable energy and recycled materials.
- Lesson #1. We spend a lot of time trying to win business. And often that means getting stuck in the way we can win the pitch in the boardroom. So what if we stopped thinking about the clients pitch team and started thinking about what we really, really were setting our to do. Because there’s honesty in great ideas. We want to move people. To inspire them to do something. Go back and read our Rules of Engagement. That’s what we’re really trying to do.
- Discussion is focused on creative acumen, function and delivery. Problem-solving dictates a need to better understand how to help an organisation establish, articulate and deliver its purpose. That requires a new breed of people – new skills A way to think about how we can connect our clients And counter the threat of us becoming a commodity based business. But it also requires a new mindset A mindset we need to demand from everyone that joins us. The constant state of a curious mind.