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Brand Purpose: Growth driver or bandwagon?

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Brand Purpose: Growth driver or bandwagon. This was the main question at Brand Learning and WARC’s roundtable on the 31st of October. If you were unable to make this lively and provocative discussion then please look through Imaad Ahmed and Emma Fould’s presentation. Get in touch to learn more about how Brand Learning can help you build your marketing and sales capabilities. http://www.brandlearning.com/contact-us/

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Brand Purpose: Growth driver or bandwagon?

  1. 1. © BRAND LEARNING 2017 Inspiring people. Lifting capabilities. Growing organisations. Brand Purpose: Growth driver or bandwagon?
  2. 2. © 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
  3. 3. 2WWW.WARC.COM © 2017 WARC The global authority on advertising and media effectiveness
  4. 4. © BRAND LEARNING 2017 4 Our agenda today | What is Brand Purpose? | The case for Purpose as a growth driver | The Purpose backlash | Discussion | Activating Brand Purpose across the customer experience | Measuring Purpose | Discussion | Wrap Up 01 02 03 04 05 06 07 08
  5. 5. © BRAND LEARNING 2017 5 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?
  6. 6. © BRAND LEARNING 2017 6 A brand’s higher ideal that positively impacts customers’ and employees’ lives The reason a brand exists Defining Brand Purpose
  7. 7. © BRAND LEARNING 2017 7 The Stengel effect
  8. 8. © BRAND LEARNING 2017 8 A clear purpose is No 1 differentiator of Growth Drivers Source: Brand Learning Growth Drivers Study 2016
  9. 9. © BRAND LEARNING 2017 9 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
  10. 10. 10 WWW.WARC.COM © 2017 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
  11. 11. 11 WWW.WARC.COM © 2017 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?
  12. 12. 12 WWW.WARC.COM © 2017 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
  13. 13. 13 WWW.WARC.COM © 2017 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
  14. 14. Or is Purpose just a bandwagon? 17WWW.WARC.COM © 2017
  15. 15. 15WWW.WARC.COM © 2016 15WWW.WARC.COM © 2017 “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" 1 2 3 4 Source: Seven lessons from WARC’s 2017 Cannes Analysis
  16. 16. © BRAND LEARNING 2017 16 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?
  17. 17. © BRAND LEARNING 2017 17 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?
  18. 18. © BRAND LEARNING 2017 18 Done well, purpose sets the direction for a joined-up customer and employee experience
  19. 19. © BRAND LEARNING 2017 19 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% PRIORITIZERS Purpose clearly articulated and understood DEVELOPERS Purpose understood by some areas better than others LAGGARDS Purpose clear articulated and understood DEVELOPERS PRIORITIZERS LAGGARDS
  20. 20. © BRAND LEARNING 2017 20 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.
  21. 21. © BRAND LEARNING 2017 21 Marks & Spencer identified a new Purpose for its food business Making every food moment special
  22. 22. © BRAND LEARNING 2017 22 Customer Experience principles were developed to deliver on the purpose
  23. 23. © BRAND LEARNING 2017 23 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 from Companies such as Unilever, Heinz and Nestle EMPLOYMENT SURVEY SCORES +37 %
  24. 24. 24WWW.WARC.COM © 2016 24WWW.WARC.COM © 2017 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 1 2 3 4 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
  25. 25. 25 WWW.WARC.COM © 2017 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%
  26. 26. © BRAND LEARNING 2017 26 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?
  27. 27. 27 WWW.WARC.COM © 2017 Brand Purpose: Growth driver or bandwagon?
  28. 28. © BRAND LEARNING 2017 Get in touch IMAAD AHMED imaad.ahmed@warc.com Emma Foulds WARC BRAND LEARNING emma.foulds@brandlearning.com
  29. 29. © BRAND LEARNING 2017 29 UK Brand Learning Partners Ltd. Burgoine Quay 8 Lower Teddington Road Hampton Wick Kingston-upon-Thames Surrey, KT1 4ER Tel: (+44) 208 614 8150 US Brand Learning Inc. 80 Broad Street Suite 2101 New York NY 10004 Tel: (+1) 212 392 4898 Singapore Brand Learning Pte Ltd. 3 Temasek Avenue Centennial Tower Level 21-00 Singapore 039190 Tel: (+65) 6549 7935 Inspiring people. Lifting capabilities. Growing organisations. This presentation/document contains the copyright work of The Brand Learning Partners Ltd and contains trade marks which are the property of The Brand Learning Partners Ltd (including, without limitation, Brand Learning ®, the Brand Learning Propeller ® device and the “Brand Learning Wheel™” (the “Marks”).) No rights, of ownership or otherwise, are hereby granted in or to the Marks; which may not be used or reproduced without the prior written consent of The Brand Learning Partners Limited. This presentation/document also contains materials, such as illustrations, photographs and trade marks, owned by third parties (“Third Party Materials”) and which are subject to restrictions and other conditions on use. You are required to obtain the consent of the relevant third party to any reproduction or other use of the Third Party Materials and nothing in this presentation grants or implies any grant of any such rights on the part of The Brand Learning Partners Ltd. © The Brand Learning Partners Limited, 2016. brandlearning.com @brandlearning

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