Unveiling a brand's Purpose possesses a remarkable ability to infuse its DNA with a profoundly personal and human touch. Yet, amidst this strategic juncture, a question emerges: is this path more potent than the well-trodden avenue of commercial tactics?
In this article, we embark on a transformative journey, peeling back the layers that distinguish mere marketing from the art of humanizing a brand. This voyage not only shines a spotlight on the paramount importance of crafting an authentic brand purpose but also delves into how it acts as the catalyst propelling growth and devotion amongst customers. Within these pages, we also uncover how a purpose can metamorphose transactional rhetoric into a captivating narrative capable of igniting employee zeal and captivating the very essence of hearts. The narrative unfurls, woven with real-life narratives of trailblazing brands (Nike, Unilever, Procter & Gamble, to name a few) carving a unique niche in the world through the sheer power of their profound purpose.
But let's embark on this voyage with a shared conviction: a brand's purpose isn't just an overused corporate buzz phrase. It's an instrument that can amplify a brand's influence to astonishing heights. Shall we commence this exploration?
Beyond Profit: Unleashing the Alchemy of Purpose to Humanize Brands
A brand's role extends beyond the transactional; it's a strategic anchor elevating a business above the competitive fray. It's the delicate interplay of functional and symbolic attributes that speak to consumers, fanning the flames of sales. However, amidst this intricate dance, the emergence of Purpose takes center stage – a catalyst that transforms a brand into a sentient, breathing entity, transcending the mundane world of commerce.
Indeed, a brand's purpose becomes its raison d'être, transcending the confines of sales generation. This isn't to be misconstrued with the 'brand promise,' tethered solely to the financial aspirations of the organization.
But what happens when commerce governs dialogue? We wade through transactional waters, an approach that raises an intriguing query: can a CEO's discourse, centered on market supremacy, genuinely galvanize an organization's workforce? Can a marketing narrative, pivoting around product utility, truly captivate and retain customers?
Here's an undeniable truth: consumers aren't merely purchasing products; they're seeking the promise of benefits. And countless studies reveal a chasm between employees motivated by remuneration and those driven by the purpose of improving lives – whether personal, communal, or planetary.
Pragmatism, of course, remains pertinent. Most of us labor for sustenance, within organizations that exist to appease shareholders. However, even the pragmatic among us discern that a strictly transactional relationship lacks the vigor required to engage employees meaningfully or to foster unwavering brand loyalty. Let's face it – consumers don't buy products or services to bolster a brand's shareholders. Similarly, an employee's commitment isn't necessarily spurred by a directive for heightened efficiency driven by shareholders seeking return on investment.
When Purpose Overrides Business Strategy
The advantages of humanizing businesses versus instrumentalizing them are evident, though articulating qualitative merits in a financial and quantifiable business sphere remains a challenge. Alas, emotions and sentiments encompassing the 'brand purpose' can sometimes lull boards of directors entrenched in financial logic or those immersed in pragmatic commercial culture.
As Peter Drucker insightfully noted, organizational culture devours strategy for breakfast.
Thus, assessing the economic impact of weaving brand purpose into the corporate fabric assumes paramount significance. Kantar's endeavor, a colossal study encompassing over 20,000 consumers, aimed precisely at comprehending the relevance of brand purpose. The outcomes outshone even the most sanguine expectations, unveiling that brands armed with a well-defined purpose witnessed a staggering 175% growth in brand value over a 12-year span. In contrast, brands with a moderately perceived purpose achieved 86% growth, while those devoid of any purpose or perceived weakly clocked 70% growth.
To distill these statistics – companies embracing a well-defined purpose effectively doubled their brand value compared to their purpose-void counterparts.
Show me the money
Professor Edwards Deming once quipped, 'in God we trust, all the rest must bring data.' Though he breathed his last in 1993, his axiom persists as a touchstone for validating conceptual and intangible notions – our current topic of exploration. Thus, allow me to present the figures that lend empirical credence to the financial dividends of a well-defined brand purpose seamlessly woven into corporate strategy.
In the tome "Firms of Endearment: How World-Class Companies Profit from Passion and Purpose" authors meticulously traced the financial trajectory of 18 purpose-driven enterprises across a decade. Their conclusions are staggering – these enterprises enjoyed an average annual return on equity of 13.1%, a 9% surge compared to the broader S&P 500 index.
"Built to Last: Successful Habits of Visionary Companies" reiterates these findings, highlighting that companies driven by purpose consistently outpace market averages, often by a staggering 15-fold margin compared to those centering their strategy on less purpose-driven foundations.
Interestingly, the virtue of a corporate purpose also demonstrates resilience during crises, such as the recent COVID-19 pandemic. Just as a vaccine bolsters immunity, a well-defined purpose shielded companies that adroitly embraced it in the face of adversity. A 2021 study from Columbia Business School's Journal of Applied Corporate Finance underscored this phenomenon, revealing that companies with a well-defined brand purpose registered positive financial indicators even in the throes of a pandemic. Moreover, the study unearthed compelling evidence – a mere 1% increase in perceived purpose by consumers could yield a 1.2% growth in a company's financial valuation. To put this in perspective, given the average valuation and revenue figures of the analyzed companies (S&P 500), this effect could signify a staggering $9.2 billion appreciation in shareholder value.
The Trifold Essence of Brand Purpose
Crafting a brand purpose shouldn't veer into conflicting territories, undercutting sales goals or crippling commercial acumen. Instead, its objective is to imbue business objectives with a humanistic sense, enlisting employees and consumers as ardent participants in a shared journey.
But let's elevate the discourse beyond mere aspirational slogans adorning office walls or adorning annual reports. A strategically galvanizing purpose must encompass functional, personal, and social dimensions that resonate with the brand's stakeholders. By interlinking the company's aims with commitments that extend beyond business realms, we stoke heightened engagement levels.
The illustrative image below provides a glimpse of adaptable examples primed for seamless integration into your marketing strategy.
Purpose-Driven Brands
The most impactful brand purposes are the ones that flawlessly align the core essence of a brand with the heart and soul of its employees and consumers. I've handpicked a few standout examples of brands that have mastered this art, crafting genuinely inspirational strategies that seamlessly blend profound meaning with commercial success. These brands operate in some of the fiercest battlegrounds of the global market.
The NIKE Story: From Personal Triumph to Societal Metamorphosis
In 2019, Nike won its first 'outstanding commercial' Emmy in 17 years for an ad featuring Colin Kaepernick, a former NFL star famed for taking a knee during the national anthem in a powerful stance supporting the Black Lives Matter movement. Throughout the ad, there's no overt commercial spiel; yet, a captivating display of different athletes donning Nike gear unfolds.
The narrative behind this advertisement is profoundly inspiring, revolving around an immensely pertinent Purpose: the brand's resolute commitment to championing equality of opportunities. This is portrayed through a series of athletes conquering obstacles, where triumph hinges on their ability to surpass the very barriers that initially sought to constrain their aspirations.
It's imperative to note that reactions to this advertising campaign were far from unanimous. There were instances of consumers publicly torching their Nike sneakers in protest, and certain institutions, including a university in Missouri, boycotting the brand. This backlash was a direct response to Nike's bold stance – an entirely expected reaction given the complex fabric of racial disparities, particularly in the United States.
However, the galvanizing force of the Brand Purpose propelled Nike to a staggering $6 billion surge in market capitalization during the ensuing two weeks. Subsequently, the brand has consistently sculpted its Purpose around messages that center on profound societal transformation. These messages are embodied by athletes sponsored by the brand who epitomize these values, not solely on the sports field but also in their personal lives.
The Procter & Gamble Exemplar: Elevating Home Hygiene to Eradicating Hate and Discrimination
Procter & Gamble has transcended mere corporate boundaries to champion causes like equality and the fight against racism. This commitment has been seamlessly woven into the very essence of iconic brands like Gillette, Oral-B, Pantene, Tide, and an illustrious lineup of others. Operating across 60 brands in 160 countries, and touching the lives of a staggering 5 billion consumers, P&G's influence ripples across the global landscape.
In a resounding display of social responsibility, P&G took a momentous stride in June 2020. The conglomerate orchestrated a comprehensive review of its social platforms, advertising campaigns, and broader communication spectrum. The objective was unequivocal: eradicate any trace of divisive, derogatory, or discriminatory content. But P&G's ambition didn't stop there. The company handpicked media and advertising partners that shared their unwavering commitment, even wielding the power to withdraw marketing investments from any platform that deviated from their ethical compass.
I think that the 5 billion people in the world who we serve are looking around and saying: we need to make sure that we leave this world in a better place. Marc Pritchard - Global Head of P&G Brands
Harmonizing business strategy with the noble purpose of fostering positive social metamorphosis has set P&G on a trajectory of responsible, sustainable growth. This foresight comes in an era where consumer scrutiny is reaching unprecedented heights.
As eloquently articulated by Marc Pritchard, the visionary steward of P&G's brands, during a recent interview with Forbes magazine:
“I think that the 5 billion people in the world who we serve are looking around and saying, 'we need to make sure that we leave this world in a better place' and that has to come from the everyday household and personal care products that we use as well. So we made a very deliberate decision to build things like sustainability and equality and inclusion into the business to make it part of how brands grow and part of the business model”.
The Unilever Paradigm: From Multinational to Multisocial
Unilever stands as a custodian of several globally acclaimed brands such as Hellmann's, Cif, Knorr, and many others that seamlessly intertwine with the daily lives of countless consumers. Recognizing its pervasive impact, the company has embarked on a mission to champion diverse social causes. CEO Alan Jope boldly declares:
“We believe the evidence is clear and compelling that brands with purpose grow. Purpose creates relevance for a brand, it drives talkability, builds penetration and reduces price elasticity. In fact, we believe this so strongly that we are prepared to commit that in the future, every Unilever brand will be a brand with purpose”.
To tangibly realize this vision, Unilever conceived the concept of "Sustainable Living Brands," with 28 of its portfolio brands wholeheartedly embracing this new ethos. Notably, seven of these brands, including global heavyweights such as Dove, Knorr, Omo/Persil, Rexona, Lipton, Hellmann's, and Olá ice cream, have transcended geographical boundaries to champion this purpose-driven approach.
The outcomes of this strategic pivot have been undeniably encouraging, especially for a corporation scrutinized for profit and investment returns by its shareholders. According to Unilever's own data, the designated 'Sustainable Living Brands' grew 69% faster in 2019 compared to the rest of the business, a significant leap from the 46% growth observed in 2017. In Brazil alone, purpose-led brands exhibited double the growth rate of the overall portfolio in 2020, as highlighted by Juliana Carvalho, Director at Unilever.
Unilever's universe is replete with practical examples spanning diverse social causes. Consider Ben & Jerry's ice creams, which raise awareness about climate change and vehemently oppose racial prejudice. Dove champions women's self-esteem and body validation, while Lifebuoy, the brand of antibacterial soaps, champions health and hygiene in developing nations.
Witness the transformative power of brand purpose on business growth and its profound contribution to a better world, as articulated by Leena Nair, Unilever's Chief Human Resources Officer, in the video below.
In conclusion, an authentic and genuine brand purpose is a potent tool in constructing successful brands. It holds the capacity to revolutionize your business strategy by forging deeper connections with both your employees and consumers.
By humanizing your brand, you craft a more captivating and inspirational narrative that resonates across all corners of your organization. Throughout this article, we've explored the exemplars of Nike, Unilever, and Procter & Gamble, witnessing how they positively impact society and achieve remarkable outcomes.
Now, the baton is in your hands to craft a transformative and rallying purpose, authoring a tale of triumph for your brand. In most instances, it's about allowing the humanistic essence of your organization to surface, aligning it harmoniously with your commercial objectives to seize those coveted market shares. Wholeheartedly. So, unleash the power of purpose, and may your brand's story become a luminous beacon of success.
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