Global Findings: 2009 Edelman goodpurpose® Study


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The 2009 goodpurpose™ survey was fielded among consumers ages 18-64 across 10 countries from July to August 2009. The research fi rm StrategyOne conducted an online survey in all countries except India and China, where the survey was conducted face-to-face. The survey sampled 6,026 adults in the U.S., China, Canada, U.K., Germany, Italy, France, Brazil, Japan and India.

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Global Findings: 2009 Edelman goodpurpose® Study

  1. 1. MUTUALLY BENEFICIAL MARKETINGTAKES FLIGHTHow companies, brands and consumers are elevating socialpurpose to build trust, good business and shared interestsNew findings from the Year-3 (2009) Edelman goodpurpose study
  2. 2. MOMENTUM GROWING FROM ALL CORNERS© 2007 by Erik Pittihttp://w
  3. 3. GLOBAL CALL FOR PUBLIC SERVICE AND SOCIAL PURPOSEUnited States Government –© 2009 Danone S.A. –© 2009 National Conference for Volunteering and Service –© Style Rookie 2008-2009 – –
  4. 4. GLOBAL CALL FOR PUBLIC SERVICE “ We can no longer afford indifference to the suffering outside our borders, nor can we consume the worlds resources without regard to effect. For the world has “OFFICE OF PUBLIC ENGAGEMENT CREATED changed, and we must changeOur commitment to openness means more than simply with it…informing the American people about how decisionsare made. It means recognizing that government doesnot have all the answers, and that public officials need U.S. President Barack Obamato draw on what citizens know. President Obama, 1/21/09 United States Government –
  5. 5. FRANCK RIBOUD, CEO, DANONE “It is in the interest of the enterprise to take care of the economic and social environment. To create value for shareholders but also to create value and wealth for customers, employees and regions where the companies operate because our company is an economic and social project.” Franck Riboud, CEO, Danone© 2009 Danone S.A. –
  6. 6. “By reducing energy intensity alone, China can save 620 million tons of standard coal in the five-year period (2005-2010), equivalent to cutting 1.5 billion tonnes of carbon dioxide emissions.”… “ We will vigorously develop renewable energy…” Chinese President Hu JintaoUnited States Department of Defence
  7. 7. GOOD CITIZENSHIP CREATES TRUSTQuestion: Would trust a company more or less for taking each of the following actions? Trust employees well 94% Keep producing quality products and services 93% Transparent and honest business practices 93% Communicate frequently and honestly 91% Create and keep jobs 90% Drive better innovation 89% Make progress on environmental initiatives 82% Partner with third parties to solve major global problems 82% Increase profitability and performance 82% Commit resources to the public good 81% Reduce the gap between CEO and average workers pay 78% Pay senior executives mostly in stock 75% Communicate messages through multiple media channels 70% Eliminate financial incentives for taking risks 70% Discount pricing 69% CEO appearances 69% Increase shareholder value 66% Protect profit margins 43%Informed publics ages 25-64 in six countries 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Responses 6-9 only on 1-9 scale; 9 = highest
  8. 8. SIGNIFICANT CHANGES AFOOT: Social purpose is the new social statusBrands are expected to play greaterrole in social issues and companiesexpected to devote equal attention Mutual Social Responsibilityto society and business needs and Return on Involvement are shifting the CSR/Cause conversationConsumer values shift: economicand values reset (less may reallybe more)© 1979 Chuck Patch
  9. 9. THE EVOLVING ENVIRONMENT… Working TogetherHigher expectations: Companies, to contribute to Consumers desire to give more. Brands & Government the greater comPASSION & community social good Using the global recession as an opportunity Purchase decisions beyond price
  10. 10. WHAT DO CONSUMERS SAY, DOAND DEMAND OF BRANDSSurvey says…© 2008 by CRASH:candy
  11. 11. 3RD ANNUAL GLOBAL CONSUMER STUDY OCTOBER 2009 CHINA UK 1000 500 JAPAN FRANCE 500 500 CANADA GERMANY 500 500 U.S. ITALY 1000 500 BRAZIL INDIA 500 500StrategyOne surveyed 6,000+ consumers across ten countries, aged 18-64
  12. 12. 2009 GOODPURPOSE STUDY AREAS Most important changes Social purpose is the from last year new social statusOvercoming Obstacles: Higher expectations Compassion Rising: Global Recession from government, Consumers want to companies & brands contribute more
  13. 13. WHY ITS MORE IMPORTANT THAN EVER TO PUT MEANING INTO MARKETING Only 16% of people find contentment from the shopping experience (last year it was 25%) 71% think brands/companies spend too much on advertising and marketing and should put more into good causes – last year 62% did 64% of consumers would recommend a brand that supports a good cause – up from 52% last year (up 26% in Germany, 10% in the UK) 59% of consumers would help a brand promote its products if there was a good cause behind it (up from 53% last year)© 2009 by Alex "eflon"
  14. 14. WHAT CAUSES DO CONSUMERS PERSONALLY CARE ABOUT? Protecting the environment 91% Improving the quality of healthcare 89% Reducing poverty 87% Alleviating hunger and homelessness 86% Equal opportunity to education 86% Promoting societal health and wellness 85% Disaster relief 85% Supporting human and civil rights 83% Building understanding and respect for other cultures 81% Supporting labor rights 81% Fighting the spread of global disease and pandemics 80% Helping to raise peoples self-esteem 78% Supporting animal rights 76% Supporting the creative arts (music, art, literature etc) 68% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
  15. 15. MAKE MONEY AND DO GOOD IS A WIN-WIN68% of consumers globally are fine with brands that support good causes andmake money too 100% 80% 80% 68% 67% 66% 64% 60% 60% 40% 20% 0 Global U.S. U.K. Italy Germany France
  16. 16. A NEW VALUE PROPOSITION: CONSISTENT FOR 2-YEARS RUNNINGWhen choosing between twobrands of similar quality &price, a social purpose rankshighest at43% and is placed higher inorder of importance abovedesign & innovation (34%) andbrand loyalty (24%)
  17. 17. BRAND NEW FINDINGS/NEW QUESTIONS© 2009 by Christopher Han Kim
  19. 19. SOCIAL PURPOSE IS NEW SOCIAL STATUSIf cost were not a factor, which of the following would you prefer to have? A Luxury Car A Large Home A Hybrid Car 33% An Environmentally 30% 67% Friendly Home 70%
  20. 20. SOCIAL PURPOSE IS THE NEW SOCIAL STATUSIf cost were not a factor, which of the following items would you prefer to have?Designer brand (31%) vs. a brand that supports the livelihood of local producers (69%):56% ofrespondentsdesire a jobthat allows 31%them to give 44%back to society 56%vs. 44% who 69%value personalachievementsuccess more
  21. 21. SOCIAL PURPOSE IS THE NEW SOCIAL STATUS68% of people feel it isbecoming more unacceptable intheir local community not to: Make efforts to show concern for their environment Make efforts to live a healthy lifestyle© 2007 by Dolan Halbrook
  23. 23. WHICH ENTITY SHOULD BE DOING THE MOST TO SUPPORT GOOD CAUSES? 80% 60% 52% 40% 20% 12% 9% 8% 7% 0 Government Corporations Charities People like me NGO’s
  24. 24. COMPANIES EXPECTED TO DO MORE….A shift from a shareholder tostakeholder society is apparentOver half of consumers (56%) believethe interests of society and theinterests of businesses should haveequal weight in business decisions66% of people globally (67% in the U.S.,Canada, France and 69% India) believe itis no longer enough for corporations tosimply give money away to a goodcause; they need to integrate goodcauses into their day-to-day business© 2008 by “scalespeeder”
  25. 25. AND THE REWARDS? 59% of people globally (61% in the U.S., 51% in Germany, 58% in Italy, 64% in India, 65% in China, 52% in Japan) have a better opinion of corporations that integrate good causes into their business, regardless of the reasons why they do so Nearly two thirds of people (65%) have more trust in a brand that is ethically and socially responsible During this recession, 57% of consumers believe a company or brand has earned their business because they have been doing their part to support good causes© 2008 by “ambert”
  26. 26. EXPECTATIONS ON BRANDS ARE HIGH Nearly six out of ten consumers (58%) are looking for brands to do more for them than just provide them with a product or service 64% of consumers say they expect brands today to do something to support a good cause© 2006 by Bil Laio
  27. 27. SWITCH STRATEGY?63% of consumers want brands to make it easier for them to make a positivedifference in the worldTwo out of three people (67%) would switch brands if a different brand ofsimilar quality supported a good cause© 2006 by Henk Koopmans
  28. 28. INCREASED AWARENESS OF BRANDS CONTRIBUTION TO GOOD CAUSESAWARENESS OF BRANDS ACTIVELY 60% of people believe thatSUPPORTING GOOD CAUSES product brands actively support good causes 80% 44% of people are aware of 60% brands that actively support +11 good causes through their 44% 40% 33% products and services, up from 33% in 2008 20% 0 2008 Awareness 2009 Awareness
  29. 29. OVERCOMING OBSTACLES…Global recession© 2009 by “Aprendiz de Amélie “
  30. 30. THE GLOBAL RECESSION IS CREATING LIMITATIONS… 70% agree their ability to give money to community causes has been limited to the current state of the economy 33% of people have given less financial support due to the current economic down turn. This rises to 51% among U.S. respondents. Of the 15% of people less involved in good causes this year, the effects of the global economic crisis is the leading reason to be less involved with 51% stating not having enough money© 2008 by Stefan Jansson
  31. 31. HOWEVER, PEOPLE ARE STILL GIVING…31% of people are more involved in good causes than a year ago53% of people have given more time in support of good causesthis year because they have not been able to give as much money56% of people have tried to do more to support good causes in the past yearbecause charities and other non-profit organizations have suffered in thiseconomic environment
  32. 32. BRANDS ARE PROVIDING PEOPLE WITH AN OPPORTUNITY TO CONTINUE GIVINGIn the past year, six GAINING MORE THANout of ten consumers JUST(61%) have bought a PROFITS…brand that supports agood cause even if it During the recession, 65%was not the cheapest of people have remainedbrand. loyal to a brand or company because it supports a good cause© 2007 by World Bank Photo Collection
  34. 34. EXPECTATIONS ON ONESELFEight out of ten people ….Are willing to change their consumption habits if it can help make tomorrow’sworld a better place to live (83%)Believe supporting a good cause makes them feel better about themselves (82%)
  35. 35. MOTIVATIONS BEHIND SUPPORTING A GOOD CAUSE 52% of people are personally involved in supporting a good cause People sited the following reasons for becoming more involved in a good cause this past year: 44% wanted to make a difference 30% found a good cause they liked a great deal Eight in ten feel they can personally make a difference by supporting a good cause (80%) comPASSION
  37. 37. PUSH THE RESET BUTTON…2007 Chris Phillips
  38. 38. IN THE ERA OF TOP-DOWN-COMMUNICATIONS WIDGET CO. CSR WAS ALL ABOUT BRAND MARKETING WAS ALL ABOUT Effective messages to external stakeholders Building brand/product like NGOs awareness and preference with consumers – based on Defending the relevant brand positioning corporation, earning trust Communicating brand DNA Corporate behavior Brand is the hero but brand is static AUDIENCE =
  39. 39. IN THE ERA OF THE CROSS-INFLUENCING ENVIRONMENT:ENTER THE SOCIALIZED BRANDCSR + Brand Brand becomesMarketing move a catalyst andtogether needs to be socialized It is all about mutual benefit and mutual purpose
  40. 40. TIME FOR A NEW SOCIAL PURPOSE BUSINESS PARADIGM Mutual Social MUTUAL SOCIAL Responsibility (for brands RESPONSIBILITY: brands, CAUSE-RELATED and companies and consumers MARKETING: partnerships companies) actively working together to between for-profits and effect enduring positive social Consumer non-profits that create Empowerment change promotional and Brand Democracy Brand Personalization fundraising opportunities Company’s New Social Role and Relevance Corporation in Trust Flux Corporate Cause – Social Related Build bridge between Responsibility Marketing CSR and Brand Marketing + PhilanthropyCORPORATE SOCIAL RESPONSIBILITY: a commitment by business to mitigate risk, bolsterreputation and create opportunities by being a good (corporate) citizen. Includes compliance,environment, health and safety policies, as well as corporate philanthropy to societal well-being
  41. 41. A MUTUAL SOCIAL RESPONSIBILITY INITIATIVE goodpurpose = Helping brands and companies put purpose closer to their core proposition People, companies and brands working together to take action and effect positive social change for mutual benefit
  42. 42. POINT OF VIEW Return on Involvement Foster Emotional Bond Engage Public Ownable Idea Mutual Social Responsibility Purpose Driven Build Mutual Trust & Mutual Benefit Build brand loyalty / Sustain Relationship Profit Meets Purpose
  43. 43. NEW R.O.I.? Financial: reason to buy and profit incentive Brand differentiation + stakeholder engagement Halo effect and pride Brand catalyst for consumers Why not “Return On Involvement?”ROI metric: conversation, interaction, co-creation, involvement, membership, brand loyalty, purchase and re-purchase
  46. 46. FIVE KEY CONCLUSIONS 1 Consumers want brands to pay equal attention to both social and business concerns WE CANNOT AFFORD TO WAIT 2 Social purpose can be a key driver in energizing consumers to recommend and promote a brand 3 Social purpose platform must be authentic and reflect core brand purpose and premise (rational and/or emotional) 4 MSR is the new CSR for brands: Partnership and Participation 5 Return on Involvement must be credible and measurable© 2007 by “Mc Morr “