Global Findings: 2010 Edelman goodpurpose® Study

Citizens Engage! Edelman goodpurpose® Study 2010 FOURTH ANNUAL GLOBAL CONSUMER SURVEY

“We Make a LivingBy What We Get,But We Make a LifeBy What We Give” Winston Churchill

THE RISE OF GLOBAL CITIZENSHIP Social media 86% of global consumers continues to drive believe that business needs to social purpose place at least equal weight on society’s interests as on business’ interests. A Purpose “Reset” Edelman 2010 goodpurpose® Study Global issues are Emerging markets local concerns take the leadQ33. (Equal weight + more weight on society’s interests) Global (excludes UAE)

THE RISE OF THE “CITIZEN CONSUMER” Global citizens unite around disaster in Haiti in unprecedented numbers COP 15 Copenhagen Summit considered a failureOutpouring of support for Citizen journalismlocal communities affected spreads supportby BP crisis for Iran

STITCH TOMORROW – PHILIPPINES"Stitch Tomorrow wouldprovide underprivilegedteens with the resources,capital and education tostart their own fashionlines and sustainablesource of income, usingrecycled materials foundin their localneighborhoods andvillages." Carmina Mancenon Social Entrepreneur Philippines Age 16

UNITED NATIONS CALL TO ACTION

GOVERNMENTS RESPOND UK Tories launch big society India’s Parliament introduces Bill to require largest companies to donate 2% of their net profits to CSR activities.

BUSINESS PUTS PURPOSE OUT FRONTPerformance with Purpose“Our belief that our financialsuccess — Performance —must go hand-in-hand with oursocial and environmentalresponsibilities — our Purpose.” Indra Nooyi Chairman & CEO, PepsiCo.

“As businesses, we have a responsibility tosociety. Let me be clear about this point. There is no conflict between delivering value toshareholders and helping solve bigger societal problems.” -H. Lee Scott Jr., Walmart Chairman and Former CEO National Retail Federation January 12, 2009

A PURPOSE “RESET”? BACK TO BASICS?: Jobs and economic development Will marketingCan purpose change from selling more widgetsdrive profit? to providing more substance? guynameddave.com/ 100-thing-challenge Is less Is purpose becoming institutionalized now more? across corporate and marketing spectrum?

WHAT CONSUMERS HAVE TO SAY… FOURTH ANNUAL GLOBAL CONSUMER STUDY 2010 US 1000 CANADA CHINA 500 1000 MEXICO INDIA 500 500 BRAZIL JAPAN 500 500 UK UAE 500 250 FRANCE GERMANY 500 500 NETHERLANDS ITALY 500 500StrategyOne surveyed 7,000+ consumers across 13 countries, aged 18-64

WHAT CAUSES DO GLOBAL CONSUMERS CARE ABOUT THIS YEAR?Q6. (Top 2 Box, Care) Global (excludes UAE)

BUT DIFFERENCES EXIST IN LOCAL MARKETSQ6. (Top 2 Box, Care) U.S.

FOUR STORIES EMERGE FROM OUR STUDYEMERGING MARKETS TAKE THE LEAD THE FIFTH P OF MARKETING IS PURPOSECONSUMER ACTIONISM GREEN AS ECONOMIC LEVER

EMERGING MARKETS TAKE THE LEADCitizens in the world’s fastest growing markets – China, India, Brazil,Mexico – have outpaced their peers as most engaged in supporting goodcauses.

CONSUMERS IN EMERGING MARKETS VOLUNTEER MORE TIME “I volunteer I volunteer once a week” I volunteer 26% Brazil once a week every 6-12 months Brazil: 26% US: 14% Mexico: 19% France: 13% I volunteer once a monthQ11. On average, how often do you give your time or volunteer in support of a good cause? (Once a week; Once a month; NET: Every 6-12 months)

EMERGING MARKETS FEEL MORE INVOLVED I feel I am more involved in good causes now than I was a year ago. Brazil: 64% Mexico: 68% VOLUNTEERS IN BRAZILQ9. More Involved (Net)

“CONSUMERS IN BRAZIL,CHINA, INDIA AND MEXICO AREMORE LIKELY TO PURCHASEAND PROMOTE BRANDS THATSUPPORT GOOD CAUSES,OUTPACING THEIR PEERS INTHE WEST.”

EMERGING MARKETS ARE MOST WILLING TO BUY BRANDS THAT SUPPORT GOOD CAUSES Consumers who buy a brand that supports a good cause at least every twelve months.Q20. (Net: at least every twelve months)

EMERGING MARKETS TAKE ACTION TO SUPPORT SOCIAL PURPOSE BRANDS INDIA 78% “I would switch brands if a different GLOBAL brand of similar quality supported a 62% good cause.” CHINA 77% “I am more likely to recommend a GLOBAL brand that supports a good cause 62% than one that doesn’t.” More than 7 in 10 consumers in the emerging markets BRAZIL 80% “I would help a brand to promote would take action to support GLOBAL their products or services if there is a 61% social purpose brands. good cause behind them.”Q16. (Top 2 box, Agree)

EMERGING MARKETS EXPECT BRAND INVOLVEMENT IN GOOD CAUSES “I have more trust in a brand that is ethically and socially responsible.” Brazil: 81% China: 78% 8 in 10 consumers in the India, Mexico: 78% China, Mexico and Brazil expect India: 77% brands to donate a portion of their Global: 65% profits to support a good cause.Q17. & Q16. (Top 2 box, Agree)

THE FIFTH “P” OF MARKETING IS PURPOSEThe age-old marketing mix of Product, Price, Place and Promotion arenow joined by a fifth “P”…Purpose.

GLOBALLY, SOCIAL PURPOSE REMAINS KEY PURCHASE MOTIVATOR When choosing between two brands of equal quality and price… Social purpose continues to rank as the number one deciding factor for global consumers above design, innovation and brand loyalty.Q23. (First ranked response) Global (excludes UAE)

Willing to pay 5% moreCONSUMERS WILLING TO PAY MORE FOR A CAUSE Wiling to pay 10% more 56% 51% 51% 45% 47% 41% Beverage Clothing ApplianceQ24A-Q26B. (Split sample) Global (excludes UAE)

CONSUMERS TAKE ACTION TO SUPPORT COMPANIES WITH PURPOSE 66% BUY its products or services 66% RECOMMEND its products or services 64% SHARE positive opinions and experiencesQ39-44. (Top 2 box, Likely) Global (excludes UAE)

THE BIG REWARD FROM GLOBAL CONSUMERS 62% would switch brands if a different brand of similar quality supported a good cause.Q16. (Top 2 box, Agree) Global (excludes UAE)

CONSUMER WILLINGNESS TO PROMOTE BRANDS WITH A CAUSE JUMPS“I would help a brand to promote theirproducts or services if there is a goodcause behind them.” +9 GAP REDQ16. [TRACKING] (Top 2 Box, Agree) Global (excludes Mexico, the Netherlands, UAE)

… BUT ALSO WILLING TO PUNISHQ45-49. (Top 2 box, Likely) Global (excludes UAE)

CONSUMERS EXPECT PURPOSE INGRAINED INTO THE MARKETING MIX68% agree brands should promote good causesthrough advertising to help raise public awareness67% expect brands to donate a portion of theirprofits to support a good causeQ17. (Top 2 box, Agree) Global (excludes UAE)

“WHICH BRAND OR BRANDS COME TO MIND AS PLACING AS MUCH OR MOREIMPORTANCE ON SUPPORTING A GOOD CAUSE AS THEY PLACE ON PROFITS?” Global consumers respond on an unaided basis:US Canada UK France Germany Italy NetherlandsPepsi McDonald’s Fair Trade Danone Krombacher Coop Max HavelaarNewman’s Own Dove Oxfam Nestle Pampers Nike Fair TradeNike Tim Horton’s Tesco Max Havelaar Fair Trade Barilla NikeTide Dawn Traidcraft Carrefour Addidas Altromercato Addidas Brazil Mexico China India Japan UAE Natura Danone Nongfu Spring Tide Volvic McDonald’s Ypê Coca Cola Wanglaoji Ariel Suntory Panasonic Nestle Bimbo Mengiu Milk Tata Sony Tata Omo Nestle Yili Colgate Toyota UNICEFQ15. (Open ended response)

CONSUMER ACTIONISMConsumers want to work alongside brands and corporations todevelop the best ideas for solving the world’s problems, then tacklethem head on.

INVOLVEMENT WITH GOOD CAUSES STRONG: SIGN OF CONSUMER ACTIONISM 56% of consumers are involved in good causes… One-third believe they are more involved in good causes now than they were one year agoQ8., Q9. (NET: More involved) Global (excludes UAE)

CONSUMERS FEEL MORE EMPOWERED TO SUPPORT GOOD CAUSES Which one of the following entities do you think should be doing the most to support good causes? -10 +5Q7. [TRACKING] Global (excludes Mexico, the Netherlands, UAE)

CONSUMERS WANT TO PARTNER WITH BRANDS 71% believe brands and consumers could do more to support good causes by working together 63% want brands to make it easier for them to make a positive differenceQ17. & Q16. (Top 2 Box, Agree) Global (excludes UAE)

CONSUMERS EXPECT CORPORATIONS TO INVEST IN PURPOSE 64% believe it is no longer enough for corporations to give money; they must integrate good causes into their everyday business 61% have a better opinion of corporations that integrate good causes into business, regardless ofQ32. (Top 2 Box, Agree) Global (excludes UAE) why they do so

GREEN AS ECONOMIC LEVERCitizens believe that sustaining the environment can help grow theeconomy.

“GREEN IS GREEN” 71% of global consumers believe projects that protect and sustain the environment can help grow the economy Demand highest in emerging markets and US.Q57. (Top 2 Box, Agree) Global (excludes UAE)

GOVERNMENT AND CORPORATIONS MUST PLAY ROLE 72% expect corporations to take actions to preserve and sustain the environment 73% agree government and business need to work together more closely to ensure the environment is protectedQ32. & Q57. (Top 2 Box, Agree), Global (excludes UAE)

PUBLIC SUPPORT FOR ENVIRONMENTAL LEGISLATION IS STRONG 64% would support legislation that requires corporations to meet certain environmental standards even if it would negatively impact a corporation’s profits 62% would support legislation that requires government to fund partnerships between public and private organizations to help protect the environmentQ57. (Top 2 Box, Agree) Global (excludes UAE)

NEW SOCIAL PURPOSE ACTIVATORSammado connects nonprofits, sociallyresponsible companies and engaged “Mother Nature Network TakePart is an independent onlineindividuals and supplies the tools WorldShares allows members to community that connects itsnecessary to support online earn credits by using the site members directly to the issues thatcampaigning, fundraising, and turn those credits into real inspire them to engage, contributeengagement and communication. donations for not-for-profits. and take action.

CONTENT DRIVING PURPOSE, TOO betterplace links companies and individuals with good purpose projects; they sent flipcams to participating organizations and held a video contest. The Good Pitch holds roundtable discussions all over the world and connects brands and companies with documentary film directors IMAGE hoping to produce films with a good purpose.

FOUR YEARS IN, WE’RE LEARNING… After quality and price, purpose trumps design, innovation and brand loyalty Consumers consistently recommend, promote and buy brands with a social purpose There is no one “killer-cause” … there are many Profit and purpose are no longer strange bedfellows

BRANDS AND COMPANIES WEIGHING IN MANY DIFFERENT WAYS…

SO, HOW CAN YOU ENGAGE? Helping brands and companies integrate purpose into their core business proposition and marketing efforts.

THE GOODPURPOSE POINT OF VIEW People, companies, and brands working together “MUTUAL SOCIAL APPLY RESPONSIBILITY” to take action and effect positive social change for mutual benefit YOUR BUSINESS PURPOSE TO Identify your social issue, and ownable, MATCH A HIGHER SOCIAL PURPOSE galvanizing idea Foster a deeper emotional connection and ENGAGE YOUR PUBLIC develop sustainable brand loyalty “RETURN ON Conversation, Participation, Membership,MEASURE INVOLVEMENT” Purchase, Repurchase

“BE THE CHANGE YOU WANT TO SEE IN THE WORLD.”MAHATMA GANDHI “BE THE CHANGE YOU WISH TO SEE IN THE WORLD.” MAHATMA GANDHI

Global Findings: 2010 Edelman goodpurpose® Study

by Edelman Insights

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