Is it time for us to embrace the world trend in Brand Building?

1. ISSUE 01 - DECEMBER 2015
BRAND PURPOSE - ANSWER THE WHY QUESTION & LETS ACT POSITIVELY | 1
BRAND PURPOSE
ANSWER THE WHY QUESTION
& LETS ACT POSITIVELY

2. ISSUE 01 - DECEMBER 2015
BRAND PURPOSE - ANSWER THE WHY QUESTION & LETS ACT POSITIVELY | 2
When talking about successful brand, most of us in blink mention
names like Coke, Starbucks, Nike, Apple, Facebook and Google,
just to name a few. There are reasons for loving one particular brand.
Some people expressed that “I feel excited when drinking Coke” or
“Starbucks makes you so comfortable as if you were in your living room”
or “the more I wear Nike products, the deeper I fall in love with sport”.
They not only provide tangible products but also give a hand to build
up customers’ lives. By not being just simply brands but being inner
friends of customers, these brands have grown sustainably and strongly.
Starbucks retains the largest coffee company and retailer chain in the
world; while Coke stays the No.1 world beverage brand. Apple and Nike
always tell us the most aspirational stories.
Obviously, these brands play meaningful roles to everyone as “making
life happy”, “connecting friends”, and “empowering me to do training”,
much beyond functional benefits of products like refreshing, or awaken
up, or dry-fit sport gear. How broad and purposeful they are! These
brands have gone beyond WHAT their products or services can offer and
given the reasons “WHY THEY ARE MEANINGFUL TO AND CAREDBY
CONSUMERS” from which they define their BRAND PURPOSES. The
brand purpose also gives insightful direction for corporation’s activities.
Nike’s brand purpose inspires it to create solutions for customers to be
professional athletes such as Nike+ Fuelband and App for managing
exercise regime. Coke always surprises worldwide audiences with
creative marketing campaigns, while Starbucks satisfies consumers
with coffee time experiences.
We usually wonder whether Brand Purpose is relevant in Vietnam
context where customers are thought to be “simple shoppers” who just
focus on product’s functions. In my POV, the answer is a definite YES.
Starting the fact that to based on the 4 following factors.
Consumers
Besides basic needs, the final goal of every human being is to earn
a bright and happy life. Young people have great exposure to the
civilized movements such as “Ve di Vang oi” campaign to secure dogs,
“Kien Tao Nhip Cau” program to build bridges for rural areas, Earth
Hour and wild animal protection. These movements somehow affect
attitudes and behaviors of consumers and motivate them to support
meaningful practices to society and their lives. Gradually, those things
also influence the way customers judge the brands and appreciate
brands meaningful rather just only selling for money.

3. ISSUE 01 - DECEMBER 2015
BRAND PURPOSE - ANSWER THE WHY QUESTION & LETS ACT POSITIVELY | 3
Brand Values
Fundamentally functional benefits does hold anymore, 62%
consumers in urban and 60% consumers in rural downgraded to lower
price products if they don’t see clear value for paying expensive and
consumer loyalty has dropped regularly from 80% in 2010 to 73% in
2014. Functional benefits are marginally differentiated; the emotional
connection with consumers, in many cases, defines consumers’
purchase behaviors. This emotional connection can just be established
when brands understand and speak customers’ inner voices such as
believes, tensions and values. It means that brand’s social point of view
(POV) is important to touch the heart of customers, sometimes more
than brand’s point of difference (POD).
Media Landscape
With 80% Internet penetration in Vietnam, the one-way message that
brand advertised tries to influence consumers cannot lead the way they
judge brand’s values. They are wise to observe and judge the brand
through a number of perspectives conveyed in social point of views, in
store activities, product and service quality, public management and
influence, and crisis management, and corporate social responsibility.
Brands hardly keep their secrets because things are more transparent
and sharable via social network that happens 24 hours and 7 days
round. Hence, managing brand today is far more important than
just doing advertising. It requires holistic and consistent approach to
strategize and build brand to build strong and long-term connection
with consumers. It requires always-on communication to engage with
consumers. To do so, brand requires its strong values and purpose
along with its holistic communication platform to have consistent and
trusted conversation with audiences. One way advertising is too narrow
for brands to approach consumers. Please remember that only 65% of
audiences wants to share negative news while only 50% of them wants
to share positive messages.

4. ISSUE 01 - DECEMBER 2015
BRAND PURPOSE - ANSWER THE WHY QUESTION & LETS ACT POSITIVELY | 4
Marketers Accountability
It sometimes comes as our surprise that consumers talk and think
the way we have tried to tell them. There is no debate that marketing
overtime has strong influence on consumer’s minds, and social and
cultural behaviors. Then we marketers better choose to influence them
positively via setting right values, encouraging healthy behaviors, and
igniting good purpose.
This is a reason why The Purpose Group encourages purpose-driven
brand building and helps brands to create products and services
which positively build up customers’ lives. By doing this, brands will be
meaningful to consumers and gain their trust and long-term supports
and grow sustainably.
Giang Nguyễn
Group Director
The Purpose Group