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New Era of Brand Activism

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As consumer’s demands for transparency, sustainability and social responsibility of brands are rising, brands can no longer duck away as not doing anything can have real negative business impact. Consumers want brands to take a stand and do good. The CSR powerhouse Patagonia is leading the way to a new era of brand activism.
How can brands adapt to this changing expectations and demands? What can brands learn from industry CSR leaders?

Published in: Marketing
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New Era of Brand Activism

  1. 1. UNDERSTAND TODAY. SHAPE TOMORROW. HOW PATAGONIA IS LEADING THE WAY. NEW ERA OF BRAND ACTIVISM 1 the latest installment of our: Snapshot Series LHBS // NEW ERA OF BRAND ACTIVISM
  2. 2. ABOUT. At LHBS, we believe in continuously observing and learning from what’s happing in the market. We’ve created our Snapshot Series to provide insights on platforms, industries and companies. Using best practice examples, we explore, analyze and share how businesses are adapting to new trends. Moving from insightful data to best practices to inspiring thought starters for brands, Snapshots can be a guide to bring meaningful innovations to life in different areas of business. This issue explores the growing relevance of CSR and cause marketing for business due to changing customers’s expectations, giving leading industry examples and key learnings. We hope you enjoy this deck and find inspiration for your innovation process. UNDERSTAND TODAY. SHAPE TOMORROW. 2 Discover Define Develop Deliver UNDERSTAND TODAY. SHAPE TOMORROW. LHBS // NEW ERA OF BRAND ACTIVISM
  3. 3. UNDERSTAND TODAY. SHAPE TOMORROW. INTRODU CTION. As consumer’s demands for transparency, sustainability and social responsibility of brands are rising, brands can no longer duck away as not doing anything can have real negative business impact. Consumers want brands to take a stand and do good. The CSR powerhouse Patagonia is leading the way to a new era of brand activism. How can brands adapt to this changing expectations and demands? What can brands learn from industry CSR leaders? This Snapshot points out the increasing relevance of CSR in light of changing consumer expectations and explores the current best in class examples of brands rooted in a strong cause, followed by implications for brands. LHBS is a marketing & innovation firm with offices in Berlin and Copenhagen. We help clients to understand today's emerging customer expectations and to shape their business offerings for tomorrow. http://www.lhbs.com Christina Gundacker Strategy Consultant at LHBS lhbs.com | cg@lhbs.com INTRODUCTION 3 LHBS // NEW ERA OF BRAND ACTIVISM
  4. 4. CONTENT. UNDERSTAND TODAY. SHAPE TOMORROW. Chapter 2 WHY IS IT NECESSARY TO TALK ABOUT CSR? Chapter 4 HOW DID PATAGONIA BECOME THE CSR POWERHOUSE? Chapter 1 CONTENT 4 LHBS // NEW ERA OF BRAND ACTIVISM WHAT CAN BRANDS LEARN FROM PATAGONIA? Chapter 3 WHAT ARE OTHER BRANDS DOING? BEST AND WORST IN CLASS
  5. 5. CHAPTER ONE UNDERSTAND TODAY. SHAPE TOMORROW. 5 WHY IS IT NECESSARY TO TALK ABOUT CSR? LHBS // NEW ERA OF BRAND ACTIVISM
  6. 6. UNDERSTAND TODAY. SHAPE TOMORROW. 6 From this, we began to see an increase in brand transparency, cause marketing and generally in CSR. This intensified as consumer expectations grew at the same time. WHY IS IT NECESSARY TO TALK ABOUT CSR The information age brought people more opportunities to discover and act on national and international causes. LHBS // NEW ERA OF BRAND ACTIVISM
  7. 7. UNDERSTAND TODAY. SHAPE TOMORROW. 7 Consumers are now well aware of the influence and resources brands have to make more of an impact. So people are increasingly looking to brands to take the lead and stand up for political, societal and environmental causes. WHY IS IT NECESSARY TO TALK ABOUT CSRLHBS // NEW ERA OF BRAND ACTIVISM
  8. 8. UNDERSTAND TODAY. SHAPE TOMORROW. 8 Brands who do not make an effort to demonstrate CSR, or who are found to be taking part in socially insensitive, environmentally harmful or dishonest activities are now held accountable. WHY IS IT NECESSARY TO TALK ABOUT CSRLHBS // NEW ERA OF BRAND ACTIVISM
  9. 9. 55% 45% UNDERSTAND TODAY. SHAPE TOMORROW.Source: 24% 76% consumers said they would purchase a product because a company supported an issue they care about 9 13% 87% 87% Source: Conecomm CSR Study will refuse to buy from a company if they learn it supports an issue contrary to their own beliefs 76% WHY IS IT NECESSARY TO TALK ABOUT CSRLHBS // NEW ERA OF BRAND ACTIVISM
  10. 10. 55% 45% UNDERSTAND TODAY. SHAPE TOMORROW.Source: millennials would switch brands to one associated with a cause. 10Sources: Forbes and 2016 Food Revolution Study 6% 94% of consumers say transparency is important to their purchase decisions 9 in 10 94% WHY IS IT NECESSARY TO TALK ABOUT CSRLHBS // NEW ERA OF BRAND ACTIVISM
  11. 11. 55% 45% UNDERSTAND TODAY. SHAPE TOMORROW.Source: of millennials want businesses to make it easier for them to do their part in addressing issues such as health, the economy, and environmental sustainability 11 30% 70% 70% Source: Msl Group WHY IS IT NECESSARY TO TALK ABOUT CSRLHBS // NEW ERA OF BRAND ACTIVISM
  12. 12. UNDERSTAND TODAY. SHAPE TOMORROW. 12 Brands who want to be relevant tomorrow need to think about what they will stand for today. WHY IS IT NECESSARY TO TALK ABOUT CSRLHBS // NEW ERA OF BRAND ACTIVISM
  13. 13. UNDERSTAND TODAY. SHAPE TOMORROW. 13 But how can brands engage successfully in honest CSR efforts that have real business impact? WHY IS IT NECESSARY TO TALK ABOUT CSRLHBS // NEW ERA OF BRAND ACTIVISM
  14. 14. CHAPTER TWO UNDERSTAND TODAY. SHAPE TOMORROW. 14 HOW DID PATAGONIA BECOME THE CSR POWERHOUSE? LHBS // NEW ERA OF BRAND ACTIVISM
  15. 15. "I didn’t realize how much power we have. And to not use it would be irresponsible.” - Yvon Chouinard, Founder of Patagonia HOW DID PATAGONIA BECOME THE CSR POWERHOUSE UNDERSTAND TODAY. SHAPE TOMORROW. 15Source: Outside Online LHBS // NEW ERA OF BRAND ACTIVISM
  16. 16. Key success factors for Patagonia’s position as a leading brand activist: UNDERSTAND TODAY. SHAPE TOMORROW. 16 FITTING CAUSE & AUTHENTICITY SINCERITY & TRANSPARENCY CONSISTENCY PRACTICE WHAT YOU PREACH HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  17. 17. UNDERSTAND TODAY. SHAPE TOMORROW. 17 FITTING CAUSE & AUTHENTICITY A brand needs to follow a cause that is fitting and relevant to the business it is in. With just bandwagoning on a popular cause brands risk being perceived as hypocritical and self-serving. HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  18. 18. 55% 45% UNDERSTAND TODAY. SHAPE TOMORROW.Source: of Americans say when a company takes a stand on a social or environmental issue, they will do research to see of it is being authentic. 18 13% 87% 65% Source: Conecomm CSR Study HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  19. 19. UNDERSTAND TODAY. SHAPE TOMORROW. 19Source: Patagonia “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” - Patagonia Mission Statement HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  20. 20. UNDERSTAND TODAY. SHAPE TOMORROW. 20 Reducing the environmental footprint is and was always ingrained in Patagonia’s DNA. Making their efforts authentic an sincere. HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  21. 21. UNDERSTAND TODAY. SHAPE TOMORROW.Source: LHBS // 2018: THE YEAR OF BRICK & CLICK 100% Traceable Down With 100% Traceable Down, Patagonia continues to promote its ethical practices for the manufacture of their down garments.  Explore the Sign The high-end outdoor clothing manufacturer released a video “What the Pluck” to raise awareness of the often cruel, unethical treatment of birds, which include force-feeding and live plucking in harsh living conditions. Distancing themselves from these practices, Patagonia is also promoting the premium quality of their down products, which are now 100% traceable on an ethical supply chain. The video is launched in conjunction with a website that raises awareness of the unethical practices of the industry, and detail how Patagonia prioritizes animal welfare in the production of their down products. 21 HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  22. 22. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Corporate Giving Program: 1% For The Planet Patagonia is pledging one percent of its annual sales to environmental causes. Explore the sign Patagonia’s founder Yvon Chouinard co-founded the international organization ‘1% for the planet’. It is a global network of businesses, nonprofits and individuals working together to fight for a healthy planet. Each company is pledging to donate one percent of their annual sales to the organization who is investing in environmental programs. Patagonia’ also earned the B Corp certification for meeting high standards for environmental impact, accountability, and transparency. But the brands efforts go far beyond that. 22 HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  23. 23. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Common Threads Initiative Patagonia are encouraging customers to reduce, repair, reuse, recycle and reimagine clothing with their new initiative. Explore the Sign The Common Threads Initiative is a partnership between Patagonia, their customers and eBay to encourage a more sustainable use of clothes. The brand’s ultimate goal is to keep all of the clothing they make and sell from reaching landfill sites. Content surrounding the initiative includes celebrations of the stories of clothes, educational bites to help people repair or reuse clothing and touring events to bring experts and inspirational people to every corner of the world. 23 HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  24. 24. UNDERSTAND TODAY. SHAPE TOMORROW.Source: LHBS // 2018: THE YEAR OF BRICK & CLICK Patagonia’s Environmentally- Friendly Beer Patagonia Provisions, an environmentally conscious food brand centring on sustainable sourcing, is entering the beer business.  Explore the Sign The company produced soups, Buffalo jerky, Alaskan pink salmon, organic grains and other snacks before, but the beer is new in its product range. It is launched in partnership with Hopworks Urban Brewery as a Long Root Ale. The beer is a breakthrough because it is made from Kernza, a grain that doesn’t require pesticides and uses less water. It also reduces erosion and cuts carbon from the atmosphere. 24 HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  25. 25. UNDERSTAND TODAY. SHAPE TOMORROW. 25 SINCERITY & TRANSPARENCY Sincerity and transparency are building up trust and will make brands look honest and committed. It doesn’t mean that you have to do everything right from the start, but being transparent and honest about your efforts and limitations. Consumers are as informed and able to engage with brands like never before and they will find out and call you out for being dishonest. HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  26. 26. 55% 45% UNDERSTAND TODAY. SHAPE TOMORROW.Source: of consumers wish it were easier to know what companies were doing good. 26 21% 79% 79% Source: Huffington Post HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  27. 27. UNDERSTAND TODAY. SHAPE TOMORROW.Source: The Footprint Chronicles Patagonia takes a step further into full transparency with the publishing of their Footprint Chronicles which openly talks about things that need to be improved in the value chain. Explore the Sign Patagonia took the classical Corporate Sustainability Report a huge step further when they published their Footprint Chronicles which offers a rich digital experience. The Website lets consumers trace dozens of their products through every step of the manufacturing process. Next to the positive things that Patagonia has already achieved in their sourcing it also talks about the things that are not perfect and need improvement to minimize the footprint on the environment. 27 HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  28. 28. UNDERSTAND TODAY. SHAPE TOMORROW.Source: The Cleanest Line Blog The blog accurately informs their followers about their environmental efforts and product innovations in their quest for less environmental harm. Explore the Sign Patagonia is engaging its customers in a way that loyal buyers are becoming loyal brand evangelists supporting their cause and their brand. The Cleanest Line blog, features substantive and compelling long- form content about environmental issues and outdoor adventures. Creating loyal brand evangelists with compelling content on their blog that fits their brand and their cause. Also enthusiastic customers are producing compelling content and enthusiastic customers are communicating with other enthusiastic customers. 28 © Patagonia HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  29. 29. UNDERSTAND TODAY. SHAPE TOMORROW. 29 CONSISTENCY Being consistent across time and cause. Even stick to practices when against conventional marketing strategy. No fear of being counterintuitive. HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  30. 30. UNDERSTAND TODAY. SHAPE TOMORROW.Source: LHBS // 2018: THE YEAR OF BRICK & CLICK Patagonia's Repair Van Patagonia is touring the US in the Worn Wear wagon on the mission to repair old clothing and encourage customers to think about how fashion choices affect the environment.  Explore the Sign Patagonia has recycled a Dodge pickup truck, pimped it out with recycled wine barrels as walls, solar panels for energy and fueled it with biodiesel. The truck is touring the country- spreading the message about conscious consumerism by offering free apparel mending services and seminars. The wagon’s interior has an industrial sewing machine that repairs any garment that customers decide to bring- from Patagonia or not. The technicians also advise on the maintenance of the item and ways to extend its life. 30 HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  31. 31. UNDERSTAND TODAY. SHAPE TOMORROW.Source: LHBS // 2018: THE YEAR OF BRICK & CLICK ‘Don’t Buy This Jacket’ Advertisement For their 2011 Black Friday campaign, Patagonia published an advertisement in The New York Times which tells people not to buy anything. Explore the Sign This counterintuitive marketing move fit perfectly in their “buy less” initiative and supports Patagonia’s claim to reduce its harm to the planet. With this ad Patagonia addressed the issue of consumerism especially apparent on Black Friday in the US. It was a full-page ad which included honest facts about how much liters of water the production of a jacket needs how much carbon dioxide is produced in the process and so forth. The ad concludes: "There is much to be done and plenty for us all to do. Don't buy what you don't need. Think twice before you buy anything.” 31 HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  32. 32. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Patagonia’s ‘Worn Wear’ For Black Friday 2013, Patagonia, long known for their “buy less” initiative, did what no other brand would dare consider even thinking about: They screened a controversial mini-documentary that told consumers NOT to buy their wares. Explore the Sign The impeccably beautiful film, which was shown in 15 of their major store locations, was a 28-minute long ode to ‘saving what you have’ titled Worn Wear. The film tells the real-life stories of a handful of adventurers and their Patagonia gear. Each participant tells how their beaten, battered and bruised Patagonia goods came to be as they are, and how they don’t want to ever give them up. 32 HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  33. 33. UNDERSTAND TODAY. SHAPE TOMORROW. 33 PRACTICE WHAT YOU PREACH Only nice advertising messages and one off campaigns won’t do the trick in the long term. Well informed consumers know if you are walking the walk or otherwise you will be shunned as hypocritical. A strong commitment from leadership and internalized CSR strategy is needed. HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  34. 34. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Recycled Clothing by Patagonia For its new collection Patagonia places reclaimed and recycled materials at the center. Explore the Sign The Truth To Materials line is discovering the origin of a material and staying as true to that as possible during every step of design and manufacturing.  As materials Patagonia is using un-dyed cashmere, reclaimed cotton and wool. The discarded materials and clothes are shredded, mixed with polyester and nylon for strength, and rewoven back into fabric. The project also repurposes discarded Patagonia outerwear and reconstructs each returned or damaged jackets into durable, cold-weather scarves manually by artisans. 34 HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  35. 35. UNDERSTAND TODAY. SHAPE TOMORROW.Source: LHBS // 2018: THE YEAR OF BRICK & CLICK Patagonia Offers Repair Workshops The retailer partnered with iFixit to offer tutorials on how to replace Patagonia items and fix things like broken zippers. Explore the Sign Broken zipper, lost button, torn sleeve ... a lot of unfortunate things can happen to your favorite clothes. But before getting rid of the stuff, the company is encouraging consumers to extend the lives of their items of clothing by repairing them. Patagonia & iFixit.com announced their partnership, publishing an official series of free repair guides for Patagonia garments and gear—in an effort to reduce our ecological footprint and encourage everyone to repair what's old, instead of buying whats new. 35 HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  36. 36. UNDERSTAND TODAY. SHAPE TOMORROW.Source: ‘Vote Our Planet’ Presidential Election Initiative Patagonia completely shuts down for election day to push both employees and customers to vote. Explore the Sign In support of Patagonia’s ongoing support of environmental activism, they made the bold move to shut down all 29 of their stores across the US on election day. They hoped to push employees and would-be customers to make sure they attend the polls and make their vote. They also held voter registration rallies at their stores to ensure everyone was informed as to where they needed to go to vote. 36 HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  37. 37. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Patagonia To Protect Public Land Patagonia speak out and are encouraging people to take action against the president’s move to eliminate protected land. Explore the Sign As Trump announces the decision to reduce the sizes of two of America’s National monuments, Patagonia are taking action. The public land in question face the largest elimination in America’s history, and Patagonia are encouraging people to join their quest in protecting what belongs to the many through signing a petition and speaking out. "We’ve fought to protect these places since we were founded and now we’ll continue that fight in the courts." —Rose Marcario, President and CEO 37 HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  38. 38. UNDERSTAND TODAY. SHAPE TOMORROW. 38 Doing good for the environment is also good for business. Ethics and politics can go hand-in-hand with profitability. HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  39. 39. 55% 45% UNDERSTAND TODAY. SHAPE TOMORROW.Source: In 2016, sales jumped 18 percent, according to the company. The North Face, meanwhile, declined by 2 percent. 39Source: Outside Online Patagonia controls 9 percent of the outdoor industry’s apparel market, (without company’s massive direct-to- consumer business) +18% 9% HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  40. 40. 55% 45% UNDERSTAND TODAY. SHAPE TOMORROW.Source: The year after the ‘Don’t Buy This Jacket’ initiative Patagonia saw its revenue grow around 30%, and an additional 6% in 2013 40Source: Mind Body Green The day after the announcement of the ‘The President Stole Your Land’ law suit their online sales where 6 times higher than normal +30% +6x HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  41. 41. "What we are doing is stealing other companies’ business. You do the right thing, it leads to more business. What am I going to do, say no?” - Yvon Chouinard, Founder of Patagonia UNDERSTAND TODAY. SHAPE TOMORROW. 41Source: GQ HOW DID PATAGONIA BECOME THE CSR POWERHOUSELHBS // NEW ERA OF BRAND ACTIVISM
  42. 42. CHAPTER THREE UNDERSTAND TODAY. SHAPE TOMORROW. 42 WHAT ARE OTHER BRANDS DOING? BEST AND WORST IN CLASS LHBS // NEW ERA OF BRAND ACTIVISM
  43. 43. UNDERSTAND TODAY. SHAPE TOMORROW. 43 The brands that will win are the ones who can build up real trust. Consumers will reward those brands with lasting loyalty. WHAT ARE OTHER BRANDS DOINGLHBS // NEW ERA OF BRAND ACTIVISM
  44. 44. UNDERSTAND TODAY. SHAPE TOMORROW. 44 BEST IN CLASS EXAMPLES FOR WHAT SHOULD RETAILERS DO ABOUT IT FITTING CAUSE & AUTHENTICITY LHBS // NEW ERA OF BRAND ACTIVISM
  45. 45. UNDERSTAND TODAY. SHAPE TOMORROW. What they did 45 Marks & Spencer’s Plan A was a movement launched within their business to tackle five big issues - climate change, waste, resources, fair partnerships and health. All of their actions as a business and brand since then have aligned to in some way address these topics. This initiative began with the goal to create a more sustainable future for the business, and to help their customers to have a more positive impact on wellbeing, communities and the planet. They ended up also benefitting significantly in financial terms from this more environmental and health-focused approach, which is something they did not anticipate. How is this authentic? Marks & Spencer launched not only a one-off campaign, but a plan for the coming 10 years (at least). They made a commitment and even forecast an initial loss in business benefit. Their customers saw changes and felt they themselves were having an impact on these causes. Marks & Spencer’s Plan A Source: signmesh, Watch Video Why they did it ' ' Explore the Sign WHAT ARE OTHER BRANDS DOINGLHBS // NEW ERA OF BRAND ACTIVISM
  46. 46. UNDERSTAND TODAY. SHAPE TOMORROW. What they did 46 Stella McCartney’s brand is evolving its fashion through eco innovation by teaming up with Bolt Threads, a San Francisco startup developing next gen materials. The new material is based on natural proteins and is processed in a cleaner and closed-loop manufacturing protocol with green chemistry practices. This way, silk is produced using yeast and hence becomes vegan-friendly. The fashion icon always has been committed to sustainable materials and the new partnership marks a new milestone in the fashion and garment industry. It brings together fashion, sustainability and tech innovation. McCartney describes it as “a truly modern and mindful approach to fashion”. How is this a fitting cause? Stella McCartney is well known for her activism surrounding environmental causes and sustainability, so this move simply adds to her list of similar campaigns and eco-friendly products. It also appeals to her clientele, some of who would be buying due to this eco-friendly element. Stella McCartney Vegan Thread Fashion Source: signmesh, Watch Video Why they did it ' ' Explore the Sign WHAT ARE OTHER BRANDS DOINGLHBS // NEW ERA OF BRAND ACTIVISM
  47. 47. UNDERSTAND TODAY. SHAPE TOMORROW. 47 BEST IN CLASS EXAMPLES FOR SINCERITY & TRANSPARENCY WHAT ARE OTHER BRANDS DOINGLHBS // NEW ERA OF BRAND ACTIVISM
  48. 48. UNDERSTAND TODAY. SHAPE TOMORROW. What they did 48 Founders Isabel Kücke and Rohan Michael Hoole are practicing radical transparency for their value chain and communicating all price calculations to their customers. For all of their products, each cost point is communicated: from materials to packaging to labour, transport and taxes. Even their own mark-ups are included, making their approach truly transparent and a first in fashion industry.  The fashion industry shifted from an exclusive industry to a more open playing field in the last few decades, and is now being disrupted by brands simply doing things differently. Von Hund are really looking to set themselves apart by taking transparency to a new level.How is this transparent? This sign speaks for itself in terms of transparency. The entire value chain was made visible to customers from material sourcing to pricing - something that has been a long time coming in the fashion industry. Radical Transparency in Fashion Comms Source: signmesh, Watch Video Why they did it ' ' Explore the Sign WHAT ARE OTHER BRANDS DOINGLHBS // NEW ERA OF BRAND ACTIVISM
  49. 49. UNDERSTAND TODAY. SHAPE TOMORROW. What they did 49 A healthier option for fast food, Panera are shaking up the food industry by being open about the contents of their food on menus, making efforts to remove artificial additives and using “clean” ingredients. They describe themselves as being “advocated for clean food” and empowering guests to choose exactly how they want to eat. They also state that they’re “committed to making a positive impact on our food system. We believe guests deserve to know not only what is in their food, but where it comes from and how companies are impacting the food system.” How is this transparent? Panera are being more careful in selecting ingredients and so can offer customers more insight into what’s going into their food. They’re simply taking a more honest approach to displaying their menus while taking steps to making this information look more positive. A New Kind Of Fast Food Source: signmesh, Watch Video Why they did it ' ' Explore the Sign WHAT ARE OTHER BRANDS DOINGLHBS // NEW ERA OF BRAND ACTIVISM
  50. 50. UNDERSTAND TODAY. SHAPE TOMORROW. 50 BEST IN CLASS EXAMPLES FOR CONSISTENCY WHAT ARE OTHER BRANDS DOINGLHBS // NEW ERA OF BRAND ACTIVISM
  51. 51. UNDERSTAND TODAY. SHAPE TOMORROW. What they did 51 They launched an LGBT inclusive campaign - #BetterTogether - which depicted a series of various ‘normal’ relationships enjoying Lush products. They have also released a special soap for their #GayIsOK campaign, with all sales going into their Love Fund. This then distributes the money raised to LGBT organizations around the world. Lush wanted to launch a campaign which was refreshingly modern, but without being offensive or for people to feel as though they were simply ‘tokenizing’. They also wanted to reach as many people as they could with their messages of equality for LGBT people, and in the process encourage the Supreme Court ruling on marriage equality to happen. How is this consistent? Lush are well known for their activism surrounding animal cruelty and environmental causes, and so already had the image of being a socially and environmentally conscious company. To take a stand on LGBT rights, especially when marriage equality was a hot topic in the US seemed fitting for Lush. Lush’s support of LGBT charities Source: signmesh, Watch Video Why they did it ' ' Explore Sign 01 Explore Sign 02 WHAT ARE OTHER BRANDS DOINGLHBS // NEW ERA OF BRAND ACTIVISM
  52. 52. UNDERSTAND TODAY. SHAPE TOMORROW. What they did 52 Edeka store in Hamburg, Germany, removed all foreign offerings from its shelves. Instead shoppers could find posters saying things like “this shelf is boring without diversity”, “today, our assortment does know boarders”, and “this is how empty a shelf is without foreigners”. Edeka wanted to make a strong point about just how ingrained other cultures are in Germany, and show how boring our choices would be without them. They wanted to get people talking about the subject and make people aware of just how multicultural we really are. How is this consistent? Edeka Group’s core value is responsibility, with a mission to always act responsibly when it comes to their employees and their families, society and the environment. So this social stand was clearly in line with previous mission statements. Edeka’s Statement Against Racism Source: signmesh, Watch Video Why they did it ' ' Explore the Sign WHAT ARE OTHER BRANDS DOINGLHBS // NEW ERA OF BRAND ACTIVISM
  53. 53. UNDERSTAND TODAY. SHAPE TOMORROW. 53 BEST IN CLASS EXAMPLES FOR PRACTICE WHAT YOU PREACH WHAT ARE OTHER BRANDS DOINGLHBS // NEW ERA OF BRAND ACTIVISM
  54. 54. UNDERSTAND TODAY. SHAPE TOMORROW. What they did 54 Ben & Jerry's has introduced a new ice cream flavor called SOS (Save our Swirled). The flavor is launched along with the global climate talks being held in Paris at the end of this year. They also marketed their participation in the climate change marches around the world with videos and the provision of facts and figures around the topic. The ice cream brand want to encourage people to sign a petition calling for urgent action to be taken against global warming. Their campaigns helped in spreading their brand across a potential customer base, as well as having also succeeded in generating spark amongst general public around the issue of climate change. How is this ‘practicing what they preach’? Not only did they encourage people to sign a climate change petition and launch an ice cream to support the cause, but the brand also got physically involved in marches around the world, and helped inform people on information around the topic. This real-world action is what demonstrated their dedication to the cause. Ben & Jerry’s Climate Change Campaign Source: signmesh, Watch Video Why they did it ' ' Explore Sign 01 Explore Sign 02 WHAT ARE OTHER BRANDS DOINGLHBS // NEW ERA OF BRAND ACTIVISM
  55. 55. UNDERSTAND TODAY. SHAPE TOMORROW. What they did 55 REI kept their doors closed on Black Friday for the third year running, and instead encouraged people to #optoutside. More than 700 organizations have now partnered with REI on this initiative. They also launched an “experiential search engine” featuring photos from people’s #optoutside experiences to really spread the word and perpetuate the consumer sentiment shift. Based on a moral decision by CEO Jerry Stritzke, the outdoors retailer REI began closing on one of the biggest shopping days of the year. Their #optoutside initiative encourages people not to engage in “rampant consumerism” and instead spend the day outside. REI is an outdoor gear and clothing brand, so to demonstrate their support of outdoor activity is a no-brainer. To actually close down stores on a day where retailers make a huge profit is a bold move to show their dedication to the cause outweighs their greed. REI Reject Black Friday Source: signmesh, Watch Video Why they did it ' ' Explore the Sign How is this ‘practicing what they preach’? WHAT ARE OTHER BRANDS DOINGLHBS // NEW ERA OF BRAND ACTIVISM
  56. 56. UNDERSTAND TODAY. SHAPE TOMORROW. 56 Socially minded bath bomb supplier Lush is trying to fight pollution by collecting and recycling ocean waste into packaging materials. A handful of other great CSR examples… Source: signmesh, Watch Video ' ' Explore the Sign "Cards Against Humanity" bought a piece of land to prevent the building of the planned wall at the border between Mexico and the US.  Founder Aydin Umutlu is fighting racism by introducing cola in different “skin colors”. Explore the Sign Explore the Sign WHAT ARE OTHER BRANDS DOINGLHBS // NEW ERA OF BRAND ACTIVISM
  57. 57. UNDERSTAND TODAY. SHAPE TOMORROW. 57 There is a real risk in taking CSR and cause marketing too lightly. WHAT ARE OTHER BRANDS DOINGLHBS // NEW ERA OF BRAND ACTIVISM
  58. 58. UNDERSTAND TODAY. SHAPE TOMORROW. 58 In an era of unprecedented connectivity between brands and consumers, superficial marketing claims from brands are easily called out. WHAT ARE OTHER BRANDS DOINGLHBS // NEW ERA OF BRAND ACTIVISM
  59. 59. UNDERSTAND TODAY. SHAPE TOMORROW. 59 As a result brands have to face declining trust of consumers, which might harm their brand image. WHAT ARE OTHER BRANDS DOINGLHBS // NEW ERA OF BRAND ACTIVISM
  60. 60. #DeleteUber Uber faced immense backlash for undermining the taxi strike at JFK Airport in New York City against the muslim travel ban. Also Ubers CEO, Travis Kalanick was perceived as supporting Donald Trump as he was part of his advisory council. People started deleting their Uber app and did so public with the trending hashtag #DeleteUber. Moreover people posted pictures and videos on social media deleting their Uber accounts. 200.000 people deleted their Uber accounts in the course of the backlash. More than 50,000 people have signed a petition called “Tell Uber: Stop collaborating with Trump.” It ended with Travis Kalanick leaving the advisory counsil. UNDERSTAND TODAY. SHAPE TOMORROW. 60Source: Fortune, Huffington Post WHAT ARE OTHER BRANDS DOINGLHBS // NEW ERA OF BRAND ACTIVISM
  61. 61. UNDERSTAND TODAY. SHAPE TOMORROW. 61 WHAT SHOULD RETAILERS DO ABOUT ITLHBS // 2018: THE YEAR OF BRICK & CLICK WHAT ARE OTHER BRANDS DOINGLHBS // NEW ERA OF BRAND ACTIVISM
  62. 62. Pepsi’s Failed Kendall Jenner Ad For its ad titled “Live for Now Moments Anthem”, brought in many angered reactions from the audience. The ad featured social media influencer Kendall Jenner. The brand created a “short film”, featuring Jenner joining the march by leaving a photoshoot. Where she is shown to be managing to bring everyone together by handing a cop a Pepsi.  The ad was not received in a welcoming manner by viewers, as within 48 hours of it going live it received five times as many down-votes as up-votes. “Borrowing images from the Black Lives Matter movement, the Pepsi ad was accused of commodifying and trivializing social movements to sell soft drinks and belittling the experiences of minorities enduring police brutality back in April,” reported Independent. UNDERSTAND TODAY. SHAPE TOMORROW. 62Source: Fortune, Huffington Post WHAT ARE OTHER BRANDS DOINGLHBS // NEW ERA OF BRAND ACTIVISM
  63. 63. UNDERSTAND TODAY. SHAPE TOMORROW. 63 WHAT SHOULD RETAILERS DO ABOUT ITLHBS // 2018: THE YEAR OF BRICK & CLICK WHAT ARE OTHER BRANDS DOINGLHBS // NEW ERA OF BRAND ACTIVISM
  64. 64. #BoycottDove An advertisement for Dove body wash which showed a black woman removing her t-shirt to reveal a white woman caused an social media outcry. It escalated quickly into a public relations disaster for the Unilever brand being called out as racist.The black-to-white transition was reminiscent, in the eyes of some viewers, of infamous soap ads from the 19th century or early 20th century showed black people scrubbing their skin to become white. During the hight of the outcry there was one tweet per minute using #boycottdove. UNDERSTAND TODAY. SHAPE TOMORROW. 64Source: New York Post, Quartz WHAT ARE OTHER BRANDS DOINGLHBS // NEW ERA OF BRAND ACTIVISM
  65. 65. UNDERSTAND TODAY. SHAPE TOMORROW. 65 WHAT SHOULD RETAILERS DO ABOUT ITLHBS // 2018: THE YEAR OF BRICK & CLICK WHAT ARE OTHER BRANDS DOINGLHBS // NEW ERA OF BRAND ACTIVISM
  66. 66. CHAPTER THREE UNDERSTAND TODAY. SHAPE TOMORROW. 66 WHAT CAN BRANDS LEARN FROM PATAGONIA? LHBS // NEW ERA OF BRAND ACTIVISM
  67. 67. UNDERSTAND TODAY. SHAPE TOMORROW. 67 ONE WHAT CAN BRANDS LEARN FROM PATAGONIA MAKE PEOPLE INVEST IN YOUR CAUSE. Patagonia was able to align themselves and their mission with millions of outdoor enthusiasts, so finding a cause that fits your industry is crucial. Your customers are part of your mission, so they have to be involved in your efforts. Your customers need to be invested in your cause and philosophy, so that they feel they are making a positive impact with their purchase. And just like Patagonia, your brand needs to be inspiring, if you can imagine a better world then so can your customers. LHBS // NEW ERA OF BRAND ACTIVISM
  68. 68. UNDERSTAND TODAY. SHAPE TOMORROW. 68 TWO WHAT CAN BRANDS LEARN FROM PATAGONIA TAKE YOUR CUSTOMERS SERIOUSLY. Today’s consumers are well informed and connected, so direct and honest communication is key to becoming a trusted brand. Don’t be afraid to explain seemingly complex topics such as supply chain processes and sustainability. Take the reins like Patagonia and don’t talk down to your customers or dumb down your messages. It is tempting to avoid unpleasant stories, but telling the good as well as the bad will increase your trustworthiness and leadership position. And your customers will thank you for that. LHBS // NEW ERA OF BRAND ACTIVISM
  69. 69. UNDERSTAND TODAY. SHAPE TOMORROW. 69 THREE WHAT CAN BRANDS LEARN FROM PATAGONIA CONSIDER CSR AS A REAL BUSINESS STRATEGY.
 A brand’s CSR efforts need to be ingrained in their everyday business strategy to really have an impact. So brands need to lead with their actions. Image marketing is part of standing for a cause, but before spending the time and money on planning communications around their new position, brands must actually do something first. Learn from Patagonia’s ability of really walking the walk. Only then should you use your brand’s megaphone to talk the talk and engage consumers to take action themselves. LHBS // NEW ERA OF BRAND ACTIVISM
  70. 70. UNDERSTAND TODAY. SHAPE TOMORROW. 70 FOUR WHAT CAN BRANDS LEARN FROM PATAGONIA DON’T UNDERESTIMATE YOUR INFLUENCE AS A BRAND. The bigger your brand the bigger your influence and impact. but even Patagonia, being a relatively small business was able to shake up the standards in the outdoor industry, advised Walmart and those alike and lead them to take a greener path. Thereby creating new standards of brand activism interlinked with business success. “The question now is what Patagonia could accomplish if it became a Nike-size megabrand.” Source: outside online LHBS // NEW ERA OF BRAND ACTIVISM
  71. 71. A SOLID CSR STRATEGY WOULD BRING… UNDERSTAND TODAY. SHAPE TOMORROW. 71 When your brand is honest and transparent about their shortcomings, consumers will be more willing to accept mistakes. CRISIS RESISTANT BRAND CREATING A LOVE BRAND LASTING BRAND RELEVANCE ATTRACTIVE EMPLOYER BRAND By creating a strong link to your customers you will be able to develop brand evangelists that trust and love your brand. With a strong philosophy you will be more attractive as an employer as the future workforce wants to make a mark and identify with their employer and what he stands for. When choosing a relevant and impactful cause for your brand’s industry, you will stay relevant for consumers beyond fads or trends. WHAT CAN BRANDS LEARN FROM PATAGONIALHBS // NEW ERA OF BRAND ACTIVISM … TURNING YOUR BRAND INTO A CSR POWERHOUSE.
  72. 72. UNDERSTAND TODAY. SHAPE TOMORROW. Discover ABOUT. Define Develop Deliver LHBS is a marketing & innovation firm with offices in Berlin & Copenhagen. We work with legacy organizations to adapt their customer value proposition to meet emerging customer expectations. Together with our clients we discover business opportunities and deliver integrated customer offers for products, services, experiences and communication. http://www.lhbs.com ABOUT UNDERSTAND TODAY. SHAPE TOMORROW. 72 DISCOVER DEFINE DEVELOP DELIVER UNDERSTAND TODAY. SHAPE TOMORROW. LHBS // NEW ERA OF BRAND ACTIVISM
  73. 73. LHBS Put the Title of the Report here HUB. UNDERSTAND TODAY. SHAPE TOMORROW. This report has been created with the help of signmesh. signmesh innovation hub is a tailored dashboard of curated insights and business cases to keep your company ahead of the learning curve and inspire ongoing innovation. signmesh.com SIGNMESH 73 REQUEST A DEMO. LHBS // NEW ERA OF BRAND ACTIVISM
  74. 74. Die in dieser Präsentation dokumentierten Gedanken und Vorschläge sind geistiges Eigentum der 
 LHBS Consulting Berlin GmbH und unterliegen den geltenden Urhebergesetzen. Die unauthorisierte Nutzung, 
 die ganze oder teilweise Vervielfältigung sowie jede Weitergabe an Dritte ist nicht gestattet. LHBS Consulting Berlin GmbH Köpenicker Straße 154  10997 Berlin Germany   IMPRINT UNDERSTAND TODAY. SHAPE TOMORROW. www.lhbs.com THANK YOU 74 LHBS // NEW ERA OF BRAND ACTIVISM

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