Brand Purpose: genuine or spin?

I recently wrote a short piece for a business daily. This was my first draft.

Over the last couple of years, many brands and enterprises have initiated marketing campaigns espousing a brand purpose. What’s causing the rush to join the bandwagon? Is it effective? Here’s a brief look at the issues to consider.

What is brand purpose?

Voted 'word of the year’ in 2018 by The Association of National Advertisers in the US, brand purpose refers to a higher, lofty vision that an enterprise or brand should adopt. It is a reason to exist, a 'higher calling' than just sales. Not just CMOs, even CEOs speak of it as the current business imperative.

Brands have traditionally aimed to portray a higher order benefit in advertising but brand purpose seeks to go beyond an ad campaign. It is meant to be a rallying cry for an enterprise or a brand and very often has a 'social good' component, whose action benefits a community and the world. Going beyond skin & hair care, Dove is about nurturing self-esteem in women helping realise their full potential. Several other brands have associated themselves with causes pertaining to social good and societal trends.

What is the trigger for enterprises to adopt brand purpose?

Many enterprises cite research which shows that consumers, especially Gen Z and millennials, have more affinity towards brands which take a stand on societal issues and ‘do good’ for the society. Simon Sinek, author of Start With Why, also has a huge influence on CXOs when it comes to brand purpose. His famous TED Talk and theory that 'people don’t buy what you do, they buy why you do it" is explained in his 'Golden Circle' comprising Why (the higher calling for the business to exist) at the core, How (the core belief is fulfilled) and What (the company does to fulfil the belief) around it.

Does brand purpose impact sales?

While there could be many factors impacting sales, brands which believe in brand purpose claim that their stance pays dividends. A survey among 30,000 people across 35 countries by Accenture revealed that nearly two-thirds (63%) of consumers prefer to reward companies that are willing to take a stand on current issues. If that’s any indication, purpose-led brands can see a positive impact on sales if they establish a strong relationship with customers. According to Unilever, their Sustainable Living brands grew 69% faster than the rest of their business in 2018.

What do critics of brand purpose have against it?

Brand purpose has always evoked polarizing opinions. Many industry veterans dismiss it as a fad, a buzz phrase meant to fool consumers. Their grouse is that companies that expound on brand purpose in ad campaigns often do not practise what they preach. They could indulge in dodgy business practices, pay lip service to the cause or have a messaging that has nothing to do with the product category. There are businesses that earnestly follow sustainable practices and see business impact.

What does it take to make brand purpose work?

At the heart of this approach is relevance - the higher order benefit should be relatable in an authentic way to the brand and the consumer it is addressing. Also, aside from mere advertising claims, the brand should walk the talk by practicing what it preaches across all its activities - sourcing, product development, business practices, employee relations and more. If the cause has a tenuous link to the brand category or if the brand does not live up the values it espouses it will ring hollow and lack credibility.