We’re starting the year on a very positive note, as ROSAPARKS, Brands with a Purpose, has collaborated on a special report on Purpose-Driven Brands published in the latest issue of El Publicista magazine. This report focuses on the more human side of brands and businesses.
What are purpose-driven brands?
These types of companies, in addition to seeking economic profit, advocate for sustainability and generating a positive impact on their environment and the world. It is precisely this brand purpose that guides business decisions. At ROSAPARKS, we work with these brands. All our clients seek to generate a positive impact on the world.
This is not about Corporate Social Responsibility (CSR). Social responsibility means acknowledging a company’s impacts, reducing negative ones, and fostering positive ones. Purpose goes further. Purpose is the essence of a business; it is its reason for being, its heart.
It is also important not to confuse purpose with a company’s mission or vision.
Purpose is the reason a brand or company exists, why it does things. Mission is what it does to achieve its purpose. And vision is the reality the company would like to see in the world, regarding its customers and itself.
To define the company’s purpose, The Golden Circle of Business Purpose.
Customers demand firm, transparent, and real commitments from brands as agents of change and drivers of social well-being and sustainability. Now more than ever, businesses and brands must have purposes that improve their customers’ daily lives to remain in the market and advance their commercial strategy.
And be careful not to fall into one of the most common brand mistakes: underestimating your audience. Users can clearly differentiate between a real commitment supported by actions and a desperate attempt to jump on a trend with empty messages. Purpose-driven marketing must be authentic; otherwise, your customers will immediately reject it.
What weight does purpose have on consumers’ purchase intent?
As a brand, having and executing a purpose is also profitable. A study by the communications consultancy Hotwire, ‘Conscious Brands: The Era of Corporate Purpose,’ showed that 45% of Spaniards say that “whenever possible, they choose products from companies with a clear purpose, and 10% always do so.” Regarding price, up to 59% of Spanish consumers would be willing to spend more on brands or products that had a clear purpose.
According to the same study, if the user faces a purchase over 1,200 euros, the importance of purpose reaches 60%. And for purchases under 6 euros, the percentage drops to 47%. Therefore, we can affirm that almost 50% of purchasing factors are based on companies’ purpose.
If we look at consumer ages, the importance they give to brands’ real commitment through their purpose varies. 83% of young Spaniards spend more on purpose-driven brands compared to 39% of those over 65.
Therefore, we can affirm that purpose is becoming a factor in customers’ value assessment, joining other key elements such as price, product quality, brand reputation, and customer experience, among others.
How can a purpose-driven brand be created?
It’s not that complicated; as we tell our clients, you have to look for a purpose, a reason for being beyond economic profit. But for a brand to truly have a purpose, it shouldn’t just stop at its definition. It is vitally important to activate purpose through creative projects with social impact. We never tire of telling our clients that purpose is activated and communicated through actions. Brands must move from storytelling to storydoing. If someone believes that running a corporate advertising campaign to provide information about their business purpose is enough, then they do not understand what brand purpose is.
To communicate brand purpose and highlight social or environmental impact we can rely on purpose-driven creativity. In contrast, creativity without purpose focuses more on the mission as a business objective and on the rational or emotional benefits of the product or service. Retail, luxury, automotive brands, or most FMCG brands would be clear examples. Purpose-driven creativity speaks to the impact the brand seeks to produce in people’s lives and the world they live in. And it applies not only to communication but also to projects, ideas, initiatives, and alliances.
Factors companies must meet
These are some characteristics of purpose-driven brands
- They are inspiring companies: by having a purpose that is the business’s “reason for being,” they become a guide for other companies and their clients.
- They benefit all people and the world around us, as they are committed to society and sustainability.
- These companies promote a new mindset, looking beyond current customers or products and services.
- Purpose-driven companies and brands are consistent and impervious to short-term demands.
- They are transparent with their audience.
What are the benefits of having a brand purpose?
As we have seen throughout the article, the fact that a brand has and acts on a clear purpose is a compelling reason for consumers to choose it over the competition. But there are many other benefits that brands will gain by having a clear purpose:
- Increase brand value
- Build emotional and human relationships
- Stand out from the competition
- Improve brand image
- Attract and retain company talent
- Boost innovation
- Improve performance
We don’t want to overlook this last point: 71% of employees prefer to work for purpose-driven companies and feel that their effort and talent can have a positive impact on the world around them. This directly and positively affects team performance.
Examples of purpose-driven brands
We recommend downloading the latest issue of El Publicista, where you will find a lot of information to immerse yourself in the world of purpose branding, and discover what brands like Fundación «la Caixa», PepsiCo, Grupo MASMOVIL, Bayer, Patagonia, Campofrío, IKEA, or Mahou San Miguel are ALREADY doing for the world and sustainability.
At ROSAPARKS, it has been a privilege to participate in this report alongside other prominent players such as Sioux meet Cyranos, Bakery Group, 21gramos, Parnaso, or Hotwire España .
The era of Purpose Branding has arrived. Are brands ready for this new revolution?
Looking to build a purpose-driven brand? Contact our agency!
ROSAPARKS is a creative consultancy and B Corp advertising agency specializing in Brand Purpose, Social Impact, and Sustainability. Our goal is to help brands, our clients, define their purpose and activate it through creative projects with social and environmental impact, with a dual objective: to do good and contribute to brands being profitable and relevant to consumers.
