Challenges to brand purpose concept
This year has posed significant challenges for the concept of brand purpose, as numerous companies have encountered negative reactions and criticism for prioritizing it. Just a few years back, possessing a brand purpose was considered crucial for attracting environmentally and socially aware customers. However, recent occurrences like the backlash against Bud Light and Target by U.S. conservatives, greenwashing clampdowns, along with critical responses to Unilever and Mars’ emphasis on brand purpose, have left many wondering whether the idea of brand purpose has outlived its significance. In light of these events, businesses are now reevaluating the importance of brand purpose and focusing on finding the right balance between purpose-driven strategies and traditional marketing approaches. The shift in consumer sentiment calls for brands to adopt a more genuine and action-oriented approach to their purpose, ensuring that it aligns with the values most important to their target audiences.
Unilever’s focus on brand purpose
Unilever is at the heart of this discussion, with its focus on purpose throughout its various brands being met with disapproval from some investors. The company’s new CEO, Hein Schumacher, has acknowledged that Unilever now understands that brand purpose does not apply to all its brands. However, Schumacher emphasizes that there are still a significant number of brands within Unilever’s portfolio that can benefit from having a strong purpose. He also recognizes the need to strike a balance between purpose-driven marketing and meeting the financial expectations of investors.
Adapting strategies in the confectionery industry
In a similar move, Tony’s Chocolonely, which had never allocated funds for paid media, has altered its tactics in an attempt to hasten their progress. Cadbury, observing a decline in Dairy Milk sales, reassessed its brand identity and established a new purpose centered around generosity that could be potentially adopted company-wide. Both companies recognize the importance of adapting their strategies to remain competitive and relevant in the ever-changing confectionery industry. By adjusting their marketing approaches and redefining their brand purposes, they aim to create a strong emotional connection with consumers and promote long-term loyalty.
The role of marketing and brand purpose
This ongoing debate over brand purpose has also impacted the marketing world, with ITV’s CMO Jane Stiller discussing the role of marketing in organizations and the missteps that have influenced her career during a recent podcast. Stiller highlighted the importance of brand purpose as a guiding principle in marketing strategies, emphasizing the need for organizations to maintain a clear and consistent message in order to resonate with their target audience. She also shared valuable insights from her own experiences, addressing the challenges she faced and the lessons she learned in overcoming marketing obstacles throughout her career.
On the Beach’s strategic shift in marketing
Furthermore, travel company On the Beach reduced its marketing expenditure from 45% of its revenue to 38% this year, choosing to concentrate on offline avenues and differentiating its brand. This strategic shift has allowed the company to allocate more resources towards building customer relationships and enhancing its overall service offerings. As a result, On the Beach has experienced increased customer satisfaction and retention, solidifying its position as a leading player in the travel industry.
Supermarket chain’s success with brand values alignment
As discussions around brand purpose persist, the supermarket chain’s approach to prioritizing both quality and affordability has led to a 0.4 percentage point increase in market share. This uptick in market share demonstrates the effectiveness of the supermarket chain’s strategy in aligning with consumer values. Shoppers are increasingly seeking a balance between cost and high-quality products, which has driven loyalty and attracted new customers to the brand.
Uncertain future for brand purpose emphasis
It remains uncertain whether other companies will decide to follow this example and redirect their focus away from solely emphasizing brand purpose, opting for more conventional brand development strategies instead. However, given the potential benefits of adopting a more purpose-driven approach, it is likely that at least some organizations will consider incorporating it into their marketing campaigns. Ultimately, the success of this method will hinge on striking the perfect balance between promoting a strong brand identity and demonstrating genuine commitment to social and environmental issues.
First Reported on: marketingweek.com
Frequently Asked Questions
Why are some brands experiencing backlash for prioritizing brand purpose?
Brands are receiving backlash for prioritizing brand purpose because some consumers believe it is disingenuous or merely a marketing tactic. Instances like the backlash against Bud Light and Target by U.S. conservatives, greenwashing clampdowns, and critical responses to Unilever and Mars focusing on brand purpose highlight the importance of adopting a genuine and action-oriented approach to brand purpose that aligns with the values of the target audience.
What is Unilever’s approach towards brand purpose?
Unilever’s CEO, Hein Schumacher, acknowledges that brand purpose doesn’t apply to all of Unilever’s brands but still believes that a significant number of their brands can benefit from having a strong purpose. He highlights the need to strike a balance between purpose-driven marketing and meeting the financial expectations of investors.
Can brand purpose still play a role in marketing strategies?
Yes, brand purpose can still play a role in marketing strategies, but it should serve as a guiding principle rather than the sole focus. Companies should maintain a clear and consistent message that resonates with their target audience while avoiding solely relying on brand purpose to differentiate their offerings.
What is the importance of adjusting brand strategies?
Adjusting brand strategies is crucial to remain competitive and relevant in the ever-changing market. By adapting their marketing approaches, redefining brand purposes, and creating strong emotional connections with consumers, brands can ensure long-term loyalty and success.
What was the result of On the Beach’s strategic shift in marketing?
On the Beach reduced its marketing expenditure and focused on offline avenues and brand differentiation, allowing the company to allocate more resources towards enhancing customer relationships and service offerings. This shift resulted in increased customer satisfaction and retention, solidifying the company’s position in the travel industry.
How can brands effectively balance brand purpose and traditional marketing approaches?
To balance brand purpose and traditional marketing approaches, brands should focus on promoting a strong brand identity while demonstrating genuine commitment to social and environmental issues. Ultimately, the success of this method depends on striking the perfect balance between prioritizing purpose-driven strategies and maintaining traditional marketing efforts that resonate with target audiences.
