75% of consumers are concerned about what brands stand for and what it does
At a time when consumers are navigating their way through the pandemic, the importance of being purpose-driven has yet again come to the forefront in order to create long term sustainable value. “Purpose creates relevance. When you find meaning, or a way to touch people’s lives around issues that matter to them, you drive better effectiveness, efficiency and better returns,” Nitin Paranjpe, chief operating officer, Unilever said. He was speaking at the 16th Marketing Conclave held by industry body Internet and Mobile Association of India (IAMAI), held virtually.
According to a report released by consumer research firm Kantar Media, when consumers see a brand making a positive difference to society, that company grows twice as fast compared to its competitors. Moreover, several data suggest that 75% of consumers are concerned about what brands stand for and what they do. Paranjpe further highlighted examples of brands owned by Unilever which are sustainable and have been working towards making a positive difference for the world. For instance, Lifebuoy is aimed at addressing the fundamental issues around hygiene while Dove’s communication is targeted at increasing female body confidence. “Company’s internal research suggests that these brands which have purpose grow 69% faster than the rest of the business. These brands accounted for three-fourth of the growth that the company had reported,” he claimed.
Paranjpe also delved on the recent worldwide movement #BlackLivesMatter – which has further boosted the need for organisations to incorporate purpose into its goals. As per him, consumers today are looking beyond what a company has to offer through its products. She wants to know a company’s stand on certain issues. “Product or feature led differences by a company have a smaller life cycle when compared to purpose. Brands with purpose can grow, people with purpose can thrive, companies with purpose last,” he said.