NEWS19 April 2018

Brands focusing on purpose grow faster

News Trends UK

UK – Brands adopting a ‘purpose-led’ strategy stand to grow at twice the rate of those without any higher-order societal aim, according to new research from Kantar Consulting.

Purpose kantar_Crop

As ethics, sustainability and other purpose-focused attributes are increasingly being discussed in the business context, Kantar Consulting’s report puts figures to the debate.

It found that brands with a high sense of purpose have seen their brand valuation increase by 175% over the past 12 years compared with a median growth rate of 86% and a growth rate of 70% for brands with a low sense of purpose.

Among its other findings were that there is a disconnect between belief and action – more than three quarters ( 76%) of marketing leaders believe their organisation has a defined purpose, but only one in ten have a corporate purpose statement backed by a meaningful activation plan.

While two-thirds of marketing leaders believe that purpose delivers long-term growth only one third of them believe purpose is regarded as a ‘company-wide movement’ within their organisation.

Kantar surveyed more than 20,000 consumers and conducted 100 depth interviews with leading brands for its report Purpose 2020.

It has identified three key steps to inspiring purpose-led growth: articulation; infusion and amplification. But brands are over-investing in purpose ‘articulation and under-investing in the ‘infusion’ and ‘amplification’ phases which embed the purpose within the organisation and customer base.

Robert Jan d’Hond, global lead, brand practice, said: “Between revenue and social footprint many brands now have more power than elected leaders, and there is a clear expectation from consumers that this power is used for positive change.

“Brands need to aim high to find a meaning beyond the category while navigating the terrain at ground level without stumbling. That means identifying a long-term societal tension that is relevant but unique while staying true to the brand and company.”

This is the first report from Kantar Consulting’s new Business Purpose practice which was established when Kantar Consulting was launched in January.