Brands seeking the fast track to accelerated growth are being encouraged to focus their efforts on establishing a clear sense of purpose, following publication of the latest Kantar Consulting research.
The Purpose 2020 report gathered insights from 20,000 consumers and 100 brands to establish that purpose-led brands had seen their valuation surge by 175% over the past 12 years, versus a growth rate of just 70% for listless brands uncertain of their role.
Interestingly while 76% of marketing heads were of the belief that their own organisation had a defined sense of purpose, only a paltry one in 10 could produce a corporate purpose statement and plan to back-up these beliefs.
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.”
A sense of purpose is likely to assume greater importance in future with two-thirds of millennials and centennials expressing a clear preference for ‘brands that have a point of view and stand for something’.
Advertisers are coming under increasing pressure to raise issues, resolve tensions and transcend the functionality of their products in order to win over fickle consumers.