Reaching Modern Young Consumers through Branding for Good

What is Branding for Good?

In this society of information overload, it is no longer sufficient for brands to rely on superficial branding strategies to differentiate from their competition. It takes more than a beautiful logo, fancy website, attractive features and packaging to win consumers and influence purchasing decisions. There is a growing need for companies to weave the DNA of doing social good into their branding strategy to achieve success. Be it supporting important environmental causes or giving back to the society, branding for good creates a value proposition that delivers a brand promise of sincerity and goodwill. They are here to show that the company is here to do more than profiting for themselves but also for the world. It is a transformational approach that creates a brand story that extends beyond mere advertisement but one that promotes shared values, participation and brand engagement.

Why Branding for Good?

Doing good in this century is important for your business. Forecasted with 50% of the Asia Pacific population falling into the millennial age bracket by 2020, today’s consumers are largely made of millennials with a deep-rooted desire to do good. They are navigating a growing trend towards capitalism-with-a-conscience and show strong support for brands making a difference in the world. According to a recent study by Havas Worldwide, 73% of consumers believe brands have a responsibility to do more than just generating profit and 53% avoid buying from companies that have a negative social or environmental impact. Another survey states that 85% of millennials correlate their purchasing decisions and their willingness to recommend a brand to the social good efforts a company is making.

It is also important to note that the consumers are information savvy participants with the power to access information at the click of a mouse. They are actively seeking out information on the companies and brands of the products and services they use. In this aspect, social minded companies stand out from the crowd with an attractive brand perception and message. Through actively communicating their values and encouraging consumers to participate in their causes, they are creating an avenue for consumers to enjoy shared experiences and forge emotional connection with the brand. This promotes consumer engagement and encourage brand loyalty in an ever-fickle market place.

How companies do it?

Tom’s is an impressive example of an international company where doing social good is incorporated seamlessly into their DNA. The company originates with a ‘One for One’ business model and consistently delivers the message in wanting to give back to the society from every sale of their shoes. This means, for every shoe a consumer purchased, the company gives a pair of shoes to a person in need. Ten years on, the company remains highly successful with positive consumer perception and has a loyal brand following.

Dove is another successful example of a brand propelled by delivering a strong message of woman empowerment through the ‘Campaign for Real Beauty,’ which aims to create awareness that a woman’s real beauty is not defined by standards. Dove managed to create a brand identity with a bigger purpose than selling beauty products. By advocating the need to change how women perceive themselves and touching on the issue of self-esteem, women across the world connected to the brand on a brand new personal level which ensued its huge success. A $200 million soap brand company has grown into a brand that is worth nearly $4 billion today.

Lastly, Eighteen Chefs is an excellent local example of how branding for good saved a business from bankruptcy and transformed it into a profitable business. From a nameless establishment in Singapore’s competitive F&B industry, Eighteen Chefs differentiated itself from its competition through its commitment in driving the noble cause of hiring ex-offenders and youths at-risk to give them another shot at integrating into the society. This resonated deeply with the community, gathering huge support from the society and hence gaining many loyal patrons. Today Eighteen Chefs is a successful restaurant chain with an incredibly positive brand identity.

To do or not to do?

Let’s face it. Traditional branding strategies extended are lacking in this age of technology and hyper-connectivity. Your main demographics of consumers interact with media differently and spend the majority of their time online through an explosive use of mobile web and social media platforms. News now travel in split seconds and sharing of information is widespread, resulting in a much tougher landscape to gain consumer’s attention. The main task of branding has moved from a simple straightforward task of developing a logo and superficial aesthetics to a complex one of value creation and reputation building. In this aspect, branding for good is an enabler for your brand to add value and build a solid reputation through social impact. This promotes rapid sharing of your business and positive reviews to boost sales and gain consumer loyalty. Everyone loves a good and inspirational story.

So, will it guarantee success? Not necessarily. Brands that use social impact to build their reputation are threading on thin ice with their consumers. The popularity and support they gain are largely dependent on their authenticity and sincerity in delivering their brand promise – it is not a simple task. Any controversies or bad press almost guarantees the brand’s fall from grace and recovery is a tremendous uphill task. In the most recent example, Dove uploaded a social ad on its Facebook and created a social upheaval. It featured a black woman taking off a shirt similar to her skin tone to reveal a white woman after using its body wash. It created a huge backlash where accusations were rampant of the brand promoting racism. The ad was subsequently pulled from its platforms and the company delivered an apology through its PR outlet. However, the damage was done and consumer confidence of the brand suffered greatly with many social media users calling for the boycott of Dove’s products.

Conclusively, using branding for good as a core brand message has its generous benefits, if done successfully. It is not a one-time branding effort to seal the company’s good reputation but a continuous one of maintaining it sensitively.

References:
CBRE, Asia Pacific Millennials: Shaping the Future of Real Estate.
Havas Worldwide, Prosumer Report, Project Superbrand: 10 Truths Reshaping the Corporate World.
Achieve and Johnson, Grossnickle and Associates (JGA), 2012 Millennial Impact Report.