Unlocking the Power of the Corporate Brand to Reflect Purpose and Values
Most companies effectively articulate their product brands—customers, employees, and other stakeholders can instantly recognize products like an iPhone or a Starbucks coffee. Yet, clarity often diminishes when it comes to the corporate brand. What deeper values and missions drive these organizations? How are they viewed and utilized in the market and internally? This distinction between product recognition and corporate identity highlights the need for a clearer, more impactful corporate branding strategy that communicates the overarching ethos and purpose of the company behind the products.
With new technology developing expeditiously and the ever-growing proliferation of social media, consumers are demanding more transparency and accountability. This transparency is behind much of the shift in power dynamics relative to branding. Too many consumers, especially Millennials, the people behind the brand matter.
Consumers’ expectations that brands align with their personal values present an excellent opportunity for companies to demonstrate competitive aptitude by building more authentic and profitable relationships with customers.
The Rise of Purpose-led Branding
Savvy marketers are proactively embracing this movement. In addition to advertising and other forms of creative activation, our brand consultants increasingly see this trend reflected in brand strategy, especially in positioning. Perhaps the most extreme manifestation of this shift occurs in for-profit companies whose primary reason for being (i.e., purpose) is reflected in their brand positioning. So-called purpose branding is not a fad; brand positioning will likely reflect purposes for many years to come.
Purpose-based branding means the company looks to its brand to declare not only the promise it makes to customers through its products and services but also to communicate the broader purpose it serves to all its stakeholders. As such, it should be no surprise that one of the many benefits of a strong corporate brand—regardless of whether it’s formally reflected in its positioning—is the ability to signal to customers and other external stakeholders what the company believes.
Warby Parker Enables Everyone Access to Eyecare
Online eyewear pioneer Warby Parker and global toymaker LEGO serve as exemplary cases of brands that transcend traditional product marketing to embody their corporate ethos in every consumer interaction. Warby Parker, with its innovative direct-to-consumer model for eyewear, integrates a clear social mission into its business strategy through the Buy a Pair, Give a Pair program. This initiative not only addresses the need for affordable eyecare but also firmly positions Warby Parker as a brand committed to social responsibility, directly linking consumer purchases to global health aid.
LEGO Globally Inspires Children to Build A Better Future
Denmark-based toy company LEGO recently opened its first flagship store in China. The store features an interactive play area that encourages children to build their own cities of the future. Here, children learn about modern architecture and environmental impacts. The store is not the only hands-on educational experience implemented by Lego. The LEGO Foundation, in partnership with non-profit organizations Porticus and BRAC, recently funded more than 513 "play labs" in Uganda, Tanzania, and Bangladesh. The labs enable kids to participate in a child-based curriculum built by a team of global play authorities.
Patagonia Leads the Way in Business Sustainability and Activism
Patagonia, a brand renowned for its outdoor clothing and gear, exemplifies how deeply integrated a company's mission can be with its business operations and brand identity. Beyond creating high-quality, durable products for outdoor enthusiasts, Patagonia's corporate ethos is rooted in environmental activism and sustainability. The company's commitment to the planet is evident through initiatives like its pledge to donate 1% of sales to the preservation and restoration of the natural environment and its "Worn Wear" program, which encourages consumers to repair, share, and recycle their gear instead of buying new.
Patagonia's actions, such as filing lawsuits against environmental policy rollbacks and launching campaigns to protect national monuments, boldly underline its dedication to environmental causes. These efforts not only resonate with its target audience but also clearly distinguish Patagonia's corporate brand as a leader in environmental stewardship. Through its unwavering commitment to sustainability and activism, Patagonia not only sells products but also champions a cause, making it a powerful example of a brand that aligns its corporate identity with its values and mission.
Food for Thought
Recent years have underscored a pivotal shift in consumer expectations: the demand for brands to not only articulate a clear purpose but to actively embody it in every aspect of their operations. This raises several intriguing questions about the future landscape of consumer-brand interactions.
What do consumers anticipate from brands and retailers in the times ahead? The answer lies in a deeper, more authentic engagement that goes beyond traditional marketing. Consumers are increasingly savvy and seek transparency, expecting brands to integrate values such as integrity, sustainability, and social responsibility seamlessly into their digital and physical experiences.
Furthermore, how can brands authentically weave these core values into the fabric of their tech-enabled touchpoints? It's not just about leveraging technology for convenience but using it as a conduit to amplify a brand's commitment to its values. For instance, blockchain can ensure product authenticity and sustainability, enhancing consumer trust.
As we ponder the evolution of the concept of purpose, it's clear that it will become even more integral to brand identity. Consumers don't just want products; they seek connections with brands that reflect their own values and aspirations. Purpose-driven brands that prioritize genuine impact—whether through environmental stewardship, social equity, or community engagement—are not only setting a new standard but are also redefining the very essence of value creation in the business world.
Consumer sentiment has unequivocally shown a preference for brands that act as forces for good, contributing positively to local communities and the broader global landscape. The emphasis on honesty, integrity, empowerment, and more in recent brand activations, immersions, and initiatives illustrates a compelling narrative of change. Brands that can navigate this shift, aligning their operations and communications with these deeper consumer values, are poised to build more authentic, sustainable, and profitable relationships with their audience.
