Traditionally speaking, the main goal of a retailer is to sell quality products that serve a specific need for their target market. But over the years this goal has changed, and in the current competitive climate, consumers are spoilt for choice when it comes to brands. As such, they’re no longer attracted to traditional differentiators such as price points or product quality. This is not to say competitiveness on price or quality is redundant, they just no longer provide a significant advantage in our current retail landscape – more so since the pandemic. Instead, consumers are more likely to engage, trust and purchase from purpose driven brands that uphold strong values. 

With this in mind, the question we need to ask is why has this notion become increasingly important and how can brands and marketers engage with their consumers where it matters most.

Why is it important for brands to adopt a purpose driven strategy?

As marketers, the first thing to address is what exactly is meant by the term purpose driven. ‘Purpose driven marketing’, ‘Branding for good’ or ‘Purpose led marketing’ can all become buzzwords if not fully understood or executed correctly. By definition, a purpose-driven brand is a brand that is motivated by their core mission which goes beyond the service or products they provide. Instead, part of its mission is to meet a societal need or solve a problem, which informs the brand’s vision, mission, corporate culture, visual identity, decision-making, and more. 

Adopting a purpose driven strategy has a number of competitive advantages for your brand including:

1. Brand growth – A study conducted by Kantar in 2020 revealed that, over a 12-year period, companies with a purpose-led business strategy experienced brand growth of 175% (versus 70% for brands without). For example, in 2019 Unilever pivoted to a social focus at the holding company level and reported that its purpose-led brands grew 69% faster than the rest of its stable. Having a purpose driven objective can positively contribute to your bottom line and profitability and while this shouldn’t be your overall driving force, it does make a significant difference. When consumers are able to connect and relate to your brand’s mission, they are more likely to invest in your business knowing the impact that their purchases will have.
2. Increased brand loyalty – When brands have a clear purpose and mission that consumers identify with and can get behind, they will most likely become loyal brand advocates. By standing for more than what you sell or services you provide, brands have the opportunity to connect with their consumers on a deeper level and ultimately affect brand choice in your favor.
3. Making a societal impact – The whole point of being a purpose led brand is to actually make an impact. Above driving sales, gaining market share or increasing brand awareness it’s the positive impact that your purpose can have on society and your potential to make a change. This not only benefits your business but also speaks to your consumers who are directly affected by that issue. 

What are the guiding principles to adopting a purpose driven strategy?

1. Authenticity is key – Consumers are smart and they can tell when a brand is giving them ‘lip service’. An authentic brand purpose demands more than an expensive marketing campaign or great content. It needs to be weaved into your corporate values and identity. 
2. Engage and connect with your consumers – It’s important to get your consumers involved and give them an opportunity to be a part of the change you are trying to make. 
3. Focus on a cause that is in line with your brand’s mission and your consumers – Whatever initiative you chose, it needs to be intentional, actionable and authentic or it will fall flat. A well chosen purpose doesn’t need to be over complicated, neither do you need to over extend yourself. Pick an initiative that feels intuitively right and aligned with your business strategy.

If you’re looking for some inspiration, here are some examples of South African brands who are leading the charge in purpose driven initiatives.

CheckersSixty60 – Meals on wheels

Checkers Sixty60, a veteran supermarket chain in South Africa has partnered with Meals on Wheels – a nonprofit organization tasked with helping poverty-stricken South Africans with nutritious meals and food security. Consumers are able to use the Checkers Sixty60 app to send a donation to Meals on Wheels and receive their R35 delivery fee back as an app credit within 24 hours.

Ackermans (Pepkor group) – Turning fashion waste into building blocks

Ackermans, a South African chain of clothing retail stores is tackling environmental problems one brick at a time by recycling fashion textile waste into building blocks. They have partnered with Wastecrete – an organization that specializes in using waste in different concrete applications to produce a sturdy, insulated, fire resistant textile building block called F♻BRIC. With the insulation these building blocks provide, homes will not require heating or cooling systems making them carbon neutral. Not only is Ackermans reducing pre-consumer waste but they are also providing a solution to making homes more environmentally friendly. 

Woolworths – Zero hunger by 2030

Over the years, one of Woolworths key focus areas is to play an active and meaningful role in addressing South Africa’s food security and hunger alleviation challenges. #ZeroHunger2030 is one of their many CSI projects that strives to eliminate hunger by 2030. This initiative supports several organizations which help hundreds of local small-scale farmers, young entrepreneurs and community food gardeners increase the yields of their gardens and small holdings. Last year alone Woolworths donated R731 million worth of food to over 1400 charities across the country Amidst the global pandemic and other competing socio-economic challenges.

These examples are a testament to the importance of being “purpose led” in 2022 and beyond, showcasing that brands and consumers alike are looking to drive real change when it comes to authenticity and brand motivation.

If you’re interested in learning more about what your business can do to drive results with purpose at the forefront, sign up to Incubeta’s upcoming 22nd September event; which will cover purpose in an insightful panel on the Importance of CSR.

Register Here