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CIM - Lancaster
Creating brand and business value through sustainability
Paula Oliveira paula@brandcap.com
@PaulaOliveiraBV
09• 11•
16
5
Trends
Circular
economyGovernment
Employees
Suppliers
Shareholders
Community
Customers
Shared
value
10
Whilst young brands are being set up based on new values
A New Generation of Entrepreneurs
is Practicing a Business Model that
Places Equal Importance on Doing
Social Good as on Making Money.
Marketing 3.0 will be won by
Purpose-Driven, Social Brands.
The Rise of Social Entrepreneurship
Suggests a Possible Future for
Global Capitalism.
Merging The Profit
Motive and Moral Imperatives: The
Rise of Social Enterprise in the
United States.
11
Leading to a new generation of brands with purpose beyond profit
TOMS - ONE FOR ONE.
With every product you purchase,
TOMS will help a person in need
PATAGONIA.
Responsible consumption.
13
How does it create value?
The business rational
Legislation Costs Demand
Risk of loosing
customers
Potential to
increase
demand
14
Customers care… especially the young
89% of millenials(age 21-34)
have a stronger likelihood to
purchase from companies that
support solutions to specific
social issues.
Nielsen, 2014
75% actively research the
behaviour and policies of the
brands they buy.
JWT Intelligence/Sonar, 2015
66% of consumers around the
world say they prefer to buy
products and services from
companies that have
implemented programs to give
back to society.
Nielsen, 2014
51% of consumers want
to reward responsible companies
with their business.
Nielsen, 2014
15
They are more keento pay a premium
2014 Percentage point change from 2011
Global Average
Latin America
Middle East / Africa
North America
Europe
+10
+9
+13
+10
+7
+8
Source: Nielsen Global Survey of Corporate Social Responsibility. Q1 2014
Percent willing to pay extra for products and services from companies committed to positive social and environmental impact
Nielsen, 2014
16
Shareholders care too
‘High sustainability companies’
significantly outperform their counterparts
over the long-term, both in terms of stock
markets as well as accounting
performance.
For example, investing $1 in the
beginning of 1993 in a portfolio of
‘sustainable firms’ would give you $22.6
by the end of 2010 based on market
prices versus $15.4 in what the authors
call ‘traditional firms’.
17
Other studies support these findings
An authentic and
well-communicated purpose
can contribute
up to
17%
of a company’s financial
performance*
Brands with a positive impact
on our quality
of life outperform the
stock market by
120%
AirBnB’s latest round
of funding values the
young tech business
at
$20bn
total*on avergage*
Burson-Marsteller, a Young&Rubicam
companyHavas Media Group http://techcrunch.com/2015/02/27/
airbnb-2/
18
Example of companies that implemented a corporate vision around a social purpose
STOCK PRICE PERFORMANCE DURING 1ST YEAR OF TRANSFORMATION
Percent Change First Year of
Transformation
+8%
+53%
+13%
25
INNOVATION & COLLABORATION
Schneider Electric, Microsoft Azure, UK Dept Int.
Development (DFID):
The energy is produced through solar-powered batteries
connected to Microsoft Azure IoT technology, which then
converts the battery power into portable electricity.
28
BRAND INSPIRATION
Apple’s LIAM:
dismantles iPhones and
separates all
components for
recycling with a 97%
success rate so that
different materials such
as glass, copper,
aluminium etc. are not
mixed and can be sold to
recycling centres rather
than dumped in landfills.
29
BRAND AS THE BUSINESS
Fairphone: mobile that do not
contain conflict minerals, made of
high quality replaceable materials
and enforce labour conditions
across supply chain.
32
product strategy
services strategy
operational systems & processes
values & behaviours
supply chain mgt
insight & measurement
workplace experience
internal comms &
engagement
leaders& mgmt
org structure&
design
marketingcommunications
strategy
Brandexperience &
channel design
customer service& loyalty
Businessstrategy
employerbrand
impact
partnerships & alliances
33
Corporate responsibility and one unified strategy
Business Brand
SustainabilityA business that will sustain in the future
34
1. Understanding your ecosystem
2. Identify what will guarantee the sustainability of the business
3. Collaborate for change, differentiate for impact
4. Make it a principle for all
5. Don’t forget the basics
Check points
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