Brand Purpose - The Myth Debunked
When we think of purpose-driven companies, who do you think of?
I think of Like Patagonia
Over the last seven years, an idea that is widely promoted in the advertising and marketing world is "brand with a purpose outperform those that don't have one."
Brands with a purpose = are that brands which have a purpose beyond profit.
The evidence supporting brand purpose comes from the book Grow, written by Jim Stengel and ex-CMO of P&G.
He came up with his finding after selecting 50 brands with the highest loyalty from Millward Brow's 50.000 strong database. Then he searches for a link between those 50 brands and he found one, Brand Purpose.
Next, he looked at the chosen brands' stock value growth between 2000 and 2011. He saw his 50 brands grew with 393% instead of 7% loss for the S&P 500 benchmark.
Stengel's conclusion was, brand purpose is driving business success.
The book and results had a tremendous impact. Top guru's and CEO's of marketing agencies jumped on it, declared that they are "utterly convinced."
I won't be me if I don't dive deeper to see if the theory is correct, the purpose of my speech tonight.
Let's dive into the next questions:
- Is the data correct?
- Does the theory predict past and future?
- Does a purpose link the brands?
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