A brand-driven company is an organization that places a strong emphasis on building and leveraging its brand to drive its business strategy and achieve its goals. It recognizes the importance of brand identity, brand values, and brand messaging in connecting with its target audience, building trust, and differentiating itself from competitors.
Brand purpose refers to the underlying reason for a company's existence beyond making profits. It is the higher-order mission or cause that a brand stands for and seeks to contribute to society. Companies that embrace brand purpose and integrate it into their business strategy have been shown to outperform their peers in various aspects.
Brand purpose has been found to be a significant driver of success for companies, with purpose-driven brands often outperforming their peers. Here are some key findings and recent examples:
- According to a report by Prophet, brands with purpose outperform their peers by attracting and retaining top talent and providing a real point of difference for consumers. Examples of purpose-driven brands that have seen increased relevance include Lush, Ikea, and Disney. Prophet
- Deloitte Insights states that purpose-driven companies witness higher market share gains and grow three times faster on average than their competitors. These companies also experience higher levels of workforce retention, innovation, and customer satisfaction. Examples of successful purpose-driven companies include Procter & Gamble and Max Burgers. Deloitte
- Purpose-driven businesses have shown resilience, especially during challenging times like the COVID-19 pandemic. Forbes highlights that these businesses are more resilient due to the motivating effect of working toward something larger than profit or growth. Forbes
- Becoming a purpose-driven business can lead to increased growth and profitability. Green Business MBA mentions that purpose-driven companies have higher levels of innovation and outperform the stock market by 42%. They also build brand loyalty, attract employees, and make better investment decisions. Green Business MBA
Recent examples of brand purpose driving companies outperforming their peers include:
- Patagonia: Patagonia is a well-known outdoor clothing and gear company that has made environmental sustainability a core part of its brand purpose. The company has taken various initiatives to reduce its environmental impact, such as using recycled materials and donating a portion of its sales to environmental causes. This commitment to sustainability has resonated with consumers and has helped Patagonia achieve strong brand loyalty and financial success.
- TOMS: TOMS is a shoe company that operates on a "One for One" model, where for every pair of shoes sold, a pair is donated to a person in need. This social impact-driven approach has not only helped TOMS make a positive difference in the lives of many people but has also attracted a loyal customer base. The company's brand purpose has been a key driver of its success.
- Ben & Jerry's: Ben & Jerry's is an ice cream company known for its commitment to social and environmental causes. The company actively supports various social justice initiatives, advocates for climate action, and promotes fair trade practices. Ben & Jerry's brand purpose has resonated with consumers who value socially responsible businesses, leading to strong brand loyalty and market success.
- The Body Shop: The Body Shop is a cosmetics and skincare company that has long been committed to ethical sourcing, animal welfare, and environmental sustainability. The company's brand purpose of promoting natural beauty products while respecting people and the planet has helped it build a loyal customer base and differentiate itself in the competitive beauty industry.