Sustainable Brands London Conference

Sustainable Brand Perception vs. Performance: Reducing the Gap ¡  Kate Cox, Head of Strategy, MPG Media Contacts,

Havas Media

Sustainable Brand Perception versus Performance: Reducing the Gap 27th November 2012

Havas Media: Meaningful Brands for a Sustainable Future

5th year of research into brand meaningfulness

2011 survey covered: •  50,000 consumers in 14 countries •  300 brands in 10 industries

Explores brand equity in relation to personal well-being and social capital

Directs, shapes and measures meaningful communications

We survey ‘meaningfulness’ globally

“WOULD YOU CARE IF THIS BRAND CEASED TO EXIST?”

“DOES THIS BRAND IMPROVE YOUR QUALITY OF LIFE?”

CAN WE MEASURE ‘MEANINGFULNESS’?

Meaningful Brand Index

Consumer Perception of ‘Being a Better Business’ and ‘Personal Value’ combined into one metric

Personal Outcomes Collective Outcomes

Huge disparity in the power of brands across markets

53% of people would care if this brand disappeared in

South America

18% of people would care if this brand disappeared in

North America

12% of people would care if this brand disappeared in

Europe

5% of people would care if this brand disappeared in

the UK

30%

50,000+ people 14 countries 300 brands

Always + Often

2011 2010

55% 47%

72% -

72% 68%

71% 69%

69% 45%

68% 69%

67% -

66% -

59% 63%

49% 46%

43% 43%

36% 34%

36% 35%

28% 28%

Developing and Developed Markets

Increase/decrease of at least 3% since 2010 Q5t. How often do you consider environmental, social or ethical aspects when making purchase decisions / when you go shopping?

12

21 17 17 18

23 13

19 13 9

5 5 4 3

43

51 55 54 51 45

54 47

46 40

38 31 32

25

32

23 25

24 25 27

26 26

32 36

39 39 43

43

10

5 3

4 5 4 6 7 7

13 15

19 17

23

2

1

1 1

1 1 1 2 3

6 4

6

Global

Chile China

Mexico Colombia

India Italy

Argentina Brazil Spain

France USA

Germany UK

Always Often

All Countries, 2010–2011

Why Responsible Products/Services not Chosen More Frequently?

All countries, Top Three Reasons Given, Total Mentions, 2011

Subsample: those answering “Often,” “Sometimes,” “Rarely,” or “Never” at Q5 Q6t. Why do you not choose socially/environmentally responsible products or services more frequently? Please choose up to three reasons.

Informa(on:  “From  the  informa/on  available,  it  is  difficult  to  understand  if  a  par/cular  product  is  more  responsible  than  another”  Expense:  “They  are  more  expensive”  Availability:  “In  my  area  they  are  not  broadly  available”  Impact:  “I  think  that  my  individual  effort  does/will  not  have  a  big  impact”  Credibility:  “I  do  not  believe  what  the  company/product  says  about  its  environmental  and  social  responsibility”  Interest:  “I  am  not  interested  in  socially/environmentally  responsible  products”  

Marketing saturation driving corporate cynicism?

Global average

Chile China

Mexico Colombia

India

Italy

Argentina

Brazil

Spain France

USA

Germany

UK

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

20 30 40 50 60 70 80

Adv

ertis

ing

spen

d as

a p

ropo

rtio

n of

GD

P

% of people who always/often consider Environmental/Social/Ethical aspects when making purchasing decisions

Correlation = -0.51

Developed economies Developing economies

Source: MBI & Z Global Forecasts

And economic growth concerns in developed markets?

Global average Chile

China

Mexico

Colombia

India

Italy

Argentina

Brazil

Spain

France

USA

Germany

UK

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20 30 40 50 60 70 80

GD

P gr

owth

% of people who always/often consider Environmental/Social/Ethical aspects when making purchasing decisions

Correlation = 0.59

Developed economies

Developing economies

Source: MBI & Z Global Forecasts

Insight + Implications for developed markets

People’s start point for corporate communications in the developed markets is cynicism. If the company’s motivation is not clear, the message will be treated with suspicion.

Transparency is key – there is a specific need in developed markets to put the short term business reason for commencing any marketing activity around Sustainability at the forefront of the messaging to combat cynicism

Implication

Insight

M&S Case Study

Thank you!