Companies must go beyond offering exceptional products and services to succeed in today's ever- changing business landscape. Nowadays, customers are looking for businesses that share their values and actively serve the needs of society. Because of this, the idea of brand equity has expanded to include factors other than only financial success and customer loyalty. It now considers business; social responsibilities and their effects on the environment and community. These crucial ideas are explored in the book The Future of Purpose-Driven Branding by Prof. David Aaker and Prof. Varsha Jain, explaining how purpose-driven efforts can improve brand equity.
MICA provides an enabling research culture which nurtures scholars for global impact and contributions. It helps and supports the scholars to position their work not only as global authors but also work as international associate editors for a journals. We, as scholars, even mentor our students who become future global scholars. Thus, MICA develops globally co-created knowledge ecosystems that drive the research across disciplines and give back to the communities and stakeholders across the globe. - Prof. Varsha Jain
1. Commitment to Society's Needs
In the book,The Future of Purpose-Driven Branding, Prof. David Aaker stresses the significance of a business's commitment to societal concerns. He contends that companies that emphasized using their resources to improve the communities they serve, including their workers and clients, can increase their brand equity by cultivating trust and loyalty within their target market. The writers address Unilever's Sustainable Living Plan (USLP), launched in 2010 with the goal of making sustainable living commonplace and the conviction that doing so is the most significant long-term strategy for the company to thrive to emphasize this.
2. Purpose-Driven Revolution
Companies should concentrate on a purpose-driven revolution in branding if they desire a long-term growth plan. Businesses must actively address societal demands and difficulties in addition to just focusing on sales and profits. By doing this, they can develop a stronger emotional bond with their clients, increasing brand advocacy and long-term loyalty. The authors list other companies that use purpose-driven branding methods, such as the Indian shoe company Neeman's, which was established to create a sustainable footwear brand. While some brands may have numerous mission statements, others may have a social purpose or mission distinct from the business reason.
Additionally, it has been noted that although some corporations include their social purpose or goal in a supporting foundation, others affix it directly to the corporate brand. Philip Kotler, the Father of Modern Marketing, says, Every company should adopt a social cause beyond profit making. Aaker has written the perfect book to help you find that cause and build a unique program and brand that makes a difference.
3. Social Purpose and Addressing Societal Issues
The book, The Future of Purpose-Driven Branding clarifies that successful brands require more than excellent goods and services. Now more than ever, brands need to take a position on critical societal issues like inequality and climate change. Authors David Aaker and Varsha Jain use examples like the Tata Group of Companies to illustrate how purpose-driven branding benefits society and builds brand equity. They say that the organizational culture gives the company's mission internal life. How the organization and its people perceive and respond to problems depends on their beliefs, values,priorities, behaviour, and management styles.
4. Integration of Social Purposes into the Mission
Businesses that incorporate social purpose into their goal might develop a more significant and lasting brand. As highlighted in the book, Unilever mission statement is an excellent example of this strategy by striving to make sustainable living commonplace with high-performing brands that are a force for good. Similar goals are stated for Tesla, which wants to accelerate the world's transition to sustainable energy. When social objectives are included in a brand's mission, the management styles, core values, and personnel all support and work to achieve the goal.
5. Creating Impactful Social Initiatives
The authors of The Future of Purpose-Driven Branding discuss the significance of developing successful social projects. Companies signature initiatives impact stakeholders and motivate them to interact with the brand meaningfully. These programs demonstrate the value of intentional participation, which positively affects society and brand equity. These programs will aid brands in achieving long-term self-sufficiency and ensure they remain relevant to the community and stakeholders.
6. Enhancing Brand Image through Social Programs
Participation in social projects improves the reputation of a registered company. Businesses that actively support issues important to their customers earn partnerships, support, and endorsements. Consumers prefer to keep firms that genuinely care about social issues, so this engagement increases brand equity and loyalty. Brands frequently collaborate with NGOs that offer access to healthcare, education, and employment prospects to the less fortunate. These partnerships enhance brand equity, demonstrate a company's social responsibility, and build brand image.
7. The Imperative of Signature Social Programs
A key component of social leadership is creating distinctive social programs. The authors of The Future of Purpose-Driven Branding contend that such initiatives produce compelling and authentic brands that result in favourable societal changes. HDFC Bank in India established Kaushal Vikas Kendra as a part of their HDFC Parivartan CSR Initiative. This vocational training facility offers skill development and job-oriented training to increase the employability and livelihood chances of poor people, especially young people. To complement its goal statement to encourage sustainable development, HDFC Bank runs several of these iconic social activities.
8. Adding Credibility and Visibility to Brands
The book shows that distinctive social programs increase a brands' visibility and reputation. Dove's flawless beauty campaign serves as an illustration of how such socially connected initiatives may highlight a brand's mission and connect with customers all around the world. The brand image of Barclays, which had a trust issue in 2011, was also improved by introducing a new brand mission: helping people achieve their ambitions in the right way. Social initiatives contribute to the brand's visibility as well as the perception of skill and excellence.
9. Identifying Causes and Differentiation
The authors of The Future of Purpose-Driven Branding advise companies to find causes related to their goods or services. Companies can set themselves apart by developing exclusive initiatives consistent with their beliefs. Purpose-based distinction aids in boosting consumer loyalty and brand identification.
Varsha Jain and David Aaker's book ,The Future of Purpose-Driven Branding offers essential insights into the value of purpose-driven activities in boosting brand equity. Companies may build distinctive, authentic brands that connect with consumers and benefit society by adopting social responsibility, attending to societal demands, and implementing effective social programs. By doing this, they build up their brand equity and promote significant change for the benefit of the future.
This book is highly recommended to students studying branding in India and as a reference book for premier institutes pan India and abroad due to its relevance to the current scenario in the Indian market and the case studies. Adding to this, Jagdish N. Sheth, Charles H. Kellstadt, Professor of Business at Emory University, Georgia, USA, says, The Indian edition of the book is a must-read for Indian students, faculty, and industry professionals working or studying branding in India. The contextualization of brands with Indian examples and case studies explains how branding in India is working towards sustainability, a better environment, individuals, and communities.
Here is an opportunity for MBA Aspirants to interact with the legends of Branding and Marketing, Prof David Aakar and Jagdish N. Sheth, at the Online Book Launch on August 8 at 8:30 pm IST. Free entry for students and professionals.https://www.amazon.in/Future-Purpose-Driven-Branding-Signature-Programs/dp/9357460896/
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