In recent years, we have witnessed a shift in the way businesses operate. More and more companies are adopting a purpose-driven approach to their branding strategy. In this blog, we will discuss what purpose-driven branding is and how it has made a significant difference in the way businesses operate. We will also provide examples of brands from around the world that have adopted a purpose-driven branding strategy and have seen positive results in their profitability and brand equity.

What is Purpose-Driven Branding?

Purpose-driven branding is a strategy that focuses on the brand's purpose, values, and beliefs, rather than just the product or service it offers. It involves creating a brand story that resonates with the customers and employees, and which goes beyond just selling a product. A purpose-driven brand stands for something that is larger than itself and aims to make a positive impact on society.

The Differences It Has Made in the Most Recent Years

Purpose-driven branding has made a significant difference in the way businesses operate. Companies that have adopted this strategy have seen positive results in their profitability and brand equity. Here are some of the differences it has made:

1. Increased Customer Loyalty: Purpose-driven branding helps to create an emotional connection with customers, which leads to increased loyalty. When customers feel that a brand shares their values and beliefs, they are more likely to stay loyal to that brand.
   

2. Improved Brand Reputation: Brands that stand for something beyond just selling a product or service are perceived as more authentic and trustworthy. Purpose-driven branding helps to improve the brand reputation, which can lead to increased sales and profitability.
   

3. The Attraction of Top Talent: Companies that have a strong purpose and values tend to attract top talent who share those same values. This can help to create a strong and motivated workforce, which can lead to increased productivity and profitability.
   

4. Competitive Advantage: Purpose-driven branding can give a company a competitive advantage over its rivals. Customers are more likely to choose a brand that shares their values and beliefs, which can lead to increased market share and profitability.
   

5. Positive Impact on Society: Purpose-driven branding can have a positive impact on society by promoting ethical and sustainable business practices. This can help to create a better world for everyone and contribute to a more sustainable future.
   

Examples of Purpose-Driven Brands

Here are three examples of brands from around the world that have adopted a purpose-driven branding strategy and have seen positive results in their profitability and brand equity.

1. Patagonia
   

Patagonia is an outdoor clothing company that has adopted a purpose-driven branding strategy focused on environmental sustainability. The company is committed to reducing its environmental impact and has implemented various sustainable practices in its operations. Patagonia also encourages its customers to take action to protect the environment by donating 1% of its sales to environmental organizations.

Let’s take a closer look at Patagonia's internal and external branding efforts and how they have successfully implemented purpose-driven marketing.

Internal Purpose-Driven Branding Efforts of Patagonia:

Patagonia's commitment to purpose-driven marketing begins with its internal branding efforts. From the very top of the organization, the company has made a conscious effort to create a culture that aligns with its values. This is reflected in the company's mission statement, which reads: "Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis." This mission statement is not just a marketing gimmick - it is the driving force behind everything the company does.

In addition to its mission statement, Patagonia has also implemented a number of internal branding initiatives that reinforce its commitment to purpose-driven marketing. For example, the company offers employees paid time off to volunteer for environmental causes, and they have a program called "Earth Tax" where employees can choose to donate a portion of their salary to environmental organizations. These initiatives not only help to create a culture of purpose within the company, but they also demonstrate to consumers that Patagonia is truly committed to its values.

External Purpose-Driven Branding Efforts of Patagonia:

Of course, Patagonia's purpose-driven marketing efforts are not limited to their internal branding initiatives. The company has also been very successful in using external branding to promote their values and make a positive impact on the world. One of the most notable examples of this is their "Don't Buy This Jacket" campaign, which urged consumers to think twice before making a purchase and consider the impact their buying decisions have on the environment. This campaign was incredibly successful, and it helped to position Patagonia as a leader in sustainable fashion.

In addition to their marketing campaigns, Patagonia also uses their products to promote their values. For example, the company uses recycled materials in their clothing and gear, and they have implemented a program called "Worn Wear" that encourages customers to repair and reuse their Patagonia products rather than buying new ones. These efforts not only help to reduce the environmental impact of the company's products, but they also demonstrate to consumers that Patagonia is committed to making a positive impact on the world.

One Major Step That No Other Multi Billion Dollar Company Has Done Before: Shift in Ownership:

In 2022, Yvon Chouinard, the founder of Patagonia, announced that he was donating his entire business to a non-profit organization called One Percent for the Planet. This move means that Patagonia is now owned by a non-profit, which will ensure that the company's commitment to environmental sustainability and social responsibility will continue even after Chouinard's retirement.

Implications for Business:

This shift in ownership is significant for the world of business, as it challenges the traditional model of for-profit companies. Patagonia's decision to donate their business to a non-profit shows that it's possible for a company to prioritize sustainability and social responsibility over profits.

This move also puts pressure on other companies to follow suit and consider the impact of their business on the environment and society. It sends a message that business can and should be used as a force for good, and that profit and sustainability are not mutually exclusive.

Yvon Chouinard's decision to donate his entire business to a non-profit organization is a major shift for the brand and the world of business. This move shows that it's possible for a company to prioritize sustainability and social responsibility over profits, and puts pressure on other companies to follow suit. Patagonia's commitment to environmental sustainability and social responsibility will continue, ensuring that the brand will remain a leader in purpose-driven marketing for years to come.

Patagonia is a great example of a brand that has successfully implemented purpose-driven marketing. Their internal branding efforts help to create a culture of purpose within the company, while their external branding efforts demonstrate to consumers that Patagonia is truly committed to their values. By using their products and marketing campaigns to promote sustainability and make a positive impact on the world, Patagonia has not only created a successful business, but they have also made a positive contribution to society.

1. TOMS

TOMS is a shoe company that has adopted a purpose-driven branding strategy focused on giving back. The company's One for One model donates a pair of shoes to a child in need for every pair of shoes purchased. TOMS also donates a portion of its profits to various charitable causes.

TOMS' purpose-driven branding strategy has helped the company to create a strong emotional connection with its customers. The company's commitment to giving back has resonated with consumers, and it has helped to increase brand loyalty and profitability.

We will take a closer look at TOMS' internal and external branding efforts and how they have successfully implemented purpose-driven marketing.

Internal Branding Efforts:

TOMS' commitment to purpose-driven marketing begins with their internal branding efforts. The company has a strong mission statement, which reads: "With every product you purchase, TOMS will help a person in need. One for One®." This mission statement is not just a marketing gimmick - it is the driving force behind everything the company does.

In addition to their mission statement, TOMS has implemented a number of internal branding initiatives that reinforce their commitment to purpose-driven marketing. For example, the company offers employees paid time off to volunteer for causes that align with TOMS' values. This initiative not only helps to create a culture of purpose within the company but also demonstrates to consumers that TOMS is truly committed to their values.

External Branding Efforts:

Of course, TOMS' purpose-driven marketing efforts are not limited to their internal branding initiatives. The company has also been very successful in using external branding to promote their values and make a positive impact on the world. One of the most notable examples of this is their "One for One" campaign, which promises that for every pair of shoes purchased, TOMS will donate a pair of shoes to a child in need.

In addition to their "One for One" campaign, TOMS also uses their products to promote their values. For example, the company has expanded their product line to include eyewear and coffee, with each purchase also resulting in a donation to someone in need. These efforts not only help to make a positive impact on the world, but they also demonstrate to consumers that TOMS is truly committed to making a difference.

TOMS is a great example of a brand that has successfully implemented purpose-driven marketing. Their internal branding efforts help to create a culture of purpose within the company, while their external branding efforts demonstrate to consumers that TOMS is truly committed to their values. By using their products and marketing campaigns to make a positive impact on the world, TOMS has not only created a successful business but has also made a positive contribution to society. If you're looking for a brand that aligns with your values and makes a difference in the world, TOMS is a great choice.

1. Dove

Dove is a personal care brand that has adopted a purpose-driven branding strategy focused on promoting body positivity and self-esteem. The company's "Real Beauty" campaign

Dove is a prime example of a brand that has embraced purpose-driven marketing, with a strong focus on their internal and external branding efforts. Let’s take a closer look at Dove's internal and external branding efforts and how they have successfully implemented purpose-driven marketing.

Internal Branding Efforts:

Dove's commitment to purpose-driven marketing begins with their internal branding efforts. The company has a strong mission statement, which reads: "Our vision is of a world where beauty is a source of confidence, not anxiety." This mission statement is not just a statement but it is a core belief of the company that is reflected in every aspect of their business.

In addition to their mission statement, Dove has implemented several internal branding initiatives that reinforce their commitment to purpose-driven marketing. For example, the company has a Code of Conduct that outlines their commitment to ethical and responsible business practices. This initiative not only helps to create a culture of purpose within the company but also demonstrates to consumers that Dove is genuinely committed to their values.

External Branding Efforts:

Dove's purpose-driven marketing efforts are not limited to their internal branding initiatives. The company has also been very successful in using external branding to promote their values and make a positive impact on society. One of the most notable examples of this is their "Real Beauty" campaign, which celebrates women of all shapes, sizes, and ages, promoting self-confidence and body positivity.

In addition to their "Real Beauty" campaign, Dove has also launched several initiatives to promote sustainability and social responsibility. For example, the company has a sustainability commitment to reduce their environmental impact and has also launched several initiatives to support women's empowerment, including the Dove Self-Esteem Project.

Dove is a prime example of a brand that has successfully implemented purpose-driven marketing. Their internal branding efforts help to create a culture of purpose within the company, while their external branding efforts demonstrate to consumers that Dove is genuinely committed to their values. By using their marketing campaigns and initiatives to promote self-confidence, body positivity, sustainability, and social responsibility, Dove has not only built a successful business but has also made a positive contribution to society.

In conclusion, we have seen a major shift in the manner in which a company operates, often putting its brand image and communications at the forefront of its customer acquisition strategy. If taking a page out of the books of Patagonia, TOMS or Dove is of interest to you as a brand manager or entrepreneur then get in touch with us at Legs Brands™. We build or reposition brands to make purpose-driven branding at the center of their operations. We have seen first-hand the net benefit that it has on aspects such as profitability, brand equity & reputation. Get in touch with us to learn more.