is philanthropy ready for the new consumer?2. crunch “eighty percent of nonprofits surveyed are...
TRANSCRIPT
From Legacy to Leadership: Is Philanthropy Ready for the New Consumer?
About BBMGA new kind of marketing firm, dedicated to the intersection of branding, social purpose and innovation. Founded in 2003, studios in New York and San Francisco, 35+ design awards. Learn more at bbmg.com.
What we’ll cover• Branding 101• The Moment: Five Trends Shaping the Marketplace• The Conscious Consumer• Triple Value Proposition• Case Studies• Questions
THE FIVE LAWS OF BRANDING
What’s a brand?
• What you stand for• Your unique difference• The promise behind your mission
FIVE LAWS OF BRANDING
Word
Brand
Car + Safety
1. THE LAW OF THE WORD
International + Children
1. THE LAW OF THE WORD
1. THE LAW OF THE WORD
Cancer Research + CURE
FIVE LAWS OF BRANDING
Word
Focus
Brand
IMPORTANT TO TARGET
ORGANIZATION STRENGTH
OTHER ORGANIZATIONS
NOT ADDRESSING NEED
2. THE LAW OF FOCUS
Identifying your unique value proposition
SWEETSPOT
A brand becomes stronger when you narrow its focus
Children’s Supermart?
2. THE LAW OF FOCUS
FIVE LAWS OF BRANDING
Word
Focus
Leadership
Brand
3. THE LAW OF LEADERSHIP Leadership is the single most important motivating factor in consumer behavior…
The nation's largest and most effective animal protection organization
When you don’t have a leading brand, create a new category in which you can claim leadership.
3. THE LAW OF LEADERSHIP
The world’s largest no-kill rescue and adoption organization
The first shelter in the country to be LEED certified
Chicago’s largest humane society
FIVE LAWS OF BRANDING
Word
Focus
Leadership
Authenticity
Brand
4-Day Work Week
4. THE LAW OF AUTHENTICITY
FIVE LAWS OF BRANDING
Word
Focus
Leadership
Authenticity
Consistency
Brand
• A brand must stand for something clear and consistent over time
• When you change your brand to chase a new market, bad things can happen…
5. THE LAW OF CONSISTENCY
Cake Decorating Kit
Energy Beer
Flame: meat-scented perfume
5. THE LAW OF CONSISTENCY
Coke Pepsi
5. THE LAW OF CONSISTENCY
5 PRINCIPLES OF BRANDING
Strategic
StakeholderFocused
Inside-Out
All Touch Points
Empowering
Brand
THE CONTEXTUAL MOMENT
TRUST IS DOWN
TRANSPARENCY IS UP
INNOVATION IS THE NEW IMPERATIVE
FIVE TRENDS SHAPING THE MARKETPLACE
1.
1. Clutter In 1940, there were 12,000 registered nonprofits in the US. Today, there are more than 1.5 million.
*source: Giving USA, Urban Institute 2008
2. Crunch “Eighty percent of nonprofits surveyed are under are under fiscal stress, with four in 10 of those reporting their stress as severe or very severe.” -Johns Hopkins University’s Center for Civil Society Studies survey
3. Co-Ownership “There is more computing power in our Blackberries than there was in the control room in Houston that put a man on the moon.” Jonathan Greenblatt, Mashable Summer of Social Good Conference
CO-OWNERSHIP
CO-OWNERSHIP
CO-OWNERSHIP
CO-OWNERSHIP
CO-OWNERSHIP
CO-OWNERSHIP
CO-OWNERSHIP
4. Convergence “The intentions of entrepreneurs and investors have evolved over time to include a desire to create social value as well as shareholder value... but corporate law hasn’t evolved to serve these needs.” -Jay Coen Gilbert, co-founder B-Lab
NONPROFIT FOR PROFITFOR
BENEFIT
CONVERGENCE
1982
$79 B
INCREASE IN COMMERCIAL REVENUE for NONPROFITS*
219% over 20 years
*source: Social Enterprise Alliance, 2008
The Rise of Social Enterprise
2002
$252 B
CONVERGENCE
Nonprofits changing from critics to consultants
CONVERGENCE
New business models elevate social enterprise and “fourth sector” hybrids
CONVERGENCE
5. ConsciousnessConsumers are redefining value in the new economy. It’s about value and values.
MEETING THE CONSCIOUS CONSUMER
Five Values that DriveConscious Consumers
HEALTH AND SAFETY
HONESTY
CONVENIENCE
RELATIONSHIPS
DOING GOOD
CONSUMER SEGMENTATION OVERVIEW
Enlighteneds Aspirationals
Practicals
Indifferents
10%
20%
30%
40%
TOP ISSUES (ONE OF THE MOST IMPORTANT)
56%52%51%46%41%40%34%32%29%29%26%23%
HEALTH CARE
EDUCATION
SAFE DRINKING WATER
CURES FOR DISEASES
RENEWABLE AND ALTERNATIVE
ENERGY
FAIR WAGES AND SAFE WORKING
CONDITIONS
POVERTY
CRUELTY TO ANIMALS
GLOBAL WARMING
WORLD HUNGER
WILDLIFE CONSERVATION
INTERNATIONAL HUMAN RIGHTS
Why Care?
3X Early Adopters3X Reward3X Punish3X Influence (+)3X Influence (–)4X Blog, post, reviewALL ADULTS
48%
ENLIGHTENEDS
Takeaway: The Passionate 10
Engage the “most passionate 10 percent” in the conversation, providing Enlightened Consumers with a platform to voice their concerns, their needs and
their new ideas.
10>90
Triple Value PropositionAn approach to branding that delivers on three dimensions of value: personal relevance, social purpose and meaningful participation
UNIQUE VALUE PROPOSITION
IMPORTANT TO TARGET
ORGANIZATION STRENGTH
OTHER ORGANIZATIONS
NOT ADDRESSING NEED
SWEETSPOT
TRIPLE VALUE PROPOSITION
PRACTICALBENEFIT
SOCIALBENEFIT
TRIBAL BENEFIT
SocialHow does the brand help me make a difference in the world?
PracticalHow does the brand improve my life?
TribalHow does the brand connect me to a community that shares my values, hopes and aspirations?
SWEETSPOT
Case Studies
HARVARD KENNEDY SCHOOLLooking back to the future
PracticalPrestige. Status. Resources. Connections.
SocialCall to action. Ask what you can do. Making a difference in the world through public service.
TribalAlumni network promises access to leading thinkers and influencers in social sector. Membership has its privileges.
ENGINEER YOUR LIFEBreaking with the Past
PracticalOpportunity for creativity. Lucrative, flexible career choice
SocialEmpowering girls to explore new educational and professional opportunities. “Dream jobs”; how engineers make a difference
Tribal8,800 fans across social media; repositions engineering as cause
KEY TIPS AND TAKEAWAYS
• Own a word
• Focus on your Triple Value Proposition
• Lead a category
• Walk your talk
• Consistency builds brands over time
LESSONS OF THE LAWS OF BRANDING
Word
Focus
Leadership
Authenticity
Consistency
Brand
Brand Message: Would each stakeholder in your organization describe your brand in the same way?
Brand Image: Is your brand image used consistently across all communications vehicles?
Brand Experience: Does your brand come to life in everything you do?
BRANDING CHECK LIST
ANSWERING YOUR TRIPLE VALUE PROPOSITION
1. Practical ValueHow is the brand personally relevant to me?How does it improve my life?
2. Social ValueHow does the brand help me make a difference in the world?How does it demonstrate social impact?
3. TribalHow does the brand connect me to a community that shares my values, hopes and aspirations?
PRACTICALVALUE
SOCIALVALUE
TRIBAL VALUE
SWEETSPOT
LEGACY TO LEADERSHIP
QUESTIONS?
Relationships are the only real currency in life. Please let me know if you would like more information. Thanks for your time.
Mirm Kriegel, 212.473.4902 ext [email protected]
CONNECT
From Legacy to Leadership: Is Philanthropy Ready for the New Consumer?
QUANTITATIVE 2,000 person national poll +/- 2.2% margin of errorOct. 26 - Nov. 6, 2008Global Strategy Group
QUALITATIVE 15 ethnographic interviews January 2009East and West CoastsBagatto, Inc.
METHODOLOGY
Who is the conscious consumer?
Lives in... 22% Major city 22% Northeast 44% Suburban 23% West 22% Small town 35% South 13% Rural 21% Midwest
Gender 41% male 59% female
EthnicityWhite/Caucasian 75%Black/African-American 8%Hispanic/Latino 10%Asian- American 4%Other 1%Prefer not to say 1%
Age 7% 18-24 15% 25-3419% 35-44 22% 45-54 17% 55-64 20% 65+
Earns <$30K 23% $30-$50K 28%$51-$75K 19%$76-100K 13%$100K 9%I prefer not to say 7%