2. Fifth Global Consumer Study 2012
What consumers have to say from…
StrategyOne surveyed 8,000 consumers across 16 countries, aged 18+
UK
500
FRANCE
500
CANADA
500
BRAZIL
500
NETHERLANDS
500
BELGIUM
500
SINGAPORE
500
GERMANY
500
ITALY
500
INDIA
500
CHINA
500
JAPAN
500
UAE
500
US
500
INDONESIA
500
MALAYSIA
500
3. The World We are Operating In
3
Declining Trust in Business
Businesses Not Meeting
Expectations on Social Causes
5. 44%
77%
73%
66%
58% 57% 57%
47%
41% 39% 37% 36%
29% 26%
21% 20% 20%
‘People like me’ now have more power and influence to make a difference
5
Me: Empowered in SEA
6. Business not meeting public’s expectations in Malaysia
6
Business
Importance
Company
Performance
Q52-69. How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means that action is “not at all important to building your trust” and nine means it is
“extremely important to building your trust” in a company. (Top 2 Box, Very/ Extremely Important) General Population in Malaysia (excludes ‘Don’t Know’ responses);Q103-118. Please rate [INSERT COMPANY] on how well
you think they are performing on each of the following attributes. Use a nine-point scale where one means they are performing “extremely poorly” and nine means they are performing “extremely well”. (Top 2 Box,
Performing Very/ Extremely Well) General Population in Malaysia
7. Brand’s Performance Gap in Addressing Societal Issues
7
9in 10
Malaysians believe it is
important for brands to
address societal issues
Only 4 in 10 think that
businesses are performing
well in this area
EVOLVING CONSUMERS
CONCERNED
VOCAL
EMPOWERED
8. How the Global Recession Affected Malaysians
8
“Has the global economic downturn affected you in any of the following ways?
2%
13%
5%
5%
8%
11%
12%
12%
18%
19%
26%
28%
28%
27%
33%
38%
51%
85%
1%
3%
5%
7%
11%
14%
25%
24%
34%
18%
30%
23%
22%
46%
46%
46%
62%
96%
Don't Know
None of the above
Other
Moved in with friends or family
Moved into a smaller home
Lost my job or got laid-off
Had less time to volunteer for a societal issue
Was unable to pay medical expenses or afford healthcare
Was unable to pay some or all of my bills/expenses
My salary decreased
Reduced consumption of water
Stopped saving money
Drove less frequently
Was unable to donate as much money to societal issues
Reduced spending on food
Reduced use of electricity in my home
Reduced leisure shopping
Affected by economic downturn**
Malaysia Global Total
** ‘Affected by economic downturn' includes all responses except 'none of the above' and 'don’t know'
9. How Involved & Responsible Are Malaysians?
9
“Are you personally involved in supporting any good cause?”
6%
34%
60%
2%
5%
93%
Don't Know
No
Yes
Malaysia Global Total
“Who from the list below do you believe should be most responsible
for addressing societal issues?”
4%
2%
4%
5%
11%
19%
54%
1%
1%
6%
2%
13%
16%
62%
Don't Know
None of the above
Religious Institutions
Business in general
Non-Governmental Organisations
People like me
Government
10. What Malaysians Care About
10
“How much do you personally care about the following good causes?”
67%
74%
80%
83%
83%
83%
84%
84%
82%
78%
86%
86%
89%
89%
56%
60%
68%
70%
71%
75%
75%
76%
77%
78%
80%
82%
85%
87%
Supporting the creative arts (music, art, literature, etc)
Supporting animal rights
Fighting the spread of global disease and pandemics
Alleviating hunger and homelessness
Aiding in disaster relief
Supporting human and civil rights
Reducing poverty
Stopping relationship violence and abuse
Encouraging tolerance for people who are different
Helping raise people's self-esteem
Ensuring access to safe drinking water
Equal opportunity to education
Protecting the environment
Improving the quality of healthcare
Malaysia Global Total
#1
#2
#3
12. The Power of Purpose
From product innovation and R&D, to
supply chain optimisation and 360
marketing, our study reveals it is the
power of Purpose that is helping to drive
consumer preference in a world where
trust in corporations is low and
differentiation between brands is
negligible
13. Profit + Purpose: The New Normal
13
57%
68%
70%
76%
20%
30%
40%
50%
60%
70%
80%
90%
2008 2009 2010 2012
+33%
It is OK for brands to support good causes and make money at the same time
79%
Malaysia
14. 42% 43%
41%
53%
20%
30%
40%
50%
60%
2008 2009 2010 2012
14
+ 26%
Growth from 2010
• Japan (100%)
• China (79%)
• Netherlands (43%)
• Germany (36%)
• India (43%)
Social Purpose as Purchase Trigger
When quality and price are the same, Social Purpose most important factor
2012: Malaysia (52%)
52%
15. If Quality and Price were the Same…
15
52%
36%
12%
Malaysia
Social
Purpose
Design or
Innovation
Loyalty to the
Brand
55%
29%
17%
Global
Social
Purpose
Design or
Innovation
Loyalty to the
Brand
Social purpose would rank highest as a purchasing factor.
16. 16
47% globally and 54% in Malaysia
purchase cause-supporting brands at
least monthly
Malaysia
EVERY 6 TO 12 MONTHS
29%
84%
AT LEAST
YEARLY
Global
EVERY 6 TO 12 MONTHS
68%
AT LEAST
YEARLY
21%
AT LEAST
MONTHLY
54%
AT LEAST
MONTHLY
47%
Purchase Frequency
20. How Important Is It to be Societally-Friendly?
20
If cost were not a factor:
63%
79%
81%
81%
67%
84%
81%
86%
Want a job that allows them to give back to
society
Would rather drive a hybrid car than a luxury
car
Would rather have a brand that supports the
livelihood of local producers than a designer
brand
Would prefer to live in an environmentally-
friendly house than merely a large house
Malaysia Global Total
21. Only 42% of Malaysians see Businesses Addressing
Societal Issues Well
21
Business in General’s Performance in Addressing Societal Issues
5%
6%
22%
38%
21%
7%
28%
28%
5%
1%
10%
41%
31%
12%
12%
42%
Don't know / Refused
Very poor
Poor
Fair
Good
Excellent
Poor/Very Poor
Excellent/Good
Malaysia Global Total
22. 82% of Malaysians Want More Than Just A Product
22
“Below are some things that people have said about supporting good causes. How much do you agree or disagree with each of the
following statements?”
69%
71%
72%
73%
73%
75%
64%
69%
71%
72%
73%
73%
75%
82%
I want brands to make it easier for me to make a positive difference
in the world
I would help a brand to promote their products or services if there
is a good cause behind them
I am more likely to recommend a brand that supports a good cause
than one that doesn't
I would switch brands if a difference brand of similar quality
supported a good cause
I have more trust in a brand that is ethically and socially responsible
It is OK for brands to support good causes and make money at the
same time
I'm looking for brands to do more for me today than just provide
me with a product
Malaysia Global Total
23. Trust & Society
23
51% say they trust a
company that actively
supports a societal issue,
while only 23% trust a company
that does NOT actively support a
societal issue.
*Photos Courtesy of Sukanto Debnath and hobvias sudoneighm.
24. 43%
80%
71%
55% 55% 54%
44% 42% 39% 38% 35% 34%
30% 30% 29% 29% 28%
24
Consumers in SEA willing to pay a premium for Purpose
Paying for Purpose
25. Trust and Distrust in Action
25
45%
72%
75%
76%
65%
82%
83%
87%
Invest in it
Share positive opinions / experiences about the company
Recommend its products / services
Buy its products / services
Malaysia Global Total
How likely would you be to do the following in relation to a company that actively supports a good cause?
Trusted Companies
27. 80%
92% 90% 88% 87% 87% 86% 84% 84%
80%
76%
73% 73% 73% 72% 70% 68%
27
It is critical for companies to make consumers
aware of their efforts
Malaysia: 87% say it is important for companies to spread awareness of their efforts to address societal issues. Comparatively, 80%
globally share this view.
28. Digital & Social Media Central to Communications
28
73%
18%
55%
88%
15%
73%
At least yearly
Every 6 - 12 months
At least monthly
Malaysia Global Total
On average, how often do you use the Internet /Mobile Phone to take part in promoting or addressing a societal issue?
45%
15%
30%
76%
22%
54%
At least yearly
Every 6 - 12 months
At least monthly
Internet Mobile Phone
29.
30. The New Imperative
Rather than merely exercising your
“license to operate,” leading brands
and corporations of the future must
move beyond operational imperatives
and social add-on’s to establish your
“license to lead.”
31. 5 Years of Learning Informs Us
31
“Purpose” key driver in reengineering brand marketing
“Purpose” definitive purchase trigger
Corporations earn License to Lead via “Purpose”
Malaysia bullish on “Purpose”
Operational excellence + societal performance rewarded
1
2
3
4
5
32. Not IF, but HOW…
Customise for local execution
Work with NGOs, colleagues, competitors
Build performance measures up front
Story, story, story
Evolve programs to stay relevant
Employees, partners, consumers
Start with depth, not scale
Powerful programs are leader-led
LEAD
CONSTRUCT
CUSTOMISE
COLLABORATE
MEASURE
NARRATE
EVOLVE
ENGAGE
32
For reference, we defined societal issues and good causes in the survey as the following:
…different societal issues, which include social and environmental issues that impact individuals, local communities, the nation and/or the world, as well as different good causes, which include initiatives that seek to positively benefit others and improve lives.
The goodpurpose® study is Edelman’s annual global intellectual property research study that over the course of five years explores consumer attitudes around social purpose, including their commitment to specific societal issues and their expectations of brands and corporations.
The survey was conducted in 16 countries with 8,000 adults (ages 18+), and is the only global, longitudinal study of its kind.
Hungry: Ready for jobs but can’t get any
Concerned for others
Vocal: Arab Spring – social media empowered citizens
Q30. How much do you agree or disagree with the following statement? - Compared to five years ago, ‘people like me’ now have more power and influence to make a difference. 16-country global total and across 16 countries (Top 2 Box, Agree)
Inclination towards Purpose has grown considerably across many facets of traditional brand marketing and communication.
There has also been dramatic acceptance of companies and brands making doing well while doing good.
Q40-46. [TRACKING] Below are some things that people have said about supporting good causes. How much do you agree or disagree with each of the following statements? “IT IS OK FOR BRANDS TO SUPPORT GOOD CAUSES AND MAKE MONEY AT THE SAME TIME” (Top 2 Box, Agree) 10-country global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore and UAE)
When quality and price are equal, the most important factor influencing brand choice is Purpose.
Across the globe, the prominence of Purpose as a purchase trigger has risen 26% since 2008.
Purpose is outpacing design/innovation & brand loyalty…. infusing a brand with an authentic and aligned Purpose provides distinct competitive advantage.
Q48. [TRACKING] Now, if you had to choose between two brands that were the same in quality and price, please rank the following remaining factors from 1 to 3 in the order that would affect your decision when selecting a brand where 1 is the most important factor and 3 is the least important.
10-country global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore and UAE) (% WHO RANKED SOCIAL PURPOSE FIRST)
Note: In the question, “social purpose” is defined as: Benefits others through charity or selfless acts
Consumers in Purpose Bull Markets - have much higher expectations of and engagement with brands and corporations on societal issues. These consumers’ passion and action on behalf of Purpose stands in contrast to consumers in the more mature Purpose “Bear” Markets, like the US and Western Europe
Q40-46. [TRACKING] Below are some things that people have said about supporting good causes. How much do you agree or disagree with each of the following statements? (Top 2 Box, Agree)
Purpose Bull Markets include: China, India, Indonesia, Malaysia, UAE, Brazil. Purpose Bear Markets include: U.S., UK, France, Germany, Italy, Netherlands, Belgium, Japan
As social Purpose’s role in purchasing decisions has increased, purchase frequency has also intensified: 47% of global consumers buy brands that support a good cause at least monthly, a 47% increase from 2010.
Q47. [TRACKING] On average, how often do you buy a brand that supports a good cause?
(At least monthly NET, Every 6-12 months NET) 10-country global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore and UAE)
Singapore and Global data are not very different
In Singapore, if cost were not a factor: 84% would prefer to live in an environmentally-friendly house than merely a large house (16%).
Singapore and Global data are not very different
In Singapore, if cost were not a factor: 81% would rather have a brand that supports the livelihood of local producers than a designer brand (19%).
Singapore and Global data are not very different
In Singapore, if cost were not a factor: 79% would rather drive a hybrid car than a luxury car (21%).
Over one million since 2006 ($40 – 60 USD per pair)
For every pair of TOMS Shoes purchased, a pair of new shoes is given to a child in need. Over 1,000,000 pairs of shoes have been given to children under the One for One program since TOMS launched in 2006.[18] The canvas shoes have been given to children in more than 20 countries worldwide, including the United States (Louisiana, Kentucky, Mississippi and Florida), Argentina, Ethiopia, Rwanda, Guatemala, Haiti, and South Africa. TOMS are sold at more than 500 stores nationwide and internationally, including Neiman Marcus, Nordstrom, and Whole Foods Market, which features styles made from recycled materials.[19]
Make consumers aware: 80% of global consumers believe it is important for companies to make you aware of their efforts to address societal issues.
Q98. How important is it for companies to make you aware of their efforts to address societal issues? (Top 2 Box, Important NET) 16-country global total and across 16 countries
Note: Insights based on results and experience in practice.
