Bremen > Price and quality are no longer the only drivers of brand preference for Ger-man consumers. Social and environmental engagement of companies plays an in-creasingly important role in determining purchase intent1) . These are two of the key findings of the first German consumer study on the influence of responsible business practice on brand image and purchase behaviour. (“GoodBrand 2006: Creating brand value with social and environmental engagement”)
“Our report reveals a new values trend that we have so far only observed in Anglo markets: in an environment of increasing globalisation and leaner government, con-sumers expect business to take a more proactive and responsible role in shaping soci-ety,“ says Martin Blumberg of the social business consultancy GoodBrand&Co, that conducted the survey. Every second consumer is interested in the social and environ-mental conditions products are manufactured under2). More than half of the respon-dents agree that their purchase behaviour is influenced by negative news about com-panies3) and two thirds appreciate it when businesses strive towards improving work-ing conditions4).
Cause Related Marketing Programmes are popular with consumers
Consumers have a very positive view of Cause Related Marketing Programmes which combine product purchase with a donation. More than two thirds of the respondents appreciate this form of pro-social business behaviour. “Our study shows that Cause Related Marketing Programmes increase the appreciation of brands and strengthen brand trust. Companies that use this instrument strategically and execute pro-grammes well positively impact their brand value,” states Christian Conrad, partner of GoodBrand&Co and former Marketing Director at Kellogg´s. The research analyses and assesses the Cause Related Marketing programmes of brands such as Volvic, Krom-bacher, Blend-a-med, Charmin, Kellogg´s, Bitburger, Ritter Sport, Lidl and Whiskas. It identifies key success factors of effective programmes, such as credibility, brand fit and overall attractiveness. For instance, consumers prefer Cause Related Marketing campaigns where product and cause go together intuitively.
“With our report we provide companies with a best practice map for successful Cause Related Marketing – creating value for their brands as well as for society,“ adds Blum-berg.
The full survey report will be available from GoodBrand&Co Germany in mid October 2006.
About the survey
In-depth telephone interviews where conducted in 4 German cities (Hamburg, Bre-men, Munich and Leipzig) on a sample of 160 household purchasers during August 2006. The sample was selected according to socio-demographic critera (income, age, sex, number of children and eduction) and is representative on the key dimensions.
The questionnaire consisted of both closed and open questions. Interviews lasted be-tween 20 and 30 minutes. The research was conducted and evaluated by Good-Brand&Co Germany.
About GoodBrand&Co
The social business consultancy GoodBrand&Co was founded in London in 1997 and primarily works with multinational companies. Since 2001 GoodBrand&Co has been active in the German market, supporting companies in finding their social purpose and developing strategies, concepts and programmes for social and environmental en-gagement with the aim of creating strategic competitive advantage. Focus areas are Cause Related Marketing, Stakeholder Dialogue, Social Reporting and Social and Envi-ronmental Innovation (“Sociovation”), as well as embedding CSR Strategies into or-ganisations. This includes corporate culture programmes as well as sustainable supply chain management. In 2004 GoodBrand&Co launched the GoodBrandSocial Equity Index® , a tool for measuring the impact of social and environmental activity on brand value. Clients include leading brands like Danone and Nestlé, a well-known project examplebeing the „1litre for 10 litre“ programme on the Volvic brand.
