Corporates have realised the need of conservation of resources in order to serve the consumers in decades to come.
Across the globe, buyer behaviour is undergoing rapid changes, compelling brands across verticals to adjust and adapt to an interactive and technologically-advanced world. According to reports on buying behaviour of Indian consumers by KPMG, the customer today is more educated and well-informed. The way people shop, a larger chunk of it being the youth, has a direct effect on the various aspects of shopping and selection of brands.
Another notable trend that has been observed is that consumers across the world are willing to pay more for products and services from companies that have implemented programs to either give back to the society, stand for a cause or produce socially & environmentally responsive products/services. The Nielsen Global Survey on CSR validates that there is a rise of “socially conscious” consumers. This present state of consumerism shows that people seek brands who have a larger goal of participating in actions, which will positively revolutionise the world. The CSR or cause-marketing activities undertaken by corporates become their defining aspect, thereby influencing consumers to opt for a particular brand versus any other. A large number of companies, especially players in FMCG and consumer durables, are today seamlessly blending their business objectives with socially responsible programmes in order to meet an aim which goes beyond mere profits and growth objectives.
Newer ways to approach CSR: While the Indian Government made it mandatory for larger corporates to spend 2% of their earnings for CSR, traditional way of approaching CSR in today’s age and time may not be favourable, for both companies and society. Firms need to ingrain social responsibility in their business operations. The need for brands with a purpose has been seen more than ever before. However, it would work fabulously when a brand ties back the social cause with its core vision and mission of the entity. While companies are greatly investing time, talent and efforts in social and environmental issues, it would be best if they would take up causes that eventually conform to their fundamental philosophy and core company value.
Understand your essence & core values: As a starting point, articulating your brand’s positioning, values and mission before choosing which path to walk on is of utmost priority. For building brands, it is necessary to understand the credibility or trust factor in the minds of the consumer. When a company can directly work towards formulating a solution, it helps build a reputation and CSR programme in line with the branding activities. This can play a key role in impacting peoples’ perceptions of a company, product or service. Importantly, if the initiative undertaken is not etched in the company’s vision and on-going business practices, then the whole purpose stands defeated.
Engage consumers in the cause: Any CSR activity which is confined within the organisation, becomes restrictive. It is important to involve your most important stakeholder – in most cases which happens to be consumers. When social programmes involve others in it, one is able to build passion and likeability towards your brand. For example, beverage giant Coca-Cola’s “Open Happiness” invited people around the world to refresh themselves with a coke and enjoy simple moments of joy. This initiative helped in enhancing the brand image of the company. The success of such purpose-driven strategies is that it should transcend all levels of an organisation and touch consumers who are striving for a better tomorrow. The key in doing all of this is sheer sincerity to the cause and people involved in this charitable step.
For a sustainable tomorrow: Gone are the days when businesses only looked at profits to define their success. In the eco-system that we presently live in, there is a greater need of judicious exploitation of natural resources since they are finite and depleting at a much faster pace. Corporates have realised the need of conservation of resources in order to serve the consumers in decades to come. Hence, newer models have been created with sustainability as their core. More and more consumers are coming together to address problems that the world is currently facing.
In years to come, companies who have adopted the right methodology will continue to stand out in the crowd – those who offer innovative products, coupled with engaging consumers in the conversation and addressing social causes, which will connect back to their primary vision.
This article was taken from here.