Can the marketing innovation of purpose branding make brands meaningful and relevant?

Abstract

PurposePurpose branding is a concept that has gained momentum in recent years. It is a marketing innovation that has the potential to change why and how companies work. Still, academic research on purpose branding is scarce. This paper aims to increase awareness about purpose branding and showcase how it can be implemented successfully through account of Hindustan Unilever Limited (HUL).Design/methodology/approachThe study is based on qualitative research and case analysis of HUL by examining its published reports, its parent company’s trade publications, press articles and relevant studies in indexed journals.FindingsPurpose branding is a marketing innovation that delivers increased value to all stakeholders. The account of HUL reveals that purpose branding reaps economic rewards for the organization.Practical implicationsA study by Havas Media group involving 300,000 customers across 33 countries found that the customers would not care if 74% of brands in the world disappeared. In such a context, purpose branding provides a way to make the brand meaningful and play a worthy role in consumers’ lives. HUL’s brands that used this approach grew by 69% and accounted for 75% of its overall growth, showing how other organizations can imbibe it into their brands.Originality/valueDespite many trade publications on this trending topic, there is limited academic research on purpose branding. This paper focuses on understanding this concept and demonstrates its successful use by an organization.