By Bob Park

In today’s highly competitive business landscape, brands and corporations are increasingly recognizing the significance of purpose-driven marketing.

Research by Accenture shows that 63% of consumers prefer to purchase products and services from brands that stand for a purpose that reflects their own values and beliefs, 77% of consumers are more likely to recommend a brand to others if it takes a stand on social issues.

Nike’s bold stance with Colin Kaepernick has been an illustrative example of why corporations should hold true to their values and actively engage in purpose-driven marketing efforts. But we recently got a cautionary tale on the other side of the ledger when Bud Light exhibited the perils of misfiring on good intentions.

Purpose-driven marketing has emerged as a transformative approach that empowers brands and corporations to connect with consumers on a meaningful level. Businesses are increasingly recognizing that societal impact and brand purpose are integral to success and the bottom line.

Bud Light: How things can go terribly wrong

The Bud Light case serves as a cautionary tale of the potential pitfalls brands face when engaging in purpose-driven marketing. By partnering with influencer Dylan Mulvaney and commemorating her journey as an openly transgender woman, Bud Light aimed to expand its market presence and demonstrate inclusivity.

However, the brand’s expectations were met with a different reality. The campaign triggered a wave of public backlash, drawing criticism from conservative celebrities and media personalities, as well as their fans, who were not upset with the content of the campaign, but with the idea of the brand partnering with a transgender influencer in the first place. The swift negative response and calls for a boycott led to the suspension of marketing executives involved in the campaign. Within days, there was a firestorm of heated opinions, insults and even abuse on social media platforms.

As a result, Anheuser-Busch witnessed a staggering loss of over $6 billion USD in market capitalization and a decline of more than 25% in Bud Light sales.

But when the brand eventually did speak up, it caused another issue: the statement spoke in vague terms about “bringing people together” without saying anything specific about the situation or what it had done wrong. It neither offered support to Mulvaney or apologized for the campaign, leaving people on both sides unhappy with the brand.

This raises the question: Did Bud Light’s partnership with Mulvaney push boundaries too far amidst a divisive social climate surrounding transgender issues? Or was their mistake not standing their ground?

When brands wade into controversial topics, they inevitably encounter opposition, which can prompt boycotts. The Bud Light situation was an outlier in terms of how effective those boycotts can be: after the firestorm, Brayden King of the Kellogg School of Management analyzed 133 boycotts from 1990 to 2005 that were called for political reasons and found that none of them could be credited for more than a 1% sales decline.

The greater risk is the harm to a brand’s reputation and public image. The situation highlights the importance of brands carefully evaluating the potential impact on their core customer base and carefully weighing the benefits against the risks of alienation.

The Bud Light case serves as a stark reminder of the careful navigation required in purpose-driven marketing initiatives, urging brands to approach such campaigns with strategic planning, sensitivity and an understanding of the social landscape.

That’s the math. Given the cautionary tale of a powerhouse brand like Bud Light, why on earth would a brand even consider taking that risk?

GE Appliances: How an unlikely brand came off the bench

In today’s world, brands must do more than just proclaim their values – they need to take meaningful action that aligns with those values. GE Appliances Canada, a long-standing sponsor of soccer in the country, has embraced this principle wholeheartedly. With its mantra of “Good Things For Life,” GE Appliances strives to make Canadians’ lives easier and believes that also means “Good Things For Everyone.”

It may appear unlikely for an appliance manufacturer, especially one with a history spanning over a century, to have a role in purpose-driven marketing. However, GE Appliances defied expectations and demonstrated its commitment to purpose-driven initiatives even before the Bud Light controversy involving Dylan Mulvaney.

One significant move was the decision to enlist Quinn as a brand ambassador. Quinn is a player on the Canadian Women’s Soccer Team and a prominent non-binary figure in Canada. Quinn not only was the first openly transgender athlete to win an Olympic gold medal, they were also the first to be featured in a national campaign from a global brand. The “Keep Up Can” campaign, headlined by Quinn on Breakfast Television, was a resounding success as it drove interest in GE Appliances’ website over 300% in the following four months, with no sign of slowing.

Unfortunately, as the association with the Beautiful Game paid dividends, not all was positive. As the women’s teams prepared for their respective World Cup tournaments, they found themselves embroiled in labor issues with Canada Soccer. Both the Canadian men and women engaged in strike actions, refusing to play in planned friendly matches. The women’s team raised concerns about pay disparity compared to their male counterparts and a lack of funding for training and resources ahead of the World Cup. These issues drew public attention and raised questions about GE Appliances’ partnership with Canada Soccer.

It wasn’t “Good Things For Everyone.”

This presented GE Appliances with an opportunity to stand by its values. Instead of withdrawing from the sponsorship or remaining silent, we took a proactive approach. We issued an open letter to Canada Soccer, demanding change and stating our clear position:

“The time for us all to show up, for our sport and its players, is now.”

This strongly worded letter generated positive conversations and overwhelming support, garnering an estimated 30 million media impressions. As a result, within days, the women’s national team was offered the second highest pay scale among female soccer players in the world.

But it wasn’t just words: we also offered to increase our existing sponsorship funding by $100,000 if it went to addressing the team’s concerns. By addressing the pressing concerns and advocating for change, it not only stood up for the rights and well-being of athletes but also reinforced its values and built a stronger connection with its audience.

By staying true to its values and actively promoting positive change, GE Appliances has not only strengthened its brand reputation but also made a significant impact on the communities it serves.

Be Real

In the realm of purpose-driven marketing, the presence of risk is inevitable, but these perils can be mitigated with the right approach. In today’s digital age, consumers are more informed than ever, with access to a wealth of statistics, trends, news and insights about products and services. In light of this, it becomes crucial for brands embarking on purpose-driven campaigns to act with authenticity.

The first step is for brands to understand their core values and identify their target audience. This understanding serves as the foundation for all subsequent actions. It is essential that brands stay true to what they are about, ensuring that their initiatives align with their established values. Bud Light, unfortunately, made the mistake of misjudging their consumers’ sentiments and the potential intensity of the reactions when it introduced a transgender spokesperson – and not just when it came to those who aren’t accepting of 2SLGBTQ+ people. Its response to the fallout did not effectively communicate the brand’s core values. Consequently, it not only faced backlash, but also lost the interest of the 2SLGBTQ+ community it was seeking to reach.

In the cases of Nike and GE Appliances, the brand values were extremely transparent and unwavering. They were authentic – a culmination of actions and messaging that the brands built over time.

By prioritizing authenticity and aligning their purpose-driven initiatives with their core values, brands can reduce the risks associated with purpose-driven marketing. It is crucial to conduct thorough research and engage in meaningful conversations with the target audience to gain insights and understand their perspectives.

While purpose-driven marketing carries inherent risks, brands that approach it authentically and with a deep understanding of their values and target audience have the opportunity to forge strong connections, build brand loyalty and make a positive impact on society.

Bob Park is chief brand officer at GE Appliances Canada.