The purpose is the foundation for anything you want to do, as a canvas for an artist. Any successful business rolls up high by finding the solutions for real-life needs or problems. The purpose is soil on which business can build its empire.
It explains why this organization exists in the first place. What do they want to do here? Down the line, how do they aim to contribute to the industry or the economy? What difference do they want to create through the business?
Answers to all these questions tell you the core values and management of the organization. The purpose is highly important for any organization to build its goal, culture, and way forwards. That’s why any company’s first management rule is noting the goal, vision, and mission.
3 Primary Reasons Why Consumers Choose a Brand
In a survey conducted by Deloitte where they researched the primary reasons for a consumer to pick any brand, they found three very interesting points. Quality and price is always the basic reason why a consumer chooses a particular brand; many of the same responders supported the following three parameters.
- How does the company treat the environment?
- How does the company treat its employees/people?
- How does a company care for the community in which they operate?
From the management perspective, it might not be easy to understand why product quality, innovation, and pricing strategies are not enough to get sustainability for a brand. But it makes sense when you try to understand it from the marketer’s perspective.
To sell any product and become a trustworthy brand, you need to connect with the particular market. To connect, you need to create a bond with them. The purpose of the company serves this purpose.
Why Do Employees Need To Know About The Company’s Purpose?
The science behind the success of purpose-driven companies is simple. The company must clearly establish its business purpose within its employees and the market. Many companies work with their own goal without letting their staff members know. They just pass the requirements, and they are done.
Mastering the management and leadership skills work simultaneously and give you a better outcome. When you excel on these two qualities, success is a must!
You are one step ahead if you know how to lead your team. All the employees and vendors must be working for the same goal on a large scale; it’s the key to growth. They should be aware of what they need to do. With your leadership skill, you can make your employees join together and work for the betterment.
That is why companies with a clear purpose witness higher market share gains and grow faster than their competitors while achieving a higher workforce and customer satisfaction.
Why Should Customers Know About Your Purpose?
The customers and the employees feel more connected when they know the company’s motive. They would love to be a smaller part of the larger cause. For example,Byju’s e-learning business came up in the market to revolutionize the education system, which was the need of the hour.
They promoted their product to solve students’ problems and fill the gaps between knowledge and the education system. The brand acceptance is high because its purpose is relatable. eLearning is possible through youtube, but customers never see YouTube as a company concerned with educational reforms.
Not many companies understand the importance of the purpose of the growth perspective. They only use it for branding and advertising. Many companies believe that selling quality products at low prices keeps business rolling. That’s where Business Management comes into the picture! If you know how to manage your company’s workflow with purpose, you will be able to gain attraction from society. And when you can gain the trust, you are the champion!
Branding and advertising give you good numbers, and those are crucial. Still, for long-term sustainability or authenticity, you need to have strong management skills to gain authenticity with your purpose.
Example Of Purpose Oriented Result On FMCG Brands
To keep your brand alive in the cut-through competition, you must have a strong foundation that people relate to. For example, many FMCG companies are racing to become the go-to names on Indian households’ grocery lists. Hindustan Unilever, Proctor, and Gambler were always dominating in this segment. But Patanjali shook the market with its solid branding to give organic and ayurvedic daily use products that offer your family a healthy lifestyle. Despite being a late entrant in the market, Patanjali is one of the market leaders, thanks to its purpose.
How Did Amazon Create Legacy?
Amazon is a renowned name in the ecommerce industry which is impacting the society with its initiatives. $25million was funded for the relief fund created by Amazon to deal with negative impacts of COVID-19. ‘Girls who code,” was a great concept by Amazon to encourage more women’s education.100% renewable energy program is their aim to achieve, which is a remarkable initiative to make our ecosystem better.
Giving$50 million to STEM Education with employing 6200 safety professionals worldwide depicts their positive view towards health and safety of people. Amazon serves education, skill development, health and safety, water and air purity, development in rural areas and many other aspects. With their Purpose, they have become a one-stop choice for all consumers!
How Grass-Root Level Purpose Helps A Brand
On a global level, P&G came up with the campaigns “The look” and “Wash away labels’ addressing issues like equality, diversity, and unconscious biases. In India, they support girl child education with the campaign “Shiksha.” Such a campaign connects deep routes in consumers’ minds. Everyone who makes buying decisions thinks about the larger cause they are investing in; besides, the goodwill of the company in their mind influences their buying decisions.
The core of any business is its purpose of existence. You can sell more when you know why to sell; you buy more when you know why you are buying — the simple cause-effect principle. So, purpose is required to start and get success in every business.