Prior to the invention of GPS, Naval navigation relied on the use of North Stars as a guide. By looking at North Stars, sailors could make course corrections despite challenging conditions caused by waves and winds.

Similarly, businesses require their own North Stars to guide their growth and direction. This North Star represents the purpose of the brand and business.

Unfortunately, there are several instances where companies failed to align their actions with their purpose, including the closure of Blockbuster (2010), the bankruptcy of Kodak (2012), the acquisition of Nokia by Microsoft (2013), and We Work's failed IPO (2019).

Establishing a purpose can be daunting, but it is crucial to have a clear direction to steer the brand towards. It is better to have a North Star and make adjustments as necessary than to head straight into the unknown sea of competition.

For instance, the Honest Company experienced a crisis, going from being a unicorn startup worth $1 billion in 2015 to a series of missteps and loss of unicorn status in 2017, before eventually bouncing back and achieving even greater success in 2018. This was possible because they remained committed to their purpose of providing safe, eco-friendly, and affordable household products.

Source: People

Practices

Creating a brand purpose that will last over time takes planning and thought. Here are the steps you need to take:

  • Define what your business is all about: What does your company believe in? What are the rules that you use to make decisions?
  • Know who your customers are: Who are your clients, and what do they care about? What do they need or want that your product or service can give them?
  • Identify your unique selling proposition (USP): What makes your business stand out from the rest? What is the one thing you do that no one else does?
  • Think about how you affect society: How does your business help the community or society as a whole? What is your idea for making the world a better place, and how does your business fit into that?
  • Create a purpose statement: Based on your brand's values, customer needs, unique selling proposition (USP), and impact, write a clear and compelling statement that explains what your brand is all about. Make sure it is clear, important, and easy to remember.
  • Incorporate the purpose into your culture: If you want your brand's purpose to last, it needs to be more than a sentence on your website or in your marketing materials. It has to be part of the way your business works. This means that employees need to be trained on the purpose, that it needs to be part of their performance reviews, and that it needs to be used to guide decisions at all levels.
  • Tell your stakeholders what the goal is: Make sure that your customers, employees, investors, and partners all understand what your goal is. Use it to set your brand apart, build loyalty, and get people to take action.
  • Always look at your purpose and make it better: As your business changes, your purpose may need to change, too. Check your purpose statement often to make sure it still fits with your values, customers, unique selling proposition (USP), and impact. Make changes as needed to make sure that your brand's purpose stays relevant and lasts.
Source: Monster Ztudio

Examples

  • Patagonia: Patagonia's brand purpose is to "build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis." This purpose is embedded in everything the company does, from its sustainable materials to its activism campaigns. Patagonia is widely known for its commitment to environmental stewardship and has become a leader in the sustainable fashion movement.
  • Coca-Cola: Coca-Cola's brand purpose is to "refresh the world and make a difference." This purpose is reflected in the company's focus on providing beverages that bring people together and create moments of happiness. Coca-Cola has become one of the world's most recognizable brands and has used its platform to support various social and environmental causes.
  • Apple: Apple's brand purpose is to "create products that enrich people's lives." This purpose is reflected in the company's focus on design, user experience, and innovation. Apple has become known for its high-quality, user-friendly products and has been at the forefront of many technological advancements.
  • Samsung: Samsung's brand purpose is to "inspire the world with innovative technologies, products, and design that enrich people's lives and contribute to social prosperity." This purpose is reflected in the company's focus on innovation, design, and social responsibility. Samsung has become a leading player in the consumer electronics industry and has used its platform to address social and environmental issues.
  • Bose: Bose's brand purpose is to "develop audio solutions that help people reach their fullest potential." This purpose is reflected in the company's focus on high-quality audio, design, and innovation. Bose has become a leading player in the audio industry and has used its platform to empower people to achieve their goals through immersive sound experiences.
Source: Brands Vietnam