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Bachelor Thesis Bachelor's Program in International Marketing, 180 credits Millennials demand for brand activism - A qualitative studie about corporate brands using brand activism as a communication strategy to reach millennials Business administration, 15 credits Halmstad 2021-05-21 Fanny Backman, Fredrika Lundgren HALMSTAD UNIVERSITY
Preface: First we would like to thank our supervisor Venilton Reinert for always taking his time to listen to our ideas and to guide us with his patience and knowledge. We would also like to announce a big thank you to the black lives matter movement which inspired us to choose brand activism as a subject for our thesis. Brand activism has grown to be a subject we are very engaged about. A final thank you to our fellow students for their good advice. The research was developed during the spring of 2021 which was the authors' last year on the International Marketing program at Halmstad University. During this time the Covid-19 pandemic was ongoing and therefore we as authors needed to put some extra faith in this exciting journey, which has resulted in a thesis that we proudly present. Halmstad 2021-05-21
Abstract Title: Brand activism as a communication strategy to reach millennials Date: 2021-05-21 Level: Bachelor Thesis in International Marketing Authors: Fanny Backman & Fredrika Lundgren Supervisor: Venilton Reinert Examiner: Svante Andersson The new phenomena of brand activism can be used as a communication strategy to reach consumers. The demand for brand activism has increased with the generation of millennials. This research uses a qualitative method to get a greater understanding of how companies use brand activism as a communication strategy to reach millennials. The authors have chosen to study corporate brands since they have a structure within the business where everything that is communicated from the brand will be a lifelong message. This study is based on a content analysis to get a greater understanding for how brand activism is used and how companies with the help from activism content reach millennials. The companies that have been studied are Nike, Ben & Jerry’s and The Body Shop, which all use brand activism and have millennials as a part of their target audience. Millennials are an important target audience since they stand for 30% of the population. Therefore it is important to grow and understand their new demands for more ethical and moral brands. This generation wants to contribute to the world and make a change. The results of this study shows that brand activism engages millennials and has a positive effect on their purchase intentions. Which is important for companies to take into consideration in their corporate branding. The results also show whether or not the companies are bold or not when they chose a subject to take a stand in. 1
Index 1. Introduction 4 1.1 Background 4 1.2 Problem 5 1.3 Purpose 8 1.4 Definitions 8 1.4.1 Delimitation 8 2. Frame of reference 8 2.1 The ethical consumers demand for cause related marketing 8 2.2 Brand activism 9 2.3 Corporate branding 10 2.4 Millennials 11 2.5 The corporate brand’s role in brand activism towards millennials 12 3.0 Method 16 3.1 Overview of the research approach 17 3.2 Research Method 17 3.2.1 Type of research 18 3.3 Population and sample 18 3.4 Data collection 20 3.4.1 Instrument to collect data 20 3.4.2 Multiple case study 20 3.4.3 Content analysis 21 3.5 Credibility 22 3.5.1 Reliability 22 4. Empirical data 23 4.1 Nike 23 4.2 Ben & Jerry’s 27 4.3 The Body Shop 32 5. Analysis 36 5.1 Corporate brand 36 5.2 Millennials 39 5.3 Brand activism 42 6. Conclusion 47 6.1 Proposal for continued research 48 6.2 The research contribution 48 References 49 Appendix 1 - Question guideline 59 Annex 1 - Observation Nike 59 2
1. Introduction 1.1 Background The awareness of political and moral consequences in the choice of consumption has increased. Consumers are more conscious in their consumption as they see themselves as responsible citizens. What started as an awareness of green consumption has turned into consumers using buying power to take a stand in moral and political questions. This means that the ethical consumer supports companies that share their values regarding human rights, environmental consciousness and animal protection (Solomon, 2016). The ethical consumer today is aware of the effect they can have on the marketplace by using their buying power to build the society they wish for. The most common way to use buying power is through boycotting or buycotting brands. Boycotting means taking an active stand to not have a relationship with a brand because of their ethical values, and buycotting means supporting a brand because they reflect your own values (Brinkmann, 2004). This trend towards conscious consumption is in particular observed among Millennials. This generation is the front line of media consumption and social media usage and that companies therefore cannot afford to ignore them (Fromm & Garton, 2013). As companies are responding to this increasing consumer awareness of political and moral consequences in consumption Brand activism has evolved as a part of brand and marketing strategies (Manfredi- Sánches, 2019). Companies are conducting Brand activism by supporting social, economic, cultural, environmental and social issues and integrating them with their brands’ core values. Brand activism is not only engaging the company's customers or target group, but also to create a buzz around the brand (Fromm & Garton, 2013). Brand activism helps companies to show their values which enhances customer loyalty and association with shared values. When brands connect with the target customer an emotional relationship that goes beyond product quality and price is created (Shetty, Venkataramaiah & Anand, 2019). Brand activism has been improved throughout the years and is evolving further in the corporate agenda (Fill & Turnbull, 2016). Brand activism can today be acknowledged as a strategic tool to support value creation. To manage a successful corporate brand, the culture, identity and image needs total commitment across the entire organization (Hatch, Schultz & Olins, 2008). By involving the stakeholders in every statement companies can incorporate the value and make better business-driven decisions. Therefore companies can establish Brand activism strategies to develop the corporate brand (Sprout Social, 2017). Using advertising messages and campaigns with a political view, corporate brands use Brand activism with an aim to make an impact on the conscious consumer. Brand activism is therefore a communication strategy that focuses on creating an authentic corporate brand that appeals to the generation of Millennials that wants to make a difference for society (Manfredi-Sánches, 2019). 4
1.2 Problem It is important for brands to be activists to differentiate themselves from competitors. When companies show that they are active in some political questions, they win credibility from customers and show them that they are informed (Spar & La Mure, 2003). Brand activism is also an effective way to position the brand for the target group, for example millennials who want to support brands with a purpose and take responsibility (Marketing Journal, 2018). A generation with a wish to contribute to a better world are the millennials, in combination with their marketing scepticism they crave to make a difference and demand that companies want the same thing (Shetty et al., 2019). As spoken of earlier the main reason for this increasing demand of companies taking a stand is the generation shift, millennials were born into the digital world. Since they have been exposed to ads and content marketing on a daily basis it has made them more sceptical towards advertisement. Previous generations fall for creative and fun branded content (Shetty et al., 2019). This isn't the way to go with millennials, instead they care about brands authenticity and question their values. Millennials are also working on their own personal brand through social media, sharing their political views or morality on their platform, this shows that they want to make a difference (Shetty et al., 2019). Earlier research is developed after previous generations (Greenberg & Weber, 2008), and therefore it's important that millennials are taken into account so that the academy grows a better understanding for this generation's new demands. Fournier (1998) explains that it is important for companies to create a congruence between the brand and the consumer's self-image. If brands succeed with this the consumer will create a strong emotional attachment to the brand which will strengthen the likelihood of intention to purchase (Fournier, 1998). There have been various studies that showed that environmental associations to the brand enhance brand equity (Henion, 1972; Kinnear & Taylor, 1973; Louchran & Kangis, 1994; Gallarotti, 1995). Millennials don't just use their own votes on the marketplace to make a difference they also influence precious generations (Greenberg & Weber, 2008). Millennials are nearly 30 percent of the U.S population which becomes clear as a demographic, they must be valued and accounted for as very important consumers. In 2020 the millennials are reckoned to be one in three of the Americans. With a purchasing power of $600 billion per year. Out of 7,8 Billion people worldwide, approximately 1,8 billion are Millennials and during 2020 they were half of the world's workforce, which speaks for themselves how important they are as well in the workforce as in purchase power (Futurum research, 2016). Fromm and Garton (2013) established that millennials affect buying decisions of an estimated $500 billion each year, this shows how important brand activism as a communication strategy is. Through the digital 5
media the millennials can reach out to a broader audience on the web, such as friends, parents, siblings and strangers (Futurum research, 2016). Therefore, corporate brands need to address brand activism in their strategy so that they can position themselves over competitors (Greenberg & Weber, 2008). Cone Communications Millennial CSR Study of 2015 established that 90% of millennials would choose another brand if it's associated with a cause, this is one of the reasons why it's important to study this phenomenon. Therefore, this study is important for corporate brands who want to position themselves as an obvious choice for the segment of Millennials. The generation of millennials wish to contribute to a better world, in combination with the marketing skepticism this shows that the demand for a more profound Corporate Social Responsibility (CSR) strategy. It's important for corporate brands to cater for the requirements millennials set on brands since in the United States millennials are responsible for approximately one trillion dollars of consumer spending (Cone Communications, 2015). Customers want to express their status, morals and show meaning, and they use the brand to achieve this (Escalas, 2004). Shetty et al. (2019) findings show that millennials' values are so important to them that even levels of income does not influence their perception of activism. This is why it's important for managers to see above price categories and income levels to be able to reach all millennials. Brand activism is a good way to show customers the brand value and identity, which should align with the target audience (Fromm & Garton, 2013). Academy must grow a deeper understanding for how brand identity can evolve in the future. This understanding will lead to that the academy can be proactive in the development and in the research moving forward which will contribute to new perspectives or ways of how consumers can identify themselves with a brand (Greenberg & Weber, 2008). Corporate brands need to involve shareholders into their identity and match their values with customers (Walker, 2018; Sorkin, 2018). Futurum research (2016) shows that corporate brands need to use movement-based marketing to develop long-term relationships with millennials. Income levels make less difference when millennials choose a brand and they are open to switching brands if they aren't satisfied with the company's value propositions (Shetty et al., 2019). Managers and marketers are required to change their marketing strategy because of how much of the consumer's spending millennials are responsible for (Futurum research, 2016). Millennials adoption for example technologies are often purpose driven. Their use of something is always a choice, and a choice is usually made with a good reason. This on the other hand is not always something good, it also means that millennials can actively reject a brand if it doesn't serve the purpose they were looking for. If there is no good purpose for the product or the servings it will not turn into a mass consumption among the millennials (Futurum research, 2016). To be able to connect with millennials there must be a foundation build of purpose and continuous improvement. It is not enough to for example build apps and design a 6
multi-channel digital presence, it must also solve a problem, ameliorate the experience or in another way bring more value than what is currently on the market (Futurum research, 2016). The millennials have a wide audience and support companies and brands that prefer to promote social responsibility and do not have the focus on profit. Millennials' ethic and value driven consumption makes them powerful in their active choice to boycott or buycott a brand that is not living up to their shared values or if they seem authentic and share the same values as the company (Shetty et al., 2019). The biggest difference for brands to positioning today and before is that the “regular” positioning is no longer enough in highly competitive markets. Millennials have higher expectations for the brands when living in a world with a constant reminder of the global problems (Shetty et al., 2019). For corporate brands to differentiate themselves from competitors, positioning is an important part to reach the target audience (Solomon, 2016). This is the reason brand activism and cause related marketing has to be such a big part of the “new” marketing strategy for corporate brands, to reach out to the generation of millennials (Shetty et al., 2019). An example of this is Nike that positions themselves as a sportswear brand, they also have taken statements in the black lives matter movement with the campaign “for once, don't do it” which has resulted in a position as a brand that shows that they are against racism (Nike, 2020). Millennials are the leading indicators of media consumption, social media usage, advocacy among all previous generations, which simply means that brands, old and new, cannot afford to ignore this generation. The power of this generation makes brands no longer in charge of their own image and messages (Greenberg & Weber, 2008). The findings from Fromm and Garton (2013) is that this generation derives value in the amount of engagement in product development, social interactions, advertising and other marketing processes. This also shows that new rules for marketing must be made not to the millennials but with millennials, to take advantage of their participation and co-creation and tie new marketing disciplines (Fromm & Garton, 2013). Brand activism can have an effect on brand reputation, brand image and firm value. Therefore, marketing managers and corporate leaders are required to make strategic decisions on how to include brand activism as a part of their marketing strategy (Brenstad & Sølsnes, 2019). Millennials are important to understand because they are a big generation with many years left with their purchase power (Fromm & Garton, 2013). Therefore, brand activism is important for corporate brands to understand so that they can make informed decisions on how to include this in their marketing strategies. It's also a relatively new subject which is shown in previous research since the findings are limited. When researching this subject on brand activism findings show that despite the rising demand for a more profound CSR-strategy the research on the subject today is limited. Therefore the subject is important to research for the academy to develop new knowledge about how to incorporate this and keep on learning within the subject. The research that can be found on 7
the subject is often from a customer-view, this research will contribute to a better knowledge of how companies use brand activism as a communication strategy so that the academy can get a greater understanding for this new phenomena. 1.3 Purpose The purpose of this research is to understand how companies use brand activism in their corporate branding as a communication strategy to reach millennials. The paper will show how brand activism can be used as a strategy to nurture the relationship with the generation of millennials. Research question How do companies use brand activism in their corporate branding as a communication strategy to reach millennials? 1.4 Definitions CSR – Corporate Social Responsibility is a way to operate your business which surpasses the expectations from stakeholders in the ethical, legal and commercial field (Cavusgil, Knight & Riesenberger, 2017). CRM – Cause related marketing is a commercial activity that presents the corporate brand as a contributor to the society (Fill & Turnbull, 2016). 1.4.1 Delimitation The study focuses on brand activism and corporate brands, which means that it will not take product brands into consideration. The authors will study how corporate brands use brand activism to reach their target audience of millennials. The delimitations are to study only corporate brands and how they reach the generations of millennials. The delimitations will help both the reader to not get confused. It will also help the authors to answer the research question and fulfill the purpose of the study (Johannessen, Tufte & Christoffersen, 2019). 2. Frame of reference 2.1 The ethical consumers demand for cause related marketing The ethical consumer has their focus on the fulfilment of the social responsibility trade. Which implies that the ethical consumer believes that the individual consumer can have a significant role by their daily purchases that could begin to promote ethical corporate practices. The ethical trade often refers to the international trade, whose goal is to prevent the injustices of child and low paid labor for example, or pollution of the environment. These are both injustices and development caused by the global trades. So the ethical consumption 8
concept includes the ethical and moral aspects that are presented on the market, in production and delivery of goods (Uusitalo & Oksanen, 2004). Creyer and Ross (1997) established that the ethical behavior that a company pursues is considered by customers in the buying process. Cause related marketing can be defined as the process of implementing and formulating marketing activities that engage the customer by contributing to a designated nonprofit cause. Cause related marketing is a communication tool for companies which is used to increase the customer loyalty and to build the corporate brand. However, it can be hard to succeed with cause related marketing campaigns if you would look to change the company's image (Brønn & Vrioni, 2015). Webb and Mohr (1998) suggest that customers are less likely to respond to the campaigns if they have a high level of skepticism. Even if cause related marketing could be a really good tool for the brands, this also means that it has its down side. If the cause related marketing is not done properly it will not sell products, motivates the employees or enhances the image. To make cause related marketing correctly it should be done as a long-term strategy and not as a short-term aim for profit (Brønn & Vrioni, 2015). Cause related marketing can drive companies to grow in market shares and customer loyalty when the alliance with companies and charities gets accepted (Brønn & Vrioni, 2015). Cone and Roper study showed (Simon, 1995) that 85% of the appellants showed positive feelings for a brand that supported a matter that had a significant importance for them. Which can be compared to what the Cone Communications Millennial CSR Study of 2015 established, which was that 90% of millennials would choose another brand if it's associated with a cause (Cone Communications, 2015). Customers are more likely to pay more for a product or service that supports a matter that they care about (Simon, 1995). It's important to understand that the effect of cause related marketing can be difficult to measure and what effects there are which means that an enhanced reputation is very long term (Brønn & Vrioni, 2015). 2.2 Brand activism A communication strategy which aims to influence the citizen consumer is Brand activism. This strategy focuses on the means of messages and campaigns which are sustained and created by political values (Manfredi-Sánchez, 2019). Brand activism within business shows concern within sustainability in the communities they serve, sustainability including economic, social and environmental concerns which is the core of how to take responsibility for social changes (Shetty et al., 2019). Brand activism helps organizations to build value-based relationships with customers. In the modern society we live in today, customers are more aware of global problems and it is important that companies' values reflect their customers and employees’ own values. A company can also match their behavior with their expressed brand activism by evolving a vision, goals, communication and values that stand up for different social problems (Marketing Journal, 2018). 9
The differences from previous known corporate social responsibility (CSR) or cause related marketing (CRM) is that these two latter often promote generally accepted, non-divisive, pro-social concerns (Chernev & Blair, 2015), an example is supporting education. These strategies are often received with a positive response from customers, unless customers perceive them like a marketing trick (Wagner, Lutz & Weitz, 2009). Brand activism can sometimes be spoken out spontaneously and does not have to be a part of the firm's marketing strategy which CSR and CRM usually is. A great example of this is the CEO of Starbucks that participated in the debate of refugee ban in the USA. The negative consequences of brand activists can be much wider than those of CSR or CRM, but the reward of brand activism can also be higher (Mukherjee & Althuize, 2020). Brand activism regards concerns where people feel differently, example where people can be controversial is separated from CSR activities because it's not defined by opposing sides. Böhm, Skoglund and Eatherley, (2018, p. 1) defines brand activism as follows “brand activism in which businesses launch carefully designed social good campaigns aimed at building awareness about a particular issue while also promoting a positive corporate message”. Brand activism helps customers to determine if the brand corresponds with their own moral judgment as well as self-brand similarity (Mukherjee & Althuize, 2020). Consumer Brand identification theory states that if customers feel like the company shares their values the chances are higher that customers identify themselves with the corporate brand. Which has a positive effect on customers attitudes and purchase intentions (Bhattacharya & Sen, 2018). On the other hand, if a consumer does not agree with the brand's stand it implies that the brand and consumer don't share the same moral foundations. Customers often see their own moral beliefs to be superior to others, therefore the chance for customers to change their beliefs to match the brand is minimal (Mukherjee & Althuize, 2020). This disagreement in moral foundations affects consumer attitudes and purchase intention negatively (Tuškej, Golob, & Podnar, 2013). 2.3 Corporate branding Corporate brands share the same “traditions” as the objective of creating differentiation and preference as product branding. However corporate branding is more complex due to the requirement to manage interactions with multiple stakeholder audiences (Knox & Bickerton, 2003). Knox and Bickerton (2003, p. 1013) define corporate brands like this; “A corporate brand is the visual, verbal and behavioral expression of an organization’s unique business model”. The audience for the corporate brands goes beyond customers to include everyone who is important for the company in consideration (stakeholders); customers and consumers, investors, distributors, partners, governments, suppliers, employees as well as both local, 10
national and international community groups (Woolly & Fishbach, 2016). These types of audience exercise a wider range of discriminatory that include both intangible and accepted tangible product or service elements. A corporate brand has a wider social responsibility since they are seen as culture. To manage a successful corporate brand they are in need of total commitment across the organization. This means that corporate branding has different characteristics as they evince emotional responses from the stakeholder groups. Over the years the definition of brand has been improved which is resulting in the extension of the scope of branding. Branding has started to evolve more in the corporate agenda and can today be recognized as a strategic tool to generate and support value creation (Knox & Bickerton, 2003). Corporate brands have a culture, identity and image that is common in every part of the company. Corporate brands still have their own product lines but the products are still marketed as a part of the company. Unlike product brands, corporate brands don’t die with the product. Every product has the same image and identity as the brand itself. The corporate brand is permanent and everything that is communicated from the brand will be a lifelong message (Hatch et al., 2008). When a firm is marketing themselves as the trademark, they exercise corporate branding (Argenti & Druckenmiller, 2004). The positioning is not about the product it is how the consumers apprehend the product or the organization and what is perceived. Because of this, the context analysis requires a consideration of perception and attitudes and the way stakeholders see and regard brands and organizations (Fill & Turnbull, 2016). Organizations are positioned relative to one another, as a consequence of their corporate identities, whether they are deliberately managed or not (Solomon, 2016). The position an organization takes in the mind of consumers may be the only means of differentiating one brand from another (Shetty et al., 2019). Because of the advantages in the technology and the level of similarity of products, consumers' choices will be more focused on their assessment of the company they are dealing with. That is why it is so important for organizations to position themselves as a brand in the minds of actual potential consumers (Solomon, 2016). It is important that customers understand the brands market positioning as this provides the signals to determine a brands main competitor or whether customers fail to understand the brand or are confused about what the brand stands for (Fill & Turnbull, 2016). 2.4 Millennials Millennials are the generation born 1980-1996. This generation shares the same moral codes, attitudes and ethics which is affecting today's marketplace. Since they are exposed to ads and content marketing on a daily basis it has made them more sceptical towards advertisement. Previous generations fall for creative and fun branded content (Fromm & Garton, 2013). 11
Even if millennials are aware and market- savvy who could easily exchange a brand in the search for the best value they could also remain very loyal to a brand that can give them a reason to be. For the millenials, identity is extremely important and they are more likely to identify in the long term with brands they can integrate with their personal and tribal identity (Fromm & Garton, 2013). Individuality is a significant component of this generation's mindset. Millennials often feel the need to express their independence and individuality within a framework of social acceptance, stylish predictabillity and crowd- fuled validation (Futurum research, 2016). Escalas (2004) means that consumers use the brand to express their own self-perception and how they want to be perceived from others. The brand works as a frame to show meaning, status and moral. The millennials want their individuality to be an appliance to achieve status and stand out within their tribe, they expect that their uniqueness to be validated and understood of the complex and unspoken cultural rules. Brands with strong social identity components can attract millenials and create brand loyalty when deeping their individual relationships and shaping the cultural tribes within their social life (Futurum research, 2016). Palazzo and Basu (2006) means that the brand is the product and that the brand's value helps customers to identify themselves to others. If companies aim to develop lifelong customers of millennials they should involve identity branding, movement-based marketing and person to person engagement on the social channels (Futurum research, 2016). According to Iqbal (2021, 8th March) Millennials are 49% of all Instagram users and 57% of Millennials use the Instagram app multiple times a day. As of the total of social media platforms the usage of the US adults from the age 18-29 are 84% active on social media and 81% of the age 30-49 year old age group. These are huge numbers of active users for these platforms. As of the latest statistics published in 2021 there are 3.78 billion social media users worldwide, and the number is growing (Moshin, 2021, 5th April) . In the Q3 of 2017 Instagram had more engagement on the platform regarding B2C companies compared to Facebook. Engagement is referred to as reactions, comments, shares and likes. In fact Facebook's engagement rate fell 20% while Instagrams users engagement increased by 5% (Deja Vu, 2017) 2.5 The corporate brand’s role in brand activism towards millennials Brands are now taking a stand in topics regarding climate change, human rights, gun control and immigration. This type of activism is the company's way of acting upon their moral beliefs and for what they believe is right (Gupta & Pirsch, 2006). Customers think it is important for brands to take a stand and engage in discussion about political and social issues, especially on leading questions like immigration, human rights and race relations. Customers also want brands to contribute to causes with what customers don't have the resources for, for example donating or encouraging others to do the same. Social media is the best way to take a part in these conversations, present the brand's opinion and engage customers. Other channels like TV, blogs and radio aren't as good platforms for conversation (Sprout Social, 2017). 12
Many marketers don't have the knowledge to drive brand activism (Marketing Journal, 2018). 80% of marketers do not think it's appropriate that brands get involved in political issues (Deloitte, Duke Fuqua & American Marketing Association, 2019). This aligns with the traditional marketing school which implies that marketers don't show political views and instead concerns over what's best for both shareholders and the business (Walker, 2018; Sorkin, 2018). Brands that take a stand on political questions can both attract customers but at the same time risk their customer base, taking that risk is perceived as poor marketing practice (Weber Shandwick, 2017). To minimize risks, Sprout Social (2017) means that keeping the marketing staff educated and updated on matters that are relevant for the business is important. To minimize risks the brand must also be prepared for every kind of reaction. All customer communities are diverse, and to make sure that the brand is prepared for every reaction shows that the brand accepts that everyone has different opinions. If a brand tries to please everyone the brand will not be able to take a true stand. To make the brand better equipped to meet different reactions on a stand, training of the social team is necessary, especially so they can communicate acceptance. This also gives the team the tools they need to stay authentic and consistent in the response. Marketers must also have a strategic plan on how and when to address and engage in social issues, since participation in the conversation is a standard today (Sprout Social, 2017). There is a rising interest in boycotts, the development of boycott hashtags on social media increases everyday (Weber Shandwick, 2017). Sprout Social (2017) survey found that reactions are stronger when their judgments and values align with the brand. The chances for customers to show brand loyalty are greater than for boycotts when the opinions do not align. More often companies that take a stand get more positive emotional reactions on social media. Positive emotions are of great importance when building long lasting relationships with customers. This encourages them to purchase rather than risking losing market share. There are more customers that have joined a buycott than a boycott towards a brand that have spoken their mind on social media. People are more willing to engage on social media when they agree on a matter, than they are when they disagree, so the chances of getting positive comments on social media are greater (Sprout Social, 2017). There are risks involved in brand activism, by choosing a subject that isn't relevant for the business. A great example of this is two campaigns launched by Starbucks where the first campaign was met by resistance. Starbucks baristas would write #racetogether on coffee cups and if customers ask about it they should hold a discussion with the customers. The meaning of the campaign was to engage customers in the discussion regarding race following the incident of two unarmed black men getting shot by the police. Customers would argue that a discussion on an important question like this can't be made over a cup of coffee (Harvard Business Review, 2015). But the second campaign was received with positive feelings from customers, when Starbucks CEO announced that they would hire 10 000 refugees around the world two days after Trump's immigration order (Starbucks, 2017). 13
The differences in the two campaigns are what decided which one would succeed. A white billionaire who wants to talk about race over coffee doesn't seem to make a good enough effort, and especially not since Starbucks didn't show any real actions with the first campaign like the promise to hire 10 000 refugees (Hodge, 2020, January 3). There is always a risk to take a political stand but the risk to stay neutral can be much higher (Isaac, 2017, 31 January). Respondents in the Sprout Social (2017) survey find brands that take a stand in questions that can affect their customers, employees or business operations more authentic and credible. Today, customers are much more aware and purpose-driven and therefore it is much more important for them to make business with brands that care about society (Gray, 2019). A good example of when staying neutral got disadvantages is when Uber didn't join the taxi strike protest to JFK-airport that occurred when Trump chose to implement the travel ban against Muslims. Uber also switched off its surge pricing and this backlashes and customers accused Uber for profiting from the situation. The event made a campaign called #DeleteUber that affected the brand in many ways, 200 000 people deleted the app and Uber themselves says that it spread mistrust towards the brand. To stay natural in this travel ban did not match Ubers earlier statement that said that they were a bold company that had courage to take a stand (Isaac, 2017, 31 January). To minimize the risk of customers questioning the company's motivations and creating mistrust, Sprout Social (2017) means that it's important that brands take stands on questions important for their business or the customer communities. Mukherjee & Althuize, (2020) showed that if the brand was facing a backlash as an effect of the stand taken, an apology wasn't well perceived from either the customer that disagreed or agreed with the brand. Therefore the brand should not take a stand on an issue that they have uncertain feelings about, but instead verify that the stand aligns with the brand's core value. To use ambassadors as a tool to take a stand is good for the corporate brand, because the ambassador functions like a shield between the brand and the customer that did not agree. The ambassadors minimize the impact done by the stand taken on the purchase intentions. (Mukherjee & Althuize, 2020). Overall, the reactions of brands that take a stand are positive, many customers perceive the brand as brave and engaged. Sprout Social’s survey also found that brands that take a stand are more likely to be rewarded for it. 28% of respondents that agree with the brand's opinion will praise the brand, but only 20% of respondents that disagree with the brand will criticize the brand in public (Sprout Social, 2017). Relevance is important for customer engagement in marketing but also when participating in brand activism. Often brands today use customers preferences, purchase history or demographics to meet relevance. To gain credibility when participating in brand activism brands must investigate how they relate to the world around them to really succeed. Customers must understand why the brand is concerned by just that specific social and political question, and this will result in higher credibility (Sprout Social, 2017). 14
The era is changing and before the corporates were focused on their brand product marketing. Now when brand activism strategies are taking place, corporate brands are focusing on influencing the consumers on their purchase decision (Know & Bickerton, 2003). The rising brand activism strategy is through social media where the users can have direct contact with the brands and surrounding issues. A high engagement in activism is followed by higher customer support for the brand. This is one of the reasons it is important for the corporate branding to position themselves in the top of the mind as an activist in the consumer's mind (Gray, 2019). Social media is available to everyone and many customers think social media is the best platform to share opinions and create engagement. It's still important that brands don't overuse their privilege and voice. Customers do have an opinion on how often company's share their values, the maximum of how often the brand raises these questions is 10% of the posts on social media. If companies use this as a measurement, they can avoid risks that come with being too engaged. A good way to incorporate this is by involving stakeholders in the purpose of every statement. This makes it easier for the company to make business-driven decisions and create strategies for the specific engagement and develop the corporate brand (Sprout Social, 2017). It is probably safe to say that taking a stand in divisive socio-political questions can induce strong and consequential reactions and actions from different stakeholders. If a brand would face harsh criticism, protests or boycotts as a result of taking a stand, this would represent the public backlash, not only as a direct threat against the brand's image and reputation but also against the moral foundation for the consumers that stands by the brand (Mukherjee & Althuizen, 2020). If companies are able to understand how social media engagement corresponds to a campaign's qualities of the rise in demand in brand activism, it will allow the brands to build specific marketing strategies (Woolly & Fishbach, 2016). With the rise in brand activism a lot more companies engage in movements and understand the effects of an activist campaign (Gray, 2019). Sprout Social (2017) states that brands need to balance social media strategies that include brand activism with the risks that it entails. So that they can communicate their position and values on their social media platform in a smart way (Sprout Social, 2017). In 2017 Procter & Gamble created the #WeSeeEqual campaign close to International Women´s Day. This campaign encourages a gender-equal world, free from under bias and unequal representation (Procter & Gamble, 2020). As the value of brand activism has become more important, brands are beginning to incorporate additional advertising campaigns that do not necessarily focus on the product, the focus is on societal issues or a cause (Gray, 2019). According to Engage for good (2020., “Consumer preference”, st. 6): “72% of Americans say that they feel it is more important than ever that the companies they buy from reflect their values. 76% say supporting companies that are addressing social and 15
environmental issues helps them feel they are doing their part. Nearly nine-in- 10 consumers (86%) say they're likely to purchase from purpose-driven companies” These statistical numbers are a proof of the importance of brand activism to be used in corporate branding because millennials are such a big part of using social platforms. This is a great way to understand and involve this important purchase generation. Through the social platforms, consumers are able to quickly spread their satisfactions and dissatisfactions with a brand through keywords, image, mentions and hashtags (Cone Communications, 2015). This also means that brands have an increased opportunity to cater towards consumers values by contributing to the societal dialogue. When companies have the ability to encourage social change by distributing their marketplace power accordingly, this also means that the more business power a corporation has, the more responsibility they have towards the society (Gray, 2019). This also aligns with the statistics earlier that consumers believe that brands drive social change and for brands to have an impact. This of course puts a lot of pressure on the companies, to not only advocate for certain issues, but to do it well. With this type of level of controversy on many issues, advocating for certain positions brings out many consumers' reactions that could both have a positive or negative effect on the company. This also affects the expectations that continue to rise for brands that participate (Gray, 2019). Today, social media plays a large role in transforming online customer behavior by providing engagement opportunities between consumers and brands, by influencing external brand strategies. The brands must be able to interpret consumer engagement responses in addition to the motivations behind consumer´s online brand related activities in order to measure the success and impact of the activism efforts. The consumer engagement reflects a consumer's level of interest in and personal relevance of a brand (Cone Communications, 2015). When it comes to the campaigns the duration of impact for campaigns varies based on the overall message, expected outcome and the number of supporters who continuously spread the message through social media engagement (Gray, 2019). Higgins (1998) states that acting morally is the brand's responsibility and how they act shows the kind of person (or brand) they are, should or want to be. The companies that deeply route social change into their marketing efforts by using brand activism are often considered better suited for instilling long-term change. These brands directly focus on the cause while indirectly gaining support for their brands. This support is measured through engagement. As bought up earlier, millennials are a purpose driven purchaser that makes decisions based on the company’s activism mindset and does not choose to support a company with a short-lived vision of fixing a ”problem”; they rather support a company with a long term vision of fixing the ”process” (Gray, 2019). 3.0 Method 16
3.1 Overview of the research approach According to Söderbom & Ulvenblad (2016) there are three different types of research approaches; inductive, deductive and abductive. The inductive approach means that the authors first collect the empirical data and then they take a part of the research that's already available on the field. The deductive approach instead is based on the litterature that's already available on the subject and the knowledge the authors get is used to collect the empirical data. Abductive approach means that the authors start with empirie data and then collect more knowledge in theory, and then complement it with more empirie (David & Sutton, 2011). This research study included a deductive approach because of the point of departure from the theory collected through scientific articles and books that has been processed to create a framework for this study. The knowledge collected will then be used to assemble the empirical data. The empirical data was gathered from qualitative content analysis. (Söderbom & Ulvenblad, 2016). This framework is used as a base for the study and also worked as a knowledge bank to develop relevant questions for the guideline. The question guide is based on earlier research to ensure the best quality of the empirical data collection. The risk of adopting a deductive approach is that the authors can be locked by the previous theories and that potentially important questions are overlooked in the guide (Söderbom & Ulvenblad, 2016). However, since the purpose is to understand, the authors argue that a deductive approach adds necessary elements to the study because the theory helped to gain a greater understanding of the chosen topic. 3.2 Research Method The two methods that can be used to conduct research are quantitative and qualitative. The most common way to do quantitative research is to send out surveys, where the researchers are focused to find a way to put numbers in different penhomenas to understand differences and similarities between respondents. Researchers that use qualitative research methods, take the people and the phenomena of people that's being studied into consideration, which contribute with a more detailed view (Johannessen, Tufte & Christoffersen, 2019). Quantitative research is often more numerical. Qualitative research is often used to confirm test theories and assumptions, other quantitative methods can be experiments (David & Sutton, 2011). Qualitative studies should be used when studying phenomenons that have limited research about or when the author is trying to understand the phenomena on a deeper level with more details (Johannessen, Tufte & Christoffersen, 2019). The reason that the authors chose a qualitative method for the study is because it allows them to see patterns between the theoretical framework and the empirical data which gives a greater understanding for the phenomena of brand activism. The empirical data will be 17
collected via qualitative content analysis, which is a qualitative data collection method that has the aim to understand how and describe (David & Sutton, 2011). 3.2.1 Type of research A study can have different purposes; it can be to describe, explain or understand something. When the purpose is to describe something it is a descriptive type of research. If the purpose of a study is to explain something the type of research is exploratory. If the study is descriptive the research questions are often structured with “who”, “what”, “when” and “where”. If exploratory research is used, the purpose is to understand the context, and the research question asked is “why” (Söderbom & Ulvenblad, 2016). The purpose of this study is exploratory since there isn't much research done on the subject. Therefore the aim in which literature review has been collected is to understand and to find the gap in the research (David & Sutton, 2011). The authors chose an exploratory type of research since Söderbom & Ulvenblad (2016) says it's easier for students to succeed with their study with this design (Söderbom & Ulvenblad, 2016). The aim is to understand how companies use brand activism as a communication strategy to reach millennials. The analysis of the empirical data and literature review together will have an exploratory character (David & Sutton, 2011). 3.3 Population and sample The population includes every case that is examined in a study. The case and populations can be both persons, companies or a household. If the population is lage, it is impossible to examine every case of the population. Therefore many populations require the researcher to choose a representative group to examine. To make the research reliable the group needs to be as similar to the population as possible (David & Sutton, 2011). To form this representative group the researcher uses a selection frame. The important part is that the sample represents the population, and that neither parts of the population is excluded or overrepresented (Johannessen, Tufte & Christoffersen, 2019). There are many sample types but two main categories, probability sampling which means that every case in the population has the same chances to be a part of the selection, and non-probability sampling which is used when it's hard to identify every individual case in the population. In this study the non-probability sampling is used because the population of over corporate brands that use brand activism is small and there is no public selection frame to use. There is also a limited amount of time which makes it inconvenient to examine a diffuse population (David & Sutton, 2011). 18
The type of sample that is going to be used for this study is by judgement. It’s appropriate because the population is small and the companies chosen to analyze need to fulfill the requirements. This method for choosing respondents means that the authors as researchers use their knowledge to choose which respondents are suitable for the study (David & Sutton, 2011). The purpose and limitations of the study has therefore been taken into consideration when choosing companies to analyze. A variation of companies is also of importance to be able to collect and get a better understanding of different experiences and angels (Johannessen, Tufte & Christoffersen, 2019). The study is limited and focused on corporate brands that participate in brand activism and has millennials as a part of their target group. The most important attribute of the case study is that the companies are activists and use brand activism as a marketing strategy. The criteria: ● Participate in brand activism ● Millennials as part of their target group ● Corporate brands To find the right companies that will fulfill the criteria and contribute with an understanding for brand activism the research was made on both Google and social channels. The aim of the number of companies to participate in the content analysis is 3-4 companies. Malterud, Siersma and Guassora (2015) states that the more information that one respondent gives that is relevant for the study the fewer respondendent is needed. The activism content that the companies have been analysed has distributed an immeasurable amount of content on both their website and social channels. The selected companies are: ● Nike ● Ben & Jerry's ● The Body Shop Nike Nike is a shoe and apparel company that develops, designs and sells a variety of products. The name comes from the Greek goddess of victory. Niek focuses their products on sports like soccer and basketball but also activities like running and other action sports. Their products are sport-inspired for children in various competitive and recreational activities. Nike's market in footwear and other products are sold all over the world through diverse marketing that includes campaigns, social media, online advertisement and endorsement contracts with celebrity athletes (Nike Inc, 2021). In 2019 Nike Inc reported their annual revenue which was 39 117 million dollars (Nike Inc, 2019). Nike's target group are the age of 15 to 45 and millennials are born between 1980 to 1996 which is 53% of their target audience (Panagiotopoulou, 2017). 19
Ben & Jerry's Ben & Jerry's is a American company that has been making ice cream since 1978. The idea was to make the best ice cream in the best way possible. They are famous for using fairtrade certified ingredients, including cocoa, vanilla, sugar, bananas and coffee. The company went from starting the business in a renovated petrol station in Vermont to today being a company that is global and available in 35 countries. Ben & Jerry's is today seen as a fun-loving company that plays with creativity and to be unique as a part of their approach to business (Ben & Jerry's Homemade, Inc, 2020). Ben & Jerry’s are owned by Unilever and their revenue for ice cream during 2019 was 2,5 million euros (Unilever, 2019). Ben & Jerry’s target audience is people between under 24 and up to 35 years old (Numerator, n.d.). The Body Shop The Body Shop was founded in 1976 in England and is a cosmetics company. The BodyShop was founded by Dame Anita Roddick who wanted something more than a regular beauty brand. She believed that business could also be a force for good so the products were ethically sourced and naturally-based ingredients from around the world and with the chance to get refills instead of buying new packages. She wanted the brand and the products to be made for every body that made women feel good in their own skin. Anita’s passion for the planet was reflected in her products and campaigns. In over 40 years The Body Shop has been against products being tested on products and they work fairly with farmers and suppliers to help communities thrive together with their Community Fair Trade program (The Body Shop International Limited, 2020). During 2019 The Natura & Co reported The Body Shops annual revenue, which was 4, 129 billion dollar (Natura & Co, 2019). The Body Shops target group are females in the ages between 20-55 (Natural Cosmetics, n.d.) 3.4 Data collection 3.4.1 Instrument to collect data This study, the authors have chosen to use both secondary data and primary data. Secondary data is sources that have been created for another research purpose and other researchers. Primary data is data that is collected by the authors for this specific study (David & Sutton, 2011). The theory that has been collected for this study is secondary data. The authors collected this with the help from the Högskolan Halmstad library database. Most of the articles and books that have been assembled for the study have been viewed digitally. The primary data will be collected with a content analysis, which is a method used to collect and identify data (David & Sutton, 2011) from three different companies by their website and social media accounts. 3.4.2 Multiple case study This research will be viewed as a multiple case study because the study is based on more than one company to participate in this research. The content analysis will be based on a question 20
guideline where the questions will be the same for all companies. Yin (1994) suggests that at least six to ten cases should be examined to gain a higher credibility. The authors didn't have the opportunity to choose so many cases therefore the study examines three companies. However Yin (1994) also states that there is not any requirement of how many cases that needs to be invested, and that there are also no criterias surrounding the size of the sample. According to Yin (1994) multiple case studies occur where two or more cases are shown to support the same theory and replication can be claimed. So when analyzing different campaigns and companies by the same questions this will provide the authors with a replication strategy. This strategy consists of two steps, literary replication, which focus on getting similar results from the companies and the theoretical replication stage where the purpose is to understand if the cases confirm or submit the different theories the authors have chosen for the study. If the results turn out to be similar the authors can draw a conclusion that the theories can explain the answers from the content analysis and that the theories fit how the companies work (Ridder, 2017). One benefit with the multiple case study according to Yin, is that authors get the opportunity to research purposes like why or how about real events in their natural environment. The purpose of using multiple case studies is to use a sustainable research method where it will be possible to analyze both the occurrence and its surroundings. Yin mentions that a multiple case study can be used to both describe or explore (Yin, 1994). In the economics field, the type of research is often explanatory. The authors have chosen a design that is exploratory and this type of design is often used in qualitative research, similar to this study (David and Sutton, 2011) . According to Yin (1994), multiple case study is best to use in a study of contemporary events which is collected by open interviews or observations. David and Sutton (2011) states that this is true, however it is also possible to gather empirical data in the form of documentation and life histories. The authors have chosen to make a content analysis observation on the companies websites and social media, which is a type of documentation. 3.4.3 Content analysis The autorst created a guideline with questions to perform the content analysis. It is important to identify themes when formatting the questions for the guideline. The themes will function as a basis in the analysis process (David & Sutton, 2011). To collect relevant data, the authors have used a guideline with questions which were formatted with the help of assembled theories. The themes will be brand activism, millennials and corporate brands. The questions will be thoughtfully composed to avoid the risk of doing an extensive study and to keep the data collection from the content analysis relevant for the study (David & Sutton, 2011). 21
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