Citizens Engage! Edelman goodpurpose® Study 2010FOURTH ANNUAL GLOBAL CONSUMER SURVEY

THE RISE OF THE “CITIZEN CONSUMER”

COP 15 Copenhagen Summit considered a failure

Outpouring of support for local communities affected

by BP crisis

Global citizens unite around disaster in Haiti in

unprecedented numbers

Chinese provide aid after natural disasters like the

earthquakes in Wenchuanand Qinghai Province

Performance with Purpose

“Our belief that our financial

success — Performance —

must go hand-in-hand with our

social and environmental

responsibilities — our Purpose.”

Indra NooyiChairman &CEO, PepsiCo.

BUSINESS & GOVERNMENT PUTS PURPOSE OUT FRONT

India’s Parliament introduces Bill to require largest companies to donate 2% of their net profits to CSR activities.

UK

500

FOURTH ANNUALGLOBAL CONSUMER STUDY2010

FRANCE

500GERMANY

500

ITALY

500

INDIA

500

CHINA

1000

JAPAN

500

CANADA

500

MEXICO

500

BRAZIL

500

StrategyOne surveyed 7,000+ consumers across 13 countries, aged 18-64

UAE

250

NETHERLANDS

500

US

1000

WHAT CONSUMERS HAVE TO SAY…

EMERGING MARKETS TAKE THE LEAD

CONSUMER ACTIONISM GREEN AS ECONOMIC LEVER

FOUR STORIES EMERGE FROM OUR STUDY

THE FIFTH P OF MARKETING IS PURPOSE

“CONSUMERS IN BRAZIL, CHINA, INDIA AND MEXICO ARE MORE LIKELY TO PURCHASE AND PROMOTE BRANDS THAT SUPPORT GOOD CAUSES, OUTPACING THEIR PEERS IN THE WEST.”

EMERGING MARKETS ARE MOST WILLING TO BUY BRANDS THAT SUPPORT GOOD CAUSES

Consumers who buy a brand that supports a good cause at least every twelve months.

Q20. (Net: at least every twelve months)

“I would help a brand to promote their products or services if there is a good cause behind them.”

EMERGING MARKETS ARE MORE LIKELY TO PROMOTE BRANDS THAT SUPPORT GOOD CAUSES

Q16. (Top 2 box, Agree) Global (excludes UAE) and 13 countries

Likely to buy products/services from a company that supports good causes

Q41. How likely would you be to do the following in relation to a company that actively supports a good cause? Buy its products/services (Top 2 Box, Likely) Global (excludes UAE) and 13 countries

CHINA: 7 IN 10 CONSUMERS WOULD BUY FROM CAUSE-SUPPORTING COMPANIES

INVOLVEMENT WITH GOOD CAUSES STRONG: SIGN OF CONSUMER ACTIONISM

Q8. Personal involvement

Q8. [TRACKING] Are you personally involved in supporting any good cause? Global (excludes Mexico, Netherlands, UAE) and 13 countries

IN INDIA AND CHINA, PERSONAL INVOLVEMENT IN SUPPORTING GOOD CAUSES HAS RISEN RAPIDLY SINCE 2009

+ 34+ 23

N/A N/AN/A

- 12

- 13

EMERGING MARKETS TAKE ACTION TO SUPPORT SOCIAL PURPOSE BRANDS

“I am more likely to recommend a brand that supports a good cause

than one that doesn’t.”

“I would help a brand to promotetheir products or services if there is a

good cause behind them.”

“I would switch brands if a different brand of similar quality supported a

good cause.”

More than 7 in 10 consumers in the emerging markets would take action to support social purpose brands.

INDIA78%

CHINA77%

BRAZIL80%

Q16. (Top 2 box, Agree)

GLOBAL61%

GLOBAL62%

GLOBAL62%

EMERGING MARKETS EXPECT BRAND INVOLVEMENT IN GOOD CAUSES

“I have more trust in a brand that is ethically and socially responsible.”

Brazil: 81%China: 78%Mexico: 78%India: 77%

US: 33%UK: 19%

Q17. & Q16. (Top 2 box, Agree)

8 in 10 consumers in the India, China, Mexico and Brazil expect brands to donate a portion of their profits to support a good cause.

Global: 65%

THE FIFTH “P” OF MARKETING IS PURPOSEThe age-old marketing mix of Product, Price, Place and Promotion are now joined by a fifth “P”…Purpose.

GLOBALLY, SOCIAL PURPOSE REMAINS KEY PURCHASE MOTIVATOR

When choosing between two brands of equal quality and price…

Social purpose continues to rank as the number one deciding factor for global consumers above design, innovation and brand loyalty.

Q23. [TRACKING] (First ranked response) Global (excludes Netherlands, Mexico, UAE)

CHINESE CONSUMERS WILLING TO PAY MORE FOR A CAUSE

Q24A-Q26B. (Split sample) China

Beverage Clothing Appliance

51%

Willing to pay 5% more Wiling to pay 10% more

CHINESE CONSUMERS TAKE ACTION TO SUPPORT COMPANIES WITH PURPOSE

BUY its products or services

RECOMMEND its products or services

SHARE positive opinions and experiences

70%

70%

64%

Q39-44. (Top 2 box, Likely) China

73% OF CHINESE CONSUMERS COULD SWITCH BRANDS IF A DIFFERENT BRAND

OF SIMILAR QUALITY SUPPORTED A GOOD CAUSE.

Q16. (Top 2 box, Agree)

CONSUMER WILLINGNESS TO PROMOTE BRANDS WITH A CAUSE JUMPS

Q16. [TRACKING] (Top 2 Box, Agree) China

+ 21

“I would help a brand to promote their products or services if there is a goodcause behind them.”

53%

… BUT ALSO WILLING TO PUNISH

Q45-49. (Top 2 box, Likely) Global (excludes UAE)

CONSUMERS EXPECT PURPOSE INGRAINED INTO THE MARKETING MIX

68% agree brands should promote good causes

through advertising to help raise public awareness

67% expect brands to donate a portion of their

profits to support a good cause

Q17. (Top 2 box, Agree) Global (excludes UAE)

CONSUMER ACTIONISMConsumers want to work alongside brands and corporations to develop the best ideas for solving the world’s problems, then tackle them head on.

Which one of the following entities do you think should be doing the most to support good causes?

CONSUMERS FEEL MORE EMPOWERED TO SUPPORT GOOD CAUSES

-10

+5

Q7. [TRACKING] Global (excludes Mexico, the Netherlands, UAE)

CHINESE CONSUMERS WANT TO PARTNER WITH BRANDS

78% believe brands and

consumers could do more to support good causes by working together

78% want brands to make it

easier for them to make a positive difference

Q17. & Q16. (Top 2 Box, Agree) China

GREEN AS ECONOMIC LEVERCitizens believe that sustaining the environment can help repair the economy.

ENVIRNOMENT, HEALTH KEY IN CHINA

Q6. (Top 2 Box, Care) China

76%

79%

86%

“GREEN IS GREEN”

71% of global consumers believe projects that protect and sustain the environment can help grow the economy

Demand highest in emerging markets and US.

Q57. (Top 2 Box, Agree) Global (excludes UAE)

GOVERNMENT AND CORPORATIONS MUST PLAY ROLE

Q32. & Q57. (Top 2 Box, Agree), China

84% expect corporations to take actions to preserve and sustain the environment

82% agree government and business need to work together more closely to ensure the environment is protected

74% of Chinese consumers would support

legislation that requires corporations to meet certain environmental standards even if it would negatively impact a corporation’s profits

* 72% in India; 67% in US

80% would support legislation that requires

government to fund partnerships between public and private organizations to help protect the environment

* 74% in India; 59% in US

PUBLIC SUPPORT FOR ENVIRONMENTAL LEGISLATION IS STRONG

Q57. (Top 2 Box, Agree) China

FOUR YEARS OF GOOD PURPOSE, WE’RE LEARNING…

Purpose trumps design, innovation & loyalty

People promote and buy brands with purpose

Green is key

Profit + Purpose

Annual journey to

support Chinese

landmarks or customs

programs in need of

protection

Engagement:

Cultural experts, media,

customers, dealers,

employees, and people

passionate about China’s

cultural heritage

Government Support:

Chinese National Academy of Art,

the Protection Center of

Intangible Cultural Heritage of China under the Ministry

of Culture

Communication:

National and local media,

blog competition,

social networking

games, and an online quiz.

Sustainability

Exhibition to highlight the

creative elements of the Journey and build awareness

and acceptance

of BMW across China.

BMW CHINA CULTURE JOURNEYDeepen its roots in the Chinese market; to explore, protect and promote Chinese culture

“When BMW commits itself to culture, it commits likewise, to the sustainability of Chinese society, and the well being of Chinese people. ”

- Dr. Christopher StarkPresident & CEO

BMW Group Region China

BMW CHINA CULTURE JOURNEY

CONTENT DRIVING PURPOSE, TOO

betterplace links companies and individuals with good purpose projects; they sent flipcams to participating organizations and held a video contest.

The Good Pitch holds roundtable discussions all over the world and connects brands and companies with documentary film directors hoping to produce films with a good purpose.

IMAGE

Helping brands and companiesintegrate purpose into their core business proposition and marketing efforts.

SO, HOW CAN YOU ENGAGE?

THE GOODPURPOSE POINT OF VIEW

APPLY

MATCH

ENGAGE

MEASURE

“MUTUAL SOCIAL RESPONSIBILITY”

YOUR BUSINESS PURPOSE TO A HIGHER SOCIAL PURPOSE

YOUR PUBLIC

“RETURN ONINVOLVEMENT”

People, companies, and brands working together to take action and effect positive social change for mutual benefit

Identify your social issue, and ownable,galvanizing idea

Foster a deeper emotional connection and develop sustainable brand loyalty

Conversation, Participation, Membership,Purchase, Repurchase

本善之心人皆有之，故需强本善之行

For more information, contact:

Steven Cao, Founder & CEO

Pegasus Communication

steven.cao@realpegasus.com

+86 10 8521 1718

People are naturally good, it is in their nature, but we must learn how to be better.