Purpose
What does "purpose" mean?
Purpose—often referred to as “brand purpose”—describes the overarching meaning and purpose of a brand. It answers the question of why a company exists and what contribution it aims to make beyond its purely economic offerings.
As such, purpose provides long-term direction. It connects the brand to clear values, a stance, and a sense of responsibility toward customers, the team, partners, and society. Like an internal compass, it helps frame business decisions and set priorities.
At its core, it’s about more than profit, sales, or specific products. The focus is on the deeper meaning: What problem is to be solved, what change is to be initiated, or what added value will be created for people and the environment?
A purpose is not just a nice-sounding phrase for the next presentation. It must be reflected in the company’s actual actions—that is, in its products, internal processes, way of working, and every important decision. Only when the company’s aspirations align with reality does it come across as credible and have a lasting impact.
Why is purpose important?
In markets where offerings are highly comparable, a clear purpose helps a brand develop a distinctive profile and reinforce its own significance:
Emotional connection: Values and beliefs foster identification. People are more likely to feel connected to brands whose stance aligns with their own beliefs.
Credibility and trust: A clear purpose makes it evident what a brand stands for. However, it only becomes visible and trustworthy through actions in everyday life.
Competitive differentiation: When products are interchangeable, the overarching purpose can make the decisive difference and give the brand its own distinct profile.
Customer loyalty: A shared set of values strengthens long-term loyalty. The connection is then no longer based solely on price.
Internal Focus: The purpose serves as a guideline for the team and leadership in their daily collaboration and has a lasting impact on corporate culture.
Attractiveness to talent: Companies with a clear and actively lived purpose are particularly attractive to people who seek meaning and responsibility in their work.
Long-term impact: A purpose is not a short-lived campaign, but a common thread that accompanies and further develops the brand over the years.
Purpose as a Long-Term Compass for Strong Brands
A clear purpose ensures that brands remain relevant over the long term. It provides a reliable direction, fosters internal cohesion, and helps to continuously align the brand’s offerings with the needs of society. Strong brands, therefore, have long since come to stand not just for individual products, but for an overarching idea.
A good example of this is Bosch with “Technology for Life.” The focus here is not on a specific component, but on the benefits of technology for everyday life and quality of life. This can be seamlessly applied to completely different areas—from automotive technology to hand tools.
SAP, too, pursues a purpose with “Help the world run better and improve people’s lives” that extends far beyond software as a product. The commitment to making companies more efficient and manageable automatically opens the door to important issues such as transparent supply chains, responsible use of resources, and sustainable development.
Such approaches make brands tangible and provide a solid foundation for innovation and strategic decisions. However, they only realize their full impact when the stated mission is truly put into practice in day-to-day operations.