Cause Marketing: Case Study Steve Drake, Drake & Company Vince Powers, Devine & Powers

Today’s Agenda Introductions – Steve & Vince Defining Cause-related Marketing Examples Case Studies Brainstorming & Feedback

Introductions – Steve & Vince

Defining Cause-related Marketing

Examples

Case Studies

Brainstorming & Feedback

Definitions Corporate Sponsorship : Company trying to reach your members Message: buy from me because we support your industry Cause-Marketing : Company trying to reach your members’ customers or society in general Message: together we can do something good “for society ”

Corporate Sponsorship :

Company trying to reach your members

Message: buy from me because we support your

industry

Cause-Marketing :

Company trying to reach your members’ customers or

society in general

Message: together we can do something good “for

society ”

Cause Marketing Connecting the Unconnected: A corporation and a non-profit joining to support a common cause It is NOT corporate sponsorship … much bigger than that

Connecting the Unconnected:

A corporation and a non-profit joining to support a common cause

It is NOT corporate sponsorship … much bigger than that

Cause Marketing: How Big? 1990 = $120 million 2007 = $1.44 Billion! Why? It works! Source: IEG Sponsorship Report

1990 = $120 million

2007 = $1.44 Billion!

Why?

It works!

Source: IEG Sponsorship Report

Impact of Cause Marketing Likelihood to switch brands = 87% Proud of my company’s values = 87% Purchased a product = 36% Told a friend or family member = 30% Source: Cone Inc.

Likelihood to switch brands = 87%

Proud of my company’s values = 87%

Purchased a product = 36%

Told a friend or family member = 30%

Source: Cone Inc.

Cause Marketing

Cause Marketing To get you thinking of the possibilities, here are some award-winning examples …

To get you thinking of the possibilities, here are some award-winning examples …

Example 1

Example 2

Example 3

Example 4

Life in art: Capturing yours & saving another Example 5 Wedding Photography: 1-time, expensive ($5,000+) purchase Donates portion of wedding fees to purchase one water filter in name of the couple Davis Photography & Thirst Relief International

Wedding Photography: 1-time, expensive ($5,000+) purchase

Donates portion of wedding fees to purchase one water filter in name of the couple

Connecting with Companies Think as they do Cause is another form of marketing Need to match their company needs, customer profiles and marketing goals Here’s one example: The KitchenAid brand from Whirlpool.

Think as they do

Cause is another form of marketing

Need to match their company needs, customer profiles and marketing goals

Here’s one example: The KitchenAid brand from Whirlpool.

Rigorous Market Evaluation

The Cause to Support

Products Support Cause

Results - KitchenAid Donations of $1 million + (double the prior year) Home Dinner Party Kit requests up 191% Publicity reached more than 82 million Increased KitchenAid brand loyalty Increased sales of KitchenAid “pink products”

Donations of $1 million + (double the prior year)

Home Dinner Party Kit requests up 191%

Publicity reached more than 82 million

Increased KitchenAid brand loyalty

Increased sales of KitchenAid “pink products”

McDonald’s and Ronald McDonald House CASE STUDY:

Ray Kroc founded McDonald’s in 1955 “We have an obligation to give back to the community that gives so much to us.” His philosophy was passed down through the years to franchise owners Background

Ray Kroc founded McDonald’s in 1955

“We have an obligation to give back to the community that gives so much to us.”

His philosophy was passed down through the years to franchise owners

Philadelphia 1974 Philadelphia Eagles’ player Fred Hill had a daughter who was being treated for Leukemia Eagles’ owner Leonard Tose recognized the need for families to have somewhere comfortable to stay The idea of a “home-away-from-home” was born

Philadelphia Eagles’ player Fred Hill had a daughter who was being treated for Leukemia

Eagles’ owner Leonard Tose recognized the need for families to have somewhere comfortable to stay

The idea of a “home-away-from-home” was born

Jim Murray, GM of the Eagles, approached McDonald’s local franchise owners McDonald’s reply – developed Shamrock Shake promotion where a quarter from every shake was donated but we want to call the home “Ronald McDonald House” Eagles and McDonald’s

Jim Murray, GM of the Eagles, approached McDonald’s local franchise owners

McDonald’s reply – developed Shamrock Shake promotion where a quarter from every shake was donated but we want to call the home “Ronald McDonald House”

More than 245 Ronald McDonald Houses in 26 countries More than 10 million families have stayed in a Ronald McDonald House Today

More than 245 Ronald McDonald Houses in 26 countries

More than 10 million families have stayed in a Ronald McDonald House

Key Learnings Make it personal – Tose saw a problem and simply wanted to help; McDonald’s owner/operators saw an opportunity to give back in the community Make it relevant – kids and families Create partnerships – McDonald’s franchise owners, employees, customers, local hospitals Consider execution – followed Ray Kroc’s belief “give back in communities where you do business” Deposits in the Trust Bank – McDonald’s is constantly defending its reputation

Make it personal – Tose saw a problem and simply wanted to help; McDonald’s owner/operators saw an opportunity to give back in the community

Make it relevant – kids and families

Create partnerships – McDonald’s franchise owners, employees, customers, local hospitals

Consider execution – followed Ray Kroc’s belief “give back in communities where you do business”

Deposits in the Trust Bank – McDonald’s is constantly defending its reputation

Case Study

Case Study: Trees for Troops Christmas Trees : 32.8 million households Kids in the home Memories/experience Fed Ex : Delivery & logistics Building reputation for community involvement U.S. Military Families : A need: separated from families at holidays A cause: delivering memories

Christmas Trees :

32.8 million households

Kids in the home

Memories/experience

Fed Ex :

Delivery & logistics

Building reputation for community involvement

U.S. Military Families :

A need: separated from families at holidays

A cause: delivering memories

11,854 Real Christmas Trees Delivered to 25 military locations in 17 countries Banners and posters provided to all locations Teddy bears and other gifts with the trees Coordinated international media coverage

11,854 Real Christmas Trees

Delivered to 25 military locations in 17 countries

Banners and posters provided to all locations

Teddy bears and other gifts with the trees

Coordinated international media coverage

A snapshot of media coverage

13.7 MILLION households said they saw, read or heard about Trees for Troops 3.6 MILLION households said T4T “influenced” their decision to purchase a Real Tree in 2006 Trees for Troops: Reach & Impact

2006 Trees for Troops 11,854 Family Memories

Key Learnings Make it Personal Make it Relevant Make it Transparent If you are the charity, own “the brand” Example, it is the Trees for Troops program NOT the FedEx Trees for Troops program Be clear on this (upfront) with corporate partners Create Partnerships Seek other Non-Competing partners Continuously refresh and update 7.5) Share the Passion

Make it Personal

Make it Relevant

Make it Transparent

If you are the charity, own “the brand”

Example, it is the Trees for Troops program NOT the FedEx Trees for Troops program

Be clear on this (upfront) with corporate partners

Create Partnerships

Seek other Non-Competing partners

Continuously refresh and update

7.5) Share the Passion