Cause Marketing's Dirty <br />Little Secret:<br />Transparency<br />Mike Lawrence, CRO & EVP  | Alison DaSilva, EVP  |  Ju...
Agenda<br /><ul><li>Why does transparency matter?
What does transparency mean?
Are you “cause”-ing confusion?
Roadmap to transparency</li></li></ul><li>?<br />Why Does <br />Transparency<br />					Matter<br />
Why Does Transparency Matter?<br /><ul><li>Lack of trust
Cause clutter
Consumers demand details
Everyone’s an activist
Regulatory environment</li></li></ul><li>Expectations Grow, Trust Declines<br />91%of the public wants to see corporations...
Cause Clutter<br />About 80%of <br />Fortune 250 companies have a branded cause program*<br />*Based on a 2010 evaluation ...
U.S. Consumers Demand Details<br />78%believe a partnership between a nonprofit and a company they trust makes a cause sta...
Everyone’s an Activist<br />44% would buy or boycott a company’s products to help influence corporate social/environmental...
Regulatory Environment<br />Is Cause Next?<br />“FTC to Fine Bloggers up to $11,000 for Not Disclosing Payments”<br />- Ma...
?<br />What Does <br />Transparency<br />					Mean<br />
What Does Transparency Mean?<br />Consumer Fraud Statutes:<br /><ul><li>Name of Commercial Co-Venture
Name of charity
Percentage of money donated to charity
Timeframe for promotion
Statement of charitable purpose
Maximum amount of donation
Toll-free number for more information about the program and the charity</li></ul>Better Business Bureau Standards:<br /><u...
The duration of the campaign
Any maximum or guaranteed minimum contribution amount</li></ul>State Reporting Requirements:<br /><ul><li>Name of the char...
Gross receipts collected pursuant to contract or agreement
Amounts paid to the charity to be utilized exclusively for the charitable purposes described in the solicitation
Amounts paid to the Commercial Co-Venturer and the professional solicitor
All additional expenses not otherwise stated</li></li></ul><li>Think Like A Consumer…<br />Ask:<br />“What exactly  is sup...
Spectrum of Transparency<br />- Proud sponsor of…<br />- Proud supporter of…<br />- A percentage of this purchase<br />…wi...
David Cause-Man’s Top Five Reasons Programs are Not Transparent…<br />5<br />We don’t want our competitors to realize our ...
David Cause-Man’s Top Five Reasons Programs are Not Transparent…<br />5<br />We don’t want our competitors to realize our ...
David Cause-Man’s Top Five Reasons Programs are Not Transparent…<br />5<br />We don’t want our competitors to realize our ...
David Cause-Man’s Top Five Reasons Programs are Not Transparent…<br />5<br />We don’t want our competitors to realize our ...
David Cause-Man’s Top Five Reasons Programs are Not Transparent…<br />5<br />We don’t want our competitors to realize our ...
?<br />Are You<br />“Cause”-ing<br />Confusion<br />
Ensure Point-of-Sale $$$ Clarity<br />Four products request…<br />“Join Us In Support” <br />of the <br />Jane Goodall Ins...
Ensure Point-of-Sale $$$ Clarity<br />On Pack: “Every purchase of this product helps the JGI…”<br />On Web: “Proceeds from...
Ensure Point-of-Sale $$$ Clarity<br />Outside Label: <br />“The partnership joining Theo Chocolate and the JGI directly be...
Ensure Point-of-Sale $$$ Clarity<br />Outside Label: <br />JGI logo but no details…<br />Web: <br />“The farms of the Kany...
Ensure Point-of-Sale $$$ Clarity<br />“10% of Profits Donated to the Jane Goodall Institute”<br />Box: <br />10% of profit...
Ensure Point-of-Sale $$$ Clarity<br />Allegro Coffee - $10,000-$20,000<br />Theo Chocolate - $5,000-$10,000<br />Late July...
Ensure Point-of-Sale Consumer Action Clarity<br />Icon reads: <br />“Early detection saves lives”<br />
Ensure Point-of-Sale Consumer Action Clarity<br />
Ensure Point-of-Sale Consumer Action Clarity<br />Front Panel Copy: <br />“Barnum’s Animals is supporting WWF with a donat...
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Transparency Issues in Cause Marketing

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Transparency Issues in Cause Marketing

  1. 1. Cause Marketing's Dirty <br />Little Secret:<br />Transparency<br />Mike Lawrence, CRO & EVP | Alison DaSilva, EVP | July 14, 2010<br />
  2. 2. Agenda<br /><ul><li>Why does transparency matter?
  3. 3. What does transparency mean?
  4. 4. Are you “cause”-ing confusion?
  5. 5. Roadmap to transparency</li></li></ul><li>?<br />Why Does <br />Transparency<br /> Matter<br />
  6. 6. Why Does Transparency Matter?<br /><ul><li>Lack of trust
  7. 7. Cause clutter
  8. 8. Consumers demand details
  9. 9. Everyone’s an activist
  10. 10. Regulatory environment</li></li></ul><li>Expectations Grow, Trust Declines<br />91%of the public wants to see corporations involved in helping solve the problems our nation faces. <br />Low Trust<br />Public perception that corporate reputation is either “not good” or “terrible” has skyrocketed since 2007 – with nearly <br />9 in 10<br />giving it a poor rating. <br />High <br />Expectations<br />2010 Public Strategies Trust Monitor<br />2009 Harris Interactive 10th Annual Reputation Quotient<br />
  11. 11. Cause Clutter<br />About 80%of <br />Fortune 250 companies have a branded cause program*<br />*Based on a 2010 evaluation conducted by Cone<br />
  12. 12. U.S. Consumers Demand Details<br />78%believe a partnership between a nonprofit and a company they trust makes a cause stand out<br />45%believe companies are providing enough details about their cause marketing efforts<br />67% are confused by the messages companies use to talk about their social and environmental commitments<br />2010 Cone Nonprofit Marketing Trend Tracker<br />2010 Cone Shared Responsibility Study<br />
  13. 13. Everyone’s an Activist<br />44% would buy or boycott a company’s products to help influence corporate social/environmental practices and initiatives<br />2010 Cone Shared Responsibility Study<br />
  14. 14. Regulatory Environment<br />Is Cause Next?<br />“FTC to Fine Bloggers up to $11,000 for Not Disclosing Payments”<br />- Mashable.com<br />“Federal Trade Commission takes aim at deceptive green claims”<br />- ConsumerReports.org<br />“Sustainable” palm oil campaign banned by ASA<br />- The Guardian<br />
  15. 15. ?<br />What Does <br />Transparency<br /> Mean<br />
  16. 16. What Does Transparency Mean?<br />Consumer Fraud Statutes:<br /><ul><li>Name of Commercial Co-Venture
  17. 17. Name of charity
  18. 18. Percentage of money donated to charity
  19. 19. Timeframe for promotion
  20. 20. Statement of charitable purpose
  21. 21. Maximum amount of donation
  22. 22. Toll-free number for more information about the program and the charity</li></ul>Better Business Bureau Standards:<br /><ul><li>The actual or anticipated portion of the purchase price that will benefit the charity
  23. 23. The duration of the campaign
  24. 24. Any maximum or guaranteed minimum contribution amount</li></ul>State Reporting Requirements:<br /><ul><li>Name of the charitable organization
  25. 25. Gross receipts collected pursuant to contract or agreement
  26. 26. Amounts paid to the charity to be utilized exclusively for the charitable purposes described in the solicitation
  27. 27. Amounts paid to the Commercial Co-Venturer and the professional solicitor
  28. 28. All additional expenses not otherwise stated</li></li></ul><li>Think Like A Consumer…<br />Ask:<br />“What exactly is supposed to happen when I buy this… <br />…and how will I know it did?”<br />
  29. 29. Spectrum of Transparency<br />- Proud sponsor of…<br />- Proud supporter of…<br />- A percentage of this purchase<br />…will be donated to save the whales<br />Vague <br />- $1 of every product, up to $500,000 of specially marked packages <br />…will be donated to our nonprofit partner, The Pacific Whale Foundation<br />- 50% of net profit<br />- 50% of profit<br />…will be donated to our nonprofit partner<br />Precise<br />
  30. 30. David Cause-Man’s Top Five Reasons Programs are Not Transparent…<br />5<br />We don’t want our competitors to realize our unit sales are so small my daughter sells more at her lemonade stand on our driveway…<br />
  31. 31. David Cause-Man’s Top Five Reasons Programs are Not Transparent…<br />5<br />We don’t want our competitors to realize our unit sales are so small my daughter sells more at her lemonade stand on our driveway…<br />4<br />We already made the donation, but we want our customers to believe they did it with their purchases…<br />
  32. 32. David Cause-Man’s Top Five Reasons Programs are Not Transparent…<br />5<br />We don’t want our competitors to realize our unit sales are so small my daughter sells more at her lemonade stand on our driveway…<br />4<br />We already made the donation, but we want our customers to believe they did it with their purchases…<br />3<br />The CMO blew our entire donation budget traveling to cause conferences, so we need consumer dollars to fund our brand halo (but we don’t want them to realize that)…<br />
  33. 33. David Cause-Man’s Top Five Reasons Programs are Not Transparent…<br />5<br />We don’t want our competitors to realize our unit sales are so small my daughter sells more at her lemonade stand on our driveway…<br />4<br />We already made the donation, but we want our customers to believe they did it with their purchases…<br />3<br />The CMO blew our entire donation budget traveling to cause conferences, so we need consumer dollars to fund our brand halo (but we don’t want them to realize that)…<br />2<br />That TV ad we did with Tiger Woods as our cause spokesman cost 100 times what we’ll give in donations. All hell will break loose if that gets out!<br />
  34. 34. David Cause-Man’s Top Five Reasons Programs are Not Transparent…<br />5<br />We don’t want our competitors to realize our unit sales are so small my daughter sells more at her lemonade stand on our driveway…<br />4<br />We already made the donation, but we want our customers to believe they did it with their purchases…<br />3<br />The CMO blew our entire donation budget traveling to cause conferences, so we need consumer dollars to fund our brand halo (but we don’t want them to realize that)…<br />2<br />That TV ad we did with Tiger Woods as our cause spokesman cost 100 times what we’ll give in donations. All hell will break loose if that gets out!<br />1<br />Our general counsel told us to plead the 5th amendment on this subject, but we can’t find enough space on the package to do it.<br />
  35. 35. ?<br />Are You<br />“Cause”-ing<br />Confusion<br />
  36. 36. Ensure Point-of-Sale $$$ Clarity<br />Four products request…<br />“Join Us In Support” <br />of the <br />Jane Goodall Institute (JGI)<br />
  37. 37. Ensure Point-of-Sale $$$ Clarity<br />On Pack: “Every purchase of this product helps the JGI…”<br />On Web: “Proceeds from each sale support JGI…”<br />
  38. 38. Ensure Point-of-Sale $$$ Clarity<br />Outside Label: <br />“The partnership joining Theo Chocolate and the JGI directly benefits farmers…”<br />Inside Label: <br />“Proceeds from the sale of this chocolate bar will…directly contribute to the JGI’s efforts…”<br />
  39. 39. Ensure Point-of-Sale $$$ Clarity<br />Outside Label: <br />JGI logo but no details…<br />Web: <br />“The farms of the Kanyovu co-op surround the Gombe Stream National Park. One goal of JGI is to protect the Gombe from deforestation…” <br />
  40. 40. Ensure Point-of-Sale $$$ Clarity<br />“10% of Profits Donated to the Jane Goodall Institute”<br />Box: <br />10% of profits to JGI<br />Web: <br />No additional financial details of JGI donations<br />
  41. 41. Ensure Point-of-Sale $$$ Clarity<br />Allegro Coffee - $10,000-$20,000<br />Theo Chocolate - $5,000-$10,000<br />Late July Cookies - In-kind<br />Rishi Tea - ????<br />
  42. 42. Ensure Point-of-Sale Consumer Action Clarity<br />Icon reads: <br />“Early detection saves lives”<br />
  43. 43. Ensure Point-of-Sale Consumer Action Clarity<br />
  44. 44. Ensure Point-of-Sale Consumer Action Clarity<br />Front Panel Copy: <br />“Barnum’s Animals is supporting WWF with a donation of $100,000.”<br />Back Panel Copy: “Fashion icon Lily Pulitzer is proud to work with KRAFT FOODS and NABISCO BARNUM’S ANIMALS Crackers in support of our friends at World Wildlife Fund.  Since 2007, Kraft Foods has contributed to tiger conservation in Sumatra by helping to support the Bukit BarisanSeletan Project program run by WWF.  There are approximately 400 Sumatra tigers still in existence, with an estimated 60 tigers living in the Bukit BarisanSeletan National Park.  In honor of 2010, the Year of the Tiger, BARNUM’S ANIMALS signature red boxes have been given a fashionable facelift by Lily Pulitzer, and NABISCO BARNUM’S ANIMALS Crackers will donate $100,000 to support WWF’s worldwide conservation efforts, including tiger conservation.  The folks at World Wildlife Fund work tirelessly around the globe to protect endangered species and habitats.  The tiger, listed as endangered, is the largest of all cats and considered one of the most majestic species on Earth.  To learn more, visit lilypulitzer.com and worldwildlife.org/tigers.”<br />
  45. 45. Communicate with Partners/Set Terms Up-Front<br />“Charity’s Share From Shopping Raises Concern “<br />“Unfortunately, just like Barneys shoppers, we’re in the dark as to how or if Barneys and the manufacturers will fulfill their commitment to donate a portion of the proceeds from these products to WWF.” <br />- John Donoghue<br /> SVP, WWF<br />
  46. 46. Communicate Beyond the Package<br />?<br />?<br />?<br />?<br />?<br />“I visited my local White Castle… to buy the $10 White Castle onion-and-burger-scented candle to benefit Autism Speaks. I figured I'd be in for the major marketing treatment. Instead I got two counter people who had no idea what I was talking about and a manager who didn't know where the candles were.”<br />- Ron Dicker<br />Writer, WalletPop.com<br />?<br />?<br />?<br />?<br />
  47. 47. Distinguish Endorsement vs. Logo “Lending”<br />The Club's Corporate Financial Acceptance Policy says, in part, "The Club will not endorse products."<br />
  48. 48. Expect to be Held Accountable for Results<br />“The (Sierra) Club has refused to release financial details of its arrangement with Clorox to the public or its members, citing the terms of its contract with Clorox as well as its own rules.”<br />“Sierra Club spokesperson Orli Cotel: ‘Our supporters can be assured that it is a significant contribution and is not restricted…’”<br /> – Fast Company, August 2008<br />
  49. 49. Expect to be Held Accountable for Results<br />Green Works® Natural Cleaners and Sierra Club® Celebrate Two-Year Anniversary; Doubling of Natural Cleaning Category <br />2009 Sales Generate $645,000 Contribution, Bringing Total Contribution to More Than $1.1 Million<br />OAKLAND, Calif., (March 1, 2010) - The Green Works® natural cleaners brand today announced that it is giving $645,000 to Sierra Club® to support the organization's ongoing conservation efforts. The donation, based on 2009 calendar year sales, raises the Green Works® brand's two-year contribution total to more than $1.1 million.<br />
  50. 50. Expect to be Held Accountable for Results<br />
  51. 51. Expect to be Held Accountable for Results<br />“We’ve picked out the top 5 questions…”<br />Question #1:<br />“How much money has been raised and where does it go?”<br />
  52. 52. Expect to be Held Accountable for Results<br />(RED) Campaign: No $$$ Breakout By Company<br />
  53. 53. Expect to be Held Accountable for Results<br />“(RED) works with the world’s best brands … and directs up to 50% of their gross profits to the Global Fund…”<br />“As of December 2009, (RED) partnerships with American Express (U.K. only), Apple, Bugaboo, Converse, Dell, Gap, Emporio Armani, Hallmark, Starbucks and Nike and (RED) events have generated more than US$140 million for the Global Fund. (RED) money flows to four countries in Africa - Rwanda, Swaziland, Ghana and Lesotho.”<br />Global Fund: <br />No $$$ Breakout By Company<br />
  54. 54. Expect to be Held Accountable for Results<br />“Apple gives a portion of the purchase price to the Global Fund…”<br />“…proceeds from every iPod nano sold go directly to the Global Fund...”<br />“…direct up to 50 percent of gross profits from the sale of those products to the Global Fund…”<br />Apple: <br />No contribution update since 2006 news release promising to donate $10 per RED iPod sold <br />
  55. 55. Expect to be Held Accountable for Results<br />“With your help, we've already generated contributions equaling more than 14,000,000 days of medicine.”<br />2009 Starbucks Global Responsibility Report: “Our cash and in‑kind contributions… including volunteer service, youth engagement, natural disaster relief, (RED)™, and other efforts – totaled more than $17 million."<br />
  56. 56. Roadmap to<br />Transparency<br />
  57. 57. Roadmap to Transparency<br />Start<br />
  58. 58. Roadmap to Transparency<br />Engage Employees<br /><ul><li> Training Materials
  59. 59. Source for More Information</li></ul>Define Partnership Terms<br />Communicate to Consumers<br /><ul><li> On-pack
  60. 60. Online
  61. 61. In-store
  62. 62. Clear & Consistent
  63. 63. Timeframe
  64. 64. Contribution
  65. 65. How Activated
  66. 66. Cap</li></ul>Report Impacts<br /><ul><li> Amount Raised
  67. 67. People Helped</li></ul>Start<br />
  68. 68. Roadmap to Transparency<br />Engage Employees<br /><ul><li> Training Materials
  69. 69. Source for More Information</li></ul>Define Partnership Terms<br />Communicate to Consumers<br /><ul><li> On-pack
  70. 70. Online
  71. 71. In-store
  72. 72. Clear & Consistent
  73. 73. Timeframe
  74. 74. Contribution
  75. 75. How Activated
  76. 76. Cap</li></ul>Report Impacts<br /><ul><li> Amount Raised
  77. 77. People Helped</li></ul>Start<br />
  78. 78. Mike Lawrence<br />Chief Reputation Officer & EVP<br />MLawrence@coneinc.com<br />617-939-8328<br />Twitter: @Mike_Lawrence<br />Alison DaSilva<br />Executive Vice President<br />ADaSilva@coneinc.com<br />617-939-8360<br />Twitter: @Alison_DaSilva <br />www.coneinc.com<br />www.coneinc.com/whatdoyoustandfor<br />

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