- 1 -
IMC 624
Cause Marketing
Prof. Furlow
3/7/14
Assignment: Week #9
Case Study: Hanes For Good
Figure 1 Retrieved from f...
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Introduction
According to a recent NPR report, there are more than 610,000 homeless people living in the
United Stat...
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revolutionized tagless t-shirts and underwear and also invented the sports bra (Out company,
2014).
Hanes brings in ...
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towards corporate philanthropy to improve the communities across the world where it has
offices and facilities (Our ...
- 5 -
increasingly tying social media to its cause. “Over  the  past  five  years,  Hanes  has  donated  2.7  
million soc...
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(Grumet, 2013, pg. 1). Hanes utilizes a combination of Facebook, Twitter and YouTube to
promote its causes, most esp...
- 7 -
Moreover, Invisible  People’s  founder  and  spokesperson,  Mark  Horvath,  guest  blogs  for  some  
online  outlet...
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Volunteer Efforts
In addition to its corporate social responsibility efforts, Hanes also integrates employee
develop...
- 9 -
Although Hanes does a nice job at working in sustainability within its business practices and
operations, while also...
- 10 -
workforce by 2020. A Pew Research Center study found that millennials place high priority on
helping those in need,...
- 11 -
Sources
About. (2013). InsvisiblePeople.org. Retrieved on March 3, 2014 from
http://invisiblepeople.tv/blog/about/
...
- 12 -
Those In Need. (2013, December 17). Cause Marketing Forum. Retrieved on March 1,
2014 from
http://www.causemarketin...
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3, 2014 from http://www.triplepundit.com/2012/06/roi-employee-volunteering/
The Salvation Army. (2013, November). F...
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"Hanes for Good" Case Study

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Case study on the cause marketing effort of "Hanes for Good" from HanesBrand Inc. West Virginia University's Integrated Marketing Communication master's program. Spring 2014.

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Transcript of ""Hanes for Good" Case Study"

  1. 1. - 1 - IMC 624 Cause Marketing Prof. Furlow 3/7/14 Assignment: Week #9 Case Study: Hanes For Good Figure 1 Retrieved from facebook.com/hanes
  2. 2. - 2 - Introduction According to a recent NPR report, there are more than 610,000 homeless people living in the United States, 222,000 of which are family members (Chappell, 2013). We often see charity programs for donating food to the poor, but another basic necessity that is equally as important is clothing. Hanesbrand, through its popular sock brand Hanes, works to donate millions of socks to those in need during the holiday season each year. In partnership with the Salvation Army and Invisible People, Hanes uses social media to propel its message of #HanesForGood to provide millions of these products to those in need. In addition to the yearly giving effort, HanesBrand also participated in other corporate social responsibility work around sustainability and disaster relief to help improve and maintain its strong reputation while donating time, efforts and funds towards meaningful and strategic causes. About the Company Hanesbrand is one of the most recognized undergarment companies in the U.S. Some of its top brands include Hanes, Champion, Playtex, Bali, Maidenform, Flexees, JMS/Just My Size, barely there, Wonderbra and Gear for Sports. The company mainly focuses on the U.S., Canada and Mexico but also serves some select markets in Europe and Asia as well (Our company, 2014). The company was founded in 1901 and is based out of Winston-Salem, NC. Hanes sells bras, panties, hosiery, underwear, socks, t-shirts and activewear. They are the market leader of intimate apparent. According to its company profile, more than 80% of U.S. households have Hanes products in them. Innovation has been a primary growth factor for the company as it
  3. 3. - 3 - revolutionized tagless t-shirts and underwear and also invented the sports bra (Out company, 2014). Hanes brings in 4.6 billion annually and it continues to see success in terms of profit.  “Shares  of   Hanes are up more than 90% in the past year, as the company benefited from the Maidenform acquisition, lower cotton costs and newer, technical products like its Vapor quick-dry fabric and Smart  Size  bras”  (Banjo,  2014,  pg.  1). With 51,500 employees across 25 countries, Hanes is listed at Number 512 on the list of Fortune 1000 companies (Our company, 2014). Hanes uses its size, in terms of both reputation and employees, to partner with a number of non-profit to push its social initiatives. Specifically, its recent partnerships with the Salvation Army and Invisible People have become a primary focus, especially during the holidays. This work, in turn, helps to improve its reputation and assist in long-term sales growth. About the Cause Hanes has worked hard in recent years, devoting both time and money to its ethical business initiatives.  Dubbed  “Hanes  for  Good,”  the  company  participates in a number of strategic cause- related efforts that reflect its mission and brand positioning. According to its company bio, Hanes is a U.S. Environmental Protection Agency Energy Star winner for 2013 as well as being U.S. Green Building Council certified. In fact, Newsweek named the company on the list of Top 500 greenest U.S. companies for its work towards reducing energy use, carbon emissions and water use for a more sustainable environment. The company has also devoted much work
  4. 4. - 4 - towards corporate philanthropy to improve the communities across the world where it has offices and facilities (Our company, 2013). One of Hanesbrand’s biggest cause-related campaigns each year is its partnership with the Salvation Army and Invisible People to supply the homeless with Hanes socks. The Salvation Army, founded in the late 1800s, is the second largest charity in the U.S. (only behind the United Way) and serves a variety of community members in need of food, clothing and shelter (The Salvation Army, 2013). Meanwhile, Invisible People is a non-profit that was started in just 2008 by Mark Horvath, a former homeless individual who became devoted to giving homeless individuals in America a voice. By using video, blogging and social media, the non-profit works to raise awareness of the homeless issues in our country while also raising funds at the same time (About, 2013). By strategically teaming with these organizations, Hanes is able to latch onto a very large organization (Salvation Army) while also helping promote a smaller, up-and- coming non-profit (Invisible People). At the same time, both groups  are  tied  closely  to  Hanes’ initiative to reach the homeless with its sock products, a much-need and requested items among these needy individuals. In turn, this reflects positively in the eyes of its consumers. Hanes  is  America’s  No.  1  sock  brand.  Based  on  this feat (pun intended), it chooses to spread holiday comfort and cheer by donating 250,000 pairs of socks to the homeless in various homeless shelters in New York and California. The socks are distributed by The Salvation Army, with marketing support from Invisible People (Hanes Celebrates The Holiday Season, 2013, pg. 1). This past winter was the fifth year that Hanes embarked on this campaign and it has been
  5. 5. - 5 - increasingly tying social media to its cause. “Over  the  past  five  years,  Hanes  has  donated  2.7   million socks to the needy at the holidays…To share a story about providing comfort this holiday  season  or  join  the  conversation,  follow  #HanesforGood  throughout  the  holiday  season”   (Hanes Celebrates The Holiday Season, 2013, pg. 1). Overall, Hanes is very progressive in the marketing of its social initiatives. This includes its more CSR-focused campaigns related to the environment and sustainability, as well as its annual consumer-oriented cause in giving socks to homeless people. Cause Marketing Tactics Hanes manages a number of marketing tactics to help promote its cause-related initiatives. The first is a website devoted solely to the efforts. The easily recalled URL, hanesforgood.com, fits the overarching name of their goodwill efforts. The site features facts, videos and articles to inform key publics about their environmental and social campaigns. This  acts  as  a  “homebase”   for all the work that they do. They leverage this through online communication and drive end users and stakeholders here to learn more about their causes. Press releases are one prime example that link to this site. Secondly, Hanes is keen on using social media to further the reach of its cause-related efforts. Author and lawyer Andrew Grumet shares his insight into the benefits of new media in assisting with social initiatives. “Cause-related marketing programs are constantly evolving, particularly since the development of the internet. Creative companies have, with increasing frequency, designed  new  programs  incorporating  the  web  and  social  media  to  motivate  participation”
  6. 6. - 6 - (Grumet, 2013, pg. 1). Hanes utilizes a combination of Facebook, Twitter and YouTube to promote its causes, most especially its sock drive. By using the hashtag #HanesForGood, it can monitor and interact with social media users who are getting involved in discussion, asking questions  or  praising  the  efforts.  Specifically,  they’ve  posted  pictures  of  homeless  individuals during the campaign. Tagged with #HanesForGood, the caption includes a quote from the people about their experiences and challenges. The photos have generated thousands of likes and comments (Hanes, 2013). “What's  so  amazing,  and  what  makes  this  a  genuine  cause   campaign, is there is no commercial anything attached. Hanes is just giving the socks away…Plus,  Hanes  created  a  social  media  campaign  that  showed  real  homeless  numbers  and   helped  share  the  stories  of  real  people  experiencing  homelessness”  (Horvath,  2013,  pg.  1). Finally, Hanes incorporates media outreach and public relations into its efforts to raise awareness for the cause and help strengthen its image. Not only does Hanes itself engage in media outreach, but it relies on its partners the Salvation Army and Invisible People to do the same. In fact, the two non-profits write their own blog posts and post their videos, respectively, which are picked up by third party sources and shared on the social web. Media sites, like Huffington Post, as well as various online bloggers have covered the campaign and wrote about the  company’s  support  for  homelessness  relief.  One  blogger,  Megan,  wrote:  “Even though folks served by The Salvation Army may have greater needs such as shelter or food, they consistently get excited when offered a new pair of socks. Because honestly, nothing feels as good as a new pair,  especially  for  someone  used  to  wearing  damaged,  dirty  or  no  socks  at  all”  (Megan   (blogger), 2013), pg. 1).
  7. 7. - 7 - Moreover, Invisible  People’s  founder  and  spokesperson,  Mark  Horvath,  guest  blogs  for  some   online  outlets,  sharing  his  experiences  with  being  homeless  while  also  plugging  Hanes’   campaign. “I’ve  been  homeless  myself…Socks are like gold to the homeless. Most people don’t   think about having cleans socks.  We  take  it  for  granted…Socks are the most requested but least donated  item  needed  at  shelters”  (Waters,  2013,  pg.  1). These media hits help push the message for the sock campaign and help consumers connect Hanes with this cause. Hanes distributes press releases before and after the holiday season in connection to the campaign, as well as using public relations work to promote its sustainability and volunteer programs throughout the year. Charity Giving In addition to its planned social initiatives, Hanes has also been quick to react to current events with charity giving that is in line with its mission. After Hurricane Sandy, which left thousands stranded outside of their homes without food and clothing, Hanes responded with efforts similar  to  its  annual  sock  giving.  “HanesBrands  partnered  with  Fashion  Delivers  to  provide  more   than $1 million worth of apparel to the regions most affected by the storm. Fashion Delivers is a New York-based nonprofit organization that distributes apparel and home furnishings to victims of  natural  disasters  around  the  world”  (Hanes  and  the  Salvation  Army,  2012,  pg.  1).  This  move   by the company helped strengthen its image, while demonstrating more authenticity and passion when it comes to helping those in need.
  8. 8. - 8 - Volunteer Efforts In addition to its corporate social responsibility efforts, Hanes also integrates employee development and employee volunteerism within its cause-related  efforts.  “Each  year,   Hanesbrands and its employees support a number of educational initiatives that improve the lives of children by volunteering their time in local schools. For example, each year, more than 60 Hanesbrands employees volunteer at Carver High School in our hometown of Winston- Salem,  N.C.” (Employee development, 2013, pg. 1). Through the volunteer programs, Hanes not only gives back and helps educate local students in its communities, but camaraderie is built throughout the company and the goodwill effort is able to be used within public relations programs, helping to continue enhancing corporate image. “These  programs  help  to  build   brand awareness and affinity, while strengthening trust and loyalty among customers. They put a human face on the company, reinforcing the idea that the company is comprised of real people  that  just  happen  to  be  organized  around  a  particular  product  or  service…Employees  that   volunteer tend to experience greater job satisfaction, and improved morale (Siegel, 2012, pg. 1). In addition, Hanesbrand pays for many of its employees overseas to return to school to earn their diplomas, as well as working with students in the North Carolina area (where its headquarters are based) as mentors to aspiring textile scientists (Employee development, 2013, pg. 1). Recommendations “Developed  and  executed  correctly,  cause  branding  is  a  strategy  to  differentiate  a  brand  from   its  competitors  and  positively  impact  a  brand’s corporate reputation”  (Rama,  2011,  pg.  44).  
  9. 9. - 9 - Although Hanes does a nice job at working in sustainability within its business practices and operations, while also engaging in a number of employee programs and charity given, there are several ways it can improve its cause-related marketing activities. The first is a corporate driven recommendation. Although sustainability and environmental consciousness are great causes, they  aren’t  too  closely  aligned  with  Hanes  and  its  products.  Instead,  Hanes  should  focus  more   on causes like its sock drive with the Salvation Army and Invisible People. Rather than just making this a holiday special, Hanes could build this out to become its primary ongoing cause all year long. By contributing regularly, Hanes could enhance the level of press mentions and social media buzz surrounding the campaign, and affect more homeless people at the same time. Additionally, it could get consumers involved through a BOGO effort (Buy One Give One), where for every sock order placed online through its website, it will donate a package of socks to homeless charities. This would allow more customers to get involved and play a role within the campaign. At the same time, Hanes could form an even closer partnership with the Salvation Army and invisible People and work to develop content, like videos and blog posts, which speak to the cause and help further the reach of the non-profits’ messages. Eventually, Hanes would be tied seamlessly to the cause of fighting homelessness in America, a much more strategic cause that environment friendliness. Secondly, Hanes should look to the market for ways to adjust and improve upon its current campaigns. According to Forbes, there are roughly 80 million Americans who belong to the millennial generation, ages 18-35, who are expected to become the largest demographic in the
  10. 10. - 10 - workforce by 2020. A Pew Research Center study found that millennials place high priority on helping those in need, even more than high paying jobs. They value committees and like using company time to do good (Goudreau, 2013). With that market data, Hanes should focus its causes on efforts where millennials can relate. This could be a volunteer program where employees can hand deliver the free socks to the local charities, or an employee support program where workers can turn vacation time into dollars that are donated towards the cause. By reacting to the changing landscape and demographics of the workforce, Hanes can develop initiatives that are long-lasting and can be executed for many years to come. This can also play a role in recruitment, helping to bring in quality employees into the company. Conclusion Hanesbrand boasts some of the best-selling undergarment products in the country. But its marketing  doesn’t  solely  revolve  around  TV  commercials  and  an  endorsement  with  NBA  legend   Michael Jordan. The large corporation also participates in cause marketing initiatives to strengthen its image and boost sales in the long term. Through both environmental and social efforts, Hanes ties itself to large societal causes while making strides to make a difference. More specifically, each year the brand makes an effort to donate hundreds of thousands of socks to the homeless in a strategically executed campaign tied to social media and non-profit partners Salvation Army and Invisible People. The yearly campaign has helped raise awareness for the homeless in our country while providing millions with much-needed holiday gifts.
  11. 11. - 11 - Sources About. (2013). InsvisiblePeople.org. Retrieved on March 3, 2014 from http://invisiblepeople.tv/blog/about/ Banjo, S. (2014, February 27). Hanes ready to try on more deals. Wall Street Journal. Retrieved on March 1, 2014 from http://blogs.wsj.com/moneybeat/2014/02/27/hanes-ready-to- try-on-more-deals/ Chappell,  B.  (2013,  November  21).  Number  of  homeless  declines  again,  but  gains  aren’t   universal. NPR. Retrieved on February 24, 2014 from http://www.npr.org/blogs/thetwo- way/2013/11/21/246589487/number-of-homeless-declines-again-but-gains-arent- universal Employee development. (2013). Hanesbrandcsr.com. Retrieved on March 3, 2014 from http://www.hanesbrandscsr.com/employee-development.html Goudreau, J. (2013, March 7). 7 surprising ways to motivate Millennial workers. Forbes. Retrieved on March 6, 2014 from http://www.forbes.com/sites/jennagoudreau/2013/03/07/7-surprising-ways-to- motivate-millennial-workers/ Grumet, A. (2013, Mar/Apr). Cause marketing done right. Corporate Board, Vol. 34, Issue 199. Retrieved on March 1, 2014 from EbscoHost Research Databases Hanes. (2013, December 12). Facebook.com. Retrieved on March 6, 2014 from https://www.facebook.com/hanes Hanes Celebrates The Holiday Season By Donating Half A Million Socks To Charities Helping
  12. 12. - 12 - Those In Need. (2013, December 17). Cause Marketing Forum. Retrieved on March 1, 2014 from http://www.causemarketingforum.com/site/apps/nlnet/content2.aspx?c=bkLUKcOTLkK 4E&b=6430205&ct=13536481&notoc=1 Hanes and The Salvation Army Launch Fourth Annual Sock Drive. (2012, December 12). Hanes. Retrieved on March 1, 2014 from http://ir.hanesbrands.com/phoenix.zhtml?c=200600&p=irol- newsArticle&ID=1765445&highlight Horvath, M. (2013, December 22). Coke gave us Santa, Hanes is helping to fight homelessness. Huffington Post. Retrieved on March 1, 2014 from http://www.huffingtonpost.com/mark-horvath/coke-gave-us-santa- hanes_b_4490471.html Megan (blogger). (2013, December 11). Hanes sock donation warms the hearts & feets of shelter residents. The Salvation Army. Retrieved on March 1, 2014 from http://blog.salvationarmyusa.org/2013/12/11/hanes-sock-donation-warms-the-hearts- feet-of-shelter-residents/ Our Company. (2014). Hanes. Retrieved on March 1, 2014 from http://www.hanes.com/corporate Rama, P. (2011, May). Cause branding and its impact on corporate image. Journal of Marketing & Communication, Vol. 7, Issue 1. Retrieved on March 1, 2014 from EbscoHost Research Databases Siegel,  R.  (2012,  June  5).  The  “ROI”  of  employee  volunteering.  Triple Pundit. Retrieved on March
  13. 13. - 13 - 3, 2014 from http://www.triplepundit.com/2012/06/roi-employee-volunteering/ The Salvation Army. (2013, November). Forbes. Retrieved on March 3, 2014 from http://www.forbes.com/companies/salvation-army/ Waters, J.(2013, December 24). I hope you get socks for Christmas. Fundraising with Businesses. Retrieved on February 25, 2014 from https://medium.com/nonprofit-for-profit- partnerships/b8f951b62c38

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