Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

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Step-by-step look at cause marketing including examples and a case study. The presentation is designed to introduce the agricultural marketing community to cause marketing concepts.

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  • Confession – Because a cause advocate by accident! Story re CSF – FedEx – T4T
  • Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

    1. 1. Moving From Win-Win to Win-Win-Win with Cause Marketing Steve Drake President, Drake & Company April 17, 2009 © 2009 Drake & Company
    2. 2. Today’s Goals <ul><li>Demonstrate how cause marketing can achieve your overall marketing objectives. </li></ul><ul><li>Share cause marketing basics & practices </li></ul><ul><li>Use examples & a case study to increase understanding </li></ul>While growing rapidly in most sectors, “ag sector” shows limited use of cause marketing. As the “causeaholic,” my goal is to change that!
    3. 3. What? Cause Non-Profit Corporate Partners Association Partner <ul><ul><li>A for profit and a not-for-profit combining efforts for purpose, passion and profit. </li></ul></ul>$ Basics
    4. 4. Examples
    5. 5. Loads of Hope New Orleans, San Diego, Galveston, Waterloo: 30,000 loads to date Examples
    6. 6. Sam’s, Aquafina & KAB 37 Million bottles; $300,000; 100,000 fleece jackets! Examples
    7. 7. Bread Art Project <ul><li>Digital campaign </li></ul>Milling & Baking Industry Donated $50,000 to Feeding America + $1 per submission up to $50,000 Examples
    8. 8. Target & St. Jude 200,000 purchased; $300,000 to St. Jude Examples
    9. 9. Colgate & RIF $800,000 + 58,000 books since 2004 Examples
    10. 10. Be a <ul><li>Program: </li></ul><ul><li>$5 donation to USO operation </li></ul><ul><li>Per FMC booth visitor </li></ul>1,477 participants; $7,385; 296 USO care packages Examples
    11. 11. National Geographic Kids – Cotton Inc Guinness record by turning old jeans into home insulation Examples
    12. 12. Basics
    13. 13. Why? <ul><ul><li>85% of Americans more positive </li></ul></ul><ul><ul><li>79% would likely switch brands </li></ul></ul><ul><ul><li>79% want to work for a company that cares </li></ul></ul><ul><li>Increased Sales, Profits & Funding: </li></ul>Source: 2008 Cone/Duke University Behavioral Cause Study Basics
    14. 14. Why? Trying to reach Generation Y? Source: 2008 Cone/Duke University Behavioral Cause Study Basics
    15. 15. Benefits <ul><ul><li>Create awareness to advance your strategy </li></ul></ul><ul><ul><li>Increase customer loyalty and sales </li></ul></ul><ul><ul><li>Engage employees and stakeholders </li></ul></ul><ul><ul><li>For Companies: </li></ul></ul>Basics
    16. 16. Why? <ul><ul><li>Create awareness to advance your mission </li></ul></ul><ul><ul><li>Generate funding for your organization and/or cause </li></ul></ul><ul><ul><li>Create local advocates, engage members and donors </li></ul></ul><ul><ul><li>For Associations & Non-Profits: </li></ul></ul>Basics
    17. 17. Why? <ul><ul><li>Top “issues” for causes: </li></ul></ul><ul><ul><ul><li>education </li></ul></ul></ul><ul><ul><ul><li>economic development </li></ul></ul></ul><ul><ul><ul><li>health & disease </li></ul></ul></ul><ul><ul><ul><li>access to clean water </li></ul></ul></ul>Basics
    18. 18. Finding Partners? <ul><li>“ Frame” your search: </li></ul><ul><ul><li>“ Size” </li></ul></ul><ul><ul><li>“ Geographic scope” </li></ul></ul><ul><ul><li>“ Product” or “Service” </li></ul></ul><ul><ul><li>“ Philosophy” </li></ul></ul><ul><ul><li>Look for non-profits with a parallel cause </li></ul></ul><ul><ul><li>Look for charity / non-profit with a mission for which your customers would have a passion </li></ul></ul>Basics
    19. 19. How – Cause Types <ul><li>What “tools” can be used to implement the cause? </li></ul><ul><ul><li>Social / Public Service marketing </li></ul></ul><ul><ul><li>Purchase Plus </li></ul></ul><ul><ul><li>Product sales </li></ul></ul><ul><ul><li>Product licensing </li></ul></ul><ul><ul><li>Promotional campaign </li></ul></ul><ul><ul><li>Co-branded program </li></ul></ul><ul><ul><li>Co-branded events (runs, rides, auctions, golf, etc.) </li></ul></ul>Basics
    20. 20. Measurement & Metrics <ul><li>Use same measurement tools as other marketing: </li></ul><ul><li>Media impressions </li></ul><ul><li>Customer Loyalty Index </li></ul><ul><li>Sales </li></ul><ul><li>Numbers engaged in programs </li></ul><ul><li>Dollars generated </li></ul>Basics
    21. 21. Measurement & Evaluation Basics
    22. 22. Practice
    23. 23. Case Study
    24. 24. The Challenge Trees to troops Practice
    25. 25. Who? Cause: Military families Practice
    26. 26. The Program <ul><li>10,000 - 12,000 trees </li></ul><ul><li>Local media </li></ul>Coordination & Fund-raising 4,000 – 6,000 trees from consumers & retailers Fed Ex : 59,000+ miles + 10,000 air miles + volunteers 53 bases 17,000 families Practice
    27. 27. Power of Cause Marketing http://www.msnbc.msn.com/id/3032619/#2821063
    28. 28. 23.4 MILLION households said they saw, read or heard about Trees for Troops Reach & Impact 2008 Trees for Troops 3.4 MILLION households said T4T “influenced” their decision to purchase a Real Tree in 2008 Practice
    29. 29. <ul><li>During the past holiday season, did you read, see, or hear anything about the Trees for Troops program though which Christmas trees were being donated to troops and their families and being delivered to military bases by FedEx? </li></ul>Reach & Impact Practice
    30. 30. <ul><li>50,554 military families received farm-grown Christmas trees </li></ul><ul><li>53 military locations </li></ul><ul><li>17 countries </li></ul><ul><li>international media coverage </li></ul>Summary Practice
    31. 31. Evaluating (CSF perspective) <ul><li>Delivered fresh, farm-grown trees to 50,554 families </li></ul><ul><li>Generate $1 million (cash & in-kind) per year </li></ul><ul><li>Create millions of media impressions </li></ul><ul><li>Reached 23 million U.S. households </li></ul><ul><li>Engaged 71% of organization’s members </li></ul><ul><li>Earned three national awards </li></ul><ul><li>Cost: 1,200 - 1,400 staff hours and $10,000 ± expenses </li></ul>What other program could generate this much local and national (positive) media coverage? Practice
    32. 32. Key Learnings <ul><li>Make it personal </li></ul><ul><li>Make it relevant </li></ul><ul><li>Make it transparent </li></ul><ul><li>If you are the charity, own “the brand” </li></ul><ul><li>Create partnerships / alliances </li></ul><ul><li>Seek other non-competing partners </li></ul><ul><li>Continuously refresh and update </li></ul>8) Share the passion Practice
    33. 33. 12 Steps to Cause Marketing <ul><li>Select cause </li></ul><ul><ul><li>Harmony (with mission) is key </li></ul></ul><ul><li>Make it personal </li></ul><ul><ul><li>For donors, members, employees </li></ul></ul><ul><li>Decide on partner(s) </li></ul><ul><ul><li>Big or small pond? </li></ul></ul><ul><li>Understand each other </li></ul><ul><ul><li>You own your brand </li></ul></ul><ul><li>Disclose special arrangements </li></ul><ul><ul><li>Transparency </li></ul></ul><ul><ul><li>Who is doing the PR? </li></ul></ul><ul><li>Determine which form </li></ul><ul><ul><li>See list of types of cause programs </li></ul></ul><ul><li>Develop PR support plan </li></ul><ul><ul><li>Get recognized for doing good </li></ul></ul><ul><li>Establish metrics </li></ul><ul><ul><li>Measure your marketing </li></ul></ul><ul><li>Refresh & update </li></ul><ul><ul><li>Continuous improvement </li></ul></ul><ul><li>Be flexible </li></ul><ul><ul><li>Change on fly if needed </li></ul></ul><ul><li>Review & evaluate </li></ul><ul><ul><li>Set a date on when you will review and renew </li></ul></ul><ul><li>Take time to celebrate </li></ul><ul><ul><li>Build celebration into your campaign </li></ul></ul><ul><ul><li>Include volunteers, partners, staff, etc. </li></ul></ul>Basics
    34. 34. Resources : <ul><li>12 Steps to Successful Cause Marketing http://blog.drakeco.com/2008_06_01_archive.html </li></ul><ul><li>Cone-Duke Research http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20081001005317&newsLang=en </li></ul><ul><li>2008 Cause Study, PR Week http://barkleyus.com/articles/show/43-pr_week_cause_survey_2008# </li></ul><ul><li>Highlights & case studies http://www.causeaholic.com </li></ul>
    35. 35. <ul><ul><ul><ul><ul><li>Contact Information: </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Steve Drake </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>President, Drake & Company </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Phone: 636-449-5050 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>E-mail: [email_address] </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Twitter: http://twitter.com/causeaholic </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Website: www.drakeco.com </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Blog: http://www.causeaholic.com </li></ul></ul></ul></ul></ul>

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