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1
Cause Marketing
Basics



2
Agenda

•   What, Why, When, Who & How effective
•   Where to start
•   Case studies
•   Lesson learned
•   The devil is in the detail
•   Resources




3
What, Why, When,
Who, How



4
Cause Marketing vs Sponsorship

• Cause-related
  sponsorship is a strategic
  positioning and marketing
  tool that links a company
  or brand to a relevant
  social cause or issue for
  mutual benefit.
• According to IEG, $1.55
  billion in 2009, a 2%
  increase over 2008.




5
Why Cause Marketing? A Nonprofit Perspective

• Generates unrestricted funding
  for the organization
• Increases visibility of the cause
  or nonprofit’s message
• In-kind donations
• Provides expertise in
  marketing, strategy and other
  experience
• Access to the corporation’s
  network of employees as
  volunteers
• Introduction to the
  corporation’s suppliers,
  distributors and other contacts

6
Why Cause Marketing? A For Profit Perspective

• Generates increased sales
• Develops customer loyalty
• Differentiates the brand
  from its competitors
• Enhances the corporations
  image




7
Why Cause Marketing? The Halo Effect

• 85% of Americans have a more
  positive image of a product or
  company when it supports a cause
• 79% would likely switch from one
  brand to another if the other brand
  is associated with a good cause
• 79% want to work for a company
  that cares how it impacts a society

Source: Cone Research




8
Why Cause Marketing? The Female Factor

•  81% of women are finding it more difficult
   to give to causes in a worsening
   economy.
• 69% of women look to companies to help
   them DO GOOD in difficult times.
• 80% of women concerned companies will
   cut back on their GOOD support.
Source: Self Magazine 2009

•  82% of women agree that “during a
   recession it’s still important for brands
   and companies to set aside money for a
   good cause or purpose.”
• 72% agree that “if a company has to cut
   back costs during a recession, it should
   not stop giving to good causes.”
Source: Edelman GoodPurpose Report 2008

    9
Why Cause Marketing? The Importance of Gen Y

                              Total Gen Y
Likely to switch brand with   79%   88%
cause
Have purchased product or     38%   51 %
service associated with a
cause (last 12 months)
Want to see a percentage of   28%   41%
purchase donated to a
charity




Source: Cone Research


10
When Did Cause Marketing Start?

• In 1983, each time the
  American Express card was
  used 1 penny donated to
  renovate Statue of Liberty

     $1.7 million raise, 28%
     increase in card usage




11
How Effective Is Cause Marketing?

• In 1997, Coca-Cola donated
  15 cents to MADD for every
  case of Coke bought in a 6-
  week promotion in more
  than 400 Wal-Mart stores.

     Coke sales in these stores
     increased 490% during the
     promotion.




12
How Effective Is Cause Marketing?

• The Calphalon Corporation
  co-branded several of its
  poorly-selling pans with the
  Share Our Strength name
  and logo and donated $5 to
  the nonprofit for every such
  pan sold.

     Sales of these pans
     increased 250%




13
Questions




14
Where to Start




15
Assess Your Readiness

•    Who is the internal team?
•    How does the board need to be involved?
•    Do you have a business friendly environment?
•    What is the team’s knowledge level about cause marketing?
•    Do you need training? Where will you get?
•    What assets do you have?




16
Know How and Why a Corporation Chooses a Cause




           • Increase sales
           • Increasing customer loyalty
           • Differentiate the corporation/brand
           • Increase access to markets
           • Enhance corporate/brand reputation by
             positioning it as a responsible, caring
             company/brand
           • Enhance employee recruitment and retention
           • Expand opportunities for employees to practice
             leadership and management

17
Understand Your Value Proposition

•    Determine which
     assets/capabilities that may be of
     value to corporations?
      – Do you have an excellent
        reputation and powerful
        mission?
      – Can you provide recognition,
        endorsements or awards?
      – Can you provide access to
        prospective customers to the
        corporation?
      – Do you have access to
        programs, projects and
        organizational expertise?
      – Can you distribute products,
        such as books or pamphlets for
        use as incentives or
        giveaways?
18
Getting Inside the Head of a Corporation

Remember its about them
• Who do they target?
• Are any products/services getting
  a special marketing push?
• About what causes are they
  passionate?
• Do they have a geographic focus?
• Do they have a preference in
  terms of the size organization with
  whom they work?




19
How to Find a Partner: Critical for Cause Marketing

•    Passion alignment
•    Match target markets
•    Product service fits
•    Geographic focus
•    Organization size
•    Research
      – News
      – Annual reports
      – Company websites
      – Lists of socially responsible
        companies


20
Questions




21
Case Studies




22
Global Public-Private Partnership for Handwashing With Soap


• Hispanics were an underserved
  market by P&G
• Hispanic women are more likely to
  die from breast cancer
• P&G brought screening to Texas
  supermarkets
• Tie-ins with local hospitals assured
  that women with suspicious films got
  follow-up care
• Expanded to Florida, Los Angeles,
  New York and Puerto Rico
• Exceeded P&G's payout goals by
  20%.



23
Dell and Goodwill Team Up on Computer Recycling

• Goodwill Industries of
  Pittsburgh and Dell introduced
  Reconnect Pittsburgh, a free
  drop-off program for recycling
  of unwanted computers
• Responsible recycling or reuse
  of computer equipment
• The goal of the program is to
  divert more than two million
  pounds of used computers and
  computer equipment from
  landfills over one year




24
Build-A-Bear Workshops and the World Wildlife Fund

• Build-A-Bear Workshop births a
  co-branded giraffe with World
  Wildlife Fund (WWF)
• It donates $1 to WWF for each
  giraffe sold
• The weekend of its arrival Build a
  Bear double the donation to WWF
  from $1 to $2
• The giraffe is the sixth in a series
  of stuffed animals that have helped
  to support WWF




25
Questions




26
Lessons Learned




27
Match Passions: Critical for Cause Marketing




                       Nonprofit


                   Cause       Corporation




28
Lessons Learned

• Match ideals and passions
• Make the program
  meaningful
• Seek out non competing
  partners
• Get to know each other
• Be transparent and
  accountable
• Determine who does what
• Be flexible
• Celebrate success



29
The Devil Is in
The Details



30
Pick a Partner Wisely: Critical for Cause Marketing

• Does your mission match the
  goals of the corporation?
• Does the corporation have a solid
  reputation?
• Does the corporation have a
  tradition of philanthropy or is this
  their first initiative?
• Look beyond the obvious benefits
  of money, business expertise and
  volunteers.
• Acknowledge the importance of
  chemistry.
• Do due diligence to find out about
  the corporation’s goals and
  reputation.
31
The Fine Print

BBB Standard 19
•    Clearly disclose how the charity
     benefits from the sale of products or
     services (i.e., cause-related marketing)
     that state or imply that a charity will
     benefit from a consumer sale or
     transaction. Such promotions should
     disclose, at the point of solicitation:
       – the actual or anticipated portion of
          the purchase price that will benefit
          the charity (e.g., 5 cents will be
          contributed to abc charity for
          every xyz company product sold)
       – the duration of the campaign (e.g.,
          the month of October),
       – any maximum or guaranteed
          minimum contribution amount
          (e.g., up to a maximum of
          $200,000).

32
Measurement: A Different Set of Metrics

Corporation
• Sales
• Brand awareness
• Media impressions
• Survey participants
• Public opinion polls




33
Manage the Relationship and Expectations:
Critical for Cause Marketing

• Mutual respect
• Listen
• Honest and open exchange of
  ideas and expectations
• Continually updating each
  other
• Determine what the
  relationship will look like
• Determine how the relationship
  will run
• Determine what results will be
  produced
• Get support from senior
  management on both sides

34
Develop a Game Plan: Critical for Cause Marketing

• Determine the scope of the
  relationship (paid, in-kind,
  volunteers)
• Determine who and how
  marketing outreach is being
  done
• Develop costs, timelines,
  roles and responsibilities




35
Get a Referral

• Having the door opened for you will save time and energy
• Use your Board, staff, friends, and volunteers
• Do cold calling as a last resort




36
First Steps

• Who’s on your team?
• Who will do what?
     –   asset evaluation
     –   corporate research
     –   writing the pitch
     –   presents
     –   corporate liaison
     –   implementation team
     –   evaluation
     –   feedback




37
Resources

• Cause Marketing Forum
  http://www.causemarketingforum.com/
• Consumer Behavior Study Confirms Cause-Related Marketing
  Can Exponentially Increase Sales
  http://www.businesswire.com/portal/site/google/?ndmViewId=n
  ews_view&newsId=20081001005317&newsLang=en
• 12 steps to creating a cause marketing campaign
  http://blog.drakeco.com/2008_06_01_archive.html
• Standard 19
  http://www.bbb.org/us/sitepage.aspx?id=ea10e84e-edc6-
  4b51-846c-92b29220113a
•


38
Questions




39

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Cause Marketing Basics

  • 1. 1
  • 3. Agenda • What, Why, When, Who & How effective • Where to start • Case studies • Lesson learned • The devil is in the detail • Resources 3
  • 5. Cause Marketing vs Sponsorship • Cause-related sponsorship is a strategic positioning and marketing tool that links a company or brand to a relevant social cause or issue for mutual benefit. • According to IEG, $1.55 billion in 2009, a 2% increase over 2008. 5
  • 6. Why Cause Marketing? A Nonprofit Perspective • Generates unrestricted funding for the organization • Increases visibility of the cause or nonprofit’s message • In-kind donations • Provides expertise in marketing, strategy and other experience • Access to the corporation’s network of employees as volunteers • Introduction to the corporation’s suppliers, distributors and other contacts 6
  • 7. Why Cause Marketing? A For Profit Perspective • Generates increased sales • Develops customer loyalty • Differentiates the brand from its competitors • Enhances the corporations image 7
  • 8. Why Cause Marketing? The Halo Effect • 85% of Americans have a more positive image of a product or company when it supports a cause • 79% would likely switch from one brand to another if the other brand is associated with a good cause • 79% want to work for a company that cares how it impacts a society Source: Cone Research 8
  • 9. Why Cause Marketing? The Female Factor • 81% of women are finding it more difficult to give to causes in a worsening economy. • 69% of women look to companies to help them DO GOOD in difficult times. • 80% of women concerned companies will cut back on their GOOD support. Source: Self Magazine 2009 • 82% of women agree that “during a recession it’s still important for brands and companies to set aside money for a good cause or purpose.” • 72% agree that “if a company has to cut back costs during a recession, it should not stop giving to good causes.” Source: Edelman GoodPurpose Report 2008 9
  • 10. Why Cause Marketing? The Importance of Gen Y Total Gen Y Likely to switch brand with 79% 88% cause Have purchased product or 38% 51 % service associated with a cause (last 12 months) Want to see a percentage of 28% 41% purchase donated to a charity Source: Cone Research 10
  • 11. When Did Cause Marketing Start? • In 1983, each time the American Express card was used 1 penny donated to renovate Statue of Liberty $1.7 million raise, 28% increase in card usage 11
  • 12. How Effective Is Cause Marketing? • In 1997, Coca-Cola donated 15 cents to MADD for every case of Coke bought in a 6- week promotion in more than 400 Wal-Mart stores. Coke sales in these stores increased 490% during the promotion. 12
  • 13. How Effective Is Cause Marketing? • The Calphalon Corporation co-branded several of its poorly-selling pans with the Share Our Strength name and logo and donated $5 to the nonprofit for every such pan sold. Sales of these pans increased 250% 13
  • 16. Assess Your Readiness • Who is the internal team? • How does the board need to be involved? • Do you have a business friendly environment? • What is the team’s knowledge level about cause marketing? • Do you need training? Where will you get? • What assets do you have? 16
  • 17. Know How and Why a Corporation Chooses a Cause • Increase sales • Increasing customer loyalty • Differentiate the corporation/brand • Increase access to markets • Enhance corporate/brand reputation by positioning it as a responsible, caring company/brand • Enhance employee recruitment and retention • Expand opportunities for employees to practice leadership and management 17
  • 18. Understand Your Value Proposition • Determine which assets/capabilities that may be of value to corporations? – Do you have an excellent reputation and powerful mission? – Can you provide recognition, endorsements or awards? – Can you provide access to prospective customers to the corporation? – Do you have access to programs, projects and organizational expertise? – Can you distribute products, such as books or pamphlets for use as incentives or giveaways? 18
  • 19. Getting Inside the Head of a Corporation Remember its about them • Who do they target? • Are any products/services getting a special marketing push? • About what causes are they passionate? • Do they have a geographic focus? • Do they have a preference in terms of the size organization with whom they work? 19
  • 20. How to Find a Partner: Critical for Cause Marketing • Passion alignment • Match target markets • Product service fits • Geographic focus • Organization size • Research – News – Annual reports – Company websites – Lists of socially responsible companies 20
  • 23. Global Public-Private Partnership for Handwashing With Soap • Hispanics were an underserved market by P&G • Hispanic women are more likely to die from breast cancer • P&G brought screening to Texas supermarkets • Tie-ins with local hospitals assured that women with suspicious films got follow-up care • Expanded to Florida, Los Angeles, New York and Puerto Rico • Exceeded P&G's payout goals by 20%. 23
  • 24. Dell and Goodwill Team Up on Computer Recycling • Goodwill Industries of Pittsburgh and Dell introduced Reconnect Pittsburgh, a free drop-off program for recycling of unwanted computers • Responsible recycling or reuse of computer equipment • The goal of the program is to divert more than two million pounds of used computers and computer equipment from landfills over one year 24
  • 25. Build-A-Bear Workshops and the World Wildlife Fund • Build-A-Bear Workshop births a co-branded giraffe with World Wildlife Fund (WWF) • It donates $1 to WWF for each giraffe sold • The weekend of its arrival Build a Bear double the donation to WWF from $1 to $2 • The giraffe is the sixth in a series of stuffed animals that have helped to support WWF 25
  • 28. Match Passions: Critical for Cause Marketing Nonprofit Cause Corporation 28
  • 29. Lessons Learned • Match ideals and passions • Make the program meaningful • Seek out non competing partners • Get to know each other • Be transparent and accountable • Determine who does what • Be flexible • Celebrate success 29
  • 30. The Devil Is in The Details 30
  • 31. Pick a Partner Wisely: Critical for Cause Marketing • Does your mission match the goals of the corporation? • Does the corporation have a solid reputation? • Does the corporation have a tradition of philanthropy or is this their first initiative? • Look beyond the obvious benefits of money, business expertise and volunteers. • Acknowledge the importance of chemistry. • Do due diligence to find out about the corporation’s goals and reputation. 31
  • 32. The Fine Print BBB Standard 19 • Clearly disclose how the charity benefits from the sale of products or services (i.e., cause-related marketing) that state or imply that a charity will benefit from a consumer sale or transaction. Such promotions should disclose, at the point of solicitation: – the actual or anticipated portion of the purchase price that will benefit the charity (e.g., 5 cents will be contributed to abc charity for every xyz company product sold) – the duration of the campaign (e.g., the month of October), – any maximum or guaranteed minimum contribution amount (e.g., up to a maximum of $200,000). 32
  • 33. Measurement: A Different Set of Metrics Corporation • Sales • Brand awareness • Media impressions • Survey participants • Public opinion polls 33
  • 34. Manage the Relationship and Expectations: Critical for Cause Marketing • Mutual respect • Listen • Honest and open exchange of ideas and expectations • Continually updating each other • Determine what the relationship will look like • Determine how the relationship will run • Determine what results will be produced • Get support from senior management on both sides 34
  • 35. Develop a Game Plan: Critical for Cause Marketing • Determine the scope of the relationship (paid, in-kind, volunteers) • Determine who and how marketing outreach is being done • Develop costs, timelines, roles and responsibilities 35
  • 36. Get a Referral • Having the door opened for you will save time and energy • Use your Board, staff, friends, and volunteers • Do cold calling as a last resort 36
  • 37. First Steps • Who’s on your team? • Who will do what? – asset evaluation – corporate research – writing the pitch – presents – corporate liaison – implementation team – evaluation – feedback 37
  • 38. Resources • Cause Marketing Forum http://www.causemarketingforum.com/ • Consumer Behavior Study Confirms Cause-Related Marketing Can Exponentially Increase Sales http://www.businesswire.com/portal/site/google/?ndmViewId=n ews_view&newsId=20081001005317&newsLang=en • 12 steps to creating a cause marketing campaign http://blog.drakeco.com/2008_06_01_archive.html • Standard 19 http://www.bbb.org/us/sitepage.aspx?id=ea10e84e-edc6- 4b51-846c-92b29220113a • 38