Cause Branding and Social Marketing
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Cause Branding and Social Marketing Kristian Darigan Vice President, Cause Branding - Cone [email protected] Check out my blog at: www.doyoustandforsomething.com Our Profile Market Position: 28 year-old, globally-recognized strategy and communications agency Mission: Helping organizations build trusted relationships with their key stakeholders Strengths: 100+ professionals with expertise in: Cause BrandingTM Corporate Responsibility Brand Marketing Crisis Prevention and Management Affiliation: Member of The Omnicom Group (NYSE: OMC) Our Purpose Better Business: We build and communicate authentic, credible and relevant brands that excite and engage key stakeholders Greater Good: We ignite and leverage movements for societal impact Our Knowledge Leadership Acknowledged as the nation’s leading cause practice Keynote at leading conferences and seminars Author of proprietary, industry-standard research series Knowledge Leadership Library Cone Return on Investment Tool Influencer partnerships Our Emergent Cause Brands Our Nonprofit Experience Strategic Partnership Counsel Cause Branding Campaigns Integrated Marketing Communications Corporate Perspective Definition of Cause Branding Cause Branding for Companies Business Strategy Social Impact A business strategy that integrates a social issue or cause into brand equity and organizational identity to gain significant bottom-line and community impacts Evolution of Cause 1999 | 1982 | ePhilanthropy Newman’s begins to emerge 1911 & 1913 | Own is 1993 | Cause with birth of 2008 | Private grantmaking founded and Branding GuideStar, Cause is foundation, set up to 1954 | GE gives all profits becomes Impact Online driving force be self-governing, is becomes 1st to to charities multifaceted and others for pioneered by match employee through launch marketing Rockefeller and contributions to of Avon Breast and Carnegie charity Cancer citizenship Crusade efforts 1940’s | Private 1976 | 2006 | Product (RED) foundations begin Minneapolis For-Profit Business funding evaluations Keystone Charity Model 1891 | of social programs 5% Club Rockefeller 1984 | The Statue they supported hires manager of Liberty-Ellis for his Island Foundation philanthropic pioneers cause- 1997 | Venture affairs related marketing philanthropy is for the st popularized by 1914 | The 1 community foundation is created statue’s Harvard Business so people of modest means can respond restoration Review article collectively to neighbors’ needs Cause in Context TREND SPECTRUM DEFINITIONS DRIVING FORCE BASIC HUMAN VALUE (TIMELESS) MACROTREND MAJOR CULTURAL MOVEMENT (7–10 YRS.) MICROTREND SIZABLE CULTURAL SHIFT (3–5 YRS.) FAD POPULAR IDEA, PRODUCT, OR SERVICE (1–3 YRS.) 10 Corporate Cause Spectrum Cause Marketing Cause BrandingSM Cause Platform Corporate Citizenship Worldwide Fund for Women’s Health Cause Marketing and Branding CAUSE Access to breast care for underserved women MISSION SIGNATURE Medical Resources Product Sales Special Events ELEMENTS SUPPORTING ACTIVITIES Online Support Group • Employee Engagement • Women’s Empowerment PARTNERS Corporate Citizenship and Cause Platform CORPORATE To improve the lives of women, globally MISSION CAUSE Breast Cancer Domestic Violence Disaster Relief PLATFORM Funding access to care and Putting an end to Responding quickly to finding a cure for breast domestic violence international disasters cancer CORPORATE CITIZENSHIP Employee Policy Research and Development MarComm Strategy Matching, volunteer, and Global product safety Campaign collateral materials, fundraising programs standards advertising, public relations and celebrity endorsement Workplace diversity program Promotional product sales and scholarship opportunities Major customer fundraising for Avon representatives events CAUSE BRANDING & MARKETING Environmental Drivers Post-9/11 Sentiment: Searching for a deeper meaning, Americans expect companies to play an active role in addressing societal needs; rewarding companies that share their values Increased Transparency: Rapid adoption of the Internet has empowered consumers to access corporate information and offer opinions online via blogging, etc. Targeted Outreach: With increased competition for consumers’ share of mind, companies are conducting detailed consumer research to tailor messaging for key audiences Corporate Scandals: Stockholders and the rest of the country is watching. Good corporate citizenship is a must-do, stemming from Enron, WorldCom and other scandals Competition for Employees: 77% of employees say that a company’s commitment to social issues plays a role in determining where to work Business Context 90% of managers have “citizenship goals” as part of corporate business principles More than half of marketing/community affairs directors carry out cause initiatives In past five years, companies report increased investment in corporate citizenship (staff: 74%, budget: 72%, executive time: 68%) 65% of senior executives believe ROI from cause efforts increased in past few years Brands that engage people emotionally can command 20% to 200% higher prices than competitors and sell in far higher volumes Cause/Passion Branding Industry Specific Investment $1.34 B Retail 39% $1.17 B Media & Publishing 26% 1600 $988 M Food 24% 1400 $922 M Bank 20% 1200 $816 M Cars 19% 1000 Airline 18% 800 Services 16% 600 Telecommunications 14% Insurance 14% 400 Pharmaceutical 13% 200 Food 13% 0 2002 2003 2004 2005 2006 Conference Board, 2002; IEG Sponsorship Report, Business for Social Responsibility; and IEG Sponsorship Report, 2005 Business Imperative “The world’s changed. Businesses today aren’t admired. Size is not expected. There’s a bigger gulf today between haves and have-nots than ever before. It’s up to us to use our platform to be a good citizen…it’s a business imperative.” Jeff Immelt Chairman/CEO General Electric Consumer Imperative Americans consider a company’s citizenship when deciding… 2007 2004 86% 85% Which companies I want to see doing business in my community 77% 81% Where to work 79% 74% Which products and services to recommend to other people 66% 70% Which stocks or mutual funds to invest in What to buy or where to shop 80% 63% 2007 Cone Cause Evolution Survey, 2004 Cone Corporate Citizenship Study Generation Next 83% will trust a company if it is socially/environmentally responsible 89% are likely to switch from one brand to another if the latter supports a cause 79% want to work for a company that cares about how it impacts society 74% listen to a company’s messages if they have a deep commitment to a cause Cone Cause Millennial Cause Study, 2006 18 Business Objectives In partnering with nonprofits, companies are increasingly seeking to: National Cause: Contribute promotional support, advocacy, fundraising, etc. Local Cause: Localize giving to areas where they operate or are strategically-focused Acquisition and Retention: Build long-term customer relationships Recruitment and Retention: Engage employees via turn-key efforts Perception and Awareness: Improve company perception/brand awareness via cause Social Returns: Deliver greater, measurable social impact Business Returns: Demonstrate ROI via sales and sponsorship performance National Cause Branding Contribute promotional support, advocacy, fundraising, etc. Aldo & Cigna & Yoplait & Youth AIDS March of Dimes Susan G. Komen for the Cure Bloomingdale’s & DKNY & Pottery Barn & Colon Cancer Rock the Vote St. Jude’s Research Alliance Thanks and Giving Local Cause Branding Localize giving to areas where they operate or are strategically-focused Signature Local Events Community Awareness/ Promotions/ to Advance National Cause Action Campaigns Fundraisers at Retail Campaign Event Community Based Socially Aligned Sponsorships Social Impact Business Initiatives (SABI) Acquisition and Loyalty Build long-term customer relationships In the US, 87% of people say when price and Globally, 60% of people chose NOT to quality are equal, they are likely to switch from buy a brand because the company was one brand to another associated with a cause seen as a bad corporate citizen 2007 Cone Cause Evolution Study Wirthlin Worldwide, Corporate Citizenship Balancing Act, 2002 Recruitment and Retention Engage, and retain employees via turn-key efforts In the US, 72% of employees wish their Globally, employees create the greatest employers would do more to support a pressures for their companies’ cause or social issue citizenship activities 2007 Cone Cause Evolution Study World Economic Forum Perception and Brand Awareness Improve company perception/brand awareness via cause In the US, 92% of people say they have Globally, 61% of opinion elites say they a more positive image of a product or have recommended a company to others company when it supports a cause in response to a company’s citizenship 2007 Cone Cause Evolution Study APCO Worldwide Global CSR Study, 2004 Social Returns Deliver greater, measurable social impact via strategic philanthropy Focused approach yields larger, measurable social gain to help more people Longer-term partnerships deliver longer-term outcomes to improve lives Synergies from harnessing resources multiply impact to enhance communities Business Returns Demonstrate ROI via sales and sponsorship performance metrics 100% jump 47% increase 600% increase in 138% jump in sales via in sales of Sears’ sales of featured in $50 YouthAids go- dealers products, products in the Starbucks to-market through its Campaign for Real card reloads campaign partnership with Beauty ads; 20%