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Moving From Win-Win to Win- Win-Win with Cause Marketing Steve Drake President, Drake & Company April 17, 2009 © 2009 Drake & Company

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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Page 1: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Moving From Win-Win to Win-Win-Win

with Cause Marketing

Steve DrakePresident, Drake & CompanyApril 17, 2009

© 2009 Drake & Company

Page 2: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Today’s Goals

1) Demonstrate how cause marketing can achieve your overall marketing objectives.

2) Share cause marketing basics & practices3) Use examples & a case study to increase

understanding

While growing rapidly in most sectors, “ag sector” shows limited use of cause marketing.

As the “causeaholic,” my goal is to change that!

Page 3: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

What?Basics

CauseNon-Profit

Corporate

Partners

AssociationPartner

A for profit and a not-for-profit combining efforts for purpose, passion and profit.

$

Page 4: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Examples

Page 5: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Loads of Hope

New Orleans, San Diego, Galveston, Waterloo: 30,000 loads to date

Examples

Page 6: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Sam’s, Aquafina & KABExamples

37 Million bottles; $300,000; 100,000 fleece jackets!

Page 7: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Bread Art Project

Digital campaign

Examples

Milling &Baking Industry

Donated $50,000 to Feeding America + $1 per submission up to $50,000

Page 8: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Target & St. JudeExamples

200,000 purchased; $300,000 to St. Jude

Page 9: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Colgate & RIFExamples

$800,000 + 58,000 books since 2004

Page 10: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Be a

Program:$5 donation to USO

operationPer FMC booth visitor

Examples

1,477 participants; $7,385; 296 USO care packages

Page 11: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

National Geographic Kids – Cotton Inc

Examples

Guinness record by turning old jeans into home insulation

Page 12: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Basics

Page 13: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Why?

85% of Americans more positive

Basics

79% would likely switch brands79% want to work for a company that cares

Increased Sales, Profits & Funding:

Source: 2008 Cone/Duke University Behavioral Cause Study

Page 14: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Basics Why?

Trying to reach Generation Y?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Switch Brands Have Purchased Expect Donation

Overall Gen Y

Source: 2008 Cone/Duke University Behavioral Cause Study

Page 15: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

BenefitsBasics

Create awareness to advance your strategyIncrease customer loyalty and salesEngage employees and stakeholders

For Companies:

Page 16: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Why?

Create awareness to advance your mission

Generate funding for your organization and/or cause

Create local advocates, engage members and donors

Basics

For Associations & Non-Profits:

Page 17: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Why?

Top “issues” for causes: educationeconomic development health & disease access to clean water

Basics

Page 18: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Finding Partners?Basics

“Frame” your search: “Size” “Geographic scope” “Product” or “Service”

“Philosophy”

Look for non-profits with a parallel cause

Look for charity / non-profit with a mission for which your customers would have a passion

Page 19: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

How – Cause Types

What “tools” can be used to implement the cause?

Basics

Social / Public Service marketing

Purchase Plus

Product sales

Product licensing

Promotional campaign

Co-branded program

Co-branded events (runs, rides, auctions, golf, etc.)

Page 20: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Measurement & Metrics

Use same measurement tools as other marketing:

Media impressions Customer Loyalty Index Sales Numbers engaged in programs Dollars generated

Basics

Page 21: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Measurement & Evaluation

Basics

Page 22: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Practice

Page 23: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Case Study

Page 24: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

The ChallengePractice

Trees to troops

Page 25: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Who?

Cause: Military families

Practice

Page 26: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Coordination & Fund-raising4,000 – 6,000 trees from

consumers & retailers

The Program

10,000 - 12,000 treesLocal media

FedEx:59,000+ miles+ 10,000 air miles+ volunteers

53 bases17,000 families

Practice

Page 27: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Power of Cause Marketing

http://www.msnbc.msn.com/id/3032619/#2821063

Page 28: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

23.4 MILLION households said they saw, read or heard about Trees for Troops

Reach & ImpactPractice

2008 Trees for Troops

3.4 MILLION households said T4T “influenced” their decision to purchase a Real Tree in 2008

Page 29: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

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?

14.7 13.7 14.2

23.3

0

5

10

15

20

25

2005 2006 2007 2008

Million Households

Households that Recalled Seeing, Hearing or Reading about Trees for

Troops

Practice Reach & Impact

Page 30: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

50,554 military families received farm-grown Christmas trees

Practice

53 military locations17 countriesinternational media coverage

Summary

Page 31: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Evaluating (CSF perspective)

Delivered fresh, farm-grown trees to 50,554 families Generate $1 million (cash & in-kind) per year Create millions of media impressions Reached 23 million U.S. households Engaged 71% of organization’s members Earned three national awards Cost: 1,200 - 1,400 staff hours and $10,000± expenses

Practice

What other program could generate this much local and national (positive) media

coverage?

Page 32: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Key Learnings

1) Make it personal

Practice

2) Make it relevant3) Make it transparent4) If you are the charity, own “the brand”

5) Create partnerships / alliances

6) Seek other non-competing partners

7) Continuously refresh and update

8) Share the passion

Page 33: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

12 Steps to Cause Marketing

1) Select cause Harmony (with mission) is key

2) Make it personal For donors, members,

employees

3) Decide on partner(s) Big or small pond?

4) Understand each other You own your brand

5) Disclose special arrangements Transparency Who is doing the PR?

6) Determine which form See list of types of cause

programs

7) Develop PR support plan Get recognized for doing good

8) Establish metrics Measure your marketing

9) Refresh & update Continuous improvement

10) Be flexible Change on fly if needed

11) Review & evaluate Set a date on when you will

review and renew

12) Take time to celebrate Build celebration into your

campaign Include volunteers, partners,

staff, etc.

Basics

Page 34: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Resources: 12 Steps to Successful Cause Marketing

http://blog.drakeco.com/2008_06_01_archive.html

Cone-Duke Research http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20081001005317&newsLang=en

2008 Cause Study, PR Week http://barkleyus.com/articles/show/43-pr_week_cause_survey_2008#

Highlights & case studies http://www.causeaholic.com

Page 35: Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

Contact Information:

Steve DrakePresident, Drake & CompanyPhone: 636-449-5050 E-mail: [email protected]: http://twitter.com/causeaholicWebsite: www.drakeco.com Blog: http://www.causeaholic.com