Posts con el tag ‘cause marketing’

Cause Marketing: Love it or Hate it

Causegood.com estimates that cause marketing has grown in the past 15 years from $700 million to $2 billion. Cause marketing is growing rapidly and for a good reason: it simply works. It is a business strategy – not just an evolution of philanthropy – that strongly influences purchasing decisions.

It works by providing a growing funding stream for NGOs, reaching $1.9 billion in funds in 2015 in North America and developing a new donor base of millennials who want to support causes through the brands they patronise.

It works, evolves and innovates, as seen in some 2015-2016 cases:

-       Toms Shoes evolved from the “one-for-one concept” to “One Day Without Shoes”: using the Instagram platform where for every photo of bare feet that was tagged they gave a new pair of shoes to a child in need.

-       Doritos with the “It Gets Better” project: For every $10 donated, donors received a bag of rainbow chips. This is a new development called causejacking: when a brand rides the wave of a cause’s popularity.

-       Partnership between Subway and Coca-Cola: For every bottle of Dasani water sold in 2,200 participating US Subways, Coca-Cola donates 30 cents. A total of $125,000 has been donated to World Vision, the NGO that is the largest non-governmental supplier of clean water around the world.

-       Nivea India’s “Mom’s Touch” partnered with Aseema Charitable Trust, an organisation dedicated to providing quality education to children from marginalised communities.

-       Budweiser’s “Give a Damn”, broadcasted during the 2016 Super Bowl. Helen Mirren addressed drunk driving in a wonderfully witty spot in which the only commercial reference was a bottle and a mention of its cold temperature.

Meanwhile, tons of difficulties have been foretold from the NGO sector. A false solidarity in which the real winner is the for-profit company. An unhealthy lifelong dependence for these campaigns. A consumer who likes to maintain this altruistic vein through consumption practices. Consumers’ scepticism towards these campaigns. And thousands of ethical and mental barriers.

Now that Marmite suffers the consequences of the Brexit, let’s benchmark their claim. Cause marketing: do you love it or hate it?

 

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Big players, big marketing

Is social marketing for real? We often get this question during Q&A after our sessions at ESADE, in both the BBA and Executive Education programmes. Social marketing sounds appealing – especially to managers – but is it for real?

Let’s take a look at some big players recently mentioned by Knowledge@Wharton:

-          Amy Chen wanted to put PepsiCo on the cutting edge of figuring out new business models that generate revenue while also having a social impact. She developed a plan for a social business incubator and was given one hour to pitch it to PepsiCo CEO Indra Nooyi. Thus was born Food for Good, an initiative whose mission is “to make healthy food physically and financially accessible for low-income families through sustainable, business-driven solutions”. It’s a fascinating social approach. In marketing terms, as Amy noted, “The task of selling oatmeal to someone is a lot harder than getting them to eat a bag of Doritos.”

-          On March 16, Howard Schultz launched Starbucks’s “Race Together” campaign: the company’s baristas were asked to write the words “Race Together” on customers’ cups as a way to stimulate conversations on race issues. The final result: customers were skeptical, thinking there was an ulterior motive. But, as Prof. Kenneth Shropshire said, “Starbucks is the kind of enterprise that can really have an impact in the long run.” Schultz has no intention of giving up, and will keep trying to stimulate conversations and empathy.

-          Under new CEO Steve Easterbrook, McDonald’s recently announced that its US locations would stop selling chicken raised with antibiotics, in an effort to provide safe and healthy food. Difficulties are expected; McDonald’s is still expected to be the fastest and the cheapest. But Steve Easterbrook thinks of himself as an “internal activist”, eager to change the way his company is perceived through a strategic move that has been described as smart marketing that is also beneficial to customers’ health.

As leaders and internal activists, these three CEOs are surfing the markets, thinking ahead to understand what the market wants, and not being cocky by going into a wave that could crush them. Big players, big marketing, real impact.

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Marketing that isn’t marketing

When marketing works, it finds trends that provide opportunities for brands. The resulting innovation in marketing means looking for the “next big thing”. Social marketing puts social customers’ needs on the same level as those of the company, resulting in win-win arrangements with society.

Trendwatching fascinates its audience by detecting the novelties that accompany consumers’ insatiable desire to try new things — also known as Newism. The following are some of the innovations linked to social-marketing trends that were highlighted in the most recent Trendwatching report:

-          Consumers’ changing mobile attitudes. In the Philippines, fast-food players McDonald’s and Coca-Cola have launched BFF Timeout. This app rewards users for putting away their smartphones while they are hanging out with friends. Results are posted publicly on a leaderboard.

-          Consumers expect brands to contribute to social progress. This year, a Unilever-owned brand of cleaning products called Cif launched Clean Romania, an initiative to remove racist graffiti. Using a specific app, users can upload photos of racist graffiti. The brand then dispatches clean-up teams and posts “before” and “after” photos online.

-          Brands are making requests of their consumers. During the launch of The Walking Dead, Fox Portugal gave away promotional merchandise in exchange for donated blood. The initiative was a pop-up store organised in collaboration with the local blood bank.

-          Brands are prioritising customer needs. The Brazilian suncare brand Sol de Janeiro trained 450 tattoo artists to interpret skin lesions and the basic signs of skin cancer. They explain the symptoms to their customers and advise them to see a dermatologist for a full diagnosis.

-          Inefficiencies in our current systems are being targeted. PareUp launched a mobile app that enables restaurants and grocery stores to offer consumers food would otherwise be thrown away. Discounted prices give consumers more for less and help to reduce food waste, thereby creating win-win situations.

Does it look like marketing? Does it work? Does it create social value?

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Societal marketing: focus & alignment

Ideally, what characteristics should a company’s societal-marketing project have? As long as we’re doing societal marketing, how can we do it better? This is a top-priority question for the managers in our programmes.

We already know many things. Jordi Torrents shows us how to manage a brand’s social dimension in order to boost brand differentiation and customer loyalty. Following in the footsteps of James E. Austin, Juan Mezo seeks to align causes with the mission and values of an organisation.

These are solid recommendations – even more so when we compare them with real projects. Let’s take a look at two Spanish projects that we analysed recently:

  • Muebles Boom have undertaken many marketing actions: they promote the fact that their manufacturing is 100% local, that their low-cost strategy prevents them from providing customer service by telephone, and that they engage in controversial, media-savvy promotional offers such as “Furniture for €1”. They complement all of this with societal marketing:
    • Food for soup kitchens: Every piece of furniture sold comes with a label that indicates the number of meals donated.
    • Kisses against domestic violence: The company organises a national kissing championship on Valentine’s Day and donates €10 to a women’s foundation for every participant and €1 for every photo shared. The participants in the three longest kisses at the store win trips to the Dominican Republic, Venice and Paris.
  • Compañía Cervecera de Canarias, a subsidiary of the SABMiller Group, has positioned itself with “Ten Priorities, One Future”, an enormous programme aimed at discouraging irresponsible alcohol consumption, producing beverages with less water, reducing the company’s energy and carbon footprint, encouraging the reuse and recycling of packaging, respecting human rights, contributing to the struggle against AIDS in the company’s area of influence, increasing transparency, and doing business ethically: …uff!. Among other things.

How can these two companies optimise their programmes to give customers more differentiated value and create a perception of alignment with their mission and values? It’s not as easy as it looks.

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Conscious consumerism: shop by cause


The decision tree is an extremely important concept in marketing today. It allows us to visualise how customers mentally structure the decision-making process for every choice they make, from what snack to eat to which cardiologist to visit. This consumer insight has given rise to shopper marketing and category management: stores and websites are being adapted to make the process easy for customers, so that they find what they’re looking for quickly and spend more money.

Today, the decision tree is powering an exciting trend at the intersection of marketing and society: the “shop by cause” concept. Tell me what causes you’re interested in, and I’ll offer solutions tailored to each one.

Some organisations have just started to develop this idea. The American Society for the Prevention of Cruelty to Animals (ASPCA) offers “anti-cruelty” and “anti-puppy mill” gadgets. Building Lives Up (BLU) has taken the model to a more sophisticated level by offering customers non-traditional ways to help charity organisations raise cash: a supermarket featuring products related to 32 very different causes.

“Shop by cause” is becoming professionalised at private companies. Philosophy, a line of cosmetics featured on “Oprah’s Favorite Things”, offers an innovative shopping menu: “shop by category” (hair care, shower gel, etc.), “shop by scent” (fruits, blooms, tropical, etc.) and “shop by cause” (women’s cancer, Rainforest Foundation, WhyHunger, etc.).

Toms Shoes has taken it a step further with its “One for One” model. Going beyond this innovative cause-related marketing approach, last November the company launched Toms Marketplace. At this new website, people can shop by the causes they care about as well as by product type. The site offers a different shopping menu for each of the 34 brands sold on the Marketplace, but shoppers can also browse by region or by social cause. The causes – animals, children, education, health, job creation, nutrition, social justice, water, women – were defined using insights obtained from the decision tree.

Aware that the appetite for conscious consumerism is on the rise, Toms Marketplace offers a different way to shop. Private companies are optimising their marketing; NGOs ought to follow their lead.

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Marketing Catalonia calling

Since 1952, when Wiebe first asked whether we could sell brotherhood like we sell soap, the application of social marketing has grown to infinity and beyond. But the marketing process requires that we modify certain attributes of our cause to make it more valuable to stakeholders.

Using the strongest social movement in Europe at the moment (with 30,000 volunteers and 150,000 likes on Facebook) and public demonstrations as a best practice, let’s innovate to create value in the international media: let’s market Catalan pride.

In this marketing effort, our cause is up against fierce competition – they harp on the concept of the “silent majority”; they insinuate a “shock-and-awe” ideological terror campaign about the effects of independence, while standing behind a leader who only mentions “openness to dialogue”; a member of the Spanish Constitutional Court declares that “any political event in Catalonia involves acts of onanism”; and the CNI  – the Spanish spy agency – have a plan to be ready when the shit hits the fan.

The Catalan Way is a best practice in social marketing. Let’s use the Baltic Way project as a benchmark: a physical human chain spanning Catalonia. Let’s add extra value by drawing on a historical concept like ancient Rome’s Via Augusta – the road to follow. Let’s use visible, easily identifiable colours and combine them with surprisingly integrated Sikh and Samoan citizens. Let’s adopt the principle, espoused by the Catalan National Assembly, that “whoever comes will be counted as an independence supporter; if you don’t want to be counted, stay at home” – a classic nugget of public demonstration management. And let’s embellish it with modern tools – we’ll measure it using digital traces such as Twitter to obtain an innovative digital effect of the 400,000 people it took to span 400 kilometres. And we’ll track references to Spanish prisoners in the New York Times to give meaning to the human chain – the latest and most dramatic expression ever seen of a powerful social movement marketing itself to international stakeholders.

Any recommendations for the next public demonstration in 2014?

 

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Different strokes, different consumers

What is going on? Are we suffering from an economic crisis that is radiating outwards   towards the world from the Mediterranean area? Or is it a case of the changing civilization, as defended by Carlos Slim?

Looking at it, changes in Europe are becoming pretty structural: the retirement age pushed back, the wasteful welfare state model swept aside, new jobs with far less pay than industrial sector wages. And what’s the impact in Spain? Today consumption has been reduced by $ 3,000 per family [from € 32,014 to € 29,813 per year).

So what are we seeing exactly? The birth of a new consumer, adapted to a New Normal economic scenario? Here are some facts to mull over: consumer values are evolving from a possession to an enjoy and experience model (Ymedia); private labels are increasingly emerging  as market leaders in food&drugs categories (Nestle has launched in Europe instant noodles, individual coffee packets and Products Popularly Positioned); BCG has started to define the consumer as moving from conspicuous consumption,  to a more conscientious approach to spending:  consumers are choosing to spend money only on affordable indulgence; buying goods to make them -feel better, something the family will enjoy, or simply better for the environment. And finally, there’s a consolidation of collaborative consumption and flea markets, together with values such as austerity, frugality and smart shopping. The final result, according to Nielsen, is that 69% of European consumers have changed their buying habits to save cash.

We’re already seeing surprising trends in the growing South&Central America area, reported by Trendwatching. Latin America is witnessing the emergence of empowered consumers in every dimension: economic, technological, social and political. Consumers  are  optimistic about the future and about their ability to define it, and they see rampant materialism as something unsatisfactory. And selfish.  Economic growth that does not map to societal values is something that remains uneven and uncertain. And consumers look for brands that don’t ignore social inequality: check out significant cases analyzed by trendwatching: Satisfeito, La Fábrica del Taco, or Techo.

Opposite paths, consumers running pretty much in the same direction.

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“FaireFrance”, leche justa… para algunos

El 01 de julio se presentaba la leche “FaireFrance”, una leche justa iniciativa de la sectorial láctea francesa APLI. Su justicia significa que se va a pagar al ganadero por encima de los 40 céntimos/l. La iniciativa ya existe en países como Alemania y Holanda, siendo un modelo en Europa de la European Milk Board para intentar mantener una parte que consideran equitativa en la cadena de valor. El intento de crear identificaciones (es discutibe si son realmente marcas para el consumidor, aunque ellos la denominen la marca de los agricultores franceses) para los productos autóctonos ha existido desde los inicios de la globalización; este caso añade un diferencial, el del comercio justo para los productores enfrente de las empresas que elaboran el producto final y los distribuidores. Es decir, crear una marca de comercio justo “nacional” contra la marca Nestle y Carrefour, por poner un ejemplo.

Recuerdo como en un proyecto realizado para la Generalitat sobre las posibilidades empresariales de la comarca de Les Garrigues en Catalunya, los agricultores productores de aceite de oliva ya hablaban de porqué el comercio justo no se orientaba hacia los pobres productores locales enfrentados a las grandes compañías que les dominaban; y porqué los consumidores se sentían atraídos hacia los productos agrarios de Guatemala, por ejemplo, y no sentían el mismo interés hacia los agricultores nacionales que tenían que cerrar. Seguro que detrás hay muchas variables, pero seguro que una de ellas es la capacidad de reconvertir estas necesidades, demandas, valores, comportamientos en un marketing efectivo. Por ejemplo si quiero comprar productos locales lácteos, ya hay empresas que lo identifican y me ofrecen ese beneficio más claro, más limpio, más atractivo, con más valor. El marketing nos plantea si es más atractivo para una ama de casa comprar leche segura por la proximidad o “lait equitable”.

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Gobernando desde la compra de t-shirts

El lanzamiento al mercado de dos camisetas han sido noticia el mismo día en la prensa generalista: H&M con su camiseta de apología del ciudadano diputado Sánchez Gordillo, y la propuesta de la camiseta del Barça con los colores de la bandera de Catalunya para la temporada 2013-2014. Los dos son casos donde sobre un simple producto de consumo se priorizan valores sociales que creen interés en los posibles compradores.

La cadena Weekday, propiedad de H&M, y con un apartado en su web sobre su CSR de 2.134 palabras, tiene la colección Zeigeist en la que cada semana refleja algún hecho de actualidad e interés para sus clientes; esta semana fue una camiseta son el slogan “Comida para la gente. No a un mundo hambriento. Juan Manuel Sánchez Gordillo”; ampliado en la web detallando que es sobre un diputado y alcalde que se ha converido en un héroe por robar en supermercados y dar los productos a los pobres. Las reacciones de los clientes han llevado a retirar el producto y pedir disculpas.

Nike ha filtrado a través de un periódico deportivo que la segunda equipación del Barça para la próxima temporada pueda ser con los colores de la bandera de Catalunya. Nunca en su historia han sido utilizados, y sucede a un diseño en color mango, color negro y al actual bicolor, degradado, en naranjas. El diseño con la bandera ya fue un proyecto hace tres años con el presidente Joan Laporta, que finalmente no se realizó. Sin duda las implicaciones en términos de emociones para una marca universal son múltiples y acabarán interviniendo en la decisión final.

Ambos casos nos recuerdan un artículo apasionante con el titular Gobernando desde el hiper: ”Sólo los más convencidos pueden confiar en que el mundo se puede cambiar desde la caja de un supermercado. Pero si las grandes multinacionales ya han visto el filón del consumismo social, no es descabellado pensar que las autoridades políticas perciban pronto en él un beneficio electoral”. Por ello veremos cada vez más proyectos de identificar consumo con valores, y esos mismos valores provocarán sorpresa, identificación y rechazo, mayor implicación emocional en las marcas y mayor segmentación, mayor número de proyectos en versión beta que finalmente no son lanzados.

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Caridad y marketing: un oximoron?

A veces es diíficl defender un marketing de la caridad, parecen contradictorios (especialmente para los managers de la caridad, no creo nadie le haya preguntado a los beneficiarios). Las primeras dudas las resolvemos con la frase de “…Si no se acepta que la ley del mercado también es válida para la industria de la caridad, no se conseguirá su introducción en ninguna parte”: si fuera nuestra sería casi insultante, pero afortunadamente proviene de Bernard Kouchner, cofundador de Médicos sin Fronteras y Médicos del Mundo.

Una vez aceptado el marketing como políticas a ejecutar (ciertamente hay que comunicar, promocionar y saber hacer un folleto a cuatro tintas), queda la reflexión del marketing como orientación empresarial. Aquí usaremos algo mejor que una cita. Dos ejemplos de esta semana en España:

- la charcutería Gombao de Elda lanza una promoción hasta final de año: para recuperar el buen nombre del chorizo, donan los beneficios por su venta a Caritas. Como mínimo ya han aparecido en esta entrada, pero ciertamente algo no acaba de encajar en esta reflexión de valor para el consumidor. Ya no es el importe recogido por Caritas finalmente, es si esta política responde a algún proceso

- la misma Caritas desarrolla desde el año 2002 el programa Empresas con Corazón: estable, múltiples formatos de colaboración, veinte voluntarios trabajando, y documentan 259 empresas colaborando. La última esta semana, Beam Global España.

Dos ejemplos de marketing en caridad, dos metodos diferentes, dos visiones diferentes, aunque en el fondo haya el mismo beneficiario. Dos tipos de empresas aplicando el mismo proceso (análisis, estrategia y acciones) para generar valor entre sus stakeholders: por supuesto consumidores, también colaboradores internos, y considerando también su efecto en la sociedad. Pensemos cual será más efectivo en sus objetivos.

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