A
REPORT
ON
Various Cause
Related Marketing done by companies and its Impact on sale of companies
Submitted
by:
RADHESHYAM
GARG
MBA-II
Semester
POORNIMA
SCHOOL OF MANAGEMENT
ISI-2, RIICO Institutional
Area, Goner Road, Sitapura, Jaipur
Acknowledgement
Indebted to them for
providing us such a wonderful opportunity to search for such a prestigious
project.
We have no words to express
our appreciation for all the search work that they did and for providing us all
necessary information required and we with deep sense of gratitude, wish to
express our appreciation to our seminar guide Miss Niharika singh. And Miss
Neha sarda although words hardly
suffice, we are deeply without whose support this report would not been
possible.
We wish to express our
gratitude and indebtedness to Mr. R.K
Agrawal our Advisor for his encouragement .Valuable suggestion, helpful
comments and constructive criticism.
We also thank to our
faculty members for providing needed support and encouragement at various
stages and also classmates for cooperating with us.
In the end, on behalf of
our college we are thankful to R.T.U and the faculty members of R.T.U as a
whole for rendering all the possible services and resources, which ultimate
enabled us to complete this seminar report successfully.
RADHESHYAM GARG
s.no.
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CONTENT
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Page No.
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PREFACE
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4
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EXECUTIVE
SUMMARY
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5
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INDUSTRY
PROFILE
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13
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OBJECTIVE
OF STUDY
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34
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SCOPE
AND PURPOSE OF STUDY
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35
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RESEARCH
AND METHODOLOGY
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36
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CORE
STUDY: FINDINGS, DATA AND ANALYSIS
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36
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CONCLUSION
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38
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RECOMMENDATION
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38
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LIMITATIONS
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39
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BIBLIOGRAPHY
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40
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PREFACE
The purpose of this research is to investigate the kind of relationship
between Cause Related Marketing (CRM) campaigns, brand awareness and corporate
image as possible antecedents of consumer purchase intentions in the developing
country of India. An initial conceptualization was developed from mainstream
literature to be validated through empirical research.
The findings indicate that consumer purchase intentions are influenced
by the cause related marketing campaigns. Furthermore it was observed that the
brand awareness and corporate image partially mediate the impact of CRM
campaigns on consumer purchase intentions.
Further research can be carried out through data collection from those
people who actually participated in cause related marketing campaigns to
identify the original behavior of customers instead of their purchase
intentions.
This research and the claims made are limited to the FMCG industry. The
key implications cause related marketing of these findings for marketing
managers lend support for the use of campaigns in india. The findings also
suggest some measures which can be taken in to consideration in order to
enhance brand awareness and to improve corporate image as both variables
mediate the impact of CRM campaigns on consumer purchase intentions.
The study contributes to cause related marketing literature by
indicating a mediating role of brand awareness and corporate image on CRM
campaigns and consumer purchase intentions.
EXECUTIVE
SUMMARY
CSR Europe sees the
opportunity to develop a programme that investigates how far Social and
marketing goals can be combined, and to support the development of a new
Generation of marketing strategies. With these corporate social responsibility
programmes, they are awaking the population about their services and also by
providing a welfare hand to uplift them.
From the report I came to
know that CRM has the potential to change the very foundations of traditional
marketing. Instead of reacting to the wants of society, marketers can focus more
on what society needs.
This can offer a wealth of
new possibilities and ideas.
• New relationships between
commercial structures, businesses, and society
• Redefined goals and
expectations
• New values and methods for
measuring results
• New markets and consumers
• New employees and
departments
• New business structures,
roles and channels for growth
The effectiveness of CRM is
becoming clear. The challenge belongs to innovative and committed businesses to
take this marketing tool to the next level - to discover and invent the new
strategies that can benefit themselves and the whole of society.
So by identifying cause and
preparing strategies according to that will definitely give benefit to the
societies and also to the companies. So we can say there is lot of scope
for companies through cause related
marketing in present and also in the future.
INTRODUCTION
Meaning of Cause Related Marketing
Cause marketing or cause-related marketing
refers to a type of marketing involving the cooperative efforts of a "for
profit" business and a non-profit organization for mutual benefit. The
term is sometimes used more broadly and generally to refer to any type of
marketing effort for social and other charitable causes, including in-house
marketing efforts by non-profit organizations.
Definition
Joint funding and
promotional strategy in which a firm's sales are linked (and a percentage of
the sales revenue is donated) to a charity or other public cause. However,
unlike philanthropy, money spent in Cause Related Marketing is considered an
expense and is expected to show a return.
History
One of the first
"cause marketing" campaigns occurred in 1976 through a partnership
between the Marriott Corporation and the March of Dimes. Marriott’s objective
was to generate highly cost-effective public relations and media coverage for
the opening of their 200-acre (0.81 km2) family entertainment center,
Marriott’s Great America in Santa Clara, CA. The March of Dimes's objective was
to greatly increase fundraising while motivating the collection of pledges by
the program’s deadline. The promotion was conducted simultaneously in 67 cities
throughout the Western United States. It exceeded all goals to become the most
successful promotion in the history of Chapters West of the March of Dimes,
while providing hundreds of thousands of dollars in free publicity and
stimulating the record-breaking opening of the Marriott entertainment complex.
The program was conceived
and directed by Bruce Burtch, who went on to become a nationally-recognized
catalyst for cause marketing programs. Burtch is credited with coining the
phrase, "Do Well by Doing Good", which was his answer to the CEO of a
major corporate foundation when asked what his goal in life was in 1977.
Types
of Cause-Related Marketing
Dr. Inger Stole wrote
"There are six main types of CRM arrangements. The first four relate to
standard corporate practices. These are:
·
advertising, where a business aligns itself
with a particular cause and uses ads to communicate the cause’s message; public
relations, where a business calls press and public attention to a strategic
partnership between itself and a non-profit group;
·
sponsorship, where a business helps fund a
particular program or event;
·
licensing, where a business pays to use a
charity logo on its products or services; and
·
direct marketing, where both a business and a
non-profit raise funds and promote brand awareness.
·
facilitated giving, where a business
facilitates customer donations to the charity ... or to themselves! The ongoing
effort by Ameren, an Illinois energy supplier, is a good example. In their
monthly bills, Ameren customers receive a plea for donations to the corporation’s
“Warm Neighbor” program, a fund established to help Ameren customers who are
unable to pay their utility bills and/or weatherize their homes. While the
energy supplier contributes an unspecified amount, the program relies on the
generosity of Ameren customers. Lost -- or deliberately obscured -- is the fact
that customers are helping other customers settle their debts to Ameren. Other
utility companies use the same strategy. A few years ago, the telecom company
then known as SBC Ameritech launched its “Bridge the Digital Divide” program,
to provide people with basic computer knowledge using the same collection
strategies.:
·
purchase-triggered donations. This is where a
company pledges to contribute a percentage or set amount of a product’s price
to a charitable cause or organizations. The American Express campaign to
restore the Statue of Liberty, mentioned above, is credited as the blueprint.
The company promised to contribute one cent for every card transaction and $1
for every new card issued during the last quarter of 1983. American Express not
only collected $1.7 million for the restoration effort – there was a 28 percent
increase in use of their credit cards, not to mention massive press coverage
and free publicity. These results were not lost on other businesses. Between
1990 and 1999, American companies spent increasing amounts on CRM; the total
annual sum has now passed the one billion dollar mark.
How to set Cause Related
Marketing:-
• Partnership and
Stakeholders
• Honesty and Integrity
• Communication Tools
• Strategy
• Branding
• Benefits
• Evaluation/Measurement
Partnership and
Stakeholders:-
It is possible that your company will be
entering business collaboration with an NGO for the first time. This may mean
that cultural differences need to be resolved, given that the mission, values
and vision of both organizations are likely to be divergent. Communication and
trust are of key importance in ensuring that, despite such differences, there
is an alignment in the overall objectives of the CRM campaign and that mutual
needs and expectations are met. Your company must also be aware of
organizational differences. The decision-making process in NGOs, for instance,
can take much longer and involve more people than in a company.
Employees,
as an integral part of the company, should be informed about your CRM campaign
so they can better understand the link between business activity and support
for an issue of social concern. This can be a key element in increasing
employee motivation and identification with corporate culture, especially if
opportunities for direct participation are built into the campaign. For
example, employees could be involved in selecting the cause or not for profit
partner, and opportunities can be developed for employees to fundraise or
volunteer for the partner during the campaign.
Honesty and Integrity:-
Honesty is the ‘make-or-break’ factor in any
CRM campaign, and should be at the heart of the entire programme. The company
must be honest with itself about its motivation, honest with its NGO partner,
and honest with its other stakeholders: customers, shareholders, employees,
retailers, the local community and pressure groups. Both partners must be
honest about what they can deliver in the campaign. Misleading your partner
will result in your objectives not being achieved.
When
a company considers a CRM approach, it needs to ensure that the campaign will
have the trust and support of customers and the NGO’s supporters. Since
integrity is a basic ingredient of trust, it is important that the company is
viewed as honest, ethical and legally compliant by the general public.
Otherwise, the impact of a CRM campaign may even be counterproductive.
Communication Tools:-
Different
communication mechanisms are required to get your message across to different
stakeholders. Externally, potential customers should be informed about CRM
campaigns in order to participate. Retailers also require information to
communicate with their customers. Internally, employees should be briefed on
the company’s campaign, why it is supporting this cause and how they can get
involved. Details of the NGO partner and cause, and the campaign should be made
available to customers via product labeling, in-store information, advertising
and by putting out press releases that are covered by the media. Periodically,
or at the end of a specific campaign, the results should be clearly
communicated to all stakeholders to ensure they feel they have played an active
role in the campaign. The NGO partner should also make this information
available to its supporters.
Strategy:-
The
overall goals of a CRM strategy, such as enhancing the reputation of a company
and the trust and relationship with customers, reinforcing market positioning,
building brand value or raising public awareness about issues of social
concern, are for the most part mid to long-term objectives. They cannot be
achieved with one-off stunts. They may bring some short-term benefits, such as
a brief peak in sales, but they can also backfire if they are perceived by the
public as commercial exploitation of a cause.
Branding:-
Companies
are increasingly recognizing that a brand associated with a good cause can help
build a strong relationship with stakeholders. In this context, CRM is a
strategy that can add new value to a brand, helping to satisfy the emerging
consumer demand for companies and brands to display corporate social
responsibility. However, in order to acquire strategic relevance, CRM needs to
be perceived by stakeholders as an integral part of a company’s broader
corporate social responsibility programme, one that is clearly associated with
the brand.
Benefits:-
The
needs and expectations of your NGO partner are as important as your own. A true
CRM campaign should be a win-win situation, where all partners benefit equally,
though differently. The benefits for your company could be wide-ranging, from
an increase in product sales, to improved brand value, corporate image, and
market positioning and customer loyalty. Likewise, your NGO partner should benefit
from the funds raised, a higher awareness of the NGO and the cause, better
market positioning vis-à-vis other NGOs, increased loyalty among existing
supporters and an increase in new supporters. The benefits each partner needs
and expects to get out of the CRM campaign should be clearly stated from the
beginning. The financial benefit to the NGO, or cause, any conditions, and the
tax and VAT implications must be clearly stated in the legal, formal agreement.
Evaluation/Measurement:-
Measurement
is vital in order to judge the success of your CRM campaign and whether you
should continue it in the future. Analyses your motives for considering a CRM
campaign. This will help you set short, mid and long-term objectives and
establish performance indicators against which these objectives can be
evaluated and measured. Some outputs can be easily measured, such as the funds
raised and the extra sales achieved; others, including the impact on brand
value and corporate image, market positioning and customer loyalty may require
more sophisticated and expensive tools, such as attitude-tracking surveys.
Other aspects of the campaign you should measure are media coverage, customer
and employee satisfaction, and other stakeholder satisfaction.
CRM IMPACT ON COMPANIES SALES
In
Cause-Related Marketing (CRM) a corporation partners with a non-profit
organization. Typically, parts of the receipts from product or service sales
are donated to the non-profit organization. Both parties benefit: the
non-profit gets additional funding and the company gains brand visibility and
improved brand image. In crowded markets where traditional marketing campaigns
can fail to garner attention, Cause-Related Marketing is a way to stand out.
American
Express was the corporation behind this marketing technique. It partnered with
the Statue of Liberty-Ellis Island Foundation during the time the Statue of
Liberty was being restored for the American bicentennial. The campaign
generated $1.7 million for the foundation and contributed to increases in card
membership of 45% and card usage of 28%.
Several
global brands followed in American Express’ footsteps. Dollar-Rent-A-Car
partnered with Special Olympics; for every case bought, Coca-Cola donated a few
cents to Mothers Against Drunk drivers; Briggs and Stratton, a lawnmower
manufacturer, joined forces with the National Wildlife Federation by
encouraging the public to cut pollution emissions through lawn mower
maintenance.
Other
examples include M.A.C. Cosmetics which donated 100 per cent of its sales from
$14 and $16 lipsticks to various AIDS charities and raised $100 million. Jones
Apparel group raised $1.5 million to be split amongst various non-profit
organizations for education - this led to higher employee retention for them as
most workers deemed children’s causes to be most important.
Most
often, CRM is used with well established brands. Once more traditional
marketing methods have anchored the brand, CRM is introduced to update the
image at a time when the older methods may be wearing out. There are, however,
counter-examples. Mecca Cola, a Dubai-based soft drink brand, announced during
its product launch stage that 10% of the profit of every Mecca-Cola bottle
would go to a Palestinian children’s fund. Within 2 months of the launch, the
company had sold 2 million bottles with orders for a further 16 million
bottles.
INDUSTRY PROFILE
CRM – It’s Different from
Social Responsibility:-
A company with progressive corporate
social responsibility programs demonstrates a much deeper commitment to
stakeholders than a company using a time-limited campaign to link a cause to
products or services. The difference is long-term commitment and long-term
shared success.
Example of CRM:-
With today’s global firms defying the Internet
as the world’s greatest invention since the microchip, the companies’ looks
closely at the advent of e-CRM (e-Cause Related Marketing) – as the future of
corporate philanthropy. It is fervently hoped that in the coming years, e-CRM
will play a small part in achieving both of its inherent objectives promoting
the corporate image as well as contributing towards Indian society.
CITIBANK in Project Shiksha
• Citibank provides option to
its account holders to contribute Rs. 100 every month for education of
underprivileged children.
• Citibank’s most consistent
programme with CRY has been the Citibank CRY Affinity Credit Card. Every time a
person subscribes to the card or spends on it, Citibank automatically donates a
percentage of the transaction to CRY. This partnership has been supporting
project Kinsley which works with children in a slum in Delhi. The credit card
provides customers the opportunity and satisfaction of being able to make a
difference to the lives of underprivileged children by simply using their
cards.
CADBURY’S into CRM
Launched
in Australia in 1997 to great acclaim, Cadbury's Yowie is the first chocolate
brand to combine an entertaining educational programme about the environment
with a new concept in children's confectionery and new folklore for the
children of Australia. In their first year, 31 million Yowie were sold in
Australia. The Yowie is a product which serves to educate children about the
environment and its value which combines fun and enjoyment with a strong
educational message about the environment and the natural heritage of
Australia.
HLL’s SHAKTI
SHAKTI
means ‘Strength’. Project SHAKTI is HLL’s initiative to upliftment of standard
of living in rural India by creating income-generating capabilities for
underprivileged rural women by providing a small-scale enterprise opportunity,
and to improving rural lives through health and hygiene awareness. Project
SHAKTI is taken up in rural areas only whereby women are the distributors for
HLL products and are called “Shakti Ammas”. This identity is ushering
prosperity in their lives and most importantly self respect.
ITC’s E-Choupal
The
Choupal is a Hindi word for village square where elders meet to discuss matters
of importance. The letter "e" has brought in a computer with an
Internet connection for farmers to gather around and interact not just among
themselves but with people anywhere in the country and even beyond. ITC
installs a computer with solar-charged batteries for power and a VSAT Internet
connection in selected villages. The computer's functioning is free from the
usual troubles of power and telecom facilities in rural area. A local farmer
called sanchalak (conductor) operates the computer on behalf of ITC, but
exclusively for farmers.
ITC's
Agri-Business is India's second largest exporter of agricultural products.
Through the e- Choupal initiative, ITC aims to confer the power of expert
knowledge on even the smallest. Individual farmer. Thus enhancing his
competitiveness in the global market. ITC’s e-choupal is the single-largest
information technology-based intervention by a corporate entity in rural India.
Transforming the Indian farmer into a progressive knowledge-seeking netizen.
Enriching the farmer with knowledge; elevating him to a new order of
empowerment. E-Choupal delivers real-time information and customized knowledge
to improve the farmer's decision-making ability, thereby better aligning farm
output to market demands; securing better quality, productivity and improved
price discovery. The model helps aggregate demand in the nature of a virtual
producers' co-operative, in the process facilitating access to higher quality
farm inputs at lower costs for the farmer. The e-Choupal initiative also
creates a direct marketing channel, eliminating wasteful intermediation and
multiple handling, thus reducing transaction costs and making logistics
efficient. The e-Choupal project is already benefiting nearly 4 million
farmers. The e-choupal offers farmers and the village community five distinct
services.
• Information: Daily weather forecast, price of various crops, e-mails to farmers and
ITC officials, news-all this in the local language and free of cost.
• Knowledge: Farming methods specific to each crop and region, soil testing, expert
advice mostly sourced from agriculture universities-all for free.
• Purchase: Farmers can buy seeds, fertilizers, pesticides and a host of other
products and services ranging from cycles and tractors to insurance policies.
Over 35 companies have become partners in the e-choupal to sell their products
through the network.
• Sales:
Farmers can sell their crops to the ITC centers or the local market, after
checking the prices on the Net.
• Development work: NGOs working for cattle breed improvement and water harvesting, and
women self-help groups are also reaching villages through e-choupal. In some
states farmers can even access their land records online, sitting in their
village. Access to health and education services through e-choupal begins next
month. ITC eChoupal creatively leverages information technology to set up a
meta-market in favor of India's small and poor farmers, who would otherwise
continue to operate and transact in 'unevolved' markets. Free access to
Internet is also opening windows of rural India to the world at large. ITC
e-Choupal is now being regarded as a reliable delivery mechanism for resource
development initiatives.
Proctor & Gamble
The
entry of P&G into the field of corporate social responsibility with project
PEACE an environmental education programme followed by FUTURE FOCUS – first
ever career guidance service. P&G experimented Cause Related Marketing with
different projects like Project DRISHTI where Whisper helped to restore
eyesight to 250 blind girls through corneal transplant operations in which
P&G contributed Re 1 for every pack of whisper sold Project OPEN MINDS to
support and educate children across the Australia, ASEAN and the India (AAI)
region. For every large size pack of Vicks VapoRub, Whisper, Ariel Power Compact,
Head & Shoulders and Pantene purchased by consumers during November 1999 to
January 2000, P&G on behalf of consumers contributed the cost of one day’s
education of a working child to the ‘OPEN MINDS’ fund. In India P&G raised
Rs. 1.25 crore for ‘OPEN MINDS’ which was donated to UNICEF in February 2000
Project POSHAN to combat malnutrition in India. P&G raised Rs. 50 lakhs by
contributing Re. 1/- from sales of large size packs of Ariel, Whisper, Head
& Shoulders and Pantene sold in the months of May, June and July 2000 and
Project SHIKSHA – a unique CRM initiative in association with Sony
Entertainment Television. By purchasing packs of Vicks, Whisper, Ariel, Tide,
Head & Shoulders and Pantene between 21st April – 12th June 2003, this
unique education promotion allowed a mother to win Rs. 2 lakhs towards Graduate
Education Fee of one child (24 such Prizes), or Rs. 5,000 towards Next Year’s
Tuition fee for one child (96 such Prizes), and a number of Consolation Prizes,
all courtesy P&G.
TATA Salt’s Desh Ko Arpan Programme
This
programme was launched by the pioneers and undisputed leaders in the packaged
and iodized salt category - Tata Salt in association with CRY in 2002 and
raised around Rs. 33 lakhs in a period of one month. Through the Desh Ko Arpan
programme, Tata Chemicals Limited contributes 10 paisa for every kilo of Tata
Salt, sold during specific periods, to the education of underprivileged
children and enable underprivileged children have an opportunity to develop
their sports ability and pursue higher education.
Breast Cancer Awareness
Campaign
Breast
Cancer Awareness Campaign is the most popular cause related and corporate
social. Responsibility programme. Several big and small companies joined hands
to make it a success. This campaign was associated with PINK color. The
following are a few companies involved in this campaign:
Companies
Involved:-
• Avon:
Avon Cosmetics’ commitment to women runs
deeper than the boundaries of business. Women are the heart of Avon's success
and Avon continues to support and understand their needs through Avon's Breast
Cancer Crusade. The goal of the Avon Foundation Breast Cancer Crusade is to
improve access to quality breast health care for underserved, uninsured and low
income populations, and to support biomedical research focused on prevention
and improved methods of diagnosis and treatment to Cure and prevent breast
cancer. Avon related many of its products with this campaign and named them as
Avon Breast Cancer Crusade fundraising products. These products include ribbon
pins, pens, notebooks, key rings, lip colors, etc. On the purchase of these
products some amount was donated towards this campaign.
• Kodak
Kodak
has supported Breakthrough since 2000, and 2005 will see the total amount of funds raised by Kodak top the
£500,000 mark. Kodak's impressive involvement includes a highly successful
sponsorship of Fashion Targets Breast Cancer 2005 Contest. Teaming up with
Woman’s Weekly, they launched a national search for a more mature face to
represent and inspire an age group who need to be increasingly breast aware.
The contest highlighted Kodak's work in the area of health imaging and the
importance of breast screening.
• Marks & Spencer
Marks
& Spencer developed a range of lingerie that is suitable for women that have
had breast cancer. The post-surgery lingerie range has been created to meet the
practical needs of women affected by surgery while being pretty, feminine and
sexy in design. M&S will be donating 10% of the sale of all the items in
this range.
·
Warner Music
Warner
Music raised a fantastic £50,000 for Breast Cancer Awareness Campaign by
donating £1 on every 'Breakthrough Breast Cancer presents All Woman - The
Platinum Collection' album sold. Warner Music also launched a special edition
album entitled ‘Ladies’ Night’ with a £1 donation going to Breast Cancer
Awareness Campaign for each album sold.
Cause-related marketing
(CRM):-
Branding financial service
organizations in Cyprus by aligning CSR with business motivations Lonna
papasolomsou and Marlen Demetriou
The reputation of the corporation is often the
most important asset it possesses in gaining a competitive advantage as well as
building both financial and social successes. Corporations require more than
just the ability to present sustainable corporate reputation stories to
stakeholders; they also require proactive planning and the ability to adapt to
changing and increasing expectations regarding accountability.
Corporate reputation or image depends on how the
company conducts or is perceived as conducting its business. Today the ability
to build a sustainable corporate reputation is more important than ever before
as stakeholders are more educated, more knowledgeable, and more demanding. The
paper discusses the efforts of two of the largest financial service
organizations in Cyprus, Cyprus Popular Bank and Ernst & Young, to build a
sustainable corporate reputation through an emphasis on Cause-Related Marketing
(CRM). Cyprus Popular Bank supports Radio marathon, a charity working in
support of children with special needs. Ernst & Young, the well-known
global organization in financial services, has also been involved in activities
of charitable giving by financing fundraising events in Cyprus, one of which is
the Annual Fiesta of Young Volunteers, which is organized every May in aid of
children suffering from leukaemia. The paper defines some key concepts such as
corporate reputation, corporate branding, corporate image and identity and
cause-related marketing. The discussion then focuses on the research
methodology and the findings that emerged from a preliminary research study
carried out in the financial services sector in Cyprus.
Telecoms
and Internet regulation review:-
First published: 26
September 2008 | latest updated: 24 July 2009
The
European Union has embarked on a broad review of the telecoms and Internet
sector in an attempt to adapt legislation to the latest technological
developments. EU institutions reached a broad agreement in April 2009, but a
highly political fight over the protection of Internet users' rights in France
has put the entire reform on ice, holding it hostage to an
unpredictable horse-trading process.
Brands must use their
advertising to develop their relationships with good causes, according to a new
study.
The Global Edelman Good
purpose Study, reveals that UK consumers are willing to “punish”
brands that don’t support good causes.There is a rising skepticism in the UK
that brands associate with charities and good causes to raise their profile
rather than genuine support of the cause.
• Two thirds of UK consumers
think brands spend too much on advertising and should invest more in social
causes and promoting them through their advertising.
• Nine out of 10 consumers
believe that brands need to place at least the same weight on society’s
interests as those of business and do more than just give money to good causes.
• The report claims that more
than 50% of consumers say “purpose” is more important than design, innovation
or brand loyalty as a purchase trigger, when quality and price are the same.
• Nearly two-thirds of UK
consumers say that they will buy and recommend products and services from
companies that support a good cause.
•
Carol Cone, managing director of brand & corporate citizenship at
Edelman, says: “Cause related-marketing, as we know it, is dead. It is no
longer enough to slap a ribbon on a product. Consumers seek deeper involvement
in social issues and expect brands and companies to provide various means of
engagement. We call this the rise of the ’citizen consumer’.”
Sit Down, You're Rocking the Boat!
Frequent benefactors of CRM campaigns, due to
their largely non-controversial nature, are educational programs. Among the
early and well-known national CRM efforts was Visa's 1997 "Read a
Story" campaign, where Visa pledged a donation to a group called
"Reading Is Fundamental" for each cardholder transaction. Today, CRM
efforts involving the educational arena have become more elaborate. Take, for
example, Upromise, a program involving major companies like Exxon Mobil, Coca
Cola, McDonald's and New York Life Insurance. Each time a parent, grandparent
or other caring adult patronizes one of the over 20,000 grocery or drug stores,
more than 40,000 retail stores and services, more than 8,000 restaurants and
over 350 online retailers affiliated with the program, rents a car from Avis,
or buys or sells a home with an affiliated real estate company, he or she can
request that a portion of the amount be deposited in a college savings account
established in a child or grandchild's name. The size of the contributions
varies. While a few participants pledge as much as 10 percent of the purchasing
price, most donate one percent. Thus, in order to earn $1,000 for college,
relatives and friends must purchase $100,000 of goods and services, while
providing the participating companies with a great deal of valuable demographic
information.
Founded in 1982 to "eradicate breast
cancer as a life-threatening disease." the Susan G. Komen
Foundation has become one of the most visible fund raising organizations for
cancer research, as well as a favorite CRM charity. Its annual "Race for
the Cure" is the largest ongoing sports/fund-raising event in the country.
More than most non-profits, the Komen Foundation is actively involved in
marketing its event to companies in search of CRM ventures. In 2006, some
twenty large companies, including Kellogg's, Yoplait yoghurt, Pier 1 Imports,
Re/Max Real Estate, and American Airlines were members of Komen's Million
Dollar Council. In addition to paying a million dollars for the right to serve
as official sponsors of the annual race, each company has separate CRM efforts
that showcase their connections to the cause. Yoplait, for example, has pledged
to donate 10 cents for each of the first 30 million yoghurt lids it receives
from customers to the Komen Foundation. Not to be outdone, Kellogg's promises
to send a pink ribbon heart pin to every customer who donates five dollars to
the Komen Foundation and mails proof of the contribution along with two
purchase labels from specially-marked cereal boxes.
Also partnering with Komen is BMW. The
automaker has developed an elaborate scheme to benefit the Susan B. Komen
Foundation -- and possibly itself. As part of a campaign called "Ultimate
Drive," BMW promises to donate one dollar for each mile of test driving
during a particular period, and to donate a percentage from the sale of its
"Pink Ribbon Collection" of watches, T-shirts and notebooks to the
Susan G. Komen Breast Cancer Foundation. For anyone doubting the marketing
power of breast cancer awareness, I recommend a trip to any department store
during October, "the official Breast Cancer Awareness month." The
sheer number of manufactures who adorn their products with pink ribbons and
offer to donate a share of their sales to the cause is overwhelming.
Markets Without a Cause
There are six main types of CRM arrangements.
The first four relate to standard corporate practices. These are: advertising, where a business aligns
itself with a particular cause and uses ads to communicate the cause's message;
public relations, where a
business calls press and public attention to a strategic partnership between
itself and a non-profit group; sponsorship,
where a business helps fund a particular program or event; licensing, where a business pays to
use a charity logo on its products or services; and direct marketing, where both a business and a non-profit raise
funds and promote brand awareness.
A fifth type of CRM is facilitated giving,
where a business facilitates customer donations to the charity ... or to
themselves! The ongoing effort by Ameren, an Illinois energy supplier, is a
good example. In their monthly bills, Ameren customers receive a plea for
donations to the corporation's "Warm Neighbor" program, a fund
established to help Ameren customers who are unable to pay their utility bills
and/or weatherize their homes. While the energy supplier contributes an
unspecified amount, the program relies on the generosity of Ameren customers.
Lost -- or deliberately obscured -- is the fact that customers are helping
other customers settle their debts to Ameren. Other utility companies use the
same strategy. A few years ago, the telecom company then known as SBC Ameritech
launched its "Bridge the Digital Divide" program, to provide people
with basic computer knowledge using the same collection strategies.
The sixth and most widely used CRM practice
is purchase-triggered donations. This is where a company pledges to contribute
a percentage or set amount of a product's price to a charitable cause or
organizations. The American Express campaign to restore the Statue of Liberty,
mentioned above, is credited as the blueprint. The company promised to
contribute one cent for every card transaction and $1 for every new card issued
during the last quarter of 1983. American Express not only collected $1.7
million for the restoration effort – there was a 28 percent increase in use of
their credit cards, not to mention massive press coverage and free publicity.
These results were not lost on other businesses. Between 1990 and 1999,
American companies spent increasing amounts on CRM; the total annual sum has
now passed the one billion dollar mark.
Sit Down, You're Rocking the Boat!
Frequent benefactors of CRM campaigns, due to
their largely non-controversial nature, are educational programs. Among the
early and well-known national CRM efforts was Visa's 1997 "Read a
Story" campaign, where Visa pledged a donation to a group called
"Reading Is Fundamental" for each cardholder transaction. Today, CRM
efforts involving the educational arena have become more elaborate. Take, for
example, Upromise, a program involving major companies like Exxon Mobil,
Coca Cola, McDonald's and
New York Life Insurance. Each time a parent, grandparent or other caring adult
patronizes one of the over 20,000 grocery or drug stores, more than 40,000
retail stores and services, more than 8,000 restaurants and over 350 online
retailers affiliated with the program, rents a car from Avis, or buys or sells
a home with an affiliated real estate company, he or she can request that a
portion of the amount be deposited in a college savings account established in
a child or grandchild's name. The size of the contributions varies. While a few
participants pledge as much as 10 percent of the purchasing price, most donate
one percent. Thus, in order to earn $1,000 for college, relatives and friends
must purchase $100,000 of goods and services, while providing the participating
companies with a great deal of valuable demographic information.
Founded in 1982 to "eradicate breast
cancer as a life-threatening disease." the Susan G. Komen
Foundation has become one of the most visible fund raising organizations
for cancer research, as well as a favorite CRM charity. Its annual "Race
for the Cure" is the largest ongoing sports/fund-raising event in the
country. More than most non-profits, the Komen Foundation is actively involved
in marketing its event to companies in search of CRM ventures. In 2006, some
twenty large companies, including Kellogg's, Yoplait yoghurt, Pier 1 Imports,
Re/Max Real Estate, and American Airlines were members of Komen's Million
Dollar Council. In addition to paying a million dollars for the right to serve
as official sponsors of the annual race, each company has separate CRM efforts
that showcase their connections to the cause. Yoplait, for example, has pledged
to donate 10 cents for each of the first 30 million yoghurt lids it receives
from customers to the Komen Foundation. Not to be outdone, Kellogg's promises
to send a pink ribbon heart pin to every customer who donates five dollars to
the Komen Foundation and mails proof of the contribution along with two
purchase labels from specially-marked cereal boxes.
Also partnering with Komen is BMW. The
automaker has developed an elaborate scheme to benefit the Susan B. Komen
Foundation -- and possibly itself. As part of a campaign called "Ultimate
Drive," BMW promises to donate one dollar for each mile of test driving
during a particular period, and to donate a percentage from the sale of its
"Pink Ribbon Collection" of watches, T-shirts and notebooks to the
Susan G. Komen Breast Cancer Foundation. For anyone doubting the marketing
power of breast cancer awareness, I recommend a trip to any department store
during October, "the official Breast Cancer Awareness month." The
sheer number of manufactures who adorn their products with pink ribbons and
offer to donate a share of their sales to the cause is overwhelming.
The Changing Face of CRM
Sometimes a company deliberately ties its
identity so closely with its CRM efforts that it, by design or pure
coincidence, appears to be a non-profit outfit itself. Working Assets, a
for-profit company headquartered in San Francisco, is one example. As a
self-described "socially responsible long distance telephone and credit
card company," Working Assets donates one percent of customers' telephone
charges and 10 cents for each credit card transaction it processes to nonprofit
organizations working for peace, human rights, economic justice, or the
environment. An annual ballot listing participating organizations is sent to
Working Assets customers, to determine how the unrestricted general-support grants
are allocated. During its first year in 1986, Working Assets donated $32,000 to
non-profit organizations. In 1997, donations totaled nearly $3 million; by 2005
some $4 million was donated. Today, the company claims to have donated a total
of $50 million to various causes through its CRM efforts.
As new technologies emerge, CRM efforts
follow. One example is the "giving malls" that have sprung up on the
Internet. Since 1997, iGive.com has
offered customers the opportunity to shop from over 400 affiliated merchants
and to direct up to 39 percent of every purchase (although the typical donation
is three percent) to more than 18,000 nonprofits, often local chapters of large
national non-profit organizations. The chance to be associated with a good
cause is not lost on retail giants like Amanzon.com, L.L Bean, Barnes &
Noble, Office Max, eBay and Dell. During its nine years in existence, iGive.com
has helped distribute nearly two million dollars to a total of 30,000
charitable causes.
Looking a Gift Horse in the Mouth
At first glance, CRM appears to be a win-win
situation. Charities get needed funds, while businesses get to bask in the
glory of others' good deeds. Judging by its popularity, business has clearly
embraced the CRM concept and few non-profit organizations are turning the
private sector away.
However, this does not mean that merging
marketing and social causes is without problems. Although CRM may do a
wonderful job in collecting funds for affiliated charities, it should not be
forgotten that social causes, in desperate need of funding, may venture into
partnerships that are far from equal. Sometimes, CRM partnerships hold the
potential of harming more than helping non-profits.
The botched pact between the American Medical
Association (AMA) and Sunbeam Corporation serves as a cautionary example. In
the summer of 1997, the AMA agreed to endorse nine products in Sunbeam's
"Health at Home" line, including blood-pressure monitors and
thermometers. In return, Sunbeam would pay a percentage of sales to the AMA in
the form of "royalties," to be used for the AMA's research and
education programs. For Sunbeam, the AMA seal of approval would provide a
competitive advantage that could significantly boost sales.But there was an
immediate outcry both.
Profits double for job reward firm
Glob force, an Irish firm that runs employee reward schemes for
some of the world's biggest companies, doubled its profits last year and is predicting
further growth. The company made an operating profit of €2 million last year,
up from €1 million in 2007. Revenues rose by 16 per cent to €54.3 million in
2008, meaning they have doubled in the past two years.
Glob force chief executive Eric Mosley, who is based in the US,
said the firm had continued to grow throughout the global economic slump. It is
now seeing a "huge pick-up" in economic sentiment in America, where
most of its customers are based.
"It is completely different to the first part of the year
when there was pessimism everywhere," said Mosley.
Globoforce employs about 100 people, and has deals with firms
including Intel, Symantec and KPMG. Their employees use the Globoforce system
to give online rewards to their colleagues, usually in the form of points that
can be cashed in for gift vouchers.
Mosley said that Globoforce had struck several new deals, and some existing
customers had extended their use of the system due to the downturn.
"In a recession, the first thing to go is morale, because
employees feels their jobs are in doubt. Companies have limited tools to deal
with that, and we have seen greater interest in our product," he said.
The firm recently formed a partnership with Ammado, another
Dublin firm which has developed an online donation system for charities.
Mosley said that employees in big companies were actively asking
for the option to donate their incentive rewards to charities. He described the
deal with Ammado as "a very important partnership".
Glob force has accumulated losses of €9 million, but has
shareholders' funds of €3.7 million. It is backed by Atlas Capital and Balder
ton Capital.
Going hi-tech for a cause
Charities balance the pros and cons of using the Internet for
their work. Some like it, some don’t. CHRISTOPHER LIM reports
An email can travel a lot further than a physical flyer. And as
economic constraints put a damper on lavish physical outreach events,
charitable organizations are looking to the Web to broaden their reach.
In fact, some are willing to pay middleman providers to connect
with an international audience more effectively, rather than just use freely
available tools on the Internet. And with the arrival of international
Web-based philanthropy business, Singapore’s charity reach looks set to make
serious virtual strides.
Ammado is a business that looks set to widen charitable causes
on the Internet. Singapore MD Joeri Gianotten managed to raise $1,300 during
the OSIM triathlon this month for local charity Aidha and a few others
overseas. This may not seem like a lot, but Mr. Gianotten was acting in a
personal capacity and reached out to donors through e-mail and social networking
website Face book.
What Ammado does is to facilitate charitable contributions from
everyone – from individuals to multinational corporations. When it was founded
in 2005, Ammado focused on helping non-profit organizations connect donors with
recipients. But last year it started making it easy for individuals to donate
to their charities of choice, which Ammado calls The Giving Circle.This was
extended in July this year with Ammado’s most viral concept yet: peer-to-peer
giving. The catchy name masks a simple concept. Anyone can use it to start
raising money for a cause and invite their networks to contribute.
Making it easy
Ammado’s most important service is what it offers companies.
It’s a for-profit entity, and this is where it makes money. It charges companies
a fee for making it easy for their employees to participate in the donation
process.
This fee can range from a few hundred dollars for small and
medium enterprises (SMEs) to five figures for MNCs with thousands of employees.
If a company decides it wants to give $10,000 to charity, Ammado will provide
the software interface for individual employees to decide exactly how this sum
is apportioned. Typically, each person will be given a coupon code for, say,
$10 and will then decide which specific cause they want that $10 of company
money to benefit.
“This kind of micro-philanthropy gives employees a greater sense
of participation in what their companies are doing and empowers them to choose
who benefits,” says Terry Farris, Ammado’s head of global strategy.
Ammado will also be implementing payroll deduction systems that
will allow employees to choose where their monthly payments go, instead of
being restricted to a standard beneficiary they may feel no affinity for. Big
names like Time Warner and Diageo are Ammado customers, proving that companies
are willing to pay for this kind of product.
“We’re experimenting with using the Ammado platform to
supplement an e-card idea for our Christmas greetings this year,” says June
Kong-Dhanabalan, who handles public affairs and communications at Coca-Cola
Singapore, which is also an Ammado customer. “It is an innovative way of using
our influence to create greater good, through a digital platform that is
relevant and easy to use.”
Local start-up The Kind Exchange, which matches volunteers with
charitable groups that need them in Singapore, is also looking to expand its
use of technology in an upcoming revamp of its website. “Ultimately, when
volume is at a certain level, our goal will be to automate a direct match
between a volunteer and a community group,” says Victoria Camelio, The Kind
Exchange’s director of operations, who adds that, in the meantime, the group
has to play a more visible middleman role.
Andrew Hooper-Nguyen, The Kind Exchange’s chairman, says that
while the non-profit company is on Face book, its use of technology has been
carefully chosen to suit its needs. For example, Mr. Hooper-Nguyen explains
that The Kind Exchange is not on micro- blogging service Twitter because, in
his opinion, it addresses a younger demographic than the over-30 professional
crowd The Kind Exchange targets. Its current approach, which combines its own
website with its Face book page, has served The Kind Exchange well. It matched
55 volunteers with charities so far this year, compared with 35 matches for the
whole of last year.
However, not everyone is enamored of the Web, and some
organizations have decided to focus their resources more on physical efforts,
where they have already made headway.
Vivian Claire-Liu, founding director of Philanthropy Works,
hasn’t been so quick to jump online. Philanthropy Works isn’t a charity, but a
group that seeks to help philanthropists make the leap from being interested in
a particular charitable area to actually implementing a strategy.
“The approach with respect to philanthropists needs to be a
personal one; in fact, we do not solicit at all,” says Ms Claire-Liu,
explaining why Philanthropy Works has no current public online presence. “This
is a supremely selective and private segment,” she says. “Hence, what works is
for them to approach us when they wish to start the dialogue.” This indicates
that she deals with high-end clientele rather than grassroots efforts.
Despite the lack of solicitation efforts, and with few
expectations, a redesigned website for Philanthropy Works is scheduled to be
launched this year. Facebook and Twitter, however, are still under
consideration because of their potential, but Ms Claire-Liu points out that her
group hasn’t needed either tool to reach philanthropists.
“That said, we’ll probably launch a Face book page to provide
thought leadership on key parameters of the sector, as well as provide support
for any strategy that involves changes in people’s attitudes, as well as
Philanthropy Works venture philanthropy funds,” she says. “A high-frequency
outreach model a la Twitter is actually superfluous and potentially complicates
Philanthropy Works’ positioning. Our clients are supremely time poor, and our
potential recruits probably will be as well, given that we target mainly the
top bankers and consultants for their due diligence and analytical skill sets.”
Of course, there are some organizations that feel their
resources are scarce to the point of ignoring social Web media, and focus their
efforts entirely on grassroots efforts.
The APB Foundation is helping the charitable Apex Club of
Singapore organize its second Groceries with Heart campaign next month, which
will help distribute toiletries and basic food items to elderly destitute and
needy families. Neither Face book nor Twitter will be involved.
Bread-and-butter issues
“In view of the economic downturn, the APB Foundation aims to
place our support where it matters most, and this means addressing
bread-and-butter issues,” says Sarah Koh, general manager of group corporate
communications for Asia Pacific Breweries.
“We communicated the project and reminders to our beneficiaries
via home visits and telephone calls. Volunteers have been recruited via
word-of-mouth and email blasts. Although these methods are more time consuming,
they have served us well in publicizing the official launch of Groceries With
Heart.”
Ms Koh recognizes, however, that the publicity needs of projects
differ, so the APB Foundation evaluates each project based on its specific aims
and resources instead of blanket policies that exclude Web tools.
The same focus on fundamentals applies to publicity for The
Business Times Budding Artists Fund and The Straits Times School Pocket Money
Fund, which are publicized in SPH’s publications and new media channels such as
RedNano, Stomp and Razer TV, but never at the expense of channeling resources
to beneficiaries.
The importance of keeping one’s eye on the goal is nicely
illustrated by the latest direction of For Cause Campaigns, which helps raise
funds for low-profile charities by organizing themed events, the proceeds from
which go directly to their specified beneficiary.
For Cause Campaigns’ latest project is Shopping for Cause, which
aims to unite shops in Haji Lane through a month-long shopping promotion
tentatively scheduled to take place before the end of the year.
Its debut project in July, Clubbing For Cause, was organized and
publicized almost exclusively through social media like Face book. But this
time around, the group hopes to combine that high-tech approach with a greater
focus on offline fundamentals such as engaging traditional media like
newspapers, according to Edvarcl Heng, who handles For Cause Campaigns’ public
relations.
It started out on the Web and is now seeking to rebalance its
efforts between the virtual and physical realms.
Mr. Heng hopes the group’s newly balanced publicity approach
will help Shopping For Cause double the estimated $50,000 of traditional media
coverage that Clubbing For Cause received. “An offline component is important
because we realize there’s an audience that social media can’t reach,” he says.
The lesson seems to be that social media tools like Face book
and Twitter are more than marketing gimmicks, but need to be used for the right
task. Like any tool, they can help charitable organisations further their
goals, but don’t count for much in a vacuum. On the whole, however, it looks
like charities can’t afford to ignore the Internet’s potential for reaching
untapped audiences.
Cause-related marketing can set you apart in an economic downturn
In today's economic climate, the natural instinct is to
cut back on all costs, especially costs that are outside of day-to-day
operating expenses. However, research shows that instinct may be incorrect.
Many studies show that in downturns like this one – it is the little things
that differentiate you from your competitors that will keep you in business.
Consider this recent study from Edleman, November
2008:
"New findings from this year's good purpose TM global
study of consumer attitudes reveal that nearly seven in 10 (68%) consumers
would remain loyal to a brand during a recession if it supports a good
cause."* That same study states that "76% of consumers globally like
to buy from brands that make a donation to worthy causes."
So the question is – is your business tapping into this seven in
10 group of consumers? Or are you isolated within your own company budgets?
Let's ask another question – If you are doing good things in the community, do
your consumers know about it?
Cause-related marketing is a relatively new field of marketing –
and a fast growing one. We have all see corporate sponsorships before – but in
the past 10 years, the ties between corporate identity and the support of social
causes have become stronger and more prominent. What's more - leveraging your
company's corporate social responsibility has taken on new meaning as consumers
become more information savvy and as the internet changes the way we all do
business. Straight forward advertising may no longer work to spread your
message and success in this field will depend not only on the scope of your
company's community giving – but also in the ways in which you broadcast your
message.
Many companies are finding that social media is the new answer –
realizing that being open and honest and giving customers and employees the
opportunity to engage with your company is what being online is all about.
There is a new era of individuality sweeping through the social and business
global culture. Everything is customized, all information is fair game,
everyone wants to participate and everyone has an opinion. Despite the plethora
of social media venues currently out there – none has adequately filled the
niche for capitalizing on the cause-related marketing field yet – until now.
Chicago land Chamber of Commerce business member, ammado,
believes they have the solution to your cause-related marketing woes. Their
model integrates the latest state-of-the-art social media with the world's most
sophisticated online donation feature – giving companies a ready-made corporate
social responsibility online platform or 'CSR-in-a-box,' as ammado staff
sometimes calls it. Ammado CEO Peter Conlon explains, "Ammado enables
companies to truly engage all their stakeholders in their CSR efforts;
traditionally corporate giving means that management decides how corporate
funds are distributed. We want to bring it back to the individual level of the
employee or customer and let them decide which causes they want to
support." Their model is attempting to create a paradigm shift in the way
that companies look at – not only charitable giving – but also online social
engagement.
The Chicago land Chamber of Commerce Foundation has begun
to actively participate on the ammado platform, taking full advantage of all
the tools ammado has to offer. In line with their goals for Innovate Now, the
Chamber Foundation recognizes the potential for the ammado platform to bring
innovation, design and social media together to promote good business.
As your company moves through these tough economic times and
tries to decide what strategies to adopt to move forward, consider the win-win
of cause-related marketing. Imagine – doing something good could, in the end,
bring your company the recognition, retained and new business that it deserves.
An SR On-Line Community of Kindness: (ammado.com)
The dearth of social media communities can make one
question why we should be interested in yet another registration-required,
walled, on-line community. In the case of ammado.com, the answer is that it is
a tool/service unlike any other for corporations, non-profits and individuals
participating in the social responsibility field.
Ammado, which co-founder Anna Kupka referred to as
“CSR in a box,” was founded in 2005 as a mission-based, for-profit enterprise
in Dublin. The company was formed by “serial entrepreneur” Peter Conlon and
Kupka, who had served as General Counsel at the Xsil Group, a world leader in
the supply of laser machining tools for the semiconductor industry, also
founded by Conlon. Ammado is headquartered in Dublin with development centers
in Amsterdam, Chicago, Dhaka, Düsseldorf, Hong Kong, Lodz, London, Los Angeles,
Novi Sad, Paris, Philadelphia, Prague, Rome, Singapore, Sydney, Tokyo, and
Wasshington to
It took about three years to develop and launch the ammado.com site,
which today is available in 12 languages (English, Dutch, French, German,
Spanish, Portuguese, Italian, Polish, Korean, Japanese, simplified and
traditional Chinese) and boasts activities in more than 100 countries.
So, what is ammado.com?
Conlon said ammado has a vision to build a community that will
change the world. Individuals share their interests, photos and videos, and
connect with others who share their interests. They also can donate to, and
campaign for, their favorite nonprofits and causes. Nonprofits use ammado to
reach a large interested audience, engage volunteers, increase awareness of
their brand and engage new supporters and volunteers.
"ammado provides space for nonprofits to upload information
about themselves and the work they do, publish news and articles, share photos
and videos with their network, create polls and petitions and communicate
instantly with their supporters, potential partners, and other nonprofits from
around the world," the ammado site states.
For corporations, ammado offers a global CSR engagement and
giving platform. Rather than take on the administrative burden of corporate
philanthropic giving and employee giving programs, corporations can direct
people to ammado.
So in summary, ammado provides a
platform for:
•
Corporations to manage their Corporate Social
Responsibility (CSR) activities (both internal and external)
•
Nonprofits to promote their cause(s) and solicit
donations, and
•
Individuals to research, engage with, and support causes
and organizations.
Of course, this can be done through other means than ammado, but
the integration of company profiles, blogging tools and a secure donation
interface called the “Giving Circle” make ammado a “one-stop shop.”
As described on the ammado site:
The ammado Giving Circle enables people to conduct all their
giving and cause-related activities from one central place – their ammado
profile. This allows nonprofits such as charities, sports clubs, schools and
universities to receive micro-donations in a unique and innovative way. The
minimum donation is $5 or its equivalent in any of 32 other currencies.
Whatever the donor’s giving budget is, they can “slice and dice” this budget
and divide it between their favorite ammado nonprofits, thus benefiting
multiple organizations simultaneously. Ammado members can also set up recurring
donations from their profiles with the flexibility to seamlessly change the
recipients and the giving amount every month.
The community approach to SR weaves together individuals,
nonprofits and corporations, Conlon said last week. "For example,
not-for-profits find each other on ammado and begin collaborating,” he said.
“They exchange best practices, and even small groups can be found and supported
by people across the globe—and they don’t need to make a large investment in
technology."
He gave an example of four nuns working in a remote area,
without even a computer of their own. They took photos with their camera
phones, traveled to a university in a nearby city that allowed them to use a
PC, and created a free nonprofit page on ammado, where they began to receive
contributions from far away.
Individuals and nonprofits can join ammado for free.
Corporations pay for their presence on ammado. The site allows companies to set
up a CSR profile; share their values, goals and activities; use the site’s
tools that include photo albums, videos, document libraries, polls,
conversations, (private) messaging and activity feeds; create public or private
communities for targeted interaction with different stakeholders; highlight
existing and initiate new partnerships with nonprofits and give more visibility
to the company’s community involvement and philanthropic efforts.
As mentioned above, they also can allow their employees and
customers to choose how corporate matching funds should be distributed to
charities throughout the world. (Source:
SR Link Author: Thomas Keefe
Date: April 21, 2009)
Technology awards short list announced:-
SEVEN SHORLISTED firms have been announced for the second annual
Irish Technology Leadership Group (ITLG)/ Irish Times innovation award to be
presented in Silicon Valley's Stanford University next month.
The shortlisted firms are:
Ammado, the social network for charities; Customer Minds, a
provider of online marketing management tools; Firecomms, which develops
components for high speed home networks and in-car entertainment systems;
Lincor Solutions, which builds bedside information and entertainment systems
for hospitals; Open Hydro, the designer and manufacturer of marine turbines to
generate renewable energy from tides; Powervation, a designer of energy
efficient power solutions for communications, computing and consumer
applications; and Wave bob, which is developing technology to convert ocean
energy into electricity.
Recognizing the increased interest in green technology, a
renewable energy award will be given as well as a company of the year. Open
Hydro and Wavebob are also shortlisted for this award.
Last year's recipient of the ITLG/ Irish Times innovation award,
software firm Changing Worlds, drew significant attention from the main players
in the telecoms technology space and was acquired by US-quoted group Amdocs for
€46.2 million.
Tánaiste Mary Coughlan will deliver the keynote at the awards
ceremony which takes place in Stanford University on April 14th.
OBJECTIVE OF THE STUDY
The main objective of the
study is to evaluate the impact of ergonomics in organization response toward
it. The study has aim to cover following objectives:
•
To defining what is Cause Related Marketing.
•
What was the main problem in developing the design of Cause
Related Marketing
• To study the Marketing issues arises due &
Cause Related Marketing
• To study the
limitation of Cause Related Marketing
SCOPE OF THE STUDY
The scope for CRM
programmes, at various levels of consumer’s social awareness/ social
consciousness, can be assessed with the help of the following matrix.
In the above matrix, X-axis
indicates social sensitivity/social empathy/social consciousness of customers
and Y-axis indicates brand image/reputation of the companies.
The
following possibilities can be derived from the given matrix:-
• When social awareness (SA)
among customers is low, and brand image of a company is also low, there will be
no scope for CRM initiatives. For instance, if a not-so-well known company
propagates social awareness to less social Conscious consumers, the response
from consumers is negligible and hence the success of CRM initiatives would
definitely be null. This is because, primarily, consumers would not pay heed to
company’s good messages since they are highly individualistic. Secondly, the
company is not carrying any brand image.
• When SA is low and the
brand image is high, CRM can still work for companies. For instance, when a
renowned brand promotes a cause using its image, the response from consumers
would be minimum. This is because; the numbers of consumers who have the ability
to appreciate the company’s efforts of promoting social causes are very
low.
• When SA is high, brand reputation is low,
success of CRM is moderate. This is because; the number of socially sensitive
consumers is high. As such, once the company wins the trust of the customer,
its CRM initiatives clicks very well.
• When SA is high and brand
image is high, the success of CRM is very high. This is the ideal state for initiating
CRM initiatives. Company is sure to witness the success of its CRM initiatives.
RESEARCH
METHODOLOGY
The data for
the study will by collected by using secondary sources. The data will collect
by using various techniques and sources which are briefly described below. This
study will be primarily focused employee downsizing Indian job for boom to
gloom.
•
HR reviews
•
Journals
•
Magazines
•
Websites(internet)
•
Newspaper
CORE STUDY: FINDING DATA AND ANALYSIS
Cause marketing or
cause-related marketing refers to a type of marketing involving the cooperative
efforts of a "for profit" business and a non-profit organization for
mutual benefit. The term is sometimes used more broadly and generally to refer
to any type of marketing effort for social and other charitable causes,
including in-house marketing efforts by non-profit organizations.
CRM IMPACT ON COMPANIES SALES
In Cause-Related Marketing
(CRM) a corporation partners with a non-profit organization. Typically, parts
of the receipts from product or service sales are donated to the non-profit
organization. Both parties benefit: the non-profit gets additional funding and
the company gains brand visibility and improved brand image. In crowded markets
where traditional marketing campaigns can fail to garner attention,
Cause-Related Marketing is a way to stand out.
American Express was the
corporation behind this marketing technique. It partnered with the Statue of
Liberty-Ellis Island Foundation during the time the Statue of Liberty was being
restored for the American bicentennial. The campaign generated $1.7 million for
the foundation and contributed to increases in card membership of 45% and card
usage of 28%.
Several global brands
followed in American Express’ footsteps. Dollar-Rent-A-Car partnered with
Special Olympics; for every case bought, Coca-Cola donated a few cents to
Mothers Against Drunk drivers; Briggs and Stratton, a lawnmower manufacturer,
joined forces with the National Wildlife Federation by encouraging the public
to cut pollution emissions through lawn mower maintenance.
Other examples include
M.A.C. Cosmetics which donated 100 per cent of its sales from $14 and $16
lipsticks to various AIDS charities and raised $100 million. Jones Apparel
group raised $1.5 million to be split amongst various non-profit organizations
for education - this led to higher employee retention for them as most workers
deemed children’s causes to be most important.
Findings
·
“CAUSE RELATED MARKETING” in its present form and content
has gained popular attention only in recent years, its origin can be traced
back to the evolution of the concept of a welfare state.
•
A moral argument for CRM.
•
An economic argument for CRM.
•
Arguments against
CAUSE RELATED MARKETING.
•
Big brands like I.T.C and MAHINDRA are adopting CRM strategies
that are different from their core work.
• I.T.C launched e-Choupal –
a knowledge portal providing farmers with a range of information and services.
Designed to enable them to bargain collectively and enhance their transitive
power.
CONCLUSION
So as we can see through the report and all the topics and activities, I
have covered in it With all the activity in the
Indian cellular telephony industry being centered on the services space, the
complete absence of a local hardware-manufacturing base has become glaringly evident over the years. The establishment of
such a base would greatly reduce the costs involved in importing telecom
equipment. It would also create synergies between manufacturers and service
providers, which would in turn facilitate further reduction in tariffs for the
cellular subscribers. The government has already taken several initiatives to
invite foreign majors to establish manufacturing locations in India. More
than ten global majors including Nokia, Ericsson, Alcatel, Samsung and LG have
committed to invest more than USD$5 billion in setting up plants across the
country.
Apart from serving local demand, India’s geographic
location and extended coastline provides these companies with the added
advantage of serving the thriving Asia Pacific and African markets. Recent
technological advances have enabled the convergence of voice, video and data
applications onto a single network. The major benefactor of this trend is the
cellular phone, which will transform from being a mere communication device to
a complete mobile office and entertainment platform. However, convergence
brings with it a host of tricky legal and regulatory issues, which will have to
be resolved swiftly in order to make way for the next generation networks. It
will be interesting to observe how the Indian telecom sector adapts to such
trends in the times to come.
RECOMMENDATION
Cause-related marketing can
become a cornerstone of your marketing plan. Your cause-related marketing
activities should highlight your company's reputation within your target
market. Cause-related marketing can positively differentiate your company from your
competitors and provide an edge that delivers other tangible benefits,
including:
• Increased sales
• Increased visibility
• Increased customer loyalty
• Enhanced company image
• Positive media coverage
By choosing a cause you are
passionate about, cause-related marketing is emotionally fulfilling. It's a way
to merge your profit center with your "passion center" and build a
business that mirrors your personal values, beliefs and integrity. If your
cause also resonates with your target market, your activities will generate
tremendous goodwill and media attention can be its side effect.
LIMITATION
The study might be limited
by following factors:
• Reliability & validity
of data as it is called from secondary sources.
• Personal limitation- as all
analysis & interpretation based on my knowledge & content.
• There is lack of proper
time.
• And the literature in this
particular topic is limited.
BIBLIOGRAPHY
• Adler, S. M. (2006). Cause
for Concern: Result- Oriented Cause Marketing. Ohio: Thompson Higher
Education.
• Adkins, S. (2000).
Cause-Related Marketing: Who Cares Win. Oxford, Auckland, Boston, Johannesburg,
Melbourne, New Delhi: Butterworth-Heinemann. http://www.quackwatch.org
• American Express (2003
November 25). American Express Launches National Campaign to Re-open the Statue
of Liberty: Pledges Minimum of $3 Million with Card member Support. Current
News Release. Retrieved March 2004 from
• http://home3.americanexpress.com/corp/latestnews/statue-of-liberty.asp Andreasen, A. R. (1996 November-December).
Profits for Nonprofits: Find a Corporate Partner. Harvard Business Review,
47-50.
• Andreasen, A. R. (2001).
Ethics in Social Marketing. Washington, D.C.: Georgetown University Press.
• Barber, B. R. (1998). A
Place for Us: How to Make Society Civil and Democracy Strong. New York: Hill
and Wang.
• Bishoff, D. (2000
December/2001 January). Consuming Passions. Ms. Magazine, 63.Bronn, P. S., and
Vrioni, A.B. (2001).
• Corporate social
responsibility and cause-related marketing: an overview. International Journal
of Advertising, Vol. 20 (1), 207-222.
• Marketing Mastermind
• WWW.Search ebscohost.com
• ICFAI journal
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