Cause branding ls_apresentation042308

Cause branding ls_apresentation042308

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  Cause Branding andSocial Marketing Kristian Darigan Vice President, Cause Branding - Cone [email protected] Check out my blog at: www.doyoustandforsomething.com
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  Our Profile Market Position: 28 year-old, globally-recognized strategy and communications agency Mission: Helping organizations build trusted relationships with their key stakeholders Strengths: 100+ professionals with expertise in: Cause BrandingTM Corporate Responsibility Brand Marketing Crisis Prevention and Management Affiliation: Member of The Omnicom Group (NYSE: OMC)
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  Our Purpose Better Business:We build and communicate authentic, credible and relevant brands that excite and engage key stakeholders Greater Good: We ignite and leverage movements for societal impact
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  Our Knowledge Leadership Acknowledged as the nation’s leading cause practice Keynote at leading conferences and seminars Author of proprietary, industry-standard research series Knowledge Leadership Library Cone Return on Investment Tool Influencer partnerships
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  Our Emergent CauseBrands
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  Our Nonprofit Experience Strategic Partnership Counsel Cause Branding Campaigns Integrated Marketing Communications
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  Corporate Perspective
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  Definition of CauseBranding Cause Branding for Companies Business Strategy Social Impact A business strategy that integrates a social issue or cause into brand equity and organizational identity to gain significant bottom-line and community impacts
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  Evolution of Cause 1982 | 1999 | ePhilanthropy Newman’s begins to emerge 1911 & 1913 | Own is 1993 | Cause with birth of 2008 | Private grantmaking founded and Branding GuideStar, Cause is foundation, set up to 1954 | GE gives all profits becomes Impact Online driving force be self-governing, is becomes 1st to to charities multifaceted and others for pioneered by match employee through launch marketing Rockefeller and contributions to of Avon Breast and Carnegie charity Cancer citizenship Crusade efforts 1940’s | Private 1976 | 2006 | Product (RED) foundations begin Minneapolis For-Profit Business funding evaluations Keystone Charity Model 1891 | 5% Club 1984 | The Statue of social programs Rockefeller they supported of Liberty-Ellis hires manager for his Island Foundation philanthropic pioneers cause- 1997 | Venture affairs related marketing philanthropy is for the popularized by 1914 | The 1st community foundation is created statue’s Harvard Business so people of modest means can respond restoration Review article collectively to neighbors’ needs
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  Cause in Context TRENDSPECTRUM DEFINITIONS DRIVING FORCE BASIC HUMAN VALUE (TIMELESS) MACROTREND MAJOR CULTURAL MOVEMENT (7–10 YRS.) MICROTREND SIZABLE CULTURAL SHIFT (3–5 YRS.) FAD POPULAR IDEA, PRODUCT, OR SERVICE (1–3 YRS.) 10
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  Corporate Cause Spectrum Cause Marketing Cause BrandingSM Cause Platform Corporate Citizenship Worldwide Fund for Women’s Health
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  Cause Marketing andBranding CAUSE Access to breast care for underserved women MISSION SIGNATURE Product Sales Medical Resources Special Events ELEMENTS SUPPORTING ACTIVITIES Online Support Group • Employee Engagement • Women’s Empowerment PARTNERS
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  Corporate Citizenship andCause Platform CORPORATE To improve the lives of women, globally MISSION CAUSE Breast Cancer Domestic Violence Disaster Relief PLATFORM Funding access to care and Putting an end to Responding quickly to finding a cure for breast domestic violence international disasters cancer CORPORATE CITIZENSHIP Employee Policy Research and Development MarComm Strategy Matching, volunteer, and Global product safety Campaign collateral materials, fundraising programs standards advertising, public relations and celebrity endorsement Workplace diversity program Promotional product sales and scholarship opportunities Major customer fundraising for Avon representatives events CAUSE BRANDING & MARKETING
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  Environmental Drivers Post-9/11 Sentiment: Searching for a deeper meaning, Americans expect companies to play an active role in addressing societal needs; rewarding companies that share their values Increased Transparency: Rapid adoption of the Internet has empowered consumers to access corporate information and offer opinions online via blogging, etc. Targeted Outreach: With increased competition for consumers’ share of mind, companies are conducting detailed consumer research to tailor messaging for key audiences Corporate Scandals: Stockholders and the rest of the country is watching. Good corporate citizenship is a must-do, stemming from Enron, WorldCom and other scandals Competition for Employees: 77% of employees say that a company’s commitment to social issues plays a role in determining where to work
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  Business Context 90% of managers have “citizenship goals” as part of corporate business principles More than half of marketing/community affairs directors carry out cause initiatives In past five years, companies report increased investment in corporate citizenship (staff: 74%, budget: 72%, executive time: 68%) 65% of senior executives believe ROI from cause efforts increased in past few years Brands that engage people emotionally can command 20% to 200% higher prices than competitors and sell in far higher volumes Cause/Passion Branding Industry Specific Investment $1.34 B Retail 39% $1.17 B Media & Publishing 26% 1600 $988 M Food 24% 1400 $922 M Bank 20% 1200 $816 M Cars 19% 1000 Airline 18% 800 Services 16% 600 Telecommunications 14% 400 Insurance 14% Pharmaceutical 13% 200 Food 13% 0 2002 2003 2004 2005 2006 Conference Board, 2002; IEG Sponsorship Report, Business for Social Responsibility; and IEG Sponsorship Report, 2005
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  Business Imperative “The world’s changed. Businesses today aren’t admired. Size is not expected. There’s a bigger gulf today between haves and have-nots than ever before. It’s up to us to use our platform to be a good citizen…it’s a business imperative.” Jeff Immelt Chairman/CEO General Electric
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  Consumer Imperative Americans considera company’s citizenship when deciding… 2007 2004 86% 85% Which companies I want to see doing business in my community 77% 81% Where to work 79% 74% Which products and services to recommend to other people 66% 70% Which stocks or mutual funds to invest in What to buy or where to shop 80% 63% 2007 Cone Cause Evolution Survey, 2004 Cone Corporate Citizenship Study
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  Generation Next 83% will trust a company if it is socially/environmentally responsible 89% are likely to switch from one brand to another if the latter supports a cause 79% want to work for a company that cares about how it impacts society 74% listen to a company’s messages if they have a deep commitment to a cause Cone Cause Millennial Cause Study, 2006 18
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  Business Objectives In partneringwith nonprofits, companies are increasingly seeking to: National Cause: Contribute promotional support, advocacy, fundraising, etc. Local Cause: Localize giving to areas where they operate or are strategically-focused Acquisition and Retention: Build long-term customer relationships Recruitment and Retention: Engage employees via turn-key efforts Perception and Awareness: Improve company perception/brand awareness via cause Social Returns: Deliver greater, measurable social impact Business Returns: Demonstrate ROI via sales and sponsorship performance
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  National Cause Branding . Contribute promotional support, advocacy, fundraising, etc Aldo & Cigna & Yoplait & Youth AIDS March of Dimes Susan G. Komen for the Cure Bloomingdale’s & DKNY & Pottery Barn & Colon Cancer Rock the Vote St. Jude’s Research Alliance Thanks and Giving
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  Local Cause Branding Localizegiving to areas where they operate or are strategically-focused Signature Local Events Community Awareness/ Promotions/ to Advance National Cause Action Campaigns Fundraisers at Retail Campaign Event Community Based Socially Aligned Sponsorships Social Impact Business Initiatives (SABI)
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  Acquisition and Loyalty Buildlong-term customer relationships In the US, 87% of people say when price and Globally, 60% of people chose NOT to quality are equal, they are likely to switch from buy a brand because the company was one brand to another associated with a cause seen as a bad corporate citizen 2007 Cone Cause Evolution Study Wirthlin Worldwide, Corporate Citizenship Balancing Act, 2002
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  Recruitment and Retention Engage,and retain employees via turn-key efforts In the US, 72% of employees wish their Globally, employees create the greatest employers would do more to support a pressures for their companies’ cause or social issue citizenship activities 2007 Cone Cause Evolution Study World Economic Forum
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  Perception and BrandAwareness Improve company perception/brand awareness via cause In the US, 92% of people say they have Globally, 61% of opinion elites say they a more positive image of a product or have recommended a company to others company when it supports a cause in response to a company’s citizenship 2007 Cone Cause Evolution Study APCO Worldwide Global CSR Study, 2004
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  Social Returns Deliver greater,measurable social impact via strategic philanthropy Focused approach yields larger, measurable social gain to help more people Longer-term partnerships deliver longer-term outcomes to improve lives Synergies from harnessing resources multiply impact to enhance communities
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  Business Returns Demonstrate ROIvia sales and sponsorship performance metrics 100% jump 47% increase 600% increase in 138% jump in sales via in sales of Sears’ sales of featured in $50 YouthAids go- dealers products, products in the Starbucks to-market through its Campaign for Real card reloads campaign partnership with Beauty ads; 20% during Habitat for increase in sales promotion for Humanity across brand JumpStart
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  Roundtable Which topics are effecting your work and life? What challenges do they pose for you? What opportunities are there? The Conference Board, 2005; Giving USA, 2005
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  Nonprofit Perspective
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  Cause Context Giving in 2005 grew by more than 10% in human services, environment, and animals, and international affairs; environment and international affairs were not listed categories six years prior All but two categories of charities saw increases in contributions in 2005: health (0.7% drop) and arts/culture (6.6% drop) Giving to educational, religious, children’s, and health organizations has remained consistently strong over time An Inconvenient Truth 2005 Charitable Greenpeace Contributions Save the Whales Video . The Annual Report on Philanthropy,” Giving USA 2006, AAFRC Trust for Philanthropy
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  Donor Imperative 75% of donors say having a personal relationship with a cause or charity is very or somewhat likely to influence their decision to support a cause 78% of donors say they are very or somewhat likely to support a cause or charity if someone they trust is involved with it 71% of donors are motivated to purchase cause-related gifts to introduce a cause they care about to others 29% of Americans volunteered through a formal organization in 2004 Team Hoyt and Girl Scout Donor Influencers Easter Seals Cookie Sales Family 77% Friends 64% Charities 63% Places of Worship 60% Co-Workers 40% Companies 30% Celebrities 15% 2006 Cone Nonprofit Research, 2007 Cone Holiday Trend Tracker, The Urban Institute, 2006
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  Environmental Drivers Growing Competition: Increasedneed to differentiate and become a “charity of choice” Nonprofit Cause Platforms: Identification of singular master issues expressed via aspirational platforms under which cause branding efforts can be positioned Nonprofit Cause Branding: Increased opportunity to break through via focus and audience alignment Targeting Audiences: New focus on specific segments around reframed, relevant issues Personalizing Experiences: Use of customization to drive contact, conversion, cultivation Corporate Relationships: Leveraging of corporate relationships to drive cause brands
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  Growing Competition Increased needto differentiate and become a “charity of choice” There are approximately 1.4 million nonprofit organizations in the U.S. In the last decade, the number of 501(c)(3) nonprofits grew by almost 65% The U.S. economy is in a recession Consumers are subject to 5,000 ads/product impressions every day 75% of donors list “personal belief in nonprofit’s goals” as “very important”
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  Nonprofit Cause Platforms Identificationof singular master issues expressed via aspirational platforms under which cause branding efforts can be positioned Nonprofit Issue Platform Cardiac Reducing Heart Health Disease & Stroke Pediatric Catastrophic Saving Children Diseases Terminal Bringing Joy Illness
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  Nonprofit Cause Branding Increasedopportunity to break through via cause branding Communications Resources Cause Branding Mission-based Development Services Activities A business strategy that aligns the communication resources, development activities and mission-based services of an organization to generate brand equity, funds and social impact
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  Targeting Audiences New focuson specific segments around reframed, relevant issues Nonprofits are packaging relevant programs and resources to reach a target audience Consumers (advocates, volunteers, and donors) are distracted and sophisticated Reciprocal relationships are asking donors to give and nonprofits to provide in-kind Native Americans + Diabetes Latino Initiatives: Latinos + Diabetes Por tu Familia Women + Breast Cancer Survivors + Cancer
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  Personalizing Experiences Use ofcustomization to drive contact, conversion, and cultivation Evangelism Communications Satisfaction Selection Consideration LOYALTY Relevance Awareness Development Contact Conversion Cultivation
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  Corporate Relationships Leveraging ofcorporate relationships to drive cause brands Americans believe corporations should support nonprofits through: 75% Employee volunteerism 67% Cash and product donations 66% Information about the charity on the company’s product or packaging 67% Marketing and advertising support A percentage of a product’s 58% sales to support a cause 2004 Cone Corporate Citizenship Study
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  From Relationship toPartnership Evolution of cause relationships into formal partnerships Aside from financial support, corporate partners can provide the following… – Enhanced visibility through their communication of our cause campaign – Distribution channels through retail promotion and related properties – Connections to employee and business partner networks – Expertise in marketing, strategy development, professional experience, etc. Partnership: A mutually beneficial and respectful relationship that meets the business goals and objectives of both partners while protecting and enhancing the overall mission of each brand
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  Partnership Bill ofRights Our commitment: As a nonprofit partner, we will… Value you as our partner in achieving our shared mission Work together to maximize positive social and business impacts Strive to build a relationship that exceeds your expectations Respect and protect the integrity of your brand Engage you in ongoing, meaningful and honest dialogue Share responsibility for the long-term success of our relationship Provide you with a talented, creative and experienced service team Do what it takes to meet your key objectives Set realistic expectations and deadlines Publicly recognize your commitment
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  Partnership Bill ofRights Your commitment: As a corporate partner, you will… Value us as a partner in achieving our shared mission Work together to maximize positive social and business impacts Build a relationship with us as a key member of your team Respect and protect the integrity of our brand Recognize our capabilities and capitalize on them whenever possible Remain open to creating new solutions to shared challenges Cultivate direct and constructive communication Publicly recognize our commitment and societal impact Establish realistic expectations and deadlines Provide the tools and information we need to be successful
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  Developing an AHACause Brand Select a focus area that aligns with your mission and organization Once identified, pick your partners Put all your assets to work Communicate through every possible channel
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  AHA Objectives Position the American Heart Association (AHA) to better develop Select a Cause That Aligns with Your Goals and execute strategies to achieve the following objectives… Increase overall corporate support to improve revenue generation and reach Create comprehensive relationships with new and existing corporate partners Leverage and maximize resources, assets, and opportunities Infuse the brand with more emotional appeal Strengthen public leadership position within heart disease and stroke 2010 Goal: To reduce coronary heart disease, stroke, and risk by 25%
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  Mutually Beneficial Strategy Selecta Cause That Aligns with Your Goals Develop market offering that will meet both parties objectives… Share brand equity and leadership Make a strategic, focused social impact Become a leader in an uncluttered, trending niche area Create multi-tiered stakeholder relationships
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  The Cause: Womenand Heart Disease Select a Cause That Aligns with Your Goals Identified via a confluence of… Market opportunity Open-niche (Consumer and corporate interest) Increasing corporate interest in supporting women’s health Legitimate need Credible health and awareness gap (Serious health gaps tied to heart disease) Number one killer of women, killing more women than the next seven causes of death combined, awareness remained low (8%) Existing AHA assets Existing underutilized assets (To ensure continuity and low entry cost) American Heart Month, February cause promotion, women’s health assessment tools, educational information and research
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  Positioning for Partnership Firstcommit to a cause, then pick your partners Showcase real, urgent opportunity… To attract similarly focused sponsors…
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  Put all yourassets to work, especially employees Leveraging AHA Assets
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  Put all yourassets to work, especially employees Leveraging Partner Assets
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  From Fundraising toMarketing Communicate through every possible channel Window Displays Web site Media Relations Jumbotron Events Cities Go Red Promotions Spokespersons Billboards
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  The Movement isin Motion! Medical Research: Published ground-breaking Prevention and Treatment Guidelines Release annual “State of the Heart” research National Fundraiser 12,700+ companies participated in Wear Red Day last year Employees donate $5 and dress in red to support the cause Grassroots Awareness: 200+ local Go Red luncheons held Cities and landmarks in more than 30 cities “went red” Celebrity Involvement: Spokespersons: Sigourney Weaver,, Joy Behar, Marie Osmond Other “Influencers” include Gwyneth Paltrow and Julianne Moore National Events: “Rhapsody in Red” and other annual events held in NYC Celebrities e.g. Marcia Gay Harden, Stacy London, and more attend
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  The Movement isin Motion! Consumer Engagement: Web community includes ShopGoRed.com featuring red items “Go Red Check-up” empowers women Credible Voice: Cardiologists spokespersons Dr. Reichman, contributor to Today is a celebrity supporter Corporate Support: National Go Red For Women sponsors are Macy’s and Pfizer Many companies sell cause promotions Educational Materials: Go Red brochures, wallet cards, pins and more help raise awareness More than 34M collateral materials have been distributed to the public Press Coverage: The campaign has garnered 5B media impression since launch Coverage includes, Wall Street Journal, Woman’s Day, Today, etc.
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  The Movement isin Motion (in Boston)! Luncheons: More than 500 people attend the Boston Goes Red luncheon Features a fashion show with local celebrities, silent/ live auctions Local Cause Promotions: Many local companies supported the campaign by donating proceeds from custom products Landmarks Went Red: The Leonard P. Zakim Bridge, Prudential Center and State House among others are lit up in red Local Celebrity Involvement: Local influentials are part of the movement including sports figures and political figures,, local news anchors and print reporters Local Press Coverage: Annual 12 pg advertorials featuring the campaign appears in The Boston Globe Garnered media partnership with local ABC affiliate
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  Select Results 57:Percent of women who identify heart disease as #1 killer, up from 8% in 2003 700,000: Women who have taken the Go Red Heart CheckUp to date 96: Percent of women took action to improve their health after completing CheckUp $100 million: Amount raised for the cause 500,000: Individuals enrolled in Go Red For Women 5 billion: Impressions generated 3.2 billion: Visits to the Go Red For Women Web site 12,700: Companies that participated in National Wear Red Day last year 200: Go Red luncheons held across the country in 2007 26: Countries that adopted Go Red via World Heart Federation
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  Individual Perspective
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  Philanthropreneurs Philanthropreneurs apply innovativethinking and for-profit mechanisms to achieve philanthropic aims with sustainable solutions. “We need to be open to bigger, bolder reform because the hard truth is Philanthropy 1.0 hasn’t worked well enough.” — Stephen M. Case, co-founder of America Online “It’s not a donation….it’s an investment. He’s probably going to make more off that investment than he has in everything else.” — Ted Turner on Richard Branson’s $3B to develop greener fuels “An entrepreneur is someone who gets things done. A social entrepreneur changes the performance capacity of society.” — Peter Drucker Google.org Omidyar Network
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  Hispanamerica Hispanics are traditionallygenerous, but have tended to practice informal philanthropy, giving to friends, relatives or religious organizations. Only 46% of Hispanics donate to a nonprofit group, compared with 80% of non-Hispanics On average, Hispanics give 3.9% of their annual household income, on par with non- Hispanic whites and double that of Asians “Latinos say that they are not asked…people make the assumption that we can’t give.” – Teresa Alvarado, executive director, Hispanic Foundation of Silicon Valley Nuestro Futuro California Latino Hispanics 5-a-Day Campaign in Philanthropy
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  Pop Culture Philanthropy Peoplewill look for more innovative, entertaining ways to do good. Americans want to lighten up and show that it’s okay for philanthropy to be easy and fun. “[Young people] want to get involved with the more regular mainstream charities but by doing something outside of the mainstream...” — Michael Nilsen, Association of Fundraising Professionals Rise of “slacktivists:” people who practice philanthropy with minimal physical action – often from the comfort of their computer chairs Off the Mat, Amnesty International: SMASHED: Into the World March Against Society for Mature Adults Domestic Violence Seeking to Help Entertain and Donate
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  Think Global, GiveGlobal Real-time images of disease, war, and poverty abroad, combined with online giving, an increase in international aid organizations, and celebrity involvement will continue to inspire Americans to give globally. Mega celebrities like Bono, Oprah, and Angelina Jolie highlight global issues Of the $15B increase in total giving in 2005, approximately half was donated to provide relief to disasters in Asia, Pakistan, and the Gulf Coast “2005 was a watershed year for U.S. philanthropy, with the private sector giving $566M in aid for tsunami relief and more than $100M to assist victims of Pakistan's earthquake. The outpouring of private aid is another sign that we recognize how interconnected the world has become.” – Stephen Jordan, VP, U.S. Chamber of Commerce Tsunami Citigroup Angelina Jolie Bono Relief Banks in Action and the UN Poverty and AIDS
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  There’s No PlaceLike Home Despite an increase in global giving, the majority of U.S. giving will remain domestic, driven by Americans’ propensity to help in their communities. Schools, hospitals, and religious organizations will continue to be major beneficiaries. 81% of consumers say seeing the impact of their giving in their own community is very or somewhat important to them PRWeek’s list of companies most admired by consumers for charitable works show Wal-Mart and Target in the top three, both companies best known for local giving The Jimmy Fund New York Target Take Restoration Project Charge of Education
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  Seeing Red On thewhole, southern western states will continue to be more charitable than other portions of the country. This tendency largely stems from the presence of more conservation and more faith-based populations. 24 out of the 25 states where people give an above average percent of their income were red states in the last presidential election On average, conservatives give 30% more than liberals, despite earning slightly less Religious people give four times more than non-religious people Faith-based vehicles are the fastest-growing source of charitable funds; $100B/year Religious organizations received $93.2B in 2005, more than any other charitable cause Red State Giving Faith-based Giving
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  Giving While Living Individualswill increasingly give while they can control the use of their funds, rather than allotting funds in their wills By 2017, Boomers are expected to give more than $1.7 trillion to charity as they inherit the wealth amassed by their parents Donor-advised funds and socially responsible investing have grown in popularity Even individuals of modest means are creating their own foundations: the number of U.S. foundations has nearly tripled since 1982 “There is a backlash against being targeted as a potential major donor…people now want to be proactive rather than reactive donors.” – Peter Karoff, Founder, The Philanthropy Initiative Donor Advised Boomer-driven McCarthy Funds Giving Family Foundation
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  Volunteerism Young andOld Every generation will become more involved in philanthropy through volunteering. Children are getting involved in volunteering at a younger age. Millennials are looking for opportunities to directly tackle the world’s problems. Older generations will begin “encore careers” in philanthropic endeavors. From 2002 to 2005, volunteerism increased 28% among people ages 55-64, 16% among people ages 65 and over; and 14% among young people ages 16-24 83% of Boomers express a desire to continue working into their later years 81% of Millennials have volunteered in some way (either weekly, monthly, etc.) 94.3% of volunteer households contribute to charity, give 109% more Voluntourism Alex’s Lemonade Stand Experience Corps
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  On Demand The worldhas gotten faster and donors now expect to be able to learn about charitable organizations and make on-the-spot donations at any time of day. Nonprofits will need to meet consumers where they are, 24-7. 11% of individuals have contributed to charities online and 65% of donors say online materials influenced their decision to give to a particular charity In 2004, U.S. households gave more than $3B online – a 60% increase from 2003 To raise $1, it costs $.07 via online methods, compared to $.63 via telemarketing, $1.25 for a new donor via direct mail and $.25 from an existing donor via direct mail Search Engine Online UNICEF: Philanthropy Auctions E-Commerce
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  Collective Individual The powerof the sum of many small donations to make big societal changes will continue to be realized as donors demand to see the impact of each dollar. Modest donors, aided by the Internet, will go to and develop new intermediaries to allow them to be as strategic and effective as a large organization. “The ability to aggregate individual donations in new ways – using electronic platforms and professional guidance...may turn out to be one of the greatest breakthroughs of our time.”– Katherine Fulton and Andrew Blow, Global Business Network and Monitor “As the long tail of philanthropy (micro) gains visibility, change will reverberate through nonprofits and foundations just as MP3 recordings and Internet distribution redefined the music business.” – Lucy Bernholz, “The Long Tail of Philanthropy” World Vision Product RED San Francisco Gift Catalog Impact Calculator Giving Circle
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  Cause Connections Donors willcontinue to connect to nonprofits through the causes that are personally important to them, their family, and their friends. 75% of donors say having a personal relationship with a cause or charity is very or somewhat likely to influence their decision to support a cause 78% of donors say they are very or somewhat likely to support a cause or charity if someone they trust is involved with it Team Hoyt and Girl Scouts: Influencing Donors Easter Seals Cookie Sales Family 77% Friends 64% Charities 63% Churches 60% Co-Workers 40% Companies 30% Celebrities 15%
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  Thank you! Kristian Darigan Vice President, Cause Branding Cone [email protected] Check out my blog at: www.doyoustandforsomething.com