Connecting the Unconnected: Cause-Related Marketing What does it mean for your customers & your business? November 21, 2006
Today s Goals & Agenda Goal: Give you concrete ways in which your company & its customers can benefit from cause-related marketing Agenda: Defining Cause-Related Marketing Examples & Rationale Getting You Involved
Drake & Company
Making Dreams Fly for Fraternity and Foundation
Based on a Case Study Consumer Marketing Promoting use of Real Christmas Trees Results after two years: stopped downward trend increased overall purchases 40%! Program Components Traditional marketing Viral Marketing Special events / contests Cause marketing
50 BEFORE & AFTER 40 30 20 32.0 million 27.8 million 22.1 million 23.4 million 27.1 million 32.9 million 10 0 2000 2001 2002 2003 2004 2005 Source: Harris Interactive 2006
Promotion & Cause Marketing created sales opportunities and motivated consumers to act
Cause-Related Marketing What? The public association of a for-profit company with a nonprofit organization, intended to promote the company's product or service and to raise money for the nonprofit. [The Foundation Center]
Cause-Related Marketing What? It is NOT corporate-sponsored programming. Corporate sponsorship: company trying to reach your members Message: buy from me because we support your industry. Cause-marketing: company trying to reach your members customers Message: together we can do something good for society
Cause-Related Marketing Examples: American Express: Statue of Liberty
Cause-Related Marketing Examples: American Express: Statue of Liberty FedEx: Trees for Troops
Cause-Related Marketing Examples: American Express: Statue of Liberty FedEx: Trees for Troops Target and Local Schools
Cause-Related Marketing Examples: American Express: Statue of Liberty FedEx: Trees for Troops Target and Local Schools Wood Stove Change Out
Cause-Related Marketing Examples: American Express: Statue of Liberty FedEx: Trees for Troops Target and Local Schools Wood Stove Change Out AZ Katrina Relief Work Trip
Cause-Related Marketing Examples: American Express: Statue of Liberty FedEx: Trees for Troops Target and Local Schools Wood Stove Change Out AZ Katrina Relief Work Trip Komen Race for the Cure As a result of sales of the collector s cookbook, Meredith has donated $400,000+
Cause-Related Marketing Why? People support companies that support causes 8 of 10 consumers prefer to do business with companies and organizations that support causes up 21% from 1997 to 2004. -- Cone Corporate Citizenship Study Three our of four consumers want companies to do more to tell them about causes they are supporting. Generation Y (those 13 to 29) even more so: 1/2 would switch brands, 2/3 would switch retailers for one with good cause if price and quality are equal
Cause-Related Marketing How? Find a cause your members can support Get corporate partner for funding Engage the media Generate publicity and attention Donate funds / volunteers to a worthy cause
Cause-Related Marketing Involves connecting the unconnected Motivate your members / employees / shareholders Locate a corporate sponsor Support a worthy cause
Cause-Related Marketing FedEx: Delivery & logistics Building reputation for community involvement Christmas Trees: 32.8 million households Kids in the home Memories/experience U.S. Military Families: A need: separated from families at holidays A cause: delivering memories
Putting it all Together: Trees for Troops
Oct 25 FedEx approves Trees for Troops Nov 16 Ohio s Trees loaded for troops in war zones Nov 28 Trees delivered to Ft. Lewis Dec 9 Last trees to Ft. Benning Start to finish: 45 days!
Trees for Troops: By the Numbers 3 routes 5 bases + overseas 17 states 290 donors 4,300 trees 4,600 miles
Trees for Troops: Reach & Impact 14.7 MILLION households said they saw, read or heard about Trees for Troops 3.7 MILLION households said T4T influenced their decision to purchase a Real Tree in 2005 FedEx analysis shows media covering Trees for Troops had audiences totaling 18.3 million Source: Harris Interactive 2006
Trees for Troops 4,000+ Memories
Trees for Troops: The 2006 Campaign
2006 Trees for Troops 11,000+ trees from 49 sites in 27 states 23 military bases in 11 states PLUS units in Afghanistan, Iraq, Middle East PLUS sailors in the 5 th Fleet stationed in Egypt, Horn of Africa, United Arab Emirates, Qatar, Iraq, Afghanistan, Southwest Asia and the desert
2006 Trees for Troops In just two weeks Media coverage in 34 states CNN, USA Today, Fox News Chanel taping tonight Emails from all over the world
Does It Work? Campbell pink-ribbon cans for Kroger s Breast Cancer Awareness month 7 million cans consumed DOUBLED what Campbell normally sells in October In 2005. Every donated tree influenced 860 tree purchases