Encashing through a cause

Cause marketing is a symbiotic commercial activity undertaken by organizations for mutual benefit. Gas Apparel, TATA Tea and ITC among others have recognized the potential use of this marketing technique. It has been demonstrated in the short-term when Epson donated a certain sum to CRY for every dot matrix printer sold during the month of August 2004 alone. On the other hand, in the long-term tie ups need not be necessarily permanent. For example, ITC markets the SOS Children's Villages of India range of greeting cards.

The procedure

Cause marketing takes place when a business organization ties up with a non-profit organisation to give support to a special cause. For example, Green Peace has undertaken a social measure campaign like, “Ban the Bulb”, to promote CFL bulbs to save the planet earth. This provides for the business brand to use their name and logo on the product. In a cause marketing campaign, a business organisation’s objective should match with the cause or support they espouse. The target group of customers and the social cause should be chosen with great care. Often done through the corporate communications department, in cause marketing the usage of logos, brand name, and other sub category should be very clear for both the brand and for the non-profit organization as well.

A Cause marketing campaign can be a short term tie up with a non-profit organisation and a long term tie up also. But for a long lasting impression, a long term or ongoing tie up is preferable for a retailer. The concept that development activities or social cause can be blended with making profits or to increase sales is a paradigm shift concept. To support a social cause and to show the support in public gives great advantage to that brand associated with the cause. It gives an identifiable personality to the brand, also connects to the supplier, employee, investors with a short span of time. It demonstrates what the brand stands for. Cause marketing activities started with the local shops and restaurants keeping small box or donation box besides the cash counter. The history of Cause Marketing dates back to 1983, when American Express coined the term “Cause Marketing.

CASE STUDIES

American Express: In 1983, American Express launched a three-month marketing program around the Statue of Liberty Restoration Project. The objective was to increase card use and new card applications and at the same time raise money, awareness and support for the nonprofit Restoration Fund. American Express donated one cent for every card transaction and one dollar for every new card application. In just three months, the Restoration Fund raised over $1.7 million. American Express Card usage rose 27 per cent and new card applications rose by 45 per cent compared to the previous year.

ITC--Aashirvad-Boond Se Sagar: ITC launched a nationwide campaign for water conservation, entitled ‘Aashirvad - Boond Se Sagar’, this initiative has over the years put into place 31,000 acres of life saving irrigation system benefiting over 40,000 people. Consumers who buy Aashirvad products (atta, spices and salt) were made aware that from its sale, a worthy contribution was being made to the water conservation efforts of the nation.

Types of cause marketing

Cause marketing can take on many forms, including, product, service, or transaction specific, promotion of a common message, product licensing, endorsements, and certifications, local partnerships, and employee service programs.

The 2 Bs: Budget & Benefits

Generally, the budget of the cause marketing campaign depends on the type of business one is into and the type of cause one has chosen. But as informed by Mr. Rajesh Rawtani, CEO, Zedds Footwear, the budget can start from Rs 2 lakh to Rs 8 lakh for a cause marketing campaign.

Whenever a brand gets associated with any social cause or charity, the target group of customers prefers to buy those products more. They feel by purchasing these products they are also contributing to that good cause. The possible benefits of cause marketing for retail brands are: positive public relations; boost to the company's public image and helps distinguish it from the competition; improved customer relations; heighten customer loyalty; respected and accepted business practice; marketing opportunities and directly enhance sponsor sales and brand.

Challenges

When undertaking any cause marketing campaign, be aware of certain things. As it is found that too many charities pursuing high profile deals can result in "cause clutter." Your TG may grow tired of the constant appeals to buy things to support good causes. Also, it happens with brands where the associated brand by investing its brand name, time and money, were not able to reach to the target group of audience. Mr. VL Rajesh, Head-Marketing, ITC-Food Division, shares, “The brand should not get confused with the objective of any marketing campaign, say if you are going to launch any product, first of all, you will have to decide what is your objective. When any one going to launch any cause marketing campaign it should define first whether it is going to launch this campaign to suffice its economic benefits or want to build a social responsible brand altogether. In our case we decide on three bottom lines that are economic bottom lines, environment bottom lines and corporate bottom lines. Our campaign was to satisfy the environment bottom lines of the society”.   So lend a helping hand, and reach out to society and profits.