Moving From Win-Win to Win-Win-Win

with Cause Marketing

Steve DrakePresident, Drake & CompanyApril 17, 2009

© 2009 Drake & Company

Today’s Goals

1) Demonstrate how cause marketing can achieve your overall marketing objectives.

2) Share cause marketing basics & practices3) Use examples & a case study to increase

understanding

While growing rapidly in most sectors, “ag sector” shows limited use of cause marketing.

As the “causeaholic,” my goal is to change that!

What?Basics

CauseNon-Profit

Corporate

Partners

AssociationPartner

A for profit and a not-for-profit combining efforts for purpose, passion and profit.

$

Examples

Loads of Hope

New Orleans, San Diego, Galveston, Waterloo: 30,000 loads to date

Examples

Sam’s, Aquafina & KABExamples

37 Million bottles; $300,000; 100,000 fleece jackets!

Bread Art Project

Digital campaign

Examples

Milling &Baking Industry

Donated $50,000 to Feeding America + $1 per submission up to $50,000

Target & St. JudeExamples

200,000 purchased; $300,000 to St. Jude

Colgate & RIFExamples

$800,000 + 58,000 books since 2004

Be a

Program:$5 donation to USO

operationPer FMC booth visitor

Examples

1,477 participants; $7,385; 296 USO care packages

National Geographic Kids – Cotton Inc

Examples

Guinness record by turning old jeans into home insulation

Basics

Why?

85% of Americans more positive

Basics

79% would likely switch brands79% want to work for a company that cares

Increased Sales, Profits & Funding:

Source: 2008 Cone/Duke University Behavioral Cause Study

Basics Why?

Trying to reach Generation Y?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Switch Brands Have Purchased Expect Donation

Overall Gen Y

Source: 2008 Cone/Duke University Behavioral Cause Study

BenefitsBasics

Create awareness to advance your strategyIncrease customer loyalty and salesEngage employees and stakeholders

For Companies:

Why?

Create awareness to advance your mission

Generate funding for your organization and/or cause

Create local advocates, engage members and donors

Basics

For Associations & Non-Profits:

Why?

Top “issues” for causes: educationeconomic development health & disease access to clean water

Basics

Finding Partners?Basics

“Frame” your search: “Size” “Geographic scope” “Product” or “Service”

“Philosophy”

Look for non-profits with a parallel cause

Look for charity / non-profit with a mission for which your customers would have a passion

How – Cause Types

What “tools” can be used to implement the cause?

Basics

Social / Public Service marketing

Purchase Plus

Product sales

Product licensing

Promotional campaign

Co-branded program

Co-branded events (runs, rides, auctions, golf, etc.)

Measurement & Metrics

Use same measurement tools as other marketing:

Media impressions Customer Loyalty Index Sales Numbers engaged in programs Dollars generated

Basics

Measurement & Evaluation

Basics

Practice

Case Study

The ChallengePractice

Trees to troops

Who?

Cause: Military families

Practice

Coordination & Fund-raising4,000 – 6,000 trees from

consumers & retailers

The Program

10,000 - 12,000 treesLocal media

FedEx:59,000+ miles+ 10,000 air miles+ volunteers

53 bases17,000 families

Practice

Power of Cause Marketing

http://www.msnbc.msn.com/id/3032619/#2821063

23.4 MILLION households said they saw, read or heard about Trees for Troops

Reach & ImpactPractice

2008 Trees for Troops

3.4 MILLION households said T4T “influenced” their decision to purchase a Real Tree in 2008

During the past holiday season, did you read, see, or hear anything about the Trees for Troops program though which Christmas trees were being donated to troops and their families and being delivered to military bases by FedEx?

14.7 13.7 14.2

23.3

0

5

10

15

20

25

2005 2006 2007 2008

Million Households

Households that Recalled Seeing, Hearing or Reading about Trees for

Troops

Practice Reach & Impact

50,554 military families received farm-grown Christmas trees

Practice

53 military locations17 countriesinternational media coverage

Summary

Evaluating (CSF perspective)

Delivered fresh, farm-grown trees to 50,554 families Generate $1 million (cash & in-kind) per year Create millions of media impressions Reached 23 million U.S. households Engaged 71% of organization’s members Earned three national awards Cost: 1,200 - 1,400 staff hours and $10,000± expenses

Practice

What other program could generate this much local and national (positive) media

coverage?

Key Learnings

1) Make it personal

Practice

2) Make it relevant3) Make it transparent4) If you are the charity, own “the brand”

5) Create partnerships / alliances

6) Seek other non-competing partners

7) Continuously refresh and update

8) Share the passion

12 Steps to Cause Marketing

1) Select cause Harmony (with mission) is key

2) Make it personal For donors, members,

employees

3) Decide on partner(s) Big or small pond?

4) Understand each other You own your brand

5) Disclose special arrangements Transparency Who is doing the PR?

6) Determine which form See list of types of cause

programs

7) Develop PR support plan Get recognized for doing good

8) Establish metrics Measure your marketing

9) Refresh & update Continuous improvement

10) Be flexible Change on fly if needed

11) Review & evaluate Set a date on when you will

review and renew

12) Take time to celebrate Build celebration into your

campaign Include volunteers, partners,

staff, etc.

Basics

Resources: 12 Steps to Successful Cause Marketing

http://blog.drakeco.com/2008_06_01_archive.html

Cone-Duke Research http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20081001005317&newsLang=en

2008 Cause Study, PR Week http://barkleyus.com/articles/show/43-pr_week_cause_survey_2008#

Highlights & case studies http://www.causeaholic.com

Contact Information:

Steve DrakePresident, Drake & CompanyPhone: 636-449-5050 E-mail: drake@drakeco.comTwitter: http://twitter.com/causeaholicWebsite: www.drakeco.com Blog: http://www.causeaholic.com