Cause Marketing:Case Study

Steve Drake, Drake & CompanyVince Powers, Devine & Powers

Today’s Agenda

• Introductions – Steve & Vince• Defining Cause-related Marketing• Examples • Case Studies • Brainstorming & Feedback

Definitions

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 or society in general Message: together we can do something good “for society”

Cause Marketing

Connecting the Unconnected:• A corporation and a non-profit joining to support a

common cause

It is NOT corporate sponsorship … much bigger than that

Cause Marketing: How Big?

1990 = $120 million2007 = $1.44 Billion!

Why?

It works!

Source: IEG Sponsorship Report

Impact of Cause Marketing

• Likelihood to switch brands = 87%• Proud of my company’s values = 87%• Purchased a product = 36%• Told a friend or family member = 30%

Source: Cone Inc.

Cause Marketing

Cause Marketing

To get you thinking of the possibilities, here are some award-winning examples …

Example 1

Example 2

Example 3

Example 4

Example 5Life in art:

Capturing yours & saving another

Wedding Photography: 1-time, expensive ($5,000+) purchase

Donates portion of wedding fees to purchase one water filter in name of the couple

Davis Photography & Thirst Relief International

Connecting with Companies

1. Think as they do2. Cause is another form of marketing3. Need to match their company needs, customer

profiles and marketing goals

Here’s one example: The KitchenAid brand from Whirlpool.

Rigorous Market Evaluation

The Cause to Support

Products Support Cause

Results - KitchenAid

• Donations of $1 million + (double the prior year)• Home Dinner Party Kit requests up 191%• Publicity reached more than 82 million • Increased KitchenAid brand loyalty • Increased sales of KitchenAid “pink products”

McDonald’s andRonald McDonald House

CASE STUDY:

• Ray Kroc founded McDonald’s in 1955

• “We have an obligation to give back to the community that gives so much to us.”

• His philosophy was passed down through the years to franchise owners

Background

Philadelphia 1974

• Philadelphia Eagles’ player Fred Hill had a daughter who was being treated for Leukemia

• Eagles’ owner Leonard Tose recognized the need for families to have somewhere comfortable to stay

• The idea of a “home-away-from-home” was born

• Jim Murray, GM of the Eagles, approached McDonald’s local franchise owners

• McDonald’s reply – developed Shamrock Shake promotion where a quarter from every shake was donated but we want to call the home “Ronald McDonald House”

Eagles and McDonald’s

• More than 245 Ronald McDonald Houses in 26 countries

• More than 10 million families have stayed in a Ronald McDonald House

Today

Key Learnings• Make it personal – Tose saw a problem and simply

wanted to help; McDonald’s owner/operators saw an opportunity to give back in the community

• Make it relevant – kids and families

• Create partnerships – McDonald’s franchise owners, employees, customers, local hospitals

• Consider execution – followed Ray Kroc’s belief “give back in communities where you do business”

• Deposits in the Trust Bank – McDonald’s is constantly defending its reputation

Case Study

Case Study: Trees for Troops

Christmas Trees: 32.8 million households Kids in the homeMemories/experience

FedEx: Delivery & logistics Building reputation for community involvement

U.S. Military Families: A need: separated from families at holidays A cause: delivering memories

11,854 Real Christmas Trees

Delivered to 25 military locations in 17 countries

Banners and posters provided to all locations

Teddy bears and other gifts with the trees

Coordinated international media coverage

Trees for Troops 2006

A snapshot of media coverage

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

3.6 MILLION households said T4T “influenced” their decision to purchase a Real Tree in 2006

Trees for Troops: Reach & Impact

2006 Trees for Troops11,854 Family Memories

Key Learnings1) Make it Personal2) Make it Relevant3) Make it Transparent4) If you are the charity, own “the brand”

Example, it is the Trees for Troops program NOT the FedEx Trees for Troops program

Be clear on this (upfront) with corporate partners

5) Create Partnerships6) Seek other Non-Competing partners7) Continuously refresh and update7.5) Share the Passion