cause related marketing: doing good sells and creates

© 2006 GoodBrand&Co

Cause Related Marketing: Doing Good Sells and Creates Brand Value

The GoodBrand 2006 survey on CRM in Germany

Christian Conrad

© 2006 GoodBrand&Co2

What we are about

The Good Brand – only a myth?

Social Branding and Corporate Communications

Social Issues matter to German consumers

Cause Related Marketing in Germany: the consumer view

Some learnings


What we are about




Some learnings


The determinants of brand preference are changing

Reliable

Trustworthy

Distinctive

Authentic

Original

Charming

The same

Down to earth

Cares about customers

Socially responsible

Friendly

Social

Innovative

Best brand

Straightforward

Worth more

High quality

Up to date

Good value

Declining Growing

Drivers of Relevance: Changes 2002 - 2005 UK (Young & Rubicam BrandAsset Valuator Survey)


Both awareness and demand are growing

Consumers are increasingly making active choices in order to identify their social principles and to exercise their ‘personal social responsibility’


Social Factors have a significant impact on brands and brand value

7 Factors comprise Social Equity

0.63 0.78 0.89 0.77

RELE

VANC

EPe

rson

al ap

prop

riate

ness

BRAND EQUITY

DIFF

EREN

TIAT

ION

Uniq

uene

ss co

mpa

red

to co

mpe

titor

s

ESTE

EMPe

rcep

tion

of q

ualit

y and

pop

ular

ity

KNOW

LEDG

EAw

aren

ess l

evels

of b

rand


What we are about




Some learnings


What we did

o 160 telephone interviews with heads of households across Germany (Bremen/Hamburg/Leipzig/ Munich) in August 2006

o Spoke with them extensively (15-30 mins)

o Questionnaire containing closed-ended and open-ended questions

o Part I : general attitudes to social and environmental issues in the contextof consumption

o Part II: assessment of specific Cause Related Marketing Programmes in the German market


Social Engagement of Business meets general approval

I like it that companies actively engage in social issues

0,6%

3,2%

12,7%

31,6%

51,9%

1

Top 2 Box: 83,5%

Fully agree

Agree

Don´t mind

Disagree

Strongly disagree


How products are made matters to the majority of consumers

I am interested to know under which social and environmental conditions the products that I purchase are manufactured

4,4%

11,4%

31,6%

39,9%

12,7%

1

Fully agree

Agree

Don´t mind

Disagree

Strongly disagree

Top 2 Box: 52,6%


Negative news have a clearly negative impact on purchase behaviour

Negative headlines, e.g. bad working conditions, influence my purchase behaviour

5,1%

17,1%

24,7%

34,8%

18,4%

1

Top 2 Box: 53,2%

Fully agree

Agree

Don´t mind

Disagree

Stronglydisagree

Top 2 Box53,2%

Negative Headlines, e.g. environmental damage caused by companies have an impact on my purchase decision

4,4%

17,1%

25,3%

32,9%

20,3%

1

Fully agree

Agree

Don´t mind

Disagree

Stronglydisagree


Being a “Good employer” building block for a good reputation

I value companies that are committed to improved working conditions

1,9%

4,4%

25,9%

33,5%

34,2%

1

Top 2 Box: 67,7%

Fully agree

Agree

Don´t mind

Disagree

Strongly disagree


Environmental commitment is well appreciated

I value companies that are commited to reducing or avoiding environmental impact

2,5%

6,3%

25,9%

31,0%

34,2%

1

Top 2 Box: 65,2%

Fully agree

Agree

Don´t mind

Disagree

Strongly disagree


Clear consumer preference for companies/brands that are committed to a pro-social and pro-environmental stance

If I have the choice I prefer to purchase products from companies that are committed to solving social and environmental issues

1,3%

15,2%

46,2%

25,3%

12,0%

1

Top 2 Box: 37,3%

Fully agree

Agree

Don´t mind

Disagree

Strongly disagree


To link product purchase with a good cause can create competitive advantage

I like to contribute to a good cause when purchasing a product

0,0%

5,0%

23,1%

50,0%

21,9%

1

Top 2 Box: 71,9%

Fully agree

Agree

Don´t mind

Disagree

Strongly disagree


What we are about




Some learnings


Volvic „1 Liter for 10 Liter“ 2005 and 2006 Blend-a-med „Each tube helps“ 2005 and 2006

Krombacher „Rainforest Project“ 2002/2003/2004 and „Donation Push“ 2006

Charmin „InoculationProgramme“ 2005


Bitburger „Football Pitches for Germany“ 2005 / 2006

Rittersport Quadrago „1 Chocolate Bar – 1 hour of school“

2005

LIDL „FairGlobe“ fair trade range 2006 Whiskas/Pedigree „World Animal Day“ 2004

Kellogg´s „Education forchildren in need“ 2003/ 2004


I now mention a few companies or brands, that link the sale of their products with a good cause. Please tell me whether you know of the programme.

7,5%

16,3%

16,9%

19,4%

21,9%

29,4%

34,4%

50,0%

61,3%

1

VOLVIC (1L for 10L)

KROMBACHER (Rainforest Project)

RITTER SPORT (1 choc. Bar = 1 hour of school)

BLEND A MED (Each tube helps)

CHARMIN (Inoculation programme)

BITBURGER (Football pitches for Germany)

LIDL (FairGlobe fair trade range)

KELLOGG´S (Education for children in need)

WHISKAS (World Animal Day)

The Cause Related Marketing wave has “hit” the consumer


High Level of overall acceptance of CRM Programmes

I like the programme because the purchase supports a good cause.

80,6%

81,5%

88,6%

88,9%

91,4%

92,0%

92,1%

100,0%

1

VOLVIC (1L for 10L)

KROMBACHER (Rainforest project)

RITTER SPORT (1 choc. Bar – 1 hour of school)

BLEND A MED (Every Tube helps)





Top 2 Box, n=160Top 2 Box, n=160


Significant differences in brand fit

I Like the programme because it fits the brand / the company

14,5%

24,4%

40,0%

63,0%

70,5%

72,2%

76,9%

94,7%

1

VOLVIC (1L for 10L)


RITTER SPORT (1 choc bar – 1 hour of school)

BLEND A MED (Every tube helps)







Good CRM programmes drive emotional proximity

This programme has made the brand more likeable to me

29,6%

32,3%

38,9%

42,2%

53,9%

56,0%

59,1%

80,8%

1VOLVIC (1L for 10L)


RITTER SPORT (1 cho. Bar – 1 hour of school)





KELLOGG´S (Education for children in need



…. and sales

I would now rather purchase this brand than another, similar product

2,2%

8,3%

9,7%

15,4%

15,9%

16,0%

18,4%

18,5%

1

VOLVIC (1L for 10L)


RITTER SPORT (1 choc. Bar – 1 hour of school)




LIDL (FiarGlobe fair trade range)

KELLOGG´S (Eduction for children in need)



Likes and dislikes analysis reveals high level of sceptisism

Dislikes

Donation too lowLack of credibilityCompany interest dominatesOther dislikes

36,3%

31,5%

19,2%

12,7%

Overall: 67,3% Likes vs. 32,7% Dislikes


“1l für 10l” Programm von Volvic

IM MARKET 2005 and 2006

COMPANY Danone WatersDeutschland

CATEGORY Still Waters

PRODUCT/BRAND Volvic naturelle

NGO-PARTNER UNICEF

TESTIMONIAL Markus Lanz (TV-presenter)

DESCRIPTION

WIth the purchase of each bottle Volvic naturelle the consumer supports the building of wells in Ethiopia. Four out of five people in Ethiopia don´t have sufficient access to clean drinking water. Many of the existing water holes areseverely polluted and infested with parasites, leading to illnesses among the population.

With every litre of Volvic naturelle purchased Volvic supports UNICEF to provide 10 litres of clearn drinking water in Ethiopia.

RESULTS SO FAR

With the 2005 programme (July – September) Volvic was able to support UNICEF to build 42 new wells, equalling1,54 Mill clean drinking water. With this water more than 21.000 people can be supplied with clean drinking waterfor at least 10 years.

Link

www.volvic-fuer-unicef.de


Volvic – a best in class case

Overview Closed-ended questions Volvic

60,5%

18,4%

28,9%

53,9%

92,1%

13,8%

61,3%

94,7%

Impact of NGO partnership on credibility

Impact on brand preference

Impact on brand trust

Impact on brand likeability/Emotional proximity

Brand Fit

Overall Acceptance

Unprompted Awareness

Prompted Awareness


Volvic – a best in class case

Likes/Dislikes - Volvic vs. all programmes

14,7%

6,4%

14,6%

10,3%

11,9%

10,8%

47,1%

4,9%

15,7%

5,9%

14,6%

36,4%

Company interest dominates

Donation too low

Lack of credibility

Commitment

Mechanic

Social utility

Volvic All programmes

36,

11,

10,15

12

15

16

48

11

6

5

23 Dislikes 23,5%

79 Likes - 77,5%


What we are about




Some learnings


Key factors for CRM success

Commitment

Inetg

rity

Credibility

Rele

van

ce


Best practice

1. Supported cause needs to have high perceived social utility

2. Ensure good brand – cause fit => precondition for integrity

3. Ensure consistency of corporate and brand behaviour and communications-> integrity

4. Any social communication (brand or corporate) is built inside out


Identify

Ideate

Consult

Recommend

Fulfil

Assess

Use a thorough and rigorous process to ensure success


About the survey report

• The authoritative report on Social communications and Cause Related Marketing in Germany

• Contains background info and thorough analysis of all 9 surveyed CRM programmes

• Volvic case study

• 10 point plan for effective CRM

• Full report will be available from early November on www.good-brand.de as PDF or printed

http://www.good-brand.de/


For more info contact

GoodBrand&Co (Deutschland)Christian ConradKarl-Ferdinand-Braun Str. 228359 Bremen

E-mail: [email protected] +49 421 960 96-35

mailto:[email protected]


Creative corporate social strategy

A Young & Rubicam Brands affiliated company

cause related marketing: doing good sells and creates

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