You can read my latest post at Causeshift. Thanks to Brian Reich and Scott Henderson for inviting me to join the conversation!
Category Archives: Causerants
Can Companies Use Cause-Related Marketing to Help Haiti?
I think they can, but it needs to be done appropriately and with sensitivity.
As we learned in my post What is Cause Marketing? cause marketing isn’t philanthropy first, it’s marketing. And the situation in Haiti requires philanthropy first. And any company that tries to swap that with marketing will be duly punished by consumers.
But just because the recipe calls for a pound of philanthropy doesn’t mean there isn’t room for a teaspoon of cause-related marketing.
Here’s how it can be added to the mix without ruining the batter.
A lot of companies have already struck the right chord with philanthropy by donating millions to the Haiti earthquake victims. Let’s use Startbucks as the example, which has donated $1M to the American Red Cross.
Additionally, some companies, like Starbucks, have carved out areas within their stores where customers can make donations to Haiti.
But how could these companies add cause marketing?
Again, as you know from my earlier post, I view cause marketing in three tactical ways: point-of-sale, percentage-of-sale, licensing.
For Haiti, I think point-of-sale might be perceived as too aggressive and opportunistic. Conversely, licensing is a tactic that couldn’t be rolled out fast enough to meet the urgent needs of the victims.
Neither will work to help Haiti or the favorability of the company that executes the program.
However, I think percentage-of-sale could work. The Starbucks/Product RED partnership is a model. During the month of December, Starbucks donated five cents for every coffee sold to fight AIDS in Africa. The same could be done for Haiti at Starbucks and at other retailers.
But here’s what every consumer would need to know. Regardless of whether you buy the product or not, the company would donate X dollars, a generous minimum donation, to Haiti. A donation that could go up significantly with the small purchasing choices customers make every day.
I like this option because it’s built off of two solid layers of philanthropy, and a good portion of the percentage-of-sale donation comes from the company, not from the consumer’s purchase. Nevertheless, the program gives the consumer a chance to literally register their support for Haiti and to note the company’s efforts.
I read this post to my wife and she said my idea still sounds like a marketing ploy. Maybe cause marketing has no place in helping Haiti.
What do you think?
Sick of Pink Complainers
Sent to the Boston Globe this morning.
Dear Editors,
The Sick of Pink article in yesterday’s Globe Magazine was unfair to socially responsible companies in general and to New Balance, an outstanding corporate citizen, in particular.
The whole story reminded me of another. A winemaker who despite having some of the best casks of wine in his town would nonetheless sample each one until he found a poor vintage for himself. A friend of the winemaker once asked a servant what his master was doing. ”Looking for bad when he is surrounded by good.”
That’s exactly what critics of New Balance are doing. They’ve bypassed all the good things New Balance has done (the good work of its foundation, the millions of dollars New Balance has raised for Komen’s, the invaluable awareness they’ve brought to breast cancer, etc.) and chosen instead to focus on the thing that didn’t quite taste right.
A couple things to remember.
New Balance is a big company and sells a lot of sneakers. While I’m sure the Lace Up For the Cure line is a winner for both New Balance and Komen, overall it’s just one small piece of the sneaker company’s success. In short, you can be sure the Lace Up line has been a better performer for Komen than it has been for New Balance.
Another thing to consider is that most people who buy “pink” products aren’t just buying them for the ribbon. Besides the die-hard supporter, who would really spends a $100 on a pair of shoes just because it has a pink ribbon on it? Let’s not go overboard. The cause connection is just one factor in the consumer’s buying decision, especially if we agree with the writer that we are awash in “pink” products to choose from.
Consumers buy New Balance shoes because they are well made, have an excellent reputation, are made for performance and comfort, and, if they buy them locally, perhaps because they are produced by a Boston-based company. The fact that they support Komen is another great reason to buy them. But it’s one reason, not the only reason. And I believe Komen gets their fair share of the sneaker price, plus a generous donation from New Balance. How much more should New Balance, or any company, be expected to give?
Companies should obey the law and register with the Attorney General’s office. They should also be clear on how much a nonprofit will receive from a cause-related marketing program. But good companies like New Balance that do good deeds for the right reasons shouldn’t be second-guessed and chided for what they DON’T do, or be held to unreasonable standards.
The risk is that very soon we’ll all be complaining that companies like New Balance don’t do anything at all.
Joe Waters
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Joe Waters is Director, Cause Marketing for a Boston hospital.
The views expressed at Selfish Giving are his alone, and are definitely too witty, insightful and fascinating to be anyone else's. View My Bio or Email Me.
