Cause Marketing: Profit + Purchase = The New Normal

Moxie O CAUSE MARKETING PROFIT + PURPOSE = THE NEW NORMAL Cause marketing programs are modern business practices that offer opportunities for companies to do well financially by doing good in society. Raising awareness, money and consumer engagement for social or environmental issue has become the new normal for organizations and brands, which are incorporating cause marketing into their overall toolkits. However, with growing consumer acceptance, there are growing consumer expectations. GROWING CONSUMER ACCEPTANCE A GROWING BUSINESS Percentage of people OK for brands to make money as a result of social purpose $1.73 Billion spent on CORPORATE SPONSORSHIP 57% 68% 70% 76% OF CAUSES +3.1% FROM PRIOR YEAR 2008 2009 2010 2012 GROWING INFLUENCE ON PURCHASE 6 OUT OF 10 When QUALITY AND PRICE ARE EQUAL, the most important factor influencing brand choice is Purpose. WOULD BUYA BRAND IF IT SUPPORTED A CAUSE THEY CARE ABOUT 42% 43% 41% 53% 2008 2009 2010 2012 GROWING FREQUENCY OF PURCHASE CHANGING CONSUMER HABITS MONTHLY Purchases of cause supporting brands HAS GROWN. 56% WILL Travel An extra 1 to 10 minutes 47% 32% 71% WILL PAY $2.28 EXTRA For a $10-product BRAND PRAISE & WORD OF MOUTH GROWTH FROM 2008: 72% 71% 72% + 39% RECOMMEND RECOMMEND PROMOTE SWITCH + 34% PROMOTE a brand that supports a good cause over one that does not products or services if there is a good cause brands if a different brand of similar quality supports a good cause behind them + 9% SWITCH TOP CAUSAL BRANDS PURCHASED TOP DRIVERS FOR CAUSAL ACTION COMPANY OFFERS MATCHING FUNDS 70% 1. Yoplaif 3. Komen cure 2. CHOOSE THE CHARITY - IN-STORE 63% GENERAL MILLS 4. - ONLINE 58% P&G YOGURT 5. IN GENERAL BOX TOR (RED) 7. EDUCATION CAUSE-BRANDING TM ON PRODUCTS 54% 6. EMPLOYEE PROMOTION Kelloggis. Campbelli. 43% 8. & ADVOCACY 9. DAWN 10. A VON CASH REGISTER DONATION 36% TOP CAUSAL PURCHASERS MORE LIKELY TO PURCHASE IF COMMUNICATION MILLENNIALISM & GEN-X 86% COMMUNICATE RESULTS OR IMPACT TRANSPARENCY 82% DEMONSTRATE RESULTS OF Initiative MOMS WILL NOT PURCHASE IF NO 40% RESULTS ARE COMMUNICATED MARRIED SUSPECT THAT SOME COMPANIES ONLY GET INVOLVED FOR PROFIT EMPLOYED AT OR ABOVE ARE UNSURE IF THEIR MANAGEMENT LEVEL PURCHASES MADE ANY IMPACT CONSUMER CAUSAL PREFERENCE MILLENNIALS PREFER DIGITAL LEARNING ABOUT CAUSES 65% 55% 47% 24% OF WOMEN FIND DISEASE PREVENTION WEBSITES SOCIAL MEDIA ENEWS THE MOST COMPELLING PRINT AND IN-PERSON RANK LOWEST OF ALL TYPES OF CAUSES Causal Marketing Quick Tips DO GOOD, BE GOOD, BE OPEN: Good deeds are not enough. Shoppers expect greater corporate accountability and responsibility. IMPORTANCE OF BEING EARNEST: It's no longer enough to make vague promises and stick a feel-good label on a product. It must be authentic, long-term and participatory. Sources: "2012 Edelman good-purpose Study", Edelman http:/purpose.edelman.com/ "2011 Shopper Culture Reporf, The Integer Group and MARICE Research http://www.shoppercuture.comishopper_cuturethe-checkout.html The Second Annual Public Opinion Survey on Cause Marketing, Do Well Do Good Marketing Good': How Causes Can Convert Online Shoppers", eMarketer, Kristen Garcia, 2013.