Cause related marketing

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Ashish Pandey 3020070068

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Cause related marketing

A commercial activity by which businesses

and charities or good causes form a partnership with each other to market an image, product or service for mutual benefit.

In simple words marketing activities that

promote charities or other non-profit activities.

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Benefits
Increases visibility Improve image Motivates & retains Employees Enhances community acceptance Distinguishes your product or service Builds consumer trust Enhances 4/29/12

reputation

DIFFERENCES : CSR and CRM

encompasses what companies do with their partner with charitable organizations to

help non-profits better make them. profits & also how they achieve their goals.

ItCause-related philanthropy attached to a goes beyond marketing is and compliance

media campaign, with money generated for addresses how companies manage their the cause social, and sale of products. economic, through the environmental impacts, their relationships in all key spheres of influence

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American Express Company

During 1983, American Express Company

launched a cause related marketing program to restore the Statue of Liberty. for every card transaction and $1 for every new card issued during last quarter of 1983.

The company promised to contribute one cent

This resulted in a $1.7 million contribution by

American Express to the Statue of Liberty and 28% increase in use of credit cards along with massive media coverage and free publicity.

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Value of Cause Marketing

estimating spending in 1990.

The International Events Group (IEG) began IEG, established to make sponsorship the

fourth arm of marketing, alongside advertising, promotion, and public relations, provides services, research, and advocacy for the profession.
They estimate spending only on payments by

corporations to non-profit sponsors in unrestricted fees in exchange for a marketing affiliation or relationship. 4/29/12

In 1990 IEG estimated that $125 million was

being spent. In 1998, it had jumped 400% to $545 million, and by 2003 cause-marketing spending had almost doubled to $922 million.

This rapid growth continues, and in 2004

cause-marketing spending grew by 7.5% to just under $1 billion; by 2005 it rose to $1.08 billion, a 9% growth.

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HUl
The HUL announced a contribution of fifty

paisa to a diarrhea project on sale of each of its LIFEBUOY brand soap. It helped to improve market share for lifebuoy SOS childrens village, a social service organization working for educating every little heart by inserting coupons in its Brook bond Taj Mahal tea powder packs.

The HLL announced a Rs. 5/- contribution to

The customer has to tell the coupon number

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to the company through a toll free telephone

OBEROI Hotels
OBEROI Hotels had specially designed and

printed envelopes placed in all Oberoi properties where in the guest could contribute to CRY, a non government organization and collected more than Rs. 6.50 lakhs in 18 months.

CRY is a NGO whose role is that of an enabler

a catalyst between two groups of people development organization and individuals working at grass root level with marginalized 4/29/12

NOVARTIS INDIA LTD.

A pharmaceutical company in a cause related

marketing scheme donated 2% or value of sales of OVALTLINE PLUS towards CRYS (a NGOs) Gujarat rehabilitation operations.

Total amount raised was approximate Rs. 40,

000

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ITC
ITC launched a nationwide campaign for water

conservation. Dubbed Aashirvad - Boond Se Sagar, this initiative has over the years put into place 31,000 acres of life saving irrigation system benefiting over 40,000 people.

Consumers who buy Aashirvad products (atta,

spices and salt) were made aware that from its sale, a worthy contribution was being made to the water conservation efforts of the nation.

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Asian Heart Institute

During the Mumbai Marathon 2006, Asian

Heart Institute, associated itself as the Medical Partner to the event, and offered Free Tread Mill Tests for all participants confirmed in the Marathon at its centre in Bandra Mumbai.

Again, a true fit between the cause and the

service that the organization has on offer.

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Tata Salt
Tata Salt, the pioneers and undisputed leaders

in the packaged and iodized Salt Category, reiterated its commitment to the cause of educating underprivileged children and announced its Desh Ko Arpan Programme.

The Desh Ko Arpan Programme, Tata

Chemicals Limited Contributes 10 paise for every kilo of Tata Salt, sold during specific periods, to the education of underprivileged children.

Child Relief and You (CRY) has been chosen as 4/29/12

The money raised will support six child development initiatives across the country, namely:
Lok Shakti Vikas Sansthan, Rajasthan Jabala, Kolkata, West Bengal The Good Shepherd Society, Chennai, Tamil

Nadu

Gramya, Nalgonda, Andhra Pradesh The community Services Guild, Tamilnadu Rachana 4/29/12

Society for Social Reconstruction, Pune

Aravind Eye Care

Aravind treats 65% of its patients free of cost,

i.e., the poor and rural people who have neither money nor access for treatment.

Its services are par excellence and only 35%

of the patients are charged, i.e., those who are able to pay.
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P&G
When the Tsunami struck South East Asia and

Southern parts of India, P&G and its employees donated a total of Rs. 32 lakhs towards rehabilitation efforts via the Prime Minister's Relief Fund.

In India ARIEL a brand in the cloth washing

market where the materialistic difference is minimal announced a contribution of Re 1 on every pack of its sales for blind relief society.

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Tesco, Computers for Schools

Started in 1992 as a one-off promotion,

the program has developed into a longterm strategic initiative for the grocery chain.

Tesco provides its customers a voucher

for every 10 spent in-store. Shopper donate their vouchers to the school of their choice, which exchanges them for brand-new computer equipment.
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