Wednesday, June 17, 2009

Padhega India toh Badhega India…P&G Shiksha

We love the thought and the cause! P&G has been supporting Shiksha for about 5 years now. Apparently, sales dip in the April-June quarter. So, P&G came up with an innovative idea 5 years ago, of linking product sales with a worthy cause.

All consumers need to do to participate is simply buy any of P&G’s large packs of Tide, Ariel, Pantene, Olay, H&S, Rejoice, Vicks VapoRub, Whisper, Gillette Mach 3 Turbo, Gillette Series, Oral B, Duracell or Pampers in the months of April, May & June ’09 and part of the proceeds will go towards children’s education.


However, irrespective of sales, P&G has committed a minimum of Rs. 1 cr. to its NGO partner CRY, which will be allocated to projects focused on enabling the child’s right to education.
Project Shiksha is part of P&G's global philanthropy program - P&G Live, Learn and Thrive that focuses on the development of children in need across the globe, with
Education of Children via Shiksha being the priority in India.
Till Date, Shiksha has set 87,000+ children across 435 communities on the path to the right to education with a donation of over Rs.8+ crore. The NGO partner is CRY
Impressive statistics! But we have mixed reactions to the program. I distinctly remember seeing the Shiksha logo on a pack of Whisper a few years ago. And I thought, “Wow! What an initiative!”. I didn’t research much or even notice the campaign or PR around it. However, the thought remained in my mind.

This year, I followed the entire campaign more closely. P&G media partners did a pretty decent job at least in print and on Radio. Didn’t catch too much on television though.
However, it seemed to be missing from all modern media. Missing on Facebook!! Why?

Also, hardly noticed any communication at point-of-sale. Hypercity, s
eemed to support with dedicated floor display and communication on one pillar, but there was no visibility in other organized retail stores. And what about unorganized retail, the neighborhood kiranas, which contribute to bulk of P&G sales? Nope, nothing was visible. No accreditation on the product either!!

Well, things like PR & Celebrity walkathon seemed to have been managed quite well, but detailing where it mattered, left a lot to be desired.

That’s what disappointed me sorely. What a fantastic initiative, from one of the most respectable marketing companies. Who knows brand building and marketing better than P&G. But, whatever happened to the characteristic P&G execution? Why did it seem like P&G’s phenomenal rigour was missing?

The cause needs awareness at millions of outlets where P&G products are present. It needs critical presence in modern digital medium. It needs innovative thinking. Celebrity walkathons, while important, may not necessary catch attention.

Just hope 2009 was an aberration. Hope, the cause association will continue and get the characteristic P&G marketing support it deserves next year! P&G we have high hopes from you.

Know more, read more :

Wednesday, June 10, 2009

How Good is Doing Good Quietly?



Businesses are spending a few million dollars on CSR, trying to make a difference in their eco-system. But do their customers know about it? Do you think customers care about it?

Customers do care, provided they know about it! Causes need awareness as much as they need funds. Doing good quietly by donating money, is required. However, I place greater importance on spreading the word around. Awareness opens up more avenues for funds and increases chances of citizen participation. Individual involvement has a far greater impact than a business or philanthropist quietly cutting a cheque for the cause.

We spoke to a few NGO heads. We thought their problem of funds could be so easily resolved by corporates. We got a fresh perspective on how NGOs look at fundraising and awareness.

Broad-based individual involvement is a far more predictable source of funds than corporates. Very often, corporate involvement is subject to the CEO’s or the CSR head’s favourite charity. The individual moves and the cause loses its support! I have seen this happen to an very well known performing arts organization. For 10 years, they were supported by the brand because the COO/ deputy MD believed in them. He moved and organization lost its main sponsor.

The key focus of the NGOs is therefore, increasing cause-awareness and increasing the individual donor base.

On the point of awareness, it was heartening to see current hot favourite Katrina Kaif making a point. She is helping her mother, Susanna, raise a fund of Rs 50 lakhs for a prenatal care center. She is going to auction her film costumes, accessories and her personal belongings. You may think No big deal! So many celebrities have done it before!

The essence is in her argument in favour of the auction event. When asked why she couldn’t have easily donated the amount instead of doing an event, she said, ‘Because it will create awareness and motivate people to come forward, which will further help the cause’. Wow! Beauty with a conscience!


That’s the point about cause-marketing. It helps the cause by spreading awareness. Doing good quietly has limited impact.

Sunday, May 3, 2009

What drives people to volunteer? – A sense of duty, pride, fulfillment or helplessness…

I read an article titled ‘Funds for NGOs trickle in, but volunteers swell to a flood’ the Economic Times of 2nd May. Initial reactions was of concern and perhaps, of disappointment. Contributions from individuals and corporations have dropped by about 20%. It is distressing, but not altogether surprising. With the economic downturn bringing in so much disruption, it was unlikely that the world of non-profits would have remained unaffected.

But apply a little more thought and the positive aspects stand out! The article has hit upon a very critical aspect of ‘Cause Marketing’ – Employee involvement! People are signing up as volunteers in hordes. Even organizations are actively encouraging their employees to volunteer and take home 50% pay.

All this will only make individuals more sensitive to an aspect of society and community, they were hitherto indifferent to. We all need to remember that businesses and professionals are not independent of the community. Non-profits, social development organizations, businesses, individuals as citizens and as employees, underprivileged sections of the society- all are a part of the same eco-system. Hence, it is so important to get involved.

Volunteering is one of the most involved forms of cause ownership. There is a need to foster a generation of socially responsible, socially aware and socially engaged individuals and employees.

The 2006, Cone Cause Millennial Case Study findings from an online survey of 1800 respondents, revealed that:

79% want to work for a company that cares about how it impacts or contributes to society
69% feel that their company’s social and/or environmental activities make them feel proud to work there
64% report that their company’s social and/or environmental activities make them feel loyal to their company

Impressed with the numbers? Read about the article & findings of the Study:

http://economictimes.indiatimes.com/News/News-By-Company/Corporate-Trends/Funds-for-NGOs-trickle-in-but-volunteers-swell-to-a-flood/articleshow/4474145.cms


http://www.coneinc.com/research/archive.php

Friday, May 1, 2009

Corporate Philanthorpy Isn't Cause Marketing


Why does cause-marketing interest us so much? Isn’t there enough participation from corporations already? Why add another context? There are so many trusts and foundations which have been supporting social development for decades through donations. So, what’s new about business in society?

Sure! Donations, large or small, are fundamental for the survival of the Non-profits. However, Milton Friedman has given an interesting twist to philanthropic intentions of businesses. He asked:
"Should corporations engage in philanthropy at all? "
The famous Friedman argument: The only “social responsibility of business” is to increase its profits. The corporation is an instrument of the stockholder who owns it. If the corporation makes a contribution, it prevents the individual shareholder
from himself deciding how he should dispose off his funds. If charitable
contributions are to be made, they should be made by individual stockholders,
or, by extension individual employees – and not by the corporation
Friedman’s arguments most certainly hold good, when corporate contributions are unfocussed and piecemeal. And when their benefit to business can’t be established.

In December, 2002, Michael E Porter and Mark R Kramer, in their Harvard Business Review paper ‘The Competitive Advantage of Corporate Philanthropy” argued that ‘Context Focused Giving’ contradicts Friedman’s assumptions. It does so, by bringing about a convergence of interests.

When corporations engage in ‘Context Focused Giving’ they support the right causes in the right ways – they get the where and how right – and they set in motion a virtuous cycle.

“Cause Marketing” is the just that first step in a corporation’s journey towards strategic philanthropy. It is a marketing relationship and not a donation. Its effectiveness needs to be evaluated like that of any marketing campaign.

A cause marketing campaign need to be based on a clear strategic intent. Its effectiveness as a tactical campaign would be limited, if not detrimental.

The above mentioned HBR article makes for an excellent, albeit heavy reading. It provides a brilliant perspective to a corporation’s involvement in social development. A must read for all. Find it on: http://hbr.harvardbusiness.org/2002/12/the-competitive-advantage-of-corporate-philanthropy/ar/1

Thursday, April 30, 2009

Introduction to the India Cause Marketing Forum

A few of us, marketing professionals were a bit intrigued and a bit fascinated by the entire area of fund raising and corporate philanthropy. Well, it all started with our quest to find out how principles of marketing can be employed to raise funds for non-profits. We followed various trains of thoughts.


For the last two months we have been researching, or say googling about the NGO-Corporate connection. Why is there a need for businesses to be involved in social development. Perhaps, businsses now want to give back! Nah! the connection is neither that simple nor so altruistic! There is an underlying motive in why businesses partcipate in social causes. A very senior executive decoded it beautifully for us. Businesses need a 'social license' to operate in the community. Given the current levels of awareness and activism, businesses most certainly need to be prepared. Hence, the need to participate in community development


No, this was not a cynic's perspective. It is a very practical approach to a very real problem. Hence, corporate participation in social change has taken on various forms, ranging from corporate philanthropy to corporate social responsibility. However, the connect between business benefit and social change has not yet been established successfully in India. More importantly, how often do companies think about the relevance of their social activities for their customers. Is customer participation even sought?


While exploring this further, we chanced upon a term called 'Cause Marketing'. Cause marketing or cause-related marketing refers to a type of marketing involving the cooperative efforts of a "for profit" business and a non-profit organization for mutual benefit. Creation of the term 'cause-related marketing' is attributed to American Express.


What is the first known instance of Cause-Marketing? How did American Express use Cause-marketing? Hold your curiosity! We shall get you the answers, but not right away!


We delved deeper and were blown by the sheer win-win aspect of cause marketing. It just takes business partcipation in social change to a completely new level. It enables active customer partcipation. It endears both the cause and the brand to customers. The advantage to business can be established directly.


Now that was were Aha! moment. The purpose of this blog, is therefore, crystal clear. We want to set up a platform for all relevant people in the industry, big & small businesses, marketing profesisonals and social development professionals to share their views in this entire area of business partcipation in social change with active customer involvement.


While cause-marketing is big in the US and UK, we have found relatively few instances of its practice in India. But we know it will gather momentum. Its benefits to society and business are so irrestible that marketers will find it difficult to ignore. Marketers across organizations will soon start integrating it into their marketing plans.


Case studies, interviews, views, points & counterpoints, videos, international references, we promise to bring it all together to make this an active interactive forum. We wish to foster a a healthy debate on ideas. If you are feeling cynical, we suggest air your cynism too. We are sure your cynism will find its cure. Especially when you read a few heart warming stories.


So watch this space for a lot more action! Create a movement.


Cheers!


Rama