ethics and social responsibility in marketing strategy

ETHICS AND SOCIAL RESPONSIBILITY IN MARKETING STRATEGY Purpose Leadership and Brand Success Aligned

Thursday, April 7, 2016

LINDA PAZIN

•  Founder and CEO, Pazin Strategic LLC •  Director of Global Listings for Western Region, New York Stock Exchange

•  Develops strategic communications strategies for private companies, high-‐growth public companies and worked on over 100 IPOs, spin-‐offs and M&A

•  Email: [email protected]

•  Twitter: @lindapazin

•  Linkedin: linkedin.com/in/lindabandovpazin

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AGENDA

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•  Corporate Social Responsibility • What is your Why?

•  Cause Marketing

•  TOMS, Goldman Sachs and Dove brand campaigns

•  Purpose leadership = brand success

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“It takes 20 years to build a reputation, and five minutes to ruin it. If you think about it, you will do things differently ”

-‐Warren Buffet Chairman, Berkshire Hathaway

THE BEST RANKED SOCIALLY RESPONSIBLE COMPANIES

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WHAT IS CORPORATE SOCIAL RESPONSIBILITY?

•  CSR is not: Ethics, Philanthropy and Public Relations •  General Definition: A set of actions a company takes to improve, maintain or mitigate a company’s impact on society and the environment while increasing value

•  CSR deals with the role of business in society

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WHAT IS YOUR WHY?

• What does your company do? • What is its purpose?

• What are its values?

• Who does it serve?

• What is its mission?

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WHAT IS CAUSE MARKETING?

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74% of consumers are more likely to buy from a

brand because it’s associated with a cause

85% of consumers have a positive image of a

company if it’s associated with a cause they support

94% of consumers are either somewhat likely or very likely to switch when

price and quality are equal

BRAND CASE STUDIES

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TOMS MISSION STATEMENT

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“What if I start a shoe company and every time I sold a pair of shoes I gave a pair away and that way if as long as I would continue to give them shoes

these children will have shoes for the rest of their lives.”

-‐ Blake Mycoskie, Founder and Chief Shoe Giver, TOMS

TOMS ONE FOR ONE CAMPAIGN

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ONE FOR ONE MARKETING MODEL

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•  Company’s promise to deliver a free, new shoes to a child in need for every sale of their retail product

•  Countries include Argentina, Ethiopia, Guatemala, Haiti, Rwanda, South Africa and the United States

•  Over 50 million shoes given since 2006 with over 100 partners in over 70 countries •  Creating sustainable business by turning customers into benefactors rather than

depending on fundraising

TOMS: A “CAUSE MARKETING” SUCCESS

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•  Fit between valued customer and marketing mix •  TOMS customer is very active on social media •  Fit between social cause marketing and using social media; active and socially aware consumers

•  Active community that acted as brand storytellers – utilizing people’s networks on social media

•  Created awareness, reaching large audience and geographical coverage through social media with low marketing cost

WHAT CAN COMPANY’S LEARN FROM TOM’S CAUSE MARKETING STRATEGY?

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•  Focus on mission and long-‐term vision: they have NO advertising budget

•  Attract buyers through design contents, traveling to colleges, shoe drops, which are mostly in CA that give away a $50 gift bag, stickers and flyers to events

•  TOM’s creates a campaign that benefits all those involved

•  Consumer receives their desired purchase, but a child in need is also provided the products

•  They make sure to cover every cost when transporting and distributing the goods

•  Follow up on the impact they have made globally

WHAT IS THE 10,000 SMALL BUSINESSES INITIATIVE?

•  $500 million investment to help entrepreneurs create jobs and economic opportunity

•  Greater access to education, financial capital and business support services

•  Program operated in Chicago, Cleveland, Detroit, Houston, Los Angeles, Miami, New Orleans, New York, Rhode Island, Salt Lake City, Philadelphia, and other cities

•  To be eligible, you must be in business at least two years, have four or more employees and generate between $150,000 and four million dollars in annual revenue.

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DID GOLDMAN SACHS HAVE A BRANDING PROBLEM?

•  Re-‐chartered as a bank holding company to gain access to government bailout money in 2009

•  Re-‐positioned itself with less focus on wealthy clients, offering for the first time consumers loans online

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GOLDMAN SACHS IDENTIFIED A PROBLEM

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GOLDMAN SACHS 10,000 SMALL BUSINESSES

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WHAT WERE THE RESULTS?

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•  After 6 months post graduation, 46% of participants added new jobs, increasing to 57% 18 months after the program

•  22% of US small businesses report increasing their number of employees surveyed by the National Small Business Association

•  67% of participants report increasing revenues after 6 months, with 76% increasing revenues after 18 months.

•  45% of US small businesses reported increasing their revenues surveyed by the National Small Business Association

•  Access to capital is an important lever for business growth. After 18 months, 82.9% received access to capital

UNILEVER FAMILY OF BRANDS

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UNILVER MISSION STATEMENT

•  Unilever is committed to supporting sustainability and providing our consumers around the world with the products they need to look good, feel good and get more out of life.

•  Today we are rapidly loosing ground. The consumer is often ahead of us. A small, but growing number of consumers are choosing sustainability sources and responsibly made products. Most will dismiss this as ‘niche’ will surely miss out.

-‐ Paul Polman, CEO of Unilever

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DOVE: REAL CAMPAIGN FOR BEAUTY

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DOVE BRAND GOALS

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•  Dove needed to revive its brand, their PR firm conducted a study involving 3,000 women in 10 countries to learn about women’s priorities and interests.

•  Only 2% of women considered themselves beautiful, the executives at Dove saw at opportunity.

•  In 2004, Dove launched its revolutionary “Campaign for Real Beauty” •  Expand the definition of beauty beyond the unattainable one portrayed by

society •  Dove launched a series of videos and education programs to challenge beauty

stereotypes and encourage discussion and action

DOVE BREAKS BARRIERS AND RE-‐DEFINES BEAUTY

•  Launched conversation around unrealistic beauty standards •  The Campaign for Real Beauty positively changed the way women and young girls viewed themselves

•  Dove is committed to helping all women realize their personal beauty potential by delivering products that deliver real care

•  Dove believes beauty should be for everyone

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DOVE CAMPAIGN FOR REAL BEAUTY

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DOVE CREATES TRANSFORMATIONAL CHANGE

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•  Helps Dove redefine consumer behavior towards beauty products globally

•  10 years later, research shows that women defined beauty on a large array of qualities

•  Education programs have reached over 7 million girls through regional and national partnerships such as Girl Scouts of the USA and Girl Guides

•  Dove’s sales increased from $2.5 billion to $4 billion

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BRAND LESSONS ON SOCIAL RESPONSIBILITY AND MARKETING STRATEGY

THE CUSTOMER IS IN CHARGE

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The success of your business will

be in direct proportion to the emotional impact you have on your

customers

The emotional impact on your

customers will be in direct

proportion to the social impact of your purpose

The social impact of your purpose will be in direct

proportion to the success of

your business

WHY DOES IT MATTER IF COMPANY’S ARE SOCIALLY RESPONSIBLE?

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•  Better return on investment •  More motivated employees •  More loyal customers

•  Executives understand CSR can promote respect for their company which can result in higher sales, enhance employee loyalty and attract better employees

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Thank You @lindapazin