There is no doubt that cause marketing makes a difference. It supports charitable organizations in need of funding and has the power to build brand loyalty with consumers. But when it comes to the bottom line, does cause-marking increase sales?
Starting in 2002, I worked with John Shuman, a Vidalia onion supplier, to develop the Produce for Kids Campaign. John’s son had been taken to a Children’s Miracle Network (CMN) hospital in Georgia. From that experience, he found that hospitals depend on fundraising for much needed equipment, research and more.
After learning that his two largest retail targets were also supporters of CMN, John had the idea of bringing the produce industry together to raise funds for children’s hospitals. We started by reaching out to companies to sponsor the campaign and then we approached retailers. The sponsors divided up the cost for the marketing/PR and made a per unit or box donation for every item that was shipped into the retailers’ markets during the time period of the campaign.
For retailers, the marketing efforts consisted of point-of-sale materials, in-store events with the local media, circular advertising, public relations and social media activities.
Today, Produce for Kids has grown from a promotional campaign to its own organization that has raised $5 million dollars to benefit CMN hospitals across the country. Seventeen supermarket banners representing more than 3,000 grocery stores in 33 states and the District of Columbia support the Produce for Kids spring campaign. More than 50 fruit and vegetable growers sponsor the program, representing every major category in the fresh produce department.
As a result, John Shuman’s business has grown exponentially with several large retail customers purchasing his sweet onions.
Consumer Reward Companies that Give Back
Research has shown that consumers are loyal to philanthropic brands. According to Nielsen’s 2013 Consumers who Care Study, 50% of global consumers said they would be willing to reward companies that give back to society by paying more for their goods and services (44% in the U.S. and 38% in Canada).
Cone Communications has been conducting cause-marketing research since 1993. According to their latest research study, Americans are as amenable toward cause marketing as ever:
- 85% have a more positive image of a product or company when it supports a cause they care about; and,
- 80% are likely to switch brands, similar in price and quality, to one that supports a cause.
In 2012 the Boston Consulting Group released its study called “The Millennial Consumer: Debunking Stereotypes” which found that for many in this generation causes and cause marketing is an important and animating force.
Be Authentic to Your Brand
When making a decision to develop a cause-marketing campaign, companies should be authentic to who they are and what they value. One key reason for Produce for Kids’ success was because of John Shuman’s own personal experience at a Children’s Miracle Network Hospital. This became a driving force to help other children like his own son.
It’s important that companies to be “real” when marketing to consumers and support causes that best reflect their own identity in the marketplace. For example, if a company values sustainability than supporting a cause that benefits the environment is a good place to start.
We all can learn from John example. Since he started Produce for Kids, his business has grown to become the second largest Vidalia supplier and third largest sweet onion importer in the industry. Now that’s a sweet effort!
