Ethical Marketing – Friend or Foe?

1. Ethical Marketing – Friend or Foe?

2. Before we go on, what is The Southern Co-operative? We trade under the national brand as an independent co-operative We share a central buying group with other co-operatives We have around 130 retail stores and 30 funeral homes across 7 counties in the south of England…T/O £240M We are owned by local people…our members and colleagues We have our own board of directors who are not fat cats! We believe that whilst we gain from national brand strength our USP is that we are “local” and therefore more attuned to our customers’ needs and wants I’m Head of Brand Engagement and Communication (part of which is Corporate Social Responsibility)

3. Ethical Marketing…Is it simply the latest hype from the PC lobby? Can 'real' businesses afford to accommodate these ideas in the current cash constrained environment? Or is it the new marketing reality, an approach that no company can afford to ignore?

4. What is marketing? Marketing is used to create the customer, to keep the customer and to satisfy the customer. With the customer as the focus of its activities, it can be concluded that marketing management is one of the major components of business management. The term marketing concept holds that achieving organisational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions.It proposes that in order to satisfy its organisational objectives, an organisation should anticipate the needs and wants of consumers and satisfy these more effectively than competitors. Source - Wikipedia

5. What is marketing? Marketing is used to create the customer, to keep the customer and to satisfy the customer. With the customer as the focus of its activities, it can be concluded that marketing management is one of the major components of business management. The term marketing concept holds that achieving organisational goals depends on knowing theneedsand wants of target markets and delivering the desired satisfactions.It proposes that in order to satisfy its organisational objectives, an organisation should anticipate the needs and wants of consumers and satisfy these more effectively than competitors. Source - Wikipedia

6. What do our customers want?

7. What do our customers want? They have told us that they want… Products that are sourced or produced ethically To shop in a business that they trust

8. The National Brand Sustainable resources…forestry and fishing Packaging…the “naked cucumber” and thinner glass Ethical farming…Elmwood Chickens and bee friendly pesticides Energy…only buy from green suppliers Recycling…energy from waste and paper/plastic Healthy eating initiatives Fairtrade - 260 product - £1 out of every £6 spent at Co-op

9. Fairbourne Springs water A practical and simple idea! Kids get some fun! We promote at events, selling at a reduced price to thirsty people *

11. What else do our customers want? They have also told us that they want… More locally produced products To support their local community

12. What else do our customers want? Nearly a third (30%) of shoppers say they had specifically purchased locally produced food over the previous month, double the number in 2006, according to new consumer research released by IGD. Support for ethically produced foods in general has withstood the pressures of an 18-month recession and is in fact growing, despite the tough economic conditions. When asked about food they have specifically purchased over the last month, shoppers responded: • 30% said locally produced food (up from 15%) • 27% Fairtrade products (up from 9%) • 18% products with high animal welfare standards (up from 11%)

13. The “local” side of the National Brand Supporting local events Giving a share of our profit back to our communities Volunteering on local projects Working with corporate partners… Hampshire and IOW Wildlife Trust The Greening Campaign Hampshire Fare Portsmouth Festivities Naomi House Milestones Museum YouthNet Sussex Wildlife Trust Sourcing from local suppliers *

15. What do we really get out of this? Volunteering opportunities for our colleagues and members on environmentally important sites The Trust has 30,000 members in our trading area…they all get to hear of this activity Our customers get something truly local The store colleagues get some variety We get a lot of PR (working on getting this initiative published in the Times…local TV also likely to run it) Networking!

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18. It’s not the same everywhere! Community activity varies according to the area and the demographic profile of the customers who use a particular store Community Supermarkets Neighbourhood Stores

19. Community Supermarkets Core to the community Significant community involvement Manager in residence Famous for food Full range of groceries Local products Premium foods and promotions Speciality – deli, fine wines, Fairtrade Direct deliveries Service counters Services – PO, pharmacy, ATM, bill payment Attracts customers from within and outside of a half mile radius

20. Neighbourhood Stores Involved in the community Sells everything It’s my butcher, baker and greengrocer Supports internet/supermarket shopper Food for tonight…snack for now Promotions and seasonal Services – lottery, ATM, bill payment, PO, petrol, carwash Attracts customers from within a half mile radius

21. Community Supermarkets Community involvement… Community Televison Community Support card Manager on local business assoc board or school governor Store colleagues and local members on charity awards panel Have stalls at local events Join in with local initiatives

22. Neighbourhood Stores Community involvement… Holds raffles for local events Give a lot of smallish donations to a lot of local groups Store managers work together to support events in a larger community

23. And not forgetting… Community involvement… Counselling and advice groups Smallish donations to local groups Involvement in local projects Funeral homes work together to support events in a larger community

24. Embedding ourselves in the community It’s no good paying lip service…we are genuine about we do in our communities! We have donated to hundreds of small events Supported 12 main regional events Given large sums of money to good causes Supported over 70 local businesses Raised £130,000 for our Charity of the Year In 2009 over £300,000 given to communities within our trading area - this year £400,000?

25. Community Television In most of our community supermarkets Controlled centrally Very popular with local organisations Not used for advertising product unless it is local No supplier funding! It costs us a lot to do it Fantastic response from our communities! Deli – full screen films of local products Counter – ethical films message from the manager community ads local weather forecast Beer section – Under 25? film + audible message

27. The Community Support Card We give between £10K and £30K per store at 15 stores (up to 30 by the end of this year)…around 3p for every £1 spent in the store until target is reached Bids are put in by good causes – MUST be local! Colleagues, customers and community representatives decide who will get the money For example…at Freshwater, we have given £25K to the local independent lifeboat and £5K to the Community Centre

28. What have been the results? We have been able to compete with, and actually increase sales in the face of competition from Sainsbury and Tesco in several locations

29. What have been the results? We are invited to join in with many community events We have colleagues who are active within the community …school governors, chamber of commerce, Fairtrade groups, carnival committees We have gained the respect of many community groups We get excellent positive PR (averaging 1 per day) Our people get to have some fun! Sales figures are up!

30. Don’t underestimate the value of internal marketing! We spend a LOT of time telling our colleagues about their business, especially about ethical and local Colleagues are given paid time off to volunteer We genuinely recognise and support our colleagues and encourage them to “join in” An employee who is proud of their business… Talks about it’s positive aspects to friends and family Stays with you longer Is often happier! (which is apparent to your customers)

31. Is it simply the latest hype from the PC lobby? Certainly not the feedback we get from our customers and colleagues! Can 'real' businesses afford to accommodate these ideas in the current cash constrained environment? You can’t afford not to! Or is it the new marketing reality, an approach that no company can afford to ignore? We think so!

32. Conclusion We listen to our customers and meet their needs and wants, supporting their own values and beliefs as much as possible If ethical is part of that, then it makes our job more enjoyable as we genuinely feel that we are helping to make a positive local difference We are not like him! We believe in what we are selling because we have seen the results! I sell “total crap” *

34. Ethical Marketing – Friend!