beyond philanthropy: a briefing for MAALA october 2001

1. beyond philanthropy: a briefing for MAALAoctober 2001 . Social Marketing . Social Reporting . Social Thinking

2. Contents • Introduction to: • Good Business • social marketing • BSkyB case study – Reach For The Sky • Nike and DaimlerChrysler snapshot case studies • Designing a strategy • Selecting a cause • Creating a campaign

3. Good Business • Established 1997; independent, full service social marketing agency • Experience in commercial communications combined with detailed knowledge of social policy and the voluntary sector • Member of the Institute of Social and Ethical Accountability • Selected as one of Sunday Business/Management Today ‘Vision 100’ most visionary companies in the UK, January 2001

4. Major client experience Arcadia Group Marks & Spencer BSkyB Morgan Stanley Centrica NatWest Coca-Cola New Millennium Experience Co. Co-Operative Bank Nike DaimlerChrysler RAC DETR/Constructionline Scottish Power firstdirect Unilever

5. Social Marketing =social solutions for marketing objectives • A partnership between a company and a social cause for mutual benefit • A way for companies and brands to help themselves by helping society • Examples include: Kelloggs Australia/Kids Help Line; Tesco UK/Computers for Schools; VISA USA/Read Me A Story; Sky TV UK/Reach For The Sky; Sears Roebuck USA/Get Back Give Back; British Gas/Help the Aged

6. Consumers are attracted to it • Latest UK Business in the Community/Research International survey (November 2000) showed: • Growing consumer awareness and acceptance of social marketing • 67% participation in a social marketing initiative of some kind • Of these, 77% felt more positively about relevant brand; 48% changed behaviour by: switching, trialling or increasing usage • 59% would be more likely to use/recommend/be loyal to brand • Consumers who were aware of the social marketing campaigns scored the relevant brands significantly higher on three key brand affinity measures: comfort, innovation and trust

7. Consumers accept the ‘deal’ • Reasons given for non-participation in social marketing campaigns: prefer to support good causes another way 4% too many schemes like this 3% don’t agree with this type of scheme 1% it’s the Government’s job, not business’ 1% it’s just a cover-up for anti-social activities 7% • 67% of consumers think more companies should be involved in social marketing (Business in the Community/Research International)

8. Employees are motivated by it • 9 out of 10 workers whose company has a social marketing programme feel proud of their company’s values vs. 56% in companies without • 87% feel a strong sense of loyalty to their employer vs 67% in companies without social marketing programmes • 56% of workers wish their employers would do more to support a social cause • Amongst Ivy League graduates, good corporate reputation ranked no.2 among factors influencing choice of employer; behind career growth potential but ahead of salary, benefits, corporate financial performance, and sports and social facilities (US: Cone/Roper)

9. Investors, regulators and legislators are expecting it • Since July 3rd 2000, all UK pension funds must declare their policy on social, ethical, environmental investing • From 2001, the London Stock Exchange listing rules include reputation and probity in Directors’ responsibilities for risk • Company Law Reform set to impose/encourage triple bottom line reporting: financial, environmental/social • FTSE4Good from June 2001

10. Government expects it • Tony Blair: • “The 21st century company will be different. Britain’s most successful companies are realising that every customer is party of a community, and that social responsibility is not an optional extra.” • Kim Howells, formerly Minister for Corporate Social Responsibility: • “The business case made for widening the reach of corporate social responsibility (CSR) - and for CSR managers to have the ear of their CEO directly - tends to focus on the issue of reputation management…image is easier to communicate if it matches reality. In short, there are gains to be made from embedding a CSR mentality in your business.”

11. Role of social marketing To combine the consumer power of brand marketing with the reputation benefits of corporate citizenship

12. Combining corporate strengths ‘Corporate citizenship’ ‘Brand marketing’ • Satisfies my needs • Is a big brand that can get things done • Rewards me for my purchase decision • Does good every now and again • Shares my values • Believes in the things I do • Can be trusted to do the right thing • Is a force for good Low consumer impact; risk of ‘dull and worthy’ Low opinion former impact; risk of ‘superficial’

13. A powerful combination Social marketing Delivers tangible benefit to me, my family, my community Brings values as well as value Is a force for long-term good ‘Corporate citizenship’ ‘Brand marketing’ Inspirational use of brands to help social progress

14. Social marketing is an efficient reputation tool customers staff different sites/ divisions social marketing campaign media opinion formers/ regulators local communities NGOs/ voluntary sector suppliers

15. Social marketing campaigns: the potential opportunities • Define brands on an emotional level • Attract customers and build loyalty • Attract, retain and inspire employees • Gain favourable media coverage (esp. local/regional) • Gain approval from opinion formers, investors • Improve relationships with local communities and suppliers

16. Social marketing campaigns:the dangers and pitfalls • Dominance of a charity/good cause brand • Best Practice Disease: identikit programmes that deliver little distinctive brand benefit • Lack of focus: piecemeal programmes which try to tackle too many issues in too little depth • Lack of creativity: different standards applied to social/community projects than to mainstream communications activities • Superficial partnerships: short-term, exploitative links with charities and causes (potential for cynicism, or even hostile backlash)

17. Developing a social marketing strategy: Sky case study

18. Start with brand values

19. Start with brand values Challenge, innovation, creativity, entertainment

20. Specify marketing objectives Challenge, innovation, creativity, entertainment Marketing objectives

21. Specify marketing objectives Challenge, innovation, creativity, entertainment Marketing objectives ‘Softer’ side of Sky Middle England mums Not just sport

22. Identify social cause Challenge, innovation, creativity, entertainment Social cause Marketing objectives ‘Softer’ side of Sky Middle England mums Not just sport

23. Identify social cause Challenge, innovation, creativity, entertainment Social cause Marketing objectives Brand most trusted by teenagers Poor careers advice in schools No link between jobs/passions ‘Softer’ side of Sky Middle England mums Not just sport

24. Find the common ground Challenge, innovation, creativity, entertainment Social cause Marketing objectives Brand most trusted by teenagers Poor careers advice in schools No link between jobs/passions ‘Softer’ side of Sky Middle England mums Not just sport

25. Find the common ground Challenge, innovation, creativity, entertainment Social cause Marketing objectives inspire teenagers to see what they can be Brand most trusted by teenagers Poor careers advice in schools No link between jobs/passions ‘Softer’ side of Sky Middle England mums Not just sport

26. Create an inspiring campaign Challenge, innovation, creativity, entertainment Social cause Marketing objectives inspire teenagers to see what they can be Brand most trusted by teenagers Poor careers advice in schools No link between jobs/passions ‘Softer’ side of Sky Middle England mums Not just sport

27. Create an inspiring campaign Challenge, innovation, creativity, entertainment Social cause Marketing objectives inspire teenagers to see what they can be Brand most trusted by teenagers Poor careers advice in schools No link between jobs/passions ‘Softer’ side of Sky Middle England mums Not just sport Reach for The Sky

28. Reach For The Sky • Fresh, inspiring approach to career advice: backing from DfEE, schools career services, community partners, parent groups; working with public and voluntary sector experts to deliver innovative, top quality content • Fully integrated campaign (TV, radio, magazine, website, grass roots career development workshops) • Sky employees involved as mentors • Over 1 million website users • Over 14 million viewers of TV ads • 500,000 magazines distributed • 19 locations for workshops around UK • Evaluation shows significant marketing and social impact, and internal benefits

30. A fully integrated corporate campaign on-air magazine website employee participation 0800 no. Reach For The Sky customer loyalty cinema tactical marketing grass roots nationwide

31. Marketing impact • Customer perception of Sky doing good work in the community: 30% to 47% • 73% of customers who are parents more likely to continue subscribing • 53% of customers who aren’t parents more likely to continue subscribing • 46% of non-customers more likely to subscribe • 25% of general public more favourable to Sky (Research International)

32. Social impact • 92% of teenagers more motivated about potential careers • 62% improved decision making skills • 75% more opportunity aware • 80% more self-aware • 91% improved career choice skills • 72% discovered new talents (Oxford University/DfEE Measurement of Guidance Impact)

33. Employee impact • 73% increase in numbers volunteering • 79% of mentors improved skills • 86% greater pride and loyalty • 92% more productive • “I’d almost get attacked at parties when I mentioned I work for Sky in the past. Reach For The Sky is part of changing this. Good PR and putting profit and turnover to good use. It fits with the company ethos and is doing something different and new.” (Sky internal research)

34. Nike – zoneparcs/sport4londonschools • Nike zoneparcs: • working with DCMS/DfEE/Youth Sport Trust to tackle bullying/racism in schools via credibility of Nike brand • branded areas and structured activities to promote positive use of break times in school • Nike sport4 londonschools: • good cause component of Nike 10km London run in Summer 2001 • runners’ nominations win equipment for London schools • Good Business managing: • campaign promotion • schools recruitment/participation • Nike staff involvement • fulfilment

35. DaimlerChrysler: Sport for Good • Social marketing initiative a key component of the new Laureus Sports Awards, the world’s first sporting “Oscars” • Good Business created and now manages the Sport For Good Foundation, supporting projects around the world which harness the power of sport to bring about social change • Projects include: the Mathare Youth Football League in Kenya, tackling environment and health issues in one of Africa’s worst slums; Midnight Basketball in Virginia, USA, tackling urban youth crime, and Youth Sport Foyle in Ireland, bringing together previously divided communities through sport

36. Key learnings Sole branding: to deliver ownership Strong communication: to deliver awareness Real investment: to deliver credibility tailor-made programmes are best

37. Putting it into practice Design strategy Select cause Create campaign

38. Designing a strategy • Business social activity can be assessed on two key measures: • corporate vs consumer • responsible vs progressive

39. Corporate vs Consumer • Corporate social marketing initiatives: • reflect corporate status • target opinion formers • deliver low overall awareness (no word-of-mouth) • Consumer social marketing initiatives: • reflect the emotional component of brands • target customers • deliver high levels of awareness (word-of-mouth)

40. Responsible vs Progressive • Responsible social marketing initiatives: • comply with best practice • give resources to charities/good causes • target niche, underprivileged groups • Progressive social marketing initiatives: • demonstrate leadership and innovation • use brands for social change • target wider society

41. Consumer focus Responsible Progressive Corporate focus

42. Consumer focus SAFE AND SOUND DISTINCTIVE HERO Responsible Progressive DO-GOODER LICENCE TO OPERATE Corporate focus

43. Hero Brands Socially responsible within the business + Social leaders outside the business

44. Selecting a cause • Merits of potential social causes can be assessed on two key measures: • Expression vs Association • Edgy vs Populist

45. Expression vs Association • A social cause that expresses the brand: • instant/obvious fit • ownership of a sector benefit • related to a core competence • A social cause with which to associate the brand: • driven by target audience rather than brand/product • reflecting corporate status • could be done by anyone

46. Edgy vs Populist • Edgy social causes: • are less well supported • offer greater risk/reward • are more efficient • Populist social causes: • are over-subscribed • are safe • require greater investment

47. Expression Edgy Populist Association

48. Expression British Gas: Help the Aged Sky: Reach For The Sky Nike: zoneparcs MTV: AIDS Mates: AIDS Edgy Populist Tesco: Computers for Schools Walkers: Books for Schools Sainsbury’s: Comic Relief VISA USA: Read Me A Story Microsoft: child abuse Association

49. Expression √ √ Edgy Populist √  Association

50. Example for a telecoms company…