Cause Marketing: The business of do-gooding

When executed correctly, cause marketing can help grocers support their community, enhance loyalty and boost their bottom line.

Here is a little secret—customers care.

In today’s crowded marketplace, where it has become increasingly difficult to differentiate one brand from another, most consumers say they are willing to support products that are connected to good causes.

According to the latest Cone Communications Social Impact Study, 93% of consumers look for companies that support social or environmental issues in some capacity. Ninety-one percent want to see more products, services and retailers support worthy issues.

Industry observers say the reasoning behind this is simple. Consumers make buying decisions based on a combination of emotional and rational values. These vary by product category and that one without the other will not convert that “look” into a “buy.”

Social media has exacerbated this by giving consumers infinite choices to select from. “Retailers and charities are faced with donor fatigue and competition for share of voice,” says Robert Hill, president and CEO of Jacksonville, Fla.-based Acosta Sales & Marketing. “To truly galvanize consumers in the crowded charitable landscape, you need to understand what matters to your customers.” 

Given the choices available, figuring out how to conduct a successful cause marketing program can be overwhelming. Megan Strand, communications director for the Cause Marketing Forum based in Rye, N.Y., says that the most successful cause programs have two things in common—they are both simple, and easy for consumers to understand. She says using a donation equivalent that paints a clear picture for consumers is one of the best ways to quantify a donation. For instance, the Safeway and the Safeway Foundation often run programs at the register that clearly explain to shoppers how a $1 donation will provide seven meals to a local family.

“These programs work because ‘the ask’ is small, but the volume of consumers agreeing to donate is extremely high,” she says. “Most consumers are willing to pitch in to help a good cause, especially if it’s as simple as clicking a button when they are already paying for groceries.”

Cause marketing’s ability to increase customer loyalty is highly effective, especially when it involves a neighborhood-based program.

Officials at Kroger understand this. The retailer recently changed its charitable giving, which is now linked to loyalty cards, allowing consumers to choose where the donations will be directed. “If your shoppers know that grocer X will donate to your kid’s school every time you shop there, the chances are higher you’ll pick that retailer every time over grocer Y,” says Strand.

Retailers can get into trouble with cause marketing programs when they get involved with run-of-the-mill, copycat programs that lack authenticity and transparency, she says.

Taking all this into consideration, Acosta created a best-in-class cause marketing program that engages shoppers by leveraging its relationships with the nation’s most trusted CPG brands and broad network of grocery retailers across the U.S. In 2010, Acosta launched Believe in Heroes, a program that provides consumers an opportunity to show their support and appreciation for military service members and the newest generation of veterans through the simple act of everyday grocery shopping. Top CPG brands offer consumers high-value coupons, which are available for download online, while grocery stores throughout the country promote the program through their circulars and in-store programs with special signage, point-of-purchase materials and contribution tear pads at the checkout lane.

Believe in Heroes has generated more than $16 million for the Wounded Warrior Project (WWP) to date and has helped enable the expansion of its critical veteran programs to serve more than 56,000 Wounded Warrior Project alumni and nearly 8,000 family members. “These numbers speak for themselves in demonstrating the power of cause marketing and aligning with a charity that resonates with your shoppers,” says Hill.

With support from more than 30 national brands and more than 150 grocery banners, the 2014 Believe in Heroes campaign program officially launched on September 7, in advance of Patriot Day, and ran through Veterans Day, November 11.

“This year, we had two FSI drops supported by social media, bloggers, public relations and advertising to spread the word, encourage consumers to visit wwpbelieve.org and download coupons from participating brands, shop and donate to support the cause,” says Hill. 

Weis Markets is one of the many retailers that support this cause. The grocer recently launched a month-long campaign in November to help increase awareness. In the past three years, Weis Markets and its customers have raised $300,000 for WWP. Weis promoted the program in its circulars and customers could contribute to the program by purchasing select products with the WWP label as well as purchase WWP bracelets, magnets or reusable tote bags.

Caring for kids

Grocery stores have proven to be an ideal place to increase awareness and raise funds for the ALSAC/St. Jude Children’s Research Hospital, based in Memphis, says Steele Ford, executive director, strategic partnerships for the hospital. Ford says the companies that support St. Jude Children’s Research Hospital do so because the hospital is leading the way in how the world understands, treats and defeats childhood cancer and other life-threatening diseases.

St. Jude’s hallmark fundraiser in grocery is its Halloween pin-up campaign in which customers are asked to donate at the register. Since 1992, this campaign has raised $76 million. Some of the retailers partnering with St. Jude include Save-a-Lot, SuperMax, Food Giant and Price Chopper. In addition to participating in the pin-up campaign, Price Chopper creates a new plush animal each year and donates a portion of the proceeds to St. Jude. Price Chopper also holds an employee-giving campaign at the corporate office. Since the partnership began, the retailer has raised more than $1 million for St. Jude.

Consumers are savvy about how they can directly influence their ‘inner circle’ and community through their purchases, say officials at The John Morrell Food Group, a division of Smithfield Foods. “Shoppers are also aware of the impact that different companies and brands can make,” says Chuck Gitkin, vice president, marketing, innovation and R&D for the Lisle, Ill.-based company. “They support those who provide awareness and donate services and products to larger social issues that impact family, friends and their community.”

With both national and regional brands, Gitkin says the company decided to pair each brand with its own cause-marketing partner, allowing it to support many different non-profit organizations. Although each brand is different, he says that their heritage and core values are generally the same—the gathering of family, friends and community with quality products. “This strategy has proven to be a successful model with our sales growth, and made a difference in the communities our customers and consumers live in,” says Gitkin.

The John Morrell Food Group supports non-profit partners such as Operation Homefront, KaBOOM!, Make-A-Wish, The Breast Cancer Research Foundation, No Kid Hungry, STOMP Out Bullying and The Hunger Task Force. Officials estimate that the company has donated hundreds of thousands of dollars, products and services to aid each partner with their different brands to date.

While they may take a different approach with each brand, Gitkin says overall, the goals for each program remain consistent. “We wanted to aid non-profit partners through cash donations from the sales of our products, donate product and also take advantage of our unique assets such as Kirk Herbstreit, Randy Houser and Richard Petty Motorsports to create ‘once-in-a-lifetime’ experiences,” he says.

“We just wrapped up our grilling season with Eckrich and executed over a dozen events with Randy Houser and Richard Petty Motorsports for our military families and Operation Homefront,” says Gitkin. Kretschmar just completed its third wish with Make-A-Wish and Armour just supported Blue Shirt Day, World Day of Bullying Prevention. Healthy Ones and Albertson’s recently hosted an event with The Breast Cancer Research Foundation that kicked off National Breast Cancer Awareness Month. “It’s very important to understand that each event is supported by a retail customer and we evaluate each event to ensure it’s successful for everyone involved. We never want to do an event without a purpose,” says Gitkin.

For many companies, supporting a particular cause holds greater meaning. While officials for Land O’Frost say the company has a long history of giving back to the community, the search for a signature cause came to an end in 2008. That is when the 14-year-old stepson of David Van Eekeren, president and CEO, of the Munster, Ind.-based company, was diagnosed with Type 1 diabetes.

“After the diagnosis we began researching this disease and about the importance for diabetics to eat a high protein, low carb diet and realized that our packaged meat products offer exactly that,” say Van Eekeren.

Support for the Juvenile Diabetes Research Foundation (JDRF) started as an employee fundraiser event. Today it has grown into much more. On a local level Land O’Frost participates in four walks each year and is involved in the JDRF’s Annual Gala in Chicago. Land O’Frost also puts JDRF information on product packaging and has held consumer engagement campaigns in which consumers were able to donate $5 to JDRF.

“This has brought our entire company closer and allowed them to rally together behind something many of their families, not just mine, are impacted by,” says Van Eekeren.

Beyond the money companies have helped raise, officials say it is the personal connections that have been priceless.

Van Eekeren says one of his most inspiring memories was meeting Henry, a seven-year-old, who is a direct recipient of the funds Land O’Frost collected, helping provide him with an artificial pancreas. Henry and his family joined Land O’Frost employees in Chicago this year for the JDRF walk. “It was beyond inspirational for us and our employees to be able to meet someone who has directly benefited from all our hard work,” says Van Eekeren.

Tips on execution

For those first entering cause marketing observers have plenty of advice; but most import—pick a cause you believe in. “The fact that our family is personally touched by this issue and we are passionate about why we want to find a solution for juvenile diabetes really makes a difference, to our company and to our consumers,” says Van Eekeren.

It is also important to be clear in communicating the “why” and “what” behind cause marketing, and to set realistic fundraising goals, otherwise risk alienating the people supporting you and the cause. When supporting a cause, utilize provided resources and lean on experts at the cause or program in order to learn how to engage people. “Essentially this is a long term relationship, a marriage of sorts, and you really want to put the right markers in place to ensure it succeeds,” says one expert.

And do not forget about social media. Consumers care about what a company stands for and what it is. While this has always been the case, social media has magnified this need, say observers.

“I don’t think anyone has all the right answers, but we have found a formula that works for us,” says Gitkin. The most important elements to that formula, he adds, are choosing the right partner, determining the appropriate contribution and understanding all the legal implications. “Our leadership team and brand teams have deep relationships with our non-profit partners.  They have become a part of our business family and we work hard to reach each other’s goals,” Gitkin adds.

His advice includes meshing company goals and objectives with the cause’s needs. “It has to be a winning platform for everyone involved. Understanding the goal up front will eliminate confusion or disappointment later on,” says Gitkin. Most importantly, he advises companies to perform due diligence. “The partners we have today are ones that we spoke with for a long time before committing.”

Officials at Acosta say it is important to stay true to the heart of the cause. “When soldiers share their personal stories about the tremendous obstacles they face and how the Wounded Warrior programs help them transition back to civilian life, manufacturers, retailers, associates and consumers embrace this cause and become passionate advocates of Believe in Heroes,” says Hill.

Grocery stores have a diverse customer base so for some rallying behind a universally appealing cause is ideal. “Even supporters who have never met a St. Jude patient feel connected to our lifesaving mission, knowing that their support ensures families never receive a bill from St. Jude for treatment, travel, housing or food—because all a family should worry about is helping their child live,” says Ford. 

MilkPEP helping hungry families thrive

Most food bank clients receive less than one gallon of milk per person, per year, leaving many without access to milk’s essential nutrients. In response to this, the nation’s milk companies and dairy farmers, in partnership with Feeding America, have come together to create The Great American Milk Drive—a national program that delivers gallons of milk to hungry families that need it most.

“To help reach millions of Americans struggling with food insecurity, we’ve designed the program to make it easy for anyone to get involved, especially retailers,” says Victor Zaborsky, director of marketing for the Milk Processor Education Program (MilkPEP) based in Washington, D.C. According to Zaborsky, with as little as $5, shoppers can make a donation that will support a local Feeding America food bank. Officials are asking retailers to integrate The Great American Milk Drive into their existing checkout programs.

Since the start of the campaign in April, the Great American Milk Drive has helped provide more than 115,000 gallons of milk nationwide. Recently, MilkPEP teamed up with Kroger for a three-week in-store partnership called Pour it Forward. More than 2,000 Kroger stores promoted The Great American Milk Drive with in-store signage and tear pads that allowed shoppers to choose a donation amount at checkout. Other campaigns are scheduled to run throughout 2015. “The grocery check-out counter is key—and the preferred touch point for donation collection,” says Zaborsky.

MilkPEP works closely with retailers to customize programs and has a number of resources to help retailers drive milk sales and bring new shoppers into the store. “Whether it’s through checkout programs or on-site donation events that encourage shoppers to purchase an extra gallon of milk, there are a number of ways retailers can get involved and impact their sales, while supporting an important cause,” he says. “By providing an opportunity for shoppers to make a direct impact in their local communities, not only will you help a good cause you will build loyalty and increase your sales.”

Nourishing lives

General Mills is perhaps one of the best-known suppliers involved in cause marketing. Its Box Tops for Education program has raised more than $600 million for schools since its inception. Following the “keep it simple” premise, consumers simply clip the Box Tops of marked products and earn cash for their schools. Over the years the program has evolved from simply Box Tops being carried on-pack to large, scale merchandising events and digital Bonus Box Tops platforms designed to drive trips and increase basket ring for retailers. Today, Box Tops are found on up 2,500 SKUs and six billion packages.

Schools spend Box Tops earnings to fund many important school needs such as music programs, computer labs and playground equipment. “Education is a very important issue for both our retail partners and shoppers and we’re proud of the work we’ve done to enable shopper participation in raising money for schools,” says Brian Kittelson, director of shopper marketing, for Minneapolis-based, General Mills.

General Mills has also been involved in the fight against hunger through its 30-year partnership with Feeding America and donates tens of millions of dollars worth of food each year to food banks across America. Looking to more directly engage shoppers to help fight hunger, General Mills and Feeding America have added a new partner, the Big Machine Label Group, a collective of country music artists. Together they created Outnumber Hunger, which to date has helped secure more than 35 million meals for local communities.