Corporate responsibility. Philanthropy. These are often used to describe
cause-related marketing, an activity in which businesses join with charities or
causes to market an image, product, or service for mutual benefit.
a cause makes good business sense. Nothing builds brand loyalty among today's
increasingly hard-to-please consumers like a company's proven commitment to a
worthy cause. Other things being equal, many consumers would rather do business
with a company that stands for something beyond profits.
today‗s marketing world, the companies have to be caring and they should look
after the welfare of their customers and society‖
1.Cause marketing or cause-related marketing
Related Marketing is defined as ―(A) strategic positioning and marketing tool
that links a company or a brand to a relevant social cause or issue, for mutual
commercial activity by which business and charities or causes form a partnership
with each other to market an image, product or service for mutual benefit‖.
2.Concept of Cause Related
related marketing can be understood as a strategic positioning and marketing
tool which links a company or a brand to a relevant social cause or issue for
mutual benefit. It is the initiation and funding of deserving causes. Cause
related marketing is a strategic marketing activity a way for a company to do
well by doing good-distinct from sales promotion, corporate philanthropy, corporate
sponsorship, corporate Samaritan acts and public relations, though it is often
an amalgam of such activities. Nothing builds brand loyalty among today‗s
increasingly hard to please consumers like a company‗s proven commitment to a
worthy cause. Other things being equal many consumers would do business with a
company that stands for something beyond profits. In nutshell, cause related
marketing results in increased sales, visibility, and consumer loyalty and
enhanced company image along with positive media coverage.
related marketing and its impact on organizational selling and brand loyalty.
1. The HLL
announced a contribution of fifty paisa to a diarrhea project on sale of each
of its LIFEBUOY brand soap. It helped to improve market share for ‗lifebuoy‗
Hotels had specially designed and printed envelopes placed in all Oberoi
properties where in the guest could contribute to CRY, a non government
organization and collected more than Rs. 6.50 lakhs in 18 months. CRY is a NGO
whose role is that of an enabler a catalyst between two groups of people (a)
development organization and individuals working at grass root level with
marginalized children, their families and communities and people from all walks
of life who believe in the rights of children.
3. In India
‗whisper‗ a brand in the sanitary nappies market where the materialistic
difference is minimal announced a contribution of Re 1 on every pack of its
sales for blind relief society. It helped to improve market share for ‗Whisper‗
INDIA LTD. a pharmaceutical company in a cause related marketing scheme donated
2% or value of sales of OVALTLINE PLUS towards CRY‗S (a NGO‗s) Gujarat
rehabilitation operations. Total amount raised was approximate Rs. 40, 000
The HLL announced a Rs. 5/- contribution to SOS
children‗s village, a social service organization working for educating every
little heart by inserting coupons in its Brook bond Taj Mahal tea powder packs.
The customer has to tell the coupon number to the company through a toll free
Express first coined the phrase ―Cause Related Marketing‖ in the 1980s while raising money
for the restoration of the Statue of Liberty in New York City. The CRM trend
rapidly caught on with corporate in India during the 1990s. CRM became the
vehicle by which companies indirectly propagandized their brands and it has
provided companies with a new tool to compete in the market. The Principle goal
of a Cause Related Marketing program has been to impact a company‗s bottom line
through increased Sales. Some of its potential benefits include: Attracting and
Retaining Customers, Market Differentiation, out reach to Niche Markets.
increasing involvement of corporates in philanthropic or socially related causes
has led to the growth of Cause Related Marketing (CRM) across the world.
Although a phenomenon that had its roots in the western countries, CRM has
gained rapid acceptance in India in recent Years. A case inexample for this is Aravind Eye Care, TATA Salt.
Principle goal of a Cause Related Marketing program has been to impact a
company‗s bottom line through increased Sales. Yet research has shown that, for
companies committed to corporate social responsibility, CRM programs can offer
other, often unanticipated, benefits to a company as well. Long –term impacts
such as increased profitability or cost savings are often attributed to the
observed changes resulting from effective CRM partnerships. The value realized
by Cause Marketing programs will differ among companies and Industries.
make cause related marketing?
cause your member can support
corporate partner for funding
publicity and attention
funds / volunteers to a worthy cause
4.Some of the potential benefits
Attracting and Retaining Customers
Out reach to Niche Markets
Powerful Marketing Edge
marketing can become a cornerstone of your marketing plan. Your cause-related
marketing activities should highlight your company's reputation within your
target market. Cause- related marketing can positively differentiate your
company from your competitors and provide an edge that delivers other tangible
customer loyalty Enhanced company image Positive media coverage
choosing a cause you are passionate about, cause-related marketing is
emotionally fulfilling. It's a way to merge your profit center with your
"passion center" and build a business that mirrors your personal
values, beliefs and integrity. If your cause also resonates with your target
market, your activities will generate tremendous goodwill and media attention
can be its side effect.
5.Types of Cause marketing
marketing can take on many forms, including:
service, or transaction specific Promotion of a common message
licensing, endorsements, and certifications Local partnerships
Real-World Cause-Related Marketing
marketing yields mutual benefit. Look for partners with a similar agenda whose
goals can be better achieved by partnering with your business. Take inventory
of the assets that make you an appealing partner in a cause-related venture.
many types of mutually beneficial relationships you can form with your
cause-related partner, including special events, sales promotions and
collection plans. An easy way to embrace a cause is to team up with a charity.
6.TATA SALT CRM Initiatives TATA
– A Profile
in 1939, Tata Chemicals Limited is one of India‗s leading manufacturers of
inorganic chemicals and fertilizers. Part of the US$ 11- billion Tata Group,
the company owns and operated the largest and most integrated inorganic
chemicals complex in the country at Mithapur, Gujarat. Its fertilizer complex
in Babrala, Uttar Pradesh is known for world – class energy- efficiency
standards, and has won several awards in the fields of environmental
conservation, community development and safety. Tata Chemicals is today
acknowledged as the leader in the chemicals
fertilizer industries. The company has a turnover of over Rs 1,700 crore and
employs about 3,000 people.
CRY - A Profile
CRY is a
registered Indian trust working towards building a people‗s movement to restore
to India‗s underprivileged children their most basic rights. CRY harnesses the
money, time and skills of thousands of individuals and organizations to partner
163 child- development initiatives across India. CRY is governed by values of
respect for human dignity, transparency, accountability, secularism,
non-violence and the spirit of innovation Tata Salt, the pioneers and
undisputed leaders in the packaged and iodized Salt Category, reiterated its
commitment to the cause of educating underprivileged children and announced its
Desh Ko Arpan Programme. The Desh Ko Arpan Programme, Tata Chemicals Limited
Contributes 10 paise for every kilo of Tata Salt, sold during specific periods,
to the education of underprivileged children. Child Relief and You (CRY) has
been chosen as partners. The money raised was Rs 33 lakhs in a period of one
raised will support six child – development initiatives across the country,
Shakti Vikas Sansthan, Barmer, Rajasthan Jabala, Kolkata, West Bengal
Shepherd Society, Chennai, Tamil Nadu Gramya, Nalgonda, Andhra Pradesh
community Services Guild, Namakkal, Tamilnadu Rachana Society for Social
Reconstruction, Pune Maharashtra.