With many people starting their daily work grind with a cup of
java from Starbucks, it's not a stretch to say that perhaps
millions more of Americans now know a lot more about how coffee is
produced than they did 10 years ago.
As Starbucks has increased in popularity, the company has
executed several cause marketing programs that demonstrate its
commitment to socially responsible causes.
"Consumers are much more aware of socially environmental issues
and think that companies should be aligning themselves with basic
social needs," says Kevin Martinez, senior manager for community
affairs, Starbucks Coffee Co.
For the last five years, Starbucks has been affiliated with
Conservation International, which creates economic programs to help
preserve the rainforest. Starbucks has worked with CI to provide
coffee farmers in Mexico with credit and technical assistance to
help ensure the quality of their coffee. Since 1998 Starbucks has
committed $2.25 million to CI in CI's efforts in coffee-growing
regions. A fundraiser last year hosted by Starbucks CEO Orin Smith
garnered an additional $1.8 million to help CI in its ongoing
environmental efforts.
Starbucks' efforts reflect the changing nature of cause
marketing. Rather than a promotional blip, which may (or may not)
garner media attention, corporations worth their salt are
increasingly threading their CRM strategies into both the PR and
marketing functions from the get-go.
"There is a realization among corporations that in an
increasingly competitive environment appealing to consumers based
on cause-affiliations is a very effective way of marketing," says
David Hessekiel, founder of New York-based Cause Marketing Forum,
which provides businesses and non-profits with cause-related
marketing strategies. According to IEG Inc., corporate sponsorships
increased to $922 million in 2003 from $125 million in 1990. The
figure is expected to hit $1 billion in 2004.
Hessekiel, who will host the Cause Marketing Conference June 16
in New York City, ( http://www.causemarketingforum.com
) says companies could get burned if they sing the praises of cause
marketing without divulging how much it is devoting to charity.
It's equally important to have the CEO on board and make sure there
is a "logical link" between the brand and the sponsored program(s),
Hessekiel.
Snapple Beverage Group, for example, devotes a certain
percentage of sales of its SNAP 2.0 bottled water to Kaboom!, which
builds playgrounds and skate parks in poor communities. Last
September, 150 Snapple employees - as well as 40 U.S. soldiers
returning from Iraq - redesigned Mullally Park, in the shadows of
Yankee Stadium in Bronx, N.Y., to promote physical activity.
There's some subtle Snapple signage in the park.
Steven Jarmon, VP of partner marketing and community ventures
for Snapple, says young people from the neighborhood "had a
tremendous hand" in reconfiguring the park, which is another key to
effective CRM programs: making people in the community feel they
have a stake in the program. Snapple's effort got widespread
coverage in the New York Daily News and cable news channel NY1
News, among other media outlets.
"If we show that we're a good corporate citizen, do things in a
responsible way and communicate it tastefully - and don't look to
pat ourselves on the back - then someone who is holding Product A
against Product B in their hand may say, 'These guys are more
socially responsible,'" says Jarmon, amplifying Hesssekiel's
comments. "We want the plan to be a commercial success but realize
that we have to build and nurture these programs over time."
Contacts: David Hessekiel, 914.921.3914, [email protected]
; Steve Jarmon, 914.397.9331, [email protected] ; Kevin
Martinez, 206.318.4817, [email protected]