Cause-Related Marketing: Elevating Business through Social Impact

The main purpose of the cause-related marketing campaign is to help or raise the profile of a charity campaign or a hot social issue. It is seldom possible to plan a campaign with the vision of immediate profit. So, let's start with the rather cynical question of why a company should invest in a charity campaign when there are more direct and effective ways to gain new customers.

Gone are the days when customers made decisions mainly on the basis of price. There are far more factors on an imaginary weighing pan that can outweigh a customer's purchasing decision. And it is the brand image supporting a good cause that is one of them. Customers like to identify with the brands whose products they use. Often, charity in an area close to the customer makes them switch to another brand. So, what is the magic of cause-related marketing?

Benefits of Cause-related Marketing

Enhanced Brand Visibility

Campaigns linked to social causes often gain extensive media coverage and generate heightened social media engagement compared to traditional marketing efforts. This increased visibility can dramatically raise a brand's profile and establish its reputation as a socially responsible leader.

Competitive Differentiation

In crowded markets, companies that engage in cause-related marketing differentiate themselves by aligning their operations with social values, thereby attracting consumers who prioritize ethical considerations in their purchasing decisions.

Strengthened Customer Loyalty

Consumers are likely to continue supporting brands that contribute to causes they care about, translating into repeat business and a robust, supportive customer community.

Improved Employee Satisfaction and Recruitment

Companies known for their commitment to social causes are more attractive to potential employees looking for workplaces with a purpose. This can lead to higher job satisfaction, better employee retention, and a motivated workforce.

Expansion of Customer Base

By associating with various causes, companies can tap into new demographic segments. For example, a campaign focused on environmental sustainability can attract eco-conscious consumers who might not have been customers before.

Direct Social Impact

Unlike conventional marketing, cause-related marketing has the advantage of directly benefiting social issues, thereby providing meaningful contributions to community welfare.

Fostering Innovation

Collaborating with non-profits can lead to innovative solutions that benefit both business and society. This partnership can inspire new products or services that address significant social issues.

Financial Benefits

There are substantial financial benefits to cause-related marketing, including tax deductions, grants, and an enhanced corporate valuation.

How to Come Up with a Credible Campaign

Cause-related marketing is not a charity and you probably don't want "just" to dedicate your own time or money. This means raising the profile of the campaign. And in such a way that helps you make the best possible impression. How to achieve this?

Choose a Project That Is Relevant to Your Brand

How customers accept it is absolutely crucial to the success of the campaign. Focus on the area that is closest to them. And most importantly, avoid thorny topics to which they could react negatively. Not everyone has the same opinion on environmental protection, homelessness, minorities, immigrants, and so on.

Collaborate with a Trusted Non-profit Organization

Cooperation with a non-profit organization can significantly contribute to greater credibility of the campaign. But it doesn't have to be just internationally recognized organizations like Greenpeace or UNESCO. A smaller company can just as successfully cooperate with a local organization that does not have such a reputation, but instead arouses local patriotism and solves problems that affect people in a given locality personally.

Promote Your Intention

Making your campaign visible is the next step that a campaign cannot do without. And this is where you need to sell the story of why you chose the project or charity. How and to whom your company will help. It is important not to place the company's interests above the charitable purpose of the campaign.

Successful Cause-related Marketing Campaigns

Theoretical knowledge is important, but the best source of inspiration is usually successful example of practice. So, let's look at the different types of cause-related marketing campaigns that have worked in the past.

• AVON for Healthy Breasts

Among the most successful cause-related marketing campaigns are those that actively involve the target group. One of the most successful campaigns of this type in the long run is the well-known AVON march, which associates at least the same number of people with the brand as the fight against breast cancer. This is of course an ideal win-win situation.

However, organizing such an event is, of course, demanding, costly and currently even forbidden. If you want to create a campaign in which the target group is actively involved and increases awareness of your brand, an alternative is offered in the form of a challenge on social networks. We all certainly remember the ice bucket challenge. Although it was not associated with any commercial brand, if you manage to connect the challenge with the brand appropriately, the results can significantly exceed expectations.

• Iceland and Palm Oil

To fight the wider competition, it is a far more effective strategy to be original than to follow in the same footsteps. The British supermarket chain Iceland has taken a bold and very costly step in this direction by starting to produce all of its branded products without palm oil. This certainly was appreciated by the customers who are bothered by the environmental impact of palm oil production.

In the huge competition of other chains, Iceland suddenly gained the image of organic trade, which others are trying hard to build with less clear campaigns. The commercial, which Iceland prepared in collaboration with Greenpeace and which was banned from the British television in particular as "too political", greatly contributed to this. The ban on did not hurt the campaign in any way, just on the contrary, but that is a different story. The important thing is that you should stand for your own vision and not always try to follow the competition. In future, the situation may change.

• Gillette’s “The Best Men Can Be”

Gillette's "The Best Men Can Be" campaign, launched in 2019, aimed to redefine masculinity, challenging stereotypes and promoting a new standard of male behavior. The campaign featured a video highlighting moments where men confront bullying and harassment, advocating for intervention and positive role modeling. It sparked extensive public discussion, with mixed reactions highlighting both support for its progressive message and criticism for perceived generalizations about male behavior.

"The Best Men Can Be" campaign is an example of how brands can use their platform to address societal issues and promote positive change, while also aligning with evolving consumer expectations that companies should contribute to social good.

• LEGO’s Focus on Sustainable Materials

LEGO's initiative to transition to sustainable materials by 2030 highlights its proactive approach to environmental responsibility. This commitment is driven by increasing consumer demand for eco-friendly products, positioning LEGO as a leader in sustainability within the toy industry. By investing in sustainable materials, LEGO not only aligns with global environmental goals but also strengthens its market presence by appealing to environmentally conscious consumers. This strategy underscores the company's dedication to reducing its ecological footprint and enhancing product sustainability.

In Conclusion

Cause-related marketing represents a strategic approach that benefits both the company and society. It strengthens the brand, fosters loyalty, and contributes to social good. As market dynamics continue to evolve, integrating thoughtful cause-related strategies will be increasingly important for businesses looking to make a lasting impact.