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Marketing  for    Triple  Bottom  Line  

Results    June  2010    

"It's always good business to do the right thing." Yvon Chouinard, environmental activist, founder of Patagonia and 1% for the Planet

GOOD  Marketing  is  not  about  Going  GREEN  or  

donating  to  charity  

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It’s  about  reaching    your  audience  and  achieving  results.  .  .    

 that  are  sustainable  for  all    

Triple  Bottom  Line  

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What  are  we  Talking  About  Today?  

1  Defining  Marketing,  Sustainability,  CSR,  cause  and  social  marketing  

2  Principles  of  GOOD  marketing  to  reach  Triple  Bottom  Line  results  

3  Success  stories  and  innovations  in  true  social  business  and  causes  

A  STRONG  BRAND  IS  BASED  ON  EMOTIONAL  AND  SELF  EXPRESSIVE  BENEFITS  AS  WELL  AS  PRODUCT  ATTRIBUTES  AND  TANGIBLE  FUNCTIONAL  BENEFITS.    IT’S  NOT  ABOUT  HAVING  YOUR  NAME  ON  THE  PRODUCT  –    IT’S  ABOUT  HAVING  THE  PRODUCT  MEAN  SOMETHING    BECAUSE  YOUR  NAME  IS  ON  IT.  

-­‐DAVID  AAKERS,  BUILDING  STRONG  BRANDS  

MARKETING  IS  NOT  A  DEPARTMENT,  IT’S  YOUR  BUSINESS  

-­‐HARRY  BECKWITH,  SELLING  THE  INVISIBLE    

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Marketing  Is  

               Everything  we  do  to  reach  and  communicate  to  potential  audiences  your  brand  and  “product”  

  Creates  opportunities  to  sell  –  at  every  customer  touch  point  1.  Branding/strategy  2.  Messages  and  visuals  3.  Merchandising  –  retail  shops  and  displays  4.  Advertising,  media  –  radio,  TV,  billboard  5.  Public  Relations  6.  Promotions  7.  Social  Media–  facebook,  linked  in,  YouTube  8.  Video  and  film  9.  Sales  Tools,  uniforms    10.  Events,  Trade  shows

Definitions  

1.   CSR  –  the  initiatives  that  a  company  has  decided  are  part  of  their  Social  Responsibility  

•  Could  include  giving,  sustainability,  internal  and  external  

2.   Corporate  Philanthropy  –giving  (without  expectation  of  direct  gain)  of  money  and  in-­‐kind  grants  by  companies  or  their  foundations.    Tax  deductible.  [USA]  

3.   Social  Marketing  –    the  use  by  nonprofit  and  public  organizations  to  impact  societal  behavior.  Awareness,  education,  advocacy  

4.   Sponsorship  –  usually  event-­‐oriented  –  often  one-­‐time  support  

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Cause  Marketing  

  Public  association  of  a  for-­‐profit  company  with  a  nonprofit  organization,  intended  to  promote  the  company's  product  or  service  and  to  raise  money  for  the  nonprofit  

  Companies  team  up  with  charities  with  the  aim  of  bringing  in  more  money  and  impacts  for  both  

           "As  a  business,  we  have  a  responsibility  to  society.    Let  me  be  clear  about  this  point.  There  is  no  conflict  between  delivering  value  to  shareholders  and  helping  solve  bigger  societal  problems.”    H  Lee  Scott  Jr,  Wal-­‐Mart  Chairman      (National  Retail  Federation,  1-­‐12-­‐09)  

A  Brand  is…  

           Aspect  of  a  company,  product,  or  service  that  leaves  an  impression  in  our  minds    Functional  (tangible  product/service)      Emotional  (experience,  intangible)  that  occupies    

“space”  in  the  mind    Leaves  a  memorable  impression   Defines  a  competitive  edge  

An  effective  brand  that  is  marketed  well:    Puts  a  “stake  in  the  ground”  for  what  you  do  and  offer   Gains  credibility,  creates  word  of  mouth  &  buzz  

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Instant  Impression  

• GOOD  marketing  is  80%  strategy  20%  tactics    

• How  would  you  rate  your  marketing  from  1  to  10  =  best?    

• Are  you  attracting  the  target  audience  you  want?  

• Is  your  message  clear  and  powerful?    

• Or  is  it  confusing  and  out  of  date?  

What’s  your  Purpose  for  Marketing?  

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Customer  Touchpoint  

  Every  point  that  your  product  or  service  touches  a  customer  or  a  prospect.  It  often  takes  5-­‐7  times  to  touch  a  customer  before  a  sale  

•  Signage,  buildings,  trucks  

•   Business  cards  

•   Advertising/Promotions  

•   Direct  mail  

•   Articles,  press    

•   Web  sites,  brochures  

•   Staff,  employees,  volunteers  

•  Community  relations,  events,  performances  

Principles  of  GOOD  marketing  

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Setting  Goals  and  Benchmarks    Set  goals  that  will  achieve  your  vision  

•  Measureable:    measures  to  determine  success?  1.  Increase  Awareness    _________  

2.  Generate  sales    

3.  XXX  leads  •  Intangibles  –  awareness,  Improve  image,  credibility    Start  with  the  Benchmarks  –  Where  are  you  now?  

You cannot see anything that you do not first contemplate as a reality.--Ramtha!

KickStart–  to  End  Poverty    

  Social  Entrepreneur/Enterprise  –to  help  end  poverty    Selling  Irrigation  pumps  was  most  effective  way  to  help  small  scale  

poor  farmers  increase  their  income  •  Monitor  impact  of  farmer,  families,  poverty,  health  improvements  

•  95,000  businesses  started  

•  460,000  people  lifted  out  of  poverty  

  Marketing  Assessment  -­‐  2006  •  Sales  were  slow  and  falling  which  reduced  impact  on  poverty  

•  Branding  was  different  in  four  countries  –  no  consistency  

•  Ineffective  merchandising  and  low  awareness  

•  Donor  communications  were  unprofessional  

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Examine  what  the  Product/Service  Offers  

  People#•  Easy Irrigation #•  Lifts people from poverty#•  Improve your life#

  Planet#•  Creates sustainable

businesses#•  No fuel used#

  Profit#•  Way for the poor to make income – economic

improvement#•  Goal to be sustainable by selling product#

Know your Competition#

 What  brands  have  an  image  or  recognition  that  you  would  like  emulate?  

•  Direct  Competitors  (players  who  do  what  you  do)    

•   IDE,  BRAC,  Technoserve  

•  Determine  Non-­‐Direct  Competitors  (i.e.  who  competes  for  the  same  dollars,  time)  

•  Anything  farmers  spend  money  on  for  farming  or  life  •  School  fees,  medical  

•  What  are  they  doing  right?  Also  ask  what  they  might  be  doing  wrong?    

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Learn,  Don’t  Follow  

  SWOT:  Analyze  what  they  offer,  strengths  and  weaknesses  

•  When  they  zig,  you  zag  

•  What  are  the  opportunities  or  “gaps”  based  on  your  research?  

•  Consistency?  Clarity?    

•  Go  where  they  aren’t  

•  Can  you  market    better/clearer,  cleaner,  better  benefit?  

Target  Market  

  Who  is  your  ideal  target  audience    •  The  ones  who  will  influence  others  to  buy  or  believe  

•  A  compilation  of  the  qualities  and  demographics  

  Find  out  their  insights  about  this  group  •  Primary  research,  sales,  reports,  history  

•  What  do  they  care  about  -­‐environment,  planet,  “green”  

  Examine  trends  in  other  markets,  areas,  look  at  case  studies    

  Consider  doing  research  -­‐-­‐  learn  about  needs,  pain  points

No,  “everyone”  is  not  your  audience.  

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Create  The  Customer  Profile  •  Demographics  –  facts  –  age,  gender,  income,  job,  car,  family,  

geography,  house,  economic  class,  expendable  income  

•  Psychographics  –  personality,  motivations,  habits,  health,  stressors,  emotional  factors,  what  do  they  care  about?  

•  Where  do  they  shop,  how  do  they  shop?  

•  What  do  they  read,  watch,  and  who  do  they  listen  to?  

•  What  keeps  them  up  at  night?  What  do  they  talk  about  with  friends?  

•  What  organizations,  clubs,  social  events,  church,  sports  and  activities  do  they  frequent?  

Ideal  Customer  –  Two  Groups  

Farmer Joseph and family " Jeff and Hillary Foundation"

End User Donor

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Identify  What  your  Target  Values  

  Three  factors  that  matter  most  to  your  target  audience  –  price,  family,  time,  service  etc.    

  End  user:  1.  I  want  to  improve  my  income  to  provide  for  my  family    

2.  A  job  and  a  way  to  make  money  is  important  to  me  to  gain  respect  

3.  I’d  like  to  improve  our  life  –  school,  health,  house,  happiness  

  Donor  1.  We  want  to  give  back  to  helping  create  opportunity  

2.  Our  investments  are  in  sustainable  organizations  

3.  It’s  most  critical  to  see  real  impacts  that  are  scalable  

Research  and  Trends  Matter    

•  Look  at  real  market  data  and  assess  where  the  trends  are  going  and  what  it  means  for  your  product  or  service.    

•  75%  of  Household  purchases  (US)  are  made  by  women  •  Emerging  economies  are  unleashing  a  wave  of  low-­‐cost,  disruptive  innovations  that  will,  as  they  spread  to  the  rich  world,  shake  many  industries  to  their  foundations  [Economist  April  2010]  

•  “Frugal”  innovation  products  are  on  the  rapid  rise,  in  emerging  markets  [economist  April  2010]  •  $2,200  car/$300  computer/$70  fridge/$30  phone  

•  Kenya  leads  the  world  in  money  transfer  by  phone  •  69%  of  women  (US)  look  to  companies  to  help  them    DO  GOOD  in  difficult  times.    [Self  Magazine  2009]  

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The  Value  Proposition  

“To  broaden  your  appeal,  narrow  your  position.”  -­‐Harry  Beckwith  

  Value  Proposition  is  the  intersection  of  what  you  do  with  what  customers  value  most.  It’s  what  differentiates  you,  what  you  uniquely  deliver  

•  Re-­‐evaluate  your  unique  offerings  and  products    

•  What  resonates  and  has  high  value  to  the  group  you  want  to  reach?  

•  What  do  you  offer  that  meets  what  your  ideal  customers  value?    

WHAT  DO  YOU  OFFER…  

CURRENT  MARKET  TRENDS..  

WHAT  DOES  THE  

CUSTOMER  VALUE…  

VALUE PROPOSITION"

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Value  Proposition  

  Who___________________(define who the offering is targeted to)#

  What ______________________________(what the offering is)#

  ______________________(what the offering includes or provides)#

  Enables _____________________(value the offering provides)!

Proof Points#

  At  least  three  proof  points  to  support  value  proposition    •  Based  on  facts,  true  offerings,  examples    

•  Saying  you  are  good  or  the  best  is  not  proof  

1.  Over  460,000  lifted  from  poverty  

2.  Irrigation  is  easier  –  1  acre  –  4  hours  vs.  bucket  

3.  Farmers  grow  cash  crops  to  sell  which  increases  income  1000%  

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Key  Messages  

•  The  most  important  points  that  tell  your  audience  the  value  and  benefits  your  brand  offers  so  they  identify  with  

•  Foundation  for  copy  and  content  

•  Include  facts,  statistics,  benefits  that  your  audience  wants  to  hear    

•  Keep  it  simple  –  less  =  more  

•  KickStart  International  key  message:  “The  poor  person’s  greatest  need  is    a  way  to  make  money.”  

Stories constitute the single most powerful weapon in the leaderʼs literary arsenal. #-Howard Gardner, Harvard Professor and author of Leading Minds #

Marketing  Strategies  

           Over-­‐arching  big  actions  that  address  opportunities  -­‐-­‐    what  your  company/service  does  best,  what  customers  need,  and  the  competitive  advantage  

•   Initiatives  that  put  you  in  the  right  place  to  make  sales  

•  Attract  customers,  create  leads,  drive  demonstrations  

•  Reason  to  come  in,  call,  come  back  or  try  

AWARENESS  INTEREST  DEMAND    ACTION    

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Marketing  Strategies/Disciplines  

  PR  =    Works  with  the  press  for  newsworthy  stories  and  coverage  of  your  company  or  product.  Not  paid  for.  PR  offers  third  party  credibility.  Cost  effective  and  can  bring  impact          

  Advertising  =  Paid  media.  Any  print,  radio,  TV  or  interactive  ads  that  are  paid  for  and  sponsored  by  the  payer  

  Interactive  =    Advertising  or  a  web  site  that  promotes  your  business  online.  Be  found  on  search  engines,  sites  with  travel,  tourism  related  web  sites,  blogs    

  Social  Media  –  peer  to  peer  communication  –  effective  to  gain  approval  

Social  Media  Revolution   Social  media  is  the  ability  for  people  to  use  online  technologies  to  share  their  opinions,  experiences,  knowledge  and  perspectives  with  each  other.  We  make  purchasing  decisions  and  interact  with  brands  

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Assess  the  Best  Strategies  

•  Promotions  –  limited  time,  offer  based  

•  Events/Festivals,  community  events  

•  Grass  roots  –places  your  customer  goes  –  shops,  social  events  and  create  ways  to  connect  

•  Partnerships  –  sell  through  other  channels,  partners  

•  Sponsorship  –  sponsor  an  event  –  or  charity  -­‐    where  your  ideal  customer  will  be  

Measure  Results  and  Impacts  Did  you  meet  your  Targets?  

   KickStart’s  Farming  is  my  Business  marketing  campaign  and  Imarisha  Maisha  promotion  generated  over  600%  sales  increases  in  Kenya,  sold  over  1500  pumps  in  one  month,  highest  ever  

  People  out  of  poverty  impacts  accelerated  from  200,000  in  2005  to  440,000  in  2009  

  Farmers  see  themselves  as  successful  business  people  who  make  money  and  care  for  their  families  

  Global  branding  is  in  place  

  Donor  communications  have  consistency  and  tell  the  story  

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Success  Stories  and  Innovations  

Burger  Eat  Less  Meat?  

  Max  Burger  Restaurant  chain  in  Sweden  claims  to  be  the  first  restaurant  chain  in  the  world  to  publish  CO2  emissions  on  its  menu  

  No  GMOs  or  trans  fat  either    

  Environmental  practices  and  awareness  for  customers  who  want  it      A  recent  survey  in  Sweden  found  that  92%  of  people  wanted  more  

information  about  the  "green  credentials"  of  the  food  they  were  buying.  

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Unilever  and  Allanblackia  

  Farmers  in  Ghana,  Tanzania  and  Nigeria  have  begun  harvesting  a  traditional  seed  which  provides  oil  that  is  used  for  Unilever  spreads  and  cooking  products  

  Sustainable  and  profitable  crop  generating  over  $150k/yr  

   Teach  farmers  to  harvest  allanblackia  to  meet  standards  

  Unilever  buys  the  oil  after  it’s  crushed  and  processed  

"For  Truly  Clean  Hands,  Always  Wash  with  Soap”  

  Public-­‐Private  Partnership  promoting  hand  washing  with  soap  to  prevent  diarrheal  diseases       Unilever  and  NGOs  

  Reached  over  130M  people  

  Objective:  reduce  morbidity  and  mortality  among  children  under  5  yrs      create  awareness  of  the  benefits    

  Increase  practice  of  hand  washing  with  soap  at  critical  times  among  mothers  and  caregivers  of  children  

  Unilever  –  sell  soap!  

  Campaign  included:  mass  media,  direct  consumer,      schools,  health  centers,  public  relations  

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Envirofit:  Cookin  Against  Air  Pollution

 Mission  -­‐  Create  products  that  reduce  pollution  and  energy  dependency,  yielding  health,  environmental  and  economic  improvements  

  Enterprise-­‐approach  to  solving  health,  environmental  and  economic  problems  in  developing  countries    

  Projects  are  independently  grant  funded  but  focus  on  gaining  independent  sustainability  within  2  –  5  years  

  Sustainable,  scalable  and  profitable  business  model  

THE  IMPACT  

Tackling  Global  Indoor  Air  Pollution  

  Indoor  Air  Pollution  kills  ~1.5  million  people  every  year  worldwide  

  More  than  3  billion  people  worldwide  cook  in  their  homes  using  traditional  fires  and  stoves,  burning  biomass  fuels    (wood,  dung,  crop  waste)  &  coal  

 2  million  tons  of  biomass  burned  daily  •  Causes  severe  deforestation  

•  Inefficient  burning  emits  toxic  chemicals    &  potent  greenhouse  gasses  like  methane  into  the  atmosphere  

•  Costs  up  to  40%  of  the  household’s  income  

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ENVIROFIT  Cookstoves  •  Up  to  60%  Fuel  Savings    •  Up  to  80%  Emissions  Reduction  •  Up  to  50%  Time  Savings  •  Durable  and  Long  Lasting:    

Five  Year  Warranty  

•  Light  weight:  6.2  kg  •  India:  wood    •  Africa:  charcoal  

Four  billion  people  live  in  Asian  metropolitan  regions  with  air  so  polluted  that  it  is  “toxic”,  according  to  the  World  Health  Organization.      

As  much  as  40%    of  the  pollution  is  caused  by  the  two-­‐stroke  engines  used  in  “tuk-­‐tuks”,  and  sidecar-­‐equipped  motorcycles.    

CleanEngines      

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1  dirty  carbureted  two-­‐stroke  engine  produces  the  pollution  equivalent  of  50  modern  automobiles  

=

A  Social  Business  

  Planet:  Direct  Injection  LPG  that  costs  $325  vs.  to  convert    •  Cuts  emissions  50%    

•  Reduces  fuel  consumption  40%  and  uses  LPG  fuel  30%  cheaper  than  gasoline  

  People:  “working  poor”  –  taxi  drivers    Over  60%  total  reduction  in  operating  costs  

  Driver  savings  of    $800  -­‐  $1000/year  

  Profit    The  conversions  are  cost  effective  and  can  be  microfinanced  

  Market  potential  in  Asia  =  1,000,000  two  strokes  

  Scalable  business  model  

6/25/10  

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What  is  Sustainable  Marketing?  

  Sustainable,  Scalable  and  Profitable  business  model  

  Start  with  tangible,  practical  and  realistic  business  case  

  It  must  answer  the  “so  what”  question  that  each  audience  is  asking:    People    Planet      Profit    

  What  is  your  value  proposition  to  your  ideal  audience(s)?  

  Define  the  best  and  most  cost  effective  strategies,  then  a  targeted  marketing  plan    

  Implement,  measure  and  evaluate  

Social  impact  must  prove    it’s  value  to  the  business.  

Let  us  help  you  get  the  word  out