Linking a brand to a good cause creates winners all round according to advocates of the strategy. But Helen Gregory asks if it really is that simple You've got the glossy promotional leaflets, a slick poster campaign and tried offering two for the price of one. Now you're stuck for ideas on how to increase sales. How about getting a conscience? As companies look to improve their image and credibility, a new brand strategy is often top of their agenda. And with the demise of the flag seller, many people are receptive to new ways of giving to charity. Letting shoppers buy and donate at the same time looks like a marriage made in corporate heaven. Many consumers are wise to marketing ploys but they are proving receptive to firms playing the charity card. As a result, many manufacturers are trying out cause related marketing initiatives ­ giving cash to charity from product sales ­ and others are developing Fairtrade products ­ giving cash to producers in developing countries. The Fairtrade group claims British shoppers are spending more than £30m a year on Fairtrade products ­ an increase of 50% on last year and the real success story so far is Café Direct which will turn over between £8m and £9m this year and is available in 3,000 stores. The annual Fairtrade Fortnight, which starts next week, is a way for retailers to press the point home and, according to the group, the Co-op, Sainsbury and Waitrose will be doing the most to support the fortnight with the biggest range of products. The Co-op also claims to be the first supermarket to promote the Fairtrade Mark through TV commercials. Cause-related marketing is more about building brands and there is no doubt that companies such as Tesco, celebrating its 10th anniversary of Computers for Schools, and Walkers, with Free Books for Schools, have not only raised their profile, but really helped thousands of people. So is it just a ruse to raise their profile? And what are the companies' motives? It's usually not anonymous philanthropy, as cause-related marketing exponent Business in the Community asserts: "If no-one knows you did it, you might as well not have done it." Manor Bakeries used its cherry Bakewells to link up with Comic Relief and rebadge them Mr Kipling Red Nose cakes two years ago. It offered to give 5p from every pack to the charity and sales jumped by 25%. It will do the same this year, in what marketing controller Karen Ursell calls a "great win-win situation". "This year it's even more relevant for us because we're re-launching the brand as it needs to become more contemporary and fun ­ this fits it well." She concedes that cause-related marketing has the potential for a customer backlash because some shoppers might feel a company's only reason is to increase sales. Surely this is Manor Bakeries' policy too? "I won't deny that we get increased sales, but the charity wins too and we don't force people to buy the product," she says. "I can't see a downside ­ even our staff get a morale boost." Business in the Community is convinced that cause-related programmes "undoubtedly make a long-term deposit in the bank of affinity and goodwill for brands and companies." Its study of 2,000 consumers showed that 81% would be more likely to buy a product that is linked with a cause they care about, and 85% of those questioned said they would have a more positive image of a company they see doing something to make the world a better place. It also found that 67% thought more companies should be involved in cause-related marketing. Proponents of cause-related marketing claim it has a plethora of virtues beyond actually helping people.It can build reputation, enhance image, demonstrate values, provide differentiation, add value, generate PR and awareness, and last, but not least, increase sales. Sue Adkins, director of cause-related marketing at Business in the Community, says that as brands become more critical, people are looking for something more from products. "Eight out of 10 consumers say that price and quality being equal, supporting a cause makes a difference to them. They want to help make the world a better place." But she says the initiatives that really do well are based on integrity, transparency and material benefits. They also have to be sincere and need to have an affinity with the cause. "The impact of cause-related marketing is amazing in terms of improved loyalty and morale. But it's a commercial responsibility, not about us exploiting a cause. Consumers want companies to take on the social issues of the day. They expect people to become socially responsible." Bill McDonald, president of Metier Marketing, agrees that it builds relationships with consumers, increases sales and improves a company's image. He says it works best when the idea is applied to the local marketplace. "It might not work in all markets because consumers want different things." In the US, companies are taking cause-related marketing a step further, linking up with particular retailers, and using the media to explain their initiative, rather than just highlighting it in store. TV ads there link Cheerios snacks with Shoprite, telling consumers how the brand is giving money to charity through the chain. As a result of the campaign, sales have gone up by 8%. Meanwhile, Kroger supermarkets have shown adverts telling shoppers how it was supporting the Red Cross in Washington state. Sales had been flat for 11 months but after the campaign, they rose by 7%. Waitrose buying director Steven Esom says that its experience with organic food has shown the chain that customers are keen to buy products with different production values to standard fare. It is heavily supporting Fairtrade Fortnight and increasing the number of Fairtrade products it stocks generally. "Food retailing is about offering choice and our sales show that customers want to buy Fairtrade products." But he says Waitrose has no influence over products sold with cause-related marketing initiatives stocked on the shelves. "Our job is to ensure our customers have choice and that the products represent good value for money. Whether the cause is effective depends on whether it resonates with them." The Fairtrade organisation is keen to differentiate itself from cause-related marketing, according to commercial manager Ian Bretman, who says buying the products is a lifestyle choice rather than charity. Bretman believes that goodwill is a finite resource and that advertising pitched at a charitable activity will only be valuable for a limited period. He says the Fairtrade companies' motives are more genuine. "Research has found that consumers are more interested in fairtrade than cause-related marketing," he says. "Fairtrade is better because it's about the whole supply chain. Savvy consumers can see that's different to cause-related marketing where companies give 10p to a cause to distract from what they're really like. If a company has a poor reputation, a simple way of making you feel better about it is to give to charity. But people aren't stupid ­ they can see it for what it is. Fairtrade is about the whole approach to business." Many big manufacturers are now approaching Fairtrade trying to get their products verified, even if they only have one ethical ingredient in a long list of others. "We can't just approve something if it's 3% chocolate chip ice cream," Bretman says "but other products such as chocolate cakes are more acceptable." Fairtrade is now testing consumer waters in areas like this and looking at products such as dried fruit and wine with a view to certifying them. Traidcraft is the UK's largest independent fair trade organisation, and has just launched Geobar, a new Fairtrade snack made with ingredients from around the world. It now has listings in the major multiples, including Waitrose, Tesco and Sainsbury and already sells half a million bars a month, which Traidcraft's international director Andy Redfern hopes will double during Fairtrade Fortnight. It has also teamed up with the Co-op to produce a co-branded own label Chilean wine and plans to link up with a major manufacturer which will be producing a mainstream product this spring ­ a move Redfern says will probably see them criticised by more hardline organisations, although he defends it as a pragmatic approach. "There's a greater awareness of fair trade issues in the multiples with buying structures changing to include people responsible for ethical sourcing. Fairtrade has also moved towards the direction of the buyers and the products are becoming more mainstream." Redfern believes Fairtrade products could be as popular as organics, but whereas organics started off as an ethical choice for consumers, they have become a "me" product about health issues, whereas Fairtrade is just about helping others. "We will see Fairtrade coming more into the mainstream but it won't have an easy passage." Mainstream manufacturer Gerber Foods has just launched Fruit Passion, the first Fairtrade longlife fruit juice on the market and its first foray into the ethical arena. The product will sell for more than £1 a pack - about 20p more than normal ­ with a set price going to the producers. Marketing director Rob Spencer says: "It's not charity, it's aid and there's a distinct difference between the two. We didn't want to get involved in cause-related marketing, but I don't think one scheme is any better than another. "We think this way, we can see the positive benefits for the producers and for us as a company. We are offering the consumer extra choice ­ it isn't some kind of cynical ploy on our behalf ­ we hope they can appreciate what we're doing." Gerber is not using its name on the new product, which is branded as Fruit Passion, which it believes means it doesn't capitalise on the name. "This way, there can be no confusion as to what the brand is," says Spencer. Environmental and ethical consultancy Article 13 believes that if companies ignore issues such as sourcing, fair trade practices and community involvement, their corporate reputation will deteriorate, consumers will switch away from their products and supply chain customers will defect to suppliers who are addressing the issues of sustainability. Spokesman Jane Fiona Cumming asserts: "Consumers continue to drive the agenda. However, there is still scope for the food industry to improve dialogue with its customers. Without better two-way communication it will be difficult for the food industry to stay one step ahead on emerging issues such as concerns such at GMOs and health scares." Cumming says other industries watch the food industry as a barometer of consumer attitudes. Its ethos is that companies need to take account of all their stakeholders ­ namely, customers, staff, suppliers ­ as well as the environment. Becoming an ethical retailer motivates staff who feel proud of their employer. The group's survey of 25 food companies and global companies discovered that they believed they needed to become more local and engage with the local communities. "It enhances their reputation and gives them an identity in the community. It should then deliver increased sales." Its research found that three-quarters of the food manufacturing companies had already benefited financially or commercially from adopting socially and environmentally friendly practices, with 44% achieving cost reductions and 28% seeing a positive effect on consumer sales. Companies seen as good examples were Tesco, Sainsbury and Iceland, but Cumming says that although the food industry had a handle on environmental issues, social and economic issues also needed to be addressed. "You need to be able to take action on what people say, and it doesn't have to be expensive." The feelgood factor is on a lot of people's shopping lists and, to the delight of both worthy causes and big business, looks like staying there for some time. {{COVER FEATURE }}

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