Intense competition in the market-
ing arena across industries has
forced companies to explore new possibilities and alliances.
Cause branding is one such strategy, which attempts to blend the brand's
attributes with an overriding societal concern, often by forging
alliances with a cause expert. While corporate social
responsibility (CSR) is a broader concept encompassing
issues related to sustainable development, pursuit of ethical labor practices,
environmental issues, etc., which are mandatory to qualify as a good
corporate citizen, cause branding is more the public persona of an
elaborate CSR program. A focused cause branding strategy carries the
potential of claiming a unique position in the customer's lexicon.
Although cause branding has been widely practiced in the developed
markets, in India, it has begun to get its due only recently (Refer Exhibit 1).
While the realization by the companies regarding the need to `give back' to
the society fuelled CSR activities, growing social consciousness among
consumers (willingness to pay a premium price or show a preference
for brands engaged in social causes) galvanized cause branding.
Cause marketing became a part of marketing terminology during
the early 1980s following the consumer-focused program initiated by American Express to donate a penny per transaction for restoring the Statue
of Liberty. By strategically linking
the brand with a cause that appealed to the consciousness of the target
audience, American Express was able to positively impact consumer
perception. Cause marketing has evolved further since then, encompassing
pursuance of a cause as one of the brand's core values. While
cause-related marketing tends to focus on numerous related/unrelated
activities of varying duration, cause branding extends over a longer period of
time and focuses on issues that can be aligned to complement the
brand.
Companies in India are slowly moving along the continuum
from cause-related marketing to cause branding. Hindustan Unilever
Limited sent into motion India's largest private health and
hygiene-focused educational program under Lifebuoy's Swasthya Chetna. Since
its inception in 2002, the program has touched the lives of over 120
million Indians. Its phenomenal success led to the release of a special
Lifebuoy Swasthya Chetna postal cover by the Indian Postal
Department. The company replicated the strategy
with Dove's campaign for real beauty. The possibility that companies can
earn better by doing good has resulted in increased investments in societal
issues. In markets clogged with intense competition, this has emerged as
a viable differentiation strategy. |