Tagged 'CSR'

A branded response to Pakistan’s floods

Published by Khurram Hussain - Lahore on September 1, 2010 in Asia Pacific. 0 Comments Tags: , .

flood

The lives of millions have been affected by Pakistani floods and it’s feared the worst has yet to surface. With the government proving inefficient and ineffective (a truism in many developing countries), brands are stepping into the gap. Along with aid organizations, they are seen as more organized and helpful than national institutions.

Orient Electronics and Samsung for example, have joined together to deliver ration packs to flood victims. And brands are helping Pakistanis to give. Telecommunications brand Warid has partnered with a TV news channel to go door-to-door to gather food, clothing and other contributions. International footwear brand Bata, which has had a presence in Pakistan for more than 50 years, has placed collection boxes in its roughly 500 retail shops and is asking consumers to join the company in donating to a CSR fund it’s set up. The floods have also given rise to “people brands,” with singers, musicians, actors and sports stars stepping up their own relief efforts—a curious development in a country that lacks celebrity brands.

Brands here have a chance to gain consumer respect and trust like never before by contributing to relief efforts. Since most brands have themselves been affected—with many offices closed due to the floods—they have unique opportunities to bond with Pakistani consumers as they tally their own losses.

Photo Credit: United Nations Development Programme

Will BP’s nightmare be a boost for Dawn?

Published by Rachel Birnbaum - New York on June 23, 2010 in North America. 1 Comment Tags: , .

Scenes from the BP oil spill crisis—notably images of oil-drenched wildlife—continue to stir up feelings of anxiety, frustration and hopelessness. But one brand has managed to turn images of affected birds into something optimistic: Dawn is touting itself as part of the solution, since rescuers are using the dishwashing detergent to clean birds. The timing is actually coincidental, as Dawn launched this warm-and-fuzzy spot last summer and began re-airing it in advance of Earth Day, shortly before the Gulf disaster. (Dawn has been used in such situations since the late ’70s, according to The New York Times, and in the last few years has leveraged this fact in its CSR initiatives.)

Is this a case of a brand opportunistically capitalizing on tragedy? Or a benevolent brand being smart? Dawn is earning its share of criticism, with headlines like “How BP’s Oil Spill Will Create a Gusher of Money for P&G’s Dishwashing Liquid.” And The Huffington Post says the ad “allows [Dawn] to spin the recent disaster into their fortune”—but in a poll, only about a quarter of readers agree that “it’s tacky to use the oil spill for gain.” Most consumers will likely feel partial to a product that can mitigate the effects of the spill and can, in a small way, counteract their feelings of helplessness.

BP will pay

Published by Deanna Zammit - New York on June 16, 2010 in North America. 1 Comment Tags: , , , .

In his speech last night, President Obama made it plain that BP is responsible for “the worst environmental disaster America has ever seen … one we will be fighting for months and even years.” The words came a week after Obama called on BP to suspend ad spending and dividend payments until the company has fully paid for the cleanup. While the oil giant has agreed to set aside $20 billion for cleanup and claims, the company’s PR team might consider Obama’s advertising suggestion as advice well taken. The catastrophe has laid waste to BP’s carefully constructed “green” image; now its communication efforts are only throwing salt on the wound.

A 60-second spot shows CEO Tony Hayward announcing that BP has taken responsibility for the cleanup, along with pictures of crews mustering on beaches, lowering booms and bathing birds. And while the commercial avoids images of the actual slick, it has inevitably generated angry response videos. BP’s YouTube post of the spot has generated an overwhelming 12,000 or so “dislikes” vs. about 1,100 “likes” (the company disabled YouTube’s comments function). The message is too little too late, and BP’s website covering its cleanup efforts feels far less like a genuine attempt at transparency than a calculated PR move. After all, this is the company that bought the search term “oil spill” from Google in an attempt to get control of its image.

Other oil companies will have to be careful not to be pulled into BP’s quagmire. Perhaps Hippocrates is a good place to start: First, do no harm.

In South Africa, brands step in as government steps back

Published by Davina Wertheimer - Johannesburg on March 15, 2010 in Africa. 0 Comments Tags: , , , .

kfcIn the past 10 months, the Johannesburg Roads Agency has received some 42,500 complaints of potholes across the city. With government in South Africa neglecting basic services such as road repair, people are agitated and anxious—in a difficult economic climate, the last thing motorists want is the expense of repairing or buying new tires and rims.

Brands have stepped in, taking advantage of the opportunities for CSR initiatives. Kentucky Fried Chicken has donated R200,000 (about $27,000) to help fill some of the potholes in and around Johannesburg. It seems like an awfully small amount, although KFC is positioning the move as part of a “challenge to other companies to help in any way they can.”

Meanwhile the Empowerment Gateway Group, a consulting practice, started an Adopt-a-Pothole project; it is now handing off custodianship and considering bids from businesses looking for a CSR cause. The program is positioned as one that helps alleviate unemployment along with improving roads.

pointsmenOne of the more successful such initiatives is from OUTsurance, an insurance company that has teamed with police to place branded pointsmen (traffic control people) at busy intersections to help alleviate congestion. It’s a good example of how brands can strengthen their image by helping to alleviate anxiety.

Photo Credits: http://www.outsurance.co.za, http://www.bizcommunity.com

Green brands that cost more must explain why

Published by Mollie Hill - Sydney on August 6, 2009 in Asia Pacific. 0 Comments Tags: , , , , .

JWT’s study on “The Recession and Its Impact on the Environment” found that people are conflicted when asked to weigh a theoretical tradeoff between environmentally friendly and lower price: While Australians accept that greener products may come at a higher cost, most are prepared to trade off on green for a reduced cost.

What does this mean for brands? Green brands that cost more should clearly explain to customers what incremental environmental benefit they are getting. OMO laundry detergent, for example, is clearly quantifying the green benefits of its new packaging. Above the typical value/efficacy story, OMO claims the product “uses half the packaging and half the trucks. Mighty results for the environment.”

The Times of India taps into a new social consciousness

Published by Pragya Singh - New Delhi on August 5, 2009 in Asia Pacific. 0 Comments Tags: , .

teach-india-21According to JWT’s recent AnxietyIndex study in India, an overwhelming 89 percent of respondents said they have become more concerned about societal issues that may not impact them directly. There seems to be a growing realization that ignoring social issues—such as poverty, the environment and illiteracy—will not help.

It’s not surprising, then, that brands that have associated with a relevant cause have gained equity from doing so. Teach India, a literacy initiative from The Times of India, the country’s leading English newspaper, has been a huge success, giving people who wished to give back to society a platform for doing so. The mission is to get volunteers to tutor street kids and those who can’t afford education. Volunteers commit to dedicating two hours of their time each week for a period of three months.

Since the campaign launched last summer, 90,000 people have let go of their lethargy to join in. The program is now entering a second phase to get even more people to volunteer. India, it seems, is awakening to a new level of social consciousness.

Simplicity, sustainability and the LOHAS lifestyle are big in Japan

Published by Jordan Price - Tokyo on July 31, 2009 in Asia Pacific. 0 Comments Tags: , , , , .

avedapurecafeimagesJapan is the most anxious market among the 10 we have studied in the course of our AnxietyIndex research. The country has become an increasingly fast-paced and complex place in the last few decades, but as anxiety grows, many are seeking a simpler life and reassessing what really matters to them.

So rather than providing ever more options and functions, or pushing the “have it all” aspirations of the ’80s and ’90s, brands would do well to strip down their offering and focus on simplicity, sustainability and the truly important things in life. Already many businesses are taking advantage of the fact that Japan is one of the fastest-growing markets in terms of LOHAS (lifestyles of health and sustainability).

Aveda Japan, for example, has had great success with its LOHAS-lifestyle salon, spa and vegan restaurant, Pure Café. Radish Boya, a company that delivers organic vegetables and additive-free foods to its members, has seen dramatic growth since 2003; it now has roughly 100,000 members, and annual sales revenue of 22.8 billion yen (US$244 million). And Mujirushi, the clothing and lifestyle retail pioneer also known as MUJI, has succeeded with its core philosophy of simplicity, sustainability and stripping away the unnecessary. Annual turnover is around 145.5 billion yen (US$1.5 billion), and its success in Japan has allowed for rapid expansion—there are now 98 stores around the globe.

For more on the recession and its impact on the environment in Japan,  download the presentation from the Trends and Research section of this site.

NYC quantifies savings from going green

Published by Mark Truss and Ann Mack - New York on July 16, 2009 in North America. 0 Comments Tags: , , , , , .

enviroJust as temperatures started to rise after a rain-soaked June, New York City launched a campaign to encourage people to “Be Cool & Smart” by reducing air conditioning-related electricity consumption. This is a part of an aggressive plan to reduce the city’s carbon emissions by 30 percent by 2030.

One ad reads “Clean your air conditioner filters to save money. Dirty air filters make your A/C work harder & use more electricity.” Another tells subway riders to “Turn up your thermostat to save money. Each degree higher can cut your energy bill by 3% or more.”

Rather than emphasize the bigger, long-term “greener, greater New York” vision—which may be a bit abstract for some, especially during the sweltering summer months—the ads focus on the immediate monetary benefit. This is a much easier argument to make, especially at a time when people are trying to save money wherever they can.

As we found in “The Recession and Its Impact on the Environment,” consumers have adopted a number of behaviors over the past year that could be considered environmentally friendly—turning off lights/appliances when not in use, waiting to replace things until absolutely necessary, reusing things, etc. But as might be expected, the recession is a more dominant motivator for these behaviors than the environment.

For green brands benefitting from the recession, get in with the pockets and keep them with the planet. Leverage people’s concern over money to stimulate environmentally friendly behaviors and then work on changing attitudes (e.g., the impression that going green is more expensive) to help ensure people maintain these habits well past the recession. As the recession abates, brands will need to reinforce that these behaviors benefit the environment, not just the pocketbook.

(Click here to download the U.S. report on “The Recession and Its Impact on the Environment.” Please sign up for our subscriber alerts to be notified when the Australia, Canada, Japan and U.K. versions of the presentation are available.)

Social PR 2.0 and viral marketing in a new form

Published by Said Seihoub - Vienna on June 30, 2009 in Europe. 0 Comments Tags: , .

untitledz2In economic downturns, people are less willing to donate to charity. But then, they are likely more willing to spend their time—the new currency—or other resources to support a good project. The new Austrian platform SOS Mother Nature, initiated by the Austrian environmental organization Global 2000, works with this assumption: It gives people an opportunity to support the fight against global warming simply by creating a profile and spreading the word by providing a new-media channel like a personal Web site, an online banner, a screen saver, wallpaper, e-mail, mobile or SMS. SOS Mother Nature platform gets an enormous below-the-line push for free, while participants get a quieter conscience and little bit of publicity too.

In Japan, collecting Eco-Points to feel better about consuming

Published by Hiroyuki Hosomi - Tokyo on June 17, 2009 in Asia Pacific. 0 Comments Tags: , , , .

tokyo11In an attempt to stimulate a sagging economy and get consumers to replace older appliances with eco-friendly models, Japan is betting on an old but still-relevant sales and loyalty tool: reward points. In mid-May, the government launched an “Eco-Points” system in which consumers who buy energy-efficient flat-screen TVs, refrigerators, air-conditioners, etc., can collect Eco-Points based on the product category, size of product and a star rating system.

Although the government is still discussing precisely how consumers can eventually redeem Eco-Points, this ambiguity hasn’t seemed to matter—perhaps an indication that the most important aspect of reward points programs is how they make consumers feel about a purchase. In the first week after the program launched, weekly sales of designated items increased significantly: TVs by 48 percent, refrigerators by 19 percent and air conditioners by 45 percent compared with the previous year, according to data from GfK Japan. And in a joint survey from Nikkei Business Daily and Yahoo! Value Insight in late May, 47 percent of respondents said they were considering buying a flat-screen TV because of the Eco-Points incentive.

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