The importance of cause related marketing A Cadbury Schweppes case study
Page 3: Marketing objectives
Cadbury Schweppes is a marketing focused company. Its success relies on satisfying the needs of its consumers. It is able to do this by continually listening to consumers and learning about their changing requirements. In response to these requirements, Cadbury Schweppes seeks to create new products, build on existing core brands and find new ways to add value to existing products. A key marketing objective for large business organisations is to focus on the most profitable opportunities in global markets in their particular product category. This can take the form of value or volume or a mix of both and can be seen in all forms of mass consumption products from shampoo and toothpaste, to baked beans, confectionery and beverages. The logic is simple - by gaining the visibility, profitability and volume in the global market, a business is best placed to provide its consumers with quality products and the best value for money.
In this respect Cadbury Schweppes is representative of leading-edge international business practice focusing on the two growth markets of Beverages and Confectionery, which between 1992 and 1997 increased in volume by 25 per cent and 20 per cent respectively. Another marketing objective is to increase the volume of sales and market share by a process of innovation - in products, packaging and route to market. Innovation is the process of developing better solutions and methods of conducting business. Having a culture of innovation helps companies stay ahead of the competition. Innovative business organisations place great emphasis on being able to take advantage of new opportunities - identifying changes in the business environment and, after evaluating market research information, allocating resources to capitalise on these opportunities.
An organisation which is in touch with the changing business environment and its consumers' changing perceptions, interests and needs will be able to create innovative products which best satisfy consumer requirements. The development of Cadbury's Yowie in Australia exemplifies these marketing objectives and provides a good lesson in how to use Cause Related Marketing effectively. Yowie is an exceptionally successful product which has won a large share of the children's confectionery market in Australia. It was voted best new confectionery product in the world in 1997 by the world's grocery press. It is a value-for-money, exciting and entertaining chocolate product which is related to an important cause - the environment. In this way, the Yowie typifies the innovation process of adding more value to a product in a socially desirable way. This type of Cause Related Marketing is central to Cadbury's marketing strategies - to give consumers the benefits that they want.
Many people in industry believe that if the community in which the business operates is not healthy, then the business will suffer. It follows then that business has a responsibility to contribute to the health and prosperity of the community. There are many ways in which companies can help, from seconding personnel to community projects to straightforward sponsorship. At one extreme is the corporate donation, i.e. pure charity, and at the other extreme is the example examined in this case study - Cause Related Marketing - where businesses and good causes work together for mutual benefit.Cadbury Schweppes is an organisation which has been at the leading edge of community involvement for some time. It has been involved in partnership activities with Save the Children and in seconding managers to work with other charities and community groups. Cadbury World educational experience (a fun themed tour outlining the history, operations and achievements of the company over the years) exemplifies Cadbury's commitment to education.
As part of its community involvement, Cadbury Schweppes spearheaded 'Business in the Community' Cause Related Marketing campaign. The Company's Chairman, Sir Dominic Cadbury, was the first Chairman of the 'Business in the Community' working party, set up to investigate and promote Cause Related Marketing. Business in the Community was established in this country in 1982 to inspire businesses to increase their contribution to social and economic regeneration by making corporate responsibility an essential part of business life. It is a charity with a membership of over 400 companies, including over 75 of the FTSE 100. Members are encouraged to use their skills, expertise, products and profits to promote the economic and social regeneration of communities.
'Business in the Community' has carried out detailed research into current perceptions of Cause Related Marketing to provide the market with evidence of the potential this marketing approach offers both businesses and charitable causes.
Some of the key findings of the research are that:
Consumers support cause related marketing when it is planned, implemented and communicated appropriately
Cause Related Marketing offers a unique means of emotionally engaging the consumer
Cause Related Marketing remains a relatively untapped opportunity
The success of a Cause Related Marketing programme relies on a convincing partnership
Cause Related Marketing provides everyone with the opportunity to benefit and make a difference
Cause Related Marketing provides a win/win/win opportunity
Cadbury Schweppes | The importance of cause related marketing