Monday, August 1, 2011

Cause Marketing Idea for the Chebagogo Foundation

According to the cause marketing, a non-profit can form a partnership with a for-profit organization to form an alliance that will benefit both organizations. Although, this is still a relatively new idea (one of the first cause marketing was done by Mariott Corporation and March of Dimes in 1976), this has been a popular way of marketing tactic used by the for-profits in order to generate more revenues and by the non-profits to obtain more donations and supports. Either way, both organizations will get more publicity from this effort. Research shows that 89% of Americans (ages 13 to 25) would switch from one brand to another brand of a comparable product and price if the latter brand was associated with “good cause” (http://en.wikipedia.org/wiki/Cause_marketing). In addition, “moms are the demographic most open to cause marketing…” (http://nonprofit.about.com/b/2010/09/16/cause-marketing-speaks-loudest-to-moms-and-millennials.htm). Finally, the consumers, in addition to supporting the company’s effort, also seek out other ways that they can contribute, such as: providing feedbacks and volunteering.

The Chebagogo foundation is a non-profit organization whose focus is to provide healthcare, education, as well as job training to the AIDS orphans in Kenya. The are a lot of ways the Chebagogo Foundation can use cause marketing to gain a greater financial support and an opportunity to attract more supporters through the company’s database. As an example, the Chebagogo Foundation can partner with the Pottery Barn Kids, which is a for-profit business that sells a variety of children’s stuffs, such as: furniture, books, toys, and clothing. The main target market for the Pottery Barn Kids is moms, which is also the main target for cause marketing.

There are many ways that the partnership can be done. Here are four of them. First, the Pottery Barn Kids may donate a percentage of its revenues to the Foundation in exchange for a publicity in the Foundation’s website and other social media tools. Second, the Pottery Barn Kids may encourage moms to donate used children clothing during the holiday season. Third, the Foundation may provide the Pottery Barn Kids with some handicrafts that the children made at the Foundation and all of the proceeds will be given back to the children. Lastly, the Pottery Barn Kids can send some of their employees, and even customers, on a voluntary mission to Kenya to help the Foundation build some of the infrastructures that it needs.

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