Posts Tagged: Commercial Co-Ventures

Cause Marketing Lessons from the Wounded Warrior Project Scandal

Your company just made a major announcement that it is partnering with a charity that you now find is involved in a scandal. What can you do?

The recent ousting of The Wounded Warriors Project CEO and COO amid allegations of lavish spending on travel, conferences and public relations requires a company to examine their cause marketing campaigns. While there is no need to throw the baby out with the bath water – recent studies still confirm that consumers, and in particular Millennials, strongly support buying from companies associated with a cause* — picking the right charity is critical.

*For example, according to the 2015 Cone Communications Millennial CSR Study, “More than nine-in-10 Millennials would switch brands to one associated with a cause (91% vs. 85% U.S. average).” (more…)

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“All Profits to Charity” – How Much is That? A Brief Commercial Co-venture Lesson

You’ve heard this sales pitch before. Its cousins are “A percentage of proceeds to charity” and “A portion of the proceeds to charity”. Do you really know how much will be donated? The short answer is no. I’ve read estimates that net profits on a pizza pie are typically 4% to 8%, on new cars around 1-2%, and in the clothing industry profit margins range from 4% to 13%.  The Wall Street Journal has reported that McDonald’s makes 6 cents on a one-dollar hamburger. So if a brand tells you it’s giving “all of its profits to charity,” you need to know where’s the beef. (more…)

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Cause Marketing by the Numbers – What’s In It for Me?

There is a common belief that corporations must do everything with an eye to producing profits for shareholders. But that is not so. In fact, in its opinion in the Hobby Lobby case, the U.S. Supreme Court stated: “Modern corporate law does not require for-profit corporations to pursue profit at the expense of everything else, and many do not.” Brands can (and should) include cause marketing in their promotional campaigns. (And you don’t need to tell anyone, but doing so will probably increase your product awareness and bottom line!)

Consumer studies have shown: (more…)

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What You Need to Know About Commercial Co-Ventures

Commercial co-ventures are a form of cause-related marketing that have proliferated in recent years. Commercial co-ventures between a company and a charity not only help charitable causes, but also tend to increase a company’s bottom line. Indeed, market studies have shown that most people will opt to purchase a product associated with a charitable cause over a competitor’s product. Commercial co-ventures are highly regulated, so carefully planning and must be taken to avoid any legal pitfalls.

What is a commercial co-venture?

Generally, a commercial co-venture is a charitable sales campaign where a brand advertises to the consumer that the brand will donate a portion of the purchase price to charity. (more…)

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