9 Module 4 - Brand Building Through CSR
9 Module 4 - Brand Building Through CSR
CSR activities
Module- 4.1, 4.2 and 4.3
Syllabus to be covered
• 1. Brand Building through Corporate Social Responsibility: CSR as part of business environment
management, How CSR activities can be used for Brand Building, Social activities other than
CSR to enhance the brand.
• 2. Conception and Growth : Important factors in conception and various stages of growth and
maturity of brands with various case studies
• 3.Branding Different Sectors in Customer, Industrial, Retail and Service Brands
Some examples
• Protecting the environment is the official reason Apple decided not to include power
adapters or EarPods in the iPhone 12 box. ... Carbon emissions led to climate change,
so it's definitely significant to see a tech giant like Apple making an effort to reduce
its emissions.
• Apple made quite a big deal of it back in 2018, when it announced that its 2018
MacBook Air was being made from 100% recycled aluminum, reducing its carbon
footprint by 50 percent. The revelation was met with thunderous applause by the
assembled crowd, as Apple declared it “The Greenest Mac Ever.”
• Google also earned the Reputation Institute’s highest CSR 2018 score much in part
due to their data centers using 50% less energy than others in the world. They also
have committed over $1 billion to renewable energy projects and enable other
businesses to reduce their environmental impact through services such as Gmail.
• Disney is determined to please companies that have made it a giant by using
zero net direct greenhouse gas emission policies within all its facilities. In
addition, it is working at reducing the indirect greenhouse gas emissions
through the reduction of electrical consumption.
• Disney also has a zero-waste policy meaning that there is nothing that would
end up in landfills. The entertainment giant also uses technology that saves
water and is working on lowering the footprint of its product manufacturing
and distribution. This is tied up to the company’s policy of having a net positive
environmental impact that has made Disney a leader in environmental
responsibility.
• https://www.tatamotors.com/corporate-social-responsibility/#overview – Tata
CSR activities
Corporate social responsibility
• Corporate social responsibility (CSR) refers to strategies that companies put into action as
part of corporate governance that are designed to ensure the company’s operations are
ethical and beneficial for society.
• Some marketing experts believe consumers are increasingly using their perceptions of a
firm’s role in society in their purchase decisions.
• For example, consumers want to know how a firm treats its employees, shareholders, local
neighbors, and other stakeholder or constituents. As the head of a large ad agency put it:
“The only sustainable competitive advantage any business has is its reputation.”
consistent with this reasoning, 91 percent of respondents in a large global survey of
financial analysts and others in the investment community agreed that a company that fails
to look after its reputation will endure financial difficulties. Moreover, 96 percent said the
CEO’s reputation was fairly, very, or extremely important in influencing their ratings.
• The realization that consumers and others may be interested in issues beyond
product characteristics and associations has prompted much marketing activity to
establish the proper corporate image. Some firms are putting corporate social
responsibility at the very core of their existence. Ben & Jerry’s has created a strong
association as a “do-gooder” by using Fair Trade ingredients and donating 7.5
percent of its pretax profits to various causes.
• An area of increasing importance for many brands is corporate social
responsibility. Firms are becoming more aware of the environmental, economic,
and social impact of their words and actions. Many now employ cause-marketing
programs designed to align their brands with a cause of importance to their
customers. Many consumers are also becoming much more aware of the
environmental aspect of the products and services of a firm and how they are
produced and dispose.
Pfizer- CSR
• When disaster strikes, emergency assistance in healthcare is crucial. To aid in these
circumstances, Pfizer has a three-pronged approach; product donations, grants and
solutions to access.
• Grants have been provided to countries such as Haiti in the aftermath of Hurricane
Matthew and the global refugee crisis in Europe and the Middle East. This money is
provided in cooperation with NGOs to reach as many people as possible.
• During the COVID-19 pandemic, through its Global Medical Grants program, Pfizer
provided $5 million to help improve the recognition, diagnosis, treatment and
management of patients. In addition, grants were made available to clinics, medical
centers and hospitals to improve the management and outcome of COVID-19 patients.
CSR and branding
• CSR and branding have a number of linkages, specifically through trust, corporate
reputation and consumer attribution. Gurhan-Canli and Fries (2009) suggest that both
consumer characteristics, such as awareness of CSR programs and personal judgment
and company characteristics such as reputation are factors influencing branding
outcomes. The branding outcome would include evaluation of the company, brand and
product, in which brand trust would be considered. Fit between the CSR activities
and the company and brand itself also impacts on the way consumers perceive the
CSR activities .
• It was argued that brand image is a perceptual phenomenon affected by corporate
communication activities, by means of which consumers can be led to freely associate
their minds to the branded products. Despite the inter-relation between reputation and
brand, the two concepts are not synonymous. Reputation centers primarily on the
company, whereas brand is customer-oriented
Helps maintaining relationship with consumers
• CSR helps humanize your brand by adding to memory structures that link your brand to
important issues – this could be anything from sustainability, community support,
environmental awareness to mental health. Business growth comes by finding new
customers.
• Corporates are increasingly ramping up their focus on social responsibility, whether its
championing women’s rights, protecting the environment, or attempting to obliterate
poverty, on local, national, or global levels.
• Embracing socially responsible policies goes a long way towards attracting and retaining
customers, which is essential to a company’s long-term success. Furthermore, many
individuals will gladly pay a premium for goods, knowing that part of the profits will be
channeled towards social causes near and dear to them.
• E.g., P & G Shiksha CSR activity to help educate rural girls who do not get opportunity to go
to school.
• Socially responsible companies tend to attract employees who are eager to make a
difference in the world in addition to simply collecting a paycheck. With large
companies, there is strength in numbers, where collective employee efforts can
achieve substantial results, which increases workplace morale and boosts
productivity.
• Community-oriented companies often enjoy a leg up on their competition, as well,
thanks to superior brand imaging. For example, Tesla Inc. CEO Elon Musk has
successfully attracted environmentally-minded consumers, with his line of cutting-
edge electric-powered cars and green automotive products.
• Socially responsible companies cultivate positive brand recognition, increase
customer loyalty, and attract top-tier employees. These elements among the keys to
achieving increased profitability and long-term financial success.
• https://www.media4growth.com/ooh-news/mcdonalds-india-makes-a-significant-pres
ence-in-fight-against-covid-19-5029
Some benefits of CSR in branding
• 1. Stronger brand image, recognition, and reputation: CSR adds value to firms by establishing
and maintaining a good corporate reputation and/or brand equity.
• 2. Increased customer loyalty and sales: Customers of a firm that practices CSR feel that they
are helping the firm support good causes.
• 3. Operational cost savings: Investing in operational efficiencies results in operational cost
savings as well as reduced environmental impact.
• 4. Retaining key and talented employees: Employees often stay longer and are more
committed to their firm knowing that they are working for a business that practices CSR.
• 5. Easier access to funding: Many investors are more willing to support a business that
practices CSR.
• 6. Reduced regulatory burden: Strong relationships with regulatory bodies can help to reduce
a firm’s regulatory burden.
Example- CSR- India
• At Mahindra & Mahindra, The K. C. Mahindra Education Trust was established in
1953 with the purpose of promoting education. Its vision is to renovate the
lives of people in India through education and financial assistance across age
groups and across income strata. The K. C. Mahindra Education Trust undertakes a
number of education plans, which make a difference to the lives of worthy
students. The Trust has provided more than Rs. 7.5 crore in the form of grants,
scholarships and loans. It promotes education mostly by the way of
scholarships. The Nanhi Kali (children) project has over 3,300 children under it and
the company aims to increase the number to 10,000 in the next two years by
reaching out to the underprivileged children, especially in rural areas
Social activities other than CSR to enhance the brand.
• By anything that brings members of a community together to interact like dancing, games
and street parties. SOCIAL ACTIVITY: "Social activity is an event or pursuit that brings
members of the community together.
• Can social activities enhance brand’s image? “perhaps” because the community on which
brands used to depend on have changed dramatically in the last half-decade.
Consequently, brand managers are scrambling in search of certain activities that would
help a part of the society so that they can buffet themselves against unpredictable,
societal-led storms.
• Tommy Hilfiger has become well-known for its socially-driven campaigns in the past few
years, which typically center around topics like diversity and sustainability. Its latest,
‘Moving Forward Together’ is similarly based on social good, aiming to help both the
fashion and creative industries recover from the impact of the Covid-19 pandemic.
• E.g., Camlin believes that adding a fun element to education makes learning fun!
Keeping this in mind, Camlin conducted an event at Shivaji Park, Dadar, in
collaboration with the Rachna Sansad Institute. The goal of this activity was to
beautify the surroundings.
• More recently, Tommy Hilfiger has also announced a continuation of the
campaign, involving a partnership with learning platform, Future Learn, to offer a
series of free digital learning courses covering a range of topics such as
community building and LGBTQ. Each course will be hosted by Tommy Hilfiger
ambassadors, which include Jameela Jamil and Indya Moore. Furthermore, the
brand will host a series of live talks on its social media channels in the same vein,
furthering its commitment to empower fans and followers to drive social change.
• E.g., Vicks glorified the warriors of society. Covid fighters, transgender etc.
• The Mumbai Marathon (known as the Tata Mumbai Marathon for sponsorship
reasons by Tata Group), is an annual international marathon held in Mumbai,
India, on the third Sunday of January every year. It is the largest marathon in
Asia as well as the largest mass participation sporting event on the continent. It
is the richest race in India with a prize pool of US$405,000. This brings Mumbai
together to run for inspiration and motivation. In 2018 when Tata Group took
control of the event, the initiative was to increase participation and encourage
marathoners to complete the marathon run.
• The Mumbai Marathon is India's largest charity platform for non-profit
organizations to raise funds. NGOs represent causes such as arts, culture and
sports, civic and community development, disability, education, environment
and wildlife, health, human rights, social services, vocational training, and
women, children and the aged.
• The New Cosmos of Photography is Canon's cultural support project to discover,
nurture, and support new photographers who pursue new possibilities in
creative photographic expression. Launched in 1991, this year marks the 30th
iteration of the annual contest. What's more, promoting the competition as a
global photo contest that elevates photographers and videographers playing an
active role in the current art scene.
• Tupperware is also a classic example of conducting social activities in the
organizations, where they exhibit products as well as lunch/ dinner parties too.
The brand has always focused on reducing impact on the environment by
providing reusable, durable and easy-to-use solutions that help minimize plastic
and food waste. We are now extending our vision by committing to significantly
reduce our impact on the issue of waste. We are planning large steps to ensure
waste reduction at every step of the lifecycle of our product – design,
manufacturing and distribution, to consumption, recycling and recovery.
Important factors in conception and
various stages of growth and
maturity of brands
• One reason marketers have been forced to use so
many financial incentives or discounts is that the
marketplace has become more competitive. Both
demand-side and supply-side factors have
contributed to the increase in competitive
intensity.
• On the demand side, consumption for many
products and services has flattened and hit the
maturity stage, or even the decline stage, of the
product life cycle. As a result, marketers can
achieve sales growth for brands only by taking
away competitors’ market share. On the supply
side, new competitors have emerged due to
several factors.
• Every brand or product has its life cycle which spans from the time it is launched to the
time it exits from the market. This cycle covers five stages, namely product development,
introduction, growth, maturity and decline. The life cycle of each brand or product is
different, and different advertising strategies should be adopted at different stages to suit
the marketing targets and market environment in order to achieve the best marketing
results.
• Stages:
• Product Development -- This is the stage of design, production and research carried out
by a company to ensure that its products can meet consumer needs through sufficient
market survey. The company will also improve its products in the light of market response
and gradually build up its brand.
• Introduction -- During this stage, the product is introduced into the market and publicity
campaigns are launched to promote its functions, features, quality and usage and attract
customers to try out or buy the product. Here, the brand awareness is very high as
aggressive marketing takes place.
• Growth -- The branded product begins to build up its following among consumers during this
stage. The cumulative effect of marketing begins to show, and the market share expands.
However, the company must further step up its advertising efforts, and the advertising must
highlight the characteristics and value of the product. A company may also improve the quality
of their product brands, adding various flavors or features. E.g., Apple’s launch of SE products.
• Maturity -- Brands or products in the maturity stage have a considerable market share and have
reached their sales peak, with growth beginning to slow down. Brand influence at this stage is
at its height and the kinds of marketing strategies to be adopted are many. Here, the brand can
revitalize itself by bringing a change in product or technology. E.g., Bringing M1 chip in
MacBook.
• For example, the company that first entered the market may focus on being the quality leader.
The company may keep prices relatively higher to maintain its premium image. The target
market may include older users with a higher household income.
• Decline -- Brand awareness is high, but sales are on the decline. Other characteristics of this
stage include falling prices, weakening competitiveness and emergence of new products. E.g.,
iPods are not needed anymore in the market. The need of the product is over.
Examples: iPod
and Kodak
• The film rolls made by Kodak. After the idea was generated
and tested as a good product (the product development
stage), Kodak launched the product on the market, this is
the introduction stage. After that, people discovered for
the first time this type of product, and they start liking it
and buying it, this is the growth stage. Then, when the
product was the most popular, that was the maturity stage.
During the period of time, Kodak was the most profitable
and sales started declining. And finally, as competitors
introduced digital cameras, consumers didn’t need film rolls
anymore, that was the end of this type of product, this is
the decline stage.
Customer, Industrial, Retail and Service Brands
• Customer branding is a process in which a customer or customers define, label, and seek to
purchase an otherwise undifferentiated or unbranded product. The customer(s) can be
anywhere along the value chain and may be intermediate, industrial or end-user customers.
• Customer branding may have been historically very common but is probably less common in
the modern era. However as will be shown, it still exists. While the marketing phenomenon
of customer branding has occurred for hundreds of years, marketing theory has never
incorporated it.
• By understanding the process of customer branding, we can better understand how markets
for seemingly undifferentiated products work. Customer branding fills in an important gap
that currently exists in the academic literature and in marketing theory.
• Customer branding exists and by understanding the phenomenon, channel participants can
increase revenue and improve product movement and potentially profit.
• They are the products which consumers buy depending upon their price. There is no quantitative
differentiation for the commodities across the market. Milk, sugar, oil, grains are few example to
note. It is not easy to persuade customer as these products are available at various ranges. So,
the sellers need to put in lot of efforts like color, logo, brand characters, packaging etc.
• Industrial branding:
• Industrial brands often emphasize functionality and cost–benefit comparisons.
• Industrial brands can leverage secondary associations differently; for example, identifying other
companies that are customers for their products or services conveys credibility. The challenge in
advertising that fact, however, is ensuring these other companies don’t distract from the
message about the advertised company and its brands.
• The principles of effective industrial branding apply to the B2B sector in the same way as they do
in customer-facing businesses. B2B businesses market products and services directly to other
businesses rather than the public. They too need to use branding to differentiate and create a
distinct personality. They may opt for a personality that is more corporate and business-like in its
tone than a consumer facing brand.
Retail brand
• Emphasizes the specific retail outlet as the place to buy a specific range of brand. It
can be local store advertising in local newspaper. E.g., Shoppers Stop, Big Bazar
• When you walk into a brick-and-mortar store, its physical appearance has a look and
feel specific to that brand. That’s retail branding in action. Deliberate design choices
like its layout, the light fixtures, the decor, the music played, the display fixtures and
even the type of flooring are all carefully selected to build a living brand experience
for every shopper who enters the store.
• Retail branding is a must-do for any business operating in a physical location.
Ecommerce has seen immense growth in the past few years and that trend isn’t
changing any time soon. So, to keep shoppers coming through the doors, retailers
need to up their branding game and turn their stores into experiences that shoppers
want to come back and relive.
Service brand
• Unlike products, which are easy to brand in visible and tangible ways, services are a
little more challenging to brand. But that doesn’t mean brands can’t do it effectively
—they just have to be willing to think outside the box.
• Often, service branding comes in the form of “extras”, like an insurance company
sending all their customers rebate checks at the end of the year or a hotel offering
free cookies at the caretaker desk. Service branding can also come in the form of
meeting specific expectations that set a company apart from their competitors, like
a cable company connecting customers with human customer service reps rather
than automated prompts, when they call.
• The point is that by providing these extras, you’re teaching consumers to associate
your brand with a certain user experience and driving them to keep coming back to
have that experience again.
• People want quick, efficient, friendly service and in some industries, simply
providing this kind of service consistently is enough. In others, a brand has to
actively go above and beyond by providing unexpected perks to stand out from
the crowd. Any company that provides a service, whether the service is their
sole offering, or something provided alongside tangible products, needs to
create trust with their consumer, especially as not all services have immediate
outcomes. The way that they can do this is by connecting to their consumers
on a deeper, emotional level.
•Pappu pass ho jaega!!!!
Yyaaaaayyyy!!!
•Finally, its over!!!