Chapter 9 Part 2 By Michael Navicky

1. Chapter 9 Part 2By Michael Navicky Starts on page 251 at Licensing and Co-branding

2. Licensing and Co-branding Where a non-profit (Susan G. Komen Breast Cancer Foundation) and private company (Yoplait) enter a partnership in order to promote both their goals and objectives. Yoplait sells an assortment of yogurt products and probably wants to make money in this venture The Susan G. Komen Breast Cancer Foundation is fighting to eradicate breast cancer as a life-threatening disease by funding research grants and supporting education, screening and treatment projects in communities around the world. (www.komen.org) The foundation needs money, people and expertise.

3. The Yoplait and Susan G. Komen Breast Cancer Foundation Arrangement • Yoplait will donate to the foundation a minimum of $500,000 and a maximum of $1,500,000 based on the amount of yogurts lids that consumers send to Yoplait. • Yoplait supports the Race for the Cure • Yoplait advertises a general support for women's wellness with a focus on breast cancer over the last 6 years.

4. History of Cause-Related Marketing • Companies switched from outright donations/gifts to cause-related marketing in the 1970’s and 80’s • Private companies saw it as a way to increase profits. • Through new customer loyalties • Employees more productive when participating in a company sponsored event • Non-Profits saw it as a way to further support for their cause • Money • People • Expertise

5. Potential Benefits • Positive Factors • Benefits the private company with increased sales, employee productivity and better reputation in the community • “54 percent of Americans would pay more for a product that supports a cause they care about.” (Andreasen & Kotler 253) • Yoplait gains new customers and employees are more productive • Provides non-profits with needed funds, people and expertise • Susan G. Komen Breast Cancer Foundation stands to gain at minimum $500,000 and maximum $1,500,000 of funding • Foundation has probably gained volunteers from the employee base at Yoplait • Both organizations furthered their goals

6. Potential Risk • Risk • For Marketers • Potential for backlash from customers to see through a transparent attempt to simply do a quick image fix • Yoplait overcomes this by being a constant supporter of women’s wellness • Yogurt is generally accepted as a wellness food. Product does not contrast greatly to the cause. Example: Doritos sponsoring a weight loss program • Yoplait is honest about its giving, advertises its minimum and maximum gift to the foundation • For Non Profits • Potential for customers to take your cause and advice less serious because of possible conflicting interest. • Susan G. Komen Breast Cancer Foundation now has an interest in the business success of Yoplait • Reputation of business can now reflect on the non-profit’s reputation

7. Cause-Related Marketing Strategy Andreasen & Kolter offer a 10 step list for non-profits to form successful business relationships • Use board members and community supporters to identify potential partners • Find businesses that have goals that parallel yours or abilities that lend themselves to your cause • Kodak developing a photo ID system for missing children • Avoid business partners with obvious conflicting interest • Frito-Lay sponsoring a fat reduction program • How does the non-profit relationship benefit the corporate partner • Be creative increased sales is only one potential benefit • Have strategy and program prepared before approaching a corporation • How is the non-profit run, can the corporation benefit the cause?

8. Cause-Related Marketing Strategy (Con’t) • What task are each of the parties willing to and obligated to accomplish? • Program must operate on total honesty with the public • Yoplait advertised $500,000 minimum and $1,500,000 maximum. Consumers’ purchase can have a $1,000,000 impact on charity • Another example is where a gift is given regardless of consumer participation. Consumer may assume their purchase supports the giving but it doesn’t • Seek long term relationships • Corporations may use non-profits for a quick image fix then leave them high and dry after a short time. • Agreements should not overly restrict non-profits ability to seek resources from other supporters • Exception is you should not seek support from directly competing companies. Example: Seek money from Burger King and McDonalds • Honestly evaluate the results • Are both parties achieving desired goals? • Would it be more beneficial for both to seek other relationships or alter current agreements?

9. The Collaboration Continuum (Drucker Foundation, James Austin of Harvard University) • The private company and non-profit that are partnered will go through stages of their relationship. • Philanthropic Stage – Getting to know each other, gaining donations from the private company. • Transactional Stage – Exchange of resources around a specific event or activity (Most CRM takes place at this stage) • Integrative Stage – mission, people and activities begin to blend • The Integrative represents the most mature and productive stage for both parties * Andreasen and Kolter has an exhibit on page 259

10. Portfolio Management • Non-profits need to manage their income sources • An obvious danger exist for non-profits when it relies on only one source of resources. • Non-profits should have partnerships to gain money, people and expertise with several organizations and at different levels of maturity in order to ensure a constant flow of resources. • Susan G. Komen has relationships with these following corporate partners. Full list available at www.komen.org • American Airlines • BMW of North America

11. Weekly Question Using your non-profit presentation organization give an example (existing or proposed) of a private company that would benefit from a relationship with your non-profit organization. Describe benefits and risk for both parties. Tell at what point of maturity this relationship could reach. Is it a one time effort or could goals and objectives blend into a lifetime involvement? Why?