Cause-Related Marketing
Campaign
Team # 4 –
Carrie Moffet, Michelle Phelps,
Natalie Pilat, Alex Sabbag,
and Lindsay Zabrin
Caterpillar’s Cause-Related Marketing Campaign
Caterpillar
Cause-Related Marketing Campaign
Executive Summary –
Social Responsibility Mission Statement:
As a company of 70,000-plus, doing business in nearly 300 facilities in 20 countries,
Caterpillar’s impact on people and communities around the world is enormous.
Caterpillar takes the responsibility of global citizenship seriously. They strive to ensure
that their success as a corporation contributes to the quality of life of all people touched
by their business and to the prosperity of all communities where they work and live.
http://www.cat.com/cda/layout?m=38722&x=7
Teaming Up With Coprodeli:
Caterpillar and Coprodeli have similar value systems and both believe in fully helping the
quality of life for a given population. Caterpillar is currently involved in many nonprofits including (but not limited to) Foundation, The United Way, Matching Gifts
programs, Destination Technology, Habitat for Humanity, and Childline. Caterpillar also
currently has a huge presence in Latin America and South American and does 40% of
their exports from South America (compared to only 30% in the US).
Highlights and Recommendations:
By teaming up with Corpodeli, Caterpillar wants to put out 5 press releases and 2 VNRs
and use these materials to increase positive media coverage in at least 25% of key media
in 3 months. Caterpillar wants to increase its local and national media attendance. Overall
Caterpillar wants to increase brand awareness, enhance its corporate reputation and longterm corporate health, establish a positive reputation in Peru, increase interest among the
Hispanic population in the United States, and differentiate itself from its competitors
through cause-related marketing over one year’s time, with the hope of increasing overall
sales and stock prices.
Caterpillar’s Cause-Related Marketing Campaign
Through cause-related marketing practices, Caterpillar wants to create an alliance with a
Chicago Non-profit Peruvian organization, raise awareness, internally brand their
employees, create relationships with both the local and foreign Hispanic community, and
raise money for Coprodeli’s efforts in Peru.
Caterpillar plans on doing this by targeting its internal employees, the local Hispanic
community in Chicago, the media, company stakeholders and stockholders, and the
Peruvian community. Caterpillar will accomplish its objectives by sending five of its
employees to Peru to work with Coprodeli for one week, sponsoring a Peruvian
Independence Day Parade, sponsoring a “build-a-home” out of cardboard day in Grant
Park, and hosting a fundraising event in Chicago to raise money for Coprodeli. Over five
years, Caterpillar hopes to donate materials to build a community/career center in Peru.
Caterpillar’s Cause-Related Marketing Campaign
Table of Contents:
Executive Summary
Page xxi
Caterpillar Overview
Pages 3-5
Situation Analysis
Pages 6-8
Objectives
Pages 9-10
Strategies
Pages 11-12
Targets
Pages 13-15
Messages
Pages 16-17
Tactics
Pages 18-21
Budget
Page 22
Evaluation
Page 23-24
Statistics and Examples
Pages 25-26
PowerPoint Presentation
Appendix
Caterpillar’s Cause-Related Marketing Campaign
CAT Overview:
Social Responsibility –
According to the website, www.cat.com, Caterpillar, Inc. (CAT) makes an effort
to be a socially responsible corporation. Stated in the “Social Responsibility” link, CAT
values a “strong focus” on social responsibility. In its role as a corporate citizen, CAT
earns financial results and profit growth. For three years in a row, CAT has been
acknowledged by the Dow Jones Sustainability World Index. This recognition
demonstrates how CAT is one of the global leaders among corporations in social
responsibility.
Jim Owens, CEO, addresses CAT employees with this statement:
Caterpillar’s reputation for making a difference in the world is something we are
proud of as a company—and as individuals. Whether it’s caring for the safety of our
fellow employees, improving the communities in which we live and work, or sustaining
the environment we all share, Caterpillar people are fully committed to and engaged in
good corporate citizenship. You’ll see our commitment brought to life—how we’re
doing well by ‘doing good’ all around the world.
From this statement, employees understand the reputation CAT seeks, and they
can appreciate working for a corporation so heavily committed to improving the lives and
communities around the world. Furthermore, CAT serves as a corporate citizen in
various ways. First, CAT strives to conserve natural resources. Second, CAT works to
improve the safety of the workplace. Third, CAT manages to find solutions that better
serve their customers needs. Fourth, CAT strives to increase business, while building
shareholder loyalty.
From these goals, employees can utilize resources available at CAT to engage in
social responsibility. For example, the Caterpillar Foundation carries out most of the
philanthropic activities. These activities range from educational programs, health and
human services, to culture and art. CAT also works with the United Way. This
partnership began in the 1950s when CAT donated money to improve community
Caterpillar’s Cause-Related Marketing Campaign
relations. Employees can also financially contribute through the Matching Gifts
Program. Through this program, both current employees and retirees can contribute to a
worthy cause. CAT then matches any contribution.
CAT employees may choose to start their own community program that CAT will
support. Several programs are highlighted on the corporate website. For instance,
Destination Technology is an educational program in Peoria, Illinois where math,
science, and technology is taught across underserved schools. Not only does CAT
provide financial support for this effort, but hundreds of CAT employees regularly
volunteer for the outreach program.
Breaking out of the U.S., CAT also has international outreach programs. FG
Wilson in Northern Ireland, a CAT owned company, recently earned an award for its fine
work serving the community. FG Wilson won the “Charity Oscar” in recognition of the
good deeds done with Habitat for Humanity and ChildLine in Northern Ireland (teenage
help hotline).
Closer to the U.S, in the Dominican Republic, CAT Power Ventures heavily
invests in providing 125,000 residences and business with electrical power. Partnering
with the Monte Rio Power Corporation, the new power plant allows Dominican
Republicans with a better quality of life. In the neighboring country of Brazil, CAT was
part of the “Whispers in the Forest” campaign. This campaign involved more than
80,000 students who visited an exhibition that discussed the environmental concerns of
the Brazilian rain forest.
Other CAT community projects exist throughout Southeast Asia. For example,
5,000 excavators were donated to help in Beijing’s 2008 Olympic building efforts. In
2004, Caterpillar Xuzhou (company of CAT) was acknowledged with the “Advanced
Enterprise for Clean Production” award by the local government. Additionally,
Caterpillar China Investment Limited donated tap water to the Wangantan village.
Not only does CAT have its own initiatives, but it cooperates with other worthy
organizations. These organizations include: World Business Council for Sustainable
Development, Tropical Forest Foundation, Climate Leader Partner, Global Mining
Initiative, Business Roundtable Climate RESOLVE, and the Nature Conservatory. These
Caterpillar’s Cause-Related Marketing Campaign
partnerships promote CAT’s commitment towards serving as an environmental conscious
corporation.
In more extreme efforts, CAT works to correct detrimental problems around the
world. For example, CAT understood the energy crisis in Brazil. CAT’s SoEnergy
provided Brazil with 398 megawatts of emergency energy. CAT did not stop with energy
supply; rather, CAT brought in engineering consultants, site preparation, oil analysis
among many other services desperately needed. The generous support CAT provided to
Brazil demonstrates its outstanding commitment as a corporate citizen.
Caterpillar’s Cause-Related Marketing Campaign
Situation Analysis:
www.caterpillar.com
www.hoovers.com
Strengths Caterpillar Inc. is the world’s leading manufacturer of agricultural equipment. Led by
CEO James W. Owens, Caterpillar is number 55 of all Fortune 500 companies. CAT is
recognized for diversity and commitment to excellence and has participated in a number
of socially responsible causes. Caterpillar currently has presence in South America and
does 40% of their exports from there, compared to the 30% done in the United States.
According to Bloomberg, Caterpillar has huge success in Brazil and in 2004, which was
their best year in the stock market, was the year they had booming achievement in Brazil.
Caterpillar has a strong value system which includes going into low income areas and
developing them, one small locale at a time. These values are very similar to the value
system of Coprodeli. Both organizations are focused on the quality of life and improving
quality of life in small segments where drastic changes can be seen.
Weaknesses Caterpillar’s weaknesses include the fact that they only have 5,000 Hispanic employees
out of the over 93,000 employees working at the company. Another weakness is that
although they want to partner with Coprodeli, they do not have a plant in Peru.
Caterpillar is also not in the top 100 companies for Hispanics to work for and they are not
directly located in Chicago like Coprodeli.
Opportunities Caterpillar has a great opportunity to build a strong name and reputation in Peru by
teaming up with Coprodeli. By expanding their corporate social responsibility to Peru it
lays an unobtrusive foundation to develop a relationship with the Peruvian people.
CAT’s position in Peru is sought to be modest; not an obvious ploy at attracting publicity
for their good works. By Caterpillar taking a quiet path to Peru and helping Coprodeli,
stakeholders will catch wind of the good works buzz and slowly the trust in Caterpillar
Caterpillar’s Cause-Related Marketing Campaign
being a socially responsible, good works company will develop. Caterpillar has an
opportunity to go to a small area and make a big difference. This will lay what could
potentially be a solid foundation for Caterpillar expansion in the future. Caterpillar sees
an opportunity with Coprodeli in that they can provide adequate service to the
organization and instill a confidence in their stakeholders that Caterpillar is an upstanding
global citizen.
Threats Although Caterpillar is the number one global manufacturer of agricultural machinery,
there are a few companies that pose a bit of a threat. The world’s second leading
manufacturers of agricultural equipment are Case New Holland (CNH) and Komatsu.
Case New Holland poses a threat to Caterpillar because they have locations in Brazil and
Mexico, an area where CAT has always found to be very successful where Komatsu
poses a threat because of their dedication to corporate social responsibility and their
projects in natural disaster relief, education, sports, and caring for aspects of nature,
specifically cherry trees.
Caterpillar’s Cause-Related Marketing Campaign
CATERPILLAR’S BIGGEST THREAT: JOHN DEERE
John Deere is the biggest threat to Caterpillar because it is the second leading
manufacturer of agricultural equipment in the United States. John Deere is as widely
known as CAT, and even though Caterpillar is listed as number one, John Deere has
more locations in Latin America. What John Deere blows CAT out of the water in is
corporate social responsibility.
CATERPILLAR:
JOHN DEERE:
CAT foundation
Kickstart (world hunger)
Matching gifts program
United Way
United Way
Habitat for Humanity
Community Involvement
Big Brother Big Sister
Junior Achievement
John Deere Foundation
As listed above, John Deere is way ahead of Caterpillar in social responsibility and if
Caterpillar expects to keep its position at number one they better rise to the occasion and
expand this list. Part of the thought behind teaming up with Coprodeli is to get Caterpillar
to entrench in more hands on service. John Deere certainly has that aspect covered with
most of their outreach programs and Caterpillar really doesn’t do any more than throw
money at the problem. Caterpillar needs to step up, get down and dirty, and show their
constituencies that they care.
Since John Deere also has more locations in South America, it makes sense for
Caterpillar to keep expanding in that market. By developing a relationship with
Coprodeli it pushes Caterpillar in the direction of service in the new community. It is in
CAT’s best interest to serve and make better the community in which they could
potentially obtain new markets in the future. By establishing themselves as a cultural aid,
helping hand to a nonprofit, and a good neighbor in the global community, people will
Caterpillar’s Cause-Related Marketing Campaign
develop even more trust in the company and the chances of investment will undoubtedly
become more prominent once the constituencies acquire a distinct level of trust with the
company.
In analyzing Caterpillar and John Deere the two companies are fairly similar. They are
successful, based in the United States, in the agricultural equipment industry, and
expanding to South America. The main difference is that John Deere is much more
involved with corporate social responsibility and they also are not in Peru, giving
Caterpillar the opportunity to develop a fresh relationship where their main source of
competition will not exist.
Caterpillar’s Cause-Related Marketing Campaign
Objectives:
Caterpillar’s output objectives:
•
Increase in sales.
•
Increase in media coverage by 15% in the key media targets.
•
Return stock price to its most recent height that it reached in 2004 with Latin
America expansion.
Caterpillar’s outcome objectives:
•
Enhance corporate reputation.
•
Establish a positive reputation in Latin America.
•
Increase favor with the American Hispanic population.
•
Gain a higher level of national and international brand recognition.
•
Increase positive media coverage.
•
Differentiate CAT from its competitors.
•
Raise awareness of Caterpillars expansion in the Latin American market.
•
Raise awareness of CAT’s social responsibility (trust bank).
All of these objectives are interconnected in a ripple effect that are caused by our
strategy, cause-related marketing. It has been proven that cause-related marketing
enhances a corporate reputation, and if done correctly brings media awareness which inturn increases brand awareness. The combination of brand awareness and an enhanced
reputation results in satisfied customers, employees, and overall community.
That
satisfaction has been proven to increase sales and build trust, which turns into higher
stock prices and results in an increase in satisfaction among stockholders. (Freeman,
1984; Fombrun, 1996)
It is necessary for CAT to reach these objectives because in an ever-growing
competitive business world CAT needs to stay on top of the competition. In today’s
society one of the most influential aspects of business is corporate giving. John Deere
has gained higher favor with its public due to its hands-on corporate giving approach.
Latin America is a crucial aspect of the objectives because of the exponential growth that
is occurring in that region along with the estimated growth rate of the Latino population
in America, which has tremendously prospered over the years. In the most recent census
Caterpillar’s Cause-Related Marketing Campaign
report, 35 million Latinos live in the US and it is expected that the population will grow
to 97 million by 2050 (Paradoc, 2007, p 2).
Caterpillar’s Cause-Related Marketing Campaign
Strategies:
In order for CAT to achieve their objectives, they must put in place many
different strategies. Using a marketing public relations plan, the over-arching strategy is
a cause-related marketing; this will incorporate several other strategies:
•
Create an alliance with a Chicago Non-profit Peruvian organization.
•
Service and involvement with Peruvians.
•
Internal branding of employees.
•
Create relationships with local/foreign Hispanic communities.
Creating an alliance with a Chicago non-profit will be the main strategy for the
cause-related marketing plan. This alliance will not only improve our corporate brand
reputation in Peru and Latin America as a whole, but also among the Chicago Hispanic
population. An alliance with the Peruvians was chosen strategically, so that our causerelated marketing plan doesn’t look obviously connected to an increase in profits. This
plan will improve CAT’s overall reputation in Latin America, while laying the
foundation for a favorable relationship with Peru, which could potentially be a future
place of business expansion.
It is crucial to our strategy that there is hands-on service and involvement with
Peruvians. Research from a case study conducted at University of Wisconsin-Madison
shows that to improve corporate reputation through cause-related marketing monetary
donations are not enough anymore. Publics have become more critical of corporate
giving and now as more corporations are utilizing cause-related strategies, and it is
necessary to stand apart from the competition using publicized hands-on community
involvement.
Internal branding of employees is a key element to CAT’s overall strategy
because employee satisfaction with the company they work for increases their
productivity at work and thus increases quality of the products. This helps boost overall
corporate reputation. CAT employees’ hands-on involvement with the alliance in Peru
will not only instill a positive image and increase their sense of pride in CAT, but also
improve the communities’ perception of CAT will improve due to its hands-on helping
approach. The benefits of internal branding are easiest seen in the results that it yields.
“According to the consulting firm Watson Wyatt that did research on employee
Caterpillar’s Cause-Related Marketing Campaign
involvement and satisfaction with their company, employees with “high commitment”
levels had 112 percent three-year returns to shareholders, compared to employees with
“low commitment” which had 76 percent three-year return rates” (Harris & Whalen,
2006, p 105).
Creating relationships with Latino communities in both Latin America and
Chicago is crucial to our strategy because of CAT’s 93,000 employees, only 5,000 are
Hispanic.
As stated in the objectives, the estimated growth rate of the Hispanic
population in the United States will make them an increasingly important audience. CAT
needs to gain favor with this audience as their share of the market increases.
Caterpillar’s Cause-Related Marketing Campaign
Targets:
1. Internal Employees As Caterpillar already has several ways employees can contribute to the
corporation’s effort to be a corporate citizen, employees are one main target
group. As CAT already has the Matching Gift Program where employees can
donate to worthy causes, they can now volunteer their time to help serve the
Peruvian communities Corprodeli serves (www.cat.com).
2. Local Hispanic Community (Chicago) Caterpillar has the opportunity to reach out to the Hispanic community
through this Corprodeli partnership. Engaging in the Hispanic Chicago
community, CAT demonstrates its ability to work on both the global and local
scales. The Hispanic community can appreciate the commitment CAT makes
to be socially responsible.
Currently there are 11.6 million Hispanics in the
United States. Of that, 11.6 million, 1.9 million reside in Chicago. The U.S.
Consensus estimates by 2020, 60 million Hispanics will be living in the U.S.
While the population is growing, the significance of this population is the
economic potential. The Nielsen Media Research predicts that Hispanics will
be at least $1 trillion (1 Schroeder 2006).
3. Media With a public relations campaign, use of the media is a relatively free way
to inform the public. Although social responsible activities should not be
boasted about by corporations, this marketing public relations campaign is a
newsworthy. CAT should be recognized for its effort to work with a reputable
non-profit, Corprodeli, in improving Peruvian communities. Since CAT is
headquartered in Peoria, Illinois, local media outlets within this area should be
contacted. Additionally, Chicago media can acknowledge Corprodeli’s efforts
and let the public know about the great deeds done through this unique
partnership. Trade publications will be contacted because they are very much
interested in doing business with CAT, and readers would value information
about the corporation.
Television Outlets -
Caterpillar’s Cause-Related Marketing Campaign
•
CBS 2, NBC 5, ABC 7, WGN 9, Fox 32, CLTV (Chicago)
•
CNN, Fox News, MSNBC (national)
Radio Outlets •
Chicago Public Radio, 670 AM, 780 AM (Chicago)
•
National Public Radio, Sirius XM (national)
Newspaper Outlets •
Chicago Tribune, Chicago Sun-Times, Daily Herald, Pioneer
Press (Chicago)
•
Wall Street Journal, New York Times, Washington Post (national)
Other •
Trade Publications
4. Stakeholders/ Stockholders As numerous corporate examples demonstrate, social responsible
corporations often improve the financial returns and profits as well as
improving corporate reputation. Stakeholders and stockholders need to be
targeted because they should understand and appreciate how CAT’s efforts to
be a corporate citizen are profitable and reputable. According to CAT’s
website, www.cat.com, an estimated 645 million shares are sold. CAT’s
Vision 2020, which is the corporate mission, emphasizes the corporation’s
commitment to investors. As stated in the mission, CAT’s improving
financial performance goes towards serving the stockholders. Since CAT has
to report to its investors, they are a necessary target.
5. Peruvians CAT will be serving different communities in Peru. Currently, Corprodeli
works with over 50,000 Peruvians. The residents need to be aware and
involved. Informing Peruvians of CAT’s efforts can be beneficial long term.
As CAT continues to spread around the world, and specifically in Latin
America, Peruvians may be potential CAT employees or customers.
Caterpillar’s Cause-Related Marketing Campaign
Messages:
1. Internal employees A. Employees of a socially responsible corporation do not only work to make
money. Rather, employees value the corporate reputation and
commitment to serving global communities.
B. Although monetary contributions are admirable, volunteering time can be
a rewarding experience. The different programs around the world
demonstrate how hundreds of CAT employees are making the world a
better place, and you can be a part of this effort.
2. Local Hispanic Community A. CAT helps serve the local Chicago Hispanic community, the Peruvian
community, and the Latin American community as a whole.
3. Media A. CAT serves as a worthy example of a corporation dedicated to bettering
the lifestyles of Peruvians.
B. CAT is now redirecting their corporate citizen efforts through a unique
hands-on approach, going beyond the simple monetary donations and
matching gifts option.
4. Stockholders A. CAT’s brand will be improved through the association made with the
reputable Corpordeli non-profit organization.
B. Both new CAT customers and old faithful customers will turn to CAT
because of the corporation’s involvement with cause-related marketing.
5. Stakeholders A. CAT will continue to develop quality products at reasonable prices.
B. CAT is an expanding social responsibility department to better serve the
corporate mission of improving communities where CAT does business.
C. CAT is a socially responsible corporation and holds all stakeholders as a
high priority.
6. Peruvians -
Caterpillar’s Cause-Related Marketing Campaign
A. CAT is a socially responsible company.
B. CAT is dedicated to Corprodeli. Through the non-profit organization
partnership, more Peruvian neighborhoods will be better developed.
Caterpillar’s Cause-Related Marketing Campaign
Tactics:
1. Create an alliance with a Chicago based non-profit Peruvian organization.
a. Link up with Coprodeli.
ƒ
Caterpillar wants to link up with Coprodeli because it wants to fulfill
its Corporate Social Responsibility goals and be seen in the eyes of
world as a socially responsible company.
ƒ
Chicago media outlets might pick up this story because of the
proximity of CAT and Coprodeli. Both organizations are local to the
Chicagoland area so reporters in Chicago will be able to find a local
angle.
ƒ
National media outlets might pick up this story because of the
significance CAT’s cause-related marketing link up will have on the
company’s stockholders and stakeholders.
* We will send out a press release to local and national media contacts
2. Service and involvement with Peruvians.
a. Send 5 CAT employees to Peru to work with Coprodeli for one week.
- Won’t count against vacation time.
- CAT literally donates these employees.
ƒ
Caterpillar wants to send employees to do hands on work, so it can
compete with and differentiate itself from competitors like John Deere
through active cause-related marketing.
ƒ
Chicago media outlets might pick up this story because it’s the first
time CAT has ever sent employees to do hands on work around the
Caterpillar’s Cause-Related Marketing Campaign
world. Reporters in Chicago will also be able to find a local angle
because of the proximity of CAT and Coprodeli.
ƒ
National media outlets might also pick up this story because it’s the
first time CAT has ever sent employees to do hands on work around
the world. National reporters could focus newness of CAT’s hands on
approach.
* We will send out a press release to local and national media contacts
b. Sponsor the Peruvian Independence Day Parade.
ƒ
Caterpillar wants to sponsor the Peruvian Independence Day Parade,
so it can connect with local Peruvians in the Chicago, as well as, the
Hispanic community as a whole.
ƒ
Chicago media outlets might pick up this story because it’s the first
time CAT has ever sponsored the Peruvian Independence Day Parade.
Reporters in Chicago will also be able to find a local angle because of
the proximity of CAT and Coprodeli.
ƒ
National media outlets might also pick up this story because it’s the
first time CAT has ever sponsored the Peruvian Independence Day
Parade. National reporters could focus on the fact that there are not
many Peruvian Independence Day Parades around the country.
* We will send out a press release and an online press kit to local and
national media contacts. The online press kit will direct the media
contacts to the parade website.
c. Host a dinner with top ten executives at CAT and the top 30-40
Peruvian leaders in Chicago at the Drake Hotel.
Caterpillar’s Cause-Related Marketing Campaign
ƒ
Caterpillar wants to host a dinner with top CAT executives and top
Peruvian leaders in Chicago in order to connect with local Peruvians in
the Chicago, as well as, the Hispanic community as a whole.
ƒ
Local and national media outlets might pick up this story because of
the significance of a huge, local corporation like CAT meeting with a
successful group of leader from a largely minority group in Chicago.
Reporters in Chicago will also be able to find a local angle because of
the proximity of CAT and Coprodeli.
* We will send out a press release to local and national media contacts
3. Raise awareness of CAT’s expansion to a new market
a. Sponsor a “build-a-home” out of cardboard day in Grant Park.
ƒ
Caterpillar wants to sponsor a “build-a-home” out of cardboard day in
Grant Park, so it increase local awareness of CAT’s efforts in Peru and
with Coprodeli. This event will also get the local Chicagoans involved
in CAT’s mission in Peru.
ƒ
Local and national media outlets might pick up this story because of its
unusualness. Reporters in Chicago will also be able to find a local
angle because of the proximity of CAT and Coprodeli.
b. CAT will pay for the top 5 winners to serve with Coprodeli for a
week.
ƒ
Caterpillar wants to send the 5 winners to Peru to do hands on work
with Coprodeli, so it can get local community members involved and
Caterpillar’s Cause-Related Marketing Campaign
local awareness of CAT’s efforts in Peru and with Coprodeli. This
prize will also give people in Chicago an incentive to get involved.
ƒ
Chicago media outlets might pick up this story because it’s the first
time CAT has ever sent local people from Chicago to do hands on
work around the world. Reporters in Chicago will also be able focus
on the unusualness of the competition in Grant Park.
ƒ
National media outlets might pick up this story because it’s the first
time CAT has ever sent local people from Chicago to do hands on
work around the world. Reporters in Chicago will also be able focus
on the unusualness of the competition in Grant Park.
* We will send out a press release and a VNR to local and national media
contacts
d. Mud volleyball Tournament (East Coast Vs. West Coast) – get down
and dirty.
ƒ
Caterpillar wants to sponsor Mud Volleyball Tournament, so it can
show that its high level executives and CEOs are willing to do more
than just donate money. They are also willing to get hands on and get
down and dirty.
ƒ
Local and national media outlets might pick up this story because of its
unusualness. Reporters in Chicago will also be able to find a local
angle because of the proximity of CAT and Coprodeli, while national
media outlets could focus on the East Coast Vs. West Coast
competition.
Caterpillar’s Cause-Related Marketing Campaign
* We will send out a press release and a VNR to local and national media
contacts
**Although MPR and Advertising are usually separate functions, in this
case we would consider using a paid advertisement or billboard to create
buzz. The advertisement would be a split shot. On the left hand side would
be a CAT CEO in a suit and tie leaning up on a CAT tractor. It would be
juxtaposed with a picture of the same CAT CEO on the right hand side,
with the same CAT tractor. Only this time, the CEO would have his
sleeves rolled up, his tie loosened, and mud on his hands and the tractor
would have mud splattered all over its wheels and body. The only words
would be along the bottom. It would read, “CAT CEOs Know How to Get
Down and Dirty”.
4. Internal branding of CAT employees.
a. Hold seminars during the last week in July (before Peruvian
Independence Day) educating CAT employees on Coprodeli and the
opportunity to serve the communities in Peru.
b. Focus employees on hands on service versus monetary donations.
c. Initial matching gifts program.
ƒ
Caterpillar wants to hold seminars during the last week in July (before
Peruvian Independence Day) to educate its employees on Coprodeli
and the opportunity to serve the communities in Peru, so that all
employees understand the importance of volunteerism and hands on
service.
* We will send out a press release to local and national media contacts
Caterpillar’s Cause-Related Marketing Campaign
5. Raise money for Coprodeli’s efforts in Peru
a. Host a fundraising event in Chicago to raise money
ƒ
Caterpillar wants to host a fundraising event in Chicago in order to
raise money for Coprodeli’s efforts in Peru. This event will also help
connect local people in the Chicago to the cause.
ƒ
Local and national media outlets might pick up this story because it’s
the first time CAT has ever hosted an event of this nature. Also, CAT
hopes to draw many well-known and prominent people to this event.
The media loves to cover events that famous people attend.
* We will send out a press kit including a fact sheet, guest list, press
release, and invitation to all local and key national media contacts
Blue Sky Tactics:
Donate materials to build a community/career center in Peru within 5 years time.
Caterpillar’s Cause-Related Marketing Campaign
Budget:
Budget: $50,000
1. Airfare – To send 5 CAT employees to Peru ($1,200 each)
=
$6,000
2. Sponsor the Peruvian Independence Day Parade
=
$10,000
3. CAT and Peruvian Dinner at Sushi Samba ($70/person)
=
$3,500
4. Build-A-Home Day (Grant Park Reservation and Materials)
=
$6,000
5. Mud Volleyball Tournament
=
$4,000
6. Airfare – 5 Build-A-Home Day Winner to Peru ($1,200 each)
=
$6,000
7. Employee Seminars (Speaker Fees and Materials)
=
$2,250
8. Fundraising Event in Chicago at the Drake Hotel
=
$10,000
=
$2,000
(Food, Alcohol, Entertainment, Venue)
9. Communication Materials/Miscellaneous Expenses
Total Expense
Caterpillar’s Cause-Related Marketing Campaign
=
$49,750
Evaluation:
Output objectives:
•
Increase in sales.
- Analyze sales over one year and compare to last year’s annual sales
•
Increase in media coverage by 15% in the key media targets.
- Count positive media clippings over a 3 month period
•
Return stock price to its most recent height that it reached in 2004 with Latin
America expansion.
- Analyze stock price over one year and compare to 2004’s stock price
Outcome objectives:
•
Enhance corporate reputation.
- Analyze consumer buying patterns over one year’s time and compare
with previous years. Also, use quantitative/qualitative methods such as
consumer interviews and surveys to measure reputation.
•
Establish a positive reputation in Latin America.
- Analyze consumer buying patterns in Latin America over one year’s
time and compare with previous years buying patterns. Also, use
quantitative/qualitative methods such as consumer interviews and surveys
to measure reputation in Latin America.
•
Increase favor with the American Hispanic population.
- Use quantitative/qualitative methods such as consumer interviews and
surveys to measure favor among the American Hispanic population.
•
Gain a higher level of national and international brand recognition.
Caterpillar’s Cause-Related Marketing Campaign
- Analyze sales and stock prices over one year and compare to previous
year’s annual sales and stock prices. Also, use quantitative/qualitative
methods such as consumer interviews and surveys to measure national and
international brand recognition.
•
Increase overall positive media coverage.
- Count positive media clippings over a 2 year period
•
Differentiate CAT from its competitors.
- Watch and analyze what CAT competitors are doing in regards to causerelated marketing efforts and expansion.
•
Raise awareness of Caterpillars expansion in the Latin American market.
- Use quantitative/qualitative methods such as consumer interviews and
surveys to measure awareness of Caterpillars expansion in the Latin
American market.
•
Raise awareness of CAT’s social responsibility (trust bank).
- Use quantitative/qualitative methods such as consumer interviews and
surveys to measure awareness of Caterpillars social responsibility (trust
bank).
Caterpillar’s Cause-Related Marketing Campaign
Stats and Examples:
Why is it good to practice Cause-Related Marketing?
-According to Jessica Stannard-Friel
1. 92% of consumers consider it important for corporations to
contribute to nonprofits.
2. 76% of American consumers surveyed have taken part in at least
one cause-related marketing campaign.
3. 48% of American consumers surveyed reported that, in the past,
they had been motivated by a cause-related marketing campaign to
change brands, use a product more, try new products, or get
information about new products.
4. When surveyed consumers were aware of a given company’s
cause-related marketing efforts, they consistently rated the
company more highly in the categories of trust, endorsement,
bonding, and innovation.
5. A 2003 study of MBA graduates from 11 top American and
European business schools, conducted by professors at Stanford
University and UC Santa Barbara, found that more than 97% of
respondents were willing to give up a certain degree of financial
compensation to work for a company reputed to be socially
responsible and ethical. They would sacrifice an average of 14% of
their expected income.
Other Successful Cause-Related Marketing Campaigns
Caterpillar’s Cause-Related Marketing Campaign
-According to Jessica Stannard-Friel
1. Coca-Cola: In 1997, Coca-Cola donated 15 cents to Mothers
Against Drunk Driving for every case of Coca-Cola bought during
a 6-week promotion in more than 400 Wal-Mart stores. Coke sales
in these stores increased 490% during the promotion.
2. American Express: In 1983, after American Express pledged to
donate a penny to the restoration of the Statue of Liberty for every
transaction made by its cardholders, use of American Express
cards increased by 28% and new users increased by 17%.
3. McDonald’s: In 1994, McDonald’s sold a CD featuring Garth
Brooks, Elton John, and Tina Turner to raise funds for the Ronald
McDonald House Charities. In addition to raising $9 million for
the cause, the promotion increased restaurant sales by 5%.
4. Bayer Aspirin: Bayer Aspirin partnered with the American Stroke
Association (ASA) to create the American Stroke Challenge, an
effort to raise money for the ASA and educate the public about
strokes. During the May 2000 Challenge, Bayer sales increased
9% over the same month the previous year.
Caterpillar’s Cause-Related Marketing Campaign