Brands' investment in the CSR agenda begins to pay off
Corporate social responsibility has come a long way since the days when it meant making an annual donation to the chairman’s favourite charity. Not only are brands embedding sustainability into all parts of their businesses but they are also beginning to get a return on investment by building this into their marketing strategies.
Audi, for example, has found success last year by shifting its marketing focus from luxury and performance to highlighting the energy efficiency of its cars.
Its recent ads, across broadcast and print, have championed technologies such as Start/Stop, which temporarily cuts out the engine when the car is stationary, and recuperation technology that ‘recycles’ energy used in braking. The campaign uses the strapline: ‘Our new more fuel efficient Audis.’
The move has not only cut down on Audi’s carbon footprint but has also benefited its bottom line.
The average new Audi sold last year emits 157g/km of CO2, compared to185g/km in 2007 while over the last 12 months there has been a 10% footfall increase to Audi showrooms.
Furthermore, research by Bartle Bogle Hegarty, the company’s ad agency, showed that the marque’s messaging on efficiency had translated through to enhanced brand perception among consumers.
In the world of B2B marketing, it is clear that if a brand can show it is seCorporate social responsibilityus about carbon reduction this can give it the competitive edge.
Maura Dilley, a researcher for carbon performance firm ENDS Carbon, conducted research among marketing and communication professionals on low carbon marketing. She says her findings indicate that ‘excellent low carbon communication delivers reputational leadership’.
‘Corporate leaders in carbon management, including BT and Logica, indicate that their organisational efforts to reduce carbon have earned them the esteem of their peers and the trust of their clients,’ she reveals.
In most cases getting ROI from sustainable marketing will be a slow burner. One of the most high–profile examples of sustainable marketing is Marks & Spencer’s work on its all–encompassing Plan A, which is now known as ‘Doing the right thing’. Launched in 2006, the 100 point plan focuses on five areas: climate change, waste, sustainable raw materials, fair partnership and health.
While it has made a number of notable quick wins – CO2 emissions reduced by 96,000 tonnes since 2007 and an 80% fall in carrier bag usage to name but a few – M&S is convinced that by 2030 this will result in an improved commercial performance.
John Grant, consultant and author of the Green Marketing Manifesto, says that for the last 30 years marketing has been about chasing new customers, price wars and churn. He argues that not only is this is destructive but it is also misguided as sustained profitability derives from having a loyal customer base.
‘Effective and honest communication of a brand’s environmental credentials will play an important part in developing this loyalty, and thereby delivering profitability and market share,’ he says, adding: ‘The more you look at sustainability through a customer loyalty lens, the more it makes sense for your business.’
