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Social Change To Build Brands




                                            Bruce Gerth
                                            Friday – May 11, 2012




Business and Environment Series
Embedded Sustainability
Effect Partners

EFFECT is a pioneer and strategic
thought leader in sustainability driven
marketing.

Since 1990, we have orchestrated
movements that engage consumers
and inspire positive societal change
while delivering business results for
our clients

We are committed to helping brands
pursue a shared value model and are
proud of our accomplishments through
a varied portfolio of leading brands.

Our efforts have helped shape and
create sustainable marketing
programs, platforms and innovative
campaigns in CPG, the Natural &
Organic Industry, entertainment, retail,
energy services, and NGO sectors.



        Effect Partners 2012
Shared Value Strategy Philosophy


    Companies must take the lead in bringing business
    and society back together.The recognition is there among
    sophisticated business and thought leaders, and promising elements of a new
    model are emerging. Yet we still lack an overall framework for guiding these
    efforts, and most companies remain stuck in a “social responsibility” mind-set
    in which societal issues are at the periphery, not the core.

    The solution lies in the principle of shared value, which
    involves creating economic value in a way that also creates value for society
    by addressing its needs and challenges. Businesses
                                          must
    reconnect company success with social progress.
    Shared value is not social responsibility, philanthropy, or even sustainability,
    but a new way to achieve economic success.It is not on the
    margin of what companies do but at the center. We believe that it can give rise
    to the next             major transformation of business thinking.
    Michael E. Porter is the Bishop William Lawrence University Professor at Harvard University.




     Effect Partners 2012
It is not tags or labels…




                                      or   LABELS




                  or certifications


                                 or Green Marketing
     Effect Partners 2012
It is not sponsorship




    It is not about
    sponsoring the
    baby…




     Effect Partners 2012
It is about engagement at the core




 It is about directly
 addressing the issues
 that can or will affect the
 baby.




     Effect Partners 2012
It is not about philanthropy




 Efforts must have positive ROI
 and go beyond philanthropy to
 extend to a more sustainable
 along term capacity.




     Effect Partners 2012
Embedding is teaching, involving and engaging…?



                           The premise is not really new.




                 "Tell me and I’ll forget; show me and I may
                 remember; involve me and I’ll understand.”
                 – Chinese Proverbs




    Effect Partners 2012
Why




Social Media has created a new
level of transparency. It is
now, more than ever easier to look
into the soul of a company.




 The Kashi
                                     With the challenges,
 GMO
                                     social change also
 Experience
                                     presents new
                                     opportunities.




   Effect Partners 2012
Why




        Today’s marketplace and technology
        has altered the traditional
        gravitational pull of the marketing
        funnel.

        A deeper engagement is needed to
        maintain the force of movement
        through the funnel.




      Effect Partners 2012
Why


46% wouldn’t invest in a company
they don't believe is acting responsibly

             40% of respondents say their organizations have
             changed their business models as a result of
             sustainability.
                                       72% expect corporations to take
                                       actions to preserve and sustain the
                                       environment




                         64% of consumers believe it is no longer enough for
                         corporations to give money; they must integrate good
                         causes into their everyday business.

  Effect Partners 2012
Why




  Effect Partners 2012
Marketing




Effect Partners 2012
                                                  Integrate the Silos




                            Public Relations




                       Community & Government
                             Relations




                       Corporate Responsibility




                          Brand Management




                                Sales




                          Human Resources
Marketing needs to lead the charge




    Effect Partners 2012
Process Flow
                                        Brand
                                                                            Business
                                       Culture &
                                                                            Objectives
                                        Intent


                                                     Shared Value
                                                       Strategy



                                             Value Engagement Platform




                             Company                  Stakeholders                       Consumers
                                                     Internal & External




                                                      Campaigns



  Partnerships                                                                                       Retail
                             Traditional       Digital /
                                                                           PR        Social Media
                               Media           Mobile
     Effect Partners 2012
      Effect Partners 2012
ROI view
                                             Shared Value
To be                                         Campaign
sustainable, effo
rts must have
positive ROI in
both the short                 Internal                       External
term and long
term.
                             Engagement                     Brand Loyalty


                                                              Societal
                             Productivity
                                                              Impact


                             Innovation                        Sales




                                          Short Term Objectives
                                            Long Term Equity


     Effect Partners 2012
      Effect Partners 2012
Embedding a Brand




Waste less today,
For a wasteless
tomorrow.




    Effect Partners 2012
Internally

 Innovation reduced landfill impact by 140 million bags




   Employees engaged in
   active waste diversion
   programs.


                     Embraced corporate wide
                     at shareholder, stakeholder
                     and sales events.


       Effect Partners 2012
Externally                   Consumer, Partner & NGO
                             Alignments




     One Bag Platform
   Engagement across all
        Channels




                              Influencer Positioning




 Consumer facing
 digital




                                        Heritage
                                        Relationships
      Effect Partners 2012
Ooops….

                            Bottled water     Plastic throw aways
                                              as giveaways




                                   Coffee ?

                                                   Not Recycling




  Not using recycling
  paper or inks.


                                                           We’ve gone
                                                           green…
     Effect Partners 2012
Thank You




                             Thank You

                             Feel free to contact me directly should you have
                             questions or want to have a cup of coffee and a
                             conversation.
 4208 Park Glen Road
Minneapolis, MN 55416
                             Bruce Gerth
   (952) 426-7800
www.effectpartners.com       (952) 426-7814 direct
                             bruce@effectpartners.com




      Effect Partners 2012

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Business and Environment Series: Gerth - Social Change to Build Brands

  • 1. Social Change To Build Brands Bruce Gerth Friday – May 11, 2012 Business and Environment Series Embedded Sustainability
  • 2. Effect Partners EFFECT is a pioneer and strategic thought leader in sustainability driven marketing. Since 1990, we have orchestrated movements that engage consumers and inspire positive societal change while delivering business results for our clients We are committed to helping brands pursue a shared value model and are proud of our accomplishments through a varied portfolio of leading brands. Our efforts have helped shape and create sustainable marketing programs, platforms and innovative campaigns in CPG, the Natural & Organic Industry, entertainment, retail, energy services, and NGO sectors. Effect Partners 2012
  • 3. Shared Value Strategy Philosophy Companies must take the lead in bringing business and society back together.The recognition is there among sophisticated business and thought leaders, and promising elements of a new model are emerging. Yet we still lack an overall framework for guiding these efforts, and most companies remain stuck in a “social responsibility” mind-set in which societal issues are at the periphery, not the core. The solution lies in the principle of shared value, which involves creating economic value in a way that also creates value for society by addressing its needs and challenges. Businesses must reconnect company success with social progress. Shared value is not social responsibility, philanthropy, or even sustainability, but a new way to achieve economic success.It is not on the margin of what companies do but at the center. We believe that it can give rise to the next major transformation of business thinking. Michael E. Porter is the Bishop William Lawrence University Professor at Harvard University. Effect Partners 2012
  • 4. It is not tags or labels… or LABELS or certifications or Green Marketing Effect Partners 2012
  • 5. It is not sponsorship It is not about sponsoring the baby… Effect Partners 2012
  • 6. It is about engagement at the core It is about directly addressing the issues that can or will affect the baby. Effect Partners 2012
  • 7. It is not about philanthropy Efforts must have positive ROI and go beyond philanthropy to extend to a more sustainable along term capacity. Effect Partners 2012
  • 8. Embedding is teaching, involving and engaging…? The premise is not really new. "Tell me and I’ll forget; show me and I may remember; involve me and I’ll understand.” – Chinese Proverbs Effect Partners 2012
  • 9. Why Social Media has created a new level of transparency. It is now, more than ever easier to look into the soul of a company. The Kashi With the challenges, GMO social change also Experience presents new opportunities. Effect Partners 2012
  • 10. Why Today’s marketplace and technology has altered the traditional gravitational pull of the marketing funnel. A deeper engagement is needed to maintain the force of movement through the funnel. Effect Partners 2012
  • 11. Why 46% wouldn’t invest in a company they don't believe is acting responsibly 40% of respondents say their organizations have changed their business models as a result of sustainability. 72% expect corporations to take actions to preserve and sustain the environment 64% of consumers believe it is no longer enough for corporations to give money; they must integrate good causes into their everyday business. Effect Partners 2012
  • 12. Why Effect Partners 2012
  • 13. Marketing Effect Partners 2012 Integrate the Silos Public Relations Community & Government Relations Corporate Responsibility Brand Management Sales Human Resources
  • 14. Marketing needs to lead the charge Effect Partners 2012
  • 15. Process Flow Brand Business Culture & Objectives Intent Shared Value Strategy Value Engagement Platform Company Stakeholders Consumers Internal & External Campaigns Partnerships Retail Traditional Digital / PR Social Media Media Mobile Effect Partners 2012 Effect Partners 2012
  • 16. ROI view Shared Value To be Campaign sustainable, effo rts must have positive ROI in both the short Internal External term and long term. Engagement Brand Loyalty Societal Productivity Impact Innovation Sales Short Term Objectives Long Term Equity Effect Partners 2012 Effect Partners 2012
  • 17. Embedding a Brand Waste less today, For a wasteless tomorrow. Effect Partners 2012
  • 18. Internally Innovation reduced landfill impact by 140 million bags Employees engaged in active waste diversion programs. Embraced corporate wide at shareholder, stakeholder and sales events. Effect Partners 2012
  • 19. Externally Consumer, Partner & NGO Alignments One Bag Platform Engagement across all Channels Influencer Positioning Consumer facing digital Heritage Relationships Effect Partners 2012
  • 20. Ooops…. Bottled water Plastic throw aways as giveaways Coffee ? Not Recycling Not using recycling paper or inks. We’ve gone green… Effect Partners 2012
  • 21. Thank You Thank You Feel free to contact me directly should you have questions or want to have a cup of coffee and a conversation. 4208 Park Glen Road Minneapolis, MN 55416 Bruce Gerth (952) 426-7800 www.effectpartners.com (952) 426-7814 direct bruce@effectpartners.com Effect Partners 2012