Case study on the cause marketing effort of "Hanes for Good" from HanesBrand Inc. West Virginia University's Integrated Marketing Communication master's program. Spring 2014.
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"Hanes for Good" Case Study
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IMC 624
Cause Marketing
Prof. Furlow
3/7/14
Assignment: Week #9
Case Study: Hanes For Good
Figure 1 Retrieved from facebook.com/hanes
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Introduction
According to a recent NPR report, there are more than 610,000 homeless people living in the
United States, 222,000 of which are family members (Chappell, 2013). We often see charity
programs for donating food to the poor, but another basic necessity that is equally as important
is clothing. Hanesbrand, through its popular sock brand Hanes, works to donate millions of
socks to those in need during the holiday season each year. In partnership with the Salvation
Army and Invisible People, Hanes uses social media to propel its message of #HanesForGood to
provide millions of these products to those in need. In addition to the yearly giving effort,
HanesBrand also participated in other corporate social responsibility work around sustainability
and disaster relief to help improve and maintain its strong reputation while donating time,
efforts and funds towards meaningful and strategic causes.
About the Company
Hanesbrand is one of the most recognized undergarment companies in the U.S. Some of its top
brands include Hanes, Champion, Playtex, Bali, Maidenform, Flexees, JMS/Just My Size, barely
there, Wonderbra and Gear for Sports. The company mainly focuses on the U.S., Canada and
Mexico but also serves some select markets in Europe and Asia as well (Our company, 2014).
The company was founded in 1901 and is based out of Winston-Salem, NC. Hanes sells bras,
panties, hosiery, underwear, socks, t-shirts and activewear. They are the market leader of
intimate apparent. According to its company profile, more than 80% of U.S. households have
Hanes products in them. Innovation has been a primary growth factor for the company as it
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revolutionized tagless t-shirts and underwear and also invented the sports bra (Out company,
2014).
Hanes brings in 4.6 billion annually and it continues to see success in terms of profit. “Shares of
Hanes are up more than 90% in the past year, as the company benefited from the Maidenform
acquisition, lower cotton costs and newer, technical products like its Vapor quick-dry fabric and
Smart Size bras” (Banjo, 2014, pg. 1). With 51,500 employees across 25 countries, Hanes is
listed at Number 512 on the list of Fortune 1000 companies (Our company, 2014). Hanes uses
its size, in terms of both reputation and employees, to partner with a number of non-profit to
push its social initiatives. Specifically, its recent partnerships with the Salvation Army and
Invisible People have become a primary focus, especially during the holidays. This work, in turn,
helps to improve its reputation and assist in long-term sales growth.
About the Cause
Hanes has worked hard in recent years, devoting both time and money to its ethical business
initiatives. Dubbed “Hanes for Good,” the company participates in a number of strategic cause-
related efforts that reflect its mission and brand positioning. According to its company bio,
Hanes is a U.S. Environmental Protection Agency Energy Star winner for 2013 as well as being
U.S. Green Building Council certified. In fact, Newsweek named the company on the list of Top
500 greenest U.S. companies for its work towards reducing energy use, carbon emissions and
water use for a more sustainable environment. The company has also devoted much work
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towards corporate philanthropy to improve the communities across the world where it has
offices and facilities (Our company, 2013).
One of Hanesbrand’s biggest cause-related campaigns each year is its partnership with the
Salvation Army and Invisible People to supply the homeless with Hanes socks. The Salvation
Army, founded in the late 1800s, is the second largest charity in the U.S. (only behind the
United Way) and serves a variety of community members in need of food, clothing and shelter
(The Salvation Army, 2013). Meanwhile, Invisible People is a non-profit that was started in just
2008 by Mark Horvath, a former homeless individual who became devoted to giving homeless
individuals in America a voice. By using video, blogging and social media, the non-profit works
to raise awareness of the homeless issues in our country while also raising funds at the same
time (About, 2013). By strategically teaming with these organizations, Hanes is able to latch
onto a very large organization (Salvation Army) while also helping promote a smaller, up-and-
coming non-profit (Invisible People). At the same time, both groups are tied closely to Hanes’
initiative to reach the homeless with its sock products, a much-need and requested items
among these needy individuals. In turn, this reflects positively in the eyes of its consumers.
Hanes is America’s No. 1 sock brand. Based on this feat (pun intended), it chooses to spread
holiday comfort and cheer by donating 250,000 pairs of socks to the homeless in various
homeless shelters in New York and California. The socks are distributed by The Salvation Army,
with marketing support from Invisible People (Hanes Celebrates The Holiday Season, 2013, pg.
1). This past winter was the fifth year that Hanes embarked on this campaign and it has been
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increasingly tying social media to its cause. “Over the past five years, Hanes has donated 2.7
million socks to the needy at the holidays…To share a story about providing comfort this
holiday season or join the conversation, follow #HanesforGood throughout the holiday season”
(Hanes Celebrates The Holiday Season, 2013, pg. 1). Overall, Hanes is very progressive in the
marketing of its social initiatives. This includes its more CSR-focused campaigns related to the
environment and sustainability, as well as its annual consumer-oriented cause in giving socks to
homeless people.
Cause Marketing Tactics
Hanes manages a number of marketing tactics to help promote its cause-related initiatives. The
first is a website devoted solely to the efforts. The easily recalled URL, hanesforgood.com, fits
the overarching name of their goodwill efforts. The site features facts, videos and articles to
inform key publics about their environmental and social campaigns. This acts as a “homebase”
for all the work that they do. They leverage this through online communication and drive end
users and stakeholders here to learn more about their causes. Press releases are one prime
example that link to this site.
Secondly, Hanes is keen on using social media to further the reach of its cause-related efforts.
Author and lawyer Andrew Grumet shares his insight into the benefits of new media in assisting
with social initiatives. “Cause-related marketing programs are constantly evolving, particularly
since the development of the internet. Creative companies have, with increasing frequency,
designed new programs incorporating the web and social media to motivate participation”
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(Grumet, 2013, pg. 1). Hanes utilizes a combination of Facebook, Twitter and YouTube to
promote its causes, most especially its sock drive. By using the hashtag #HanesForGood, it can
monitor and interact with social media users who are getting involved in discussion, asking
questions or praising the efforts. Specifically, they’ve posted pictures of homeless individuals
during the campaign. Tagged with #HanesForGood, the caption includes a quote from the
people about their experiences and challenges. The photos have generated thousands of likes
and comments (Hanes, 2013). “What's so amazing, and what makes this a genuine cause
campaign, is there is no commercial anything attached. Hanes is just giving the socks
away…Plus, Hanes created a social media campaign that showed real homeless numbers and
helped share the stories of real people experiencing homelessness” (Horvath, 2013, pg. 1).
Finally, Hanes incorporates media outreach and public relations into its efforts to raise
awareness for the cause and help strengthen its image. Not only does Hanes itself engage in
media outreach, but it relies on its partners the Salvation Army and Invisible People to do the
same. In fact, the two non-profits write their own blog posts and post their videos, respectively,
which are picked up by third party sources and shared on the social web. Media sites, like
Huffington Post, as well as various online bloggers have covered the campaign and wrote about
the company’s support for homelessness relief. One blogger, Megan, wrote: “Even though folks
served by The Salvation Army may have greater needs such as shelter or food, they consistently
get excited when offered a new pair of socks. Because honestly, nothing feels as good as a new
pair, especially for someone used to wearing damaged, dirty or no socks at all” (Megan
(blogger), 2013), pg. 1).
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Moreover, Invisible People’s founder and spokesperson, Mark Horvath, guest blogs for some
online outlets, sharing his experiences with being homeless while also plugging Hanes’
campaign. “I’ve been homeless myself…Socks are like gold to the homeless. Most people don’t
think about having cleans socks. We take it for granted…Socks are the most requested but least
donated item needed at shelters” (Waters, 2013, pg. 1). These media hits help push the
message for the sock campaign and help consumers connect Hanes with this cause. Hanes
distributes press releases before and after the holiday season in connection to the campaign, as
well as using public relations work to promote its sustainability and volunteer programs
throughout the year.
Charity Giving
In addition to its planned social initiatives, Hanes has also been quick to react to current events
with charity giving that is in line with its mission. After Hurricane Sandy, which left thousands
stranded outside of their homes without food and clothing, Hanes responded with efforts
similar to its annual sock giving. “HanesBrands partnered with Fashion Delivers to provide more
than $1 million worth of apparel to the regions most affected by the storm. Fashion Delivers is a
New York-based nonprofit organization that distributes apparel and home furnishings to victims
of natural disasters around the world” (Hanes and the Salvation Army, 2012, pg. 1). This move
by the company helped strengthen its image, while demonstrating more authenticity and
passion when it comes to helping those in need.
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Volunteer Efforts
In addition to its corporate social responsibility efforts, Hanes also integrates employee
development and employee volunteerism within its cause-related efforts. “Each year,
Hanesbrands and its employees support a number of educational initiatives that improve the
lives of children by volunteering their time in local schools. For example, each year, more than
60 Hanesbrands employees volunteer at Carver High School in our hometown of Winston-
Salem, N.C.” (Employee development, 2013, pg. 1). Through the volunteer programs, Hanes not
only gives back and helps educate local students in its communities, but camaraderie is built
throughout the company and the goodwill effort is able to be used within public relations
programs, helping to continue enhancing corporate image. “These programs help to build
brand awareness and affinity, while strengthening trust and loyalty among customers. They put
a human face on the company, reinforcing the idea that the company is comprised of real
people that just happen to be organized around a particular product or service…Employees that
volunteer tend to experience greater job satisfaction, and improved morale (Siegel, 2012, pg.
1). In addition, Hanesbrand pays for many of its employees overseas to return to school to earn
their diplomas, as well as working with students in the North Carolina area (where its
headquarters are based) as mentors to aspiring textile scientists (Employee development, 2013,
pg. 1).
Recommendations
“Developed and executed correctly, cause branding is a strategy to differentiate a brand from
its competitors and positively impact a brand’s corporate reputation” (Rama, 2011, pg. 44).
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Although Hanes does a nice job at working in sustainability within its business practices and
operations, while also engaging in a number of employee programs and charity given, there are
several ways it can improve its cause-related marketing activities. The first is a corporate driven
recommendation. Although sustainability and environmental consciousness are great causes,
they aren’t too closely aligned with Hanes and its products. Instead, Hanes should focus more
on causes like its sock drive with the Salvation Army and Invisible People. Rather than just
making this a holiday special, Hanes could build this out to become its primary ongoing cause all
year long. By contributing regularly, Hanes could enhance the level of press mentions and social
media buzz surrounding the campaign, and affect more homeless people at the same time.
Additionally, it could get consumers involved through a BOGO effort (Buy One Give One), where
for every sock order placed online through its website, it will donate a package of socks to
homeless charities. This would allow more customers to get involved and play a role within the
campaign. At the same time, Hanes could form an even closer partnership with the Salvation
Army and invisible People and work to develop content, like videos and blog posts, which speak
to the cause and help further the reach of the non-profits’ messages. Eventually, Hanes would
be tied seamlessly to the cause of fighting homelessness in America, a much more strategic
cause that environment friendliness.
Secondly, Hanes should look to the market for ways to adjust and improve upon its current
campaigns. According to Forbes, there are roughly 80 million Americans who belong to the
millennial generation, ages 18-35, who are expected to become the largest demographic in the
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workforce by 2020. A Pew Research Center study found that millennials place high priority on
helping those in need, even more than high paying jobs. They value committees and like using
company time to do good (Goudreau, 2013). With that market data, Hanes should focus its
causes on efforts where millennials can relate. This could be a volunteer program where
employees can hand deliver the free socks to the local charities, or an employee support
program where workers can turn vacation time into dollars that are donated towards the
cause. By reacting to the changing landscape and demographics of the workforce, Hanes can
develop initiatives that are long-lasting and can be executed for many years to come. This can
also play a role in recruitment, helping to bring in quality employees into the company.
Conclusion
Hanesbrand boasts some of the best-selling undergarment products in the country. But its
marketing doesn’t solely revolve around TV commercials and an endorsement with NBA legend
Michael Jordan. The large corporation also participates in cause marketing initiatives to
strengthen its image and boost sales in the long term. Through both environmental and social
efforts, Hanes ties itself to large societal causes while making strides to make a difference.
More specifically, each year the brand makes an effort to donate hundreds of thousands of
socks to the homeless in a strategically executed campaign tied to social media and non-profit
partners Salvation Army and Invisible People. The yearly campaign has helped raise awareness
for the homeless in our country while providing millions with much-needed holiday gifts.
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Sources
About. (2013). InsvisiblePeople.org. Retrieved on March 3, 2014 from
http://invisiblepeople.tv/blog/about/
Banjo, S. (2014, February 27). Hanes ready to try on more deals. Wall Street Journal. Retrieved
on March 1, 2014 from http://blogs.wsj.com/moneybeat/2014/02/27/hanes-ready-to-
try-on-more-deals/
Chappell, B. (2013, November 21). Number of homeless declines again, but gains aren’t
universal. NPR. Retrieved on February 24, 2014 from http://www.npr.org/blogs/thetwo-
way/2013/11/21/246589487/number-of-homeless-declines-again-but-gains-arent-
universal
Employee development. (2013). Hanesbrandcsr.com. Retrieved on March 3, 2014 from
http://www.hanesbrandscsr.com/employee-development.html
Goudreau, J. (2013, March 7). 7 surprising ways to motivate Millennial workers. Forbes.
Retrieved on March 6, 2014 from
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motivate-millennial-workers/
Grumet, A. (2013, Mar/Apr). Cause marketing done right. Corporate Board, Vol. 34, Issue 199.
Retrieved on March 1, 2014 from EbscoHost Research Databases
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Hanes Celebrates The Holiday Season By Donating Half A Million Socks To Charities Helping
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Horvath, M. (2013, December 22). Coke gave us Santa, Hanes is helping to fight homelessness.
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Megan (blogger). (2013, December 11). Hanes sock donation warms the hearts & feets of
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