csr & cause market study of india-2015

20
I Impact India Partners CSR & Cause Market Study of India - 2015 iii CSR Strategy & Execution | NGO Marketing & Communication 1

Upload: onkar-kishan-khullar

Post on 16-Jul-2015

1.690 views

Category:

Marketing


0 download

TRANSCRIPT

Page 1: CSR & Cause Market Study of India-2015

I Impact India Partners CSR & Cause

Market Study of India - 2015

iii  CSR Strategy & Execution | NGO Marketing & Communication

1  

Page 2: CSR & Cause Market Study of India-2015

Table of Contents

Message IntroductionRole of Business in Society Cause Market CommunicationConsumer Behaviour Laboratory Analysis•  Generation I•  Real Target Audience•  Chain Reaction

34569

12 141516171819

Sample Demographics About I Impact India Partners

2  CSR & Cause Market Study of India-2015

Page 3: CSR & Cause Market Study of India-2015

Your message needs to believed, not just communicated !

CSR & Cause Market Study of India-2015

CSR came into the mainframe only a few years back, and has influenced the purchasing behavior of the Indian consumer to quite an extent. In this digital age, Indian consumers are more aware than they have ever. been When they buy a product, they buy the story behind it and not just the product. According to Hindu mythology, one must donate 10% of one’s earnings towards charity, CSR works on parallel lines. It is the consumer’s belief that the corporates, in some way or the other, must give back to the society they operate in. It is not just about standing for a social and environmental issue, it’s about measuring progress towards complete solutions. The new millennials, the needs and demands of the next generation of consumers and donors have to be recognized in order to build a stronger cause for mission. This report aims at giving crucial insights to corporates, non-profits, consultants and practitioners about how these corporate houses can mold their strategies for better and sustainable impacts.

In 2009, we realized that cause marketing as a concept was gradually coming to India. A lot of MNC’s like Airtel, HUL, P&G etc. had started implementing their international best practices of Corporate Social Responsibility (CSR). The movement got stronger with the Indian government bringing the Companies Bill 2013 , Clause 135 into action in 2013. With the first year of implementation of mandatory CSR successfully coming to an end, we planned to take a comprehensive consumer feedback on cause market and CSR. The aim was to know how the CSR initiatives taken up by a brand change the consumer’s perception about the brand.  

Onkar Kishan Khullar | Managing Partner , I Impact India Partners 3  

Page 4: CSR & Cause Market Study of India-2015

Consumers are buying causes and not products

4  CSR & Cause Market Study of India-2015

When a consumer in India prefers to buy a Classmate notebook over those of other brands, it is because he feels that 1 Rupee will go to a child’s education. Therefore, he is not only buying the product, but also the cause behind it. The product aligned with CSR can always build a stronger cause for mission. The cause or the NGO associated with the brand’s CSR also strengthens the consumer’s belief in it.

Similarly, taking the cause of ‘saving electricity’, if consumers start buying products which save electricity even if they are priced higher, the sole reason would not be saving on cost, but also saving electricity. Indian consumers are 34% more likely to pay a premium for products if the products are eco-friendly

Page 5: CSR & Cause Market Study of India-2015

54321

13%  6%  20%  

35%  26%  

5  

Role of Business in Society

A consumer’s take on what they think is the role of the business, can vary significantly. It is important for a brand to understand what their target audience feels is the ideal role of a business in the Indian society. The following 5 roles have been identified:-

1.  Businesses should support larger social or environmental issues by donating products or services, money or volunteering,

2.  Businesses should not only support but advocate for change in larger social or environmental issues by increasing awareness of the issue and donating products or services, money or volunteering,

3.  Businesses should change the way they operate to align with greater social and environmental needs,

4.  Businesses exist to make money for shareholders and are not responsible for supporting social or environmental issues,

5.  Businesses may play a limited role in the communities in which they operate, but are not necessarily responsible for supporting social or environmental issues.

Every brand has a different target segment and therefore the expectations of these target groups are also different. Similarly, the role that Indians expect

the businesses to play in the society will also vary significantly. It is not just about writing the cheque, it is about investing that money.

CSR & Cause Market Study of India-2015

Page 6: CSR & Cause Market Study of India-2015

Cause Market

6  CSR & Cause Market Study of India-2015

Selecting a cause can be a big task for corporates. This is because the cause needs to align with a lot of things like stakeholder expectations, company’s product/services, core values, areas of operation, team composition, employee expectations, causes selected by the competitors and most importantly, the cause the target market wants them to address.

Causes for corporates can be broken down in 4 types:-

•  Core Competency•  Geographic Location•  Target Audience Based•  Close to the Heart

In this segment of research, we have tried to find out one cause that the consumers want the corporates to address on priority. There are high possibilities that a lot of consumers may not want corporates to look into causes like Old Age, thinking of individual donations to be sufficient for such causes. They might feel that corporates must invest their money in those areas of the society where huge amounts of social investment is required. It is therefore, safer for firms to first study the cause market to understand the dynamics of the causes involved, and then try to align them with its values and product/service.

Page 7: CSR & Cause Market Study of India-2015

12%  15%  

21%  

12%  

17%  

4%  6%  

13%  

Education

13%  

4%6%  

12%  

17%  

21%  

15%  

12%  

Old Age Children Health & Disease

EmploymentWomenPoverty Environment Education

7  CSR & Cause Market Study of India-2015

Cause the Consumers wants Companies to Address on Priority

Page 8: CSR & Cause Market Study of India-2015

Which issues to focus on?

35%  

45%  

20%  International

National

Local

Who creates the Impact?

Businesses

Individuals

37%

63%

45% Indians want corporates to focus on national issues.

8  CSR & Cause Market Study of India-2015

Page 9: CSR & Cause Market Study of India-2015

Communication

Source:  Google  Top  Charts  2014  9  

CSR & Cause Market Study of India-2015

The research has looked at communication through 3 different perspectives:-

1)  Level of awareness about CSR amongst the consumers2)  Most effective medium of communicating CSR to consumers3)  Effectiveness of CSR communication4)  Use of Social Media in communication of CSR

Communicating CSR should not just be a strategic part of the activity because a tangible impact in the society created by a specific brand will not only resonate but also inspire people. Companies can take initiatives wherein they can take the support of their customers to create an impact.

India as a country by now, has a reached a stage where a lot of consumers want to be part of a social activity and do their bit for the society. However, the problems lies in the fact that they do not get to know about such activities. Therefore, communication of CSR activities is a major and vital part of the entire exercise. ALS ice Bucket Challenge was not a CSR initiative but a fundraising campaign for a social cause. It is evident from this campaign that activities in the social sector can also be fun and quirky. ALS became the 5th most searched word on Google globally. People now, not only want to be a part of a social campaign but are also keen on sharing it with the society. But the cause needs to be effective.

Page 10: CSR & Cause Market Study of India-2015

How many CSR activities are consumers aware of?

71%  

0 – 5

6- 9

10 & Above

18%  

11%

Most effective medium of communicating CSR

Social Media Channels

In-Store Promotion

Sponsored Events

Company Website

Media 

Product Packaging

26%

Mail & Mobile Phone

23%

15%

9%

3%

6%

7%

15%Advertising

10  CSR & Cause Market Study of India-2015

Page 11: CSR & Cause Market Study of India-2015

How do consumers use social media with respect to CSR?

How many causes should a corporate support?

Key Takeaway : Make sure the TG is not Confused

46% 31%

23%

One Cause

Two-Three Cause

‘N’ number of causes

Contribute directly to a campaign led by a firm30%

Share information about the positive impact a firm is making 26%

Make others join the cause of the corporate

Inform people about an unethical act of a firm20%

18%

6% Get more information about the firm and it’s activities

11  CSR & Cause Market Study of India-2015

Page 12: CSR & Cause Market Study of India-2015

Consumer Behavior Towards CSR

12  CSR & Cause Market Study of India-2015

Corporate Social Responsibility not only impacts the society directly through investment in social causes, but also leaves an indirect impact on the consumer’s mindset. The change in the purchasing behavior of the consumer is based on the company’s CSR activities. People tend to buy products which have a social value attached to them and boycott products which contribute negatively towards the society. Consumer perception, whether positive or negative, depends on the work the brand carries out. Taking the example of Uber Cabs, when a woman was raped by the cab driver last year, the entire nation stood for the rights and safety of women by boycotting the app-based taxi service. However, when the company accepted their mistake and tried to rectify it by employing female drivers as a step towards empowering women, consumers’ faith in the brand began to restore. In this segment, research aims at showing how Indian consumer behavior changes in response to the activities and CSR initiatives a brand undertakes.

Page 13: CSR & Cause Market Study of India-2015

Given a Feedback to a company about it’s CSR efforts

Consumer Behavior

45 % Bought a product with a social benefit  

Made a Donation 63 % Volunteered 43 %

23 % Shared a CSR initiative Online/Offline 33 %

Boycotted a Socially Irresponsible firm 40 % Researched about a company’s CSR 47 %

( in the past 12 months)

13  

Willingness of consumers to switch brands to one that is associated with a good cause? ( Given similar price and quality)

57%23% 20%

No Maybe Yes

CSR & Cause Market Study of India-2015

Page 14: CSR & Cause Market Study of India-2015

Laboratory Analysis

14  CSR & Cause Market Study of India-2015

Page 15: CSR & Cause Market Study of India-2015

The Generation ‘ i ‘ Facts Our Take In India, Generation C refers to people between the age of 18-40 years who are mostly seen addicted to technology like mobile phone, tablet, laptop, iPod etc. These people are always on the move and are connected with technology. They are aware of what is going on nationally as well as internationally. They believe in spreading awareness through social media and like to know what new is happening around them. They demand high level of professionalism and ethical behavior from corporates, especially in the area of Corporate Social Responsibility. This target segment has two important roles to play:

1)  They are the enthusiastic promoters (online/ offline) and are inclined towards brands which are contributing positively towards the society, only if they know about it and believe in it.

2)  For social causes, in terms of donation, they influence the decision makers of the family.\

These people might not be the direct audience to non-profits/foundations/social enterprises, but they are the right ones to target if such organizations are looking for sustainability in the long term, since they might prove to be potential donors. Currently, the role they play is of spreading awareness about a brand in their family, peer group, neighbors, etc. and the positive impact it is making through its CSR initiatives.

This target segment responds highly to guerilla marketing combined with cause related marketing efforts. 45% of these people have bought a product with CSR benefit in the last 12 months. This shows their sensitivity towards social issues.

This target segment is brand loyal and consists of new age earners who are spendthrifts.

They are in the initial phase of identifying themselves. They are trying to select brands which somehow, define them and would therefore, stay with them for the rest of their lives. Hence, in the present scenario, every brand has to target this segment and make it inclined towards itself. The corporates need to engage these people through the right medium and send the right message out to them to catch their attention. Companies need to utilize the potential of this target group in the best possible way, in order to achieve their CSR goals through effective collaborations. However, unleashing this segment’s potential is going to be a humungous task for any corporate! The message which needs to go to this Target Group has to essentially be Simple, Loud and Clear. In India, there are 16,000 companies liable under the Companies Act to carry out CSR initiatives along with about 75 lakh NGOs. Therefore, the major cause of concern is how to break the barrier in terms of communication, to be able to positively influence the consumer’s mindset. It is all about setting yourself apart from the crowd, even if it involves spending some extra pennies!

37% more responsive to Cause Related Marketing

ü  Women Safetyü  Environment ü  Education

45% bought products with CSR benefit

Want to engage on Social Media

Short Attention Span

15  CSR & Cause Market Study of India-2015

Page 16: CSR & Cause Market Study of India-2015

Real Target Audience Facts Our Take Believe in Social Investment rather than Social Responsibility

ü  Childrenü  Skill

Developmentü  Education

Want high credibility of the NGO they support

Relationship with NGO is major factor

63% increase in donation after CSR Bill

16  

The real donor base in India starts at the age of 40. Being heads of the CSR committees in corporate houses, these people are the ones who call the shots in terms of deciding what causes to support and how. They are not up-to-date, as far as technology is concerned, however, know the importance of it in today’s fast paced life. They are the decision makers in case of individual donations as-well. This segment of the society does not study in detail about how the social sector works. This understanding comes naturally to them based on life experience. For them ‘trust and relationships’ are vital. They like to get associated with NGO’s that have good credibility in the social sector. They are receptive towards newer forms of non-profits. When it comes to communication mediums, promotion and advertisement of the product are the two ways through which these people get to know about the company’s CSR activities. They generally do not share content on social media but definitely spread the word through word-of-mouth publicity. The major causes they focus on are Education, Skill Development and Environment. They believe that betterment of the society in terms of these three areas shall definitely change the face of Indian economy since a solution to the combination of all three would reach the root of all societal problems in India. They focus on ending the vicious cycle of the Indian society wherein the son of a rikshaw puller inevitably becomes a rickshaw puller.

More than being brand conscious, this segment of the target group is more concerned and conscious about the relationships they build through their professional journey.This aspect of the way they function does not just pertain to the corporate side of the company, but is of equal importance for the NGO partnerships they undertake for the CSR initiatives of their organizations. Therefore, to grab their attention, an NGO or a corporate must be highly trustworthy along with being high on its credibility factor. For this booming and powerful segment, relationships are a vital element of any decision making process. They may be old school with heir methods being conventional, but their managerial skills are tried and tested.

They may not be seen participating directly in social initiatives very often, but they are more than keen on contributing in monetary terms personally as well as professionally for initiatives that could do the slightest of good to the society in any possible manner.Transparency in all the processes of the NGO or the CSR initiative is a must since this segment of the target group is very well aware of the Indian market being plagued with black money and corruption. In short, they are street smart!

CSR & Cause Market Study of India-2015

Page 17: CSR & Cause Market Study of India-2015

The Chain Reaction

Generation ‘ i ‘

Real Donor

NGO/ CSR activity

Online Communication Channels

2

Directly reaches the mind

of the new gen

3

Exercises his decision influencing power in

the family

4

Real Donor actually

donates to the NGO/

joins the corporates

cause

1 Campaign goes

online

17  CSR & Cause Market Study of India-2015

Page 18: CSR & Cause Market Study of India-2015

Sample Demographics

Sample Size : 7,348*14  Ci/es  

4,156 3,192

* All respondents were 18+

43%  Of  Respondents  in  the  age  bracket  of  18-­‐35  

±2.5%    Margin of Error( 95% level of Confidence)

For a detailed report please apply on www.iimpactindia.com

23%   Of  Respondents  were  first  jobbers  

18  CSR & Cause Market Study of India-2015

Page 19: CSR & Cause Market Study of India-2015

About I Impact India Partners

For more information about I Impact India Partner’s research and services, please contact:

Yashasvika Sarin [email protected]

Adit Grover [email protected]

I Impact India Partners iii  

CSR Strategy & Execution | NGO Marketing & Communication

I Impact India is an award-winning Indian consultancy that takes a unique combination of human-centered, design-based and a systems-led approach to helping nonprofits and corporates create a better social impact which they call the social impact laboratory. The firm takes care of all the social sector worries from corporate social responsibility to non-profit marketing and communication.

Whether the goal is to raise awareness, build a community, convert existing community into donors, or some combination of all three, we exit to achieve all three

We're a social good agency focused on consulting, cause related marketing and corporate social responsibility which not only makes the corporate’s impactful but also help them earn a return on it

For Non-Profits/ Social Enterprise

For Corporates

In our laboratory we experiment to make tailor-made CSR strategies adjusted to your organization's qualities, aptitude, products/services, partner desires, long haul vision and drive successful on-ground execution prompting a sustainable change within communities you work with and causes you uphold. We have formulated a model named Corporate Social Investment (CSI), that brings people together to collaborate, where holistic approach dominates over silos, where outcomes are defined and measured, where social impact follows focused strategies and effectiveness is rewarded.

Corporate Social Investment Model

Sustainable Business Practices We conceptualize CSR strategy, define CSR  philosophy and objectives which are in alignment the corporate’s values, expertise, products and stakeholder expectation.

Social Impact CSR needs specialsation, company’s can focus on their core work and leave the end-to-end execution to us. We select the right NGO and cause which aligns with the corporate’s CSR vision and mission.

Communication and Engagement   It takes effort to identify a vision that your customers will find credible and aligned with their values. We understand how to leverage new and existing assets to effectively tell your cause story to the right audiences through traditional and emerging channels

19  

Page 20: CSR & Cause Market Study of India-2015

I Impact India Partners iii  CSR Strategy & Execution | NGO Marketing & Communication

Even doing good needs a strategy

20  For a detailed report please apply on www.iimpactindia.com