Ethical Marketing – Friend or Foe?

Before we go on, what is The Southern Co-operative?

We trade under the national brand as an independent co-operative

We share a central buying group with other co-operatives

We have around 130 retail stores and 30 funeral homes across 7 counties in the south of England…T/O £240M

We are owned by local people…our members and colleagues

We have our own board of directors who are not fat cats!

We believe that whilst we gain from national brand strength our USP is that we are “local” and therefore more attuned to our customers’ needs and wants

I’m Head of Brand Engagement and Communication (part of which is Corporate Social Responsibility)

Ethical Marketing…Is it simply the latest hype from the PC lobby?

Can 'real' businesses afford to accommodate these ideas in the current cash constrained environment?

Or is it the new marketing reality, an approach that no company can afford to ignore?

What is marketing?

Marketing is used to create the customer, to keep the customer and to satisfy the customer. With the customer as the focus of its activities, it can be concluded that marketing management is one of the major components of business management.

The term marketing concept holds that achieving organisational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organisational objectives, an organisation should anticipate the needs and wants of consumers and satisfy these more effectively than competitors. Source - Wikipedia

What is marketing?

Marketing is used to create the customer, to keep the customer and to satisfy the customer. With the customer as the focus of its activities, it can be concluded that marketing management is one of the major components of business management.

The term marketing concept holds that achieving organisational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organisational objectives, an organisation should anticipate the needs and wants of consumers and satisfy these more effectively than competitors. Source - Wikipedia

What do our customers want?

What do our customers want?

They have told us that they want…

Products that are sourced or produced ethically

To shop in a business that they trust

The National Brand Sustainable resources…forestry and fishing

Packaging…the “naked cucumber” and thinner glass

Ethical farming…Elmwood Chickens and bee friendly pesticides

Energy…only buy from green suppliers

Recycling…energy from waste and paper/plastic

Healthy eating initiatives

Fairtrade - 260 product - £1 out of every £6 spent at Co-op

Fairbourne Springs water

A practical and simple idea!

Kids get some fun!

We promote at events, selling at a reduced price to thirsty people

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What else do our customers want?

They have also told us that they want…

More locally produced products

To support their local community

Nearly a third (30%) of shoppers say they had specifically purchased locally produced food over the previous month, double the number in 2006, according to new consumer research released by IGD.

Support for ethically produced foods in general has withstood the pressures of an 18-month recession and is in fact growing, despite the tough economic conditions.

When asked about food they have specifically purchased over the last month, shoppers responded:

• 30% said locally produced food (up from 15%)• 27% Fairtrade products (up from 9%)• 18% products with high animal welfare standards (up from 11%)

What else do our customers want?

The “local” side of the National Brand Supporting local events

Giving a share of our profit back to our communities

Volunteering on local projects

Working with corporate partners…

Hampshire and IOW Wildlife Trust The Greening CampaignHampshire Fare Portsmouth FestivitiesNaomi House Milestones MuseumYouthNet Sussex Wildlife Trust

Sourcing from local suppliers

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What do we really get out of this?

Volunteering opportunities for our colleagues and members on environmentally important sites

The Trust has 30,000 members in our trading area…they all get to hear of this activity

Our customers get something truly local

The store colleagues get some variety

We get a lot of PR (working on getting this initiative published in the Times…local TV also likely to run it)

Networking!

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It’s not the same everywhere!

Community activity varies according to the area and the demographic profile of the customers who use a particular store

Community Supermarkets

Neighbourhood Stores

Core to the community Significant community involvement Manager in residenceFamous for foodFull range of groceriesLocal products Premium foods and promotionsSpeciality – deli, fine wines, FairtradeDirect deliveriesService countersServices – PO, pharmacy, ATM, bill payment

Attracts customers from within and outside of a half mile radius

Community Supermarkets

Involved in the community Sells everythingIt’s my butcher, baker and greengrocerSupports internet/supermarket shopperFood for tonight…snack for nowPromotions and seasonalServices – lottery, ATM, bill payment, PO, petrol, carwash

Attracts customers from within a half mile radius

Neighbourhood Stores

Community involvement…

Community Televison

Community Support card

Manager on local business assoc board or school governor

Store colleagues and local members on charity awards panel

Have stalls at local events

Join in with local initiatives

Community Supermarkets

Neighbourhood Stores

Community involvement…

Holds raffles for local events

Give a lot of smallish donations to a lot of local groups

Store managers work together to support events in a larger community

And not forgetting…

Community involvement…

Counselling and advice groups

Smallish donations to local groups

Involvement in local projects

Funeral homes work together to support events in a larger community

Embedding ourselves in the communityIt’s no good paying lip service…we are genuine about we do in our communities! We have donated to hundreds of small events

Supported 12 main regional events

Given large sums of money to good causes

Supported over 70 local businesses

Raised £130,000 for our Charity of the Year

In 2009 over £300,000 given to communities within our trading area - this year £400,000?

Community TelevisionDeli – full screenfilms of local products

Counter – ethical filmsmessage from the managercommunity adslocal weather forecast

Beer section – Under 25? film + audible message

In most of our community supermarkets

Controlled centrally

Very popular with local organisations

Not used for advertisingproduct unless it is local

No supplier funding!It costs us a lot to do it

Fantastic response from our communities!

The Community Support Card

We give between £10K and £30K per store at 15 stores (up to 30 by the end of this year)…around 3p for every £1 spent in the store until target is reached

Bids are put in by good causes – MUST be local!

Colleagues, customers and community representatives decide who will get the money

For example…at Freshwater, we have given £25K to the local independent lifeboat and £5K to the Community Centre

What have been the results?

We have been able to compete with, and actually increase sales in the face of competition from Sainsbury and Tesco in several locations

What have been the results?

We are invited to join in with many community events

We have colleagues who are active within the community …school governors, chamber of commerce, Fairtrade groups, carnival committees

We have gained the respect of many community groups

We get excellent positive PR (averaging 1 per day)

Our people get to have some fun!

Sales figures are up!

Don’t underestimate the value of internal marketing!

We spend a LOT of time telling our colleagues about their business, especially about ethical and local

Colleagues are given paid time off to volunteer

We genuinely recognise and support our colleagues and encourage them to “join in”

An employee who is proud of their business…

Talks about it’s positive aspects to friends and family

Stays with you longer

Is often happier! (which is apparent to your customers)

Is it simply the latest hype from the PC lobby?

Certainly not the feedback we get from our customers and colleagues! Can 'real' businesses afford to accommodate these ideas in the current cash constrained environment?

You can’t afford not to!

Or is it the new marketing reality, an approach that no company can afford to ignore?

We think so!

Conclusion

We listen to our customers and meet their needs and wants, supporting their own values and beliefs as much as possible

If ethical is part of that, then it makes our job more enjoyable as we genuinely feel that we are helping to make a positive local difference

We are not like him!

We believe in what we are sellingbecause we have seen the results!

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I sell “total crap”

Ethical Marketing – Friend!