Ted Merdlers presentation

parakeetconspiracyManagement

Nov 20, 2013 (3 years and 8 months ago)

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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







*


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 Campaign

Hampshire Fare Portsmouth Festivities

Naomi House Milestones Museum

YouthNet Sussex Wildlife Trust


Sourcing from local suppliers











*


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!












*


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 residence

Famous for food

Full range of groceries

Local products

Premium foods and promotions

Speciality


deli, fine wines, Fairtrade

Direct deliveries

Service counters

Services


PO, pharmacy, ATM, bill
payment



Attracts customers from within and outside of a

half mile radius

Community Supermarkets





Involved in the community

Sells everything

It’s my butcher, baker and
greengrocer

Supports internet/supermarket
shopper

Food for tonight…snack for now

Promotions and seasonal

Services


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 community

It’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 Television

Deli


full screen

films of local products

Counter



ethical films

message from the manager

community ads

local 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
advertising

product 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 selling

because we have seen the results!










*

I sell

“total crap”

Ethical Marketing



Friend!