News Analysis: Charity begins at Vodafone

Will late mean better as Vodafone embarks on its first cause related marketing tie-up? Ben Carter finds out.

Vodafone's three-year commitment to the National Autistic Society (NAS) (Marketing, 21 April) is the latest example of a brand trying to bolster its reputation through a dedicated cause related marketing initiative.

The partnership aims to produce positive PR for the mobile phone giant and could help improve its reputation. Research carried out last year by Business in the Community found that 50% of consumers said they would feel more positively toward a company if it was involved in a cause related programme.

Recent corporate scandals make it a necessity for big companies such as Vodafone to become active in this field, according to Sue Adkins, cause related marketing director at Business in the Community.

'There's now more pressure on companies following the Enron and Shell scandals to look at how they are viewed and make their corporate social responsibility strategies more visible,' she says. 'This (Vodafone/NAS tie-up) marks the start of a new wave of partnerships.'

Mark Bond, Vodafone UK's director of marketing, acknowledges that it is surprising a brand the size of Vodafone hasn't established a cause related marketing partnership before. 'Our customers expect us to partner a charity and they expect someone the size and stature of Vodafone to be more active in this space than we have been,' he admits.

In the mobile phone giant's defence, Bond says its charity selection process lasted three years and involved extensive customer and employee research in order to gauge the sort of charity Vodafone should partner and what the company should be offering.

Logical links

Vodafone opted to support the NAS because it wanted to use its position as a communications provider to help those with communications problems; all the projects that it is funding will have better communication at their heart.

As well as pledging to raise £6m for the NAS in the next three years, Vodafone will work on three specific projects for the charity.

The company is setting up a 24-hour support programme, which will offer help and advice on autism by phone or online. It is developing a support programme that will offer a network of assistance to thousands of families.

And it will use advertising - both to its existing customer base and to the wider public - to raise awareness of autism over the next three years.

So while the benefits to the NAS are clear, what does Vodafone get out of it? Bond says that the relationship is intended to meet both 'social and business objectives' for the brand. 'It will help us gain more respect in the eyes of our customers and our brand should become more credible and stronger.'

Andrew Nebel, UK director of marketing and communications for children's charity Barnardo's, agrees. 'It will differentiate Vodafone from its competitors and establish greater brand loyalty for its customers, which is crucial in an industry with high churn levels,' he explains.

However, he stresses that for tie-ups such as this to be successful, they cannot be viewed as a short-term venture or a bolt-on for the brand.

'As long as there is brand relevance and it's not being used as a panacea, it can be very successful,' Nebel says. 'But cause related marketing isn't a sticking-plaster solution for brands; it has to be part of a long-term unified strategy.'

Adkins says that, if handled well, there is solid evidence that it can deliver a 'win for all involved'. The Business in the Community research has plenty of evidence to show that cause related marketing can have a positive impact on consumer perceptions, loyalty and buying behaviour.

For example, during the Persil and Comic Relief cause related marketing campaign in 2003, sales of Persil rose by 13% on the previous 12 weeks, while its market share increased by 3%.

Although the partnership marks Vodafone's UK's first major involvement with a charity, it is not a first for the mobile industry.

Careful selections

Vodafone Group established the Vodafone Foundation in 2002. In the UK it raises funds for good causes including Shelter and the Samaritans.

O2 sponsors Milly's Fund, set up following the murder of schoolgirl Milly Dowler in 2002. The company has been hosting clinics and events around the country to make parents aware of text messaging as a way of keeping in contact with their teenagers, under the banner 'Teach ur Mum 2 txt'.

And Orange is focusing on helping sufferers with sensory disability.

It has partnered with the Royal National Institute of the Blind and the British Deaf Association and is hosting a number of fundraising initiatives.

As the mobile market reaches saturation, Vodafone's partnership with the NAS could help it stand out. But Adkins warns that there are potential pitfalls. 'These partnerships are much more powerful than any other promotion because they have a strong emotional dimension,' she says. 'Get it wrong and the risks are much greater for the brand.'

Market Reports

Get unprecedented new-business intelligence with access to ±±¾©Èü³µpk10’s new Advertising Intelligence Market Reports.

Find out more

Enjoying ±±¾©Èü³µpk10’s content?

 Get unlimited access to ±±¾©Èü³µpk10’s premium content for your whole company with a corporate licence.

Upgrade access

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an alert now

Partner content