Charlton Brown

Report
ARE
YOU BRAVE ENOUGH TO SWAP
YOUR MARKETING BUDGET WITH
YOUR PHILANTHROPY BUDGET?
Petrina Fraccaro – General Manager, CHARLTON
BROWN ®
ALTERNATIVELY; CAN AND HOW DOES
PHILANTHROPY GENERATE A ROI? OR
CAN ONLY MARKETING DO THIS?
BUT
AREN'T THEY OPPOSITES?
Philanthropy




Philanthropy is an idea, event,
or action that is done to better
humanity.
It is carried out for motives
other than pure profit.
Acts of philanthropy can be
physical labour, financial
donation or the provision of
skills/techniques.
Philanthropy is about alignment
of a person’s needs with action,
to create a positive outcome.
Marketing




Marketing is based on thinking
about the business in terms of
customer needs and their
satisfaction.
Marketing considers the entire
business process as consisting
of a tightly integrated effort
to discover, create, arouse and
satisfy customer needs.
Marketing is not selling.
Marketing has less to do with
getting customers to pay for
your product as it does
developing a demand for that
product and fulfilling the
customer's needs.
COMMON CHALLENGES
FOR BOTH
Raising and driving brand awareness.
 Value for money, return on investment,
measuring publicity, brand value and brand
equity.
 Use of social media – blog, Facebook, tweet,
celebrity endorsement.

Campaigns get lost in the noise, drowned by the
cacophony of information overload.
HOW CAN YOUR
BRAND BREAK THROUGH THE
BARRIERS
How do you create something that is meaningful
while retaining your brand identity?
What are the core beliefs and the soul of your
company?
What resonates with you? And yet also aligns with
the goals and positioning of your brand?
STAND
OUT FROM THE PACK
You simply do something different!
Imagine if you could support a project that
generated its own media and which also reflected
your business goals and at the same time
contributed to society in a real and meaningful
manner.
Sounds like NIVARNA or HEAVEN or THE HOLY
GRAIL…or… STRATEGIC PHILANTHROPY
STRATEGIC
PHILANTHROPY
Yes….I do think I just created new terminology…..
STRATEGIC
PHILANTHROPY
If swapping your marketing budget for your philanthropy
budget sounds like a bad business move, then you need
to rethink your brand equity.



Above the line ROI - your company will be perceived
with improved business ethics and morals.
Below the line ROI - where most of your outputs will
be measured, you will see an increase in market
awareness of both your brand and product, and
greater shared understanding of your business goals
by employees and clients alike.
Current and prospective stakeholder and clients will
develop a meaningful understanding as to what you are
all about!
STRATEGIC




PHILANTHROPY
Create links between your business’ objectives
and those of your charity of choice.
Share these links with your stakeholders, clients
and employees.
Formalize these links, set yourselves challenges
and reward achievements as this can lead to
positive and healthier outcomes for all involved.
This is a win-win situation for both your business
and the wider community.
CASE STUDY
CHARLTON BROWN®
ONE: CHARLTON
BROWN® FOUNDATION
CHARLTON BROWN® believes that if you are
going to teach Community Services; then you
need to practice Community Services.
 Creation of the CHARLTON BROWN®
Foundation
 Global Linkages Scholarships – creating global
citizens
 10 projects in the Asian-Oceanic region for
2014; translates to 50 students participating in
off shore practicum placement with those in
need – orphanages, disability centres, centres
for the elderly.

TWO: COMMUNITY SERVICES POLICY




The policy – in addition to annual leave, staff
receive an additional day of leave per year to
participate in a pre-approved community services
project.
If staff do not wish to participate, then they
are not provided with the additional day of leave.
Some of the projects: homelessness, women
refuges, animal welfare, health issues.
Commonality – all hosts are stakeholders.
HOW
DOES STRATEGIC
PHILANTHROPY STACK UP AGAINST
TRADITIONAL PUBLICITY AND
PROMOTIONS?
PHILANTHROPIC PROJECTS
WHAT’S THE COST TO BUSINESS
Federal grants support the majority of the
Global Linkages Scholarships costs.
 Not a complete scholarships – student
participation fee.
 Staff undertake project development,
management and implementation in addition to
their employment.
 Fund raising for the gaps – NFP status.
 Good will generated through all projects is the
foundation of business development.
 Provides credibility – AID BEFORE TRADE!
 Builds strategic relationships with key
stakeholders.

PHILANTHROPIC PROJECTS
RETURN ON INVESTMENT
Media coverage – something new and fresh to
say, strong visuals and colour.
 Credibility – positions the business as an expert;
we don’t just teach, we actually do! Also provides
a tangible outcome for intangible products (the
change that training can bring to a community).
 Engagement – a reason to reach out, touch
stakeholders with a positive message.
 Employer of choice – staff feel good about the
company, they are proud of where they work.
 A practical expression of who you are and what
you do

BUDGETING
FOR IT ALL
Or how to the figures stack up….
STRATEGIC
PHILANTHROPY ROI
MEASUREMENT TOOL
There are two forms of the Return on Strategic
Philanthropy Investment (ROSPI)
Short term ROSPI
 long-term ROSPI

Yes….I do think I just created two new acronyms….
SHORT TERM ROSPI




Short Term ROSPI, is also used as a simple index
measuring the dollars of revenue/publicity which can be
attributed (or market share, contribution margin or other
desired outputs) for every dollar of philanthropy spend.
For example, if a company spends $100,000 on a student
engagement activity and receives $500,000 in incremental
revenue (through student enrolments, publicity, new
student employers) , then the ROSPI factor is 2.0.
Every dollar expended in the philanthropic activity
translates to an additional $2 dollar on the company's
bottom line.
This ROSPI is simple. In most cases a simple
determination of revenue per dollar spent for each
activity can be sufficient enough to help make important
decisions to improve the inclusion of philanthropy in the
entire marketing mix.
LONG
TERM
ROSPI
Long Term ROSPI model draws on lifetime value
models to demonstrate the long term value of
incremental student acquisition or improved
retention rates, or increased alumni rates.
 Long Term ROSPI can also look at brand
valuation – building, positioning, retaining etc.,
this can be a challenging way to create a dollar
value for philanthropy as the elements involved
are transient and always changing.
 Brand valuation is distinguished from brand
equity by placing a money value on a brand, and in
this way a ROSPI can be calculated.

BUT
AT THE END OF THE DAY….
The benefits philanthropy brings to the community in
which you operate, the deepened level of engagement
and the heightened level of awareness among staff,
the realisation of the importance of playing an active
role in the communities in which you participate, far
outweigh all other measurement tools!

similar documents