labels: consumer goods
FMCG brands to build on social causes news
04 January 2007
FMCG brands are taking corporate social responsibility, CSR, seriously. CNBC-TV18 tells you why it's becoming a popular route to brand-building.

Mumbai's slum children might not use Surf Excel, but it is funding their education. And Surf is not the only brand on the do-good trail.

Ponds has tied up with the United Nations Development Fund for Women to fight domestic violence. For every flap of Ponds packing that a consumer mails to the company, Rs2 is contributed towards the fund.

Most brands look for long-term links with social causes, linking consumers with the brand and the cause, thus making gains (goodwill) in the bargain.

Ashok Venkatramani, VP, Skincare, HLL says, "If our previous experience is anything to go by, it does impact sales in a positive way. We have experienced it with Lifebuoy in rural areas as well as with Fair & Lovely."

Four years after Lifebuoy showed improved sales, HLL has put the social focus on the tube. And now, ITC uses biscuits to strengthen faith in the brand. Although it had released corporate social responsibility commercials early on, it is now for the first time using CSR to build brands.

Ravi Naware, Divisional Chief Executive, ITC says, "If a brand is seen as responsible and socially purposive, consumers get an emotional connect that is far beyond just usage. "

Experts predict that when brand loyalty is passé and me-toos are proliferating, sectors like auto and durables will also hop on to this bandwagon.

But if from detergents to TV sets, all brands chase consumers for a cause, there will be clutter. At the same time, experts say it is important to find the right fit between a certain brand and a cause that lasts longer than a passing fad.


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FMCG brands to build on social causes