boon to brand reputation and affinity. When companies support social and environmental issues, consumer motivation, loyalty and purchase behavior overwhelmingly increase. We would work with Dannon executive leaders to implement a public CSR campaign utilizing findings from two Cone studies. A CSR study in 2015 by Cone showed that when companies support social and environmental issues, 93% of consumers have a more positive image of that company. Likewise, 90% are more likely to trust that company and 88% will be more loyal and continue to buy that company’s products. Interestingly, 80% of consumers consider CSR when deciding what to buy or where to shop, which products and services to recommend to others, which companies they want to see doing business in their communities and where to work. Lastly, a significant 90% said they would switch brands to one that is associated with a good cause, provided that the price or quality is similar (CONE, 2015). The consumer’s inclination to shop with an eye toward greater good is something that Dannon can utilize to differentiate itself from its rivals. These findings have shown that return on investment from this type of strategy can indeed be measured. Concerns mentioned by Dannon executives questioning the immediate return on investments may be laid fully to rest, as an open CSR communication strategy provides an immediate return on investment as it provides a larger customer base. A purpose study in 2018 by Cone showed that the long term benefit of customer loyalty and positive word of mouth is not to be taken lightly. Companies that lead with a social purpose stand to build deeper connections with consumers, enlarge its consumer base and recruit those brand advocates to share their brand message. In the study, 78% of Americans believe firms must do more than just earn profits. They demand firms to positively impact society as well. 77% of Americans feel they have a stronger emotional bond to companies with a social purpose (CONE, 2018). Dannon already has a tremendous CSR program geared towards the environment and education. This study should aid in convincing Dannon executives that the need to leverage their existing CSR is critical in creating economic benefits as well as developing stronger bonds and emotional connections with consumers. Through this process, Dannon can expand its market share by attracting new customers and/or taking customers away from rivals and building brand advocates to amplify the brand message through an increase in their net promoter score. Finally, the executives at Dannon will be informed that their CSR campaigns, particularly its child nutrition and community programs, are a winning situation for the company. The executives may not be aware of it yet, but Dannon is in a unique position in that it has developed deep ties and open access within the U.S. public school system. Dannon’s NutriDay school program reaches thousands of school children daily. Its nutritional educational campaign, “Celebrate Healthy Eating,” in collaboration with the Dannon Institute, prints thousands of brochures embedded with Dannon’s logo destined for school children and their parents to read.
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- Summer '17
- Test, Corporate social responsibility, Dannon