Corporate America Is Interested in Africa.

This study by Baird’s Communications Management Consultants (Baird’s CMC) in partnership with the Africa Business Initiative of the US Chamber of Commerce is brought to my attention recently. It is a pretty detailed research on how big corporations in the USA see Africa. You can get the report from www.usafricainvestment.com 

 

It is interesting to see that Senior Officers in the corporations are clearly interested in Africa as a potential market but they are not convinced yet about a big investment in the continent. Africa clearly is the biggest opportunity for "Bottom of The Pyramid" business model and Corporate America sees that but still concerned about "chaos and unrest", "lack of rule of law", "business infrastructure" and issues like that.

 

It is great to see that the corporations are watching Africa closely and it is understandable that they are hesitant about the risks; however this tells me that when they think about an investment in Africa, they still think in the boundaries of business as usual. I think there is a need for a big mentality change at that point. Corporate America has to understand that their next 1 billion consumers (including other emerging markets) will not look like their first 1 billion consumers. They need to adapt a fresh look, a different business strategy, an innovative approach to the marketplace that could be relevant under those extraordinary circumstance if they are willing to harness the Bottom of The Pyramid markets. It is not easy but the companies who can innovate in this marketplace will have a huge opportunity in the future.

Thanks to Baird’s Communications Management Consultants for brining this into my attention.

 Aykan Gulten

Cause Marketing (2)- What do you need to make it work?

Since 2004, Yellow Livestrong Bracelet is the symbol of overcoming huge difficulties by determination and working hard. After 5 years of its launch, you can still see many people wearing bracelets including highly influential sportspeople, celebrities and even politicians. Many other campaigns followed the footsteps of Livestrong yet none of them came close to its success. The campaign started with a goal of selling 5 million bracelets and look where we are now at the sales figures; more than 70 million!!!!

Livestrong is a case that gives you the basic formula to a succesful cause marketing initiative. An influential figure (a hero in this case I must say) with a strong personal attachment to the cause, a product that works and a transparent and simple money transfer mechanism. What that could mean for you and for your organization?

Influential figure: This figure could be a person or an institution or a football team. The point is you need to give a reference point to your consumers to connect to the cause.

Product:: It is all about product. Yellow bracelets of Livestrong campaign that gives 100% of the income to the foundation is a rare case. Do not forget, Nike spent millions of dollars for the product and the marketing of the campaign and did not get any financial return but got a huge return for the brand and they created an amazing connection to millions of people. In normal cases, you would consider a campaign that gives a portion of the proceeds to the cause. In any case; The Product has to work. Consumers would not accomodate any low-quality product just because it is related to a cause. Even the products that you would think you do not need  -as the yellow bracelets- has a crucial functionality to satify consumers such as showing that you are a member of Livestrong tribe. (It is all about tribes as Seth Godin says)

Simple and Transparent Mechanism: It is crucial to be clear about what you are giving back whether it is a portion of the proceeds or a fixed amount. Ensure that the funding mechanism is transparent your partner in the campaign is a credible organization. 

In the next post, I will discuss the impact of cause marketing initiatives and compare it with the alternative ways of raising funds.

Aykan Gulten