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Ng Sook Zhen
Tue, Jun 19, 2007
The Straits Times
More firms marrying marketing with a good cause

AN INCREASING number of companies in Singapore are doing good old-fashioned charity work.

But there is a twist. They are using this method to get their own marketing message across in a marketplace where it is tougher than ever to find an original way to get consumers' attention.

But they admit that there is a delicate balance to be struck: They do not want to be seen as exploiting charity.

This type of advertising is known as 'cause-related marketing'. It often involves firms sponsoring charity events that carry the sponsors' products. Sometimes, the event is named after the main sponsor.

This month alone, there were more than a dozen such events. One was the 'Somethingood' busking festival on Orchard Road that raised funds for the Children-At-Risk Empowerment (Care) Association, which works with troubled youth.

One of the main sponsors was Zingrill Holdings, which owns the Breeks, Seoul Garden and ZingDo restaurant chains. It donated $2 for every $20 and above received for the event and encouraged its staff to wear 'Somethingood' T-shirts.

'We do not want to be a mere logo on a poster or banner,' said Mr Benny Lee, Zingrill's marketing manager. 'It is simply a marketing platform to which we attach a social dimension. It is no different from advertising and public relations.'

Mr Tay Guan Hin, regional executive creative director of media agency JWT, said: 'Traditional forms of media are no longer enough. That's why companies are looking into sponsorships and other ways to help build brand equity.'

Cause-related marketing may be seen by some as mercenary but charities are careful that this does not become merely a publicity gimmick.

'I will deliberately ensure that this does not evolve to just a publicity outlet for the company,' said Mr Yong Teck Meng, national director of Habitat for Humanity Singapore.

One fund-raising event Habitat has organised is 'Build4hope', in which the public bought empty Marigold Tetra Pak drink packages with the proceeds donated to Habitat's projects, including the building of houses in Thailand, Mongolia and the Philippines.

The drink packages were then used as bricks to build a replica housing cluster at VivoCity to commemorate the construction of the 1,500th house in Meulaboh, Indonesia, where the Boxing Day tsunami struck in 2004.

A Cathay Pacific sticker was stuck on each drink packet for one of the replica houses. The airline had sponsored the lucky draw prizes.

'I think the sponsors have been very kind, it's just a way of giving back to them,' Mr Yong said.

However, some companies are quick to deny that their main focus is marketing, saying they prefer to focus on the charity itself.

'Publicity is not the main reason for our charity efforts,' said a City Developments (CDL) spokesman.

'For sponsored community events, we would be content with the usual publicity accorded by the charity to its sponsors.'

In Assisi Hospice's 'Teddy Bank' campaign featuring plastic savings banks in the shape of teddy bears, CDL adopted 60 teddy banks and raised $60,000 for the hospice.

Firms that use cause-related marketing are not worried that the public will misinterpret their goodwill.

'Why would the public think that way? We just want to do something meaningful other than just give money,' said Mr Ivan Onn, managing director of Nova Furnishing Centre.

Along with its mattress fair, which kicked off this month, Nova will donate a mattress to Thye Hua Kwan Moral Society for every mattress worth $699 and above purchased.

The society, which was set up in 1978, oversees 50 welfare services. An estimated 200 mattresses will be donated.

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