Cause marketing | The Barefoot Spirit

Worthy Cause Marketing Makes Dollars and Sense

Michael Houlihan & Bonnie Harvey — Sat, 17 Jan 2015 19:30:31 +0000

What we dubbed Worthy Cause Marketing back in 1990 was really an outcome from a serious business problem: How could we get the word out about our products when we had no money for commercial advertising?

We discovered something very important when we got a call one day from a neighborhood non-profit looking for a donation for a kids-after-school park. We had no money for a cash donation but we did have product which we donated for their fundraiser. As a result, the membership of that non-profit was able to sample our products and saw that we supported their cause. Sales in the nearby retail account took off.

When we finally put it together that sales were up in that store because we supported the local neighborhood fundraiser, we decided to try it in another neighborhood. It worked! Then we realized that we didn’t have to give up our true passion which was conservation and civil rights just because we were in business. We realized that we could support worthy causes that were worthy of us, our brand, and our products as a way of getting the word out in lieu of costly advertising that we couldn’t afford anyway.

In fact it worked so well that even when we could afford commercial advertising we did not do it. And we discovered something else that was very important yet subtle. The members of the non-profits we supported not only selected our products when they had a choice, but they actively promoted them to friends, family, neighbors and co-workers. They also promoted our products through their networks by thanking us for our support.

We began to realize another important lesson. Part of the discovery process that makes people want to share their discovery is not only the knowledge that the product is great, but also and most importantly, that the person they are turning on to the product couldn’t have known about it any other way. They believe this precisely because they have seen no commercial advertising. They know they will be gratified when their friend says, “Thanks for the great recommendation! We tried it and you were right. It’s great!” So now we had a business reason not to advertise, because the folks who were spreading the news by word of mouth would simply stop if they saw the commercial ads!

So isn’t this just another type of cause marketing? Not quite. The biggest distinction we can make between Worthy Cause Marketing and Cause Marketing is that within Cause Marketing, the support for the cause is advertised to the general public in the hopes that the general public will chose your brand because you are doing good. In Worthy Cause Marketing however, the support for the cause is not advertised to the general public, but is only known to the non-profits’ members and their supporters.

In both cases the decision to support the cause is a sincere intent to help that cause achieve its goals, but the process differs substantially. We have found that Worthy Cause Marketing creates a loyal following when practiced year after year on a long-term basis.

We were honored to be the keynote speakers today at the prestigious Pepperdine University in Southern California at the Margaret J. Weber Distinguished Lecture Series. Given the school’s admirable commitment to social entrepreneurship, we thought no topic could be more appropriate than Worthy Cause Marketing, a driving influence behind the success of the world’s largest wine brand. We hope that our demonstrated success will encourage start-ups, growth-phase and established companies to use Worthy Cause Marketing in their own businesses. We believe they will see, just as we did, that doing good is just plain good business!

Who We Are

Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.

Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.

They offer their Guiding Principles for Success (GPS) to help entrepreneurs become successful. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.

Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular brand building site at www.consumerbrandbuilders.com.

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Why Worthy Cause Marketing Works

Michael Houlihan & Bonnie Harvey — Sun, 14 Jul 2013 02:35:37 +0000

We are often asked, “What’s the difference between ‘Cause’ Marketing and ‘Worthy Cause’ Marketing?” The most obvious difference is the intention of the marketing. With Cause Marketing, the emphasis seems to be on creating an image that your company is sponsoring a particular non-profit. The intention is to show the general public that you are helping a cause that everyone agrees is beneficial. Many non-profits rely on these sponsorships to continue to do their good works. The “selling” of sponsorships is necessary to support especially large non-profits, and the big companies that pay for these sponsorships deserve our admiration.

But what about the start-ups and struggling entrepreneurs who can barely make ends meet? How can they, with limited funds, support their chosen non-profits, and at the same time create sales of their products? For smaller companies, their support is, after all, a marketing effort.

The answer we found is Worthy Cause Marketing. It’s not aimed directly at the general public as if to say, “Look, we’re doing our part, you can feel good about buying our products because we are the official sponsors of this or that non-profit.” It’s more about addressing the individual members of the non-profit, with the hope that your efforts on the non-profits’ behalf will give them a social reason to buy your products and services. Wouldn’t you prefer to support the companies that support your causes?

But if you are a start-up or a small struggling business, you are probably under-capitalized and can’t afford cash donations, let alone big sponsorship fees, or even an advertising budget. With your limited funds, how can you get noticed by the right audience who wants your product or services?

Our own company was grossly under-capitalized, just like most start-ups, and incidentally, like most of our clients and the entrepreneurial students we talk to today. We faced the same dilemma that they do. “How can we get the word out to the folks who are most likely to buy our product or services in the most efficient way?” You realize that you can’t buy a sponsorship, but you want to help and you need customers.

Worthy Cause Marketing provided an answer. We could afford to donate products and services. We could afford to take the non-profits’ message to the street in the form of signage on our products in a venue they could not otherwise access: the stores. We could afford to send our employees in to help them set up and tear down for the fundraisers. We could afford to engage in their functions and events. We became more than just sponsors – we became partners in their causes.

We chose non-profits and community fundraisers that we, and our product, resonated with. They were worthy of us, our time, and our products. We gave their members a social reason to buy our products, and we were efficient because we helped the groups who were the most likely to purchase our products.

In the 20 years of growing Barefoot Wines, we never paid for commercial advertising. We relied solely on Worthy Cause Marketing, and became one of the fastest growing wine brands in the nation. It worked for us. It just might work for you!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Cause Marketing or Worthy Cause Marketing?

Michael Houlihan & Bonnie Harvey — Sun, 03 Mar 2013 02:30:29 +0000

The nation’s #1 wine brand was built without relying on commercial advertising. Instead, while building the Barefoot Wine brand, we used what we termed, “Worthy Cause Marketing.”

Every business faces the same problems. How do you get the word out about your product or services? How do you do this in an efficient, targeted manner? How do you gain a loyal following? Customer acquisition and retention can cost millions, with advertising generally the most costly. Many smaller businesses and start-ups, like us, simply don’t have a big advertising budget.

We discovered an alternative to conventional advertising that was, for us, more effective than conventional advertising.

Getting to know our customers was key to keeping our products relevant and providing excellent customer service. An examination of your customer’s needs beyond their need for your products or services can provide essential clues about what is important to them. Each of your customers has a cause that they hold dear, and many are members of non-profit organizations.

By supporting those non-profits, a company aligns itself and its products with that cause. But that’s where the similarity between Cause Marketing and Worthy Cause Marketing ends.

National non-profits have discovered the value of their logos to corporate sponsors. With their huge membership and social appeal, these non-profits know that the big boys will pay to identify with them, and today, many national non-profit organizations raise substantial funds by selling their sponsorships.

Large companies can show their customers that they care by providing those sponsorships. However, simply “buying” a sponsorship is out of reach for most start-ups. And, sponsorships are generally sold on an annual basis, so one company can be the sponsor this year and another the next, sometimes discouraging loyalty.

We discovered, however, that we could offer support beyond funding to causes that were worthy of our time and energy. These were causes that our company, our product, or we ourselves naturally resonated with. We made up for our lack of funds with passionate support in other areas that were just as, if not ultimately more, valuable to the non-profit.

We gave them our products, services, and labor. We used our access to the market to help them get their word out, and yes, even helped them raise funds. Instead of buying a sponsorship, which we couldn’t afford anyway, we set out to become active members, promoters, and participants in their cause. This approach also helped build positive company culture because our people knew they were making a difference when they helped at fundraisers.

We focused on small rather than large, local rather than national, and at the time, relatively unknown rather than well-known non-profits. We focused on marginalized groups that supported equal rights or conservation that were not yet mainstream and were considered radical. They were particularly grateful for our getting the word out about their cause to our market audience. As they grew, we grew, and became part of their community. By helping them when they most needed it and making a lasting commitment, we established enduring trust as true partners. Of course, it was risky at times, but the payoff was being on the right side of history when their causes became mainstream.

The return on involvement with Worthy Cause Marketing was slow but steady, and over time, it built a loyal customer base that had a social reason to buy our product. The difference is making a difference by supporting worthy causes that are important to you and your customers.

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Vineyard & Winery Management Article

Michael Houlihan & Bonnie Harvey — Sun, 27 Jan 2013 03:02:47 +0000

Linda Murphy talked with Michael about the story of Barefoot Wine, including the challenges, successes, and lessons learned along the way. It’s all here in the January/February issue of Vineyard & Winery Management.

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Big Blend Radio’s SUCCESS EXPRESS Show

Michael Houlihan & Bonnie Harvey — Sun, 20 Jan 2013 19:15:34 +0000

Michael and Bonnie joined Nancy Reid & Lisa Smith of the SUCCESS EXPRESS Radio Show to discuss their Barefoot Wine journey, including their humble beginnings and important discoveries along the way, like Worthy Cause Marketing. Read the article and listen to the audio clip here!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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American Express – Open Forum Interview

Michael Houlihan & Bonnie Harvey — Thu, 20 Dec 2012 19:52:55 +0000

Michael spoke with Ellen Shaffer of American Express OPEN Forum about why he and Bonnie wrote “The Barefoot Spirit” and their discovery of Worthy Cause Marketing. Read the article here!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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The Joy of Giving

Michael Houlihan & Bonnie Harvey — Sat, 15 Dec 2012 23:43:35 +0000

As we scurry around to complete our holiday gift lists, let’s take some time to think about gifts in general and what they mean to us. A gift is more than its material value. Sometimes the least expensive gift has the most value to us because of who it came from and their good intentions. It’s a symbolic gesture that says, “You are important to me, and I care about you.” This makes the recipient of your gift feel good, and makes you feel good as well.

People ask us why we spent so much time and energy supporting worthy causes when we were growing the Barefoot Wine brand. When we began, we had no funds for marketing, so we gave to non-profits and community fundraisers that we believed in to get the word out about our product. As our brand grew, we expanded into new territories, and used our market presence to promote their causes. Eventually as we became more profitable and could even afford paid advertising, we chose not to and instead continued our support of worthy causes because it made us and our staff feel good.

There really is a “Joy of Giving.” This holiday season, why not give a gift to your favorite worthy cause? Your gift of funds or volunteerism make you feel like you’re making the world a better place. And you are. We found it satisfying and empowering that we could make a difference, and you will too.

The common denominator for most celebrations this time of year is Humanitarianism – the concept that we are all connected on this planet and that we all have an interest in the same goals that support our existence, better our lives, and address our challenges.

These causes run the gamut from health to education, from next generation to senior care, from conservation to preservation of wildlife. Within each cause are many non-profit organizations to choose from in your neighborhood and around the world. Here are just a few examples of our favorite conservation causes.

1. Clean Beaches (and Oceans). The Surfrider Foundation has been the true guardians of our coasts for decades. They have tirelessly waged a campaign to make beaches and oceans safe for you and your children. Volunteers are doing the work, and they need our support.

2. Water Conservation. The Mono Lake Committee was effective in getting the huge Los Angeles metropolitan area to go from seven gallon per flush toilets to one gallon per flush toilets. What a water savings! Their battle to save one of the two oldest salt water lakes in North America from disappearing has had positive effects on the bird migration flyway as well as the humans who use the water.

3. Preservation. “Keep Tahoe Blue” is the slogan for the League to Save Lake Tahoe. They have been around since the 1930’s with the mission to save one of the most pristine lakes in the country. They have been challenged yet successful in sustaining the clarity of the lake over the years, but every time there is a recession, there is more pressure to develop the basin. Their educational campaign to preserve this national gem deserves our support.

What worthy causes are important to you? What non-profits within those causes would you feel good about donating time or money to this holiday season? Even a token amount will give you surprising satisfaction.

By making a commitment to improving the lives of other people and our environment, you say, “What you are doing is important to me.” Take pleasure in The Joy of the Holidays with the Joy of Giving!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Inc. Magazine Article

Michael Houlihan & Bonnie Harvey — Sat, 01 Dec 2012 01:28:39 +0000

Kevin Daum’s Inc. Magazine article highlights Michael & Bonnie’s discovery of the philanthropic marketing technique, Worthy Cause Marketing. Click here to read the full article!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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KUCI Radio Show Interview

Michael Houlihan & Bonnie Harvey — Thu, 29 Nov 2012 21:53:54 +0000

Michael discussed the history of Barefoot Wine, including the discovery of Worthy Cause Marketing and his new book, “The Barefoot Spirit” with Ann Herr, radio host for Operation Community Stimulus. This show can be heard weekly on Wednesdays on KUCI 88.9 FM in Irvine CA. It is also streamed online through www.kuci.org. The Mission of Operation Community Stimulus is to be a platform to bring together BUSINESSES-NON PROFITS-COMMUNITY LEADERS-CITIZENS to collaborate in the community. Listen to the interview here!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Business Unconventional Radio Interview

Michael Houlihan & Bonnie Harvey — Wed, 21 Nov 2012 21:22:09 +0000

Michael spoke with Dean Rotbart of the Business Unconventional radio show about the history of Barefoot wine and his new book, “The Barefoot Spirit.”

Business Unconventional is the flagship business program of 710 KNUS AM in Denver. The show is broadcast each Sunday on 710 KNUS AM in Denver. It is also streamed live over the Internet at www.710KNUS.com. Check back soon to hear the interview!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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