Value of Well-Executed CSR for Brands

While brands spend millions on traditional marketing, they are yet to feel comfortable pouring in time, money and resources when it comes to CSR( Corporate Social Responsibility). What this article aspires to do is to hit the arrow on this particular conventional head and show the value that CSR brings to a brand’s value instead. 

Another example of effective CSR marketing can be seen with NICA’s approach. NICA has made a paradigm shift in terms of brand marketing in Nepal, and the result is there for everyone to see. Its rise to become one of the top banks in Nepal has been exponential, and one of the major reason for that is because it has been able to create a strong and reliable brand identity among the general population in a relatively short time. So, what exactly has NICA done to achieve this? While its outstanding financial performance is  a no brainer answer, we need to dwell deeper into other aspects like its approach towards marketing. 

For sure, there are other banks like NBL, who are equally strong in terms of its finance. However, the relative ease with which NICA has been able to penetrate the psyche of the general population is, without any doubt, its focus on building its brand value. While other commercial banks focused solely on reaching its customers through their strong banking performance, NICA has been somewhat of a pioneer when it comes to building its brand identity through innovations in marketing. One such example is its active involvement in CSR related activities. In 2019, NICA undertook a marketing project under Transtech media tech, where it installed digital boards in 30 different temples around the country. Needless to say, temple branding at such a large scale has definitely brought dividends. As a country with relatively more than average theistic population, NICA’s active role in taking guardianships of various famous temples, while effectively marketing itself through digital boards, has helped it penetrate every nook and corner of the country ergo its rapid increase in its customer base.

That said, with COVID-19, businesses have taken a big hit. Not only have their revenues continued to dwindle, but they have also had to struggle retaining their brand identity. With the enforcement of strict lockdowns, traditional marketing strategies like billboard advertising have lost their value in terms of prospective return on investment. It is imperative that brands continue to retain their brand identity with existing customers while continuing to increase their brand awareness with prospective ones. However, with restrictions on traditional marketing avenues, brands have yet to adopt innovative approaches towards it. One of such approaches could be CSR branding. 

While businesses often take CSR as a necessary ‘evil’, it can actually be a valuable extension to brand marketing. Take the case of Shankar group’s recent CSR video, for example. While the brand took a hit when it received lots of negative press for COVID equipment related incidents, this particular video has been lauded for the awareness it spreads regarding the need for social distancing. What is particularly effective about the video is that while stressing on the need for social distancing; wearing masks and avoiding large public gatherings, the video retains an optimistic tone overall. Moreover, while doing this, the video smartly places the various ventures that exist under Shankar group. So, kudos to Welcome Advertising and Marketing for effectively and smartly spreading pandemic awareness while increasing the brand visibility of Shankar group.

What we can see from the above mentioned cases clearly is how CSR provides invaluable branding opportunities for businesses. Brands continue to spend more of their resources on traditional marketing, however, they have yet to realize that while traditional marketing can increase brand visibility and awareness, they cannot, by themselves,  help the brand anchor a positive image in society. Brands by default are rooted in society. Therefore, they need to be connected as a member instead of just being a ‘provider’ for the same. Basic humanity dictates that people like to associate with objects/brands that relate to their values. From an ethical point, it is given that anyone, including brands, should be socially conscientious. However, from a purely business perspective as well, brands can get lot of positive market penetration, if they engage in CSR smartly.