Harvard Case - Share Our Strength and American Express: Developing Marketing Alliances (A)
"Share Our Strength and American Express: Developing Marketing Alliances (A)" Harvard business case study is written by Sonya Grier, Carrie D. Culp, Callie M. Stivers. It deals with the challenges in the field of Marketing. The case study is 15 page(s) long and it was first published on : Oct 1, 1997
At Fern Fort University, we recommend that Share Our Strength (SOS) and American Express (Amex) proceed with their marketing alliance, focusing on a multi-faceted approach that leverages both organizations' strengths. This alliance should prioritize building brand equity, driving awareness, and generating revenue for SOS through a combination of targeted marketing campaigns, innovative product offerings, and a robust digital strategy.
2. Background
This case study examines the potential for a strategic marketing alliance between Share Our Strength (SOS), a non-profit organization dedicated to ending childhood hunger, and American Express (Amex), a global financial services company. SOS seeks to raise awareness and funds for its mission, while Amex aims to enhance its brand image and customer engagement through socially responsible initiatives.
The main protagonists are:
- Share Our Strength (SOS): A non-profit organization with a strong mission but limited resources for marketing and outreach.
- American Express (Amex): A financially strong company with a desire to engage in socially responsible initiatives and enhance its brand image.
3. Analysis of the Case Study
This case study can be analyzed through the lens of strategic marketing alliances and non-profit marketing. Here's a breakdown:
Strategic Marketing Alliances:
- Synergistic Benefits: The alliance offers potential for both organizations. SOS gains access to Amex's resources, marketing expertise, and brand recognition, while Amex strengthens its brand image and customer engagement through its association with a respected non-profit.
- Shared Values: Both organizations share a commitment to social responsibility, creating a foundation for a successful and authentic partnership.
- Target Market Alignment: Both organizations target a similar audience of affluent, socially conscious consumers, making the alliance strategically sound.
Non-Profit Marketing:
- Generating Awareness: SOS needs to raise awareness about childhood hunger and its programs. The alliance provides a platform to reach a broader audience through Amex's marketing channels.
- Fundraising: SOS relies heavily on donations. The alliance can help generate revenue through co-branded products, events, and targeted campaigns.
- Building Brand Equity: SOS needs to build a strong brand identity to attract donors and supporters. The alliance with Amex can contribute to this by associating SOS with a reputable and trusted brand.
Additional Frameworks:
- SWOT Analysis: A SWOT analysis can be conducted for both SOS and Amex to identify strengths, weaknesses, opportunities, and threats related to the alliance.
- PESTEL Analysis: A PESTEL analysis can be used to assess the political, economic, social, technological, environmental, and legal factors that may impact the alliance.
- Marketing Mix (4Ps): The alliance should consider how to optimize the marketing mix (product, price, place, promotion) for both organizations.
4. Recommendations
- Develop a Co-Branded Product or Service: Amex could create a co-branded credit card or rewards program where a portion of the proceeds is donated to SOS. This would generate revenue for SOS, raise awareness, and enhance Amex's brand image.
- Host Joint Events and Campaigns: Amex could sponsor SOS events like 'Dine Out for No Kid Hungry' or create joint advertising campaigns promoting SOS's mission. This would increase visibility for both organizations and create opportunities for engagement.
- Leverage Digital Marketing: Amex could use its digital marketing expertise to create targeted campaigns on social media, search engines, and email marketing to reach SOS's target audience. This could include influencer marketing, content marketing, and social media contests to drive engagement and donations.
- Develop a Comprehensive Marketing Strategy: A joint marketing plan should be developed outlining specific goals, target audiences, marketing channels, and key performance indicators (KPIs) to measure the success of the alliance.
- Build a Strong Communication Strategy: Clear communication between both organizations is crucial for a successful alliance. This includes regular meetings, open dialogue, and transparent reporting on progress and results.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Mission Consistency: The recommendations align with both organizations' core competencies and missions. Amex leverages its marketing expertise and financial resources, while SOS benefits from increased visibility and fundraising opportunities.
- External Customers and Internal Clients: The recommendations are designed to appeal to both organizations' target audiences and internal stakeholders.
- Competitors: The recommendations consider the competitive landscape and aim to differentiate the alliance from other similar initiatives.
- Attractiveness: The recommendations are expected to generate positive ROI for both organizations, with potential for increased brand equity, revenue generation, and social impact.
6. Conclusion
The proposed marketing alliance between Share Our Strength and American Express has the potential to be mutually beneficial. By leveraging their combined resources and expertise, both organizations can achieve their respective goals of raising awareness, generating revenue, and strengthening their brand image. The alliance presents a unique opportunity to address a critical social issue while enhancing both organizations' brand equity and customer engagement.
7. Discussion
Alternative Options:
- Solely relying on traditional marketing methods: While traditional marketing methods like print advertising and television commercials can be effective, they are less targeted and may not reach SOS's desired audience as effectively as digital marketing.
- Focusing solely on fundraising events: While fundraising events are important, they are limited in their reach and may not be sustainable long-term.
Risks and Key Assumptions:
- Potential for brand dilution: If the alliance is not managed effectively, it could potentially dilute both organizations' brand image.
- Misalignment of goals and values: It's crucial that both organizations are aligned on their goals and values to ensure a successful partnership.
- Economic downturn: An economic downturn could impact both organizations' ability to invest in the alliance.
8. Next Steps
- Formalize the partnership agreement: Both organizations should formalize their agreement outlining roles, responsibilities, and key performance indicators.
- Develop a comprehensive marketing plan: A detailed marketing plan should be created, including target audiences, marketing channels, budget, and timelines.
- Launch the first co-branded product or campaign: A pilot project should be launched to test the effectiveness of the alliance and gather feedback.
- Monitor and evaluate results: Regular monitoring and evaluation of the alliance's progress is crucial to ensure its success and make adjustments as needed.
By taking these steps, Share Our Strength and American Express can create a successful and impactful marketing alliance that benefits both organizations and makes a positive difference in the fight against childhood hunger.
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Case Description
Focuses on Share Our Strength (SOS), a national nonprofit anti-hunger organization. Examines various decisions faced by SOS related to the establishment of marketing partnerships with American Express (AMEX) and Restaurants Unlimited, Inc. (RUI). The specific alliances involve two corporate sponsorship decisions, Taste of the Nation (TOTN) and Dine Across America (DAA), and one cause-related marketing partnership, Charge Against Hunger (CAH). This case provides background and history of SOS from its inception in 1984. Also details the organization's first key fund-raising event, TOTN. SOS's search for a corporate sponsor for TOTN revolves around consideration of American Express. It is up to the student to assess this opportunity.
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