Marketing 1 | Assignment 1 | | Describe a CSR programme provided by a well known organisation . How does this programme benefit the organization in marketing terms. | | Tania Jonas | 3/4/2013 | |

Describe a CSR programme provided by a well known organization.
Introduction:
As the largest supermarket chain store in SA ,PnP prides themselves as being a truly South African family owned company. An interview with Gareth Ackerman on 6th October 2008 at The Fletcher School as a guest of the International Business Global Speaker series, he says the following ‘They are one of the first companies in South Africa to make a strong commitment to CSR believing that doing good is good business by focusing on environmental sustainability and small business viability’. The Pnp foundation’s vision being ‘to enable South Africans to provide for their own needs while inspiring to better themselves and to contribute to their own communities’ .PnP has an entrenched value system which they consider to render a positive impact on the lives of many South Africans. This is evident in their CSR spend in 2011 of R54.4 million.
The Small Business Incubator Project was launched in 2010 is one of their most successful initiatives under the mentorship and guidance of Susan Ackerman-Berman who heads up transformation at Pnp.
The objective of the projects is to assist small black businesses whether it is getting their products into the Pnp stores as well as other retail industries or providing a service. They are given the financial assistance as well as guidance in all aspects of the business process such as financial, operational, accounting, safety, employment, marketing and production in an effort to sustain their small business. Their mission is to enhance and develop skills such as teaching techniques of organic farming as well as encourage entrepreneurship, self reliance and provide employment opportunities to become long term BEE suppliers in retail. This contributes to economic growth and helps alleviate poverty in rural communities.
Prospective candidates can apply online via the PnP website. They need to meet a set of criteria such as producing a business plan, business must serve the community and create jobs, must be a registered non-profit organisation and the project must be income generating in order to qualify for assistance. Once the application has been submitted PnP does an evaluation and in order to ensure viability of the product or service.
The Small Business Incubator currently has 50 small business and 54 farmers in the project with an average growth of 72% in 2010 to 2011.
Some of the recipients are: * All Seasons Milk (an initiative for a rural community of Malmesbury (creating jobs and supplying PnP retail stores in Western Cape) – CEO and Chairperson Dr Christa van Louw * Flower Valley Trust (encouraging the growth and production of South African fynbos in the local community of Stanford)- owner Lydia van Riet * Barry Hill Trust (produces charcoal, briquettes and wood) – supplier Sibusiso Tshabalala * Loaded Smoothie (a healthy smoothie drink) – owner Mario Thompson * Scrubbing up (manufacturing of detergents ) – supplier Thapelo Mokoena * Yes! soft drink (aimed at the youth of South Africa) co-owners Jean and Francois Van Louw
Some of the products are only available in certain regions. The company’s progress is monitored and they are given regular feedback. Should they not meet or adhere to certain business requirement such as hygiene and safety, they can get struck off the program.

How does this programme benefit the organization in marketing terms?
Pnp’s value proposition is production, product, market and societal orientated. In a marketing context they differentiate themselves by being a family orientated South African business. Everyone in the Ackerman family has some kind of involvement in the business where the individual family member’s expertises are highlighted. The PnP slogan ‘Inspired by you’ implies that this is what their customer’s wants and needs, thus making the brand customer centric and improving market perception to the consumer.
None of the initiative says anything about the brand. It is community and people focused coupled with eco friendly initiatives using innovative ideas such as organic farming. I am in agreement with Strydom saying that “it is believed that life on earth is threatened by activities such as manufacturers polluting the soil, water and air and therefore that green marketing is a further example of social responsibility marketing”. By tapping into all the above-mentioned areas in respect of the CSR,PnP is achieving this marketing strategy indirectly by telling consumers that they care about their environment and the people.
Store managers and franchisees are encouraged to source products and use the services of the companies in the Small Business Incubator for their stores thereby supporting this initiative as well as the communities that they serve.
Through this CSR, PnP creates the following customer perceptions: * PnP cares about people, communities, development, economic sustainability and the environment. * PnP is committed to creating jobs in rural communities by making them self -sufficient and supporting local farmers. * Consumers have evolved and become more personally aware, therefore when it comes to purchasing choices it is not only based on price but social responsibility. * Customers feel that through purchasing from PnP, they are indirectly contributing to these wonderful projects and initiatives, thus saying something about them as individuals. * Customers become emotionally invested, again indirectly feeling that they are contributing to the development of South Africa and the building self sustainable communities. * PnP uses some of these initiatives in advertising campaigns to show case their support on their website, subtly suggesting their involvement in their local communities. In one particular add the store manager or produce manager goes out early in the morning to visit his local suppliers in the community, ordinary people that he engages with on a personal level. * PnP are able to encourage consumer support of many of their charities and initiatives in their monthly magazine called Fresh Living which has won numerous awards since its inception and well as on the PnP website.
None of the initiative says anything directly about the Pnp brand itself. It is community and people focused coupled with eco friendly initiatives using innovative ideas. Another benefit to any company who embarks on a social responsibility project is that they get tax benefits from government as a reward. All companies have CSR as one of the components in their BEE certification, so it benefits them to participate in such initiatives.
Conclusion:
This is how one South African company can make a difference whilst getting top international ratings and recognition because of their CSR. With reference to the above-mentioned interview Gareth Ackerman was quoted saying that ‘he deeply believes that the only way to do good business is to take care of his society which will in turn take care of him’. A student at the talk asked him, ‘But how do we do that?’ and he replied, ‘Do what is right; if you are not personally comfortable with it, it must be wrong’.

References: 1. According to Gareth Ackerman, International Business Global Speaker series, The Fletcher School, 6 October 2008, Cybele Cohran MALD ’09 (Viewed 5 March 2013) 2. Pnp.co.za @ PnP 2013 (Online) http://www.picknpay.co.za/picknpay/content/en/foundation-introduction (Viewed 6 March 2013) 3. Strydom JW (1999), Introduction to Marketing (2nd Edition), Juta & Co Ltd, Cape Town. 4. Pnp Sustainable Living Report 2010 (Online) Moshe Karaso (5 March 2012) http://www.sustainablelivingfestival.co.za/PnP%20Sustainability%20Report%202012.pdf page 36 (Viewed 8 March 2013)