Cause Marketing ProgramOct - Dec 2016

As an international leader in the sporting goods industry, Columbia is dedicated to giving back to our communities and conserving the

outdoors in a dynamic, meaningful way.

❖

Columbia believes that outdoor education and conservation efforts ensure everyone will be able to enjoy the outdoors for generations

to come.

COLUMBIA FOR GOOD

PROGRAM OVERVIEWOBJECTIVES:

1. Drive incremental retail sales and increase brand awareness by engaging customers in a cause marketing promotion that supports local non-profits.

2. Increase traffic to stores by 2%3. Attract 150 attendees per event

STORES:

8 retail stores (5 Sportswear, 3 PFG):

• Alpharetta, Chicago, Miami, New York, Oakbrook, Portland, Seattle, Southlake

TIMING: October 13 - November 12, 2017**Chicago Market Nov. 17-Dec. 15

PROGRAM OVERVIEW

DETAILS:• Local non-profit partner chosen in each market

• Store Promotion: 4-week promotion period with 10% of retail sales donated to

the partner when GUGB was mentioned at checkout

• Events: 14 in-store events (2 per market)• 10% of all sales donated to partner during events

• Marketing: comprehensive marketing effort around promotion and events■ Bag stuffers, flyers Columbia emails

■ In store signage FB Event pages

■ Non-profit partner communications Eventbrite Event pages

■ Influencer outreach and PR Paid FB Posts

TOP LINE PROGRAM RESULTS

The program generated incremental sales of $128,724, which equates to a ROI of 38% overall, and a 2.24% increase in total store traffic.

• Total traffic increase during promo 2.24% (+12% vs. goal)• Total Sales During Events: $18,253• Total Sales During Promo: $128,724• Total donation to non-profits $18,281 (includes $6,075 in product)• Total Media Impressions: 10.6 million• Highest store sales: Seattle $78,795• Program ROI 38%

PROGRAM IMPRESSIONS

Portland Seattle Chicago Southlake Miami Avalon NYC TOTAL

Partner Marketing 59,174 2,547,085 413,221 44,189 51,025 47,230 6,059,694 9,221,618

Influencer Marketing 287,346 116,357 385,818 120,703 145,685 105,796 43,155 1,204,860

Paid FB 63,647 47,404 26,726 14,822 27,177 49,862 15,236 244,874

Columbia emails* 6,153 2,447 75 1,490 1,139 3,609 14,913

TOTAL 416,320 2,713,293 825,765 179,789 225,377 204,027 6,121,694 10,686,265

* Opens Only for First Event

INFLUENCER OUTREACH

OUTREACH OBJECTIVE: Identify influencers, entities and publications in each market with an engaged following to post about and attend events and promote the in-store promotion

● Reached out and educated influencers about the program to ensure they were a good fit

● Requested blog, Facebook, Twitter, and Instagram posts and provided them with formatted post materials

● Invited them to attend events to further the conversation between non-profit and audience

● Reached out to about 15-20 influencers per market with approximately 5-10 posting per market

● Influencers and groups posted when they perceived the program to align with their values and be of interest to their following

● Some influencers felt the program was too commercial

INFLUENCER OUTREACH HIGHLIGHTS

PARTNER OUTREACH

OUTREACH OBJECTIVE: Non-profit partners were required to market to their communities and membership to encourage participation in the promotion and attendance at the events.

● In each retail market, GSG selected a local non-profit organization that shares Columbia’s passion for the outdoors, and that connects active people to nature through their core mission.

● 9.2 million impressions generated through their collective outreach

● Outreach was through:● Facebook

● Twitter

● Dedicated email

● Website

● Instagram

● eNewsletter

PARTNER OUTREACH HIGHLIGHTS

IN-STORE EVENTS

Event Objective: Draw new customers to the store to

learn about non-profit partner and drive sales to benefit

partner by hosting 14 events in 7 markets.● Events were two or three hours in the evening, designed to

foster community among attendees● Donations from local beer sponsor with loyal following for

each event● Total attendees: roughly 600● Local food vendors provided bites to accompany our

“brews”● Local musician performance at every event● At the peak of each event, a presentation by the non-profit

partner about relevant topic facilitated discussion, and an opportunity for audience to engage and participate

● Event marketing was through store signage, influencer outreach, media outreach, bag stuffers and flyers, outreach by non-profit partners to their audiences

IN-STORE EVENTS

MARKETING MATERIALS ● Marketing materials were created using Columbia images

and using Columbia standard formats. The following materials were provided to stores:

○ Leaselines (6)○ Table toppers (4)○ Bag stuffers (quantity?)○ Flyers (quantity?)

● Marketing materials were provided to influencers and partners to use for posting and outreach

○ FB, Twitter, Instagram posts○ FAQs

● Media Alerts and Calendar postings were created and sent to key publications

● Additional materials were created for○ Columbia emails○ Columbia FB Event posts○ Columbia website (CGR)

● Over 80 pieces of collateral created

Leaseline

Tabletopper

Bag Stuffer

ADDITIONAL MARKETING

● BSSP○ Paid facebook posts○ Targeted by location and to Friends of Columbia, fans of environmentalism,

sustainability, Sierra Club members etc.○ 245,000 impressions○ 3,500 clicks○ $.88/CPC

● COLUMBIA○ Emails

■ Sent to Columbia mailing list within 20 miles of event zipcode■ “Greater Rewards” bonus points offered for event attendance ■ 1 email per event; 124,275 delivered; 14,913 opened first event (12%

open rate)○ Facebook posts○ Blog Post

PROGRAM BUDGET

Portland Seattle Chicago Southlake Miami Avalon NYC TOTAL

Event Costs $1908 $1833 $1611 $1918 $2464 $2,769 $1486 $13,989

Paid FB $500 $500 $500 $202 $500 $500 $360 $3,061

In Store Signage $475 $475 $482 $475 $475 $475 $440 $3,297

TOTAL $2883 $2808 $2593 $2595 $3439 $3744 $2286 $20,347

KEY LEARNINGS EVENTS

● Events attracted highly engaged attendees with knowledge of, or interest in, partner organization○ Though attendees were fewer than expected, those who did attend were highly engaged○ There were a few extraordinary events that depressed attendance at a some events (Trump protests, torrential rain)○ The events and promotion helped to build community of like-minded people○ Seattle and Portland partners had table set-up in stores throughout promotion○ Attendance of relevant meet-up groups led to great connections in the markets

● It is critical to have enough time to plan and execute events○ Second set of events were more successful and easier on staff due to more time for planning○ More time for marketing and spreading the word is needed○ There is a need to ensure store managers are aware of all marketing that is taking place

● Different store locations require different event specs○ Locations had different event timing and day of week needs, based on location (in mall, downtown work area, etc)

● Making the events turnkey is critical for store managers○ Run of show calls could have happened even earlier, and included full management staff so they felt prepared○ While there were a few small hiccups, most of the event details were very well planned and executed

● Holding 14 events in 7 weeks was very ambitious (and expensive)○ Event costs averaged $1,000/event (even with discounts and donations secured) + $500 paid marketing = $1500 per

event (not including planning time costs)

KEY LEARNINGS

PROMOTION DESIGN AND MECHANICS

● Staff understanding of the promotion mechanics was uneven across the stores○ Part-time staff often did not know about the promotion, creating a bad impression with consumers

● 10% donation to non-profit with no incentive to the consumer was not perceived as a strong call to action

○ This was especially evident in PFG stores● Program could benefit from Implementing a simpler method for recording donations

○ Bar code scanning was complicated and frequently did not work, or was not known to all store staff○ In markets scanning reports have many discrepancies○ “Secret shopper” testing revealed many issues with scanning and promotion knowledge in stores

● Some promotion mechanics were out of our control○ Change to NYC FB event page resulting in “Cancelled Event” emails to responders

KEY LEARNINGS

NON-PROFIT PARTNERSHIPS

● Partners are seeking a longer term partnership with Columbia vs. a short promotion ● We asked the partners to do a lot, for a very small donation commitment● Facilitating communication between partners and store managers before each event was

very successful○ NY and Chicago found this useful○ Creates more personal connection between store and partner ○ Allows non-profit partners and stores to be fully aware of all marketing efforts

● Some partners were far more motivated and involved than others○ Forest Park Conservancy and Washington Trails were highly involved, manning tables at stores, and their

stores recorded the highest levels of sales○ GoFish Georgia and Chicago Park Foundation/District were also great partners with strong following○ CCA/Star, Grapevine Recs and Parks did not resonate as well with consumers in the markets○ Friends of the Highline were harder to engage due to their other high profile donors and projects

KEY LEARNINGS

INFLUENCER OUTREACH, PR, AND PAID FB

• Meetup.com outreach was effective, free PR, and great for getting groups to attend events• Influencers helped draw crowds to the events and drew attention to the promotion

• Influencers across all markets were receptive to posting about the event on their social channels without compensation

• However, many influencers felt the event was too commercial, benefitting Columbia more than the non-profit, leading them to not support the events or promotion

• Some influencers had conflicting pre-existing sponsors (especially fishing influencers)• Perhaps having influencers play a dedicated role at the events could help

• Social media posts and inclusion on event calendars only require a one-month lead time, or less, and we were able to secure many of these

• Lead time for larger circulation traditional/digital publications is 2-3 months, so we could not secure these

• BSSP was difficult to engage meaning many paid posts were late• While Paid Posts delivered 244,000 impressions, and led to 3,500 clicks, they did not results in many event

attendees

KEY LEARNINGS

MARKETING MATERIALS

● Continuity across all marketing materials led to a strong visual presence for the program across all media

● Creating formatted materials helped partners and influencers easily communicate the program in a consistent way

○ “Media Kit” materials were used by partners and influencers○ Materials also used for Paid FB posts, Event pages

● Materials were “busy” due to complicated and dual messages needed○ Communication of promo dates, with partner name, and the promo mechanics (mention partner at checkout)

meant a lot of copy○ Some materials had to carry the promo message and the event message○ Photo chosen for the PFG stores was not ideal for clear messaging since it was busy

● Long approval process at Columbia meant much rework and many delays○ Knowing guidelines upfront would have saved many hours of work○ Feedback was not consistent across sizes○ PFG image was busy○ Specific city images were not available for NY or Chicago

KEY LEARNINGS

OVERALL

● This program was very ambitious with many moving parts, and not a lot of time. Overall feeling was that it was a great idea, but it was rushed, and not all parties had clear communication, as it came together quickly.

● All parties agree working with local non-profit partners is a great idea and engages the Columbia community

● GSG spent over 1,000 hours executing the program and events; it was extremely time intensive and complicated. Biggest areas of work were:

○ Managing partners to post, present, and then report○ Planning events (vendors, materials, ROS, A/V, communication, timing)○ Outreach to influencers, meet-ups, and media○ Creating 80+ pieces of marketing materials

RECOMMENDATIONS

● EVENTS: ○ Hold only 1 event per market instead of 2 to allow focus and preparation, and a larger spend for 1 big event○ Customize date and time by location, and do not hold all on events on the same day○ Consider paying a well known speaker to attend to help attract attendees○ Include a draw for consumers, such as a discount, or bigger prize○ Ensure speaker topic is engaging and relevant to audience

● PROMOTION○ Simplify promotion mechanics - no scanning

■ Shorten promo period, and allow donation on ALL sales during promo (bar is being set by Patagonia)○ Offer an additional consumer incentive beyond the donation to partner (coupon, discount, giveaways)○ Create a specific project that Columbia’s funding will support instead of general partner support○ Include a fundraising goal per store, and track activity in store○ Send “secret shoppers” to all stores to ensure staff is informed and mechanics are working○ Offer store incentives for highest number of GUGB sales completed (store competition)

RECOMMENDATIONS

● COMMUNICATION○ Use Run of Show document early to keep all partners on the same page

■ Include all marketing efforts so all partners are informed○ Conduct Run of Show calls earlier, and include partners in the calls○ Allow longer lead times for Columbia approvals on marketing materials or have Columbia create the

materials internally

● NON-PROFITS○ Create on-going relationships with non-profit partners to show commitment○ Foster consistent engagement throughout the year

■ Partner presence in store monthly■ Volunteering or events with partners for employees and customers

○ Reevaluate CCA/Star, Grapevine Parks and Rec, and Friends of Highline as relevant partners

FOR THE FUTURE

● Simplify and shorten the promotion period, allow percent of all sales during the period (eliminate scanning)

○ Create Day of Giving with percent of all sales going to partners■ Earth Day■ Giving Tuesday■ National Public Lands Day■ National Trails Day

○ First Tuesday of every month, etc.○ Once a quarter

● Ensure events have long lead times and a headline speaker○ Allows more time for marketing and communications○ Ensure all parties are in communication at least 1 month in advance○ Pay speaker or influencers as needed○ Customize event times per store to fit store location

● Invite non-profit partners to participate year round at the stores○ Tables in stores monthly○ Materials in store○ Volunteering events with non-profits

APPENDIX

POS MATERIALS

Bag Stuffer-Miami Flyer-Miami

POS MATERIALSLease Lines-Portland

TableToppers-Chicago

PARTNER MARKETING EXAMPLES

ALPHARETTA

Geo-targeted email

Facebook

PARTNER MARKETING EXAMPLES

CHICAGO

Website Home Page

Facebook

PARTNER MARKETING EXAMPLES

MIAMI

Website Facebook

PARTNER MARKETING EXAMPLES

NEW YORK

Facebook Twitter

PARTNER MARKETING EXAMPLES

PORTLAND

Blog postFacebook

FPC post on Columbia FB page

PARTNER MARKETING EXAMPLES

SEATTLE

Website

WTA post on Columbia fb page

PARTNER MARKETING EXAMPLES

SOUTHLAKE

Facebook

Twitter

INFLUENCER MARKETING EXAMPLES

INFLUENCER MARKETING EXAMPLES

EVENT PHOTOS

GSG ROLE• Research, recruit and manage non-profit partners

• Facilitate and negotiate contracts

• Manage partner PR, messaging, and communication

• Determine topic of store presentations with each partner

• Create Marketing and Training Materials • Store signage, flyers and bag stuffers

• FB and social media posts and emails

• FAQs, Training Docs

• Execute local influencer outreach and PR • Outreach to local influencers

• Send media alerts and calendar alerts

• Plan and coordinate all store events • Hire vendors and musicians

• Order event supplies

• Establish “Run of Show” with store managers

• Coordinate details with partner speakers

Shari BoyerCEO

456 E. ORANGE GROVE BLVD. SUITE 302PASADENA, CA 91104sboyer@goodsolutionsgroup.com(626) 229-9991 ext. 1007

GOODSOLUTIONSGROUP.COM