"Hanes for Good" Case Study
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Hanesbrands, a prominent U.S. undergarment company, engages in cause marketing through its 'Hanes For Good' initiative, partnering with the Salvation Army and Invisible People to donate socks to the homeless during the holiday season. The company's efforts include leveraging social media to raise awareness and encourage community involvement, alongside its commitment to sustainability and corporate philanthropy. With an annual contribution of millions of socks and a focus on employee engagement in volunteer efforts, Hanes aims to enhance its corporate image and drive long-term sales growth.
"Hanes for Good" Case Study
- 1. - 1 - IMC 624 Cause Marketing Prof. Furlow 3/7/14 Assignment: Week #9 Case Study: Hanes For Good Figure 1 Retrieved from facebook.com/hanes
- 2. - 2 - Introduction According to a recent NPR report, there are more than 610,000 homeless people living in the United States, 222,000 of which are family members (Chappell, 2013). We often see charity programs for donating food to the poor, but another basic necessity that is equally as important is clothing. Hanesbrand, through its popular sock brand Hanes, works to donate millions of socks to those in need during the holiday season each year. In partnership with the Salvation Army and Invisible People, Hanes uses social media to propel its message of #HanesForGood to provide millions of these products to those in need. In addition to the yearly giving effort, HanesBrand also participated in other corporate social responsibility work around sustainability and disaster relief to help improve and maintain its strong reputation while donating time, efforts and funds towards meaningful and strategic causes. About the Company Hanesbrand is one of the most recognized undergarment companies in the U.S. Some of its top brands include Hanes, Champion, Playtex, Bali, Maidenform, Flexees, JMS/Just My Size, barely there, Wonderbra and Gear for Sports. The company mainly focuses on the U.S., Canada and Mexico but also serves some select markets in Europe and Asia as well (Our company, 2014). The company was founded in 1901 and is based out of Winston-Salem, NC. Hanes sells bras, panties, hosiery, underwear, socks, t-shirts and activewear. They are the market leader of intimate apparent. According to its company profile, more than 80% of U.S. households have Hanes products in them. Innovation has been a primary growth factor for the company as it
- 3. - 3 - revolutionized tagless t-shirts and underwear and also invented the sports bra (Out company, 2014). Hanes brings in 4.6 billion annually and it continues to see success in terms of profit. “Shares of Hanes are up more than 90% in the past year, as the company benefited from the Maidenform acquisition, lower cotton costs and newer, technical products like its Vapor quick-dry fabric and Smart Size bras” (Banjo, 2014, pg. 1). With 51,500 employees across 25 countries, Hanes is listed at Number 512 on the list of Fortune 1000 companies (Our company, 2014). Hanes uses its size, in terms of both reputation and employees, to partner with a number of non-profit to push its social initiatives. Specifically, its recent partnerships with the Salvation Army and Invisible People have become a primary focus, especially during the holidays. This work, in turn, helps to improve its reputation and assist in long-term sales growth. About the Cause Hanes has worked hard in recent years, devoting both time and money to its ethical business initiatives. Dubbed “Hanes for Good,” the company participates in a number of strategic cause- related efforts that reflect its mission and brand positioning. According to its company bio, Hanes is a U.S. Environmental Protection Agency Energy Star winner for 2013 as well as being U.S. Green Building Council certified. In fact, Newsweek named the company on the list of Top 500 greenest U.S. companies for its work towards reducing energy use, carbon emissions and water use for a more sustainable environment. The company has also devoted much work
- 4. - 4 - towards corporate philanthropy to improve the communities across the world where it has offices and facilities (Our company, 2013). One of Hanesbrand’s biggest cause-related campaigns each year is its partnership with the Salvation Army and Invisible People to supply the homeless with Hanes socks. The Salvation Army, founded in the late 1800s, is the second largest charity in the U.S. (only behind the United Way) and serves a variety of community members in need of food, clothing and shelter (The Salvation Army, 2013). Meanwhile, Invisible People is a non-profit that was started in just 2008 by Mark Horvath, a former homeless individual who became devoted to giving homeless individuals in America a voice. By using video, blogging and social media, the non-profit works to raise awareness of the homeless issues in our country while also raising funds at the same time (About, 2013). By strategically teaming with these organizations, Hanes is able to latch onto a very large organization (Salvation Army) while also helping promote a smaller, up-and- coming non-profit (Invisible People). At the same time, both groups are tied closely to Hanes’ initiative to reach the homeless with its sock products, a much-need and requested items among these needy individuals. In turn, this reflects positively in the eyes of its consumers. Hanes is America’s No. 1 sock brand. Based on this feat (pun intended), it chooses to spread holiday comfort and cheer by donating 250,000 pairs of socks to the homeless in various homeless shelters in New York and California. The socks are distributed by The Salvation Army, with marketing support from Invisible People (Hanes Celebrates The Holiday Season, 2013, pg. 1). This past winter was the fifth year that Hanes embarked on this campaign and it has been
- 5. - 5 - increasingly tying social media to its cause. “Over the past five years, Hanes has donated 2.7 million socks to the needy at the holidays…To share a story about providing comfort this holiday season or join the conversation, follow #HanesforGood throughout the holiday season” (Hanes Celebrates The Holiday Season, 2013, pg. 1). Overall, Hanes is very progressive in the marketing of its social initiatives. This includes its more CSR-focused campaigns related to the environment and sustainability, as well as its annual consumer-oriented cause in giving socks to homeless people. Cause Marketing Tactics Hanes manages a number of marketing tactics to help promote its cause-related initiatives. The first is a website devoted solely to the efforts. The easily recalled URL, hanesforgood.com, fits the overarching name of their goodwill efforts. The site features facts, videos and articles to inform key publics about their environmental and social campaigns. This acts as a “homebase” for all the work that they do. They leverage this through online communication and drive end users and stakeholders here to learn more about their causes. Press releases are one prime example that link to this site. Secondly, Hanes is keen on using social media to further the reach of its cause-related efforts. Author and lawyer Andrew Grumet shares his insight into the benefits of new media in assisting with social initiatives. “Cause-related marketing programs are constantly evolving, particularly since the development of the internet. Creative companies have, with increasing frequency, designed new programs incorporating the web and social media to motivate participation”
- 6. - 6 - (Grumet, 2013, pg. 1). Hanes utilizes a combination of Facebook, Twitter and YouTube to promote its causes, most especially its sock drive. By using the hashtag #HanesForGood, it can monitor and interact with social media users who are getting involved in discussion, asking questions or praising the efforts. Specifically, they’ve posted pictures of homeless individuals during the campaign. Tagged with #HanesForGood, the caption includes a quote from the people about their experiences and challenges. The photos have generated thousands of likes and comments (Hanes, 2013). “What's so amazing, and what makes this a genuine cause campaign, is there is no commercial anything attached. Hanes is just giving the socks away…Plus, Hanes created a social media campaign that showed real homeless numbers and helped share the stories of real people experiencing homelessness” (Horvath, 2013, pg. 1). Finally, Hanes incorporates media outreach and public relations into its efforts to raise awareness for the cause and help strengthen its image. Not only does Hanes itself engage in media outreach, but it relies on its partners the Salvation Army and Invisible People to do the same. In fact, the two non-profits write their own blog posts and post their videos, respectively, which are picked up by third party sources and shared on the social web. Media sites, like Huffington Post, as well as various online bloggers have covered the campaign and wrote about the company’s support for homelessness relief. One blogger, Megan, wrote: “Even though folks served by The Salvation Army may have greater needs such as shelter or food, they consistently get excited when offered a new pair of socks. Because honestly, nothing feels as good as a new pair, especially for someone used to wearing damaged, dirty or no socks at all” (Megan (blogger), 2013), pg. 1).
- 7. - 7 - Moreover, Invisible People’s founder and spokesperson, Mark Horvath, guest blogs for some online outlets, sharing his experiences with being homeless while also plugging Hanes’ campaign. “I’ve been homeless myself…Socks are like gold to the homeless. Most people don’t think about having cleans socks. We take it for granted…Socks are the most requested but least donated item needed at shelters” (Waters, 2013, pg. 1). These media hits help push the message for the sock campaign and help consumers connect Hanes with this cause. Hanes distributes press releases before and after the holiday season in connection to the campaign, as well as using public relations work to promote its sustainability and volunteer programs throughout the year. Charity Giving In addition to its planned social initiatives, Hanes has also been quick to react to current events with charity giving that is in line with its mission. After Hurricane Sandy, which left thousands stranded outside of their homes without food and clothing, Hanes responded with efforts similar to its annual sock giving. “HanesBrands partnered with Fashion Delivers to provide more than $1 million worth of apparel to the regions most affected by the storm. Fashion Delivers is a New York-based nonprofit organization that distributes apparel and home furnishings to victims of natural disasters around the world” (Hanes and the Salvation Army, 2012, pg. 1). This move by the company helped strengthen its image, while demonstrating more authenticity and passion when it comes to helping those in need.
- 8. - 8 - Volunteer Efforts In addition to its corporate social responsibility efforts, Hanes also integrates employee development and employee volunteerism within its cause-related efforts. “Each year, Hanesbrands and its employees support a number of educational initiatives that improve the lives of children by volunteering their time in local schools. For example, each year, more than 60 Hanesbrands employees volunteer at Carver High School in our hometown of Winston- Salem, N.C.” (Employee development, 2013, pg. 1). Through the volunteer programs, Hanes not only gives back and helps educate local students in its communities, but camaraderie is built throughout the company and the goodwill effort is able to be used within public relations programs, helping to continue enhancing corporate image. “These programs help to build brand awareness and affinity, while strengthening trust and loyalty among customers. They put a human face on the company, reinforcing the idea that the company is comprised of real people that just happen to be organized around a particular product or service…Employees that volunteer tend to experience greater job satisfaction, and improved morale (Siegel, 2012, pg. 1). In addition, Hanesbrand pays for many of its employees overseas to return to school to earn their diplomas, as well as working with students in the North Carolina area (where its headquarters are based) as mentors to aspiring textile scientists (Employee development, 2013, pg. 1). Recommendations “Developed and executed correctly, cause branding is a strategy to differentiate a brand from its competitors and positively impact a brand’s corporate reputation” (Rama, 2011, pg. 44).
- 9. - 9 - Although Hanes does a nice job at working in sustainability within its business practices and operations, while also engaging in a number of employee programs and charity given, there are several ways it can improve its cause-related marketing activities. The first is a corporate driven recommendation. Although sustainability and environmental consciousness are great causes, they aren’t too closely aligned with Hanes and its products. Instead, Hanes should focus more on causes like its sock drive with the Salvation Army and Invisible People. Rather than just making this a holiday special, Hanes could build this out to become its primary ongoing cause all year long. By contributing regularly, Hanes could enhance the level of press mentions and social media buzz surrounding the campaign, and affect more homeless people at the same time. Additionally, it could get consumers involved through a BOGO effort (Buy One Give One), where for every sock order placed online through its website, it will donate a package of socks to homeless charities. This would allow more customers to get involved and play a role within the campaign. At the same time, Hanes could form an even closer partnership with the Salvation Army and invisible People and work to develop content, like videos and blog posts, which speak to the cause and help further the reach of the non-profits’ messages. Eventually, Hanes would be tied seamlessly to the cause of fighting homelessness in America, a much more strategic cause that environment friendliness. Secondly, Hanes should look to the market for ways to adjust and improve upon its current campaigns. According to Forbes, there are roughly 80 million Americans who belong to the millennial generation, ages 18-35, who are expected to become the largest demographic in the
- 10. - 10 - workforce by 2020. A Pew Research Center study found that millennials place high priority on helping those in need, even more than high paying jobs. They value committees and like using company time to do good (Goudreau, 2013). With that market data, Hanes should focus its causes on efforts where millennials can relate. This could be a volunteer program where employees can hand deliver the free socks to the local charities, or an employee support program where workers can turn vacation time into dollars that are donated towards the cause. By reacting to the changing landscape and demographics of the workforce, Hanes can develop initiatives that are long-lasting and can be executed for many years to come. This can also play a role in recruitment, helping to bring in quality employees into the company. Conclusion Hanesbrand boasts some of the best-selling undergarment products in the country. But its marketing doesn’t solely revolve around TV commercials and an endorsement with NBA legend Michael Jordan. The large corporation also participates in cause marketing initiatives to strengthen its image and boost sales in the long term. Through both environmental and social efforts, Hanes ties itself to large societal causes while making strides to make a difference. More specifically, each year the brand makes an effort to donate hundreds of thousands of socks to the homeless in a strategically executed campaign tied to social media and non-profit partners Salvation Army and Invisible People. The yearly campaign has helped raise awareness for the homeless in our country while providing millions with much-needed holiday gifts.
- 11. - 11 - Sources About. (2013). InsvisiblePeople.org. Retrieved on March 3, 2014 from http://invisiblepeople.tv/blog/about/ Banjo, S. (2014, February 27). Hanes ready to try on more deals. Wall Street Journal. Retrieved on March 1, 2014 from http://blogs.wsj.com/moneybeat/2014/02/27/hanes-ready-to- try-on-more-deals/ Chappell, B. (2013, November 21). Number of homeless declines again, but gains aren’t universal. NPR. Retrieved on February 24, 2014 from http://www.npr.org/blogs/thetwo- way/2013/11/21/246589487/number-of-homeless-declines-again-but-gains-arent- universal Employee development. (2013). Hanesbrandcsr.com. Retrieved on March 3, 2014 from http://www.hanesbrandscsr.com/employee-development.html Goudreau, J. (2013, March 7). 7 surprising ways to motivate Millennial workers. Forbes. Retrieved on March 6, 2014 from http://www.forbes.com/sites/jennagoudreau/2013/03/07/7-surprising-ways-to- motivate-millennial-workers/ Grumet, A. (2013, Mar/Apr). Cause marketing done right. Corporate Board, Vol. 34, Issue 199. Retrieved on March 1, 2014 from EbscoHost Research Databases Hanes. (2013, December 12). Facebook.com. Retrieved on March 6, 2014 from https://www.facebook.com/hanes Hanes Celebrates The Holiday Season By Donating Half A Million Socks To Charities Helping
- 12. - 12 - Those In Need. (2013, December 17). Cause Marketing Forum. Retrieved on March 1, 2014 from http://www.causemarketingforum.com/site/apps/nlnet/content2.aspx?c=bkLUKcOTLkK 4E&b=6430205&ct=13536481¬oc=1 Hanes and The Salvation Army Launch Fourth Annual Sock Drive. (2012, December 12). Hanes. Retrieved on March 1, 2014 from http://ir.hanesbrands.com/phoenix.zhtml?c=200600&p=irol- newsArticle&ID=1765445&highlight Horvath, M. (2013, December 22). Coke gave us Santa, Hanes is helping to fight homelessness. Huffington Post. Retrieved on March 1, 2014 from http://www.huffingtonpost.com/mark-horvath/coke-gave-us-santa- hanes_b_4490471.html Megan (blogger). (2013, December 11). Hanes sock donation warms the hearts & feets of shelter residents. The Salvation Army. Retrieved on March 1, 2014 from http://blog.salvationarmyusa.org/2013/12/11/hanes-sock-donation-warms-the-hearts- feet-of-shelter-residents/ Our Company. (2014). Hanes. Retrieved on March 1, 2014 from http://www.hanes.com/corporate Rama, P. (2011, May). Cause branding and its impact on corporate image. Journal of Marketing & Communication, Vol. 7, Issue 1. Retrieved on March 1, 2014 from EbscoHost Research Databases Siegel, R. (2012, June 5). The “ROI” of employee volunteering. Triple Pundit. Retrieved on March
- 13. - 13 - 3, 2014 from http://www.triplepundit.com/2012/06/roi-employee-volunteering/ The Salvation Army. (2013, November). Forbes. Retrieved on March 3, 2014 from http://www.forbes.com/companies/salvation-army/ Waters, J.(2013, December 24). I hope you get socks for Christmas. Fundraising with Businesses. Retrieved on February 25, 2014 from https://medium.com/nonprofit-for-profit- partnerships/b8f951b62c38