Current Issues in Marketing Strategy

On July 31st 2008 Connex will add the Peter Mac cancer research Institute to it's list of community and social sponsorships. The event is much like McHappy Day, but instead of $1 being passed on for purchase of a delicious grease burger, it is a train or tram ticket. What I question is why? I can't believe there is any strategic value in the move other than a warm fuzzy feeling at night and lets be honest, at the end of the day companies are in it to make money!



I'm surprised Connex have money to 'give away' after they were forced to pay the state government $25 Million for failing to meet performance standards throughout 2007. The question still remains, why advertise?

The Strategy

Increase trial to increase repeat rate
Puplic transport is a fairly inelastic product (I say this even though I have just started catching the train to work because of petrol prices), there are not many factors that will increase demand. McHappy day sees me and many other storm down to Maccy D's for a discressionary $3 purchase of a big Mac. I feel happy that I have made a difference, supported a worthwhile charity and all while getting lunch. Connex's Peter Mac day, does not have this effect.

Branding
Is it a branding exercise? Maybe buy supporting the local community Connex endears themselves to the government and increases their chance of being contracted for another term (keep in mind they have to win the contract to stay on). This one is a possibility, they also sponsor; VIS, SEDA, Modern Art museum, moving Gallery, Richmond Football Club. So this is not a one off promotion of community spirit, there must be a deeper reason.

Individual Stakeholders
Never underestimate the power of individuals. I have seen on more than one occasion, an influential individual swing a board room decision based purely on emotion. It is not beyond belief that someone on the Connex board has been affected by Cancer and convinced the company to make a stand against it.

Josh Strawczynski's Opinion

Public transport promotions do not offer any extra luxury, perhaps if they reinvested some of their ad spend into hiring '5 minute angels' (short massage specialists) onto the trains it would persuade people to trial a train for a day.

I can sense some readers unhappy with the thought that you need to give to get, but I ask you, how many chairty functions have you been to for $100 a ticket? Would you have donated even half of that if someone had shook a can outside your car window on the way to work? Of course not, because when it comes down to it, we are no different to Connex, we earn our money for us, not someone else (No offense to any thin skinned readers).


Sam Berringer's Opinion
I applaud Connex for their community involvement. We all know someone affected by cancer and the Peter Mac foundation does amazing work. The strategy I have to guess is however for political gain. I personally think they could benefit a lot more from upgrading facilities, but that's just me.