Marketing Plan for World Wildlife Fundraising With $1 Million Budget - Case Study Example

The recent global economic downturn had caused a decline in the WWF revenues in the previous year and there was a considerable downturn of members’ donations while operating expenses continue to rise. There is a need therefore to draw up a plan that will raise the funds to a level higher than last year for the organization to fully effectuate if not all, then at least its priority projects. The basic strategy and objectives of this plan are as follows: 1. Marketing Plan Objectives The basic quantitative objective of this Marketing Plan is to increase WWF’s revenues from last year by more than ten-fold, or by $2.25 billion. This projected increase in revenue will be realized using a more efficient system of marketing in which a minimal fundraising budget, i.e. $1 million, will be made to yield the said amount of revenues. 2. Projected Number of New Members A successful implementation of this Marketing Plan is projected to increase the membership of the organization at a minimum of 0.045% or an additional 2250 members all of which are capable of donating at least $1 million each. Every WWH graphic display is expected to bring a minimum of 12 new members in the span of 12 months. 3. Projected Changes in the Market Position This Marketing Plan is projected to change the market position of WWF the top with respect to revenues earned as well as to fundraising efficiency. 4. The Marketing Plan Strategy in Brief Under the present plan, WWF will take the high end road by primarily directing fundraising efforts towards the people with chunks of disposable income - the world’s wealthiest people. The basic stages involved are: identifying the target market; identifying the common activities and places frequented by the target market, and; promoting the product subtly in strategic areas within these places employing the 6Ms of ‘wait marketing.’ 1 Situation Analyses 1.1 Customer Analysis To be able to maximize its revenues, the WWF must target a market which can part at least $1 million from their account as donations without the latter wasting much of its time convincing them of the worthiness of its cause. This means that such a market must have the capacity to give as well as the susceptibility and the willingness to identify with its causes. According to a study, there are about 10.1 millionaires in the world. 1 Most of them live in the United States and Europe. A perusal of their profiles show that many of them are in the following industries: software and technology; media and entertainment, and; real estate. 2 The rest are involved in investments, telecommunications, retail, finance and manufacturing. Most are married with children and are above the age of 50. 3 According to the World Wealth Report released by Merrill Lynch and Capgemini in 2008, there are 10.1 million HNIWIs (High Net Worth Individuals or those with assets $1 million and above) holding a total net asset of $40.7 trillion. Out of this figure 1 % or 95, 000 belongs to the UHNIWI (Ultra High Net Worth Individuals) group which has minimum assets of $30 million. These individuals make up 0.15 of the world’s population and their geographical distributions are as follows: North America, 3,000,000; Europe, 2,900,000; Middle East 2,850,000; Asia-Pacific, 2,600,000; Latin America, 400,000, and; Africa, 100,000. 4. The Forbes Magazine, on the other hand, recently came out with a more detailed list of the crème de la crème. According to the report, there are 793 billionaires in the world, 45% of whom are in the United States. The total riches held by these billionaires amount to $2.4 trillion and 44% of this entire amount is in the US. Figure 1 shows the geographical distribution of the world’s top richest people. Almost half of them reside in North America, primarily in the United States which has 355 billionaires. Western Europe has 20%of them residing in its area, most of who are living in Germany, the United Kingdom, Switzerland, Spain and France. The world’s wealthiest people do not have only the means to donate and support WWF but they would likely be the most interested in seeing a healthy and safe planet because of the millions and billions of dollars they have at stake. After working hard to build their respective empires, these business magnates would want to perpetuate their wealth and businesses even after their deaths. 1.2 Competitor Analysis There are many international organizations whose objectives run parallel with WWF as regards protecting, conserving and saving the environment and natural habitats. Among these are: the Nature Conservancy; the Natural Resources Defense Council; the Sierra Club; Figure 1 Geographical Distribution of World's Top Billionaires Conservation International, and; the Wildlife Conservation Society. 5 Of all these groups, the nature Conservancy provides WWF’s the toughest competition. The organization was founded in 1951 and is presently headquartered in Arlington, Virginia. It has more than one million members all over the world, protects 119 million acres of land and 5,000 miles of river. 6 It operates in all 50 states of the US, and in more than 30 countries including Africa, Asia Pacific, the Caribbean, Central America, North America, and South America. Its work includes the preservation and conservation of habitats like coral reefs, forests, freshwater ecosystem, great rivers, islands, marine ecosystem, and rainforests. 7 The Forbes Magazine has listed Nature Conservancy as one of the top 200 US Charities in 2006, a list which also included WWF. It cited the organization’s net asset as $4.25 billion, and total revenue as $1.07 billion, with $518 million coming from private support, $89 million from government support, and $459 million from other sources. Forbes rated its fundraising efficiency at 88%, and pegged its fundraising expenses for FY 2006 at $62 million. 8 TNC uses direct mail strategy for fundraising and the help of SAS International, a career marketing and management firm, to help them devise a solution to deal with customers and potential customers’ data and make fundraising efficient, including a high turnover per every dollar spent. SAS helps TNC determine how and which segments of its target market are most susceptible to particular fundraising strategies. 9 It also uses its website to solicit and accept donations. 1.3 Company Analysis The Forbes.com, the online magazine of Forbes, listed WWF as one of the top 200 US charities yet only rated its fundraising efficiency as 79% which pales in comparison to TNC’s 88%. The survey also indicated that WWF trails TNC by leaps and bounds as the former’s revenue for that year was more than one billion while WWF had only $138 million. 10 WWF therefore is not clearly the leader in its field. This Plan seeks to change all that. It is a two-pronged strategy to reposition WWF: to the top-ladder position revenue-wise and fundraising efficiency-wise, and; to catapult WWF as the top charity cause in the philanthropists’ list of causes. Business Week came out with a list of the top 50 most generous philanthropists, and only two among them have adopted environmental conservation as their causes. All others are into health, education, biomedical and scientific researches.11 Sixteen of these people gave a whooping $100 million to charity but the most spectacular news was a donation of $723 million by a lone donor to one charity. The lesson here is that wealthy people are willing to give more if they can identify with the charitable cause. 1.4 Community/Climate Analysis The present confusion created by the global warming issue and climate change can make it an opportune time to make WWF a very relevant organization in the eyes of the public and governments worldwide. The activities of WWF in the areas of conservation of rainforests in the Amazon, Borneo and Sumatra, and Congo Basin are pivotal because the cutting of trees in the rainforests can add to the release of carbon monoxide which is touted as the basic component of the present global warming. Furthermore, climate change will inevitably alter the lives of many of the world’s living species endangering even those which are thought to be less endangered. In this respect, WWF can invoke these recent developments to appeal to world leaders, governments, multinational corporations and the world’s richest people to support its cause more than ever. Businesses selling nature as their primary attractions will also be interested in the preservation of their surroundings as well as the halting of global warming. 2 Marketing Mix 2.1 Product The product being sold to potential customers in this marketing plan is WWF itself and what it does for the environment. The individual or entity who buys this product through donation is remunerated on three aspects: on the tangible side, one will eventually live in a better and safer planet; on the practical aspect, charitable donations in most countries constitute tax deduction, and; a feeling of altruism that one has contributed to making the world a safer place. In addition, identifying oneself with charitable causes is a way of promoting one’s name and business and getting the consumers’ trust. All other conservation groups offer similar rewards but WWF is affiliated with more than 100 countries and has membership of more than 5 million. This can only imply wider coverage, greater efficiency, more effective campaigns and more certain results. In addition, WWF’s standing collaboration with many big names in various industries guarantees that it can draw cooperation from them for safe environmental practices. 2.2 Price Unlike ordinary, tangible products, it is not feasible to put a tag on individual WWF donations and compare it with those of its competitors. Although this marketing plan is conducted along the line of a business plan, it must stop at the line where it can be charged as being purely business otherwise the public will be alienated and offended. Thus, all pressure for eliciting huge donations from prospective donors should be done subtly without making it appear that WWF is arm-twisting them. No minimum or ceiling should be imposed and all amounts of donations should be welcomed although the standing of the individuals in the target segment guarantees that they will not give less than a million dollars. The main thrust however of this plan is to exceed the fundraising revenues earned by its top competitor, which is why this campaign although fundamentally qualitative is executed quantitatively. 2.3 Place This Marketing Plan primarily employs the concept of the 6M Wait Marketing and therefore excludes all other traditional fundraising media, like mail and internet distribution channels, that WWF is also presently undertaking. The essence of this Marketing Plan is to subtly bring fundraising to places frequented by the target segment where they are relaxing and enjoying themselves – and therefore, where they let their guards down. As shown in Fig. 1, most of the components of the target segment are found in North America, primarily the US and Canada, and Western European countries. These areas, and also Australia/New Zealand, should be the foci of the WWF marketing plan. These areas have a considerable number of golf courses, ski resorts, hotels and vacation resorts and all other places frequented by the wealthy for vacation and relaxation which are rated the world’s best. All the world’s top 20 for every vacation, sports and relaxation places are deemed target places of this Marketing Plan. Exotic island paradise in distant and remote places will also be added subsequently. 2.4 Promotion The gist of the promotion is to collaborate with top casinos in US and Europe, the world’s top golf courses, top ski resorts, top restaurants, top hotels and vacation resorts. WWF will be placing magazine stands with graphic display frames in their lobbies and lounges, in return of which WWF will provide such establishments with top world and local newspapers and magazines. The Marketing Plan using Alexander Ribbink’s Wait Marketing 6Ms, is as follows: 1. Mission: To raise funds for WFF 2. Means: A $1 million dollar budget 3. Message: the money one worked hard for has no value in a devastated earth. 4. Moment: While the individuals in target segment are waiting in lobbies of clubhouses, resorts and hotels 5. Media: back-to-back graphic poster wedged on clear acrylic magazine stand (Fig 2). 6. Measurement: Vacationing magnates waiting in lounges of golf clubhouses, ski resorts, vacation resorts, first class airlines, etc. will see the WWF posters wedged in magazine stands prominently displayed. Clear acrylic Magazine/leaflets Back-to-back pockets graphic display frame Fig. 2 Clear Acrylic Magazine Stand (source: Display2go 12) 3 Budget and Controls 3.1 Key Performance Indicators The KPI that will be primarily used to monitor the progress and effectiveness of the marketing Plan are revenues and customer related metrics. What is important here is quality rather than quantity in patronage. If the amount of donation has considerably increased and most of the donors come from the target segment, then the Plan is successful. Needless to say a contrary result implies failure. In such a scenario suspect cause must necessarily lie on the effectiveness of the method used to attract the target segment. In the event of failure to achieve the objectives laid down in the earlier part of this Plan, a reappraisal of the Plan and the strategies it used is in order. There is a need to reevaluate the presentation of the product as potential donors failed to find connection with it. There might be a need to do a more extensive research in the customs and habits of wealthy people when it comes to charity work. 3.2 Marketing Plan Monthly Table The projected expenses for the proposed display of acrylic magazine stand with graphic display frame are $1000 each for stand and $3000 for the back-to-back poster apiece or a total of $4000 for every display. The stand is pegged at a higher cost because it must be able to fit in with its anticipated plush surroundings. The price of the poster is also jacked up to cover the daily costs of newspapers and weekly or monthly magazines. Furthermore, the projected revenues and increase of membership below may not necessarily follow the timeline set in the table but may come in advance or later in the 12-month period. A minimum of 12 new members is expected to be signed up for every display in the entire 12 month period. Expenses Plan of Action Key Performance Indicators 1st Mo 100 displays @ displays in world’s ●increase in number of membership 4000/u = $400,000 top 25 golf courses, by 0.002% top 25 ski resorts, ●new membership are primarily top 25 hotels, top 25 UHNIWs, some HNIWs vacation resorts ● min. rev of $100M (1mo) 2nd Mo ●increase in number of membership by 0.006% (from original no.) 3rd Mo Assessment based ● new members= UHNIWs,HNIWs on KPI= + or - ● min. rev. of $300M (3mos) 4th Mo +, 75 displays @ add displays in the ●increase in number of membership 4000/u=$300,000 world’s top 25 casinos, by 0.0095% (from original no.) -, 25 displays @ top 25 restaurants in ● new membership are primarily 4000/u= $100,000 the US, top 25 res- some HNIWs taurants in Europe ● min. rev. of $475M (4mos) 5th Mo ●increase in number of membership 6th Mo by .022% (from original no.) ●new members UHNIWs & HNIWs 7th Mo Assessment based ●min. rev. of $1B (7mos) on KPI= + or - 8th Mo +, 75 displays @ add top 10 internat’l ●increase in number of membership 4000/u=$300,000 first class lounges by .027% (from original no.) - 00.00 (40), next top ten golf ●new members UHNIWs & HNIWs courses, next top ten ●min rev of $1.25B (8mos) vacation resorts, Us top ten yacht Clubs, Europe top 10 Yacht clubs 9th Mo ●increase in number of membership by 0.045% (from original no.) 10th Mo ●new members UHNIWs & HNIWs ●TOTAL min rev of $2.25B (12mos) 11 Mo 12th Mo Bibliography (2009) ‘Global 500’ Fortune, CNN.Money.com. http://money.cnn.com/magazines/fortune/global500/2009/full_list/. 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