Marketing Analysis - Charity - Coursework Example

Marketing Analysis - Charity Table of Contents Background 3 Australian Red Cross 3 Literature Review 5 SWOT Analysis 9 Alternative Marketing Strategies 15 16 Critical Analysis of the Suggested Strategy and Justification 17 Recommendation for Adopting and Outcomes Expected 18 References 20 Background Alike modern democracies, the Australian society has various non-profit charitable sectors that deliver variety of social welfare services to its citizens. The sector seem to have enacted from the concerns, goodwill as well as the insights of both men and women having philanthropic, humanitarian as well as religious beliefs. It has continued to serve, diversify and expand its operation since the early days of its inception. The charitable sector offers its citizens a variety of services such as care, support, accommodations, and counselling, training to the children or families, people with disabilities, the unemployed, older people and also offers its services to those who are suffering from different harmful addictions, the homeless people and the refugees (Industry Commission, 1995). According to the statistics, it has been noted that around 700,000 young people are being taken care of at their home at Australia deserving choice in care and accommodation (Youngcare, 2010). Australian Red Cross Out of the various national Red Cross societies, Australian Red Cross Society is one of the members. It was founded in the year 1914 by Lady Helen Munro Fergusan. The mission of this organisation is to serve the people in Australia with the aim to improve the lives of the helpless people through the promotion of the humanitarian values and laws and is being recognised as a humanitarian organisation in Australia. The main competitor of the organisation is the Lions Club. The number of trained volunteers is more than 30,000 and the entire program is funded with the help of the donation by the public and the corporate partnership. The structure of the Australian Red Cross has been divided into high levels namely the council, the boards and the chief executive officer (Australian Red Cross, 2010). It has been found that the financial position of the organisation has been improving since last few years. Literature Review Revenue & funding Providing services Branding reputation Cost of advertising There are large numbers of non profit organisations in Australia that embrace the idea of participating in the market in order to maximise their revenue. The non profit organisations raise funds from the government grants and contracts, fees that are paid by the members and other fund-raising activities (Barraket, 2008). Volunteering is one of the activities that are chosen in the non profit organisation as a means of providing services (Zappala, 2000). Brand reputation or status provides communication regarding what the charity organisation did, what are its values and causes (Hankinson, 2006). Cost of advertising depends upon the nuisance cost towards the viewers, the expected advantages to advertisers from the viewers and the substitutability of program factors as this affects the equilibrium advertising levels to be low or high (Anderson & Coate, 2005). Development of trust between non-profit organisation and its constituencies (Ritchie & Et. Al., 2006). Inconsistency in the delivery of services is a real challenge for the organisation (Dall’Olmo Riley & Chernatony, 1999). According to Stride (2006), it has been noted that the concept of branding is being adopted by the charities at an increasing rate. The charities are value-based organisations. The author opines that a clear understanding of how the values are conceptualised in branding is imperative for the establishment of whether branding is suitable and an efficient tool in the charity business (Stride, 2006). According to Ritchie & Et. Al. (2006), brand plays a vital role in the non profit sector as it provides innumerable benefits making the non profit sector a powerful tool. It is to be remembered that the branding may not be good or appropriate for all kinds of non profit organisation (Ritchie & Et. Al., 2006). As observed by Becker-Olsen & Hill (2011), in the cut-throat competition it becomes difficult and critical for the non profit organisations to be more brand-centred and differentiate themselves in the market. The high fit sponsorship programs and the low fit sponsorship programs affect the brand identity, brand response, brand meaning and brand relationship (Becker-Olsen & Hill, 2011). As per the opinion of Ewing & Napoli (2005), with the non-profit organisations operating in competitive and turbulent environment, they are beginning to recognise the need to become more ‘businesslike’. They are also realising the value of marketing in order to achieve competitive advantage (Ewing & Napoli, 2005). According to Mort & Et. Al., (2010), the non profit organisations face various challenges that include issues related to the multiple stakeholders in managing the brands and other matters related to the need to negotiate partnering and sponsorship arrangement (Mort & Et. Al., 2010). It has been opined by Brady & Brennan (2006), that the non-profit organisations often consider marketing as being inappropriate to their needs. The following lines seem to be true if the marketing is taken as a traditional and outdated ‘transactionally’ focused mode. The relationship marketing has the ability to meet the unique needs of non-profit organisations by focusing upon the relationship and multiple markets rather than transactions (Brady & Brennan, 2006). As per the views of the Bennett & Sargeant, (2004), it has been found that there are many topics that are prominent concerning the marketing activities of the non-profit organisations during the last two decades. Therefore, with these activities there is focus upon the development and the effect of the marketing orientation amid the organisation members, the corporate involvement, the practice and theory of fundraising, the motivation of change in the social behaviour in the non-profit affairs. It has also been found that much attention has received towards the employment of the marketing tools and techniques as a mechanism to attract the volunteers to work in the non-profit, arts and social organisation (Bennett & Sargeant, 2004). As per the views of Mulyanegara (2010), it has been found that the strongest effects on perceived brand orientation are performed by inter-functional coordination. However, there is no close association between the perceived brand orientation and competitor’s orientation. This factor has been comprehended (Mulyanegara, 2010). It has been argued by McCort (2009), that relationship marketing offers a strategy that is agreeable to non-profits who are interested in donor relations (McCort, 2009). As per the views of Venable & Et. Al. (2011), the various concepts of marketing such as corporate identity, branding and image are the important strategies for non-profit organisations (Venable & Et. Al., 2011). SWOT Analysis Strengths Opportunities 1. More than 100 millions volunteers worldwide and 60,000 members in Australia itself (Australian Red Cross, 2010). 2. It assists about 233 million people on an average by their activities each year (Suter, n.d.). 3. Continuous government support (Australian Red Cross, 2009). 1. The globalisation of the economy, information and money have resulted in tremendous opportunities for Australian Red Cross and the non profit sector in Australia in general (Philanthropy Australia, n.d.). 2. The Red Cross in Australia has tremendous scope from the international expansion. 3. The non-profit sector is receiving increasing attention from various directions. Thus, it will enable improvements in this sector in terms of better funding. Weaknesses Threats 1. Blockage of the organisation’s progress in terms of territory and state boundaries (Australian Red Cross, 2007). 2. Lack of effective leadership is evident in most organisations in the non-profit sector (Australian Red Cross, 2007). 3. The organization works in an independent way and requires better integration and communication with people and community (Australian Red Cross, 2007). 1. The capital access of non-government organisations in Australia is limited. Long term funding is a crucial issue faced by the Australian Red Cross Society (Lyons, 2007). 2. Managing the workforce in this sector is becoming increasingly difficult (Families Australia, 2007). 3. Maintaining proper relationship with the governments is a crucial issue (Families Australia, 2007). Strengths The Red Cross is an established organisation in Australia. The Red Cross in Australia has an overwhelming number of volunteers and members. Moreover, they have considerable support from the government in terms of funding and grants. This helps them to meet their long term funding requirement and effectively manage their funding cycle. These factors have contributed to the success of the Red Cross in Australia. The main strength of the charity is that it supports and provides services to more than 233 million people in an average per year which is an achievement for the charity. The charity has received Federal Government support and assistance from many states, territories and local government. It has also received support from corporate partners and generous donors. The other strength of the charity is that it is able to provide tailor-made support to the vulnerable young people who are aged between 16-25 years in Brisbane. Weaknesses The Red Cross Society in Australia is limited by the territorial and regional boundaries. Therefore, it is extremely difficult for them to make progress by expanding into new territories. There are substantial regulations and barriers, which make expansion difficult although Red Cross has international presence. The non-profit sector in general lacks effective leadership and the concept of effective leadership has not been much applied thought in this sector. This is the major weakness of the charity as it is going to have an adverse effect on the successful operation of the charity. The Red Cross in Australia works in isolation and in an independent manner. They need to establish proper communication with the community and their workers and also needs to pay due attention towards the integration with the people and the community. Opportunities The Australian Red Cross society will experience increased opportunities due to globalisation. In the globalised economy, the Red Cross will have greater access to capital and will be able to perform better in their community. They will be able to achieve mobilisation of their resources and effectively exploit available opportunities. If Red Cross in Australia is able to utilise its opportunities effectively through proper leadership and management then they will be able to easily achieve their purpose (Philanthropy Australia, n.d.). The strategy 2015 is an opportunity for the charity that provides it with a clear plan of its work for next five years in order to make a positive and lasting impact on disadvantages in seven of its priority areas. With the opening of Tennant Creek office, there lies great opportunity for the Red Cross in Australia. It also plans to employ Aboriginal people as they expand its work in the region. These strategies will help the charity to be strategically ahead and serve the society with best of its resources and skills. It will be able to be a leader in the particular sector and gain more popularity. The Red Cross in Australia will benefit in general from their global expansion and the scope in the non-profit sector in the 21st century is increasing at a rapid pace. This is because globalisation is ensuring easier access to money and information. Moreover, organisations will be benefited from the greater economic scope available due to increasing awareness about the type of beneficial work they are providing to the society at large. Red Cross, Australia will benefit from this fact. Threats The access of capital for organisations in the non-profit sector is restricted. The sources of capital are generally limited in the non-profit sector. The non-profit organisations in Australia do not carry out profit distribution to members and supporters. This may discourage people from investing in a non-profit organisation since it does not yield any return. Provision of funds in this sector is primarily generated through a philanthropic approach. This fact poses a threat to the long term funding needs of Red Cross in Australia. Capital raising for expansion and restructuring is difficult in this sector. The only access to capital, i.e. the grants from the government, is not sufficient. Any organisation has a mammoth task in convincing the government of their funding needs (Lyons & Et. Al., 2007). Since Red Cross depends to a large extent on government grants thus maintaining long term healthy relations with the government is essential. This will ensure easy access to grants when required by the organisation to support their long term funding needs. Managing the workforce is also comparatively more difficult in the non-profit sector compared to other sectors. There is significant challenge in terms of recruitment, retention, training, reporting and accountability. The Red Cross has to ensure satisfaction of their workers by providing them better provision and identification of training needs (Families Australia, 2007). Alternative Marketing Strategies In order to overcome the underlying weakness with this organisation they can look to implement various alternative strategies in order to beat the competition and stay strategically and competitively ahead while serving the needy in a better way. It has been found from the SWOT analysis of the organisation that the organisation’s main weakness has been its leadership skills. Therefore, it is suggested that the organisation first realises the need of the effective leadership program. It will help to make the organisation achieve sustained success and enable the non-profit organisation to fulfil its mission. The leadership may be more important outside the business sector as the power is distributed more widely in the social sector organisations. The charity sectors require both executive skills and the legislative skills. If the non-profit organisation has the leaders who have both kinds of skills then society will be benefited at large. Adoption of the leadership programs by the Red Cross will help the individuals who are volunteers and the other helping bodies to develop the necessary skills in order that they can effectively contribute to their communities (The Denver Foundation, n.d.). After recognising the importance of the leadership, Red Cross needs to train the leaders with the aim to serve its communities better and surpass all other organisations. The prospective leaders need to be briefed about the history of the organisation and then train accordingly. He must be provided training on the organisation’s values, mission and goals. In light of the importance of the leadership in the non-profit organisation, SWOT analysis can be conducted. In this context, it is found that the main strength of the recommendation provided above is that it will help the Red Cross to overcome its weaknesses. With effective leaders the organisation will be able to cater to the needs of the various parts of the country. Red Cross needs to pay more attention towards the promotional strategies as well in order to reach a wide group of customers and the needful. This will help the organisation to overcome the weaknesses and will also assist it to get certain kind of funding from the government. The promotional strategy must be interactive in order to attract the various interested parties towards it. They can promote their organisation in various ways such as free media coverage, words of mouth campaign by involving their volunteers and through carefully organised series of presentations. Red Cross also needs to have close relation with the local media partners. Critical Analysis of the Suggested Strategy and Justification The above two alternative strategies have been chosen in light of the weaknesses that is posed by the Red Cross. The key pros of the recommended strategies are that it will help the organisation to build its brand image among the public. There are other benefits that the charity will be receiving if the promotional strategy is adopted. It will be able to receive funds not only from the local government or from within the country itself but other authorities as well as other countries may also show due interest to provide support to the charity. The support may be in the form of cash or kind. It can also receive competitive advantage and become the leader in the particular sector if its pays attention towards the strategies as recommended. The main disadvantage of the above recommended strategy is that in promotion of the non-profit organisations, there is tendency to oversell the products or services. If, for instance, any constituent has a specific expectation regarding the product or service and their expectations are not met, then they might be disappointed. When the non-profit organisations tend to oversell their program, the customers’ inevitable disappointment can be particularly damaging. They may cease supporting this program and may be critical when describing the organisations to others (Wolf, 1999). The other strategy that has been suggested is the leadership program. It has been recommended because Red Cross doesn’t have proper managerial commitment. The organisation has not realised the importance of the leadership program. For an organisation to be competitive, it requires the support and commitment of the leaders. Without the means and the commitment of the leaders to support and enable its strategy, the non-profit organisation is constrained when it comes to necessary activities such as providing a forum to work together in an organised manner or the coordination of the resources (McLeish, 2010). However, the major disadvantage of the above discussed strategy is that in the cutting edge of the change, Red Cross may face the difficulty in building appropriate infrastructure or human capability while sustaining their engagement in social change (Riggio & Orr, 2004). It is analysed that Red Cross is going to be benefited by the above mentioned two alternative strategies. Recommendation for Adopting and Outcomes Expected There are innumerable charitable organisations in Australia that have been providing various services to the needy in the form of love, care, support, accommodation, food and so on. The scope of the charity sector is broad in Australia. Red Cross is one of the recognised charities extending its support to the people in Australia. It has various branches all over the world with more than one million volunteers. It has been recognised that branding plays a vital role in the non-profit organisations through which they are able to differentiate themselves from their competitors. In light of the weakness posed by the Red Cross, two strategies have been suggested, one being the leadership or managerial strategy and the other being the promotional strategy. The two strategies will help the organisation to devote its resources fully and will be able to enhance its competitive skills as well. Effective leader will help to solve any kind of issues that arise and will be able to serve the society well. Promotional strategy will help the organisation to gain recognition in the country as well as all over the world. The strategy will also help them to raise funds from various sources which are also one of the problems of the organisation. It needs to seek attention in such a way that the stakeholders are interested in the concerned organisation and contribute to the success of the organisation. 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Zappala, G., 2000. ‘How Many People Volunteer in Australia and Why Do They Do It’, Research and Advocacy Briefing Paper. Read More