Based on the case of Young Care, the analysis of marketing situation for Young Care will be further analyzed in the areas of strengths, weaknesses, opportunities and threats in this essay. Under the assistance of analysis about the SWOT environment, further recommendation for Youngcare to face the environment will be given based on many marketing mix strategies including product, promotion and place strategy to assist Young Care’s future development in the future.
Market size of charities
In charitable industry of Australia, there are more than 40,000 organizations with nearly 75 billion dollars income contribution, which is a big proportion of the financial income of Australia. And for health sector, about 7.3% of the income is used in this sector, which Young Care is in. That is, the market size of the charitable industry in Australia is relatively big due to its financial performance.
According to the case study about Young Care, its marketing objectives include several points as figure 2.0 described.
Figure 2.0 Young Care’s marketing objectives
|● Raising awareness for people with high-care needs|
|● Securing support to fund its work|
|● Providing a helpline for people caring for young people with high-care needs|
|● Continuing to build more accommodation facilities for young people in need|
|● Undertaking further research about the issue faced|
Situation analysis for Young Care
According to Elliott, Rundle-Thiele and Waller (2010), SWOT analysis is the analysis which can support organizations to indentify the internal strengths, weaknesses, opportunities and threats in the environment to understand its marketing position market better. Hence, for Young care, we can get the relatively thorough analysis on the environmental situation for this not-for-profit organization in Australia based on the case.
Figure 1.0 SWOT analysis of Young Care’s case
As Palmer (2009) promoted that the strengths of an organization is those organizational attributes which often help this organization to accomplish its corporate objectives. And in this case, we can find there are several strengths of Young Care as the not-for –profit organization in Australia, which is aimed to offer help for both the young adults who needs care and those people who care those young adults with hope, possibility dignity and other assistance.
The first strength of Young Care is from the macro environment of Australia of the charity industry. The philanthropic environment in Australia, where Young Care operates is well fostered. For instance, there are three major charitable organizations described in this case such as Red Cross, McGrath Foundation and Young Care. That is to say, the competitors of Young Care in the Australian market are regarded as less. Hence, for Young Care, the market potential is huge that it can enjoy a good market share relatively peacefully under the competition with the other two competitors. In a word, the good environment for charitable organization to develop in Australia is strength for Young care to purchase future development.
Secondly, from this case, we can find the fact that although in the beginning year of Young Care’s operation it generated $2 million funds taking up only less than 1% of the total funds in worldwide not-for–profit organizations, it fast doubled its funding to $5.1 million one year later. In another word, the developing capability is so strong, which promote its charitable business to a certain extent. Based on this evidence, we can define such kind of developing ability owned by Young Care is its second strength.
Thirdly, we should speak highly of the marketing team of Young Care. The case told us that the high competitiveness of its marketing team assist Young Care to gain an increasing awareness in its target market in Australia. For instance, in the recent years, Young Care has gained not only the high awareness but also the award among those major marketing institutes due to its campaign concentrating on the young people deserve young lives designed and implemented by its marketing team. In a word, this kind of relatively high market share and reputation promoted by its marketing team is also the strength of Young Care in the charitable industry of Australia as well.
Kotler and Armstrong (2008) mentioned weaknesses of an organization indicate these attributes which may often hinder its effort to purchase its corporate or business objectives. And in the case of Young Care, we can also find several weaknesses of this charitable organization as follows.
At first, every activity both in commercial objective or non-profit objective to attract the attention of target consumers asks for a certain sum of marketing funds. While in the charitable market of Australia, if Young Care prefers to gain more donation and funds, it is a must for this organization to offer a certain sum of marketing budget to promote its business, especially these advertisement and promotion activities. Although, the capital generating ability of Young Care is regarded as relatively strong in our above analysis, it is a charitable organization with relatively limited capability to generate more capital to promote its business to a wider range of target people compared to other commercial organizations. In this point, the budget for marketing of Young Care is regarded as relatively low, which is the weakness of this organization.
Secondly, as a charitable organization is a non-for-profit organization, it isn’t established for the profit. Hence for Young Care, to attract suitable and competitive working talents may be a weakness because the salary level for its employees can’t be as high and satisfactory as other commercial organizations can offer, which may limit its charm to attract suitable talents to join in the charitable activity to offer care for the young adults who need care so much.
According to Elliott, Rundle-Thiele and Waller (2010), opportunities are often defined as the external elements which are potential useful and helpful to assist organizations to achieve their objectives. In this case, we can find many opportunities for Young Care.
On the one hand, the increasing awareness of the young care issues in Australia market is a good opportunity for Young Care to further expand, which we can observe from the increasing amount of its annual donation. For instance, just in the second year of Young Care’s foundation, its revenue has increased by 156% the following year, which indicate the great marketing potential for the charitable industry especially the young care industry which Young Care is engaged in.
On the other hand, based on the information of Young Care’s case, although there are so many factors to influence the donation behaviors of people in Australia, there is still a certain kind of group which is so suitable for Young Care t target them as the potential customers to generate funding. This certain kind of group is this kind of people who are without children and have relative sound financial situation that they are the biggest customers of Young Care not only today but also in the future. That is, this kind of group also offers Young Care great opportunity to increase its revenue.
Elliott, Rundle-Thiele and Waller (2010) also defined threats as the external factors to be potentially harmful to limit organizations’ efforts to achieve their objectives. In this case, there are also two kinds of threats faced by Young Care.
At first, as the public awareness for not-for-profit organizations become greater and greater, the competition from other competitors including the charitable organizations such as Red Cross, McGrath Foundations and other originations as well as other kinds of not-for profit organizations such as schools, sports teams or community groups may also become more and more fierce, which may make Young Care lose a certain proportion of market share and hinder its future expansion.
Secondly, the economic situation in the world region including Australia may be not seemed so well due to the impact of financial downturn and crisis from 2007 to 2009. And moreover, in the recent years’ euro debt crisis, the economy of Australia has also been affected to a certain extent. Generally speaking, the bad economy situation also gives Young Care great pressure and threat in its future developing road.
According to Mcleish (2001), we understand the golden principles for these not-for –profit organizations to develop that it is so important for those organizations to concentrate on its marketing mix, which including the areas such as the price strategies, place strategies, promotion strategies, products strategies, people strategies and so on. Hence, in the following, we will base on the above analysis on the above discussion of the strengths, weaknesses, opportunities and threats to figure out those necessary and suitable marketing mix strategies for Young Care to respond to the environment both internal and external.
i) Recommendations responding to the strengths
And as we mentioned above, one of the strength of this organization is the increasing awareness of the society on the young care. So to respond to this strength and maintain this strength, Young Care had better make its products more attractive.
According to Mcleish (2001), the product is regarded as an important element for organizations offering to the market so as to meet the requirements and wants of the customers, which plays the first and most significant role of the marketing mix. Here, the product of Young Care as a charitable organization is as the description in the case that it exists to offer injured or high care Australians with hope, possibility and dignity. Simply speaking, the product of Young Care is its service.
For Young Care to make its products become more and more popular among its target population in the Australian market or even the global market, Mcleish (2001) gives us many suggestions as below.
As the pack of products is so important for those commercial organizations attract more customers. For the service such as these help offered by Young Care, we also recommend it to enrich its connotation and concept to make more and more target population to be attracted. For instance, the services or assistance of Young Care is to give those injured or high care needed young adults and their families with the care and help. And as we mentioned above, one of the strength of this organization is the increasing awareness of the society on the young care. So to respond to this strength and maintain this strength, Young Care had better make its services more attractive.
The packing of the services offered by Young Care is suggested to be more eye-catching. The most important packing platform for Young Care is its official website (www.youngcare.com.au). While as we have surfed, it is recommended t be further developed to enrich its services including the support for high care, at home care service, young care connect, housing and so on to make them more attractive. For instance, it can offer more service related moving stories to pack its service for young adults who need the care much moving to both attract the eyes and sympathy of these customers who skipping the website of Young Care. Secondly, we also recommend Young Care to adopt those high technologies such as the great content management system to make the products information of Young Care more understandable. For example, the advanced content management system can help Young Care to offer products’ information on the basis of the clicks from visitors and present those keywords to drive visitors to Young Care’ website in the first place.
Generally speaking, we recommend Young Care carefully and deliberately design the packing of its services to be more eye and emotion attractive to gain more donations.
As we have mentioned, Young Care enjoys a good position as the charitable organization in Australian which only a few competitors such as Red Cross and McGrath Foundation and so on. To maintain such kind of strength, Young Care is recommended to further promote itself in the Australian society to increase its publicity as a charitable organization with high reputation. According to the survey from Varadarajan (2010), the higher fame is enjoyed by a not-for-profit organization, the easier for it maintain its competitiveness in the competition. For Young Care, to meet the trend of more and more high awareness of young care charity, it is important for Young Care to take the advantage of social media to share the public with these good deeds implemented by Young Care. As the already used social media including Face book, Twitter, YouTube, RSS, the Quora, Yelp, Google Hotpot and other famous media are also good for Young Care to adopt to maintain its publicity in the Austrian or even global charitable market.
Moreover, besides the adopting of social medium to maintain its strength as famous charitable organization concentrating on young adults’ care, the cooperation with the good relationship building with these social networking are also curial for Young Care to maintain its position, because the good relationship with these social media can make these media more willing to spread the news and achievements to a wider range of audiences (Varadarajan 2010). In a word, the relationship building with social network and other partners are also a significant strategy for any not-for-profit organizations to follow including Young Care.
The third strength of Young Care is its outstanding management team. Just because the efforts of the management team of Young Care, the donation increasing rate of this charitable organization can grow so fast according to the case. Hence, to maintain the competitiveness of the management team in Young care, we recommend it to adopt the people strategy as one of its marketing mix strategies to promote its charitable business.
As Lovelock (2008) mentioned, it is important for organizations to emphasize the people strategy due to its significance on the involvement both direct and indirect in the services or products consumption process. To further maintain and strengthen the competitiveness of the management team in Young Care, special designed training and developing programs are important. As there may be different objective from different promotion campaign on donation generating, we recommend Young Care to develop different teams based on different donation campaign or promotion activity. As there are five stages for team development including forming stage storming stage, norming stage, performing stage and adjourning stage (Daft 2010). Young Care can choose different talents to make up the temporary management team to accomplish each its donation campaign or promotion activity. And under the development of the five stages, each team member can gain a lot due to the cooperation with different people under different events, which is a good training and developing strategy for Young Care to develop its management team and maintain their competitiveness in the charitable industry of Australia and even in the global market.
ii) Recommendations responding to the weaknesses
The primary weakness of Young Care is regarded as the limited marketing budget. Although the advertisements fee charged for those charitable organizations are seemed to be relatively lower than other commercial organizations, the cost of marketing for Young Care is still a big sum of money. Hence to conquer this kind of weakness, we recommend Young Care to adopt sending email newsletters to save cost and reach more potential customers. According to Kotler and Keller (2006), the Newsletter often plays an important role for those non-for –profit organizations to promote its charitable campaign and reduce the marketing cost in promotion. For example, Young Care can design some moving and attractive newsletters or advertisements on attracting people to donate on young care and then email those newsletters or advertisements to the target population or widely to the large number of netizens. As we all now, the email is one of the fastest and economical promotion tools for both commercial and non-profit organizations to promote their business, for not-for-profit organizations including Young Care it is a good choice to reach its customers and save cost.
Besides the above place strategy to using email, simplifying the donation process both online or via other means such as hotline donation, bank donation and so on is also necessary for Young Care to save cost. In fact, in Young Care, the expected return on its promotion activities or other marketing strategies is to generate more donations. While the donations may not only include the money donation but also include the time or help donation to those young adults or their facilities that need the help and care. Hence for Young Care, it is important for Young Care to offer simple and clear guidance for their customers to read. Moreover, trustworthy accesses for donator to donate are also significant to reduce these potential donators worry on whether their donation can be received by Young Care. In a word, with the trustworthy and simple donation process, the funding can be generate more quickly from Young Care’s customers, which can reduce the pressure of limited marketing budget of Young Care to a certain extent.
The other weakness of Young Care is its relatively weak competitiveness to attract more talents. As the money is limited, it isn’t seemed for Young Care to afford the high salary cost of some upper level talents both in managerial aspect or other aspects. Hence, based on the view of Burrow and Bosiljevac (2008), we recommend Young Care to welcome these brand enthusiasts to become its members or creators. Paley (2000) mentioned, generally speaking, these not-for-profit organizations may enjoy the highest level of brand enthusiasm. As these enthusiasts of Young Care respect the brand and what it is doing so much, their participation in the business of Young Care can save this organization a lot of time and money. For instance, these people can work with no payment, which save the cost of Young Care to employ people with salary. Second, there are also many talents inside those enthusiasts, who are good at marketing, website design or even interpersonal communication. Moreover, the social networking owned by those enthusiasts can’t be ignored either. In another word, with the allowance of those enthusiasts to join in the business of Young Care, this not-for-profit organization may not only relieve its headache on talents’ lacking but also save a lot of salary cost, which is regarded as a good people strategy for Young Care to market its business in young adults care.
iii) Recommendations responding to the opportunities
In the above discussion, we find one of the opportunities for Young Care is its increasing popularity in the public due to the higher and higher awareness of people on young adults and their families that need help. And the other opportunity for Young Care is the certain group of people who are childless and rich to be the potential customers of those non-for-profit organizations as
For this point, Young Care is recommended to seize this opportunity by the following marketing mix strategies.
To respond to the great market potential of young adult care in Australia market, Young Care is necessary to implement thorough investigation so as to better reach its target population.
As this case summarized, there are many variables to influence donation behaviors of people including the wealth of family, marital status, dependents’ number, age, gender as well as geographic factor and so on. For Young Care, its target population is mainly defined as wealthier individuals, female population and people without children. As these kinds of people are a large population, which is so potential for Young Care to pay great attention.
On the one hand, Berry and Wilson (2000) suggested deliberate and thorough understanding of the population can help Young Care understand these target population much clear. For example, to promote the products of Young Care to female consumer to donate money to Young Care or other kinds of donation such as non-monetary, moving story or emotional elements inside its promotion advertisements to gain their support which is based on their emotion factors- full of sympathy. While for those wealthy or celebrity people, the promotion strategy had better be more skillful especially the exposure of the donation name list to the public can help these celebrity or rich donators to build their reputation in the society which is also the biggest attractive point.
On the other hand, as carrying out the research on the preference promotion strategies for those target population, Young Care should also explore more means to reach those target customers. According to the report from Luther (2001), it is possible for customers to spend more than $ 1 billion of transition online each year recently. Based on this information, we recommend Young Care to develop its website with a mobile presence working on platforms of those top mobile including iPhone, Blackberry or Android and other famous mobile brands. Besides the mobile site to promote Young Care’s focus on Young Adults and their families who need care, campaigns such as text messaging to promote the major focus of Young Care to a wider range of customers. And especially, as the New York Times mentioned, nearly 97% of these text messages will be open and in the first hour nearly 83% of these text messages are opened. That is, the text message marketing is so useful for Young Care to use so as to gain a wider awareness among customers.
Generally speaking, the promotion strategies recommended above is helpful for Young Care to seize these opportunities so as to broaden its customer basis.
iv) Recommendations responding to the threats
As the above discussion, we can get that there are two kinds of possible threats for Young Care including the possible fierce competition in the future and the relatively bad economy situation in the global region including Australia. Responding to the threats, we have some suggestions for Young Care to meet the challenges from these threats in the charitable market.
To decrease the risk of economy downturn to a certain low level, we recommend Young Care to share the risk with other organizations. For instance, Young Care can cooperate with other charitable organizations such as Red Cross to promote their focus together. For instance, Young Care and Red Cross can work together to promote the same advertisement which include both of their focus. And meanwhile, Young Care can also work with other organizations to implement some campaigns. And in some live promotion activities, Young Care is recommended to work with some commercial organizations such as some mobile phone brands, computer brands or other famous brands to save cost. (Shieh 2011)
Take the Red Cross campaign in China for example, it cooperate with the famous Chinese national computer brand named Lenovo to promote their products together. As Lenovo claimed its cooperation with the Red Cross to support its charitable activity assisting these patients suffering leukemia with donation of 10 RMB to the Red Cross via every purchasing of the computer of Lenovo, it both promote the business of Lenovo and the donation amount of Red Cross to a large extent. From such kind of cooperation activities between those non-for-profit organizations and commercial organizations, both of their business can be promoted to a certain level, which is regarded as a win-win strategy. (Shieh 2011)
Hence, for Young Care, this kind of strategy as China Red Cross did is recommendable to save cost in the economy downturn period and at the same time, to outstand itself from other competitors to gain more awareness via the reputation of other famous brands.
With the evaluation of marketing environment and offering some recommendation for Young Care to suffer from the environment and purchase further development, it is recommended for Young Care to gather feedbacks from the society and targeted population.
According to Elliott, Rundle-Thiele and Waller (2010), the marketing control and information feedbacks from the market is so important for any organization to get the actual results and consequences of its market plans and strategies. And then make further modifications to purchase better performance. Hence, for Young Care, the research carried out to get the feedbacks on the marketing strategies is important for it to make better performance, which we recommend for it to employ companied with its marketing strategies.
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