In this essay, we’ll examine the competition environment of the Youngcare which is engaging in the assistance for Australian young adults who are terribly injured and need high care on the ground of the Youngcare’s case.
Market size and engaged business
In Australia, where Youngcare is located in, there are more than 40,000 charities operating as non-profit-organizations, which contribute to $75 billion total income. As the hyper competition and necessary financial aid often work as musts for the not for profit organizations including Youngcare in Australia to face, in the following part, we will develop a discussion on the SWOT environment and necessary recommendations for Youngcare to cope with the environment it is faced with among these charities in Australian market.
By and large, Youngcare is defined as a charity which offers help to the young adults who need high cares and their families.
Bradford, Duncan and Tracy (2005) pointed out that the scan on both external and internal environment of a firm is the important part for process of the strategic planning. While the external environmental factors often are classified as opportunities and threats. And the internal environmental factors are then classified as strengths and weaknesses. As the SWOT analysis can offer organizations with messages for firms to well match their resources and capabilities with the environmental factors, we’ll examine the SWOT of Youngcare to facilitate it to have a better performance and operation in the future.
Table 1.0 SWOT analysis on Youngcare
^^^^advocated, the firms’ strengths often refer to their resources and capabilities which can be adopted as a basis for them to develop their competitiveness. And the strengths of a firm often refer to the aspects such as the patents of its products, competitive brand names, and good image among consumers, cost advantages, competitive access to top grade and quality natural sources and good access to distribution channels and so on.
The first strength of Youngcare is its good image among customers. In fact, being a not-for –profit organization is originally marked a good reputation among customers. And in the recent year, the charities enjoy better and better fame among consumers in Australia and there are more than 40,000 charities, which indicate the good environment for charities to develop. In the meantime, the message promoted by Youngcare that it is committed to providing change and choice for young Australia with high care needs strengthen its good image among people in Austrian. And then, the award of the major Australian Marketing Institute on young people care also proves the strength of Youngcare is recognized and welcomed by Australian society and consumer.
The second strength for Youngcare is the excellent marketing people, which is easy to understand by many clues in the case. In the first year of the foundation, Youngcare only generate nearly $2 million, but in the next year under the great efforts of its marketing people, Youngcare has generated more than $ 5.1 million donations, which doubles the total donation amount of its first year. Such kind of good achievement on the financial aspect can disclose the good ability of Youngcare’s marketing people. In word, the excellent marketing people of Youngcare are its strength as well.
Ries (2003) held the idea that in some case, the absence of some certain kind of strength will also be thought of as the weakness. For instance, there are some points representing the weaknesses of some companies such as the shortage of protection on patents, relatively weak brand name, weak fame among consumers, high expenditure structure, a shortage of competitive access to top grade and quality natural sources and the shortage of good accesses to distribution channels and so on. And on ground of the case about Youngcare, some weaknesses points can be found out.
The first weakness of Youngcare is the shortage of marketing fund. For example, the case said that the demand of not-for-profit organizations is mainly on the financial aid and manpower particularly in the form of volunteers. For Youngcare, the shortage of financial aid and manpower to promote its core business is also a big headache, which is the first weakness. In the part of financial aid shortage side, Youngcare is the not-for – profit company, which is run for charity that is offering help and support to young adults who need high cares. This kind of characteristic makes this company nonprofit. In another word, the money it gains is mostly from the donation. Under such kind of circumstance, it is a tough task for Youngcare to raise enough money to do some charity activities to popularize its major business to the society, because all of those activities requires for money. Therefore, the capital generating is a weakness of Youngcare.
Secondly, in the case, it indicates a large proportion of the manpower used by Youngcare belongs to volunteers, who work for Youngcare for free. But, there are more than 40,000 charities in Australia, whose major manpower is voluntary workers. Under such kind of situation, it makes the volunteers for not-for-profit organizations become scarce. Therefore, the shortage of voluntary manpower is also a weakness of Youngcare.
Another weakness for Youngcare is insufficient structure setting and research on care of young adult who needs high care. From the case, we can infer Youngcare is a young not-for-profit organization, which is founded for only a short period. With the limited establishing period, the experiences and competitive ability of Youngcare may be weaker than others, which is a weakness.
^^^^^^advocated the analysis of external environment can help companies to understand their new opportunities inn order to make more profit and purchase higher growth rate. And opportunities for companies are often the unfulfulled requirements of consumers, the advent of new techniques, loose regulation environment and so on.
Referring to the case of Youngcare, the first opportunity for it is the great market potential for the development of charities in Austraila. in the case, some suvery indicates three kinds of population, the wealthier, the female and the people without children included offers great market potential and opportunities for Youngcare. Although, Youngcare may be seemed to be shortage of financial aid, if it is able to attract those potential groups to offer necessary financial support to Youngcare. By this means, we think of these kinds of potential consumers as the opportunity for Youngcare.
The second opportunity for Youngcare is the globalization. Under the umbrella of globalization, the communication and cooperation between different countries or even the interaction between people from different regions become closer and closer. Under such kind of circumstance, the chance for Youngcare to raise more money in the global region will be increased. Therefore, the globalization for Youngcare is also good chance to enlarge its global market to generate more donations in a larger market.
^^^^^^^ claimed the external environment changes often arouse many threats to the company, which often include the changes of customers’ tastes, the advent of substitute products, implementaion of new rules or regulations and increased barries of trade.
In Youngcare’ case, the first threat is the hyper competition among charities in Australia. In the case, it describes that there exists more than 40,000 charities in Australia, which both share the market of Youngcare and the voluntary workers of Youngcare. Under this furious competition scenario, the future competition for Youngcare can’t be ignored either, which is the first threat for Youngcare.
Another threat for Youngcare is the worldwide economy downturn condition including economy crisis and debt crisis, which lowers the economy capability of people to donate more into the charities. This situation becomes the threat for Youngcare as well.
Operation plan towards SWOT analysis
Mission and objectives of Youngcare
On ground of Youngcare’s story, it is a charity operated in Australia under a good and encouraged environment for charity organizations to enjoy good developing condition. And in the case, the objectives and mission of Youngcare are several such as raise a wider and higher awareness for young adults need high care, promote and secure its fund to attract more supporters, provide a helpline, provide at home care service, go on building more facilities for accommodation service and carry out further research on young adults who need high care.
Under the guide of these missions and objectives, Youngcare is necessary to use effective marketing mix strategies to develop its charity business in order to achieve the prosperity in the future with full consideration of its internal and external environment. And the suggestions of necessary marketing mix strategies such as promotion strategy, place strategy, people strategy and so on.
I. Promotion plan towards strength
Andreasen and Kotler (2003) describes the promotion strategy for companies is the type of marketing activities to make the potential customers, partners and the society attracted by and aware of the offerings from the companies’ products and services. For Youngcare, to promote its products which are the help or money donation to the potential customers such as the wealthier, the female and the people without children and other types of potential customers, it is required to adopt suitable promotion strategies in accordance with its strengths.
For one thing, to maintain its good image, it is crucial for every brand to invite a spokesperson, which is also incredible essential for for the nonprofit organization. For Youngcare, the first option of the spokesman can be its founder, because the powerful and close relationship between the founder and the Youngcare brand will be easy and persuasive for the founder to sell the Youngcare brand to the public, the media, donors, supporters and the volunteers. And then, the celebrity is also a good option for Youngcare to invite as the spokesperson, who can take advantage of his or her celebrity effect to attract more donators to Youngcare.
For the other, Courtney (2002) advocated the good function of well established social media campaign. Nowadays, there are a variety of companies including not-for-profit organizations use the social media to promote and market their products or services. For example, those famous social media sites Facebook, Linked in and Twitter included are commendatory for Youngcare to attract supports and friends, to establish meaningful relationships, to announce news and events to the society. By and large, with the well establishment of social media campaign, Youngcare is able to keep its good image among its suppers, present donators and attract potential donators as well.
II. Promotion plan towards weaknesses
Three kinds of weak sides are exposed by Youngcare from the case such as insufficient marketing fee, insufficient voluntary manpower and insufficient experience and competitive ability. To remove the weaknesses and help Youngcare to accomplish its marketing objectives, we offer some advices as below.
Primarily, Wray (1994) advocated any brand will benefit from the adaption of a special design particularly the color. For Youngcare, strengthening the impression of its brand to its current donators and potential supporter and donators is also a cost effective way. The Pink and Breast Cancer Charity is the excellent example. Whenever the people see pink, we understand what it refers to. And the Heart Association of American makes use of the color red to strengthen the impression of its brand to customers. And the yellow color is used by Lance Armstrong.
By and large, the use of impressive color to strengthen its impression to Youngcare’s current and potential donors and supports is effective measure to save marketing cost to relieve the pressure of limited market expenditure.
Next, using the website and newsletter to promote and market products or services is an effective way to save marketing cost for companies proposed by Bischoff (2004). In the marketing materials of Youngcare such as its promotion brochure, it is curial to list its website. Compared to the channels of radios or TV, the newsletter or website can be a cost effective way for Youngcare to reach more people. And besides, there is a useful suggestion for Youngcare to improve the quality of its website on attracting people, which is to make contract with some search engines such as Google to make its website rank in the top position to be convenient and noticeable to people to notice when surfing on the internet.
III Promotion plan towards opportunities
There are two kinds of opportunities for Youngcare to catch such as a potential customer base and the trend of globalization. To meet the two kinds of opportunities, there are two aspects of marketing mix strategies in the promotion and place sides respectively offered here to facilitate Youngcare.
For one thing, on the ground of the perspectives from Kalafatis et al. (2000), there will be endless fundraisers for all charities, schools, teams, or clubs. Compared to only trying to shake people down for money due to some good reasons or causes, it is more effective for Youngcare to concentrate on one or two great events and carry them out each year forever to attract great attention and maintain the good image of it. For most cases, consistence is often regarded as the key to success, which can be learned from the story of Kate’s Club that holds big Cabaret in Atlanta every to be designed as a silent auction with sweet music, food and a great deal of fun. And juts in third event, this club has generated more than $120,000 for the charity.
On the ground of this case, we suggest Youngcare should make use of this promotion strategy to make some big and noticeable events to attract these potential donors as many as possible.
For the other, Mintel (2001) advocated the cooperation with medium can facilitate charities such as Youngcare to promote its concern for young adults who need high care to a wilder global range under the umbrella of globalization. In the first place, in the Australian region, we suggest Youngcare should collaborate with some well known magazines, journals or newspapers under the identification of those paper media’s target consumers are the target customers of it, posting ads in these media or open a column on the young adults care may all facilitate Youngcare to highlight its major program on Youngcare to the public eyes and target donors or supporters. In the second place, Youngcare is suggested it should work with media such as radio and television. And sometimes, when the good relationships are set up, Youngcare may be able to get some chances on radio or TV exposure for free, particularly when doing the announcement of public service such as calling for the donation of help or money to the young adults who need high care.
In addition, the reason why we suggest Youngcare work with the media is that many media such as the radio, television and magazines are so popular in the world wide which can facilitate Youngcare to enhance its influence on people in different world region. Under such kind of strategy, Youngcare is able to reach more potential donors and supporters in the world market rather than only in Australia. By this means, Youngcare is able to meet the first opportunity.
IV. Promotion plan towards threats
Youngcare has encountered with two obvious threats, hyper competition and economy downturn included. To cope with the press from the threats, some suggestions are used for Youngcare as below.
Under the press of competitions from both existing and new competitors in charities, collaboration with other organizations to promote their programs together is a good option for Youngcare to reduce the threats produced by competition and save expenditures in the economy downturn time (Hooley et al. 2001).
Hooley et al. (2001) advocated the promotion strategy by cooperation with other organizations. We suggest Youngcare it should market its programs on donation of help or money to the young adults who need high care via other organizational events to reach the win win consequences. For instance, annual events such as walkathons, races and other events with those nonprofit organizations are good choices to enhance the exposure of the both Youngcare and its cooperators and share cost with each other.
In addition, the collaboration with some profit organizations such as some beverage manufacturers, cosmetics manufacturers or other kinds of organizations to help them gain good fame and help Youngcare generate more donations is also recommendable for it to survive in the competition. For example, China Red Ribbon works with Longfu Mineral Water Company in China, who commits to donate 10% out of one RMB of every purchasing to the Red Ribbons. Because this kind of cooperation can both enhance the reputation of Longfu Mineral Water Company and the amount of donation for China Red Ribbon. From this case, Youngcare is able to cooperate with such kind of companies in different countries just like China Red Ribbon.
By and large, this promotion strategy will help Youngcare to enhance their competitive power even the competition is furious and reduce cost in the bad economy condition.
I. People plan towards strength
Meek and Meek (2003) own the perspectives that people are the most crucial part for any companies. The people of an organization indicate its employees, customers, shareholders, supporters, etc. In terms of the people in Youngcare, its marketing people can’t be ignored. In the SWOT analysis part, the excellent marketing people in Youngcare are worth mentioning. Under the facilitation of marketing people, the promotion campaign of Youngcare is so successful that it doubles the total revenue of Youngcare just in the second year.
The good performance of marketing people requires Youngcare to try every means to keep this strength. To begin with, the characteristics of marketing people make them become the direct population to be faced and communication with customers of their companies. The marketing people for Youngcare are so necessary to attend these particular designed training programs. For example, the training and development plans in Youngcare for its marketing people are suggested to set out personal objectives firstly linked to their future appraisals. In addition, the on the job training and off the job training methods are all suggested to offer the marketing people with both textbook knowledge and the lifelike experience to better understand and generalize Youngcare’s products- the help or donation to these young adults who need high care. (Sargeant 2005)
II. People plan towards weaknesses
We have to admit the good efforts contributed by marketing people of Youngcare. But at the same time, this organization is a young charity with less operation and marketing experience compared the big giants in this industry such as Red Cross. To make Youngcare more professional to be a charity, Maple (2003) suggested the charity should develop some groups or organization that are focusing on the communication and work with the potential clients, which is suitable for Youngcare. E When the work or task of Youngcare become more segmented, the entire working process will become simple and effective than the previous time. Additional, the processional level of of Youngcare as a charity will be enhanced as well.
In addition, to remove the weakness of the shortage of voluntary manpower, Hooley et al. (2004) spoke highly of the volunteer program’s importance. For Youngcare, it is suggested to make full use of the volunteer program to catch the attention of volunteers with great and fantastic volunteer description. For example, to attract more excellent volunteers who are armed with professional and technical skills such as marketing, design, medical care, business planning etc., Youngcare should present perspective volunteers with clarified description or introduction on the tasks they will be engaged in with attention grabbing rhetoric and description with honest, upfront and simplified expression. Besides, post the volunteer opportunity of Youngcare in some popular channels to ensure the message will be wildly spread.
And other tip for Youngcare to attract excellent volunteer is the emphasis on the importance and necessity of the help given by Youngcare to these young adults who need high care. Some heart-warming and weeping elements are good choice for Youngcare to make full use in its volunteer program to raise the resonance of the potential volunteers and win their supports (Anheier & Kendall 2001).
I. Place strategy towards opportunities
To meet the opportunities offered by globalization, besides collaboration with social media to reach more world widely potential donors and supporters, Youngcare is suggested it should make use of sending message or information to its targeted groups such as the wealthier, the female, and the people without children and so on. In terms of the perspective from NCVO (2004), Youngcare is suggested it should make full use the E-mail and other internet communication renounces such as Facebook to send its messages and news to the targeted donors. And in the trend of globalization, the communication between people from different places globally become more frequently. Youngcare is so luck to meet this opportunity to meet a wider size of customers. Therefore, we suggest Youngcare make full use of this chance and every channel to deliver its message and major focus to people all over the world. Therefore, the donors or supporters on the young adults who need high care will be enhanced to a high level.
In addition, to some special current or potential donors, we suggest Youngcare should send information or mail via mail rather than e-mail, which will be regarded as more official and persuasive to the certain kind of group such as the wealthier or the celebrities (Zineldin & Bredenlow 2001).
On the ground of Youngcare’s case, we have first explored the market size of the charities in Australia and the marketing objectives of Youngcare. And next, we have analyzed its internal environments such as Youngcare’s strengths and weaknesses and its external environments such as Youngcare’s opportunities and threats.
With the exposure of the environment for Youngcare, it is essential for Youngcare to keep on its strength, and reduce weakness, catch every opportunity and well prepare itself to meet the threats. Therefore, many marketing strategies referring to the marketing mix aspects are suggested for Youngcare to make improvement and better performance, which act as respondent measures to the internal and external environments.
Budget and cost analysis
In our suggestions for Youngcare to implement these marketing mix strategies, we suggest it should low its cost to the affordable and lowest level as it is a charity with limited marketing and operation fees.
Control and feedback
Besides the marketing mix strategies such as the promotion strategies, place strategies, people strategies etc., and other kinds of measure will also be helpful for Youngcare to make improvement and fight for more market share.
The option beyond the marketing mix strategies for Youngcare is to do the specific canvass towards its current and potential donors or supports. In the SWOT analysis, three kinds of major target donors are defined such as the wealthier, the female and the people without children. To reach them effectively and skillfully, Youngcare should carry out deliberate canvass or research towards them such as the most effective and suitable promotion measures to attract the attention of female donors. Towards this type of donors, who are sentimental, sympathetic and emotional as ^^^^^^ advocated,
By and large, toward different people, different marketing strategies should be adapted to meet their emotion needs or other kinds of needs and then they will be willing to make donations to Youngcare’s major programs on young adults’ care.
In conclusion, we suggest Youngcare should both use some effective marketing strategies and other useful measure to attract more donors to support the young adults who need high care. And some important feedbacks from these target people had better be gained as well to examine both the effectiveness and function of these suggested marketing strategies and other measures in raising both the public attention and donation.
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