Figure 6 - PEST Analysis (continued)
4.1.3 Social/Cultural
The ageing population will increase demand for SAH and the current pension issues may well have long term implications with regards to supply of key resources, such as volunteers and donations, as people are working longer to support pensions. Corporate donations will represent a major opportunity for long term financial resources whilst the subject of palliative care is still viewed very much as a ‘taboo’ subject and any proposed plan will need to take this into consideration.
4.1.4 Technological
With regards to technology the internet represents the main factor in opportunities and threats to SAH.
4.2 Specific External Environmental Analysis
4.2.1 Key Publics
A public is defined by Andreasen and Kotler (2003: 76) as:
A distinct group of people, organisations, or both whose actual or potential needs must in some sense be served.
Before analysing the importance of individual publics it is first important to classify the publics in terms of functional relationship to St Ann’s (See Figure 7).
Figure 7 - The Main Publics of an Organisation (Source) Andreasen and Kotler (2003: 76)
The individual public’s relationships to SAH have been outline in Figure 8. This report will also consider the inter-relationship between the publics when proposing a strategy.
Figure 8 - Key Public’s Relationship to SAH (Source) Primary Research
4.2.2 Competition
St Ann’s does not necessarily compete with other organisations on an enterprise specific level; however competition does exist. Sargeant (2005: 57) outlines three categories of competition;
- Competition for Resources
- Competition for provision of non-profit services
- Organisations with competing missions
4.2.2.1 Competition for Resources
SAH must be aware of all non-profit organisations within the North West of England who could potentially compete for resources, both financial and human.
4.2.2.2 Competition for provision of non-profit services
SAH must be aware of direct competition for resources from hospices in and around the North West region. The North accounts for 36% of the total market in England (See Figure 9).
Figure 9 - In-Patient Units (Source) ‘Hospice and Palliative Care facts and Figures 2005’
The number of palliative care beds within the UK has steadily increased to 3,156 as of January 2005 (See Figure 10). This increase however does not match the ageing demographic trends, which indicates the definite possibility of demand exceeding supply (See Figure 11)
Figure 10 - Hospice and palliative care provision in the UK 2005 (Source) ‘Hospice and Palliative Care facts and Figures 2005’
Figure 11 - Population Statistics (Source) ‘Hospice and Palliative Care facts and Figures 2005’
SAH position as the largest private hospice within the country places it in a strong position against hospices within the North West.
4.2.2.3 Organisations with competing missions
Competition within the area does not apply to SAH.
4.3 Operations
4.3.1 Structure
The current functional marketing structure is depicted below (See Figure 12) and incorporates a three person Marketing, PR and Fundraising team. The current functional strategy separates the marketing mix elements. This proposed strategy will take the structure into account.
Figure 12 – The Current Marketing Structure SAH (Source) Primary Research
5.0 Internal Organisation Analysis
5.1 Mission Statement
The current mission statement covers all three factors highlighted by Andreasen and Kotler (2003: 67):
- Feasible
- Motivating
- Distinctive
"To provide holistic, rehabilitative and palliative care services, both within hospices and community settings, enabling individuals with a life threatening illness and their families to maximise the quality of their lives."
This mission statement will form the basis for the proposed marketing strategy.
5.2 Organisation Objectives/Goals
At present St Ann’s marketing objectives are weak as they do not address all elements of SMART. The current objectives (See Figure 13 and 14) will however be incorporated into the proposed plan.
Figure 13 – Organisational Objectives
Figure 14 – Marketing Objectives
5.3 Resources and Capabilities
Financial resources are outlined below taking into account attraction (See Figure 15) vs. allocation (See Figure 16). Both NHS contributions and Legacies form the majority of the attraction of financial resources. There is an opportunity to spread this attraction with a greater emphasis being placed on corporate community trusts.
Figure 15 – Resource Attraction
Figure 16 – Resource Allocation
The resource allocation vs. attraction tables highlights the organisation ability to generate funds that go beyond covering the costs. The nature of SAH organisation also places heavy reliance’s on volunteers. At present SAH has over 400 active volunteers engaged in every aspect of the Hospice’s work. This figure has decreased by 12% over the last 5 years against an increase in demand for the service through increasing life expectancy figures (See Figure17).
Figure 17 – Health expectancy table (Source) ‘Government Actuary’s Department, 2002; ONS healthy life expectancy’
5.4 Current Marketing Activity
Figure 18 briefly highlights the current marketing mix implemented by SAH.
Figure 18 – The Current Marketing Mix (Source) Primary Research
5.5 Organisation Culture (ethos)
The primary research has highlighted an upbeat culture within the organisation. There is an element of fun and job satisfaction surrounding both the paid and voluntary roles. This is supported through SAH being awarded ‘2nd best Company to Work for in the UK 2005’ (business.timesonline.co.uk). This strong internal culture will increase the ability of employees to adapt to potential changes both proactive and reactive to market conditions.
6.0 SWOT Analysis
To synthesise both external and internal factors affecting SAH a SWOT analysis has been developed (See Figure 19). This will examine the internal strengths and weaknesses of SAH against the external opportunities and threats within the market.
Figure 19 – The SWOT analysis
6.1 Strengths
Relationships with corporate companies, strong image within local community and a strong following of supportive volunteers, represents three of the major strengths to SAH. This proposed will look to build upon and integrate these strengths
6.2 Weaknesses
In terms of weaknesses, SAH currently has a decreasing volunteer base that will hinder future development, the current poor integrated marketing communications is also acting as a barrier to the success of the marketing. The website is another area where SAH is weak in comparison to competitors; potentially, donations, event awareness and marketing ability are suffering as a result.
6.3 Opportunities
Opportunities within the market are plentiful. The ageing demographics although hindering volunteering will ensure that demand stays high; the internet represents a major opportunity for SAH as do the relatively un-chartered territory of corporate sponsorship. Developing long term relationship with corporate donors represents a further opportunity with in the market.
6.4 Threats
The major threat to SAH is the demographics affecting volunteer resources. The organisation must also however be aware of the growing number of independent hospices within the Northern regions. Resource attraction as a result may suffer.
7.0 Identify Key Problems To Be Addressed
The SWOT analysis has outlined key areas for potential development both organisational and marketing specific. The organisational problems (See Figure 20) and marketing specific problems (See Figure 21) have been prioritised, identifying the more immediate issues first. The key problems identified here will be analysed in conjunction with the current mission statement objectives and positioning strategy (See 5.0) to formulate the basis for a potential marketing strategy.
Figure 20 - Organisational Specific Problem
Figure 21 - Marketing Specific Problem
The proposed strategy will initially target the marketing specific problems concentrating on building awareness and establishing the brand attributes through a revised integrated marketing campaign. This will act as a platform from which the proposed plan will target volunteers and then corporate donators into the long term.
8.0 Set marketing Goals and Objectives
Objectives are fundamental to the proposed marketing plan as they are the only mechanism by which its success can be measured (Sargeant, 2005: 97). The objectives will guide the strategy and will impact the formulation of the marketing mix for SAH. The objectives will allow St Ann’s to allocate resources.
The objectives will link into the current mission statement (See 5.1) and organisation objectives (See 5.2). They will state the broad direction with which this proposed strategy wishes to take SAH.
8.1 Short Term Objective (0-12 Months)
Increase awareness of the hospice and its activities by 25% amongst 45 – 75 year olds within the North West region within a 12 month period.
8.2 Medium Term Objective (12-18 Months)
Increase volunteer base by 40 new volunteers, representing a 10% increase within an 18 month period.
8.3 Long Term Objective (18 Months -)
Increase net donations from corporate support by £320,000, representing a 50% increase on the 2004 figure, over a 3 year period.
This strategy outlines a three tier marketing objective plan for SAH. The short term aspect will focus on raising awareness amongst the hospices target audience, this will in turn link into the medium term objective of increasing volunteer numbers. The long term objective of increasing corporate funding will run parallel to short and medium term objectives.
The long term plan will allow SAH to be proactive to long term trends in the market.
9.0 Set Core Marketing Strategy
The core marketing strategy will now propose a strategy for meeting the set objectives. SAH available resources must be taken into consideration.
9.1 Segmentation and targeting
The limited size of the marketing team highlighted in the SWOT analysis (See Figure 19) restricts the size of the campaign to a certain degree. The outcomes of the strategy must also consider the resources available to the whole hospice, for example SAH simply do not have the necessary resources to cope with a huge increase in demand for its services; limited beds, space, human and financial resources.
SAH is not in a position to be all things to every one. In order for St Ann’s to successfully implement the proposed strategy it must segment the market, Kotler (1991: 66) defines segmentation as:
‘The task of breaking the total market (which is typically too large to serve) into segments that share common properties’
Figure 22 – Segmenting and Targeting (Source) Andreasen and Kotler (2003: 144); Bruce (1998: 40)
Figure 22 highlights a 6 stage framework by which SAH can segment then target its market. The marketing objectives highlight a three tier strategy with increasing awareness and volunteer base issue being the more the immediate objectives. To facilitate this and ensure resources are allocated efficiently and effectively the potential market will be segmented taking into consideration the analysis material and more specifically the key publics identified (See 4.2.1).
Raising awareness and increasing volunteer numbers are in essence two separate strategies; however with the limited resources available to SAH the segmentation will be design to ensure that they compliment each other.
The segmentation will consider two main variable bases:
- Geographical – The
- Socio-Demographic (specifically age, occupation, family life cycle)
From this basis a number of segments will be identified. A seven criteria framework (Sargeant, 2005: 118) will be used to evaluate the potential offered by each segment (See Figure 23)
Figure 23 – Evaluating the viability of marketing segments (Source) Sargeant, 2005: 118
Through evaluating the viability of the market segments SAH will be allocate available resources efficiently and affectively.
The age of potential volunteers will also impact the segmentation and targeting strategy (See Figure 24).
Figure 24 – A Typical Hospice Volunteer (Source) Smith, J. (2004) ‘volunteering in the UK: Looking to the future’
9.2 Positioning
This plan proposes to place more focus on the service and benefits of SAH. The marketing mix will aim to position SAH from an organisational level, integrating one key marketing communication through the mediums available.
10.0 Marketing Mix
For the purpose of the proposed strategy and for SAH offering, a service marketing mix will be adopted. Andreasen and Kotler (2003: 317) define a service as:
‘A service is any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product.’
The service marketing mix offers a more complete overview of the strategy and enables the efficient allocation of resources. It will also allow SAH to focus on factors that the organisation can control (Chew, C. 2006, lecture 7). The services marketing mix is made up of seven elements (See Figure 25), however not all elements will be relevant to SAH.
Figure 25 – The Services Marketing Mix (Source) Chew, C. 2006 Lecture 7
This report will now highlight the relevant elements of the mix, outlining the proposed marketing plan. It is important to highlight that each element of the mix will be considered as supporting other elements.
10.1 Product/Service
To facilitate the highlighted marketing objectives (See 8.0) it is first essential for SAH to define what it is actually offering. As a non-profit making palliative care hospice organisation for adults, the potential offerings will differ to different key public groups. The proposed strategy aims to target both the consuming publics and potential volunteers.
10.2 Price
SAH is an independent free service. Funding is provided through the government, legacies, donations, and fund raising.
10.3 Place
SAH as highlighted in the analysis is the largest independence hospice in the UK in terms of beds. The hospice is located in the centre of the Greater Manchester region positioning itself in the centre of its geographical segment. This gives basis and will make it easier to meet both the short and medium term objectives (increasing awareness and volunteering numbers) of this proposed plan.
The location at present represents a key resource for SAH (See Figure 26) and will be linked into this proposed strategy.
Figure 26 – Location Resources
The pattern of collection under the proposed plan will integrate an online donation system to increase and modernise the channels of collection. This will form part of a web re-launch which will give SAH an improved channel to market them selves. The re-launch will impact all three objectives, modernising the image of SAH and giving the organisation a stronger base to market themselves.
10.4 Promotion
The promotional element of the mix will be used to communicate SAH services to the target segment. Promotion for the purpose of this strategy will focus on the three tier objectives and will incorporate an integrated communication message focused on what SAH do and the benefits the organization brings to society. The promotion will incorporate the Differentiate, Inform and Sell aspects of fill’s (2002) DRIPS model for effective communications (See Figure 27)
Figure 27 – DRIPS Model (Source) Fill, C. (2002 : 3)
The communication mix will (See Figure 28) highlight the selected communications channels to be used in this proposed marketing strategy. The mix will concentrate on below the line communications so as to appeal to the target segment.
Figure 28 – The Communications Mix
10.5 People
SAH organisation relies heavily on its internal publics. It is its people which will ultimately set the organisation apart from competition, Sargeant (2005: 172) highlights 'the inseparability of services makes it impossible to distinguish between service production and service delivery and it is the people o f the organisation who are therefore responsible for both.'
This plan proposes an internal marketing plan that will enable SAH to maintain current high standards in this area and also to increase the adaptability of SAH people to change. The three types of marketing SAH must undertake are illustrated by the services marketing triangle (See Figure 29), with the internal element highlighted in Figure 30.
Figure 29 – Services Marketing Triangle
Figure 30 – Interactive Marketing “Enabling the Promise”
This marketing plan does not proposed the recruitment of additional paid staff, all changes internally will come through internal training. It does however aim to recruit additional volunteers focusing primarily on 'social motivations' as highlighted by Fenton et al (1993). This will be facilitated in line with the three tier objective structure, once initial awareness figures have increased, focus will shift to volunteer recruitment targeting those who volunteering as an opportunity to socialise with other volunteers and to feel collectively that they are doing good.
10.6 Process
This plan will maintain the current high standards of internal systems, structures and policies currently implemented at SAH as highlighted in the SWOT analysis (See 6.0).
With the proposed re-launch of the website, internal training will be implemented to ensure that the process efficiency of the online functions does not decrease in the short term. Over the long term the new additional features of the web site will add to the current high standards of processes for the organisation.
10.7 Physical Evidence
This is once again a current strength to SAH and this plan does not propose major changes to this area. The premises, facilities and presentation of staff will remain unchanged. The annual report will however be reviewed. This is in line with the objective of increasing corporate donations.
11.0 Relationship Marketing
To facilitate the marketing plan objectives, relationship marketing will be implemented. Cause related marketing will be used throughout this proposed plan (See Figure 31) to impact the building of awareness and raising the profile of the hospice which will in turn affect the volunteer and corporate donations. It will be an additional tool.
Figure 31 – Cause related marketing
12.0 Implication and limitations
12.1 Implement Strategy
The proposed strategy will focus on the current organisational and marketing framework already in place for SAH. The service of the organisation will not change, the marketing of the service will. The website and structure will form the major tangible changes within this proposed strategy
12.1.1 Website Re-launch
The website re-launch will form the major change to the current marketing strategy. The SWOT highlighted this as a particularly weak area for SAH and one in which opportunities were there for fast effective gains. The website will be outsourced to an agency to add a number of new and updated features to the site (See Figure 32)
Figure 32 – Website Re-launch outline
12.1.2 Design Organisation
Figure 33 – Marketing Team Re-structure
The proposed marketing plan aims to restructure the marketing team. The most notable change will be the outsourcing of the market research responsibilities to a local company.
The communications functions will be split between the two currently employed marketing assistants.
Marketing Assistant Brand and Volunteering – Responsible for the communication of the brand focusing on the integrated marketing message and also volunteer generation.
Marketing Assistant Fundraising – Responsible for fundraising activities.
The current culture and political power within the organisation, combined with the proposed internal training will support the proposed structural changes.
12.1.3 Gantt Chart
The Gantt chart depicts the scheduling operations for the implementation of the proposed strategy.
Figure 34 – Gantt Chart
12.2 Determine Performance benchmarks
This marketing strategy will consider other successful non-profit organisations and benchmarks strategy implementation.
12.3 Costs
The proposed resource allocations for the marketing plan are detailed in Figure 35, the total cost over the three year strategy will be approximately £396,000 which is equal to £132,000 per annum.
Figure 35 – Costs
Additional resource attraction will come through the increased volunteer numbers, corporate donations and organisation awareness.
12.4 Limitations/Challenges
The limitations and challenges of the proposed strategy and marketing have been highlighted and analysed in Figure 35.
Figure 36 – Limitations and Challenges of the proposed strategy/marketing
13.0 Conclusion
In conclusion this proposed strategy will impact SAH both in the short term but arguably more importantly in the long term. Short term gains will come through the implementation of an integrated marketing communication plan that will segment, target and position SAH at its key publics. Long term implications will come through the increasing donation channels through the implementation of the website.
It is important for SAH not to loose focus of the current strengths of the organisation. The key activities that have made SAH successful must be incorporated into this plan.
14.0 Appendices
Appendix 1
Telephone interview Questions
Organisation
Who are they?
What do they do?
You
Who are you?
What do you do?
How would you describe the current situation of the Hospice industry?
Competition?
How would you describe the current situation of the organisation?
Publics?
How is the organisation structured?
What are the major strengths of SAH?
What are the major weaknesses of SAH?
Can you tell me a little bit about the current marketing activities?
Advertising?
Promotion?
PR?
DM?
How successful is your current marketing?
How do you measure marketing success?
How would you improve them?
Can you tell me about your resources – Financial and Human?
Allocation vs. Attraction?
Appendix 2
Survey Questions
To highlights some company background information and allow me to put together a situational analysis for the organisation.
As discussed please I have put together a small survey to fill in some of the gaps that were left following the telephone interview. So as to allow for qualitative information I have left the questions open. I would really appreciate it if you could give as much detail as possible on the company, this will enable me to analyse the company from an INTERNAL perspective
Company Objectives/Goals
Resources and Capabilities
Marketing Objectives
Current Marketing Strategies
Are these affective – how do you measure this?
Future Marketing strategies
Company culture/ethos
What are the key strengths of your organisation?
What are its major weaknesses/challenges?
I understand how busy you must be and I understand that this is a great ask, any help you can give would be very much appreciated.
I also understand the ethical issues involved with such a project, so all work can be checked by yourself and you are more then welcome to see a finished copy of the report and you may even take advantage of some of the ideas
15.0 Bibliography
Books
Andreasen, A and Kotler, P. (2003) ‘Strategic Marketing for Nonprofit Organisations’ Sixth Edition, Pearson Prentice-Hall, Upper Saddle, New Jersey.
Chapman, D. and Cowdell, T. (1998) ‘New Public Sector Marketeing’ Prentice hall, Harlow
Fill, C. (2002) ‘Marketing Communications: Contexts, Contents and Strategies’ Second edition
Finchman, R. and Rhodes, P. (1999), ‘Principles of Organizational Behaviour’, Oxford University Press, Third Edition.
Hooley, G. Saunders, J. Piercy, N. (2004). ‘Marketing Strategy and Competitive Positioning’. Third Edition. Prentice Hall.
Johnson, G. Scholes, K. (2002), ‘Exploring Corporate Strategy’, Sixth Edition, Prentice Hall.
Kotler, P. and Armstrong, G. and Saunders, J. and Wong, V. (2002), ‘Principles of Marketing’, Pearson Education Limited.
Sargeant, A. (2005) ‘Marketing Management for Non-profit Organisations’, Second Edition, Oxford University Press, Oxford.
Journals
Chew, C. (2003) ‘What factors influence positioning strategies in Voluntary Non-Profit Organisations? Towards a conceptual framework’, Local governance, Vol. 29/4, pp 288-323
Moller and Halinen (2000) ‘Relationship Marketing Theory: Its Roots and Direction’, Journal of Marketing Management, Vol. 16/1-3, pp 29-54
Chew, C. (2005). ‘’, RP 05/06 (May), Aston Business School, Birmingham.
Lecture Slides
Chew, C. (2005-06). Lecture Slides Week 1, BP 3356 Marketing For Non-Profit Organisations.
Chew, C. (2005-06). Lecture Slides Week 3, BP 3356 Marketing For Non-Profit Organisations.
Chew, C. (2005-06). Lecture Slides Week 4, BP 3356 Marketing For Non-Profit Organisations.
Chew, C. (2005-06). Lecture Slides Week 7, BP 3356 Marketing For Non-Profit Organisations.
Chew, C. (2005-06). Lecture Slides Week 10, BP 3356 Marketing For Non-Profit Organisations.
Chew, C. (2005-06). Lecture Slides Week 13, BP 3356 Marketing For Non-Profit Organisations.
Chew, C. (2005-06). Lecture Slides Week 14, BP 3356 Marketing For Non-Profit Organisations.
Websites
www.charityfacts.org/fundraising/general
www.statistics.gov.uk
www.ageconcern.org.uk
Primary Research
Telephone interview – Emma Reynolds Marketing Manager SAH
Survey – Emma Reynolds Marketing Manager SAH/Catherine Williams SAH