USA case study

In other Norms, the company is currently using the Direct-Mail strategy to reach out to donors. There are no other direct marketing actions implemented. A. 3.

I will assume that there are other advertising actions such as banners and street pictures currently being used. The case does not mention any advertising on television or the Internet. I Nil assume there are no digital advertising actions implemented. A. 4. I will assume En are 2013 and the company is attempting to improve within one year.

A. 5. I will assume there is unlimited budget to perform promotional activities. A. 6.

The people treated in the Direct-Mail letters and brochures are not celebrities.

A. 7. The company has a running and active website. 3. 8. All other departments are functional and effectively working.

A. 9. There are no dollar limits on donations. 3. 10.

The only donor category targeted is the “skeptical progressive”. This means that all other potential donors outside of such category defined in the case are excluded from promotional activities. A. Poor organizational structure As an international nonprofit organization, the first issues CARE is facing are the cultural differences among countries.

These are prohibiting the creation of a concrete brand image.

Political and economical problems are putting obstacles to the development of a committed and united organization. There were some difficulties on the implementation of the new logo. As the case states, in countries like Japan, and Australia, the logo was not welcomed with open arms. In Australia, the colors used for the logo selected were confused with colors representing aborigines in the country. As for Japan, the direction of the hands and the logo itself was somehow similar to Buddha, which was considered offensive.

The majority of the organization’s sources of support come from the United States of America government and public. Rhea US provided $223 million out of the $336 million that was reported on PAYOFF . Rhea fact that the US is the founder and major source of revenue and source of support to the organization creates a politically unbalanced structure, given the dominance of CARE USA. This unbalance explains the rationale while deciding the logo and tagging of the organization. B. The donors’ pool is shrinking According to CARE USA External Relations Department, the PAYOFF active donor population consists of 277,236.

Such number has been decreasing over time since 1999 when there was a base of 397,000 active donors. As stated in the case, the donors’ pool shrinking is not simply about the lack of acquisitions of new donors, but also the failure to retain donors. The company is missing a loyalty program or a post- sale interaction with the customer that will strengthen the brand and will encourage people to continue to donate to the same organization. Rhea promotional and advertising activities are ineffective. The use of direct marketing is ineffective in reaching the target market as well as ineffective in getting donations.

E Direct-Mail strategy has not accomplished the main goal of the organization of acquiring and retaining donors. As mentioned in the case, donors must be educated about CARE in order to make a donation, and urgency and an emotional connection need to occur in order to seal the deal. Brand awareness is poor, and CARE is having some trouble making a clear connection between the roots of poverty and a sense of urgency. The poor promotional strategy is affecting the acquisition and retention of donors as well. The company is lacking of advertising in more current channels such as television and the Internet.

There are several other organizations, such as EUNICE, also a nonprofit organization that dedicates to improve children’s welfare around the Nor, which uses celebrities such as Alyssa Milan to encourage donations.

Further, social network sites are so popular these days, that a simple advertising and educative video, caption, or message could have a potential viral effect and become a great source of support for CARE. Goal: To increase the donors’ pool within one year. The main goal of the company is to increase active donors from 66. % to 72% and increase transition donors from 37. 6% to 41%.

Active donors being defined as people who have donated within twelve months, and transition donors defined as people who have donated this fiscal year, but not previous fiscal year. After careful analysis of the CARE organization, I believe there are some issues that need to be fixed or taken into consideration for change right away. The problems I have found to be essential for the company to improve and continue to grow have been described above. The following ideas are the best plan of action looking forward: a.

Structure the company around geographical divisions responsible for all rumination activities and tensions within a given geography which area.

B. Create a new advertising campaign. Develop a donors loyalty program. According to the case, the company is currently geographically structured. There is an International Secretariat, lead-members (USA, Canada, and Australia), and CARE members. Each CARE member reports to the lead-member that is in charge of that region, and the lead-members report to the International Secretariat.

Basically, each country is in charge of their regions to certain extent, the lead-member’s approval.

This approach can, and has already created political discomfort. According to Philip Cater, Mary Giggly, and John Graham in “International Marketing”, the best way to structure an organization where relationships with governments are essential for the company to continue to grow is a geographical structure. A geographic structure will allow the organization offices to operate individually while complying with the organization’s overall policies and values. Each geographical region will be overseen and directed by one or two executives whom will be responsible for the region’s functional and financial activities.

The International Secretariat will continue to be he highest end of the organizational hierarchy, but lead-members will be removed from that position and become CARE International members. A board with representatives of each country will be created to discuss major matters and future projects. Rhea new structure will improve: Communication and Collaboration: Communication between representatives of different regions will become much more civilized, without second feelings of unbalanced power.

Instead of having to build new relationships with people around the world, the executive of one region can work side by side with their department employees and create greater synergy. Local Managers: By having people already familiar with the culture of the country they are working for, there is a better understanding of what will help and be effective in that country. Issues like the logo and the tagging for Japan and Australia will be eliminated.

Performance Measurement: The geographical structure will also allow the company track Individual country’s performance.

Also, will allow each country find out what distribution channels and marketing activities work best for them, as opposed of continuing to use CARE USA strategic plan and having to score low on donations. . Create a New Advertising Campaign A donor, as the case mentions, will not even open a letter of an organization they are not familiar with. To address this issue, CARE will need to launch a new advertising campaign that will present clear ways of donating money and that will educate people about CARE and the causes they fight for.

Because of CARE is such a big multinational organization; it is recommended to use the following plan step by step in the United States of America first, as a try out case.

I will provide research to support such plan in this country. The target market Skeptical Progressive: CARE identified this target market as the typically individual older than 35, with incomes above $75,000, college educated, and well traveled. This group entailed 15% of US population . CARE USA should continue to target the skeptical progressive individual, however, it should narrow the definition of this market.

According to “The Lifestyle Market Analyst”: 51. 4% of Americans who donate to charitable causes shop by Catalog and Mail.

49. 7% of Americans who donate to charitable causes engage in Physical Fitness. 31% of Americans who donate to charitable causes go to Fishing frequently. Therefore, renting ads should be in fitness and fishing magazines as well as combined with catalogs of the same subject. When advertising for nonprofit organizations, CARE needs to look for ads that will make people engaged and want to donate, as well as be sensitive and careful to negative effects while marketing societal problems.

Commercials from other companies such as EUNICE use celebrities to first catch the eye of the viewer.

Alyssa is featured in a Direct Response TV (DRAT) commercial urging contributions from new supporters that launched in December 2010. The DRAT commercial has been an overwhelming success, securing 3,575 new monthly moors and raising approximately $730,000 within one year to support Niece’s lifesaving work. Best Practices include: Adopt a broad view what poverty means. Do not use cartoon characters, young actors, or other symbols likely to engage in {Our product advertisement.

That means that if CARE wants to show poverty and Children affected by it, it should use real images, and no fake actors.

– Hire an adult ‘brand ambassador”. It will give more credibility and sense of importance to the brand. Based on source: Responsible Marketing and Advertising. “hen creating videos for the website, CARE USA should be more informative and educational. The videos should snow a clear paten to the money or material donation is given to the result this will have. In other words, people want to know where the money is going, and whom they are helping.

According to a 2008 study performed by Grey Matter Research & Consulting, people believe that a lot of the donations they give go to overhead costs, meaning fundraising administration costs. These are the overall perceptions of Americans: Source: Grey Matter Research and Consulting . Online Advertising: Faceable According to a study performed by The Social habit – Social Media Research Redefined, 55% of Americans between 45 and 54 have a profile on a social networking site; Faceable being the most popular social networking site.

Source: The Social Habit In addition, according to “The Lifestyle Market Analyst” 70. 8% of people donating to charitable causes subscribe to Online Services.

Measurements: Number of donations. Rime at which the donation was made. Correlated to the TV commercial. Number of times the website has been entered through Faceable. Calls.

Quick survey at the end of a call. Infinite Survey. Create a Loyalty Program Rhea first step is to define what is considered a loyal customer. According to the case and the assumptions previously made, a customer is considered loyal or if he/she is an active donor.

An active donor is defined by the case as a person who has donated to CARE in the last 12 months. Loyalty programs for companies that depend on donors are very specific and do not follow the same format or structure as the for profit organizations.

Hence, companies such as CARE do not sell a physical product and cannot provide immediate satisfaction to its donors. This author has reviewed many different loyalty programs that have been effectively implemented by other nonprofit organizations. It is recommended that CARE follow the steps provided in the Implementation section of this paper when creating its loyalty program.

Implementation Organizational Structure: International Secretariat – CARE International Commission Board Composed of one of two executives of each country. Local managers and employees.

Idea based on CARE-international. Org governance . Example of Geographic Organizational Structure: Rhea Jake My Holdings Group Pity. Ltd Company Typically, State-based operations are structured along the following lines: 0 Underpinning is the organizational structure of the organization is the operational del of a single, Account Management structure which OSI established for each major client.

This enables the client to have one direct point of contact for all matters, Irrespective of the geographic location, relating to its contract operation.

Geographical Structure for Apple Computer b. A new Advertising Campaign It is recommended to use an Integrated Marketing Communication method in which all communication channels will use a consistent brand image. In other words, TV commercials, videos in the website, and other media channels will advertise the same message. W When creating specifications for a TV add, CARE needs to focus on education and urgency.

The company needs to make an impact on the viewers and make them want to know more. The whole point of this commercial is to make an emotional connection and attract potential donors to other informational channels such as the website. CARE USA should create two commercials airing after pm with the themes they already have developed: “Children in Crisis”, which will feature a celebrity ambassador asking for help at the ‘ere end to the commercial. The video will touch on the story, making it dramatic and Ninth little viceroy to avoid overshadowing the story. “Meals and More”, which will also feature the celebrity ambassador explaining how a small donation can have a big impact on many lives.

30th videos should follow these steps based on Sebastian Lindquist from What Took ROR So Long? Show the place. Show the country or region you are trying to help. – Be honest and capture honest moments. Do not exaggerate the problem. Poverty is a huge issue and people are able to research what is happening in the world. If the company lies about a person or introduces fake actors, it will loose credibility.

Feature cultural aspects of the place you are trying to help. Introduce powerful images to create discussion. Share smiles and positive stories. People will connect CARE with helping people, and will create an emotional connection with the viewer. Both commercials should have a clear link to the organization’s website. Create a New Loyalty Program Create Clear and Convenient Pathways According to the longtime CEO of the American Heart Association, Sacs Wheeler, nonprofit organizations should consciously create “customer pathways” to make it easy for donors to deepen their relationship with the organization.

In other words, CARE will have to provide simple ways in which donors can satisfy their need to be connected to a worthy, and teach them how they can support the cause with their social and financial capital. After their first donation, it is recommended that the company ask the supporter if he/she would like to subscribe to emails and/or the company’s newsletter. This will be a great way to keep the donor involved with the company and interested in their causes. The next step is giving them options and clear ways of helping the company even further, such as: Participate in an event

Become a volunteer Refer their friends Comment on the website Contribute content to the company Raise awareness or funds through their social networks Provide a testimonial Donate more money Active Donor Profile It is imperative to create a simple segmentation of potential donors and having an understanding of the reasons why the person donates. A 360-degree assessment of the donor will help the organization find the reasons why a donor will be loyal and give consistently to a single organization.

According to the book “Building Donor Loyalty’ by Tony Powders, there are several questions and facts CARE should capture about each donor.

How they earn their living Nat they do for pleasure Nat clubs they belong to No their friends are Nat authors or subjects they read “here they were born “here their children go to school “here they went to school These are Just a few ways to create a better relationship with the donor and great Nays to create the donors profile, and hence, increase the donation amounts and frequency. Back In order to keep donors happy and involved, there must be post-donation interaction. It is not enough to tell the donor what is it that they are helping improve during the renovations.

CARE needs to be able to show results and implement surveys to know how satisfied donors are. CARE needs to be honest; people will appreciate small results better than lies.

A newsletter, e-mail, or a call can do the trick, and show donors that the company and the ones who were benefited by their donation are grateful. Also, when donors seek for more information, or sign up for a simple monthly e-mail, offer a link to the website, or offer other educational incentives. Donors may want to get involved Just a little bit more, they Just don’t know about it .