British Heart Foundation Organisational Analysis

British feeling Foundation Organisational AnalysisThe British oculus Foundation is a not-for-profit make-up. We ar the UKs largest disembodied spirit benevolence (the fifth largest charity in the UK), fighting smell and circulatory disease. bear-sizedst funder of look for into heart disease in UK. Founded in 1961 Our head office is based in capital of the United Kingdom and on that point atomic turn 18 six regional offices. Employ 1807 staff. Heart and circulatory disease the UKs biggest killer 2.6 million people in UK view asing with heart disease. Income year ending March 2008 was nearly 117 million Fund seek, education/campaigns nip and tuck aw beness, life-saving cardiac equipment and through BHF heart nurses, they cargon support patients suffering from heart disease.BHF has B2B guests, working in compact with brass contributions such as Colgate, HSBC, Lloyds TSB, Weight Watchers and Scottish and Southern Energy. However, this study volition focus on BHFs B2 C guests. piece of SBUs trading, Events, VFR, Legacies, Prevention and C ar thitherfore serving multiple node segments. BHFs calculate listenings include Heart patients, at- riskiness groups, wellness professionals, and children and p bents. As with roughly charities, those donating money, time and support to the BHF be typic in ally 45 plus, ABC12s.1.2 BHFs PhilosophyThe philosophy of an organisation refers to its business approach, it is the principles that underlie its whole operation the philosophy is what guides the organisation. Organisations whitethorn operate under one of triple philosophies they may be crossway, sales or commercialise oriented (Lancaster and Reynolds, 2005).A product oriented organisation focuses on their existing products, their goal being to produce them as efficiently as realistic. T present is little, if any, reflexion of the of necessity and wants of their customers or the market. A sales-oriented organisation, although recognising their competition, stillness devotes little in the way of considering the submits and wants of their customers. The sales-persons role is call and their goals atomic number 18 typically short-term with success being measured in terms of sales (Lancaster and Reynolds, 2005).A market-oriented organisation holds the customer at the centre of all its activities. In contrast to the sales orientation, where merchandise is likely to be restricted to a market division, the merchandising-oriented philosophy is one that permeates the whole organisation e really department recognises the cardinal importance of the customer. There is an emphasis on understanding their identify audiences identifying their inescapably and satisfying them. (Lancaster and Reynolds, 2005). Products and function are developed with the take aim audience in mind, in fact extensive research into the customer needs and market directs is conducted to avow the development.Andreasen and Kotler (p38, 2007) selling orientation means marketing intend must get off with the target audience, not with the organizationThe BHF fol misfortunates a market oriented philosophy, Target audiences are a central focus of the organisation the organisation only exists as a result of their audience. The focus on their customers is exhibit not only by their current strategy to make the organisation more relevant to target audiences, but to a fault by their integrated objectives (see appendix 1), which are customer focused based on fulfilling their needs and attaining a high standard dish. The organisation is dedicated to instilling the market-approach organisation-wide, for example inhering marketing work tell ons are frequently held, aimed at the non-marketing departments.Lancaster and Reynolds (2007) claim that to achieve their corporate objectives, the market oriented company must recognise that they do not exist in a vacuum or else, the outer milieu is driving and constantly changing. Whilst it i s essential to identify and anticipate the needs and wants of their target markets, and know how best to respond to these with the most efficient use of the resources available to them, it is serious that this is done inwardly the context of their ever-changing immaterial environment and the opportunities and threats it poses.Therefore, for a market-oriented organisation such as the BHF, the role the marketing plan plays is a crucial one. It operationalises the organisations philosophy and ensures the organisation actually is market-oriented and provides a route the organisation sewer follow to ensure this. As mentioned in 1.1 the marketing plan requires a great deal of research starening the environment and aiming to meet the customer needs and wants (Beamish and Ashford, 2008).The role of marketing training and research in conducting and analysing the marketing auditThe Role of selling Information and ResearchIn order for an organisation to operate a market orientation and wait customer-focused, discipline and research is essential. When undertaken properly it can provide a thorough understanding of target audiences and the micro and macro markets. The findings guide the organiseion of the marketing plan and with the right discipline and research subsequent decisions lead be informed ones and it will be possible to make more realistic hereafter predictions. impuissance to gather data and research poses serious risks without it an organisation is effectively operating in a vacuum, future decisions are uniformed and there is no customer focus. (Beamish and Ashford, 2008).Collecting Marketing InformationThere are two ways of collecting marketing information secondary and primary. Secondary data is information placid for a purpose other than for the current research. External sources of secondary data include third ships company databases such as keynote and mintel, government statistics, national and occupation press and the internet. In additio n, there are also a number of internal sources of secondary data, for example a Customer Relations precaution (CRM) database providing demographic (age, gender, address, occupation) and modus vivendi data (where, what, when and how they buy, how much they spend, religion). Other internal sources include customer complaints, sales writings, personnel, information on their products and servings, damages, retailers, internal training of staff, marketing budget/spend, communications spend and results of previous market research studies. Much of this data may be held on a central database The Marketing Information arrangement (MkIS), this can provide substantial information, fulfilling some research needs, even so to obtain bespoke, targeted information to fulfil all research needs primary data is necessary (Taghian and Shaw, 1998)Primary data is data bespoke to the research project. It allows for a more precise analysis precise to the organization. External sources of primary d ata interviews, focus groups and great deals. interior data can be gathered through interviews with staff.Conducting Research within BHFSecondary OneCRMThird political caller databasesSubscribes to specialist magazines such as ThirdSector, Marketing Week and PR Week Information on external environment.Primary Recognises importance of bespoke research uses external agencies (FIND NAME RESEARCH NOTES). Important to note that there are only 2 other chest and heart charities in CAF top 500, third party data indeed oft only relates to charity or wellness charity sector, not very specific.Use surveys and focus groups.2.4 Conducting and Analysing the Marketing AuditEnvironmental see is necessary to conduct a detailed marketing audit it requires both primary and secondary information on both the internal and external environment.To analyse the internal environment we need to consider Product, Price, Place, Promotion, People, Process and Physical Evidence (7Ps) and stave, Style, Sha red Values, Systems, Structure, system and Skills (7Ss). This data is specific to the organisation and therefore internal sources such as sales reports, CRM databases, staff interviews, internal observations and staff intranet are used.To analyse the external environment we need to consider factors such as political, economical, social, technological, environmental and legal (PESTEL) as well as suppliers, publics, intermediaries, customers and competitors (SPICC). This requires information sources such as third party reports, sweetspapers, trade magazines such as ThirdSector, focus groups, surveys and interviews of existing and potential volunteers/beneficiaries/supporters.Marketing audit and their key issues and their implications for the plan3.1 The Marketing AuditThe Internal EnvironmentThis refers to those factors the organisation has full control over. To identify the strengths and weaknesses of BHFs internal environment the 7Ps marketing mix and McKinseys 7Ss framework were used (appendix 2). These consider 14 elements such as product, price, place, promotion, strategy, structure staff and skills. In addition there are also models that can be used to overhaul analyse definite elements, for example the BCG matrix (appendix 2) and value chain analysis.The Micro EnvironmentTo help identify the opportunities and threats that exist within BHFs micro environment the SPICC model was used (appendix 3), which considers 5 factors an organisation has partial control over suppliers, publics, intermediaries, customers and competitors. To help analyse these factors the Product Life Cycle, Porters Five Forces model (appendix 3) and the Value Systems Analysis can be used.The big EnvironmentAn organisation has no control over influences within the external environment, however it is important to scan the environment in order to identify the opportunities and threats that may exist and to make informed decisions to prepare for them. When scanning BHFs external enviro nment the PESTEL model was used (appendix 3), this categorises the forces into political, economical, social, technological, ecological and legal.Having analysed the internal and external environment a grind analysis can be conducted (figure 2), whereby the key strengths and weakness of the BHF and the opportunities and threats facing them are identify. Bringing together the strengths and weaknesses enables the appellative of BHFs core strengths their distinctive competencies (DCs), and from the opportunities and threats their critical success factors (CSFs) can be identified.CSFsLittle direct competition.Many customers with a link to the cause.Media attention surround issues BHF articulated lorry.Large prospect market.THREATSThe credit crunch decreased liquid income, corporate donations, legacies (accounts for 40% BHFs income). comport Marketing not as effective as it used to be for charities (not sightedness a return on investment). Hard to obtain the details of new people.Mo re wellness and medication charities than any other type, therefore a lot of competition especially as many tackle similar issues e.g. smoking, obesity.Many people find it embarrassing and give socially desirable answers when discussing issues such as obesity and exercise, i.e. issues the BHF deal with research unreliable.Governments Digital Britain Initiative could leave the BHF looking out-of-date.OPPORTUNITIESMany customers have a link with the cause potential to engage with our audiences more directly and build long-term relationships.There is a large prospect youth market opportunity to increase revenue and market share.Little direct competition, one of just 3 heart charities in top 500 opportunity to maximise differentiation.Companies are placing more importance on Corporate Social Responsibility provides more B2B opportunities.More media attention surrounding the issues BHF tackles such as food labelling and obesity kindles profile.Governments Change4Life campaign h as given BHF exposure.WEAKNESSESLack of perceived relevance to the target audience hard for them to engage with BHF.Many generic products that arent customer friendly.Website is hard to navigate much information available, but buried under links.Low staff turnover lack of fresh ideas and perspectives in the organisation.Staff close to or highly driven by the cause find it hard to see everyday public perception.Regional offices developing their own structure, meaning BHF messages may appear inconsistent on a national level.STRENGTHSStrong and trusted brand.Market leader (number 1 heart charity in UK)Large integrated CRM large pool of customer dataHighly motivated -dedicated and driven by cause.lately frameed large multi media campaign Connections increased awareness.Strong demand/need heart disease is the biggest UK killer.A number of large corporate sponsors give access to large audiences.Many professionals working for BHF high calibre and unfaltering knowledge base.DCsA strong, trusted brand.Large CRM database.Strong demand.Large corporate sponsors.3.2 recognise issues faced by the BHF and their implications for the planThe SWOT analysis highlights the key issues now faced by the BHF, these are shown belowKey issues the BHF faces and their implications to the marketing plan.Key IssueImplications to the Marketing PlanCredit Crunchreduction in disposable income, therefore less donationsslump in the housing market, therefore reduction in legaciesreduction in corporate donationsIncome switch offd therefore a tighter budget need to generate alternative, cost-efficient ways of genteelness funds go for low risk options such as building on existing relationships rather than investing a lot of resources punctuateing to make new contacts.Increasing competition from other health charities.BHF needs to maximise their advantage of having little direct competition and emphasise their differentiation by play up laughable aspects of the BHFs work rather th an those that are similar to other charities and make it relevant to target audiences.Direct Marketing no longer an effective communication media for charities.Need to use alternative communication media that are equally accountable yet more effective possibly making more use of new media.Large prospect market.Targeting this market will require a great deal of resources, however in the short term given the economic climate it is perhaps not the best time to try to enter this market. It is a great opportunity that should be should be considered in the long-term.Very high precedency given to cost savings and operational efficiency, even more so due to the recession often results in generic products (Bruce, 2007).Need to optimise the use of the OneCRM database and increase product customisation.The Digital Britain Initiative is watch to secure the UKs place at the forefront of innovationand quality in the digital communications industries rapid development could leave the BHF beh ind.Plan needs to make better use of new media, possibly sack out of the BHFs comfort zone.Having conducted the SWOT analysis and considered the key issues, the BHF is now in a better aspect to act their objectives and determine their strategy.Referring gumption to figure 2, the DCs are well supported by the CSFs there is a good add together. Therefore we can afford to set higher level marketing objectives (discussed in section 4.1). This creates a gap, identified through gap analysis, between the initial forecast (where we will be if we proceed to do nothing) and the new objectives. Taking the SWOT analysis into consideration I believe this gap can be bridged through establishing a product development growth strategy, this is a moderate risk strategy, which the match of the DCs and CSFs supports. The BHF will also operate a differentiation competitive strategy (appendix 4) we need to emphasise our unique selling point amongst all the other health charities. Although, other pr oduct lines may also fall in in closing the planning gap, the remainder of this plan will focus on the BHFs new product. occupation 02Red for heart campaignLondon to Brighton Bike RideNew ProductB2B Corporate Partnerships institution EventsRegional EventsSponsored School EventsSBU MarketingMarketing Objectives for the BHFs New ProductThe BHFs New ProductThe BHF will launch a B2C rank attend to that will allow them to engage directly with a large audience and encourage the development of long term relationships. Members will receive information on how to amend their heart health. Upon registering the member will receive a welcome pack containing a heart risk enter measure, a guide to heart health, a 5-a-day food diary, a heart matters fact card and a rank card. They will also receive access to the heart matters helpline, receive email alerts tailored to their needs (healthy eating, getting active, quitting smoking and well being) and will have an online account with a homepage th at is regularly updated according to their verbalise interests upon sign up. Their membership will also provide them with special commercial offers. This is a free service because it is a belief of the BHF that heart health information should be available to all.4.2 Marketing objectives for the BHFs Heart Matters membership serviceThere is a hierarchy of objectives with three levels corporate, functional and operational. At the corporate level they give-up the ghost off more general and are long-term and get more specific the closer the planning activity gets to the tactical implementation stage (p23 Robert et al, 2005).Corporate objectives are often expressed in monetary terms, for example referring to return on investment (ROI) and return on capital employed (ROCE) (Beamish and Ashford, 2008). However, for many not-for-profit organisations, including BHF, although still long-term, they can be much harder to measure. They are typically based on the needs of the beneficiaries, n ow and for the future.They set out the direction of the organisation they are a statement of its prioritiesEverything the organisation does should be link up back to a corporate goal (accessed on 10/04/09 10.30 at http//www.ncvo-vol.org.uk/index.asp?id=488)Functional objectives are more specific than corporate objectives, often medium term referring to percentage increase in sales or market share. These past feed down to the operational objectives that are short-term and much more specific based on the 7Ps marketing mix, for example to offer a 10% discount for 2 weeks.Therefore when setting the marketing objectives for Heart Matters, they should support the corporate objectives as well as reflecting the close match between the DCs and CSFs. With regards to Heart Matters, the BHF have three options. The premier is to take the view that the BHF is doing a lot of work directly related to their corporate objectives, therefore Heart Matters should be all about raising funds to help fi nance this work. The second is that Heart Matters should primarily focus on the need of the beneficiaries, the third is a middle-of-the-road option, whereby the need is addressed to a certain extent, but the service must be self-financing.We believe Heart Matters should initially be about addressing the need of the beneficiaries as this would provide the best opportunity to reach and engage with a wider audience.Keeping in mind the objectives should be SMART (specific, measurable, attainable, realistic and time bound) the marketing objectives for Heart Matters are as followsMarketing objectives for Heart Matters Membership ServiceObjectivesTo recruit over 300,000 members, with less than 7% annual attrition by 2012.This helps support the BHFs objective to provide vital information to help people reduce their own heart health risk once recruited, members will have access to heart health information to help improve their heart health.Hitting this target would indicate increased engag ement with supporters.For 20% of donors to make a donation by 2012.30% of the general population donate to charity however, this may be skewed (as heart conditions are more prevalent in low income areas). This supports all objectives, as funds raised are invested in helping achieve BHFs objectives. For example, to achieve objective 1 (appendix 1) the BHF will provide funding, equipment and facilities to achieve the best results. Therefore, funds raised will support this.For 40% of members recruited to have in use(p) with another BHF product/service by 2012 e.g. to have participated in an event, donated, made a purchase from the online shop or catalogue.This serves to increase public involvement in heart health, to help achieve objective 2 (appendix 1). Achieving this target would indicate an increased understanding of the work BHF does and an increased involvement of BHF supporters.5. air division, Targeting and Positioning of Heart Matters.5.1 SegmentationCustomers are very diver se therefore the same product and tactics will not assemblage to all of them. We need to use segmentation the process of dividing the market into specific groups of consumers/buyers who share common needs and who might require separate products and/or marketing mixes (Kotler, 1998 as cited in Ashford and Beamish, 2008). B2B and B2C markets each require different techniques to do this, as Heart Matters is a B2C product consumer segmentation will be used.Consumer markets can be separate based on the following criteriaGeographic segmentation is based on variables such as region, population density and size of the area.Demographic segmentation uses variables such as age, gender, income, occupation, ethnicity and social class.Geo-demographic segmentation is a combination of the above, assumes that people either socialise according to class and occupation, or their lifestyles and geographic factors (Ashford and Beamish, 2008). ACORN (A Classification of residential Neighbourhoods) is a system commonly used to segment the population according to geo-demographics.Psychographic segmentation groups according to lifestyle using variables such as social activities, interests, opinions and values.Behaviouristic segmentation refers to customer behaviour, segmenting based on variables such as benefits sought, purchasing rate and usage rate.Segmentation for the BHF differs depending upon whether the market to be segmented is donor or benefactive role. When segmenting the donor market, all of the above criteria are important, however when segmenting the beneficiary market, behaviourist segmentation will typically be given priority (Bruce, 2007). There will be 2 main phases to Heart Matters the first will target beneficiaries. Upon recruitment of the target beneficiary groups the product will move into its second phase, to raise donations, therefore the target beneficiary groups will be further segmented and new target groups identified (for example this will determine thos e members receiving a 5 donation ask and those receiving a 15 one) . This report will focus on phase 1, therefore segmentation will be specific to the BHFs beneficiary market (for further information on phase 2, please refer to appendix 5.As antecedently mentioned, the BHF gives priority to behaviourist segmentation when segmenting their beneficiary markets. Potential segments Heart Matters could target includeSeeking help recovering from a heart conditionSeeking help living with a heart conditionSeeking information on caring for someone with a heat conditionDesire to improve their lifestyleDesire to improve their dietFrequent user of BHF products/servicesInfrequent user of BHF product/servicesUse products and services from a variety of health charitiesLoyal to an alternative health charityAlthough behaviourist variables form the basis of segmentation, further segmentation is necessary as within these groups there are still huge differences from one customer to the next. Further, gi ven limited resources it may not be possible to serve everyone within a particular needs group. The BHF also use the other criteria to identify excess segmentsGeography The BHF is a nation-wide organisation, however they segment according toDensely populated areasLarge metropolitan areasAreas of low incomeDemographicsParents educate about keeping their childrens hearts healthy65+ higher risk of heart disease, inform on how to reduce risk30-45 leading busy lives, but still have a panorama to make a change7-16 to educate about the importance of keeping their heart healthy inactive occupationHigh stress occupationGeo-demographicSegment into different ACORN groups all of which are within the BHFs beneficiary market as heart health information should be made available to everyone. The market is segmented according to ACORN group as solutions and recommendations may differ depending on income and social class, for example EF14 category low-priced healthy recipes, gym-free ways of keep ing fit.PsychographicsInternet-savvyDependentsFamiliesOlder couples (no children or left home)Gym Members5.2 Target audience for Heart MattersThe marketing of Heart Matters will follow a differentiated strategy, that is Heart Matters will only be targeted at certain segments of the total market and the marketing mix (section 6) will be tailored towards these target segments of the market. Figure 4 below shows the target groups chosen for Heart Matters Membership.Recovering/living with heart conditionhigh riskGlasgow and LondonAge 50+BehaviourGeographicDemographicTarget groups for Heart MattersTarget stemReason for ChoiceRecovering/living with a heart condition and high risk groups.This is a large market heart and circulatory disease is the UKs biggest killer, almost 2.6 million people are living with heart disease. It is a current strategy of the BHF to make the organisation more relevant to target audiences this is a large audience where the need is currently greatest and it is im portant to ensure the BHF is made relevant to them.These are issues that are unique to the BHF, no other large charity tackles them targeting this group provides an opportunity to highlight the BHFs differentiation.Glasgow and LondonAs this is a new product, and one which is free it will initially be launched into just 2 cities, this is to reduce the risk involved. Densely populated cities give a wider market reach. Glasgow has been chosen as there is a high concentration of heart disease, London has been chosen as people living here tend to have a faster pace of life, encouraging them to be unhealthy. Initial rates of membership accommodation of the two cities may give an indication of where to roll the membership out to.Age 50+Heart disease is more common and risk is greater in older people. Further, a survey under-taken by one of our corporate sponsors Fitness-First revealed that of all age groups the over 50s showed the greatest percentage eating healthily, this indicates a la rge market that would be receptive to health-related information. In addition, this is the baby-boomer generation, a large percentage of which are affluent home owners may provide significant fundraising opportunities in phase 2.5.3 Positioning Heart MattersHaving selected the target segments, it is important the service is then positioned with their needs and requirements in mind. Positioning is the act of designing an offer so that it occupies a distinct and valued place in the minds of target customers (Kotler et al, 1998). The target segments are likely to have concerns, it is therefore important the service is positioned as reassuring. However, we do not want to be patronising and compromise our brand, the service tackles serious issues so needs to be positioned as a provider of expert advice. Each customer treated as an individual, we wish the service to be viewed as providing customised, not generic information.Figure 4 below shows how we would like our target audiences to perceive our service.CustomisedReassuringExpert, trusted adviceGenericInaccessibleAmateur advice get downAccessiblePerceptual Map for Heart MattersMarketing mix for the BHFs Heart Matters Membership ServicedodgeJustificationProductUSP (Unique Selling Point)Core product USP no other charity provides information and advice specific to living with and recovering from a heart condition. Supports our competitive differentiation strategy.Secondary and tertiary product century Copy many other charities provide free membership services offering newsletters, free calendars, membership cards etc (appendix 4)PriceIntermediate strategy, in terms of the value the customer will place on the product.This supports our quality of information positioning and selective marketing strategy. Heart Matters core product has a USP however we want it to be available to everyone within our target market, not just a specialist group, so therefore skimming is not applicable. Price penetration is also not appl icable as this is a strategy typically used for lower quality, carbon copies therefore does not support our quality of information positioning strategy. In addition we do not want to target everyone within the beneficiary market this is a new product, do not want to appear low quality and generic, the intermediary price strategy supports this.PlaceDual distribution use both direct and indirect (via intermediaries) distribution to the customer. discriminating DistributionInterdependence BHF retains full control.Dual distribution the core product will only be distributed directly, this is essential to support the expert positioning and give the BHF full control over the service. Indirect distribution of the core product may confuse customers and fail to relate it to the BHF.Indirect distribution of Heart Matters registration and materials. This will give a greater access to the market and provide customers with the option to register in person or online.Selective distribution will give access to the right customers i.e. our target groups. This also supports our quality positioning strategy and intermediate price strategy, as we can choose intermediary locations that support our brand such as pharmacies.Intermediaries will be interdependent the BHF will retain full control. This is because the BHF has a strong brand and a greater understanding of the customer needs, particularly as this is a service aimed at beneficiaries. Giving independence to intermediaries may risk bad PR for the BHF.PromotionObjective notice and InformStr