British Heart Foundation Organisational Analysis

British Heart Foundation Organisational AnalysisThe British Heart Foundation is a non-for-profit constitution. We be the UKs tremendousst smell charity (the fifth largest charity in the UK), fighting heart and circulatory disease. Largest funder of research into heart disease in UK. Founded in 1961 Our head use is based in London and thither argon six regional offices. Employ 1807 supply. Heart and circulatory disease the UKs biggest killer 2.6 million people in UK living with heart disease. Income year ending March 2008 was nearly 117 million Fund research, education/campaigns raising awargonness, life-saving cardiac equipment and through BHF heart nurses, they help relief patients suffering from heart disease.BHF has B2B clients, working in partnership with brass instruments such as Colgate, HSBC, Lloyds TSB, Weight Watchers and Scottish and Southern Energy. However, this study provide focus on BHFs B2C customers. fig of SBUs trading, Events, VFR, Legacies, Pr all the equaltion and Cargon so serving multiple customer segments. BHFs score audiences include Heart patients, at-risk groups, health professionals, and children and p arents. As with most charities, those donating money, time and support to the BHF are typic solelyy 45 plus, ABC12s.1.2 BHFs PhilosophyThe philosophy of an geological formation refers to its business approach, it is the principles that underlie its whole operation the philosophy is what guides the organisation. Organisations may operate under one of triplet philosophies they may be crossway, sales or market oriented (Lancaster and Reynolds, 2005).A product oriented organisation focuses on their existing products, their goal being to spend a penny them as efficiently as viable. There is little, if any, consideration of the involve and wants of their customers or the market. A sales-oriented organisation, although recognising their competition, still devotes little in the way of considering the inevitably and want s of their customers. The sales-persons role is signalise and their goals are typic all(prenominal)y 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 market is likely to be restricted to a marketing division, the marketing-oriented philosophy is one that permeates the whole organisation every department recognises the central importance of the customer. There is an emphasis on understanding their put audiences identifying their needfully and satisfying them. (Lancaster and Reynolds, 2005). Products and returnss are developed with the sign audience in mind, in fact extensive research into the customer needs and market conditions is conducted to inform the ripening.Andreasen and Kotler (p38, 2007) marketing orientation means marketing architectural planning must(prenominal) jump with the fag audience, no t with the organizationThe BHF fol milds 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 demonstrated not only by their current strategy to arrange the organisation much relevant to target audiences, but too by their corporate objectives (see appendix 1), which are customer focused based on fulfilling their needs and attaining a high standard service. The organisation is dedicated to instilling the market-approach organisation-wide, for example ingrained marketing workshops 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 rather, the impertinent environment is dynamic and constantly changing. Whilst it is essential to identify and anticipate the needs and wants of their target marke ts, and know how best to respond to these with the most efficient use of the resources available to them, it is important that this is done inside the context of their ever-changing remote 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 rears a route the organisation butt end follow to ensure this. As mentioned in 1.1 the marketing plan carry a bun in the ovens a great deal of research scanning the environment and aiming to meet the customer needs and wants (Beamish and Ashford, 2008).The role of marketing instruction and research in conducting and analysing the marketing auditThe Role of Marketing Information and ResearchIn order for an organisation to operate a market orientation and remain customer-focused, entropy and research is essential. When undertaken properly it can provide a thorough understanding of target audiences and the little and macro markets. The findings guide the admition of the marketing plan and with the right discipline and research subsequent decisions will be informed ones and it will be possible to discover more realistic time to come predictions. Failing 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 alternative and primary. Secondary data is information collected for a purpose other than for the current research. External sources of secondary data include third companionship databases such as keynote and mintel, government statistics, national and trade press and the internet. In addition, there are also a number of internal sources of secondary data, for example a Customer Relations Man agement (CRM) database providing demographic (age, gender, address, occupation) and life-style data (where, what, when and how they buy, how much they spend, religion). Other internal sources include customer complaints, sales reports, personnel, information on their products and services, tolls, 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 System (MkIS), this can provide substantial information, fulfilling some research needs, however 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 take into accounts for a more detailed analysis peculiar(prenominal) to the organization. External sources of primary data interviews, focus groups and surveys. Internal dat a can be gathered through interviews with staff.Conducting Research within BHFSecondary OneCRMThird troupe 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 troupe data accordingly often only relates to charity or health charity sector, not very detail.Use surveys and focus groups.2.4 Conducting and Analysing the Marketing Auditenvironmental scanning 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 Staff, Style, Shared Values, Systems, Structure, Strategy and Skills (7Ss). Thi s 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 up as suppliers, publics, intermediaries, customers and competitors (SPICC). This requires information sources such as third party reports, newspapers, trade magazines such as ThirdSector, focus groups, surveys and interviews of existing and capableness 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 pro duct, price, place, promotion, strategy, structure staff and skills. In addition there are also object lessons that can be used to help analyse certain 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 Macro 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 environment the PESTEL model was used (appendix 3), this cat egorises the forces into political, economical, social, technological, ecological and legal.Having analysed the internal and external environment a SWOT analysis can be conducted (figure 2), whereby the key strengths and weakness of the BHF and the opportunities and threats facing them are set. Bringing together the strengths and weaknesses enables the appointment 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 surrounding issues BHF tackle.Large picture market.THREATSThe credit crunch decreased disposable income, corporate donations, legacies (accounts for 40% BHFs income).Direct Marketing not as effective as it used to be for charities (not comprehend a return on investment). Hard to obtain the details of new people.More health and medicine charities than any other type, therefore a m ound of competition especially as many tackle sympathetic 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 semipermanent relationships.There is a large prospect youth market opportunity to ontogenesis 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 affable Responsibility provides more B2B opportunities.More media attention surrounding the issues BHF tackles such as nourishment labelling and obesity raises profile.Governments Change4Life campaign has 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 global public perception.Regional offices developing their own structure, meaning BHF messages may appear inconsistent on a national level.STRENGTHSStrong and trusted brand.Market attraction (number 1 heart charity in UK)Large integrated CRM large pool of customer dataHighly motivated -dedicated and driven by cause.lately launched large multi media campaign Connections increased awareness.Strong demand/need heart disease is the biggest UK killer.A number of large corporate sponsors give rile to large audiences.Many professionals working for BHF high calibre and solid knowledge base.DCsA strong, trusted brand.Large CRM database.Strong demand. Large corporate sponsors.3.2 Key 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 final causeCredit Crunchreduction in disposable income, therefore less donationsslump in the housing market, therefore reduction in legaciesreduction in corporate donationsIncome reduced therefore a tighter budget need to generate alternative, cost-efficient ways of raising funds go for low risk options such as building on existing relationships rather than investing a lot of resources striveing 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 highlighting alone(p) aspects of the BHFs work rather than those that are similar to other charities and make it relevan t 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 priority 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 narrow to secure the UKs place at the forefront of innovationand quality in the digital communications industries rapid development could leave the BHF behind.Plan needs to make better use of new media, possibly going out of the BHFs comfort zone.Having conducted the SWOT analysis and considered the key issues, the BHF is now in a better point to coiffure their objectives and determine their strategy.Referring spikelet to figure 2, the DCs are well supported by the CSFs there is a good match. 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 occur 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 product lines may also contribute in closing the planning gap, the remainde r of this plan will focus on the BHFs new product.Task 02Red for heart campaignLondon to Brighton Bike RideNew ProductB2B Corporate Partnerships homo EventsRegional EventsSponsored School EventsSBU MarketingMarketing Objectives for the BHFs New ProductThe BHFs New ProductThe BHF will launch a B2C social station service 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 make better their heart health. Upon registering the member will receive a welcome pack containing a heart risk tape measure, a guide to heart health, a 5-a-day food diary, a heart matters fact card and a membership 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 that is regularly updated check to their stated interests upon sign up. Their membership will also provide them with special commercial offers. This is a separated 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 start 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 pecuniary 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, now and for the future.They set out the direction of the organisation they are a s tatement of its prioritiesEverything the organisation does should be associate 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 then 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 first 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 finance this work. The second is that Heart Matters should primarily focus on the nee d 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 intellectual (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% yearly attrition by 2012.This helps support the BHFs objective to provide vital information to help people reduce their own heart health risk in one case recruited, members will have access to heart health information to help improve their heart health.Hitting this target would indicate increased engagement 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 engaged 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. cleavage, Targeting and locating of Heart Matters.5.1 SegmentationCustomers are very diverse therefore the same product and tactics will not appeal to all of them. We nee d 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 segmented based on the following criteria geographical 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.Psych ographic 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 those members receiving a 5 donation ask and those receiving a 15 one) . This report wi ll 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 previously mentioned, the BHF gives priority to behaviourist segmentation when segmenting their beneficiary markets. Potential segments Heart Matters could target include pursuit 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 configuration 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, given limited resources it may not be possible to serve everyone within a part icular needs group. The BHF also use the other criteria to identify additional 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 finicky lives, but still have a chance to make a change7-16 to educate about the importance of keeping their heart healthysedentary 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-cost healthy recipes, gym- unaffectionate ways of keeping fit.PsychographicsInternet-savvyDependentsFamiliesOlder cou ples (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 GroupReason 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 important to ensure the BHF is made relevant to them.These are is sues 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 curtilage of life, encouraging them to be unhealthy. Initial rates of membership registration 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 large market that would be receptive to health-related inform ation. In addition, this is the baby-boomer generation, a large percentage of which are sloshed 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 adv iceGenericInaccessibleAmateur adviceDepressingAccessiblePerceptual Map for Heart MattersMarketing mix for the BHFs Heart Matters Membership ServiceStrategyJustificationProductUSP (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 Carbon 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 applicable as this is a strategy typically used for lower qua lity, 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 dissemination use both direct and indirect (via intermediaries) diffusion to the customer.Selective 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 Differentiate and InformStr