Global Marketing Management 530

Semester 1, 2014

CLIENT BRIEF COVER SHEET

Name: MARCOS DOUGLAS DA SILVA

Student ID: 18182255

Tutor’s Name: DR ANEESHTA GUNNESS

Day & time of tutorial: MONDAYS 4PM TO 6PM

Date submitted: 31 AUG 15

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Table of Contents

Executive Summary............................................................................3

Organisation Background..................................................................4

History.........................................................................................................4

Mission, Values and Objectives................................................................4

Organisational Board.................................................................................5

Ethical Accountability................................................................................5

Finance........................................................................................................6

Current Marketing Organisation Situation........................................7

Services and Products...............................................................................7

Audience.....................................................................................................8

Competitors................................................................................................9

Microenvironment....................................................................................10

Macro environment..................................................................................11

Marketing Activities..................................................................................13

Key Marketing Objectives.................................................................14

Budget................................................................................................14

Conclusion.........................................................................................15

Recommendation..............................................................................16

References.........................................................................................17

Executive Summary

This client brief was made based on the information collected at the

interview with Ms Lily Lomma and Ms Kirsty Labuschagne, and further online

research. It aims to analyse Arthritis & Osteoporosis WA in a marketing

perspective.

Briefly provides a current situation of the Foundation and its marketing

position. Identifies weakness points and threats under micro and macro

environments and summarises the potential opportunities for the company to

be considered.

Organisation Background

History

The Arthritis & Osteoporosis WA was established in October 1972 as a

non-government organisation, under the name of The Western Australian

Arthritis & Rheumatism Foundation (WAARF) and led by Drs Phyllis

Goastcher, Evan Owen and Roger Dawkins. This was made possible with the

assistance of ANZ Bank, which freely offered an office in Murray Street, Perth.

The aims of the Foundation were care, education and research in the

arthritis and rheumatism fields. Nineteen years later, in 1991, the Foundation

changed its name to what it is currently known as, Arthritis & Osteoporosis

WA. In 1994 it held a successful capital fundraising appeal and as a result,

the organisation opened its own custom built Resource Centre located in

Shenton Park, WA. The Centre consists of a hydrotherapy pool, gymnasium,

seminar and boardrooms, café, bookshop and leased office space to other

tenants.

Mission, Values and Objectives

The mission of Arthritis & Osteoporosis WA is to reduce the incidence

and disabling effects of arthritis, osteoporosis and related conditions in the

population of Western Australia. Providing care though services, education

and research are their most important values and it is the driving force behind

many of the Foundation’s aims.

One major aim of the Foundation is to advocate for greater assistance

from the Australian Government, as they believe it is important to give a voice

that represents the community for the cause of Arthritis, Osteoporosis and

related diseases.

Organisational Board

The Foundation’s Board is constitutes of a president, vice president,

honorary treasurer and members (currently five); members are elected by the

Board and must have made a monetary donation, have purchased goods or

have given their time to the Foundation during the preceding 12 months and

apply to be appointed as a member (Arthritis & Osteoporosis WA Constitution,

2009). The president, vice president and honorary treasurer are elected for

2/3 of the Board.

Ethical Accountability

According to the Constitution of Arthritis & Osteoporosis WA as

amended in April 2009, the Foundation is non-sectarian and non-political.

Therefore, despite the organisation’s role as an intermediary between the

community and the government, they do not associate themselves with any

side of politics and operate independently.

The company is strongly orientated by their ethical values and do not

support any company that does not promote health and well being for the

good of society. It also does not endorse any company that promotes

products, which are not scientifically proven to be effective combatants

against arthritis, osteoporosis and related diseases.

Finance

A non-profit organisation is highly dependent on donations and

contributions from the community and government. However, the government,

due to other priorities, has not yet been a strong financial support for Arthritis

and Osteoporosis WA.

Therefore, the Foundation depends mainly on community charity.

According to the Annual Report 2014, Fundraising represented 64% of the

total revenue, while Fee for Services 8%, Grants 17% and Interest and

Dividend income 11%. These figures show the importance of fundraising for

the Foundation.

The Annual Report 2014 also shows that in 2013 the Foundation

received AU$ 1.6 million in Bequests and in 2014 this type of contribution

decreased 78.32%, with only AU$ 0.35 million raised. This variation

demonstrates the volatility of donation revenue, and the company’s risk in

relation to its performance. This highlights a weak point within the

organisation that needs significant attention, which will be further discussed in

the marketing strategies section of this case brief.

The table below represents the components that contribute to the total

revenue, specifically the composition of fundraising resources.

Revenue 2014 (%) 2013 (%)Charitable support fundraising 1,797,594 64 2,991,502 73Fee for services 233,662 8 251,758 6Grants 467,336 17 486,019 12Interest income 87,127 3 49,853 1Dividend income 228,428 8 243,845 6Gain on sale of investments - 0 21,514 1Other 8,626 0 26,616 1Total Revenue 2,822,773 100 4,071,107 100

Revenue from fundraising activities

2014 (%) 2013 (%)

Charitable trust distributions 112,349 6 134,234 4Direct mail 362,127 20 340,921 11Facilities hire 194,735 11 172,814 6Periodical payments 12,559 1 13,609 0Raffles 67,270 4 45,994 2Bequests 350,735 20 1,618,142 54Bingo 359,808 20 360,424 12General Fundraising 74,831 4 121,539 4Chair Rheumatology & Musculoskeletal Medicine

263,180 15 183,825 6

Total 1,797,594 100 2,991,502 100Arthritis & Osteoporosis WA, 2014

Arthritis & Osteoporosis WA, 2014

Current Marketing Organisation Situation

Services and Products

Currently the Foundation has several services and products, such as:

- Social lines

- Telephone Advisory Service

- Seminars and talks

- Specialist Bookshop

- Arthritis Today Magazine (issued three times per year)

- Rural Clinics

- Support Groups (local, suburban and Regional)

- Information Sheet

- Self-management Programs

- Exercises classes, such as Hydrotherapy, Pool sessions, Tai Chi for

Arthritis, Nordic Pole Walking, Pilates and Yoga.

- Support for research

Additionally, its website is a reliable source for information related to

the diseases. It is a powerful channel for its target market and a strong form of

communication with all stakeholders.

In association with Telethon, Arthritis & Osteoporosis also released

“The Bones and Joints School” website, which focuses on providing

information to families, children and teachers, in order to develop and

maintain healthy lifestyles and prevent chronic conditions.

Audience

According to Lomma and Labuschagne, 2015, Arthritis & Osteoporosis

WA targets any person who is interested in the cause, however they estimate

that 50% of the audience are above 50 years old and predominately women.

They claim to have approximately 100,000 people subscribed for the website

news and direct mail list. Although specific demographic market data from the

Foundation was not provided by them, according to research performed by

Deloitte Access Economics published in a report provided by Arthritis and

Osteoporosis Victoria (2013), it was estimated that Western Australian had

1.2 million people with arthritis, osteoarthritis or related diseases in 2011-12;

where 59% of the total were women and 41% men. Elderly are the most

affected by the illnesses, but affects any person regardless of age and it is

estimated that the number of people with related diseases will increase by

43% by 2032, affecting 30.2% of the population.

Competitors

Arthritis & Osteoporosis WA is the only non-profit organisation in

Western Australia related to the cause of arthritis and osteoporosis. Although

it does not have a direct competitor, according to IBISWorld Industry Report

for Charities and Not-for-Profit Organisations in Australia (2012), there are

about 44,800 non-profit organisations in Australia, among 800 are health-

orientated and 12% are in Western Australia. Some of them are highly

supported by the media, such as Telethon and Cancer Council WA to mention

a few.

This highly competitive market is felt by the Foundation in areas

involving fundraising and raising awareness in the general public. The

Foundation’s osteoarthritis cause is forced to compete against other health-

related causes, which are sometimes considered to be higher priorities in the

health community, e.g. cancer, HIV. This stresses the need to improve

marketing promotion; despite the indirect competition, the Foundation has a

strong brand and a good reputation in the areas where it operates, which is a

point of strength to be emphasised.

Microenvironment

In order to more effectively analyse the microenvironment of Arthritis &

Osteoporosis WA, a SWOT framework analysis is provided below to

summarise the strengths, weaknesses, opportunities and threats that the

organisation is currently facing.

Strengths: the Foundation has its own building, which minimises

operational costs and is also used to raise funds; good brand reputation in the

community, which is the most greatest point to be stressed; there are no

same orientated regional competitors; good support from doctors and

hospitals in the region; it is also exempt from paying taxes and is registered at

Australian Taxation Office as tax deductable for its supporters.

Weaknesses: as with most non-profit organisations, the Foundation

has financial limitations, limited staff and heavily relies on donations and

volunteers, and therefore struggles to embrace all the necessities of the

community, especially those in its regional areas. The Foundation has not

prepared itself for necessary changes in the future, as older groups are

becoming increasingly technologically savvy.

Opportunities: a rewarding opportunity exists to increase its

partnerships with companies sympathetic to the Foundation’s mission. This

can be achieved by offering educational seminars at these companies,

stimulating an increased awareness within different target markets and the

possibility to raise more funds. Furthermore, the Foundation can increase its

exposure to youth in order to raise its number of volunteers and its awareness

though social media and school seminars. To resolve the Foundation’s

weakness to change as described above, an opportunity exists to explore

better technologic tools, (e.g. online seminars, apps, interactive online health

advice) as technological use is becoming more widespread.

Threats: Despite the indirect competition previously mentioned, the

Foundations can be impacted by economic crises. For example, the current

mining crises in Western Australia may already be affecting the Foundation’s

fundraising revenue streams, as people tend to decrease contributions to non-

profit organisations when they are facing financial difficulties.

Unawareness of the community and disregard from the government

are concerns that the Foundation is conscious of.

Macro environment

On the macro environment side, the Foundation also faces some

threats. It PESTEL analysis framework is used below to classify the risks that

should be addressed:

Factors Arthritis & Osteoporosis WA

P – Political - The work of the Foundation can be

influenced by political action e.g. the

governmental support given to help

the local communities in rural areas.

- Changes on social policies and

regulations can impact the Foundation.

E – Economic - Interest rate and financial markets

are concerns, as the Foundation has a

high amount of resources invested and

rely partially on the financial revenue

- Unemployment rate and economic

crisis such as the current mining

crises.

S – Social - Increases in the age of the

population and the number of people

suffering with related diseases as

forecasted by Deloitte Economic

Report, 2012.

T – Technological - Increased competition due to the

digitalisation of the non-profit health

market. A higher reliance on

technology is therefore required to

meet the Foundations fundraising

needs. Electronic and online

applications can be developed and

implemented in websites and mobile

phone services to engage with market

audiences more effectively.

E – Environmental - Limited number of clinics and other

health facilities located within more

rural and remote regions.

- During the cold weather there is an

increase in the symptoms experienced

by those suffering from arthritis,

osteoporosis and other related

diseases. Consequently, during winter

there is an increased demand for

support for those suffering from such

medical conditions.

L – Legal The Foundation has to abide by laws

that specifically concern the way in

which a non-profit organisation must

operate.

Changes in the tax deductable award

from the Australian Taxation Office

can be a high impact issue.

Marketing Activities

The Foundation has numerous marketing activities such as:

- Fremantle International Portrait Prize 2015, is the most successful

campaign supported by Arthritis & Osteoporosis WA for many years.

- Camp Freedom is organized and coordinated by the organisation once

a year and target children. This years its celebrated its 25th year of

operation.

- The partnership with Ms Suzie Edward May, author of the book

“Arthritis, Pregnancy and the Path to Parenthood”, promotes the book

and supports Ms Suzie on lobbying within the federal government.

- The Arthritis Getaway (TAG), held during a weekend, targets youth

volunteers of the Foundation and attempts to maintain a support team.

- Social media is also one of the on-going marketing activities via

Facebook and Twitter.

- The Foundation frequently promotes specific seminars to attract more

audiences.

- In 2014, the Foundation supported Mr Mike Pauly, who travelled

15,000 km around the coast of Western Australia on his bike to raise

funds for the organisation. The project had mass-national coverage

and was celebrated as a successful campaign.

Key Marketing Objectives

The aim of the marketing objectives is to maintain a high level of

attention concerning the organisation’s mission, in order to attract more

regular donors as well as volunteers for the company.

Be transparent and ethical to maintain people’s trust and increase

awareness around Western Australia in regard to arthritis, osteoporosis and

related diseases.

Budget

The company currently has seven projects in analysis and an

according budget as presented by Lomma and Labuschagne, 2015:

1- Social Media Campaign – Budget AU$ 10,000

2- Advertising Campaign to promote its social line services and online

courses to rural and remote areas – Budget AU$ 5,000

3- Fundraising Event that generates a revenue of AU$ 50,000 –

Budget AU$ 25,000

4- An Awareness campaign to dispel the myth that A&O occurs only in

old people – Budget AU$ 100,000/250,000

5- Develop a cause related sponsorship opportunity for Arthritis &

Osteoporosis WA that would raise funds and be beneficial to the

sponsor – Budget not determined.

6- Create a strategy to attract people to donate more regularly –

Budget AU$ 25,000

7- An awareness campaign aimed at primary school students on the

importance of health bones and joints using its website

www.bonesandjoints.com.au - Budget AU$ 100,000

Conclusion

Arthritis & Osteoporosis WA is a solid and well-established non-profit

organisation in Western Australia with an immaculate reputation and a strong

potential to expand its performance. Its customer’s needs are well known and

its services are well developed by the company.

Customer perceived value and satisfaction are highly recognised and

the community has a positive perception of the company. Its brand market is

also stable and consistent.

There are opportunities to be explored on B2B and room for

improvement on digital marketing as well as targeting youth audience.

Recommendation

Arthritis & Osteoporosis WA has an enormous opportunity to expand

their target marketing on health-orientated companies, and creating

partnerships with health retail industry. Furthermore, the Foundations could

offer their services such as seminars, talks and promotions to companies and

increase their interactivity with such stakeholders to leverage its fundraising.

It may be beneficial to intensify its social media involvement and create

interactive tools for smartphones in order to supply the digital market and

attract audiences from remote areas.

References

Armstrong, Adam, Denize, and Kotler. 2012. Principles of Marketing. 5th ed.

Australia: Pearson.

Arthritis & Osteoporosis WA. 2015. Accessed August 18,

https://www.arthritiswa.org.au/.

Arthritis and Osteoporosis Victoria. 2013. “A Problem Worth Solving: The

Rising Cost of Musculoskeletal Conditions in Australia.” Accessed August

18,

http://www.arthritisvic.org.au/Research/AOV-Funded-Research/

Completed/A-Problem-Worth-Solving/APWS.aspx/.

Arthritis Foundation of WA Incorporated. 2009. Constitution as amended April

2009.

https://www.arthritiswa.org.au/useruploads/files/

constitution_signed_as_amended_2009.pdf

“Arthritis Today.” Arthritis & Osteoporosis WA. Winter 2014.

“Arthritis Today.” Arthritis & Osteoporosis WA. Autumn 2015.

Bones and Joints School. 2015. Accessed August 18,

http://www.bonesandjoints.com.au/.

Director of Arthritis Foundation of WA Incorporated. 2014. Annual Financial

Report 2014.

https://www.arthritiswa.org.au/useruploads/files/arthritis_foundation_of_w

a_inc_-_2014_annual_report_combined.pdf

IBISWorld. 2012. “Industry Report X0021 Charities & Not-for-Profit

Organisations in Australia.” IBISWorld Industry Report.

http://www.ethicaljobs.com.au/files/2012_NFP_report.pdf

Lomma, Lily and Labuschagne, Kirsty. 2015. Interview of Lily Lomma and

Kirsty Labuschagne, interview by Curtin MBA (Global) Students, August

10, Curtin University, Bentley, W.A.