Target Market
The aim of the American Red Cross is to attract donors who can fund the non-profit philanthropic activities of the organization. The target market is the whole of the USA. The total population of the country is 312.8 million (U.S. Census Bureau, 2012). Usually two kinds of donors are targeted by the organization – corporate and individual donors. The strategy to accommodate corporate donors is to share with them the goodwill that can be earned when they and their business along with their employees associate with a relief program or a community development program.
In case of individual donors, donors are selected from various age groups and demographics depending on the program or the event. For instance, in case of Clara Barton Society where the organization aims at receiving pecuniary donations and hence target working class middle or upper middle class individuals.
They have a donation scheme divided into four levels – Bronze ($1,000 – $2,499), Silver ($2,500 – $4,999), Gold ($5,000 – $9,999), and Platinum ($10,000+) (American Red Cross , 2014). Presumably, the target group is people belong to a working age group from 25 years to 60 years. There is no evident segregation in gender specific target in this case.
Further, other legacy programs such as Robert R. Smith Legacy Society or Leave a Legacy program aims at gaining donors who would bequest a large sum of money towards American Red Cross. The specification on the website of the organization shows that there are specific measures one can take in order to leave behind their legacy – “Bequest in Wills, Charitable Gift Annuities, Trusts, Life Insurance, Retirement Plans” (American Red Cross , 2014). In other words the target is wealthy, employed people who would make their will and/or can leave behind their savings towards the cause of the organization.
Table 1: Target market
The overall analyses of the target market shows that the American Red Cross has targeted are adults within the age group of 25 to 60 years. They target people from middle class and upper middle class employed households who have the means to donate a lump sum towards the cause. The American Red Cross primarily targets people living within United States of America as their target.
Size of Target Market
The overall target of the market is the whole country; hence, the size of the market is estimated to be 312.8 million. Such a huge market is undertaken for the study as this will allow greater reach for the organization. According to the census report of 2012, 80.9 percept of the population fall under the age group of 60 years (U.S. Census Bureau, 2012). Of these, 58 percept are employed in the US (U.S. Census Bureau, 2012). The organization will target people with an annual income above the mean income of the country i.e. above mean non-family income of $46225 or more accurately above the mean family income of $85000 (U.S. Census Bureau, 2012).
The individuals with income higher than mean level in the US is estimated to be 52 percept of the total income. Households with income higher than the mean level are 28 percept of the households in the US (U.S. Census Bureau, 2012). Thus based on the income and age preference of the organization, the organization may target almost 30 percept of the households in the US.
Current Marketing Efforts
The marketing efforts of the organization are divided into three parts – direct marketing, conventional marketing through newsletters, print and visual media advertisements, and social media in the Internet. The organization has a website that links all their activities into one place and helps to reach to targeted donors. The social media presence of American Red Cross in websites such as Facebook and Twitter to reach out to volunteers and donors has been a successful strategy. The Facebook page of the organization is a mean of reaching to millions of Facebook users to promote relief activities or charity balls or events. Twitter is used as a means to spread awareness and LinkedIn is used to reach out to the targeted group for endorsement and donations.
Celebrity endorsement is another means of gaining target market attention and campaigning for a cause. For instance, endorsement of celebrities like Angelina Jolie is highlighted through the marketing campaigns in order to increase credibility of the event.
Integrated Marketing Communications
A few approaches that American Red Cross does not yet target the younger generation. This marketing approach will aim at getting volunteers today and one who will enter the job market in the next 5 to 10 years and will become donors for the organization. In order to build new donors from the younger generation involving the generation into volunteering activity is essential. Hence, direct marketing in schools and colleges is essential. Further, targeted marketing through social media and television is essential to create awareness among individuals in this age group.
Direct campaigning is essential today. Directly reaching the target groups through newspaper and magazine advertisements as well as getting them involved through workplace activities will inform as well as engage the targeted individuals.
The paper will now delineate the plan of a web page projecting an expense not more than $10,000. The idea condition will be gaining five times the expenses as revenue so that the contribution to the mission and programs of your charity is at least 80% of the revenue you raise. On the other hand, the projection must be realistic about the revenue estimates. The aim will be spend $10,000 and raise at least twofold of $10,000 or more.
Public Relations
Press Release
The American Red Cross has undertaken extensive relief activity to help the survivors of the devastating flood that affected Yates County in mid-May 2014. The organization has received assistance of more than sixteen thousand dollars to help the survivors of the flood torn region.
American Red Cross set up a shelter in the Penn Yan Academy in order to provide shelter to the victims of the flood. The victims were immediately served hot meals, snacks, and water. Further medical and clean up kit was delivered to the sight in order to continue the rescue process. Further, volunteers went up to the Yates County to clean up the water that had stagnated in the area in order to facilitate rehabilitation of the victims.
Door Hanger
The sample of the above door hanger demonstrates the symbol of the Red Cross familiar as a brand and the name of the organization. The hanger can be distributed in the locality with the aid of volunteers who belong to age group of 15 to 20 years. Young individuals who deliver newspapers can also be of help in distributing the door hangers to the local community.
Event Flyer
The celebration of a World Donors Day through a blood donation event helps to increase awareness of the program and engage community into other Red Cross activities.
Financial Analysis
From the marketing campaign presented above, the money spent for the campaign or advertisements and blood donation efforts and other integrated marketing efforts is expected to amount to $18,500. The revenue that is expected to have been raised through these above mentioned marketing efforts are shown below. The financial analysis is presented in the table below (see table 2).
Table 2: Financial Statement.
In case of the door hangers, requesting for making donations it is expected that for every 10,000 hangers, 100 responses can be expected with a donation of $10 each. We have distributed 10,00,000 hangers, thus expecting around 1000 responses. This helps us generate revenue of $10,000 at the cost of printing the hangers, which cost us $4000. During the blood donation and fund-raiser drive, we may reach out to 500 individuals and receiving contribution of $50 from each, thus generating revenue of $25,000. Apart from this, we may approach corporate houses and local businesses to donate for our cause.
From Website is expected to be viewed by 10 million viewers of whom only 0.1 per cent will donate for the cause. Thus, if $10 is received from each of the 0.01 per cent of 1 million views, it will generate revenue of $10,000. Table 2 demonstrates that the cost of opening and maintain a website will be around $2500 and the overall cost of making and distributing hangers should not be more than $4000. The cost of the blood donation fund raiser should not be more than $10,000. Hence the overall profit margin targeted by the organization is around 59%.
Conclusion
The paper demonstrates the possible marketing strategy that American Red Cross can adopt. The paper demonstrates the three strategies that the organization can adopt apart from making another web page and the expected financial analysis. The analysis demonstrates that if the marketing for the organization is done properly, with its present brand value and awareness, a little marketing effort will yield a lot of profit. Even though the organization is a non-profit organization, marketing effort will help it reach to a larger number of people.
References
American Red Cross. (2014). Individual Donors. Web.
U.S. Census Bureau. (2012). Current Population Survey, Annual Social and Economic Supplement, 2012.