Obesity Prevention Marketing Plan Obesity Prevention Nonprofit

Obesity Prevention

Marketing Plan

Obesity Prevention Nonprofit Organizational Marketing Plan

The primary purpose of this report is to help investors understand the need for a program which will help reduce obesity throughout the UK and then less developed countries in Eastern Europe. The problem is that the environment that many developed countries have created for themselves advances obesity without intending to. There is also the danger among less developed countries, that are beginning to see some amount of prosperity, that they could have the same issues that the rest of the developed world is having (Hill, Wyatt & Peters, 2005).

The goal is to use a program that has been proven to be effective to make sure that people have the tools that they need to be able to combat obesity. The issue is that the predominance of obesity is among the poor and especially with women and children. Therefore, this program is designed to work with hospitals to seek out people who would be willing to enlist in a program that would provide education and support as they try to either reduce obesity where it is already occurring and to educate people so that the occurrence is lessened.

This program is endorsed by studies which have been conducted in clinical trials to see if it does indeed reduce obesity. The success rate was great enough that it the process was endorsed by hospitals and doctors across the UK. Much of the funding has come from these institutions and individuals.

Funding for this project comes from partners in the healthcare industry, doctors, corporate sponsors and from government grants. The funding is sufficient for the first three years of the project, and additional funds are already being elicited through further partnerships. The problem could be when the company moves into the foreign market. Since the goal is to make this a worldwide solution, it is necessary to begin in a test market of slowly developing countries in Eastern Europe. The countries chosen have been chosen for their base economies which are presently growing at a positive rate. The thinking is that these countries will have issues with obesity as many industrial nations do as they develop. The funding in these areas is not as firmly established, but startup costs are already being gained from foundations and corporate sponsorships in the UK.

Product

The two possible products that were discussed for this project were related to starting a company which provided some form of assistance related to either heart disease or obesity prevention. Both are problems that have plagued the developed nations of the world for some time, but both are becoming epidemic (if they are not already). Heart disease is a more dangerous immediate problem because it can cause death instantly. Obesity, on the other hand, is like many other killers (alcohol, high cholesterol) that take time to cause adverse effects, but many of these types of issues are more dangerous to the world as a whole. The reason that obesity is probably a the more dangerous of the two in the long run is that it is significantly linked to heart disease and to other very detrimental health effects. From;

"the Foresight Commission report Tackling Obesity: Future Choices states that in the UK obesity has doubled over the last 25 years, and that in England, nearly a quarter of adults and approximately 10% of children are now obese, with a further 20-25% of children overweight. They suggest that by 2025, 40% of Britons could be obese" (Colls & Evans, 2010).

This is in the UK alone, but research worldwide has shown that obesity is problematic in most nations. Also, its "co-morbidities'…include heart disease, some cancers, and type 2 diabetes" (Colls & Evans, 2010). Therefore, this product is going to be with regard to the worldwide obesity epidemic.

The product under discussion here will be a health related intervention that can decrease the incidence of obesity in the UK and other spots which the company decides to operate. The original launch will be in the UK with subsequent investigation into Eastern Europe as a possible secondary launch site. The intervention will be based on training poor women how to decrease their own greater tendency for obesity (Wakefield, 2004), and how they can help their children reduce the possibility of lifelong obesity themselves.

Situation Analysis

The Company

The company is structured as a nonprofit that works in various forms of social marketing to improve the lives of people and their overall environment. The basis of a nonprofit has changed over the years from one which primarily uses "include income from the people who consume and pay for the services of a particular organisation, membership fees from those who may choose to join a particular organisation, fundraising, government contracts and grants, interest or rents received from investments and other business activities" (Zappala & Lyons, 2006), to one that has taken on the approaches used by for-profit companies and government agencies. The company model has had to change as a result. In general, nonprofits have been run by subject matter experts who were professionals in the discipline with which the nonprofit was concerned (Thomas, 2004). However, since there are less donations and government funds to go around, a nonprofit must exist using business principles which are often unfamiliar to professionals who do not have a business background (Frumkin & Kim, 2001). That is the model for this business also. Since the market is now filled with companies who are developing new ways to finance social marketing, this company also needs to look into every possible avenue for funding if it wishes to compete for the funds that are out there.

It may not be intuitive that there are enough funds from businesses and others during this economic climate, but they are still present. According to a market report in 2003 about 92% of companies "contribute to a cause or participate in some form of philanthropy" (Thomas, 2004). Because of the breaks that companies are able to realize in corporate taxes and due to the positive advertising that giving brings, companies are more likely now than ever to contribute to what they believe is a worthy cause. This nonprofit will solicit funds in the traditional ways, but will also try to think more like a for-profit business when it comes to building brand and soliciting business.

Customers

The primary customers of the business are the people that will be helped by the product. Studies have shown that people who are in the lower income brackets, women and children are more likely to have issues with obesity. The primary problem has been identified to be an public atmosphere that promotes obesity even as it says it does not.

"Our current environment has been characterized as one that provides a plentiful supply of inexpensive, high-energy, good-tasting food that is available continuously throughout the day. Similarly, our current environment is one in which the need for physical activity has largely been eliminated from the daily lives of most people. Our ancestors had to expend substantial physical effort to secure food and shelter and for transportation. Today, these activities require little physical effort. Most of our leisure time is spent in sedentary pursuits" (Hill, Wyatt & Peters, 2005).

As for customers, this means that the entire world (but especially industrialized nations) are customers for a business which is trying to change the obesity environment, and specifically change it for underprivileged women and children.

Competitors

There are many competitors in this field, but it is easier to see them as collaborators than strict competitors. However, there will be institutions which are competing for the same funds that this company is. These are nonprofits which are specifically targeting people who are either obese themselves, are trying to help someone who is obese, or they have a program which in some way drains social market funds. It does not matter that a company necessarily has a primary obesity prevention focus because most of the funds that are designated for this type of product will be spent on a type of social welfare, not specifically spent on a type of program (Raval, Subramanian, & Raval, 2007). Therefore, the list of competitors for this type of business is long.

Collaborators

Most of the time a company that specializes in a social product will either have government backing already in place or they will have corporate sponsors to help ease the financial burden. This company will seek government grants, but there will be no government funds as the business plan has already stated. Thus, there will have to be some collaborators who are available to help with the funding, advertising and implementation of this product.

The companies solicited will be hospitals and social work agencies to help deliver the message to the target group, companies that wish to advertise at functions the company is putting on and help with general funding grants, and social marketing advertising companies to assist with advertising the program. These collaborators will be asked to commit to a certain length of time commitment or they will be asked for a certain percentage amount for funding.

Business Climate

Now seems to be one of the best times for companies such as this to be engaged in social marketing. The reason is that the government is divesting much of its formal involvement in programs which could be better managed and funded by the private sector (Smith & Mentzer, 2010). The government is making the environment for social businesses better so that they can thrive, and take over some of the financial burden that has long been accepted by the government. However, even with that government support there are a large number of companies which are either starting out with a social model (Spaulding, Gottlieb & Jensen, 2008), or they are expanding there present business to include social causes.

The public is much more receptive to private sector involvement also. Since most realize the trouble that the government is having with maintaining the financing of social programs, they have looked to private companies to fill the void. Also, people realize that obesity is an epidemic problem, and they want to see real solutions to it. people are more willing to seek assistance for weight issues.

Since the company also expects to divest into Eastern Europe and the nations that are in developing stages there (such as the Balkan states), it is necessary to look at the business climate there also. The European Union has made it possible for many nations to build there economies because they have a greater number of trade partners. However, the financial downturn that has occurred over the past three or four years has affected a lot of nations. Therefore, there will be some challenges that the company will have to make sure that they have examined (Horwitz, 2007). The term that has previously been coined is third world nation, which, from a financial point-of-view, meant that the country had only one true export (Barreto & Hughes, 2004). However, most nations in the EU can be considered past that designation. A nation may be considered developing though if they meet certain financial criteria. These are "few exports, a decreasing or stagnant ratio of total trade, lack of civil liberties, high ratio of government consumption to the GDP, and a large population over the age of 65" (Barreto & Hughes, 2004). Thus, the entire financial impetus for this move will have to come from the UK at first before the company is able to generate operating funds from the foreign venture. The reason that this program is going to be tried in a developing nation is to determine if it would be socially profitable to the people of these types of nations. Since the people are poor now, and they may gain poor eating habits because the wrong kinds of food become more readily available with the increasing financial well-being of their country, it seems best to start a program such as this before individuals become used to bad habits.

SWOT

Strengths

The corporation was founded by two individuals. One has a great deal of international business experience, and the other is a nurse who has worked with many patients regarding their obesity issues. The company also has enough revenue to operate at current cost for three years, and it has enough dedicated revenue to run indefinitely. The primary program for obesity cessation has been proven effective in clinical trials, and it has been marketed to the public via focus group testing. The business is located near a major hospital which aides in sending clients who need that additional help.

Weaknesses

This is a new concept which has only been investigated in clinical trials. There has been, so far, no real world testing of the process. There a lot of companies which offer similar products and services now that the government has divested itself of many social programs. There is a very small initial budget for advertising whih could be a crucial component of the startup.

Opportunities

Since the government is divesting its role in social services there is a lot of opportunity for private enterprise in this sector. Also, there are many companies which are seeing this type of social marketing company as a great way to spend advertising dollars. There is also an opportunity because there are a lot of people in both the UK and world markets who need better training in obesity prevention.

Threats

The competition will be fierce and there are many new social marketing companies from the UK and overseas the continent which could take away business. This is also the first time this company has tried to build its business on the continent. This means that it could be problematic dealing with language difficulties, hiring people who can bridge the cultural gap and finding enough funding in other countries (Russell, Mort & Hume, 2009). There is also the issue of not being able to establish a brand that is recognizable to the public, especially in foreign markets (Arozian, 2003).