Marketing strategy for UK obesity prevention nonprofit expanding to Eastern Europe

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.

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).

One additional threat which has become more prevalent in recent years is the fear of mismanagement from nonprofit officers (Mitzen, 1998). In many companies "As a result of financial corruption within nonprofit organizations, calls for greater accountability and ethics among boards of directors, members of management, and employees have increased" (Smith & Richmond, 2007). Some of the problems that have been noted have been "fiscal mismanagement, and faulty corporate governance," but solutions have already been attempted to end the occurrence through "Audit committees, whistleblower protection, certification of financial statements, a delineated code of ethics" (Smith & Richmond, 2007). This is listed as a threat because there is the possibility of mistrust on the part of sponsors and donors due to previous mismanagement from other similar firms.

Selected Marketing Strategies

Product

Any company needs to make sure that it has built its brand to the largest extent possible. This goes for nonprofits that need to have a base of customers and donors know who they are.

"Branding is a way to establish a strategic perception of a nonprofit's value among a range of constituencies, including citizens, clients, volunteers, businesses, government organizations, donors, and other groups. It's also a way to organize communications support for initiatives such as outreach programs, fundraising, new programs, member or client communications, and advocacy efforts" (Arozian, 2003) .

Thus, the company must do everything that it can to build the product it is selling as well as the company which is selling the product.

Price

The price of the product is one of the primary methods for introducing the service when there is significant competition. Since this is a nonprofit, the price for the service can be kept low to make sure that as many people as need the service can get it. Advertising will help with making it known to the public the advantages of the product according to pricing and effectiveness over the competition's products.

Distribution (Place)

The company first has a presence in the UK which will be well established before there is any movement into foreign markets. However, the plan is to move into eastern Europe as soon as possible. Also, the service will be distributed throughout the UK via the network of hospitals which come into constant contact with patients who need advice regarding obesity.

Short and Long-Term Projections

The short-term goal is to engage more corporate sponsors who will be able to enroll employees into the program and also provide funds for further expanding the product. Since operating capital already exists for the first three years, it is not critical to have positive cash flow initially, but with partnerships from healthcare organizations and corporations, the company should have no issues meeting costs.

Long-term, this process for reducing obesity should be in schools throughout the UK and Europe. The need for an effective anti-obesity campaign in schools has been noted in much of the research (Story, Kapinghst, & French, 2006). Also, there is a need for these types of programs among the poor of the continent and in the UK (Hood, 2005). The company hopes to help individuals worldwide who are having issues with obesity, and build the product base through further research.