Marketing research of Royal National Lifeboat Association (RNLI) - Essay Example

?Marketing Research of Royal National Lifeboat Association (RNLI) Table of Contents Introduction 3 2.Brief Overview of Royal National Lifeboat Association (RNLI) 4 3.Internal Analysis 5 3.1.Value Chain 5 4.External Analysis 10 4.1.PEST Analysis 10 5.Summary-SWOT 12 6.Marketing Goals and Objectives 13 7.Targeting, Segmentation and Positioning 14 8.Positioning and Branding Strategy 14 9.Bequest and Fundraising Marketing Strategy 15 10.Promotional Mix 16 11.Conclusion 17 12.Recommendation 18 Reference 20 1. Introduction In today’s competitive world every organisation weather profit making or non profit, making or non-profit making is facing stiff competition. Globalisation has made the competition steeper. Every company must have a proper market plan to survive in this competitive market. Market research can be defined as planning, collecting and analysing data which are relevant for making marketing decision (Carl, McDaniel and Gates, 1998). Making a proper market plan involves extensive market research. The process of marketing research involves six main steps. The first step is to identify the problem or the objective of the research. The goal of the research should be properly stated. Second step is to develop a research plan. This step involves deciding the sources from where the data should be collected, the methods which will be used for doing the research, the instrument to be used in the research etc. The third step is to collect the information. Many errors can occur in the third step like incorrect sampling, incomplete questioners etc. Fourth step is analysing the collected information. In this step various qualitative and quantitative methods are used. Fifth step is to communicating the results to the management and the last step is of making the decision. Based on the findings the management takes the relevant marketing decisions (Kotler et al, 2009.). In this research various internal and external analyses has been done to identify the strength and weaknesses of the organisation. The internal analysis is done using value chain method. Value chain method is a very common method used for analysing the activities which are creating value. This method was created by Michel Porter. The strategy which is prevailing in the Royal National Life boat Association has been analysed. The external analysis has been done using PEST analysis method. Various factors such as the economic, social, technological and political are critically analysed to know the influence on the organisation. On the basis of the analysis made SWOT analysis has been done to know the organisation’s strength and weakness, opportunities and threats the organisation is facing. At the end recommendation have been made on how the marketing objective can be achieved. 2. Brief Overview of Royal National Lifeboat Association (RNLI) The Royal National Lifeboat Association was founded in the year 1824. It was founded as the National Institution for Preservation of Life from Shipwreck. It was renamed as Royal National Lifeboat Association in the year 1854. It had its first street collection in Manchester in the year 1891(RNLI-g, 2011).The main work of Royal National Lifeboat Association is to provide safety at sea. It offers lifeboats and lifeguards. It is also involved providing sea safety, beach safety, fishing safety, weather forecast and youth education. The beach involves providing lifeguards. This organisation is also into providing information required to be safe in beach. It also organises summer safety campaigns to make people aware of benefits of swimming at beaches which have life guards. It is providing fishing safety for last ten years. It produces various DVDs, pamphlet etc which helps in providing safety at sea. It also educates young parents and teachers on how they can be safe in sea. They also invite young people to join as volunteer in their organisation. They also provide weather forecast through their website which is daily requirement of fishermen. RNLI is also involved in flood rescue operation. The first flood rescue operation was done in the year 2005 in Guyana. It provides special training to r4escue team so that they can act efficiently in worst situation. Its main source of earning is donation, membership subscription, volunteering, legacy etc (RNLI-h, 2011). 3. Internal Analysis Royal National Lifeboat Association (RNLI) has been engaged in a noble cause i.e. saving people life. RNLI has been constantly offering its services to human society since more than 100 years. This organisation has been able to sustain as its management has been very efficient. In order to frame a set of plausible strategy for the next 3 years, it is necessary to conduct internal analysis of this organisation. In this regard, value chain analysis is very useful manage analysis tool. 3.1. Value Chain Generally, value chain includes all the necessary primary and supporting activities of a firm mainly for profit making organisation but in case of non-profit making organisation (NGO) like RNLI, the structure of the value chain is quite different. The following figure represents a general value chain model of Figure 1: Value of an NGO (Source: Moore, 2003, p.26) As per the above figure, primary task of an NGO include activities aimed to client satisfaction through process, procedure and programs which is supported co-producers and partners. In case of RNLI, it has been successfully managing its value chain process that has made it pioneer NGO in offered services category. While managing a value based management of their entire process presented in the figure 1, an NGO should focus on three major aspects and it depicts in the following figure. Figure 2: Public Value Framework for Accountability and Performance Management (Source: Moore, Brown and Honan, 2001, p.23) Considering above three major aspects for managing an NGO value chain, each of these is explained below in respect of RNLI. Public value creation: RHLI has been established within a strong foundation with the purpose of saving lives of people as sea. For a focused cause, it has developed its specific organisational goal, vision, and values. Its core value are standing on four major criterion i.e. selfless, dependable, trustworthy and courageous, and these are very helpful in achieving its vision i.e. “to end preventable loss of life at sea” (RNLI-a, 2011). Moreover, RNLI is also very clear that must be maintained at any cost e.g. “Volunteer ethos”, “Independent of Government”, “Major charity”, “community based”, “Maritime” and “Heritage” (RNLI-a, 2011). These values and specific goals are very effective in motivating its volunteers and potential volunteers. RNLI has been able to meet these promised values and visions and as result it has been able to attract number of significant donations. Expansion of support and Authorization: the management has full realisation that without significant amount of money, it is not possible to offer such volunteer services and hence, it requires a significant amount of money for its operational activities and for other capital investments. RNLI is independent originations and does not receive any kind of support from government. Its major expenditures includes cost for recue works, coastal safety, R&D (Lifeboat design), maintenance etc. On the other hand it has mainly three sources for money inflow i.e. from legacy, fundraise income, and income from investment & merchandising of lifeguard. A large amount of money inflow is from the legacy followed by fundraising and them merchandising. It has been very successful in arranging money from legacy and donor as its general public relation is very high as respectable organisation (RNLI-b, 2011). Developing operational capacity: RNLI’s operational activities are very effective. Due to volunteering ethos, its management and its crew are very efficient in meeting their responsibilities. The major staffs includes lifeguard, shore helpers, fundraisers etc who are well trained in their activities for excellent operational activities. Moreover, RHLI has also includes its trustees, numerous volunteers, celebrity supporters etc which are indispensible for its effective operations (RNLI-c, 2011). Besides, it is also full equipped with necessary equipments like lifeboats, and other plant and machinery. The following figure represents its income, expenditure and capital expenditure graphically. Figure 3 (Source: RNLI-d, 2010, p.10) The following tables present total worth of the lifesaving equipment of RNLI and the statistical overview of its operational process. Table 1: Lifesaving equipment (Source: RNLI-e, 2011, p.3) Table 2: Lifeboat statistics overview (Source: RNLI-f, 2010, p.5) 4. External Analysis 4.1. PEST Analysis PEST Analysis is a method to analyse the political, economic, social and technological factors which effects the organisation. It is mainly done to analyse the external factors effecting the organisation. Political: Political factor includes the government policies, regulation and legislations. It involves the rules and regulations which are required to operate an organisation such as the licensing policies, the clearance required to operate the business. Political factors also involve the taxation policies. The taxation policies affect the earnings of the business. For non-profit and charitable organisations policies regarding grants are very important. In UK trusts are also liable to capital gain tax on legacies once the property in legacy is sold to any other person (HM Revenue and Customs-a, n.d.).In UK if a company gives up to 100 pounds as donation to any charity the company can claim up to 25% of the donated amount as tax relief (HM Revenue and Customs-b, n.d.). Economic: Economic factor also has a major impact on every company. Economic factors include growth, rate of interest, rate of inflation, foreign exchange rates etc. Every organisation need funds to operate therefore disposal income becomes very important. Most of the revenues of RNLI come from donation, membership subscriptions and legacies. UK currency pound sterling is the most expensive foreign currency which gives the organisations to take the advantage of the exchange rate while dealing with the monetary receipts from other countries. Social: Social factors include the culture, consciousness about health, population, consciousness about safety etc. The main work of RNLI in to provide safety at sea. From 1991 to 2008 there has been a considerable decrease in the number of accidents at sea in UK. This means that people are becoming more and more conscious about sea safety (International Chamber of Shipping International Shipping Federation, 2011). Technological: Technological factors include use of modern technology, research and development activity etc. RNLI is based in UK where use of modern technology is easily available. Special electronic gadgets are available which can be used in tracing people stuck in shipwrecks and in flood situations. With the help of modern technology like e banking funds can be easily transferred and that too any time. 5. Summary-SWOT SWOT is an acronym of strength, weakness, opportunity and threat. This is an important tool used while taking strategic decisions. Every company has to judge its strength and weakness from time to time. Similarly one has to know what are the opportunities one could fetch in the present scenario and what are the possible threat at it can face in future. Therefore SWOT analysis is done by every company. In this project a SWOT analysis has been done on RNLI. Strength: The main strength of Royal National Lifeboat Association is the sector in which they are working. The need for safety and disaster management will always there in the society. This sector will never have stagnancy. UK had a number of beaches. Every beach requires safety measures. There will be always a need of people who will provide safety at beaches. Moreover sea safety is also required. RNLI has also diversified itself into the sector of educating people about sea safety measures. Strength of RNLI is its well trained staff. The volunteers of RNLI are specially trained to tackle the worst situation faced during floods. Its huge experience in this is also its strength. Weakness: The main weakness of RNLI is that it is involved in sea safety only. RNLI has to upgrade its technology from time to time and for that it needs good amount of money. The main source of money of RNLI is legacies but legacy is a source of income which does not have any guarantee. It depends on person’s psychology and the organisation cannot bet on this type of source. Opportunity: There is an increase in charity in recent years. The government is giving tax benefit on donation to charitable organisations. This is boosting up the donor from all sectors of the economy to donate. There are also international organisations that are providing help to the charitable organisation. Threats: The competition in the sector of charities is increasing day by day. In order to survive in this sector a large amount of fund has to be invested for advertising and publicity. Fund raising techniques followed by the organisation might not work in future. 6. Marketing Goals and Objectives Royal National Lifeboat Association (RNLI) association has been engaged in the life saving activities since more than 150 years. However, this volunteering cause requires a significant of monetary support to multiple development and other necessary expenses. As it has been already discussed that its source of money come from three major sources i.e. legacy, donation and merchandising. Hence, the primary goal of this marketing plan of RNLI is to generate enough amounts to monetary help to support the ongoing operational activity without any constraints. In this regard, major task is to create awareness regarding RNLI and its noble cause by developing a respectable brand image in the market. This will be helpful in increasing the number of donors, and volunteers. On the hand, monetary supports are also very necessary for supporting its volunteer crews. In this regard, some of the specific marketing objectives are given below. To promote the benefit of donating bequest To encourage the potential volunteers for joining RNLI To attract more number of donors To develop a respected brand image for its increasing its merchandising activities 7. Targeting, Segmentation and Positioning In order to achieve the broad goals and to meet the specific objectives, it is necessary to the specifically define the target market. Besides, one of the primary aim of RNLI is to brand development, hence, it is necessary to the properly segment the target market by positioning itself before its segment target market. In case of RNLI’s non-profit activities for noble cause, the target market includes every people of from society as each of them can make very crucial contribution to achieve its mission and vision. However, the major focus will be on the people more than 18 years olds from UK. In case of segmentation, these people can be divided as potential donors; people who can leave their bequest for RNLI; potential and energetic volunteers; and the potential buyers of the multiple sea lifeguard products. The volunteers and donors groups will include common people as well celebrities who can voluntarily support the promotion of RNLI’s activities. Along with this segmented target market, RNLI’s one of the prime focus will be on tie ups or collaboration with corporate who are ready to be trustees or partner of RNLI. The corporate supports are very essential monetary support and recently, corporate houses are trying to increase their activities related to corporate social responsibilities. Therefore the target market for the RNLI is quite vast and people and institution of all classes can make vital contributions to support RNLI’s noble cause and its volunteer crews. RNLI will try to position itself before the target market. 8. Positioning and Branding Strategy In order to develop positioning and brand strategy for a non-profit organisation it is necessary to concentrate on three major aspects. While framing the marketing strategies for RNLI, these factors i.e. differentiation, focus and trend must be considered for effective results. Brand development is nothing but presenting in a differentiated ways from others. However, in case of non-profit organisation, the competition does not hold too important place. Therefore, prime reason for developing brand is to attract target market to encourage the noble cause. A focused brand positioning will be necessary for RNLI in helping it in fundraising activities and in attracting volunteers. RNLI is quite uncommon but an indispensible cause for social benefits. Unlike other NGOs’ causes, where major focus is on the unprivileged and disabled people, RNLI’s works for every people by saving people and their family members’ lives. This message must be delivered to target market (Matei and Dinu, 2010, p.510). 9. Bequest and Fundraising Marketing Strategy Recently, most of the non-profit organisations have realized the importance of bequest of legacy as valuable source for monetary help. Therefore, developing plan for arranging a greater number of bequests is more rigorous strategy, and hence it is necessary to very sensible and creative strategic approach in this regard (Burnett, 2002, p.262). For bequest and fundraising marketing strategy RNLI must attempt for creativity that will strike the mind of bequestors and donors. In case of targeting bequestors, it is necessary to understand that who can be able to donate their legacy to a NGO and hence a detailed database of such potential bequestors should be maintained. Generally, the aged people without any heir should be approached. They must be communicated properly to make them understand that legacy can play a very vital role in saving lives of people. They must be approached in a creative way through a general awareness programs. Moreover, the language and media used for convincing them should be very creative and polite. In this process, RNLI needs professional and skilled staffs that can approach to the potential bequestors in a diplomatic way. For the fundraising, the target market is broad and people with stable financial condition can be approached. In this process, multiple institutions and corporate bodies can be crucial and therefore, external relations are indispensible. RNLI must be able to develop a strong relationship with the target corporate bodies and other institutions. For fundraising activities, RNLI must develop an active marketing plan instead for passive plan. Therefore, the management of RNLI should aim to develop and execute specific strategies for donor development. The donor development strategy must should be followed through five step process i.e. identification of potential donors; developing relationship with them; proper approach; thanksgiving processes; and follow up them. These five step process will be very helpful in creating value for donors as well as for organisation. Besides, for increasing the effectiveness of fundraising strategy, RNLI should seek support from celebrities, and can also organise many events where they can be approached for fundraising purposes. 10. Promotional Mix In the two section have described an overall planning for positioning, branding and for fund and bequest raising purposes. For successful branding, positioning, and successful fundraising purposes, effective promotional plans are the most important activities. Promotional mix includes a number of components like direct market, advertising, personal selling, public relation, and sales promotions. The promotional mix has developed focusing on the profit making organisation. Apart from fundraising, RNLI is also engaged in merchandising of sea-life guard products and therefore, this promotional mix can be very effective to generate monetary support for its operations. Promotional mix includes all necessary areas that play an instrumental role in convincing the target market for bequest or fund raising and for attracting volunteers. Promotional practises of RNLI must aim to establish brand name of RNLI by delivering the message for noble cause. Advertising is the most effective stimulator for the target marker and based on different types of target market for different purposes like fundraising, volunteering and merchandising the medium of advertisement should be chosen. For fundraising from general public, the direct marketing through telephone, mail, online etc can be used. Sales promotions can be used for merchandising its lifeguard products by attracting attentions and by offering discount to target market. Personal selling can be used to merchandise the lifeguards and can also be sued to raise fund. In this regard, personal relation is the very essential and it more effective than direct marketing and sales promotions. Finally, public relation is the most important and integral part of promotional mix for RNLI for convincing bequestors for leaving their legacy for RNLI’s noble cause. It is mainly relationship oriented that is highly required for generating support from legacy (Kotler, 1982). 11. Conclusion This paper has attempted to present marketing plan for Royal National Lifeboat Association (RNLI) for generating monetary help for supporting its noble cause of saving people lives. Before presenting the necessary market plan, this paper has given an external analysis and internal analysis of RNLI. RNLI is a respectable organisation for its noble cause and management has shown a commendable job to meet its mission and vision. Other factors like political, social, technology and economic are favourable for RNLI. Its monetary supports mainly depend on legacy which does not have stability. Therefore, for securing the future of RNLI, it is necessary to focus on its other ways for supporting i.e. fundraising and merchandising along with legacy. The marketing plan for RNLI has focus on these three types of money generating sources and for attracting more number of volunteers. 12. Recommendation Based on the internal and external analyses and marketing plans for RNLI set of plausible recommendation are given below. RNLI should define different target market for different purposes like fundraising, volunteering, legacy, merchandising etc. For generating money from legacy, RNLI should develop personal marketing and must be creative in approaching and for convincing the target audience. RNLI should also focus on its merchandising life-guard as fundraising and legacy are not stable source of money. RNLI must attempt to develop brand positioning by creating stimulating mascot, logos, slogan, messages etc. In order to successful branding and positioning, promotional activities have to be flawless and executed very carefully. RNLI must maintain a detailed database for the identified target audience. It try to increase its tie ups with corporate bodies, and other institutions like schools, colleges etc. RNLI should try to raise fund and to create awareness for attracting volunteers by organising events and shows etc. RNLI must recruit skilled and diplomatic personnel for developing personal relationship with donors and bequestors, and it should also try to seek help from celebrities to promote its cause. Reference Burnett, K. (2002). Relationship fundraising: a donor-based approach to the business of raising money. 2nd ed. John Wiley and Sons. Carl, D. McDnial & Gates, R. J. (1998). Marketing Research Essentials. USA: Taylor and Francis. H M Revenues and Customs-a. (No date). A guide to understanding tax when someone dies. [Online]. Available at: http://www.hmrc.gov.uk/trusts/tax-when-someone-dies.htm#26. [Accessed on: July 22, 2011]. H M Revenues and Customs-b. (No date). Gifts to charity made by companies. [Online]. 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