Marketing Management (Marketing Plan for Non-Profit Organization)
SecondBite is a non-profit non-governmental organization that identifies sources of surplus food and produce, which may otherwise have gone to waste, and facilitates its timely and safe distribution to people agencies in need. The organization helps increase access to good quality food among underprivileged and homeless Australian families and individuals in order to alleviate the negative impacts of social exclusion.
SecondBite specializes in the distribution of fresh food and produces that needs special handling and which has a limited shelf life. The food that is collected is delivered to about 150 community organizations and relief food agencies of various levels of complexity. The organizations supplied are those that have no capacity, resources and/or skills to handle these foods and produce themselves.
In 2009, the organization uses generously donated large cool rooms, refrigerated vans, and warehouse premises and 326 volunteers in order to prevent about 700 tonnes of fresh food from being thrown away in Tasmania and Victoria. Instead, the food was redistributed to thousands of homeless people, some of them living under disadvantaged circumstances.
In February 2009, Victoria suffered tragic bushfires. SecondBite’s mobilization efforts led to the donation of fresh foods being made. The donations, which would definitely have gone to waste, were distributed to various relief centers. This is the only organization that operates in Tasmania and Victoria, with the focus being put on the collection of fresh food and delivery to homeless people.
The organization’s simplicity of model enables it to be flexible in order to maintain a high quality of perishable foods. The food that is salvaged is distributed in an impartial manner, to both large and small organizations, in order to ensure the sustainability of its programs, in the best interest of malnourished groups and individuals.
SecondBite’s future lies in the success of its food management projects, all of which are aimed at bridging the gap between need and surplus. All projects undertaken by SecondBite are regularly evaluated in order to ensure they are in line with the organization’s missions and goals. The aim of the organization’s activities is to ensure that there is food security for everyone. The organization hopes to be able to fulfill this mission through the constant supply of volunteer labor from all over Australia. The main restriction is the availability of funds.
SecondBite possess all the facts and information that is needed in order to be able to serve food-insecure agencies and organizations better. Through this understanding, SecondBite is able to manage the tasks of food collection and delivery in an economical way. Depending on the prevailing circumstance, the food is heavily subsidized or donated.
The main target market for SecondBite includes agencies, retail outlets, and disadvantaged, food-insecure individuals in Tasmania and Melbourne. In several areas in Melbourne, the target is always to put in place logistics, programs, and practices that reduce energy consumption and food miles. Local volunteers are dependent on in the task of collecting fresh food supplies from donors, through the “Community Connect initiative”.
Table 1: Target market forecasts
|Target market forecast|
|Issues of concern||Number of people expected to be reached for assistance|
|Empowerment through food-sector employment||600,000||500,000||500,000||700,000|
Note: SecondBite hopes to roll out programs all over Australia (Jain 2008, p. 162)
According to Zeitham (1985, p. 64), McDonald (2008, p. 143), Luther (2001, p. 199) a typical customer is defined on the basis of demographic, geographic and behavioral factors as follows:
The geographical target area for Secondbite is Tasmania and Melbourne area. The organization works in close partnerships with numerous community groups and thirteen local governments in order to provide the needy people of Tasmania and Melbourne with food.
People of all age brackets, both male and female are welcome to use the surplus food that is salvaged from various sources, as long as they are in need of the food.
The consumers of the food products made available by SecondBite are driven by a genuine need to improve their quality of life by getting food in order to eliminate hunger and malnutrition. The efforts of volunteers make it possible for consumers to get food for free. SecondBite assesses not only the problems as they appear at the surface level but also their underlying causes. In some areas, such as Prahran Market, SecondBite organizes a regular ‘Family day’ in order to give young people an opportunity to have fun and food.
SecondBite provides food to those who need it. The organization responds to the community’s quest for high-quality food. Daily activities are shaped by the need to reduce the distance between those with surplus food and those with inadequate food.
The dietary needs among the Australian working class are changing and the organization has positioned itself to remain a relevant non-profit non-governmental organization that meets all their dietary and nutritional needs. Concerns are increasingly being raised about the environmental emission of hazardous chemical elements into the atmosphere. SecondBite’s services are aimed at responding to market trends in terms of sustainability through concern for the environment.
The need for more and more food to feed marginalized communities continues to grow. Vulnerable communities seem to continue being isolated. For this reason, SecondBite faces a huge task of spreading its tentacles across Australia.
According to Jackson (2003, p. 821), Jain (2008, p. 118) a SWOT analysis highlights the main strengths, weaknesses, opportunities, and threats that a company, institution or individual faces. SecondBite’s SWOT situation is as follows:
SecondBite has over 300 dedicated volunteers, nine paid staff, a refrigerated truck, and three refrigerated trucks.
The organization suffers from the problem of finances and a permanent workforce that is able to feed thousands of needy individuals within the target areas. Sources of funds are expected to remain limited for 2010 as they were throughout 2009.
SecondBite gets many opportunities to form medium-term and long-term partnerships with other reputable non-profit non-governmental organizations, for instance, the three-year joint venture with SVA (Social Ventures Australia) that commenced in 2009.
The global financial crisis together with the devastating bushfire, both of which took place in 2009, both threatened to overwhelm SecondBite in terms of resources and operating capacity.
The greatest source of competition for SecondBite is the widening gap between those with surplus food and those without enough to eat.
The services offered by SecondBite include regular delivery of food relief to 106 agencies that help thousands of people who need the food. The organization also lobbies for setting up of laws that facilitate the bridging of the gap between those with surplus and those with nothing to eat. One hundred and six agencies are also frequently provided with surplus food in order to avoid wastage and to help needy people.
The key to SecondBite’s success is the ability to deliver high quality, fresh food and produce to agencies, while at the same time attracting funding from outside through reputable management principles.
A soundbite is in urgent need of a training and volunteer program that is well-structured in order to enable it to deal with emerging workforce challenges and to address the food insecurity agenda more successfully.
The key to SecondBite’s marketing strategy is ensuring that continuity is never disrupted at any time in order for individuals and corporate players to continue the food delivery initiatives introduced by the organization. The workforce needs to be mentored through instituting strong organizational objectives.
SecondBite’s mission is to make a positive difference to all people by facilitating safe and timely distribution of nutritious surplus food, which might otherwise have gone to waste, to various agencies and people who need it.
The objectives include: (a) to acquire and deliver surplus food and produce and to take it to agencies and individuals who need it on a regular basis, (b) to ensure that the best nutritional habits are inculcated in all people in society to maintain, health, conserve the environment and avoid wastage.
The core financial objective of SecondBite is ensuring that the expenses do not outweigh outcomes in order for the organization to be able to secure enough money for future strategic plans relating to the food distribution of food and produce.
SecondBite has already created a niche, which in this case is the provision of surplus food that has been generously donated by people who have so much of it that they are contemplating to throw away some of it. The core aims the organization’s marketing messages include discouraging Australians from throwing away food, encouraging them to give hope, home, and resources to the hopeless, homeless asylum-seekers as well as Australians, and to inculcate the spirit of sharing among Australians.
SecondBite is positioning itself for future integration into the world of humanitarian work in an integrated manner through partnerships with other non-governmental organizations that operate on a non-profit basis.
The SecondBite Future trust was established in order to secure a sustainable future for agencies and individuals that the organization serves. The Trust was designed in order to ensure that all the stakeholders get meaningful services and other organizational benefits that come with humanitarian work. The Trust was established to ensure that even when the going is very tough, everyone is able to access fresh, nutritious food.
SecondBite built a corpus for providing funds so that future plans can be anticipated perpetually and implemented when the scheduled activity time comes. The organization put in place a marketing campaign in order to give generous philanthropists an opportunity to give their donations.
The principles adopted by SecondBite with regard to distribution, pricing and advertising are aimed at meeting the set goal of distributing food from regions of surplus to regions of the deficit. Food and produce are distributed freely. However, for purposes of sustenance, the foods may be provided at heavily subsidized prices.
Thousands of tones of perishable food that are delivered to agencies are always researching on in order to maintain the highest possible quality standards. SecondBite also researches on various nutrition-related facts in order to shape its policies and objectives from an informed point of view. The organization also studies various market segments in order to determine which areas have the highest levels of surplus that can be delivered to people who need it in the most cost-effective manner. The need for more volunteers and permanent is also determined through market research.
The financials of SecondBite relate closely to the organizations marketing strategies. The financial results for the financial year 2008/2009 show that the organization made a funding income of $430,351. The total expenses for the same year amounted to $15, 985.
The break-even analysis shows that the organization has to reach a monthly funding level of $20,776 in order to reach the break-even point.
SecondBite marketing managers are of the opinion that greater levels of funding will be expected throughout 2010 and that the amounts of funds generated will increase by a margin of 10% compared to the funding levels during 2008/2009. The main areas where funding is expected to increase by the biggest margin include general donations, food program staff funding, fundraising expense funding, professional fees funding and food program transport funding.
Table 2: forecasts on delivery (sales)
|Food program staff funding Food-related staff funding Total funding||$122,151 $51,038 $173,189||$134,135 $54,901 $189,036||$136,847 $56,237 $193,084|
|Direct cost of Delivery||2010||2011||2012|
|Food program staff costs Food-related staff costs Sub-total cost of delivery||$45,112 $9,132 $54,244||$60,171 $11,811 $71,982||$62,144 $12,013 $74,157|
(Jennifer 2009, p. 181)
Table 3: Break-even analysis
Printed with permission from SecondBite® (www,seondbite.org)
|Monthly units break-even||60|
|Monthly sales break-even||$75,000|
|Average per-unit Revenue||$120.00|
|Average per-unit Variable Cost||$20.51|
|Estimated Monthly fixed cost||$6,150|
(Jennifer 2009, p. 181)
Apart from the SecondBite Future Trust, no other major project has been initiated, meaning that expenses such as food program staff costs and food-related staff costs should go down significantly. This reduction is expected to lead to an increase in net surplus that will be instrumental in setting up new programs for the financial year 2010/2011.
Table 4: expense forecast
|milestones||Start date||End date||Budget||manager||Department|
|Community Connect Advertising Website maintenance Totals||9/9/2010 5/6/2010 20/5/2010||9/9/2012 5/12/2012 1/6/2012||$, 120,000 $89,000 $23,500 $232,500||Marketing Marketing Marketing||Publicity Publicity Logistics|
(Jennifer 2009, p. 181)
Monthly expense budget
|Marketing expense budget 2010 2011 2012|
|Website $2,000 $2,500 $2,500 Community Connect $10,500 $12,000 $12,500 Advertising $5,250 $6,050 $6,500 Totals $17,750 $20,550 $21,500|
(Jennifer 2009, p. 181)
SecondBite’s performance is gauged through the success of the marketing plans that are in place (Jennifer 2009, p. 181). The various areas that are monitored include expenses; revenues; satisfaction of needy; underprivileged and disadvantaged people; and product development.
The main activities that SecondBite is engaged in right now involve regular delivery of food to 106 agencies at an annual cost of $19,912. Additional projects will depend on the continuity of funding. They include staff costs, setting up of warehouses, and fundraising expenses.
The staff members who are always in charge of the day-to-day running of SecondBite’s marketing activities include Katy Barfield (Executive Director), David Hisco (Managing Director), Bob Glindemann (Company Director) and Alister Paterson (Chief of Staff).
The main difficulties arise due to the perishable nature of products and lack of adequate food-handling facilities, meaning that the organization’s capacity for food delivery may be curtailed if the widening in scope is not accompanied by a corresponding increase in refrigerated vans, trucks, and warehouses. The organization is a not-for-profit institution, meaning that its continued survival is dependent on the generous contributions of the people who work that the organization does.
Research costs remain high, yet SecondBite cannot do without them. Smith (1990, p. 271) states that in every foodservice firm, there are many contingency costs that keep arising because of the unpredictability of the situations within which food and produce are handled. For SecondBite, planning is about guaranteeing generous associates, contributors, and volunteers that the organization will survive all threats and risks within which it operates. The existing risks are countered through maintenance of regular tasks, especially those involving the delivery of products in order to ensure that at no time will the organization’s operations will grind to a halt. In other words, there is a highly effective Business Continuity planning in place at SecondBite.
Grönroos (1995, p. 253) observes that worst-case risks present themselves in situations whereby a business cannot support itself, such that it starts to operate as if it is not a going-concern. In the case of SecondBite, a worst-case risk has not been predicted or identified. Additionally, the organization has never been in a position whereby it had to liquidate intellectual capital or equipment in order to recover liabilities.
SecondBite was founded on a noble idea of offering services that are meant to bring about equality in society, through the sharing of food resources in a sustainable, compassionate manner. As long as the mission is maintained and selfishly guarded against being eroded by selfish interests, generous givers of food and other food resources, as well as money, will always come along to lend a helping in the process of establishing a society where everyone has enough food to eat (Kotler2008, p. 225).
Nevertheless, SecondBite cannot achieve its mission in isolation. There is a need for agencies to be incorporated into efforts relating to research, delivery, preservation, and distribution of food. Additionally, the research undertaken by the organization can be of more help if it is integrated into marketing practices of other market players in the food industry for it to be of good use in alleviating diet-related suffering among underprivileged Australians.
Grönroos, C, 1995, ‘Relationship marketing: The strategy continuum’Journal of the Academy of Marketing Science, Vol. 23, No. 4, pp. 252-254.
Jackson, S, 2003, ‘Recent Research on Team and Organizational Diversity: SWOT Analysis and Implications’, Journal of Management, Vol. 29, No. 6, pp.801-830.
Jain, S, 2008, Marketing Planning and Strategy, Souther-Western College Publishing, London.
Jennifer, Z, 2009, Break-Even Analysis, American Nurseryman, New York.
Kotler, P, 2008, Armstrong, G, Principles of Marketing, Routledge, London.
Luther, W, 2001, The marketing plan: how to prepare and implement it, MacMillan, New York.
McDonald, M, 2008, Marketing plans: how to prepare them, how to use them, Oxford University Press, Oxford.
Smith, D, 1990, ‘Beyond contingency planning: towards a model of crisis management’ Organization & Environment, Vol. 4, No. 4, pp. 263-275.
Zeitham, V, 1985, ‘The New Demographics and Market Fragmentation,’The Journal of Marketing, Vol. 49, No. 3, pp. 64-75.
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