Transcript Mauritius

Calouste Gulbenkian Foundation
Analysis and Decision
Case Study
June 2010
David Kilburn
C A M B R I D G E M A R K E T I N G C O L L E G ES
© CMC 2005
Scenario
•
You are a Marketing Consultant working for the Calouste
Gulbenkian Foundation, based at the UK branch.
– As part of an international team you have been asked to
contribute to the development plans of the UK branch, in the
context of the Foundation’s philanthropic aims.
– In particular, you have been asked to consider the work and
performance of the UK branch, and its relationship with, and
dependency on, the Calouste Gulbenkian Foundation in
Portugal.
– Working with the Calouste Gulbenkian Foundation, the UK
branch is keen to explore new approaches to supporting
projects, partnership working and managing the global
challenges that impact on its work
– You have also been given a particular remit to consider how the
UK Branch, in liaison with the Foundation, can respond to the
opportunities arising from the proposed European year of Active
Ageing and Intergenerational Solidarity in 2012.
– The results of all this work will be shared as part of the
Foundation’s contribution to the Year of Active Ageing and
Intergenerational Solidarity.
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Where are we now ?
Audit of current situation
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CGF - background
• Established in 1956 in Portugal
• Private institution whose aims are artistic, cultural,
educational, and social
• Has offices in Paris and London
• Founder Calouste Gulbenkian son of wealthy Armenian oil
magnate. Calouste studied in London and became a UK
citizen
• Foundation set up in 1955 from a bequest in his will .
• Wealthy man – 800 million US dollars on his death, earned
his fortune brokering oil deals in Middle East, Mr.Five percent
• He created Partex Oil gas corporation to manage his
interests in oil. Ownership passed to the Foundation, from
which it enjoys a healthy income.
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Philanthropic ideals of CGF
• Provision of artistic and cultural activities
(2 museums, orchestra)
• Addresses issues relating to poverty and social
exclusion by awarding grants to fund key projects
throughout the world
• Major player in promoting social, cultural and
educational change
• Has established a worldwide reputation over 54 years
and is able to influence thinking and practice on a
global scale.
• It is independent and unaffiliated with complete
freedom over its activities.
• In pursuing its philanthropic aims it is answerable to its
trustees rather than investors or shareholders and has
enduring loyalty from its staff
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Philanthropy
• Definition – giving money, assets, encouragement and
expertise to create social or environmental impact.
(Source: Coutts Bank)
• Charity generally refers to something that is purely
altruistic, compassionate and person-to-person, such
as providing disaster relief or emergency aid
• Philanthropy is more strategic and engaging, involving
an attempt to address the root causes of a problem
• ACF –Association of Charitable Foundations has
recognised that individuals are embracing philanthropy
in ever greater numbers, becoming more engaged in
their desire to give something back to society.
• Individuals around the globe are seeking to develop
innovative approaches to address complex social
problems
• South Africa, the fall in international aid as a result of
the end of apartheid has resulted in non profit
organisations seeking help from individual and
corporate donors.
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Philanthropy
• Donors have become more strategic in their giving –
new trend – a shift from ‘charity’ to ‘philanthropy’ –
commonly understood as the differences between
tackling causes rather than symptoms
• Philanthropists often establish charitable trusts or
foundations in order to ‘give back to society’
• A charitable trust or foundation is a legal organisation
that can be set up by anyone who has decided to set
aside some of their assets or income for charitable
causes
• CGF offers some of its services directly to the
beneficiary (especially in the fields of arts, culture and
scientific research) in addition to grant-making.
• Foundations and trusts can have an impact on
environmental crises, multiple aspects of climate
change, human rights, migrations and intercultural
dialogue, poverty, global health issues, promotion and
support of scientific research, translation of new
knowledge and social entrepreneurship and innovation
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Venture philanthropy
• VP is a particular kind of approach to charitable giving
that utilises venture capital investment principles, such
as long term investment, and capacity building support
for the benefit of the voluntary and community sector. It
is sometimes referred to as ‘engaged’ philanthropy.
• Modern forms of philanthropy became established in
the USA in mid 1990s and gradually emerged in
Europe in past 5 years.
• Europeans are typically more inclined to invest in
social enterprises, social businesses and individuals
• European venture philanthropists are also more likely
to seek to work in partnership with other funders or
governments to advance their mission
• Key characteristics of European venture philanthropy
are high engagement, tailored financing, multi-year
support, non-financial support, organisational capacity
building and performance measurement.
• CGF uses some of these approaches to raise funds
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PESTLE
Political
• Governments and charities need to find a
way to increase support for the needy and
disadvantaged members of society
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Economic
• Credit crunch in the U.K. has dampened
consumer spending – has hit all industries
• Global credit crunch has impacted
consumer spending all over the world
• Disposable income has been badly hit
• Consumer confidence has hit rock bottom
• Difficult times ahead
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Sociological
• Cause related marketing increasingly popular
• Demographic changes. Older people living longer,
younger people marrying later delaying birth of
children, divorce rates high so more single
households, increase in antisocial behaviour,
binge drinking, drug abuse – puts more pressure
on police, medical services, prisons overcrowded
• Greater interest in environmental issues,
protecting the environment, ethical sourcing and
trading, reputation of companies and
organisations
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Social welfare
• Opportunity to increase awareness of the
contribution of older people to mobilise the full
potential of the ageing baby boom cohorts.
• Accelerated ageing of Europe’s societies could
lead to older generations becoming a burden on
younger working –age people and could result in
tensions between the generations. This view
neglects the significant contribution that older
people, especially baby boomers can make to
society
• Opportunities include staying in the workforce
longer –beyond 65, and older people undertaking
roles as volunteers after retirement ( examples )
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Technological
• Technology is ever changing
• Opportunities are endless
• Sophisticated database marketing
techniques now possible
• Rise and rise of internet sales
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Legal/Environment
Legal
Legal action can be taken against companies
who are unethical, flaunt I.P, non
compliance offences punished
Environment
• C.S.R.- drug companies have to be more
transparent, ethical sourcing and testing
• Growing need for companies to target
environmentally aware and cause related
target segments
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Consider CGF positioning
• Use either BCG or PLC
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Brand issues
• BRAND DOMAIN
(brand’s target market)
• BRAND HERITAGE (how it has achieved success)
• BRAND VALUES
(core values and characteristics)
• BRAND ASSETS
(what makes brand distinctive)
• BRAND PERSONALITY (character of brand)
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Brand Equity
• Bonding –----How does it retain itself with me
• Advantage – --Does it offer something different
• Performance- -Can it deliver
• Relevance – Does it offer something I want
• Presence- Do people know it
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Where do we Want to be?
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Objectives
• Decide
• Objectives
– For U.K. and International
• Deliver
• Outcomes
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Segmentation
• Described and Profiled for each sector
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Segmentation
B2B
B2C
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Targeting
Target and penetrate existing markets B2B
and B2C and also new market
segments nationally and in selected markets
internationally
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Positioning
• Clear and defensible
– Set out USP and Positioning for each sector.
– Are there any commonalities or Single Brand
options
• Vision
• Values
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USP and Positioning
USP – socially responsible, Venture
Philanthropist company, funds cancer research and
research in to infectious diseases such as
Tuberculosis, strong ethical and environmental
stance, engages in collaborative partnerships
Positioning – an organisation that is
fully committed to supporting vulnerable
groups such as children, young persons,
the elderly, the disabled, immigrants
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Segmentation
Segment – B2B
B2C
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Targeting, USP, Positioning
Target and support existing and new vulnerable people
in the U.K., Ireland and also International markets,
Portugal, France, etc.
USP – leading the charity industry in supporting
cultural understanding, fulfilling people’s potential,
protecting the environment, and maximising social
return through innovation
Positioning – number one organisation in the UK and
Europe for supporting the disadvantaged
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How do we get there?
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Action
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Decide
Objective
Deliver
Outcomes
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Strategic Development
• Product
– Sector Selection
– Core/ Physical/Augmented Proposition
– Branding
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Pricing
Distribution
Promotion
People
Process
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Implementation and Control
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Budgeting Areas
Metrics
Balanced Scorecard
McKinsey 7S
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Comms Strategy for CGF
• Audiences –Internal and External, domestic and international,
members of the public, Governments, high net worth individuals,
and Corporates
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Media
Messages
Timing/Budget
Stakeholders
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Art Galleries
Museums
Orchestras
Choirs
Education
Libraries
Medical and scientific researchers
Armenian Communities Department
Shelter
Samaritans
Natural History Museum
MEAM – making every adult matter coalition
Regulatory Bodies e.g. Charity Commission
Who else ?
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Internationalisation
• Where, when and how
– GE/ Harrel and Keiffer
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Implementation and Control
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Budgeting Areas
Metrics
BS
McKinsey 7S
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Critical success factors
• Create a sustainable brand image and position
amongst competitors
• Change management (PLC,BCG)
• Internal marketing (stakeholder management,
CRM)
• Funding (Borrowing/J.V/Debt/ Licensing/I.P)
• Constraints - Overstretching
- Competitive landscape
- Changes within the Charity
Industry
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Vision
For CGF to become an even more successful
profitable organisation who have a strong
and loyal customer base of supporters,
enabling them to invest in a robust,
innovative international marketing plan
which will keep them top of supporters’
minds and in one of the leading positions in
the Charity industry for the foreseeable
future.
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Mission statement
To become a leading player in the
international charity sector, who can
sustain and increase its popularity
amongst supporters who recognise the
immense value of the innovative work the
charity does to alleviate the suffering and
pain that plagues drug/alcohol abusers,
the elderly, the homeless, the mentally ill,
vulnerable people and anyone who is
excluded from society
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Values
• Committed to increasing the impact of its
funding by influencing policy makers and
opinion formers
• Committed to working closely with key
stakeholders in education, government
and health
• Committed to continual dialogue and
effective communication and to gain
greater insight into why and where they
are most effective
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Corporate objectives
• To ensure that CGF has the correct
strategic marketing advice and backing to
become a leading player in the
international Charity sector
• To become even more successful
internationally leveraging the benefits of
transnational partnerships to overcome
the threat of climate change, the effects
of migration and cultural differences
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Strategic management of marketing mix
• Product
Research and development in to finding a
solution for the inequitable distribution of
the world’s resources, demographics and
the pace of change
• Price
Committed to ensuring that care for the
young ,old and disadvantaged is affordable
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Strategic management of marketing mix
• Place
International presence preferred- possibility of
gaining larger foothold in the global Charity
market by merging with a complementary
internationally based cause related charity
• Promotion
Web site – continually update the content.
Continue to use CRM on intranet, integrated with
Box Office, and social networking sites such as
YouTube and Facebook to communicate its core
message.
Positive P.R. (caring, supportive, ethical)
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Strategic management of marketing mix
• People
Train and develop the existing staff and also
international staff. Uses seminar programme to
explore the challenges associated with an ageing
population in the U.K. and Portugal, laying the
groundwork for a joint programme of activity.
• Processes
Regular internal/external communication. Long
term relationship building. B2B and B2C customer
involvement with key accounts. Relationship
marketing. Customer Lifetime Value. Branding
strategy.
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Strategic management of marketing mix
Physical evidence
Interactive, informative web site
Number of awards won for innovative and philanthropic
approach – Award of Merit from Japan, Honorary Member from
Portuguese Architects’ Association
Seek endorsements from key influencers such as
Nelson Mandela, Royalty and senior figures in
Government
The CGF logo and brand
Metrics table – comparison with other Charities
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Implementation and Control
McKinsey 7S
Structure
Based in UK, with offices in Portugal, France, Ireland
Strategy
Based around 4 strategic aimsCultural understanding – interactive projects, arts
initiatives, initiatives to promote literature, issues of
migration and cultural understanding
Fulfilling potential-Human Scale Education charity, making
Every Adult Matter coalition, intergenerational projects in
the U.K. Ireland and Portugal, supporting initiatives that
address isolation and loneliness in old age
Environment- habitat conservation, national heritage
Innovation- open fund to support new ideas, supporting the
voluntary sector and possible support for older social entrepreneurs in
partnership with UnLtd, a charity supporting social entrepreneurs
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Implementation and Control
Systems
Develop MKIS and control systems to regularly review and monitor
effectiveness of all marketing strategies
Develop benchmarking system to monitor against key market
indicators and main competitors
Staff
Continual development of all staff. Advanced product and sales
training, inbound and outbound, online and offline, CRM
development. Key relationship building with Charities Commission,
Educational and Arts fraternity, businesses, actual and potential
supporters, high net worth individuals, advocates and key influencers
in British and international markets
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Implementation and Control
Skills
Ensure correct training and development
programmes are established to keep CGF at the
leading edge of marketing technology, systems
and processes
Shared values
Ensure that strategy is shared by everyone in the
organisation. Growth strategy and national and
international expansion shared with all staff,
influencers and key stakeholders.
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Implementation and Control
Style
Supportive, innovative, creative, agile and
nimble. Quick to spot opportunities ahead
of the competition.
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Control – Balanced Scorecard
Internal
Develop CRM databases for collecting
customer feedback and insights into future
needs, wants, industry trends,
(market intelligence)
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Control – Balanced Scorecard
Innovation and learning
Development of advanced B2B/B2C
communication, to ‘champion’ the
campaign and procure more high net
worth supporters. Advances in
transnational development to ensure that
educational reform can make a difference
in preparing young people for the
challenges of a globalised world
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Control – Balanced Scorecard
Financial
Actual income, partnership funding received vs.
targets in each sector
– UK, Portugal and developed markets once on
stream (potentially USA, Europe and Scandinavia)
Profitability metrics, CLV
Customer
Customer satisfaction surveys – customer feedback.
Customer endorsements - web based
Brand recall/awareness of brand
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Possible questions
1 Devise an innovative international marketing
plan which will enable CGF to support the
objectives of the 2012 European Year of
Active Ageing and Intergenerational
Solidarity
2 Define the business CGF should be in and
structure the offer accordingly so as to
mitigate potential risks
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Possible questions
3. What branding and positioning strategy
should CGF adopt to improve its appeal
to supporters and funders?
4.Devise a marketing plan to make CGF a
leading player in the Charity sector.
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Possible questions
5. Prepare a relationship marketing campaign
which will effectively increase CGF’s
supporters’ loyalty and their lifetime value
6. Prepare a communications plan which will
enhance CGF’s sphere of influence
across all its target markets
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Possible additional information
The UK branch has decided to strengthen its impact
on society by concentrating its efforts on active ageing
and intergenerational solidarity in the lead up to 2012
This is its top priority and you are therefore asked to
produce innovative answers to questions posed in the
Examination that are quantitative as well as
qualitative in nature.
Please ensure that all strategies presented are fully
costed with expected ROI as a given. You should also
comment on the risk factors of your selected strategy
and how you would mitigate them.
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