Lecturer: Brenton Price| Group One: Adam Bui – Ava Chan – Mohammad Azhar- Michael Cao – Shaneez Azzam – Case Study:| Youngcare and the donation landscape| Executive Summary: Youngcare is a not for profit charitable organisation founded by David Conry on the 21st of April 2005, due to his wife Shevaune’s placement into an aged care facility at the age of 33.
The organisation’s mission is ‘To provide choice in care and housing for young Australians with high care needs’. Youngcare’s core activities involve around revenue generation to fund its Youngcare homes, and at home grants for families looking after individuals with high care needs. Since its establishment Youngcare has consistently recorded strong financial performance, securing $4,950,328 in revenue and a surplus of $908,317 in financial year 2012, and as at 30 June 2012 the entity had $8,573,031 in net assets of which $7,347,635 were cash assets.
The entities financial performance is driven by a clear mission, and a strong marketing strategy consisting of: * Intensive target market segmentation * Use of social networks * Youngcare YouTube Channel * Celebrity endorsements * Charitable Events * Donation drives * Corporate sponsorships * Mass media articles and advertising * Public awareness message (The image is a Youngcare ‘public awareness activity’ conducted for a week in November 2011 in Martin Place, Sydney, consisting of three volunteers epicting the life of a young individual in an Aged Care Home, raising awareness for Youngcare’s cause. ) Introduction to Youngcare Case Study: The not for profit organization ‘Youngcare’ aims to raise funds to provide facilities, financial support, and guidance to Young adults with high care needs, as well as their family, and friends.. Youngcare’s Challenge: * The Demand for Youngcare homes exceeds the Supply as there are approximately 7,500 individuals living in Aged Care homes, where as Youngcare apartments (Currently only in Brisbane, and the Gold coast,) can accommodate 80.
As a result Youngcare needs to expand their facilities, however requiring financial aid and manpower to achieve this. * 18 – 65year olds having serious accidents or illness’s which leave them in need of permanent care and having to reside in aged care homes where the average age is 85 as there are no alternatives. The needs of youth’s greatly differ from those of elder residents in aged care facilities, and research has shown that there is an increase of depression amongst young individuals that are forced to live in aged care.
Youngcare aims to provide emotional support to these individuals, and to secure housing for these individuals so that these individuals needs can be appropriately met. * Issues being faced by young people that require full time needs are broad and can be very complex , despite families and friends doing all they can to provide all they can to fulfil the needs of the individuals in some cases it is not achievable. * The family of a young person with 24/7 care needs also endures daily struggles.
The divorce rate for relationships involved with the care of a young person with full time needs is 70 %, imperative to the average rate of Divorce in Australia which is 33%. To improve the lives of these individuals, Youngcare issues at home grants providing financial assistance to families looking after an individual with high care needs, however there are approximately 700,000 Australian individuals living at home with high care needs, and in financial year 2011/12 approximately $400,000 was distributed in ‘At Home Care Grants’.
Youngcare aims to increase the size of the grant as if they were to support every individual with high care needs, the fund would provide 57 cents per person per year in financial support. Relevant issues for Youngcare and young individuals with high care needs: Depression- Depression is a significant issue for individuals with high care needs, and their carer’s. Research has shown that the depression levels of young individuals residing in aged care is twice of those living at home, or in Youngcare housing.
For individuals living at home 56 percent of their carer’s are defined as moderately depressed, and 40 percent are defined as severely or extremely depressed. Divorce- Families with the responsibility of meeting a young individuals high care needs have a divorce rate of 70%, this displaying the magnitude of stress placed upon the families which are to take care of these individuals. Donations- Although Youngcare is financial strong, recording a net surplus in financial year 12, revenue growth has decreased slightly.
This is a significant issue for Youngcare as within its strategic plan it aims to open upon many facilities around the country and will require funding to achieve this; if revenue does not improve Youngcare will have going-concern issues. Competition- Youngcare faces strict competition from the highly competitive not for profit sector, as well as the industry as individuals make a decision to satisfy their own wants or to donate the funds to charities, if so which charity. Youngcare needs to raise awareness for its work, and efforts, as it has not gained enough recognition as charities such as; The Glenn McGrath Foundation.
Youngcare and Marketing: To pursue its mission and support its daily operation, young care requires sufficient and stable funding, as of this environmental scanning advises Youngcare that it has to compete with other not-for-profit organizations; to study the donors behaviours and donation patterns. First of all, a situational analysis is required. It is a process that involves breaking the marketing environment into smaller parts in order to gain a better understanding of the businesses internal and external position.
Then, put them into the SWOT analysis which facilitates it to learn more about the strengths, weaknesses, opportunities, and threats. Youngcare also needs to foresee the current and future needs of its clients and their carers. Therefore, it needs to undergo market research in order to consider consumer patterns, macroeconomic influences, microeconomic influences, and any other external processes or developments which can impact the business before Youngcare can develop its marketing plan and strategies. Second, after finding all the details, the external environment will be known.
The external environment is the people and processes that are outside the organization and cannot be controlled directly but only seek to influence it. As we all know, based on the factors of family wealth, marital status, number of dependents, age, gender and geographic regions etc. , not every person has the ability and willingness to donate their money to a charitable cause, therefore their decision will affect the funds and support that an organization is going to have. In the Youngcare case, other not-for-profit organization like Red Cross and McGrath foundation will be its external environment and competitors.
Furthermore, as Youngcare is a charity, Youngcare also has to compete with other businesses which are established to make profit, and provide goods or services which derive the individual satisfaction. Youngcare thus has to ensure its offerings provide their target market with greater value than their competitor’s offerings. In this incident, Youngcare found the other not-for-profit organizations did not have a charity focus. They are less persuasive and more difficult to attract for donations, as of the Youngcare website states the person whom inspired Youngcare. Shevaune Conry (Late), Founding Director Nick Conry’s wife who was forced to move into an aged care home following an accident at the age of 33). Youngcare therefore has to ensure it has a clear and appealing charitable focus, and that its marketing inspires individuals to be selfless and donate to Youngcare instead of choosing to purchase an item or donating to another not-for-profit organization. Youngcare must also understand the current and future need and wants of the young adult with high-care needs and their carers. It has to know their sufferings and wishes, so that they can forecast what kinds of changes can make their life etter. These include their place of care, the quality of physical care and the benefit to their physical and mental stresses. Last but not the least, with the above information from the marketing environment, Youngcare is able to understand its target market, get the cue for the success of its marketing strategy by having clear and definable objectives, through the promotion of the message that it is ‘committed to provide change and choice for the young Australians with high care needs’, and ‘young people deserve young lives. Youngcare has been successfully able to segment its target market through market research which deduced: * Women are more likely donate time, and money to charitable efforts then men * Wealthier individuals are more likely to donate than those less well off * People without children are more likely to leave a bequest Youngcare was able to adapt its advertising efforts to capture the target market, in a cost effective manner also utilising donation drives, publicity events, races, competitions, celebrities charitable work, and most of all through facebook.
Through their marketing efforts, Youngcare has successfully attracted donations, resulting in strong financial performance (revenue generation) since its establishment in 2005. Hence, Youngcare strives to meet its goals by raising awareness for people with high-care needs; securing funds to support its work; providing a helpline for people caring for young people in with high-care needs and an At-Home Care Grant Program to top-up government care fund for young people wishing to reside at home with loved ones; continuing to build more accommodation facilities for young people in need of a Youngcare home.
Youngcare and the Economic Environment: Young care is a non profit organization helping young adults to relief stress or any kind of strains by providing them with hope, possibility, dignity as well as the economic side funds to provide hospitality, housing and apartments to accommodate those young adults that’s in need. In my research, youngcares biggest income has been reliant on the fundraising programs these include rallying the community, joining businesses with governments. Over the years young care has its programs from Australia to Europe and to Asia ith some of the biggest names on the line e. g Blackmore, Sydney morning herald, Sunday herald, channel ten etc. taking advantage of good financial times is crucial, but its also as important to be prepared for bad times so hopefully youngcare would be able to old it’s ground or even gain profit from it. Economic environment can be a big factor for charities, for example during the 2008 financial crisis almost 70% of all charities had taken a direct hit, in 2009 that figure had rose up to 80% during its highest highest peak. During stable economic times charities should increase their service.
It is self explanatory in bad financial times people are less likely to donate than in good financial times, women donate more than men but during bad economic times women will donate less and men could possibly be out of the market. Therefore in whatever conditions charities must always have a backup plan. Fundraising income: are the most standard source of income, this is crucial for youngcare as it is the main source for its donors. it is statiscally shown More than a quarter of charities funded this way reported a decline in fundraising income in economic downturns.
Income from membership are just as important as fundraising. income for charities with nearly a quarter (24%) receiving funding this way. Smaller charities were more likely to say this was their most important source of funding than larger charities. This is possibly as this is an area over which charities have some control. Investments: Many of the charities we met with that rely on investment income have seen a drop, reflecting the survey finding that 69% of charities with investments reported a decrease in income from this source.
This was largely due to collapsing investment values and falling interest rates. However, this is not the only impact. Major donors in particular have been seen in some quarters to decrease the level of donations as their investment portfolios are affected. During tough financial times most common thing people do when money is tight is cancel direct debits to charities. A efficient solution is to try to maintain their links and relationship with these donors so that when the economy eventually recovers, they may return to giving.
Another counter strategy is to offer donation ‘holidays’ (a period during which the individual no longer donates, but remains on the charity’s records, again trying to sustain its link) to give donors some time to manage their current financial situation, without necessarily losing touch with the charity completely this gives the charity the ability buy time and plan. Others have also offered donors the option of giving less money, or supporting the charity in a different way, through volunteering Situational Analysis:
Young care is a charity established in 2005, which aims to provide housing to Australians (under the age of 65) forced to live in Aged care facilities, as it is improbable for their family to meet their needs within their home, there are currently 6500 Australians residing in aged care homes. The charity also aims to support families taking care of individuals with specific care needs, there are approximately 700,000 individuals living at home with high care needs being managed by their families.
To effectively determine Youngcare’s performance, and position a SWOT (Strengths Weaknesses Opportunities and Threats) analysis was performed: Strengths: * Industry Contacts * Celebrity Support * Dedicated Staff| Weaknesses: * Youngcare doesn’t contact individuals, these individuals must contact youngcare * Housing only available in Queensland * Need to obtain more government support| Opportunities: * Government Grants * Technology * Expand efforts to a global scale| Threats: * Competition for donations * Economic conditions * Lack of awareness of issue|
Strengths: * Industry Contacts are a key strength for Youngcare, as most of the donations received are from businesses. Youngcare’s board members hold senior positions in some of the charities largest sponsors and collaborative partners such as; Lendlease (Nic De Luca-Board Member), BSA limited (Mark Foley-CEO) , and KPMG (Peter Hudson-Board member). As a direct result of these relationships Youngcare is able to generate substantial revenue from these sources, without engaging in marketing strategies to target these companies.
Furthermore, collaborations with Lendlease have resulted in lowering expenses incurred in the construction of the Young Care homes. (http://www. youngcare. com. au/document. doc? id=123) * Celebrity support, Young care has the support of celebrities including; John Colllins (Powder finger), Ben O’Donoghue (Television presenter), and Gordon Tallis (NRL). These individuals donate their time, and efforts to participate in fundraising events. In 2010, Powder finger hosted a concert ith collaborations from artists such as Missy Higgins, and raised over $200,000 to contribute towards the Gold Coast youngcare apartments. Where as in 2012 a celebrity fishing tour was hosted, with $4,000 donated to youngcare from each individual who attended. With their collaborative efforts, these individuals increase funding for young care, and also raise awareness for young individuals with high care needs. * Dedicated Staff, youngcare Australia has experienced staff, most of whom have been with young care since its conception.
A strong work force ensures that employees goals are in line with the organisations mission, ensuring that the organisation operates efficiently, and provides the greatest benefit to the community. As a result of the employees efforts Young care posted a net surplus of $908, 316 in 2011/12, this surplus of funds is to be utilised in the construction of the Sydney Youngcare home in 2013. Weaknesses: * Individuals with high care needs, or families looking after individuals with high care needs, have to contact Youngcare for help, as of this many families are hesitant to approach Youngcare to seek assistance. Youngcare housing is available only in Queensland (Gold Coast and Brisbane), currently the charity is in the process of constructing housing in Auburn (Sydney), with plans to expand to Adelaide, and Melbourne in the coming years. However, the charity has not considered rural communities, and areas and the individuals in those communities which need assistance. * Lack of government support regarding the funding for the youngcare housing facilities, Youngcare Australia has not been able to secure funding, or subsidises for the construction of the facilities. Opportunities: Youngcare introduced ‘At Home care Grants’ to provide financial assistance to the families of 700,000 Australians living at home with high care needs, since then this has increased to a national level. As a result the federal government has recognised the ‘At Home care Grants’, and is currently considering subsidising these grants for Youngcare through government funding. * Technology has presented an opportunity for Youngcare in the form of cost-efficient marketing (advertising practises), Youngcare is able to market itself through the internet, and social networks.
Youngcare also accepts donations through facebook, and also held a facebook event in March 2012 in which their sponsors donated $1 for each ‘like’ to the Youngcare facebook page. * Expand Youngcare to a global scale; globalisation has presented Youngcare with the opportunity to expand its operations overseas. To improve the quality of life of individuals with high care needs, and their families , residing in other regions of the world. Threats: * Competition from other not for profit charities, and Australian businesses poses a significant threat to Youngcare.
As the majority of Youngcare’s revenue is derived from consumer’s donations, however consumers have the option to use the money they intended to donate. Furthermore, the not for profit sector is highly competitive with a many charities performing similar, or other services are competing for an industry work $75 Billion. * Economic conditions, the economic climate influences the amount that individuals donate, when the economy is expanding, individuals income levels increase. Meaning that individuals have a higher level of dispensable income (spare income) as of this individuals are able to donate a greater amount of money. The lack of awareness towards the issue, presents a significant challenge to Youngcare, as many individuals and organisations are hesitant to donate to Youngcare as they do not affiliate themselves with the cause, as they are not aware of the depth of the issue. As a result, Youngcare is not able to secure the funding to its full potential. Recommendations derived from SWOT analysis: Through analysis of the Strengths, Weaknesses, Opportunities, and Threats of Youngcare it is determined that Youngcare needs to, further efforts which raise awareness of the issue, achieving this through the Promotion stage of the marketing mix.
Utilising cost-effective strategies such as online promotion through Youtube, Facebook, and Twitter is recommended as through these mediums Youngcare can reach a greater audience, with low costs which is integral to a relatively small charity such as Youngcare. With over 800million monthly visits to Youtube, 900million Facebook users, and 500 million Twitter users, Youngcare can constantly access a potential audience of over 2 billion individuals at the cost it takes to run a 15 second ommercial once on Television. By creating a Facebook page, posting videos on Youtube of Youngcare’s efforts, and the tribulations of individuals with high care needs, and tweeting the amount of individuals requiring high care needs on Twitter, Youngcare can effectively raise awareness of the issue of individuals with high care needs, and is also able to collect donations from individuals online, hence securing funding, and raising the awareness of the issue in a cost effective manner.
It is also recommended that Youngcare needs to increase the number of facilities, and to make initial contact with individuals requiring Youngcare’s assistance, working to improve the distribution (place) element of the marketing mix. As in an organisation such as Youngcare the distribution element of the marketing mix does not refer to the geographical distributions of the centres, it also relates to the availability of assistance to individuals through other mediums, the more people which Youngcare can support the more greater its’ distribution.
To increase the number of facilities, Youngcare needs to secure revenue, and corporate collaborations; revenue can be increased through the marketing strategy, and target market segmentation, by increasing advertising, and increased awareness of Youngcare’s efforts. However, corporate collaborations can only be developed by establishing a relationship with management in businesses.
Businesses within the construction and medical equipment supply industries are of significant interest to Youngcare as working with these businesses can lower the cost of establishing, and running Youngcare Apartments. It is also recommended that Youngcare make initial contact with individuals requiring their assistance, as many families are hesitant to contact Youngcare for assistance as they may feel embarrassed, or be too proud to ask for assistance from a charity.
If Youngcare is able to make initial contact with these individuals, the amount of people Youngcare is able to assist will increase. This can be achieved by obtaining a listing of individuals with high care needs from the Department of Health and Ageing, and to call the individuals on the list, create a safe environment for them, ask them if they need assistance, and inform them that there is an source of assistance available if they require help.
This is a relatively low-cost method to ensure that individuals with high care needs that are living at home, or in aged care homes are having their needs met, and to assist individuals to move out from aged care homes into Youngcare housing. Youngcare should also lobby the government to support its cause; this can be achieved through the people element of the marketing mix, as Youngcare should be able to promote itself, and further its efforts by signing a petition allowing the government to recognise the importance of the issue of Young individuals living with Aged care Homes.
By gathering political support, Youngcare can force the government to dedicate a segment of its health care funding to the establishment of Youngcare’s homes, so that all of the 7,500 young Australians living in Aged cares homes can be moved to appropriate facilities. This will improve the mental health of Young individuals with high care needs as they no longer live with individuals with an average age of 85, whilst also freeing up 7,500 beds in aged care facilities, ensuring that needs of both young, and aged individuals with high care needs are more efficiently and effectively met.
Furthermore, Youngcare through its staff, and individuals whose lives Youngcare has improved can also lobby the government to increase the funding, and allowances provided to the families of individuals with high care needs. As current Carers allowances, and Carers Payments are insufficient evidenced by the increased financial pressures placed upon families looking after individuals with high care needs, statistically these families have a 70% divorce rate which is well above the national divorce rate.
Another recommendation derived from the SWOT analysis is to differentiate Youngcare from rival charities, with approximately 7. 3% of all donations are being donated within the healthcare services sector. Youngcare competes with large charities such as; St John’s Ambulance Service, the McGrath Foundation, The Cancer Council of Australia, and Red Cross Australia. Youngcare needs to differentiate itself amongst charities through the promotion stage of the marketing mix, by promoting Youngcare as the only charity focused solely on ensuring the needs of young individuals with high care needs are appropriately met.
In order to achieve this Youngcare needs to determine its target market, which can be determined by market research. Market research conducted on donating patterns of Australians has shown that; individuals with high net worth are more likely to donate than those with low to medium net worth, women donate more time and money to charitable causes, and that individuals without children are more likely to donate in their lives, and are also more likely to leave donate their property to a charity upon their death.
From this it is deduced that the ideal target market for Youngcare is to advertise to families who have double income’s and no children (“DINK’s” –Double Income No Kids). As these individuals have a high net disposable income as both members earn, and as they have no children there expenses are relatively low, as such they have a high net worth, they are also more like to volunteer as they have no commitments regarding children in their free time, and this family structure is also more likely to leave bequests.
From a marketing perspective it is most effective for Youngcare to differentiate themselves from other charities in the eyes of their target market. Furthermore, Youngcare can increase their revenue through the price component of the marketing mix, as currently Youngcare donation drives, and charitable donation boxes do not have a minimum donation amount. Resulting in many individuals donating several cents, if Youngcare was to introduce a minimum of a ‘gold coin donation’ as other charities operating within the industry have e. . Jeans for Gene’s day, this will compel donors to donate a minimum of a gold coin. Resulting in an increase in revenue for Youngcare Australia, this a very cost effective method to increase revenue, however it can also result in a loss of donations as many donors who donate small amounts may be discouraged from donating, in the long run this can amalgamate to a significant amount. NRRF TO DO CONCLUSION;lt; TABLE OF CONTENTS ;amp; BIBLIOGRAPHY… TOMOZ or day after..