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Care Usa Marketing Analysis

Essay by review  •  December 6, 2010  •  Case Study  •  1,833 Words (8 Pages)  •  1,126 Views

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Care USA Case Analysis

Executive Summary:

Care USA has been suffering from a lack of a brand identity amongst its primary donor group, this has lead to Care USA to restructure its marketing communications to increase support from the private sector. Reduction of Care USA's humanitarian relief projects, merging of all Care International groups, and collaboration with other relief organizations are three possible solutions that may be employed to achieve further private support. A possible prioritized implementation plan is also included to achieve the primary objective of Care USA.

Situations Analysis:

Care USA is dedicated to eradicate poverty through out the world through health care, education, agriculture, farming, safe water, basic sanitation and most importantly providing food to the underprivileged. By 2002 Care USA had become one of the largest humanitarian relief organizations in the world. Care USA received the majority of their funding through government with private donations being minimal. So they have tried various approaches in international fund raising and marketing communications to reach their target group of donors which consists primarily of adults 35 and up, college educated, with an average salary above $75,000. To reach this demographic Care USA is trying to develop a brand strategy to make them a relevant global brand on the humanitarian relief front on par with the likes of UNICEF, and the Red Cross whom they have been competing with to acquire donors.

Main Problem:

In 2002 Care USA had an income of $427 million, of which roughly 67% was received from government funding. Through this $427 million Care USA was able to directly improve the lives of over 31 million people in impoverished nations. In 2002 the public support of Care USA was at $63 million which only made up 15% of the total income. The reason for this low percentage was due to the fact of a sluggish US economy, a dragging stock market, and the attacks of September 11th. Although all these factors lead to the lowered public donations, another problem also plagued Care USA; they where unable to effectively communicate how they would fulfill their mission statement. Care USA had branched off into so many different areas of humanitarian work that the average donor was unsure of what Care USA was attempting to do on a global scale. Starting as just a food provider for the needy in Europe, Care USA had established a brand as such. When they began their descent onto other platforms of humanitarian relief their vision became incomprehensible among the general public. Whereas UNICEF and the Red Cross have concentrated their efforts on child-care and health-care respectively, Care USA implemented programs ranging from generic care packages to agro-forestry development, which while helpful to local populaces, served to dilute their core message to perspective donors.

Our criteria for selection of a possible solution to Care USA's problems are as follows:

* Increase private donations

* Cost effectiveness in marketing

* Increase Brand awareness

* Unified message

Alternative I: Reduction of Care USA activities to 2 primary objectives

Care USA shall solely focus on its two core functions: hunger assistance and emergency relief. As such, it will divert any funds and resources currently being used to execute their periphery operations to the above two functions.

a. "Increase Private Donations" will be achieved due to a break-down of asymmetric information. No longer will donors be unaware of Care USA's core objectives, and as such will have more incentive to donate to Care USA now that they are informed of what specific activities their funds are going towards.

b. "Cost Effectiveness in Marketing" will be satisfied as Care USA will no longer have to waste limited resources in communicating multiple messages. Rather, Care USA can concentrate their resources by discussing their primary operations via focusing on a single message that ties in their two core activities.

c. "Increase Brand Awareness" will certainly be attained as the public will better attribute Care USA to a specific service, much as Red Cross and UNICEF are mainly correlated with health-care and child-care prospectively in the minds of consumers. Thus by limiting their activities to hunger assistance and emergency relief, Care USA can achieve the imprints the minds of donors that the above two groups have.

d. A "Unified Message" will be met now that Care USA only advertises its work regarding its two main activities and reduces their periphery operations. As such Care USA can now "speak with one voice" instead of sending mixed messages and signals by discussing a hodgepodge of activities that they are engaged in, which only serves to confuse potential donors as to what Care USA's primary goals and operations are.

Alternative II: Merging all the Care subsidiaries into one group

Care began its mission in the United States and subsequently spread out to other countries. When Care made its way outside the United States they attached the particular countries name to its name in an attempt to decrease confusion, hence Care UK, Care France, etc. However Care had a strong association with United States in people's mind. Care USA sounds more familiar than Care international or just Care. The United States has been the biggest donor of Care and the most powerful member that manages the programs and activities of Care worldwide, even though their expertise may not lie in that particular field. Also, in the case of non-profit organizations the strong association of the brand with one particular nation is not very helpful. Non-profit organizations get donations from government grants and the private sector. Donation's from the private sector is based solely on donors' trust because donors cannot experience the actual products or services that organization provides. People may not trust the organization very much if the power is centered on one country. Therefore Care can get more trust and positive image as a non-profit organization from people in other countries if all the Cares merge into one group.

a. "Increase Private Donations" will be achieved because people will not recognize Care as an American organization.



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