canadian blood services
TRANSCRIPT
Table of Contents
Executive Summary...............................................................................................................3
Problem Statement.................................................................................................................4
Situation Analysis...................................................................................................................4
Objectives.................................................................................................................................. 4
Background and Forecast...........................................................................................................4
SWOT Analysis......................................................................................................................... 5
Target Market Segmentation......................................................................................................6
Blood Donors Behavior Analysis...............................................................................................7
Financial Analysis......................................................................................................................8
Case Keys...............................................................................................................................9
Analysis of Alternative Solutions.........................................................................................10
Recommendations................................................................................................................11
Action Plan...........................................................................................................................12
Contingency Plan.................................................................................................................13
Appendix A – Fiscal 2006/2007 Donor CBS Statistics..........................................................14
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Executive Summary
Canadian Blood Services is a national not-for-profit charitable organization. Recently, there
was a decrease in the number of blood donors and the rate of new-donor retention. In order to
ensure a safe and stable supply of blood and blood products in Canada, motivation, recruitment
and retention of voluntary blood donors are the essentials. To motivate and recruit the blood
donors, Canadian Blood Services is recommended to establish an awareness program to inform
the public of the benefits of donation. It is also necessary to rebuild the organization’s image
and regain the public’s trust about the system to ensure future success.
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Problem Statement
As the number and the retention rate of blood donors decreased recently, Canadian Bloods
Services (“CBS”) has to establish an effective marketing plan in order to restore the public
confidence, and motive, recruit and retain the blood donors. Since CBS is the main supply of
blood and blood products in Canada; changes are required to ensure that the blood system in
Canada is stabilized.
Situation Analysis
Objectives
The objectives of CBS are to stabilize the blood system, restore the public confidence, and
provide a safety blood donation process to the donors and the blood products to the recipient
in a cost-effective manner.
Background and Forecast
CBS is a not-for-profit charitable organization with 16 blood centers located across Canada.
During the late 1970s and 1980s, more than 1,000 Canadians who received blood transfusions
were infected with the human immunodeficiency virus. As a result, the public trust in the
blood system was destroyed. Even though CBS has built a great team whose essential services
and dedication brought to reality the generous intentions and expectations of blood donors;
however, in 2007/2008, the number of donors and the rate of new-donor retention has
decreased.
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SWOT Analysis
Strengths:
Strong organizational culture;
Established a clear mission and vision statement;
Established a great team including employees and volunteers;
Strong financial backups – holding a multi million contingency funds;
Built a good process and quality control;
Efficiency and effective decision making process by maintaining operational
independence from government interference.
Weaknesses:
Inflexible operating hours of the blood donation clinics - all of them are closed on
Sunday and most of them are operating only during office hours;
Lack of incentives to the blood donors;
Inflexible operating environment – as a non-for-profit charitable organization, there are
a lot of regulations and rules need to be followed;
Decrease in public trust in blood system (March 2006 – 84%; March 2008 – 79%).
Opportunities:
The demand for blood and blood-related products is increasing;
No major “competitors”;
Large base of qualified target donor;
New programs were developed such as the stem cell and marrow network.
Threats:
A lot of myths and misconceptions about blood donation in the public;
Drug problems and risks of new disease affect the quality of blood;
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Challenge operating environment – zero error tolerance, even one small error may cause
a big problem.
Target Market Segmentation
Blood
Donation
Segment
Non-remunerated Remunerated
School age
Age 15 – 24
Working age
Age 25 to 54
Senior donors
Age: 55+
Age – above
17
Where At school, on site
clinicClinic Clinic Clinic
WhenDepends on
donation program
in place
Rare – depends on
time and other
obligations
Rare
On a regular
basis (and as
permitted)
Why / What
benefit
achieve
Easily influenced
by friends and co-
workers;
satisfaction in
saving someone’s
life; need for love,
friendship and
acceptance
Easily influenced
by friends and co-
workers;
satisfaction in
saving someone’s
life; need for love,
friendship and
acceptance
Decision based on
own experience
Financial
incentive
Primary
Media
Form
Internet, school
learning programInternet, TV
TV, word-of-
mouth, mail
mail/flyers,
word-of-mouth
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However, a number of other possible market segmentations are plausible – including income,
immigration status, ethnicity, education, and geographic location (Refer to Appendix A).
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Blood Donors Behavior Analysis
In order to design an effective marketing plan to induce the blood donors, CBS should first
understand the behavior of blood donors. In making a blood donation, the following factors
are affecting the donors:
Motivation
Since blood donation is a “pure” voluntary activity without any direct benefits to the
donors; as a result, lack of motivation for the donor to make a blood donation.
Perception
How do the donors interpret publicly available information about the blood donation?
There is many myths and misconception about blood.
Learning
Learning by doing is always the best approach. Once the people have the experience in
blood donation, then their perception of blood donation will be changed.
Attitude
A person’s background, exposure to program, and social influences will affect a
person’s attitude towards donation.
Family
For the teenagers, how does their family value the behavior of blood donations? Did
their parents donate blood? The teenagers are easily to be influenced by their parents’
behavior and follow what their parents did.
Time
When will the people donate blood? How can they donate blood during the office
hours?
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After the potential donors consider the above factors, then they will determine what they need
and want from the donation. For blood donation, people may simply want a safe donation
process. Once the needs and wants are satisfied, for the regular donors, they then will go to
donate without further evaluating the decisions. However, for the first-time donors, they will
search additional information about blood donation to ensure they understand the process and
associated risks. Once they review the information, they then will decide whether to donate or
not. A longer time for evaluating the information; a higher possibility of not donating blood
may be resulted. Once the people donated blood, then they will re-evaluate the process and
determine whether the actual process is the same as they expected. If they satisfied with the
process, then highly likely they will re-donate next time. For some reasons, they may not
satisfy with the process, and then they will re-evaluate this activity and postpone their next
donation. Sometimes, these unsatisfied donors may share their experiences with the others; as
a result, other people may be influenced by these subjective and negative opinions.
Financial Analysis
Following is the highlights of the financial performances of CBS for the year ended March
31, 2008 compared to the year ended March 31, 2007:
Members’ contribution increased by $7 million to $859 million;
Consolidated excess (deficiency) of revenue over expenses decreased by $20 million, to
a deficiency of $4 million - primarily the result of the increase in staff costs and
provision for future insurance claims;
Cash inflow from operating activities increased by $54 million to $57 million;
As at March 31, 2008, cash and cash equivalents and working capital were $184 million and
$197 million respectively.
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Conclusion:
As the members’ contribution and cash inflow from operating activities increased, it
illustrated that public support and CBS’s operations have been improved. However, the
future insurance claims increased indicated that the certain level of risks in operating the
blood system is still existed and may be even increased from insurance companies’
viewpoint – which may represents the public’s viewpoint as well. Overall, the current
financial position should be able to provide sufficient resources for CBS in expanding the
operations in the foreseeable future.
Case Keys
Key Questions:
What are the best promotion strategies in motivating, recruiting and retaining the blood
donors?
Key Success Factors:
Increase public awareness;
Provide convenient blood donation clinic;
Government, public and medical community’s supports.
Key Uncertainties:
Acceptance of blood donors;
Motivation of the public;
Financial supports from the public.
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Analysis of Alternative Solutions
Alternative 1- Direct mails
Prepare a direct mail, which should include information about the blood donation system,
procedures and risks for distribution to household. The direct mail should be written in simple
terms and different languages for different cultures.
Pros:
Relative lower costs;
Information can reach large target markets with detailed information quickly;
Cons:
Households may never read the advertising mail;
Alternative 2 –Set up new blood donation clinics and extend the operating hours
Extend the operating hours of the blood donation clinics and set up new mobile blood
donation clinics such as blood donation vehicles and park them at the city centre on the
weekend/evenings to offer blood donation services.
Pros:
Provide convenience to the blood donors;
Increase program awareness.
Cons:
Staffing problems;
Increase operating costs.
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Alternative 3 – Set up the information sessions at the schools
Set up information sessions and provide an instant blood donation services after the session at
the high schools and universities.
Pros:
Resolve the queries and obtain immediate feedbacks from the blood donors
immediately;
Increase program awareness.
Cons:
Staffing problems;
Increasing operating costs.
Alternative 4 – Launch a blood donation campaign
Launch a “national-wide” blood donation campaign and hire the singers, NHL players and
movie stars as the representatives.
Pros:
Increase public awareness of program;
Increase financial support through donations from the public.
Cons:
Costly if cannot complementary endorsements from celebrities.
Recommendations
In order to increase the number of blood donors in a cost-effective manner, CBS is
recommended to select Alternatives 1 and 3. These methods would be effective in building up
public awareness before engaging in more costly endeavors such as extended hours or a
campaign launch. As more donations and public financial supports increase, CBS can consider
extending operating hours of the existing blood donation clinics.
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On a go-forward basis to increase the retention rate of blood donors, CBS is recommended to
arrange a next donation appointment with the donors immediately after the donation and send a
reminder mail and/or email to the donors when the next appointment is approaching. In
addition, CBS should provide a regular training session to the employees and volunteers to
ensure their knowledge is up-to-date.
Action Plan
The following actions should be taken within the coming six months:
Prepare a new budget for the coming year – as the above recommendation will increase the
operating costs especially the staff costs;
Arrange a staff meeting to discuss the staffing issues in extending the operations hours of
the blood donation clinics;
Re-design an attractive brochure about blood donation system including the Q&A section;
Contact Canada Post Office for arranging the direct mails;
In the coming summer, CBS should contact the school boards and universities in arranging
the information session for the upcoming academic year;
Engage a public relation firm or set up a public relation team to promote and improve the
image and reputation of CBS.
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Within 1 – 2 years, CBS should:
Set up an internal control team to document and monitor the internal control and the
process of the entire blood system to ensure the actual system is processed as designed, any
variations must be identified and adjusted immediately;
Set up new blood donation clinics and mobile blood donation clinics near the city centre;
Set up a risk-management team to resolve any potential risks of CBS.
Contingency Plan
If the number of donors and the retention rate does not changed as expected, then CBS is
recommended to launch a blood donation campaign. In doing this, CBS is recommended to
discuss with the government and/or “big” private companies for some financial supports in
launching the campaign.
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Appendix A – Fiscal 2006/2007 Donor CBS Statistics
Donors per thousand populations in target Census Metropolitan Areas
Source: International Journal of Health Geographic 2009
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