BCG: STRATEGY CUP

HNI STRATEGY
Indian School of Business (ISB)
The Pathbreakers

Rishikesh Gajendra +91 9769768372

Rishikesh_Gajendra2015@isb.edu

Pandarinath Illinda +91 8688046499

Pandarinath_Illinda2015@isb.edu

DIVERSITY IN FUNCTIONAL KNOWLEDGE, EXPERIENCE WORKING WITH NGOS AND

COMPLEMENTARY STRENGTHS LEAD TO A WELL BALANCED TEAM
Rishikesh Gajendra
ACADEMIC QUALIFICATIONS
PGP CANDIDATE, ISB

Diversity in
functional
knowledge

Rishikeshs experience in investment banking and Pandarinaths

work in Strategy and Policy lead to a healthy balance of
analytical ability and strategic thinking
Pandarinath has also worked in supply chain risk analysis,
lending an operational bent of mind to the team

B.E. (HONS.) ELECTRICAL AND ELECTRONICS AND

MSC. (HONS.) MATHEMATICS, BITS- PILANI
PROFESSIONAL EXPERIENCE (3 YEARS)
ANALYST - INVESTMENT BANKING, J.P. MORGAN

Experience
working with
NGOs

Rishikesh was a founding team member of Samhita Social

Ventures. He was awarded the E4SI fellowship for outstanding
contribution in the social sector
Pandarinath has been an Ambassador for United Way and
worked for children related causes

Pandarinath Illinda
ACADEMIC QUALIFICATIONS
PGP CANDIDATE, ISB
B.E. (HONS.) MECHANICAL, BITS- PILANI
PROFESSIONAL EXPERIENCE (5 YEARS)
SENIOR ANALYST EMINENCE GROUP, DELOITTE
6

Complementary
strengths

Rishikesh has a creative outlook, acting as the idea generator

in the team
Pandarinath brings systematic method to the team. With an
eye for detail, he builds a structured approach to solving
problems

EXECUTIVE SUMMARY
There are an estimated 300,000 HNI (salary greater than $42,000 (INR 25 lac)) with a cumulative giving potential of $2.0bn
o Based on the market sizing and number of HNIs, the average HNI donates $6900 (INR 4 lac) and belongs to the silver category of
donors in The Leadership Club

o The ideal HNI profile is that of a first/second generation entrepreneur or highly accomplished professionals in banking, consulting,
private equity etc.
To be successful in the long term, we recommend a 5-pronged strategy focused on Recruit a dedicated HNI engagement team; Develop
a strong pipeline of donors; Enhance the benefits package of Leadership Club; Create sub-groups called The caring nuclei and Engage
donors via gamification techniques
o Recruit a dedicated HNI engagement team HNIs require dedicated efforts for acquisition and retention; SC can recruit a fundraising manager from a leading non profit who can drive these efforts with the support of an engagement team
o Develop a strong pipeline of donors SC needs to develop a strong pipeline of donors through existing HNI references and
endorsements and apply a modified assessment framework to measure HNI interest

o Enhance benefits package of Leadership Club Convert Leadership club from a recognition platform to an engagement platform.
SC needs to revamp its existing benefits structure and strengthen the value proposition to high value donors; Additional benefits
include an advisory board, annual summits and granting of naming rights
o Create sub-groups called The caring nuclei Create cause based sub-groups called The caring nuclei, and enable strong social
bonding to increase active participation
o Engage donors via gamification techniques Create a Points, Badges and Leaderboard based gamification for The caring nuclei
and design a web interface and mobile app that incentivizes participation
1

SC CURRENTLY FACES CHALLENGES IN ESTIMATING HNI MARKET SIZE AND IN TARGETING,

ATTRACTING AND ENGAGING DONORS
Challenges

Elements of the solution

Estimate: Market size and profile of HNIs

Estimated
Market of
HNIs

HNI
engagement
team

Assess: Interest of potential donors in donating

to Save the Children

Capability: To work with the HNIs on a sustained

basis; adequate involvement of Operations
team

Evaluate HNI
interest using
proposed
framework and
identify target
individuals

Existing/
Past
HNIs

Present enhanced benefits package

Education

Donor Retention: Retain donors for long term

sustainability

New
HNIs

Re-engage with
marketing
material
focusing on
appreciation for
past donations

Create a tightly
knit community of
cause-based sub
groups

Health

Protection

Disaster
relief

THE MARKET SIZE OF HNIS DONATING TO CHILDREN-RELATED CAUSES IS $2.0BN AS OF 2013

AND WILL GROW AT A STAGGERING CAGR OF 25% FROM 2013-2017
Additional assumptions
Key assumptions

Total income of
HNIs:
$155.4bn

Target
HNIs
with age
>50:
$77.7bn
3.5% of
income:
$2.7bn
75% to
children:
$2.0bn
3

Source:

1,2Linearly

Segmentation as per
Households with income
greater than $42.6k (INR
25 lac)1
The target HNIs
consist of those with
age greater > 50 years
Also, the Analysis
assumes normal
distribution of ages
with mean = 50 years
and std dev.= 7.5
years

6.0
5.0
4.0
3.0
2.0
1.0
0.0

75% donations are to

children related causes

5.0

CAGR = 25%
3.7
2.0

2.3

2.9

2013 2014 2015 2016 2017

1.4

1.5
CAGR = 48%

0.9

1.0
0.6

0.3

0.4

0.0
2013 2014 2015 2016 2017

Average potential donation

per household is INR 4 lac

interpolated data from the Economist Intelligence Unit data,1980-2030

Inherited wealth is not included in the

market sizing increases aggregate
income
The HNIs with their own trust are to be
excluded - decreases aggregate income
The net effect of the above two factors
is to cancel each other
Households wealth is the same as
individual wealth

Key considerations

Number of HNIs (mn)2

0.5
Analysis assumes that 3.5%
of the income of HNIs could
be donated

Market potential ($bn)1

Majority of the estimated 0.3m HNIs

reside in Delhi / Mumbai
In the last 5-10 years, an increasing
number of younger technology
professionals in Bangalore and
Hyderabad are involved in giving
The ideal profile of an HNI can be:
First or second generation
entrepreneurs
Highly accomplished individuals in
the private equity/investment
banking/consulting professions

RECRUIT A DEDICATED HNI ENGAGEMENT TEAM AND DEVELOP A STRONG PIPELINE OF

DONORS TO TARGET WITH MARKETING MATERIAL HIGHLIGHTING DONOR IMPACT
1

SC can recruit an HNI engagement manager and team and the operations manager will closely work with HNIs on implementation aspects
SC can recruit the fund-raising manager of a large non-profit to lead the HNI
engagement efforts

HNI manager

The HNI Manager will lead a dedicated team that will coordinate HNI
engagement activities

CEO

The Operations manager will work with the HNIs on mobilizing the ground
activities decided by the caring nuclei sub-groups

Operations
manager
Reporting relationship
Working relationship

HNIs

Operations team

SC needs to assess potential donor engagement, build a strong pipeline and present marketing material highlighting donor impact
Develop and work through a dynamic wishlist of potential donors
Approach existing donors for referrals/endorsements when targeting HNIs
Modified prioritization: For all HNIs who score 3 on Life stage parameter
Assess response based on the one-to-one introductory meeting and
feedback on marketing material
SC can target the younger HNIs to develop the future pipeline of donors
Marketing and Media
SC can revamp its marketing collateral to include the impact of HNIs and
highlight pictures of HNIs in action
SC can tie-up with media partners via HNI donors who work in the media
sector for active coverage of SC events and activities

HNI Engagement
team

Score

Characteristics

Highly interested, is passionate about the cause, follow up

activities discussed and scheduled

Interested and positive about follow-up activities

Not interested, is passionate about other causes or affiliated

with other organizations or neither

ENHANCE THE BENEFITS PACKAGE, FORM CARING NUCLEI SUB-GROUPS AND SUSTAIN
ENGAGEMENT VIA GAMIFICATION TECHNIQUES
3

SC needs to provide exclusive benefits to gold/platinum donors and expand benefits package for other donors of the Leadership club
Advisory
board

All Platinum donors to join an advisory board that overseas

Leadership Club activities
On a rolling basis, 2-3 HNIs may join the governing board

City-based
Annual
summit

All Platinum and Gold donors to be invited to a city-based annual

summit, with panels on innovative solutions to social causes
Engage donors in causes by having on-the-spot pledging
Media coverage and social profiling of the top city donors

Other Benefits

Bronze

Silver

Gold

Platinum

Donor chronicles marketing pitch-book

Naming rights to NGO

initiatives

Donor database access

Bi-annual recognition

SC can form cause based sub-groups - The caring nuclei and facilitate strong social interaction to build a tightly-knit community
Each Caring nucleus to have 10 HNIs and pledge to donate a fixed amount i.e. for example
Platinum donors would donate INR 10 lac per person per year - corpus amount of INR 1 crore
Brand each sub-group as a distinct team i.e. provide unique name/slogan
Facilitate group visits to site, encourage HNIs to bring their family along
Follow a collective voting system on key issues such as application of funds
Dedicated disaster relief nuclei responsible for mobilizing resources during emergencies

Disaster
relief
nuclei

Platinum/
Gold club
members

SC can use gamification to engage and incentivize sub-groups by introducing a PBL system and a mobile app/web interface
Introduce a Points, Badges and Leaderboard system to benchmark sub-groups and update
website and include latest standings in SC Publications and assessment reports
Create a web-interface and mobile app that records donor contributions and involvement to
unlock further levels

Education
nuclei

Protection
nuclei
Health
nuclei

CREATE AN ACTION PLAN, ASSIGN DESIGNATED OWNERS AND WORK TOWARDS

IMPLEMENTATION WITHIN THE TIMEFRAMES WITH CONSTANT EVALUATION
1

ACTION

OWNER

TIME FRAME

METRICS/EVALUATION

Recruit a HNI engagement manager

Reach out to personal network, recommendations of
past donors and advice from governing board

CEO

0-3 months

N/A

Develop a strong pipeline of donors

Apply modified prioritization framework and present
marketing collateral

HNI engagement
manager

3-6 months
Ongoing

Number of potential
HNIs identified

Form cause-based sub groups Caring nuclei

Work with donors and identify best fit with cause

HNI Engagement
manager

< 2 weeks after

donor buy-in

Number of caring nuclei

formed

Enhance the benefits package to HNIs

Review proposed benefits and include further industry
best practices

HNI Engagement
manager

Immediately after
HNI manager
recruitment

Number of HNIs and

donation value ($)

Apply gamification techniques to incentivize HNIs

Hold competitions in engineering colleges for app
design

Operations
manager

1-4 months

Gamification metrics
web/app usage

POTENTIAL RISKS TO THE 5PRONGED STRATEGY

Lack of coordination between HNI Engagement Manager , HNIs and Operations manager
Lack of precedent in Save the Children India
Subjectivity in assessing HNI interest in prioritization framework
Appeal of gamification techniques to all age groups