Global Marketing Management 530

Semester 1, 2014
CLIENT BRIEF COVER SHEET
Name:

MARCOS DOUGLAS DA SILVA

Student ID:

18182255

Tutors Name:

DR ANEESHTA GUNNESS

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MONDAYS 4PM TO 6PM

31 AUG 15

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Table of Contents

Executive Summary ............................................................................ 3

Organisation Background .................................................................. 4
History......................................................................................................... 4
Mission, Values and Objectives ............................................................... 4
Organisational Board ................................................................................ 5
Ethical Accountability ............................................................................... 5
Finance ....................................................................................................... 6

Current Marketing Organisation Situation ....................................... 7

Services and Products .............................................................................. 7
Audience ..................................................................................................... 8
Competitors ................................................................................................ 9
Microenvironment .................................................................................... 10
Macro environment .................................................................................. 11
Marketing Activities ................................................................................. 13

Key Marketing Objectives ................................................................ 14

Budget ................................................................................................ 14
Conclusion ........................................................................................ 15
Recommendation .............................................................................. 16
References ......................................................................................... 17

Executive Summary
This client brief was made based on the information collected at the
interview with Ms Lily Lomma and Ms Kirsty Labuschagne, and further online
research. It aims to analyse Arthritis & Osteoporosis WA in a marketing
perspective.
Briefly provides a current situation of the Foundation and its marketing
position. Identifies weakness points and threats under micro and macro
environments and summarises the potential opportunities for the company to
be considered.

Organisation Background

History
The Arthritis & Osteoporosis WA was established in October 1972 as a
non-government organisation, under the name of The Western Australian
Arthritis & Rheumatism Foundation (WAARF) and led by Drs Phyllis
Goastcher, Evan Owen and Roger Dawkins. This was made possible with the
assistance of ANZ Bank, which freely offered an office in Murray Street, Perth.
The aims of the Foundation were care, education and research in the
arthritis and rheumatism fields. Nineteen years later, in 1991, the Foundation
changed its name to what it is currently known as, Arthritis & Osteoporosis
WA. In 1994 it held a successful capital fundraising appeal and as a result,
the organisation opened its own custom built Resource Centre located in
Shenton Park, WA. The Centre consists of a hydrotherapy pool, gymnasium,
seminar and boardrooms, caf, bookshop and leased office space to other
tenants.

Mission, Values and Objectives

The mission of Arthritis & Osteoporosis WA is to reduce the incidence
and disabling effects of arthritis, osteoporosis and related conditions in the
population of Western Australia. Providing care though services, education
and research are their most important values and it is the driving force behind
many of the Foundations aims.
One major aim of the Foundation is to advocate for greater assistance
from the Australian Government, as they believe it is important to give a voice

that represents the community for the cause of Arthritis, Osteoporosis and
related diseases.

Organisational Board
The Foundations Board is constitutes of a president, vice president,
honorary treasurer and members (currently five); members are elected by the
Board and must have made a monetary donation, have purchased goods or
have given their time to the Foundation during the preceding 12 months and
apply to be appointed as a member (Arthritis & Osteoporosis WA Constitution,
2009). The president, vice president and honorary treasurer are elected for
2/3 of the Board.

Ethical Accountability
According to the Constitution of Arthritis & Osteoporosis WA as
amended in April 2009, the Foundation is non-sectarian and non-political.
Therefore, despite the organisations role as an intermediary between the
community and the government, they do not associate themselves with any
side of politics and operate independently.
The company is strongly orientated by their ethical values and do not
support any company that does not promote health and well being for the
good of society. It also does not endorse any company that promotes
products, which are not scientifically proven to be effective combatants
against arthritis, osteoporosis and related diseases.

Finance
A non-profit organisation is highly dependent on donations and
contributions from the community and government. However, the government,
due to other priorities, has not yet been a strong financial support for Arthritis
and Osteoporosis WA.
Therefore, the Foundation depends mainly on community charity.
According to the Annual Report 2014, Fundraising represented 64% of the
total revenue, while Fee for Services 8%, Grants 17% and Interest and
Dividend income 11%. These figures show the importance of fundraising for
the Foundation.
The Annual Report 2014 also shows that in 2013 the Foundation
received AU$ 1.6 million in Bequests and in 2014 this type of contribution
decreased 78.32%, with only AU$ 0.35 million raised. This variation
demonstrates the volatility of donation revenue, and the companys risk in
relation to its performance. This highlights a weak point within the
organisation that needs significant attention, which will be further discussed in
the marketing strategies section of this case brief.
The table below represents the components that contribute to the total
revenue, specifically the composition of fundraising resources.
Revenue
Charitable support fundraising
Fee for services
Grants
Interest income
Dividend income
Gain on sale of investments
Other
Total Revenue

2014
1,797,594
233,662
467,336
87,127
228,428
8,626
2,822,773

(%)
64
8
17
3
8
0
0
100

2013
2,991,502
251,758
486,019
49,853
243,845
21,514
26,616
4,071,107

(%)
73
6
12
1
6
1
1
100

Revenue from fundraising

activities
Charitable trust distributions
Direct mail
Facilities hire
Periodical payments
Raffles
Bequests
Bingo
General Fundraising
Chair Rheumatology &
Musculoskeletal Medicine
Total

2014

(%)

2013

(%)

112,349
362,127
194,735
12,559
67,270
350,735
359,808
74,831

6
20
11
1
4
20
20
4

134,234
340,921
172,814
13,609
45,994
1,618,142
360,424
121,539

4
11
6
0
2
54
12
4

263,180

15

183,825

1,797,594 100
2,991,502 100
Arthritis & Osteoporosis WA, 2014

Arthritis & Osteoporosis WA, 2014

Current Marketing Organisation Situation

Services and Products

Currently the Foundation has several services and products, such as:

Social lines

Telephone Advisory Service

Seminars and talks

Specialist Bookshop

Arthritis Today Magazine (issued three times per year)

Rural Clinics

Support Groups (local, suburban and Regional)

Information Sheet

Self-management Programs

Exercises classes, such as Hydrotherapy, Pool sessions, Tai Chi for

Arthritis, Nordic Pole Walking, Pilates and Yoga.

Support for research

Additionally, its website is a reliable source for information related to

the diseases. It is a powerful channel for its target market and a strong form of
communication with all stakeholders.
In association with Telethon, Arthritis & Osteoporosis also released
The Bones and Joints School website, which focuses on providing
information to families, children and teachers, in order to develop and
maintain healthy lifestyles and prevent chronic conditions.

Audience
According to Lomma and Labuschagne, 2015, Arthritis & Osteoporosis
WA targets any person who is interested in the cause, however they estimate
that 50% of the audience are above 50 years old and predominately women.
They claim to have approximately 100,000 people subscribed for the website

news and direct mail list. Although specific demographic market data from the
Foundation was not provided by them, according to research performed by
Deloitte Access Economics published in a report provided by Arthritis and
Osteoporosis Victoria (2013), it was estimated that Western Australian had
1.2 million people with arthritis, osteoarthritis or related diseases in 2011-12;
where 59% of the total were women and 41% men. Elderly are the most
affected by the illnesses, but affects any person regardless of age and it is
estimated that the number of people with related diseases will increase by
43% by 2032, affecting 30.2% of the population.

Competitors
Arthritis & Osteoporosis WA is the only non-profit organisation in
Western Australia related to the cause of arthritis and osteoporosis. Although
it does not have a direct competitor, according to IBISWorld Industry Report
for Charities and Not-for-Profit Organisations in Australia (2012), there are
about 44,800 non-profit organisations in Australia, among 800 are healthorientated and 12% are in Western Australia. Some of them are highly
supported by the media, such as Telethon and Cancer Council WA to mention
a few.
This highly competitive market is felt by the Foundation in areas
involving fundraising and raising awareness in the general public. The
Foundations osteoarthritis cause is forced to compete against other healthrelated causes, which are sometimes considered to be higher priorities in the
health community, e.g. cancer, HIV. This stresses the need to improve
marketing promotion; despite the indirect competition, the Foundation has a

strong brand and a good reputation in the areas where it operates, which is a
point of strength to be emphasised.

Microenvironment
In order to more effectively analyse the microenvironment of Arthritis &
Osteoporosis WA, a SWOT framework analysis is provided below to
summarise the strengths, weaknesses, opportunities and threats that the
organisation is currently facing.
Strengths: the Foundation has its own building, which minimises
operational costs and is also used to raise funds; good brand reputation in the
community, which is the most greatest point to be stressed; there are no
same orientated regional competitors; good support from doctors and
hospitals in the region; it is also exempt from paying taxes and is registered at
Australian Taxation Office as tax deductable for its supporters.
Weaknesses: as with most non-profit organisations, the Foundation
has financial limitations, limited staff and heavily relies on donations and
volunteers, and therefore struggles to embrace all the necessities of the
community, especially those in its regional areas. The Foundation has not
prepared itself for necessary changes in the future, as older groups are
becoming increasingly technologically savvy.
Opportunities: a rewarding opportunity exists to increase its
partnerships with companies sympathetic to the Foundations mission. This
can be achieved by offering educational seminars at these companies,
stimulating an increased awareness within different target markets and the
possibility to raise more funds. Furthermore, the Foundation can increase its

exposure to youth in order to raise its number of volunteers and its awareness
though social media and school seminars. To resolve the Foundations
weakness to change as described above, an opportunity exists to explore
better technologic tools, (e.g. online seminars, apps, interactive online health
advice) as technological use is becoming more widespread.
Threats: Despite the indirect competition previously mentioned, the
Foundations can be impacted by economic crises. For example, the current
mining crises in Western Australia may already be affecting the Foundations
fundraising revenue streams, as people tend to decrease contributions to nonprofit organisations when they are facing financial difficulties.
Unawareness of the community and disregard from the government
are concerns that the Foundation is conscious of.

Macro environment
On the macro environment side, the Foundation also faces some
threats. It PESTEL analysis framework is used below to classify the risks that
should be addressed:
Factors

Arthritis & Osteoporosis WA

P Political

- The work of the Foundation can be

influenced by political action e.g. the
governmental support given to help
the local communities in rural areas.
- Changes on social policies and
regulations can impact the Foundation.

E Economic

- Interest rate and financial markets

are concerns, as the Foundation has a

high amount of resources invested and
rely partially on the financial revenue
- Unemployment rate and economic
crisis such as the current mining
crises.
S Social

- Increases in the age of the

population and the number of people
suffering with related diseases as
forecasted by Deloitte Economic
Report, 2012.

T Technological

- Increased competition due to the

digitalisation of the non-profit health
market. A higher reliance on
technology is therefore required to
meet the Foundations fundraising
needs. Electronic and online
applications can be developed and
implemented in websites and mobile
phone services to engage with market
audiences more effectively.

E Environmental

- Limited number of clinics and other

health facilities located within more
rural and remote regions.
- During the cold weather there is an

increase in the symptoms experienced

by those suffering from arthritis,
osteoporosis and other related
diseases. Consequently, during winter
there is an increased demand for
support for those suffering from such
medical conditions.
L Legal

The Foundation has to abide by laws

that specifically concern the way in
which a non-profit organisation must
operate.
Changes in the tax deductable award
from the Australian Taxation Office
can be a high impact issue.

Marketing Activities
The Foundation has numerous marketing activities such as:
-

Fremantle International Portrait Prize 2015, is the most successful

campaign supported by Arthritis & Osteoporosis WA for many years.

Camp Freedom is organized and coordinated by the organisation once

a year and target children. This years its celebrated its 25th year of
operation.

The partnership with Ms Suzie Edward May, author of the book

Arthritis, Pregnancy and the Path to Parenthood, promotes the book
and supports Ms Suzie on lobbying within the federal government.

The Arthritis Getaway (TAG), held during a weekend, targets youth

volunteers of the Foundation and attempts to maintain a support team.

Social media is also one of the on-going marketing activities via

Facebook and Twitter.

The Foundation frequently promotes specific seminars to attract more

audiences.

In 2014, the Foundation supported Mr Mike Pauly, who travelled

15,000 km around the coast of Western Australia on his bike to raise
funds for the organisation. The project had mass-national coverage
and was celebrated as a successful campaign.

Key Marketing Objectives

The aim of the marketing objectives is to maintain a high level of
attention concerning the organisations mission, in order to attract more
regular donors as well as volunteers for the company.
Be transparent and ethical to maintain peoples trust and increase
awareness around Western Australia in regard to arthritis, osteoporosis and
related diseases.

Budget
The company currently has seven projects in analysis and an
according budget as presented by Lomma and Labuschagne, 2015:
1- Social Media Campaign Budget AU$ 10,000
2- Advertising Campaign to promote its social line services and online
courses to rural and remote areas Budget AU$ 5,000

3- Fundraising Event that generates a revenue of AU$ 50,000

Budget AU$ 25,000
4- An Awareness campaign to dispel the myth that A&O occurs only in
old people Budget AU$ 100,000/250,000
5- Develop a cause related sponsorship opportunity for Arthritis &
Osteoporosis WA that would raise funds and be beneficial to the
sponsor Budget not determined.
6- Create a strategy to attract people to donate more regularly
Budget AU$ 25,000
7- An awareness campaign aimed at primary school students on the
importance of health bones and joints using its website
www.bonesandjoints.com.au - Budget AU$ 100,000

Conclusion
Arthritis & Osteoporosis WA is a solid and well-established non-profit
organisation in Western Australia with an immaculate reputation and a strong
potential to expand its performance. Its customers needs are well known and
its services are well developed by the company.
Customer perceived value and satisfaction are highly recognised and
the community has a positive perception of the company. Its brand market is
also stable and consistent.
There are opportunities to be explored on B2B and room for
improvement on digital marketing as well as targeting youth audience.

Recommendation
Arthritis & Osteoporosis WA has an enormous opportunity to expand
their target marketing on health-orientated companies, and creating
partnerships with health retail industry. Furthermore, the Foundations could
offer their services such as seminars, talks and promotions to companies and
increase their interactivity with such stakeholders to leverage its fundraising.
It may be beneficial to intensify its social media involvement and create
interactive tools for smartphones in order to supply the digital market and
attract audiences from remote areas.

References
Armstrong, Adam, Denize, and Kotler. 2012. Principles of Marketing. 5th ed.
Australia: Pearson.
Arthritis & Osteoporosis WA. 2015. Accessed August 18,
https://www.arthritiswa.org.au/.
Arthritis and Osteoporosis Victoria. 2013. A Problem Worth Solving: The
Rising Cost of Musculoskeletal Conditions in Australia. Accessed August
18,
http://www.arthritisvic.org.au/Research/AOV-FundedResearch/Completed/A-Problem-Worth-Solving/APWS.aspx/.
Arthritis Foundation of WA Incorporated. 2009. Constitution as amended April
2009.
https://www.arthritiswa.org.au/useruploads/files/constitution_signed_as_a
mended_2009.pdf
Arthritis Today. Arthritis & Osteoporosis WA. Winter 2014.
Arthritis Today. Arthritis & Osteoporosis WA. Autumn 2015.
Bones and Joints School. 2015. Accessed August 18,
http://www.bonesandjoints.com.au/.
Director of Arthritis Foundation of WA Incorporated. 2014. Annual Financial
Report 2014.
https://www.arthritiswa.org.au/useruploads/files/arthritis_foundation_of_w
a_inc_-_2014_annual_report_combined.pdf
IBISWorld. 2012. Industry Report X0021 Charities & Not-for-Profit
Organisations in Australia. IBISWorld Industry Report.
http://www.ethicaljobs.com.au/files/2012_NFP_report.pdf

Lomma, Lily and Labuschagne, Kirsty. 2015. Interview of Lily Lomma and
Kirsty Labuschagne, interview by Curtin MBA (Global) Students, August
10, Curtin University, Bentley, W.A.