Transcript HUD Social Enterprise Pilot

Social Enterprise Conference
October 30-31, 2006
Major cultural shift from “need and handout” to
“want and buy”
Social Enterprise Conference
October 30-31, 2006
+ All the people who have a specific need or
want and are willing and able to purchase
service or product to satisfy that need.
+ Planning and executing strategies to reach
customers.
– Educational marketing or outreach

Market development
– Barriers to reaching clients through traditional
marketing vehicles:

Literacy, language, location, topography, etc.
– Communications /PR efforts to educate
internal/external stakeholders impacted by SE:

Community, donors, public, etc.
– Budget and time constraints
– Who pays
All things outside of your control that can influence
your enterprise:
+ Weather
+ Politics
+ Economy
+ Competition
+ Infrastructure
+ Suppliers & buyers
+ Law
+ Technology
+ Social Need & Market Failure
– Social problem enterprise is
trying to mitigate
– People impacted by social
problem
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Opportunities
Barriers
Industry dynamics
Demand
Market Segments & Size
Trends
Competitors
+ Target Market
+ Objectives
+ Marketing mix: 4 Ps
– Product
– Promotion
– Price
– Place
+ Sales Plan
+ Social Enterprises have
several stakeholders they
often view as “customers.”
+ Clients are “beneficiaries”
of social enterprise
services or social impact.
+ Target market are those
buying social enterprise
products and services.
Social enterprises may have several customer levels
User
Purchaser
Influencer
Clinical services
(indigent)
Patient
Donor
Government
policy
Elder services
Senior
Clients’ children
Competitors
Child health
Child
Parent
Parent
Competitors
Pharmacy
Patient
Insurance
Pharma
Companies
Laboratory
services
Public Clinic
State
Government
policy
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Their wants
Preferences
Likes and dislikes
Habits
Lifestyle
Demographics
+ … ALL the things that motivate them to make
a purchasing decision
+ Should motivate customers to purchase your product or
service.
+ The promotional message can emphasize particular
benefits:
– “Convenient one-day service”
– “Always fresh”
+ A message can also exploit a market niche:
– “Serving Washington Area New Mothers"
+ It can also be more subtle, triggering a customer's
emotions or self-image:
– “Entrusted senior care professionals”
– "You deserve a break today”
– “Peace of mind for you and your family”
Objective
Marketing Strategy
Mix
Increase market share in X county
by 5% in first 1st quarter.
Introductory membership to X county
residents for 25% discount
Price
Reach 200 new families in
Vietnamese community in 2007
Launch culturally appropriate
Vietnamese language translation
clinical practice
Expand clinical services to Y & Z
rural areas including A,B, C border
towns
Introduce mobile clinical unit which
will circulate along border
Place
Increase infant immunization 25 %
among immigrants babies.
Aggressive multi-lingual campaign
using flyers, and community
information meetings to encourage
immunization.
Promotion
Product
Example: Community clinics for un/underinsured
Existing Product Existing Market
Income from
Social Service
Highest mission
relevance; lowest risk
Income related to
Social Service
Medium mission
relevance;
New Product Existing Market
Income from
extension
of Social Service
High mission relevance;
medium risk
Income not related to
Social Service
Low mission relevance;
High risk
medium risk
Existing Product New Market
New Product New Market
Community Clinic
Features
Benefits
Cooperative Rural Pharmacy
Features
Benefits
Evening and
Convenient;
weekend hours reduces lost
hours
wages
Generic drugs
Economical
Sliding fee
affordable
Based in
community
Convenient;
accessible
Qualified
doctors
Quality; peace
of mind
Member
insurance
Lowers stress;
worry free
Preventative
healthcare
Higher quality
of life
Sells basic
health/hygiene
products
Healthier;
fewer illnesses
+ Print media
+ Broadcast media
+ Direct mail
+ Tradeshows
+ Merchandising displays
+ Gifts & premiums
+ Special offers
+ Billboards
+ Information meetings
+ Public relations
+ Telephone directory
+ Brochures
+ Posters/Flyers
+ Cross-selling
+ Referrals
+ Personal sales
+ Informal marketing
+ Web
Vehicle Reach
Product
#1
Product
#1
Fit
Frequency Cost
“Price Ceiling”
“Price Floor”
Social Enterprise Conference
October 30-31, 2006
Sales & Costs
Profit
Loss
0
# of Units Sold
Use subsidies wisely
Social Enterprise Conference
October 30-31, 2006
Profit
For biz &
program
investment
Social Subsidy
Breakeven Before
Social Costs
Enterprise Revenue
Social Expense
Breakeven
AFTER
Social Costs
Business Expense
Enterprise
Revenue
Subsidizes
Social costs
Years
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Volunteer time
ED + time on SE
Wage premium
Wastage
Lower employee productivity
Time spent on employee personal problems/social
programs
Higher insurance rates
Supervisory staff (i.e. job coaches)
turn over
Time for SE fundraising
+ The place (distribution) strategy articulates how you
will get your products or services to your customers.
+ Distribution strategy is often a key for social
enterprises that serve clients with barriers to
ACCESS:
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Markets
Healthcare
Jobs
Information
+ Confuse marketing message and mission
+ Failing to assess demand
+ Assuming customer loyalty can be built on social good
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instead of quality
Build it and they will come – failure to market
Lack of operational capacity/acumen - inability to deliver on
basics
Failure to listen to customers/watch the market &
incorporate feedback
Inappropriate marketing vehicles for reaching customers
Confuse “payer” and “user”
Confuse clients and customers
– Creative/unconventional marketing approaches
– Take business to clients – emphasis on distribution
– Price and payment of services based on clients’ abilities to
pay or third party payer
– Quality, Consistency, Reliability are king
– Brand
– Test market new products
– Vigilant about setting price
– Keep your eyes on the prize
– Flexibility and responsiveness
– Social benefit +
– Mission leverage in other marketing