Marketing audit for non-profit organisation ‘Comic Relief’
Comic relief was set up and launched on Christmas Day 1985. The brainchild of comedian Lenny Henry, appalled at the abject poverty in Africa and the extreme number of disadvantaged communities living in basic conditions and little or no education.
Determined to do something positive for these communities, whilst acknowledging poverty existed also in the UK, he was determined that fundraising activities could raise funds which would be used to address the problems faced by the communities.
An extremely popular and widely respected comedian, Lenny Henry was determined that unlike any other fundraising events or organisations, the emphasis would be on comedy and having fun whilst raising money. He enlisted the help of colleagues, the Television channels and corporate sponsors. The public at large were also encouraged to undertake unusual and fun activities for the good of the common cause. Live events were screened on national television and around £15million was raised (www.comicrelief.com). The first comic relief ‘red nose day’ was launched in 1988 and it has been a bi-annual event since then with over £300million raised in 2003, a 200% increase since it’s inception.
Internal operating environment
Comic relief is a registered charity and run as a traditional not for profit organisation, with a Chairman, Mr Peter Bennett- Jones, overseeing the management of the organisation, a Vice Chair, Treasurer and Trustees who are responsible for the management decisions on behalf of comic relief.The board meets 8 times per year. In addition to this two of the trustees are also active within active groups of experts who meet together in committees. Their remits are to assess potential projects and make grant recommendations to the board for consideration. In addition to this, there is an office based staff for administration purposes and field based staff, who oversee the projects, paid for from surplus funds (residual income after operating costs, and reserves).
External operating environment
In the UK the commitment is to help those disadvantages by poverty and social injustice (Mission). In the UK, circumstances are likely to be as a result of changing family circumstances or lifestyle changes, whilst those in poor countries may suffer the impact of low levels of education, lack of money, lack of medical support and so on. Hence the creation and maintenance of schools is a main objective, as is the general education of the adults in health matters and work skills, to enable them to maintain their future by farming and other production activities.
Whilst in the UK, technology is accessible to all, but the cost of keeping up to date high with shorter product life cycles, the target customer in the poorer nations will not have access to such, nor the educational abilities to technologies. In addition, technical tools cost money that the poor don’t have, nor the money to keep up to date. Most projects, therefore, concentrate on training in farming, building, and irrigation techniques, so that the cost of production remains sustainable.
The money supply for many in the poorer countries relies totally on the ability to achieve a good harvest, or to sell home made goods and that there is a demand for the goods. Comic relief aims to teach communities how to be self sufficient and not rely on market forces or modern energy supplies, such as electricity.
Government stability and lack of / no support for impoverished communities are probably the key issue in developing countries. Whilst in the UK changing policies of successive governments’ can impact on the vulnerable.
The competitive environment
The threat of entrants is low, with tens of thousands of charities determined to help disadvantaged people in the UK and abroad. Comic relief’s broad remit and sound financial base means that the threat of suppliers, other charities, is therefore also low as many appear to be targeting similar groups of people. With so many charities to choose from, the threat of buyers, those who donate/ sponsor activities, is probably most important. Buyers will probably choose the charity/ charities to which they donate as a result of brand association or the power of advertising. Because comic relief has a sound financial base on which to work, and the commitment of television and key sponsors, they will not be adversely affected by the power of buyers, unless a key sponsor withdraws. This loyalty was recently ‘tested’ over the last 3 months. Just before Christmas the ‘Live Aid’ charity re-released the popular ‘do they know it’s Christmas’ CD to raise funds for the Sudan, following on from this there was the Tsunami appeal to which the British public pledged millions of pounds and only two months later the 2005 ‘red nose day’ which generated millions of pounds. (Final figures not yet available). Concerns about charity fatigue, proved unfounded. With regard to the threat of substitutes, the poverty in the world is such an issue that it is almost impossible for any one charity or organisation to totally dominate. Rather than competition and competitive advantage, charities, like comic relief are likely to collaborate with other organisations and governments for the good of all.
Networking/ goodwill
It is through networking that awareness of comic relief has grown. It started with Lenny Henry, who enlisted the help of his colleagues, together they lobbied the Television channels for coverage and celebrities were encouraged to take part, from all disciplines and representing all ages and tastes. Numerous celebrities are listed as keen supporters of the charity and like the trustees, give freely of their time, for the benefit of comic relief. This is a win/win situation, the reputation of the charity grows with the calibre of the celebrities and organisations associated with it, whist the organisations and celebrities have their own credibility, in the eyes of the donating public, raised by association with the charity. Goodwill extends beyond celebrity, phone companies cap the costs of their charges (win/win, hoping that more people will phone and pledge donations), to transport companies covering the costs of logistics, to retailers sponsoring activities.
Fundraising/sponsorship
Not for profit organisations rely heavily on sponsored and fundraising activities. The bi-annual red nose day is the main income generating activity, with sport relief the second main activity for comic relief. It is regularly reported that millions of people are involved in sponsored activities from school children walking in fancy dress costumes to pensioners undertaking daring activities to whole communities organising events. Funds come from three main areas, 1) Donations 2) sponsorship of activities and 3) sales of branded products.
Branding
The core values are a commitment to helping end poverty and social injustice in the UK and the poorest countries in the world. (www.comicrelief.com/mission ), whilst the corporate identity is the red nose, a mark of a clown. The red nose can be seen on corporate advertising campaigns, whether on a printed leaflet or a 3D image on the TV screen. The public can show that they are associated with the brand by purchasing a red nose, for their faces, for their cars even to wrap around the office block! The red nose logo is also apparent on T shirts, pants (say pants to poverty campaign) and other items to suit all budgets.
PR awareness
The main PR medium used by comic relief is TV. Comic relief, themselves, create a documentary, presented by celebrities who give freely of their time , showing projects undertaken, and in progress, enabled by sponsorship money. This is shown to the general public on red nose night and watched by millions of viewers, who then pledge donations.Key sponsors, such as the retail chain Sainsbury’s also promote their association with red nose day via the Television medium raising awareness of them and their products as well as the charity. This is free advertising for comic relief. Local television channels follow the activities and successes of locally sponsored events, which are often detailed in the local press. Journalists write heart rendering reports for national newspapers and certain issues can and are debated at UK government level. Governments talk with other governments and like the networking approach, the word spreads and commitment to support projects and take up lobbying issues can take on a global meaning.
Summary
The structure of Comic Relief is very typical of a not for profit organisation, with management by committee, fed by committees, staffed by volunteers, who meet 8 times per year. By default this means that decision making is lower than in a commercial company. But that perceived weakness does not overcome the organisations obvious strengths, the ability to entice volunteers to give freely of their time to help with fundraising, nor the ability to access decision makers within governments and organisations. The fact that income generation has increased by 200% must be down to the goodwill of sponsors generating advertising awareness campaigns and the support of public and celebrity figures who want to be associated with the campaign and public goodwill.
Whilst the project work is ongoing, the general public do not become aware of such until the bi-annual ‘red nose’ event. In addition, work with impoverished people in the UK is not highlighted to the same extent as that in the developing worlds. The appointment of a Trustee responsible for marketing and promotional activity to provide regular project updates in the media may help.
Bibliography
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Caeson, D., Cromie, S., McGowan, P., Hill, J. (1995)
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Johnson, G. Scholes, K (2002)
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Lynch, R (2003) Corporate Strategy 3rd edition. (London: Financial Times Pitman)
Tags: Africa, audit, awareness, branding, fundraising, networking, organisation, poverty, PR, sponsorship
