canadian blood services

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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canadian blood services

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