Marketing Plan For Red Marketing Plan For Red Cross Biomedical Blood Cross Biomedical Blood

ServicesServices

Michael E. NavickyMichael E. Navicky

forfor

PADM 7040PADM 7040

ObjectivesObjectives

Provide the nation with a variety of blood Provide the nation with a variety of blood products that are as safe as possible. products that are as safe as possible. Set new standards for safety and quality. Set new standards for safety and quality.

OrganizationOrganization Biomedical Services is a separate division of the American Red Biomedical Services is a separate division of the American Red

Cross. Biomedical Services is further divided into:Cross. Biomedical Services is further divided into: Blood ServicesBlood Services Tissue ServicesTissue Services National Testing LabsNational Testing Labs Research and DevelopmentResearch and Development

The American Red Cross operates 36 Blood Services regions The American Red Cross operates 36 Blood Services regions nationwide.nationwide.

CustomersCustomers

The American Red Cross provides 6,000,000 units of The American Red Cross provides 6,000,000 units of blood each year to over 3,000 hospitals. They will blood each year to over 3,000 hospitals. They will deliver blood anywhere in the nation there is a need. deliver blood anywhere in the nation there is a need.

The nationwide need is 38,000 units per dayThe nationwide need is 38,000 units per day Per patient need can widely range depending on the medical Per patient need can widely range depending on the medical

conditioncondition The American Red Cross collects and distributes half the The American Red Cross collects and distributes half the

nations blood supplynations blood supply While those in need are customers the donors should While those in need are customers the donors should

also be treated as such. The Red Cross served 3.85 also be treated as such. The Red Cross served 3.85 million donors in 2003.million donors in 2003.

CompetitionCompetition Competition from other volunteer donation organizations is low in Competition from other volunteer donation organizations is low in

fact they work together with many:fact they work together with many: America’s Blood CentersAmerica’s Blood Centers Armed Services Blood ProgramArmed Services Blood Program

Some for profit companies pay donors for their contribution. Some for profit companies pay donors for their contribution. Companies do this because certain medical products require blood Companies do this because certain medical products require blood components to be synthesized. components to be synthesized.

As will be mentioned later the American Red Cross prefers unpaid As will be mentioned later the American Red Cross prefers unpaid donors because of the inherent safety.donors because of the inherent safety.

Strengths and OpportunitiesStrengths and Opportunities

These are both also challenges but it shows we aren’t at max capacity just These are both also challenges but it shows we aren’t at max capacity just that we need to attract others to donate:that we need to attract others to donate:

60% percent of U.S. population eligible only 5% donate. 60% percent of U.S. population eligible only 5% donate. The average donor is a college-educated white male, between the ages The average donor is a college-educated white male, between the ages

of 30 and 50, who is married and has an above-average income.of 30 and 50, who is married and has an above-average income. Discards only 2% of blood collected mostly false positives but guarantees a Discards only 2% of blood collected mostly false positives but guarantees a

safe blood supplysafe blood supply Technology advances always offer opportunities for good a couple are:Technology advances always offer opportunities for good a couple are:

Nucleic Acid Testing, this more accurate AIDS/HIV test will reduce the Nucleic Acid Testing, this more accurate AIDS/HIV test will reduce the amount of discarded blood.amount of discarded blood.

Newer and better blood substitutes decrease dependence on donationsNewer and better blood substitutes decrease dependence on donations The Red Cross implemented a $287 million upgrade program in 1999 that The Red Cross implemented a $287 million upgrade program in 1999 that

improved its infrastructure and ability to serve customers that will take it far improved its infrastructure and ability to serve customers that will take it far into the 21into the 21stst century century

ChallengesChallenges Restrictions on large groups that are inherently willing to donate. The military in particular, with 2/3 of Restrictions on large groups that are inherently willing to donate. The military in particular, with 2/3 of

the military having been deployed over the last few years most members are ineligible to donate for at the military having been deployed over the last few years most members are ineligible to donate for at least a year.least a year.

Donors can be deferred for several reasons for different periods of time depending on the Donors can be deferred for several reasons for different periods of time depending on the condition a few examples are:condition a few examples are:

• Receive a blood transfusion in the United Kingdom after 1980, you are permanently Receive a blood transfusion in the United Kingdom after 1980, you are permanently disqualifieddisqualified

• Get a tattoo in a state with no tattoo regulations, wait 12 monthsGet a tattoo in a state with no tattoo regulations, wait 12 months• Have a fever, wait until the fever is overHave a fever, wait until the fever is over• A detailed list can be obtained at this website: A detailed list can be obtained at this website:

http://www.redcross.org/services/biomed/0,1082,0_557_,00.htmlhttp://www.redcross.org/services/biomed/0,1082,0_557_,00.html

Blood has a shelf life of 42 days, technology may help extend this but constant giving is requiredBlood has a shelf life of 42 days, technology may help extend this but constant giving is required Seasonal lulls, the winter and summer months both see a decline in giving because of busy Seasonal lulls, the winter and summer months both see a decline in giving because of busy

schedules, vacations, etc.schedules, vacations, etc. Both also opportunities but challenge is to educate, provide access and incentive for broader Both also opportunities but challenge is to educate, provide access and incentive for broader

donationsdonations 60% percent of U.S. population eligible only 5% donate60% percent of U.S. population eligible only 5% donate The average donor is a college-educated white male, between the ages of 30 and 50, who is The average donor is a college-educated white male, between the ages of 30 and 50, who is

married and has an above-average income. married and has an above-average income.

Primary Marketing ToolsPrimary Marketing Tools

Website provides a vast amount of informationWebsite provides a vast amount of information Several ways to make a donationSeveral ways to make a donation

• Will identify the closest center to your homeWill identify the closest center to your home• Will give you opportunity to enroll in mailings and phone calls that Will give you opportunity to enroll in mailings and phone calls that

will remind you when you can donate againwill remind you when you can donate again• Will provide help to organizations interested in organizing a blood Will provide help to organizations interested in organizing a blood

drivedrive Donation process itself to include readings and videosDonation process itself to include readings and videos

2003 Save a Life Tour2003 Save a Life Tour Used to raise awareness, the tour consisted of two vehicle Used to raise awareness, the tour consisted of two vehicle

convoys each with a mobile museum and a rolling classroom. convoys each with a mobile museum and a rolling classroom. The tour lasted from May to November and visited 300 The tour lasted from May to November and visited 300 communities and attracted 38,000 visitors. Some counties communities and attracted 38,000 visitors. Some counties visited boosted donations by 20%.visited boosted donations by 20%.

Building MembershipBuilding Membership

The customer for this product will always be The customer for this product will always be available and the American Red Cross has available and the American Red Cross has established itself as a premier source of quality established itself as a premier source of quality blood products.blood products.

While the Red Cross needs to continue While the Red Cross needs to continue informing its customer base of its safe and informing its customer base of its safe and quality blood supply the real marketing challenge quality blood supply the real marketing challenge is attracting eligible donors.is attracting eligible donors.

Primary challenge seems to be awareness of the Primary challenge seems to be awareness of the blood supply situation and donation processblood supply situation and donation process

Better Use of MarketingBetter Use of Marketing

Offer/market opportunity matrix (Fig 3-6, page Offer/market opportunity matrix (Fig 3-6, page 81) two situations in which to apply this matrix 81) two situations in which to apply this matrix Blood for those in need: The Blood for those in need: The offeringoffering of blood to of blood to

those in need can change little. Already considered those in need can change little. Already considered safe, reasonable gains in safety and availability are safe, reasonable gains in safety and availability are expected. New expected. New marketsmarkets for blood appear to be for blood appear to be almost non-existent considering the high-demand and almost non-existent considering the high-demand and limited supply.limited supply.

Donors of blood: Both the Donors of blood: Both the offeringoffering and the and the marketmarket can change and expand to attract new donors. can change and expand to attract new donors.

Better Use of Marketing (Con’t)Better Use of Marketing (Con’t)

Blood Donors offer/market matrix Blood Donors offer/market matrix continuedcontinued Current offering includes:Current offering includes:

• Experience a slightly uncomfortable physical Experience a slightly uncomfortable physical experienceexperience

• Time out of your day/inconvenience of donatingTime out of your day/inconvenience of donating• All in exchange for helping others, feeling good All in exchange for helping others, feeling good

about yourself, saving a life.about yourself, saving a life. Current market includes:Current market includes:

• White males, 30-50 years of age, married with an White males, 30-50 years of age, married with an above average income and college educationabove average income and college education

Better Use of Marketing (Con’t) Better Use of Marketing (Con’t) suggested changes to offeringsuggested changes to offering

Changes could come from:Changes could come from: Less time out of your day/more convenient donatingLess time out of your day/more convenient donating Less discomfortLess discomfort Different compensationDifferent compensation

The Red Cross rules out monetary compensation The Red Cross rules out monetary compensation accepting only volunteer donations. This practice will not accepting only volunteer donations. This practice will not change due to Red Cross culture and policychange due to Red Cross culture and policy

Less discomfort is not something to focus on as Less discomfort is not something to focus on as discomfort is already minimaldiscomfort is already minimal

Less time out of your day and more convenient donating Less time out of your day and more convenient donating should be the major focus.should be the major focus.

More use of mobile donation centers. More use of mobile donation centers. More blood drives at locationsMore blood drives at locations Go to the donors don’t have them come to youGo to the donors don’t have them come to you

Better Use of Marketing (Con’t) Better Use of Marketing (Con’t) suggested changes to marketsuggested changes to market

Changes could come from targeting different:Changes could come from targeting different: Age groupsAge groups Ethnic groupsEthnic groups Income levelsIncome levels Education levelsEducation levels

More research would determine which groups to target. More research would determine which groups to target. An additional short coming seems to be that the Red An additional short coming seems to be that the Red

Cross relies on new groups to approach the Red Cross Cross relies on new groups to approach the Red Cross in order to organize drives.in order to organize drives.

Red Cross representatives should seek out and Red Cross representatives should seek out and approach community leaders that would be able to approach community leaders that would be able to motivate large groups of donors.motivate large groups of donors.

Frequently Asked Questions from Frequently Asked Questions from the Blood Services websitethe Blood Services website

Why doesn't the Red Cross pay its blood donors to increase the blood supply? Why doesn't the Red Cross pay its blood donors to increase the blood supply?

Scientific data shows that people who donate blood for altruistic reasons are the safest blood Scientific data shows that people who donate blood for altruistic reasons are the safest blood donors. As an extra layer of safety to the blood supply, Red Cross accepts only volunteer blood donors. As an extra layer of safety to the blood supply, Red Cross accepts only volunteer blood donors donors

(http://www.redcross.org/faq/0,1095,0_379_,00.html)(http://www.redcross.org/faq/0,1095,0_379_,00.html)

Why does the Red Cross sell blood and blood products that are given freely by donors? Why does the Red Cross sell blood and blood products that are given freely by donors?

The American Red Cross is a nonprofit organization that supplies almost half of the nation's The American Red Cross is a nonprofit organization that supplies almost half of the nation's blood supply by working with more than 4 million donors and 3,000 hospitals. We rely on the blood supply by working with more than 4 million donors and 3,000 hospitals. We rely on the generous gifts volunteer blood donors provide us. In order for the Red Cross to make that gift generous gifts volunteer blood donors provide us. In order for the Red Cross to make that gift available to patients in need, we must collect, store, test and process the blood. There are available to patients in need, we must collect, store, test and process the blood. There are significant costs associated with each of these processes, and in order for us to continue making significant costs associated with each of these processes, and in order for us to continue making one person's donation available to someone else who needs it, we must charge for the testing one person's donation available to someone else who needs it, we must charge for the testing and processing of the blood to recoup these costs. and processing of the blood to recoup these costs.

(http://www.redcross.org/faq/0,1095,0_379_,00.html)(http://www.redcross.org/faq/0,1095,0_379_,00.html)

How can you help?How can you help?

Go to this website or call this number for Go to this website or call this number for information on drives, locations or the information on drives, locations or the donation process itself.donation process itself.

American Red Cross: American Red Cross:

www.givelife.orgwww.givelife.org

1-800-GIVE-LIFE (1-800-448-3543)1-800-GIVE-LIFE (1-800-448-3543)

It will take an hour of your time and one It will take an hour of your time and one pint can help save as many as three lives.pint can help save as many as three lives.