Situation Analysis Dry July Foundation Brianna Black N9709894 PDF

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Tutorial 1 @ 1pm on Thursday With Bianca Sumner

DRY JULY FOUNDATION SITUATION ANALYSIS AMB220

BRIANNA BLACK N9709894 Word Count: 1,281 words

Table of Contents 1.0 Product Analysis ................................................................................................................... 2 1.1 Product ............................................................................................................................. 2 1.2 Category and Competitors ............................................................................................... 2 1.3 Relevant Theory ............................................................................................................... 5 1.4 Regulation and Ethics for Advertising the Dry July Foundation ....................................... 9 2.0 Target Audience Analysis ................................................................................................... 10 2.1 Segmentation of the Target Audience ........................................................................... 10 2.2 Influential Factors on the Target Audience’s Decision-Making ..................................... 13 2.3 Consumer Insight ...........................................................................................................14 3.0 Reference List ..................................................................................................................... 15 4.0 Appendix ............................................................................................................................ 18 Appendix A: Four Largest Organisations in the Industry ..................................................... 18 Appendix B: Direct Competitor Reports...............................................................................19 Australian Cancer Research Foundation (2016) ............................................................... 19 Cancer Council Australia (2016) .......................................................................................20 CanTeen (2015) ................................................................................................................. 21

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1.0 Product Analysis 1.1 Product Originally founded in 2007, by the co-founder and current CEO, Brett Macdonald, the Dry July Foundation (DJF) has a mission to raise money to improve cancer patients lives through the Dry July challenge (Dawson, 2017, para. 10; Dry July, 2017a; Dry July, 2017b; Dry July Foundation, 2016). The Dry July campaign challenges Australians to abstain from alcohol for the month of July (Dawson, 2017, para. 9; Dry July, 2017a, para. 3; Dry July, 2017b, para. 3; Triple M Brisbane, 2017, para. 4).

From this Dry July challenge, the foundation hopes to encourage participants to continue to refrain from drinking for the rest of the year (Dry July, 2017d, para. 3). However, the foundation’s focus is not solely on reducing alcohol consumption (Dry July, 2017c, para. 1). The participants select a cancer support organisation to fundraise for, which goes towards improving patient comfort, care and wellbeing (Dry July, 2017a; Dry July, 2017e).

1.2 Category and Competitors The industry definition for not-for-profit (NFP) organisations is organisations with objectives other than financial gain, that often have little appeal to profit-making enterprises (IBISWorld, 2012). The NFP organisations within this industry, are often labelled as the key factor, holding Australian communities together, with currently a total of over 600,000 NFP organisations (IBISWorld, 2012). In the 2011/12 financial year, NFP organisations achieved a total revenue of 105 billion dollars (IBISWorld, 2012). With an annual industry growth of 3.5 percent in 2007 to 2012, the annual growth increased by 0.5 percent, to four percent, in 2012 to 2017 (IBISWorld, 2012).

Moreover, in 2012, eighty-four percent of Australia’s general population made a charitable donation, with sixty-nine percent going to a cancer charity (Survey Monkey, 2012, para. 3). Specifically, for the DJF, over the past decade, over twenty-five million dollars has been raised (Dawson, 2017, para. 10; Triple M Brisbane, 2017, para. 5). And as of the end of August, this year, 19,266 people had registered for Dry July, and 4,305,919 dollars had been raised (Dry July, 2017b).

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In the NFP industry, there are no major market leaders due to low market concentration levels (IBISWorld, 2012). Together, the four biggest organisations (refer to Appendix A) make up less than ten percent of the industry revenue (IBISWorld, 2012). Furthermore, the industry has a steady trend of medium competition. Therefore, the DJF’s direct competitors are the Australian Cancer Research Foundation, Cancer Council Australia, and CanTeen (IBISWorld, 2012). For an in-depth analysis on each competitor, refer to Appendix B.

Therefore, as shown in Figure 1, the DJF is unable to raise as much money as its three direct competitors (refer to Figure 1). This is most likely a result of its late start into the industry and its significantly lower market share (as shown in Table 1).

Total Funds Raised in 2015/16 35000000

30000000

Total Funds ($)

25000000

20000000

15000000

10000000

5000000 0 Australian Cancer Research Foundation

Cancer Council Australia

CanTeen

Dry July Foundation

Not-For-Profit Organisation

Figure 1. Dry July Foundation and direct competitors’ total funds raise for the financial year of 2015/16. Adapted from “Annual report for the year ended 31 December 2016,” by Australian Cancer Research Foundation; “Annual Financial Report,” by Cancer Council Australia; “Annual Financial Report,” by CanTeen; “Dry July Foundation,” by Dry July.

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Table 1. Organisation Market Share (2012) Australian Cancer Research Foundation 0.011% Cancer Council Australia 0.018% CanTeen 0.019% Dry July Foundation 0.004% Adapted from “Dry July 2012/13 Annual Report,” by Dry July; “Annual report for the year ended 31 December 2012,” by Australian Cancer Research Foundation; “Financial report,” by Cancer Council Australia; “Canteen,” by ChangePath; “Charities and not-for-profit organisations in Australia,” by IBISWorld.

In the month of July, alone, approximately 11,181 Australians will be diagnosed with cancer (Dry July, 2017a, para. 1). Therefore, donations are vital in assisting cancer research and patients. 2014-15 saw 80.6 percent of legal drinking age Australians, consume alcohol (Australian Bureau of Statistics, 2017). A daily average of no more than two standard drinks, and a single occasion maximum of four standard drinks, is the alcohol consumption guideline, to avoid negative health consequences (Commonwealth of Australia, 2009). However, in 2014-15 17.4% of adults exceeded the daily average guideline, and 44% of Australian adults consumed more than the single occasion guideline, at least once (Australian Bureau of Statistics, 2017). With the help of Lonergan Research, the DJF discovered that Australians spend 91.5 million hours hungover each month (Dry July Foundation, 2016). Further, the calories in these alcoholic drinks, are equal to the same amount of fat that can fill three Olympic-size swimming pools (Dry July Foundation, 2016). Therefore, asking consumers to refrain from alcohol creates a challenge for Australians to participate in.

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1.3 Relevant Theory The Foote, Cone and Belding (FCB) grid outlines four primary advertising planning strategies (Belch, 1951). It creates an effective way for people involved in the marketing communication planning process, to evaluate consumers and thus, develop communication strategies based of these evaluations (Belch, 1951). A detailed FCB grid can be seen in Figure 2.

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Thinking Feeling High Involvement 1. Informative (thinker) 2. Affective (feeler) Car-house-furnishingJewellery-cosmeticsnew products fashion apparelmodel: Learn-feel-do motorcycles (economic?) model: Feel-learn-do (psychological?) Possible implications Test: Possible implications Recall Test: Diagnostics Attitude change Media: Emotional arousal Long copy format Media: Reflective vehicles Large space Creative: Image specials Specific information Creative: Demonstration Executional Impact 4. Self-satisfaction (reactor) Low Involvement 3. Habit formation (doer) Food-household Cigarettes-alcoholitems confectionery model: Do-learn-feel model: Do-feel-learn (responsive?) (social?) Possible implications Test: Sales Media: Small space ads 10-second IDs Radio; POS Creative: Reminder

Possible implications Test: Sales Media: Billboards Newspapers POS Creative: Attention

Figure 2. The Foote, Cone and Belding grid, with the appropriate planning strategy for Dry July, highlighted. Adapted from “Advertising: an integrated marketing communication perspective,” by G. E. Bulch, 1951.

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Per the FCB grid, encouraging consumers to refrain from alcohol consumption during July, would require ‘feeling’ and ‘high-involvement’. Therefore, registering for Dry July is an affective/feeler strategy, as shown in the Figure 2. This strategy follows the feel-learn-do response sequence, thus relating to psychologically-influenced choices (Belch, 1951). A simplified, visual representation of where the DJF sits in the FCB grid, can be seen in Figure 3. High Involvement

Dry July Foundation

Thinking

Feeling

Low Involvement

Figure 3. Positioning map of the FCB grid.

The response hierarchy theory outlines four models, to show the stages a consumer goes through, when moving from being unaware of a company, product or brand, to actual purchase behaviour(s) (Belch, 1951). A graphical representation of these models is shown in Figure 4. The Hierarchy of Effects Model outlines that advertising may not lead to immediate purchase behaviours, but behaviour that occurs over time (Belch, 1951). It has become vital in developing and evaluating advertising for high-involvement purchasing decisions (Belch, 1951). Thus, because the DJF falls into the affective/feeler strategy, this model would be the most effective response process.

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Models Stages

AIDA Model Attention

Hierarchy of Effects Model Awareness

Innovation Adoption Model Awareness

Cognitive Stage

Information Processing Model Presentation Attention

Interest Affective Stage

Knowledge Liking

Interest

Comprehension Yielding

Preference Desire

Conviction

Evaluation Trial

Retention

Action

Purchase

Adoption

Behaviour

Behavioural Stage

Figure 4. Response Hierarchy Models, with the most effective model for the Dry July Foundation, highlighted. Adapted from “Advertising: an integrated marketing communication perspective,” by G. Belch, 1951.

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1.4 Regulation and Ethics for Advertising the Dry July Foundation The Australian Association of National Advertisers (AANA) is a national body driving responsible, innovative and respective marketing campaigns through their code of ethics (AANA, n.d.). When developing campaigns, the DJF should be aware of the possible breaches to this code of ethics. The regulatory and ethical considerations of NFP organisations, depends on the type of work they are involved in (IBISWorld, 2012). Thus, Table 2 outlines the ethical considerations relating to the DJF, specifically.

Table 2. Regulatory/Ethical Considerations in Campaigns Ensure statistics, factual information, and statements are correct.

Code of Ethics Breaches

Section 1.2: Advertising or Marketing Communications shall not be misleading or deceptive or be likely to mislead or deceive. Ensuring that no stereotypes are used or Section 2.1: portrayed. Advertising or Marketing Communications shall not portray people or depict material in a way which discriminates against or vilifies a person or section of the community on account of race, ethnicity, nationality, gender, age, sexual preference, religion, disability, mental illness or political belief. Be sensitive towards sexual content, if Section 2.4: using it for public service announcement(s) Advertising or Marketing Communications on negative outcomes of high alcohol shall treat sex, sexuality and nudity with consumption. sensitivity to the relevant audience. Ensure any presented violence, such as Section 2.3: being shown as a negative effect of high Advertising or Marketing Communications alcohol consumption, is justifiable and shall not present or portray violence unless appropriately used. it is justifiable in the context of the product or service advertised. Adapted from “AANA Code of Ethics,” by the Australian Association of National Advertisers.

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2.0 Target Audience Analysis 2.1 Segmentation of the Target Audience The primary target audience for the Dry July campaign is detailed in Table 3. Although the foundation targets both genders, due to men being more than twice as likely to exceed the recommended standard drinking guideline than women, the target audience has a weighting focus of 60% to men and 40% to women (Australian Bureau of Statistics, 2017). Moreover, this is further supported through the ratio of men to women top fundraisers for the 2017 Dry July, being 3:2 (Dry July, 2017b).

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Table 3. Segmentation Bases Demographic Description

-

Men and women between 35 and 54 (Focus weighting of 60% to men, and 40% to women) - Earning around the average Australian wage of 78,832 dollars - Have teenage or young adult children. Geographic Description - Living in metropolitan and suburban areas of Australia - These consumers fall into the Socially Aware and the Psychographic Conventional Family Life Segments of the Roy Morgan Description Value Segments. - Represent the 'average Australian'. - Struggle to improve their living standards. - Aim to provide their families with better opportunities than they had as children. - Community-minded, with a strong sense of social responsibility. - Their purchase behaviours are often high-involvement as Behavioural they look for detailed information and evaluate the Characteristics Description consequences during everything purchase - This segment will become brand loyal if the product is viewed as ‘value for money’. - No hangovers By Benefits Sought - Chance to make a difference to cancer patients, and the people in their lives - Increased energy levels - Increased productivity - Improved sleeping - Weight loss - Sense of achievement by completing the challenge of restraining from alcohol for the month of July, and through reaching fundraising milestones - Save money - Prizes can be won for reaching fundraising milestones Adapted from “Average salary Australia,” by Living in Australia; “Conventional family life,” by Roy Morgan Research; “Socially aware,” by Roy Morgan Research; “Health,” by Dry July; “Dry July turns a hangover into cancer in new campaign,” by Dawson; “Fundraising,” by Dry July.

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Moreover, the Values and Lifestyle System (VALS) framework (refer to Figure 5) classifies individuals into groups, based on their attitudes and demographic characteristics (Monash University, 2017). According to this framework, this target audience would be ‘Thinkers’ as they focus more on their family and home-life, yet are well-informed about current world events and the economic environment (B2Bwhiteboard, 2013).

Figure 5. Values and Lifestyle System Framework. Adapted from “Vals – values attitude lifestyle,” by Bhasin, H.

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2.2 Influential Factors on the Target Audience’s Decision-Making The influential factors in the target audience’s decision making differs for each gender. The media and professional sporting personalities and teams associated with cancer charities are most influential for men (Survey Monkey, 2012, para. 5). Additionally, the likeliness of men donating to cancer charities increases if they have had direct, personal experiences with cancer (Survey Monkey, 2012, para. 5). Comparatively, major events and celebrity endorsements linked to cancer charities are most influential to females (Survey Monkey, 2012, para. 5). See Figure 6 for the complete outline of influential factors.

Figure 6. Influencing factors on charity donations. Adapted from “Cancer charities: who donates and why,” by Survey Monkey.

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2.3 Consumer Insight From the extensive research and analysis of Dry July, the most recent consumer insight is that younger demographics do not believe they will be affected by cancer until they are older. This is evident through the latest ‘Hungover’ advertisement where the foundation targets young, male adults, as opposed to their primary target audience (outlined in section 2.1). As stated in section 2.2, men are more likely to donate to cancer charities if they have been directly affected by cancer, therefore the DJF presented a young, male adult with cancer, himself.

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3.0 Reference List AANA. (n.d.). AANA. Retrieved from http://aana.com.au/

AANA Code of Ethics (Cth). Retrieved from http://aana.com.au/content/uploads/2017/02/AANACode-of-Ethics.pdf

Australian Bureau of Statistics. (2017). Acohol consumption. Retrieved from http://www.abs.gov.au/ausstats/[email protected]/Lookup/by%20Subject/4364.0.55.001~201415~Main%20Features~Alcohol%20consumption~25

Australian Cancer Research Foundation. (2012). Annual report for year ended 31 December 2012. Retrieved from https://acrf.com.au/wp-content/uploads/2010/02/ACRF-signed-2012Audited-Fin-Stats-member-approved-23Apr13.pdf

B2Bwhiteboard. (2013, May 31). VALS Framework – explained [Video file]. Retrieved from https://www.youtube.com/watch?v=z32LbqKPZMo

Belch, G. E. (1951). Advertising: an integrated marketing communication perspective (3rd ed.). North Ryde, NSW: McGraw-Hill Education.

Bhasin, H. (2017, July 18). Vals – values attitude lifestyle [Web log post]. Retrieved from https://www.marketing91.com/vals-values-attitude-lifestyle/

Cancer Council Australia. (2012). Financial report. Retrieved from http://annualreview.cancer.org.au/2011-12/financial-report/index.html

Cancer Council Australia. (2016). Annual Financial Report. Retrieved from http://annualreview.cancer.org.au/2015-16/FINANCIAL%20REPORT%20-%20FINAL2016.pdf

Cancer Research. (2017). About our charity foundation. Retrieved from https://acrf.com.au/aboutaustralian-cancer-research-foundation/

Cancer Research. (2017). Our team. Retrieved from https://acrf.com.au/about-australian-cancerresearch-foundation/our-team/ Page 15 of 21

CanTeen. (n.d.). About us. Retrieved from https://www.canteen.org.au/how-we-help/about-us/

ChangePath. (2017). Canteen. Retrieved from http://www.changepath.com.au/canteen

Commonwealth of Australia. (2009). Australian guidelines to reduce health risks from drinking alcohol. Retrieved from https://www.nhmrc.gov.au/_files_nhmrc/publications/attachments/ds10-alcohol.pdf

Dawson, A. (2017, June 15). Dry July turns a hangover into cancer in new campaign [Web log post]. Retrieved from https://mumbrella.com.au/dry-july-turns-hangover-cancer-new-campaign451645

Dry July. (2017a). About Dry July. Retrieved from https://www.dryjuly.com/about

Dry July. (2017b). Dry July Foundation. Retrieved from https://www.dryjuly.com/

Dry July. (2017d). Health. Retrieved from https://www.dryjuly.com/health

Dry J...