UNCF Presentation


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Direct Marketing Class of 2006. Presentation for UNCF new direct marketing campaign.

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UNCF Presentation

  1. 1. Natasha Blyznyuk Ashley Garove Edyta Krynska Susana Santacoloma Christine Stemkowski
  2. 2. Background <ul><li>The UNCF was established in 1944. At the present the organization is one the nation largest, oldest, and most successful minority higher education and assistance foundation. The UNCF approximately supports 65,000 students in about 9,000 colleges and universities. The UNCF also has administers’ help and aid in a variety of ways to enhance the lives of many African Americans and other minorities. The UNCF administers tens of millions of dollars that help provide computers, technology integration training for faculty members and technological infrastructure support for Historically Black Colleges and Universities. </li></ul>
  3. 3. Key Facts <ul><li>In its 62 years of operation the UNCF has been supporting thousands of African Americans, providing them aid and funds to achieve the dream of getting a higher education. </li></ul><ul><li>At the present time, the organization is experiencing a decrease in donations year after year. </li></ul><ul><li>In relation to the last 12 months, only 37% of the 200,000 total donors remain active. </li></ul><ul><li>Evidence indicates that the majority of donors are aging. </li></ul><ul><li>The United Negro College Fund's objective is to generate 20,000 new donors due to the fact that only 37% of all the current donors are active. </li></ul>
  4. 4. Research
  5. 5. Secondary <ul><li>General Statistics of U.S. Charities </li></ul><ul><li>According to The NonProfit Times, Americans donated $240.92 billion to charity during 2002 </li></ul><ul><li>The single largest sector that receives donations is religious organizations, followed by educational institutions which receive an estimated 13.6% of all donations. </li></ul><ul><li>42% of donors donated to a direct mail appeal during a 12-month period in 2002-03. Other top media donors responded to include workplace campaigns (33%) and personal, face-to-face requests (32%). About a quarter of the donors surveyed (23%) gave to a request over the phone during that year. </li></ul>
  6. 6. Secondary <ul><li>African American Statistics in U.S. </li></ul><ul><li>In 2002 there were 26.2 mil. Blacks in the U.S. </li></ul><ul><li>In 2002 33% of all Blacks were 18 and younger. Only 8% were 65 and older. </li></ul><ul><li>Only 12% of Blacks earned a Bachelors degree compared to 29% of the Whites. </li></ul><ul><li>The unemployment rate for Blacks was twice as much compared to that of Whites (11% Blacks and 5% Whites respectively). </li></ul>
  7. 7. Secondary <ul><li>Donor Demographics </li></ul><ul><li>Nearly 60% of the donor population is female while only 40% are male. </li></ul><ul><li>Female donors contributed a larger share of their net worth, 29.3%, compared to males who contribute approximately 26.8% of their net worth to charity. </li></ul><ul><li>Widowed females are considered one of the top donors among all charities. </li></ul><ul><li>Both white and black adults donate more than twice as much per capita as Hispanic adults. </li></ul><ul><li>Blacks give 25 percent more of their discretionary income to charity than do others. </li></ul>
  8. 8. Secondary <ul><li>Technology and Charity </li></ul><ul><li>The potential for giving to charities online is huge but untapped, according to a recent study released by CMS Interactive. </li></ul><ul><li>This particular group of donors is younger and more politically diverse than the national statistics. </li></ul><ul><li>The average age of the online user with donor potential is just 42, compared to 66 for the average direct-mail donor, according to Mellman Group and Hart surveys cited by the CMS study. </li></ul><ul><li>Moreover, socially engaged Internet users are almost evenly divided between liberals (43%) and conservatives (44%), while snail-mail donors are overwhelmingly liberal (74 %). </li></ul>
  9. 9. Competition <ul><li>Income from Private Contributions </li></ul><ul><li>Salvation Army, $1,396,877,000 </li></ul><ul><li>YMCA of the USA, $693,271,000 </li></ul><ul><li>American Red Cross, $678,320,787 </li></ul><ul><li>American Cancer Society, $620,033,000 </li></ul><ul><li>Habitat for Humanity International, $466,716,000 </li></ul><ul><li>Harvard University, $451,672,023 </li></ul><ul><li>Catholic Charities USA, $446,266,726 </li></ul><ul><li>Boys and Girls Clubs of America, $362,336,978 </li></ul>
  10. 10. Primary <ul><li>Surveys </li></ul><ul><li>We conducted 50 surveys around the metropolitan area of New York & New Jersey. </li></ul><ul><li>Our Findings </li></ul><ul><li>78% stated that education was very important </li></ul><ul><li>66% of the respondents believed that “Education is a vital contributor to the wellbeing of our society.” </li></ul><ul><li>84% have heard about UNCF. </li></ul><ul><li>52% would consider giving a donation to UNCF. </li></ul><ul><li>Many did not feel right supporting a racially biased organization. </li></ul>
  11. 11. Strategy
  12. 12. Direct Marketing Strategy <ul><li>Focus on younger population as well as college graduates. </li></ul><ul><li>Focus on developing a more compelling message. </li></ul><ul><li>Also aim to tap into the resource of online donors. </li></ul><ul><li>Unique Selling Proposition </li></ul><ul><li>Making donors aware: </li></ul><ul><li>“ As a UNCF contributor you are not only helping to provide a quality education to those in need but you are also helping to better our society as a whole.” </li></ul>
  13. 13. Direct Marketing Strategy Continued <ul><li>Tactics </li></ul><ul><li>We plan to use a combination of informative and emotional appeal in our strategy that will give donors a reason for which to consider giving to UNCF. </li></ul><ul><li>We will also highlight the personal and social responsibility that we as members of our society have to give back to those in need. </li></ul>
  14. 14. Positioning
  15. 15. Target Market <ul><li>Younger potential donors. </li></ul><ul><li>Both Whites and Blacks. </li></ul><ul><li>College graduates and UNCF graduates (females and males) around U.S. </li></ul><ul><li>The age of these individuals may be anywhere from 35 to 55. </li></ul><ul><li>Minimum individual income of $35,000 or a household income higher than $60,000. </li></ul><ul><li>Our intended market could have any religion. </li></ul>
  16. 16. Differentiation <ul><li>UNCF will be positioned by the emotional factor associated with giving to those in need and contributing to society. </li></ul><ul><li>It will implement the emotional appeal of being able to go to college or get a diploma. </li></ul><ul><li>Using nostalgia to remind people of the hardships involved in getting an education. </li></ul><ul><li>Also, aim to remind people of the benefits they gained, professionally and personally, from their college experience. </li></ul>
  17. 17. Offer
  18. 18. Offer <ul><li>$100 Mont Blanc pen </li></ul><ul><li>Mont Blanc will donate $100,000 worth of pens to the UNCF. </li></ul><ul><li>Mont Blanc pens have the reputation of status and success, which is exactly what we are trying to tell to our respondents. </li></ul><ul><li>Mont Blanc pens will have respondent’s initials engraved. </li></ul>
  19. 19. Conditions <ul><li>The Mont Blanc pen will be given </li></ul><ul><li>to the first 1,000 respondents. </li></ul><ul><li>Offer will be featured to those who become a donor for UNCF for one year. </li></ul>
  20. 20. Media Recommendations
  21. 21. Media <ul><li>Direct Mail </li></ul><ul><li>E-mail </li></ul><ul><li>Advertisements </li></ul>
  22. 22. Direct Mail $360,000 <ul><li>Our Direct Mail pieces will be sent out to the new prospects. </li></ul><ul><ul><li>College Graduates </li></ul></ul><ul><ul><li>UNCF College Graduates </li></ul></ul><ul><li>Ages 35-55 and with an income of about $50,000-$60,000. </li></ul><ul><li>Direct Mail pieces will be sent out to 400,000 people. </li></ul>
  23. 23. E-mail $115,000 <ul><li>By utilizing the E-mail media we aim to acquire those Internet savvy prospect donors. </li></ul><ul><li>List of prospect contributors will be obtained from The List Experts, Inc., which contains a database of individuals that follow under the category “At Home With Computers - By Age.” </li></ul><ul><li>We will e-mail a total 255,555 pieces in the year 2006. </li></ul><ul><li>Similar letter format as the Direct Mail letter will be sent via e-mail. </li></ul>
  24. 24. E-mail <ul><li>Donor Characteristics </li></ul><ul><li>They are males and females who show an enthusiasm for the high-tech industry. </li></ul><ul><li>These people are better educated, with above average income. </li></ul><ul><li>These individuals are highly responsive to various direct e-mail offers. </li></ul>
  25. 25. Print $480,000 <ul><li>The New Yorker magazine </li></ul><ul><li>Circulation = 972,000 </li></ul><ul><li>Total audience is 3,510,000. </li></ul><ul><li>Variations of UNCF ads are going to run in 12 issues for a total of 3 months. </li></ul>
  26. 26. New Yorker Demographics <ul><li>Men 50.3% and women 49.7%. </li></ul><ul><li>94.1% of readers graduated college. </li></ul><ul><li>Average household income of $73,365. </li></ul><ul><li>Median age of 43 for men and 44 for women. </li></ul>
  27. 27. Budget
  28. 28. Campaign Budget
  29. 29. Creative Approach
  30. 30. Objectives <ul><li>The general problem our advertising must overcome is not to appear to be a discrimination biased charity. </li></ul><ul><li>The objective of the advertising is to raise awareness of the UNCF, motivate prospect donors to contribute, convince prospects donors that donating to the UNCF is a good cause, generate an increase in donations and achieve positive responses. </li></ul><ul><li>The benefit our consumers should believe in is that the young minds of our society deserve an education and that that will signify a more educated future society. </li></ul><ul><li>With our campaign we aim that consumers respond to the mailing and the direct advertisings either by making a donation or requesting additional information about the organization and its cause and establish the organization in the mind of consumers. </li></ul><ul><li>The tone of our communication is focused on encouraging and uplifting emotional appeal. </li></ul>
  31. 31. Direct Mail Piece The letter 
  32. 32. Direct Mail Piece The Reply Card 
  33. 33. E-mail Creative
  34. 34. Print Ads
  35. 35. Evaluation <ul><li>We will analyze the actual response rate of the campaign. </li></ul><ul><li>We will monitor and decipher increases and decreases in our funds after the implementation of the new Direct Marketing campaign. </li></ul><ul><li>We will monitor media exposure of our magazine ads. </li></ul><ul><li>We will define which media was more effective in accordance to the response rate. </li></ul>
  36. 36. Database Target Marketing
  37. 37. Database Segmentation <ul><li>Track specific characteristics that describe the UNCF donor. </li></ul><ul><li>It will allow to develop different approaches to reach specific audiences. </li></ul><ul><li>Tracking </li></ul><ul><li>Education, income, career, profession, address, age, hobbies, interests, media preferences, computer usage, etc. </li></ul>
  38. 38. Segmentation <ul><li>We will also segment the UNCF Database by separating UNCF College graduate donors from general College Graduate donors. </li></ul><ul><li>With our rich database marketing we can also begin to test the different results we receive from different marketing campaigns among individuals or groups. </li></ul>
  39. 39. Database Segmentation <ul><li>The UNCF will send personalized Birthday cards to individual donors. </li></ul><ul><ul><li>The Birthday cards will include many appreciations, from the UNCF, generally thanking our donors for their ongoing support. </li></ul></ul><ul><li>Postcards will also be sent during the month of May. </li></ul><ul><ul><li>This card will include various statistics on college students graduating with a UNCF scholarship. </li></ul></ul>
  40. 40. Budget and Response Analysis
  41. 41. For Acquisition of New Donors <ul><li>Our Direct Mail total media cost is $360,000 with a circulation of 400,000. We expect a response rate of 2% due to our creative strategy and carefully segmented audience. The total estimated respondents come to 8,000. </li></ul><ul><li>For print we have allocated $525,000 with a circulation of 972,000. We expect a response rate of 1.3% for this portion of the campaign totaling 12,636 respondents. </li></ul><ul><li>The internet provides us with the opportunity to use email as part of our campaign. For this we estimated a cost of $115,000 for a circulation of 255,555. The targeted response rate for this is 1.8% due to segmentation and convenience with a total of 4,600 respondents. </li></ul><ul><li>These response rates reflect an improvement for prospect donors. The previous average was 0.8% - 0.9%. </li></ul>
  42. 42. Profit Analysis Summary
  43. 43. THANK YOU