The Canadian Blood Services is facing an increasing demand for blood products that is outpacing population growth. Currently, only 4% of eligible Canadians donate blood, compared to over 5% in countries like Sweden, Australia, and England. To meet demand, CBS needs to increase both new donors and donor retention. This marketing plan evaluates alternatives to address the problem, including an advertising campaign promoting the personal health benefits of donating blood, and requiring elective medical procedures to supply their own blood donations. After analyzing the alternatives and market, the plan recommends a combination of the advertising campaign and the latter alternative to boost both first-time and repeat donations.

1. Canadian Blood Services
Marketing Plan
Date October 8, 2017
Presented by:
Carstensen, Micheal
Ghorbani, Negin
Knelsen, Brenda
Lalata, Rachelle
Pratheeharan, Dushyanthy
Schmitz, Nicholas
Tang, Si

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Executive Summary
The Canadian blood services,a not-for profitorganization is facingan increasein demand of
blood products at a rate of 2%, this is twice as the population growth in Canada.50% of Canadian
is eligibleto donate out of the total population.However, only 4% donate compare to Sweden,
Australia and England where more than 5% of the population donate. CBS is in a situation to
meet the increasingdemand for blood and blood components. In order to satisfy thedemand the
CBS will need to raisethe number of new donors and increasethe donor retention.
The demand for blood and blood components involves of patients includes agingpopulation,
cancer patients, women that have pregnancy complications,children with anemia,accidents,as
well as research purposes.Another increasingin demand caused from hospitalstries to decrease
the wait time period.
In order to meet the increasingdemand,we have come up with alternatives availablefor CBS
are:
1. Advertisement campaign on TV and Social Media promotingPersonal health benefits of
donatingblood
2. Further research frequency of donations for repeat donors based on personal
characteristicsand ability
3. Require elective participants to supply own donors/donations to reduce demand
4. Open more donating facilitiesin rural areas to reach more of the population
5. Status Quo - should always beone of your alternatives
A combination of alternatives 1 and 3 will work to increasefirsttimedonors and repeat donors.
The increasein both of these statisticsshould help to keep up with the current growing demand
for blood and blood products.
If these two alternatives arenot recommendations by the board of directors,then they may
consider alternative2.Further research frequency of donations for repeat donors based on
personal characteristicsand ability.

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Problem Statements
The CBS is facingsupply and demand issue.There is an increasingdemand for blood approximately 2% per
year with the agingpopulation. There is a concern that they will notbe ableto meet the demand. The
essence of the issueis population isagingfaster than donation growing. Further the problem is
exaggerated that the blood cannotbe stored indefinitely.That is with platelets for one week and one
month for plasma and wholeblood. Things get more difficultwith seasonal demand;there areleast
donors availableto donate blood.
CBS have limited marketing budget likeany other not-for-profit organization.So they rely deeply on
creatingawareness and problem recognition to bringin donors.Their research data has shown that there
is a directcorrelation between their marketing activities,a productof their marketing budget, and
donations received.
Mr. Doolby, the director of marketing knowledge has been tasked with usingtheir latest research and
statisticsto plan and present to the CBS board a strategy on how they aimto deal with the pending supply
shortage, raisethe number of new donors, and increasedonor retention. The related costs must be
considered to persuade them itcan be done on the current budget or request an increasein their
allocation.
Company Objectives
The CBS was created in 1998 as a non-profit organization with the main objectives includes maintainingof
a safe, sufficient,voluntary,national supply of blood and blood products. They perform this by recruiting
and sustainingexistingdonors and enablingdonations attheir many permanent donation sites in
provinces excludingQuebec and territories and various mobileclinics in Canada.CBS will haveto focus on
two main factors such as increasethe number of donors and increasedonor retention to satisfy the
growing demand. These factors will help CBS achieve their goal to fulfill the demand of blood products.
Company Background
Blood collection in Canada began in 1930s initially funded and collected by Canadian Red Cross with blood
donor recruitment. Provincial and territorial government began to contribute as the system became
larger and it was fully funded by various level of government by 1977.
CBS was created in 1988 after people were affected and died due to the blood supply was contaminated
with AIDS and Hepatitis C and government inquiry relatingto the mismanagement. CBS is funded by
provincial and territorial health ministries and has activeboard of directors appointed by health ministers.
Donors are not motivated to monetary valueand reduce risky behavior.80%of the population believes
CBS to manage the blood system.
CBS collected 685,000 units of blood in the firstyear of operations.Annual collections grew31.3% over
the next 13 years.
Situation Analysis
Strengths
 Experience
 Reputation – more than 80% of the population trusts CBS
 Established pool of donors

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 Donations are unpaid, voluntary
 Funding from governments in place
 Revenue from member contributions is growing
Weaknesses
 Expenses, especially general and admin, increasingfaster than revenues
 Mismanagement of blood supply in the 1980’s that lead to deaths still in the mind of some potential
donors
 Donor recruiting efforts have not been successful in increasingnumbers, new donor numbers is falling
Opportunities
 Growing population
 Growing trend for health conscious decisions and products
 Social media and networking has the potential to bring awareness
Threats
 Demand for blood products is increasingfaster than the population
 Number of people in younger age groups is smaller than those in older age groups
 New medical procedures increases the demand for blood products
 Aging population could increase demand while decreasing the active donor number
 Blood can only be stored for up to 1 month if whole blood, 1 week if platelets
Market Analysis
Overview
With a yearly demand of whole blood fast approaching at 1,000,000 units, it is necessary to look at who is
eligible to support in reaching this target. With some restrictions on who can donate such as the minimum age
limit of 17 years old and a minimum 50 Kg weight limitas well as other health related restrictions, the
Canadian population is limited to only 12,000,000 potential donors. Of these 12,000,000 eligible donors, only
10% are actively donating blood.
Marketing Mix
Product
 Whole blood
 Plasma
 Platelets
Price
 Blood donation has always been an unpaid activity
 CBS has decided not to financially compensate donors as it would increase the risk of
misrepresentation of health or at-risk of behavior that can endanger the health of the donor and the
blood supply
Place
 CBS currently 43 permanent collection sites

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 CSB conducts more than 20,000 donor clinics per year at more than 1,600 different locations all over
Canada excluding the province of Quebec
 Mobile clinics were advertised in places such as offices or schools
Promotion
 News features advertising blood shortages and the continued need for supply encouraged potential
donors to donate blood
 Interaction with friendly and sociablestaff
 Snacks and refreshments offered after donation
Competition
The direct competition to CBS comes in the form of other charitableorganizations. As donating blood is seen
as a charitable act, it is competing for the donor’s time. Volunteering at a homeless shelter or volunteering at a
hospital or senior center would be comparable to giving blood donations. People looking to give back to
society, but uncomfortable in donating blood or not familiar of the process are likely to donate their time with
one of these organizations instead.
Indirect competition comes from those who do not want to volunteer or give any financial donations to any
charitable organizations.
Positioning Map
The chart below shows how other competitors line up with CBS. The direct competition comes from those
who volunteer their time and efforts to other charitableorganizations and the indirect competition comes
from those who do not volunteer at all. On the total Canadian population, only 4% donate blood, 44% donate
time, and 52% do not donate at all.

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PESTE
Political – CBS is completely funded by the provincial and territorial governments. As a result, they are
susceptible to changes in funding depending on the party elected and annual budget.
Economic – The current cost per unit of blood shipped is $377. This cost is completely funded by the provincial
and territorial governments; therefore it is the taxpayer who is funding this in the end.
Social – There are several social factors for CBS. The first is the fact that donating blood is regarded as a
charitable action in society, some donors feel good after they donate. The second is the sense of belonging
that donors get from belonging to the club of donors. Some think that donating blood is a social activity
Technological – There have been significanttechnological advances in the testing of blood samples donated
before they are given to patients to ensure that patients are getting healthy blood and they will not be
contaminated in the future.
Environmental – Despite the technological advances, there are still risks that need to be minimized. Some of
the risks includecontamination similar to the past with the AIDS and Hepatitis C virus transmissions .
Conclusion of market analysis
Overall, the market for volunteers has a lot of potential blood donors. There are many current and non-
current volunteers who are non-donors or not actively donating that can be encouraged to donate blood if
they are familiar and approached in a suitableway.
Segmentation
Segment 1 Segment 2 Segment 3 Segment 4
Demographic
Of First-Time
Donors (1.2:1
Female to
Male)
Age 17-24
50%
Age 25-34
Just under
20%
Age 35-44
Just under
20%
Age 44+
10%
Psychographic Influenced
by peers,
familyor
colleagues
Altruism
Like helping
others
Pride in
helping
Recruiter
Influence
Altruism
Like helping
others
Helping
Community
Makes them
feel healthy
Recruiter
Influence
Altruism
Like helping
others
It is a wayof
life
Helping
Community
Recruiter
Influence
Altruism
Like helping
others
Know people
needed
blood
Like helping
others
Behaviour First timers
use a
convenient
location
When
brought
with a
return
donor
convenient
location
Will donate
if allowed
(every 2
months)
Convenient
location
Want to
reach a
certain
number of
donations
Want to feel
good about
themselves
Convenient
location
Want to
reach a
certain
number of
donations
Want to feel
good about
themselves

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The targeted market
The inactiveportion of the existingdonors,the eligibledonors who have not donated yet, and donors who do not
donate on regular basisarethe targeted market. CBS should make an effort to create recurringdonors who have
donated previously.
The Current market
In the current market only 4 percent of Canadianswho donate blood. The general population of Canadian donors
was approximately 1.2 million people,approximately 10 percent of the eligiblepopulation of 12 million.Active
donors made up justmore than 3 percent of the eligiblepopulation.
The Potential market
The potential market includes approximately 12 million of eligibleCanadian donors. CEB’s objectiveis to increase
the potential market likeother countries such as Sweden, Australia and England,where more than 5 percent of the
population donated.
Competitive Analysis
There is no directcompetition as there is no other operation that offers this servicein Canada. The competing
factors would include:
 Science research for synthesized blood
 People donating organs
 People donating to registered charities
The main factors that compete with peoples’ willingnessto donate blood are:
 Availability to donate (location)
 Time
 Fear of pain
 Health
 Perceived need to donate

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Financial Analysis
CBS’s financial health is closely watched by general public that includes blood donors. Financial health
also reflects CBS’s ability to manage taxpayer-funded organization. It is vital for CBS to be as
transparent as possibleabout its expenses, thus guaranteeing consumer confidence other than
health-related concern. Consumers are also looking for staff and administration expenses in relation
to other corporate function related expenses.
In 2009, staff costs took up 31% of the total expense. General and administration was 8%. All together
was 39%. Canadian Cancer Society had “program” to total expense 58.12% (68400 / 120377 in 2016
report), and its percentage of funding for a cause was around 50% at its best year which was 2016.
CBS had 65% in 2014, 74% in 2015, and 60% in 2016. CBS’s performance was even better comparing to
Canadian Breast Cancer Foundation which had cent to the cause of 51%, 52% and 47% for the years of
2014, 2015, and 2016 respectively.
On CBS’s 2010 report, CBS clearly outlined that “much of the organization’s cost reduction efforts
have been directed to making our processes more efficient, which directly influences our staff costs.”
CBS should demonstrate to the world, both by advertisement and annual report that CBS strives to
delivery best in class program while continuing reducing its costs.
It was noted that CBS’s G&A was drastically increased by 60.88% from 2009 FY. This increase in
expense was compensated by the use of deferred amount and increase in other income. It is
important for CBS to be transparent about this increase. However, CBS did not provide a detailed
explanation on its annual report. Should this trend continues, CBS would have difficulties balancing
revenues and expenses.
According to the case, CBS’s marketing budget was $4.5 million: $2.6M for advertising, $0.54M for
national recognition, $0.58M for professional fee & production, $0.33M for retention program, and
$0.45M for recruitment program. According to the case, in 2009 the new donor retention rate was
approximately 51% and the number of donors was 423,000.
In the past 10 years, the donor base was hovering around 420,000, but the donation saw gradual
increase, which was an indication that donors increased their frequency of donation.
With the cost per unit shipped at $377, this translates to 11,936 new donations in order to break
even, which is very unrealistic as this means more than 10% increase. Therefore, a more rational
increase would be around 2%.
Key Factors
Key Opportunities
 Only 3 % of the population is an active donor, lots of potential donors to draw on
 Donors want convenience, more mobile clinics would increase convenience
 Ipsos Reid focus groups indicated lack of awareness of the need for blood was an issue,more awareness
campaigns needed
 Social Media is under-utilized in current marketing plans,and very effective with the 17 to 24 year old age
group that is important to gain as new donors

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Key Success Factors
 Reputation for safety for the donors is essential
 Public awareness of the need for donations, especially at times of high need
 Quality of donor ensured by voluntary donations of blood rather than paid
Key Uncertainties
 Demand of aging population
 Population of younger age groups falling,fewer donors to recruit from
 Danger of new diseases or bacteria causing harm to donors or recipient patients
 Damage to reputation if safety of donors and patients is ever in question
Alternatives
1. Advertisement campaign on TV and Social Media promoting Personal health benefits of donating
blood
Recent medical research has shown that there are excellent health benefits enjoyed by blood donors.
These benefits include reduced risk of hemochromatosis, lowered risk of cancer, reduced risk of heart
and liver problems, weight loss,and stimulation of blood cell production.
The advanced screening required to be able to use a donor’s blood in a patient can trigger doctors’
visits for donors whose blood is rejected. When a donor’s blood is rejected the reason is provided to
the donor. Donors may be notified to visit their doctor and can get advanced warnings when donors
have things likeelevated white cell counts that can indicate infection or cancer.
The current donor segment is highest on the qualities of altruismand liking to help others and this
motivates them to donate blood. Focusing on the individual health benefits to the donor in donating
blood may motivate a wider range of segments.
Pros:
 Message will resonate with all age groups
 Statistics can be tracked and used to reinforce personal benefit
 Ability to comment on the potential undiscovered health benefits
 Low cost to track statistics
 No increase to marketing budget, just a change in the message
 Use of social media can lower marketing costs and reach more individuals
Cons:
 Perceived as unethical to market to people’s fears and anxieties over becoming ill
 May not be received well by largest current donor group
 Message may not be enough of a motivator to trigger the consumer decision process
2. Further research frequency of donations for repeat donors based on personal characteristics and
ability
There are many characteristics that determine the frequency in which a donor can donate. The main
characteristics identified to date include gender and type of blood product being donated. For whole
blood donations men are able to donate four times per year while women are only able to donate
three times per year.
There are other types of donation options that can occur more frequently such as plasma donations
and double red cell donations. The timelines for these can be shorter or longer. The timelines can also
be affected by the usage of iron supplements by the donor. Everyone’s body is different and

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regenerates at different rates depending on their lifestyles. Individual donor plans created based on
donors lifestyles and their bodies capabilities could reduce the waiting periods and increase frequency
and supply.
Pros:
 Increased supply
 Research required provides new insights
 Current donors branch out into donating other blood products in between whole blood donations
Cons:
 Research is expensive
 Lack of blood supply to complete research
 Unwillingness of donors to commit more time
3. Require elective participants to supply own donors/donations to reduce demand
The biggest demand drivers for red blood cells in Canada are elective and emergency surgeries. The
biggest difference between these two demand drivers is that one is predictable and the other is not.
Although there are shortages in Canada elective surgeries continue because blood does have an
expiration timeline of 42 days.
If policies at hospitals were changed that required elective surgery participants to provide their own
donation for the surgery it could greatly reduce demand for the predictable use for red blood cells.
There are some elective surgeries that would require red blood cells from donors due to the health of
the participant or additional amounts on top of the donation from the surgery participant.
Pros:
 Reduced demand
 No delays for elective surgeries based on blood supply
 Individuals would be less anxious and more comfortable knowing it’s their blood
 Expiring blood can be used for medical research rather than elective surgeries
Cons:
 Requires policy change which can be difficult
 Potential resistance from the medical community
 Potential resistance from the general population for added inconveniences of elective surgery
4. Open more donating facilities in rural areas to reach more of the population
The current donor facilities areall focused on highly populated urban areas. In order to reach a higher
percentage of the population blood donor facilities could be opened up in smaller populated areas.
These facilities could be incorporated into hospital facilities in rural areas.
With minor alterations the existing hospital facilities would be able to accommodate these blood
donor clinics and the existing infrastructure has all the equipment, trained individuals, and supplies
necessary to draw blood.
Pros:
 Reach more of the population
 Rural community members likely to donate due to close proximity
 Rural community members likely to donate due to sense of community
Cons:
 Resistance to alter hospital facilities to accommodate blood donor clinics
 Lack of space in rural hospital facilities

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 Costs per donation are too high
 High transportation costs
5. Status Quo - should always be one of your alternatives
The current demand for blood products is growing at a rate of 2% per year and this trend will continue
due to the baby boomer generation becoming seniors. The current demand is also unpredictable and
fluctuates with seasons. With demand outpacing supply the status quo will result in continued blood
shortages. The shifting age demographic and current birth rate will result in a lower potential donor
pool moving forward and into the future.
Continued blood shortages will impact the ability of hospitals across the country to accommodate
elective surgeries and affect their ability to save lives in emergency situations if there is not enough
blood for these individuals in emergency situations.
Pros:
 Current processes are streamlined
 Current processes ensure quality donations are received by recipients
 Once baby boomer generations is deceased demand should decrease
Cons:
 Shortages are frequent
 Demand is unpredictable due to seasonal fluctuation
 Ability to saves lives is negatively impacted
Recommendations
We would recommend alternatives 1 and 3. An advertising campaign that focuses on the health
benefits to the donor would be a better motivator than the generosity of giving because people are
naturally self-interested. By using the mentioned health benefits to advertise as a reason to donate
blood it is likely trigger the problem recognition event in the viewer. Individuals will think about things
they do to stay healthy. Once the problem recognition event is triggered the viewers will consider
alternatives likeeating healthy and exercising. When compared to the time, effort, and expense that
these tasks require donating blood is surely to make the consideration set and generate plenty of first
time donors and potential repeat donors. The marketing messages for this campaign could be, “The
life you save could be your own” and “Worried about your health? Donate blood today!” A television
commercial with a real life cancer survivor discussing how donating blood led to an early diagnosis
which helped saved their life would be a great television commercial.
The use of self-provided donations for elective surgeries would have the benefit or reducing demand
and exposing someone to the process of donating blood. Once the person goes through the process of
donating blood for themselves they will overcome any hesitations they had about donating for others.
This approach would force many people to become first time donors and may result in many repeat
donors once the person has recovered from their elective surgeries. A television commercial could be
developed surrounding this scenario as well. The advertisement would show someone going in for an
elective surgery and discussing the satisfaction of assisting with their surgery and how they realized
donating blood was simple, easy, and healthy for people to do.
A combination of these two alternatives will work to increase firsttime donors and repeat donors. The
increase in both of these statistics should help to keep up with the current growing demand for blood
and blood products.

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Alternative 2 was not chosen because it would increase the costs of blood collection activities and
reduce the efficiency of the current system in place. To tailor make a blood donation plan for every
donor would take time and resources that CBS does not currently possess.
Alternative 4 was not chosen because the cost per donation received would be too high. Although
many individuals in rural areas would be willing and would like to donate blood, the blood needs to be
processed. The processing and testing facilities areonly in larger centers and the transportation of
these blood donations to these centers would be expensive valuable days would be wasted
transporting the blood when the expiry timeline is 42 days.
Alternative 5 was not chosen because demand is greater than supply and the gap between the
demand and the supply is expected to widen if new first time donors and repeat donors are not
increased.
Action Plan
Date Item Description
Immediately Share Marketing recommendation
with Marketing Executives
Management Team and the Board
Determine the required budget for the advertisement
campaign on TV and social media. Ensure marketing
managers are on board for the recommendations and
get the necessary board approvals
Immediately Ready to launch campaign –
Media coverage on National News
Media coverage of the CBS story and communicate the
updated CBS message through television, radio, cinema
while still expanding into online through social media
and google.
Immediately Generate a Social Media Presence Set up a Facebook Page; Instagram, snapshot, google
and get on Twitter.
Immediately Introduce Survey program Marketing will send out a survey to a sample size of
current donors to get their thoughts on this program and
what benefits they would want to see most.
2 months Analyze the success of launch and
review the survey
Have new donors or donor retention increased? Has
blood supply gone up, if so how much?
6 months Consumer Behavior Analysis Which social media channel has reached the consumer
effectively and which media works best?
Contingency
The contingency plan chosen for Canadian Blood Serviceis Alternative 2 further research frequency of donations
for repeat donors based on personal characteristicsand ability. There are many characteristicsthatdetermine the
frequency in which a donor can donate. The main characteristics identified to date includegender and type of
blood product being donated. For whole blood donations men areable to donate four times per year whilewomen
are only ableto donate three times per year. There are other types of donation options that can occur more
frequently such as plasma donationsand doublered cell donations.The timelines for these can be shorter or
longer. The timelines can also beaffected by the usageof iron supplements by the donor. Everyone’s body is

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different and regenerates at different rates depending on their lifestyles.Individual donor planscreated based on
donors lifestyles and their bodies capabilities could reducethe waitingperiods and increasefrequency and supply.

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Appendix
1.
2.
3.

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4.
5.
For the year ended March 31, 2010
(In thousands of Canadian Dollars)
2009 2010 Change Vertical '09 Vertical '10 Projected lo Projected mid Projected hi
Revenue
Member contributions 913,057 961,045 5.26% 962,687 1,000,095 1,019,066
Federal contributions 5,000 5,000 0.00% 5,000 5,000 6,000
Less amount deferred (64,838) (39,399) -39.23% (2,283) (2,283) (2,283)
853,219 926,646 8.61% 965,404 1,002,812 1,022,783
Amortiazation of previously deferred contributions
Related to plant, property, and equipment 18,364 18,490 0.69% 18,590 18,590 18,590
Related to operations 9,817 8,593 -12.47% 9,664 9,664 9,664
Total contributions recognized as revenue 881,400 953,729 8.21% 993,658 1,031,066 1,051,037
Stem cells revenue - - - - -
Investment income 4,002 773 -80.68% 500 500 500
Other income 791 1,804 128.07% 400 400 400
Total revenue 886,193 956,306 7.91% 100.00% 100.00% 994,558 1,031,966 1,051,937
check 994,558 1,031,966 1,051,937
Expenses
Cost of plasma protein products 439,038 464,263 5.75% 49.54% 48.55% 482,834 490,937 510,689
Staff costs 275,041 278,526 1.27% 31.04% 29.13% 289,667 282,055 306,379
General and administrative 70,308 113,112 60.88% 7.93% 11.83% 117,636 181,975 124,423
Medical supplies 81,196 79,782 -1.74% 9.16% 8.34% 82,973 78,393 87,760
Depreciation and amortization 17,061 18,340 7.50% 1.93% 1.92% 19,074 19,715 20,174
Total expenses 882,644 954,023 8.09% 99.60% 99.76% 992,184 1,031,174 1,049,425
Excess or deficiency 3,549 2,283 -35.67% 2,374 792 2,511
Break even units = Fixed cost / (Sale price - variable cost per unit)
Cost per unit shipped 377
Break even donations = 11936.34
2010/11 low mid high
Projected increase 0.00% 1.00% 2.00% 3.00%
Projected donations 423000 427230 431460 435690
Projected donors 900000 909000 918000 927000
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
0.00% 1.00% 2.00% 3.00%
2010/11 low mid high
Projection
Projected donations Projected donors

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http://itsinyoutogive.ca/Annual/2010/pdfs/cbsltc_report_en.pdf
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http://www.cbc.ca/news/canada/kitchener-waterloo/canadian-blood-services-surgery-donate-1.4183741
http://www.mywestman.ca/community-news/6602-changes-coming-to-rural-blood-donors
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eng.htm