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Strategic Planning and Marketing Presentation
- 1. COMMUNITY BLOOD CENTER OF THE CAROLINAS (CBCC): MARKETING PLAN 2004 CASE 3 Jessica Factor, Heather Jacobson, Catalina Ramirez, Krista Barbour, Todd Jeremy, Joe Stavas, Will Liu & Brian Wiggs
- 2. Charlotte Meto area: 1.7 million Charlotte Economic Catchment area: 2.3 million http://www.census.gov/popest/metro/tables/2008/CBSA-EST2008-02.csv
- 6. 2005 Nationwide Blood Collection & Utilization Survey, DHHS
- 14. SWOT
- 29. Charlotte Motor Speedway Proud Sponsor of the Community Blood Center of the Carolinas
- 33. Q4 2004
- 34. Q1 2005
- 35. Q2 2005
- 36. Q3 2005
- 37. QUESTIONS?
Editor's Notes
- The American Association of Blood Banks (AABB) was organized to support research and promote excellence in the blood collection community. AABB accreditation is consistent with CBCC ’ s goal of meeting federal regulation requirements and following principles associated with good manufacturing practices set by the FDA. America ’ s Blood Centers (ABC) membership demonstrates CCBC commitment to the community. The FDA has introduced a “ zero risk blood supply ” as the industry goal. The FDA requires blood banks and transfusion services to establish and follow a Quality Control and Assurance program for their licensing, certification, and accreditation. 2 In follow-up to the terrorist at- tacks of September 11, 2001, the FDA/DOD instituted many changes in approaches to critical national functions, including increasing mandatory blood supply at hospitals. The FDA/American Red Cross Amended Consent decree has provided guidelines including a biomedical services compliance plan, standardization of processes, and technological and process improvement for the American Red Cross as well as community blood centers, including CBCC CBCC must continually adapt to the stringent guidelines set forth by the FDA, CDC, and AABB with regard to donor screening, testing of donor blood supply, labeling, transportation, maintenance and storage. CBCC must balance these regulatory guidelines with effective cost control strategies to effectively recruit and retain donors.
- The percentage with coverage dropped from 84.8 percent to 84.4 percent, mirroring a drop in the percentage of people covered by employment-based health insurance (61.3 percent in 2002 to 60.4 percent in 2003). This decline in employment-based health insurance coverage essentially explains the drop in total private health insurance coverage, from 69.6 percent in 2002 to 68.6 percent in 2003.(Census 2002-2003http://www.census.gov/Press-Release/www/releases/archives/income_wealth/002484.html) While costs for components in- creased between 2001 and 2004, outpatient reimbursement decreased for all components during the same period. The reimbursement rate or a unit of leukocyte-reduced RBCs decreased 16.1% between 2001 and 2004, while the mean cost to hospitals in- creased 30.8%. (See National Blood Collection Survey Slide which follows ) Since 2000, safety advances and increasingly expensive donor recruitment and retention efforts have made blood products more expensive. Contributing to the expense is blood screening for West Nile Virus, Chagas ’ diseasein addition to HIV and Hepatitis. 5 After years of negotiation, the Bureau of Labor Statistics has added blood and organ products to its Producer Price Index (PPI). This index will measure the price change associated with providing a specific set of services related to the collection, storage, and distribution of blood and blood products. Changes will affect the baseline payment that hospitals receive for Medicare-covered inpatient treatment, more accurately reflecting the actual costs associated with transfusions. 7 CBCC must actively participate in coordination with the ABC, AABB, and affiliate hospitals to maximize reimbursement for delivery of blood and blood products. CBCC must commit to a designated marketing budget in order to attract new donors.
- REDS Study Results on blood donations 2002- http://jama.ama-assn.org/cgi/content/full/289/17/2246 More stringent standards in blood donor screening has reduced the number of eligible donors and has raised concerns over lagging supply. In 2006, 12,142,000 individuals came to donate blood, of which 2,588,000 were deferred before donating secondary to failures in the screening process. 96.5% presented to blood centers and only 3.5% presented to hospitals. 9 A VBS study performed in 2002 showed that more than 1.5 million people lived in the CBCC region and if 60 % of the population was eligible and able to donate blood, there were 900,000 potential donors in the area. Typically, about 5% of the population actually donated (75 , 000). 12 See Attached Census Data from US Census . Population expansion leads to more eligible donors while also increasing the number of those needing transfusions. Blood centers were responsible for 93.6% of the blood supply in 2006. (Nationwide Blood Collection & Utilization Survey , 2005) Successful campaigns such as the “ 100 in 100 ” donor program must be emphasized in order to develop relationships among possible donors. Community perception of donating has been affected by poor Red Cross publicity for quality assurance with regards to infectious disease and contamination. The 9/11 terrorist attacks also led to apathy toward donating secondary to perceived Red Cross deficiencies. However, even in light of previously mentioned deficiencies, the ARC is deeply engrained in the region and recruitment of new donors for the CBCC requires continuous innovation in recruitment for donors and sponsors. Total collections, which dropped to a decade low of 12.6 million units in 1997, reached 15.3 million in 2001, largely be- cause of an increased allogeneic donation rate following the September 11 terrorist attacks. In 2004, total collections remained virtually un- changed at 15.3 million units (an actual decline of 0.2%) Innovative campaigns for previously uncovered sources of blood donors, including diverse minority groups, will be needed in the future. With an escalating, aging population, the need for donors will continue to rise.
- Significant advances in blood processing technologies including cord blood collection, processing, and storage will lead to continual higher costs. FDA recommended advanced software for product tracking and reporting of adverse biologic events will continue to transform the blood collection community . CBCC must stay abreast of technological advances that promote quality and safety as well as provide for outcomes tracking.
- STRENGHTS Founded in 1881, deeply entrenched within the community (brand recognition) Largest supplier of blood and blood products in the U.S. Collects 6.5 million units of blood from 4.5 million donors 8 national testing labs (1 of which is located in Charlotte) Strong partnerships with community organizations Single, standardized computer system to maintain blood donor database Centrally managed blood inventory system to track blood availability nation-wide Invests heavily in blood research to improve safety, purity, and efficacy of blood Maintains the National Rare Blood Registry 10 permanent collection sites in the Carolinas Region Carolinas Region led the nation in blood collections from 1997-2003 Carolinas Region serves over 100 hospitals WEAKNESSES Mandated by the FDA ’ s Amended Consent Decree, led to critical evaluation of processes,poor publicity, and monetary penalities that increased operations cost Developing standardization procedures and process improvement Poor publicity in relation to donor techniques during the 9/11 terrorist attacks Lack of centralization causing standardization difficulty
- STRENGHTS Founded in 1881, deeply entrenched within the community (brand recognition) Largest supplier of blood and blood products in the U.S. Collects 6.5 million units of blood from 4.5 million donors 8 national testing labs (1 of which is located in Charlotte) Strong partnerships with community organizations Single, standardized computer system to maintain blood donor database Centrally managed blood inventory system to track blood availability nation-wide Invests heavily in blood research to improve safety, purity, and efficacy of blood Maintains the National Rare Blood Registry 10 permanent collection sites in the Carolinas Region Carolinas Region led the nation in blood collections from 1997-2003 Carolinas Region serves over 100 hospitals WEAKNESSES Mandated by the FDA ’ s Amended Consent Decree, led to critical evaluation of processes,poor publicity, and monetary penalities that increased operations cost Developing standardization procedures and process improvement Poor publicity in relation to donor techniques during the 9/11 terrorist attacks Lack of centralization causing standardization difficulty
- State of the art facility in Charlotte, with easy access to donors & customers (local hospitals) Strength. Although the major competitor also has a headquarters in Charlotte, CBCC has established relationship with hospitals in the area. Quality initiatives and focus on regulatory compliance Strength . Due to smaller size, CBCC is able to focus on quality control and regulatory compliance. CBCC staff is highly qualified and has training from reputable institutions and broad experience. Strength. CBCC staff is able to keep up with growing demands of expanding organizations and able to take on roles the development of new services/products. Quality initiatives and focus on regulatory compliance Strength. CBCC ’s focus on regulatory compliance throughout the blood donation process set CBCC apart form competition and are possible because of CBCC local control over all aspects of operation. May not be sustainable if operation grows to fast. Relatively new organizations needs service delivery SOPs standardized to get “bugs” worked out. Weakness. Common problem for organizations at start up. CBCC will need to set in place standardized service delivery operations as they develop brand and increase market share. Efficient billing and collection practices. Strength . CBCC has highly effective billing practices and has a short turn-around time in account receivable. Emphasis on donor and client satisfaction. Strength . Organizational emphasis on customer satisfaction as part of outreach to new customers as well as fostering customer loyalty. Not established in local market, difficulty finding new clients. Weakness . CBCC is relatively new organization and has just re-structured. New focus on expanding market share has been established.
- CULTURE Highly educated and expert staff to lead organization growth and marketing activities. Strength. New enthusiastic leadership combined with expert trained staff to provide momentum for organizational growth. Very involved medical advisory committee and board of directors with ties to community. Strength. Strong community involvement and leadership continues to build ties and positive reputation in the community. Shared organizational values and assumptions. Strengths. CBCCC employees and leadership are committed to organization goals, agree on the needs of the market and are on board with organization risk taking behaviors to increase growth. ORG STRUCTURE Unclear organization structure. Weakness. New director of operations and reduction in some staff size and services have left organization structure unclear. Unclear financial sustainability of CBCC services. Weakness. CBCC is a relatively new organization and has not established the necessary market share to meet financial sustainability goals.
- Brand Value. Strength. CBCC has a lower price point that it ’s main competitor and has a reputation for high quality/regulatory compliance. Collective knowledge of American Blood Banks and Americas Blood Centers members. Strength . ABB & ABC affiliates and national ABB council (highly educated, well trained and experienced) willing to share expertise with CBCC. National accreditation from American Association of Blood Banks (AABB) Strength . Brand recognition and high standards of accreditation set CBCC apart form competitors. Emphasis on community level services & products. Strength. Differentiates CBCC “brand ”from competitors. Rapid organization contractions and expansions may leave employees overwhelmed. Weakness. Common to organization during start-up. Difficult to manage except through passage of time/experience as organization grows.
- Presence of center within a diverse philanthropic minded community High level of quality control and regulatory compliance Highly regarded and comprehensive health care systems (trauma, cancer, Children ’ services) Strong finance and billing/collections team Service pricing - lower price point than main competitors Brand recognition and differentiation - AABB accreditation and emphasis on community level services Skilled and educated management team, advisors, and national organizations (ABC, AABB), with existing start-up models in place
- Limited market share as a new and restructured organization Lack of optimized standard operating procedures Undefined organization and leadership structure Unclear financial sustainability Blood testing and research limitations due to emphasis on blood collection
- Blood centers' demonstration of quality control and commitment to community benefit through its affiliation with organizations such as AABB and ABC are associated with good manufacturing practices set forth by the FDA 2010 HHS appropriations bill - funding for NIH and NHLBI blood and transfusion related research and programs 28.5% of donors are first time donors and 71.5% were repeat donors [1] More than 1.5 million people lived in the CBCC region and if 60 % of the population was eligible and able to donate blood, there were 900,000 potential donors in the area. Typically, about 5% of the population actually donated (75,000) [2] Poor Red Cross publicity for quality assurance with regards to infectious disease and contamination. Technological and scientific advancement in IT healthcare productsExpansion outside of service area and to hospitals not currently part of CBCC in order to increase market share Focus on customer satisfaction with demonstration of quality and commitment to community benefit [1] www.aabb.org/Documents/Programs and Services/Data Center/07nbcusrpt.pdf [2] Swayne, Duncan, Ginter. Strategic Management of Health Care Organizations. Sixth Edition. 2008. pp 476-498.
- Main competitors (e.g. American Red Cross) are tightening their compliance plan and SOPs. Uncertain donor population due to stricter testing requirements. Quality based payments for blood products - organizations that do not report the quality measures required for blood products will suffer a penalty Main competitor (e.g. ARC) is deeply engrained in the region and line of business Loss of key staff from CBCC to ARC or other local laboratory services during start-up period Reimbursement decreases and cost increases due to overall healthcare and particularly CMS environment
- For the first year under my leadership, these are the objectives and marketing tactics for how we ’ll meet these objective in order to gain progress towards an overall 40% increase
- *SHOW VIDEOS* STRATEGY Educate public about importance of blood donations TACTICS Hire Market research firm to conduct awareness surveys in Charlotte Region by October 2004. Write and distribute press release to regional print media to increase awareness of blood shortage in Charlotte during the holidays by November 2004 Create “ what if ” direct mail piece highlighting the ease at which people can donate blood and help save lives and mail to 100,000 Charlotte residents by December 31, 2004. Pitch a patient testimonial story to the local media highlighting the importance of blood donation by January 2005 Enhance CBCC Web site with donor and patient testimonials, blood donation facts, donation eligibility information by February 2005. Create a Facebook fan page and invite friends to become a fan of donating blood at CBCC by February 2005 Create public service announcement about the importance of blood donations for local network and cable television and for posting on You Tube by March 2005 to run for three months Create speakers bureau made up of blood recipients and the CBCC Executive Director to talk at area high schools in April 2005 Solicit partnership with Fairway Outdoor Advertising to erect a four-month billboard advertisement on I-485 by June 2005 Re-launch 2004 survey to measure progress in September 2005
- STRATEGIES Re-establish relationships with former donors Partner with a local business sponsor to offer incentives to repeat donors TACTICS Create data base of existing donors by blood type to contact during shortages of their blood type starting November 2004 Create an email/direct mail reminder card for donors to remind them when it is time to donate by December 2004 Develop online scheduling on CBCC website for donors by January 2005 Implement monthly reminder card mailings by February 2005 Create and mail annual thank-you card to donors featuring a local patient who received blood donated to CBCC by February 2005 Solicit and secure partnership with Subway franchise to offer 1000 free lunch coupons to repeat donors by March 2005 Implement a donor rewards program/campaign- “ Who says there ’ s no such thing as a free lunch? There is-come in to give blood and lunch is on us ” by March 2005 Recruit volunteers to facilitate an appointment center calling tree to past donors informing them of the program by May 2005 Create e-newsletter and blast quarterly to past donors about upcoming events and promotions (WHO Blood Day, Panthers Fan Fest, Holiday Shopping pass) by June 2005
- STRATEGIES Leverage local events to recruit new donors Remove existing barriers to increase ease of donation Educate young residents on the importance of life long regular blood donation Establish incentives for donations Advertise blood donation opportunities and events TACTICS Establish a semi-permanent donation center in Southpark Mall and at Concord Mills outlets during the November and December 2004 Holiday shopping season. Partner with Mall management to offer a 20% off weekend shopping pass per donor during November and December 2004 (and continue annually). Hold a blood drive contest between the 14 hospitals served by CBCC to collect donations during National Blood Month in January 2005 Create a Facebook Event inviting fans to give blood Partner with three local radio stations and launch a listener drive to tie in with National Blood Month in January 2005 Add blood drive schedule to CBCC Web site and update monthly by March 2005 Create brochure on blood donation and CBCC to distribute to local doctors offices for distribution during well visits by April 2005 Send a media alert to regional press announcing extended Summer collection hours on Saturdays by May 2005. Exhibit at Coca Cola 600 in May 2005 and recruit donors to make appointments to give during the week of June 14 (World Heath Organization Blood Donor Day). Fans who donate will be entered to “ Win a lap with the King of Nascar- Richard Petty ” Partner with Carolina Panthers to promote CBCC and host a blood drive during Fan Fest in August 2005 Create educational blood exhibit at Discovery Place in Charlotte and become a corporate sponsor of Discover Place by September 2005
- STRATEGIES Establish relationships with local organizations and businesses Schedule blood drives TACTICS Add sponsorship contact information to Web site by November 2004 Contact 100 area churches to ask for sponsorship for 2005 by December 2004 Add “ how to host a blood drive ” sponsor checklist to Web site by January 2005 Contact Charlotte-Mecklenburg Public School system and ask for buy-in to secure blood drives at all district high schools and the at Board of Education by Feburary 2005 Partner with Wachovia and Bank of America to launch a “ Stock our Bank ” campaign to host six blood drives each in 2005 Approach UNC-Charlotte student council and athletic administration to partner on blood drives by March 2005 Organize a Charlotte Workplace Coalition, inviting local area business leaders and health professionals to participate to help increase workplace donations by April 2005 Reach out to 20 area gyms and schedule blood drives by May 2005 Contact Charlotte area firefighters and police departments to host blood drives by June 2005 Approach Charlotte Bobcats to host blood drive for 2005 season opener by August 2005 Contact five local philanthropic organizations per month in 2005 to host blood drives
- STRATEGIES Position CBCC as the top choice amongst Charlotte residents for blood donation Brand CBCC as safe, convenient, donor-centered, and a community-based organization Distinguish CBCC from competition Increase presence in community TACTICS Hire Marketing Director by October 2004 to carry out marketing tactics and implement marketing plan Identify target audiences (donors and sponsors) by October 2004 Create a style guide for CBCC outlining logo use, message, vision, colors, and tone by November 2004 Develop a tagline for CBCC to appear across all media “ Every drop stays here. Saving local lives ” Create Web site for CBCC Implement a consistent look, language, and message across all media, including Web site, printed material, employee uniforms and Public Service Announcements for CBCC by January 2005 Join the Charlotte Chamber of Commerce by January 2005
- Partner with Mall management to offer 20% off discount card to each donor. Discuss ways to continue promotion after holiday shopping season.