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Expansion
Report on entering Greece and Jamaica
By: Yordan Dimitrov
SID: 5446890
(Oxfam GB 2018а)
2
TABLE OF CONTENTS
INTRODUCTION...................................................................................................................................................... 3
1| OXFORD COMMITTEE FOR FAMINE RELIEF .......................................................................................................... 4
OVERVIEW OF OXFAM.............................................................................................................................................................4
2|PESTEL ANALYSES OF GREECE & JAMAICA ............................................................................................................ 6
2.1 | PESTEL ANALYSIS OF GREECE..........................................................................................................................................7
2.2 | PESTEL ANALYSIS OF JAMAICA.........................................................................................................................................8
3| EVALUATION...................................................................................................................................................... 9
3.1 | EXPANSION INTO GREECE ................................................................................................................................................9
3.2 | EXPANSION INTO JAMAICA...............................................................................................................................................9
4| CONCLUSION & RECOMMENDATION ................................................................................................................ 10
REFERENCE LIST.................................................................................................................................................... 11
FURTHER READING ...............................................................................................................................................................15
APPENDICES......................................................................................................................................................... 17
APPENDIX 1| INTERACTION WITH OXFAM GB............................................................................................................................17
APPENDIX 2| INTERACTION WITH OXFAM ONLINE SHOP..............................................................................................................18
APPENDIX 3| EXCHANGE RATES COMPARISON ...........................................................................................................................19
3
Introduction
Primarily this report is going to provide an overview of the Oxfam charity with the use of theoretical
frameworks by McCarthy (1960) and Bruce (1998). Following which, the project will analyse relevant
macro-environmental factors of Greece and Jamaica through the use of PESTEL analysis. Based on
the analysis of the two markets, advantages and disadvantages would be identified and a conclusion
would be drawn. The purpose of this report is to provide a critical analysis of both markets and to
highlight the value each market could offer for Oxfam in order to identify the more suitable country
for their upcoming expansion.
4
1| Oxford Committee for Famine Relief
Overview of Oxfam
Since 1942, Oxfam has focused its efforts on abolishing poverty. Successful campaigns within Greece
and Jamaica include the 1943 Greek Red Cross project (Isaac 2015) and the adjustment of Jamaica’s
Debt in 1991 (Kirton and Ferguson 1992). The non-profit organisation claims 82 per cent of every
pound that is donated to their organisation would go ‘directly to emergency, development and
campaigning work’ (Oxfam GB 2018b). The organisation offers both services and physical goods, but
for the purpose of this report, I am going to focus on their tangible products. In terms of retail
competitors, Oxfam’s main UK humanitarian charity competitors are International Aid Trust and Save
The Children, however Oxfam is the only one that is subsidised by the government (Oxfam GB 2017).
To date, Oxfam’s worked on over 22 projects within Greece that focused on the ‘ECHO response’ and
the ‘Migrant crisis’ in contrast, Jamaica has been benefited by only one project – the ‘Preparedness
integration in livelihoods and urban planning in the Caribbean’ in 2009 (Oxfam ATLAS 2018). A
potential expansion of the retail part of Oxfam into Greece or Jamaica could offer the charitable
institution a local advantage (Saxton 1996) and bring domestic goods into their stores.
In terms of marketing mix for charities, Bruce (1998) believes the four ‘Ps’ (McCarthy 1960) should
be increased to eight ‘Ps’ in an attempt to understand all aspects of non-profit organisations such as
Oxfam. The combined suitability of the two frameworks allows for both monetary ‘Product, Price,
Promotion, Place’ and non-monetary assets such as ‘Philosophy, People, Physical evidence and
Process’ to be defined. Eight Ps are vital for evaluation the complete scope of a non-profit
organisation as the traditional 4Ps model by McCarthy (1960) focuses primarily on tangible aspects.
Philosophy
Oxfam believes that the ‘most effective form of development is the development of people.’ (Sargent
1989) and giving everyone the ‘right to realise their potential’ (Oxfam International 2018) through
eradicating poverty and promoting equality is the right way forward. Their beliefs are shared among
all franchises and continuously applied through their products. In terms of the retail side, the
organisation promotes equality through directly benefiting Fair Trade producers (Renard 2003).
Product
Retail product offering includes donated gifts in the form of second-hand books, clothes, houseware
and CDs as well as ‘Oxfam Unwrapped Gifts’ and Christmas merchandise. Items bought online or in
store ‘directly benefit Fair Trade producers’ (Oxfam GB 2018c). As mentioned in the introduction, 82
pence of every pound get invested back into organisational causes. Because of the nature of second-
hand goods, the Oxfam shop will not have to transfer goods across to the new market, but simply
encourage donations from the domestic consumers. The benefit of this strategy is that there would
be no low or no transportation costs.
Price
In an attempt to raise as much money as possible and meet the 82 pence goal for every pound, Oxfam
has adopted a profit focused pricing policy that also provides value for money. Smithers (2014)
5
investigated the controversy of their strategy and claimed consumers find the pricing as ‘too
expensive’. In terms of discounts they give discount up to up to 20% when consumers pay using an
Oxfam Voucher.
Promotion
The Oxfam UK shop uses various promotional channels. Historically, the organisation is known for
the effective use of traditional forms of media like television campaigns such as the ‘Cathy Come
Home’ campaign that captured the organisation’s unique identity (Bruce 1998) and encouraged
people to donate money and clothes. In terms of promoting the online shop, Oxfam’s “A world of
Unique Treasures” campaign in 2015 captured showcased the rich variety of over 100,000 items
(Oxfam GB 2015). They have established an online presence on twitter and Instagram as well as
newsletter. The benefits of online presence are that users from all over the world could be reached
without a need for physical expansion. When entering the new market, Oxfam could choose to create
a target advert and promote their shop only to the domestic market, thereby ensure cost efficiency.
Place
There are roughly 650 physical Oxfam Shops and donation points in Britain (Oxfam GB 2018d). The
Oxfam shop has an online presence which allows everyone with access to internet to purchase fair
trade goods. Oxfam’s proven track record of successfully working on multiple fronts will be beneficial
when they proceed to expand into a new market.
People
As a non-profit organisation Oxfam relies heavily on volunteer involvement. However, store
managers and part time workers are employed to work within the stores. Interpersonal and
communication skills are competencies required from candidates (Oxfam GB 2018e).
Physical evidence
Tangible support in the form of aid kits and money has been sent out to countries all over the world
and has come directly from the profits raised by the Oxfam Shops. Example of emergency aid
campaign would be the Iraq crisis appeal that aims to help over 300,000 people with provision of
water, cash and hygiene items (Oxfam GB 2018f).
Process
As discussed previously, the organisation focuses on uniting communities for a common cause.
Through voluntary or paid work, the organisational members contribute towards the common cause.
From the consumer point of view, 82% of every pound goes directly into fundraising. Their processes
and shared values are easily transferrable thereby could be successfully adapted into the chosen
market of entry.
Overall, product, promotion and process would be most useful to Oxfam when in terms of their
potential expansion in to either Greece or Jamaica because of the transferability of those aspects and
the potential value creation that they could offer.
6
2|PESTEL Analyses of Greece & Jamaica
A complete PESTEL Analysis would include Political, Economic, Social, Technological, Environmental
and Legal factors (Yüksel 2012). Conversely, for this project it is important to focus on the key macro-
environmental factors that hold the greatest impact in relation to the potential expansion. In order
for the analysis to be effective, I chose to explore the Economic, Social and Technological factors.
Economic perspective would give an overview of the purchasing power of the consumers, social
would understand what the consumers’ purchasing habits might be and technological would explore
the opportunity of having an e-commerce presence. The evaluated three factors would of both
countries and assessed through the same metrics and data sources to ensure the reliability of this
research. The analysis is important to the report as it gives a direct comparison of both market in
relation to the prospective expansion.
7
2.1 | PESTEL Analysis of Greece
Economic
As an advanced industrialised country (Hollensen 2011) and member an economic union (Doole et
al. 2017, UNDP 2016a), the Greek tertiary economic factors play an important role in analysing the
economic perspectives of the country. Despite facing the ‘worst in modern history’ (Kouretas and
Vlamis 2010), recent reports from Euromonitor International (2017a) suggest GDP per capita is
increasing, now nearing €12,300. As member of the Eurozone, Greece exchange rates against the
GBP are based on the state of the Eurozone as a whole. In terms of average consumer expenditure,
it varies between 10,000 to 80,000 USD. The economy is predominantly dependent on large
businesses, as 20% of small businesses ‘have closed’. Unemployment rate is expected to fall from the
current 21.4% recorded in 2017. The optimistic figures indicate Oxfam could use the advantage of
being a large business within Greece. In relation to the marketing mix, opportunities in terms of
product would be most relevant. As unemployment rate is declining and GDP per capita is on the
rise, consumers would be able to spend their disposable income on new goods, thereby potentially
donating old possessions such as clothes to the Oxfam Shop. Alternatively, it is an opportunity for
consumers to purchase ‘sourced by Oxfam’ merchandise. Equally, as a UK based organisation, Oxfam
should consider the impacts of BREXIT in terms of potential devaluation of the GBP (Blitz 2017) prior
to potential expansion into European markets. As the physical Oxfam Shops only operate within the
UK, it would be vital for the first expansion to be successful.
Social
Greek population is estimated to be around 10.7 million (Euromonitor International 2017a). The
official language is Greek. As an ancient civilisation, Greeks pride themselves on their rich history,
mythology and religious believes. In terms of the population’s age, 65.4% (World Bank 2016a) are
aged 15 to 64 years thereby economically active. As a European culture, Greece has more in common
with the UK than a non-European country, thereby people are more likely to share the same values
and philosophy (Tagiuri 2014). Over half of the population is economically active, thereby influencing
demand for goods and services which could help the Oxfam shop prosper both in terms of second
hand donations and in terms of demand for products.
Technological
Based to the most recent Global Information Technology Report by the World Economic Forum
(2016a), 97% of adults are IT literate. There is a 99.9% network coverage and 4G coverage 79.8% (IHS
Markit Ltd. and Point Topic 2016) allowing quick internet speeds. The Greek technological
infrastructure would be beneficial for the establishment of Oxfam’s Online Shop, in fact the e-
commerce platform already ships some of its goods internationally (see Appendix 2). Relating back
to the 8Ps, promotion through online channels would be more accessible. Literacy levels are equally
as important. They would allow for local hiring thereby be inclined the organisations’ philosophy.
8
2.2 | PESTEL Analysis of Jamaica
Economic
Jamaica has been given Human Development Index (HDI) of a high development country and a
member of the Caribbean Community (UNDP 2016b; CARICOM 2018). In terms of tertiary economic
factors, Jamaica’s economic perspectives indicate opportunity for potential expansion of the Oxfam
Shop. According data from the World Economic Forum (2017), Jamaicans have the ‘largest share of
public debt in GDP per capita in the world’. Blake (2015) claims the debt has a negative effect on
economic development. Recent reports from Euromonitor International (2017b) suggest GDP per
capita is around 611,636 Jamaican Dollars (JMD) or €3,911. As Jamaica uses its own independent
currency, this gives the Bank of Jamaica wider control over exchange rates. The economy is
predominantly dependent tourism and agriculture. Unemployment rate for the past two years has
stayed at 12.8%. The data indicates lower purchasing power of the Jamaican consumers than the
Greek, however, equally the costs of running Oxfam shops are likely to be lower. In regard to
unemployment, Oxfam Shops could help the country by creating jobs for locals. However,
transportation of goods to Jamaica could be considered a costly activity and equally, present risks
related to the uncertainty around BREXIT. In relation to section one, the economic factors indicate
need for foreign investment. As a non-profit organisation’s philosophy is focused on developing
people, thereby investing into a developing economy (United Nations 2017) would match Oxfam’s
values.
Social
Jamaica has a population of 2.8 million (Euromonitor International 2017b). The official language of
Jamaica is English, however the local dialect that is a mixture of English, Spanish and French has been
identified as Patois (Davidson and Schwartz 1995). The nation prides itself on preserving traditions,
be it through the form of clothing, music, crafts and other forms of expression. Austin-Broos (1997)
describes Jamaica as a very religious society, the main religion is Christianity. In terms of age
distribution 67% of Jamaicans are aged 15-64 (World Bank 2016b). Speaking the same native tongue
would make the expansion an easier task as there would be no language barrier and could allow an
opportunity for direct use of slogans that have been described within Oxfam’s philosophy in section
one.
Technological
As described in the previous parts of the PESTEL Analysis, the country depends on tourism and
agriculture as main forms of income. IT literacy is 78.6% (World Economic Forum 2016b). According
to an article from the Jamaica Observer (2014), four years ago Jamaica had 92% 4G coverage. The
Jamaican government is in the process of stimulating research and development through their ‘100
day start-up programme’ (Souza 2014), but corruption and political differences prevent
breakthrough of scientific developments. Political uncertainty could negatively influence Oxfam’s
shop as it means higher costs related to set up delays. Corruption is often linked with misuse of
foreign investment (Andersson and Heywood 2009), thereby Oxfam will not be able to execute its
process and use 82% of the donations to support a charitable cause.
9
3| Evaluation
This section is going to evaluate both countries and outline the different factors that need to be
considered prior to the expansion.
3.1 | Expansion into Greece
Advantages
Geographically, Greece is closer to Oxfam GB than Jamaica. In terms of culture, as described in
section two, the Greek (as Europeans) are going to have less cultural differences to the British, hence
it would be easier to negotiate deals. In terms of purchasing power, as referred to in section two, the
Greek consumer has more disposable income than the Jamaican consumer. Population size would
also come very beneficial as this increases the chances of getting people involved in the vision of
Oxfam.
Disadvantages
As discussed in the PESTEL Analysis, Expansion into Greece could be costly for the Oxfam Shop as the
value of the pound has been declining since the BREXIT vote. Further uncertainty is likely to follow.
In regard to language barrier, Oxfam would have to ensure they have native speakers who could sell
the goods and native website developers who can run the ecommerce side of the business.
3.2 | Expansion into Jamaica
Advantages
In terms of social similarities, Jamaicans speak English, so there would be no language barrier. Going
into Jamaica would offer Oxfam the opportunity to make a difference by creating jobs and further
stimulate investment. Thereby satisfying the organisation’s philosophy. Encouraging investment
could result in long term effects such as reduction of the public debt thereby ‘eliminating poverty’.
Another benefit of entering Jamaica in terms of economics would be the value of the JMD against
the pound which has been historically declining for decades (see Appendix 3), meaning it would be a
lower risk investment for the Oxfam Shop compared to Greece.
Disadvantages
In relation to the marketing mix, there are a number of challenges. Unlike Greece, Jamaica is further
away from the organisation’s headquarters, meaning transportation costs are likely to be higher for
goods like ‘sourced by Oxfam’. Referring back to the PESTEL analysis, the considerably smaller
population also limits the potential revenue intake. Political instability and corruption are likely to
negatively impact the shop because of higher set up costs. Whilst Oxfam’s philosophy focuses on
eradicating poverty, their shop concentrates on bringing product and promotion. Thereby, a more
suitable alternative for Jamaica would be an expansion of the humanitarian support in Jamaica.
Advantages Disadvantages
Greece
o More similitudes in culture
o Larger population
o Higher Purchasing power
o Declining exchange rates
o Language barrier
Jamaica
o English as a first language
o Higher economic value of GBP
against JMD
o Distance to UK
o Smaller population
o Political uncertainty and corruption
(Figure 1: Comparison Table for Greece and Jamaica)
10
4| Conclusion & Recommendation
In conclusion, despite the uncertainty of BREXIT, the Oxfam Shop should expand into Greece.
Contributing factors include higher potential in terms of population size, spending power and
location than Jamaica. The project critically analysed both markets. Based on the findings, an
expansion into Greece would be less risky (as summarised in Figure 1) and more profitable for the
Oxfam shop. My recommendations are to primarily establish their ecommerce in order to gain a
momentum. Gradually, that could lead to setting up of physical stores and donation points similar to
the ones used in the UK. Additional revenue would help Oxfam give everyone the right to ‘realise
their potential’.
11
Reference List
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12
<http:////www.portal.euromonitor.com/portal/?Oe4V52rzYV51SECBAU%2f%2fnQ%3d%3d> [1
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Jamaica Observer (2014) Digicel Says Mobile 4G Now 92% Population Coverage [online] available
from <http://www.jamaicaobserver.com/business/Digicel-says-mobile-4G-now-92--population-
coverage> [8 February 2018]
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(4), 391-404
McCarthy, E. (1960) Basic Marketing - A Managerial Approach. R.D. Irwin
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<https://atlas.oxfamnovib.nl/#/> [1 February 2018]
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centre/multimedia/oxfam-logos> [1 February 2018]
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[1 February 2018]
13
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Oxfam GB (2018d) Oxfam's High Street Shops & Donation Points [online] available from
<https://www.oxfam.org.uk/shop/shop-finder> [7 February 2018]
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<https://www.oxfam.org/en/our-purpose-and-beliefs> [7 February 2018]
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15
Yüksel, I. (2012) "Developing A Multi-Criteria Decision Making Model For PESTEL Analysis".
International Journal Of Business And Management 7 (24)
Further Reading
Adkins, S. (1999) Cause Related Marketing: Who Cares Wins. Oxford; Boston: Butterworth-
Heinemann
Euromonitor International (2017c) Income And Expenditure: Greece [online] Euromonitor
International. available from
<http:////www.portal.euromonitor.com/portal/?OAE0%2f%2bCoLn5lADX8jNNv2w%3d%3d> [1
February 2018]
Hellenic Parliament: The Institution (2018) available from
<http://www.hellenicparliament.gr/en/Vouli-ton-Ellinon/O-Thesmos/> [1 February 2018]
Jobber, D. and Ellis-Chadwick, F. (2013) Principles And Practice Of Marketing. London: McGraw-Hill
Higher Education
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available from <https://www.ft.com/content/87d58ebf-02ad-34e4-bb1c-5efc389007c4> [1
February 2018]
Oxfam GB (2018g) Policy & Practice [online] available from <https://policy-practice.oxfam.org.uk/>
[1 February 2018]
Oxfam GB (2018h) Oxfam's Online Shop - Oxfam GB [online] available from
<https://www.oxfam.org.uk/shop> [30 January 2018]
Sargeant, A. and Wymer, W. (2008) The Routledge Companion To Nonprofit Marketing. London:
Routledge
Tagiuri, G. (2014) "Forging Identity: The EU And European Culture". Survival 56 (1), 157-178
16
Varadarajan, P. and Menon, A. (1988) "Cause-Related Marketing: A Coalignment Of Marketing
Strategy And Corporate Philanthropy". Journal Of Marketing 52 (3), 58
World Bank (2016c) Jamaica GDP Per Capita [online] available from
<https://data.worldbank.org/share/widget?indicators=NY.GDP.PCAP.CD&locations=JM> [8
February 2018]
Wymer, W. and Samu, S. (2003) Nonprofit And Business Sector Collaboration. New York: Best
Business Books
17
Appendices
Appendix 1| Interaction with Oxfam GB
When I began my research on 30th
January, I got in touch with Oxfam’s team through social media in
order to ensure I can get up to date information on their latest activities.
They recommended reading through their Policy and Practice website and to explore the ATLAS
Project archive.
18
Appendix 2| Interaction with Oxfam Online Shop
In order to gain further understanding of the Oxfam Shop, I got in touch with their team through
social media.
19
Appendix 3| Exchange rates comparison
Value of GBP against the Euro since 2002 Value of GBP against the JMD since 2002.
The data indicates two trends. Primarily that GBP’s value against the Euro has stayed reasonably
constant for the past two decades. However, there has been a 29.49% fall in the value of the GBP
against the EUR since 2000. Secondary, during the same period the value of the British Pounds has
increased by 152.74% indicating devaluation of the JMD (Fxtop 2018).
Reference
Fxtop (2018) Historical Comparison Graph For Currency Exchange Rates Since 2000 [online] available from < http://fxtop.com/en/historical-exchange-
rates comparison.php?C1a=GBP&C1b=EUR&C2a=GBP&C2b=JMD&C3a=&C3b=&C4a=&C4b=&C5a=&C5b=&C6a=&C6b=&DD1=01&MM1
=01&YYYY1=2000&C7a=&C8a=&C9a=&C10a=&C7b=&C8b=&C9b=&C10b=&B=1&P=&I=1&DD2=20&MM2=02&YYYY2=2018&M=1&btnOK=Go! > [21
February 2018]

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Oxfam Expansion - Report on entering Greece and Jamaica

  • 1. Expansion Report on entering Greece and Jamaica By: Yordan Dimitrov SID: 5446890 (Oxfam GB 2018а)
  • 2. 2 TABLE OF CONTENTS INTRODUCTION...................................................................................................................................................... 3 1| OXFORD COMMITTEE FOR FAMINE RELIEF .......................................................................................................... 4 OVERVIEW OF OXFAM.............................................................................................................................................................4 2|PESTEL ANALYSES OF GREECE & JAMAICA ............................................................................................................ 6 2.1 | PESTEL ANALYSIS OF GREECE..........................................................................................................................................7 2.2 | PESTEL ANALYSIS OF JAMAICA.........................................................................................................................................8 3| EVALUATION...................................................................................................................................................... 9 3.1 | EXPANSION INTO GREECE ................................................................................................................................................9 3.2 | EXPANSION INTO JAMAICA...............................................................................................................................................9 4| CONCLUSION & RECOMMENDATION ................................................................................................................ 10 REFERENCE LIST.................................................................................................................................................... 11 FURTHER READING ...............................................................................................................................................................15 APPENDICES......................................................................................................................................................... 17 APPENDIX 1| INTERACTION WITH OXFAM GB............................................................................................................................17 APPENDIX 2| INTERACTION WITH OXFAM ONLINE SHOP..............................................................................................................18 APPENDIX 3| EXCHANGE RATES COMPARISON ...........................................................................................................................19
  • 3. 3 Introduction Primarily this report is going to provide an overview of the Oxfam charity with the use of theoretical frameworks by McCarthy (1960) and Bruce (1998). Following which, the project will analyse relevant macro-environmental factors of Greece and Jamaica through the use of PESTEL analysis. Based on the analysis of the two markets, advantages and disadvantages would be identified and a conclusion would be drawn. The purpose of this report is to provide a critical analysis of both markets and to highlight the value each market could offer for Oxfam in order to identify the more suitable country for their upcoming expansion.
  • 4. 4 1| Oxford Committee for Famine Relief Overview of Oxfam Since 1942, Oxfam has focused its efforts on abolishing poverty. Successful campaigns within Greece and Jamaica include the 1943 Greek Red Cross project (Isaac 2015) and the adjustment of Jamaica’s Debt in 1991 (Kirton and Ferguson 1992). The non-profit organisation claims 82 per cent of every pound that is donated to their organisation would go ‘directly to emergency, development and campaigning work’ (Oxfam GB 2018b). The organisation offers both services and physical goods, but for the purpose of this report, I am going to focus on their tangible products. In terms of retail competitors, Oxfam’s main UK humanitarian charity competitors are International Aid Trust and Save The Children, however Oxfam is the only one that is subsidised by the government (Oxfam GB 2017). To date, Oxfam’s worked on over 22 projects within Greece that focused on the ‘ECHO response’ and the ‘Migrant crisis’ in contrast, Jamaica has been benefited by only one project – the ‘Preparedness integration in livelihoods and urban planning in the Caribbean’ in 2009 (Oxfam ATLAS 2018). A potential expansion of the retail part of Oxfam into Greece or Jamaica could offer the charitable institution a local advantage (Saxton 1996) and bring domestic goods into their stores. In terms of marketing mix for charities, Bruce (1998) believes the four ‘Ps’ (McCarthy 1960) should be increased to eight ‘Ps’ in an attempt to understand all aspects of non-profit organisations such as Oxfam. The combined suitability of the two frameworks allows for both monetary ‘Product, Price, Promotion, Place’ and non-monetary assets such as ‘Philosophy, People, Physical evidence and Process’ to be defined. Eight Ps are vital for evaluation the complete scope of a non-profit organisation as the traditional 4Ps model by McCarthy (1960) focuses primarily on tangible aspects. Philosophy Oxfam believes that the ‘most effective form of development is the development of people.’ (Sargent 1989) and giving everyone the ‘right to realise their potential’ (Oxfam International 2018) through eradicating poverty and promoting equality is the right way forward. Their beliefs are shared among all franchises and continuously applied through their products. In terms of the retail side, the organisation promotes equality through directly benefiting Fair Trade producers (Renard 2003). Product Retail product offering includes donated gifts in the form of second-hand books, clothes, houseware and CDs as well as ‘Oxfam Unwrapped Gifts’ and Christmas merchandise. Items bought online or in store ‘directly benefit Fair Trade producers’ (Oxfam GB 2018c). As mentioned in the introduction, 82 pence of every pound get invested back into organisational causes. Because of the nature of second- hand goods, the Oxfam shop will not have to transfer goods across to the new market, but simply encourage donations from the domestic consumers. The benefit of this strategy is that there would be no low or no transportation costs. Price In an attempt to raise as much money as possible and meet the 82 pence goal for every pound, Oxfam has adopted a profit focused pricing policy that also provides value for money. Smithers (2014)
  • 5. 5 investigated the controversy of their strategy and claimed consumers find the pricing as ‘too expensive’. In terms of discounts they give discount up to up to 20% when consumers pay using an Oxfam Voucher. Promotion The Oxfam UK shop uses various promotional channels. Historically, the organisation is known for the effective use of traditional forms of media like television campaigns such as the ‘Cathy Come Home’ campaign that captured the organisation’s unique identity (Bruce 1998) and encouraged people to donate money and clothes. In terms of promoting the online shop, Oxfam’s “A world of Unique Treasures” campaign in 2015 captured showcased the rich variety of over 100,000 items (Oxfam GB 2015). They have established an online presence on twitter and Instagram as well as newsletter. The benefits of online presence are that users from all over the world could be reached without a need for physical expansion. When entering the new market, Oxfam could choose to create a target advert and promote their shop only to the domestic market, thereby ensure cost efficiency. Place There are roughly 650 physical Oxfam Shops and donation points in Britain (Oxfam GB 2018d). The Oxfam shop has an online presence which allows everyone with access to internet to purchase fair trade goods. Oxfam’s proven track record of successfully working on multiple fronts will be beneficial when they proceed to expand into a new market. People As a non-profit organisation Oxfam relies heavily on volunteer involvement. However, store managers and part time workers are employed to work within the stores. Interpersonal and communication skills are competencies required from candidates (Oxfam GB 2018e). Physical evidence Tangible support in the form of aid kits and money has been sent out to countries all over the world and has come directly from the profits raised by the Oxfam Shops. Example of emergency aid campaign would be the Iraq crisis appeal that aims to help over 300,000 people with provision of water, cash and hygiene items (Oxfam GB 2018f). Process As discussed previously, the organisation focuses on uniting communities for a common cause. Through voluntary or paid work, the organisational members contribute towards the common cause. From the consumer point of view, 82% of every pound goes directly into fundraising. Their processes and shared values are easily transferrable thereby could be successfully adapted into the chosen market of entry. Overall, product, promotion and process would be most useful to Oxfam when in terms of their potential expansion in to either Greece or Jamaica because of the transferability of those aspects and the potential value creation that they could offer.
  • 6. 6 2|PESTEL Analyses of Greece & Jamaica A complete PESTEL Analysis would include Political, Economic, Social, Technological, Environmental and Legal factors (Yüksel 2012). Conversely, for this project it is important to focus on the key macro- environmental factors that hold the greatest impact in relation to the potential expansion. In order for the analysis to be effective, I chose to explore the Economic, Social and Technological factors. Economic perspective would give an overview of the purchasing power of the consumers, social would understand what the consumers’ purchasing habits might be and technological would explore the opportunity of having an e-commerce presence. The evaluated three factors would of both countries and assessed through the same metrics and data sources to ensure the reliability of this research. The analysis is important to the report as it gives a direct comparison of both market in relation to the prospective expansion.
  • 7. 7 2.1 | PESTEL Analysis of Greece Economic As an advanced industrialised country (Hollensen 2011) and member an economic union (Doole et al. 2017, UNDP 2016a), the Greek tertiary economic factors play an important role in analysing the economic perspectives of the country. Despite facing the ‘worst in modern history’ (Kouretas and Vlamis 2010), recent reports from Euromonitor International (2017a) suggest GDP per capita is increasing, now nearing €12,300. As member of the Eurozone, Greece exchange rates against the GBP are based on the state of the Eurozone as a whole. In terms of average consumer expenditure, it varies between 10,000 to 80,000 USD. The economy is predominantly dependent on large businesses, as 20% of small businesses ‘have closed’. Unemployment rate is expected to fall from the current 21.4% recorded in 2017. The optimistic figures indicate Oxfam could use the advantage of being a large business within Greece. In relation to the marketing mix, opportunities in terms of product would be most relevant. As unemployment rate is declining and GDP per capita is on the rise, consumers would be able to spend their disposable income on new goods, thereby potentially donating old possessions such as clothes to the Oxfam Shop. Alternatively, it is an opportunity for consumers to purchase ‘sourced by Oxfam’ merchandise. Equally, as a UK based organisation, Oxfam should consider the impacts of BREXIT in terms of potential devaluation of the GBP (Blitz 2017) prior to potential expansion into European markets. As the physical Oxfam Shops only operate within the UK, it would be vital for the first expansion to be successful. Social Greek population is estimated to be around 10.7 million (Euromonitor International 2017a). The official language is Greek. As an ancient civilisation, Greeks pride themselves on their rich history, mythology and religious believes. In terms of the population’s age, 65.4% (World Bank 2016a) are aged 15 to 64 years thereby economically active. As a European culture, Greece has more in common with the UK than a non-European country, thereby people are more likely to share the same values and philosophy (Tagiuri 2014). Over half of the population is economically active, thereby influencing demand for goods and services which could help the Oxfam shop prosper both in terms of second hand donations and in terms of demand for products. Technological Based to the most recent Global Information Technology Report by the World Economic Forum (2016a), 97% of adults are IT literate. There is a 99.9% network coverage and 4G coverage 79.8% (IHS Markit Ltd. and Point Topic 2016) allowing quick internet speeds. The Greek technological infrastructure would be beneficial for the establishment of Oxfam’s Online Shop, in fact the e- commerce platform already ships some of its goods internationally (see Appendix 2). Relating back to the 8Ps, promotion through online channels would be more accessible. Literacy levels are equally as important. They would allow for local hiring thereby be inclined the organisations’ philosophy.
  • 8. 8 2.2 | PESTEL Analysis of Jamaica Economic Jamaica has been given Human Development Index (HDI) of a high development country and a member of the Caribbean Community (UNDP 2016b; CARICOM 2018). In terms of tertiary economic factors, Jamaica’s economic perspectives indicate opportunity for potential expansion of the Oxfam Shop. According data from the World Economic Forum (2017), Jamaicans have the ‘largest share of public debt in GDP per capita in the world’. Blake (2015) claims the debt has a negative effect on economic development. Recent reports from Euromonitor International (2017b) suggest GDP per capita is around 611,636 Jamaican Dollars (JMD) or €3,911. As Jamaica uses its own independent currency, this gives the Bank of Jamaica wider control over exchange rates. The economy is predominantly dependent tourism and agriculture. Unemployment rate for the past two years has stayed at 12.8%. The data indicates lower purchasing power of the Jamaican consumers than the Greek, however, equally the costs of running Oxfam shops are likely to be lower. In regard to unemployment, Oxfam Shops could help the country by creating jobs for locals. However, transportation of goods to Jamaica could be considered a costly activity and equally, present risks related to the uncertainty around BREXIT. In relation to section one, the economic factors indicate need for foreign investment. As a non-profit organisation’s philosophy is focused on developing people, thereby investing into a developing economy (United Nations 2017) would match Oxfam’s values. Social Jamaica has a population of 2.8 million (Euromonitor International 2017b). The official language of Jamaica is English, however the local dialect that is a mixture of English, Spanish and French has been identified as Patois (Davidson and Schwartz 1995). The nation prides itself on preserving traditions, be it through the form of clothing, music, crafts and other forms of expression. Austin-Broos (1997) describes Jamaica as a very religious society, the main religion is Christianity. In terms of age distribution 67% of Jamaicans are aged 15-64 (World Bank 2016b). Speaking the same native tongue would make the expansion an easier task as there would be no language barrier and could allow an opportunity for direct use of slogans that have been described within Oxfam’s philosophy in section one. Technological As described in the previous parts of the PESTEL Analysis, the country depends on tourism and agriculture as main forms of income. IT literacy is 78.6% (World Economic Forum 2016b). According to an article from the Jamaica Observer (2014), four years ago Jamaica had 92% 4G coverage. The Jamaican government is in the process of stimulating research and development through their ‘100 day start-up programme’ (Souza 2014), but corruption and political differences prevent breakthrough of scientific developments. Political uncertainty could negatively influence Oxfam’s shop as it means higher costs related to set up delays. Corruption is often linked with misuse of foreign investment (Andersson and Heywood 2009), thereby Oxfam will not be able to execute its process and use 82% of the donations to support a charitable cause.
  • 9. 9 3| Evaluation This section is going to evaluate both countries and outline the different factors that need to be considered prior to the expansion. 3.1 | Expansion into Greece Advantages Geographically, Greece is closer to Oxfam GB than Jamaica. In terms of culture, as described in section two, the Greek (as Europeans) are going to have less cultural differences to the British, hence it would be easier to negotiate deals. In terms of purchasing power, as referred to in section two, the Greek consumer has more disposable income than the Jamaican consumer. Population size would also come very beneficial as this increases the chances of getting people involved in the vision of Oxfam. Disadvantages As discussed in the PESTEL Analysis, Expansion into Greece could be costly for the Oxfam Shop as the value of the pound has been declining since the BREXIT vote. Further uncertainty is likely to follow. In regard to language barrier, Oxfam would have to ensure they have native speakers who could sell the goods and native website developers who can run the ecommerce side of the business. 3.2 | Expansion into Jamaica Advantages In terms of social similarities, Jamaicans speak English, so there would be no language barrier. Going into Jamaica would offer Oxfam the opportunity to make a difference by creating jobs and further stimulate investment. Thereby satisfying the organisation’s philosophy. Encouraging investment could result in long term effects such as reduction of the public debt thereby ‘eliminating poverty’. Another benefit of entering Jamaica in terms of economics would be the value of the JMD against the pound which has been historically declining for decades (see Appendix 3), meaning it would be a lower risk investment for the Oxfam Shop compared to Greece. Disadvantages In relation to the marketing mix, there are a number of challenges. Unlike Greece, Jamaica is further away from the organisation’s headquarters, meaning transportation costs are likely to be higher for goods like ‘sourced by Oxfam’. Referring back to the PESTEL analysis, the considerably smaller population also limits the potential revenue intake. Political instability and corruption are likely to negatively impact the shop because of higher set up costs. Whilst Oxfam’s philosophy focuses on eradicating poverty, their shop concentrates on bringing product and promotion. Thereby, a more suitable alternative for Jamaica would be an expansion of the humanitarian support in Jamaica. Advantages Disadvantages Greece o More similitudes in culture o Larger population o Higher Purchasing power o Declining exchange rates o Language barrier Jamaica o English as a first language o Higher economic value of GBP against JMD o Distance to UK o Smaller population o Political uncertainty and corruption (Figure 1: Comparison Table for Greece and Jamaica)
  • 10. 10 4| Conclusion & Recommendation In conclusion, despite the uncertainty of BREXIT, the Oxfam Shop should expand into Greece. Contributing factors include higher potential in terms of population size, spending power and location than Jamaica. The project critically analysed both markets. Based on the findings, an expansion into Greece would be less risky (as summarised in Figure 1) and more profitable for the Oxfam shop. My recommendations are to primarily establish their ecommerce in order to gain a momentum. Gradually, that could lead to setting up of physical stores and donation points similar to the ones used in the UK. Additional revenue would help Oxfam give everyone the right to ‘realise their potential’.
  • 11. 11 Reference List Andersson, S. and Heywood, P. (2009) "The Politics Of Perception: Use And Abuse Of Transparency International's Approach To Measuring Corruption". Political Studies 57 (4), 746-767 Austin-Broos, D. (1997) Jamaica Genesis. Kingston: Ian Randle Blake, T. (2015) "Investigating The Impact Of Public Debt On Economic Growth In Jamaica". Fiscal And Economic Programme Monitoring Department Bank Of Jamaica [online] 1-22. available from <http://boj.org.jm/uploads/pdf/papers_pamphlets/papers_pamphlets_Investigating_the_Impact_o f_Public_Debt_on_Economic_Growth_in_Jamaica.pdf> [8 February 2018] Blitz, R. (2017) "Black Wednesday's Lessons For Sterling". Financial Times Sep 16 2017, 15 Bruce, I. (1998) Successful Charity Marketing: Meeting Need. London: ICSA Pub. with Prentice Hall Europe CARICOM (2018) Country Profile For Jamaica —Caribbean Community [online] available from <https://caricom.org/about-caricom/who-we-are/our-governance/heads-of-government/jamaica> [8 February 2018] Davidson, C. and Schwartz, R. (1995) "Semantic Boundaries In The Lexicon: Examples From Jamaican Patois". Linguistics And Education 7 (1), 47-64 Doole, I., Lowe, R. and Kenyon, A. (2017) International Marketing Strategy. Australia: Cengage Learning Euromonitor International (2017a) Greece: Country Profile [online] Euromonitor International. available from <http://www.portal.euromonitor.com/portal/?m%2b3ngd72brCUU3xdaaQPzQ%3d%3d> [1 February 2018] Euromonitor International (2017b) Jamaica: Country Profile [online] Euromonitor International. available from
  • 12. 12 <http:////www.portal.euromonitor.com/portal/?Oe4V52rzYV51SECBAU%2f%2fnQ%3d%3d> [1 February 2018] Hollensen, S. (2011) Global Marketing: A Decision-Oriented Approach. Harlow: Financial Times Prentice Hall IHS Markit Ltd. and Point Topic (2016) Broadband Coverage In Europe 2016 [online] Greece. European Commission. available from <https://ec.europa.eu/newsroom/document.cfm?doc_id=47090> [8 February 2018] Isaac, A. (2015) Charity Campaigns That Changed The Way We Think – In Pictures [online] available from <https://www.theguardian.com/voluntary-sector-network/gallery/2015/feb/02/charity- campaigns-influential-oxfam-unicef-adverts-gallery> [7 February 2018] Jamaica Observer (2014) Digicel Says Mobile 4G Now 92% Population Coverage [online] available from <http://www.jamaicaobserver.com/business/Digicel-says-mobile-4G-now-92--population- coverage> [8 February 2018] Kirton, C. and Ferguson, J. (1992) Jamaica. Oxford, Eng.: Oxfam Kouretas, G. and Vlamis, P. (2010) "The Greek Crisis: Causes And Implications". Panoeconomicus 57 (4), 391-404 McCarthy, E. (1960) Basic Marketing - A Managerial Approach. R.D. Irwin Oxfam ATLAS (2018) ATLAS: The Oxfam Project Browser [online] available from <https://atlas.oxfamnovib.nl/#/> [1 February 2018] Oxfam GB (2018a) Logo [online] available from <https://www.oxfam.org.uk/media- centre/multimedia/oxfam-logos> [1 February 2018] Oxfam GB (2018b) What We Do [online] available from <https://www.oxfam.org.uk/what-we-do> [1 February 2018]
  • 13. 13 Oxfam GB (2018c) Faqs: Buying [online] available from <https://www.oxfam.org.uk/shop/help/buying-faqs> [7 February 2018] Oxfam GB (2018d) Oxfam's High Street Shops & Donation Points [online] available from <https://www.oxfam.org.uk/shop/shop-finder> [7 February 2018] Oxfam GB (2018e) Working At Oxfam [online] available from <https://jobs.oxfam.org.uk/> [7 February 2018] Oxfam GB (2018f) Iraq Crisis Appeal [online] available from <https://www.oxfam.org.uk/what-we- do/emergency-response/iraq-crisis> [8 February 2018] Oxfam International (2018) Our Purpose And Beliefs [online] available from <https://www.oxfam.org/en/our-purpose-and-beliefs> [7 February 2018] Oxfam GB (2017) Oxfam Response To UK Government Announcement To Give £200M In Aid To South Sudan And Somalia [online] available from <https://www.oxfam.org.uk/media-centre/press- releases/2017/02/aid-to-s-sudan-and-somalia> [15 February 2018] Oxfam GB (2015) Award Winning Photographer Shoots Stunning New Oxfam Online Shop Advertising Campaign [online] available from <https://www.oxfam.org.uk/media-centre/press- releases/2015/06/award-winning-photographer-shoots-stunning-new-oxfam-online-shop- advertising-campaign> [7 February 2018] Renard, M. (2003) "Fair Trade: Quality, Market And Conventions". Journal Of Rural Studies 19 (1), 87-96 Sargent, J. (1989) "The Field Directors' Handbook: An OXFAM Manual For Development Workers (4Th Edition). Oxfam Publications, Oxford, 1985, 512 Pp.". Public Administration And Development 9 (5), 580-580 Saxton, J. (1996) "Strategies For Competitive Advantage In Nonprofit Organisations". International Journal Of Nonprofit And Voluntary Sector Marketing 1 (1), 50-62
  • 14. 14 Smithers, R. (2014) Wonder What Happens To Your Oxfam Donations? Sorted [online] available from <https://www.theguardian.com/money/2014/feb/15/what-happens-to-oxfam-donations- sorted> [7 February 2018] Souza, C. (2014) Jamaica Launches Startup Accelerator To Attract Investors [online] available from <https://tech.co/jamaica-launches-startup-accelerator-attract-entrepreneurs-investors-2014-07> [8 February 2018] UNDP (2016a) Human Development Report [online] Greece. United Nations Development Programme. available from <http://hdr.undp.org/en/countries/profiles/GRC> [8 February 2018] UNDP (2016b) Human Development Report [online] Jamaica. United Nations Development Programme. available from <http://hdr.undp.org/en/countries/profiles/JAM> [8 February 2018] United Nations (2017) World Investment Report. Investment and the digital economy. United Nations Conference On Trade And Development World Bank (2016a) Population Ages 15-64%: Greece [online] available from <https://data.worldbank.org/indicator/SP.POP.1564.TO.ZS?locations=GR> [15 February 2018] World Bank (2016b) Population Ages 15-64%: Jamaica [online] available from <https://data.worldbank.org/indicator/SP.POP.1564.TO.ZS?locations=JM> [15 February 2018] World Economic Forum (2017) Jamaica: Global Competitiveness Report [online] available from <http://reports.weforum.org/pdf/gci-2016-2017/WEF_GCI_2016_2017_Profile_JAM.pdf> [15 February 2018] World Economic Forum (2016a) The Global Information Technology Report [online] Greece. World Economic Forum. available from <http://www3.weforum.org/docs/GITR2016/WEF_GITR_Greece_2016.pdf> [8 February 2018] World Economic Forum (2016b) The Global Information Technology Report [online] Jamaica. World Economic Forum. available from <http://www3.weforum.org/docs/GITR2016/WEF_GITR_Jamaica_2016.pdf> [8 February 2018]
  • 15. 15 Yüksel, I. (2012) "Developing A Multi-Criteria Decision Making Model For PESTEL Analysis". International Journal Of Business And Management 7 (24) Further Reading Adkins, S. (1999) Cause Related Marketing: Who Cares Wins. Oxford; Boston: Butterworth- Heinemann Euromonitor International (2017c) Income And Expenditure: Greece [online] Euromonitor International. available from <http:////www.portal.euromonitor.com/portal/?OAE0%2f%2bCoLn5lADX8jNNv2w%3d%3d> [1 February 2018] Hellenic Parliament: The Institution (2018) available from <http://www.hellenicparliament.gr/en/Vouli-ton-Ellinon/O-Thesmos/> [1 February 2018] Jobber, D. and Ellis-Chadwick, F. (2013) Principles And Practice Of Marketing. London: McGraw-Hill Higher Education Khan, M. (2017) "Greece Gets €8.5Bn Bailout Tranche From EU Creditors". Financial Times [online] available from <https://www.ft.com/content/87d58ebf-02ad-34e4-bb1c-5efc389007c4> [1 February 2018] Oxfam GB (2018g) Policy & Practice [online] available from <https://policy-practice.oxfam.org.uk/> [1 February 2018] Oxfam GB (2018h) Oxfam's Online Shop - Oxfam GB [online] available from <https://www.oxfam.org.uk/shop> [30 January 2018] Sargeant, A. and Wymer, W. (2008) The Routledge Companion To Nonprofit Marketing. London: Routledge Tagiuri, G. (2014) "Forging Identity: The EU And European Culture". Survival 56 (1), 157-178
  • 16. 16 Varadarajan, P. and Menon, A. (1988) "Cause-Related Marketing: A Coalignment Of Marketing Strategy And Corporate Philanthropy". Journal Of Marketing 52 (3), 58 World Bank (2016c) Jamaica GDP Per Capita [online] available from <https://data.worldbank.org/share/widget?indicators=NY.GDP.PCAP.CD&locations=JM> [8 February 2018] Wymer, W. and Samu, S. (2003) Nonprofit And Business Sector Collaboration. New York: Best Business Books
  • 17. 17 Appendices Appendix 1| Interaction with Oxfam GB When I began my research on 30th January, I got in touch with Oxfam’s team through social media in order to ensure I can get up to date information on their latest activities. They recommended reading through their Policy and Practice website and to explore the ATLAS Project archive.
  • 18. 18 Appendix 2| Interaction with Oxfam Online Shop In order to gain further understanding of the Oxfam Shop, I got in touch with their team through social media.
  • 19. 19 Appendix 3| Exchange rates comparison Value of GBP against the Euro since 2002 Value of GBP against the JMD since 2002. The data indicates two trends. Primarily that GBP’s value against the Euro has stayed reasonably constant for the past two decades. However, there has been a 29.49% fall in the value of the GBP against the EUR since 2000. Secondary, during the same period the value of the British Pounds has increased by 152.74% indicating devaluation of the JMD (Fxtop 2018). Reference Fxtop (2018) Historical Comparison Graph For Currency Exchange Rates Since 2000 [online] available from < http://fxtop.com/en/historical-exchange- rates comparison.php?C1a=GBP&C1b=EUR&C2a=GBP&C2b=JMD&C3a=&C3b=&C4a=&C4b=&C5a=&C5b=&C6a=&C6b=&DD1=01&MM1 =01&YYYY1=2000&C7a=&C8a=&C9a=&C10a=&C7b=&C8b=&C9b=&C10b=&B=1&P=&I=1&DD2=20&MM2=02&YYYY2=2018&M=1&btnOK=Go! > [21 February 2018]