Marketing Plan For Red Cross Biomedical Blood Services

1. Marketing Plan For Red Cross Biomedical Blood Services Michael E. Navicky for PADM 7040

2. Objectives Provide the nation with a variety of blood products that are as safe as possible. Set new standards for safety and quality.

3. Organization • Biomedical Services is a separate division of the American Red Cross. Biomedical Services is further divided into: • Blood Services • Tissue Services • National Testing Labs • Research and Development • The American Red Cross operates 36 Blood Services regions nationwide.

4. Customers • The American Red Cross provides 6,000,000 units of blood each year to over 3,000 hospitals. They will deliver blood anywhere in the nation there is a need. • The nationwide need is 38,000 units per day • Per patient need can widely range depending on the medical condition • The American Red Cross collects and distributes half the nations blood supply • While those in need are customers the donors should also be treated as such. The Red Cross served 3.85 million donors in 2003.

5. Competition • Competition from other volunteer donation organizations is low in fact they work together with many: • America’s Blood Centers • Armed Services Blood Program • Some for profit companies pay donors for their contribution. Companies do this because certain medical products require blood components to be synthesized. • As will be mentioned later the American Red Cross prefers unpaid donors because of the inherent safety.

6. Strengths and Opportunities • These are both also challenges but it shows we aren’t at max capacity just that we need to attract others to donate: • 60% percent of U.S. population eligible only 5% donate. • The average donor is a college-educated white male, between the ages of 30 and 50, who is married and has an above-average income. • Discards only 2% of blood collected mostly false positives but guarantees a safe blood supply • Technology advances always offer opportunities for good a couple are: • Nucleic Acid Testing, this more accurate AIDS/HIV test will reduce the amount of discarded blood. • Newer and better blood substitutes decrease dependence on donations • The Red Cross implemented a $287 million upgrade program in 1999 that improved its infrastructure and ability to serve customers that will take it far into the 21st century

7. Challenges • Restrictions on large groups that are inherently willing to donate. The military in particular, with 2/3 of the military having been deployed over the last few years most members are ineligible to donate for at least a year. • Donors can be deferred for several reasons for different periods of time depending on the condition a few examples are: • Receive a blood transfusion in the United Kingdom after 1980, you are permanently disqualified • Get a tattoo in a state with no tattoo regulations, wait 12 months • Have a fever, wait until the fever is over • A detailed list can be obtained at this website: http://www.redcross.org/services/biomed/0,1082,0_557_,00.html • Blood has a shelf life of 42 days, technology may help extend this but constant giving is required • Seasonal lulls, the winter and summer months both see a decline in giving because of busy schedules, vacations, etc. • Both also opportunities but challenge is to educate, provide access and incentive for broader donations • 60% percent of U.S. population eligible only 5% donate • The average donor is a college-educated white male, between the ages of 30 and 50, who is married and has an above-average income.

8. Primary Marketing Tools • Website provides a vast amount of information • Several ways to make a donation • Will identify the closest center to your home • Will give you opportunity to enroll in mailings and phone calls that will remind you when you can donate again • Will provide help to organizations interested in organizing a blood drive • Donation process itself to include readings and videos • 2003 Save a Life Tour • Used to raise awareness, the tour consisted of two vehicle convoys each with a mobile museum and a rolling classroom. The tour lasted from May to November and visited 300 communities and attracted 38,000 visitors. Some counties visited boosted donations by 20%.

9. Building Membership • The customer for this product will always be available and the American Red Cross has established itself as a premier source of quality blood products. • While the Red Cross needs to continue informing its customer base of its safe and quality blood supply the real marketing challenge is attracting eligible donors. • Primary challenge seems to be awareness of the blood supply situation and donation process

10. Better Use of Marketing • Offer/market opportunity matrix (Fig 3-6, page 81) two situations in which to apply this matrix • Blood for those in need: The offering of blood to those in need can change little. Already considered safe, reasonable gains in safety and availability are expected. New markets for blood appear to be almost non-existent considering the high-demand and limited supply. • Donors of blood: Both the offering and the market can change and expand to attract new donors.

11. Better Use of Marketing (Con’t) • Blood Donors offer/market matrix continued • Current offering includes: • Experience a slightly uncomfortable physical experience • Time out of your day/inconvenience of donating • All in exchange for helping others, feeling good about yourself, saving a life. • Current market includes: • White males, 30-50 years of age, married with an above average income and college education

12. Better Use of Marketing (Con’t) suggested changes to offering • Changes could come from: • Less time out of your day/more convenient donating • Less discomfort • Different compensation • The Red Cross rules out monetary compensation accepting only volunteer donations. This practice will not change due to Red Cross culture and policy • Less discomfort is not something to focus on as discomfort is already minimal • Less time out of your day and more convenient donating should be the major focus. • More use of mobile donation centers. • More blood drives at locations • Go to the donors don’t have them come to you

13. Better Use of Marketing (Con’t) suggested changes to market • Changes could come from targeting different: • Age groups • Ethnic groups • Income levels • Education levels • More research would determine which groups to target. • An additional short coming seems to be that the Red Cross relies on new groups to approach the Red Cross in order to organize drives. • Red Cross representatives should seek out and approach community leaders that would be able to motivate large groups of donors.

14. Frequently Asked Questions from the Blood Services website • Why doesn't the Red Cross pay its blood donors to increase the blood supply? Scientific data shows that people who donate blood for altruistic reasons are the safest blood donors. As an extra layer of safety to the blood supply, Red Cross accepts only volunteer blood donors (http://www.redcross.org/faq/0,1095,0_379_,00.html) • Why does the Red Cross sell blood and blood products that are given freely by donors? The American Red Cross is a nonprofit organization that supplies almost half of the nation's blood supply by working with more than 4 million donors and 3,000 hospitals. We rely on the generous gifts volunteer blood donors provide us. In order for the Red Cross to make that gift available to patients in need, we must collect, store, test and process the blood. There are significant costs associated with each of these processes, and in order for us to continue making one person's donation available to someone else who needs it, we must charge for the testing and processing of the blood to recoup these costs. (http://www.redcross.org/faq/0,1095,0_379_,00.html)

15. How can you help? Go to this website or call this number for information on drives, locations or the donation process itself. American Red Cross: www.givelife.org 1-800-GIVE-LIFE (1-800-448-3543) It will take an hour of your time and one pint can help save as many as three lives.