Marketing Planning Essay For OXFAM Australia.

Write the Essentials of Marketing Planning.

Oxfam International is a global fraternity of charity organisations which has a goal to alleviate global poverty. Founded in 1942 in Oxfordshire under the name ‘Oxford Committee for Famine Relief’, OXFAM started spreading in 1963 (beginning with Canada), and now operates in 90 countries across the world. Oxfam Australia is a separate, non-profit community-service based body, and a direct subsidiary of Oxfam International. Oxfam Australia deals in emergency response services, developmental projects, and activities to emancipate poor people throughout the world. Oxfam’s objective is to empower the poor and needy with improved access to equal social status and rights, social services, a prominent voice in the process of decision-making, and relief from disasters and warfare (oxfam.org.au 2017).

Oxfam Australia’s works date back to the activities of Father Gerard Kennedy Tucker, who worked towards alleviating poverty in Asia post World War II. Local groups were formed throughout the nation, with the first one in Hawthorn, Melbourne in 1953. It was called the ‘Food for Peace Campaign’. All campaigns were collectively renamed to Community Aid Abroad (CAA) and after working on various projects, in 1995, the organisation became ‘Oxfam Community Aid Abroad’ and later in 2005, ‘Oxfam Australia’ to mark its alliance with Oxfam International.

In 2004, Oxfam adopted the approach of preserving rights as the guideline for the global community and its associates. Oxfam acknowledges the intangible and invisible nature of human rights and has set the following targets to uphold such rights as the right to:

• a viable livelihood
• fundamental social services
• life and safety
• to be heard
• to have a dignified identity. (org 2017)

Oxfam suggests that poverty and economic exploitation can be done away with by human effort and political benevolence. According to Oxfam, international peace and disarmament are the primary requisites for progress and the state of inequity can be resolved between both international and financial frameworks.

In the present century, marketing is a primary requisite for any organisation to ensure synergy between the services offered and the customers catered to. It involves a set of processes which are guided by the organisation’s policies in each respective department of operation. Even non-profit charitable organisation like Oxfam Australia needs to indulge in marketing operations in order to keep pace with the growing needs of the world and the progress of other organisations that might be compared as competitors, although rivalry is quite uncalled for, when it comes to helping the poor (Tesar 2013).

Oxfam Australia operates on a rather international scale, mostly in developing countries, as Australia is a nation with high GDP and a steadfast economy. As of 2009, Oxfam Australia’s activities served 4.64 million people in more than twenty-eight nations. Such figures in the field of charity were enabled by the dedication and perseverance of over 310,000 activists and donors (oxfam.org.au 2017). Achievement of such standards requires constantly analysing and enhancing the brand’s macro environmental factors. To that effect, a PESTLE analysis of Oxfam Australia has been provided.

Discussion

Political Factors	· The Australian Government is stable and has a sound position. · The laws regarding trade, transit and duties are favourable.
Economic Factors	· Australia is one of the largest heterogeneous economies of the world. · Australia has a significantly high GDP. · The citizens have high purchasing power.
Social Factors	· Works to improve the social life of citizens, especially the needy ones. · Local residents can find employment Oxfam shops and campaigns.
Technological Factors	· Makes use of latest machinery and equipments. · Uses the internet to spread awareness and advertise their facilities and products.
Legal Factors	· Prevention of sexual harassment of women staff. · Government laws safeguarding employees and also the employers.
Environmental Factors	· Eco-friendly means of production. · Proper disposal of waste.

Table 1: PESTLE analysis of Oxfam Australia 

Political – Both local and national politics significantly affect the running of an organisation, be it a profitable or non-profit one. Australia has relatively low political problems, as the national Government (at present, with the Liberal Party of Australia in power) exercises a stern and effective control over political issues. Political unrests are rare and immediately subdued if they occur. Land is provided at relatively lower prices and tax rebates are granted for new commercial and non-commercial ventures (Cornell 2016). In view of such conditions, favourable policies and political measures are ensured to Oxfam.

Economic – Australia is already a developed economy which is still enhancing itself, courtesy its heterogeneous population. It ranks third among the most developed mixed economies of the world (Huang and Sarigöllü 2014). It has a soaring GDP, with a current growth of GDP estimated at A$ 1.62 trillion. The Australian population is always open to change and bear a fancy towards new facilities and products, providing an added boost to Oxfam. The purchasing power of the average Australian is also significantly high, due to the booming economy (Martinez and Perales 2017).

Social – Basically a non-profit charity organisation, Oxfam conducts various social campaigns like building anti-racism rallies, education of victims in crime and drug afflicted neighbourhoods, women empowerment programmes and so on (McCaul 2016). Such undertakings have an effect on the respective communities who feel included in Oxfam’s plans. An added opportunity is thus opened up for both Australian citizens and locals in the target communities outside Australia to work for the company and earn a decent living, while serving the society (Aston 2013).

Technological – Advanced technology is a key necessity for the growth and development of a company. Oxfam utilises modern technology and sophisticated equipment for the manufacture of the products sold though the Oxfam Shop. Like any modern brand, they conduct business through the internet; products of the Oxfam shop can be purchased through their online store (Oxfam shop 2017). They have also made optimal use of the internet for publicising and advertising their products.

Legal – The Government of Australia has passed a number of bills to protect the interest of growing companies; especially non-profit charity-based ones like Oxfam. These have resulted in the enforcement of laws that safeguard both the worker and the management. Re-enforced sentences for harassment of female employees, and steps to alleviate racism in the workplace and sites of operations have greatly aided Oxfam (Islam and Jain 2013). Legal backup is a prerogative to building a secure place of work, where each employee or in this case, also activists, would look forward to working.

Market Situation Analysis

Environmental – It is part of Oxfam Australia’s motto to protect the environment along with their yearly campaigns against poverty and social issues. All the merchandise sold in the Oxfam Shop are made from 100% eco friendly products; for instance, they manufacture the lokta paper from actual lokta bushes. The waste disposal process is an elaborate one as well, as all effluents are treated before release, and the sewage is gotten rid of through underground chambers, without polluting the environment. (Shaw 2012).

Being a non-profit company, there are not exactly a long line of ‘products’ that Oxfam Australia benefits from selling. Their two most viable forms of income are donations and the sale of the Oxfam Shop products, which will be discussed in detail in the Marketing Mix. Hence, there are two types of people the company caters to: customers who purchase products from the Oxfam Shop, and the victims of poverty and disasters in the regions Oxfam Australia functions in. Oxfam Australia has served over 2.5 million persons in the 2015-16 financial year: 1.2 million victims of natural calamities, and over 1.3 million people by their social and developmental projects (Oxfam.org.au 2017). All this is made possible by the support of the eighteen Oxfam associates.

Oxfam has a well-defined and quantised manner of handling the funds they acquire owing to their international renown and goodwill. Regarding the spending of funds, Oxfam has a three-fold spending policy. For each dollar of Oxfam allocates:

• 70 cents to fund charity and humanitarian campaigns throughout the world.
• 20 cents for marketing, advertising and publicity.
• 10 cents on internal and external administrative purposes.(Oxfam.org.au 2017 ) 

In order to better understand Oxfam Australia’s market positioning, there needs be a detailed study of the organisation’s external opportunities and threats, along with its internal weaknesses and strengths. To that effect, a SWOT Analysis of the products of Oxfam Australia has been provided.

Strengths	Weaknesses
· Global network · Stable financial state · People open to change · Pragmatic outlook of national government	· Not as premium quality like Mulberry papers · Bhhaktapur Craft papers have wider appeal · Financial structure is rather vague · Fashion accessories not up to the mark
External Opportunities	External Threats
· Enhanced economy of the nation · Up-to-date lifestyle · Demand for new products · Manufacturing  facilities at Mahaguthi in Nepal	· Ever-hiking cost of labour · Trained and technically adept workers are not available · Changing laws and acts regarding non-government organisations

 Table 2 : SWOT Analysis of Oxfam Australia.

Strength- Oxfam has a well-elaborate global network that caters to 90 countries. Oxfam Australia alone operates in 20 countries across the world. New products are easy to be manufactured with such an organised grid. The Australian public is open to change and look forward to new objects and new designs. The Australian government has favourable tax and duty policies which help the growth and running of organisations like Oxfam. These along with the sheer nobility of Oxfam’s cause of helping the unprivileged and unfortunate, have enabled Oxfam Australia to strike its roots deep into the Australian market and the community as well.

Weakness: Oxfam Australia is essentially a charitable organisation. Therefore they can expend only a small portion of their revenue to the publicity and launch of their papers. The cost-structure in Oxfam is rather backdated and they often end up charging significantly higher or lower than market value for certain products. This might seem to balance out the revenue sheet in the end, however, it detriments the efficiency of marketing in the long run (Bennett and Kottasz 2015). This aids competitors to gain an edge over Oxfam Australia in many cases.

Brand Motto

Opportunities- The Australian economy is a well-enhanced one and that adds up to a very high GDP of 1.62 billion. Hence the population has got an elevated purchasing potential which augments the growth of business. The humanitarian cause of Oxfam has endeared them to the higher and middle classes of the society.

Issue 1- A good percentage of their products is manufactured in the countries Oxfam Australia operates in, by the people they cater to; thus providing them a financial platform. For instance the lokta paper that is sold on the Oxfam Australia Store is made by the poor villagers in Mahaguti Nepal where Oxfam is campaigning against poverty and providing earthquake relief (Paudel and Sthapit 2013). Since such causes have become known, demand for them has been on the rise, with the Australian taxpayer knowing that his money is destined for charitable purposes (Shop.oxfam.org.au 2017). The brand wants to go deeper into the Nepalese community and make Mahaguti the yardstick to manufacture products.

Threats- As already stated, Oxfam Australia has a vague costing structure that whereby they miss out on their vying edge in business. However, this is no threat considering the nobleness of their purpose of stretching out a helping hand for the unfoertunate.

Issue 2- Mullberry Paper, for instance, produces much superior quality of the same lokta paper that Oxfam Australia sells. Moreover, Bhaktapur Papers and Mullberry Paper have priced their respective products at a much cheaper rate, which results in potential loss of customers of Oxfam. However, their aim is to serve humanity, and a little reduction of profits is acceptable (Kanel and Niraula 2017).

Issue 3- The rising cost of labour is another threat Oxfam Australia faces. It is obvious that in a developed economy like Australia, people would demand more wages and this results in a reduction in revenue. Skilled labour is also hard to obtain, with stringent measures being undertaken to check the process of outsourcing in order to preserve the economy (Palmer and Warren 2013).

Being a non-government charity organisation, Oxfam Australia are not exactly a business-house that should be indulging in cut-throat competition with other companies. Their objectives are more of a humanitarian nature than a commercial one. Their only substantial means of generating revenue besides donations is the sale of the products from the Oxfam Shop, which also operates through the internet. In order to understand Oxfam Australia’s business objectives, a comprehension of the company’s targets regarding its charity operations is necessary. In their Annual Report for the year 2014, Oxfam Australia set out their goals up to the financial year 2019. Oxfam Australia has stated that their singular most important propose is to improve the lives of the people living in poverty. To attain this, the company has formulated their strategic plan in effect from 2014 to 2019 which is called ‘The Power of People Against Poverty’ (Oxfam.org.au 2014). The plan has been devised by consulting all levels of the Oxfam Australia hierarchy; from the supporters, volunteers, regional committees, members, employees, management to the Board. It provides a distinct guideline as to how the organisation needs to function by giving six objectives to change the world, and six targets to alter the way it works. The latter set of goals seeks to innovate Oxfam Australia’s internal functioning and improve the reach of their activities. They intend to effect:

1. A potent global network
2. Enhancement of the reach of activities
3. Organisation goodwill
4. Endue on needy people
5. Cost efficiency
6. Growth of revenue and funds. (Oxfam.org.au 2014)

Macro environment Evaluation

The last three objectives in the list formulated by ‘The Power of People Against Poverty’ are bordering on the financial side of operations.

Income Growth- Oxfam Australia intends to increase their annual revenue in order to enhance the effectiveness and reach of their projects. In today’s market, the competition in fundraising has grown to aggressive extents, and in order to survive, Oxfam plans to: develop and foster new methods of spawning revenues, especially in the form of unenforced incomes. It wishes to segregate and classify its income and incorporate fundraising into the campaign strategies (Roper et al. 2015). Endorse and publicise the optimum stature of Oxfam shops across the nation’s economy, not only through the retail market but also through online business. They wish to draw the community into their fundraising activities, spreading awareness about global issues in the process. Closer interrelation and sharing of resources with other Oxfam networks worldwide is also a prerogative for Oxfam Australia (Bateman 2012).

Any business needs a sustained position in the market in order to survive the sharp rises and pitfalls of the economy. With their USP of eco-friendly products and charitable causes, Oxfam Australia plan to become the top dealer in handmade papers and tapestry in Australia. It intends to be the preeminent producer of organic decorative products in the nation. However, with significantly less funds at disposal for marketing and publicity, Oxfam often has to depend on its goodwill and popularity. It aims to increase the marketing budget in 2016 by at least 15% in order to increase revenue generation as already stated (Oxfam.org.au 2017). It intends to endorse its products through their campaigns in the print and mass media. Already, most of the Australian news media give considerable footage to Oxfam because of its noble objectives. The brand, which is already a strong force on social media, intends to strengthen its position by appointing special digital marketing managers and executives. It wants to strike deeper roots into the Australian market, but in a cost-effective manner which does not hinder their principal humanitarian goals (Maple 2013).

As its principal strategy of marketing, Oxfam Australia intends to utilise its elaborate global network in order to leave its imprint not only on the Australian but also on the overseas market. However, it is essentially a charitable organisation and hence, cannot dedicate huge funds for marketing. With service as their motto, they can spend only 20% of their revenue for advertising. Therefore, Oxfam Australia’s marketing strategy is quite a defensive one, just as it is supposed to be for an organisation of its kind (Hollensen 2015). For the financial year 2016-17, it intends to sell its products in Australia through a sustained trade-alliance by pricing the goods complying with the principle of fair payment (Brand and Davenport 2012). Oxfam also makes it a point to stick to the World Fair Trade Organisation guidelines while pricing and publicising (Reynolds 2012).  

PESTLE Analysis

The various forms of segmenting the market of Australia in relevance to Oxfam’s products and operations is provided as follows:

Segmentation	Psychographic grouping: · Monetary- average and high earnings group · Ages – 10 to 50 years · Lifestyle- both normal and luxurious lifestyle Behavioural grouping: · Level of knowledge- Intelligent and mediocre in terms of intellect · Rate of use- medium to high Cultural grouping: · Culture of community- religion and humanitarian activities · Education- basic school level to higher education
Targeting	Target customers of Oxfam products: · Oxfam Australia sells a wide array of products ranging from gift wraps to fashion accessories. · School and college goers are the main clients of the Lokat Paper. · Working women and house wives alike constitute the major customers of the ethnic jewellery and artefacts. · The new kitchenware range has gained popularity among middle-aged women as well. · Sale of the fair price coffee is increasing steadily among the affluent clientele as well.
Market Positioning	Oxfam Australia gas definitely created a niche for itself within the Australian market of decorative items and  kitchenware made from eco-friendly raw materials. However, it cannot compete in the department of fashion accessories with the leading fashion companies as the latter are dedicated to generate funds whereas Oxfam’s calling is to help the poor (Hume and Hume 2015).

 Table 3- Market segmentation of Oxfam Australia

Marketing is an ever-recurring process which needs to evolve continually, such that, the company can stand the tests of time, varying tastes and the aggressive competition from rivals. (Gordon 2012). The Marketing Mix is a framework developed by E Jerome McCarthy in 1960; it helps evaluate a product or a brand’s services. The initial model of 4Ps can now be updated to a model of 7Ps (Jain 2013). 

Product	OxFam Australia shop sells a wide range of products from tapestry to fashion accessories, essentially made from eco-friendly sources. The ‘Ox-Lokat Paper’ and  Oxfam Fair Price Coffee are the most popular among the lot.
Price	The Lokat paper is priced at $6.5 per sheet of 50x70 cm, while a set of five is sold for $29.95. The fiar price coffee, available in over 4 flavours, is priced at $29.95 per 1kg bag. Discounts are applicable for higher quantities (Shop.oxfam.org.au 2017).
Place	There is no fixed place of manufacture. Most products are manufactured in their respective campaign-zones to cut expenses. Lokat paper is made in Mahaguti Nepal while the coffees are produced in their indigenous regions.
Promotion	Oxfam invests in various game shows on TV and also in popular sports matches like cricket, rugby and football, in order to properly publicise their products. They are also a growing force on social media, attracting customers on Facebook and Twitter.
People	Oxfam Australia has a quantised hierarchy of workers, from the lay social activist to the Board of Directors. The other set of ‘people’ are the victims whom it serves through campaigns.
Processes	The shop operates through over 30 exclusive and some combined stores across Australia. The delivery through the online shop is also fairly efficient and now exports to other countries (McArthur 2013).
Physical Evidence	A fair-price shop that donates 70% of  proceeds to charity, Oxfam Australia provides legally taxed bills for each item sold. Authentic tax invoices are provided for online transactions too (Shop.oxfam.org,au 2017).

Table 4- 7ps of marketing- Oxfam Australia

Oxfam Australia’s Annual report of 2016 certifies that a collective sum of $38.5 million has been donated by over 160,000 supporters that year. Over $46.6 million have been expended for Oxfam’s charity projects globally. Most importantly in this case, the Oxfam shop has recorded a turnover of $9.7 million in Oxfam shops across the nation (Annual Report 2016).

Till March 31, 2016, a surplus of $4.9m of donations was carried over to 2016-17 along with $3.1m of Nepal earthquake funds, $1.2m of Vanuatu Cyclone relief, and $400,000 for cyclone relief in Fiji (Annual report 2016).

Other major financial activities of the financial season involve:

• $2.5m on Mekong Water Issue
• $2m on women empowerment in Papua New Guinea
• $1.8 m on gender equality campaigns in Indonesia
• $1.3m on disaster management and women-emancipation programs in Sri Lanka
• $1.1m on food-shortage and resistance campaigns in Bangladesh

The main disaster-response programs undertaken were;

• $4.4m for Nepal earthquake relief
• $2.8m on Cyclone Pam victims in Vanuatu
• $800,000 on the Syrian refugee crisis
• $200,000 for Cyclone Winston relief in Fiji (Annual report 2016).

Up to March 2016, Oxfam Australia’s record of total revenue and expenditure statements are as follows:

Particulars	9 months to 31March 2016 ($ *,000)	12 months to 30 June 2015 ($ *,000)
Total revenue	70,053	110,715
Total expenditure	77,284	104,194
Total Supplies for the year	(7,233)	6,522
Total Assets	31,646	44,882
Total Liabilities	13,728	19,731
Total equity	17,918	25,151 (Annual report 2017)

Table 5- Financial audit report of Oxfam Australia

As of 31^st March 2016, Oxfam Australia has recorded a total fund of $28.9m at the beginning of the year, and look soundly poised with a net cash and cash equivalent of $16,524,000 at the end of the 2015-16 financial year (Annual report 2016).

Conclusion

To conclude the ongoing evaluation of the marketing elements of Oxfam Australia, it is fair to say that the brand looks steadily poised to carry on its humanitarian activities unhindered in the next financial year and the years to follow. Unlike other organisations which are primarily bent on generating revenues and making huge profits, Oxfam’s goal is to stick to operations that help the society get rid of vices like poverty, gender-bias, racism, inequality and so on. To that effect, they allocate 20% of their annual funds to the promotion and advertising of their products. Considering the relatively small amount of funds that go in to marketing, Oxfam Australia is undoubtedly performing well. It has successfully balanced its noble cause of helping the unfortunate, and enhancing incomes to sustain their activities.

PESTLE Analysis Elaborated

I felt elated upon receiving a topic on marketing elements. Through this project, I emerged successful in enhancing the preconceived notions of the readers regarding marketing. Taking Oxfam company as an example, helped me to make the businessmen aware of the basic concepts, which they need to adhere for carrying out effective marketing. When I searched the basic functionalities of Oxfam, I felt relieved that there is at someone, who is taking care of the neglected people in the society. It gave me immense pleasure to make a marketing plan for a company like this.

The job profile of Oxfam grabbed my attention. I think being non-profit organization in the 21^st century helps in attaining a competitive edge over the contemporary non-profit organizations. Moreover, accepting donations and charities from the people makes me comment that the company is reputable. I can say that upliftment of the status of the below poverty level people enhances the corporate social responsibility of Oxfam. Reading the micro environment of the company, I came to know that development of strategies towards preservation of the individual rights of the “looked down upon” people, results in the development of infrastructure.

I feel that frequent evaluation of the internal performance helps the personnel in searching out effective ways and means for entering into the threshold of external environment. Herein, I think maintenance of balance is very important for enhancing the productivity of the business. I can relate the PESTLE analysis into the discussion. Projecting this analysis in a tabular format has enhanced my clarity in terms of the factors, which contribute towards the penetration of Oxfam into the external environment. Effective and judicious use of technologies results in the expansion of business. With the adjective “judicious”, I can relate the compliance and adherence to the legal factors for safeguarding Oxfam from the illegal activities.

Reviewing the wide variety of the products offered by the company, I was awestruck. As a matter of specification, the company has a Oxfam shop, where products like apparel, interior décor items, jewellery among others, are the popular attraction among the customers. I, personally salute the efforts of the craftsmen in designing the items. However, it gives me pain to think about the negligence in terms of the hard efforts of the tribal people. Here, I think marketing of the handicrafts would bestow proper placement on the people, who are giving their all for the happiness of the customers. Here, the aspect “non-profit” attains nullification. Commercialization of the handicrafts prepared by the tribal women omits the prefix “non” and adds value to the profit margin of Oxfam.

Products and Customers

With Marketing objectives and strategies, I can relate the approach of the company personnel in terms of expanding the current business scenario. I think consideration of SWOT analysis would prove beneficial in developing the objectives for making noticeable advances with the proposed plans. I think adoption of social media would act as a wise step in terms of expanding the business by just a click. Positioning the brand reflects the aspect of confidence of the personnel regarding the capability to do the allocated tasks in an efficient and effective manner.

Proposing all these points generates within me self organizational skills, which helps me to adopt a systematic approach towards the execution of the basic tasks in my personal life. 

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