Comprehensive Marketing Analysis Report: Oxfam Australia

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This report offers a comprehensive marketing analysis of Oxfam Australia, a non-profit organization dedicated to alleviating global poverty. It begins with an executive summary and an introduction to Oxfam Australia, detailing its mission, history, and global presence. The report then delves into a market situation analysis, including Oxfam's brand motto and a PESTLE analysis, examining political, economic, social, technological, legal, and environmental factors. It also includes a SWOT analysis to assess the organization's strengths, weaknesses, opportunities, and threats. The report further explores Oxfam's commercial and financial objectives, marketing strategies, market segmentation, and the marketing mix (7Ps). Financial action plans for 2015-17 and a financial audit report for 2015-16 are presented. The analysis concludes that Oxfam employs a defensive marketing strategy, effectively allocating resources to generate revenue for its humanitarian operations. References are provided at the end of the report.
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Running head: OXFAM AUSTRALIA- MARKETING ANALYSIS
OXFAM Australia- Marketing Analysis
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1OXFAM AUSTRALIA- MARKETING ANALYSIS
Executive Summary
The following report aims to create a comprehensive evaluation of the various elements
of marketing of OXFAM Australia, a non-Governmental non-profitable organization that works
on campaigns and projects across the globe to alleviate poverty and aid the victims of natural and
man-made disasters. To that effect, an analysis of the marketing situation at present in Australia
has been provided in relation with Oxfam Australia. These include facts and trends regarding the
company’s appeal and position in the market. The report conducts a macro environment study of
Oxfam Australia; whereby the political, economic, social, technical and other factors are
identified and discussed. The report presents an ‘opportunities vs. threats’ analysis of the
organization to help understand the immediate issues it is faced with, regarding its campaigns
and business activities. The financial objectives of the brand have been discussed, along with a
detailed marketing mix involving the 7Ps of marketing. A financial action plan of Oxfam
Australia for the 2015-16 and 2016-17 financial season has been provided. The brand’s financial
statement and audit report for the 2015-16 year has also been presented. It has been inferred that
the company has a relatively defensive marketing strategy, owing to the fact that it is essentially
a charity organization. Since it allocates about 20% of its annual proceeds to marketing and
publicity, the brand is undeniably doing well to generate enough revenues to carry its
humanitarian operations forward.
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2OXFAM AUSTRALIA- MARKETING ANALYSIS
Table of contents
Introduction......................................................................................................................................4
About OXFAM Australia............................................................................................................4
Discussion........................................................................................................................................5
Market Situation Analysis...........................................................................................................5
Brand Motto.............................................................................................................................5
Macro environment Evaluation...............................................................................................5
Products and Customers..........................................................................................................9
Opportunities and Threats Analysis...........................................................................................10
Issues of SWOT Matrix in Detail..............................................................................................11
Commercial Objectives of OXFAM Australia..........................................................................13
Financial Objectives:.............................................................................................................14
Marketing objectives:............................................................................................................14
Marketing Strategies..................................................................................................................15
Market Segmentation and Targeting.....................................................................................15
Marketing Mix.......................................................................................................................17
Financial Action Plans...............................................................................................................18
Financial Audit Report..........................................................................................................19
Conclusion.....................................................................................................................................20
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3OXFAM AUSTRALIA- MARKETING ANALYSIS
References:....................................................................................................................................21
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4OXFAM AUSTRALIA- MARKETING ANALYSIS
Introduction
About OXFAM Australia
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.
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5OXFAM AUSTRALIA- MARKETING ANALYSIS
Discussion
Market Situation Analysis
Brand Motto
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. (oxfam.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.
Macro environment Evaluation
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
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6OXFAM AUSTRALIA- MARKETING ANALYSIS
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.
PESTLE Analysis
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.
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7OXFAM AUSTRALIA- MARKETING ANALYSIS
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
PESTLE Analysis Elaborated:
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
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8OXFAM AUSTRALIA- MARKETING ANALYSIS
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.
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9OXFAM AUSTRALIA- MARKETING 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).
Products and Customers
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 )
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10OXFAM AUSTRALIA- MARKETING ANALYSIS
Graph1: Oxfam annual fund handling.
Opportunities and Threats Analysis
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
Net Income
Campaigns - 70%
Marketing - 20%
Administration - 10%
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11OXFAM AUSTRALIA- MARKETING ANALYSIS
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.
Issues of SWOT Matrix in Detail
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.
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