Marketing Analysis of the Lance Armstrong Foundation

Marketing Analysis of the Lance Armstrong Foundation

According to Yurchisin, Kwon & Marcketti (2009), the Lance Armstrong Foundation (LAF) is an organization founded in 1997 to serve the people suffering from cancer in various ways. It is by empowering them to take actions against the disease. It was started by a cancer survivor and a champion cyclist, Lance Armstrong. Its services to the people affected by cancer include the provision of free patient navigation services, such as financial support, emotional support, and support against other challenges that may come as a result of the disease. The Foundation is also recognized as the global leading cancer institution on behalf of 28 million people living with cancer today. Since its inception, it has raised about $500 million for the fight against cancer.

On the other hand, Susan G. Komen, which was formerly referred to as the Susan G. Komen Breast Cancer Foundation is a U.S.-based organization started in 1982. This foundation was created in order to carry out research on cancer, educate people about it, and provide health and social services to cancer patients. Even though all these foundations are based in the U.S, they operate internationally and hence posing a lot of resource competition towards each other; competing for donors in order to sustain their services.

Just like any other corporate organization, these two organizations are involved in the provision of services, and therefore, should try to ensure that their services reach the intended consumers, whereby the latter are cancer patients. In order for these services to be able to reach consumers, the organization has adopted the use and application of some marketing strategies, which are employed by profit-making organizations. The most popular way for these organizations to have comprehensive marketing strategies is focusing into the 4p’s. This principle is the categorization of marketing functions into product, pricing, place and promotion strategies. The two organizations are also noted to have these strategies in place in order to increase the number of their beneficiaries (Pancras & Sudhir, 2007).

Product Analysis

In the product category, it is noticed that the LAF is involved in the provision of services, but not of tangible goods to cancer patients. Therefore, it tries to improve these services by modifying and widening its scope. These include educating cancer patients on how to leave a healthy life during the sickness and even after recovery. It achieves this by advising them on nutrition and treatment requirements. In order for consumers to easily identify its services, the foundation has developed its own unique trademark, Livestrong, which is used to brand its premises; yellow is also its identification color which helps capture peoples’ attention. It also helps to advocate for government’s interest in the proper medical care of cancer patients. This foundation is also committed towards discovering and laying down mitigating factors of a number of causes of various types of cancer, and therefore, has committed its resources towards the research on the causes of this deadly disease. Another notable service modification program is financial and emotional support, which it gives to patients during the hard times, in the process of treatment and even after the recovery (Pancras & Sudhir, 2007).

Additionally, the organization has further improved its service quality by embarking on insurance negotiations with service providers, which have seen the Transamerica Life Insurance Company providing an affordable insurance cover to cancer patients. It is further noted that the foundation is also providing counseling to cigarette smokers, since smoking is a habit, which can greatly contribute to cancer. This foundation is also committed towards answering people’s questions about the disease by the creation of free online chatting software, where one can ask any question regarding the care of cancer patients and get instant answers to his or her questions (Pancras & Sudhir, 2007).

While comparing the Lance Armstrong Foundation with the Susan G. Komen foundation, it is noted that there are similarities and differences in their practices. Similarities between the services of these two organizations include the provision of cancer education, advocacy, and social support programs. However, these two differ in that Susan G. Komen only provides these services to breast cancer patients, unlike the LAF, which provides its services to all cancer patients irrespective of the type of cancer. Another notable difference is that the Susan G. Komen organization provides education scholarships to those students, who have lost their parents through breast cancer, while the LAF does not offer services of that kind. It is further noted that the LAF only works with cancer patients and some other private and public organizations to come up with cancer mitigating plans, while the Susan G. Komen foundation involves even various surrounding communities in the development of programs for dealing with breast cancer problems (Hoffman & Stovall, 2006).

Price Analysis

In profit making organizations, pricing is the key component of marketing that has to be done in the most favorable manner. That is, it helps in gaining acceptance and affordability, which can enable consumers to purchase products generating income, which can be used for other activities. However, for these two foundations, it is different, since they offer their services for free to cancer patients. Therefore, they have to raise money from other sources than selling their services for profits in order to provide the services to these parties. The LAF generates its funds through the sale of associated products, such as wristbands at an affordable price. These wristbands are branded ‘Livestrong’, and they were co-developed by Nike in order to be sold and raise money for the purpose of investing in foundation’s activities and uniting people to fight together against cancer. The foundation also collaborated with Nike in order to produce cheaper Air Native N7 footwear, whose total proceeds are donated to the LAF. It is a sports footwear, which is designed to reduce type two diabetes. Additionally, the foundation has also devoted its efforts to making silicone bracelets, which are also affordably sold in order to raise money for the free provision of its services. Livestrong also has its place in many other events, such as The Yellow Party of Baltimore, Eric Shanteau’s Swim for your Life, Swing Fore! Yellow, Festa del Fondo, Survivor Summit, B STRONG, Ride 4 Yellow, 24 hours of Booty and the livelong Benefiting LIVESTRONG(Hoffman & Stovall, 2006). 

Apart from the sale of these lower-priced products, the LAF raises it funds through donors and volunteers, who occasionally send their money towards the support of foundation’s activities. Another way, through which this foundation raises its funds, is the annual organization of the Livestrong Day Events, which include cancer walks; it takes place in almost 65 countries around the world. Finally, foundations’ activities are supported financially by the already recovered cancer patients, who have been beneficiaries of its services.

On the other hand, Susan G. Komen also raises its funds for the provision of free services to breast cancer victims through various means. Most of these fund generation methods are similar to the ones used by the LAF. For instance, this organization normally organizes affordable charitable walks and runs, which normally take place annually across the globe. These walks include the Susan G. Komen 3-day for cure, the Susan G. Komen Marathon for cure, Susan G. Komen Passionately Pink for cure, and Susan G. Komen Bowl for cure. It also operates cost-effective mobile fundraising, which has open lines for volunteers and donors to donate funds in the support of its activities (Yurchisin, Kwon, & Marcketti, 2009).

It is further noted that this foundation raises its money through the partnership with Yoplait and American Airlines in running the Save Lids to Save Lives Program and conducting money raising campaigns. In addition, it is supported by the former service beneficiaries, who donate in order to reciprocate to the organization. However, the LAF internally generates funds by allowing other partnership companies to use their trademark ‘Livestrong’ in order to produce products for sale, while Susan G. Komen does not have such income generation provisions (Hoffman & Stovall, 2006). 

Place Analysis

Importantly, profit-making businesses will always endeavor to have the best location for their business entities to enable them to get customers and maximize profits. But for the non profit making organizations, emphasis is on the activities that make the products available for the consumers. This activities focus on the distribution channels, coverage, transportation, outlets and location. Therefore LAF has employed this strategy in order to reach the intended cancer patients. Firstly it has ensured that there is the proper means of distribution of its services to the patients. This is by using employees and liaising with the cancer clinics in order extend their services. Secondly, it has made use of the online services such as the social media in order to let people know about their services (Wahnefried, Aziz, Rowland, & Pinto 2005).

In terms of transportation, LAF has embarked on the use of the modern delivery services in order to reach their clients. Finally, the organization has identified places, where there are cancer hospitals, and established its offices there. This has been the trend across all countries, where it has its influence. It is noted that it is of importance, since patients can be easily directed to these offices by doctors; and also it does not require a lot of travelling from one hospital to another (Wahnefried, Aziz, Rowland, & Pinto 2005).

In comparison to the Susan G. Komen foundation, the LAF holds a lot of similarities in trying to reach as many people as possible. It is because it also has coverage in various countries, establishes its offices near health centers, as well as utilizes online media services (Wahnefried et al., 2005).

Promotion Analysis

Regarding promotion in the marketing mix for a non-profit organization, Consumers and business users have more trouble evaluating services than goods because services are less tangible. In turn, marketers have more trouble promoting intangible goods (Lamb, Hair & McDaniel, 2012). They therefore offer the following four promotion strategies as possible solutions for the promotion strategy of a non-profit: stress tangible cues, use personal information sources, create a strong organizational image and engage in post purchase communication. However, these two foundations are similar to all other business organizations, which strive to promote their goods and services. It is because they are optimistic in helping cancer patients across the globe and reaching them by all means. Therefore, it has seen them come up with various promotional activities to create awareness of their existence. For instance, the LAF is actively involved in the utilization of the social media for the communication of its activities. It is done through Live Chat on Twitter, Facebook, and YouTube in order to enable them to easily access many people, as well as to easily answer their questions, which may be asked without much consumption of resources. The foundation has further conducted visits to various cancer victims in hospitals, where they have managed to communicate to them and made them aware of their services (King, 2004).

Additionally, the LAF normally creates forums, where those people, who have suffered from cancer, get the opportunity to share their experiences in front of policy makers, the public, and the media in order to make known their fight against cancer. The organization has also made aware its services through advertisements on the television and radio across the globe. It is further noted that it regularly holds live conferences and seminars regarding its activities and their benefits, where many participants are captured across the globe. In addition, this foundation has encouraged the informal communication of its activities among different people; this is by letting its beneficiaries and even the rest of the people, who already know about the program, to communicate it to people, who may be victims of the disease. The organization also has adopted a unique trademark ‘Livestrong’, which can easily capture anyone’s attention in trying to know what it represents (King, 2004).

In addition, it has entered into partnership with many other renowned organizations, such as Transamerica, the American Cancer Society, and the Health and Global Policy Institute, which has also helped in the publicity of the foundation. Again, through the organized events, such as walks and runs, the foundation has found it easy to let the public know what it is about, and even managed to get potential benefactors and other people, who have indirectly involved themselves in its support. The organization has also been very much in the forefront in the fight for the prioritization of cancer research by various governments. Therefore, many people and institutions have been able to know it. The company support programs aimed at the education of cancer victims. It is very vital for making this foundation popular and even getting people, who are willing to support its activities. Proper utilization of well-wishers’ funds is also another key strategy, which has led to the promotion of foundation’s services. It is because donors are confident of the use of funds and encouraged to continue to support the activities (Hoffman & Stovall, 2006).

Additionally, this foundation is also involved in the provision of reading materials to victims and other people, who are interested in becoming its benefactors. It is done in order to help to elaborate much about its activities and to assist victims in knowing the proper healthy leaving standards. In addition, the doctors dealing with cancer patients are also encouraged to let their patients know about this foundation by linking them to it. Finally, the organization has employed the use of advertisement magazines and newspapers, where it publishes some of its articles (Hoffman & Stovall, 2006).

In comparison to the Susan G. Komen foundation, it is apparent that these two organizations are committed towards the promotion of their activities. It is also noted that they have various similarities in their promotion activities. For instance, just like the LAF, Susan G. Komen uses social media networks, conferences, television advertisements, community outreach activities, and events and open forums. Additionally, it has entered into partnership with American Airlines, voiced the need for the government involvement in cancer research, and encouraged the informal communication among stakeholders. However, it has not put much into the consideration of its management as a promotional tool, since it has been very rampant with allegations of corruption cases, which do not occur in the LAF. It is again noted that Susan G Komen Foundation does not have celebrity endorsers; they normally use actual cancer patients and survivors (Hoffman & Stovall, 2006).

Overall Marketing Strategy

The overall marketing strategy is a bridge that connects a firm’s internal environment with its external environment, leveraging its resources to adapt to, and benefit from, changes occurring in its external environment. Strategy is also a decision-making process that transfers a long-term vision into day-to-day tactics to effect the long-term plan. Although often thought of only as something reflected in a business plan, strategy is rather a continual process of assessment, reassessment, and analysis, which constantly provides direction to the firm. It goes hand in hand with the marketing mix which developed from a notion of the marketer as a “mixer of ingredients”. This is whereby a marketer plans various means of competition and blends them into a “marketing mix” so that a profit function is optimized, or rather satisfied. The “marketing mix”, concept was introduced by Neil Borden in the 1950s and the mix of different means of competitions was soon labeled the Four Ps (Stralser, 2004).

However, apart from the 4p’s which are widely applicable in LAF, other marketing strategies include the continued research into the proper ways of managing cancer effects on patients in order to ensure that those, who suffer from the disease, are well cared for. The LAF has also employed the observance of the maximum care of patients, when handling them; it is in order to maintain them. Another key strategy, which is put by the organization, is the observance of confidentiality. It is achieved by the company being very secretive with patients’ health information in order to ensure that there is no confidential information leaked to third parties. It has been very important for winning the confidence of many patients, since they can trust the foundation. Additionally, the company has employed the follow-up strategy. It is when the already recovered patients are followed up to ensure that they are healthy and do not suffer from the afterward effects of the disease (Wahnefried et al., 2005).

It is further noted that company’s employees and volunteers are also trained on how to handle their work perfectly and with necessary attributes. For instance, the company emphasizes the use of good communication skills in order to enable patients to gain maximum benefits through communication. The LAF also engages itself in the provision of assistance to the society in general, but not just to cancer patients. It is achieved by the foundation taking part in some other community development programs, such as community outreach activities, which are meant to assist members of the community. The foundation has also contributed much towards the starting and establishment of cancer clinics. These clinics include the Lance Armstrong Foundation Adult Survivorship Clinic at the Dana-Ferber Cancer Institute. It is a very important strategy, since it extends foundation’s activities to patients and to the general public, making the organization popular. The employees themselves are also put to task by the foundation to live healthily in order to entice cancer patients to come and pursue a healthy lifestyle, which is already associated and expressed by the foundation (Wahnefried et al., 2005).

In comparison to Susan G. Komen, it is realized that there are some similarities, but not to the same magnitude. For instance, they both take care of cancer patients, but not with the same strategies in place. An example of this is the fact that the LAF is concerned with the lives of patients suffering from any type of cancer, while Susan G. Komen only deals with breast cancer patients. Therefore, it has limited its research work to the causes of cancer as compared to the LAF, which conducts research on all kinds of cancer. Additionally, it is noted that while the LAF is concerned with the creation of cancer clinics through partnerships, Susan G. Komen does not put its resources towards the creation of any clinic (Hoffman & Stovall, 2006).

The Impact of the Overall Marketing Strategy on the Foundations’ Business Success

With all these marketing strategies employed by the LAF and Susan G, Komen, it is very possible that they will have very positive impacts on the foundations’ business. It is because they are focused on creating awareness of foundations’ services among cancer patients and ending up getting a large number of the intended persons. For instance, the strategy to make follow-ups of the recovered patients can lead to the companies’ success. It is because these patients can assist in giving their response to the foundation, which then analyses them for improved services. In addition, through open forum interactions and online live chats, which are normally held by the company, it is possible that the organization is likely to maintain its customers. It is because the employees and the management are trying hard to create a good rapport through public relations and effective communication measures, which are put across (Harvey & Strahilevitz, 2009).

The patients’ health insurance strategy is also another important strategy towards the organizations’ success. It is because patients’ treatment is costly, and the foundations have got no stable sources of income to sustain their patients’ care. For instance, the LAF has joined the partnership with the Transamerica life insurance company in order to get an affordable health insurance by allowing it to use the ‘Livestrong’ trademark. This collaboration has further come up with the wellness rider, which provides an optional blood screening profile, which helps in the detection of other chronic diseases ensuring that cancer patients live a healthy life. The organizations can also become very successful in meeting their target of having cancer patients live free from emotional stress; this is explained by the fact that they have education programs, which are intended to assist cancer patients and their dependants (Wahnefried et al., 2005).

The continued research strategy connected with the causes and safety measurers of dealing with cancer is another success factor for these organizations. It is because it will help the foundations achieve their goal of reducing the cancer rate and its effects on patients.

Integrated Marketing Program Analysis

Integrated marketing is a management technique, which is focused on the organization’s optimization of marketing values.  It is the planning of the execution process of all marketing activities in a way that it adds value to these activities. It is very important for service providing organizations, since it helps to achieve the stated goals of the organization through marketing; it comprises the integrated marketing communications. It is an approach, where different modes of marketing communication, such as advertising, public relations, online communications, and the social media, are used to work together in order to achieve the goal of communication. It is possible by maintaining the media mix, timing, and the allocation of resources towards marketing activities of the organization (Wahnefried et al., 2005).

The LAF is seen to have employed the integrated marketing strategy in trying to communicate its services to those people, who may be interested. It is by applying cyclical integrating elements to their integrated program. These elements include mindset, measure, model, map, make, modify, and monetize. The mindset element is whereby organization’s awareness campaigns are conducted in a sensible manner in the move to reach new people. It is important for the company, since it has enabled it to understand the beneficiaries’ inner life by practicing empathy. On the other hand, the measure element has been applied by the company in identifying and creating the baseline for its goals. Therefore, the company has utilized this in appraising its marketing activities as a unit (Yurchisin et al., 2009).

On the other hand, the model element is the strategy that the foundation systematically uses together with the map-and-make elements. In this case, the company combines the introspection with analytics data systematically formulating the whole content based on the model that is already constructed by the company. The make-and-modify measure also works systematically for the company. It assists the company in coming up with new services provided to patients, analyzing and weighing customers’ responses, as well as doing further modifications to them, when needed. Finally, monetization is the application, which has enabled the company to remain socially focused on its social roles in regard with patients and other stakeholders (Yurchisin et al., 2009).

The Impact of Market Integrations on the Economic Success

With the focus on the integrated marketing strategies, it is very possible that the Lance Armstrong Foundation will economically succeed in its activities. It is because these strategies are focused on achieving both the short-term and long-term goals of the organization. It is possible by integrating all efforts put forward in order to achieve the company’s economic goals. These goals are navigating factors to patients. However, the organization has to meet some short-term requirements, such as the acquisition of necessary economic resources to enable it run well. These resources include money, personnel, and other facilities, which are required for daily operations (Harvey & Strahilevitz, 2009).  

With these strategies, it is possible that the company will achieve its economic goals. For instance, the strategies to let the activities known to potential benefactors are a great move to make the company receive the required financial resources. It is because these people can easily learn about the company’s activities and the need for funds. In addition, the strategy to market services by using wristbands and bracelets, which are sold to the general public is a great move towards the achievement of the economic requirements. It is because in the process of selling the company’s ideas, money is also raised in order to support the company (Hoffman & Stovall, 2006).

Finally, the company is also in a better position to achieve its financial requirements, since it has integrated social marketing events, such as charity walks with fundraising activities, which ensure that money are obtained for its various activities (Hoffman & Stovall, 2006).

Recommendations/Conclusion

Having researched about the LAF‘s organization and all its activities, there are various recommendations regarding the areas discussed above. Starting from the 4p’s, it is clear that the company should maintain the number of its services rendered to patients, since if they go beyond their existing number, the company may have problems in allocating the already strained resources. It should be applied by the Susan G. Komen foundation, which has got limited financial resources. Since there are a lot of the LAF’s activities, and a lot of money are needed, it is recommended for the company to expand its income resources to include investment activities, which can be put under different independent management. In the same way, this idea can be used by Susan G. Komen, even though it does not have as many financial consuming activities as the LAF.

The idea to operate in a large area is also a very good one, since it will lead to reaching many people, who are suffering. Then, the company should focus on the employment of more people, who can consistently handle the activities, rather than just depend on volunteers, who may at any time lack the motivation to move ahead with the foundation’s activities. It is true, since in many organizations, employees’ salaries are the main sources of motivation, and therefore, it is the key area, which is normally addressed by the management in order to improve the effectiveness of the delivery of services.

Finally, in the promotion section, it is recommended for the company to focus on reaching everyone irrespective of whether they are sick or not. It is done in order to make those, who are not sick, aware of where they can get assistance in case they contract the disease. It is also important, since they can help to spread faster information to sick people, who are less exposed to communication channels.

Concerning the overall marketing strategies, it is recommended for the foundation to put more emphasis on the use of informal communication, since most people are still not accessible via the media and the Internet. Additionally, they should have people employed for publicity in order to ensure that there is the maximum commitment towards the marketing of the company’s services. Finally, to integrate their marketing strategies, the foundations should allocate their resources in the research of other business factors, which may create barriers to the success of their marketing efforts.

References

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