A Brand Overhaul of Goodwill Industries International Inc

UCLA Extension - Brand ManagementSaskia Rose Plumley

1

Contents page

Background of company – pages 3-4

Situational analysis – pages 5-6

Executive summary- pages 7-8

SWOT analysis- pages 9-10

Marketing brief- page 11

Brand equity drivers- page 16

Financial statistics- page 21

Distribution strategy and conclusion- page 23

2

Background of the company

Goodwill industries are a well-established non-profit organisation, which has been providing jobs to American citizens with disabilities for over one hundred years. Providing employment to also reduce unemployment, poverty and crime. As well as providing employment opportunities for citizens who may often be viewed as unemployable, the organisation also recognises the challenges for female veterans and has established The Women’s Veterans Imitative1.

Goodwill operated as a network of one hundred and sixty five independent community based organisations across the North America, South America and Canada however for the purpose of this marketing plan an exploration into southern California stores will be carried out.

The organisation generated a total of $5.37 billion in venue last year, 83% of which was spent directly on programmes within the company2. More than 318,000 people we placed into employment last year due to the educational credentials obtained resulting in these individuals increasing their collective lifetime earnings by more then $11 billion.3

Southern California Goodwill operations reduced the need of costly government support services through encouraging the local economy to support the organisation and have the consumer power of increased purchasing at a low and affordable cost. During the year of 2012 economic output and fiscal impact of Southern California Goodwill operations totalled $200.5 million, employed 20-30 citizens per store of which positions created $88.2 million in wages. The overall community economic impact totalled $412 million. These statics will later be referred to in the budget pro forma for the business, whereby an outline of the future plans for business will also be discussed4.

Goodwill provides a point of differentiation compared to other non-profit second hand stores. Through its efforts to provide for the community by empower

1Stiska, “Goodwill announces new initiative to serve women veterans” 2 Goodwill: About us< http://www.goodwill.org/about-us/ >, accessed 4 December 20153 Goodwill: About us< http://www.goodwill.org/about-us/ >, accessed 4 December 20154 Goodwill: Economic impact< http://www.goodwillsocal.org/our-promise/economic-impact >, accessed 4 December 2015

3

rather than simply helping as they directly provide jobs which enable citizens to become self sufficient. They also provide discounted goods for the on a lower income which again helps them to support themselves and their families.

The company presents many American core values such as; individualism, equality, materialism, science and technology, progress and change, work and value, mobility, volunteerism, action and achievement. The employees, those donating and those purchasing experience all of the above.

The value proposition of the company is “Used merchandise at deeply discounted prices”5 outlining Goodwill’s promise to the customer. However a revised version of this will be included in the marketing plan. Similarly the organisations mission statement will be reformed. The current mission statement is as follows; “Goodwill works to enhance the dignity and quality of life of individuals and families by strengthening communities, eliminating barriers to opportunity, and helping people in need reach their full potential through learning the power of work”6.

Despite the many positives Goodwill has to offer there is still a negative stigma, which surrounds second hand shopping, through this marketing plan I hope to provide an effective overhaul of the brand to challenge and overcome these current attitudes.

5 Goodwill essay: Goodwill Industries Inc<http://www.antiessays.com/free-essays/Goodwill-Industries-597840.html>, accessed December 4 2015

6 Goodwill: About us< http://www.goodwill.org/about-us/ >, accessed 4 December 2015

4

Situational Analysis

In the current market place there is a negative stigma, which surrounds second hand, charity and thrift stores. The mission is to address these current negative associations through the re-branding of Goodwill. To establish an overall emotion of which supporting community is important, through educating people about the importance of donations and what their donations help towards. The focus will be on maintaining the organisations overall ethos but rebranding the companies overall appearance and appeal.

According to New York Times, each Goodwill store falls under an umbrella of set guidelines from the ‘parent store’ however each store has the freedom to pursue marketing strategies, which are fitting for its own regional location7. With the fluidity rebranding the organisation based on location is important. Many of the internal and external factors will remain the same however certain areas may be affected according to location.

According to statistics Goodwill Southern California (GSC) has the highest rating of four stars for its ability in efficiently managing growth and finances. GSC has also been said to outperform most charities in America. More than 59,000 people benefited from GSC efforts last year. In addition, GSC currently operates sixty-three retail stores, forty-two donation centres and twenty-four community based career resource centres, three of which are campuses8. With this data it is clear to see that GSC is one of the more successful Goodwill stores however there are factors, which need to be considered in order to improve GSC success.

Addressing the internal and external environment factors is a significant element of the rebranding of the organisation. Outlining these is vital in order to assess the current market.

The internal environment factors include the reliance on donations, support from volunteers and the customers purchasing items from the stores. Without these factors Goodwill will be unable to operate successfully. Through the

7 La Fera: “Look who’s shopping Goodwill”8 Ray, “Charity navigator”

5

rebranding of the organisation, the internal factors will remain the same however they will become more of a solid foundation for the business.

The external environment includes, trends of society, education and social and cultural changes. The locations of the GSC stores play an important role in the success of the organisation, locating the stores close by but not directly in affluent areas means, donations are likely due to the household income in surrounding areas however there is not a demographic association with the brand.

Political regulations include pricing, employment wage, training health and safety, returns policy and the tax deduction. For the rebranding of the organisation emphasising the importance of tax deduction when donating to Goodwill could potentially increase donations9. The health and safety regulations will fall under the stores location similar to employment wage, which is implemented, by state minimum wage but also FLSA, Fair Labour Standards Act provision. There are current debates surrounding Goodwill’s employees wage, these will be addressed at a later stage in the marketing plan but advertisement supporting the change in employees rate of pay will be included as well as a potential press conference which will outline the changes of the company.

In order to track the purchasing and selling habits of customers, technology can be used to analyse sales. Using a system to monitor what sells in the stores and what doesn’t will help the organisation stay current with trends, eliminating items, which hold shelf space for long periods of time preventing other items from being sold. In addition creating an application which tracks donation success will also positively affect the business and encourage the community to feel part of change and success.

Economic environment, the business needs to be aware of inflation and price items accordingly. Other implementing factors to consider are the rental cost for each store, minimum wage and leading economic indicators such as the price of crude oil, necessary when donations are being shipped from donation centres to retail locations.

For further understanding of the current position of the organisation, additional detail will be included in the SWOT analysis.

9

Goodwill: Detailed donation receipt http://www.thegoodwill.org/taxcalculator.php, accessed 4 December

6

Executive summary

Franklin D. Roosevelt stated the importance of “ the inherent right to work” for all citizens, stating that “ it ought to be a successful bit of national teamwork from which will come again that feeling of national solidarity which is the strength and glory of the American people”. Goodwill hope to follow this message and encourage national participation to work as a unit and community to greaten America through employment opportunities and community support.

The brand overhaul of Goodwill is to potentially reach out to a new target audience of who may not currently consider Goodwill as a retail store of first choice. In addition to create further brand awareness for the organisation by re-iterating the message of helping and supporting local communities. Following the brand truths of, establishing brand trust, building brand and living up to brand’s promise and finally constantly strengthening the brand by setting achievable goals. The brand overhaul will not consist of changing the brand but re-defining and updating, ensuring that many of the brands current loyalties remain the same.

The brand overhaul will take place in a chosen southern California store and then potentially through the law of expansion, develop and improve other existing stores and expand the business opening new stores.

Through this advertisement campaign and marketing plan, the organisation hope to identify, inform entertain and persuade the current target audience but also the new target audience to create brand contact. By providing them with detailed information about the brand what it has to offer, what consumers impact means and how the brand exists and is successful due to communities input, identifying the brand as a unique organisation and promoting its point of differienation. Entertaining the customers will be addressed through the advertisement campaigns and social media involvement. Finally persuade through again the advertising and branding of the organisation. Persuading people to donate and purchase goods.

7

Some of the following will be considered touch points for the company, the rewards card that will allow customers to earn points whilst shopping which can be redeemed and put towards future purchases. Similarly the mobile applications where donations can be tracked in order to better understand personal contribution towards the organisation. Through this touch points the business will further be establishing brand awareness and emphasising their point of differ enation.

The brand signature will be as followed; Providing hope for allEmphasising on the main benefit of supporting Goodwill, that the cause is helping everyone.

The current mission statement of the business is; “ Our Mission. Goodwill works to enhance the dignity and quality of life of individuals and families by strengthening communities, eliminating barriers to opportunity, and helping people in need reach their full potential through learning and the power of work”.

The redesigned value proposition will show as; “Reused goods at a reasonable price”

The positioning statement will be; To Americans who want to support their local communities, Goodwill provides hope and opportunities, for those seeking employment that fall under the category of disability citizens.

The national US motto of ‘E pluribus Unum’ meaning out one many will be used to emphasis the impact of donations and support for the company and how this in turn effects the success of the business. This will also be supported by the redesigned logo, which will play an important role in the overhaul of the brand, through social media and macro marketing.

After the effects of the 2008 economic crash there has been an increase in consumers purchasing items from second hand stores, as we are now known as a nation of ‘value conscious’ shoppers. In addition 16%-18% of Americans will shop at a thrift store in a given year. As an organisation we want to increase this percentage but in a positive way, encouraging consumers to shop at Goodwill out of choice not need due to economical impacts. Changing the current stigma associated with thrift shopping.

Finally through the brand overhaul the organization hope to achieve success despite competition from mainstream copperplate companies and national holidays such as Black Friday where goods are sold at a discounted price.

8

The organisation hopes to heavily rely of charitable donations and community support through volunteering and donations to help fundraise for the brand overhaul. As Goodwill is a non-profit organisation we have decided to focus on employment rates as opposed to profit or revenue of the company. Goodwill’s employment rate expects to increase by 5% in the state of California after the brand overhaul is complete.

Swot analysis

STRENGTHS WEAKNESS Ranked nations leading workforce development

non-profit organisation 80% of profit is used to train employees Main focus providing employment for those who

may otherwise not be considered in mainstream retail stores

Items sold at a discounted price Well established organisation since 1902 Revenue and profit is going towards sustaining

and developing the business but also providing opportunity and accessibility (low income families)

“Employer of choice”- programmes and benefits Company provides; health care plans, financial

independence coaches, on-site wellness programme, subsidised gym memberships, 25% discount at Goodwill stores and outlets, financial literacy programs,

165 stores nation wide ‘$4 social enterprise’ Shopgoowill.com is the nations first and only non

profit auction site Partners with business and public agencies to

develop innovative job training and placement programs

Partners with other well established brands; GAP, Levi Strauss &CO and TABI International.

Partnerships with non-profit organisations; American Red Cross and National industries for the build.

Reducing landfill waste Supporting those affected by natural disaster in

the US- Oklahoma Torndo , partnering with disaster relief organisations

Discounts on selected federal holidays Served more than 2.4 million people through its

series

Surrounding negative stigma associated with second hand shopping

Stores appearance Brand awareness, already established but

has a pre-existing notion Fair labour standards act, paying

employees below the state minimum wage 7,300 out of 105,00 employed are being paid below federal law

Lack of donations in some stores Large amounts of donations in stores,

creating a cluttered appearance Budget could implement accessibility to

improve stores Media criticism regarding CEO’s

9

OPPORTUNTIES THREATES Designer clothes rails Vintage/ retro section Celebrity donations (Proven effective in the past) Goodwill Application; Store locator, Hours of

operation, Blogs, latest news, current donation needs in particular stores, Donations calculator.

Partnered with local ‘ Self Organising’ companies to ‘declutter’ homes and promote donations

Bloggers used to influence purchases Active social media platforms Pop up venues at local college campus’s or events

such as Coachella Specialist events; Back to school, The Holidays Further advertisement of what your donations

help towards Grants from government and private agencies to

help support local stores The Donate Movement to help monitor impact of

donations Business expansion, further job opportunities for

those considered ‘unemployable’ Brand recognition and awareness, information

provided at local school, career centres, half way houses

DIY classes for home improvements, restoring used furniture

Launch events to promote brand awareness Brand contact, packaging items during holiday

period, the presentation and appearance of the store

Brand communications, reminding customers of Holiday discounts, double rewards points weekends and special events taking place

Creating a brand signature – ‘Providing hope for all’

Partnering with local dry cleaners to wash donated clothes in return for business promotion and coupons given to donators and shoppers

Collaborating with Pizza Hut to offer discounted pizzas after every purchase, to encourage families to work together to donate unwanted goods and then spend quality time together whilst sharing pizza.

Provide a career ladder for Goodwill employees Emphasis employee motivation through awards,

career paths within the business, social events for employees

Competitors such as American Red Cross and Salvation Army

Boutique stores Speciality stores, selling categorised items Can be affected in an economic downturn

or recession Modern business technology systems Fashion and trends changing constantly Seasonal clothing, seasonal profit External factors such as price of rent National Holidays such as ‘Black Friday’

selling NEW items at low costs

10

Goodwill day, one day a year, which is recognized as ‘Goodwill day’, whereby, further discounts are added to products. This hype can be further promoted through viral marketing sources – following a hastag for example #GdWillday

Marketing brief

The purpose of this brand overhaul is to challenge current attitudes about shopping at Goodwill, through the improvements of stores appearance and overall persona. Making shopping at Goodwill and enjoyable experience. In addition to increasing brand awareness of the organisation in a new light there will also be a focus on encouraging the community to participate in the changes of the brand through community service and collecting donations.

The alternations of the organisation the message of American community and core values will remain prominent in order to help encourage donations, promote sales and purchasing.

This can be better described using a formula of the ‘The P’s of branding’ a method used in outlining the important factors when overhauling this particular brand;-Promote demotions -Participate in purchasing (Sales)-Preserve jobs

Sending the message that Goodwill doesn’t only work to support the unemployed but benefit those who live on a low income by providing goods at a discounted price. ‘Making the possible, possible’.

Taking the focus off mainstream corporate business, and encouraging purchases from business that exist to support the local community. In turn promoting the message of creating jobs which benefit society, jobs result in less crime, less unemployment, less state support, helping society become self sufficient.

Goodwill is a well-established brand, this will be used to the organisations advantage when carrying out the brand overhaul. However using the ‘BAV’,

11

brand asset valuator will help to identify the changes, which can be made to the organisation. Assessing the brands point of differentiation, as being an organisation which supports the local community, the relevance in society, the need for the brand to be successful in order to provide employment and low cost products, the esteem referring to the customers perception of the brand whether the brand delivers its promises and finally the knowledge of the brand referring to the degree of awareness of the brand in the customers mind10.

The objective and purpose of the brand overhaul

Create emotional branding, addressing the audience at a level by which they connect on an emotional level. The consumer will have an understanding of the importance of the business within society and will have an understanding of the struggles some potentially face without the organisation. In terms of unemployment, self-sufficiency and poverty. Through the advertising again promoting the message that by supporting the organisation you are not only helping employment but also those on a lower income.

Promoting the message that reusing items can be ‘cool’ and there is a current trend surrounding restoring old items and working on a budget. The emotion of support from the local community will be addressed in the marketing of the organisation, showing how the community have been part of the change to improve Goodwill and how by doing so it can be rewarding in many ways. The target audience

The target audience can be split into three categories; those who are pre-existing Goodwill customers, the ones who already hold an existing opinion towards the organisation but whose shopping experience can be made more enjoyable. Finally those who may consider the organisation as a last option.

- The current target group types of buyers can be categorised in the following way;

1. The early adopter considered as the leaders, the influencers, set examples and are good decision makers, they are respected customers willing to try something new

10 Mba Skool: Brand asset valuator, http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/1859-brand-asset-valuator-bav.html, accessed 4 December

12

2. Late adopters- they make the purchasing design later in the cycle, after the early adopters have moved on to new products

3. Critical mass- make purchases which are often considered obsolete 11

The new categories;

1. Pre- existing customers, who are comfortable with the operations of Goodwill, however are open to change and improvement whilst keeping the core values and mission of the organisation.

2. New customers – make them aware of the ‘updated’ version of the company- promote sales/ events and advertise through promotion examples but mainly educated – tell them what the business, does what it stands for and what it hopes to achieve with their help – help them feel part of the ‘movement’ the change, working together to make a better America.

3. The ‘retired customer’- customers who no longer consider the brand, methods of advertisement used to re-introduce them to the brand. Tell them the new and improved elements, promote the restoration of products.

Make focus is to educate community, in a way of which they look at the brand in a different light.

The new target audience

The new target audience American’s aged 16- upwards, this can further be broken down into more specific categories and with the different forms of advertising these specific target groups can be reached separately. However the overall message will be Goodwill is a brand, for everyone and anyone with its

- Junior and Senior high school students – shopping for fashion, book, vinyl records,

- College students also shopping for similar items but maybe also college household items, desks, grills, coffee makers, irons

- The new home buyer – Shopping for low priced household items - The typical American family – kids bike, books, furniture

The target audience for those making donations; -People who are moving on to college- clearing out-Moving home

11

13

-The average American Family, DE cluttering or downsizing home, “if you haven’t used something in two years you don’t need it “ motto

The target audience will alter depending on marketing proposition e.g. pop up venue at music festivals will cater to a particular type of target audience. The general stores will cater to all.

Supporting rational

Currently 8.9 million or 15% Americans citizens are unemployed12. It is estimated that 48.9 million of the non-institutionalized citizens have a disability, meaning there is a reason of Goodwill’s efforts in employment. Among all US citizens with disabilities of working age, 52% are unemployed. The current unemployment rate for citizens with a disability in the US is 12.1% and those without 4.5% 13.

Last year 261,875 people in the United States and Canada obtained employment as a result of Goodwill career service programme. Every twenty seven seconds of each business day, Goodwill helps someone find employment

With these statistics there is a clear need for Goodwill operations to be a successful organisation, and potentially expand with more stores across the US. With overhauling the brand and improving current views of the brand and the brand name itself, further jobs can will created therefore reducing these statics of disability unemployment.

The organisations problems could be creating further brand awareness and changing pre-existing views. Starting on a small scale but making a big impact, encouraging more people to donate, reliance on community based support and volunteerism. There are many opportunities for a brand overhaul of Goodwill; reaching out to a generation who enjoy ‘vintage’ and ‘retro’ purchasing also those who are interested in restoring and re-designing products. The main objective will be to market the organisation in a way, which appeals to a wide audience, through activity of various social media platforms and involvement and partition in traditional forms of marketing such as billboards and freestanding advertisement. Some of the recommendations could be to ensure marketing is fitting for executed platform, the dialogue and content is fitting for

12

13 United States Department of Labour: Office of disability employment < http://www.dol.gov/odep/ >, accessed 4 December

14

the advertisement campaign, therefore received in a manor, which is appropriate for the target audience.

Creative elements;

For the creative elements further description will be provided in the advertisement campaign section of the marketing plan. But as a brief over view a Hashtag will be used to follow and engage with the community in a viral marketing form. A new logo will be designed keeping many of the main creative elements of the original logo but updating it to include the new messages which are to be associated with the brand, such as American values and community support.

A new slogan will be created; ‘A little goodwill goes a long way’ again encouraging the message of community support and leadership. A punch line below the slogan will read ‘Help America, help you’. Both of which can be tracked on social media and be used in ad campaigns.

Timings and parameters

-Start with one southern California store-Advertise 3 months leading up to refurbishment - 6 months for refurbishment – document process, create hype - Grand opening 8 months-Pop up venues and events throughout the year to create further awareness and hype – back to school – music festivals -Expand and refurbish surrounding stores

Brand equity drivers

15

The logoThe logo incorporates many of the creative features of the original, using the ‘smiling face’ letter ‘G’ in the corner, using the same font for the wording. But including the American map and flag to push the image of American community, values and patriotism.

The logo will be used to create awareness for the overhaul of the brand but will not be used directly on detriments until complete brand awareness has been achieved.

The slogan and punch lineThe slogan and punch line; ‘A little goodwill goes a long way’ ‘Help America, help you’. Both of which can be tracked on social media and be used in ad campaigns through hashtags.

Television commercial ‘Curious George commercial’ The advertisement will start with a young boy being read the story of Curious George by his father. Later time passes the book always plays an important part in the boys childhood memories. However collects dust on a shelf along with other childhood toys and as the boy prepares for moving on to college, he donates the book and other no longer used items to his local Goodwill store.

Once at college the boy is drawn to a female who is in fact reading the book Curious George, for one of her elementary education classes. The boy and girl then share their love for the book and eventually are in a relationship. Again time passes, the boy and girl create a family, and years later the boys own son chooses a book from their local goodwill store, the book he chooses is curious George and the pattern repeats itself.

Emotional advertising is created in the fact the audience can potentially relate to the advertisement; maybe they have a childhood book they were read as a child of which they now read to their own child or children.

The billboard advertisement

16

Will use a screen shot from the television commercial of ‘Curious George’,

whereby the public can be reminded of the message and the commercial its self.

Since there is hope to achieve emotional contact with the commercial, by using

the commercial for other traditional advertisement methods, people can refer to

the ad through the commercial. A hastag relating to the commercial will also be

used to engage with customers of social platforms. For example asking them

what their favourite childhood book was or is and therefore potentially creating

a relationship between organisation and customers. Demonstrating the value of

customer life time value.

Pop Up venue advertisement

Pop up venues will be used to create further

awareness of the brand and give the brand an

alternative point of diffienetiaion. Pop up venues

will feature in locations such as music festivals

similar to Coachella and provide items such a

17

vintage and retro clothing. Also on college campus’s, items will include college

dorm appliances, books, clothing and household goods. Advertisement will

mainly be published on social media and the hashtag provided will help users

engage with the current events.

Photo booths

Will be located in populated areas such as

down town LA or Hollywood. Customers can

try on items of clothing and use the photo

booths provided to take quirky and fun photos

of themselves wearing the clothes.

Website

Will provide detailed information about the current overhaul of the brand;

provide information about which stores will be undergoing thee rebranding.

Advertise events in the social calendar section. Provide store information such as

hours of operation, contact information and current job vacancies. There will be

a specific section dedicated to keeping the customers updated about the

refurbishment in the local stores and the future plans, in a similar style to

‘Extreme make over home edition’- ‘Extreme make over Goodwill edition’.

Twitter and Instagram

18

The following images are examples of advertisements, which will be used on the

social media platforms of Twitter and Instagram. Again using a hastag to engage

with customers but also being active on these sites will attract a wider audience

to the organisation and create an online brand persona. The community also

have the ability to interact with the company by participating in online

challenges such as ‘100 days of Goodwill’ where the community is encourage to

purchase or donate one item at Goodwill for one hundred days.

Mobile application

An application for smart phones will also be created in order to track individual

donation progress. Donators will be able to assess their impact on the

organisation in terms of creating jobs and overall success of the business.

Brand influencers

19

The organisation will collaborate

with bloggers and influencers on

social media platforms to help

promote the rebranding of the

organisation. The influencers will

provide creative ideas about

restoring furniture and other

products, ‘top ten goodwill finds’, vintage and retro clothing. Also provide

information about donating items, ‘the does and don’t of donating’. Influencers

will also participate in online challenges such as ‘100 days of Goodwill’ –

presenting clothes of which they have purchased at the store and provide detail

and fashion inspirational tips about the look they have created using only

Goodwill items.

Press coverage and media attention

The organisation will be collaborating with local famous people, to establish

brand ambassadors for the business and further create advertisement and brand

awareness. Inviting news broadcasting companies to the grand opening of the

new Goodwill store will create press coverage and media attention resulting in

brand awareness.

In addition the organisation will work with ABC’s Extreme Makeover television

series to offer further coverage of the process of the brand overhaul. Therefore

Generating brand awareness and hype before the launch event.

Throughout the entire ad campaigns the message of the importance of donations

will be included but also the significance in purchasing from good will and how

20

by participating in both, the consumer can help create ‘a better America’.

Attention to the tax deductions due to donations will also be made apparent in

advertisement campaigns focusing on donations, to encourage donations further.

Financial statistics

The following statistics are calculated from the last business financial year and

provide a good stand point for the organisation to use when consider the

upcoming budget and financial forecast. The statics provided are for the global

organisation and will differ depending on store location.

Shop at Goodwill, the online auction website generated, $251,455,656 in

revenue. The retails stores generated $5.37 billion. Between the years of 2009

and 2014 the organisation totalled overall revenue of 9 billion a growth of 2.3% 14.

Government support= $506m

Private donors= $927m

Other income= $3,940m

Total expenses= $5,145m

Charitable service= $4,553m

Management and general= $565m

Fundraising= $26m

Surplus/loss= $228m

Charitable commitment= $89%

Fundraising effienticy= 95%

14IbIS World: Market research report< http://www.ibisworld.com/industry/thrift-stores.html>, accessed 4 December

21

Donor dependency= 75%15

Industrial and service contract work= $666m

Revenue spent directly on programmes= 83%

The total employment and community service for last year was 81 million. With

the brand overhaul this number is estimated to increase during the period of the

refurbishment but also after expansion of stores in the surrounding local areas.

When calculating costs of advertisement of the brand overhaul the following data

is collected from regional business in the Southern California area.

Billboard advertising=$2,000 (10ft X 30ft) San Diego

Billboard advertisement= $1,900 (14ft X 48ft) LA Area

Billboard advertisement= $4,500 (14ft X 48ft) I-5 Highway

Bench sign= $175 (Street furniture 3ft X 8ft) Orange County

Mobile billboards= $3,500 (Transit 8ft X 34ft) Irvine CA16

Television advertisement= $3,000 - $25,00017

A thirty second slot during television weeknight primetime costs an average of

$326,26018.

Since southern California is predominantly an affluent area the organisation will

rely heavily on donations and charitable funding from co-prorate events. Social

15 http://www.forbes.com/companies/goodwill-industries-international/16 http://www.outdoorbillboard.com/billboards-for-rent/california/all/page/6 17 Sky Works: How much does a TV commercial cost? < http://skyworksmarketing.com/tv-commercial-cost/ >, accessed 4 December 201518 International Business: The economics of Prime Time, <http://www.ibtimes.com/economics-prime-time-how-much-does-it-cost-place-30-second-ad-prime-time-weeknight-tv-1424544 >, accessed 4 December 2015

22

media will also play a very vital role in the viral marketing of the business, as it is

cost effective and appropriate for engaging with customers in a modern and

effective way. Digital analytics can also be easily tracked in order to identify

which marketing strategies are working best.

Distribution strategy

Goodwill currently partners with the following brands; Walmart, Bon.Ton,

CINTAS and Dell Reconnect. These partners have made significant investments

into the Goodwill industry to support the organisations work and local

communities. Therefore the following distribution strategy will be based on the

brand Walmart to the Goodwill organisation.

Distribution channels include wholesalers, e-commerce websites, catalog sales,

consultants, a direct sales force who sell over the phone, in person or both,

23

dealers, home shopping networks and retailers. The distribution channel or

channels selected can dictate what the rest of the marketing strategy would be,

as they influence the buyer directly. Advertising and other marketing methods

would then appeal to the buyer’s demographic. Small businesses with limited

resources or financial support must perform a careful market analysis to

determine which distribution channel is best suited for their customers.

As Goodwill is not responsible for the manufacturing of product but the selling of

pre- owned items, the distribution channel presents differently from the

traditional wholesale, retail and direct method.

Donations act as the main focus, the company could not operate without these,

then through advertisement of the brand consumers are made aware of the

overall brand and not specific items. After which this is established the customer

is able to purchase items through the knowledge they have experienced in the

advertisement of the brand as a whole not specifically a product. Although

through touch points and value proposition of the brand customers are made

aware of the brands overall message and ethos and a relationship is potentially

established between customer and organization.

Future goals for the business

The business future goals follow the ‘SMART’ criteria being; Specific, measurable,

attainable, relevant and time based. Through the use of effective advertising and

marketing of the brand overhaul in the southern California location further

consideration into expansion of the business will be address. In addition brand

refurbishments following the same style, as those updated in California, will be

carried out across the nation to provide the same experience to all Goodwill

stores.

Following the law of siblings, Goodwill could potentially expand stores and

provide categorised independent business, which fall under the trust Goodwill

name but hold specific items. Although it may be difficult to currently view

24

Goodwill as a charismatic brand, using existing charismatic brands to promote

the organisation will create brand awareness and potentially result in Goodwill

becoming a charismatic brand in its own right. An example of how this has

already been approached is though the partnership with Levi Strauss the

advertisement campaign included the slogan; “Giving back never goes out of

style”.

For the foreseeable future with the current marketing plan and brand overhaul

the success and brand awareness of the business will blossom and Goodwill will

become more than just a household name but hold speech stream visibility

allowing the brand to be recognised as a verb or a noun.

25