Nonprofit organizations (NPOs) in the welfare field play a significant role in the
national economy. They provide not only care, but also employment to a large
component of the population. Therefore, their existence and well-being serve a
social as well as an economic purpose. Various changes globally as well as in
South Africa, affect the world in which NPOs function. They have to assess the
impact of these changes on their operations and implement new strategies to
survive and flourish. One of the challenges faced by NPOs is how to differentiate
and promote themselves in such a way that it allows them to compete effectively
for scarce resources but at the same time remain true to their core mission and
values. The concept of branding, to create a lasting and positive impression in
the consumer's mind, is one strategy NPOs can pursue to create distinction and
competitive advantage.
This study was undertaken to determine whether a specific re-branding exercise
undertaken by Rand Aid Association during 2005/2006 has had a positive effect
on its services and the financial viability of the organization.
The results show that the. re-branding exercise has had a significant positive
impact on the way the organization implemented and achieved a critical strategic
objective, namely the development and sale of a new retirement village. It also
made staff more aware of the brand and assisted the organization in obtaining
greater clarity on the different businesses it pursues. However, the study also
shows that the implementation of a brand orientation holds particular challenges.
Many of the challenges are tied to the particular nature of the organization, such
as a lack of human and financial resources and the difficulty in justifying
expenditure on marketing above allocating these resources to meeting customer
needs. Time, knowledge and money constraints also impacted on the process
that was followed and on involving staff at all levels. In addition, the diversity of
the services and target groups in the organization's portfolio made it very difficult to reach agreement on the true values and essence of the organization. This
affected a clear and common understanding of the identity and meaning of the
RAA brand.
It is recommended that NPOs begin the brand orientation process by developing
a clear focus on what the organization stands for and what it aims to deliver. An
in-depth examination of the vision, purpose, values and underlying philosophies
of the organization is essential. These must be clearly identified and internalized
by all staff in order to develop a shared understanding of the brand and work
towards consistency in delivering the brand promise. NPOs should realize that
staff is one of the most important audiences for branding efforts as they
determine the image and ultimately the reputation and continued existence of the
organization. Internalization starts with recruiting employees whose values will
support the brand, training them to understand and deliver the brand promise
and fostering a culture that reinforces positive brand behaviour.
NPOs can enhance their brands by utilizing their unique opportunities to develop
close and warm relationships with consumers. One of the best ways to
differentiate their services is through the relationships they offer and through their
responsiveness to changing needs. Many NPOs also depend on word-of-mouth
communication to promote their services and build their reputation, therefore
conscious and concerted efforts to enhance relationships with existing customers
should receive a high priority.
Finally, it was evident that NPOs should be aware of and plan for the time,
money and effort it will take to develop a brand orientation. Branding cannot be
practiced as a once-off event nor do shortcuts pay in the long term. In particular,
NPOs should remember that the development of a logo, corporate colours and
brochures are the output of the process and not the starting point. The ultimate
aim should be to achieve consistency across all points of contact with customers
and to ensure that these are in line with the brand promise. / Graduate School of Business Leadership / M.B.L.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:unisa/oai:uir.unisa.ac.za:10500/92 |
| Date | 12 1900 |
| Creators | Zuhlsdorff, Elizabeth |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Research Report |
| Format | 1 online resource (v, 104 p.) |
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