Conscious Alliance Situational Analysis Keri Speer Company and Product Analysis •
Relevant History of Brand:
Conscious alliance has evolved over the past decade into a tightly knit network of volunteers, artists, music industry supporters, corporate sponsors and individuals who voluntarily donate to hunger relief and youth empowerment. The company has accomplished many goals including; breaking the Guinness World Record for having the largest canned food structure at Rothbury Music Festival in Rothbury, Michigan on July 4th, 2008. •
Product Description & Info
Conscious Alliance is a small non-profit organization based out of Boulder, Colorado. It operates through grassroots food collection at concerts and music festivals to encourage the generation of opportunities for at-risk youths to explore their creativity and promote culture (Conscious Alliance, 2013). Conscious Alliance has year round projects for members to stay involved. For example, the ‘Art that feeds’ food drive is a participation process where concertgoers can donate canned goods for a limited edition poster (Conscious Alliance, 2013). As an incentive for those who attend music festivals such as Bonnaroo music festival in Manchester, Tennessee., Conscious Alliance gave away posters designed by famous
artists and musicians, like Michael Everett, to the first 2,000 people who donated 10 nonperishable food items (Peters, 2009). The company has provided over 1.6 million meals to communities across the United States (Conscious Alliance, 2013). The food that is collected at music festivals is given directly to local food pantries (Peters, 2009). In 2005, Conscious Alliance built a much needed food storage and distribution facility on the Pine Ridge Reservation in South Dakota, one of the poorest communities in the country. The logo is circular and blue with a yellow sun in the middle.
On the back of every poster is a description of where the proceeds will be going and why. The brand is well known among men and woman who attend music festivals. National Public Lands Day started in 1994 with three federal agencies and 700 volunteers. In 2012, there were around 170,000 volunteers (The National Park Service’s 2011). Conscious Alliance, in partnership with three other organizations, promises to continue to preserve and enhance America’s public land.
Below shows the results of a September 2011 volunteer team (The National Park Service’s 2011). • • • • •
Removed an estimated 450 tons of trash Collected an estimated 20,000 bounds of invasive plants Built and maintained an estimated 1,320 miles of trails Planted an estimated 100,000 trees, shrubs and other native plants Contributed an estimated $15 million to improve public lands across the country
Conscious Alliance fixes natural disasters and improves the overall welfare of communities. Many people support the company rather than find problems with it. Minor consumer problems can be due to poor internet connection while ordering through the online store, high prices in merchandise, and limited amounts of merchandise. Conscious Alliance has a special feature where members can create their own campaign. Word of mouth is huge in getting people aware and donating. The proceeds that are collected online are sent to current projects within the organization. •
Pricing
Price range can depend on whether the consumer wants to buy a print poster, clothing, limited memorabilia and/or ticket to a supported event. The price range also depends on if the consumer wants to donate canned goods and/or donate directly under a “name your price cost system.”
The pricings are listed below (Conscious Alliance, 2013): ITEM
AVERAGE PRICE
Poster
$20.00
Woman/Men Shirts
$22.00
Hoodie
$50.00
Limited Memorabilia: Stretched Canvas
$250.00
Limited Memorabilia: Signed Stretched Canvas $400.00 Ticket to Event
$12.00-$150.00
Canned Good
$1.00
Conscious Alliance teamed up with the band, Elephant Revival, on November 8, 2013 in Colorado to host a food drive that offers an exchange for 10 donations of non-perishable food items for a free limited edition event poster by artist Christopher Shaw (Conscious Alliance, 2013). This price equates to $1.00 per can x 10 cans= $10.00, for a poster that originally averages $20.00. Conscious Alliance allows a large range of prices to be donated towards its company to attract the eyes of big and low spenders.
Revenue listed below for 2012 (Conscious Alliance, 2013):
Expenses listed below for 2012 (Conscious Alliance, 2013):
It is no wonder why food expenses are so high in the pie chart demonstrated above. For one reason, GOOD DEADS Justin’s Nut Butter recently agreed to donate $1 of every jar sold out of any Whole Food Market Store across the nation to Conscious Alliance (Nonprofit Network, 2010). The pricing this business offers is strategically placed in the hands of the consumer in a way that allows anyone to donate no matter their financial situation.
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Distribution
The products for sale are generally available at social advocacy organizations, civil and social events and through online shopping (USBusinesses, 2013). Supporting the environment is a growing trend that influences how consumers make their purchasing decision. Below demonstrates a cross tab analysis study generated by Simmons OneView. It shows that male/females ages 18-34 have a higher percentage of purchasing a product/service that is environmentally friendly over one that is not.
Artists/musicians are becoming more conscious of their carbon footprint and are utilizing their power of voice in terms of getting an important message out to the people (Huecker, 2007). Popular music performers such as The String Cheese Incident and Dave Matthews Band encourage environmental protection that help local communities by partnering up and working with Conscious Alliance’s efforts (Hueker, 2007). Jefree
Lerner, the percussionist/laptop player in the band Sound Tribe Sector 9, says in an interview with Huecker in 2007, "We have a give-and-take relationship: We are inspired and informed by our fans, and we try to do the same for them." The bands, graphic artists and everyone else for that matter have an affective method of distribution and awareness to their fans. •
Promotion
Conscious Alliance is emotional and satisfies the consumer’s need. The company shows exactly what amount of money gets donated to eliminate the amount of distrust a consumer might have about a nonprofit. The company also holds exciting events with artists that effectively communicate a tone of freedom with art and giving. If there is a national disaster or cause that needs funding Conscious Alliance will look into it, and provide the skills needed to generate enough food and/or money to make a difference. In September 2013, Conscious Alliance raised awareness for a devastating flood in Colorado by donating a portion of ticket stub profits at a local concert. The proceeds sent to Conscious Alliance provided the basic necessities for 17,494 damaged households (Smith, 2013). The company advertises a large amount on Facebook, Twitter, YouTube, Instagram and LinkedIn. The website gives the consumer easy access to financial information, promotional efforts, projects,
description of team members and allows him/her to become a member with the click of a button.
Industry/ Environmental Analysis •
Governmental/ Legal/ Public Policy
Government requirements include logo, description, list name of organization, website and publicly record accounting records. The US Department of Labor regulates financial reporting for unions, and the National Labor Relations Board governs the relationship among unions, workers, and management. •
Economic Conditions
The lower the economy the more stingy consumers become with their money, which results in a lower profit. In a lower economy people are looking for jobs and within a membership organization a position can be extremely valuable for continuing education and improving skills (Hoovers, 2013). •
Technology
Technology is an important way to stay engaged with members and potential new members (Hoovers, 2013). Using multiple social media sites is the best way to stay cost-efficient and generate as much company awareness as possible (Hoovers, 2013). Social media is a crucial way to connect and receive donations.
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Natural Resources
Natural resources like food and perishables can be used up fast. However, in a non-profit there is always the option of a replacement item to donate, like money. Industries can rely on a variety of different outlets and tools to get people to donate and to what they can donate. •
Society/Culture
Global marketing is a huge importance in the business world, which is why non-profit industries need to focus more on international issues to keep up (Hoovers, 2013). Some challenges could occur in regards to trading from high tariff rates, global politics, and increased government regulation (Hoovers, 2013). In 2007, The National Center for Charitable Statistics reports that 1.4 million nonprofit organizations were registered with the Internal Revenue Service, of which 32,056 were art, culture and humanities organizations (Weinsten, 2011). The importance of human capital in our knowledge-based economy gives the business community useful skills, such as creativity, while being socially responsible through alliances with arts-oriented nonprofit organizations (Weinsten, 2011). •
News Media
The call for media in a non-profit is also good for the newsroom it streams out of. Any variety of media is good media for a company. Several speakers suggest that the success rate of a non-profit is based upon the integrity of the reporter (Shaver, 2010). Take for instance if it was allowable
for charitable foundations to pay for news. This would be no riskier than allowing advertisers to pay for news (Shaver, 2010). Media acts as the primary communication vice for non-profits, so it is important for the company to have a good image.
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Industry Trends
All non-profits with an on-going donation period and websites encourage consumers to better the community by participating and becoming a member. Industries sometimes partner up with each other to reach the maximum amount of donations possible. Online ticket purchases can be an impersonal and often frustrating experience (Mintel). In order to personify the ticket purchasing process, companies such as TicketCIty, has an enduring message; a friendly face to connect customers to its services (Mintel). Global fellowship is brought together by musicians in the form that music is an easily understood language and a powerful one at that (Williams, 2005). Musicians are born performers and have the personality and charisma needed to attract an audience that will listen(Williams, 2005). Both famous and not-so famous musicians want to contribute whatever money they can to a cause important to their values. Singer/songwriter Ryan Montbleau quit his day job for his passion for music. In 2008, Montbleau and his band put on a concert to benefit Rock
the Earth (Biebel, 2008). One dollar from each ticket sold would go to Rock the Earth, a nonprofit organization (Biebel, 2008). The organization advocates for the environment, and Head Counts, a group that conducts voter registration drives (Biebel, 2008). Montbleau says, “We have no money. We’re still very broke. We’re our own label, and we’re completely independent, but we think it’s time to start giving something back” (Biebel, 2008). •
Competition (direct and indirect)
Direct competition is a company that sells the same thing but offers a better variety to one persons liking. Conscious Alliance might lose business from people skipping over their merchandise tent at a music event and going to other tents with merchandise. An indirect competition is a company that offers the same service, like feeding the hungry or helping the environment. Many times the indirect competition becomes the partner when big events are taking place, like the 18th annual National Public Lands Day with canal cleanup along the Merrimack Canal (The National Park Service’s, 2011).
Consumers/ Target Markets •
Demographic Profile
Primary demographic is male and/or female ages 18-34 in the United States of America. Secondary consumers are 35-64 year old men and women with a disposable income. The broad demographic mix helps
attract sponsorships, which has shown to bring in billions of dollars (Jurgensen, 2008).
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Psychological Profile
The primary audience travels a lot and his/her main hobby is listening to live music. He/she is a supporter of the arts and prefers environmentally friendly products. He/she is an activist for social change and has a pure love for art and helping people. •
Analysis of Present Costumer’s Behavior Relative to the Product Category:
Conscious Alliance mainly receives donations from young adults age 1834 who still hangs band posters in their room and wear band memorabilia. A recent popular hobby for young adults now is traveling and listening to live music at music festivals. Customers get to support their favorite band and feel good about themselves when they donate to the company. The music industry thrives off of the one profitable area it still has, live performances (Jurgensen, 2008). In the last year sales of concert tickets rose 8% while U.S. album sales fell 15% in the same period (Jurgensen, 2008), That Is $3.9 billion the music industry can show up for the past year on just live performances (Jurgensen, 2008), Communities frequently offer free park and/or street festivals. (Mintel). Consumers attend these events frequently over the past twelve months because of accessibility and cost
(Mintel). Second and third preference among respondents is paid events, such as indoor and outdoor contemporary music concerts (Mintel).From a base of 2,000 adults aged 18+ with internet, Mintel reports 13% male and 9% female attended a Music Festival over the past 12 months. Mintel also reports 32% male and 33% female attended a Free local street or park festival over the past 12 months .A figure is placed below provided by Mintel to demonstrate the types of live entertainment events visited, by gender, April 2012.
SWOT
Strengths (internal/controllable): • • • • • • • •
Good reputation Increased profitability and funding Social media skills Good word of mouth Easy membership sign-up Self-satisfaction Any amount of donation is accepted Offers unique products in exchange for donations
Weaknesses (internal/controllable): • • • • • • • •
Hard to keep members actively volunteering Can run out of certain resources A “no member fee” can generate a loss of potential assets for the company Potential distrust of stealing Image limits itself to only one generation’s genre of music Limited merchandise High merchandise prices Hard to globally market
Opportunities (external/uncontrollable): • • • • •
Many emerging markets The music industry and “going green” is a high trending topic The company has many partnerships with artists, food companies and organizations. Weak rivalry since no one else offers one of a kind artwork for helping communities in need The more social media grows the more the company grows
Threats (external/uncontrollable): • • • • • •
Lack of donations can generate serious problems Competition from other non-profit organization working on similar projects and old partners New government rules No perception of how poor some communities Shifting the need to help Native American communities to something/someone else Lower economy results in lower donation
Bibliography Adding Multimedia. (2013, October 29). Erin Gore Named Coop-head of Well Fargo Education and Nonprofit Banking. Retrieved October 30, 2013 from http:// www.pyments.com. Biebel, M. (2008, March 07). Giving Back Through Rock. Tribune Business News. Retrieved from ABI/INFORM Complete. Conscious Alliance. (2013). Retrieved October 28, 2011 from http://www.consicousalliance.org. Huecker, S. (2007). Musicians Go the Extra Mile to Support Green Causes. E: The Environmental Magazine. 18(1). Jurgensen, J. (2008, April 19). Weekend Journal; Music: Summer of Rock. The Wall Street Journal. Retrieved from The Wall Street Journal. Nonprofit Network. (2010, December 23). Boulder County Business Report. 29(26). Retrieved from ABI/INFORM Complete. Peters, M. (2009, June 6). GOOD WORKS. Billboard. 12(22). Retrieved from Business Source Premier database. The National Park Service’s Lowell National Historical Park. (2011, September 13). Volunteers Pitch in for National Public Lands Day. US Fed News. Retrieved from LexisNexis Academic database. U.S. Businesses. (2013, October). Conscious Alliance, Boulder CO. Retrieved October 29, 2013 from ReferenceUSA database. Simmons OneView Shaver, D. (2010). Online Non-Profits Provide Model for Added Local News. Newspaper Research Journal. 31(4). Smith, J. (2013, September 20). Big Gigantic Flood Relief. Pollstar. Retrieved from Factivia. Weinstein, L. (2011). Arts or Culture Oriented Organizations. S.A.M. Advanced Management Journal. 76(3), 4-9. Retrieved from ABI/INFORM Complete.
Williams, Z (2005, July 11). Real People Power, or pernicious platitudes? New Statesman, 134(4748), 12-13. Retrieved from Business Source Premier database.