Canada Blood Services Case Study

Canadian Blood Services

Marketing Plan

Date: June 5, 2016

Presented by:

Britton, Karen

Ghiwot, Raphael

Kunkel, Rebecca

Moffat, Lindsay

Rowlands, Andrew

Tarnawski, Jennifer

Executive Summary

The Canadian Red Cross first maintained the blood collection system in the 1930’s until the blood supply became contaminated with the AIDS and other blood transmitted viruses in the 1980’s. Many people died due to the contamination which later led the government to tighten regulations on donor requirements such as age, weight and health conditions.  

The Canadian Red Cross was forced out of the industry due to lack of trust from the public after the blood contamination.  The Canadian Blood Services (CBS) was then created to maintain the blood supply. CBS has since restored 80% of the Canadian populations trust in the maintenance of the blood supply. Due to the strict regulations and non-for profit status of the Organization, CBS currently has no competition and total holds 100% of the market share.

The problem at the forefront is that demand is quickly growing faster than supply. Roughly half of Canadians are eligible to give blood and out of them, on 3% actually donate. Due to the fact that the blood donations have an expiry date, CBS is constantly looking for new donors to supply the demand of 1 million units of blood which is required on a yearly basis.

The Director of Marketing, Stan Doolby, has listed the following alternatives that would assist in solving the problem:

1 - Target new and eligible donors

2 - Target existing donors which would increase retention

3 - Target non-eligible donors for other volunteer services

4 - Target inactive donors

5 – Status Quo

The alternative that would most efficiently allow CBS to achieve their objectives is alternative #1. This is the largest segment, and of this segment, targeting the 17-24 age bracket would increase supply and retention as they are already the largest group of donors. This age group would also be easy to mass market to through the use of social media.

Problem Statements

Canadian Blood Services has a heavy demand from the public to supply upwards of one million units of blood each year. The demand for certain blood types is increasing at a rate of 2% per annum which is twice as fast as the growth of the population within Canada. The main problem being encountered by CBS is whether the supply can keep up with the ever increasing demand.

Company Objectives

Director of Marketing, Stan Doolby has two objectives at the forefront as follows:

1. Increase the amount of donors per year.
2. Increase the donor retention statistics.

If Canadian Blood Services can fulfill the above objectives, it is likely that supply will satisfy demand.