Marketing Plan Daniel Whitford MKTU 605: Marketing Management Spring II 6/17/2012

Table Of Contents 1.0 Executive Summary 2.0 Situation Analysis 2.1 Market Summary ... 2.1.1 Market Demographics 2.1.2 Market Needs . 2.1.3 Market Trends 2.1.4 Market Growth ... 2.2 SWOT Analysis 2.2.1 Strengths 2.2.2 Weaknesses 2.2.3 Opportunities . 2.2.4 Threats ... 2.3 Competition .. 2.4 Service Offering 2.5 Keys to Success . 2.6 Critical Issues 2.7 Macro Environment .. 3.0 Marketing Strategy . 3.1 Mission .. 3.2 Marketing Objectives .... 3.3 Financial Objectives .. 3.4 Target Marketing .. 3.5 Positioning . 3.6 Strategy Pyramids .. 3.7 Marketing Mix ... 3.7.1 Services and Service Marketing .. 3.7.2 Pricing . 3.7.3 Promotion 3.7.4 Service 3.7.5 Business Facilities ... 3.8 Marketing Research 4.0 Financials, Budgets, and Forecasts 4.1 Break-even Analysis .. 4.2 Revenue Forecast .. 4.3 Expense Forecast 4.4 Linking Sales and Expenses to Strategy 4.5 Contribution Margin .. 5.0 Controls . 5.1 Implementation Milestones 5.2 Marketing Organization . 5.3 Contingency Planning References 3 3 4 4 6 6 7 7 8 8 9 9 9 10 10 11 11 11 12 12 13 13 13 14 14 14 15 15 16 17 17 17 18 19 20 22 22 24 24 26 26 28

1.0 Executive Summary

The goal of this marketing plan is to outline the strategies and various outreach programs that will make the goals outlined for Meals on Wheels, a non-profit (501) organization a reality in the year 2012. MOW, unlike a typical business delivery company, receives a unique way of financial support from government subsidizes and private donation, as well as from many volunteers. The service goal is to preserve the dignity and independence of homebound elderly and disable persons by providing them with nutritious home-delivered meals with our caring support from volunteers and staff members, and other services, to enrich their lives. MOW is one of the charitable community service organization to provide for the elderly and disable persons who are homebound, disable, or are not able to make meals..etc. Besides elderly and disable persons, MOW is also open to serve low-income families or single families who receive social security benefits. The goals for MOW are (1) Reaching out homebound elderly who are alone and isolated, by providing low cost home-delivery meals. (2) A place for community to form a team work of volunteers support as to socialize and to share their passion of serving experiences with friends. Marketing will play a vital role in the success of MOW. MOW must build a reputation of well and caring delivery services around the senior community. It offers by consistently promoting itself through local television, radio, community fair events, and schools with printed advertising. Marketing efforts are just beginning by the time a potential consumer enters MOW for the first time. A strong emphasis will be put on keeping homebound elderly healthy and consumer brand loyalty with these seniors including focusing on making nutritious meals, training for staff and volunteers, and striving for customer satisfaction. Our target markets include:

Homebound seniors or seniors who are 65 years or older from retirement community centers and senior apartments. Disable persons who are receiving Medi-Cal. Low-Income families who have qualified for this service

2.0 Situation Analysis

Entrenched as the leader in senior food programs, MOW has been providing no-cost senior food assistance since 1976. Operating as a non-profit which relies on donor contributions, requests for such assistance the past several years has remained particularly high. With a growing Baby Boomer senior population, and a marked decrease in senior retirement and social benefits, MOW recognizes the need to remain the leading and central senior food organization for seniors needing help. Separating us from loosely organized local food bank organizations, which cater to a wider demographic, MOWs narrow target clientele remains senior citizens, generally over the age of 65, with limited financial resources. This gives MOW a distinct advantage by targeting a specific segment of the population whose only means of financial assistance is generally reduced monthly Social Security subsistence. Meals on Wheels enjoys vast support and recognition as the only leader providing readymade hot meals to hungry seniors. Significant support from high profile celebrity, corporation, and influential members of Congress, point to a clear stronghold in MOWs fight against senior hunger, with little to no

competition. Seniors have found, with MOWs long-standing tradition of providing no-cost assistance, that it is the main choice and household name in any type of food assistance need.

2.1 Market Summary

Meals on Wheels is a nationwide company that has committed to helping elderly or disabled persons get hot, nutritious meals delivered directly to their homes on a daily basis. The senior citizen population is growing year after year and more senior citizens are unable to afford meals to properly feed themselves. Meals on Wheels is targeting the senior citizen market to make sure that no senior goes hungry and that they are provided with nutritious meals to keep them well-fed. The senior population is growing at a relatively fast pace of about 12% from the 1990 Census to the 2000 census. More and more people are reaching the age of 65 and are unable to afford the price of food with the price of inflation and the decline in the economy. Therefore, Meals on Wheels sees a big demand in the future for its services that its provides each year.

Target Market Growth:

Senior Citizens over the age of 65 reached 35.1 million in 2000 a 12% increase from 1990 The population 85 years and over increased by 38 percent, from 3.1 million to 4.2 million in 2000 The West experienced the highest percent increase of the older population, at 20 percent In the West, the proportion of people 65 years and over increased slightly from 10.9 percent in 1990 to 11.0 percent in 2000. California, the most populous state, was also the state with the largest number of people 65 years and over (3.6 million people). The percent of people 65 years and over living in nursing homes declined from 5.1 percent in 1990 to 4.5 percent in 2000

Target Markets

2.1.1 Market Demographics

As a not for profit 501(c), Meals on Wheels specifically markets and accepts donations on behalf of those hungry senior citizens who may have been left behind due to insufficient Social Security or retirement benefits to supplement an acceptable way of life. Loosely defined, the generally accepted age at which a person becomes a senior citizen is 65. Clients of Meals on Wheels are generally women, in which 1/3rd live alone in low income housing, with the vast majority only receiving modest social security benefits. A significant segment of hungry seniors were minorities, which comprised nearly 40% of the hungry senior demographic. Future market indicators show an expanding senior citizen demographic in the coming decade, as aging baby, boomers (with longer life expectancies) begin to receive limited or decreased social security benefits. Specifically: Current Market Analysis Older population (65+), which numbered 40.4 million in 2010, has increased 5.4 million or 15.3% since 2000. The number of Americans aged 45-64 who will reach 65 over the next two decades increased by 31% during this decade. Older women outnumber older men at 23.0 million older women to 17.5 million older men. In 2010, 20.0% of persons 65+ were minorities--8.4% were African-Americans. Hispanics represented 6.9% of the older population. Approximately 3.5% were Asian or Pacific Islander, and less than 1% were American Indian or Native Alaskan. About 29% (11.3 million) of non-rest home seniors live alone (8.1 million women, 3.2 million men). Almost half of older women (47%) age 75+ live alone. About 485,000 grandparents aged 65 or more had the primary responsibility for their grandchildren who lived with them. The median income of older persons in 2010 was $25,704 for males and $15,072 for females. Median money income (after adjusting for inflation) of all households headed by older people fell 1.5% from 2009 to 2010. Households containing families headed by persons 65+ reported a median income in 2010 of $45,763. The major sources of income as reported by older persons in 2009 were Social Security (reported by 87% of older persons), income from assets (reported by 53%), private pensions (reported by 28%), government employee pensions (reported by 14%), and earnings (reported by 26%). Social Security constituted 90% or more of the income received by 35% of beneficiaries in 2009 (22% of married couples and 43% of non-married beneficiaries). According to the Census Bureau almost 3.5 million elderly persons (9.0%) were below the poverty level in 2010. Future Market Analysis The population 65 and over has increased from 35 million in 2000 to 40 million in 2010 (a 15% increase) and is projected to increase to 55 million in 2020 (a 36% increase for that decade). The 85+ population is projected to increase from 5.5 million in 2010 and then to 6.6 million in 2020 (19%) for that decade. Minority populations have increased from 5.7 million in 2000 (16.3% of the elderly population) to 8.1 million in 2010 (20% of the elderly) and are projected to increase to 13.1 million in 2020 (24% of the elderly).

2.1.2 Market Needs

The exponential growth of the senior citizen demographic, in part, largely due to a retiring baby boomer generation, will spawn increased monetary and voluntary requirements in order to maintain increased Meals on Wheels clientele levels. By 2025, 9.5 million seniors will experience some form of hunger in their lives, which is a 75% increase from 2005 estimates. Eighty percent of current donations are received from private donors, while the vast majority of those involved with Meals on Wheels are volunteers who prepare and deliver meals, which currently comprise 2.2 million people. As the stand alone outreach program with no direct competition, Meals on Wheels must maintain current levels and accommodate this growing senior population in the next decade. Among minority groups, aging veterans, and decreases in social security benefits, the market needs of Meals on Wheels continue to be a sustaining an increasing donation base, as well as a larger pool of volunteers to accommodate the up rise in anticipated senior hunger.

2.1.3 Market Trends

The vision of Meals on Wheels wishes a hunger free senior population by 2020. However, as a charitable organization, Meals on Wheels unfortunately assumes that there will likely be a need for a service program to feed seniors who may not be able to financially feed themselves beyond 2020. Therefore, noted as a chief indicator of potential increases in senior hunger in the next decade, Meals on Wheels recognizes baby boomers represent a substantial future market of seniors who statistically are living longer than Meals on Wheels current client of seniors from the greatest generation (those born prior to the Depression). The inherent difficulties in soliciting donations and volunteers may ebb and flow with comparable employment and charitable giving rates of the greater population. Further adding to market trends, estimates from social security watchdog groups maintain the insolvency of social security by 2040, coupled with increasing poverty rates, will add more pressure to 90% of seniors who rely on social security benefits.

Market Forecast

2.1.4 Market Growth

The market for the services Meals on Wheels will offer is growing. The population of senior citizens grew 12% from the results of the 2010 Census and more senior citizens are staying at home in their later years. The senior citizen population grew another 15% from 2000 to 2010 because the beginning of the baby boomer generation is reaching senior citizen ages. In 2011, baby boomers reached the age of 65 and are just started to progress through their senior citizen years. As they progress through their life they will continue to need meals to sustain their quality of life and Meals on Wheels will be there to help them in those times of need. Todays families live very active and busy lifestyles in this growing world of technology and rarely have time to take care of a loved one. Most families have both parents working in the home and taking care of the elderly citizens is difficult. Meals on Wheels will help out busy families take care of their loved ones. Families will be able to pick out meal plans for their loved ones and be assured that they are getting the nutrition that they need. Meals on Wheels is here to make sure that no senior goes hungry. With the help of government grants and the backing a strong team of volunteers, Meals on Wheels can deliver on their promise.

Target Market Growth

2.2 SWOT Analysis

A SWOT analysis provides an organization a strategy formulation to better understand mission-supported areas of internal organizational strengths, as well as potential areas of weakness that Meals on Wheels must address. Thoughtful and honest presentation of the opportunities and possible threats to the organization are also examined.

Meals on Wheels enjoys a wide variety of strengths that will effectively ensure continued charitable services to hungry seniors. These strengths include: large corporate sponsorship, mandated federal subsidies, vast public support, and BBB charitable accreditation. As a charitable organization however, Meals on Wheels relies heavily on volunteer and charitable donation dependence, which must be addressed as an inherent weakness in order to maintain future client services. Meals on Wheels future opportunities include a larger pool of aging population, expansion of other vulnerable hunger groups, and cuts into personal social security payments for seniors. Although a charitable organization that widely enjoys positive support, threats to Meals on Wheels include economic budget cuts and lowering donation rates.

2.2.1 Strengths 1. Largest national meal provider for poor seniors. Supports approximately 5,000 feeding
programs in all 50 states and U.S. territories, feeding over 1 million homebound seniors each day.

2. Corporate Sponsorship. Charitable partnerships with deep pocketed organizations such as WalMart, Bank of America, Subaru of America and Bridgestone Tires, have collectively donated over $10.1 million dollars annually to the feeding of hungry senior citizens. Tax Free Status. Operating as a charitable organization, Meals On Wheels Association of America is a 501(c)(3) nonprofit organization recognized by the IRS which is exempt from paying federal taxes, thus, a higher percentage of donated funds received from donors go directly to feed hungry seniors. Federally subsidized. As a charitable organization, Meals on Wheels receives a portion of a Congressionally mandated $1.7 billion annual federal social services block grant issued from the United States Department of Health and Human Services (HHS). No direct competition. As a non-profit 501(c), Meals on Wheels has no inherent need for competition from similar agencies or local food for hungry establishments. Often cooperating and partnering with local food banks and other similar food for hungry programs. High Public Support. Enjoys widespread support and sponsorship from celebrities, politicians, and highly influential individuals. BBB accredited. Meets Better Business Bureau Wise Giving Alliance Standards for non-profit 501(c) charitable accountability.

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2.2.2 Weaknesses 1. Volunteer dependent. Meals on Wheels estimates between 800,000 to 1.7 million volunteers
provide senior assistance, meal preparers, and drivers whom deliver food to needy seniors. However economic fluctuations in unemployment rates and higher overall consumer prices may play a significant role in volunteerism rates. 2. Charitable dependent. In 2010, Meals on Wheels received over $4.4 million in private donor contributions. In order to maintain client services to feed hungry seniors, Meals on Wheels can only rely on generous donations made primarily from private donors. 3. Little advertising. No large-scale marketing budget or advertising campaign to elicit donations, volunteer efforts, or market the plight of 8.3 million hungry seniors.

2.2.3 Opportunities 1. Larger pool of aging clients. According to the U.S. Census Bureau, the 77 million Baby
Boomers (individuals born between 1946-1964), have begun to reach retirement age which may increase the likelihood of future food service provisions provided by Meals on Wheels. 2. Expanding vulnerable group participation. Meals for Moms, Veterans, and Children campaigns designed through Meals on Wheels research, these groups have been identified as most likely to be at risk of hunger. 3. Proposed social security cuts. Discussed and proposed social security budget cuts would substantially increase Meals on Wheels presence of those seniors who rely on this benefit. According to the Social Security Administration (SSA), the average retiree currently receives $1240 per month in social security benefits. If a cut of 3% is initiated in benefits, a poor senior may lose $37 in food purchasing power. 4. Seeks to end Senior hunger by 2020. By expanding participation with local food banks, other charitable organizations, and reaching out to new streams of volunteers and donors, Meals on Wheels envisions ending hunger for 8.3 million seniors by 2020.

2.2.4 Threats
1. Economic Budget Cuts. Bantered about in Congress seeking a solution, the nations debt currently stands at $16 trillion. In talks to reduce the debt, proposed cuts to social programs for the poor include cutting the $1.7 billion Social Services Block Grant from HHS. 2. Declining donation rates. Meals on Wheels competes for a tightening American donated dollar with other food for hungry non-profit 501 (c), such as Loaves and Fishes, Friendship Trays, and local food banks and homeless missions.

2.3 Competition
Meals on Wheels is a service provider that faces competition from other food delivery services and senior citizen homes. Meals on Wheels will position itself as the leader in the food delivery service business by offering services throughout the country. Meals on Wheels will become a common household name and be considered by everyone who has needs for food delivery services to elderly and homebound senior citizens. Meals on Wheels does not have any direct competitors that provide the same nutritious hot meal delivery service across the country. Although in select markets, the competition will have to be evaluated to verify if there is any direct competition for Meals on Wheels in the area. One of the indirect competitors for Meals on Wheels is Dine Wise an online frozen food based meal delivery program designed for busy families and people on the go, but can be used for homebound senior citizens. Dine Wise is considered a follower in the market for Meals on Wheels, because it does not provide the same home delivery service. In order for consumers to use Dine Wise, they must be able to access the Internet and pick the meals that they want. Most senior citizens do not have direct access to

the Internet or do not know how to properly navigate through websites to order meals. Therefore through the use of home delivery of hot, nutritious, customized meals, Meals on Wheels will be the leader in the market. Meals on Wheels has created a niche market by offering services to a targeted senior population. Senior citizens that are homebound due to age, illness or the inability to drive can use the services that Meals on Wheels offers. Senior centers offer hot meals, but also cost a lot more than the prices of meals from Meals on Wheels, which are low cost due to government subsidies. Most consumers of Meals on Wheels are on a fixed budget and cannot afford to move to a senior citizen home. Meals on Wheels fills that void of consumers not being able to live in a senior Citizen home due to cost and still provides nutritious meals to the elderly in their own homes at a small cost or free due to the government grants and subsidies.

2.4 Service Offering

Meals on Wheels will provide its seniors with full access to nutritious, ready-made meals with door-todoor delivery. People can order meals through phone or Internet 7 days in advance. Meals on Wheels will mail monthly newsletter with menu. Each meal will be prepared according to individuals needs with vegetarian and diabetic packages. People will be ordering through touch-tone phone ordering system for those who are not frequent Internet users. For those who use Internet frequently or have difficulty hearing, Meals on Wheels will provide website for them to order online. There will be Customer service representatives answering phone calls for those who want to cancel the meals or have not received their meals yet. Home delivery and easy to order services are available to Meals on Wheels clients are listed below:

Meals include assorted breakfast cereals and breads, milk and juice Main dish includes hot entre and sides for lunch with salad and dessert. A ready-made meal (not frozen foods, no heating required) Volunteer drivers will deliver meals with daily visits offering friendly greetings and dependable, reliable contact. Customers can sign up for Meals on Wheels personal account. This account will be used for people to choose what kind of meals they want, to build their personal diet preference, or to pick any meals from the monthly menu. Delivery time will be from 11am to 1:00pm, five days a week.

Meals on Wheels allow clients the dignity and comfort of remaining self-sufficient at their own homes. Also, Meals on Wheels will also provide monthly lectures about how to eat healthy and diabetes issues. People who are the Meals on Wheels clients are encouraged to attend these lectures at no cost. These classes will be held in the afternoon and late in the evening. By providing these classes, Meals on wheels will build a personal connection and relationship with clients getting familiar with its services. Meals on Wheels will provide many opportunities for people who want to become a volunteer serving seniors and other people in need. In addition, Meals on Wheels will also provide free access to community activities and recognition awards for the volunteers.

2.5 Keys to Success

The keys to the success for Meals on Wheels (Meals on Wheels) are to: Build a larger capacity of external awareness of the Meals on Wheels program, through website, email, and multi-media technological advances in order to widely disseminate needed information regarding hungry seniors.

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 Maintain a lean, dedicated, and productive network of available volunteers and GPS equipped serviceable vehicles that are available at short notice. Sustain two-way communication channels among congressional leaders of both political parties in Washington DC, as well as local representatives in each state for the purposes of maintaining both federal and state funding, as well as protected 501(c) status. Increase annual private donations percentages each year while ensuring administrative costs are kept to a minimum. Maximize restaurant and grocery outlet corporate sponsorship by providing not only needed funds, but free or reduced meals to seniors.

2.6 Critical Issues

The risks involved for Meals on Wheels (Meals on Wheels) are: Will the demand for senior hunger rise while donations to Meals on Wheels decrease? Will the fluctuation in volunteer rates for Meals on Wheels increase and decrease concurrently with the U.S. unemployment rate? Will funding from federal and state agencies be cut in order to address budget deficits? Will administrative, food, fuel, and operating costs rise during economic downturns? How much of the future American donation dollar is being swayed by other charitable organizations offering similar services? Will corporate sponsorship fade with economic downturns in employment and lowered profit margins?

2.7 Macro Environment

With 2,000 volunteers MOW is one of the largest charitable community organization that serve homebound seniors. Most volunteers donate 2 to 4 hours a week to prepare for meals at most senior centers and to deliver meals by using their own vehicles. Some staff members serve as customers representative to answer phone calls and other specific task. A number of business also participate through Make it your day which allows interested employees to become volunteers to deliver meals during their lunch hours. The popularity of the meal delivery is growing exponentially. Those volunteers who are familiar with the meal delivery service are well aware of how fun and rewarding this can be. By providing nutritional meals and friendship support, MOW can improve the health, independence, dignity and well-being of our elderly and disabled citizens, and to enhances the quality of life for the entire community.

3.0 Marketing Strategy

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Meals on Wheels has four main strategies. The first strategy focuses on attracting homebound seniors receiving social security benefits. By advertising through senior apartment and retirement community, Meals on Wheels will ensure that they will provide a friendly delivery to these seniors. Meals on Wheels hopes to get a loyal client base that desperately needs this service in order to continually receiving grant from the federal and state government. The second and most important strategy focuses on recruiting more volunteers to help with Meals on Wheels organization. The target volunteers include drivers and deliverers. The places to market Meals on Wheels includes community college, high school, community fair, government agency and adult school. Also, drivers and deliverers must be reliable and friendly to serve as community ambassadors. This group of volunteers serves an important function at Meals on Wheels. Without these volunteer serving attitude, Meals on Wheels will be unable to function well. The third strategy focuses on expanding participation with local food banks, other charitable organizations, and reaching out to new streams of volunteers and donors. By 2020, Meals on Wheels anticipates ending hunger for 8.3 million seniors from expanding charitable participation. The fourth strategy will be actively reaching out for private donations through Meals on Wheels campaign and also proposing more grants from the government. There will be data analysis and survey numbers pulled out from the senior population as well as from vulnerable low income groups receiving social security program as supported documents. According to the Social Security Administration (SSA), the average retiree currently receives $1240 per month in social security benefits. If a cut of 3% is initiated in benefits, a poor senior may lose $37 in food purchasing power. Without financial support from the donors and government consistently, it will be hard to make the best service to the seniors clients.

3.1 Mission
Meals on Wheels mission is to provide national leadership to end senior hunger. Meals on Wheels is a company dedicated to providing delicious and nutritious meals to elderly citizens of the community throughout all 50 states of the country. Through the use of government funding and a dedicated team of volunteers, Meals on Wheels provides thousands of meals each day to senior citizens that may otherwise go hungry. Everything that Meals on Wheels performs in its business is based on ending senior hunger. From the volunteers that dedicate their time making and delivering meals to the office workers receiving grants from the government, each area is dedicated to ending senior hunger. By focusing on the mission of ending senior hunger, Meals on Wheels has been able to recruit volunteers that support our mission and are dedicated to helping senior citizens in their own communities. With this mission in mind throughout every process at Meals on Wheels, we hope to end senior hunger by the year 2020. If you think you can, you will. We can and we will end senior hunger.

3.2 Marketing Objectives

Meals on Wheels marketing objectives for the next two years of operation include:

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Providing healthy, delicious and nutritious meals especially for low-income seniors in affordable prices and with on-time delivery five days a week. Design less cholesterol, less fat and less sodium diets approved by registered dietician. Offer a variety of meals choices including vegetarian, diabetic and special made meals designed for individual needs. Expand reach to more volunteers and donors willing to contribute to Meals on Wheels program, to end hunger for 8.3 million seniors by 2020. Implement quick order system and easy to choose menu for seniors where customers are able to call from home or order online for time efficiency, Advertise Meals on Wheels program to community and senior facilities to recruit more volunteers for senior assistance, meal preparers, and drivers.

3.3 Financial Objectives

The goal of this marketing plan is to outline the marketing strategies, tactics, and programs that will make the vision outlined in the Meals on Wheels plan a reality in the year 2012. The vision outlined in the business plan including federal grant and donation of roughly $85,000 in the next two years with that figure increasing 20% annually.

3.4 Target Marketing

Meals on Wheels intends to deliver both to low income and homebound seniors who want a healthy, nutritious meal that fits their needs. Furthermore, Meals on Wheels will be serving seniors living alone, unable to prepare nutritious meals or obtain meals from another source, as well as those who have some physical impairment or disabilities that limit their ability to drive. Another new target market for Meals on Wheels is minority populations who have limited resources or income to provide for families and children. Therefore, Meals on Wheels marketing team will be advertising through the newspaper, Internet (such as Facebook), or community health fairs to spread the words. Our primary target markets include:

Seniors. The large senior population is an important part of the Meals on Wheels targeting base.

The senior citizen populations continues to grow with 77 million Baby Boomers reaching retirement age, and are likely to need future food service provisions provided by Meal on Wheels. Homebound seniors with low income, or senior citizens who have physical injuries that are not able to drive and living alone are the most needed.

People with physical disabilities. People with physical disabilities that are unable to drive or
walk. Meals on Wheels volunteers can deliver meals to their door with nice greeting and assistance.

Minority population with low income. The minority population is growing rapidly especially in

California, and there many underprivileged families who have limited resources and income, will be our targeted population.

Patients or children with diabetes and other health issues with diet restriction. It is important
to keep body healthy with nutritious meals; people nowadays with busy life are easily to develop diabetes, even childrens meals have too much sugar in it. Meals on Wheels goal is to bring

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healthy meals to those people and children to improve their daily diet intake, also registered dietician and nurses will keep track of those peoples diet improvement with their doctor.

3.5 Positioning
Meals on Wheels will position itself as a charity based non-profit organization sponsored by the federal and state government, as well as from community donation and volunteers participation. Senior people and other targeted group will use Meals on Wheels as a way to get healthy meals without worrying about taking transportation or asking people to shop for them. In addition, Meals on Wheels will provide any kinds of meals adjustment upon request, or with doctors note for patients diet restriction. Also, Meals on Wheels will be a place and an opportunity for students, retired people, or housewife becoming volunteers to serve the community. It is a good place for volunteers to give their passion back to people who need assistance. This program especially is designed to let seniors know that they are not alone, that people from the community care about them, giving any health and emotional support they need. The power of delivery and caring will help building the relationship between seniors and the people around the community.

3.6 Strategy Pyramids

The following are the three key strategies that Meals on Wheels will focus on: Meals on Wheelss first strategy focuses on attracting senior citizens to the program. The bottom pyramid on attracting these seniors by:

Providing nutritious portion of hot meals. A registered dietician will approve meals. Meals on Wheels will be staffed by trained volunteers and health care consultants to focus on serving the seniors citizen needs. Advertising through printed media in AARP and other publications for seniors Offering free events and workshops for senior clients through the city. These free events will be designed to help seniors to socialize and meet new friends, and workshops will be lecturing on health issues and other interesting topic for seniors to enjoy, such as traveling, photography...etc. Targeting through oldie radio music channels and news programs.

Meals on Wheelss second strategy will be focused on attracting volunteers who will provide an important function for Meals on Wheels. Without volunteers participation, Meals on Wheels will not be able to provide the best service to the senior consumers.

Providing free access to community activities and recognition awards for the volunteers. Recruiting volunteers through IMC, such as sending flyers through high schools, community college, or community fair events. Or community newsletter, newspapers, as well as word-of mouth...etc Providing well-trained staff to assist volunteers in taking care seniors and delivering meals.

Meals on Wheelss third strategy focuses on actively seeking for private donations through the Meals on Wheels campaign. Meals on Wheels will also propose more grants from the government. There will be data analysis and survey numbers pulled out from the senior population as well as from vulnerable low income groups receiving social security program as supported documents. Without financial support from the donors and government grant consistently, it will be hard to make the best service to the senior consumers.

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3.7 Marketing Mix

Meals on Wheels marketing efforts will focus on building a wide distribution of charitable donors in order to feed senior citizens struggling with hunger due to lack of sustained financial or family support.

3.7.1 Services and Service Marketing

As Meals on Wheels continues to grow at an exponential rate, easy and affordable access to the daily meals is quickly becoming a necessity of life. Meals on Wheels provides the opportunity for seniors to get connected with the community and with volunteers. It has a positive impact on both the receptors and givers. Seniors will enjoy the healthy meals made by the volunteers; in return, volunteers will feel rewarded for serving. Meals on Wheels will create an environment where their volunteer drivers, kitchen preparers and deliverers will be happy to work as a team. Therefore, people of all ages and cultural backgrounds will be delighted to support Meals on Wheels and continually ordering meals through this organization

3.7.2 Pricing
As the stand alone charitable market leader for feeding seniors, and to maintain its current and compassionate mission to end senior hunger, MOW does not have any direct pricing associated with servicing its clientele. Additionally, determining a fair market price per meal is unwarranted because of MOWs status as a charitable non-profit 501(c) organization, which receives more than 80% of its funding from private donations, which may see charging hungry seniors for meals as an unkind gesture. With no direct competition, a hypothetical baseline minimum price range cannot be assessed. However, according to data from the United States Department of Agriculture (USDA), the minimum, typical food price for an individual between 51-70 years of age is $36.30 per week, or $5.18 per day. This total falls slightly for those seniors over 70 years of age. The reliance among donations and volunteers to prepare and deliver meals is paramount. As a charitable organization, MOW prides itself with feeding seniors who otherwise may go hungry on a given day, and will never transfer the cost to a hungry senior citizen.

3.7.3 Promotion
Meals on Wheels, in 2009 received over $6 million in private contributions and governmental grants, and expended $3.6 million in senior services and management operations of the organization. Less than 3% of the total annual revenue budget of MOW was utilized in marketing efforts, and will continue to maintain that low amount. Meals on Wheels relies heavily on three pillars of promotion: historical precedent as the leader in providing hungry seniors with meals at no-cost, Word of Mouth (WOM) advertising, and widespread public knowledge/support for its cause to end senior hunger. In order to maintain these charitable efforts, MOW supports a write-in and public rally/awareness campaign to lobby members of Congress to maintain or raise existing Social Security Benefits for seniors and increase grant funding. A few Specific Marketing Efforts: Targeted local TV spots in high density and low cost areas

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Targeted print media in magazines and other publications for seniors Local Newspaper announcements in targeted areas Targeted radio spots on older music listening channels and news programs MOW awareness Community Walk-through in targeted cities and rural areas Meals on Wheels Food Drive during start-up of local center and during the holiday times when more food is needed to reach out to more seniors 2-Day Investor tour and help session to let investors learn about the charity and volunteer a day to help seniors in need Eat & Learn events throughout the year, which provides information about senior health care and nutrition State-of-the-Art website will be implemented to provide seniors with up-to-date information and adjustments to meals and to provide an education to investors and community volunteers. Meals on Wheels volunteers will be challenged in preparing, delivering and communicating with customers and will be rewarded with a free meal for their hard work and dedication. Attending career events at local community colleges to recruit volunteers in the community Establish relationship with local stores that provide free services or items to senior participating in local Meals on Wheels program. Example, 7-Eleven providing free coffee to seniors.

Meals on Wheels will also ask for reduced advertising rates, and partner with local and national TV stations for free Public Service Announcements (PSA), on the plight of hungry senior citizens in the United States.

3.7.4 Service
Meals on Wheels is a service business that is dedicated to making sure that no senior citizen goes hungry. The success of Meals on Wheels is based on the quality of service we offer and the commitment that we make to our customers. Without our customers, Meals on Wheels is not a business and we strive to make sure that each customer that we serve is treated like a guest in our own home. Dedicated to Quality Service Programs:

Meals on Wheels works with a team of volunteers that are dedicated and committed to the business and philanthropy of our business. Each volunteer will be rotated through each position so they can understand the business as a whole and not just a part. By understanding the business as a whole, volunteers can talk candidly and professionally about the Meals on Wheels program to people that they meet. This will help increase awareness of our program and will help the quality, as volunteers will understand the business thoroughly at each process. Meals on Wheels will operate a customer assistance telephone line for customers. This will allow customers to call in with any concerns that they may have. Each concern will be recorded and a

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customer service representative will be tasked with researching the concern, investigating where the problem may lie, implementing a countermeasure to make sure the concern will not happen again and then finally following up with the customer once again to let them know their concern has been taken care of. Meals on Wheels will evaluate the satisfaction of each customer through the use of a survey. Each meal that is delivered to a customer will contain a survey. This survey will allow the consumer to effectively grade the quality, presentation and politeness of the food and staff that waited on the customer. Results will be tallied and improvements will be made where needed, once again increasing the quality of the service that is provided by Meals on Wheels.

With these three Quality Service Programs in place, Meals on Wheels can be sure that they are providing the right, quality and service that the customers expect.

3.7.5 Business Facilities

Meals on Wheels will be located in Orange County, California in the city of Orange. Orange is centrally located in Orange County and will allow Meals on Wheels direct access to all of the senior citizens that need our services. Surrounding areas include Santa Ana, Westminster and Atwood where lower incomes for the county are seen and seniors are in the most need will be. Our facility will be located in the industrial district of Orange. Our facility will be a warehouse that is roughly 3,000 square feet. This building will be transformed into three different sections. One will be a warehouse to store donations and food supplies. Two will be the kitchen area, which will be a fully functioning kitchen to prepare meals and food for the meals that need to be delivered. In the kitchen area will also be a large walk-in freezer that will allow meals to be prepared in advance and then frozen until needed. All meals will be prepared at this facility, if demand increases more time will be allocated to the preparation and preserving of meals in the freezer. Third, will be the office location where website development and clerical positions will be located. Volunteers will report to this facility during the hours of 6 AM to 8PM. During these hours of operation, meals will prepared and delivered three times a day to the seniors who need our services by our volunteer staff. During our hours of operation we will have 2 shifts for volunteers. The first shift will be from 6 AM to 1 PM and the second shift will be from 12 PM to 8 PM. This will allow for a one-hour overlap to help transition from shift to shifts. Volunteers will use our transportation vehicles to deliver meals, which will include two Ford Econoline Vans. These vehicles will be stored and maintained at the warehouse facility.

3.8 Marketing Research

In 2011, the U.S. Census posted the result from the 2010 Census survey results. Meals on Wheels will continuously review the information provided by the U.S. Census to evaluate the market that we operate in. The U.S. Census provides key data for the target market of senior citizens and outlooks on where the senior citizen population is headed. This information is crucial to establish for the success and growth of Meals on Wheels. In addition to the results of the U.S. Census, Meals on Wheels will perform their own marketing research to find the competition, pricing and audience that are in the market area. This research will be conducted on an annual basis and will be performed through the use of internal and external associates. Surveys, focus groups and market studies will be performed to find out key consumer preferences such as pricing,

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meal requirements and tastes and service availability. Information collected from the research will be used to establish pricing, services, marketing, advertising and growth of Meals on Wheels.

4.0 Financials, Budgets, and Forecasts

The marketing plan is built on these truths: 1. The marketing budget is based on a percentage of seniors and other targeted consumers needs. 2. Building a strong financial connection and clients loyalty is critical to the success of MOW. 3. Marketing is a critical component of the MOW charitable plan. MOW provides consumers not able to live in a senior citizen home due to cost and still provides nutritious meals to the elderly in their own homes at a small cost or free due to the government grants and subsidies. 4. Our understanding for seniors need for strong bounding with low cost delivered meals gives MOW a positive outlook on the future forecasting budgets over other potential competitors delivery services in the United States

4.1 Break-even Analysis

As a non-profit 501(c), Meals on Wheels operates as an industry leader that provides services to clients free of charge, and therefore does not maintain a mission based on profit or supporting gross margins. However, included as analysis, MOWs variable (operating) costs, such as administrative, insurance, and fundraising are equal to roughly 58% of per-total unit of revenue. It is our hope that as we move into the future and continue to build relationships with contributors, this value will decrease further, approaching a value of 20%. Monthly (program) fixed costs for MOW equal approximately $11,000. Fixed costs include: meal costs, kitchen supplies, vehicle transportation and other costs MOW must maintain on a monthly basis. These costs are generally fixed and aren't impacted by an increase or a decrease in public contributions. Currently, MOW will break even at 1,084 units (meals) per month.

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Break-even Analysis

Monthly Units Break-even Monthly Revenue Break-even Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost

1,084 $10,840

$8.00 $2.00 $8,672

4.2 Revenue Forecast

Revenues for the MOW first year of operation are based on an almost 5% growth rate from month to month. This is an annual estimate and we feel that our strong emphasis on marketing to funding raising and private donations will have positive results. Annually, beyond the first year of operations, we're predicting a growth rate of roughly 20%. It is our hope that as we move into the future and continue to build relationships with contributors, this value will increase further, approaching a value of 40%. We'll have a better idea of potential growth rate beyond year one as we make our way through our first year. The plan will be updated as we receive more information.

Revenue Forecast

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Revenue Forecast
Other Recipient Donations Government Grant Fundraising Individual Donations Total Revenue 4.3 Expense Forecast
The annual marketing budget will equal approximately 10% of total revenue (contributions) received per year, maxing out at $20,000 a year starting in the 4th year of operation. One of our strongest strengths is being a market leader and having widespread public support and loyalty. These valuable assets allows MOW to maintain a small marketing budget, while ensuring the bulk of the contributions continue to flow within the operating cost of feeding hungry seniors. Currently, the marketing budget beyond year one remains at 10% or below of revenue. It is our hope to maintain or decrease this amount should broader public support and administrative efficiencies of scale allow us to do so. Explanation of Major Marketing Expenses:

2013 1,000 10,000 20,255

2014 2,100 15,000 25,280

2015 2,500 16,000 27,908

2016 2,800 17,000 28,199

2017 3,000 18,800 30,219

54,777

60,255

66,280

72,908

80,199

58,000 144,032

69,600 172,235

83,520 196,208

100,224 221,131

120,269 252,487

National TV spots... Although not our main marketing focus, by expanding into national TV advertising, we will ask the National Association of Broadcasters (NAB), which distributes monthly 30 seconds of free TV advertising, to depict (in a PSA) the plight of hungry seniors and how the public can help. We will elicit the assistance of volunteers to supply ad content. Because of the cost of regular TV ads, if MOW cannot secure free PSAs, we will not enlist the marketing efforts of regular TV advertising. Print Materials... Print materials always require a significant budget. They include: brochures, direct mailers, magazines ads, and anything else that may fit into this category. Local Newspapers... An important part of our marketing efforts in reaching out to those seniors who may not have other means of communication. Newspapers ads will give us a two-fold vehicle for consistently getting our message/brand in front of a large number of potential customers and volunteers. Additionally, ads in the first few pages of the newspaper will provide

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us with a means for communicating with our contributors. Print media is expensive, and represents the largest percentage of our marketing budget. Local Radio Spots... Along with TV, the NAB also funds 30 second PSA spots on the radio. Therefore, MOW will ask the NAB to fund radio ads targeting both seniors who may need our help, and those donors/volunteers wishing to contribute. (Other) Meals on Wheels Events... This will include local radio events in low-cost, senior citizen areas of a city where radio stations broadcast from the MOW tent offering information, monetary donation capabilities, and counseling services to customers requiring such assistance. Meals on Wheels will also run educational programs and community events throughout the year. Based on availability and site rental rates, MOW tent events may incur significant costs as well. (Other) Website Support: In an attempt to cast a wide net in attracting as many hungry seniors and contributors/volunteers as possible, MOW will maintain a state-of-the-art, easy to access website. This website will be dedicated in disseminating social media information and point of contact access. Costs associated with maintaining this site, along with social networking capabilities also has a substantial burden on the marketing budget of MOW.

Marketing Expense Budget

Marketing Expense Budget

2013 Newspaper (60%) Print Materials (20%) Other $8,400 2014 $10,200 2015 $11,400 2016 $12,000 2017 $12,000

$2,800 $2,800

$3,400 $3,400

$3,800 $3,800

$4,000 $4,000

$4,000 $4,000

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(20%) Total Marketing Expenses Percent of Costs

$14,000 9.70%

$17,000 9.87%

$19,000 9.68%

$20,000 9.04%

$20,000 7.92%

4.4 Linking Sales and Expenses to Strategy

Our marketing expenses are tied directly to the revenue that Meals on Wheels generates through government grants, individual/company donations and fundraising activities. As revenue increases, the marketing expenses will increase. Currently our marketing expenses equal roughly 5% of sales, and we hope to increase that value in the future. The marketing programs that will be implemented are to create awareness and support for the Meals on Wheels program. Meals on Wheels is based on volunteers and donation providers either through work, money or food donations. Our marketing programs that are implemented will help to generate more revenue for the program so we can continue to stay in business and take care of more senior citizens that are unable to provide their own meals. Remember our mission is to make sure that no senior goes hungry and we can make sure that everyone understands our mission and what we do through the use of marketing. As we implement new marketing programs we will check for effectiveness and adjust our programs as needed. In the beginning, to get things started we will start with local print ads and radio spots along with a food drive to build inventory for the business. As senior citizens start joining the Meals of Wheels program, we will ask where they heard of the business to check effectiveness of ads. Also, we will make sure to ask where volunteers and food drive contributors heard of the program to make sure that we continue to invest in those medias that are most effective.

Revenue vs. Expenses

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4.5 Contribution Margin

The Contribution Margin chart and table presents a strong use of the revenue that Meals on Wheels generates. A small contribution margin means that Meals on Wheels is effectively using the funds that are provided through government grants and donations from both individuals and businesses for the meals, services and fixed costs that they have. If the contribution margin increases, excess funds will be directed to a savings account for a rainy day. 1. 2. 3. 4. Revenue generation increases on average 20% from year to year Cost of services increases 5% per year Food, service and fixed costs continue to use up the majority of the revenue generated The marketing budget is close to 10% for the first few years of opening to make sure that consumers know of Meals on Wheels and their mission. 5. The marketing budget will max out at $20,000 in the 4th year of operation and continue to stay around this price moving forward. 6. A strong focus on local newspaper is apparent in the expense breakdown.

Contribution Margin Forecast

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Contribution Margin Contribution Margin 2013 Revenue Direct Cost of Service Other Variable Costs of Service Total Cost of Service Gross Margin Gross Margin % Marketing Expense Budget Newspaper Print Materials Other Total Marketing Expenses Percent of Revenue $144,032 $104,064 $26,016 -----------$130,080 $13,952 9.68% 2013 $8,400 $2,800 $2,800 -----------$14,000 10.07% 2014 $172,235 $109,267 $27,316 -----------$136,583 $35,651 20.69% 2014 $10,200 $3,400 $3,400 -----------$17,000 9.87% 2015 $196,208 $114,730 $28,681 -----------$143,411 $52,796 26.90% 2015 $11,400 $3,800 $3,800 -----------$19,000 9.68% 2016 $221,131 $120,466 $30,115 -----------$150,581 $70,549 31.90% 2016 $12,000 $4,000 $4,000 -----------$20,000 9.04% 2017 $252,487 $126,489 $31,620 -----------$158,109 $94,378 37.37% 2017 $12,000 $4,000 $4,000 -----------$20,000 7.90%

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Contribution Margin Contribution Margin / Revenue 5.0 Controls

-$48 -0.03%

$18,651 10.82%

$33,796 17.22%

$50,549 22.85%

$74,378 29.45%

The goal of this marketing plan is to outline the strategies, tactics, and programs that will make the goals outlined in the MOW charity plan a reality in the year of 2012. We have these marketing obstacles to face:

Social security budget cut that affects the need for more financial support and rely on private donation, client sponsorship, and fundraising events, in order to maintain high quality nutritious meals for our senior clients. The establishment and more marketing for MOW as a community server for senior and volunteers socialization. The competition with other home delivery for-profit service. The strategies that differentiate and stand out from other competitors in order to provide low-cost meals for our seniors and other individual with special needs.

Our marketing efforts will be focused on building the image outlined above. We have goals to meet and marketing plan outlining in detail. It will be critical to use this marketing plan for MOW as living/working documents. They must be used as an objective for the future success of MOW.

5.1 Implementation Milestones

The milestones chart below outlines key dates that our organization must meet. The milestones listed in the table below outline key advertising, promotion, direct marketing and development projects that will help people learn more about our business and help us learn about our customers. Each key project has a start and end date listed along with a project manager for each event that will be in charge of overseeing the project from start to finish. Each project is crucial to the success of Meals on Wheels. Meals on Wheels will review the milestones each quarter to see if each project is on track and to check the results from each completed project. This will allow us to determine which projects were the most successful and which projects we should continue to use in the future of the business.

Milestones Milestones Direct Marketing Food Drive Event Community Walk Through Event Start Date 7/15/2012 8/1/2012 End Date 7/30/2012 8/2/2012 Budget $150 $100 Manager Department Chris Promotions Chris Promotions

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Investor Tour Total Direct Marketing Budget Advertising TV Ad Creative from NAB Radio Spot 1 Creative Radio Spot 2 Creative Newspaper Ad 1 Creative Newspaper Ad 2 Creative Newspaper Ad 3 Creative Newspaper Ad 4 Creative Senior Living Magazine Ad Other Total Advertising Budget Customer Satisfaction Customer Satisfaction Rep Customer Survey Other Total Customer Satisfaction Budget Web & Phone Development Meals on Wheels Website 800 Hotline Other Total Web & Phone Development Budget Other

10/15/2012 10/16/2012

$250 $500

Chris Promotions

Start Date 7/1/2012 7/15/2012 7/1/2012

End Date 7/15/2012 7/30/2012 7/15/2012

Budget $0 $750 $750 $1,250 $1,250 $1,250 $1,250 $1,000 $1,000 $8,500

Manager Department Marley Marley Marley Marley Marley Marley Marley Marley Marley Marketing Marketing Marketing Marketing Marketing Marketing Marketing Marketing Marketing

12/1/2012 12/15/2012 11/10/2012 11/20/2012 12/1/2012 12/15/2012 3/15/2013 3/31/2013 12/1/2012 12/31/2012

Start Date 7/15/2012 8/1/2012

End Date 8/15/2012 9/1/2012

Budget $1,000 $500 $250 $1,750

Manager Department Joyce Joyce Joyce Customer Satisfaction Customer Satisfaction Customer Satisfaction

Start Date 7/15/2012 7/1/2012

End Date 1/31/2012 1/31/2012

Budget $250 $250 $250 $750

Manager Department Daniel Daniel Daniel IT IT IT

Start Date

End Date

Budget

Manager Department

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Other Total Other Budget Totals 5.2 Marketing Organization The current national Vice-President of Marketing, Marley Rave, holds a BS degree in marketing and communications, and will head our marketing efforts. Further marketing assistance will be provided by the Department of Business Development, who will coordinate and collaborate promotional proposals from Marketing among various outside businesses and organizations. Also included as part of our marketing organization is the Manager of Individual Giving, who shall oversee regional districts advertising campaigns and set up targeted tent events, to attract both seniors and donors. An integral member of our marketing organization will be our Producer of Multimedia Services, who will create updated (clientele/donor) marketing brochures, mailings, print media, and PSA senior hunger awareness television and radio spots. All members of this marketing strategy team will report and coordinate their efforts through our VP of Marketing. 5.3 Contingency Planning Although this plan was written with marketing successes in mind, problems may arise in which unforeseen events may play a factor in its outcome. Issues outside our SWOT analysis may arise in which we have to be pro-active in the unlikely event that our projections contained within this plan are unrealized. We also have to prepare ourselves for both contingencies of excessive success as well as potential setbacks. The following are some possible scenarios: Donations exceed projections - A strong increase in revenues through private and corporate donation rates over projections will give us an opportunity to increase our marketing budget above the allocated 10%. We'll be able expand into regular TV advertising spots, increase social media outlets, and establish a toll free 1-800 hotline for those seniors needing immediate food assistance, or for those wishing to find more information on how to help. Revenues miss projections- With large numbers of working adults struggling to find work and meeting their own household obligations coupled within our nations current economic circumstance, the threat of missing our projection is a distinct possibility. As a non-profit, chiefly relying on contributions and volunteers, we may have to consider re-doubling our marketing efforts. With decreased funds, this calculation however may entail a larger role for our dedicated cadre of volunteers, who may have to sacrifice more time and energy in relaying our message and mission, with less funds. Corporate sponsorship has been a vital aspect in MOW success. Along with asking our volunteers to increase their efforts, we may have to ask for increased donation percentages from corporate America, as well as cost saving measures within our own internal organizational workforce. $1,000 $12,500

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Substantial increase in our clientele base- Although we may reach our targeted projections for revenue, relying on government statistics however, we may have underestimated the actual need for senior food assistance. Estimates of 8 million hungry seniors may have been underreported, and the fact that our marketing efforts are actually working, may cause more hungry seniors to seek our help, above our revenue projection needed to sustain the earlier projected number of hungry seniors.

References
Meals on Wheels. (2012). About Us. Retrieved May 27, 2012, from Meals on Wheels: http://www.mowaa.org/page.aspx?pid=212 U.S. Census Bureau. (2010). Profile of General Population and Housing Characteristics. Retrieved March 16, 2012, from U.S. Census Bureau: http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml? pid=DEC_10_DP_DPDP1&prodType=table

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