Branding in the nonprofit sector: The case of a nonprofit organization in Gauteng

Abstract

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.