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Ref No: 1777

“Marketing Project; Non profit organization”

Chapter 2: Literature Review

Marketing Project:The demand for increasing funds for non-profit along with increasing competition can produce limitations that can divert the organisations from their original purpose. Therefore, being self-sustainable is essentially for non-profits to not only survive but to also fulfil their mission. Therefore, M25 also introduced products in the market that will help in earning the money needed to fulfil organisations mission. However, M25 is not a first charity organisation to earn revenue through selling commercial goods, in past other organisations have attempted at earning revenue through selling commercial goods.  According to Joan Flanagan, as stated by Andy Robinson, “Medieval churches made money by selling ales brewed in the church house and renting out vestments to other churches for funerals and festivals” (Robinson, 2002). Therefore, non-profits have been attempting to earn revenue and generate money through sales for as long as they have existed in whatever different forms they exist.

According to a report published in the Grantsmanship Center Magazine in 1999 the “fee income is now the fastest growing source of revenue for non-profits in the United States and the United Kingdom” (Robinson, 2002). Non- profits earn to become sustainable through different mediums, ranging from arranging performance and earning money through ticket sales, to selling consumer goods. Another example of non-profit selling product for earning money is Magazine, Mother Jones which is published by the non-profit foundation for National Progress) and they rely on to earn money from the subscription fee. Moreover, according to an urban institute report, which was cited by Edward Skloot, around 15% of non-profits in the United States sell consumer goods that account for less than 5% of their income (Robinson, 2002). Another more famous and extremely successful example of non-profit earning money through sales of consumer goods is when Girl Scout Volunteers sold an estimated 250 million boxes of cookies, and it was used for personal and professional development of the girls (Robinson, 2002).

Several non-profits throughout the world, especially in the United States and the United Kingdom, have become self-sustainable with the help of sales of commercial goods, or services that can help them earn finances for funding their costs. Some organisations charge a percent of the costs of their fee to survive, some organise events and raise money through tickets, and some plan a long-term solution to financing shortages and introduce products and services that will earn money, for example, magazine subscriptions. Similarly, M25’s goal is to introduce Rough to Smooth skin care products, to specific target market-Hotels and earn revenue for their non-profit. This will help the organisation in resolving issues of funding shortage and also help them deliver their message to consumers who will purchase the products. Since M25 is introducing skincare products, which is already a competitive market, following paragraph will present a short analysis of UK hotel market and how successful M25s product can be in the market in comparison to the already existing products…..