break even analysis

Marketing Plan for White Mountain House of Hope

Proposed by: Susan Pinney

Submitted to: Reed Pendelton

October 10, 2014

Table

Executive Summary

Company Description

The White Mountain House of Hope is a non-profit 501(c) 3 corporation providing transitional housing for up to two years for women and their children who are victims of domestic abuse. This organization will focus primarily on women who reside in Apache and Navajo Counties, on the White Mountain Apache Reservation, Hopi Reservation, and Navajo Reservation. Services provided will include individual case management, domestic violence education, alcohol and drug counseling, life skills training, independent living classes, and victim advocacy. Residents will also be provided resources for vocational training, parenting classes, alcohol and drug rehabilitation, permanent housing placements, and counseling services. After completing the program, staff will perform follow-up phone calls and visits for up to two years in order to provide continued support and assistance.

The board members for the organization shall be limited to community members from both counties and the reservations. The board members of the organization shall be selected on the basis of residency and ability to be a committed member of the team. Within the organization, certain other officials will also carry out their activities. Officials within the organization will include executive director, social worker, advocate supervisor, advocates, security, and maintenance.

Strategic Focus and Plan

The organization has identified the problem for the people living in Apache and Navajo counties. In these counties, there are issues regarding domestic violence and the people suffering from domestic violence need a safe place to stay as well as support and education.. The strategy adopted by this organization is to ensure that homes are provided to victims of domestic violence and their children in order to provide the ability to work towards a life of self-sufficiency free of violence. The organization has identified that there are only few shelters for women suffering from domestic violence and they carry a maximum stay of 90 days. This organization recognizes that this is not a sufficient amount of time necessary to heal, establish goals, secure employment, and accumulate finances sufficient for independence.

During 2013, the only domestic violence shelter in the area, with 27 beds, provided services for 284 women. This number does not include the children. The organizational strategic focus is to improve the condition of life for these women and their children to a greater level of satisfaction and safety. Without a chance to become independent and self-sufficient, the victims of domestic violence frequently return to their abuser after their stay at the shelter comes to an end. Those who succeed in finding employment and housing fail within three months and return to their violent situations. This is part of the domestic violence cycle: victims return to the abuser due to the inability to sustain life on their own.

The organization will provide safe and clean housing for victims and their children support in the form of education in domestic violence and life skills training, advocacy and support, case management, and resources within the community.

The organization has come up with a particular plan for achievement of its targets regarding protection of women suffering from domestic violence (Sandhusen, 2000). The organization will work with other community agencies in order to screen victims based on referrals from these agencies. The organization is a nonprofit organization, therefore there will be a charge of 30% of net income from each resident in order to supplement funding and grants used to facilitate housing and other needs.

Mission Statement

White Mountain House of Hope’s mission is to provide the women of Navajo and Apache Counties, the White Mountain Apache Tribe, the Hopi Indian Tribe and the Navajo Nation a safe environment for healing and empowerment towards independency and self-sufficiency while remaining free from violence.

Vision Statement

It is our vison to break the cycle of violence by providing advocacy and support, education, and intervention. Furthermore the agency will work for social change within our community and institutions in order to change those attitudes which foster and perpetuate violence.

Goals

Marketing Goals

WMHH will require the use of two marketing goals:

1) Provide awareness to the individuals, those that would benefit from the services offered, as well as community members who will assist in the referral process and provide funding for the housing program.

2) WMHH will collaborate with social service providers within the defined regions who provide services for domestic violence victims in order to facilitate referrals. WMHH will develop and maintain relationships with these organizations by offering tours and open house events in order for these organizations to better understand exactly what living in this housing program will be like for the victims they may want to refer. The development and maintenance of these relationships will facilitate the potential for a continuously full housing program. Further public awareness will be reached by advertising on the organization’s website, Facebook page, utilization of a Twitter account, radio and TV interviews on local and Phoenix channels. It is important for WMHH to be advertised in the Phoenix area as a large population of this area are Phoenix residents who own second homes here as well as a large winter visiting population.

Financial Goals

Goal: The immediate goal is to secure funding for a multi-unit complex to house victims of domestic violence. The property located on White Mountain Blvd is currently for sale on an assumable loan at $450,000 with 20% down. This property has 20 separate units, separate manager housing, and a free standing building for meetings and administration offices. The property is located central to shopping, the hospital, schools, the community college, and is on the bus line. Funding needs will be met through grants and fundraisers.

Goal: Immediate funding is needed for staffing the transitional housing. Funding will be obtained through grants, private donations and contributions by residents (30% of income).

Goal

Non-Financial Goals

Individualized Resident Program Goal

1. Determine and implement the most effective program to provide the greatest chance for success in self-sufficient living. Determine necessary life-skills training, vocational training, and financial training for each individual and develop an ongoing program to facilitate learning. Adapt the program to each individual need.

Timeline: ongoing

Residential Group Program Goal

1. Develop and implement a six-step program to educate the victims about the cycle of violence with emphasis on breaking the cycle.

2. Provide individual case planning and management that fits the circumstances of each individual as well as utilizing regular group meetings.

3. Record data and evaluate in order to adapt the program based on resident successes and failures.

Facility Management Goal

1. Obtain funding for and acquisition of a minimum eight-unit facility that can also accommodate administrative and storage needs.

2. Obtain funding for and acquisition of one 16-passenger van for transporting residents for group outings, shopping trips, and personal appointments as needed to achieve goal success and to also to ensure the safety of the residents while in the community.

Sustainable Competitive Advantage

The White Mountain House of Hope will be able to maintain a competitive advantage due to the very rural location and the fact that there are no other services like those offered at the WMHH in any of the two counties or on any of the three reservations. Furthermore, there is a great need for these services so expansion into other areas within these geographical locational is feasible for the future. The fact that domestic violence is prominent and not declining in these defined areas will lend a great deal to the sustainable competitive advantage.

Situation Analysis

S.W.O.T. Analysis

Strengths

Professional and experienced staff

Committed Board members

Positive reputation in the community

Unique market niche for under-served population in our community

Strong administration

Safe environment

Weaknesses

Cycle of domestic violence difficult to break

Individualized support is expensive and time intensive

Unreliable funding-streams due to non-profit status

Learned protective behaviors difficult to overcome

High occurrence of victims returning to abusers

Opportunities

This is the only transitional housing in Northeastern Arizona

Political climate is in our favor as we will stand out as the only housing in the area

Numerous churches in the area to ask for support financially and as volunteers

No decline in abuse will lead to ongoing opportunity to serve women and their children

Low cost housing available in the area

Wide visibility in the community since it is the only housing

Threats

Decrease in private funding in unstable economic conditions

Negative image towards victims may lead to resistance to housing of this type in certain areas

Cultural issues may lead to lack of cooperation from reservation police

Government funding may decline due to large deficit

Limited funding from corporations due to rural location

Industry Analysis

The National Network to End Domestic Violence reports that domestic violence is a leading cause of homelessness for women and children and that the lack of affordable housing complicates the ability to escape the abuse. Transitional housing programs provide critical services for these women and children and remain a key factor in allowing this population to escape the violence (NNEDV, n.d.)

In 2013, 81% of Arizona domestic violence programs participated in the National Census of Domestic Violence Services covering a 24-hour period. 1796 individuals found emergency shelter, 615 received non-residential services, 269 calls came through the hotlines, and 187 did not get requested services, 76% of those requests were for housing (NNEDV, 2013.).

These unmet request results translate to 31% of the programs reporting that victims returned to their abusers, 14% reported that the victims became homeless, and 11% reported the victims began living in their cars (NNEDV, 2013) Over 66,000 adult and child victims were served in one 24-hour period in the United States in 2013 (NNEDV, 2013)

Competitor Analysis

There are currently seven transitional housing programs in Arizona, the closest being in Glendale, nearly

200 miles from Pinetop (ADS, n.d.). There are five emergency shelters, two of which are specifically for domestic violence victims, within a 100 mile radius of Pinetop.

Company Analysis

Due to the lack of transitional housing within a 200 mile radius of the proposed facility, there is undoubtedly sufficient cause to operate transitional housing for the victims of domestic violence and their children. According to the Executive Director Nancy Martin at the local DV shelter, last year 44 women were turned away due to the fact that there were no beds available. Martin went on to say that many of the women use the shelter as a means of escaping the abuse for 90 days knowing that they will have to return to it due to economic barriers that prevent their own self-sufficiency. Providing transitional housing for the victims who possess a true desire to permanently leave their abusive relationships may serve to open up beds more quickly in the emergency shelters in the area.

Economic dependence is one of the main reasons threat victims of domestic violence return to or remain in abusive situations. A study of the exit plans of women who were leaving domestic violence shelters found that access to independent income, along with child care and transportation issues, were key factors in deciding whether to return to their abusive partners.

Market Product Focus

85% of victims of domestic violence are women (BOJ, 2013). In Apache and Navajo counties half of the population are women (USCB, 2013). Statistics are very similar for the three reservations in the area.

Marketing and Product Objectives

Marketing objectives will involve communication and collaborative efforts between the organization and multiple community agencies to ensure that all victims in our market area are aware of the program. Working with shelters, emergency personnel, law enforcement, legal entities, medical personnel, victim services, and each of the local chambers of commerce the organization will develop and maintain informative communication about the program and services offered.

Project objectives will be to operate and maintain a safe and secure transitional housing facility to women and their children who are victims of domestic violence with preference given to community members in Apache and Navajo counties as well as the White Mountain Apache reservation, the Hopi Reservation, and the Navajo reservations.

Target Markets

The target market will be adult female victims residing in Apache and Navajo counties, female tribal members and their children from the three local reservations.

Points of Difference

Positioning

The facility is located in the town of Lakeside on the main roadway. This property allows for centrality to shopping, medical services, emergency services, schools, employment, parks, and public transportation.

Marketing Program

Product Strategy

Quality: WMHH will strive to maintain a facility that is clean, safe, and free of violence and abuse of any kind while offering support and guidance to the residents based on individual needs and goals.

Branding: WMHH staff and board members will maintain a positive reputation within the community by adhering to the company’s Code of Ethics while at the property and in the community, and at any time the need for representation of WMHH is called upon.

Pricing Strategy

Residents must be employed before entering into the WMHH program. The cost to each resident shall equal 30% of their net income. Grants and fundraising will supplement the costs associated with running the program.

Break Even Analysis

Fixed Costs

Mortgage

Utilities

Salaries

Variable Costs

Cleaning Supplies

Food