Marketing

Assessment BA1 United Business Institutes Student Id: #11333 Organization Chosen: Kiva Deadline: Sunday, 18th of November 2012

 The company chosen is Kiva: a non-profit organization that supports microcredit, loans offered by anyone willing to offer minimum 25 dollars to poor entrepreneurs that are not qualified to take a bank loan. When accessing their website the lenders can have access to many different borrowers, people with all the kind of small business from all over the World. Kiva exists since 2005 and their Headquarters is in San Francisco United States of America. In the companys website (kiva.org) there is a session called About is believed there is a mission statement: We are a non-profit organization with a mission to connect people through lending to alleviate poverty. Leveraging the Internet and a worldwide network of microfinance institutions, Kiva lets individuals lend as little as $25 to help create opportunity around the world. According to the non-profit organizations founder, Matt Flannery, Kiva is just a connection gate: there are 142 microfinance institutions partnering up. There is no interest rate received by Kiva; they only support the grants and loans offered by its users that can be from somebody that visited their website and is interest to help to a national institution that is willing to make a difference. According to Mr. Flannery the repayment rate for loans is higher than 98.94%. Since Kiva is a non-profit organization the company uses voluntaries from all over the world highly motivated to the cause of minimizing poverty. The way pricing process is done is simple: once the borrower fits Kivas requirements their profile is exposed on Kivas website. Once the profile is exposed lenders (users who access their website, Institutions and so on) they can choose how much to donate/lend starting from $25. As for more explanation follow the image steps:

Kiva Empower people around the world with a $25 loan

 Kivas Marketing Strategy is simple; they believe the best marketing campaign is distributed by those who joined the organization (lenders and borrowers) that are advocating for them in pro of combating poverty. Another method theyve been using is the fact of the idea itself, their speakers go around the work to explain their willingness to change with the speech of Poverty, money and love witch can be found in TED Kiva all the available Internet Networking websites: Facebook - http://www.facebook.com/kiva Twitter - https://twitter.com/kiva LinkedIn Blogging - http://kivanews.blogspot.com/feeds/posts/default They also have video channels and video/interview participations: YouTube - http://www.youtube.com/kiva TED - http://www.ted.com/talks/jessica_jackley_poverty_money_and_love.html Mass Media Support: New York Times Newspaper The Washington Post Newspaper Los Angeles Times Newspaper Economic Newspapers and Magazines e.g. Business Week and Bloomberg Famous Supporters: Bill Clinton - http://www.msnbc.msn.com/id/21020060/page/2/#.UKkvbYU1fq0 John Larson - http://video.cnbc.com/gallery/?video=604752752&play=1

The Oprah Winfrey Show - http://www.oprah.com/oprahshow/Oprahs-Ultimate-Favorite- Things-2010/31

It is easier to set up a Competitive Advantage Plan when the organization is a non-profit one. In the case of Kiva they are following the five Competitive Advantage Strategies, been the following: I. Cost Leadership Strategy: since Kiva receives no commission for the network they provide for the borrowers its Microfinance Institutions can provide for the borrowers a lower interest rate than the other Financial Institutions (e.g. banks). As a result the borrowers that need a considerable low loan can rely on Kivas initiative rather than Banks and other Credit Institutions. II. Differentiation Strategy: they do have a product/service different than the other Financial Institutions; therefore they have also advantage in this field. Their product/service is to provide for those who do not fill standard requirements to have a bank loan the amount they need to achieve their goals. III. Innovation Strategy: people from all over the world can offer Kiva borrowers a loan opportunity paying by PayPal an easier way to do payments and transfer money. By doing that lenders are sure their transaction is been sent and received safely. The result is; Kiva pays no money for the transaction and lenders and borrowers spend no extra charges for the transactions. Operational Effectiveness Strategy: volunteers from all over the world feel as joining Kivas cause on minimizing poverty. Having volunteer workers in a non-profit organization that aims helping family businesses, tuition fees and so on keep workers motivated and focuses on the organizations goals leading to effective work tasks. Happy employees = happy customers. Customer-Orientation Strategy: been a non-profit organization says it all. Is full based on customer orientation. Lenders receive pictures, tracks and business plans from the borrowers and borrowers receive not only the Capital they needed for their business but also they are stimulated to make their business successes. This strategy is very effective since Kiva basically offers hand-to-hand loans trough web-based service.

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Kiva is using some of the following Sustainable Marketing: Kivas website http://www.kiva.org Newsletter for those deciding to subscribe in their website. Social Media e.g. https://twitter.com/Kiva They appeal to the human been in general instead of a single person. Their Campaign (e.g. website, speeches) connects people in a universal level. They implore the audience to take action. Join us and make loan today.

Make it easy with mobile applications

Kiva is without a doubt a Social Responsible Business. Their work is been appreciated by over thousand of poor borrowers who goals would not be achievable without the microloans offered by the lenders Kivas network is able to gather they had developed a Sustainable Microcredit Concept. Notable entrepreneurs such as Reid Hoffman founder of LinkedIn and Premal Shah from PayPal joined Kivas team. As a form of exposing their credibility, is visible on the main page of their website their Award of Charity Navigator. A list of articles published by the press emphasizing their work and building up their credibility is also available at http://www.kiva.org/press. As a conclusion Kiva is following not only the right steps for a Sustainable Marketing but is also improving the opportunity for development in areas in the world where bank loans are nearly impossible for the unfortunate ones. Kiva is also following categorically the Five Strategies of Competitive advantage living no field for competitors to play each day their website keep tracks of loans offered and the amount of people joining their network, they are stimulating more and more people from everywhere to help and make part of something bigger than just our own lives. Indeed with Kiva we are introduce to the fact that helping the others achieving their goals enrich our souls. After knowing about Kiva, I respect their initiative and I am a proud lender in their network.