Discount prescription

program for the elderly

By:

Ashik Arif Loc Nguyen

Casey Mason Eric Jackson





2

Introduction
According to a study done by the National Center for Health Statistics in 2007-2008 and
published in 2010,Among older Americans (aged 60 and over), more than 76% used
two or more prescription drugs and 37% used five or more. (Gu Q, Dillon CF, Burt VL,
2010). That is a staggering number and one that has no doubt continued to rise
throughout the years since that study was published. In todays economic climate,
consumers require a high amount of corporate social responsibility. The importance of
social responsibility is partly a result of the 2008 economic crisis that was perpetuated
by unethical and illegal corporate activities as well as the increasing levels of
environmental concern. Currently, Target has social responsibility initiatives in place
that address environmental concerns and an extremely thorough code of conduct for
employees that will ensure ethical behavior. Additionally, Target has other specific
social responsibility initiatives that address consumer, employee, and community needs.
Interestingly, however, Target, like many other big box retailers, does not have any
social responsibility programs that address the needs of the particularly at-risk segment
of the population - the elderly.
This proposal will explore a new social responsibility program for Target that is geared
exclusively to the needs of elderly individuals. Due to rising health care costs and the
advancing age of Baby Boomers, there will soon be a significant burden on the
American health care system that will result in many elderly individuals not having
access to quality health care. In order to combat this increasingly severe social
problem, Target can implement a program that is designed to address the needs of the
elderly. This new program will, in part, consist of the raising of funds to help
supplement some of the cost of prescriptions that are most frequently used by elderly
individuals. Target shoppers will have the choice of having a portion of each sale using
the Target Red Card placed into the program. There will also be a fundraising event
outside of Target stores that will be held by employees to benefit the program. Half of
the funds collected will be donated to Partnership for Prescription Assistance, a third
party non-profit organization that will use the money to supplement the costs of
prescriptions for elderly. The funds will be used to help offset the costs for the two most
commonly used prescription drugs.
We will also be raising money to donate to a non-profit organization that specializes in
promoting awareness of dementia. It is estimated that 5 million Americans over the age
of 65 are affected by this major problem in the United States, and 500,000 die from
Alzheimer's alone each year (Alzheimer's Association, 2014). Half of all funds raised will
go to benefit seniors with dementia of all types as well as supporting healthy brain
function for all senior citizens. We have chosen the Center for Brain Health at The
University of Texas at Dallas as the recipient of these funds.

3

Background
Like many large retailers, our company has many social responsibility programs that are
detailed on our website. On the Corporate Social Responsibility page, we describe
our history that dates all the way back to 1946. Target is committed to a brighter future
for our team members, our communities and the world we live in (Target website).
These are lofty goals, but we devote a significant amount of company resources
towards accomplishing them. Every year, we donate five percent of total corporate
profits to local communities in the form of direct charitable contributions. Additionally,
our company engages in numerous fundraising efforts and supports dozens of
charitable organizations. Despite the wide array of charitable endeavors that Target
participates in, none of these programs addresses the needs of the elderly.
We concentrate social responsibility programs on education, the environment, health
and well-being, responsible sourcing, safety and preparedness, team members, and
volunteerism. The social responsibility dimension of health and well-being is particularly
important to Americans in light of current economic and health care conditions. Health
care costs have been steadily rising in this country for the last decade, and currently
America spends more on health care than any other nation in the world (Woolf, 2013).
In fact, the U.S. spends a staggering 17.9% of its GDP on health care. That is $8,680
per person -- 61% higher than the next-highest nation. However, Americans' life
expectancy of 78.7 years places 27th among OECD members and is over a year less
than the OECD average (Speights, 2013). The fact that Americas spends the most on
health care but has a shorter average life expectancy than other developed nations
illustrates the significant health issues that negatively affect elderly populations within
this country. In order to address this concern, Target needs to address the problem of
those individuals who struggle to pay the price of the medication they need.
Currently, many seniors in America are in a situation where they are unable to afford
insurance and quality health care due to outrageously expensive costs when compared
to other nations. For instance, it costs $13,660 for an American to have a hip
replacement in Belgium; in the U.S., it's closer to $100,000 ('Paying Till It Hurts': Why
American Health Care Is So Pricey | WUNC, 2013). Some rely on Medicaid or
Medicare to help with the costs of prescription drugs, but for the vast majority, it is not
enough.
These skyrocketing health care costs and increasing rates of individuals without health
insurance and access to quality health care lead to the passage of the Patient
Protection and Affordable Care Act (PPACA), but the reality is that the distribution of
health care and resources is still incredibly unequal for elderly individuals. Target,
however, has the resources to help elderly individuals have improved health due to
lower prescription costs.
Research has been done on efforts to combat dementia related diseases and illnesses
4
and keeping the minds of the elderly sharp and functioning on a daily basis. As stated,
half of our donations will be sent to cover classes that will serve to give senior citizens
as a sort of mental workout. Dementia and more specifically Alzheimers disease is an
issue that Target has to focus on stymieing, and through these classes, we can help to
reach as many senior citizens as we can. There is no cure for Alzheimer's, but as
previously stated, the classes will only serve to help the participants in keeping their
brains active and functioning. We will bring in a professional working for the research
and prevention of all types of dementia to lead our classes. The professional will lead
the class in discussions, games (such as checkers, chess and dominoes), jigsaw and
crossword puzzles, book readings, and even acting from their favorite plays and
movies. These sorts of activities can help seniors lower the risk and possibly postpone
the occurrence of dementia (Hurley, 2013). These cognitive activities will be very
engaging for our elderly members and we feel will be very effective in our efforts to
combat dementia.
Proposal and Plan
The proposal consists of two parts: the loyalty card program and a 5k race. The first part
of the program will be a targeted marketing campaign to encourage current Target
customers to sign up for the campaign and link it with their existing red cards. This will
be done by sending out an email to all red card users on May 20th as well as printing
out information about the campaign on receipts. Once linked, a customer-designated
percentage of the customers purchase or specified amount such as $1-$5 will
automatically be contributed to the campaign after each in-store or online purchase
within the campaign contribution window through October 30
th
. Additionally, customers
will also be able to make one-time charitable donations online at Targets website with
e-checks, credit cards, or debit cards. A red card is not necessary for these one-time
online charitable donations.
The stores implementing this strategy will be the ones located in Richardson and Plano.
Large signs will be posted near entries and exits at the Target stores about the
campaign in addition to promotions about the campaign on Targets website.
The second part of the campaign begins on July 1
st
, when receipts will start having
information about the 5k printed on them along with a link and QR code to sign up for it.
Additionally, large signs promoting the 5k will be installed alongside the ones for the red
card program. This in-store and receipt based marketing effort will continue until
September 30th.
On August 1st, emails will be sent out to neighboring schools, colleges, and churches to
acquire volunteers, participants, and donors for the 5k. The fee for early registration
participants to run in the 5k will be $20, and they will be able to register for the race
online at Targets website or at any local Target store. The people leading the 5k will be
Target employees and they will receive a bonus for doing it. The last day to pre-register
to be a volunteer, donor, or participant will be September 30
th
, but individual volunteers
and race participants will be able to sign up on the day of the 5k. Late race participants
5
who sign up on the day of race will incur an additional $10 late registration fee. Donors
for the 5k race will be able to make a charitable contribution at any time at the online
portal until the day of the race, and cash and check donations will also be accepted in
person on the day of the race.
On October 18th, the 5k will take place at Fair Park, Dallas. All the proceeds from the 5k
will be combined with the proceeds from the red card program collected until October
30
th
, and then all contributions will be distributed to the NPOs on November 1st. Police
volunteers will be used to provide free security for the face. A timeline is added below to
help explain when the essential parts of the project take place. A map of the Fair Park
with the 5K route has also been added below.
After the 5k race and red card contribution programs have been completed on October
30
th
, the free cognitive classes for elderly individuals will begin to be offered at the
Richardson and Plano locations. These programs will be advertised online on Targets
website, on customer receipts, and through the use of in-store signage and promotions.
Charitable contributions for these classes will be accepted year round through the
Target website.

Date Details
May 20 E-mails sent to red card holders. Big signs put up near entrances. Receipts
with printed information about the project
July 1 E-mails sent about the 5k. Receipts with printed 5k information. The big
signs start showing 5k information
August 15 E-mails sent for volunteers to sign up.
September 30 Receipts stop having information about the project
October 18 5K takes place
November 1 Money is donated to the non-profits

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Staffing and Budget
The two components of this elderly care proposal each have different staffing needs.
With respect to the new cognitive classes for elderly individuals, the staffing for this
initiative will be minimal. A single individual, most likely an outside independent
contractor, will need to be brought in to teach these classes. Since these classes will
only be offered 1-3 times a week, the costs will not be significant and the staffing needs
are also minimal.
The 5K will use volunteers from nearby schools and 20 employees from the 4 stores
involved. The employees will each receive a $50 bonus.









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Store Advertising and Class Costs
Item Cost
Signs costs $2,400
Class materials cost $200
Certified class facilitator $2,880
TOTAL STORE COSTS $5,480.00

5K Race Costs
Item Cost
Shirts $8,400
Bag cost $3,000
Race number $250
Traffic/medical $1,080
Water $506.25
Cups $104.70
Snacks $1,530
Insurance $800
Employee bonuses $1,000
TOTAL 5K COSTS $16,670.95



Revenue
Item Revenue
Entrance fees $35,000
Sponsors $2,000
Extra color packs $1,000
Shirts for sale $2,000
Red Card revenue $22,000
TOTAL REVENUE $62,000.00

Total Donations
Item Amount
Total Costs $22,150.95
Total Revenue $62,000
TOTAL DONATIONS $39,849.05
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Conclusion
The new elderly care social responsibility program described in this proposal will be the
first of its kind to be offered by a big-box retailer and will go a long way towards
addressing the health care needs of at-risk elderly populations. This multi-faceted
approach that includes free community classes and prescription assistance addresses
different needs of the elderly population, and taken together, this program represents a
very comprehensive approach to the health care problems that affect elderly individuals.
This type of comprehensive approach is necessary considering current circumstances.
Shockingly, the difference in the quality of health care received and corresponding life
expectancies between wealthy elderly individuals and middle-income elderly individuals
is almost the same as the difference between wealthy and poor elderly individuals. In
fact, wealthy individuals tend to live on average five to ten years longer than both middle
and lower income elderly individuals (Goodman, 2012). The fact that both lower income
and middle-income elderly individuals receive the same unequal access to health care
when compared to wealthy individuals is a testament to the extreme health care
inequality in the United States that plagues elderly citizens. Fortunately, this new social
responsibility program at Target will offer improved health care to all elderly individuals
in communities that are served by Target. Additionally, the cost effective nature of this
new program means that Target will be able to have an extremely positive impact on the
lives of these individuals and build significant amounts of public good will. Therefore,
this new program will be beneficial to all Target stakeholders- shareholders, customers,
employees, and surrounding communities.


Store costs,
$5,480.00
5K costs,
$16,670.95
Cost Composition
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Authorization Request
It is our belief that the Target Discount Prescription Program for the Elderly is an
excellent way for Target to give back to the community. We feel the benefits to be
gained from this program are tremendous and can help our community address a
couple of problems our elderly face today. It is our hope that the program will be a
success on the local level and can be implemented at the national level very soon.

We hereby give our approval for the program to begin as outlined in the attached
proposal, and we further approve the disbursement of $23,000.00 to fund the program
in the Plano and Richardson area.






________________________ ________________________________
Date Jeffrey J. Jones II
Executive Vice President and Chief
Marketing Officer


________________________ ________________________________
Date Margaret Smallwood
Senior Panel Member

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References

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Hurley, Terry (2013). Cognitive activities for the elderly. Retrieved April 19, 2014 from
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Alzheimers Association. (2014). Alzheimers latest facts and figures. Retrieved April 19,
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