Last updated: May 17, 2019
Topic: ArtRadio
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SCOPE

Company strengths and weaknesses

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Strengths

Capacity to innovate due to superb research and development team
Strong capital base for investments
Good location of the center
Presence of themes in facilities
Weaknesses

Weak company reputation due to lack of experience
High costs of operation since only few people know of and go to center
Core competencies

What differentiates FUN from its competitors is its themed facilities.  Aside from having top quality equipments for batting, golf, go-kart tracks, and rock-climbing, FUN has two main themes for its attractions – the past and the present.  Visitors will surely enjoy at the Jungle Time Batting Cage, the Mummy Mini-Golf, the Futuristic Go Karts, and the Space Stones Rock Climbing.  All FUN’s equipments are heavily invested upon to ensure that they give the customers optimal experience.  The company also banks on research and development to continuously find attractions that can further intensify the customer’s experience when they visit FUN.

Marketing capabilities

The company integrates special marketing capabilities such as computerized technology and modern electronic communications into its daily operations.  Because of the power of the internet, the company has its own website which clients can access 24/7 for them to get to know about the company.  FUN also has its own e-mail system where both customers and employees can send their e-mails and communicate their concerns with the management team.

Product and Market Review

Company and product review

FUN is a joint venture formed during September 2007 between two partners – Unifield and Echo Marketing.  Established in the year 2000, Unifield is a company whose line of business revolves in the development of golf parks.  Its partner, Echo Marketing, on the other hand, is a company that specializes in devising marketing strategies for service oriented firms.  It has been in existence since 2005 and the company is known for being able to come up with unique and effective marketing ideas.   These two companies have decided in a 50-50% ownership of FUN, the only family center where there are themed facilities such as Jungle Time Batting Cage, the Mummy Mini-Golf, the Futuristic Go Karts, and the Space Stones Rock Climbing.

Company sales

Sales (in thousand dollars)

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Total
Sales

8
9

17
Direct Cost

13
12.5

25.5
Behavior trends

Due to the large number of baseball enthusiasts in the United States, the number of amusement centers that accommodate baseball fans keeps on steadily escalating.  Estimates of operators prior to 1980 would range from 100 to 200 total batting ranges and today, that total number would be in the 1200 to 1500 neighborhood. (http://www.swingzone.net/batting.html)  However, not only do the owners build batting cages but the trend is developing other attractions to add to the allure of batting cages.  It is common to find golf tracks, rock climbing walls, go kart tracks, and the like in centers that have originally started only with batting cages.

Pricing

Rates for every attraction vary but since FUN is still new in the market, rates will be lower than competitors so as to entice the customers to come and try out FUN’s facilities.

Batting Cages
Competitor’s Rates
FUN’s Rates
20 pitches
$2
$1
15 minutes
$10
$8
30 minutes
$17
$15
60 minutes
$25
$23
Mini Golf
Competitor’s Rates
FUN’s Rates
Age 10 and Under
$5.25
$3.50
Age 11 and Over
$6.25
$5
Senior Citizens
$6.25
$5
Go Karts
Competitor’s Rates
FUN’s Rates
1 Driver
$6.25
$4
1 Passenger
$2.50
$1.50
Rock Climbing
Competitor’s Rates
FUN’s Rates
2 attempts
$6.25
$4
Distribution

Tickets for FUN facilities will be sold at FUN ticket booths outside the center.  However, tickets can also be bought at FUN’s partner organizations.

Competitive Review

Mulligan Family Center is a chain of batting centers which has locations in Murrieta, Terrence, and Palmdale.    Among its numerous attractions are lazer-tag, mini-golf, batting cage, speedway and rookie go-karts, blaster boats, arcade, and rock wall.  Hence, their tagline, there is always something for everyone.  Aside from these, the park hosts custom events such as private parties, teambuildings, and the like.  Mulligan currently employs several promotion schemes – they have special rates for group packages and they also have value packs and all day passes for park entrance.

Mountasia Family Fun Center is a 7 acre entertainment complex located at California.  The center has several attractions including lazer tag, 20’ rock climbing wall, game arcade, mini-golf, go karts, bumper boats, and batting cages.  In addition to these, the park also has its very own Farrell Ice Cream Parlor where guests can enjoy their favorite ice cream treats.  Voted as the best place for kids to have fun during 2006, the Mountasia also hosts group event such as parties at a special rate.

Target Market Efforts

Consumer Targets

The consumer targets are kids and parents belonging to a family with three to five members.  They are within the broad C to upper B social classes and the usual household income ranges from $4,500 to $6,000 per month.  For recreation, the family usually spends their weekends playing sports and going outdoors.

Product awareness and attributes

Since FUN is still fairly new in the industry, prospective clients still does not know much about it.  In order to build awareness, the company is relying on its promotional efforts to generate buzz about the company.  Advertisements will be focusing on communicating the brand’s attributes such as cost and availability.

Trial and retail data

Month (2007)
Number of Customers
Amount Spent in Attractions (in dollars)
Batting
Golf
Go Kart
Rock
Sales per Month
September
900
3,500
1,000
2,300
1,200
8,000
October
1,000
4,250
1,350
2,700
700
9,000
TOTAL
1,900
7,750
2,350
5,000
1,800
17,000
According to the data, a total of 1,900 people came in since the park opened.  So far, data show that majority tried out the baseball batting cage.  The next popular attraction would be go kart while the least favorites would be golf and rock climbing.  Promotions would therefore be geared towards increasing the customer’s interest in golf and rock climbing.

PROBLEMS AND OPPORTUNITIES

Problems

Possible competition from other players in the industry
Copying of the “themed” concept
Other alternatives to going to batting centers may be developed
Opportunities

More participation from the growing market base
Development of new attractions that may add to the thrill of going to FUN
Potential partnerships with more organizations to increase people’s awareness of the existence of batting cages such as FUN
SALES OBJECTIVES

·   Maintain a significant sales growth of 10 % each quarter following the 1st quarter.

·   By the end of the year, the company should achieve a 5% less on operational cost.

TARGET MARKET AND MARKETING OBJECTIVES

Target Market

Target Market

The target markets are both kids and parents who belong to a family with one or more child.   They are families within the broad C to the upper B social classes.  The company picked families within this range because they have enough income for them to spend it on recreation.

The company’s primary target market is composed of children in their transition between pre-teen to teenager stage.  They are 8 to 12 years of age and they lead an active lifestyle.  They love sports and spending time outdoors.  They are the primary target market since they have a big influence in their parent’s decision.  They are the ones that can persuade them to go with them and spend time at FUN.

The secondary market is parents themselves.  They must see FUN as a good place to bond with their kids so as to agree to bring them there.  Parents are between 30 to 50 years of age.  They are working already and they have a combined income of $4,500 to $6,000 per month.

Marketing Objectives

·         To create 25% product awareness for the first quarter through events, promotions and advertisements

·         To maintain a continual increase of 3% in promoting product awareness per succeeding quarter.

·         To sustain a positive growth of at least 2% annually for 5 years (regardless of irregular sales)

STRATEGIES

The main objective is to position FUN as the place where one can spend quality family time together and have fun while doing it.  The product development strategy will be applied by the company.  Taking into consideration the present primary market’s needs which are the need for a place to have fun for the whole family, FUN will make sure its offerings such as the FUN family center cater to these needs.  The market penetration pricing policy will also be applied to ensure profits will be maximized.  Entrance rates will start out low and then slowly rise as the brand gains recognition.  Based on this offering, customer awareness will be created through several ways – the company website and advertisements.

COMMUNICATION GOALS

·         To gain rapid awareness and desirability for visiting FUN frequently, and to attract the general younger market.

·         To be able to effectively position FUN as the place that provides guaranteed fun for the whole family.

·         To create a positive relationship with partner establishments, specifically in gaining their support to be more aggressive in terms of helping promote FUN.

Tactical Marketing Mix Tools

Product

FUN’s Jungle Time batting cages are surrounded by perimeter fences and each section has a calibrated machine throwing pitches at a set speed.  To make the jungle theme seem realistic, baseball bat handles are carved in animal figures and the field will be made to look like a jungle.  The Mummy Mini-Golf, on the other hand, is Egyptian themed.  Golf equipments like putt handles and the hole flags all sport Egyptian replicas.  The Futuristic Go Kart tracks surround the entire FUN family center and in order to enhance its appeal, the cars (go karts) are made to resemble space cars.  The Space Rocks Rock Climbing walls will be made to look as if one is stepping on space stones as they are ascending.  Through these themes, families will certainly enjoy their bonding time at FUN.

Branding

The brand FUN family center will project a family-oriented place where one can have fun doing sporting activities together.  If the brand were a person, it can be described as a man that loves to have fun doing sports.  He is an extrovert who loves spending time with his family.  In relation to this, FUN will project this type of brand image.

Pricing

The market penetration pricing policy will be applied.  In order to entice the target market to come and visit the place, prices will be very cheap during the first three quarters of operations.  This way, customers will prefer visiting FUN over other competitors.  When they visit the center, FUN will make sure that they have a terrific experience, hence, assuring the center a repeat visit in the future.  The prices however, will slowly go up as brand recognition builds since loyal customers would not mind anymore if prices are higher because they know what they are paying for will be worth it.

Promotions/Events

Promotions and events the company chooses to use are the frequency visit card, mascot races, radio jingles, sponsorship programs, instant messaging ads, and print ads.  All of these are deemed to help increase the product’s awareness to the target market.

One promotional method that the company will use is the frequency visit card.  One card will be given per family and as they fill up corresponding boxes in the card, they will get to play free games at the golf track and rock climbing wall since those are the facilities least favored by visitors.  This way, those that have not experienced those attractions will get to try them.  Validity period for every card is only six months.  Another would be the mascot races.  Every September, FUN will host a mascot race wherein all the park’s mascots will join.  They will be in a race to complete the set-up obstacles.  It will surely be a delight to watch for both the kids and the parents.  After the event, kids can meet and greet the mascots.  For the brand to stick in the minds of the target market, a jingle will be developed.  They will be aired on selected radio stations for either early morning spot when the students go to school or for a late afternoon spot when the students are going home.  FUN will also sponsor school programs in return for allowing FUN to place posters in the event area.  Instant messaging advertisements will also be utilized.  Many of today’s teens interact through instant messaging systems like Yahoo, MSN, and the like.  Thus, it is only right to place advertisements where the company’s target will be exposed.  Lastly, print ads like brochures and magazine ads will also be made.

Advertising Message

Since FUN is a new player in the industry, the key to making it a successful venture is to create awareness for the place and to properly explain to the target market what is unique about FUN family center.  The advertising message that will be communicated to the target market is that FUN is the only place that has themed attractions where one can have a great time with the whole family.  Brand attributes such as cost and availability (accessibility of location) will also be prevalent in company’s advertising materials.

Advertising Media

Advertisements in print and non-print media will be utilized to ensure maximum product exposure.  Print media will include magazines, posters/tarpaulins, and brochures.  Non-print media, on the other hand, are radio jingles, sponsorship programs, yahoo messenger ads and the company website itself.

Publicity

Publicity will be generated mainly through publication write-ups in newspaper and magazines.  The company’s public relations team will give the particulars of events that FUN had been engaged in. This way the new customers get to hear new about the company is more believable since it came from an unbiased point of view.

Marketing Plan Budget and Calendar

Milestones
Start Date
End Date
Budget
Department
Marketing plan
11/20/07
11/25/07
$100
Marketing
Website completion
1/1/08
1/4/08
$1000
Marketing
Advertising expenses

$10,000
Marketing
Total

$11,100

Evaluation

The purpose of the marketing plan is to serve as a guide for FUN’s performance. In order to monitor the company’s performance, the following shall be monitored:

·         Monthly revenue and monthly expenses

·         Market awareness (through surveys to be conducted by the company)

·         Customer satisfaction (through surveys to be conducted by the company)

 

References:

 

_____ (n.d.). Swingzone Information. Retrieved November 23, 2007,

from http://www.swingzone.net/batting.html

 

_____ (2007). Business Idea Center: Baseball Batting Cage. Retrieved November 22, 2007,

from http://www.entrepreneur.com/businessideas/245.html

 

Jaleshgari, Ramin P. (April 1996). Family fun center brings fun into the 21st century.

The New York Times. Retrieved November 22, 2007 from http://query.nytimes.com/gst/

/fullpage.html?res=9A0CE5DC1139F937A25757C0A960958260

 

______ (2006). Special Capabilities Available. Retrieved November 23, 2007,

from http://www.markgoff.com/mgmcsca.htm