Marketing Plan Case Study Free
The Case Study: CHAMPIONS Sports Club
Champions Sports club started in California at 1985, and became one of popular sports club in 1995. The members were intending to go to this sports club for different purposes, for social meetings at the swimming pool where families setting together and enjoying fresh air, children were playing in the garden and enjoying different sports activities at that time. Champions’ sports club was very popular in California in the field of table tennis, where most of the Club Champions were winning the United States Championships and were competing in the first positions for World Table Tennis Championships. Also old people were enjoying setting together each Saturday to watch the movie presented in the club each week.
There were about 5 main sports club which were competing in California from 1985 to 2000, and other 3 smaller clubs there. The 1st club was called “HERO Club”, “STARS Club”, “PARADISE Club”, “CALIFORNIA Club”, and “FANTASTICA CLUB”. HERO CLUB was specialized as no. 1 sports champions in California, then “CALIFORNIA” and “STAR”. “FANTASTICA” and “PARADISE” Clubs were specialized in entertainments and social entertaining programs for the community, those 2 clubs were well know and having a great reputation since 20 years ago.
Among questionnaire has been made in 2000: the following results shown:
- CHAMPION Club was no.1 Club for table tennis players, for old people and for children.
- HERO and STARS Clubs were no. 1 and 2 choices for teenagers, and adults for Sport games.
- FANTASTICA and PARADISE Clubs were no. 1 and 2 choices for entertainments and social activities for different ages of the community.
In 2009, there are some changes happened in all of those clubs:
With the revolution of the technology, the children were interested for high technology products; as play stations, and other electronic games, watching carton movies rather than just playing sports. The old people lost the interest in the club because the show has been changed to be introduced every 2 weeks, while FANTASTICA Club is providing the same show every week with free dinner for Old people each Saturday.
The Table Tennis Coach in CHAMPION Club has changed with other one, who was having many conflicts with existing table tennis players, which led to dissatisfaction of table tennis players and finally they decided to leave the club instead of winning championships. Also there are no modifications and improvements in the swimming pools, and club facilities while the membership renewal fees increased to the double from 2008 to 2009, which made a negative word of mouth and led to dissatisfaction of existing members.
In 2010, another questionnaire conducted among the five main clubs:
CALIFORNIA, HERO, and STAR Clubs became the popular and well known clubs for Sports Games. CALIFORNIA is having a good reputation in football, HERO Club is having a good reputation in Basketball, and STARTS Club is having a good reputation in Swimming.
FANTASTICA Club is the best club for social activities and restaurants for the high class and for members who are willing to purchase high price products, while PARADISE Club is the most economic club for social and activities and restaurants, especially for middle class people.
The Chief Executive Officer of CHAMPIONS Club, Decided to recruit a new marketing manager who was you. And you have been assigned to prepare a marketing plan for CHAMPIONS Club, to be presented next month.
Please note that: this case study is from my imagination to help you, and doesn’t represent any existing case study or any existing industry.
Marketing Plan Case Study Free
(The Answer of the Case Study)
The following marketing plan is not an ideal answer to be applied in all case studies; it’s a sample answer for one of my learners, so I will leave my comments after each part of the learner’s answer.
Marketing Plan Sample Free Download (Case Study Answer):
To: Chief Executive Officer of CHAMPIONS Club.
From: Marketing Manager of CHAMPIONS Club.
Date: 11th of Jan. 2010.
Subject: Marketing Plan for CHAMPIONS Club in 2010-2011.
1. Executive Summary: The Marketing Plan Report includes the following issues:
Key issues, current position, potential overview of the outcome.
Mission, vision, goals and objectives
Macro/Micro Analysis (Marketing Audit):
PESTEL (External Audit), Internal Audit, Porter Five Forces and SWOT.
Financial & Marketing Objectives.
Marketing Strategies and Tactics:
Competitive Marketing Strategies, Segmentation, Targeting, Positioning, Marketing Mix (7 P’s), Relationship Marketing.
Tasks, resources, Budgeting, contingency plans.
Monitoring and control:
- Critical Success Factors.
- Benchmarking (KPIs).
This is would be blank as it should be the last thing you do after completion of your marketing plan. The executive summary normally 1 page length.
Marketing Audit (Situational Analysis) or Environmental Analysis:
2.1. Macro-environmental analysis (external environmental analysis or External Audit): PESTEL
2.1.1. Political Factors:
The personal taxes in California are:
California collects income tax from its residents at the following rates.
For single and married filing separately taxpayers:
— One percent on the first $7,168 of taxable income
— Two percent on taxable income between $7,169 and $16,994
— Four percent on taxable income between $16,995 and $26,821
— Six percent on taxable income between $26,822 and $37,233
— Eight percent on taxable income between $37,234 and $47,055
— 9.3 percent on taxable income of $47,056 and above.
A One percent surcharge, the Mental Health Services Tax, is collected on taxable incomes of $ One million or more, making California’s highest marginal rate 10.3 percent.
For married persons filing joint returns and heads of households, the rates remain the same but the income brackets are doubled.
The taxation rate is affecting the disposable income of each working individual; the disposable income is directly related to the purchasing power of the customers.
Protection of the Environment:
Champions Club is not having any hazardous impacts on the environment.
The unemployment rate in United States is 5.8% in 2008.
Source: CIA website.
Foreign Trade Agreements:
United States of America is belonging to free trade zones, which prevent any economic barriers or new business entrants. And this is although the tough competition from Chinese market that started to take a high market share in the cost-leadership competition within price sensitive markets in USA.
Stability of Political System:
Currently California is not facing any political instability as response of the new president; Obama.
2.1.2. Economic Factors:
Inflation Rate: 3.9 % (in 2008).
GDP (real growth rate): 0.4% (2008)
GDP (Per Capita): $47,500
GDP (official Exchange Rate): $14.44 trillion
GDP (Purchasing Power Parity): $14.44 trillion
GDP (Per sector): services: 79.6%
Labor Force: 154.3 million (includes unemployed).
Labor Force (by occupation): farming, forestry, and fishing 0.6%, manufacturing, extraction, transportation, and crafts 22.6%, managerial, professional, and technical 35.5%, sales and office 24.8%, other services 16.5%
Note: figures exclude the unemployed (2007).
Unemployment rate: 5.8%.
Also we should consider the global economic crisis is affecting the purchasing power of individuals and organizations to great extent. But in this case study; it became not the major rule in changing the consumer behavior, although some figures shown that the customers became more responsive for price sensitive markets.
2.1.3. Social Factors:
- Age Structure in USA: (source: CIA website):
0-14 years: 20.2% (male 31,639,127/female 30,305,704)
15-64 years: 67% (male 102,665,043/female 103,129,321)
65 years and over: 12.8% (male 16,901,232/female 22,571,696) (2009 est.)
The previous data show that the children and old target segment are representing 30% of the populations, while the remaining 70% is belonging to teens and adults.
Ethnic Groups in USA:
white 79.96%, black 12.85%, Asian 4.43%, Amerindian and Alaska native 0.97%, native Hawaiian and other Pacific islander 0.18%, two or more races 1.61% (July 2007 estimate).
note: a separate listing for Hispanic is not included because the US Census Bureau considers Hispanic to mean persons of Spanish/Hispanic/Latino origin including those of Mexican, Cuban, Puerto Rican, Dominican Republic, Spanish, and Central or South American origin living in the US who may be of any race or ethnic group (white, black, Asian, etc.); about 15.1% of the total US population is Hispanic.
Protestant 51.3%, Roman Catholic 23.9%, Mormon 1.7%, other Christian 1.6%, Jewish 1.7%, Buddhist 0.7%, Muslim 0.6%, other or unspecified 2.5%, unaffiliated 12.1%, none 4% (2007 est.)
English 82.1%, Spanish 10.7%, other Indo-European 3.8%, Asian and Pacific island 2.7%, other 0.7% (2000 census)
Note: Hawaiian is an official language in the state of Hawaii
2.1.4. Technological Factors:
Actually within the new technology revolutions, the technology became a major part in all industries, and it’s affecting the customer acceptance to purchase many products and services.
The technological factor is playing major rule in customers switching in this case study; as when FANTASTICA Club provided the same technological service provided in CHAMPIONS Club with other offers and bonuses, then the CHAMPIONS loyal customers switched to FANTASTICA Club. Also nowadays the teenagers and children became obsessed with games based on technology innovations, so if we considered the technology factors in our industry, then we will gain a good market share of customers in the first year.
2.1.5. Environmental Factors:
air pollution resulting in acid rain in both the US and Canada; the US is the largest single emitter of carbon dioxide from the burning of fossil fuels; water pollution from runoff of pesticides and fertilizers; limited natural fresh water resources in much of the western part of the country require careful management; desertification
party to: Air Pollution, Air Pollution-Nitrogen Oxides, Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic Seals, Antarctic Treaty, Climate Change, Desertification, Endangered Species, Environmental Modification, Marine Dumping, Marine Life Conservation, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling
Signed, but not ratified: Air Pollution-Persistent Organic Pollutants, Air Pollution-Volatile Organic Compounds, Biodiversity, Climate Change-Kyoto Protocol, Hazardous Wastes
2.1.6. Legal Factors:
When the membership renewal fees in CHAMPIONS Club has been increased to the double, that created a negative word of mouth and dissatisfaction of the existing members, and this is could harm the Club upon organized activities from legal or non legal groups.
Also we should respect the legal deals with our Sports Champions, especially for Table Tennis Champions who left the club due to the internal conflicts happened upon the recruitment of the new coach.
2.2. Micro-Environmental Factors, Internal Environmental Factors, or Internal Audit:
2.2.1. Business Factors:
184.108.40.206. Managerial Factors:
We need training programs about coaching, leadership and team inspirations for:
- All services leaders; restaurants, cinema shows, leaders of staffs, and any other service leader for CHAMPIONS Club.
- Swimming Pool Coaches, Table Tennis Coach, Football Coach, Tennis Coach, Basketball Coach, and all other sports leaders and coaches.
220.127.116.11. Competitive Factors:
Our past competitive factors were:
- Table tennis history as the number one Champions in United States.
- The movie shows for Old People and Children.
Our current competitive factors:
- Good investment capabilities in new products and services.
- High number of staff members, leaders and coaches.
- The structure of Club system members, leaders and officers has been established.
In the two years, the Club get affected by the Global Economic Crisis, and the members became more sensitive to less price membership renewal fees, while the new memberships wasn’t considered very well to gain new market segment.
Considering the liquidity issue, we are having enough liquidity to run and invest in the new projects.
The movie show need to be improved than before, and I suggest to start a new facility (as Cinema Show) to be considered as new product development issues.
Also there are no consideration of the rule of the internet, and interactive marketing communications to make a good market penetration, or to get new market development as new target segments. Also we didn’t consider the social networking website, viral marketing, and direct marketing to communicate with our existing customers or attracting new customers. The old way of communication with our existing customers was through mails, and sometimes through telephone communication.
2.2.2. Customers Factors:
I sent you a marketing research request on last two weeks (Quantitative and Qualitative) to gather information about what our customers need, and how they see our new products and services, to know how much revenue we will get from those products and services.
The Qualitative marketing research: through focus groups with our VIP members, and through using projective techniques.
The Quantitative marketing research: conducting three types of questionnaires; one through the telephone survey, Secondly through direct marketing (e-mails), and the third through direct marketing (mails). And each respondent will get free renewal membership for two members in his family upon the completion of the questionnaire.
The results of the marketing research have been interpreted and we tailored a new products and services for each target segment. You will find all of the details in the marketing strategies, and product mix.
2.2.3. Suppliers Factors:
We need to take the following actions with our suppliers:
To provide extranet with key accounts suppliers.
To take in consideration key accounts management with the key suppliers.
To ensure the stock level and delivery times of raw materials to our club, this is monitored on regular basis.
To ensure the system of maintenance and continuous improvements for our Sports facilities is up to date.
2.2.4 Stakeholders factors:
Upon the segmentation and targeting of our stakeholders we need to tailor the appropriate marketing communications mix and relationship marketing with each type of suggested stakeholder (the details will be illustrated in marketing mix).
The suggested strategy for management of those stakeholders:
18.104.22.168. Bargaining Power Of Suppliers:
We are facing two main issues with our suppliers:
The Concentration of suppliers: we only deal with two suppliers for our Club, which reflects on the communications impact is too risky if there no regular and effective communication and relationship marketing with those key suppliers.
The Switching Cost of suppliers: one of those two suppliers is dealing with FANTASTICA Club, which led to better services for them because FANTASTICA is paying premium prices for them, so they provided a high quality movie shows for their members.
My suggestions are to increase our suppliers to reach five suppliers, and to deal with new suppliers specialized for each service we provide. For example: suppliers for football, suppliers for basketball, and suppliers for table tennis. I knew this is going to take long time to establish new relationship marketing with those accounts, but it results on the long term led to high quality service and our facilities will be better than any other Club.
22.214.171.124. Bargaining Power Of Buyers:
We found that many of our Club Members left the club and joined competitors’ club, because of their renewal fees. So the Switching cost played a rule with price sensitive target segment.
But actually our customers won’t pay attention to price increase if our products and services are really unique and different (to work through Differentiation Marketing Strategies). So if we focused about developing our products and services in the effective way, then considering the effective communications mix with each target segment. Then the Bargaining Power of Buyer will be a positive force towards switching competitors’ customers to our Club.
126.96.36.199. Threat of Entrants:
As you see from the Macro-environmental analysis; GDP per Services sector is 79.6% which make this sector attractive to many investors. Which makes this threat is possible and expected within the next coming years.
188.8.131.52. Threat of Substitute:
Actually the substitute for SPORTS games aren’t that much threat in this industry. But considering the Malls or Places which gather high technical games, restaurants, and pleasant areas, all of those issues are placed everywhere in malls, and I think this is the only substitute. But when we combine the best place for children, best place for teenagers, adults and old people, with different services and entertainments programs targeted for each target segment, and then I can expect the substitute won’t be effective threat for our business.
184.108.40.206. Inter-rivalry among existing competitors:
220.127.116.11.1. Inter-Rivalry among Price Competition:
- All of the Six Clubs are having the same membership fees for new members (about 50,000 $) except PARADISE Club. The renewal fees of membership is almost range from 200 to 500$ per year in the Six Clubs, except CHAMPIONS Club renewal fees has increased to 750$ last year.
- A PARADISE Membership fee for new members is 20,000.
18.104.22.168.2.Competitive Marketing Strategies of the Six Clubs:
HERO, STARS, CALIFORNIA, and FANTASTIC Clubs were adopting Differentiation Marketing Strategies.
PARADISE Marketing Strategy: was Cost Leadership.
CHAMPIONS Marketing Strategy: wasn’t clear enough, sometimes differentiation, then sometimes cost leadership in our products and services.
22.214.171.124. Target Segments:
HERO, CALIFORNIA and STARS Clubs: are targeted for teenagers and adults as main service.
CHAMPIONS Club: was targeted to Children and Old People as main service.
FANTASTICA and PARADISE: social networking clubs for entertainments purposes. But FANTASTICA is targeted for customers who are paying premium prices, while PARADISE is targeted for price sensitive customers.
HERO Club is having a good reputation in Basketball game.
STARS Club: for Swimming.
CALIFORNIA Club: for Football.
CHAMPIONS Club: for table tennis.
FANTASTICA and PARADISE: Social networking Clubs for different ages.
The rest of the answer of this case study will be uploaded soon.
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