Therefore people who prefer playing with less layers will choose them instead of UTC. RISC is Tutu’s biggest competitor by comparing their location, size of the organization and types of product offered. UTC doesn’t have any marketing plan to encounter new competitors resulting in declines of membership growth rate and increase of membership turnover. Moreover, Ultimate is at the maturity of the product life cycle, which means UTC has to differentiate their product in order to attract more customers and steal market shares from others. Additionally, UTC never had any marketing plan because the market used to be monopolized by UTC.
Therefore, UTC must take action in order to love this issue. Decision Criteria 1 . Increase membership by 20% within one year (600 people) 2. Create a marketing plan and enrich their product mix within a budget of $50,000 and having an ROI of 5% ($2,500) Option Analysis Option 1: Add vi league into their product mix (Exhibit B) By adding a vi league will mitigate Tutu’s product differentiation issue and compete with RISC. The registration fee is set at $350 per team while RISC is charging $539 which gives UTC a cost advantage against RISC.
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Also, the vi league will be played in a third of Tutu’s current field so there will be 3 games played in a field at the same time. However, the number of external customers attracted is not determinable because there is no data relating to how many customers are price conscious in the market. Therefore this option will be focusing on internal changes. According to the adoption model (Oxford), we can estimate that 16% of current members will adopt this new product given that this product already exists in other organizations (I. . This product is not “new’ in the industry). The proposed league structure will allow their profit increased by $6,986. And the profit will always increase as there are more people ongoing the new league because the revenue per person of the new league is higher than the original league. Based on the breakages analysis, the minimum price UTC can charge for this product is $275. 86 per team in order to breakages, which leaves them $74. 14 (21%) for price adjustment.
To conclude, this option involves minimum risk because other organizations had been experiencing success by implementing this structure, and it is crucial that UTC stay in competition by adding this league. Option 2: Marketing plan 1st Step: Eliminating unrealistic option Given that the total budget is $50,000, we can eliminate ETC because every option of ETC exceeds $50,000. 2nd Step: Demographics of each advertisement option Assumption: UTC should target the age group of ass and most of Tutu’s players are in it. According to the case, the total number of customer bases of each advertisements are: 102. The Edge: 800,000 weekly listeners (72% being 18-44 years people) The Toronto Stars: 950,000 readers in weekdays, 1 readers on Saturday, 750,000 readers on Sunday (20% being 18-34 years in weekdays; 240,000 in Saturdays; 1 50,000 in Sundays) Faceable: 736,560 people in the age of 18-29 3rd Step: Determine what to put into the ad UTC should specify the following elements of themselves in their ads: 1. UTC is the third largest Ultimate Club in Canada 2. Created in 1980 with lots of industry experience, “We know what you want! ” 3. Highest quality of ultimate in the GTAG 4.
Health Benefits of Ultimate such as Spirit of the game, Full body workout, Increased Agility and it is a non-contact sport which fits students of all ages, sizes and ability (Health Fitness Revolution) 4th Step: Revenue, Cost Estimation Faceable ad (Exhibit C): This option involves creating a Faceable page and ad, hiring a person to create and manage this will cost $44,000. According to Decade. Com, CPM is more preferable if the daily budget is low. Based on the calculation, a budget of $6,000 is capable of 62 times of 736,560 impressions and the total clicks generated from this ad is 123,918 times.
Therefore if 808 people Joined, the decision criteria is met providing 808 people represents 0. 65% of clicks generated. Edge 102. 1 (Exhibit D): Assuming a response rate of 0. 15% for radio ads (obtained from our Surefire Case Analysis), this option satisfies the decision criteria only if 27% of those who are aware of the ad will Join, which is highly unlikely. So this option is a no go. Toronto Stars Exhibit E): I looked at the actual size of each option of the Toronto Stars advertisement. Choosing the 1/8 page horizontal option seems to be the best option to me by estimating the amount of information needed for presentation.