Strategic Marketing Planning for SportUNE - Case Study Example

Student’s Name Student’s Number Unit’s Name Coordinator’s Name Word Count Introduction In Australia, SportUNE is one of the best universities offering modern sporting services not only to the students and staffs, but also to the neighboring community. The sporting services are available 24/7 and meet the diverse needs of people of various ages, tastes and preferences. With the presence of up-to date facilities and competent instructors, the University programs provide one with a more balanced, happier and healthier lifestyle plus a user-friendly environment. For example, indoor sport and recreation center contains heated swimming pool, strength and conditioning gym, club rooms, café and spin while the outdoor sporting district has children’s play area, multi-purpose courts, BBQ and picnic facilities and multifunctional fields. The friendly and supportive staffs professionally respond to one’s call to enable one discuss the institution’s new facilities and his or her personal goals. Relevance of the Mission statement The SportUNE mission reads, “Engaging and supporting our communities through sporting and healthy lifestyle opportunities.” The institution is increasing its market share through cutting down the membership costs, which helps it expand because of the increased penetration of current product market. For instance, it can give a 10% or 20% discount to individuals who quarterly, half-yearly or yearly subscribe to prepaid membership. Closely related with this is that the existing members gets a 10% discount for every person they refer to a maximum of ten, where the discount actualizes the value of cost-effectiveness as well as transparency or openness. Secondly, the existing personnel and facilities cut across all ages including the children as evident in the children’s play area who some recreational centers neglect. Notably, this is in line with the social values of inclusion and diversion. Thirdly, the qualified staffs enhance professional leadership. Clearly, SportUNE prioritizes clients’ needs and boosts mutual ties with concerned parties; thus, the organization supports and engages its communities through sporting and healthy lifestyle opportunities. Hence, the SportUNE mission is relevant. Relevance of SMART Objectives The organization has a teaching and research center that offers a number of opportunities to students such as sufficient education and internship programs that encourage club participation while accommodating diverse needs of all stakeholders; hence, a unique on-campus experience and a service culture that meet everyone’s needs. The undergraduate and postgraduate degrees do not contradict the goal of setting standards for social inclusion and access to higher education with the research center enabling SportUNE to be a distinguished sport-related service provider. It is highly likely that the research centers use the modern technology, which means innovation. It is clear that the SportUNE wishes to achieve social equality, shareholders satisfaction, international recognition, efficiency and effectiveness and promote hand-on experience and the use of appropriate technology. In addition, it wants to set sporting standards; hence, by utilizing its resources that includes all stakeholders and discounts, the firm gains a higher sales volume and market share that implies a competitive advantage over its competitors. Hierarchy of Strategies a. Corporate Strategy The corporate strategy deals with resource deployment and organization scope. Evidently, this organization has deployed resources such as staffs, office equipment and sport facilities that are up-to date. Importantly, the organization has established classes and centers of research for helping people gain deeper understanding of sport-related matters. The institution collaborates with other organizations in Australia and overseas such as in China, Malaysia, Taiwan, Vietnam, Singapore and Hong Kong. It is worth mentioning that the University has facilitated the availability of courses in various languages such as French, Indonesia, Italian, Chinese and German. Therefore, SportUNE locally and internationally offers its services. b. Business-level strategy A business-level strategy pays attention to sustainable competitive advantage. As earlier mentioned, SportUNE offers its program to both domestic and oversea student in various languages; thus, the organization establishes a wide client base. Importantly, the research departments ensure that the organization understands the current market demands in order to provide the consumers with the products and services that meet their varying needs as when they fall due. With the range of recreational facilities that cuts across all ages and sport-related activities, the organization enhances a continuous flow of clients. Notably, the membership subscription particularly the periodic subscriptions dictates that the consumers exhaust the service or product they have paid for plus the discount system entice them to invite their colleagues to enroll. Clearly, this organization is least likely to curtail its operation in the near future because it has devised a strategy of ensuring a continued competitive advantage. c. Functional strategies These strategies enable a firm achieve its objectives in its specified product market. It is clear that the SportUNE renders its service in the recreational service industry where it provides members with much sport support. With the use of professional, the organization spells out code of conduct in the sports field that meet the needs of the various stakeholders. The fact that the organization has numerous partners facilitates effective distance learning programs as well as creates platform for students’ placement and hand-on experience. The research centers departments require modern technology that promote efficiency and effectiveness; thus, satisfaction of concerned stakeholders. Porter’s Five Competitor’s Forces i. Rivalry among the Present Competitors The main rival of SportUNE in the Australia is the University of Western Australia (UWA). Actually, there exist small competing firms whose impact is not comparable to that of University of Western Australia. Consider, for example, the UWA trains some students and sponsor them to represent it in the sports as evident in the July 2014 Common Wealth games. Further, the UWA has membership subscription such as weekly subscription of $12 and semester 2 subscription for $250. It is important to note that UWA collaborates with health way, Tertiary Sports, Venues West and Western Australian Sports Center Trust in its major activities; thus, it offers a direct and strong rivalry to SportUNE. ii. Bargaining Power of Suppliers The organization has a number of creditors such as FMS supplier who supply it with its sports materials, equipment and stationery. Of importance, SportUNE can easily switch to a new supplier; thus, the suppliers have little bargaining power. iii. Bargaining Power of Buyers The existing conditions do not favor the buyers because only a few firms offer products and services that are consumer-driven; thus, the consumers are price takers. Furthermore, the cost of buyers switching to another service and facility is dear, which suggests that SportUNE has autonomy over its clients. iv. Threat of New Entrants The prevailing market conditions make it hard for potential business people to penetrate into the market of offering recreational services and facilities. Firstly, the capital requirement is high, which reduces the number of new entrants. In fact, it has cost SportUNE $5.5 million to extend one of its halls while the playing field is approximately 15 hectares. Here, one has not factored in the cost of inclusion of erecting facilities, ground fitness rooms, wages, indoor multi-purpose halls and café to mention a few. Clearly, one requires huge capital to establish a sports center. v. Threat of Substitute Products This organization offers a range of recreational facilities and services including gym, football, netball, hockey, field athletics, badminton, running events and swimming. In connection with this, one can watch the sports while taking a drink; thus, it is least likely that the demand rises nor do alternative product types exist. Hence, in case of a substitute, the organization profitability is highly likely to remain unaffected. Strategic fit From the objectives list, it follows that the SportUNE is not intending to liquidate its operations in the near future. In fact, the goals are clear and point out that the organization wishes to establish a wider consumer base through use of the latest technology and the provision of products and services that meet the clients’ diverse needs. In addition, the research centers and the education programs aim at making the organization a market leader. Thus, SportUNE is an analyzer because her strategic plans target a strong position in the recreational service and product market. Market and Industry Attractiveness a. Macro Analysis The demography has effects on the SportUNE because if more people are victims of HIV/ AIDS, it is likely that few people will use the recreational products and services. Furthermore, people divert resources from SportUNE to healthcare centers while seeking for medication. Accordingly, regular exercises such as gym are culturally and socially vital because they keep one young and active. Economically, if the country experiences inflation, the purchasing power of unit money reduces, which implies only a few individuals can access internet information or pay for the sports facilities and services. Naturally, the changes in weather conditions determine the number of participants in a specified game. Here, the main challenges are HIV/AIDS susceptibility, high cost of living and uncertain changes in the weather conditions. In contrast, the sports activities help people stay physically fit. b. Micro Analysis In the sport market, SportUNE has a brand name that sells it to customers and the use of the appropriate facilities plus thorough help it to have a competitive advantage; thus, the organization has in place efficient and effective people, systems and process. Secondly, the research sectors and the study programs help the firm to have clear understanding of the needs of its clients. With the cost reduction mechanism through discount system, it means that SportUNE has clearly identified its targets customers. Moreover, the customers can have drinks such as coffee, which indicates that SportUNE can penetrate and grow in the beverage market segment. In this sector, the challenge is lack of a clear business model. Market Research Methods 1. Survey This organization should conduct a survey to identify the prevailing market patterns, which enable it to provide customers with goods and services that meet their needs. Accordingly, the past consumer data does not give a better picture of future customer behavior. Fortunately, the survey method gives more weight to current consumer behavior, which enhances accuracy of forecasted sales and market size. The questionnaire should contain information such as: a. What is your gender? A. Male B. Female b. Which is your age? A. below 18 years B. Between 18-25 years C. 25- 40 years D. Over 40 years c. Tick your form of employment (employed, un-employed, self-employed) and indicate your gross income. d. On a scale of 1-5, how can you rate the facilities and services of SportUNE? e. Which are the areas you can recommend or advise SportUNE to improve on? 2. Observation Importantly, the organization can combine survey with observation because observation involves getting first-hand information. This is essential since it means that one collect data of what people actually do; hence, one makes an informed decision. Promotion and Distribution Policies Firstly, promotion policies enable the organization to offer a 10% discount to its members for any member they refer. In addition, the students have a higher advantage because they enjoy a 20% discount. Jointly, the two discount systems help retain loyalty of the established customers. On distribution policies, SportUNE is independent because it mainly provides clients with its services and products. Segmentation and Targeting The organization has divided its market into unique customer sets although the customers share common needs. For example, there exist precise collection of clients in the volleyball pitch, football field; children play field, swimming pool and athletic field. The major groups of the consumers are students versus the community where the students subscribe at a lower rate. However, all the clients need is the satisfaction one obtains from the recreation facilities and services, which is the organization mission. Differentiation and Positioning The SportUNE products and services have differentiated attributes such as low price, high quality, branded name and a range of products to meet the various expectations of the many consumers. Consider, for example, the subscription rates of SportUNE are lower than the corresponding rates of the University of Western Australia. Secondly, the customers make their choices out of a wide range of products. Therefore, the two main attributes, low cost differentiation and better range of experience, enable positioning of goods and services so that SportUNE is responsive to changes in consumer tastes and preferences; the organization can identify and utilize opportunities while maintaining a competitive advantage. References Adler, M. (2010). A structural analysis of the German web design industry by using the model of Porter’s five forces. Munich:GRIN Verlag GmbH. Clemente, M.N., & Greenspan, D.S. (1998). Winning at mergers and acquisitions: The guide to market-focused planning and integration. 1st ed. United States of America: Wiley. Day, G.S. (1984). Strategic market planning: The pursuit of competitive advantage. West Group. Griffin, R.W. (2013). Fundamentals of management. 7th ed. United States of America: Cengage Learning. Leach, J.C., & Melicher, R.W. (2011). Entrepreneurial finance. 4th ed. United States of America: Cengage Learning. Magretta, J. (2011). Understanding Michael Porter: The essential guide to competition and strategy. 1st ed. Cambridge: Harvard Business Review Press. Schwarz, E., & Hunter, J. (2011). Advanced theory and practice in sport marketing.United States of America: Routledge. Singh, D.A. (2009). Effective management of long term care facilities. 2nd ed. United States of America: Jones & Bartlett Learning. SportUNE University of New England. (n.d.). Find your balance.Retrieved from www.sportune.com.au. SportUNE, University of New England. (2012). SportUNE strategic plan 2012-2016. Australia: SportUNE, University of New England. Thompson, J., & Martin, F. (2010). Strategic management: Awareness & Change. 6th ed. Nashville, Tennessee: South-Western Publisher. Vitolo, D. (2013). Porter’s five force model’s international strategic effectiveness. Florida:David Vitolo Publisher. Read More