Marketing Plan for the Victorian Thoroughbred Racing Industry - Case Study Example

Marketing Plan Victoria Racing Marketing plan Table of Contents 3 1.0 Executive summary 3 2.0 Situation analysis 3 3.0 Market summary 4 3.1 Demographics 4 3.2 Market needs 4 3.3 Market trends 5 3.4 Market growth 6 4.0 SWOT Analysis 7 4.1 Strengths 7 4.2 Weaknesses 8 4.3 Opportunities 8 4.4 Threats 8 5.0 Competition 8 6.0 Positioning 9 7.0 Key to success 9 8.0 Critical issues 9 9.0 Marketing strategy 10 9.1 Mission 10 9.2 Objectives 10 9.2.1 Marketing objective 10 9.2.2 Financial objectives 11 9.3 Target markets 11 9.4 Marketing mix 11 9.4.1 Product 11 9.4.2 Price 12 9.4.3 Promotion 12 9.4.4 Place 12 10.0 Market research 12 11.0 Financial 13 11.1 Break-even Analysis 13 11.2 Sales forecast 13 11.3 Revenue forecast 14 11.4 Expenses forecast 15 12.0 Control 15 13.0 The implementation 16 13.1 Activity plan 16 14.0 Marketing organization 16 14.1 Contingency planning 17 15.0 References 18 1.0 Executive summary The Victorian Thoroughbred Racing Industry was registered in December 2001 and with an immediate effect it highly assumed the responsibility of being the principal authority across Victoria which was initially held by Victorian racing club. Today, this industry is considered as the peak body for thoroughbred racing across Victoria and larger part of Australia. Further, the industry is a key global player to various entrainment, sports as well as wagering market. The success of an industry is recognized by its ability to contribute to a country economy, Victorian racing is not left out it is considered to be a key employers and chief contributor toward Australia economy (Racing Victoria 2011). Victorian racing was created with the support of various racing industrial entities, racing clubs and the incorporation of the state as a way of providing it with independent governance. Victoria racing is highly committed to ensure that it is involved in international racing participation throughout its calendar. The management believes this will be achieved by way of offering strategy synchronization and standard scheduling with the larger part of international racing. Further, the industry entails to have a full investigation of various challenges that surrounds international racing (Racing Victoria 2011). 2.0 Situation analysis In the past decade, it is evident that wider landscape within Australia is changing dramatically in the racing industry. Clearly, wagering on racing and sport is no longer viewed as sole domain within the sporting industry. Globalization and increased improvement in technology has change the Victorian environment in racing (Bly 2010). It is because of this that Victoria racing perceive to come up with an opportunity to expand its popularity and become the sole entity for both entertainment and sport. Basing on the global scale, Australia as a country is considered to have more racecourses as compared to any other nation across Europe. Considering all sporting activities across Australia, racing is the third spectator sport right after rugby and football with an approximate value of three hundred and sixty registered races in 2009/2010 sporting calendar (Bly 2010). 3.0 Market summary Clearly, time zone defined in Australia provides various opportunities which ensure that there is effective delivery and exchange of several Victoria racing within global markets especially focusing on Asia (Cohen 2006). The sporting calendar especially that in conjunction to racing event ensures there is constancy in supply of quality activities in all Australian markets. 3.1 Demographics The most key market segment within Victorian racing is larger racing organizers especially those in Australian larger cities such as Sydney and Melbourne (Cohen 2006). Clearly, involving these companies will ensure that activities by Victoria racing is recognized locally thus broad focusing on both market forum and research. This industry is perceived to be at a position of addressing management constraints as well as opportunities that may be reflected in new markets and their segments. 3.2 Market needs Since Victoria racing target market is purely an entry level racer, the most fundamental need is service, price and availability. Main points of racing industry are to widely focus on target segments and understanding their needs. It is evident that when defining a new market within a sporting industry, there is entire need of this industry to recognize the need for a highly powered expertise (Gelder & Woodcock 2003.). Establishing of a perfect event is essential and this is achieved by way of evaluating event organizer merits and demerits as a way of selecting and opening new event channels. In Victoria management circles, potential clients visit them to offer temporary expertise. It is good that they realize that the full cost of obtaining highly powered expertise is expensive therefore their involvement enables the organization to channel other cost to other key areas. 3.3 Market trends Within Victoria racing trends are considered to be in its favor. Firstly, since the introduction of racing in Victoria explosive and tremendous growth have been experienced. Most researches attributes that this growth is mainly due to media coverage on various racing activities. Further, this coverage exposes many other potential participants to this specific sport Gelder, D & (Woodcock 2003). In addition, the past decade the racing industry has experienced an approximate 25% growth in its participant population. Clearly, as the population in the racing sport industry increases, it is obvious that more available customers will be made available for Victoria racing. Finally, the aging baby boomers have dispatch duties to the new generation who is the largest target market within the sporting industry. The racing sport form acts as a fundamental activity in their daily operation. The table below shows market trends within Victoria racing: Racing Attendances, Victoria: 1999–2003 Metropolitan Country Total Country share (per cent) 1999 435,293 161,361 596,654 27 2000 495,815 135,322 631,137 21 2001 468,242 152,962 621,204 25 2002 495,483 142,664 638,147 22 2003 502,150 156,525 658,675 24 This clearly indicates that there is tremendous increase in those individuals that attend racing activities within Victoria. 3.4 Market growth Research indicates that there is tremendous growth in the racing activities. The graph below shows the percentage of market growth from the year 2005 including the expected percentage growth in the year 2012. EXPECTED MARKET PERCENTAGE MARKET GROWTH 4.0 SWOT Analysis Victoria racing has well predesigned strengths that enable them to remain as the market leader. Further, Victoria racing will describe its weakness, opportunities and threats (Pride & Ferrell 2011). 4.1 Strengths Victoria racing management is highly committed towards a result oriented approach in attracting many participants to their events Companies have a well established structural organization that ensures that all participants enjoy the various sporting activities in their annual calendar Various racing activities are not only structured to entertain but rather they act as key elements that boosts health of participants 4.2 Weaknesses The industry is an able to come up with a comprehensive budget that will sustain a larger group of participants in the coming years The lack of management in partnerships with other racing clubs may create a problem especially when there is need to provide services to a pool of participants 4.3 Opportunities Racing sporting activity is becoming famous within Australia thus attracting a lot of participants Due to increase of diseases such like obesity that are caused by lack of exercise, people are now realizing the importance of engaging in racing as part of their daily exercise 4.4 Threats With the current global recession and decrease in economic growth have led to downward trend in the growth of the racing and sporting industry Although, a variety of sporting activities such as football and rugby offered by key competitors is considered small it may result to more problems in future 5.0 Competition Victoria racing understands that for effective growth within their industry there must strategize on how it will be a market leader against their competitors. Their many participants understand that the concept of service delivery and event availability defined a competitive advantage compared to other racing clubs (Pride & Ferrell 2011). It is beyond reasonable doubt that Victoria main competitors are those industries in larger cities such as Melbourne and Sydney as opposed to those industries in smaller cities. This is indicated by the fact that participant want to engage in a long term sporting activity as opposed to those industries that offer short term ones. At this point, the participant does not consider price involves but rather the kind of benefits he will obtain in engaging in such a sporting activity. 6.0 Positioning Victoria racing is focusing on positioning thoroughbred racing as a conventional sport and a broad entertainment understanding of alternative. This will be achieved highly by way of involving several global audiences as well as creating a wider appeal to a broad of local entities. In addition, it will focus on unifying promotion of thoroughbred racing by researching on various industrial patterns (Miller & Grazer 2002). Position will be extended to ensuring that broad international visibility for racing is emphasized. Finally, positioning will be achieved by way of presenting sport as more existing, accessible and persuasive not forgetting wagering as a main element. 7.0 Key to success The company ensures that it develops visibility as a way of generating new business leads Its continuous leveraging from a sole pool of expertise to that of a multiple generation of revenue, market research and by coming up with comprehensive reports. 8.0 Critical issues Critical issue surrounding this company ensuring that products and services offered satisfy the customer. There the company has established various strategic mixes that ensures excellence service delivery that is coupled with good communication and a well designed scope. The company ensures that it uses different strategies from their competitors as a way of remaining the sporting and racing market leader. 9.0 Marketing strategy Marketing strategy is defined as focus. The company strategy widely entails focusing on certain specific area of expertise. For instance, it focuses on global geographical markets defined by various services and products segments (Miller & Grazer 2002). The target customer is considered as those individuals who support the company not only in participating in various supports but also giving of advice. 9.1 Mission Through our people, Victoria racing will; Focused on a continuous success and growth of the Melbourne cup carnival Continuously develop racing events to be world class racing calendar throughout the year through total delivery of quality, entertainment and integrity 9.2 Objectives 9.2.1 Marketing objective Deliver best marketing practices both locally and internationally Improving on the standard of customer experience Leveraging all opportunities not only in Victoria but also beyond 9.2.2 Financial objectives Optimizing on economical benefits through setting a financial margin of revenues costs, liabilities and asserts thus increasing profitability margin Establishing a gross margin that is higher than 80% 9.3 Target markets The company target market is and of itself strategic. Not only is the organization of satisfying event participants but also those who are starting out and more likely may become potential buyers (Miller & Grazer 2002). Our main target market is young people since there more energetic and therefore suited to engage in such racing activities. Other than that, most extra activities incorporate family which they use as a family fun activity. Finally, spectators are very important since they further define the company target segment. 9.4 Marketing mix Victorian racing has its own designed market mix components. Market mix is defined by the 4Ps namely price, product, promotion and place. 9.4.1 Product The company is ensuring that it remains the market leader in the creation of global leading racing asserts and services. With the current rapid change in environment, Victoria racing has incorporated the use of new technology in developing its products and service delivery. Various services that are been held by this organization includes; annual national championship series, Australian champion versus world bets racers, summer night racing and entertainment and extreme racing which comprises of super speed activities (Miller & Grazer 2002). Services offered act as major component in the company marketing mix. Our services act as a tool of advertisement. Services offer assists in shaping up of Victoria racing markets. 9.4.2 Price The company has ensured that all services and products have been adequately priced. From our positioning, it is clear to state that our finances and demand require higher pricing. It is evident that when a service is within our expertise, there is a possibility of higher pricing. As a result, our customers will ultimately spend less on branded services. 9.4.3 Promotion Victoria racing has focused in using internet, magazines, newspaper, television and radio as the main medium of advertisement. In addition to this, various brochures are distributed as a way of creating awareness in the market about the various services delivered (Miller & Grazer 2002). 9.4.4 Place Victoria racing is place of choice is one which offer the country racing activities the best experience ever. Situated 150 km from Melbourne, the company ensures it utilizes all the surrounding landscapes so as to ensure that it provides comfortable surroundings to its customers. 10.0 Market research Currently, it is quite evident that the market defined by sporting racing products and services is constantly expanding. Generally, it is estimated the general growth of racing market is about 70% where this percentage continues to grow annually. This estimate has been done from analyzing the following events; annual national championship series, Australian champion versus world bets racers, summer night racing and entertainment and extreme racing which comprises of super speed activities (Kurtz 2007). 11.0 Financial 11.1 Break-even Analysis For the company break-even analysis there is an assumption that running cost will be of an approximate figure of $7,000 per month which will comprise of utilities, rent, payroll as well as other running costs (Kurtz 2007). Basin on a 40% margin, the company focuses at selling about $ 30,000 per month so as to break evenly based on our initial assumption. The company sale forecast indicates that the company monthly sales are expected to be greater as compared to the break-even point. 11.2 Sales forecast Sales Forecast (3 Years) Victoria racing Year 1 Year 2 Year 3 Participants 25, 000 100,000 300,000 Price $ 1,225,000 $ 4, 900, 0000 $ 14, 700, 000 Others: Sales of training equipment (20% growth each year) - $35,000 $42,000 Total Revenue $1,225,000 $4,935,000 $14,742,000 11.3 Revenue forecast 11.4 Expenses forecast 12.0 Control The purpose of the Victoria racing market plan is to act as a guide to the firm in its expansion prospects. The following areas will be tracked to gauge the firm’s performance (Peisley 2004). Customer costs Customer satisfaction Advertisement costs 13.0 The implementation The firms identify the following as the key milestones in their marketing program. The out lined goals have to be followed closely. 13.1 Activity plan Activity Jan Feb. March April May June July Aug Sep Oct Nov Dec completion of the marketing plan X Internet advertising X X X X X X X X X X X X Dailies and yellow pages X X X X X X X X X X X X Event marketing X X X Group business marketing X X X X X X X X X X X X Direct mail marketing X X X X X X X X 14.0 Marketing organization Victoria racing will in collaboration with the staff be responsible with the marketing planning. 14.1 Contingency planning Difficulties and risks are anticipated along the way as the firm implements the plan (Moutinho 2000). These include: Difficulties and challenges in the generating of visibility Development of appropriate software for the internet advertising Encountering an immature market which is not ready to comply with the efficiencies of the firm will offer through the internet Inadequate capital to facilitate the prospects and marketing strategy Having to dispose off some of the assets to cover for liabilities. 15.0 References Bly, R. 2010. The Marketing Plan Handbook: Develop Big-Picture Marketing Plans for Pennies on the Dollar. Retrieved on 4th May 2011 from http://www.worldcat.org/title/marketing-plan-handbook-develop-big-picture-marketing-plans-for-pennies-on-the-dollar/oclc/535686418 Cohen, W. 2006. The marketing plan. Hoboken, New Jersey: J. Wiley. Gelder, D & Woodcock, P. 2003. Marketing and promotional strategy. Cheltenham: Nelson Thornes Racing Victoria. 2011. The Victorian Thoroughbred Racing Industry. Retrieved on May 5, 2011 from http://www.racingvictoria.net.au/p_Industry.aspx Kurtz, L, 2007, Contemporary Marketing: Thomson South Western. Miller, A, & Grazer, W, 2002, 'the north american cruise market and australian tourism', Journal of vacation marketing, vol. 8, no. 3, pp. 221-34. Moutinho, L, 2000, 'consumer behaviour', in Strategic management in tourism, ed. L. Moutinho, CABI Publishing, Glasgow. Peisley, T, 2004, 'crystal cruises: picking the higher ground', International cruise & ferry review, pp. 60-2. Pride, W & Ferrell, O. 2011. Foundations of marketing. Mason, Ohio: South-Western Cengage Learning . Read More