Strategic Marketing for the Sport University of England - Case Study Example

Student’s Name Student’s Number Unit’s Name Coordinator’s Name Word Count: 4006 Introduction Among the Australian best university sporting precincts, SportUNE highly ranks on the list. The Sport University of England holds a positive public image because of its flexibility, variety and numerous new sport and sport-related facilities and services. Indeed, the University atmosphere is friendly and supporting; thus, one gets value for his or her cash. It is worth mentioning that the staffs professionally and ethically respond to client enquiries to facilitate meaningful decision-making. With a clear communication system, the management team ensures that customers access the organizational products and services 24/7; hence, convenience. This ensures that you can access the organizational products and services at your own will and time. Since the strategic plans of the University is to engage the community through interactive facilities, its programs enable individuals achieve healthy, balanced and happy lifestyle. Additionally, the organization has created a forum where its clients can share about their experiences with the staffs, make enquiries and pose suggestions. The membership subscriptions can be monthly, quarterly, half-yearly or even annual for both students and the rest of the community; thus, the facilities meet the varying needs of its stakeholders. Importantly, the membership has no hidden fees; thus, guaranteeing one transparency and accountability. As a way of exercising corporate social responsibility, the organization helps deal with up-to date facilities as well as share costs with its customers by offering various packages of discounts. Further, it allows members to hire its courts at a pocket friendly price. Accordingly, the SportUNE facilities comprise of the playing fields, swimming pool, crèche, indoor climbing wall, café, multipurpose halls and badminton courts. The firm also has squash courts, group fitness rooms, tennis courts and Bellevue grandstand. In such areas, one can play basketball and netball, take gyms, hold workshops or even swim. New Idea Selection for SportUNE Promoting its Products through Health Advice Sporting activities attract a large number of people that cuts across all ages. One of the ways a sports organization can market itself is through working with large corporations to help them promote their products and services. Such corporations would include those firms that sell water or the ones that advice the public on healthy eating and regular exercise. In such situations, the sports organization does not only market others’ products, but also show a concern for people’s health; thus, indicating corporate social responsibility. In this discussion, the writer suggests that SportUNE adopt the strategy of offering tips of healthy lifestyle. Essentially, it assists the corporation in winning the public loyalty that leads to a broader customer base. Product Life Cycle The product life cycle (PLC) is a marketing concept that explains the stages through which a consumer product passes from the time one thinks of it until the time the product is no longer in the market. However, one may come across products that do not reach the final stage and instead they continue growing or rise and fall (Nykiel, 2003). The product life cycle consists of mainly five stages namely the: i. Introduction stage This is the first stage where the consumers are unaware of the product existence. Here, the company experiences high outlay because of the small size of the available markets as well as the expertise it has used in developing the new product. Indeed, the firm has to conduct customer testing, advertising and promotion, which exponentially increase the cost. ii. Growth stage Progressively, the sales volume increases implying rising profit margins. Luckily, the corporation can enjoy economies of large scale; hence, can invest more money in promotional activities to help maximize the efficacy of this stage (Patterson, 2009). iii. Shake-out or competitive turbulence The growth rate increases at a decreasing rate though the sellers highly price their product. One can attribute the slowing growth rate to the exhaustion of the available opportunities (Nykiel, 2003). iv. Maturity stage Apparently, in this stage, the sellers devise mechanisms of maintaining the market share individuals have built since the product has fully established, which explains why the net adoption rate holds steady. Hence, firms have to consider the presence of product improvements and modifications to ensure they gain competitive advantage over their competitors. v. Decline stage The market for a company’s product starts to shrink possibly because all consumers who wished to have the product have already purchased or consumers’ decision to switch to other products. In this stage, a corporate’s product may have to disappear from the market. However, some products may fail to reach this stage and instead experiences sequences of falling and rising growth rates. Notably, once some companies reach this stage, they switch to cheaper markets and affordable technology of production. Stage at Which the New Idea for SportUNE fits The new idea for SportUNE fits in the growth stage because the consumers are aware of such programs but the market potential is underutilized. It is important to note that the product could become readily available to the customers and sales progressively increase if the organization were to implement the idea. New Market Entry In this case, the SportUNE organization would consider reducing the product cost. The firm has to ensure that it aggressively and regularly promotes it facilities by taking advantage of other organization’s platforms whenever it promotes their products such as why people should consume large amount of water and not fancy liquid and the testimonies of sportsmen who have been feeding on balanced diet and not chunky foods. Importantly, SportUNE should continue availing quality products and services to their clients, but at a reduced price. As earlier discussed, the firm already has the latest technology; thus, it can provide consumer with quality services. Precisely, the health tips end with a mention of the SportUNE sports and sport-related products and services. Consequently, the firm will be in a better position of creating a greater customer base that makes it to have a large customer share in the sports market. Market Entry Strategy for SportUNE as a Follower When the SportUNE organization decides to enter the market, it automatically becomes a follower and not a pioneer. The idea does not originate from SportUNE as other firms have already adopted it. The second factor is that, from the above discussion, the idea is in the growth stage, which means that someone has already introduced it. One of the strategies that SportUNE will adopt while acting as a follower is the cost reduction strategy. The strategy is useful and vital because it helps many businesses create awareness of their existence or arrival as well as entice consumers to switch to those firms offering goods and services at lower price. Here, SportUNE may decide to produce health and sport articles and sell them at a lower price. Alternatively, SportUNE would offer some health services through health organizations and inform its clients of reduced rates in its quality facilities. Secondly, SportUNE could improve the existing products or services with an aim of targeting particular niches or segments; thus, reaching new market or geographies. From history and life experience, many people ignore children’s sports and sport-related activities, which are only available in functions such as conferences and agricultural shows. The SportUNE can aim at producing articles related to children health as well as their leisure activities. According to Paley (1999), a considerable proportion of guardians are ready to purchase many products or services that make their children happy. Sometimes, adults encounter challenges whenever they have their leisure times because their young siblings and children cannot enjoy theirs toodue to absence of children products (Paley, 2000). Therefore, by winning the children’s loyalty, SportUNE is certain of receiving accompanying guardians, relatives and friends. Evidently, the above two strategies, cost reduction and improving services and products, are vital tools for SportUNE towards achieving a large market share in the sports industry. The Growth Strategies of SportUNE as a Follower SportUNE has potential resources that it can use to beat the existing competitors such as the University of Western Australia. It is worth mentioning that the SportUNE firm will not incur initial costs because it did not take part in the innovation nor research and development of the idea; thus, a saving. Another note is that SportUNE can take advantage of the pioneer’s limited resources, learn from the pioneer’s marketing and product mistakes, and adopt the latest technology (Stevens, 1982). Therefore, by meeting the varying tastes and preferences of the children’s niche, the institution succeeds in the late entry. Evidently, the existing pioneers are not exemplary performing neither are they sufficiently meeting the clients’ needs. Accordingly, SportUNE is in a position of using the appropriate technology that enables it to enjoy from the economies of large scale as well as produce quality services and products and sell them at an affordable price. Consider, for instance, the organization can produce articles related to benefits of consuming large amount of water at the expense of consuming fancy drinks. The article distribution can take place at a cheaper price than those of the existing competitors; thus, SportUNE creates awareness of its products and services as well as easily penetrate more into the market. Apparently, it follows that SportUNE should employ the growth strategies of frontal attack and flank attack. i. Frontal attack The technique involves the use of discount systems possibly due to economies of large-scale production or desire to penetrate in the market. As earlier noted, the SportUNE has incomparable research and development sectors that are full with competent persons, which suggest that the organization can carry out the appropriate market research. The findings of such a research are useful in making an informed market-related decision. The presence of the modern technology in the organization provide an insight of the likelihood of the organization producing health articles at lower operating costs than their counterparts. In addition, SportUNE has a competitive advantage of distributing its literature to customers at a lower price, which increases the client base. Furthermore, it implies that the SportUNE vulnerable competitors who do not have the right resources are least likely to withstand that face of stiff competition. ii. Flank attack This criterion requires a firm to have sufficient resources so that it can effectively penetrate into the product market. Here, it is evident that SportUNE has adequate resources of land, labor, management and technology that it can use to meet the diverse needs of its clients. Importantly, the firm alerts the public of its offering and wins people’s loyalty. Eventually, the society realizes that SportUNE cares of its health; thus, establishes a relationship with such a caring organization. In view of this, the SportUNE avails information relating to sports and individual health particularly that of children. Nizam (2014) says that many firms that provide sports and sport-related facilities have neglected providing for kids; thus, SportUNE will exploit the new segment that other brands have not exhausted. From SportUNE website, it is evident that this firm has a large children and adult playground, appropriate technology and able and willing personnel; hence, it will be in a better position of withstanding direct competitor’s attack. Strategic Implications of the Product Life Cycle Each stage of the product life cycle has associated strategic implications. In this literature, the writer will only consider the strategic implications in the shake-out, mature and declining stages. a. Strategic Implications of Product Life Cycle in the Shake-out Stage One of the strategic implications in this stage is the decreasing number of competitors and the reducing profit margins probably because of the diminishing number of available opportunities. Another point is that the product growth rate in the market stabilizes, as there is limited technical change in the product design while the product niches fluctuate from few to many and vice versa (Luther, 2011). Rudd (1987)has added that some of the strategic options available are transition and competitive advantage with an aim of improving the current market position.The strategy of transition involves moving from the growth stage to the mature stage while competitive advantage adopts the idea of acquiring at a low cost and may be selling at a higher rate. Alternatively, the firm can reduce price and rise promotion activities with a view of building a large share in the market. SportUNE has research and development department as well as modern facilities; thus, it can produce at a lower cost than its competitors can. Besides, SportUNE has the potential of enjoying the economies of large-scale production. Aggregately, these account for the competitive advantage. Alternatively, many businesses may exploit the idea proposed; thus, forcing the weak firms to shut down. Besides, the growth rate may be rising but at a declining rate because of concentrated competitors and difficulties in the product differentiation. Therefore, SportUNE would consider its product progressing into the maturity stage; thus, transition. b. Strategic Implications of Product Life Cycle in the Mature Stage In this stage, the strategic implications include high profits usually for market leaders, moderate flow of cash and low investment. The main aim of a firm’s product in this stage is to maintain the position it has already acquired (Kendrick, 2006). The strategies that need to be in place include market expansion that involves developing a differentiated product that focuses on the underdeveloped or untapped market segments. Secondly, the option of increasing market penetration is vital as it entails adding value or features to a product; thus, increasing its primary demand. The third strategy is the extended use, which encourages various uses among the present users. Thus, concentrating on the product features, holding or selectively reducing the price and experiencing customer satisfaction and loyalty will always foster maintenance of the acquired market share(Rudd, 1987). Some of the appropriate strategies to use for SportUNE are product features development and extended use. Essentially, paying close attention to a product feature implies that the SportUNE customers get the value of their cash by experiencing customer satisfaction. Furthermore, from the customers’ experience dashboard, it will be easier for one to tell that the firm has won the customers’ loyalty. In the second strategy, SportUNE entices its clients to continue using its products and services. Regularly, the SportUNE information strikes the consumers’ minds, which drive them towards acquiring the organizational products and services. c. Strategic Implications of Product Life Cycle in the Declining Stage The characteristics of strategic implications in this stage are low profitability, few competitors, few segments and negative market growth rate. In the declining stage, the strategic options available are harvesting, niche, profitable survival and maintenance. The profitable survivor strategy involves increasing the share of the declining market; thus, forcing the weak competitors to liquidate their business operations while the niche criterion requires the producer to strengthen his or her position in the segment(s) that has or have potential for perpetual gains. Precisely, the niche strategy gears its effort towards developing a competitive advantage in the selected segments. On the other hand, the harvesting mechanism necessitates the firm to maximize its short-term cash flow regardless of whether it will have hazardous impacts on its product market share whereas the maintenance method advices that the business enterprise should consider maintaining its market share even if it is at the expense of its profit margins. In relation with the proposed new idea and the SportUNE offerings, the enterprise should prioritize the niche and maintenance strategies. It is important to note that once SportUNE wins the customers including the kids, a criterion that would help it to continue experiencing gains while maintaining its customers’ base is the niche strategy. The strategy particularly targets children whose sporting facilities are rare in many recreational regions. One should remember that the SportUNE awareness campaigns have the effect of encouraging guardians to live healthy lives while ensuring the health safety of their kids. The second strategy of maintenance accounts for a consistent market share in the sports market. As earlier pointed out, the use of SportUNE owned articles would not only attract the children, but also adults. Thus, the gains from the increasing number of adults and young clients will have an effect of neutralizing the outflows that SportUNE may incur in the due process of maintaining its current market share. New Economy Markets New economy markets entail significant participation in the electronic commerce (e-commerce) and internet. In such markets, the telecommunication systems allow the development and distribution of hardware and software products (Greenberg & Kates, 2013). In this digital market, SportUNE should consider employing at least two strategies. Firstly, it should switch its focus from profit maximization to customer lifetime value. The vital thing about this strategy is that it does not only consider acquiring customers, but also retaining them. Greenberg and Kates add that, for the strategy to be effective, it requires the cooperation of all concerned stakeholders; hence, realizing the consumer in-depth satisfaction. The second strategy is that SportUNE ought to categorize its products according to the customer segments since the needs of individual segment are unique. Here, the firm capitalizes on the potential advantages such that it exploits the possible opportunities to experience optimal gains. Logically, one can deduce that the digital market for SportUNE product and services implies 24/7 availability of plentiful information to consumers; thus, convenience and enhanced accessibility. Additionally, it creates a platform where SportUNE stakeholders can share information with like-minded people.The SportUNE management team can collect the data from the avenue relating to customer experiences of its products; thus, employing the appropriate corrective mechanism in case of any deviation. Harry (2014) states that digital marketing is cost-effective to both the seller and the buyer since it reduces distribution and search-related costs. Globally, the SportUNE digitized products and services reach consumers. Moreover, SportUNE can promote its products and services over a wide geographical region, but at a reduced cost. Organizational Structure An organizational structure represents the arrangement of the top, middle and low levels management team. In any organizational, the prevailing structure should allow a two-way communication system; thus, the span of control is a vital factor in determining firms’ structures. In the following diagram, the black (single pointing) arrow lines indicate an organizational hierarchy in an increasing order of management level or rank. On the other, the blue (two-arrowed-lines) lines suggest that there should be effective communication among the various management levels (Laurie, 2006). Laurie has added that the communication process in an organization should be effective both horizontally and vertically. Otherwise, the structure may obscure the communication of the organizational mission and vision statements. Figure 1, a diagrammatic representation of organizational structure and business communication system. Matrix Organizational Structure One of the common organizational structures is the matrix business structure, which is a hybrid of functional and divisional structures. This means that in a matrix organization, the departmental groupings occur on the grounds of individual roles such as marketing, sales and production (Stevens, 1982). In addition, the structure allows its operations to spread over large geography. Thus, matrix structure ensures that businesses better the services and it services cover particular segments (Loft, 2012). Rapidly, the structure meets the consumers’ specific needs. Unfortunately, the structure is likely to experience a number of challenges because of the redundancy that stems out of duplication of roles. For instance, an organization will have a divisional manager and a functional manager working at the same level and possibly covering the same managerial territory (Stevens, Loudon and Nykiel, 2003); hence, wrangles for power and superiority. Apart from many areas of the organization having dual management, confusion is likely to emerge because of the ambiguous communication channels. Sometimes, an employee may receive orders from both the divisional and the functional managers relating to performance of a particular duty (Ferrell & Hartline, 2012). Such an employee may have other responsibilities; thus, confusion. Fortunately, the merits have always surpassed the demerits. Marketing Plans The SWOT Analysis of the Proposed Idea a. Strengths In its operation, SportUNE has competent, willing and able staffs who professionally handle the clients. In addition, the staffs are aggressive; thus, maximize their efforts towards the achievement of the organizational goals. In fact, the employees work as a team because they understand the power of synergy. Secondly, SportUNE has modern facilities and regularly updates its site with informational helpful in decision-making. The third strength is that the organization adopts the use of the latest technology, which guarantees the consumers of quality products and services as well the firm produce at a lower cost; thus, can offer promotions, gifts and discount systems. Over and above, if SportUNE registers a large number of members, it has sufficient recreation land. b. Weakness As a follower, SportUNE has to employ expensive methods of penetrating into the market of distributing health and sports related literature. Some pioneers have already won the loyalty of the public by using the above criterion; thus, SportUNE must be ready to incur extra expenses of creating awareness. c. Opportunities The current century dictates that business should ethically conduct themselves through responsible practices. The involvement of SportUNE in creating awareness of healthy living is an indication of the organization concern regarding the community welfare. This is essential in maintaining a positive public image. Another opportunity is that the SportUNE articles will not only cover information useful to adults only, but also to children and youths. Additionally, the research and development sectors assures the organization of participating in production activities that are in line with the consumer varying needs as well as meeting the increasing demand. Of importance, the organization has digitized its operation; thus, it will actively engage in e-commerce. d. Threats Some businesses may decide to follow the suit of SportUNE while the existing may lower their prices; thus, depriving SportUNE of its customers. When the corporation uses internet to market its new product, some people may post negative comments that may taint the reputation of SportUNE (Anderson, 2012). Contingency Plans These processes help a firm to prepare coherently for positive response towards occurrence of unplanned events. One strategy SportUNE would consider incorporating in its contingency plans is the risk assessment. Here, SportUNE identify the risks plus their associated sources and then develop an appropriate mechanism such as hedging and insurance for mitigating the said risks (Wilson & Gilligan, 2009). The other strategy is training because it psychologically prepares the activation personnel; hence, enabling recovery of lost data, processes, people and systems. Occasionally, the specialists enhance procedural control that can detect and report a deviation. Notably, delegation of jobs and multi-user and centralized facilities have proved to aid in contingency plans. Marketing Metric and Market Audit The marketing metric appropriate to the proposed new idea is the metric of market share. This discussion has been revolving around SportUNE establishing a broader customer base. It is important to note that SportUNE uses health and related information to win loyalty of potential customers as well as to force the weak competitors to exit the market. In addition, SportUNE wishes all public members to have experience of its modern facilities and services of its competent team. Another note is that the research and development sector tirelessly work to help the organization in achieving its mission of engaging the community, which implies a larger market share. Evidently, SportUNE is likely to get a bigger market share. Successful corporations such as SportUNE should conduct ethics audit. In such cases, the companies scan the market environment with an aim of establishing the existing moral standards as well as filling the gaps. Therefore, ethics auditing process ensures that the firm creates a culture of ethical business leadership that includes accountability, teamwork, setting SMART goals and the use of appropriate technology (Baker, 2000). Apparently, the new idea actualizes and brings short-term and long-term gains to SportUNE. In conclusion, the proposed idea is viable. From the SWOT analysis and market audit, the idea leads to an increased market share. Deductively, the SportUNE structure can accommodate the new proposed idea because the idea is line with the corporation strategic planning. Therefore, SportUNE would consider implement the concept to realize a higher share in the sports and sport-related market. References Anderson, D.W. (2012). Strategic marketing planning for the small to medium-sized business writing a marketing plan. New York: Business Expert Press. Baker, M. (2000). The strategic marketing plan audit. London: Financial Times Prentice Hall. Ferrell, O.C., & Hartline, M. (2012). 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