Promotion of Tough Mudder Pty Ltd Sports Products - Business Plan Example

TOUGH MUDDER EVENT By Student’s Name Course + Code Class Institution Date Contents 1.0 Problem Definition 3 2.0 Literature Review 4 3.0 Data Collection and Findings 6 4.0 In Depth Action Plan of the Promotion of Tough Mudder Pty. Ltd Sport Products 10 5.0 Action Plan 11 5.1 Target market 12 5.2 Communication 12 6.0 Analysis 13 6.1 Advantages of the Promotion Strategy 13 6.2 Disadvantages of the Promotion Strategy 14 7.0 References 16 Tough Mudder Event 1.0 Problem Definition Tough Mudder Event 2016 will be taking place in Melbourne in Victoria. This event is organized to take place in various venues which are set to present different obstacles to the participants including electricity, fire among other forms of fear triggering features. In 2016 event, the activity is set to include village challenges to incorporate culture into the event (Broadford, 2014). As a matter of fact, the event will be managed by Tough Mudder Pty. Ltd. stationed in Victoria. This event will be taking place between 19th and 20th of October 2016. The event involves some stakeholders who will be brought together to attain a common goal. These includes the spectators who are responsible for providing funds for preparation of the event through purchase of the tickets, participants in the game who will be taking on the challenges presented by the game and can either be solo participants or corporate teams and the Tough Mudder Pty. Ltd. which is responsible for organizing the event in the three Australian states (Broadford, 2014). The sponsors for the event include Soldier On, Coates Hire, Under Armour, Bosch Blue Power Tools, and Garmin Australia. The marketing of the event presents a challenge to the success of the event in various aspects (Achrol and Kotler, 2014). For instance, advertising of the event to gain popularity amongst the Australians requires a lot of finances to gain penetration into the existing market. Besides, the social problem associated with the event is that parents perceive the game as a pervert one and therefore do not encourage their children to participate in such games (Baker and Saren, 2016). Moreover, from the political perspective, the vent being held in different states faces different regulations and therefore it becomes a problem to comply with all the regulations put in place for the game (Achrol and Kotler, 2014). The Tough Mudder Pty. Ltd. being interested in growing the markets for the event implies that the organization should put in place various strategies to reach more people within and outside the Australian states. As such, the organization has to engage in different marketing orientation plans to generate a reliable promotion platform which determines how the public views the event and the possible loyalty creation among the customers. 2.0 Literature Review This review intends to argue that the marketing of the Tough Mudder Pty. Ltd. is an essential aspect in the development of the event and the success of the game in general (Parent and Smith-Swan, 2013). This is because most of the aspects undertaken under the game incorporate the essence of sustainability and profit making.as such, it is important to create a successful marketing plan for the organization to market the event through promotion, bidding and forming partnerships with other stakeholders for the success of the event (Schenk et al., 2015). Marketing of the event is contingent on the success of the marketing process. As such, communication forms a central point for presenting the marketing ideas to the public who provide both the participants and the spectators besides the sponsors (Schenk et al., 2015). This has been discussed in a range of literature articles by Parent, 2015, that demonstrate that communication through the traditional means like television and newspapers should be reinforced with modern forms like emailing, social media platforms among other technology-based forms which provide better alternatives to reaching other audiences away from the event venue (Baker and Saren, 2016). Basing on this fact, one notices that in order to have the required number of spectators and participants, it is important to reach out to the crowds through sports communication (Parent and Smith-Swan, 2013). As a result, one is in a position to argue that the success of the event depends on resolving the marketing problem which depends on effective communication to the stakeholders (Parent, 2015). The motivation of the consumer is an important consideration when creating a marketing plan for an event. As discussed by Parent and Smith-Swan, 2013, this can be attributed to the fact that the customer satisfaction is usually key in creating sustainability environment for the organization. As such, it can be established that determining the personality of the customers enables one to be in a better position of determining how to motivate the customers as discussed under the motivation theory. Consequently, understanding the customers’ personality makes the marketing of a certain event successful since one is in a position to determine what certain customers need before providing the actual products (Parent, 2015). From the marketing theories, it can be argued that the success in marketing of the Tough Mudder Pty. Ltd. event is based on the four aspects of market orientation that is, product, sales, and market and production orientation (Getz et al., 2015). Of interest, market orientation for Tough Mudder Pty. Ltd. demonstrates that the customers are at the heart of the business and therefore implementing a market strategy will revolve around creating quality products that the customers need. This is done after determining whether there is a need for improvement in the product and therefore, as a result, the marketing of the company will change according to the interest of the customers (Parent and Smith-Swan, 2013). Basing on the Maslow’s hierarchy of needs, it can be argued that market segmentation provides the option that is needed for marketing of the Tough Mudder Pty. Ltd. Event (Parent and Smith-Swan, 2013). This is because determining what a certain group of customers need will help one determine which product should be packaged first to capture the interest of the customers, that is, if it forms part of the basic needs or higher needs (Getz et al., 2015; Achrol and Kotler, 2014). Therefore, it can be argued that creating value in the product provided to the customers to serve their most immediate needs will develop a successful marketing strategy for the Tough Mudder Pty. Ltd. event. To sum up, it can be noted that the marketing problem is important to the overall success of the Tough Mudder Pty. Ltd. event because it incorporates the key elements like promotion, financing and customer loyalty that brings together the stakeholders for the success of the event (Parent et al., 2014). 3.0 Data Collection and Findings In a bid to address the problem of marketing that is faced by the Tough Mudder Pty. Ltd., the following solutions have been suggested through market research that would best help the organization to gain an increased market growth in the sports industry. Sports events attract a large audience with individuals choosing to participate or become spectators for various reasons (Shank and Lyberger, 2014). One popular rationale for the increased growth in the industry is the availability of disposable income and time that allows individuals to participate in sport events. Despite the major influx in the sport market, there are still segments that have not been tapped. In order to bridge this gap and grow in the market, Tough Mudder Pty. Ltd would best seek out a new segment in the young generation through providing innovative sports ideas that would attract them to the organization’s sport forum. One major way to address this is through the use of the technological platform. The younger generation is engrossed in techno savvy developments. This poses as an opportunity for Tough Mudder Pty. Ltd to use to attract this segment. In the sport events, there can be an inclusion of an imitation of the video games that are the current obsession of the decade. The philosophy of market segmentation is customer based as it seeks to meet the specific needs of the customer (Rundh and Gottfriedson, 2015). The task that Tough Mudder faces is therefore to determine the use of sports products and services then utilize this knowledge to meet the specific needs of the consumer and establish the common ground on the present factors. The organization will thus segregate and categorize the customers based on their individuality, their use of the sport product and the sport service and ultimately what they expect from the sport industry. Several variables will apply in the segmentation of the market and their fusion in order to achieve a perfect balance is the factor that will determine the success in the launching of the innovative sports product. The feasible variables are demographic and behavioral. In the demographic segment, the marketer ought to look at the age and gender of the potential market while in the behavioral segment the marketer will study the cost and reliability of the segment under the benefits segmentation. Among the advantages of segmentation of markets helps the company to specifically allocate resources where they are needed as opposed to shooting blanks in the market (Shank and Lyberger, 2014). Additionally, the customers will have a unique experience since the sports services and products will be tailored to suit their explicit requirements. Tough Mudder Pty. Ltd can thus focus on multiple segmenting to meet the requirements of the given age group and at the same time act based on the current trends. Amidst the disadvantages is the cost of facilitating to this segment is still on the higher side given the expertise that will be involved to fuse the technological aspects of a game with the physical aspects of the sports. Recreating a sport to involve features of computer play could be quite involving as it requires creativity, time and intensive resourcing. The marketing team will thus have to balance the implementation and launch this product in a bid to expand its market. The second solution is commendable to Tough Mudder Pty. Ltd would be to strategically price its products so that the package is attractive to the selected segment. The process of pricing is categorized as the establishment of a charge to a consumer in exchange for certain products or services. The importance of pricing cannot be ignored in Tough Mudder Pty. Ltd as it will influence the running and the ultimate goal of the organization. The inclination by the customers to purchase the sports services of Tough Mudder Pty. Ltd will be determined by the prices set forth. With the sensitivity of customers in mind, the changes in the prices should be made using particular consideration to the consumer. The estimated size market will help establish how to allocate the resources thus assist financial planning. Knowledge on the segment additionally aids in streamlining the pricing process (Shilbury et al., 2009). Given the targeted segment of young people who are mostly interested in technological activities, the pricing needs to be fair and appear reasonable to them and one that does not exploit. Factors such as social media influence communication-making it faster. The segment can thus easily market the price among their peers and discuss the pros and cons of the service or product being marketed. The overall goals of Tough Mudder Pty. Ltd will certainly influence the pricing too. In addition, changes in the market affect the setting of prices as they dictate the flow of the pricing of the industry. This fact ascertains the importance of keeping up with the current market trends in the sport events industry. Consequently, demand is established from the information on the market, the segment, the organization’s goal and the issues facing the industry. the combination of all these information together with additional data from the marketing research will subsequently be used to estimate the cost of the sport products and services. It would be best recommended that Tough Mudder Pty. Ltd use a low price entry strategy while introducing the new sport to the specified segment. It is imperative to have information on the price of the competitors as well. The strategy to price may result from the piecing of the competitors. Sport products are heavily dependent on time thus creating the need combine various pricing strategies. The perception of the consumers additionally takes a lead they are very quick to judge a product through its pricing. One major advantage of introducing the sports product at a low price is the massive attraction of potential consumers to sample the new brand of sports. As a result of many young people involving themselves with the new product, the company will additionally get attention from peers of the consumers and other relevant media through which the product will be marketed. Basing the product on demand is an additional advantage as there will be no resources wasted on second guessing what the consumer needs. The disadvantages that accompany the introduction of low pricing include possible loss from heavy investment especially given that the new product is capital intensive. Pricing based on demand will, however, ensure that the product is balanced with the needs of the consumer. 4.0 In Depth Action Plan of the Promotion of Tough Mudder Pty. Ltd Sport Products A promotional strategy is a communication program where the organization and the products and services that it offers are clearly presented to the targeted market. The attributes that are communicated are specified in such a way that they guarantee sales from the services and products. In the execution of the promotion strategy, there is dire need for the evaluation of every step that takes place during the implementation to ensure that the process is streamlined and effective. Furthermore, the evaluation helps the marketers not to deviate from the original plan for the promotion of the product and additionally correct mistakes in time whenever they are spotted. In order to fully ensure demand for the Tough Mudder Pty. Ltd sports product, the company, will instigate a promotional mix to adequately market the product. In the promotion mix, there is an active combination of various promotion strategies which are based on the information of the target market and the goals of the organization. The pertinent issues in the sport industry include the search of new and potential markets and various ways if improving the current consumers’ involvement in the present and new sports (Masterman, 2014). Tough Mudder Pty. Ltd thus plans to advertise the coming techno sport fusion event through the media mainly in the sports channel and occasionally in the main channels in Australia. The company also intends to carry out major publicity of the event through other forums apart from the media. The event will be publicized in other events and in various institutions. Tough Mudder Pty. Ltd will therefore blend advertising, publicity and sales promotion to prop up it upcoming event which will be held towards the end of the year. The company will additionally seek the support of other companies to encourage the event and also act as sponsors. 5.0 Action Plan The program to be developed includes a fusion of technological factors and sports to create an event where the physical aspect of games is brought up to speed with technology. Apart from introducing products and gadgets that will improve the sport sensation in the event, the company will also create an environment with the innovative designs in place to increase attraction factor for the sports event. In order to actively market the event, the company will use the media as a platform to launch its campaign for the event. The marketing team will come up with creative images and clips to entice the viewers. This strategy will be based on the information from the research on the consumers and the potential consumers. The advertisement will be particularly created to draw the interest of the young people from the ages of 15 to 23. The event will thus be advertised over television, newspapers and the internet to provide information to the potential customers and influence their opinion positively towards the event. The information presented will have details of the event such as the venue, the date, the sponsors and participating organizations and the contact number of Tough Mudder Pty. Ltd for inquiries. Tough Mudder Pty. Ltd will carry out the promotion of sales through the reduction of the price of the tickets bought before the event. The company will also seek to partner with companies providing food and drink and advertise the event through the packaging of the food and drink containers. There will be caps and jerseys provided at a discounted price which will have minute details of the event printed on them. The promotion of sales will actively be done to support the advertisement of the event. A panel will be created to plan and estimate the budget needed for the event. There costs included will include that of the venue, the price of constructing platforms that resemble computer games, gadgets to be used in the event, payment of staff, utility structures, transportation, accommodation, food and drink service and security. This panel will be in charge of ensuring that the right costs are allocated to the specific functions and prevention of waste and loss of money. The panel will also be tasked with coming up with ways to generate and save money for the event. It is imperative to address the cost o promotion as well. The intensity of the promotion will determine the success or failure of the event. The objectives of the event henceforth will be a) To provide the ultimate sports experience through Tough Mudder Pty. Ltd b) To merge innovative technology with physical sport c) To promote Tough Mudder Pty. Ltd through provision of exciting sport d) To help achieve physical fitness for the participants of the events 5.1 Target market The event will target consumers of sport and seek to encourage their participation in the events. The specific target market will be young people between the ages of fifteen and twenty three who are mostly into computer games as the sports environment will have a computer game theme.s 5.2 Communication The communication channels for the event will be through telephone and email. Tough Mudder Pty. Ltd also intends to come up with a fan page for the promotion of the event. This platform will help provide immediate feedback thus assisting the company to make changes where necessary and effectively evaluate the transition of the plans into the actual even smoothly. 6.0 Analysis Tough Mudder Pty. Ltd intends to carry out the event following the regulation of the government with preciseness. The license to hold the event will be procured and legal considerations taken to book such as age limits, food safety, hygiene and security during the event. With sustainability in mind, the sport event will promote environmental safety through careful protection of the ecological system. The technological aspect of the event is massive as the company plans to fuse this platform within the sport event making it the theme of the event. Tough Mudder Pty. Ltd will seek funding from potential sponsors. The company has also set aside a fund from its coffers and will generate more through the sale of tickets and other promotional items for the event. The company has conducted a research to ensure that no other event of a similar nature is taking place within or near the venue of the sport event. This will give Tough Mudder Pty. Ltd a competitive edge and further protect its intellectual rights to the concept of the event. The company has been geared towards the event since the beginning of the year as the plans started beforehand. Several panels and committees have been made to discuss and follow through with the implementations for the event to ensure a successful event for the company. 6.1 Advantages of the Promotion Strategy The sport event will be aggressively marketed through the various methods of promotion thus giving it a wide chance for success. The company has the advantage of controlling the time for the promotion through the elements incorporated thus ensuring maximum effect to the intended market. Games promoted over the web will prove to be more interesting should the concept mature on the physical level. Tough Mudder Pty. Ltd provides among the toughest sports events ever heard of. The combination of the creative intellect used to create computer games and their implementation to the field thus provides a competitive advantage to Tough Mudder Pty. Ltd. In addition to giving it a competitive edge, the event will secure market growth for Tough Mudder Pty. Ltd thus overseeing its expansion in the sports industry. 6.2 Disadvantages of the Promotion Strategy It might be tough to blend some technological companies with the aspect of the physical sport since there are no specific companies that are involved in combining physical sport and the technological platform. The present technological companies are those who do the opposite, otherwise known as virtual reality. The event by Tough Mudder Pty. Ltd shows how innovative the company is as it has embraced the technological challenge to fuse physical sports with the technological platform. The creativity in this program is further observed in the selection of the target market which is the current young generation that is yet to take into sports. The tailoring of the product to suit this market has been done through ensuring that their interest in the innovation of technology is used in the creation of a technology fused sport. 7.0 References Achrol, R. S., & Kotler, P. (2014). The service-dominant logic for marketing. The service- dominant logic of marketing: Dialog, debate, and directions, 320. Baker, M. J., & Saren, M. (Eds.). (2016). Marketing theory: a student text. Sage. Broadford, S. (2014). 2015 Melbourne. Tough Mudder. Retrieved 23 October 2016, from https://toughmudder.com.au/events/2015-melbourne Getz, D., MacDonald, D., & Parent, M. (2015). The sport event owners’ perspective. Routledge handbook of sports event management, 136-262. Parent, M. M. (2015). Stakeholder Management for Sports Organisations1. Routledge Handbook of Theory in Sports Management. Parent, M. M., & Smith-Swan, S. (2013). Managing major sports events: Theory and practice. Routledge. Parent, M. M., MacDonald, D., & Goulet, G. (2014). The theory and practice of knowledge management and transfer: The case of the Olympic Games. Sports management review, 17(2), 205-218. Schenk, J., Parent, M. M., MacDonald, D., & Proulx Therrien, L. (2015). The evolution of knowledge management and transfer processes from domestic to international multi-sport events. European Sports Management Quarterly, 15(5), 535-554. Masterman, G., 2014. Strategic sports event management. Routledge. Rundh, B. and Gottfridsson, P., 2015. Delivering sports events: the arena concept in sports from a network perspective. Journal of Business & Industrial Marketing, 30(7), pp.785-794. Shank, M. D., & Lyberger, M. R. (2014). Sports marketing: A strategic perspective. Routledge. Shilbury, D., Westerbeek, H., Quick, S., and Funk, D., 2009. Strategic sports marketing. Read More