Karange Marketing Strategy
MARKET ANALYSIS
1. Identifying the Market
Melbourne Cup is known in Australia as the ‘Race that stops the Nation’. It is one of the most popular sporting events in Australia and in Flemington it can attract a crowd of over 100,000 people. Kembla Grange is the NSW premier Racecourse south of Sydney and also races every Melbourne Cup day. There is a need to attract crowds to Kembla Grange and with the competition getting bigger every year with restaurants and clubs offering luncheons to those wanting to view The Melbourne cup, there is a need to research and identify the market we would like to attract and devise a plan to make Melbourne Cup day at Kembla Grange a profitable an successful day for the Illawarra Turf Club.
2. Market Segmentation …show more content…
2.1 Segmentation A
2.1.1 Geographic Segmentation
The focus is on the Illawarra Region, from Helensburgh to Kiama and as far west as Jamberoo. ‘Kembla Grange is NSW’s premier Racecourse south of Sydney’ (ITC). It is the only Racecourse in the Illawarra Region and has members in the Sutherland and Campbelltown regions as well as South Coast regions such as Batemans Bay and Ulladulla.
2.1.2 Demographic Segmentation
Focus is on a young demographic aged 18-25 who are looking for a social experience. Melbourne Cup has become an event on most Australians social calendars and through speaking to people of that age group, I have found that the young demographic attend Melbourne Cup functions mostly to drink and socialise with friends. They will have the occasional bet, mainly on the Melbourne Cup race itself.
2.1.3 Psychographic Segmentation
Focus is on the young, outgoing segment. A big percentage of this demographic is students who don’t have alot of money to spend when they go out to a day like Melbourne Cup. They don’t have alot of knowledge about the sport and are mainly attending for social reasons. They have more interest in the entertainment benefits of the day such as live bands and the Fashions in the Field competition.
2.1.4 Behavioural Segmentation
Melbourne cup is a special Event which only occurs once a year, it is known around Australia as ‘The race that stops the nation’. The attendance numbers are getting bigger every year. Most customers are loyal and attend if they were please with the event in previous years and through word of mouth from friends, relatives etc. The aim is to keep all customers loyal by providing good service by providing consumers with the experience they pay for. Benefits of attending Kembla Grange include: socialising with a big crowd, the ability to watch live races, the excitement of wagering, live entertainment and the Fashions in the Field Competition as well as the coverage of the Melbourne Cup all in the one venue.
2.2 Segmentation B
2.2.1 Geographic Segmentation
The focus is on the Illawarra Region, from Helensburgh to Kiama and as far west as Jamberoo. ‘Kembla Grange is NSW’s premier Racecourse south of Sydney’ (ITC). It is the only Racecourse in the Illawarra Region and has members in the Sutherland and Campbelltown regions as well as South Coast regions such as Batemans Bay and Ulladulla.
2.2.2 Demographic Segmentation
Focus is on a mature age demographic (25-50) who are either attending as a business function or with friends. This is a more upmarket demographic who earn a higher income and looking at spending more money on a luncheon and beverage package. They will attend in groups and spend more money on gambling.
2.2.3 Psychographic Segmentation
Focus is on a more mature segment who have a general interest in sport and drawn to the entertainment of gambling. They will be attending for social reasons also, but are more drawn to the wagering aspect of the day and there to enjoy the experience with friends as well as the chance to view the live racing.
2.2.4 Behavioural Segmentation
Melbourne cup is a special Event which only occurs once a year, it is known around Australia as ‘The race that stops the nation’ (VTC).
The attendance numbers are getting bigger every year. Most customers are loyal and attend if they were please with the event in previous years and through word of mouth from friends, relatives etc. The aim is to keep all customers loyal by providing good service by providing consumers with the experience they pay for. Benefits of attending Kembla Grange include: socialising with friends, the ability to watch live races, the excitement of wagering, live entertainment and the Fashions in the Field Competition, a pre-paid luncheon and beverage package, as well as the coverage of the Melbourne Cup all in the one …show more content…
venue.
3. Target Market Strategy
A Differentiated Marketing strategy will be used as Kembla Grange would like to offer a different product to each segment. The reasoning behind this is because all the segments presented earlier are vital to the day being a success and we would like the consumers to remain loyal to Kembla Grange. This particular type of market would generally cost more money to target different segments, but it will gain more product loyalty and the overall sales should be higher as the customer’s needs have been more tailored than if we were to target a mass market. The example below demonstrates the strategy Kembla Grange will be using (Adam & Armstrong p. 243).
Segment 1
Kembla Grange
Marketing Mix 1
______________________________________ Segment 2
Kembla Grange
Marketing Mix 2
___________________________
4. Product Positioning Kembla Grange
Luncheon
Pub
Variety
No Variety
Expensive
Inexpensive
4.1 Value Differences Kembla Grange Racecourse is the Premier Raceourse south of Sydney which offers more than just lunch & Melbourne Cup coverage, we offer a range of different services so that consumers can enjoy a day out with friends with betting facilities, live entertainment including bands and a Fashions in the Field competition.
We also offer luncheon packages for those who prefer to sit back with friends and enjoy live horse races. No other place in the place in the Illawarra can offer all these services in the one venue. The example above shows the brand positioning using a perceptual map which highlights that even though Kembla Grange might be expensive in relation to its competitors, but consumers will get more value for their money in terms of variety and things to do at the venue. For example, a luncheon at a restaurant may be cheaper than Kembla Grange’s luncheon packages, but it’s the variety and service from Kembla Grange which makes it a more valuable place to attend to watch Melbourne
Cup. 4.2 Positioning Strategy Kembla Grange’s value proposition would be its ‘More for the same’ proposition. Where other venues in the Illawarra can offer luncheon packages similar to the packages sold at Kembla Grange, none of them offer the same extras we offer to consumers as in the entertainment and racing features at our venue. So not only do we offer luncheon packages at a similar price, we will give the consumers more in terms of entertainment which will make the package more valuable to the consumer for the same price. 4.2 Positioning Statement Kembla Grange Racecourse wants to occupy in the consumers mind that it is an attractive, entertaining experience which would be more appealing than its competitors. As well as televising The Melbourne Cup and all other races around Australia that day, we offer services and entertainment that cannot be offered at any other venue. The positioning statement has incorporated all of these qualities: “By providing patrons of all ages with quality entertainment and full coverage of the Melbourne Cup, together with catering and bar facilities with great service, Kembla Grange offers premium value at a reasonable price”.
MARKETING STRATEGIES 5. Product Strategies The Core Product- A place to watch the Melbourne Cup Race.
The Actual Product- Horse Racing, Live Bands, Betting Facilities, Fashions in the Field, Live Racing Coverage.
The Augmented Product- Luncheon Packages, Sponsorship Packages (Businesses), Bar Facilities, Canteen
The Melbourne Cup event held by Kembla Grange Racecourse is an intangible service due to their being no physical element being delivered. We need to plan a way to deliver an experience which will make consumers loyal and return to the Melbourne Cup event every year. 5.1 Product Attributes The service provided must be fast and friendly service mainly from bar and catering staff. We must ensure all staff are dressed appropriately and deliver premium service to the customers. This is especially important in areas such as the Bert Lillye and Ken Brown Dining areas where customers have spent the most money. These luncheon areas are the places which generate the most competition and we would like our customers to remain loyal. 5.2 Branding and Logo “Kembla Grange Racecourse”
6. Pricing Strategies The Pricing Strategy Kembla Grange will be using will be Product line pricing- different price range at different price points. There are six different price points which Kembla Grange will offer to consumers on Melbourne Cup day. These include: Entry to the Course (General Entry), Members tickets, Bert Lillye Package, Bistro Lounge Package, Ken Brown Dining room package and the Rose Garden package (Please see Appendix A). These different price ranges will appeal to two different target markets which is the reasoning behind the differentiated marketing strategy. The three dining room packages are the most expensive packages and range from $100-$170. These packages will be aimed at Market Segment B who is the higher earning and more upmarket segment. Their package includes a 5 hour drink package as well a lunch and afternoon tea. The General Entry & Rose Garden packages are the less expensive options which are aimed at the younger crowd who are more interested in the social aspects of Melbourne Cup Day. There will be entertainment for the customers in these areas including live bands and a Fashions in the Field competition as well as food and beverage facilities. 7. Distribution Strategies Kembla Grange will be using a direct distribution method where we will be delivering the product directly to the consumer with no intermediary eg. retailer or wholesaler. The advantage is that we have complete control over the event. Tickets for luncheon packages will be sold prior to the event and all packages will need to be paid for 2 weeks prior to Melbourne Cup to enable seats to be reserved for the day. In the event of a cancellation, this will give us time to replace the seats. Any cancellations after this time will be non-refundable. Tickets can be purchased by coming to the office at Kembla Grange Racecourse or by calling the office during office hours. Payment can be received by cash, cheque or credit. Tickets for General Entry will be sold prior to the event for those who do not wish to queue up on the day as there can be up to 12,000 people attending. Tickets can also be purchased at the ticket booth at the front turnstiles on Melbourne Cup day for those who wish to purchase tickets that way. 8. Promotional Strategies 8.1 Advertising Advertising will be carried out to promote Melbourne Cup Day at Kembla Grange in two different forms to target the two segments we have been looking at. Firstly to target our mature age segment, we will be advertising in the two local newspapers; the Illawarra Mercury and the Lake Times. We will also advertise on our website which will feature a page where consumers can view our luncheon package prices. Due to the high demand to get into these luncheon rooms, we do not require too much advertising because Melbourne Cup day markets itself. The newspaper advertisements will also reach our younger segment, in which we will include competitions to win free general entry tickets. We also have a Facebook page where we invite alot of the young segment to join and send daily ‘free’ messages advertising the entertainment we will have available on the day. This is the area which we want to concentrate most of our advertising efforts on because the tickets are harder to sell and we need to sell more of the tickets to be profitable for the day. 8.2 Public Relations Kembla Grange Racecourse will devise a Public Relations plan in order to send good messages to the public. A way we will do this is by using a Spokesperson in Miss World Australia- Katie Richardson. Katie has been a favourable personality in the eye of the public for many years now since winning the Miss World Australia competition through her pleasant nature charity work, and we think having her as our Ambassador will favour us in the eye of the public. She will attend race meetings during the Spring Carnival, talk on radio segments as well as a newspaper article and will be a feature at Melbourne Cup day during the Fashions in the Field competition. 9. References 9.1 Websites www.kemblagrangeracing.com.au www.racenet.com.au www.melbournecup.com.au www.vrc.net.au www.wikipedia.com 9.2 Textbooks Principles of Marketing- Kotler Adam & Denize Armstrong – 2010 10. Appendices Appendix A (Please see following page)
1. Identifying the Market
Melbourne Cup is known in Australia as the ‘Race that stops the Nation’. It is one of the most popular sporting events in Australia and in Flemington it can attract a crowd of over 100,000 people. Kembla Grange is the NSW premier Racecourse south of Sydney and also races every Melbourne Cup day. There is a need to attract crowds to Kembla Grange and with the competition getting bigger every year with restaurants and clubs offering luncheons to those wanting to view The Melbourne cup, there is a need to research and identify the market we would like to attract and devise a plan to make Melbourne Cup day at Kembla Grange a profitable an successful day for the Illawarra Turf Club.
2. Market Segmentation …show more content…
2.1 Segmentation A
2.1.1 Geographic Segmentation
The focus is on the Illawarra Region, from Helensburgh to Kiama and as far west as Jamberoo. ‘Kembla Grange is NSW’s premier Racecourse south of Sydney’ (ITC). It is the only Racecourse in the Illawarra Region and has members in the Sutherland and Campbelltown regions as well as South Coast regions such as Batemans Bay and Ulladulla.
2.1.2 Demographic Segmentation
Focus is on a young demographic aged 18-25 who are looking for a social experience. Melbourne Cup has become an event on most Australians social calendars and through speaking to people of that age group, I have found that the young demographic attend Melbourne Cup functions mostly to drink and socialise with friends. They will have the occasional bet, mainly on the Melbourne Cup race itself.
2.1.3 Psychographic Segmentation
Focus is on the young, outgoing segment. A big percentage of this demographic is students who don’t have alot of money to spend when they go out to a day like Melbourne Cup. They don’t have alot of knowledge about the sport and are mainly attending for social reasons. They have more interest in the entertainment benefits of the day such as live bands and the Fashions in the Field competition.
2.1.4 Behavioural Segmentation
Melbourne cup is a special Event which only occurs once a year, it is known around Australia as ‘The race that stops the nation’. The attendance numbers are getting bigger every year. Most customers are loyal and attend if they were please with the event in previous years and through word of mouth from friends, relatives etc. The aim is to keep all customers loyal by providing good service by providing consumers with the experience they pay for. Benefits of attending Kembla Grange include: socialising with a big crowd, the ability to watch live races, the excitement of wagering, live entertainment and the Fashions in the Field Competition as well as the coverage of the Melbourne Cup all in the one venue.
2.2 Segmentation B
2.2.1 Geographic Segmentation
The focus is on the Illawarra Region, from Helensburgh to Kiama and as far west as Jamberoo. ‘Kembla Grange is NSW’s premier Racecourse south of Sydney’ (ITC). It is the only Racecourse in the Illawarra Region and has members in the Sutherland and Campbelltown regions as well as South Coast regions such as Batemans Bay and Ulladulla.
2.2.2 Demographic Segmentation
Focus is on a mature age demographic (25-50) who are either attending as a business function or with friends. This is a more upmarket demographic who earn a higher income and looking at spending more money on a luncheon and beverage package. They will attend in groups and spend more money on gambling.
2.2.3 Psychographic Segmentation
Focus is on a more mature segment who have a general interest in sport and drawn to the entertainment of gambling. They will be attending for social reasons also, but are more drawn to the wagering aspect of the day and there to enjoy the experience with friends as well as the chance to view the live racing.
2.2.4 Behavioural Segmentation
Melbourne cup is a special Event which only occurs once a year, it is known around Australia as ‘The race that stops the nation’ (VTC).
The attendance numbers are getting bigger every year. Most customers are loyal and attend if they were please with the event in previous years and through word of mouth from friends, relatives etc. The aim is to keep all customers loyal by providing good service by providing consumers with the experience they pay for. Benefits of attending Kembla Grange include: socialising with friends, the ability to watch live races, the excitement of wagering, live entertainment and the Fashions in the Field Competition, a pre-paid luncheon and beverage package, as well as the coverage of the Melbourne Cup all in the one …show more content…
venue.
3. Target Market Strategy
A Differentiated Marketing strategy will be used as Kembla Grange would like to offer a different product to each segment. The reasoning behind this is because all the segments presented earlier are vital to the day being a success and we would like the consumers to remain loyal to Kembla Grange. This particular type of market would generally cost more money to target different segments, but it will gain more product loyalty and the overall sales should be higher as the customer’s needs have been more tailored than if we were to target a mass market. The example below demonstrates the strategy Kembla Grange will be using (Adam & Armstrong p. 243).
Segment 1
Kembla Grange
Marketing Mix 1
______________________________________ Segment 2
Kembla Grange
Marketing Mix 2
___________________________
4. Product Positioning Kembla Grange
Luncheon
Pub
Variety
No Variety
Expensive
Inexpensive
4.1 Value Differences Kembla Grange Racecourse is the Premier Raceourse south of Sydney which offers more than just lunch & Melbourne Cup coverage, we offer a range of different services so that consumers can enjoy a day out with friends with betting facilities, live entertainment including bands and a Fashions in the Field competition.
We also offer luncheon packages for those who prefer to sit back with friends and enjoy live horse races. No other place in the place in the Illawarra can offer all these services in the one venue. The example above shows the brand positioning using a perceptual map which highlights that even though Kembla Grange might be expensive in relation to its competitors, but consumers will get more value for their money in terms of variety and things to do at the venue. For example, a luncheon at a restaurant may be cheaper than Kembla Grange’s luncheon packages, but it’s the variety and service from Kembla Grange which makes it a more valuable place to attend to watch Melbourne
Cup. 4.2 Positioning Strategy Kembla Grange’s value proposition would be its ‘More for the same’ proposition. Where other venues in the Illawarra can offer luncheon packages similar to the packages sold at Kembla Grange, none of them offer the same extras we offer to consumers as in the entertainment and racing features at our venue. So not only do we offer luncheon packages at a similar price, we will give the consumers more in terms of entertainment which will make the package more valuable to the consumer for the same price. 4.2 Positioning Statement Kembla Grange Racecourse wants to occupy in the consumers mind that it is an attractive, entertaining experience which would be more appealing than its competitors. As well as televising The Melbourne Cup and all other races around Australia that day, we offer services and entertainment that cannot be offered at any other venue. The positioning statement has incorporated all of these qualities: “By providing patrons of all ages with quality entertainment and full coverage of the Melbourne Cup, together with catering and bar facilities with great service, Kembla Grange offers premium value at a reasonable price”.
MARKETING STRATEGIES 5. Product Strategies The Core Product- A place to watch the Melbourne Cup Race.
The Actual Product- Horse Racing, Live Bands, Betting Facilities, Fashions in the Field, Live Racing Coverage.
The Augmented Product- Luncheon Packages, Sponsorship Packages (Businesses), Bar Facilities, Canteen
The Melbourne Cup event held by Kembla Grange Racecourse is an intangible service due to their being no physical element being delivered. We need to plan a way to deliver an experience which will make consumers loyal and return to the Melbourne Cup event every year. 5.1 Product Attributes The service provided must be fast and friendly service mainly from bar and catering staff. We must ensure all staff are dressed appropriately and deliver premium service to the customers. This is especially important in areas such as the Bert Lillye and Ken Brown Dining areas where customers have spent the most money. These luncheon areas are the places which generate the most competition and we would like our customers to remain loyal. 5.2 Branding and Logo “Kembla Grange Racecourse”
6. Pricing Strategies The Pricing Strategy Kembla Grange will be using will be Product line pricing- different price range at different price points. There are six different price points which Kembla Grange will offer to consumers on Melbourne Cup day. These include: Entry to the Course (General Entry), Members tickets, Bert Lillye Package, Bistro Lounge Package, Ken Brown Dining room package and the Rose Garden package (Please see Appendix A). These different price ranges will appeal to two different target markets which is the reasoning behind the differentiated marketing strategy. The three dining room packages are the most expensive packages and range from $100-$170. These packages will be aimed at Market Segment B who is the higher earning and more upmarket segment. Their package includes a 5 hour drink package as well a lunch and afternoon tea. The General Entry & Rose Garden packages are the less expensive options which are aimed at the younger crowd who are more interested in the social aspects of Melbourne Cup Day. There will be entertainment for the customers in these areas including live bands and a Fashions in the Field competition as well as food and beverage facilities. 7. Distribution Strategies Kembla Grange will be using a direct distribution method where we will be delivering the product directly to the consumer with no intermediary eg. retailer or wholesaler. The advantage is that we have complete control over the event. Tickets for luncheon packages will be sold prior to the event and all packages will need to be paid for 2 weeks prior to Melbourne Cup to enable seats to be reserved for the day. In the event of a cancellation, this will give us time to replace the seats. Any cancellations after this time will be non-refundable. Tickets can be purchased by coming to the office at Kembla Grange Racecourse or by calling the office during office hours. Payment can be received by cash, cheque or credit. Tickets for General Entry will be sold prior to the event for those who do not wish to queue up on the day as there can be up to 12,000 people attending. Tickets can also be purchased at the ticket booth at the front turnstiles on Melbourne Cup day for those who wish to purchase tickets that way. 8. Promotional Strategies 8.1 Advertising Advertising will be carried out to promote Melbourne Cup Day at Kembla Grange in two different forms to target the two segments we have been looking at. Firstly to target our mature age segment, we will be advertising in the two local newspapers; the Illawarra Mercury and the Lake Times. We will also advertise on our website which will feature a page where consumers can view our luncheon package prices. Due to the high demand to get into these luncheon rooms, we do not require too much advertising because Melbourne Cup day markets itself. The newspaper advertisements will also reach our younger segment, in which we will include competitions to win free general entry tickets. We also have a Facebook page where we invite alot of the young segment to join and send daily ‘free’ messages advertising the entertainment we will have available on the day. This is the area which we want to concentrate most of our advertising efforts on because the tickets are harder to sell and we need to sell more of the tickets to be profitable for the day. 8.2 Public Relations Kembla Grange Racecourse will devise a Public Relations plan in order to send good messages to the public. A way we will do this is by using a Spokesperson in Miss World Australia- Katie Richardson. Katie has been a favourable personality in the eye of the public for many years now since winning the Miss World Australia competition through her pleasant nature charity work, and we think having her as our Ambassador will favour us in the eye of the public. She will attend race meetings during the Spring Carnival, talk on radio segments as well as a newspaper article and will be a feature at Melbourne Cup day during the Fashions in the Field competition. 9. References 9.1 Websites www.kemblagrangeracing.com.au www.racenet.com.au www.melbournecup.com.au www.vrc.net.au www.wikipedia.com 9.2 Textbooks Principles of Marketing- Kotler Adam & Denize Armstrong – 2010 10. Appendices Appendix A (Please see following page)