marketing
MPK732: Marketing Management
OPTION A: CASE STUDY ANALYSIS REPORT
Tough Mudder – Not for the faint hearted (Vieceli 2012)
Unit Chair: Dr. Nichola Robertson
3 May 2013
Executive Summary:
This report presents a case study analysis of the US-based mud run event, Tough Mudder, presented in Vieceli’s (2012) case study, Tough Mudder – Not for the Faint-Hearted. Three years since its inception, Tough Mudder has become a leader in the new obstacle racing events industry and recently expanded into Australia in 2012. This entry into a country deemed to have their ‘biggest market anywhere in the world’ by co-founder Guy Livingston (Dumas 2012), offers opportunities for Tough Mudder within new potential market segments. This report addresses this Australian expansion, identifying these potential markets, and the key marketing implications and issues involved. This is achieved through presenting solutions to the following four case study problems:
The marketing environment
Market segmentation
Marketing research
Consumer behaviour
The Australian marketing environment is approached with a macro-environmental scan utilising a PESTLE analysis. The main opportunities and threats that emerge for Tough Mudder are then outlined. A key opportunity revealed by this scan is presented in the market segmentation analysis: two potential female market segments referred to in this report as ‘The Average Australian’ and ‘Young and Free.’ A market research plan, combining exploratory and descriptive research designs, utilising mixed qualitative and quantitative methods, has been developed for Tough Mudder to explore the potential of these market segments and investigate the variables which describe their consumer behaviour. Finally, a consumer behaviour theory, Reference Group Theory, is put forward as a strong underpinning for an effective marketing strategy to expand Tough Mudder’s Australian
OPTION A: CASE STUDY ANALYSIS REPORT
Tough Mudder – Not for the faint hearted (Vieceli 2012)
Unit Chair: Dr. Nichola Robertson
3 May 2013
Executive Summary:
This report presents a case study analysis of the US-based mud run event, Tough Mudder, presented in Vieceli’s (2012) case study, Tough Mudder – Not for the Faint-Hearted. Three years since its inception, Tough Mudder has become a leader in the new obstacle racing events industry and recently expanded into Australia in 2012. This entry into a country deemed to have their ‘biggest market anywhere in the world’ by co-founder Guy Livingston (Dumas 2012), offers opportunities for Tough Mudder within new potential market segments. This report addresses this Australian expansion, identifying these potential markets, and the key marketing implications and issues involved. This is achieved through presenting solutions to the following four case study problems:
The marketing environment
Market segmentation
Marketing research
Consumer behaviour
The Australian marketing environment is approached with a macro-environmental scan utilising a PESTLE analysis. The main opportunities and threats that emerge for Tough Mudder are then outlined. A key opportunity revealed by this scan is presented in the market segmentation analysis: two potential female market segments referred to in this report as ‘The Average Australian’ and ‘Young and Free.’ A market research plan, combining exploratory and descriptive research designs, utilising mixed qualitative and quantitative methods, has been developed for Tough Mudder to explore the potential of these market segments and investigate the variables which describe their consumer behaviour. Finally, a consumer behaviour theory, Reference Group Theory, is put forward as a strong underpinning for an effective marketing strategy to expand Tough Mudder’s Australian
References: 1.0 INTRODUCTION Vieceli’s (2012) case study, Tough Mudder – Not for the Faint-Hearted focuses on Tough Mudder, a US-based obstacle course event started in 2009 by Will Dean and Guy Livingston Political-Legal: Complex Negligence tort laws system (Bugg, 2006) This impacts Tough Mudder through high legal, public liability insurance, and risk management costs (Lapowsky, 2013) High While Australia not as hard hit, the GFC lowered consumer confidence resulting in restrained consumption (AWPA, 2012; Marketline, 2012).