Mkt521 Case Swan's Essay Example
Swan’s Ice Arena
Case Analyze
Swan’s Ice Arena is an ongoing hockey style arena in a city of 450,000 people. David Swan the owner wants to increase profits by reaching public skaters outside the hockey and figure skating format. Using only what information can be obtained from counting customers and reading industry newsletters Mr. Swan, has made investments in equipment and promotions. To date the returns on investment have been disappointing.
Mr. Swan has chosen a multiple target market approach putting all hockey and figure skaters in one segment and all public skaters in another. This is not too many segment and all customers fit into a segment. The problem is not enough data was gathered to determine how big each segment is, what the demographics are, how much is the gross domestic product, or better yet gross income measures in each segment. The only goal is to increase profits but Mr. Swan’s hit and miss strategies are not working.
New Strategy A complete strategy to increase profits needs at least three parts, competitive strategy, focus strategy, and a marketing differentiation strategy. Competitive strategy tries to fit the customer’s perceived position of low price or uniqueness (Konstantopoulos, 2007). Swan’s being the only arena in town must be competitive for the sports and entertainment activity dollars families spend on their children for each segment. The completion for the customer’s discretionary income is a very real threat. Swan’s Ice Arena is in a strong position being the only arena but many competitors are working to gain the upper hand for sports and entertainment dollars. The focus strategy helps serve target segments more effectively and efficiently (Konstantopoulos, 2007). This differentiation means the Swan can stay better focused for lower costs yet meeting needs of each segment target. Marketing differentiation strategy works to establishment of a unique and premium image for the product (Konstantopoulos, 2007). Marketing
Case Analyze
Swan’s Ice Arena is an ongoing hockey style arena in a city of 450,000 people. David Swan the owner wants to increase profits by reaching public skaters outside the hockey and figure skating format. Using only what information can be obtained from counting customers and reading industry newsletters Mr. Swan, has made investments in equipment and promotions. To date the returns on investment have been disappointing.
Mr. Swan has chosen a multiple target market approach putting all hockey and figure skaters in one segment and all public skaters in another. This is not too many segment and all customers fit into a segment. The problem is not enough data was gathered to determine how big each segment is, what the demographics are, how much is the gross domestic product, or better yet gross income measures in each segment. The only goal is to increase profits but Mr. Swan’s hit and miss strategies are not working.
New Strategy A complete strategy to increase profits needs at least three parts, competitive strategy, focus strategy, and a marketing differentiation strategy. Competitive strategy tries to fit the customer’s perceived position of low price or uniqueness (Konstantopoulos, 2007). Swan’s being the only arena in town must be competitive for the sports and entertainment activity dollars families spend on their children for each segment. The completion for the customer’s discretionary income is a very real threat. Swan’s Ice Arena is in a strong position being the only arena but many competitors are working to gain the upper hand for sports and entertainment dollars. The focus strategy helps serve target segments more effectively and efficiently (Konstantopoulos, 2007). This differentiation means the Swan can stay better focused for lower costs yet meeting needs of each segment target. Marketing differentiation strategy works to establishment of a unique and premium image for the product (Konstantopoulos, 2007). Marketing