Business Marketing Experimental Learning

Question: Discuss about the Business Marketing for Experimental Learning. Answer: Introduction of the Organisation Dream city is a role play city with a purpose to attract kids around in Melbourne by focusing on experimental learning. The theme park is especially designed for the kids from 2 to 14 years of age. The theme of the park is to provide education in a fun manner. The purpose of the organization is to synchronise education with entertainment. It has its own government, transportation which provides kids with a platform to broaden their imaginary skills. Kids get an opportunity to spend a day like an adult and provide them full independence. They get to explore the career opportunities and offer the kids a platform to enjoy their fantasy. For example Dream city pilots navigate aeroplane, police officer provides a detective work, scientist work in an R D department. There are many theme parks which are operating in the Asia-Pacific. The park uses its own resources to develop the mental strength of kids and provide them a platform to expand their thought process. They have their own currenc y known as Dollaz. Mission, Vision and Goals of the organisation The mission of the organization is to expand the thought process through experimental learning. The purpose of the organization is to synchronize education with entertainment. The concept gives children to spend a day like an adult to instil better understanding in them. There purpose is to surface better opportunities in Melbourne city by benefitting the schools and communities. There vision is to create a healthy playful environment in the city by successfully implementing the business model. They want to establish themselves as a value-focused theme park by serving the needs of kids. Continuous promotion of education and entertainment creates a long term sustainable growth. Goals Their aim is to provide a meaningful contribution by creating employment opportunities for the small and large business owners. It will help in accelerating the growth in the country and gives an opportunity to the small business to elaborate their business. Situation Analysis Dreamcity is the first kind of theme park in Melbourne, Australia. There are parks with the similar concept in the other countries as well. It will create an ample of opportunity for the organization. Kids will get a platform to showcase their talent and harness their fantasy. The education Dreamcity will serve the multi-purpose by focusing on the kids from the school and various communities. Melbourne is Australias second largest city. 2 to 14 year of kids form a major part of the population. There is possible growth in the organization due to a different concept. Target customers include people from the adjacent state. Company is expected to see a positive result in the coming years. External Environment Analysis of Competitive Environment The dreamcity is based on the concept of combining the characteristics of education with entertainment which provides kids with a learning experience. A research has shown that a middle school child wants to spend their pocket money on valuable things rather than enjoying other material objects. It is reported that 7 out of 10 kids enjoy participating in the meaningful activity. There concept is unique and features various experience and products by making learning delightful. At present there is no such park in the country or in south pacific. However there are outdoor parks like Dreamworld, Science works, Movie World, Wet and Wild world etc. But they are different from the other theme park on the basis of its exclusive concept. They are the only park which is providing role play based educational model which serve both the purpose (i.e. education and fun). It is the only theme park which provides a unique experience to special kids. The park is situated indoor which provides comple te safety to the kids and their USP is minding facilities for the kids above the age of 6 years. The park is centrally located in the city and gives an option for parents to shop and do leisure activity. The beneficiaries are government, non-government organization, communities and various school care centres. Large scale organizations are also benefitted through the theme park. The park has created opportunities for different business people and educational institution. PESTEL Internal Environment Political Political environment is an important feature while establishing an amusement park. If the region is politically unstable, it will affect the industry. Any such change in the political system affects the operations of the organization. Liberal political system creates opportunities for the new organization. Economic Economic capacity and financial stability helps in deciding the future of the organization, entertainment industry is often affected by the adverse economic conditions. Australian exhibits a high standard of living. Although there is a decline in the consumption pattern in the recent times. Economic development creates a favourable environment for the organization. Social The products should be aligned as per the choice of the customers. A thorough study in the consumption pattern is necessary to fulfil the gap. The study has shown that kids are more interested to spend on valuable products rather than material goods. It has helped in broaden the overall growth in the organization. Technology Technological factor has a strong impact on the growth and development of the theme park. The park is based on technology which is essential in serving the main purpose. Most of the products at the organization are based on modern technology. Social media is another factor to promote the products of the company. Environmental Environmental protection is important to provide licensing. The company has to face pressure from the government due to increasing environmental issues. It is necessary to follow the rules and regulations given by the government. The amusement park has to follow the policies and safety guidelines by the government. Legal The amusement and entertainment industry is regulated by the law and regulations. It is governed by the government organization. The safety measures are necessary to be followed. The organization is governed by the Queensland law. Review of current marketing situation The slogan of Dreamcity is its run by kids is a unique way to attract kids. It provides a healthy environment to the kids with a very attentive staff. This will enhance the experience of kids by continuously adding the new features. The current has ample of opportunities as there is no other theme park on a similar concept. The company can grow if it focus all its resources carefully and expand its business operations in all over Australia and New Zealand. Review of current and future organisational resources The maximum amounts of resources in the company are received through the investors. Dreamcity has aligned various projects with the partners to create business opportunities for small and large investors. The future resource depends upon the stakeholders whose interest lies with the company. ROI depicts a constant growth in the company if the other factors do not change. SWOT Analysis (External + Internal) Strength 1. Brand awareness through celebrities has helped in promoting it within the Australian market 2. It has a unique concept which differentiates it from the other theme park. 3. Providing competitive strategies to all type of customers. 4. Minimum use of intermediaries has reduced the extra operational cost. Business is directly focused on customers. 5. Only type of Role play theme park in Australia 6. Low-level of competition due to its USP. 7. Concept will create awareness in the educational institutions. 8. Based on the unique concept of Social-Business. Weakness 1. A huge financial capital is required at an initial level. 2. The estimated initial cost required for establishing the park is AUD 20 million. 3. Problem in serving the lower social-economic population 4. Inability to grow in a low populated area. 5. May face difficulty in establishing theme park at Gold Coast due to heavy competition. 6. Maximum footfall can only be 1800 per day due to constraint in the size. Opportunities 1. Possibility of economic downturn due to increase in consumer spending. 2. Different educational concept apart from the traditional method. 3. Improvement in the use of technology to provide high end operations. 4. Growth opportunities in the other major cities. New Zealand has a high opportunity. Threat 1. Potential threat from the other theme-parks. 2. Strong publicity through celebrities causes extra cost to the organization. 3. Any change in the education regulation and government policies may cause problem to the organization. 4. Potential entrance of other international companies. 5. It is difficult for providing facility in the geographical location. Critical Issues There are issue from the other amusement parks which are located in Melbourne. The company may find difficulty in initial establishment. The initial capital is very high which is difficult for the organization to procure. There are various theme parks which are already working in Melbourne and nearby states. It is difficult for the organization to compete against those amusement parks which are already established from a long time. There are threats from the international theme parks which are planning to establish in Melbourne due to favourable economic condition. The cost per kid is very high which may impose restriction. This may impact the lower socio-economic group. The serious competition from the other competitors like Dreamworld (Outdoor), Science Works (Different Concept) Movie World (Outdoor), Wet n Wild World (Outdoor), Sea-world (Outdoor), Aquarium etc are posing threat to the existence of the organization. Marketing Objectives (Sustainable and Achievable) The main objective of the organization is to create a sustainable environment which ensures continuous growth. The marketing objective involves promoting the organization through celebrities. The target audience is the kids under the age group of 2 to 14 years. the marketing and media campaign will take place in two phases. The pre-launch campaign consists of launch of the product focusing on the targeted audience. There is a necessity to create brand awareness campaign to restrict the competition in the current Australian market. The amusement park will be launched on Easter. It is essential for the organization to create hype around the city through different manner. The product is majorly launched to serve the needs of the children as well as school teacher from various backgrounds. The marketing strategies focus on building a strong brand base by promoting the vision, mission and goal through media campaign. Social media is an important tool to promote the brand name. It is a strong medium to create awareness and attract the target customers. The total marketing budget is $ 8000,000 which includes all the cost incurred in launching the product. Marketing Strategies Market / Demand Potential The current Australian market has lot of potential. The market study shows an ample of opportunities in the entertainment industry. Dreamcity is based on a unique concept which differentiated it from the other theme park. The domestic and international kids in Melbourne are 3,598,860/year. The organization assumes a foot-fall of .98% per year. As per the tourism department it is forecasted a domestic visitor nights is 66.1% for the year 2016-17. The company will see an excess demand from the domestic as well as the international customers. Apart from the other competitors the brand has its USP which will help in making a direct sale to the customers. The brand has considered the opportunities which the other competitors are not providing. Target Market with reference to Ansoff matrix, Segmentation and Targeting The new product has to see different strategies which will help in their continuous growth. The brand has to compete with various other competitors which are difficult to manage at an initial stage. Hence it needs to form a strategy which is based on sustainable development. Ansoff matrix is continuous development of the product through various strategies like market penetration, product development, market development, and diversification. Dreamcity is launching a product which is based on combining education with entertainment. It is the only theme park which is providing differential services. Segmentation is the technique through which the entrepreneur focuses on the target customers the market is divided into various segments. Here the company has its target focused on the kids. To serve the purpose it has designed its product focusing on their needs. The main target of the company is the kids from the age of 2 to 14 and their parents. This has not only targeted the customers but the business organization as it has created opportunities for the other organizations as well. Targeting is business strategies which focus on particular customers. Here the target customer is the kids from 2 to 14 years. It is focused on creating the opportunities as per the available market conditions. The current market has opportunities in terms of growth. It has not only targeted the kids but has created business opportunities for the small and large organizations. Product Strategies The product strategy defines how the product is different from the other in the market. It is very difficult to manage the functions in the market. Dreamcity is based on the unique concept which differentiates it from the other parks. They follow a differentiation strategy by bringing the concept of educational theme park. It is necessary for a company to focus on their product strategy to retrieve the maximum result. Pricing strategies Pricing should be done keeping in mind the people from every walk of life. The price should be convenient and approachable. It should not restrict the purpose of the organization. Socio-economic condition should not restrict the kids from the other organization. The brand should provide discounts and special privileges to those who cannot afford. The unique selling preposition and theme distinguishes it from the rest of the brands present in the country. Pricing should be reachable and realistic keeping in mind the other competitors. Positioning Strategies Positioning strategies focus on creating a position in the market. Marketing strategies should focus on creating a distinguished position. Dreamcity has a distinguished realistic product which will provide kids with an insight to elaborate fantasy through different games. These strategies will help the brand to establish a brand name within a short time period. Brand positioning plays a key role in deciding the future of the organization. Brand has to focus on developing its functions through continuous innovation. Processes (Extra Ps for service industry) A process helps in stimulating continuous growth within an organization. Organization strength depends upon the type of procedure it has adopted to deliver it to the customers. A strong process helps in accelerating the growth in the organization. Dreamcity is building on providing a unique service which is designed specifically for the kids. It needs to focus on delivering a learning experience to the kids. Safety should be given more preference while creating a strong process. People (Extra Ps for service industry) People in the organization define the status of the organization. A strong team helps in the growth and provides sustainability. Dreamcity has excellent workforces who are focused on serving the goal of the organization with utmost safety. Kids are handled carefully by the attendant and special attention is given to the special kids. The attendants are well-trained and work constantly keeping in mind the welfare of the organization. Physical Evidence (Extra Ps for service industry) There is an excess competition in the same industry. It is only the brand quality and USP which focuses on decreasing the competition. It has to focus on strategy by introducing innovation. An organization can only grow if there are fewer competitors. There is at present no other competition in the industry which is providing the similar industry. Physical evidence is a main part of the marketing mix which focuses on cutting the competition from others. Gold coast has many theme based park which has created excess competition. There is a necessity to ensure sustainable growth within the required time-frame. Communication or Distribution Strategy Communication channel are essential to propagate information related to the product and service. Dreamcity has already allocated a sufficient budget towards the marketing procedure. It is necessary to create hype about the product by choosing a proper channel. The company has allocated a budget for its pre and post launch. The company has its distributed channel by focusing on the continuous growth through the process. Budget The company has a marketing budget of - $800,000. The budget is especially for the pre-launch strategies. It has allocated budget for its launching as well. It is essential for a company to implement a strong plan to achieve maximum result. Timeline of Action Pre- launch campaign has started from June 2016 with a motive to focus on the potential investors and partners. It has a target to create product hype through product promotion at nearby places to attract customers. The media campaign for Dreamcity will be launched as soon as possible. The launch campaign will start after the Easter holidays. It will start its operations on Easter. The company will start working from 2017. The Melbourne Park will start from Easter in 2017. Control and Review Mechanisms The company has strong review mechanisms which keep a direct control over its operations. The mechanism is directed to procure the maximum result in the initial year of operations through regular campaigning. It is following a coordinating system which solves the purpose to get the regular benefit in the coming years through strong completive system. They are constant focusing on policies which focus on increasing the profit with a systematic mechanism. Quality assurance is there prime focus which ensures constant growth within an organization. Profit and loss projection (2017, 2018, 2019) The following is the forecasted profits a company is expecting in the coming years. If it keeps all the other factor constant. The profit and loss statement depicts the profit earned by the company in the coming years. Development 3 4 5 2016 2017 2018 2019 Target footfall (approx.) 34848 38332 42165 Revenue Revenue $ $1,568,160 $1,724,940 $1,897,425 Total Revenue $ $1,568,160 $1,724,940 $1,897,425 Costs Salary $24,000 $178,010 $195,811 $215,392 Non Salary: Corporate social responsibility $ $25,000 $25,000 $25,000 Marketing budget $250,000 $750,000 $605,000 $500,000 Other direct costs $ $450,000 $500,020 $525,000 Total costs $274,000 $1,403,010 $1,325,831 $1,265,392 Net Profit $274,000 $165,150 $399,109 $632,033 Net profit margin $ 0.105 0.231 0.333 Financial summary There is major investment in the brand promotion which involves the maximum budget of the company. The approximately footfall per year is taken as 34848; it is assumed that there will be a rise in 10% every year. The net margin is increasing every year. Enrolments are as follows: 2017-34848 2018-38332 2019-42165 Financial model assumptions All the calculations and figure are assumed whereas certain figures are taken from the given information. There is an increment in the profits of the company due to continuous promotion. The ticket charged from each customer is $45. The net profit margin= net profit/total revenue. It is assumed that there will be a constant growth at 10% every year keeping other factors constant. Return on Investment Formula for Return on Investment= Net Profit/ Total Investment * 100 The initial capital investment on the theme park is estimated to be AUD 20 million It is assumed that the total investment per year is constant i.e. AUD 20 million. It is expected that the ROI is increasing every year if the other variable situation are kept constant. 2017 $165,150/$2000000*100=8.25% 2018 $399,109/2000000*100=19.9% 2019 $632,033/2000000*100 =31.60%