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Bowling Club

Mission Statement

‘To be a leading entertainment provider and deliver value through excellence in


customer service and quality. To provide excellent coaching enabling customers to
reach their maximum potential’

Purpose of marketing plan

“Bowling“, since it is ever existence has always remained a sports and entertainment
passion for youngsters. Utilization of this level of passion for bowling attracted our
attention The idea is to come up with a unique service to provide the valuable
customers with an exclusive entertainment under one roof. Creating an environment
where people of different ages can play the game of there dreams. Attracting people
of all ages and creating awareness among them would help our business in increasing
the customer base and generate revenue Focusing particularly on bowling and in
general creating a modest, trendy and chit chat place for youngsters.
Customer’s today are more willing to pay for additional features and services. From
business point of view one has to be different from its competitors. Moving to become
the market leader requires maximum customer satisfaction by being loyal to them and
coming up with innovative ideas when required. Effective utilization of business plan
results in maximum result on investment, providing a more space for growth and
achieving economy of scales.
The ultimate purpose of our business is to provide the customers with healthy
entertainment place to enjoy the fun moments associated with their life and to forget
their worries and always have the synergy to enjoy the life.

Foundation Statements

The following foundation statements reflect the vision that The Bowling Club has for
the sporting activity of bowling, and the beliefs and values that consistently shape and
determine the programs and services provided for member centers, their bowlers,
coaches, officials and volunteers, and the staff.

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Bowling Club

Vision Statement

For the sporting activity of bowling to provide the customers with the opportunity to
participate in a lifetime activity, that promotes the physical and mental well-being of
the individual and society as a whole.

Value Statements

The sporting activity of the bowling club is:

1. Member-based, service-oriented, participant-centered and volunteer dependent;


2. Accessible to people of all ages, skill levels and abilities;
3. Conducted in a safe and ethical environment
4. Organized effectively with collaboration and accountability
5. A contributor to community life in the Province;
6. Delivered by qualified leaders, and
7. Structured to encourage and foster relationships.

Pricing strategies
Pricing the product is a very complicated and a very sensitive issue the life of the
product or the service basically depends upon the factor of price the price should be
set realistically it should cover our expenses and should also attract the costumers thus
following are the pricing strategies that we will be using for our bowling club
We will be using the attacking pricing strategies:

1 premium strategy (high quality and high price)


2 medium value strategies (medium quality and medium price)
3 economy strategy (low quality and low price)

we will be using other pricing strategies as well to attract the costumers to the club as
well as to maximize the the ratio of our profits following is the list of other
marketing strategies that we will be using along with these attacking pricing strategies

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Bowling Club

1 Special event pricing (pricing strategies related to events such as EID,


CHRISTMAS, VALENTINES,)
2 every day low pricing (pricing strategies related to days in a week)
3 Psychological pricing (the pricing strategies related to the psyche of the costumers)
Pricing objectives

1. Target market share. The objective for this strategy is to maximize market
share--sometimes at the cost of maximizing early profit.
2. Target return on investment. This strategy attempts to maximize the return on
investment.
3. Sales growth. This is similar to maximizing market share, except it is
expressed in the difference in sales over time.
4. Maximize long-run profit. This strategy is not dependent on making a “quick
buck,” but rather with making the most from a product during its entire life
cycle.

Annual fee Under 18 18-30 30-40 40-above


Diamond 5000 50 100 75 50
Platinum 2000 70 120 95 70
Gold 1000 90 140 115 90

The significance of the pricing according to the segmentation based on age is the
demographic analysis of Pakistan, which suggests that the most active group as far as
physical activity is concerned is between 18 to 30 years. The people over or under this
age don’t have the schedule for physical activity
Taking a lineage of 50 (lineage is number of games per lane per day) at an average of
Rs 100 a game, an eight-lane center would generate Rs1.4 crore per year.
We will be using the combination and mixture of all the above mentioned strategies to
remain in the market and survive in the market.

Marketing strategies

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Bowling Club

marketing strategies play a very vital role in the life of a product because by the
marketing strategies we make the people to know that this product exists in the market
and it is to create awareness among the people about the product .we will be using the
following marketing strategies to market our service of the bowling club

1. Bill Boards / Holdings


Put up as on pre-install billboards at different key locations.
Adam-G chock in front of KFC building, Rawalpindi
Traffic signal, in front of Pearl Continental, Rawalpindi
Top of Saeed Book Bank, Jinnah Super, Islamabad
Center Park, F-10 Markaz, Islamabad
2. Banners
Jinnah Avenue to F-10 Markaz
Garrison Scheme to Katcheri chock
3. Broachers
Broachers would be distributed in different universities of Rawalpindi and Islamabad
through the institutes sports/related departments. The same will be distributed through
an extensive promotional campaign in front of universities/college and a few other
selective locations.

4. Internet Communities
Different Internet communities would be set to promote our service, like Orkut, Hi 5,
Yahoo chat rooms etc
5. Cable network commercials
Our commercial ad which is in the process of being shot these days will be run across
different cable networks in areas like Chaklala, Askari, Westridge, and Islamabad

SWOT Analysis of Bowling Club


Strengths
 Location / Accessibility

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Bowling Club

 Committed employees
 Attractive to diverse groups
 Diversity in entertainment
 Public Safety - Police and Fire
 Architectural richness
 Healthy environment
 No competitor in Islamabad market
 Customer focused
 Latest technology
Weakness
 Hours of operations
 Lack of trained staff
 Lack of exposure to this game
Opportunities
 Educated population
 Extending technical capability
 Economic development
 Ineffective competitor
 Customer service staff need training
 Starting of WTO
Threats
 Inflexible market conditions
 Retention of key staff
 Increase in market saturation
 Changes in government laws and regulations
 New competitor in the same market
Time Duration
Timings Target Customers
Birthday parties,
School trips,
11.00 am to 3.00 pm
House wives only
3.00 pm to 6.00 pm Students only

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Bowling Club

6.00 pm to 1.00 am All

Product mix

The proposed health club will provide the following services to its members:
 Bowling Facility
 Snack Bar
 Juke Box
 Refreshments center
 Gossip centers

Market summary

We have the information about the market and the current situation of the market we
have information about the costumers and what are there needs and wants .and we
will use this information to improve our services day by day and to deliver the best to
our costumers. The market for game clubs in Pakistan has been developing steadily
over the last decade and a mushroom growth of Gym and clubs is being observed in
all the cities and even villages. Still a good potential exists for quality game clubs.
Pakistan is emerging as a newly health conscious society. Location and amenities are
some of the most vital factors in the success of any game club.

Target markets

1 recreational

2 fitness

3 extreme

4 fun

Market Demographics

The profile of the bowling club customer has the following demographics shown
in the form of a table.

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Bowling Club

Population of big cities of Pakistan

Income statement

Year - I

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Revenue

Projected sales 5760000


Members fee 600000
Refreshment counter 5400000
Total 11760000

Less operating expense


Salaries 1296000
Utilities 1800000
Financial Charges 568,000
Depreciation 1,165,500
Total 4829500

Operating Profit 6930500


Profit before taxation 6930500
Taxation 1039575

Profit after taxation 5890925

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Bowling Club

1.5.2 Opportunity rationale

The factor that leads to the development of this pre-feasibility study is the fact that
very less number of people has access to gaming clubs under qualified
instructors/trainers. Great scope for these types of clubs exist in Pakistan especially in
urban areas where life is busy and people have less opportunities to find such places.

1.6 Project brief


The bowling zone will be providing services to entertain its customers. The proposed
bowling zone will provide the indoor facilities of indoor sport that is bowling.
Furthermore, environment of bowling zone and a refreshment center etc. will be
making this project a good place of enjoyment for male and female members. It will
offer professional instruction (personal training). Project should be centrally located

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Bowling Club

to provide easy access to inhabitants. Brunswick, an international bowling solution


provider, will be installing all the equipment related to the bowling club.

1.6.1 Proposed business legal status

Legal status is suggested to be a sole partnership because it requires less legal


requirement to start with than a company. Similarly a lower rate of tax is applicable to
partnerships than that of companies.

1.6.2 Project Capacity and Rationale

The proposed health club will have an area of 7,500 sq ft hall at Jinnah Park
Rawalpindi, having covered/indoor facilities. The club will operate in different
sessions of the day like morning, afternoon, evening and night depending upon the
seasons and customer preferences. The club will have a capacity to cater 300
members, spread over in the following different sessions of the day:

Time Duration

Timings Target Customers


Birthday parties,
School trips,
11.00 am to 3.00 pm
House wives only
3.00 pm to 6.00 pm Students only
6.00 pm to 1.00 am All

1.6.4 Product mix

The proposed health club will provide the following services to its members:
 Bowling Facility

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Bowling Club

 Snack Bar
 Juke Box
 Refreshments center
 Gossip centers

1.6.5 Key success factors/Practical Tips for success

To obtain a good average of profits it is necessary to provide state of art facilities to


clients/members. The proprietor should himself must be having a little technical know
how of all the services being offered. The services of qualified trainers/instructors
should be hired as “supervised workouts improve results”. Utmost priority should be
to provide members a lifestyle that encourages entertainment through the safest and
latest means.

1.7 Strategic Recommendations

Marketing

Initially huge marketing campaign is required. Afterwards, regular campaign will be


followed to maintain market share. The important marketing channels would be flyer
distribution and Cable TV.

People normally consider the following factors while selecting a bowling club
 Convenience
For any gaming club to be a success, it has to be conveniently located. People are
more likely to use a facility if it is in a good area of city with easy access. Also the
club facility should have hours and class times that work within client’s busy
schedule.
 Pricing
Price levels should be set at affordable levels for people who live in neighborhood and
also after considering the competitor’s price levels.

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Bowling Club

1.8 Sector and Industry Analysis

1.8.1 National Analysis

Game clubs industry is emerging as one of the good business ventures in Pakistan.
People are getting conscious and aware about their health, fun and feel the importance
of recreation in the busy life. Currently bowling club industry is segmented and
unorganized excluding few bowling clubs. There is neither an association of these
clubs, which is working actively for the development of this industry, nor government
or health department/ministry has collected any data about the quantity and quality of
these clubs and made any quality laws/standards for these clubs like in other
developed countries. A lot of people are venturing into this trade and are exploring it,
as it is a flourishing business. Competition is healthy but these clubs do not cater to
the actual needs of the customers.

1.8.2 Legal issues regarding industry

No approval from any government or health or sports department is required in


Pakistan for operating a health and game club. In developed countries like USA there
are specific laws called State’s Health Club Laws that governs the health clubs is
USA.
Prevailing rate of income tax for sole proprietorship is in various slabs max 35%.
Rates are as follows:

1.8.3 Tax Rates1

Sales Tax is applicable on club services under Provincial Sales Tax Acts. The rate of
General Sales Tax applicable on club services is 15 % on all services.

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Bowling Club

1.9 Market Information

1.9.1 Market potential


The market for game clubs in Pakistan has been developing steadily over the last decade and a
mushroom growth of Gym and clubs is being observed in all the cities and even villages. Still a good
potential exists for quality game clubs. Pakistan is emerging as a newly health conscious society.
Location and amenities are some of the most vital factors in the success of any game club.

1.9.2 Target customers

The target customers for game clubs are the population of big cities having age group
of 15 to 50 years. Population of urban areas of Pakistan is 33% of total population out
of which 50% falls in the targeted customer’s age group. Total estimated current
population of Pakistan is 150,863,000 1(151 million). It means clubs targeted
customers living in urban areas are 24,892,395 (25 million).
Following table gives the percentage of population of targeted customers (age group
wise).

1. Source: <www.cbr.gov.pk>

Percentage of population of targeted customers


(age group wise)2

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Bowling Club

Population of big cities of Pakistan3 1998 census

Huge market is available for new game clubs; it is the matter of creating awareness
only for which media is playing a positive role.

2. Source <www.smeda.org.pk>

1.10 Land and Building requirement

Land Requirement

The proposed bowling club requires an area of Approx 7,500 sq ft. Our group to start
club at rented premises rather at owned premises to avoid huge investment suggests it.

Distribution of acquired space

Description Square Feet Units Area

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Bowling Club

Owner’s Office 120 1 120


Admin Offices 300 1 300
Instructor Room 100 2 200
Wash Rooms 35 3 105
Refreshment Center 2000 1 2000
Bowling Alleys 3500 1 3500
Counters 150 4 600
Sitting lounge 675 1 675
TOTAL 7500

Construction cost

Current construction cost of club is approx Rs. 600 per square feet. Total construction
cost of 7500 square feet area will be Rs. 4,500,000/-.

Rent cost

The required building acquired on rent at Jinnah Park, it will cost around Rs. 100,000
to Rs. 150,000 per month in different proposed areas of the park.

Utilities requirement

The necessary utilities are electricity, telephone and water. A three-phase commercial
electricity connection is required. Current rate of electricity for these connections is
Rs. 7.00 per kilowatt-hour.

1.11 Human Resource Requirement


Skilled instructors are easily available at competitive salaries. Number of workers
required for each department is as follows

Department/Position Number Salary/month Annual Salary (Rs.)


(Rs.)
Venue Managers 2 15000 360,000
Instructors 4 10,000 480,000
Helpers 4 3,000 144,000
Cashier cum accountant 4 4,000 192,000

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Bowling Club

Cleaners 2 2500 60,000


Peon 1 2,500 30,000
Security Guard 1 2,500 30,000
Total 18 1,296,000

SWOT Analysis of Bowling Club


Strengths
 Location / Accessibility
 Committed employees
 Attractive to diverse groups
 Diversity in entertainment
 Public Safety - Police and Fire
 Architectural richness
 Healthy environment
 No competitor in Rawalpindi market
 Customer focused
 Latest technology

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Bowling Club

Weakness
 Hours of operations
 Lack of trained staff
 Lack of exposure to this game
Opportunities
 Educated population
 Jinnah Park’s support
 Extending technical capability
 Economic development
 Ineffective competitor
 Customer service staff need training
 Starting of WTO
Threats
 Inflexible market conditions
 Retention of key staff
 Increase in market saturation
 Changes in government laws and regulations
 New competitor in the same market
 Environmental Threats

2.2 PEST Analysis

Political analysis
As far as the political factors are concerned, bowling game is very much effected by
the stability/instability of the government. Utility prices are always related with the
performance of the government. If investors think that the present government will
perform well then there will be more investment and other opportunities. The over all
industry will grow resulting in more recreational and entertaining places.

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Bowling Club

Economic analysis
Pakistanis are more energetic and love to play games both indoors and outdoors. Due
to increase in inflation rate, spending power of people suffers. This lack of spending
power and increase in interest rate has also affected the bowling games activities. Due
to the devaluation of rupee, Pakistani market has reduced its attractiveness for the
foreign investors. These foreign clients get low return on their investment. Therefore
this devaluation affected the entertainment sectors like bowling alleys. Also, in
Pakistan, money market is not an organized sector. Business activities of entertainers
can increase with the establishment of strong money market in Pakistan.

Social analysis
There is comparatively less awareness among people about indoor games like
bowling. People do not know how to play, how to use the services. Due to this lack of
awareness and education, indoor gaming clubs did not flourish as much, as it could.
With the increase in the number of entertainment clubs, firms are becoming more
customers oriented. They know how to attract new and how to retain old one. People
are becoming more interested in establishing new business. This emergence of new
business environment has very possible effect on these clubs. The customer data base
is increasing day by day.. As general public awareness and interest regarding business
environment has increased, so we can see many new business and commerce
institutes for business education. Now, better-educated and competent work force is
available for different firms & companies. Moreover, people are becoming more
aware of these clubs.

Technical analysis
Due to the availability of Internet and other networks, customers today can play
games on computers using LAN networks. Current updates can be seen directly using
Internet. These networks also help research department to come up with new
technology and innovative ideas of proper utilization of these technologies.
Computerized data base also facilitate the work of these entertainment clubs to
maintain a proper data base of their customers, to know about their playing behaviors,
to know about their buying decisions and much more. More accurate and efficient
information can be obtained because of these databases. Because of satellite network,

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Bowling Club

up dated information from international companies for e.g.. Brunswick and Bowling
Alley Operator Association etc are accessible within fraction of minute. This up-dated
information is a competitive edge in the industry as these clubs becomes more
competitive by having this information.

2.3 Ansoff Matrix


To portray alternative corporate growth strategies, Igor Ansoff presented a matrix that
focused on the firm’s present and potential products and markets (customers). By
considering ways to grow via existing products and new products, and in existing
markets and new markets, there are four possible product-market combinations.
Ansoff matrix provides four different growth strategies:
 Market Penetration – the firm seeks to achieve growth with existing products
in their current markets, aiming to increase its market share. The market penetration
strategy is the least risky since it leverages many of the firm’s existing resources and
capabilities. In a growth market, simply maintaining market share will result in

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Bowling Club

growth, and there may exist opportunities to increase market share if competitors
reach capacity limits. However, market penetration has limits, and once the market
approaches saturation another strategy must be pursued if the firm is to continue to
grow.
 Market Development – the firm seeks growth by targeting its existing products
to new market segments. This option includes the pursuit of additional market
segments or geographical regions. The development of new markets for the product
may be a good strategy if the firm’s core competencies are related more to specific
product than to its experience with as specific market segment. Because the firm is
expanding into a new market, a market development strategy typically has more risk
than a market penetration strategy.
 Product Development – the firm develops new products targeted to its existing
market segments. This strategy may be appropriate if the firm’s strengths are related
to its specific customers rather than to the specific product itself. In this situation, it
can leverage its strength by developing a new product itself. In this situation, it can
leverage its strength by developing a new product targeted to its existing customers.
Similar to the case of new market development, new product development carries
more risk than simply attempting to increase market share.
 Diversification – the firm grows by diversifying into new business by
developing new products for new markets. It is the most risky of the four growth
strategies since it requires both product and market development and may be outside
the core competencies of the firm. In fact, this quadrant of the matrix has been
referred as the “suicide cell”. However, diversification may be a reasonable choice if
the high risk is compensated by the chance of a high rate of return. Other advantages
of diversification include the potential to gain a foothold in an attractive industry and
the reduction of overall business portfolio risk.

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2.3.1 Analysis of Bowling Club

In Ansoff matrix the business would be placed in the market development segment.
Launching this bowling club captures a new market. We would be targeting a new
market segment. Offering different unique services would sever this new market
segment. In addition to this, the product, which is already present in the market,
would be introduced. This gives us a benefit that people already will be aware of this
game. They will be familiar with the fun part of the game. Launching the same game
in the new market by following differentiation strategy will provide us many benefits.
The advantage for the company of this strategy is that it does not need to invest in
new product development - the main expenditure will be in the area of marketing and
sales. This will reduce the risk associated with new product development.

2.4 Pricing Strategies

Establishing Pricing

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Bowling Club

Price enables us to make the appropriate margins to run a successful business--over


the life cycle of the product (not always up-front). It is also a means of distinguishing
our offering from those of competitors--positioning. In addition, the price is a tool for
communicating with customers and influencing the way they buy. The four
components of a pricing program include

 Objectives
 Strategy
 Structure
 Price

Pricing Objectives

There are over twenty pricing objectives that we might consider. Following are four
that I typically concentrate on:

5. Target market share. The objective for this strategy is to maximize market share--sometimes
at the cost of maximizing early profit.
6. Target return on investment. This strategy attempts to maximize the return on investment.
7. Sales growth. This is similar to maximizing market share, except it is expressed in the
difference in sales over time.
8. Maximize long-run profit. This strategy is not dependent on making a “quick buck,” but rather
with making the most from a product during its entire life cycle.

While developing your pricing strategy, it is important to remember that there is an


implicit relationship between price and value .We expect to pay more for gourmet
food than for fast food and for a luxury car than for an economy model. At the same
time, value is a matter of opinion, not fact.

2.4.1 Analysis of Bowling Club

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Bowling Club

For our project we have decided to select “Penetration” strategy. This strategy allows
offering higher quality at lower price. The reason to select this strategy is that we have
to compete with the industry to gain market share. Secondly, for long run advantage
we can meet economy of scales.
As the economies of scale will be achieved, the company will be earning more profit
on the same cost invested. Since variable cost consists of a limited portion of the
investment. Company will be having rights to change the pricing strategy in the future
by considering several market factors and its own established brand name.

2.5 Competitor’s Analysis


Analyzing one’s competitors helps an organization decide about what strategies are
going to be followed by it in long-term and short term. By looking at those
competitors, a firm can decide that what are the discounts that would be being offered

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by him, what would be the quality of the product or service, what better services are
going to be offered to the customers, what channel of distribution are we going to
follow and what would be our innovative ways of promoting our brand. A firm can
improve its operations by looking at all the aspects discussed above.
Hotshot is primary competitor of our bowling club. Hotshot has been operating
Islamabad since last almost 5 years. It has an edge in being the innovator as
introducing bowling for the first time in Pakistan within this region. Hotshot has been
very successful in its early stages i.e. when it came into being. It is located in the heart
of Islamabad in F-9 Park. This park is known for being the largest park of Asia.
Hotshots had an edge because of it and earned profits. But with the passage of time, it
lost its grip and its profits started declining. Management paid less attention towards
its marketing and promotion. It paid less interest towards the latest technologies that
were being implemented in the world of bowling game.
Some positive aspects that we utilized is that we had to spend less capital investment
on customer awareness since almost majority of our customers knew what bowling is,
how to play it and what is the fun element involved in it. Since our competitors is not
promoting itself much then it could have, we focused our attention towards promoting
our brand and creating an image among the customers, to build a loyal customer base
and to be leader in the market. The areas where our competitor lacked have become
our strengths. Utilizing these strengths we are forecasting of moving up a high way
around and to flourish in the field of entertainment sector.

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Bowling Club

2.6 Porter’s 5 forces Model


The Five Forces model of Porter is an Outside-in business unit strategy tool that is
used to make an analysis of the attractiveness (value) of an industry structure. The
Competitive Forces analysis is made by the identification of 5 fundamental
competitive forces:
The aspects that this model covers are
1. Entry of competitor
2. Threat of substitutes
3. Bargaining power of buyers
4. Bargaining power of suppliers
5. Rivalry among the existing players

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Bowling Club

Description
1. Entry of competitor
How easy or difficult it is for new entrants to start competing, which barriers do exist.
A segment’s attractiveness varies with the height of its entry and exit barrier. A
segment with high entry barrier and low exit barrier is a best and suitable choice. In
case of our bowling alley the entry barrier is high because of
 It is a capital-intensive project. It requires large capital investment approximately
2.75 million in our case
 Less established market of bowling in Pakistan
 Less customer awareness and aptitude toward the game
 Target segment of customers is limited
 Exit barrier is high because of high capital investment.

When both entry and exit barrier are high, profit potential is high but firm’s face more
risk because poor performing firm stay in and fight it out. So for the bowling club
both entry and exit barriers are
2. Threat of substitutes
It describes how easy a product or service can be substituted, especially made
cheaper. A segment is attractive when there is less number of available substitutes.

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Profits are high in this case. Matching these lines with the description of our bowling
alley results in less number of substitutes because
 High risk involvement
 Close monitoring of price
 Less competition on the market
As bowling is a game of its own type and a very few number of substitutes are
available in the market. It is indoor game so indirect substitutes can be table tennis,
squash, polo etc.
3. Bargaining power of buyers
Bargaining power of buyers refer to how strong is the position of buyers. Can they
work together in ordering large volumes? A segment is attractive when the buyers
possess a weak bargaining power. Buyer’s bargaining power grows when there are a
greater number of substitutes available. But in our case there is less number of
substitutes that results in lower bargaining power of our service users. Our approach is
developing superior offers that strong buyers cannot refuse.
4. Bargaining power of suppliers
It tells us how strong the position of sellers is. Do many potential suppliers exist or
only few potential suppliers. When looking from this perspective we find out that our
only supplier is Brunswick. So its bargaining power is high. Our supplier tends to be
more organized and for us less choices or substitutes are available. In our case the cost
of switching suppliers is high.

5. Rivalry among the existing players


It refers to the level of competition between existing players in the market. In our case
the level of competition is really high. The existing competitor of our bowling club is
Hotshots. It has been operating in Islamabad since last 5 years. It is no doubt a
dominant player but not that much that it couldn’t be defeated.

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2.7 AIOD Framework

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Need Activities Interests Opinion Demographics


Working executives, Formal, Hip hop,Peer Pressure,Age: 18 – 35
Social people, Trendy, Education, FLC: Single,
Students, Better off, Get-togethers, Status, Married, Full Nest
Style Music, Newspaper, Conscious, II,
Foreign Tours Culture, Ambitious Light to Medium
Community Users

Students, Bachelors, Hip, trendy Strivers, Age: 15 – 25


Independent Friends and Family Image, FLC:
Chatting, get-togethers Conscious, Single,
Fun Infotainment Internet, TV, Education, Light Users
Movies, Music, Magazines Friends
Parties
Business executives, Formal, Ambitious, Age: 28 – 40
Better off, Friends and Family Energetic, FLC:
Independent get-togethers, Authoritarian, Married, Full Nest
Relaxation
Movies, Music, Foods Politics II,
Parties Internet, TV, Medium Users
road trips, foreign Business
countries Magazines
Working Class, Trendy, hip Peer Pressure,Age: 18 – 40
executives, Students, Traveling, friend Politics, FLC: Single,
Ambience Bachelors get-togethers Culture, Newly Married,
Parties Internet, TV, Future Full Nest I,II
Magazines Business andMedium Users
Social Issues,
Education

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2.8 AIOD Analysis


The needs that we have identified in our AIOD Framework are Style, Fun, Relaxation
and Ambience. There are people in the world who have different moods, behaviors,
lifestyles, shared values and belief. It’s really hard to cater the needs of people of
every mood. But the most common needs that are common in them according to us
fall in the categories as given above. Youngsters mostly visit entertainment club for
style because it is the most in thing. Visiting these clubs and going out for bowling is
considered as an activity of high class. The interests of these customers are reading
newspapers, looking for what is new in the market for them, going with the changing
trends, hanging out with friends. The opinion that influences the decisions of these
people is their peers.
Second need identified is people searching for fun in every moment of life that passes
by them. They want to remember every single moment. They like to be independent,
watch movies, go out for parties and listen to music that soothes them. Their common
interests are sitting together with their family and enjoying those moments, sharing
fun moments with their friends and family over the Internet, reading to magazines and
watching television. These people are also influenced by the opinions of their friends
and peers. These people are mostly light users.
Relaxation is yet another need that cannot be neglected. People from the age of 28-40
are mostly worried about their fitness. They focus on how much of their calories are
burnt while they play games and to forget their worries and have less mental stress.
Mostly business executives and independent people lie in this category. They have
interests of reading business magazines, using Internet for carrier progression and
update news related to their jobs and attending family get-togethers. These people are
ambitious, energetic and authoritarian.
Last but not the least important need is ambience. People like to have a good
environment to relax them self. To feel young and have the same energy and passion
to do things as they had when they woke up. Working class mostly comes in this
category of need. People having this need mostly like traveling and going to different
places and watch the colors of life associated with the light. Peer pressure, business
and social issues influence these people.

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Bowling Club

2.9 McKinsey's 7S framework of Bowling club

Most of us grew up learning about 'the 4Ps' of the marketing mix: product, price,
place, and promotion. And this model still works when the focus is on product
marketing. However most developed economies have moved on, with an ever-
increasing focus on service businesses, and therefore service marketing.

To better represent the challenges of service marketing, McKinsey developed a new


framework for analyzing and improving organizational effectiveness, the 7S model:

Hard variables:

 Strategy: The direction and scope of the company over the long term.

The direction of the our bowling alley is to grow, retention satisfied customers,
creating brand name

 Structure: The basic organization of the company, its departments, reporting


lines, areas of expertise, and responsibility (and how they inter-relate). It will include
organization reporting lines, geography, etc.
 Systems: Formal and informal procedures that govern everyday activity,
covering everything from management information systems, through to the systems at
the point of contact with the customer (retail systems, call center systems, online

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Bowling Club

systems, etc). The decision-making systems within the organization can range from
management intuition, to structured computer systems.

Soft variables: The 4Ss across the bottom of the model are less tangible, more
cultural in nature, and were termed 'Soft Ss' by McKinsey.

 Staff: The Company’s people resources and how they are developed, trained,
and motivated.

Staff means that the company has hired able people, trained them well and assigned
them to the right jobs. We are going to hire highly committed staff. Provide them
with necessary training if required. Align their performance with company’s goals in
order to achieve efficient results and their proper utilization..

 Style: The leadership approach of top management and the company's overall
operating approach. Style refers to the employees shared and common way of
thinking and behaving, leadership style. The behavior of managers when interacting
with the staff and customers would be flexible and friendly. Managers would focus
on creating a healthy atmosphere within the club to make the customers feel relaxed
and satisfied.
 Skills: The capabilities and competencies that exist within the company. What it
does best.

The club provides the best customer service and ambience. The employees have the
skills required to carry out company’s strategy.

 Shared value: The values and beliefs of the company. Ultimately they guide
employees towards 'valued' behavior. We will guide employees towards 'valued'
behavior.

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Bowling Club

2.10 Financial Analysis of the Bowling Alley3


Cost is the value of inputs that have been used up to produce something, and hence
are not available for use anymore. In business, cost may be one of acquisition, in
which case the amount of money expended to acquire it is counted as cost. In this
case, money is the input that is gone in order to acquire the thing. This acquisition
cost may be the sum of the cost of production as incurred by the original producer,
and further costs of transaction as incurred by the acquirer over and above the price
paid to the producer. Usually, the price also includes a mark-up for profit over the
cost of production

Taking the installation and alley costs into account, eight lanes cost roughly Rs 2
crore (inclusive of duty at 55 per cent). With air-conditioning, pro-shop, amusements,
fast-food/cold drinks counter also included, the capital cost works out to
approximately Rs 3 crore. Some of the key points for the investment in setting up a
Bowling Alley are:

 The investment is capital intensive only at the outset.


 Once the center is built, the assets maintain their value for two decades or more,
so the business requires little ongoing working capital.
 Bowling is essentially an all-cash business. Cash flow from bowling, shoe rental
and food and beverage is immediate.
 Profitability is very high. Pre-tax profits in many places can be 30% or more of
revenue.
 In emerging markets, payback on Initial investment is often reached in as little as
1 to 2 years.
 Variable costs associated with bowling center operations are so low that gross
profit can be more than 90%.
 Once the center’s relatively fixed operating costs are covered, incremental sales
go straight to net profits. Little or no inventory is required, allowing for maximum
use of space and capital.

3. Source: Based on research through Internet and market surveys

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Bowling Club

3.1 Market positioning strategy


All marketing strategy is built on Segmentation, Targeting and Positioning (STP). A
company discovers different needs and groups in the market place, targets those needs
and groups that it can satisfy in a superior way, and then position its’ offering so that
the target market recognizes the company’s distinctive offering and image. If a
company does a poor job of positioning, the market will be confused as to what to
expect. If a company does an excellent job of positioning, then it can work out the rest
of its marketing planning and differentiating from its positioning strategy.
Positioning is the act of designing the company’s offering and image to occupy a
distinctive place in the mind of target market. The end result of positioning is the
successful creation of a customer-focused value proposition, a cogent reason why the
target market should buy the product or avail the service offered.

Positioning starts with a product. A piece of merchandise, a service, a company, an


institution, or even a person …. But positioning is not what you do to a product.
Positioning is what you do to a mind of the prospect. That is, you position the product
in the mind of the prospect. (Saying: Rise and Trout)

3.1.1 Functional Level Strategy

Initially to grasp rapid market share of the market the functional level strategy
selected for our bowling club is differentiation.
This strategy is selected because offering unique services to the customers always
have a successful impact on the business. This strategy will be achieved by following
different parameters that are illustrated follows.
As it is discussed that positioning plays a vital role in making any project successful.
The differences in the positioning strategy make it possible for the business to be
successful. The concept of bowling club is basically lying on differentiation strategy.
In order to survive in the competitive market, to attract and retain customers, to be a
trend setter in the market there should be distinctive features offered by the club to be
successful. The marketing strategy of our firm will be mainly focusing upon those
distinctive features offered by our club. These features will help us to gain

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Bowling Club

competitive edge on our competitors. To attract the customers by offering then


services which are second to none.
We have considered following criteria’s to make our service differentiated from our
competitor’s.
 Customer care: Our customers are our top most priority. Customers are highly
valued entity in our plan. Customer satisfaction will be focused while considering that
positioning as well as marketing strategy. Although this factor is considered by every
organization or service provider but our mission will be to be the number one in this
market by ensuring provision of quality customer service. This all will be achieved by
creating complete integration between the employees as well as empowering the
employees. Feedbacks and customer complaints will be followed properly and
problems will be eliminated on the top most priority.
 Distinctiveness: The service will be offered in a distinctive way. The ambience,
employees’ outlook, furniture, textures will be a class in its own way. Even the venue
selected for the club is distinctive in many cases (described in the place analysis).
Equipment installed by the Brunswick which is an American based firm having
expertise in the bowling will be an added distinction. No other bowling club in the
Pakistan is offering the equipment offered by Brunswick.
 Superiority: The difference is superior to other ways of obtaining the benefit.
Superiority will be the key element of service offered. Our bowling club will be
creating a brand image of its own class and style. People will be feeling it a superior
place to visit and to hang out.
 Preemptive ness: All the services and features offered by our bowling club will
be preemptive. We will be making our features hard to be copied by our competitors
in order to maintain a competitive edge. The competitors can copy the technology,
ambience and many other features. But the way these resources are utilized and
manipulated and utilized can never be copied. In order to make our services
preemptive we will be concentrating on the ways these services are offered.
 Affordability: The bowling club will be specifically considering the
affordability of our customers. In order to gain market share and to make place in the
competitive market the affordability will be used as a tool. Initially to attract
maximum number of customers the price of tickets and membership fees are set a
little bit low as compared to our competitor. This only aims to attract customers from

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Bowling Club

maximum range of income groups so that the bowling club becomes more popular in
lesser time. Charging low price doesn’t mean that we will be sacrificing on the quality
of service provided to the valued customer. This strategy is only adapted to attract as
much number of customers as we can.
 Profitability: The goal of any business is to be profitable. All the distinctive
features offered would be ensure the maximum profitability of the business. The
pricing strategy will also be set to meet this factor in an efficient manner. If all the
plans made to make the business successful the club will be able to cover the cost in
only a short time of two years.

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Bowling Club

3.2 Competitive Analysis


Description of the Model4
This matrix examines how an organization might gain a competitive advantage. It
measures relative costs and the degree to which the organization can differentiate its
products/services from those of its competitors.

Maintain Specialty Outstanding Hope for Growth Maintain Cost


Success Market Advantage
Differentiation: High Differentiation: Differentiation: Low Differentiation: Low
Relative costs: High High Relative costs: High Relative costs: Low
Relative Costs: Low
Indicates a specialty Outstanding You have high costs Your products or
company that opportunity for and a commodity services are much
markets unique success. Freedom to type of product. The like your
products at premium compete at any only hope for competitors'. If you
price. price. success is rapid can maintain your
growth of the cost advantage, you
market. can compete well as
the lowest cost
producer.

Competitive Advantage
D D
E I H
Maintain Specialty Outstanding Success
G F I
R F G
E E H Bowling Club
E R
E
OF N
T
I L Hope for Growth Maintain Cost Advantage
A O Advantage
T W
I
O
N

High Low
Relative Cost

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Bowling Club

4. Source: Model selected from <www.businessballs.com>

3.3 The BCG Competitive Advantage Matrix5

The Boston Consulting Group (BCG) has distinguished four types of industries based
on the number of available competitive advantages and their size.

 Volume Industry: One in which company can gain only a few, but rather large,
competitive advantages. Profitability is correlated with company size and market
share.
 Stalemated Industry: One in which there are few potential competitive
advantages and each is small. Companies can try to hire better salesperson, entertain
more lavishly but these are small advantages. Profitability is unrelated to company
market share.
 Fragmented Industry: One in which companies face many opportunities for
differentiation, but each opportunity for competitive advantage is small. A restaurant
can differentiate in many ways but end up not gaining a large market share. Both
small and large restaurants can be profitable or unprofitable.
We have put our bowling club in the fragmented industry. The reasons are
 There are many opportunities for differentiation. New product
lines and new services can be introduced to the customers as business
starts expanding. The ambience, services or game offered can be
increased in variety of ways.
 Opportunities for competitive advantages are small because the
bowling club is offering a game, basic ingredient of which will remain
same.
 Specialized Industry: One in which companies face many differentiation
opportunities, and each differentiation can have a high payoff. Among companies
making specialized machinery for selected market segments, some small companies
can be as profitable as some large companies.

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Bowling Club

5. Source: Matrix studied from Marketing Management by Philip Kotler

Number of Approaches to Achieve Advantage


S Few Many
I
Z
E Volume Specialized
LARGE
OF

A
D
V Stalemated Fragmented
A Bowlin
N
T Small
g
A Club
G
E

Differentiation Variables
The following variables will be considered to gain competitive advantages.

Services Personnel Channel Image


Ordering ease Competence Expertise Symbols
Delivery Courtesy Performance Atmosphere
Installation Credibility Events
Customer consulting Reliability
Responsiveness
Communication

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Bowling Club

Services differentiation
The key to competitive success may lie in adding valued services and improving their
quality. The Bowling Club will be differentiated through number of parameters
selected to ensure success.
 Ordering Ease
Ordering ease refers to how easy it is for the customer to place an order with the
company. In our club there will be a sequence of six counters that will ensure the
ordering ease. The counters will be designed in such a way that all the pricing menu
of the club should be visible to the customers. Furthermore, four counters will ensure
that customers don’t have to wait for a long time even in the busy hours.
 Delivery
Delivery refers to how well the product or service is delivered to the customer. It
includes speed, accuracy, and care attending the delivery process. Each and every step
designed for the launching of the bowling club ensures the in time delivery of services
with quality. Specialized event arrangement like birthday parties etc. will be available
to the customers of the bowling club. This will add to the net revenues of the firm as
well as the customer serviceability.
 Installation
Installation refers to the work done to make a product operational in its planned
location. Differentiating at this point in the consumption chain is particularly
important for our company. All the installation will be done by Brunswick to ensure
the utilization best possible equipment available in the global market and availability
to error free operations.
 Customer consulting
Customer consulting refers to data, information system, and advice services that the
service provider offers. Training of customers is the major emphasis of the club. And
to provide customer consultation expert instructors of the market will b hired which
will help the customers to learn the game.

Personnel differentiation
Human resource has always remained a source to gain competitive advantage. Better-
trained, loyal and professional people boast up the organization like no one can. The
following factors are identified to gain professional differentiation.

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Bowling Club

 Competence
Competence deals with the required skills and knowledge of employees.
 Courtesy
They are friendly, respectful, and considerate.
 Credibility
They are trustworthy.
 Reliability
They perform the service consistently and accurately.
 Responsiveness
The employees respond quickly to customers request and problems.
 Communication
They make an effort to understand the customer and communicate clearly.
Employees training and development will fulfill all above criteria. Which will done
by the parent company installing the equipment.

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Bowling Club

3.4 Product Life Cycle (PLC) marketing


strategies
A company’s positioning and differentiation strategy must change as the service
provided, product, market, and competitors change over time. The concept of PLC
and the normal changes as the product or service passes through each life cycle stage
is asserted into four stages
1. Service or product has limited life.
2. Sales pass through distinctive stages, each posing different challenges,
opportunities and problems to the provider.
3. Profits rise and fall at different stages of the product life cycle.
4. Requiring different marketing, financial, manufacturing, purchasing, and
human resource strategies in each life cycle stage.

PLC Graph

S
A Introduction of new services
L
E
S

and

P
R
O
F
I
T
S Introduction Growth Maturity Decline

The bowling club in the maturity phase will be offering new product lines and
services. For example, new indoor games can be introduced, new food items in the
snack bar, extension of building to provide other features. This is planned to have
continued growth and to maintain the market share.

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Bowling Club

Summary of product life cycle characteristics,


objectives and strategies
Characteristics Introduction Growth Maturity Decline
Sales Low sales Rapidly rising Peak sales Declining
sales sales
Cost High cost per Average cost Low cost per Low cost per
customer per customer customer customer
Profits Negative Rising profits High profits Declining
profits
Customers Innovators Early Middle Laggards
adopters majority
Competitors Few Growing Stable Declining
number number number
beginning to
decline
Marketing Objectives
Create product Maximize Maximize Reduce
awareness and market share profit while expenditure
trial defending and milk the
market share brand
Strategies
Advertising Building Build Stress brand Reduce to
awareness awareness differences level needed to
among early and interest in and benefits retain hard-
adopters and the mass core loyal
dealers market
Sales Use heavy sales Reduce to Increase to Reduce to
promotion promotion to take courage brand minimal level
entice trial advantage of switching
heavy
customer
demand

3.5 Perceptual Maps6


Perceptual mapping has been used as a strategic management tool for about thirty
years. It offers a unique ability to communicate the complex relationships between

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Bowling Club

marketplace competitors and the criteria used by buyers in making purchase decisions
and recommendations. Its powerful graphic simplicity appeals to senior management
and can stimulate discussion and strategic thinking at all levels of all types of
organizations.
Perceptual mapping can be used to plot the interrelationships of consumer products,
industrial goods, institutions, as well as populations. Virtually any subjects that can be
rated on a range of attributes can be mapped to show their relative positions in
relation both to other subjects as well as to the evaluative attributes. Perceptual maps
may be used for market segmentation, concept development and evaluation, and
tracking changes in marketplace perceptions among other uses.
Perceptual mapping involves two steps:
1. Data collection: We completed this phase by marketing research through
questioners and interviewing different bowling players (see market research
questioner in the appendix).
2. Data analysis and presentation. The data provided by questioners is analyzed
to complete perceptual maps (see market research analysis result in appendix).
Attributes with similar characteristics

Group 1 Group 2 Group 3 Group 4 Group 5


Availability Brand name Technology Ambience Entertainment
Customer Interior
Location Advertisement Luxurious
Service Design

Scaling: 1-8
1- Worst
8- Best

6. Source: Data about hotshots collected by visiting and interviewing their employees

3.5.1 Description
Group 1
Attribute Bowling Hotsho
s club ts

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Bowling Club

Availabili 4 6
ty
Location 6 6

The customers mostly target entertainment centers like Hotshots and bowling club
during the evening and night. Availability refers to the timings for which these centers
are available for entertainment. The timings should be adjusted such that maximum
profitability is achieved by eliminating overhead cost related to utility bills and others.
Bowling club, with respect to location is located at the most suitable place for it.
Jinnah Park has a wide parking space and it captures wide variety of people because
of various recreations spots within it. In location, according to our analysis bowling
club is located at a good place.
In case of location both have been equally rated because Hotshot is also located at a
good place in Islamabad, where as Bowling club is also located at a place where it can
grasp greater attention. With respect to availability Hotshots is given higher rates
because people at Islamabad mostly like to hangout late at nights where as in
Rawalpindi, it is the other case around.
Group 2
Bowling Hotsho
Attributes
club ts
Brand name 5 6

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Bowling Club

Advertisem 6 4
ent

Hotshots, the first mover in introducing bowling in Islamabad initially grasped a wide
range of customers – reference questionnaires analysis - it was creating a brand name
and could excel in it as at that time there was no competitor. But the management
thought that being only the first mover creates a brand name. They did not go for
proper advertisement and smoothly lost their goodwill and customers. Bowling club is
not following the same lines. As per our analysis, people are still very much interested
in bowling as a game. Targeting the customers of Rawalpindi market in particular and
of Islamabad in general requires a great effort that can only be achieved through
proper advertisement.

Group 3
Attribute Bowling Hotsho

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Bowling Club

s club ts
Technolo 6 4
gy
Customer 7 4
Service

Businesses today are realizing the fact that taking care of their customers is linked
with its overall growth. Growth refers to the increase in market share. After analyzing
the position where “Hotshot” stands in customer service, we came to the point that the
level of customer service is very low. They are using the technology which meets the
current customer requirements but lacks in efficiency because its not latest.
Computers and other electronic machines in the club requires more time to operate,
resulting in dissatisfied customers, hotshots lacks in technology and equipments –
because of no re-investments - at the same time their interest is towards making
profits not going for satisfied customers. And in this regard we have given them lower
rates. Bowling club has been given a rate of 7 because in their mission statement it is
stated that they value customers and over all direction of management is to provide
their customers with all that they have wished of. Since Bowling club is new in the
market and the investment is also new, it has a competitive edge with respect to
Hotshots and has a greater rate then it.
Group 4

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Bowling Club

Attributes Bowling Hotsho


club ts
Ambience 5 4
Interior 6 5
Design

Interior design matters a lot to the customers. For a person who has never visited the
club, an outlook is a first positive impression on him. Hotshots design is too simple.
At the same time, it has not enough space for the customers to sit and chat for a while.
Customers over there have to keep on standing in cases when it is crowded with
people. It also lacks in ambience. Blue lights glow within the club, which according to
our analysis does not create soothing effect.
Bowling club, with respect to its design has been designed using the help of energetic
designers and architects that have an experience of designing clubs. The factor of
ambience was also under the consideration of management because they believed an
ambient and healthy atmosphere with in the club results in overall satisfaction of the
customers.
Group 5
Attributes Bowling Hotsho

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Bowling Club

club ts
Entertainm 6 5
ent
Luxury 6 6

The overall reason of existence of the bowling alley is entertainment. People today, in
this busy world are looking for more places to have fun and enjoy. Clubs like
bowling, try to focus on providing maximum level of entertainment. Bowling club has
a very small edge of entertainment over Hotshot because it is providing a meeting
launch for people to relax themselves and at the same time it is also providing a space
for youngsters to play computer games on LAN network

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Bowling Club

3.6 BCG Matrix for Competitor

After a critical analysis about the relative market share and sales growth rate;
according to our analysis we have placed “Hot Shot Bowling Alley” at Cash Cow
(High share, Low market share). Bowling Alleys in Pakistan’s market particularly in
Rawalpindi/ Islamabad market is a business with a high profit. The reason for the
profit in entertainment sector is because of increasing awareness among the people
and trend towards bowling as a game. The advantages of these activities on
individual’s life .The choices and preferences of people to choose the places to chill
out are changing dramatically. People are more attracted towards western cultures
because of changing trends. Thus they are now attracted by places like bowling alleys
with more western environment.

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Bowling Club

3.7 Marketing Objectives


To thrive in today's competitive climate, it is imperative to have a competitive edge
over your competitors. Planning, organizing, leading and controlling ones operations
effectively and efficiently is the dream of every organization on this earth. Focusing
on every single aspect and finding new ways to achieve high customer satisfaction
and profits are also one of the key factors.
The objective of marketing is to set out what the business is trying to achieve. Mostly
these objectives are set out that concerns business as a whole and sometimes there are
specific objectives for marketing activities. These objectives should state exactly what
is to be achieved, should be measurable so that it is possible to determine whether it
has been achieved, should be realistic given the circumstances in which it is set and
the resources available to the business, should be relevant to the people responsible
for achieving them and last but not the least they should be set with a time-frame in
mind i.e. these deadlines also need to be realistic
As discussed, marketing objectives for the Bowling club are also almost the same.
They also follow the SMART criteria. The ultimate objective of our marketing
campaign is to achieve high volume of profits and at the same time creating
awareness among the people of the game. The measurement of these goals is done be
looking at the sales and increase in customer base over regular interval of time. These
goals are no doubt realistic and if worked whole-heartedly can be achieved. The
deadlines to achieve these goals would be set to see how far the marketing objectives
have been achieved.
Marketing objectives would help the Bowling club to stand in front of its competitors.
Hotshots, pioneer in launching this game in Islamabad region. The ways adopted by
us would include going for an effective market survey through general and specific
questionnaires, looking for what additional services do the customers desire and to
come up with innovative ideas to provide them with the best value of their money.

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Bowling Club

4.1 Marketing Mix

Marketing decisions generally fall into the following four controllable categories:
 Product
 Price
 Place
 Promotion

Marketing mix includes product planning, pricing, branding, distribution channels,


personal selling, advertising, promotions, packaging, display, servicing, physical
handling, and fact-finding analysis. The purpose of the Marketing Mix is to help
develop a mix that will not only satisfy the needs of the customers within the target
markets, but simultaneously to maximize the performance of the organization.
For Bowling club, the marketing mix encapsulates:

1. Product
Making decision about the product that is going to be marketed comes first. As
we are not offering products rather providing services, so our target would be
focused more towards service decisions. The variety services that we are
offering under one roof include bowling game in particular and in general a
small meeting launch where individuals would relax them selves, have space
to discuss the hot up to date issues and the latest trends and changes happening
in accordance to their own interests. Focusing on maximum customer
satisfaction and providing our loyal customers with hygienic environment that
adds value to their health would focus the quality of the service. Interior
design would be in accordance to the latest designs that most of the successful
bowling alleys are having today. Safety of our valuable customers would be
ensured. Customers would be given on time general know how of how to play
the game and a brief over view of how does this game adds value to their
health. We would be focused towards providing superior service and
improving quality and performance over time.

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Bowling Club

2. Price
Pricing is the most important factor determining cash inflows to cater for the
cash outflows. It helps in keeping the company liquid and availing operating
profit that would be crucial for survival of the company. Pricing can also be
used for achieving the company’s competitive advantage. Due to huge fixed
costs, the idea is to use the facility as frequently as possible so that the cost
gets divided over more number of customers

3. Place
The business must have a location that it can afford, and that is convenient and
suitable for customers and any supplier. Place decisions are those associated
with channels of distribution that serve as the means for getting the product to
the target customers. The distribution system performs transactional, logistical
and facilitating functions. The place that we have selected for our service-
providing center is Jinnah Park in Rawalpindi. It is the best available place for
providing entertainment for people of all ages. With in the premises of the
park there are giant food providing restaurants like McDonalds and Papasellis.
Presence of these would help us attract customers.

VenueSelected
of project
Site

Beauty of venue
Environment

Relaxing Place

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Bowling Club

4. Promotion
Promotion decisions are those related to communicating and selling to
potential consumers. Since these costs can be large in proportion to the
product price, a break-even analysis is performed when making promotions
decisions. It is useful to know the value of a customer in order to determine
whether additional customers are worth the cost of acquiring them. While
promoting the service, we assume that the bowling club has a whole battery of
effective promotion tools to stimulate more customers. In our case, the
purpose of the marketing is to provide better services to more people more
often for more money in order to make profit. We are going to promote our
club according to pull promotional strategy. Proper advertising is also done in
order to create more awareness, make customer base, and brand name.
Friendly relationship with Jinnah Park’s management and with fast food
restaurants available in the park would be a major move of our promotional
campaign.

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Bowling Club

5.1 Pricing
Pricing is the manual or automatic process of applying prices to purchase and sales
orders, based on factors such as: a fixed amount, quantity break, promotion or sales
campaign, specific vendor quote, price prevailing on entry, shipment or invoice date,
combination of multiple orders or lines, and many others. Automated systems require
more setup and maintenance but may prevent pricing errors.

As per the analysis of the primary research we conclude the following key points:
 Only five percent of the people don’t have budget for out door entertainment but
seventy six percent people have budget for out door sports.
 Seven Percent people don’t have budget for out door entertainment because they
don’t have time on the other hand forty four percent people don’t have budget
for out door sports. This leads to the analysis that people judge sports to be more
time consuming activity compared to general entertainment.
 Forty percent of the people have never played bowling
 Majorities don’t play the game because they don’t know the rules of the games.
The other reasons for not playing include high pricing and unavailability of
timings.
 Most of the people think that bowling is an exciting game and is a recreational
activity.
 Forty percent of the people don’t even know where the bowling alleys are located.

Now based on the above analysis of the primary research we can easily judge that
current pricing per game is not affordable for the people so price needs to be low in
order to attract more people.
Secondly since most of the people don’t go out alone, multiple games discounts can
be offered to the customers.
The pricing model is mentioned below:
Since the current rate per bowling game is Rs.300 and the discounted rate is Rs.200,
bowling club will have a standard rate of Rs.150 per game.
Discounts on the family membership can be offered to the customers as per the
pricing mentioned in the table below:

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Bowling Club

Annual fee Under 18 18-30 30-40 40-above


Diamond 5000 50 100 75 50
Platinum 2000 70 120 95 70
Gold 1000 90 140 115 90

The significance of the pricing according to the segmentation based on age is the demographic analysis
of Pakistan, which suggests that the most active group as far as physical activity is concerned is
between 18 to 30 years. The people over or under this age don’t have the schedule for physical activity
Taking a lineage of 50 (lineage is number of games per lane per day) at an average of Rs 100 a game,
an eight-lane center would generate Rs1.4 crore per year. Average is taken to be Rs.100 because we
anticipate memberships to be sold which would decrease the average compared to the standard of
Rs.150.

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Bowling Club

5.2 Projected Profit and Loss statement


Year - I Year - II
Revenue

Projected sales 5760000 6336000


Members fee 600000 660000
Refreshment
5400000 5940000
counter
Total 11760000 12936000

Less operating expense


Salaries 1296000 1360800
Utilities 1800000 1890000
Financial Charges 568,000 522,560
Depreciation 1,165,500 1,165,500
Total 4829500 4938860

Operating Profit 6930500 7997140


Profit before taxation 6930500 7997140
Taxation 1039575 1199571

Profit after taxation 5890925 6797569

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Bowling Club

5.3 Projected Balance Sheet

Year - 0 Year - 1 Year -II

Fixed Assets
Bowling 15,000,00 14,325,00
13,650,000
equipment 0 0
Building 5,400,000 5,157,000 4,914,000
Furniture and
2,500,000 2,387,500 2,275,000
fixtures
Air conditioning
500,000 477,500 455,000
plant
Pre-operational expenses 2,500,000 2,387,500 2,275,000
25,900,00 24,734,50
Total fixed assets 23,569,000
0 0

Current Assets
Security deposit 1,000,000 1,000,000 1,000,000
Advance rent 1,800,000 NIL 1,800,000
Cash in hand 1,200,000 9,488,425 9,238,009
Total current 10,488,42
4,000,000 12,038,009
assets 5

29,900,00 35,222,92
Net Total 35,607,009
0 5

Owner's Equity
22,800,00 22,800,00
Capital 22,800,000
0 0
Accumulated
NIL 5,890,925 6797569
Profit

Long Term Loan 7,100,000 6,532,000 6,009,440

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Bowling Club

29,900,00 35,222,92
Net Total 35,607,009
0 5

5.4 Projected Cash Flow

Year - I

Profit before Financial


Charges & Taxation

Depreciation

Cash from other sources


Owner 22,800,000
Bank Finance 7,100,000
Total Sources 29,900,000

Applications:
Fixed Assets 23,400,000
Preoperational Expenses 2,500,000
Working Capital 4,000,000
Re-Payment of Loan NIL
Tax NIL
Total 29,900,000

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Bowling Club

5.5 Break Even Analysis

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Bowling Club

5.6 Implementation
About Brunswick7

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Bowling Club

Equipment installation for “bowling club” is outsourced to Brunswick and


international firm of bowling.
It’s almost impossible to trace the rise of bowling without simultaneously
documenting the rise of Brunswick. From the very beginning, bowling and Brunswick
have shared the same path. Brunswick founder John Moses Brunswick played an
integral part in the birth of the game by building a company dedicated to taking games
like billiards and bowling out of fancy Victorian parlors and into the public arena.
Moses Bensinger (married to Eleanora Brunswick, daughter of John Moses
Brunswick) had a vision for the modern game of bowling. He standardized rules for
the game and organized the first American Bowling Congress in 1895, which held the
first significant bowling tournament in 1902. The ABC became a prominent fixture in
competitive, professional bowling, and is responsible for developing the professional
game and global appeal of the sport as it is known today.
Brunswick has contributed directly to the global growth of bowling by opening the
first bowling center in Moscow in 1976. It has also established a technological and
manufacturing presence that reaches around the globe – from its state-of-the-art
research and development facilities in Muskegon, Michigan, to its pinsetter
manufacturing plant in Székesfehérvár, Hungary, to its sales and support resources in
Hong Kong, China.
During the past century, Brunswick’s passion for the game has never wavered.
Brunswick has always been dedicated to improving both the tenpin game and the
experience around it. Brunswick has continually worked to grow bowling on a global
scale and has helped to create the $10 billion industry that it is today.
In the last 100 years, Brunswick has known that the future of bowling, and the
bowling experience, depends on the success of its partnership with center investors
and owners like you. That’s why Brunswick is the world’s leader in building new
centers and modernizing existing centers. Today Brunswick is the bowling industry's
premier full-line, full-service provider. And only Brunswick offers a complete and
comprehensive network of products and services designed to assure your new center’s
complete success and continued profitability.
7. Source: <www.brunswickbowling.com>
5.6.1 Interior Design

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Bowling Club

This bowling alley design allows for 8 lanes, plenty of seating for talking, observing and food storage
space and it's all within one dome.

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Bowling Club

This bowling alley design features 8 bowling lanes, a snack bar, lounge and meeting rooms
which can all be observed from the control desk in the center of the dome.

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Bowling Club

6.1 Promotion Strategies


Following are the different means we intend to use for our service promotions:
1. Bill Boards / Holdings
Put up as on pre-install billboards at different key locations.
Adam-G chock in front of KFC building, Rawalpindi
Traffic signal, in front of Pearl Continental, Rawalpindi
Top of Saeed Book Bank, Jinnah Super, Islamabad
Center Park, F-10 Markaz, Islamabad
2. Banners
Jinnah Avenue to F-10 Markaz
Garrison Scheme to Katcheri chock
3. Broachers
Broachers would be distributed in different universities of Rawalpindi and Islamabad through the
institutes sports/related departments. The same will be distributed through an extensive promotional
campaign in front of universities/college and a few other selective locations.
4. Internet Communities
Different Internet communities would be set to promote our service, like Orkut, Hi 5,
Yahoo chat rooms etc
5. Cable network commercials
Our commercial ad which is in the process of being shot these days will be run across different cable

networks in areas like Chaklala, Askari, Westridge, and Islamabad.

6. Demo competitions
To generate a general awareness a friendly competition will be held towards the end
of the first month of operations between different colleges of Islamabad and
Rawalpindi and organizations, which are willing to participate.
7. F.M Ad’s
Audio Ad’s would be run on F.M 89 between 8am to 9am and 6pm to 7:30pm.

References

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Bowling Club

1. Mr. Tauseef Zaman


Director New Development
Brunswick International, United Kingdom.

2. Col. Rahid Ali


Real State Manager
Jinnah Park, Rawalpindi

Electronic references

 http://www.brunswickbowling.com/planning
 http://www.britannica.com/ebi/article-9273315
 http://ks.essortment.com/figureskatingh_rlzl.htm
 http://www.iass.com/bus.html
 http://www.ten-pinbowling.com/about_TenPinBowling.htm
 http://www.referenceforbusiness.com
 http://www.smeda.org
 http://www.bowlingalley.walkerart.org
 http://www.abc.net.au

Books
 Marketing Management by Philip Kotler
 Principles of Marketing by Kotler and Armstrong
 Marketing Management by Micheal R. Czinkota and Masaaki Kotabe

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