Professional Documents
Culture Documents
Mission Statement
“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.
1
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
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:
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
2
Bowling Club
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.
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
3
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
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
4
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
5
Bowling Club
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.
6
Bowling Club
Income statement
Year - I
7
Bowling Club
Revenue
8
Bowling Club
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.
9
Bowling Club
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
The proposed health club will provide the following services to its members:
Bowling Facility
10
Bowling Club
Snack Bar
Juke Box
Refreshments center
Gossip centers
Marketing
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.
11
Bowling Club
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.
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.
12
Bowling Club
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>
13
Bowling Club
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>
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.
14
Bowling Club
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.
15
Bowling Club
16
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
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.
17
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,
18
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.
19
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.
20
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.
Establishing Pricing
21
Bowling Club
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.
22
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.
23
Bowling Club
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.
24
Bowling Club
25
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.
26
Bowling Club
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.
27
Bowling Club
28
Bowling Club
29
Bowling Club
30
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.
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
31
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.
32
Bowling Club
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:
33
Bowling Club
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
34
Bowling Club
35
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.
36
Bowling Club
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
37
Bowling Club
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.
38
Bowling Club
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.
39
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.
40
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.
41
Bowling Club
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.
42
Bowling Club
43
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
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
44
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
45
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
46
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
47
Bowling Club
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
48
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
49
Bowling Club
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.
50
Bowling Club
51
Bowling Club
Marketing decisions generally fall into the following four controllable categories:
Product
Price
Place
Promotion
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.
52
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
53
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.
54
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:
55
Bowling Club
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.
56
Bowling Club
57
Bowling Club
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
58
Bowling Club
29,900,00 35,222,92
Net Total 35,607,009
0 5
Year - I
Depreciation
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
59
Bowling Club
60
Bowling Club
5.6 Implementation
About Brunswick7
61
Bowling Club
62
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.
63
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.
64
Bowling Club
65
Bowling Club
66
Bowling Club
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
67
Bowling Club
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
68