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A Service Marketing Plan for
Star City Philippines
Presented to
Mr. Jose Luis Liongson
Marketing Department
De La Salle University – Manila in partial fulfillment
Of the final course requirements In Service Management
Submitted by:
Aw, Brandon Jon
Francia, Mikhail Goldwyn
Martinez, Jesus Mao
Soriente, Miguel Alberto
MARKSEV K32
April 7, 2014
OUTLINE:
I. Executive Summary
II. Scope & Limitations
III. Industry Analysis
IV. Current Company/ Brand
V. Competitive Analysis
VI. TOWS analysis
VII.TOWS matrix (Max, min, avoid, watch out)
VIII. Porter's Analysis
IX. Fishbone Diagram
X. Goals and Objectives
XI. Target Segment Description
XII. Target person profile
XIII. 8 P's
XIV. Flower of Service
XV. Investment Plan
XVI. Estimates of profitability
A. Appendices
I. Executive Summary
Second to the market leader in an industry which is slowly turning into
irrelevancy, Star City Amusement Park is often plagued with problems coming from both
internal and external forces which spell doom for the company unless active measures
are taken. These are highlighted by doubts about the park’s safety as well as an
apathetic Public Relations team who seem to have other concerns not related to the
wellbeing of the company. Recognizing this by way of surveys sent out to potential
customers as well as actual inspection, the group devised methods by which Star City
can once again be relevant in the industry. A return to former glory is worked towards
and this includes a retrofitting of the park itself, highlighted safety measures, and an
entirely new Public Relations team hereby known as the “Star Friends”. With these
changes the group hopes to once again capture the interest and wonder of the broad C
customers as well as possibly entertaining more diverse individuals in the future.
II. Scope & Limitations
The analysis and subsequent marketing plan was conducted in order to
determine the overall (financial and reputational) health of the amusement park, Star
City, with respect to the current industry and competitive market. Most of the research is
directed towards the expected consumer base (families under socioeconomic class C2
to C1) and this data was gathered by a bevy of research collection methods such as
personal interviews, online surveys, customer testimonials from various online review
websites. The study is further directed to cover brand awareness, usage, reputation,
competition, and others as a basis for recommending future potential actions that may
improve the brand in all its aspects.
This study however also comes with its own limitations as the set-up plan is only
covered to primarily benefit and increase customers from the aforementioned
socioeconomic class C1 to C2 and specifically to those located within the Greater Metro
Manila area. A minimum of thirty respondents were approached by way of a survey to
form the base of the public opinion and a UAI (User-Attitude-Image) method - minimum
of 30 respondents - while further supplementing the results with OLS regression.
III. Industry Analysis
Officially part of the Personal and Recreation Industry, the smaller amusement
park industry have long been a regular option for locals and foreigners
Star City is part of the theme park industry in the Philippines. Its main competitor
is Enchanted Kingdom. It also used to compete with Boom na Boom before its closure.
To a lesser extent, it also competes with Manila Zoo.
Star City’s target market is families from socioeconomic class C and D. Families
from class A and B very rarely go to Star City. Most of these families have gone abroad
and visited other theme parks. They have a higher standard for theme parks and will not
patronize Star City. There are two main groups that go to Star City, families with young
children (aged 7-15) and young barkadas (aged 16-21.) Customers come from all over
Metro Manila and even from provinces to the north and south of Metro Manila.
This industry is seasonal. The most profitable season for theme parks is
Christmas season, beginning December all the way to New Year. This is because C
and D class are receiving their 13th month bonus and have extra spending power. They
are looking for ways to celebrate Christmas with their young children. Last Christmas
Day of 2013, Star City management estimated at least 30,000 customers for that single
day. Theme parks are also profitable during schools’ summer break period from April to
June.
IV. Current Company/Brand Situation
Made into fruition by media mogul Fred J. Elizalde back in 1991, Star City
(officially under the company Star Parks Corporation) was made it into an independent
park after it separated from Toys and Gift Fair in Pasay. Since then it had been
providing fun and enjoyment to the people from kids to adult through their rides, arcade
games, mini games, food and etc with great accessibility. They expanded their park
through having snow world and laser tag. Star City is very well known in the market of
Filipinos and normally associated with the broad C market. Normally, SEC A, B and
upper C, go to Enchanted Kingdom since they have the budget to go there and
transportation is more readily available to most of them. There are no other branches of
Star City. They are very accessible since they can be accessed through riding public
transportation which immensely benefits the masses
With Fred Elizalde helming this company as well as the adjacent Manila
Broadcasting Company and Aliw Theater, he regularly relies on subordinates to deal
with the inflow of work-related projects. The hierarchy proceeds as follows:
Star City has an entrance fee of 65php with no rides included. They have a 3 ride
ticket which amounts to 360 and a ride-all you can that amounts to 420. They have
additional exclusive rides and facilities offered like laser tag for 100php, snow world for
130php, scream adventure for 120php and zip adventure for 100php. As one may
observe, Star City’s business model is wholly based around providing the greatest
amount of freedom/options for the consumer to maximize his costs while trying to keep
it as low as possible. It is based around the structure of profiting from bulk sales by
customers who recognize the affordability of the product.
Establishing and sustaining an amusement park in Manila is not as easy as it is.
There’s a high financial barrier that has to be overcome by the owner in order to start up
the amusement park business. Sustaining is another problem, since amusement park is
not a daily need of any market. There are some amusement park like Boom na Boom
that didn’t manage to survive the market. However, Star City, which had built a name in
the industry of amusement parks, remained in the industry for already 23 years even in
the midst of the seasonality of the amusement park sales.
V. Competitive Analysis
Product
Offerings
Pricing
Strategy
Location Promotions
Enchanted
Kingdom
Child-centric
Rides and
Attractions;
Traditional
Amusement Park
Promotional
Pricing
(P500+)
Santa Rosa, Laguna
(developing
provincial location)
The Bay Family-centric
Attractions and
Tourist Spot
Promotional
Pricing
(P500-)
Manila Bay -
Seaside Boulevard,
Pasay City (highly
developed flatland
near key business
sectors)
Manila
Ocean Park
Aquatic Zoo,
Child-centric
Promotional
Pricing
Luneta, Metro
Manila (bay area
Attractions, and
Social Hub
(P500++) near key business
sectors)
The original main competitor of Star City as far as amusement parks are
concerned would obviously have to be Enchanted Kingdom and their status as the
market leader in the industry. With an approximate 80% preference rating among the
public for the park in a survey held a few years ago (symbianize.com, 2010),
Enchanted Kingdom has long held the title as the best amusement park in the whole
country.
Located in the Santa Rosa area approximately 29 kilometers from the Metro,
customers usually have to take an hour-long trip to get to the park as compared to a
relatively shorter time for Star City. These customers have all been observed to lie
somewhere around social class C2 (skilled manual workers and their families) and this
is something that is inherently shared with Star City as similar groups have been
observed in the area. Rides and attractions here are quite similar to the ones in Star
City but it seems that these are more geared towards attracting individuals of a lower
age bracket as compared to a relatively more mature theme for Star City
(smartparenting.com, 2012). Also coming with this is the fact that it is more expensive to
go to Enchanted Kingdom not only because of travelling costs but the costs of
admission are also more expensive than the promos offered by Star City. As of writing,
the weekday and weekend rates for children (36”-47”) are P250 and P350 respectively
while adult rates are P500 and P600. Children below 36” enter free and unlike Star City,
there is no rate for entrance (no rides)
Apart from Enchanted Kingdom, recent developments by the SM Development
Corporation has also led to the rise of another amusement park located near the Mall of
Asia. Known as the The Bay amusement park, it is a small park recently established as
part of an expansion project by the SMDC and runs the length of about 1.5 kilometers
along the bay. Rides here follow the traditional theme of small amusement parks with
offering such as bumper cars and Tilt-A-Whirls while their flagship ride is the MOA Eye
(considered to be the tallest Ferris Wheel in the Philippines). Prices are relatively cheap
as they charge 50 pesos for regular rides, 100-120 pesos for larger rides, and 150
pesos for the MOA Eye (depending on seasonality). This is especially dangerous for
Star City due to its proximity to a large consumer base by way of the nearby Mall of Asia
as well as the easy accessibility it offers to potential park goers.
There are also alternative sources of family-centric entertainment in Manila which
comprises the indirect competition and this is primarily represented by Manila Ocean
Park. With a similar entertainment value present here plus the fact that prices here are
based on industry standard, establishments such as this have high potential in stealing
possible park attendees.
VI. TOWS Analysis
Despite its lagging status as one of the country’s premier amusement parks
located in the Metro, Star City still can rely on a few key strengths based on its offerings
for the past few years. Like with any amusement park this would rely on a fairly
extensive variation of attractions to be offered to the public. Ranging from rides to
stages and everything and between, this is the basis of their family-centric experience
which they work to promote. Another strength that then comes from this which is the
large target market they have which naturally stems from having a product which
appeals to the whole family. Apart from having rides which provide entertainment for all,
the offerings also have to specify to specific target markets to provide a varying range of
products as well as maximize the enjoyment of each individual. Another strength they
have would be the relative flexibility of their park packages which more or less give you
freedom of which rides you want to go to and which ones you don’t. This was targeted
for the consumers which want to maximize their cost as well as somewhat bring it down
while still allowing them to enjoy the amenities of the park. So far, this has been
successful in bringing in patrons. And finally, its last strength lies in their proximity to
major residential and commercial areas which mean that the accessibility of the park
serves as a major draw for these people because of these ease in commuting here as
well as the convenience of going to a park so close to work the public works and lives.
Their internal weaknesses are also similarly numerous as the administration
seems to make suspect choices which might have little basis. The first is their late
opening time (earliest is at 2 PM) which primarily alienates the morning crowd looking
for entertainment options. They don’t really have to start at 7 AM in the morning but 2 in
the afternoon seems to throw away a prime time period of profit in the lunch hours
between 12-1. Another weakness is, like most amusement parks, their reputation for
safety isn’t very stable at the moment. Not only are there stories of accidents coming up
every once in a while, the administration also seems to not do anything to counter these
allegations. Their customer relations page have, in this aspect, become so lazy or non-
existent that their last online posts have come from at least 3 years ago. There is
absolutely no online presence kept. And finally, their attractions (and more specifically
the rides) have a general feel of being unkept and largely outdated. Efforts to update
their offerings are very minimal and this is starting to show the age of the park.
The industry in general has a large number of opportunities which they can tap
onto due to their lack of any major movement in the past few years. First would have to
concern the large amount of development occurring in their surrounding area. With
malls, concert grounds, and casinos popping up in areas quite close to the park, they
can tap into this influx of consumer traffic by highlighting itself as the only amusement
park in the area which markets itself to the whole family. This is largely in part to the
rising disposable income of the Filipinos which therefore increase expenditures for
wants and luxuries. If they manage to convince the public that this is a competitive
choice compared to all the offerings around them, it can prove to be financially
successful for the company. This is primarily possible by banking on several brand
expansion opportunities available to them such as in the online sector (which they failed
to tap despite the youth being a huge part of their market) as well as other possible
aspects such as merchandising. Finally, they can also concentrate on the acceptance of
corporate partnerships of tourism destinations with ticket agencies in the past. With this
not only will they bring in the local market but there is also the opportunity to tap in the
local ASEAN market as well.
The external threats also connect with the company’s strengths because it has
something to do with its proximity to local entertainment options such as casinos and
malls. Although it brings in a huge number of individuals to the area, there is also the
danger that the existing customers of the park would rather explore these newer places
rather than stay in the park. This increase in competition would actually then serve to
bring down the overall number of park patrons and if not taken care of, would cause the
downfall of Star City.
For our maxi-maxi strategies which highlight the maximization of our
opportunities with respect to our strengths, the first suggestion would be to use targeted
advertising to highlight its family-oriented offerings to the nearby public. We feel that this
is its main differentiation from its main points of competition and should be highlighted
by the company. The next is to promote their packages through its campaign to
highlight the cost benefits that they’ll be able to experience by going to the park. Apart
from their ad campaign, they should also work on key sponsorship partnerships with
travel agencies (and tourist sites) to highlight its status as a travel destination as well as
concentrating on improving its park offerings to back up their claims as a legitimate
travel destination.
The maxi-mini strategies then highlight on minimizing its weaknesses based on
its opportunities and we feel that the main thing to work on would be forcing the park to
start earlier to accommodate the influx of the morning crowd during weekends as well
as the lunch-break crowd which occurs all week round. This is a main source of
profitability which is regularly unconsidered and we feel that it should be a main profit
point for the company if they want to stay competitive. Another main point to employ
would be to highlight the safety of their park by updating the public of the security
measures and protocol which the company regularly does in order to put down any
doubts and stories of accidents which may come into the public eye. The last strategy
for both weaknesses and opportunities is to increase of the effort of their customer
relations department in order to not only remain transparent of their activities but also
drum up interest for the park.
Working on threats with respect to the park’s strengths is the main point of our
mini-maxi strategies and the first is to highlight the differentiating factors of Star City
with other main points of competition such as other amusement parks and
entertainment centers. The point here is to highlight the park’s competitiveness and
show the viability of the park as an alternative means of entertainment which is easily
available to the public. Of course, the end goal is to show that Star City would be the
best choice overall. More specifically, the company would have to highlight its family-
friendly atmosphere as well as its cheap rates compared to these other entertainment
options.
The last would consist of the mini-mini strategies and this looks to highlight the
minimization of both the internal weaknesses and external threats of the company. The
previous strategies have already touched on our suggestions and it looks to edit the
opening hours of the park to accommodate the earlier crowd as well as highlight the
safety features of the park which is a very important consideration point for its public.
Also, increasing public visibility in all necessary mediums such as the internet is
essential in order to earn the trust of the public.
VII. TOWS Matrix
Strengths
S1 - Flexible park packages
(option to choose specific
rides to minimize cost)
S2 - Large target market
S3 - Varied attractions and
offerings
S4 - Proximity to major
residential and commercial
areas
Weaknesses
W1 - Late opening times
(earliest time is at 2 PM)
W2 - Negative reputation
concerning safety
W3 - Outdated attractions
W4 - Lazy customer relations
Opportunities
O1 - Increasing
potential consumer
base around its
Maxi-maxi
S2S4O1 - By way of targeted
advertising, highlight family-
oriented fun to the increasing
Maxi-mini
W1O1 – Take advantage of the
increase of potential
consumers by shifting the
immediate area
O2 - Increase in
disposable income for
Filipinos
O3 - Potential brand
expansion (online,
alternative
entertainment
opportunities, etc.)
O4 – Recent
partnerships of
tourism centers and
ticket agencies with
popular tourist
destinations
consumer base situated
around the area
S1O2 – Promote existing
packages as well as
formulate new packages
which highlight financial
flexibility within the park
S3O3 – Further increase
attraction variation by
exploring alternative
entertainment mediums by
way of internet and television
S2S4O4 – Increase brand
exposure by partnering with
travel agencies and
highlighting its proximity to
other tourist destinations
opening time to accept morning
park-goers
W2O2 – Highlight (or if
necessary, add) security
measures to ensure the
financially-viable public that the
park is a safe place to go to
W3O3 – Highlight product
expansion by acquiring newer
attractions and forms of
entertainment for the public
W4O1O4 – Use future
partnerships and increased
customer visibility to motivate
the customer relations
department to improve their
performance (particularly in the
online sector)
Threats
T1 - Presence of
similar competition
T2 - External
entertainment options
Mini-maxi
S1S3T1 – Highlight
differentiating factors
between the two amusement
parks and start an online
Mini-mini
W1T1T2 - Adjust opening times
to cover morning hours to take
advantage of those looking for
alternative entertainment
(casinos, malls,
museums, etc.)
campaign to show these key
differences between
competition
S1S3T2 – Similar to the
previous suggestion but
additionally, highlight its all
inclusive atmosphere as well
as significantly cheaper
offerings
options
W2T1 – Specifically, highlight
the additional safety features
that Star City employs and the
competition doesn’t
W4T1 – Increase public
visibility and transparency to
earn the trust of the discerning
public
Considering the way the park is run by its administration, the problems are
numerous: lax safety standards (and publicity), practically invisible Public Relations
team in social media, and a visible wear and tear of facility structures and attractions.
These are the main problems based on our research and the thing about this is these
are the aspects which mainly contribute to the opinion that Star City is the second best
choice for amusement park in an industry which has only two main competitors. In other
words, people are not assured of their choice to go here not only because of doubts
about safety but also the fact that their PR team (or lack of) is doing nothing to bring
people in. Obviously this is a big problem and the fact that the administration is not
recognizing this easily-solvable dilemma goes to show the quality that they put in their
work.
We therefore have a few suggestions based on the TOWS analysis and for this,
we found that it was best to keep it relatively simple due to their problems being easily
solved. A visual check of the park on a weekday also debunked future doubts about
their problems as some (such as the afternoon only opening time) don’t seem to be a
hindrance to the customers but are subtle attempts at maximizing customer traffic while
keeping operational costs manageable.
The general plan is mostly centered around social media due to their lack of any
presence here and it starts with a new campaign which shows how someone can have
real fun in Star City (hence the tagline in the publicity materials). Highlighted by our
attempt at viral video teasers plus traditional poster advertisements, there is an active
attempt at highlighting the safety standards that the park employs to remove any doubts
in the minds of the consumer. Making safety the highlight of the posters would however
imply that there is something wrong with the facility so slight mentions of standards
certification and regular checkups are advised. On the more expensive side, it is also
suggested that radio ads (AM if possible) be released sometime around the summer
season to attract traffic and promote brand retention by putting it in the form of a jingle.
Apart from advertising we feel that it is also essential to introduce what we call as
the “Star Friends”, a dedicated PR team whose main job is to connect with social media
participants by way of answering queries and releasing info online. This requires that
they constantly communicate with the customers to not only make it easier for them to
get relevant information but also to acclimate these individuals to visit the park in their
free time. During opening hours, these individuals are also located around key areas of
the park with duties somewhat similar of a concierge in order to make the customer
experience as happy as possible.
Finally it is also suggested that an active renovation of the park be done once
relative funding has been achieved. This is due to the fact that upon inspection, many of
the metal structures were observed to be rusty, ceiling grates left open, and key rides
being held up by wooden blocks. This only serves to add to any any existing uncertainty
the customer may currently have and is a possible deterrent to future visits.
VIII. Porter’s 5 Forces
Factors affecting Strength of Rivalry – Strong
The competition between rivals in the market is more or less the strongest
competitive force among the other four. In the figure above, it is said that rivalry is
stronger when the demand of buyers is slow and sellers have a surplus in their
inventory, rivals are very aggressive by introducing strategies that gains them a
competitive advantage in the market, the number of competitors are increasing as well
as their capability to compete violently, the differentiation of the products is strong for
the indirect competitors, but weak for the direct competitor (Enchanted Kingdom).
As might be expected, there are also instances wherein rivalry amongst
competitors is generally weak. The rivalry weakens when competitors are not eager to
acquire a huge market share, the demand of consumers are growing, brand loyalty of
the consumers are high and the products (eg. rides) of the competitors are
differentiated, buyer costs to switch theme park are high, and there are few sellers in
the market and each one’s decision does not affect the others’ business. Like any other
business, the strength of rivalry is very strong. It is not common for companies to have
an absence of rivalry between competitors because all businesses want to have a
bigger market share.
Currently, The Philippines only has two directly competing theme park
establishments: Star City and Enchanted Kingdom. There are also other establishments
that compete with Star City, however, they are indirect competitors. These
establishments include Sky Ranch and SM by the Bay Amusement Park. With the rise
of establishments such as Sky Ranch and SM by the Bay Amusement Park, buyers
demand to go to Star City will definitely drop if they do not make fresh moves to improve
their market share.
Factors affecting Threat of Entry – Weak
There are many factors that affect the willingness of new entrants to enter the
market. One of the factors is if a large number of potential new entrants along with their
resources to back them up. In effect, the threat increases because of the large pool of
new competitors that will enter the market. The second factor determines if the
candidates will face high or low entry barriers. A high barrier reduces the threat of new
competitors, while a low barrier entry increases it. Barrier to enter the industry would be
the needed capital for starting up a theme park industry. It would take a lot of planning,
investors, and time to build a single theme park that would match the theme parks
already present. In fact, there are only a few theme parks in the Philippines including
Enchanted Kingdom, Sky Ranch, SM by the Bay Amusement Park, temporary pop up
theme parks during Christmas and of course, Star City.
The threat of entry is weak due to the fact that after several years of its
existence, only Enchanted Kingdom serve as their direct competitor. It would probably
take many more years to come up with another theme park as big as both Star City and
Enchanted Kingdom. Moreover, putting up a theme park would need a lot of permits
and regulations, which would be difficult for people who are planning to be part of this
industry. However, Sky Ranch and SM by the Bay Amusement Park as new entrants
may be a threat of Star City if they grow exponentially in the future. As of now, several
people are now aware of these place, and most of them either went already or planning
to go in the future.
Factors affecting Competition from Substitutes – Weak
In the figure above, it explains the factors that affect the competition from
substitute products in the market. The competitive pressures from substitutes are
stronger when the substitute products are easily accessible to the market, the
substitutes are attractive to the consumers (oftentimes cheaper than the primary
product), the substitutes are deemed better than the primary products, and purchasing
substitutes benefits the consumers because of the low cost of switching and they have
grown accustomed to using them.
In contrast, the factors that weaken the competition from substitute products are:
the substitute products are not easily accessible to the market, substitutes are more
expensive than the primary products, and the consumers would have higher costs if
they switch to substitutes.
In terms of the theme park industry, Star City’s competition from substitute
products is weak since switching costs will be higher when customers transfer to
Enchanted Kingdom. Moreover, Enchanted Kingdom is not easily accessible to the
market as compared to Star City because it is located in a farther location and
customers will have to pay toll in order to get there.
Factors affecting Bargaining Power of Suppliers – Strong
The strength of supplier bargaining power is strong when the competitors in the
industry incur higher costs if they switch to alternative suppliers, resources provided by
the suppliers are scarce, the supplier’s inputs are of such distinct quality and unique
which can be an important material that the competitors need in their business, and if
the amount of suppliers is only limited.
There are factors in which describes if the strength of supplier bargaining power
is weak. Such factors are: the resources being supplied is easily accessible for the
competitors and they need not to get from the supplier themselves but can acquire it
from retailers with the same price offered by the suppliers, sellers switching to
alternative suppliers costs are low, substitutes for raw materials emerges, a surplus of
resources available, current industry members contribute a relatively large amount to
the supplier’s sales, and if the current industry members would opt to manufacture their
own goods for their business.
Factors affecting Bargaining Power of Buyers – Strong
The factors that strengthen the buyer bargaining power include buyers switching
to competing brands and to substitutes costs are low, a large pool of buyers whom
purchases in large quantities demand concessions, sellers depend on the buyers’
amount of purchases, the buyers’ demands are declining, there are only few buyers in
the market so sellers have to compete for those buyers, the reputation and identity of
certain buyers are important to the sellers, the buyers’ knowledge on the product
improves, buyers have the choice to cancel their purchases if dissatisfied, and some
buyers pose as a threat to the seller’s business.
The buyer bargaining power is weak when buyers purchase from the sellers in
smaller quantities, buyers switching to competing brands and to substitutes costs are
high, there is a growth in buyer demand, the seller’s reputation is important to the buyer,
and the seller’s product is of higher quality or unique over other brands.
For Star City, the bargaining power of the buyers is weak because when buyers
switch to competing establishments like Enchanted Kingdom, it will cost them higher.
Star City has a good reputation and has unique products as well, thus customers will
prefer it because it offers a lower price.
IX. Fishbone Diagram
X. Goals & Objectives
With respect to the specific objectives of the program, it is essential that these be
divided into sub-terms in order to accurately map out those which are immediately
needed and those which happen to be necessary for the future. This will then be divided
into three periods: Short Term – one year, Medium Term – two to three years, and Long
Term – four to five years.
The current brand situation is the main basis for these objectives as the group
has highlighted problems in the aspects of safety (and its reputation of), lax public
relations personnel, and outdated attractions throughout the park. The goals and
objectives of our proposal are listed below:
Goals
To create a positive and exciting image to be associated with the brand
To achieve industry leader status in the business and customer opinion
To remove any consumer-made correlations between the park and lack of safety
To consistently provide world-class service
To actively communicate and improve from consumer feedbacks
To train and develop the employees to be part of the amusing factor of the park
Objectives
Short Term Objectives (one year)
o 30% of the target market will be aware of the park, promos, and safety
measures
o 15% of the target market will prefer Star City as the premier amusement
park
o 8% increase in Star City ticket and merchandise sales
o 15% increase in Star City market share
o Implement “Star Friends” PR Team
o Release online and radio advertisements
Medium Term Objectives (two to three years)
o 50% of the target market will be aware of the park, promos, and safety
measures
o 25% of the target market will prefer Star City as the premier amusement
park
o 15% increase in Star City ticket and merchandise sales
o 25% increase in Star City market share
o Implement facility renovations
Long Term Objectives (four to five years)
o 65% of the target market will be aware of the park, promos, and safety
measures
o 40% of the target market will prefer Star City as the premier amusement
park
o 30% increase in Star City ticket and merchandise sales
o 45% increase in Star City market share
o Explore attraction expansions (if possible)
o Explore territorial expansions (if possible)
XI. Target Segment Description
A. Demographics
Age Teenagers:
14-19 years
old.
Amusement parks main target segment are usually
teenagers around the age of 14-19. Because they are
more amused in having fun rather than just doing other
things. Furthermore, adults are less likely to go to these
places with a main purpose of having fun. Therefore, the
target age is 14-19. But then, since these people are less
likely to have their own source of income, with that, they
are able to drag their parents along or ask money from
them to enjoy Star City.
Gender All genders Star City is very vast in terms of their offering to the
customers. They have arcade games, rides both extreme
and light, food stalls, shooting games, mini games and etc.
Because of this, any gender can be their target. And often
times, it became a dating place of the youth.
Education High School
to college
Ages 14-19 revolves around educational level of High
School to college.
Income SEC Broad C The main target is Broad C because there is less
competition in this market in the industry since Star City is
the most dominant in Manila and the costs of entrance and
the goods and services inside fits most this bracket.
However, Class A and B are more likely to go to
enchanted Kingdom since they see it as better and well off
than Star City. And they have the means of going to
Enchanted Kingdom and the means to pay for the goods
and services of EK.
Occupatio
n
Students Students and young professional are less burdened about
earning money and what they have to do since they don’t
have a family to feed and monthly bills to be paid.
Location Metro Manila,
mostly Manila
Transportation in Metro Manila is easy since there are
various transportation systems developed in Metro Manila.
B. Psychographics and Behavior
From the UAI survey that we conducted, we found out that 97% of our
respondents are aware of Star City. The mediums on where they learn Star City are
listed below:
Great percentage of the respondents learned about Star City from their family
and friends, few learned it through social media, tv, radio and newspaper. It seems that
the word of mouth of the consumers was the main medium of knowledge of Star City.
Out of the 31 respondents, 84% had been to Star City for last 5 years showing that the
trial rate is very high from those who knew Star City.
84% of the respondents like to ride the rides in the amusement parks they went
to before. However, 77% of the 31 respondents are aware of the accidents and at some
point, heard that there are usually accidents in the rides of Star City. But only 29% of
the 31 respondents said that they are discouraged to take the rides because the
accidents they heard, while the other 71% said that they will continue to ride the rides of
Star City and other amusement parks.
We surveyed the people on what they think about Star City in many aspects
namely: safety as a whole, convenience in heading there, value for money, ride
entertainment, games entertainment, interior design and most of all, how much are they
willing to go to Star City in the scale of 1-10, 1 lowest and 10 is the highest. Since every
respondent has purely random answer and they have almost unexplainable behavior to
represent as a sample of the market through descriptive statistics, basic multiple
regression model was used to determine the interrelationship of every variable
mentioned above with respect to their level of willingness in going to Star City. The
estimation outcome will shows us to which specific variable will the willingness of the
respondent be responsive. The result shows that there are 2 out of 6 variables that are
significant. The perception of the consumer towards the safety of Star City and their
perception about the value for their money in going to Star City are the most important
factor that drives the level of willingness of the respondents to go to Star City or not.
While other factors such as, convenience in going to Star City, ride entertainment, game
entertainment and interior design are only slightly significant, which means that they do
not affect the willingness of the respondents to go to Star City or not.
XII. Target Person – Profile
Meet the Bersabe family. The Bersabe family loves spending quality time
together. The children in the family are risk takers and they are thrill seeking individuals,
thus Mr and Mrs Bersabe often take them to places the children would enjoy. Despite
the fact that the parents dislike going to theme parks, they are urged to go in order to
make their children happy. In fact, they have been to Star City a couple of times
already. They often go there due to the accessibility and affordability. In terms of safety,
they believe Star City offers safe rides and perform safety precautions every time, so
they really trust the institution.
This is Mike from Makati and along with him are his friends from one of the clubs
he joined in school. The other guy brought his brother with him. The three friends have
been going to Star City with their own families since they were young. They continue to
enjoy the park after all these years. They like the new extreme rides like the Star
Frisbee and Star Flyer. They think the price of Ride all you can is worth it. They think
this is especially true when they enjoy the park on weekdays because of the very short
line on rides. Adding more rides every now and then is important for them to continue
patronizing the park. Like most people their age, they rely on online materials in order to
plan out their next trip and take advantage of all the promos that they can get (as of this
time, they used their school IDs for discounts)
XIII. 8 Ps of Marketing
A. Existing 8P’s
P NI S VS E
Product Elements ✓
Price and other Cost
considerations
✓
Place, Time & Cyberspace ✓
Promotions & Education ✓
Productivity & Quality ✓
Process ✓
Physical Evidence ✓
People ✓
1. Product Elements - Very Satisfactory
The main product of Star City is family-centered entertainment. They provide
wholesome fun to the whole family. Rides range from small kiddie rides to pulse-raising
rides like Star Flyer (Inverted roller coaster) and Star Frisbee. There are also carnival
type games and arcades. For some parents who don’t ride, they have many options
when it comes to food. There are small food stalls like Tender Juicy and Potato Corner
to fast foods like Chowking, Greenwich and other small food establishments like Ihaw-
ihaw restaurants. There is an area leased out to vendors of all kinds of items. There are
clothes, toys, accessories, henna tattoo, etc.
2. Price and other cost considerations - Excellent
As we tested on a Wednesday night, the entrance fee with no rides costs Php65.
Ride all you can (RAYC) is Php420, and 3 rides of your choice is Php360. 4 rides are
not included in RAYC and have separate payments: Lazer Blaster (Php100), Snow
World (Php130), Scream Avenue (Php120) and Zip Adventure (Php100). There is an
“End of School Promo” running from March 24 - April 26, 2014 that discounts RAYC
tickets for only Php320 for students with valid ID. Food is more expensive than in malls.
We ordered a bacon-wrapped hotdog on bun from Tender Juicy for Php70. Fast food
prices in Chowking, etc. are standard. Parking was free because we parked along the
road near Aliw Theater.
3. Place, Time and Cyberspace - Satisfactory
Star City is located within the Cultural Center of the Philippines complex in Pasay
City. It is easily accessible by public transport via the LRT, then transferring onto jeeps
that pass through CCP. Traffic varies greatly in the area. When we went there around
5pm, traffic was light. But on weekend nights, when the park attracts most customers,
traffic becomes extremely heavy.
Posted park times are 4pm - 12am on Monday - Thursday, but when we asked
the security guard, the tentative closure time is 10:30 pm. They adjust park closing time
based on the number of people still inside.
Star City has a very good website. Ticket prices, park hours, ride details and
contact info are presented. Tickets can be bought online, the credit card payments
processed by PayPal. They also have great presence on Facebook with their page
having 101,000 likes. Promos are posted everyday by the page admins.
4. Promotions and Education - Needs Improvement
Star City has many promotions depending on the season and holiday. The most
recent promos are “End of School Promo” and “Easter Circus” - on Easter Sunday April
20, kids 10 and below get 50% off on RAYC tickets. These are shared on their
Facebook posts. I am not aware of Star City promotions through other media.
5. Productivity and Quality - Needs improvement
Star City provides a good value for money proposition. The only place that
provides the same service, Enchanted Kingdom, is far away and more expensive. The
Ride all you can ticket only costs Php420 and patrons can already enjoy so many rides.
The problem we saw was in the kiddie section. There are small rides and arcade games
there that are no longer functioning and only take up space.
The environment is clean and well-maintained. There are numerous trash cans
so that people are encouraged to throw trash properly. The no smoking policy is strictly
enforced in the premises and there are numerous signs posted. The restrooms are
clean. The problem we experienced was the smell in the enclosed areas. Ventilation
was insufficient that there is an unpleasant smell of mixed foods, concrete, metal, etc.
This lessens the ambiance and overall experience of Star City.
6. Process - Very Satisfactory
We went to Star City at 5pm on a Wednesday. We easily parked near Aliw
Theater. The queue for tickets was light and we were able to purchase them quickly.
We bought the admission only tickets worth Php65 each. Belongings are checked
before entering. We went around Star City for about 2 hours.
7. Physical Evidence - Poor
Star City gives tickets for each payment and a receipt. For some rides, there is
an optional picture that customers can avail of. However, it seems that there had been a
lot of complains regarding the facilities, equipment etc are kid of rusty and old. They
should improve it that the physical evidence would not be hindrance but a factor of
attraction.
8. People - Poor
The Star City employees are okay but they have not been extremely lively,
specially they are expected to amuse the people inside the amusement park. But it
seems that they missed out a lot of their job. In addition, other customers seem to be
contributing to the not so good ambiance of Star City since most of the mare just
wearing slippers, basketball short and very unpleasant clothings. At some point they
affect the whole park experience a lot.
B. Proposed 8 P’s
1. Product Elements
The services offered by Star City are complete. There are the kiddie and extreme
rides, and food stalls for parents. The quality of the rides can be improved through
better fit and finish, theme, etc. They just have to ensure the safety that the product
element would remain excellent and accidents would be a small factor.
2. Price and other cost considerations
The pricing strategy of Star City is excellent. The RAYC is the most popular and
patrons think the price of Php420 is just right.
3. Place, Time and Cyberspace
Star City’s prime location, being easily accessible and frequented by many
people, also brings about the problem of traffic. Star City needs to help lessen the traffic
in the vicinity so that patrons would be able travel to Star City easier and thereby
improve overall experience.
Operating times should be adjusted. The opening times should be earlier. There
should also be a standard closing time, not an adjustable closing time depending on the
amount of people.
Online presence could also use improvement. There should be more interaction
between Star City and its patrons. There should also be more fun content that would
serve as an appetizer for the fun that patrons would experience in Star City.
4. Promotions and Education
There are many promotions Star City makes depending on season, holiday,
event, etc. The problem is the limited media through which they communicate these
promotions. They should promote these through print ads, radio ads, TVCs.
5. Productivity and Quality
The overall experience of Star City still needs improvement. They should improve
on the ambiance of the park. The smell of the park should be made better through
proper ventilation. The fit and finish of the rides should also be improved. The
atmosphere of Star City is associated with a carnival. The exposed wires and metals,
small non-functioning rides and games, etc. limits the overall ambiance of the park. The
park should be renovated.
6. Process
The entrance of Star City could be improved. The entrance is also the exit of the
park, which could get very congested during holidays.
7. Physical Evidence
Star City could add their own branded apparel, accessories, and other various
souvenirs. These could also serve as promotional materials for the park. They can also
serve free Star City manufactured souvenirs on special occasions.
8. People
The staff of Star City should undergo training in customer relations. They are a
crucial part of the service. To keep in line with the image of family-centered
entertainment, the staff should be very welcoming and friendly.
XIV. Flower of Service
Existing
Proposed
Based on the Flower of Service as well as what has been passed through in the
TOWS analysis, there are multiple key objectives with respect to the service plan. The
first objective is to find a way to increase online social activity as compared to the
company’s previous efforts because prior to this, no replies to queries made online have
been done since 2012 and even more striking is the fact that their last online post was
made last 2011. In todays competitive market this is unacceptable because it alienates
a large amount of individuals who depend on this medium to get the info that they need.
Star City making itself not available to these customers can only translate to lower ticket
sales as these individuals deviate over to the park’s competitors. The second objective
is to reassure potential consumers of the safety of this park because of the fact that the
most recent write-ups about the park have mostly been about deaths and suicides.
Although press releases have been used to relax the public, reassurances are needed
to be kept constant in order to truly relax the mindset of potential customers. To sum it
all up, it is essential that the consumer experience be kept as relaxed and enjoyable as
possible. Apart from the previous suggestions, additional measures need to be taken
such as renovating the surroundings to make it look cleaner and more secure by way of
park renovations and increasing security measures by way of additional CCTVs and
roving guards.
With the mechanics of this program laid out in the rest of the paper with the
online campaign, retrofitting, and revamped PR management, it is up to the group
assigned “Star Friends” to act as the proponents of the project. Given that they act as
the face of the company with respect to their customer-related activities, a key part of
their job is also to ensure that the same quality of service is extended to the rest of the
project as well. They will be given key parts in managing the various aspects of the
revamp while being led by senior management individuals who are there to regulate and
mold the concepts of the Public Relations crew.
XV. Investment Plan
Particulars Cost Breakdown and details
Star Friends -
PR team
One Star Friend is paid 15,000php a month - 20 Star Friends.
Star Friends will increase in number continually during the
renovation on year 2 up to the renovation and acquisition of new
ride on year 5.
Advertisement
Facebook advertising has options on how much is our budget for
the month and it will be consumed on how many clicks the page
will have. This advertising will be placed on the side of random
people’s newsfeed and some in the games.
Budget for this is 50,000php on the first year and increasing
consequently throughout the years since we are expecting that
preference on Star City would change.
Radio
Advertisement
Radio advertisement production cost 50,000php and another new
production on the start of 4th year because we encourage the
retention of our Star City Radio ad for 3 years.
Placement of ad in Love Radio, an affiliate of Star City’s mother
company, costs exactly 159,840php for one year, 50% bulk
discount package is already inclusive of the amount.
Minor
Renovations
Minor renovations start at the 2nd year of the investment plan. This
will include the wall paint, repainting of rusted rides, new lightings,
furnitures etc.
This will start on the 2nd year.
Budget allocated: 10,000,000php
Major
renovations
Major renovations includes selling of old rides and acquisition of
new rides based on the preference of the consumers. Furthermore,
the redesigning of the interior will be also part of this investment
plan and if there is a chance to territorial expansion, we will take it.
Major renovations are very costly, thus this will start on the 4th
year of investment plan.
Budget allocated for new interior design:
25,000,000php - 4th year.
35,000,000 php - 5th year.
Budget for new ride acquisition is 50,000,000php, Reflected in the
estimate of profitability is the depreciation of the new ride for 10
years.
Utilities Utilities are affected by the investment plan since the lightings of
the park will be change in the long run and there will be new rides,
therefore, electricity consumption will increase at the same tim
Training and
Development
Training is essential if we want Star City to have amusing
employees. They have to be trained well and be developed as a
part of the company’s goal
XVI. Profitability Estimates
XVII. Appendices
A. Survey Summary Result
Do you know Star City?
Yes 30
97%
No 1 3%
Have you been to Star City?
Yes 26
84%
No 516%
From where did you come to know star city?
Family 21
31%
Friends 26
39%
Social Media 710%
TV 710%
Radio 3 4%
Newspaper 1 1%
Other 2 3%
Do you ride the rides at any amusement parks?
Yes 26
84%
No 516%
Do you think it’s dangerous to take the rides in Star City?
Yes 13
42%
No 18
58%
Have you heard of any accidents occurring inside Star City?
Yes 24
77%
No 723%
Did this discourage you from actually going on amusement park rides?
Yes 929%
No 22
71%
How would you rate Star City’s safety?
1 1 3%
2 1 3%
3 1 3%
4 310%
5 723%
6 1 3%
7 929%
8 516%
9 310%
10 0 0%
How would you rate the convenience in going to Star City?
1 2 6%
2 1 3%
3 2 6%
4 0 0%
5 2 6%
6 310%
7 413%
8 929%
9 2 6%
10 619%
How much can Star City give value for your money (sulit)?
1 1 3%
2 310%
3 1 3%
4 2 6%
5 723%
6 310%
7 723%
8 516%
9 1 3%
10 1 3%
How much fun do you think Star City's RIDES can offer to you?
1 2 6%
2 1 3%
3 1 3%
4 413%
5 723%
6 2 6%
7 413%
8 619%
9 310%
10 1 3%
How much fun do you think Star City's GAMES can offer to you?
1 0 0%
2 413%
3 413%
4 310%
5 619%
6 413%
7 826%
8 2 6%
9 0 0%
10 0 0%
Do you like the interior design of Star City?
Yes 10
32%
No 21
68%
What is your willingness level to go Star City?
1 310%
2 1 3%
3 723%
4 1 3%
5 413%
6 310%
7 826%
8 310%
9 1 3%
10 0 0%
B. Multiple Regression Results
C. Poster
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