Principles of Marketing

Snooker’s Aim

Group MembersWajid RizviTalha NadeemAli MohsinZubair Humayun

OverviewWe would be discussing:

Current Marketing StrategyObjectives and IssuesMarketing StrategyAction ProgramsBudgets

IntroductionStarted operating in November 2002Average Revenue of about Rs.130,000/monthLocated at the Khalid bin Waleed roadServices offered; Pool, Snooker, and a small

Café

Current Market SituationFounded in 2004Owner initially owned one at NIPAShifted operations at Khalid bin Walid Rd.Profitability declined due to the emergence of

Rehman and GalaxyEst. market size is Rs. 20 lakhs and is

expected to grow at a 5 year CAGR of 3%

Current Market Situation(cont.) Market Description

• Exclusively male customers• Age group is 10-60 years• Word-of-mouth promotion

Service Review• Good condition cue sticks for customers.• Cue-stick lockers.• Clean and maintained snooker and pool tables.• Side bar with soft drinks and snacks; cigarettes also available.• Guard for safety purposes.• Yearly revamping of tables.• Air-conditioned environment, sound system for a more enjoyable atmosphere• Generator available in case of power shutdown.

Age Group Under 15 15-25 25-40 40+

Frequency 10 50 15 10

Current Market Situation

Billiard Rates

Zone Aim Indus Rehman Galaxy

Snooker1.25/min 1.25/min 1.25/min 1.25/min 1.25/min

Snooker-special2.0/min

- 1.5/min 1.5/min -

Pool 3x6 10/frame 10/frame 10/frame 10/frame 10/frame

Pool 4x8 20/frame 15/frame - - -

N.B.:For a double pool match the rates are either doubled or charged half a more of the original frame price.

Competitive ReviewZone

Chief market player50% share in the whole cityAmong the senior members of PBSAHuge investment – Red & White’s only resort for

championshipIndus

Second best playerUsed to hold R&W tournamentsStarted relying more on PBSAStill visited by great players

Competitive Review (cont.)Rehman

Similar to Aim.Established in 2004Low pricing strategy helped capture the marketLost market share due to less maintenanceMeasures taken to regain the lost market

GalaxyA very low profile snooker clubLowest market shareRelies on word-of-mouth promotionMost players are those living in its proximity

Marketing Strategy Service Differentiation by providing the ultimate playing

experience Main target market is age group 18-40 Next is kids and youngsters aged 13-18 so as to build long-term

profitable relationships Shirt campaign Positioning

• Service differentiation• Gift T-shirts to new loyal customers• Organize a pool and snooker tournament

Service strategy• Better cues for unusual players• Equal dealings with every player for waiting time• Electronic play lists – songs to be played upon sequential

requests• TV near counter displaying learning videos and channels at

times

Marketing Strategy Cont…

Pricing StrategyServices are priced in accordance with

quality of services and competitionPrice structure to remain same, initially while

higher quality services are offered to gain market share (More for Less)

Later on prices will be increased marginally to enhance profits

Marketing Communications StrategyAwareness lowCommunications strategy will focus on low

cost and high reachWeekly ads during certain months in a

leading newspaperBrochures will be distributed as a part of

promotional campaignAd slides on local cable television channels,

(upon good response)

Marketing ResearchMostly analyticalMeasure customers’ attitudes and behaviorQuestionnairesFrequency of visits, time spent, services

availed will be noted and analyzed

Marketing organizationNo immediate plans to create and maintain a

separate marketing department Although coordination would be required to

carry out all the proposed plans.

ACTION PROGRAMS

June-JulyInitiation of advertising campaign – Newspaper ad.Primary focus – attracting students on summer

holiday.Brochures to be circulated from the beginning of July. Method of circulation - i) Door-to-door delivery ii) Mosques iii) At club premises

August-SeptemberTwo tournaments, at inter-school and inter-college

level, to be organized.Nominal fee to contribute towards cash prize fund.School/college authorities to be brought on board;

posters to be placed on notice-boards.Reporters from print media to be invited.

October-NovemberRe-launch of newspaper advertisements, announcing

club membership scheme.Membership fee: Rs.3000 for 6 months.Mainly to appeal to frequent visitors.Club merchandise to be available for sale from

November onwards.Merchandise to serve twin purpose of generating

revenue and promoting club’s name.

DecemberMonth of consolidation, review and future planning.Focus to be laid on analyzing success/failure of past

six month’s efforts.Feedback forms to be circulated among consumers.

Budgets

BudgetsBrochure would be designed by Adcom (Rs.

2000)Ad would be published in DAWN Newspaper.

(Rs.3500)Strategically located

4000 brochures would be printed at the rate of Rs.2.5/brochure, totaling to Rs.10,000

BudgetsAdvertising Start Date End Date Budget

Rs.

Brochure Design 15/5/2008 30/5/2008 2000

Brochure Printing 1/6/2008 30/6/2008 10000

Newspaper Ad Design 15/5/2008 30/5/2008 4000

Newspaper Ad - Summer 1/6/2008 1/8/2008 28000

Newspaper Ad - Fall 1/9/2008 1/10/2008 14000

Total Advertising Budget 58000

Objectives and IssuesIncrease Market share to 20% by the end of

first yearMr. Iqbal’s Savings would increase by

Rs.10,000How will Mr. Iqbal cover the advertising

budget of Rs. 58000?

Objectives and Issues

Current Forecasted

Sales 130,000 150,000

Costs (at 40%) 50,000 60,000

Profit (Sales – Cost) 80,000 90,000

Home Expenditures 72,000 72,000

Savings (Profit – Expenses)

8,000 18,000

Objectives and IssuesEnvironmental FactorsSeasonal shiftsRising InflationPolitical uncertainty

Recovering the advertising Budget:

Cost Recovery Graph

-70000

-60000

-50000

-40000

-30000

-20000

-10000

0

10000

1 2 3 4 5 6 7 8 9

Months

Co

st

Thank You