A Service Marketing Plan for Star City Philippines
Presented to Mr. Jose Luis Liongson Marketing Department De La Salle University Manila in partial fulfillment !f the final course re"uirements #n Service Management
Submitted by:
A$% A$% &randon &randon Jon Jon 'rancia% Mikhail (old$yn Martine)% Jesus Mao Soriente% Miguel Al*erto MA+,S- ,/0
April 1% 0234
!U5L#6-7 #. -8ecutive Summary ##. Scope 9 Limitations ###. #ndustry Analysis #. Current Company: &rand . Competitive Analysis #. 5!;S analysis ##.5!;S matri8
s Analysis #?. 'ish*one Diagram ?. (oals and !*@ectives ?#. 5arget Segment Description ?##. 5arget person profile ?###. P>s ?#. 'lo$er of Service ?. #nvestment Plan ?#. -stimates of profita*ility A. Appendic Appendices es
I.
Executive Summary
Seco Second nd to the the mark market et lead leader er in an indu indust stry ry $hich hich is slo$ slo$ly ly turn turnin ing g into into irrelevancy% Star City Amusement Park is often plagued $ith pro*lems coming from *oth internal and e8ternal forces $hich spell doom for the company unless active measures are take taken. n. 5hes 5hese e are are high highlig light hted ed *y dou*t dou*ts s a*ou a*outt the parkB parkBs s safe safety ty as $ell $ell as an apathetic Pu*lic +elations team $ho seem to have other concerns not related to the $ell*eing of the company. +ecogni)ing this *y $ay of surveys sent out to potential customers as $ell as actual inspection% the group devised methods *y $hich Star City can once again *e relevant in the industry. A return to former glory is $orked to$ards and this includes a retrofitting of the park itself% highlighted safety measures% and an entirely ne$ Pu*lic +elations team here*y kno$n as the Star 'riends. ;ith these changes the group hopes to once again capture the interest and $onder of the *road C customers as $ell as possi*ly entertaining more diverse individuals in the future.
II.
Scope & Limitations
5he 5he anal analy ysis sis and and su*s su*se" e"ue uent nt mark market etin ing g plan plan $as $as cond conduc ucte ted d in orde orderr to determine the overall
competition% and others as a *asis for recommending future potential actions that may improve the *rand in all its aspects.
5his study ho$ever also comes $ith its o$n limitations as the setEup plan is only cove covere red d to prim primar aril ily y *ene *enefi fitt and and incr increa ease se cust custom omer ers s from from the the afor aforem emen enti tion oned ed socioeconomic class C3 to C0 and specifically to those located $ithin the (reater Metro Manila area. A minimum of thirty respondents $ere approached *y $ay of a survey to form the *ase of the pu*lic opinion and a UA#
III.
Industry Analysis
!fficially part of the Personal and +ecreation #ndustry% the smaller amusement park industry have long *een a regular option for locals and foreigners Star City is part of the theme park industry in the Philippines. #ts main competitor competitor is -nchanted ,ingdom. #t also used to compete $ith &oom na &oom *efore its closure. 5o a lesser e8tent% it also competes $ith Manila Foo.
Star CityBs target market is families from socioeconomic class C and D. 'amilies from class A and & very rarely go to Star City. Most of these families have gone a*road and visited other theme parks. 5hey have a higher standard for theme parks and $ill not patroni)e Star City. 5here are t$o main groups that go to Star City% families $ith young children
5his 5his indus industry try is seaso seasona nal. l. 5he 5he most most profit profita* a*le le seaso season n for theme theme parks parks is Christmas season% *eginning Decem*er all the $ay to 6e$ Iear. 5his is *ecause C and D class are receiving their 3/ th month *onus and have e8tra spending spending po$er. 5hey are looking for $ays to cele*rate Christmas $ith their young children. Last Christmas Day of 023/% Star City management estimated at least /2%222 customers for that single day. 5heme parks are also profita*le during schoolsB summer *reak period from April to June.
IV.
Current Company/Brand Situation
Made into fruition *y media mogul 'red J. -li)alde *ack in 33% Star City
;ith ;ith 'red 'red -li) -li)al alde de helm helmin ing g this this comp compan any y as $ell $ell as the the ad@a ad@ace cent nt Mani Manila la &roadcasting Company and Ali$ 5heater% he regularly relies on su*ordinates to deal $ith the inflo$ of $orkErelated pro@ects. 5he hierarchy proceeds as follo$s7
Star City has an entrance fee of HGphp $ith no rides included. 5hey have a / ride ticket $hich amounts to /H2 and a rideEall you can that amounts to 402. 5hey have additional e8clusive rides and facilities offered like laser tag for 322php% sno$ $orld for 3/2php% scream adventure for 302php and )ip adventure for 322php. As one may o*serve% Star CityBs *usiness model is $holly *ased around providing the greatest amount of freedom:options freedom:options for the consumer to ma8imi)e his costs $hile trying to keep it as lo$ as possi*le. #t is *ased around the structure of profiting from *ulk sales *y customers $ho recogni)e the afforda*ility of the product.
-sta*lishing -sta*lishing and sustaining sustaining an amusement park in Manila is not as easy as it is. 5hereBs a high financial *arrier that has to *e overcome *y the o$ner in order to start up
the amusement park *usiness. Sustaining is another pro*lem% since amusement park is not a daily need of any market. 5here are some amusement park like &oom na &oom that didnBt manage to survive the market. Ko$ever% Star City% $hich had *uilt a name in the industry of amusement parks% remained in the industry for already 0/ years even in the midst of the seasonality of the amusement park sales.
V.
Competitive Analysis
Enc$anted %in#dom
roduct
ricin#
!""erin#s
Strate#y
ChildEcentric
Promotional
+ides
and Pricing
Attractions Attractions
Location
romotions
Santa +osa% Laguna
provincial location=
Promotional
Manila
5raditional Amusement Amusement Park $e Bay
'amilyEcentric Attractions Attractions 5ourist Spot
&ay
E
and Pricing
Seaside Seaside &ouleva &oulevard% rd%
Pasa Pasay y City City
flat flatla land nd
near near key key *usi *usine ness ss sectors= 'anila
A"uatic
!cean ar( ChildEcentric
Attractions% Attractions%
Foo% Promotional Pricing and
Luneta% Manila
Metro <*ay
area
near near key key *usi *usine ness ss
Social Ku*
sectors=
5he 5he origi original nal main main compe competit titor or of Star Star City City as far far as amuse amusemen mentt park parks s are are concerned $ould o*viously have to *e -nchanted ,ingdom and their status as the market leader in the industry. ;ith an appro8imate 2N preference rating among the pu*l pu*lic ic for for the the park park in a surv survey ey held held a fe$ fe$ years ears ago ago
Located in the Santa +osa area appro8imately 0 kilometers from the Metro% customers usually have to take an hourElong trip to get to the park as compared to a relatively shorter time for Star City. 5hese customers have all *een o*served to lie some$here around social class C0
Apart from -nchanted -nchanted ,ingdom% ,ingdom% recent developments developments *y the SM Development Development Corporation has also led to the rise of another amusement park located near the Mall of Asia. ,no$n ,no$n as the 5he &ay amusement park% park% it is a small park recently esta*lishe esta*lished d as part of an e8pansion e8pansion pro@ect *y the SMDC SMDC and runs the length length of a*out 3.G kilometers kilometers along the *ay. +ides here follo$ the traditional theme of small amusement parks $ith offering such as *umper cars and 5iltEAE;hirls $hile their flagship ride is the M!A -ye
5here are also alternative sources of familyEcentric entertainment in Manila $hich comprises the indirect competition and this is primarily represented *y Manila !cean Park. ;ith a similar entertainment value present here plus the fact that prices here are *ased on industry standard% esta*lishments esta*lishments such as this have high potential in stealing possi*le park attendees.
VI.
!)S Analysis
Despite its lagging status as one of the countryBs premier amusement parks located in the Metro% Star City still can rely on a fe$ key strengths *ased on its offerings
for the past fe$ years. Like $ith any amusement park this $ould rely on a fairly e8tensive variation of attractions to *e offered to the pu*lic. +anging from rides to stages and everything and *et$een% this is the *asis of their familyEcentric e8perience $hich they $ork to promote. Another strength that then comes from this $hich is the large large target target market market they have $hich natural naturally ly stems stems from having a product product $hich $hich appeals to the $hole family. Apart from having rides $hich provide entertainment for all% the offerings also have to specify to specific target markets to provide a varying range of products as $ell as ma8imi)e the en@oyment of each individual. Another strength they have $ould *e the relative fle8i*ility of their park packages $hich more or less give you freedom of $hich rides you $ant to go to and $hich ones you donBt. 5his $as targeted for the consumers $hich $ant to ma8imi)e their cost as $ell as some$hat *ring it do$n $hile still allo$ing them to en@oy the amenities of the park. So far% this has *een successful in *ringing in patrons. And finally% its last strength lies in their pro8imity to ma@or residential residential and commercial commercial areas $hich $hich mean that the accessi*ility accessi*ility of the park serves as a ma@or dra$ for these people *ecause of these ease in commuting here as $ell as the convenience of going to a park so close to $ork the pu*lic $orks and lives.
5heir 5heir interna internall $eaknes $eaknesses ses are also similarly similarly numerous numerous as the administ administrati ration on seems to make suspect choices $hich might have little *asis. 5he first is their late opening time
safety isnBt very sta*le at the moment. 6ot only are there stories of accidents coming up every once in a $hile% the administration also seems to not do anything to counter these allegations. allegations. 5heir customer relations page have% in this aspect% *ecome so la)y or nonE e8istent that their last online posts have come from at least / years ago. 5here is a*solutely no online presence kept. And finally% their attractions
5he industry in general has a large num*er of opportunities $hich they can tap onto due to their lack of any ma@or movement in the past fe$ years. 'irst $ould have to concern the large amount of development occurring in their surrounding area. ;ith malls% concert grounds% and casinos popping up in areas "uite close to the park% they can tap into this influ8 of consumer traffic *y highlighting itself as the only amusement park in the area $hich markets itself to the $hole family. 5his is largely in part to the rising rising disposa disposa*le *le income income of the 'ilipino 'ilipinos s $hich $hich therefor therefore e increase increase e8pend e8penditur itures es for $ants and lu8uries. #f they manage to convince the pu*lic that this is a competitive choic choice e compa compare red d to all all the the offe offerin rings gs around around them% them% it can prove prove to *e financ financia ially lly successful for the company. 5his is primarily possi*le *y *anking on several *rand e8pansion opportunities availa*le to them such as in the online sector <$hich they failed to tap despite the youth *eing a huge part of their market= as $ell as other possi*le aspects such as merchandising. 'inally% they can also concentrate on the acceptance of corporate corporate partnerships of tourism destinations $ith ticket agencies in the past. ;ith this
not only $ill they *ring in the local market *ut there is also the opportunity to tap in the local AS-A6 market as $ell.
5he e8ternal threats also connect $ith the companyBs strengths *ecause it has something to do $ith its pro8imity to local entertainment options such as casinos and malls. Although it *rings in a huge num*er of individuals to the area% there is also the danger that the e8isting customers of the park $ould rather e8plore these ne$er places rather than stay in the park. 5his increase in competition $ould actually then serve to *ring do$n the overall num*er of park patrons and if not taken care of% $ould cause the do$nfall of Star City.
'or 'or our our ma8 ma8iEma iEma8i 8i stra strate teg gies ies $hich hich highl ighlig ight ht the the ma8i ma8imi mi)a )ati tion on of our our opportunities $ith respect to our strengths% the first suggestion $ould *e to use targeted advertising to highlight its familyEoriented offerings to the near*y pu*lic. ;e feel that this is its main differentiation from its main points of competition and should *e highlighted *y the company. 5he ne8t is to promote their packages through its campaign to highlight the cost *enefits that theyBll *e a*le to e8perience e8perience *y going to the park. Apart Apart from their ad campa campaig ign% n% they they shoul should d also also $ork $ork on key spons sponsor orsh ship ip partn partners ershi hips ps $ith $ith trave travell agencies
5he ma8iEmini strategies then highlight on minimi)ing its $eaknesses *ased on its opportunities opportunities and $e feel that the main thing to $ork on $ould *e forcing the park to start earlier to accommodate the influ8 of the morning cro$d during $eekends as $ell as the the lunc lunchE* hE*rea reak k cro$ cro$d d $hich $hich occur occurs s all all $eek $eek round. round. 5his is a main main sour source ce of profita*ility $hich is regularly unconsidered and $e feel that it should *e a main profit point for the company if they $ant to stay competitive. Another main point to employ $ould *e to highlight the safety of their park *y updating the pu*lic of the security measures and protocol $hich the company regularly does in order to put do$n any dou*ts and stories of accidents $hich may come into the pu*lic eye. 5he last strategy for *oth $eaknesses and opportunities is to increase of the effort of their customer relations department in order to not only remain transparent of their activities *ut also drum up interest for the park.
;orking on threats $ith respect to the parkBs strengths is the main point of our miniEma8i strategies and the first is to highlight the differentiating factors of Star City $ith ith othe otherr main main point oints s of comp compet etit itio ion n such uch as othe otherr amus musemen ementt park parks s and and entertainment centers. 5he point here is to highlight the parkBs competitiveness and sho$ the via*ility of the park as an alternative means of entertainment $hich is easily availa*le to the pu*lic. !f course% the end goal is to sho$ that Star City $ould *e the *est choice overall. More specifically% the company $ould have to highlight its familyE friendly atmosphere as $ell as its cheap rates compared to these other entertainment options.
5he last $ould consist of the miniEmini strategies and this looks to highlight the minimi)ation minimi)ation of *oth the internal $eaknesses and e8ternal threats of the company. company. 5he previous strategies have already touched on our suggestions and it looks to edit the opening hours of the park to accommodate the earlier cro$d as $ell as highlight the safety features of the park $hich is a very important consideration point for its pu*lic. Also% increasing increasing pu*lic visi*ility in all necessary necessary mediums such as the internet is essential in order to earn the trust of the pu*lic.
VII.
!)S 'atrix
Strengths S1
;eaknesses
E 'le8i*le park packages
W1
E
Late ope openin ning
times imes
W2
E Large target market
6egat egativ ive e
repu reputa tati tion on
concerning safety
E aried aried attract attractions ions and
offerings S4
E
W3 E
!utdated attractions
W4 E
La)y customer relations
E Pro8imit imity y to ma@o ma@or r
residen residential tial and commerci commercial al areas !pportunities O1
E
pote potent ntia iall *ase
Ma8iEma8i
#ncreasing
S2S4O1
cons consum umer er targeted around
Ma8iEmini E
&y
$ay
of
W1O1
advertising% the
its highlight highlight familyEoriented familyEoriented fun
5ake advan advantag tage e of
increase
cons consu umers mers
*y
of
potential
shif shifti ting ng
the the
immediate area O2
E
to the increas increasing ing consume consumer r opening
#ncrease
'ilipinos
S1O2
as
$ell
ne$ ne$
high highli ligh ghtt
entertainment
fle8i*ility $ithin the park
opportunities% etc.=
S3O3
partnerships
as measures
fina financ ncia iall
variation
of e8ploring
to
if
secu ecurity rity
ensure
the
pu*li pu*lic c
that that
the park is a safe place to go to
'urt 'urthe herr incr increa ease se
+ecent attraction
add add=
pack packag ages es financ financial iallyE lyEvi via*l a*le e
$hich hich
–
accept
Kighlight
Promo Promote te e8ist e8isting ing necess essary ary%
alternative
O4
W2O2
E Potenti Potential al *rand *rand packages
e8pa e8pans nsio ion n
to
in *ase *ase situ situat ated ed arou around nd the the morning parkEgoers
disposa*le disposa*le income for area
O3
time
W3O3
Kighlight Kighlight
product
*y e8pansion *y ac"uiring ne$er
alternative attractions
and
forms
of
touris tourism m cente centers rs and and enterta entertainme inment nt mediums mediums *y entertainment for the pu*lic ticket ticket agen agencie cies s $ith $ith popular
$ay
of
internet
and
tourist television
destinations
S2S S2S4O4
W4O1O4
partn partners ership hips s
travel
agencies
the
customer
and depa departm rtmen entt
highlig highlightin hting g its pro8imity pro8imity to perfo performa rmanc nce e
T1
E
Presence
similar competition T2
E
of
and and
incre increas ased ed
the online sector=
MiniEma8i
MiniEmini
S1S3T1
Kighlight
differentiating
W1T1T2
-
relations
to impro improve ve their their
other tourist destinations
-8ternal *et$een
future
#ncrease *rand customer visi*ility to motivate
e8posure *y partnering $ith
5hreats
Use
Ad@ust
in
opening
factors times to cover morning hours the
t$o to take take adva advant ntag age e of thos those e
entertainment options amusement parks and start
looking
entertainment options
museums% etc.=
malls% an online campaign to sho$ these
key
differences
*et$een competition S1S3T2
prev previo ious us
W2T1
for
alternative
Specifically% highlight
the additio additional nal safety safety feature features s
Similar to the that Star City employs and the sugg sugges esti tion on
*ut competition doesnBt
additio additionally nally%% highligh highlightt its all
W4T1
inclusive atmosphere as $ell
visi*il visi*ility ity and transpar transparency ency to
as
sign signif ific ican antl tly y
offerings
–
#ncr #ncrea ease se
pu*l pu*lic ic
chea cheape per r earn the trust of the discerning pu*lic
Cons Conside ideri ring ng the the $ay the park park is run run *y its admin administ istra ratio tion% n% the the pro*l pro*lems ems are numerous numerous77 la8 safety safety standar standards ds
;e therefore have a fe$ suggestions *ased on the 5!;S analysis and for this% $e found that it $as *est to keep it relatively simple due to their pro*lems *eing easily solved. A visual check of the park on a $eekday also de*unked future dou*ts a*out their pro*lems as some
5he general plan is mostly centered around social media due to their lack of any presence here and it starts $ith a ne$ campaign $hich sho$s ho$ someone can have real fun in Star City
Apart from from advertising advertising $e feel that that it is also essentia essentiall to introduce introduce $hat $e $e call as the Star 'riends% a dedicated P+ team $hose main @o* is to connect $ith social media participants *y $ay of ans$ering "ueries and releasing info online. 5his re"uires that they constantly communicate $ith the customers to not only make it easier for them to get relevant information *ut also to acclimate these individuals to visit the park in their
free time. During opening hours% these individuals individuals are also located around key areas of the park $ith duties some$hat similar of a concierge in order to make the customer e8perience as happy as possi*le.
'inally it is also suggested that an active renovation of the park *e done once relative funding has *een achieved. 5his is due to the fact that upon inspection% many of the metal structures $ere o*served to *e rusty% ceiling grates left open% and key rides *eing held up *y $ooden *locks. 5his only serves to add to any any e8isting uncertainty the customer may currently have and is a possi*le deterrent to future visits.
VIII.
orter*s + ,orces
'actors affecting Strength of +ivalry Strong 5he 5he compe competit titio ion n *et$ *et$ee een n rivals rivals in the marke markett is more more or less less the stron stronge gest st competitive force among the other four. #n the figure a*ove% it is said that rivalry is stron stronger ger $hen the the deman demand d of *uyers *uyers is slo$ slo$ and and selle sellers rs have have a surplu surplus s in their their invent inventory ory%% rivals rivals are are very very aggr aggress essiv ive e *y intro introdu ducin cing g strate strategie gies s that that gains gains them them a competitive advantage in the market% the num*er of competitors are increasing as $ell as their capa*ility to compete violently% the differentiation of the products is strong for the indirect competitors% *ut $eak for the direct competitor <-nchanted ,ingdom=.
As might *e e8pected% e8pected% there are also instances instances $herein rivalry amongst competitors is generally $eak. 5he rivalry $eakens $hen competitors are not eager to ac"uire a huge market share% the demand of consumers are gro$ing% *rand loyalty of
the the cons consum umer ers s are are high high and the the produ roduct cts s
Curr Curren ently tly%% 5he 5he Phil Philip ippi pine nes s only only has has t$o t$o dire direct ctly ly comp compet etin ing g them theme e park park esta*lishments7 Star City and -nchanted ,ingdom. 5here are also other esta*lishments that that comp compet ete e $ith ith Star Star City ity% ho$ ho$ever ever%% they they are are ind indirec irectt comp compet etit itor ors. s. 5hese ese esta*lishments include Sky +anch and SM *y the &ay Amusement Park. ;ith the rise of esta*lishments such as Sky +anch and SM *y the &ay Amusement Park% *uyers demand to go to Star City $ill definitely drop if they do not make fresh moves to improve their market share.
'actors affecting 5hreat of -ntry ;eak 5here are many factors that affect the $illingness of ne$ entrants to enter the market. !ne of the factors is if a large num*er of potential ne$ entrants along $ith their resources to *ack them up. #n effect% the threat increases *ecause of the large pool of ne$ ne$ compe competit titor ors s that that $ill $ill ente enterr the market market.. 5he 5he secon second d facto factorr deter determin mines es if the the candidates $ill face high or lo$ entry *arriers. A high *arrier reduces the threat of ne$ competitors% $hile a lo$ *arrier entry increases it. &arrier to enter the industry $ould *e the needed capital for starting up a theme park industry. #t $ould take a lot of planning%
investors% and time to *uild a single theme park that $ould match the theme parks already present. #n fact% there are only a fe$ theme parks in the Philippines including -nchanted ,ingdom% Sky +anch% SM *y the &ay Amusement Park% temporary pop up theme parks during Christmas and of course% Star City. 5he 5he thre threat at of entr entry y is $eak $eak due due to the the fact fact that that afte afterr seve severa rall year years s of its its e8istence% only -nchanted ,ingdom serve as their direct competitor. #t $ould pro*a*ly take many more years to come up $ith another theme park as *ig as *oth Star City and -nchanted ,ingdom. Moreover% putting up a theme park $ould need a lot of permits and regulations% $hich $ould *e difficult for people $ho are planning to *e part of this industry. Ko$ever% Sky +anch and SM *y the &ay Amusement Park as ne$ entrants may *e a threat of Star City if they gro$ e8ponentially in the future. As of no$% several people are no$ a$are of these place% and most of them either $ent already or planning to go in the future.
'actors affecting Competition from Su*stitutes ;eak #n the figure figure a*ov a*ove% e% it e8pla e8plains ins the factor factors s that that affe affect ct the compe competit titio ion n from from su*stitu su*stitute te product products s in the market. market. 5he competit competitive ive pressur pressures es from su*stitu su*stitutes tes are stron stronger ger $hen $hen the the su*st su*stitu itute te prod product ucts s are are easil easily y acces accessi si*le *le to the the marke market% t% the su*st su*stitu itutes tes are attra attract ctive ive to the the consu consumer mers s
#n contrast% the factors that $eaken the competition from su*stitute products products are7 the su*stitute products are not easily accessi*le to the market% su*stitutes are more e8pensive than the primary products% and the consumers $ould have higher costs if they s$itch to su*stitutes. #n terms terms of the theme park park industry industry%% Star CityBs CityBs competit competition ion from from su*stitu su*stitute te products products is $eak $eak since since s$itchi s$itching ng costs costs $ill *e higher higher $hen custome customers rs transfe transferr to -nchanted ,ingdom. Moreover% -nchanted ,ingdom is not easily accessi*le to the market market as compa compare red d to Star Star City City *eca *ecaus use e it is locat located ed in a farthe fartherr locat location ion and customers $ill have to pay toll in order to get there.
'actors affecting &argaining Po$er of Suppliers Strong 5he strength of supplier *argaining po$er is strong $hen the competitors in the industry incur higher costs if they s$itch to alternative suppliers% resources provided *y the suppliers are scarce% the supplierBs inputs are of such distinct "uality and uni"ue $hich can *e an important material that the competitors need in their *usiness% and if the amount of suppliers is only limited.
5here are factors in $hich descri*es if the strength of supplier *argaining po$er is $eak. Such factors are7 the resources *eing supplied is easily accessi*le for the competitors and they need not to get from the supplier themselves *ut can ac"uire it from from retail retailer ers s $ith $ith the same same price price offe offered red *y the the suppl supplier iers% s% selle sellers rs s$itc s$itchin hing g to alternative suppliers costs are lo$% su*stitutes for ra$ materials emerges% a surplus of resources availa*le% current industry mem*ers contri*ute a relatively large amount to
the supplierBs sales% and if the current industry mem*ers $ould opt to manufacture their o$n goods for their *usiness.
'actors affecting &argaining Po$er of &uyers Strong 5he factors that strengthen strengthen the *uyer *argaining po$er include *uyers s$itching to competing *rands and to su*stitutes costs are lo$% a large pool of *uyers $hom purchas purchases es in large large "uantit "uantities ies demand demand concessi concessions ons%% sellers sellers depend depend on the *uyersB *uyersB amount of purchases% the *uyersB demands are declining% there are only fe$ *uyers in the market so sellers have to compete for those *uyers% the reputation and identity of certain certain *uyers *uyers are importan importantt to the sellers% sellers% the *uyersB *uyersB kno$ledg kno$ledge e on the product product improves% *uyers have the choice to cancel their purchases if dissatisfied% and some *uyers pose as a threat to the sellerBs *usiness.
5he *uyer *argaining po$er is $eak $hen *uyers purchase from the sellers in smaller "uantities% *uyers s$itching to competing *rands and to su*stitutes costs are high% there is a gro$th in *uyer demand% the sellerBs reputation is important to the *uyer% and the sellerBs product is of higher "uality or uni"ue over other *rands.
'or Star City% the *argaining po$er of the *uyers is $eak *ecause $hen *uyers s$itch to competing esta*lishments like -nchanted ,ingdom% it $ill cost them higher. Star City has a good reputation and has uni"ue products as $ell% thus customers $ill prefer it *ecause it offers a lo$er price.
I-.
,is$bone ia#ram
-.
oals & !b0ectives
;ith respect to the specific o*@ectives of the program% it is essential that these *e divided into su*Eterms in order to accurately map out those $hich are immediately needed and those $hich happen to *e necessary for the future. 5his $ill then *e divided
into three periods7 Short 5erm one year% Medium 5erm t$o to three years% and Long 5erm four to five years.
5he current *rand situation situation is the main *asis for these o*@ectives o*@ectives as the group has highlighted pro*lems in the aspects of safety
(oals •
5o create a positive and e8citing image to *e associated $ith the *rand
•
5o achieve industry leader status in the *usiness and customer opinion
•
5o remove any consumerEmade correlations *et$een the park and lack of safety
•
5o consistently provide $orldEclass service
•
5o actively communicate and improve from consumer feed*acks
•
5o train and develop the employees to *e part of the amusing factor of the park
!*@ectives •
Short 5erm !*@ectives
/2N of the target market $ill *e a$are of the park% promos% and safety measures
o
3GN of the target market $ill prefer Star City as the premier amusement park
o
N increase in Star City ticket and merchandise sales
•
o
3GN increase in Star City market share
o
#mplement Star 'riends P+ 5eam
o
+elease online and radio advertisements
Medium 5erm !*@ectives
G2N of the target market $ill *e a$are of the park% promos% and safety measures
o
0GN of the target market $ill prefer Star City as the premier amusement park
•
o
3GN increase in Star City ticket and merchandise sales
o
0GN increase in Star City market share
o
#mplement facility renovations
Long 5erm !*@ectives
HGN of the target market $ill *e a$are of the park% promos% and safety measures
o
42N of the target market $ill prefer Star City as the premier amusement park
-I.
o
/2N increase in Star City ticket and merchandise sales
o
4GN increase in Star City market share
o
-8plore attraction e8pansions
o
-8plore territorial e8pansions
ar#et ar#et Se#ment escription
A. Demographics Demographics Age
5eenagers7 34E3 34E3
Amusement Amusement parks main target segment are usually
year years s teenagers around the age of 34E3. &ecause they are
old.
more amused in having fun rather than @ust doing other things. 'urthermore% adults are less likely to go to these places $ith a main purpose of having fun. 5herefore% the target age is 34E3. &ut then% since these people are less likely to have their o$n source of income% $ith that% they are a*le to drag their parents along or ask money from them to en@oy Star City.
(ender
All genders
Star Cit City is ve very vas vast in te terms of th their offering to th the customers. 5hey have arcade games% rides *oth e8treme and light% food stalls% shooting games% mini games and etc. &ecause of this% any gender can *e their target. And often times% it *ecame a dating place of the youth.
-ducation
Kigh School Ages 34E3 revolves revolves around educational educational level of Kigh to college
#ncome
School to college.
S-C &road C 5he main target is &road C *ecause
there is less
competition in this market in the industry since Star City is the most dominant in Manila and the costs of entrance and the goods and services inside fits most this *racket. Ko$ Ko$ever ever%% Clas Class s A and & are are more more like likely ly to go to enchanted ,ingdom since they see it as *etter and $ell
off than Star City. And they have the means of going to -nchanted -nchanted ,ingdom and the means to pay for the goods and services of -,. !ccupatio
Students
n
Students and young professional are less *urdened a*out earning money and $hat they have to do since they donBt have a family to feed and monthly *ills to *e paid.
Location
Metro
5ransportation in Metro Manila is easy since there are
Manila%
vario various us transp transport ortati ation on syste systems ms develo develope ped d in Metro Metro
mostly
Manila.
Manila
&. Psychog Psychograph raphics ics and and &eha &ehavior vior 'rom 'rom the the UA# UA# surv survey ey that that $e cond conduc ucte ted% d% $e foun found d out out that that 1N 1N of our our respondents respondents are a$are of Star Star City. 5he mediums on $here $here they learn Star Star City are listed *elo$7
(reat percentage of the respondents learned a*out Star City from their family and friends% fe$ learned it through social media% tv% radio and ne$spaper. #t seems that the $ord of mouth of the consumers $as the main medium of kno$ledge of Star City. !ut of the /3 respondents% 4N had *een to Star City for last G years sho$ing that the trial rate is very high from those $ho kne$ Star City.
4N of the respondents respondents like to ride the rides in the amusement amusement parks parks they $ent to *efore. Ko$ever% 11N of the /3 respondents are a$are of the accidents and at some point% heard that that there are usually accidents accidents in the rides of Star City. City. &ut only 0N of the the /3 respo responde ndent nts s said said that that they they are disco discour urage aged d to take take the rides rides *eca *ecaus use e the the accidents they heard% $hile the other 13N said that they $ill continue to ride the rides of Star City and other amusement parks.
;e surveyed the people on $hat they think a*out Star City in many aspects namel namely7 y7 safety safety as a $hole $hole%% conv conveni enien ence ce in headin heading g there there%% value value for money money%% ride ride entertainment% games entertainment% interior design and most of all% ho$ much are they
$illing to go to Star City in the scale of 3E32% 3 lo$est and 32 is the highest. Since every respondent respondent has purely random ans$er and they have almost une8plaina*le une8plaina*le *ehavior to represe represent nt as a sample sample of the market market through through descriptiv descriptive e statisti statistics% cs% *asic *asic multiple multiple regre regress ssion ion model model $as $as used used to deter determin mine e the the inter interre relat lation ionsh ship ip of every every varia varia*le *le mentioned a*ove $ith respect to their level of $illingness in going to Star City. 5he estimation outcome $ill sho$s us to $hich specific varia*le $ill the $illingness of the respondent *e responsive. 5he result sho$s that there are 0 out of H varia*les that are significant. 5he perception of the consumer to$ards the safety of Star City and their perception a*out the value for their money in going to Star City are the most important factor that drives the level of $illingness of the respondents to go to Star City or not. ;hile other factors such as% convenience in going to Star City% ride entertainment% game entertainment entertainment and interior design are only slightly significant% significant% $hich means that they do not affect the $illingness of the respondents to go to Star City or not.
?##.
5arget 5arget Person Profile
Meet Meet the the &ersa &ersa*e *e family family.. 5he 5he &ers &ersa* a*e e famil family y loves loves spend spending ing "uali "uality ty time time together. 5he children in the family are risk takers and they are thrill seeking individuals% thus Mr and Mrs &ersa*e often take them to places the children $ould en@oy. Despite the fact that the parents dislike going to theme parks% they are urged to go in order to make their children happy. #n fact% they have *een to Star City a couple of times already. 5hey often go there due to the accessi*ility and afforda*ility. #n terms of safety% they *elieve Star City offers safe rides and perform safety precautions every time% so they really trust the institution.
5his is Mike from Makati and along $ith him are his friends from one of the clu*s he @oined in school. 5he other guy *rought his *rother $ith him. 5he three friends have *een going to Star City $ith their o$n families since they $ere young. 5hey continue continue to en@oy the park after all these years. 5hey like the ne$ e8treme rides like the Star
'ris*ee and Star 'lyer. 5hey think the price of +ide all you can is $orth it. 5hey think this is especially true $hen they en@oy the park on $eekdays *ecause of the very short line on rides. Adding more rides every no$ and then is important for them to continue patroni)ing the park. Like most people their age% they rely on online materials in order to plan out their ne8t trip and take advantage of all the promos that they can get
?###.
Ps of Marketing
A. -8isting -8isting PBs
1I
S
roduct Elements
VS ✓
rice and ot$er Cost considerations
✓
lace2 ime & Cyberspace
✓
romotions & Education
✓
roductivity & 3uality
✓
rocess
$ysical Evidence
E
✓
✓
eople
✓
3. Product -lements E ery Satisfactory 5he main product of Star City is familyEcentered entertainment. 5hey provide $holesome $holesome fun to the $hole family. +ides +ides range from small kiddie rides to pulseEraising pulseEraising rides like Star 'lyer <#nverted roller coaster= and Star 'ris*ee. 5here are also carnival type games and arcades. 'or some parents $ho donBt ride% they have many options $hen it comes to food. 5here are small food stalls like 5ender Juicy and Potato Corner to fast foods like Cho$king% (reen$ich and other small food esta*lishments like #ha$E iha$ restaurants. 5here is an area leased out to vendors of all kinds of items. 5here are clothes% toys% accessories% henna tattoo% etc.
0. Price and other cost considerations E -8cellent As $e tested on a ;ednesday ;ednesday night% night% the entrance entrance fee $ith no rides rides costs PhpHG. PhpHG. +ide all you can <+AIC= is Php402% and / rides of your choice is Php/H2. 4 rides are not included in +AIC and have separate payments7 La)er &laster
/. Place% 5ime and Cy*erspace E Satisfactory Star City is located $ithin the Cultural Center of the Philippines comple8 in Pasay City. #t is easily accessi*le *y pu*lic transport via the L+5% then transferring onto @eeps that pass through CCP. 5raffic varies greatly in the area. ;hen $e $ent there around Gpm% traffic $as light. &ut on $eekend nights% $hen the park attracts most customers% traffic *ecomes e8tremely heavy.
Posted park times are 4pm E 30am on Monday E 5hursday% *ut $hen $e asked the security guard% the tentative closure time is 327/2 pm. 5hey ad@ust park closing time *ased on the num*er of people still inside.
Star City has a very good $e*site. 5icket prices% park hours% ride details and contact info are presented. 5ickets can *e *ought online% the credit card payments processed *y PayPal. 5hey also have great presence on 'ace*ook $ith their page having 323%222 likes. Promos are posted everyday *y the page admins. 4. Promotions and -ducation E 6eeds #mprovement Star City has many promotions depending on the season and holiday. 5he most recent promos are -nd of School Promo and -aster Circus E on -aster Sunday April 02% 02% kids kids 32 and and *elo$ *elo$ get G2N G2N off off on +AI +AIC ticke tickets. ts. 5hese 5hese are are share shared d on their their 'ace*ook posts. # am not a$are of Star City promotions through other media.
G. Productivity and Ouality E 6eeds improvement
Star City provides a good value for money proposition. 5he only place that provides the same service% -nchanted ,ingdom% is far a$ay and more e8pensive. 5he +ide all you can ticket only costs Php402 and patrons can already en@oy so many rides. 5he pro*lem $e sa$ $as in the kiddie section. 5here are small rides and arcade games there that are no longer functioning and only take up space. 5he environment is clean and $ellEmaintained. 5here are numerous trash cans so that people are encouraged encouraged to thro$ trash properly. properly. 5he no smoking policy is strictly enforced in the premises and there are numerous signs posted. 5he restrooms are clean. 5he pro*lem $e e8perienced $as the smell in the enclosed areas. entilation $as insufficient that there is an unpleasant smell of mi8ed foods% concrete% metal% etc. 5his lessens the am*iance and overall e8perience of Star City.
H. Process E ery Satisfactory ;e $ent to Star City at Gpm on a ;ednesday. ;e easily parked near Ali$ 5heater. 5he "ueue for tickets $as light and $e $ere a*le to purchase them "uickly. ;e *ought the admission only tickets $orth PhpHG each. &elongings are checked *efore entering. ;e $ent around Star City for a*out 0 hours.
1. Physical -vidence E Poor Star City gives tickets for each payment and a receipt. 'or some rides% there is an optional picture that customers can avail of. Ko$ever% it seems that there had *een a lot of complains regarding the facilities% e"uipment etc are kid of rusty and old. 5hey should improve it that the physical evidence $ould not *e hindrance *ut a factor of
attraction.
. People E Poor 5he Star City employees are okay *ut they have not *een e8tremely lively% specially they are e8pected to amuse the people inside the amusement park. &ut it seems that they missed out a lot of their @o*. #n addition% other customers seem to *e contri*uting to the not so good am*iance of Star City since most of the mare @ust $earing slippers% *asket*all short and very unpleasant clothings. At some point they affect the $hole park e8perience a lot.
&. Proposed PBs 3. Product -lements 5he services offered *y Star City are complete. 5here are the kiddie and e8treme rides% and food stalls for parents. 5he "uality of the rides can *e improved through *etter fit and finish% theme% etc. 5hey @ust have to ensure the safety that the product eleme ement
$ould
remain main
e8ce e8celllen lent
0. Price and other cost considerations
and
accide idents
$ould uld
*e
a
sma small
fact actor.
5he pricing strategy of Star City is e8cellent. 5he +AIC is the most popular and patrons think the price of Php402 is @ust right.
/. Place% 5ime and Cy*erspace Star CityBs prime location location%% *eing *eing easily easily accessi* accessi*le le and fre"uen fre"uented ted *y many people% also *rings a*out the pro*lem of traffic. Star City needs to help lessen the traffic in the vicinity so that patrons $ould *e a*le travel to Star City easier and there*y improve overall e8perience.
!perating times should *e ad@usted. 5he opening times should *e earlier. 5here should also *e a standard closing time% not an ad@usta*le closing time depending on the amount of people.
!nline presence could also use improvement. 5here should *e more interaction *et$een Star City and its patrons. 5here should also *e more fun content that $ould serve as an appeti)er for the fun that patrons $ould e8perience in Star City.
4. Promotions and -ducation 5here are many promotions Star City makes depending on season% holiday% event% etc. 5he pro*lem is the limited media through $hich they communicate these promotions. 5hey should promote these through print ads% radio ads% 5Cs.
G. Productivity and Ouality
5he overall e8perience of Star City still needs improvement. 5hey should improve on the am*iance of the park. 5he smell of the park should *e made *etter through prope properr venti ventilat lation ion.. 5he 5he fit and finish finish of the rides rides shou should ld also also *e improv improved ed.. 5he 5he atmosphere of Star City is associated $ith a carnival. 5he e8posed $ires and metals% small nonEfunctioning rides and games% etc. limits the overall am*iance of the park. 5he park should *e renovated.
H. Process 5he entrance of Star City could *e improved. 5he entrance is also the e8it of the park% $hich could get very congested during holidays.
1. Physical -vidence Star City could add their o$n *randed apparel% accessories% and other various souvenirs. souvenirs. 5hese could also serve as promotional promotional materials for the park. 5hey can also serve free Star City manufactured souvenirs on special occasions.
. People 5he staff of Star City should undergo training in customer relations. 5hey are a cruc crucia iall part part of the the serv servic ice. e. 5o keep keep in line line $ith $ith the the imag image e of fami family lyEc Ecen ente tere red d entertainment% the staff should *e very $elcoming and friendly.
?#.
'lo$er of Service
-8isting
Proposed
&ased on the 'lo$er of Service as $ell as $hat has *een passed through in the 5!;S analysis% there are multiple key o*@ectives $ith respect to the service plan. 5he first o*@ective is to find a $ay to increase online social activity as compared to the companyBs previous efforts *ecause prior to this% no replies to "ueries made online have *een done since 0230 and even more striking is the fact that their last online post $as made last 0233. #n todays competitive market this is unaccepta*le *ecause it alienates a large amount of individuals $ho depend on this medium to get the info that they need. Star City making itself not availa*le to these customers can only translate to lo$er ticket sales as these individuals deviate over to the parkBs competitors. 5he second o*@ective is to reassure potential consumers consumers of the safety of this park *ecause of the fact that the most recent $riteEups a*out the park have mostly *een a*out deaths and suicides. Although Although press releases have *een used to rela8 the pu*lic% reassurances are needed to *e kept constant in order to truly rela8 the mindset of potential customers. 5o sum it all up% it is essential that the consumer e8perience e8perience *e kept as rela8ed and en@oya*le en@oya*le as possi*le. Apart from the previous suggestions% additional measures need to *e taken such as renovating the surroundings to make it look cleaner and more secure *y $ay of park renovations and increasing security measures *y $ay of additional CC5s and roving guards.
;ith the mechanics of this program laid out in the rest of the paper $ith the online campaign% retrofitting% and revamped P+ management% it is up to the group assigned Star 'riends to act as the proponents of the pro@ect. (iven that they act as the face of the company $ith respect to their customerErelated activities% a key part of
their @o* is also to ensure that the same "uality of service is e8tended to the rest of the pro@ect as $ell. 5hey $ill *e given key parts in managing the various aspects of the revamp $hile *eing led *y senior management individuals $ho are there to regulate and mold the concepts of the Pu*lic +elations cre$.
?.
#nvestment Plan
Particulars Star
'rien iends
Cost &reakdo$n and details E !ne Star 'riend is paid 4+2555p$p a month E 02 Star 'riends.
P+ team
Star Star 'rie 'riend nds s $ill $ill incr increa ease se in num* num*er er cont contin inua ually lly duri during ng the the renovation on year 0 up to the renovation and ac"uisition of ne$ ride on year G. 'ace*ook
'ace*ook advertising has options on ho$ much is our *udget for
Advertisement Advertisement
the month and it $ill *e consumed on ho$ many clicks the page
$ill have. 5his advertising $ill *e placed on the side of random peopleBs ne$sfeed and some in the games.
&udge udgett for for this this is +52555p$p on the first first year year and and incre increasi asing ng conse"uently throughout the years since $e are e8pecting that preference on Star City $ould change. +adio Advertisement Advertisement
+adio advertisement production cost +52555p$p and another ne$ production on the start of 4th year *ecause $e encourage the retention of our Star City +adio ad for / years. Placement of ad in Love +adio% an affiliate of Star CityBs mother compa company ny%% cost costs s e8act e8actly ly 3G% 3G%42 42php php for for one one year year%% G2N G2N *ulk *ulk discount package is already inclusive of the amount.
Minor
Minor renovations start at the 0nd year of the investment plan. 5his
+enovations
$ill include the $all paint% repainting of rusted rides% ne$ lightings% furnitures etc.
5his $ill start on the 0nd year. &udget allocated7 32%222%222php Ma@or
Ma@or renovations includes selling of old rides and ac"uisition of
renovations
ne$ rides *ased on the preference of the consumers. 'urthermore% the redesigning of the interior $ill *e also part of this investment plan and if there is a chance to territorial e8pansion% $e $ill take it.
Ma@or renovations are very costly% thus this $ill start on the 4th year of investment plan.
&udget allocated for ne$ interior design7 0G%222%222php E 4th year. /G%222%222 php E Gth year.
&udget for ne$ ride ac"uisition is G2%222%222php% +eflected in the estimate of profita*ility is the depreciation of the ne$ ride for 32 years. Utilities
Utilities ar are af affected *y *y th the in investment pl plan si since th the lilightings of of the park $ill *e change in the long run and there $ill *e ne$ rides% therefore% electricity consumption $ill increase at the same tim
5raining
and 5rain rainin ing g is esse essent ntia iall if $e $ant ant Star Star City City to have have amus amusin ing g
Development
employees. 5hey have to *e trained $ell and *e developed as a part of the companyBs goal
?#.
Profita*ility -stimates
?##. Appendices
A. Survey Summary Summary +esult +esult
Do you kno$ Star City
Ies
/2
1N
6o
3
/N
Ies
0H
4N
6o
G
3HN
Kave you *een to Star City
'rom $here did you come to kno$ star city
'amily
03
/3N
'riends
0H
/N
Social Media
1
32N
5
1
32N
+adio
/
4N
6e$spaper
3
3N
!ther
0
/N
Do you ride the rides at any amusement parks
Ies
0H
4N
6o
G
3HN
Ies
3/
40N
6o
3
GN
Do you think itBs dangerous to take the rides in Star City
Kave you heard of any accidents occurring inside Star City
Ies
04
11N
6o
1
0/N
Did this discourage you from actually going on amusement park rides
Ies
0N
6o
00
13N
Ko$ $ould you rate Star CityBs safety
3
3
/N
0
3
/N
/
3
/N
4
/
32N
G
1
0/N
H
3
/N
1
0N
G
3HN
/
32N
32
2
2N
Ko$ $ould you rate the convenience in going to Star City
3
0
HN
0
3
/N
/
0
HN
4
2
2N
G
0
HN
H
/
32N
1
4
3/N
0N
0
HN
32
H
3N
Ko$ much can Star City give value for your money
3
3
/N
0
/
32N
/
3
/N
4
0
HN
G
1
0/N
H
/
32N
1
1
0/N
G
3HN
3
/N
32
3
/N
Ko$ much fun do you think Star City>s +#D-S can offer to you
3
0
HN
0
3
/N
/
3
/N
4
4
3/N
G
1
0/N
H
0
HN
1
4
3/N
H
3N
/
32N
32
3
/N
Ko$ much fun do you think Star City>s (AM-S can offer to you
3
2
2N
0
4
3/N
/
4
3/N
4
/
32N
G
H
3N
H
4
3/N
1
0HN
0
HN
2
2N
32
2
2N
Do you like the interior design of Star City
Ies
32
/0N
6o
03
HN
;hat is your $illingness level to go Star City
3
/
32N
0
3
/N
/
1
0/N
4
3
/N
G
4
3/N
H
/
32N
1
0HN
/
32N
3
/N
32
2
2N
&. Multiple Multiple +egress +egression ion +esults +esults
C. Poster
