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EliPom Club Network Marketing Strategy for JDPGROUP 5 / SECTION E7
CONTEXT
Who is the principal?
EliPom, a JDP club network that develops and
operates elite JDP clubs in urban areas offering
JDP play experience alongside catering, lounge
and meeting areas as well as value added services
such as massages, coaching
Objective of the strategy deliverable:
Develop a solution to position and promote JDP
amongst EliPom target customers in London,
capturing share of wallet from competing offerings
with inferior attributes mix relative to the needs of
our segment
OVERVIEWProduct: exclusive racquet game with royal heritage combining a unique feature set of exhilaration and exertion of
tennis/squash with strategic demands of chess and prestige and exclusivity of golf and polo, while being available within
close reach of home or work and more affordable/requiring less upfront investment than comparable prestige sports
Customer Segment: a successful male business professional aged from mid 20s upwards in the high income bracket
(earning GBP 60k+), working in dense urban communes in financial services and consulting (other relationship driven, time
intensive, high income professions where employees have purchasing power starting early career), familiarity with racquet
sports, luxury tastes, future/current customers of golf, polo, upscale sports entertainment (prime seats Wimbledon, box seat
formula 1, etc), looking to socialize and build networks with like-mided people in very exclusive upscale environment – a golf
club-like scene in urban area
Positioning relative to competitors: Priced close to but below top tier golf, polo, premium live sports entertainment,
but above other in-city sports such as tennis, squash. Combining customers goals of high exclusivity, high mental challenge,
high athleticism and elite/pleasant/upscale environment with accessibility in-city. Playing a game of golf prestige and golf-
club-type experience, chess complexity and tennis exertion on a Tuesday night in center London.
Promotion and distribution strategy: attack each stage of the marketing funnel by building awareness with the
target audience through promotional offers bundled with activities they already engage in (Wimbledon, tennis, golf),
promotions through key points of customer traffic (elite sports clubs, business centers) and customer attention (Fashion
blogs, The Economist, FT), celebrity endorsements by diverse celebrities representing smarts, prestige and athleticism and
upscale professional events alongside golf and tennis word of mouth through free trials; distribution by building upscale
court facilities proximate to places of work or existing places of customer socialization
Pro
du
ct
Att
rib
ute
PRODUCT OFFERINGC
on
sum
e
Ben
efi
t
Co
nsu
me
r N
eed
Elite, Exclusive Sport
with Royal heritage
Need for status, business
need to socialize with
others in elite
demographics, desire for
privacy/low traffic/low
annoyance environment
Socializing in narrow elite,
high income circles &
luxury environments,
deeper bonds with players,
more private environment
In-city location
possible, unlike other
status sports: golf, polo
High Physical Exertion
Ability to engage in the
sport more frequently,
lower cost to arrive, more
socialization possible
Need to maximize social
and monetary utility of
sports, need to save time
Fun and health benefits,
improved conditioning,
replacing gym workouts,
while still
socially/business useful
Effective use of time,
need to maintain healthy
lifestyle and accomplish
social and business goals
High Strategy
Component / Mental
Exertion
Complexity of rules filters
for intellectual players and
adds unique prestige
making it the chess of
active sports; good for
achieving social goals
Need for 1) mental
stimulation, need to
socialize with intellectually
proximate folks, 2)
efficiency in time use –
play JDP vs chess + golf
TARGET CUSTOMER
•High income, dense urban areas with a focus on cities home to financial hubs
•Initial focus on London, U.K., with emphasis of premium boroughs, proximity to financial and technology work places
Geographic
•High income – above 50k GBP/year
•High intensity, intellectual, relationships drive professions: finance, consulting, luxury sales, senior business development
•Male, 25-40 year age group, with tennis/squash experience
Demographic
•Believe in importance of self-development, value close-knit social groups of like-minded people, highly career oriented and believe in importance of sports for networking, care about health and look for healthy sports that will keep them in shape; believe in comfort, luxury and convenience
Beliefs, Attitudes
•Improve health, maintain a healthy lifestyle through exercise
•Improve status and social standing, accede to explosive high income, high power network that can be professionally useful,
•Have fun through competition and exercise as well as mental challange
Goals
Lifestyle
• We are looking for young, successful, busy workers looking to build their careers and stay healthy, upwardly mobile and social, who value their time – this combination is best found in key financial hubs like London, Frankfurt, New York
SEGMENTS RATIONALE
•Busy lifestyle (60+ hour work week), no opportunity to go out of town for gold, polo, country clubs during the week
•Used to paying premium money for convenience and luxury (premium hotel visitors)
•Interested in bundling activities for maximum effect: e.g. sports with networking, care about proximity; live in premium accomodation
• We are focused on male 25-40 y.o. audience working in high intensity jobs like banking, consulting or tech, as this tends to be the key audience that has money and enjoys exclusive activities like golf, polo, wine clubs, etc and prizes time efficiency, which we can provide
• The sport carries royal legacy and is open to very few given complexity and lack of awareness; it offers unique bonding with very socially like-minded people (high pre-selection filter) and enables vigorous exercise that other similar-purpose sports don't
• JDP is a perfect blend of key attributes of chess/poker, golf club and tennis/athletics uniquely positioned to satisfy multiple goals that are normally tended to by different products
• Busy lifestyle professionals value exercise and networking opportunities, but do not have time to spend on a gold outing during the week or on an combination of gym and social bonding with clients, making it perfect for a EliPom JDP club experience
Rugby
Soccer
TARGET CUSTOMER & POSITIONING
Teens &
Students
Athletic
Exclusive
Children
Old, rich
businessmen
Young, low and middle-
income adults
25-40 y.o. successful,
upwardly mobile,
affluent business men
Wine
clubsSailing
Chess
Poker
Golf
Polo
Tennis
Jeu de
Paume
Jeu de
Paume
Compared to key alternative “elite”, “prestige” sports, JDP offers significantly more physical exertion making it healthier, but also more fun. By creating unique clubs with golf club/win club feel we match their prestige, which keeping athleticism.
Rugby
Sailing
Teens &
Students
Price
Accessibility
(time/distance)
Children
Old, rich
businessmen
By introducing elite Jeau de Paumeclubs across densely populated metropolitan areas in close proximity to work and residential locations of the target group, we plan to make the sport accessible to successful young businessmen, who would otherwise be out of the market.
Wine
clubs
Chess
Poker
Golf
Polo
Soccer
Tennis
Jeu de
Paume
Jeu de
Paume
Young, low and middle-
income adults
TARGET CUSTOMER & POSITIONING
25-40 y.o. successful,
upwardly mobile,
affluent business men
Rugby
Sailing
Teens &
Students
Athleticism
Mental/Strategic
Challenge
Children
Old, rich
businessmen
By emphasizing the challenge and complexity of JDP rules and corresponding game tactics we reinforce the filtering of JDP community by desire for strategic challenge and position it as a sophisticated community that features stimulation of chess-like game with athleticism of tennis or traditional sports
Wine
clubs
Chess
Poker
Golf
Polo
Soccer
Tennis
Jeu de
Paume
Jeu de
Paume
Young, low and middle-
income adults
TARGET CUSTOMER & POSITIONING25-40 successful,
upwardly mobile,
affluent business men
COMPETITION AND DIFFERENTIATION POINT
Social clubs
Exclusive sports
activities
Traditional sports
activities
• Consumer may achieve same socilazation, networking and status goals by joining eclusive, highly
priced wine clubs, wiskey clubs, gentlemen’s clubs, etc.
• Differentiation: our in-city JDP concept allows premium socialilzation and status combined
with athletics, which is key to target demographic
• Consumer may achieve same exclusivity and entertainment goals by going polo, gold, hore-
riding, saling, etc, but these games typically are highly time intensive and often offered out of
town and at high cost, making it impractical for target customer to participate in them
• Differentiation: our in-city JDP concept offers easier access by located JDP clubs near work-
places of target customers in busy commercial centers, recreating the golf-club environment and
wine club class in an athletic facility not far from work. Doing this with golf or polo or sailing is
simply impractical in metropolitan areas due to space constraints.
• Consumer may achieve same athletics and entertainment goals through traditional sports such as
tennis, soccer, basketball, squash, etc. However, none of these activities are signfularly
positioned as exclusive and cannot step up-market due to their long established image; they also
lack pre-screening that is inherent in JDP due to its complex rules and demands of the game
• Differentiation: our in-city JDP concept allows same athletics benefits as traditional sports but
also allows customers to access a highly pre-selected social network and a bespoke, upscale
environment.
EliPom Luxury Jeau De Paum clubs are there for the busy, successful,
competitive young professional, who values time, likes strategic and
physical challenges and seeks to socialize with like-minded superstars and
in a comfortable, luxurious environment on a busy late Wednesday night-
all at the same time night. With its royal heritage, club environment, bar,
comfortable recreation facilities and tactical and athletic complexity of
the game EliPom Jeu De Paum clubs are the nexus where smarts meet
prestige, networks, comfort and an amazing workout.
POSITIONING STATEMENT
MARKETING ACTIONS
All target
customersAware of
offeringUnderstand
benefits
Perceive as
attractive
Can
afford itHave
access to it
Awareness gap:
target market does
not know if the
product
Understanding gap:
target market does not
know how the product
solves their problems
Access gap: JDP not
available in center cities
and therefore not
accessible to target
market
Closing the Gaps Approach:
• Focus promotion on raising awareness with the target
customer by advertising at key places were they are:• physically: usiness centers, elite sports clubs, gold clubs,
wimbdledon and other premium sports entertainment
• and where their attention is: Men’s Health, GQ, exclusive blogs;
FT, The Economist, etc.
• Build exclusive JDP clubs in center city in London together
with club-like recreational space to provide convenient after-
work access for socializing and games
The Slogan.
The slogan has multiple layers of meaning:
‘Be original’ plays with the idea that to play JDP you are a part of
something traditional and authentic but also something special, something
different to everybody else. This plays off the idea that our target market is
elitist, views themselves apart from the average person and seeks prestige in
what they do.
‘Be smart’ refers to the intellectual challenge presented within JDP,
highlighting that this is more than your average sport, it requires both
athleticism and mental agility. This taps into the psyche of our target market
who view themselves as high-brow, intelligent and successful.
‘Keep it real’ is a play on words referring firstly to the fact that JDP is Real
tennis and secondly to the colloquial phrase meaning to be true to oneself and
to be strong. This again plays off the elitist mentality of our market.
The combination of these three phrases is like a sporting mantra, like those
used by Muhammad Ali, to inspire athletes. Our mantra is to inspire
individuals to play real tennis, to be a part of something special, to set
themselves apart and to embrace the challenge, both physical and mental.
Be original.
Be smart.
Keep it real.
The logo.The logo is simple and elegant using only the initials JdP in gold and a small crown above. The crown plays with the idea that this sport is regal, aristocratic and exclusive, referring to the game’s rich history as the royal sporting choice. The gold typeface further emphasises the game’s royal connections and noble status. And the logo’s simplicity is due to the exclusive nature of the JDP playing society, it is not intended to be advertised on every street corner but rather it is a logo for those who are in the know and understand the exclusive nature of JDP.
The brand association.Agility: Agility referring to both the mental and physical exertion required within JDP. This emphasises that JDP requires more than your average sports player, it requires strategy, intellect and physical fitness.
Prestige: Prestige refers to the exclusive nature of JDP and the high status one imbues when you become a part of the JDP society. To be a part of JDP you are special, unique and above the ordinary.
Triumph: JDP is a game for winners, for people who succeed in life. This connects with our use of successful actors, sportsman and politicians in our communication tactics, highlighting that this is a game only for the best.
Agility.
Prestige.
Triumph.
The message.
In our communication efforts we will focus on emphasising the prestigious and exclusive nature of JDP. Adverts, both physical and virtual, will play on the idea that this is a club for the elite, for those who succeed and wont settle for anything less than the best. We will highlight the physical and mental agility required, how this game pushes you to your limits. The advertising will de dotted with successful celebrities, politicians and sportsmen – like Bill Clinton, Tiger Woods and George Clooney. This pushes that to be a part of JDP is to a part of something special, to be the best that you can be.
A young city worker exits his office, its dusk, almost dark. He’s almost thirty, well dressed in a three-piece suit but with his tie slightly undone. His hair is slightly disheveled. It’s the end of a hard days work. He waves goodbye to some colleagues who are passing by and heads off down the streets of London alone. We see him walking down a dimly lit street in East London, the houses are old and grand but slightly aged. The air is slightly damp and the street lights are reflected off the pavement. He reaches some beautiful ornate wooden doors, there’s no sign just an inscription above the door handle. He pushes them open. Inside the room is elegant and old-fashioned, old leather bound books line the shelves, a large marble fireplace with an open fire crackles in the corner, ornate dark oak furniture and large green leather chesterfield sofas litter the floor. Two friends, George Clooney and Tiger Woods, beckon him from the bar where they’re laughing over whisky old-fashioneds. He declines. A beautiful hostess appears holding his Mulberry scotch-grain holdall and a leather racket case. Its not the size of a tennis racket but a real tennis racket. He slings it over his shoulder and follows her down the corridor. He disappears into a room. The camera fades out and in the last moment you see him appear, dressed in beautiful white sports gear, racket in hand walking out onto a magnificent real tennis court, smiling. And the slogan reads….”Don’t settle for less.”
Rationale behind the advert.The advert emphasises that this is a game for successful individuals who want to be a part of something special and original. The club isn’t vulgarly advertised, its discreet and exclusive and only those who understand its significance know where to find it. Once inside the club is personal and tailored to your needs but also authentic and old-fashioned reminding us of the game’s rich history. We see people like George Clooney and Tiger Woods drinking at the bar to highlight that this is a club for winners, for people who succeed and are the best at what they do.
The advert.
The storyboard.
The outdoor advert.
The outdoor advert aims to intrigue potential JDP players.
All they see is an anonymous man, well-dressed, athletic
and sharp. He’s carrying a holdall but you don’t know
why. And then they read the slogan and Jeu de Paume.
They see themselves in the man in the advert, they want
to be the smart, dapper man with the bag. It wets their
appetite and forces them to investigate and find out more
about JDP. Its clear in the advert that JDP is not selling
itself, its above that – if they want to be a part of it they
have to find it.
The advert appeals to young, successful city workers. The
advert would be placed in the Canary Wharf area, in and
around the banks and law firms as well as on the pages of
the FT, City AM and the Economist.
• Premium Pricing: a unique
sport that replaces a bundle of
expensive activities for
customer ; competing with
high luxury exclusive, capital
intensive offerings (golf, sailing,
polo)
• Price needs to high to cover
high fixed costs associated with
higher number of service staff
and high cost of real estate in
urban areas in the UK
• Combination of membership
revenues (to drive higher
retention and loyalty and club-
feel) and spot hire of courts
(for better utilisation)
Pricing Considerations
• We will compete against
sporting clubs like tennis,
sailing & golf
• Normal pricing model of the
competition is normally a fixed
fee (approx GBP 300 p.a) +
usage fee (approx. 30 GBP /
match) . Total combined annual
cost = GBP 1860 for heavy
users + cost of time lost (days)
and travel to and fro location
• Our value proposition will be
a) urban locations (closer to
busy customers) b) Unique
sporting facility with high end
ambience c) will displace the
need for bundling competitors
offerings
Pricing vs competition
• Monthly membership fees –
GBP 150 - includes
unlimited use of the court
as well as free food and
drinks, plus usage of
networking events. Annual
cost on this scheme = 1800
GBP
• Spot rates – GBP 60 per
hour, includes use of the
court only. Assuming 1
game per hour per week,
annual cost = 60 x 52 =
GBP 3, 120
Pricing Scheme
*Annual cost (assuming average of 1 game a week) = (30 x 52) + 300 = GBP 1860
PRICING
Typical Club Parameters Typical Club Member
Number of Courts 2Avg. Players Per Game 4 Average number of hours played 0.27
Size of Court 408Opening Hours 16 Revenue from value-added services (food, products, etc) £100.00
Size of Courts & Penthouses 816Avg. Court Utilization 75% Cost from value-added services (food, products, etc) £ 20.00
Size of non-Court areas 163Avg. Number of Members 2699
Total Size of Club 979Number of Employees 6 Pricing
Rent Per m^2 £60.00Avg. Salary Per Employee £25,000.00 Membership Cost £ 150.00
Hourly Rental Price of Court £ 60.00
Fixed Costs Variable Costs
Total Rent £58,752.00Salaries £150,000.00 Expected Revenue, Cost and Profit
Insurance £1,175.04Maintenance £96,000.00 Membership Revenue £ 404,850.00
Total Fixed Costs £59,927.04Total Variable Costs £246,000.00 Court Usage Revenue £ 1,440.00
Value-added Services Revenue £ 269,900.00
Minus Costs
TOTAL Club Costs £305,927.04 Club Costs -£ 305,927.04
Value-added Sevices Costs -£ 53,980.00
Cost Per Member £113.35 TOTAL PROFITS £ 316,282.96
ELIPOM JDP CLUB MONTHLY ECONOMICS:
Average Revenue per Customer per Month: 250.5 GBP
Average Cost per Customer per Month with value added services: 133
Average Margin per Customer: 117 GBP
LAUNCH STRATEGY: AWARENESS AND DISTRIBUTION
Build a pilot JDP
court
Launch advertising
and awareness campaign
Create momentum for the new
club
Offer try-out incentives to
target customer
group
Roll out clubs across
London
Build a pilot JDP
court and exclusive
sports and
recreation club in
the Canary Wharf
vicinity close to
target market
customers
Launch advertising
campaign in financial
papers such as the
FT, City AM and the
Economist. Target
men’s journals such
as GQ and Men’s
Health
Create viral video featuring
numerous successful
celebrities to post on
youtube, create momentum
for the new club. Advertise
in exclusive London clubs
such as Soho House,
Groucho and Canary wharf
bars.
Bundle entrance tickets to
new club alongside
exclusive sporting events
such as Wimbledon and
Queens. Offer recreational
space for corporate events.
Sell club memberships at
events.
Once
engagement has
started, build
new clubs in
profitable areas
across the city