Strategy

I. Executive Summary Splash Recreation Centre was established in 1999 at Daaban new site in Kumasi. It currently has 12 staff strength, made up of 2 life guards, 3 kitchen staff and 6 bar attendants and waiters and a manager. This suggests that they operate a bar and restaurant in addition to the swimming pool, but the swimming pool is their main business. The company has an aggressive five-year plan that includes 28 people been employed by the year 2010. In other to achieve these goals, they will need a great deal of capital. They would therefore acquire a loan from their bankers. As such Splash Recreation Centre plans to invest in advertising, staff development, infrastructure development and other world class services such as massaging, acupuncture and a gym centre. The manager holds an MBA degree in Hospitality and Hotel Management and has 5 years working experience in the industry. The other staff members are all well trained and experienced in their various duties. The objective of the swimming pool business is to become the leading hospitality centre in swimming pool business and other related services in the Kumasi Metropolis and beyond 1. Provide safe, clean swimming facilities 2. Provide clean, attractive conditions in the bathhouse, pool and surrounding areas. 3. Protect against disease transmission 4. Prevent drowning, near drowning and accidents 5. Lower operation cost, increase attendance and profitability 6. Promote fitness, exercise and healthy lifestyle. II. Table of Contents Current Market Situation 3-4 Environmental Analysis 4-9 Customer Analysis 10 SWOT 10 Objectives to be achieved 12-14 Marketing Strategy 15-18 Marketing Plan Control 19 III. Current Market Situation. Currently the swimming pool service is based on basic services such as shower, swimming and towel provision services for an average fee of GH5.00. This fails to give patronisers the needed experience such as training, sun provisions and relaxation services for distressing. The ambiance fails to give executives the kind of exotic service they would have preferred. As such, students and middle income earners result to swimming and its related activities as a recreational activity and the way of winding down for another product working week. Elsewhere in Bahamas, United Kingdom, Sun city in South Africa, high class executives result to day time or night time swimming after board meetings or to strike market deals. The skill to swimming is normally developed during high academic pursuit in schools like Harvard, MIT, and other top class schools. Also rich businessmen had their children undergo swimming lessons to keep them from the streets and make them aware of the social class and status they belong to. Predominantly, low and medium class earners between the ages of 15 to 35 years are actively involved in swimming. This would bring the population to about 40% of the Ghanaian population. Recently in Ghana, health awareness has been an issue under discussion, people are being sensitized to exercise at least 30 minutes three times a week to stay healthy or recommended dose of one to two hours of swimming a week as its equivalent. Swimming works on the entire nervous system and its more erroneous than other cardiovascular exercises which help in good blood circulation. There is still a high potential market for the swimming pool business in Ghana. More and more parents and guardians would love to see their wards stay fit and healthy and swimming is one safe way of ensuring that. It’s also provides a hassle free environment for them to supervise even the young ones. When quality training and safety requirement are put in place, swimming can be safe. Developing this mindset would grow the entire population interested in swimming as an alternative for exercise to 65% and high class facilities be patronise to increase revenue. IV. Environmental Analysis. There is a very stiff competition available in the swimming service where consumers choose at will where to swim. Programs during holidays find some swimming pool areas over packed and others left empty hence activity driven whereas the main pool activity is left to the background. Hence FM stations and music artistes pull crowds to engage pools. There are about 33 active swimming pools businesses in the Kumasi metropolis; some tides to hotels hence an additional service. The Goal of Splash Recreational Centre is to establish itself as a differentiated market committed to offer its clients a one stop Spadanae par aqua, where health would be the goal we would be aiming at. Currently, Splash Recreational Centre can boast of a well patronise centre though not economically active, it has an average walk-in of twenty people during weekdays and fifty during weekends. Occasionally, and during holidays, the number can rise to hundred and one hundred and fifty. Services currently offered are: • Swimming • Bar Services • Provision of finger foods • Rice based foods from the restaurant. Customers perceive our current services as top of the range over and above the average standards. Though coincidentally, our research team were able to gather from them their quest to have other added services such as massaging, acupuncture and gym services. Our current staff strength is capable of handling customers even on holiday where we record high patronage but there would be a need for further recruitment and expansion of facilities going forward to meet or organisations new vision. Splash Recreational Centre has a presence in the community that consistently attracts a core participant group. Our strengths lies in our ability to provide a creative fitness experience for participants. Also attracts participants who do not traditionally participate in other sports activities gives participants an opportunity to enjoy different services at affordable fees. Some weaknesses currently faced by Splash Recreational Centre are that many families in the community cannot afford most of the services offered even though prices are set as low as possible. We currently provide services such as swimming, bar and restaurant, massaging, gymnasium, changing room and bathing facilities. There is a very stiff competition available in the swimming service where consumers choose at will where to swim. Programs during holidays find some swimming pool areas over packed and others left empty hence activity driven whereas the main pool activity is left to the background. Hence FM stations and music artistes pull crowds to engage pools. There are about 33 active swimming pools businesses in the Kumasi metropolis; some tides to hotels hence an additional service. The Goal of Splash Recreational Centre is to establish itself as a differentiated market committed to offer its clients a one stop Spadanae par aqua, where health would be the goal we would be aiming at. Currently, Splash Recreational Centre can boast of a well patronise centre though not economically active, it has an average walk-in of twenty people during weekdays and fifty during weekends. Occasionally, and during holidays, the number can rise to hundred and one hundred and fifty. Services currently offered are: • Swimming • Bar Services • Provision of finger foods • Rice based foods from the restaurant. Customers perceive our current services as top of the range over and above the average standards. Though coincidentally, our research team were able to gather from them their quest to have other added services such as massaging, acupuncture and gym services. Our current staff strength is capable of handling customers even on holiday where we record high patronage but there would be a need for further recruitment and expansion of facilities going forward to meet or organisations new vision. Splash Recreational Centre has a presence in the community that consistently attracts a core participant group. Our strengths lies in our ability to provide a creative fitness experience for participants. Also attracts participants who do not traditionally participate in other sports activities gives participants an opportunity to enjoy different services at affordable fees. Some weaknesses currently faced by Splash Recreational Centre are that many families in the community cannot afford most of the services offered even though prices are set as low as possible. We currently provide services such as swimming, bar and restaurant, massaging, gymnasium, changing room and bathing facilities. Analysis of the Macro Environment Demographic characteristics The population of the Kumasi metropolis accounts for nearly one-third of the region’s population. The high level of urbanisation in the region is due mainly to the high concentration of the population in the Kumasi metropolis. Males outnumber females in Kumasi. The age structure of the population in Kumasi is skewed towards the youth. The dependent population in the districts is high, ranging from 42.2 per cent in the Kumasi metropolis to 57.3 per cent in the Ahafo Ano South District. Total Fertility Rates (TFRs) are high in most of the districts, Cultural and social structure The region has 36 Traditional Councils, each headed by a Paramount Chief. The Traditional Councils are the decentralised units of administration by traditional rulers and are used to mobilize the people at the local and community levels for development. The spiritual head of the region is the Asante King, the Otumfuo Asantehene. All the Paramount Chiefs in the region are members of the Ashanti Regional House of Chiefs, with the Asantehene as the President of the house. The main language spoken in the region is Twi. Several festivals are celebrated in the region, the major ones being the Akwasidae and AdaeKese. These are religious festivals celebrated by some members of the Akan ethnic group of which the Ashantis belong. The festivals are celebrated to remember past leaders and heroes. Though they are dead, their spirits are supposed to be alive and taking interest in the affairs of the living, watching their doings and consulting with them at Adae. Literacy of population It reveals that 35.0 per cent of the population, 15 years and older in the region are not literate. A little under half (48.1%) are literate in both English and a Ghanaian language. Only 3.2 per cent are literate in a Ghanaian language only, while less than 1.0 per cent are able to read and write in other languages. There are differences between the sexes in terms of literacy. More than half (55.8%) of the males are literate in English and a Ghanaian language compared with two fifth (40.4%) of the females. On the whole, the illiteracy level for the region (35.0%) is lower than that of the national average (42.1%).   Religion The dominant religion in the region is Christianity (77.5%) followed by Islam (13.2%). The proportion of Christians is higher than the national average (68.8%), while that of Moslems is lower than the national average (15.9%). All other religious groups constitute insignificant proportions of the population. The proportion with no religion is however relatively high. Economic Characteristics The proportion of the economically active population varies from 71.4 in the Kumasi. The major occupation in all the districts is Agriculture/Animal Husbandry/Forestry, except in the Kumasi metropolis, where Sales workers predominate. The proportion of females in Sales is higher than that of males in all the districts. The economically active population in the region is engaged mainly in Agriculture (excluding Fishing), with 44.5 per cent of them employed in the branch of activity. This represents a decline from the 1984 level of 61.9 percent. The next highest proportion of the economically active population is employed in Wholesale and Retail Trade (18.4%), followed by Manufacturing (12.2%) and Community, Social and Personal Services etc., (9.9%). These four major economic activities employ a total of 85.0 per cent of the economically active population, which is lower than that of 1984 (94.4%). The proportion of the economically active population engaged in other economic activities is less than 5.0 per cent in each case. Water and Transport, Storage and Communications, Electricity, Gas and all the other activities increased their proportions of the economically active population employed in 2000 compared with 1984, except Agriculture, Hunting and Forestry. Majority of the economically active population are self-employed, mainly in the private informal sector, which provides job opportunities, particularly for females with little or no formal education. The other proportion is mainly the elite or semi elite grouping that are into white colour jobs and petty trading and resort to such entertainment and distressing sections like swimming, clubbing and weekend hung out. Political/regulatory factors Ghana’s political administration is democratic in nature. Authority of the land is conferred onto one democratically elected Government. The power is shared downwards to regional administrations and further broken down into districts and assemblies for proper implementation of agenda. There are 18 administrative districts in the Ashanti Region including the Kumasi metropolis The region also has 33 constituencies and 840 electoral areas, the highest in the country. A Member of Parliament represents each of the 33 constituencies at the nation’s 200- member legislature. The Regional Minister is the political Head of the region, and the Chairman of the Regional Co-ordinating Director (Secretary), all the 18 District Chief Executives and Presiding members, as well as two representatives from the Ashanti Regional House of Chiefs. All Regional heads of department are ex-officio members of the Regional Co-ordinating Council. The District/Metropolitan Assemblies are headed by Metropolitan/District Chief Executives. The District and Metropolitan Chief Executives are nominated by the President of the Republic and approved by two-thirds majority of the respective Metropolitan/District Assemblies. The Chief Executives, like the Regional Minister, are assisted by District Co-ordinating Directors. For effective administration, the Kumasi Metropolitan Assembly (KMA) has been sub-divided into four sub-metros, namely Asokwa, Subin, Bantama and Manhyia. The regulatory factor in the region is none different than other regions in Ghana. Entities wanting to do business in the region need to register their business organisation as indicated by the laws of Ghana and pay require taxes by law. Technological factors Currently, the Americanisation of the world and the introduction of technological features and devices has conform the world into a global village, and Ghana by extension Kumasi has not been left out. Technology is far advance with telecommunication industry growing as fast as that of the international scene. The citizenry now has access to mobile phones and notebooks with internet connectivity. The influx of Chinese technological goods has made it economically convenient for people to own these equipments hence promote a healthy technological environment. V. Customer Analysis. • General Statement (customers served in their needs) • Customer trends likely to affect what (and how) customers buy and implications for our • Segmentation Analysis • Customer Profile • Customer needs • Key decision-making criteria used by customers • Key personnel involved with decision to buy/not buy product VI. SWOT Analysis Strengths • Splash Recreational Centre is the only pool that is used for competition because it has bleachers and an observation balcony. •Splash Recreational Centre is the only pool with a state of the art diving board. • The office is close to the center’s front desk and pool, which facilitates good working relationships and coordinated customer service. • Floor-to-ceiling windows comprise two of the pool walls, providing abundant natural light. Weaknesses • While the Splash Recreational Centre pool deck is the ideal configuration for conducting lifeguard and swim instructor training, classroom and training space is insufficient to accommodate enough training sessions to certify an adequate number of staff. • The observation balcony has inadequate ventilation. • The bleachers’ automatic pull-out feature is broken, which makes them very hard to manually pull out for competitions. • The bag check system consumes staff time, requires secure storage space, and creates a liability for Splash Recreational Centre. However, this service cannot be discontinued until lockers are repaired or replaced. • Accessibility is inconvenient for patrons who need to be lifted from a wheelchair to a chairlift. The newer Splash Recreational Centre indoor pools have ramps which are much easier to use. Opportunities • Many area groups want to access the pool to round out their programs or training needs; for example: Self-Enhancement, Inc.; Boys & Girls Club; military groups and Cross fit. • There is increasing demand for rental usage of the pool for private parties and competitive swim teams’ practices and meets. • There is increased interest in diving. • There is demand to transition popular dry fitness classes to the pool: boxing, yoga, African Dance, Pilates, gentle fitness, etc. • Rapidly increasing demand for rental usage of Splash Recreational Centre. Threats • New swimming and fitness facilities may be built within 2 miles of Splash Recreational Centre over the next several years and these newer sites have better leisure amenities. The data earlier discussed shows a vibrant sector with stiff competition for the opportunities available. Again it brings one to a level of acceptance that there is more to be done to please and entice more patronage in to the sector. For us in Splash Recreational centre competing for a larger share is our only means of survival as such we have taken keen interest in studying the market and customer behaviour to help us introduce innovative programs associated with swimming pools. We have also had staff pose in as mystery shopper to pick up on best practices of some competitors hence our deep knowledge of the market. We have being indifferent about the stiff competition for a while and now need to sit up and recapture the market others have taken over. It is therefore a mission we cannot fail hence assembling all our marketing techniques to develop an effective plan to combat the current state of affairs. From the above we need to plan to win the numbers by generating exciting programs that will pull the crowd. We need to be sure that the value preposition is acceptable and that customers will appreciate the returns. Also we need to make sure that in our quest to introduce innovative services we do not scare our customers with too much of alien services that may also be frown upon by traditional leaders and beliefs owing to the fact that Kumasi is a very traditional place. We also need to emphasize the benefits that will be derived from swimming and the other services to be provided. This includes health related benefits that will increase the excitement and help us roll in more numbers. VII. Objectives to be achieved by marketing plan Financial Objectives With a strategic plan to seek new sources of revenue our financial position should continue to improve and these new revenue sources will have a positive economic impact on our organization by the end of the 5-year term. Marketing Objectives Build the Base – Splash Recreation Centre seeks to expand its membership and reach in order to engage as many people as possible in the sport of swimming. In addition to expand the membership we need to also ensure retention of our existing membership. Promote the Sport – Splash Recreation Centre seeks to promote all aspects of the sport in order to generate as much positive public recognition as possible that in turn will lead to increased participation in everything from water safety and learn-to-swim programs to competitive swimming for lifetime fitness. In addition, Splash Recreation Centre seeks to further extol the virtues of swimming and celebrate the accomplishments of our athletes on a local and regional level. Achieve Sustained Competitive Success – Splash Recreation Centre seeks to continue the rich tradition of performance success at the highest levels of international competition, especially at the Olympic Games. Splash Recreation Centre also seeks to achieve success at the highest levels of competition but also must provide programs and incentives for the athletes who compete locally so that they may achieve and reach their individual successes and goals. Facility Development – Splash Recreation Centre seeks to continue to educate, pursue and solicit groups, clubs, municipal organizations and others, the expressed objective of future facility construction. Customer Service Objectives • Splash Recreational Centre seeks to be service-oriented with our members, business partners and each other. • We will act with integrity, honesty and openness towards our customers • We will be open to queries, suggestions and questions from our customers and maintain a willingness to change to ensure customer excellence. • We will make decisions and work with the overriding priority of doing what is best in the interests of our customers as a whole. • Splash Recreational facilities are fully functional, well-maintained, and clean inside and out. • Facilities are also welcoming, customer-oriented places that provide users with products and services they desire in an efficient and consistent manner. • Products and services fit the interests, needs, and requirements of the local community. • Staff is professional and welcoming. Marketing Communications Objectives • Splash Recreational Centre’s continue pursuit and enhancing of relationships with media contacts as well as with individual club’s for media worthy content. Consideration for free-lance media relations person to work on project basis. • Work towards being able to communicate to entirety of membership electronically to enhance efficient and timely communication. • Continue to provide and seek methods for improving content and timeliness of web site as a principle means of communicating to our membership. • Creation of “membership specific” surveys to gather information and ideas from our membership (i.e. survey geared towards our membership as a whole, another geared towards coaches only, another geared towards officials and another geared towards club administrators, Board members, etc). • Take advantage of the size of our pool to block FMs and Music occasions during weekends and holidays. • Mail quarterly activity guide to all households that have registered for any activity in the past year • Mail postcards to zone-wide carrier routes • Distribute specific flyers to local schools and public library • Mail age-specific and activity specific flyers/cards to past registrants, et.al. • Post flyers on Community Center Bulletin Boards and display racks • Prominently display marketing material during all community social events Pricing Objectives • Splash Recreational Centre will consider issuing promotional prices to families, students and minors, families would be treated to a bouquet and services including training, massaging, and access to gym for a yearly subscription of GHS200.00 for a family size of five. • There would also be 10% discount prices for individual membership who would want to solely register in at least two services for the year. • There would also be 20% discount prices for group of students’ membership who would want to solely register in at least two services for the year. • Membership cards automatically admit bearers into all functions at the grounds whether paid or unpaid and members are accorded VIP services for no extra charge. • Institutions would also be given the option to subscribe yearly for their staff at a 20% discount. • The floor space could also be to event organizers for programs such as pool parties, wedding receptions etc. at a non-negotiable price of GHC 500. VIII. Marketing Strategies. Splash Recreation facility will hosts programs and activities for all ages including educational preschool; sports; birthday parties, special events, and other community uses of the centre; swimming lessons, training, competitions, and open play swim; and a myriad of fitness activities including Group Exercise classes, weight lifting, and cardio and personal training. One of the most obvious of using a swimming is the simple act of relaxation, there is nothing more fun to many people than an early morning swim or after they get out of a hard day at the office. The benefits of hydrotherapy in a swimming pool are wide spread. People with various other medical conditions can and do benefit from the effect of a swimming pool all the time. People suffering from arthritis, obesity, fiscal disabilities and even learning disabilities would all benefit greatly from our services These benefits would be enjoyed if swimming is made a regular part of their personal routine. Immediate health benefits would be seen while providing fun at the same time. Regular swimming builds endurance, muscle strength and cardiovascular fitness. It can serve as cross-training element to your regular workout. Spending time in a group workout whether water aerobics or a masters swim practice is a great social outlet. Exchanging stories, challenging each other, and sharing in the hard work makes swimming with others a rewarding experience. Splash Recreational Centre aims to be the market leader in the hospitality industry offering swimming and other exercises. Service Strategy The most important service on offer is the provision of a safe, comfortable facility which has easy access to the local sights. This is coupled with local knowledge, a friendly approach, and a relaxing environment that delivers a stress free stay. It is hoped that the change of emphasis will provide strong word of mouth references to the care and attention of the guest’s requirements but not to lose the spectacular nature of the swimming pool and location. Expected Product Life cycle The purpose of a life cycle analysis is to understand where each program is in terms of its life cycle to inform decisions about when to “change things up” to revitalize mature programs, cancel or reinvigorate declining programs, and give introductory programs the boost they need to succeed. The basic phases for programs are: Introductory - This phase is usually characterized by great uncertainty as it involves new programs, which often have low attendance and may need cost subsidization. The introduction of new products like fitness, water sports and games, water therapy etc Growth - This phase is usually characterized by steadily increasing demand. Patronage of our current and new programs, we are certain this will be appreciating steadily with revenue at apparel. Maturity - This phase reveals steady or slowing demand. Our plan is to mature gradually and tactically steadily in to a market leader and then take time to consolidate our position. Decline – we do not expect this phase soon as it shows consistent decline as participants move on to new programs and centre Offerings. We may have people changing from one fitness work to another but we hope to find the right balance at all times Product Modification / New Service We will introduce new segments of activities to the Centre though they may all be centred on aqua, aerobics sections and gym facilities. We intend to make vibrant the benefits of swimming and exercise in general. Occasionally we will doctors come around to run test on blood pressure and other related heart and cardio diseases. Development of New Market Certainly the addition of the massage, aerobics, and gym services will be add on services as against the ordinary management of swimming pool. This we are sure will Development of new markets and revenue and help us utilise our floor and facilities well though some are capital intensive. Market Communication Strategy We intend to communicate our new image through radio mention and jingles. We will also focus on distributing flyers to campuses and offices whiles pasting posters at strategic points. Finally we will team up to organise a keep fit club swimming competition before which a float will be organized to draw attention to the new face of splash recreational centre. Other Strategies Skilled hands will be engaged to supervise the various aspects of Splash Recreational Centre including gym, massage, and aerobics section IX. Tactical Plans. What will be done' • Growth of the company: this will be undertaken through new service development, service length; service line filling; service mix • Development of new markets will be realized by aggressive seasoned sales representatives and customer service representatives. • Pricing of service will be by penetration price strategy via bench service prices of competitors on consumer perception and values to set prices of our services • Marketing communication will be realized via integrated marketing communication method, and in-house promotions such as Honouring pool users on their special occasions. Who will do it' • The tactical plan would be implemented through the joint collaboration of the research & development manager, marketing manager, production manager, customer service manager, and finance manager. When will it be done' • The tactical plan of Splash recreational Centre will be on-going. X. Budgets and Projected Profit/Loss Statement. Estimated Operating Budget Operating expenses Year 1 Year 2 Year 3 Personnel / Benefits (443,702) (572,013) (690,877) Utilities/Chemicals (8,000) (9,040) (10,400) Other Supplies / Non-Personnel items (5000) (5,295) (5,885) Adverts (50,000) (60,000) (70,000) Estimated Operating Cost (506,702) (646,348) (777,162) | | | Estimated Revenues Membership Fees 340,000 471,120 595,180 Program Fees 200,000 215,840 247,760 Daily admission 180,000 194,600 214,400 Competitive Program/ Rentals 124,000 137,760 146,140 Rental 35,000 36,400 37,100 Miscellaneous 7,000 7,280 7,420 Estimated Revenue 886.000 1,063,000 1,247,500 | | | | Excess of income over expenditure 379,298 416,652 470,338 XI. Marketing Plan Control. [pic] Splash Recreational centres’ (SRC) promotion will include the following as broken down in the table above. SRC spacific target market approach for advertising is seen as the direction for CFC. The target market for using the swimming facility is able to be reached with careful use of both online sites and information being posted in key news media as well as radio and television such as Luv Fm, Nhyira, Fox, Multi Tv, Crystal and Tv3 The emphasis is on having a break in a relaxing but beautiful location and is the key, so this does not have to be shouted at the consumer using intense mass media but will be easily available when required. In public relation SRC is to be seen as being a positive contributor to the local community without expecting anything in return. It is to actively participate in local functions and support the regional initiatives around the promotion of tourism in the region. With the swimming profile being increased, SRC will seek out a position on the key organisational committees in the State and will look to use the facilities for community based functions. A series of brochures will be developed for the care and propagating of good educational reforms. This can include access to philanthropy works to boost the image of SRC. The internet is seen as a critical tool to reach customers. During the opening phase of the program special deals will be on offer. These will be repeated if consumers accept these offers. The website is to be fully functional and will enable clients to request bookings and be able to make these in real time. On receiving the bookings the customer will receive a personal confirmation along with information of things to do in the region. All tourism websites will be advised of the change to ownership and the offers being made to customers. SRC pride themselves on high levels of control and evaluation methods. These have been depicted by the company in extensive marketing quality control, risk analysis and evaluation. It is an ongoing process for SRC to ensure Total Quality Management (TQM) is met within the company marketing plan. SRC works in accordance with government regulations in order to meet sports standards governing the nation and the sports council. Through audits, team leaders and management staff will document progress in order to continually improve quality of all production. SRC employs a 24hr security system to secure the recreational centre. SRC also have insurance on equipment to cover any hazards to may occur in a particular event. Furthermore, if malfunctions occur within the machinery, it will automatically close down itself to ensure the safety of customers. In terms of deliveries, SRC will keep a record of receipts in order to ensure that payments are performed correctly. SRC evaluations will be based primarily on meeting sales and market share expectations. We will be conducting sales analysis every 6 months and adjusting the promotion budget accordingly. Furthermore, key performance indicators (KPI) will be undertaken by customers in order to maintain a high standard of achievement within the organisation. In relation to the company’s promotional schedule, it will be reviewed every 3 months in order for the company to meet deadlines in marketing.