Tom Owen is working towards increasing his business and profit by the means of changing his current services and products or offering new ones to meet his customers’ needs, or by keeping his current products and services the same, but offering them to new markets.
•Tom Owen himself is an asset in his knowledge of soccer and his ability to get along with the kids he’s teaching. •Hiring instructors with similar qualities to create a good workforce. •MANU’s market penetration of the Fort Collins area ensures that all soccer players age 11 to 14 are aware of his soccer program.
•MANU’s dependence on Tom Owen in all of its functions offers little opportunity for him to expand to other locations.
•The close proximity to three large cities that offer limited soccer training camps.
•Some parents may consider soccer as a luxury that can be eliminated in face of economic downturn and growing unemployment.
•The emergence of new soccer training programs in direct competition with MANU.
Approximately 90 percent of MANU’s customers live in Fort Collins which has a population of 110,000. Greeley and Longmont are about 25 miles away by interstate highway and have a population of approximately 80,000 each. Loveland is a city that is also about 25 miles from Fort Collins and has a population of approximately 60,000.
There is almost no direct competition for MANU in Fort Collins. The surrounding cities of Loveland, Greeley, and Longmont offer even less developed soccer programs.
The target customer for the MANU’s services would be competitive soccer players from the ages of 11 to 14. However, the ultimate purchaser of these services would be the mother or father of the soccer player. This would necessitate the need of a market strategy that caters to both the parent and the soccer player.
•Develop programs that are aimed at kids over the age of 14 since the majority of the kids move on to other sports upon reaching that age. oPro – These kids are already familiar with Tom and are the most likely to sign up for programs in this age group. oCon – Most kids in this age group do not find soccer as appealing as other sports and are unlikely to pursue soccer. •Develop a marketing strategy to encourage more product purchases from his existing customer base. oPro – Availability of good and recommended equipment would make soccer more appealing. oCon – Extra costs can be a deterrent when the economy is bad. •Develop new programs to cater to the 6 to 9 age group market of Fort Collins that is still low. oPro – Having more children from this age group would ensure a larger, future enlistment from the 11 to 14 age group which has shown to already be considerably large. oCon – Children from the 6 to 9 age group are very different from the 11 to 14 age group and have to be treated and taught differently.
Tom and his instructors have proven to be more effective with the latter age group and would have to work up a way to be appealing with the younger age group. •Develop programs to attract the kids of Loveland, Longmont, and Greeley. oPro – These three cities have a combined population that is twice that of Fort Collins. Which in turn, offers the potential of Tom being able to triple his current enrollment. Also, these cities have little to no soccer programs in place that would be of major competition to Tom. oCon – The 25 mile distance would be a large deterrent for many parents to desire driving to. Tom cannot be at all of these places at once to supervise the programs.
The best solution for Tom would be the fourth option of expanding into the nearby cities of Loveland, Longmont, and Greeley. Considering his current good market penetration of Fort Collins, it would be unwise to spend his resources on trying to acquire more customers from this existing market rather than entering new markets. This course of action would also not require Tom to change or recreate his products, but to continue using what he is already familiar with.
Potential Marketing Strategies
Tom could offer his current instructors the chance to head up the MANU soccer programs in each of the new markets. Tom had already hired them based on their qualifications and personalities being similar to his own. This course of action would not require Tom to be in four places at once, but the close proximity would allow for him to stay involved. Tom could reach out to any of the existing soccer programs in these towns and offer them the opportunity to sign on with him if he found their instructors to have a compatible program to his own. This would allow an easier entrance into these new markets as the current soccer programs already have a customer base to work with and build on. This would also decrease any potential competition he may have had to contend with upon entering these new markets.