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Executive Summary
The Mission of Swiss Ski Arena is to provide the best skiing experience that its customers can desire. The company aims to provide the highest level of service and facility to the industry. The Swiss Ski Arena will plan to have excellent snowy conditions along with perfect terrain and supportive customer service. Furthermore, the competence of the company will be based on the best management service it can provide.
The company believes that good management is the way to leap forward any business and it is also very important for the skiing business. More and more consumers nowadays seek physical challenges and the industry of skiing is on the rise due to this reason. The Swiss Ski resort will aim to offer an ultimate and lifetime experience to its customers. The development of the business will be entirely based on the company’s customer care and marketing strategies.
The company plans to achieve a gross revenue of 100,000 in its first financial year. Since marketing provides a base for any business to develop, Swiss Ski Arena plans to use 15% of this revenue on marketing strategies. It also plans to give a personalised experience to its customers through snowcat skiing and a personalised decorated cabin that represents local culture. In the company’s second year of operation, it also plans to increase the range of its terrain.
Introduction
Swiss ski Arena will compete in the recreational industry. In the last few decades, consumers spending, involvement, and diversification of the industry are on the rise. The primary motivation for many consumers associated with the recreational industry is being with nature and there isn’t any other adventure like skiing that can get a person closer to nature (Ballotta and Pouliasis, 2020). Recent development has also seen major investment in cat skiing, helicopter skiing apart from the general increase in traditional skiing (Wang, 2017).
Swiss ski Arena’s business plan is to provide the customers with the best possible skiing adventure with the best customer care. The Skiing arena will include skiing tracks, high-quality snow lifts, national-level instructors, an international level accompanying resort, and a playing area (Lindroos, 2017). Further, more different musical and playing competitions will be organised to entertain the customers and also provide a healthy competition to keep up the motivation. The company’s plan is to properly analyse its strengths and weaknesses and define their marketing strategies based on those strengths (Wang, 2017). The marketing strategies may include advertisements, direct marketing, and sales promotions, etc.
IMC Situational Analysis
SWOT Analysis
Conducting a SWOT analysis is one of the fundamental steps in formulating the overall marketing strategy (Hollensen, 2019). The SWOT Analysis of Swiss Ski Arena is:
Figure 2: SWOT Analysis
STRENGTHS | WEAKNESSES |
• No restriction of any age group • Diverse market due to a part of both recreational and sports industry • Increase popularity in the younger generation • Can be used for training programs • Internationally recognised sport so can be used as a luring spot for foreign tourists. • Since the Arena will be open all year so revenue generation opportunities throughout the calendar • Sledging facility for toddlers and children. • High first-time customers’ ratio due to free lessons | • Customer’s expectations regarding lessons and training programs • For some customers, it might be a one-time activity so it is difficult to make permanent customers • Maintaining consistency in the quality of snow regularly • Limited use of modern technology • One or two staff members can ruin the whole brand image as they are the front face of the Skiing arena • No brand recognition except outside skiing enthusiast community
|
OPPORTUNITIES | THREATS |
• Growing interest for people who cannot visit snowy places and mountains • Skiing resorts can be advertised as a good place for socialising • Different competitions can be arranged to attract customers • Screening events for different sports can also be held • Association with an established sports team can increase the revenue • Establishing a skiing academy can give rise to the next skiing superstar which can turn out to be an ultimate brand ambassador. • The arena can retain its customers through timely deliveries.
| • Lack of individualised attention for both country ski and sports ski • New competitors in the market • Not coping up with the technology • Strict safety rules and international codes • High Dropout rate of training students • High training prices can cause low interest from middle-class families
|
Porter’s five forces
Michael Porter emphasised that there are other factors apart from the actions of the rivals that can create a competitive environment (Batra, 2016). The five factors he established are known as porter’s five forces which are;
Competitive Rivalry
This looks into the details of who they are and what is their quality of the service as compared to what the company offers (Batra, 2016). The main competitors for the Swiss Ski arena in the Sol hull region are Midland Ski club, Ackers Adventures, and Telford snowboard and ski centre. Due to the Swiss ski arena being new in the business will have to face intense rivalry from existing arenas. The loyal customers of other ski arenas will also hinder the growth of the Swiss ski arena as the Swiss ski arena will only be able to attract new customers for the initial time.
Suppliers’ Power
This factor determines the ease level of the supplier’s manipulation over prices. The main suppliers that a skiing arena is associated with are snow, skating and skiing material, and all the items in the accompanying resort. Due to the Swiss ski arena making a small portion of the overall sale of the supplier and having no other alternate suppliers will have to face the high supplier bargaining power.
Buyers’ Power
It determines the number of customers, how much revenue it generates from them, what are the relevant cost efficiency to them and how easy is for them to switch from the company (Batra, 2016). In the early days of the business the number of customers will be less so they will hold a more powerful position and the Swiss ski arena might have to alter their prices according to their buyer demands. However, once a business starts establishing depending on their number its buyers' power starts decreasing but for now the Swiss ski arena would have to provide a high margin in prices to attract the customers from the other businesses as the high switch margin will be effective in lowering buyers’ power.
Threat of Substitution
This refers to the chances or likelihood of the replacement. This factor determines how easily a buyer or customer can replace the company (Batra, 2016). If the customers are using the skiing arena as a sporting place, they might replace it with the rivals but they cannot replace it entirely. However, if the customers are using the skiing arena as a means of entertainment, they may find a better and cheaper entertainment source and replace the company with it.
Threats of New Entry
The threat of new entry determines how easily a new competitor can enter that specific market or the ease of doing business in that specific market (Batra, 2016). Since a ski Arena requires a huge investment and Large-area along with trained professional instructors and management teams so, it is not easy to establish a new ski arena that easily.
SOSTAC Analysis
SOSTAC is also one of the frequently used strategies when developing the framework for business models and their marketing strategies (FIDM, 2014). The term SOSTAC is an acronym that stands for:
Figure 4: SOSTAC Analysis
Situation Analysis
It determines at which stage we are right now. In terms of the Skiing Arena business model, the company is just at the beginning of establishing its business.
Objectives
The objectives of a business determine its ultimate goal (FIDM, 2014). The ultimate goal of Swiss Ski resorts is to be the leading and top-rated ski Arena in the area and also produce an international star through their training program.
Strategy
The strategy to achieve these goals involves providing the best facilities which include 12500 tons of snow throughout the year, a sledging facility for children and 3 small snowboarding slopes (Hanzer and Strasser, 2014). The accompanying resort will also try to give its best entertainment and food facilities to the customers.
Tactics
There will be proper lesson sessions for the beginners and there will also be coaching classes for deserving students as a part of public relations strategies (Hanzer and Strasser, 2014).
Actions
To implement these strategies well-trained coaching staff will be required apart from very detailed customer service. Furthermore, the selection of marketing strategies and budget should be carefully selected in the promotional mix (FIDM, 2014).
Control
To control and enhance the flow of customers the arena will be updated, reviewed and modified every calendar year to remain competitive in the market. The business model will be self-sustained and any further modifications will be carried out from the revenue generated through the Arena (Hanzer and Strasser, 2014).
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Marketing Channels in Swiss Ski Resort
Content marketing
This is used by the Swiss ski resort as a method of advertising its services. Swiss ski resort according to Cristobal-Fransi et al. (2017), has a website that uses content as a marketing source for the resort. This content is used to provide a view of the experience of the resort to the customers as well as the promotional upcoming events and offers. These channels provide the opportunity to improve the awareness of the resort services among the customers and provide a level of recognition. This also helps the resort develop a level of trust and loyalty amongst its customers by positioning the resort at the expert position in the industry and building a sense of authority among its competitors.
Social media marketing
The Swiss ski resort has been using this marketing channel for quite a while now like other businesses in the industry. The business uses the images of the resort as well as their customer’s feedback on social media platforms for promotional purposes. The platforms are also used for sharing the event details that the resort plans to attract customers. As well as this the resort also uses the platforms for providing customer support to the customers and answering their queries. This marketing strategy helps seasonal businesses such as ski resorts to increase the number of customers who visit their website by improving the ranking of the resort on search engines while saving the budget of the marketing as it is a cost-effective method that requires minimal financial efforts of the company.
Video marketing
Informational videos are considered an essential way of developing a relationship between the resort and its customer (Luque Martínez, Doña Toledo and Faraoni, 2019). It also portrays the company’s image as a customer caring organisation, the Swiss ski resort has been using this marketing for providing do’s and dont’s of the skiing process as well as sharing the environmental and sustainable aspects of the resort’s procedures. The resort also uses videos regarding upcoming events, discounts and offers to the customers. The videos used by the resort increased the number of visitors to its landing page as these videos arise the curiosity of the customers and enhance their enthusiasm towards the sports. The videos produced by the resort aids the decision-making process of the customers of the resort and also enhance the chances of the video being shared by the customers.
Email marketing
Customised emails according to Levesque and Boeck (2017) have been a significant method for making the customers feel that the company is dedicated to the customers on a personal level. The resort has been using email marketing for sending customised email to the customers sharing the promotional details of the details and the discount offers. As well as this the method is also being used for the introduction of the training and education programs for the customers interested in learning skiing. The marketing method of the resort helps the business reach customers globally and expand on new grounds. It is a measurable method of marketing that helps the resort form statistical information about the effectiveness of the marketing method that it uses.
Value-added through Marketing Channels
Swiss ski resort uses the marketing channels such as content, social media, email and video marketing to increase the number of customers they attract. According to Skarmeas, Zeriti and Baltas (2016), the use of marketing channels add value for the company and fills the gap that exists between the companies and its customers. The content marketing used by the resort has added value to its sales by increasing the number of customers who visit its website and to inspire them to associate with the resort and increasing their trust in the resort.
Social media marketing increases the preference of the customers towards the resort due to the resort’s use of the social media platforms such as Facebook for the time feedback to the customers and the provision of the customers’ experience regarding the resort. Video marketing increases customer loyalty to the resort due to the video content including the dos and don’ts of the skiing. Email marketing adds value to the resort's business as its increases the number of customers to the resort.
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Target Market
The target market of the company is mainly skiers and snowboarders. However, it also wants to target travel vloggers and social media influencers so they can also act as its free promotional sources (Polijic and Kosutic, 2018).
Communication Objectives
- To get a 2% rise in sales by promoting participation by advertising snow sports within the first 6 months
- To improve public relations by participation in the environmental and sustainability initiatives using public relations promotional strategy to achieve within 3 months.
- To ensure the safety of the customers by initiating training and education programs by using direct marketing techniques from the start of the marketing campaign
- To increase the customer participation in ski sports by 5% by using personal selling techniques in the first 2 months
Marketing channels serving communication Objective
According to Armstrong et al. (2018), the channels of marketing used by the organisations aims to attract customers to the business. Cristobal-Fransi et al. (2017) agreed and stated that these channels also has a significant purpose which is to meet the communicative objectives. These marketing channels are selected to develop the sense of interest amongst customers towards a brand’s products and service, persuading the customers that they need the service of the organisation (Hajli et al., 2017).
The Swiss ski resort has a website which it uses for its content marketing procedure and advertising the services of the resort. The website of the resort sharing content such as the do’s and don’ts informational video regarding the upcoming events and offers has helped the customer creates a 2% rise in the sales of the Ski resort due to the promotional participation of the new customers within the six months. The video marketing technique used by the resort helped the organisation develop relations with the customers on a collective level with the 3 months of the start of promotional activities. The organisation through sharing tutorial videos with the customers, the resort successfully developed a relationship with its customers. The email marketing technique has helped the resort develop interpersonal relations with the customers through sending the mails including the names of the customers and the training program customised for them according to the information provided by them to the resort. The resort uses social media as a method of interaction with the customers through using customised training sessions and raising customer participation by 5% in the first 2 months using customised personal training.
Budget
This report will carry out its marketing for the Swiss Ski Arena through social media, email marketing, branding, and video marketing. It will allocate a rough budget of 50 percent of the total gross revenue. It will assume that the yearly gross revenue of the Swiss Ski Arena is 100,000 which means at 50 percent of the marketing budget will be around 50,000. Swiss ski budget for the marketing campaign would be:
Strategic Communication Plan
The strategic communication plan of a company includes creating its marketing plan and allocating a specific budget for it (Camilleri, 2017). The company will carry out its communication plan in the following phases:
Promotional/Marketing Mix
Establishing the promotional/marketing mix of a company involves
In addition to this, the price of the products that will be the ski gadgets rented from the resort will be decided on the basis of the prices of the competing businesses. As it’s a service-based business the products through which the business will make sales would be the hotel rooms that it would rent out to people and the ski gadgets. The resort would target people who would be interested in skiing and other snow sports. Swiss ski resort would also provide different high-quality gadgets for the customers in house use. The promotional mix of the resort would consist of activities like:
Determining the target market
The target market of the company is mainly skiers and snowboarders. However, it also wants to target travel vloggers and social media influencers so they can also act as its free promotional sources (Polijic and Kosutic, 2018).
Determining the objectives
The main business objective of the company is to increase its revenue by encouraging the customers by delivering the message (Polijic and Kosutic, 2018).
Designing the Message
The promotional message for the brand is "Discover and explore your home in the snow" (Polijic and Kosutic, 2018). This promotional message will give the customers a sense of feeling of their own.
Selecting Promotional Channels
The promotional channels the company will be using for its brand include site marketing, content marketing, social media marketing, video marketing, and email marketing (Polijic and Kosutic, 2018).
Advertising
Advertisement can be carried out using different modes through which one can buy the time and space to promote a specific message (Camilleri, 2017). For instant feedback, the company will be conducting internet surveys along with online promotions. However, the company’s general modes of advertisement will be newspapers, magazines, social media, Local Radio, and Billboards. It will be able to amplify its credibility and brand value. It will also be able to achieve the revenue goals much earlier than anticipated (Johnson, 2018).
Personal Selling
Personal selling involves enhancing a brand through sales representatives (Jenkinson, 2007). Since the ski resort is an area-based business, so it will plan to further engage its customers in more activities at the site. These activities may include camping options, chair lifts, etc. It will help the company achieve a diverse character in its arena (Johnson, 2018).
Sales Promotion
Through sales promotions, one can give extra value to their customers and boost their revenue in the form of different competitions, coupons, special offers, samples, and premium facilities (Jenkinson, 2007). At the company’s ski arena, it plans to introduce special packages for its repeated and permanent customers while there will be a special discount for couples on rooms that accompany the ski arena. This will also motivate other customers and they may transform from potential customers to a permanent customers.
Public Relations
Positive relations with the general public and direct stakeholders can promote the image of the company and it is also a form of unpaid media advertisement. Improving public relations means creating a positive image in the media and influencers' eyes (Laurie and Mortimer, 2019). The company plans to improve its public relations by offering special skiing training and accessories to underprivileged kids who cannot afford them. Improving public relations is also a more credible way of an advertisement than paid advertisements (Demiroglu, 2018).
Direct marketing
Direct marketing involves an organisation's communication with its employees in a more personalised way (Laurie and Mortimer, 2019). The company plans to improve its relationship with the customers through direct telephoning, emailing and wishing them on their special occasions. This is a strategy to keep the customers happy and further cement the values and place in their hearts by affecting their emotional side.
Integrated marketing communication is a cost-effective, unified and multi-dimensional strategy that is the best way to utilize the marketing budget (Laurie and Mortimer, 2019). IMC focuses on brand identity for the creation of a singular message to focus on. Situational analysis is the backbone of any marketing plan (Laurie and Mortimer, 2019). There are many opportunities for Swiss Ski Arena to increase its target audience.
Justification for selected channels
Content marketing
Content marketing has proven to be an effective way of advertising. Ski resorts like the Swiss ski arena have been using content marketing for quite a while. The website presence of the Swiss ski arena makes it easier for the company to use the content as a marketing source for the company. By creating content suitable for attracting customers to snow sports the Swiss ski resort has been trying to raise sales.
Social media marketing
Using social media marketing creates a link between the customer and the business. Swiss ski resorts have a website that is used to advertise their business. Facebook and Twitter feeds are used by many businesses for marketing purposes and are a good way to link ski resorts with clients.
Video marketing
Creating videos motivating customers for snow sports and providing the dos and don’ts of the snow sporting helps create a positive image of the resort. This positive image is used as a way to attract new customers to the resort. The Swiss ski arena creates promotional videos regarding the activities and other features of the resort which helps attract clients. The strategies which are used for gaining customer loyalty and business like the low price rate and discount offers are also advertised using video marketing in Swiss ski resorts.
Email marketing
Making the customers remember the advantages of snow sports and letting them know about the new offers have proved to increase the ski resorts sale up to 20%. This technique has been used by the Swiss ski arena for improving sales due to being new in business, this has been a quality approach for the resort and also provided a foundation for gaining customers. The offers like promo codes and themed discount send to the customers through email marketing has built the image of the company as one which has value for money and has since been attracting customers.
Strategic Plan and Tactics for each Channel Selection
Site marketing could be done by paying the web advertisers for publishing the ads on social media web pages so it may access the large audience using the specific platform, for example, Twitter, Facebook, LinkedIn, etc. it can also be referred to as social media marketing. It could be given to the web advertisers as with the help of their expertise the content could reach out to a larger audience. Content marketing could be done to increase the interest by sharing blogs and articles that will promote the brand and stimulate the interest of people in ski products. The published content could be shared in newspapers and young adult magazines to target their readers. (Baltes, 2015)).
Video marketing could be done by making videos that encourage people to use the products and inform them about it and for this purpose a channel on YouTube could be made which will allow viewers to check out the services the Swiss ski arena has to offer. Potential customers could be reached out through emails and could be informed about the ski arena and leads could be gained through marketing agencies for potential customers.
Evaluation of Communication objectives in relation to the Promotional communications mix
Swiss ski resort uses the promotional communications mix which includes the newspapers, magazines, social media, Local Radio, and Billboards, engages the customers on on-site activities, provide discount offers to the skiers, the company provides training to the customers to increase the number of to the resort and send personalised emails to the customers to attract them to the resort. The advertising mediums such as newspapers, magazines, social media, Local Radio, and Billboards help the resort reach customer of all ages and increase its sales by increasing the number of customers inspire them to associate with the resort and increasing their trust in the resort.
Personal selling increases the preference of the customers towards the resort due to the resort’s use of sales representatives for interaction with customers. Sales promotion increases customer loyalty to the resort due to the provision of discount offers. Public relations by offering special skiing training and accessories to underprivileged kids portray the image of the resort as a sustainable environment that improves its relationship with the customers. The direct marketing of the resort help train and educate skiers and snowboarders for increasing the number of customers to the clients.
Implementation Mechanisms
The objective to increase participation can be achieved by letting more people know about it and it could be done by promoting using the proper channels like site marketing, and social media marketing. Relationships will be developed with the public and the media when the company starts reaching out to them through content and videos which inform them and motivate them to visit the ski arena (Jarboe, 2011).
Control Mechanisms
The website marketing and social media marketing needs to be controlled and managed by a specific marketing department as they will be tasked to control and form content that will be posted on the sites to reach out to customers. They will be assessed by the total views on the advertisement created and the reviews that the customers will leave behind (Law et al., 2011). The content creation team will be checking the published content that needs to be posted on sites and will be creating more to inform and encourage the potential audience. The quality of the content will be evaluated by the response of the viewers to the quality and the information of the created material (Alcala et al., 2019).
Evaluation Mechanisms
The main goal of the company is to achieve the market objectives and evaluate the strategic tactics through brand loyalty and consumer satisfaction. Some activities will be implemented to evaluate the overall performance of the company and services and evaluate whether the tactics and strategies are being effective. The evaluation mechanisms include the structuring and maintenance of data related to the services, market, pricing trends, and consumers (Ahmed and Brohi, 2016).
The promotion techniques would be evaluated through the relevant department of the Ski arena. It will be done in accordance with the objectives set for the company, as all objectives will be aimed to be achieved as soon as possible to make the ski resort more popular and successful. However, the online marketing strategy who would be would be analysed using google analytics whereas the success of the marketing campaign would be evaluated on the basis of the increase in sales after the door to door marketing.
Marketing communications plan
The Swiss ski resort has been working on increasing the number of customers in the highly seasonal and competitive industry. For this, the organisation has been using marketing channels such as video, content, social media and email marketing. These marketing channels have benefited the resort by adding values to the company such as customer loyalty, brand preference, the increase in sales and the expansion of business. The resort targets the skiers and snowboarders as the main focus when conducting promotional activities. The company aims to attain a 2% rise in sales by promoting participation by advertising snow sports within the first 6 months, improving the public relations by participation in the environmental and sustainability initiatives using public relations promotional strategy to achieve within 3 months, ensure the safety of the customers by initiating training and education programs by using direct marketing techniques from the start of the marketing campaign and to increase the customer participation in ski sports by 5% by using personal selling technique in first 2 months. For that, the resort uses the advertising channels such as newspapers, magazines, social media, Local Radio, and Billboards, engages the customers' on-site activities, provide discount offers to the skiers, the company provides training to the customers to increase the number of to the resort and send personalised emails to the customers to attract them to the resort.
Conclusion
To conclude the report, it can be clearly stated that the company has a lot of potentials and will become one of the leading companies in the industry. The company will be able to get benefit from the Skiing Arena due to its quality and standard. It can attract the audience by implementing its promotional mix which includes strategies to advertise using emails, videos, content, sites and social media. They will be managed by relevant departments who will be tasked to create content to encourage the potential audience to come to the Ski arena.
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