Tenpin Bowling Company’s Marketing Plan

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Introduction

Tenpin bowling is a universal and popular sport for all regardless the age bracket, size, speed, strength and health limitations. It is the major attraction in a family entertainment center which also offers other profit making non-bowling activities such as children play ground, karaoke, video games, restaurants, bars, sports bars, miniature golf among other entertainment attractions. Tenpin bowling is an industry on the surge due to a remarkable comeback of the sport and renewed interest from the young bowlers as well as the most recent attraction of entertainment bowling centers.

Situation Analysis

Tenpin bowling has been existent in Australia for over 50 years during which it has encountered very many trials and disappointments and also has had its highs and lows. There is without a doubt an urgent need for change in the practices and policies as they have failed to bring growth and prosperity in the sport.

Internal Environment

There is an estimated 3 million Australians that participate in tenpin bowling annually according to Sweeney (2007). There has been a significant increase in participation level of social tenpin bowling play with a strong involvement from the seniors for social purposes, the youth and the juniors especially in high school (Mazek 2007). There is however negativity towards the sport from a few who perceive that bowling is a sport stuck somewhere in the sixties (Gillian 2009).

There is the need for provision of a better product since most of the tenpin bowling centers are more than 25 years old but have been renovated to be competitive with the newer centers and in a bid to retain their existing customers.

External Environment

Customer Analysis

Tenpin bowling customers fall into three categories, these are: league bowlers, open bowlers and special event bowlers. The league bowlers are formally an organized group that signs a contract with a bowling center and bowls on a regular basis mostly on a specific schedule competing for prizes. Open bowlers do not belong to any league that is organized but they choose to bowl whenever they feel like doing so. It is said to be the second largest segment and second highest in profit margin. Finally, the special event bowlers are those who turn up to bowl only during special events which are a major attraction to new customers to the centers and provide substantial revenue for the centers. The fastest growing segment of tenpin bowlers comprise of the seniors and the youth. The senior segment is attracted by social and group programs while the youth is attracted by the aggressive promotion of birthday parties.

Market Analysis

The past ten years have seen a remarkable change in the tenpin bowling industry. The period has been characterized by the closure or conversion of older and smaller bowling centers which basically offered traditional bowling products. With the new strategies of opening up family entertainment centers, the closures have paved way for more and more opening of new tenpin bowling centers. The trend has therefore reversed and instead of closing the centers, they are being converted to entertainment centers.

SWOT Analysis

Strengths

One of the strengths of AMF tenpin bowling is that it continues to be profitable across generations with a strong cash flow and an above average level of return on investment. Tenpin bowling has also tapped into the renewed emphasis on traditional values and family activities through offering diverse entertainment options as well as broadening the focus on the consumer. Finally, tenpin bowling is a major recreational activity that can be marketed as a social and family activity, a competitive sport and a center based entertainment provider.

Weaknesses

The weakness facing tenpin bowling is the public perception that bowling that bowling is stuck somewhere in the sixties. The negative perception by the public should be changed for tenpin bowling to further grow in Australia.

Opportunities

There are many opportunities for tenpin bowling that are available through the press and electronic media as it can significantly enhance the profile of tenpin bowling to the larger Australian population. There also is an opportunity in creating awareness to schools and the tertiary education market through working with relevant education departments and interested State bodies and introduction of competition opportunities to the interschool and university markets so as to sensitize the market on the sport. There is an unprecedented opportunity that can be achieved through capitalization on attracting a wider section of the community to bowling centers as they update their range of services to cater to a broader market and also improve their aesthetic appeal to the community. Finally, there is the growing opportunity of tapping into the rapidly expanding market of retirees as they have resources in terms of time and disposable income.

Threats

The product faces a threat from the changing trends in the market situation where older centers which have had loyal customers but initially offered traditional bowling are converting into entertainment centers therefore bringing competition. They also pose a threat as they were more strategically placed having opened in the earlier years giving them an upper hand location wise.

Goals and Objectives

AMF aims at raising the profile of tenpin bowling in Australia through taking advantage of marketing and media opportunities. With the health issue in Australia generating a lot of debate, AMF can translate this into an opportunity for them by rolling out a plan for a recreational and bowling center which incorporates health facilities like a gym and a health spa. The center is to be more of a leisure center than a sport center where the whole family can hang out and bowl regardless of their age. Finally, the tenpin bowling center aims at incorporating the needs of the special needs persons like the disabled to enable them freely engage in the recreational activities as well as have access to all other essential amenities.

Target Market(s) and Segmentation

The proposed product is a recreational center that appeals to consumers across all age brackets and across every consumer category. This has been driven by the deteriorating participation in tenpin bowling in Australia. The target market comprises of all age groups as the appeal of bowling is as a fun activity that can be shared by family and friends.

Market segmentation comprises of geographic, demographic and psychographic segmentation. Geographic segmentation is on Australia as well as the international market as tenpin bowling is viewed as a tourist attraction. The age bracket targeted is across the board meaning it will be open to all age groups as it is to be a family leisure center. Psychographic segmentation includes all the people who love indoor games and have a sense of adventure.

Marketing Strategy

The marketing strategy for the product includes application of new technology as a means of attracting new customers and creates anticipation and excitement of participating in tenpin bowling (Strategic plan 2006). This includes conversion of the tenpin bowling center into an evening hang out joint with a disco to attract the young adults. The center will also offer a wide range of entertainment options including karaoke, sports bar, bar, health spa, disco among others. There is also the use of national marketing that is aimed at raising the awareness of tenpin bowling throughout Australia through national marketing programs and media coverage (The Foundation of Sports Marketing 2004).

Product

The product is a family entertainment center that features a broad range of activities of recreation with tenpin bowling as the core product. The aim is to get more people involved in recreational activities taking into consideration the health issues facing Australians including obesity and chronic diseases due to unhealthy lifestyles while at the same time incorporating fun and entertainment in the activities. The product will also cater for the special needs people for example the disabled enabling them to engage in all recreational activities including tenpin bowling. This also includes making the center as sensitive as possible to enable them to access all the areas freely without difficulties.

Place

The tenpin bowling centers will be placed in an active commercial area where it is readily accessible to most of the people considering the size, structure and layout especially since a large parking lot is one of the requirements.

Promotion

The most productive method of promotion includes placing advertisements on television and on print. One of the methods will be advertising on cable television which is a very effective method for bowling centers and one of the most overlooked methods. Another method is giving away free coupons for bowling games as means of attracting customers. The campaign will be divided into two parts the first being an awareness campaign to inform the public of the center and the sport using printed media mostly like magazines and posters. The second part involves the pre-opening phase which is more aggressive using both print and TV media to create excitement and anticipation.

Price

The pricing strategy will involve a quick survey of the prices charged by other bowling centers and offering better services and products at reasonable prices. There will also be discounts and free coupons for games and other amenities to reward the customers and motivate them to continue coming to the center. Another strategy will be offering subsidized rates for monthly and yearly subscriptions to the tenpin bowling center where the customer gets to save for subscribing on a monthly or yearly basis as compared to the daily charges incurred. The payment options supported will include ticket dispenser, cash payment at the central front desk, bill acceptors, coin control and debit card interface.

Budget

Item Date of Completion Cost
Construction cost 30thJune $ 90,000
Advertisement on Sports Magazine 1stJuly $ 450
Advertisement on Cable TV 1stSeptember $ 1,500
Equipment Cost 30thJuly $ 15,000
Operating cost
Total
1stSeptember $ 10,000
$ 116,950

Action Plan

Action Jan Feb Mar Apr May Jun Jul Aug Sep Who
Formulate plan and identify financing sources 1st AMF
Finalize plan and
apply for financing
1st AMF
Prepare management policy and advertising plans 1st AMF and advertising agency
Conclude financing commitment 1st AMF
Begin construction and
Select management staff
1st Bowlers Inc. and AMF
construction of interior, design logo 1st AMF
Install bowling equipment 2nd AMF
Advertising 1st 1st 1st 1st Advertising agency
Finish construction 1st Bowlers Inc.
Opening 1st AMF

The timeline is expected to be nine months after which the center should be fully operational.

Evaluation and Control Procedures

The evaluation procedure takes into consideration the revenue inflow and the capture of the target market as the measure of success. Greater success will be realized as revenue grows as well as a growth in the market base.

The control measure for the project includes incorporation of a mixture of tenpin bowling and mini bowling that caters for adults and young adults with the provision of VIP rooms, disco floors, music and cocktail bars among others which tend to lock out the younger generation.

Conclusion

Tenpin bowling is currently positioned to take advantage of the major opportunities that have presented themselves following a number of trends within the society as a whole in Australia.

It fits perfectly in the current renewed euphoria that lays emphasis on family activities with fun incorporated in it. This has been embraced positively by the customers after years of seeking refuge in their homes who can now venture out for recreation activities and entertainnment at reasonable prices, situated close to them and easily accessible fun filled experience.

References

Gillian Thompson Rogers (2009). Tenpin Bowling-Sport of a Lifetime. Web.

Michael Mazek (2007). High School Bowling. Web.

Strategic plan 2007-2011 (2006). Web.

Sport and recreation strategic plan (2002). Web.

Suzanne Suter (2003). South Australian Youth Recreation Strategy. Vol 1. Web.

Sweeney et al. (2007). Web.

The Foundation of Sports Marketing (2004). Web.

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