Transforming Sugar Bowl: A Marketing Essay.

Question one: What is the problem or the key issue related to the case study case and defining the marketing related problem statement

Sugar Bowl is one of the most popular business organizations, which has started to innovate its business after the closure of Westlake for providing better customers’ experiences and meeting the expectations of the customers as a whole. The transformation process will be managed by identifying the issue related to the case study at first, i.e., the issue of staffing and furthermore identify the strengths and opportunities of the organization to sustain in the competitive business environment with convenience. Researches will be done as well for the various market segments to develop a proper marketing strategy and ensure that the needs and preferences of customers in various market segments are met properly (Armstrong et al. 2015). The SMART objectives will be demonstrated here for assisting the company to focus on the achievement of marketing mix outcomes as well as ensure gaining sustainability and competitive advantage in business.

Question one: What is the problem or the key issue related to the case study case and defining the marketing related problem statement

Sugar Bowl is a popular and established bowling alley where people can enjoy the sport of bowling and ten pin bowling. There are long wooden lanes prepared for managing the movement of balls and hit the right area for distorting the things that have been targeted at. Sugar Bowl is a modern bowling alley that holds automatic and mechanical pinsetters and can structure the pins within quick time to which the balls will be thrown at. This bowling alley has become one of the most predominant business for the middle class family and have been prominent in the urbanized areas all over the world (Baker 2014). One of the major issues faced was the staffing crisis, which meant lack of workers within the organization and increase in the level of turnover of employees.

According to the financial reports, the company has earned huge amounts of profit, still due to the various social and environmental factors; there has been decline in sales and emergence of marketing related issues in business. One such issue could be the decrease in popularity of the weekly league bowling teams and even the bowling individuals have grown older. The costs of managing health and safety and management of utilities have gone higher and this has resulted in generating marginal revenue from the limited food and drink menu at Westlake. Though bowling often works as a good game that can be enjoyed by many, still there are various other forms of entertainment that have given stiff competition to the bowling game (Berthon et al. 2012). The time for families has decreased and due to the over scheduling of time, kids also cannot spend enough time to play bowling game at Sugar Bowl, US. From the case study, it could be understood that after the opening of the bowling lounge, though enough profits have been generated, still Shelby Givens, the present owner of Sugar Bowl has sacrificed a lot. She had not been getting enough time to relax and enjoy with their friends and families and even faced issues to concentrate on what was needed to be achieved in her personal life (Best 2012).

Question two: Analysis of the environment by using an active SWOT matrix to determine the strengths and weaknesses of Sugar Bowl 500

The organization needed further renovation, which was made possible by Givens through assessment and prediction of the projected costs of company startup and incidentals. The forecasting techniques showed that $600000 would be needed and she managed to raise $200000 from her families and friends and remaining $400000 as loan from the SBA bank. The loans were taken considering the term of 5 years and an interest rate of 8 percent. There were various symptoms regarding the resolving of marketing related problem of staffing crisis like the loan where the home of Givens was provided, i.e., a condominium in Raleigh as loan collateral. Based on the needs and objectives that are needed to be accomplished, it could be understood that the entire management of business renovation would take a time of 9 months to one year (Blakeman 2014). To reduce the staffing crisis and even enable the bowling game to survive in the competitive family entertainment, the employees of Westlake, which was soon to be closed would be appointed as workers of Sugar Bowl. This would increase the working hours and deliver higher quality services, furthermore attracting more clients and increasing the sales revenue as well. With the renovation, the organization would be transformed into a bowling lounge along with the availability of other facilities like full time food and bar facilities (Christopher, Payne and Ballantyne 2013).

Question two: Analysis of the environment by using an active SWOT matrix to determine the strengths and weaknesses of Sugar Bowl 500

The marketing environment is analysed for Sugar Bowl to determine the marketing opportunities and streng5ths and even the threats and weaknesses that are faced by the company. The SWOT analysis would not only help in making assessment of the strengths and weaknesses, but could also allow for assessment of negatives and ensure that the threats could be overcome as soon as possible with ease and efficiency. By using the SWOT matrix, the responses of individuals who have been part of the bowling game will be understood and this will enhance the potential of Sugar Bowl to understand the scopes for business growth and development too (Ferrell and Hartline 2012).

 

The SWOT analysis determines the strengths, weaknesses, opportunities and threats of the organization Super Bowl in United States. From the SWOT analysis tool, it could be understood that the strengths of the organization include use of advanced technologies that had upgraded the existing technological equipments and machineries. The human resources are managed properly along with the advantage regarding size has further helped in overcoming the staffing issues that were faced earlier (Fifield 2012). To manage production and delivery of liquor and other alcoholic beverage items, the licensing and country permit have been done properly as well. The entrepreneurial leadership skills of Givens and proper budget control have also controlled the costs and streamlined operations with ease and efficiency. The buildings and machineries are managed properly along with the management of sales and marketing techniques, which resulted in improving the efficiency of the organization and even made the organizational functional within a couple of months only (Gilligan and Hird 2012). The new improvements and transformation processes would bring more hours of relaxation and enjoyment for the customers, attract more customers and deliver high quality services that could fulfill the demands and preferences of the customers quite easily.

The major weaknesses of the company include the most important issue of staffing crisis and the quality if food items that are provided alongside the alcoholic beverages are not up to the mark. The company also suffers from the issue of high employee turnover rate. There have been high debt burden and inefficiency of work as well that has not only resulted in deteriorating the business organization but also has made many customers unsatisfied (Hollensen 2015). The popularity of weekly league bowling teams decreased, because of the ageing population, which created issues for the bowling business to attract sufficient amounts of customers. The costs for managing health care and utilities of the organization have increased as well, which is another weakness of the organization (Huang and Sarigöllü 2014).

There are various scopes and opportunities for business expansion and this has enabled Givens to develop a lively and plush bowling arena along with better food and bar facilities too. There are better scopes and opportunities with plans of improving the existing 16000 square feet interior and restructure the entire area so that people can both enjoy the bowling game as well as enjoy a casual dining experience and socialize with people. The loan amount taken from banks and an additional $100000 would further help in managing the startup costs and incidentals efficiently. The new markets emerged consist of customers who have been provided with new offerings other than the accessibility to the bowling game (Kumar et al. 2013). This would also enhance the scopes for the shareholders to make investments and improve the organizational efficiency. The previous organization on which Givens was working for was closed and she preferred to focus on Sugar Bowl by managing availability of full bar, table services and tapas style menu of small plates and contemporary finger foods that go well with the alcoholic beverages (Leonidou, Katsikeas and Morgan 2013).

The major threats included the competition by rivalries in the bowling arena sector by organizations such as High Rollers and other organizations. The needs and preferences of the clients change from time to time and not understanding their expectations can lead to decrease in sales revenue too. The costs and revenue structures are volatile and the high turnover of staffs are also considered as other threats faced by Sugar Bowl (Mihart 2012).

Question three: Defining the major segments and conducting researches for assisting in the development of an effective marketing strategy

There are mainly four major customer segments being identified for the bowling organization such as Sugar Bowl (Wedel and Kamakura 2012). One of the key market segments is the bowling leaguers. This segment consists of the professional bowling enthusiasts who participate in different bowling leagues in various locations. Thus, it will be huge marketing opportunity for the sugar bowl due to the reason that, they can position their bowling arena as one of the probable venue for the bowling leagues (Ruihley and Greenwell 2012). Secondary research will be more effective to conduct on this market segment compared to the primary research. Moreover, qualitative research will also be helpful. This is due to the reason that, primary data will be difficult to collect from these types of professional and thus gathering of secondary data will be more effective and viable. On the other hand, qualitative research will be more beneficial due to the reason that, in the case of the professional bowlers, individual criterions will be valued more compared than the mass-market trend. Thus, it is important to identify the distinctive criterions of them, which is only possible with the help of qualitative research.

Bowling is being considered as recreational and entertainment activities and thus, it will have more market opportunities among the young customers. However, in this case, primary and quantitative research will be more beneficial for sugar bowl (Pierce and Sawyer 2013). This is due to the fact that, it is important for the organization to determine the requirement or trend of the overall young customer segment along with identifying the amount and growth rate of the market. Thus, primary research will help to identify the trend of the target market along with garnering the authentic feedback. On the other hand, initiation of the quantitative research techniques will be beneficial due to the reason that, it will help to identify the numbers and numerical in determining the trend and size of the market (Miles 2013).

The market segment of senior citizen is mainly consisting of population above the age of sixty years. This market segment will majorly be the continuation of the existing customers rather than induction of the new customers at this age. Thus, the research should also be done and designed in view of the loyal customers from many years (Katsifou, Seifert and Tancrez 2014). In this case, both qualitative and quantitative research will be beneficial for sugar bowl. This is due to the reason that, it is important for them to determine the positive or negative trend in the growth of this target market. Initiation of the quantitative research will be helpful in this case. On the other hand, it is also important for the organization to determine the change in the taste and preference pattern of the customers in the long run. Thus, initiation of the qualitative research will be beneficial and effective in determining the preference pattern of the customers (Morgan, Katsikeas and Vorhies 2012).  

Question four: Outlining the SMART objectives for the organization and explaining your proposed marketing mix strategy for the organization

 

Marketing mix strategy is used to overcome the issues by making an assessment of the products and services delivered, price of those, place where the organization is found and the marketing and promotional activities managed by the organization.

The most important product or service offered by Sugar Bowl is the general bowling service and additional prizes and rewards offered for hitting more than 8 pins at a time. Sugar Bowl has also introduced the new bowling league experience for the young adults so that they can enjoy a relaxing and fun time and have good quality food at the same time. The companies has also sponsored local leagues and even fund other league teams to compete (Mullins, Walker and Boyd 2012). Not only alcoholic beverages are offered but also good quality foods like pizza, hamburgers, juices, eggplant parmesan, etc. so that the customers can enjoy bowling and snacking. Drinks include beer and wine and other seasonal food specialties are offered during various seasons. With the effective liquor license and country permit, beer and a wide range of alcoholic beverages are also offered to run a full service bar and restaurant facility alongside the bowling arena. To increase the product line, Shelby Givens is also planning for making the entire bowling area available for various events, birthday parties and special occasions. On a particular day of every month, a live band performance with the inclusion of DJ is managed with a theme night for attracting the local teenagers and enhance the brand image and identity among the customers effectively (Parente and Strausbaugh-Hutchinson 2014). Group rates and special events for the community organizations and business organizations are also arranged and have been regarded as major services provided by Sugar Bowl.

The prices of the products and services delivered by Sugar Bowl have been displayed on a list present at the entry to the bowling arena. Customers could also look out for the prices of products and services by searching relevant data and information related to the company, menu of food items and drinks available on the internet. The prices are mostly fixed though seasonal offers are provided. Discount coupons are provided on additional purchases of food and alcoholic beverages as well. Prices have been set in such a manner, so that it fulfills the expectations of the customers. The rental cost of the lane is $40 per hour with $10 per hour for each person. It is quite cost effective and will definitely create a positive mindset among the customers, thereby influence their buying behaviors too (Perreault Jr, Cannon and McCarthy 2013).

The location of the organization is Raleigh’s Greenway Trail in the country United States and it is a good place for the customers to enjoy bowling. With the closure of Westlake, the company has been expanded, which has helped in creating a better and improved bowling lounge area along with accessibility to bar and restaurant facilities as a whole. The lack of competition in the area has provided enough scopes for the organization to sustain in the business environment and attract more customers from time to time with convenience and ease. The location is suitable, because the weather is good here and with the business expansion, people have been visiting this place to enjoy their bowling game and have good quality food and drinks (Wood 2014).

The promotional activities are managed to mainly attract the young adults and older graduate students who need some time to relax and enjoy freely by playing the bowling game. The online techniques including use of advertisements and emails online have helped in generating brand awareness. The involvement of social media has also enhanced the brand name and identity and delivered better value and ability to track the online traffic. During the Grand opening, the company has managed to introduce a Public relations stunt for grab the attention of customers and even providing th9em with free Sugar Bowl T-Shirt when they make a strike by hitting the pins at once (Armstrong et al. 2015). The online web site management and featuring of the organization on television, newspapers and radios have further boosted the brand awareness and created interest among the customers to make purchases consistently.

Question five: Discuss the various implications based on the implementation of the proposed strategy

The marketing strategy can only be successful for Sugar Bowl depending upon the brand image and reputation along with the quality of bowling faculties and other entertainment activities such as food, drink and music. Sugar Bowl is a new company and its marketing strategies have been exceptional. During its opening only, the company has managed to create a publicity stunt related for managing public relations and for each successful strike taken by the customers, they have been rewarded with a free T-Shirt as well. This is an effective marketing strategy for developing long term reputation and good brand image and keep the customers satisfied as well. The company has also maintained a proper database where all the individuals in the blowing leagues are present (Baker 2014). The database is maintained daily and further additions of inquiries, bowling league newsletters and participants will be done. The database will be used for managing regular contacts and prepare research reports based on the various market segments. The company has also expected to recruit a major league of bowlers from the local and professional bowling associations to influence more people to take part in the bowling game and this facilitated the enhancement in customer base as well (Best 2012).

Sugar Bowl considers the penetration pricing strategy as effective by setting lower prices for the products and services offered at first and then increase the prices afterwards. This is an easy way to attract customers and even stay ahead of the competitors. The customers get influenced and visit the company and with the good quality of services delivered, they will like to visit the company gain, which can be a turning point for Sugar Bowl to achieve success in business (Blakeman 2014).

Conclusion

The topic focused on the most important concepts of marketing strategy and plan considering the case study of Sugar Bowl, which had been introduced recently. The major issue faced was the staffing crisis based on which the analysis of environment was done with the use of SWOT analysis tool. The most important segments on which the research was done had been bowling leaguers, young adults and older individuals. The SMART objectives were prepared and according to that the marketing mix strategy helped in understanding the marketing strategies developed to gain profit and competitive advantage in business for Sugar Bowl.

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