Marketing Fundamentals Coursework Guide

Marketing Fundamentals Coursework Guide
The following is intended as a reminder of how best to complete your coursework assignment which forms 100% of your summative assessment.  It should pre-empt many of the questions you may have about the assignment.
Top ten tips for success:
1.    Read and re-read the question to ensure you are providing a relevant and complete answer.  If you are unsure then seek clarification from your tutor.
2.    Remember to relate you answers to Asos.  Answers that are not linked to Asos (that could apply to any organisation) will not attract high marks
3.    Avoid regurgitation of pure theory  – apply it to Asos and ensure it is relevant to the task.
4.    Where relevant, use examples to support your ideas and recommendations and use the marketing terminology that you have been taught during the module.
5.    Check and double check your standard of English.  Documents that are professionally compiled, well structured and have good presentation and formatting will receive higher marks
6.    Incorrect, missing or incomplete use of models, tools and matrices will result in lower or no marks.
7.    Use the Harvard system to reference your work – poor referencing will result in lower marks and may result in your grade being withheld.
8.    Make clear recommendations where required and ensure you justify them appropriately.
9.    Remember to include a brief introduction to the report and include appendices where relevant, particularly for frameworks such as PESTEL and SWOT.
10.    Use the mark scheme to guide you as to the length and depth required in a task – the more marks available, the more you are expected to produce
Introduction to the plan
It’s important and professional to state the purpose of the plan and how it should be used but your introduction should be brief – one short paragraph is enough.
Remember formal reports such as this assessment should be written in the third person.
Question 1 – Marketing Audit
1.    Give a very brief introduction to the the tools you have selected, explaining why they are being used.
2.    It would be advisable to use more than one tool and remember you need to cover both the internal and external environment . Tools which may be useful include:
o    SWOT
o    PESTEL
o    Porter’s Five Forces
o    Porter’s Value Chain
o    The BCG matrix
3.    Remember to highlight factors that may or will impact upon Asos, not just generic factors that affect all businesses.
4.    Remember to analyse competitors (key competitors, what they’re doing, how well they’re doing it, anticipated strategies & tactics) and the market (relevant segments and customer groups; changes in demographics; trends)
5.    Use enough sources of information to inform the audit.  One or two sources is not credible or comprehensive enough to obtain a First.  Sources of information can include: competitor websites; published reports from research companies such as Mintel, Datamonitor, Euromonitor, etc.; Asos website; news articles; academic papers; expert blogs; books, etc.
6.    If you’ve carried out a proper, thorough analysis then you should have lots of information in your audit.  Some of your analysis will reveal important factors as well as less significant ones.  You should ensure you highlight the crucial factors that you believe would influence the development of marketing strategy.
Question 2 – Stakeholders
1.    It’s vital that the correct matrix is included in your report (Mendelow’s Power Interest Grid, referenced as such).  You should actually place the stakeholder/ stakeholder groups you identify on the matrix in the most logical quadrant.
2.    The placement of some stakeholders is debatable and there could be more than one correct position for them.  You simply need to choose and justify your choice by providing brief explanation of their placement.
3.    Your reasoning for stakeholder positions in the grid should be specific to Asos and NOT generic – meaning that they could just be applied to any organisation.
4.    You need to choose one stakeholder/ stakeholder group from each quandrant and explain the power they hold in relation to Asos. For example, what does it mean to be a ‘Key Player’ and what kind of influence might they hold over Asos?
Question 3 – Business Orientation
1.    You need to demonstrate that you understand the concept of ‘management orientation’ (product, production, sales etc) and clearly state what you believe Aldi’s orientation to be.
2.    You should offer evidence by way of an example, to support your opinion
3.    Following this you need to write something about the benefits to a business of a marketing orientation – you can find good explanations in the core text, lecture slides and on the web – you should reference this appropriately
4.    Next, you need to set some specific marketing objectives, related to the context of overseas growth for Asos.
5.    Remember when you set objectives they need to be SMART.  Each objective needs to have the SMART framework applied to it.
Question 4 – Marketing Mix
This question is where most of the marks are…40!!!…so you should make an effort to give a good answer to each of the 4 P’s.
In each case it is not enough to give a brief description of the current product range, pricing strategy etc.  To score high marks, you need to evaluate current strategy (contrast strengths and weaknesses) and you need to make and justify recommendations for improvements.
Be creative in your recommendations, but remember to keep them grounded in reality. Your recommendations should be framed in the context of overseas growth, and should contribute towards achieving the objectives you set in task three.
1.    Generic or vague recommendations with no justification will not attract high marks.  For example, just saying that “Asos needs to do more TV advertising to increase sales” or “Asos should sell more products”, will not gain high marks.
2.    Making recommendations which are not realistic or not linked to the objectives will result in lower marks.
3.    Remember the principles/concepts you’ve been taught in class and use them when evaluating current strategy and making recommendations (e.g. core product, actual product and augmented product; penetrations pricing, skimming etc).
4.    For promotion you need to consider the entire marketing communications mix – not just re-cap on what Asos already do.  This consideration should therefore include TV, print and digital advertising, social media, mobile apps, PR, partnerships, sponsorships, events, product placement, competitions, sales promotions and direct marketing etc.
Question 5
1.    You need to demonstrate that you understand the concept of Corporate Social Responsibility (CSR) and apply it in the context of Asos and overseas growth.
2.    When describing Asos’ approach to CSR, you need to pull-out two key factors which relate to CSR and will be important to Asos as they look to grow overseas sales. You then need to evaluate these two factors, contrasting pros and cons/ strengths and weaknesses and how they may help/hinder Asos.
3.    Asos’ own website as well as as resources on the online library are good sources of information about CSR and its importance to organisations.
Overall Presentation
1.    Remember the basics about spelling, grammar, punctuation and structure such as paragraphs
2.    Use headings, sub-headings and a numbering system for professional appearance and ease of reading
3.    Double check your language use and standard of English
4.    Ensure you use the Harvard system and reference all words and ideas which are not your own – if unsure, ask your tutor for help
5.    Remember and stick to the word count (2,000 words)
Asos Marketing Report [100% of Module Grade]
This module is assessed through the submission of a written marketing report aimed at addressing the key marketing challenges relating to Asos – the global online clothing retailer.  The specific requirements of the report will be aligned to several topics covered in this module. Students will produce a written report, fulfilling the criteria detailed below.
Assessment Details
a)    Writing your marketing report is an individual assignment.
b)    Coursework hand-out: Week 5.
c)    Coursework Due Date: Friday 19th December by 4:00pm.
d)    The word limit for this assignment is 2,000 words.  You must comply with the word count guidelines – any work which exceeds the 2,000 limit will not be marked.  The word limit does not include title page, contents page, references, bibliography, appendices or business matrices such as BCG, Ansoff’s, etc.
e)    This coursework assignment carries 100% weighting for your overall mark in the Marketing Fundamentals module.
f)    Submit your assignment by uploading your document via TURNITIN on the VLE.
Task
This assignment is based on the Asos case study (see below). Asos is a global online fashion retailer, selling own-brand and branded clothing in over 230 countries around the world. Based in the UK, the company has experienced massive growth since its launch in 2000 and now turns over almost £770 million. Targeting fashion conscious “twenty-something’s” Asos’ product portfolio and approach to customer service has seen it develop genuine competitive advantage, but it is very reliant on the UK and Europe for much of its revenue. To continue its rate of growth, Asos must look to other countries to continue its expansion.
As the Marketing Executive for Asos, you have been asked to write a marketing report that will determine the company’s approach to marketing for the next twelve months.  As part of developing your plan, you have been asked to specifically address the following areas in your plan:
1)    Audit of Asos’ internal and external environment (using appropriate tools and secondary information sources) LO2 and LO3 (15 marks)
2)    Audit of Asos’ stakeholders and their relative power (using an appropriate tool) LO4 (10 marks)
3)    Identify Asos’ management orientation, explain the importance of marketing orientation and set suitable marketing objectives which will drive overseas expansion – to be SMART and relevant to case study LO1 and LO2 (15 marks)
4)    Evaluate Asos’ current marketing mix (4 P’s), recommend and justify how this could be improved over the next twelve months to achieve the marketing objectives LO1, LO2, LO3, LO4 (40 marks)
5)    Describe Asos’ approach to corporate social responsibility and evaluate its importance to Asos as it expands its operations globally LO1, LO2, LO3 and LO4 (10 marks)
6)    Suitable presentation and written style (10 marks)
Guidance
The assignment will enable you to pick up on key topics from the syllabus, to explore the concepts and frameworks behind those topics, to apply them in a realistic situation and to present a marketing plan to address them.
It will test your skills in a number of ways, for instance:
1)    Your knowledge of the syllabus.
2)    Your ability to apply key concepts in a practical situation.
3)    Your understanding of the concepts behind a marketing plan.
4)    Your ability to write a practical marketing plan.
The case study below is provided as basic information.  The additional sources of information you might use for your assignment will most likely be of a “secondary” nature i.e. will be readily available from existing published sources such as the internet.  There is no requirement to carry out “primary” original research, such as speaking to someone associated with Asos.
Final written report
Your marketing report should be presented in a professional manner, using the correct (Harvard) referencing techniques and language that is appropriate for a professional business audience. There is no set format for writing your marketing report but you are expected to pay careful attention to your structure and layout to make the report clear and compelling to read, with an obvious and logical flow of content and information.  (Use of headings, sub-headings and numbering will be important).
Advice on plagiarism & collusion
Copying material i.e. plagiarism from any third party source is a serious academic offence and may result in your work not being accepted.  Plagiarism involves presenting work as though it was your own and/or using ideas of another author without acknowledging the fact.  Collusion takes place when two or more students submit work that is too similar – i.e. similar in words, content and style, such as might be put down to coincidence.  It is the student’s responsibility to make sure that they understand the guidelines in this area and that they don’t transgress those guidelines.  If in doubt, speak to your tutor.
Assessment criteria
Marking Scheme    Overall marks
1.    Audit of Asos’ internal and external environment:
a.    Ensure you use appropriate analytical tools and highlight the key issues facing Asos
b.    Use and properly reference a variety of secondary sources (examples include competitor websites, Marketing Week, published reports such as Mintel and resources available through the online library)
2.    Audit of Asos’ stakeholders and their relative power:
a.    Use an appropriate analytical tool to map the relative power/interest of Asos’ stakeholders
b.    Choosing one specific stakeholder or stakeholder group from each category, describe the power these stakeholders hold in relation to Asos
3.    Identify Asos’ management orientation, explain the importance of marketing orientation and set suitable marketing objectives which will enable overseas growth:
a.    Describe Asos’ management orientation
b.    Explain why marketing orientation is important for organisations
c.    Using the information in the case study, set suitable SMART marketing objectives, which will enable growth in overseas sales
4.    Evaluate Asos’ current marketing mix and recommend and justify how this could be improved over the next twelve months to achieve the marketing objectives:
a.    Evaluate Asos’ product range and make recommendations, appropriately justified, regarding Asos’ product strategy, to enable overseas growth
b.    Evaluate Asos’ pricing strategy and make recommendations, appropriately justified, regarding their pricing strategy, to enable overseas growth
c.    Evaluate Asos’ distribution strategy and make recommendations, appropriately justified, regarding this strategy, to enable overseas growth
d.    Evaluate Asos’ marketing communications (promotion) and make recommendations regarding the future marketing communications, appropriately justified, to enable overseas growth
5.    Describe Asos’ approach to corporate social responsibility and evaluate its importance to Asos as it expands its operations globally
a.    Describe how Asos demonstrate a commitment to CSR and evaluate why it is important as they attempt to expand overseas sales.
6. Presentation and Harvard referencing
b.    Clear structure and presentation of the report
c.    Writing style: professional and concise
d.    Correct application of Harvard referencing style
e.    Evidence of wider reading
10 marks
5 marks
5 marks
5 marks
5 marks
4 marks
6 marks
10 marks
10 marks
10 marks
10 marks
10 marks
10 marks
Total    100 marks
Asos.com
1. Introduction:
Asos is a global online clothing retailer, selling own brand and world-renowned fashion labels through its website asos.com. The business was founded in 1999 by Quentin Griffiths and Nick Roberts, who had the idea of starting a website to sell clothes and accessories which people had seen celebrities wearing. Originally trading as ‘As Seen on Screen’, the website launched in March 2000 and by the end of the first trading year, the business had won The Sunday Times’ ‘Best Trendsetter Award’. By 2002, As Seen on Screen had diversified its product portfolio to such an extent that their name was becoming less relevant – they were selling much more than just items celebrities wore. So from mid-2002, the company began to focus on the Asos brand name, slowly removing references to As Seen on Screen.
From their beginnings in 2000, the company has grown to become the second most visited fashion website in the world (asos.com), with a turnover in 2013 of almost £770 million. The company headquarters are in London but they have offices in the USA, Australia, France, Germany and China. Targeting young, ‘twenty-something’, shoppers, the company sells its products in over 234 countries, but it relies heavily on the UK and Europe for most of its trade (60.4% of total revenue in FY2013, source marketline.com). The clothing retail sector is hugely competitive, including both high street and online channels. Asos is competing with several other retail giants including the Arcadia Group, Next Plc., the N Brown Group and the River Island Clothing Co, as well as ‘pure-play’ online retailers such as Zappos.com and Amazon.
Asos has experienced huge growth since its initial launch, seeing revenue increase three-fold since 2010 alone. It recognises however that it operates in a hugely dynamic and competitive market and that it also relies heavily on the UK and European market for the majority of its revenue. The UK clothing retail sector has seen sluggish growth over recent years at a time when the global market for online shopping has seen rapid expansion. The US online retail sector is expected to increase in value by 85% by 2017, to a total value of $371 billion and significant growth is also predicted in China and other countries. Asos’ ambition is to be the “world’s number one fashion destination for twenty-something’s” and in order to achieve this, they recognise the need to increase their presence in global markets outside of the UK and Europe.
2. Targeting and positioning:
Asos is very clear in its targeting, focussing on ‘twenty-something’ shoppers. Its broad product portfolio, covering own-brand, through to recognised high street names, through to independent boutique designers, means it has broad appeal amongst consumers. Using a range of segmentation variables, Asos targets fashion conscious young people, who are technologically savvy, have high expectations around customer service and are heavily influenced by current fashion trends.
A challenge for Asos is ensuring that its approach to segmentation, targeting and positioning is effective in multiple regions around the world. Whilst they have a good understanding of their target market in the UK and Europe, a different approach may be required in markets such as China and Russia. Their main target demographic (twenty-something’s) are notoriously fickle and disloyal, heavily influenced by factors such as price, trends and their peers.
3. Marketing
Asos invest heavily in marketing, spending over £40 million in 2013. As an online retailer, they do focus much of their spend on digital mediums, but also advertise through more traditional channels such as national newspapers and magazines. Asos place significant emphasis on providing outstanding customer service, spanning the entire customer journey from initial website visit through to delivery and if necessary, return of the product. Asos recently began trialling a loyalty scheme to strengthen the relationship it has with its customers and investments in marketing activity over the last year have been credited with boosting sales by 34% over the first half of 2014 (Marketing Week). Asos’ success has been widely recognised by the awarding of numerous industry awards, including the ‘Best Retailer’ award at the 2014 Internet Retailing Awards.
4. Marketing mix:
4.1 Product:
Asos has a very wide product portfolio, stocking over 65,000 branded and own-label lines through their main website, with an additional 145,000 lines through their ‘Marketplace’ site, which allows individuals to trade old and unwanted clothing (marketline.com). The core product offering ensures they have wide appeal to their fashion conscious target market, but they also focus significantly on the wider augmented product as a means to create competitive advantage. Asos are recognised as a market leader in the area of online fulfilment, meaning delivery and returns processes. They place customer service at the heart of what they do, which provides a key differentiator for Asos when compared to competitors in the online retail sector.
4.2 Place:
As a ‘pure-play’ online retailer, Asos has no bricks and mortar stores, focussing purely on its website as a sales platform. As such, it invests significantly in its website, making it “more than just a shopping website” (asos.com). It has specific websites for its different global markets and all its sites are optimised for mobile and desktop platforms. Through both its website and its social media channels, customers are encouraged to interact (both with each other and the company) and engage, rather than simply shop. Their Marketplace site provides a different shopping experience, allowing individual users to connect, buy and sell with each other.
Asos’ distribution network spans the global and they have delivered items to over 234 countries worldwide. Their main distribution centre is in Barnsley, UK and from there they ship for free to destinations around the world. They are a market leader in online fulfilment, championing free delivery and returns and this distribution strategy provides them with significant competitive advantage as it is currently unmatched by the competition.
4.3 Pricing:
As an online retailer, Asos is able to offer cheaper prices than traditional high street stores and its wide product portfolio means they are able to offer products at a very wide range of price points. Asos have in the past relied quite heavily on discounting and price promotions but they also monitor competitors’ pricing carefully to ensure they remain competitive. As a global retailer, the ability to adapt to pricing challenges across geographical boundaries is important. Asos needs to be able to price products according to local market conditions, whilst also maintaining transparency and demand in their primary markets.
4.4 Promotion
With a very significant marketing budget, Asos make use of numerous marketing communications tools. They advertise widely, both online and offline, making use of traditional mediums such as national newspapers and magazines as well as a variety of online tools. In the digital space, they make significant use of social media, digital display advertising and their own website and have used viral campaigns very successfully in the past. Sales promotions form a significant area of Asos’ marketing, through both discounting and a loyalty scheme and they make very effective use of PR opportunities, particularly through third-party endorsements by famous fashion models and personalities. Unlike most high street retailers, traditional personal selling does not form part of Asos communications mix, but the company has been at the forefront of using social media and live chat online as a means to interact directly with their customers.
5. Competition
The clothing retail sector worldwide is hugely competitive and dynamic, comprising of both traditional high street and more recent ‘pure-play’ online providers. Whilst high street retailing has seen limited growth over recent years, online sales have surged, showing double-digit growth in all major developed economies. Asos is of course competing with many well known global brands, but unlike other sectors of the retail market, the clothing sector is not significantly dominated by any one brand. In the UK for example, the retailer with the largest market share (Next Plc.) has only 8.1% of the market, whilst Asos is estimated to hold around 2% (ibisworld.co.uk).
When compared to clothing retail giants such as Next Plc. and the Arcadia Group, Asos is very small, but its meteoric growth over recent years, in what has otherwise been a fairly stagnant market, suggests Asos has huge potential for further significant international growth. In the online space, retailers such as Zappos and Amazon present the largest competitive threat.
6. Corporate Social Responsibility
Asos places sustainability and social responsibility at the heart of its business operations. Referred to as ‘Fashion with Integrity’, its approach spans its production and supply chain, carbon footprint, impact on communities and the health of its customers. The garment production and retail sector has not traditionally had a reputation for ethical and sustainable business, focussing instead on minimising costs. Asos is keen to be seen to be different in this area, valuing principles of ethical and sustainable conduct over ‘lowest price possible’ production.
7. Conclusion
In just 15 years, Asos has gone from Internet start-up to global clothing retailer, with a turnover approaching £1 billion. Appealing to young, technologically savvy and fashion conscious customers and focussing on providing great service to those customers, has allowed Asos to create genuine competitive advantage in a very crowded market. It is recognised however, that currently there is an over-reliance on the UK and Europe for revenue. The global online clothing sector provides huge opportunities for growth and Asos must now focus their efforts on increasing its share of this global market.
END OF CASE STUDY
Student Marking Guidance
You are expected to use models and theories to support your argument and analysis. To pass you will need to demonstrate understanding and knowledge of the subject and evidence of some critical awareness. For a higher grade you will need to demonstrate a deep knowledge of the subject and critical argument and analysis.
Section    Question    Marks    Approach
1    1a
1b    10 marks
5 marks    For an excellent mark you should use two models appropriately, highlight a range of key issues and discuss possible positive and negative implications
For an excellent mark you should use four different, relevant sources and reference them correctly
2    2a
2b
5 marks
5 marks    For an excellent mark you should use an appropriate stakeholder analysis matrix and plot at least four different stakeholders/stakeholder groups logically, one in each quadrant and include a brief summary explanation for their position.
For an excellent mark you should take four distinct stakeholders/stakeholder groups and clearly and accurately describe the power they hold in their relationship with Asos.
3    3a
3b
3c
5 marks
4 marks
6 marks
For an excellent mark you should explain the concept of ‘orientation’, clearly state what you believe Asos’ orientation to be and use at least one relevant example to support your claim.
For an excellent mark you should define marketing orientation using appropriate theory, fully referenced and state at least two of the benefits of marketing orientation to an organization
For an excellent mark you should set two – three relevant, insightful objectives, based on the results of your earlier audit and related to global expansion, applying the SMART framework correctly to each objective
4    4a
4b
4c
4d
10 marks
10 marks
10 marks
10 marks    For an excellent mark you should evaluate the current product strategy, contrasting strengths and weaknesses, using an appropriate matrix. You should make at least two realistic recommendations for improvement to the product strategy, with the aim of contributing to successful overseas growth, and your recommendations should be appropriately justified.
For an excellent mark, you should evaluate the current pricing strategy, contrasting strengths and weaknesses.  You should give a clear point of view on a future strategy for pricing (even if that is to keep it the same) in the context of overseas growth, appropriately justified. You should consider price sensitivity or elasticity and explain the impact of new pricing recommendations on current and future target audiences.
For an excellent mark, you should evaluate the current distribution strategy, contrasting strengths and weaknesses.  You should make at least two realistic recommendations for improvement to the distribution strategy, with the aim of contributing to successful overseas growth and your recommendations should be appropriately justified.
For an excellent mark, you should evaluate Asos’ current marketing communications, contrasting strengths and weaknesses.  You should make at least two realistic recommendations for improvement to the marketing communications, with the aim of contributing to successful overseas growth and your recommendations should be appropriately justified.
5    5    10 marks    For an excellent mark, you should accurately describe Asos’ approach to CSR, highlight at least two key factors related to the importance of CSR in the context of overseas growth and evaluate these points, contrasting relative strengths and weaknesses.
6    Presentation, use of relevant structure and Harvard referencing    10 marks    For an excellent mark you should use Harvard referencing and clearly structure your paper, using report style – titles, subtitles and a reference page. The language used should be appropriate to the academic context and business communication but it should avoid colloquialisms, informal terms and jargon.
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Vision Business Institute- Starting a new business in the uk

Create a business plan for E-learning institute…………………..
 
Table of contents…………………………………………………………………….page
1.0 Introduction…….………………………………………………………….…….3
1.1 Objectives…………………………………………………………………….….3
1.2 Mission………………………………………………………………….…..…..4
2.0 Management structure and ownership………………………………………4
2.1 Company budget………………………………………………………………5
2.2 Company products…………………………………………………………….5
2.3 Technology……………………………………………………………………..5
3.0 Market analysis……………………………………………………………..….6
3.1 Analysis of UK legal system……………………………………………….…6
3.2 Analysis of UK taxation laws………………………..………….……..…..….9
3.3 Legal implications…………………………………………….……………….11
3.4 Business strategies……………………………………………..…..…………11
4.0 Financial plan……………………………………………….…………………11
5.0 conclusions……………………………………………………………………..12
6.0 References…………………………………………………………………….14
 
Introduction
This paper reviews laws and regulations regarding establishment of anew company in the UK, Vision Business Institute, (VBI). It will provide E- learning business trainings and consultancy services to individuals, corporate entities, financial institutions and government agencies in the UK  by exploiting technological advancement to global demands. The office will be located in East London and will consist of internet and infrastructures to be used by clients and the public.
Adequate funding has been provided for the infrastructure and technological development in the new location.  Trainings and consultancy services will be offered through online via the internet and company websites, telephone conferencing and seminars. The institute’s programs are aimed to benefit companies, individuals and government agencies seeking the e-learning services in business trainings. It will provide a more flexible and efficient e- learning environment to its clients which will be accessed from anywhere by mere PC connected to the internet.
 
1.1 Objectives
>The institute undertakes to offer quality trainings and consultancy services to the UK citizens, corporate bodies and government agencies through e-learning programs.
> The institute undertakes to comply with all legal requirements of the United Kingdom and protect the rights of consumers.
 
1.2 Mission statement
Vision business institute undertakes to be the leading provider of quality e-learning business trainings and consultancy services to its clients in the UK and other parts of the world using high quality technology and comply with relevant laws and regulations.
2.0 Ownership and management structure 
>Approximately 50% of the shares are owned by the institute founder,
>20% of the shares are owned by London School
>30% is owned by the public.
The company is will trade as VBI international in the London stock exchange. Public ownership helps to enhance accountability of the business. The company has plans to give some shares to its management as a way of motivating them. However 50% ownership by the founder is meant to give the founder controlling powers to influence decision making process toward achieving the original vision and mission of VBI.
 
The management structure 
This being a technology intensive business has adopted the flat management structure in line with the findings of Milana, (2010) which creates flexibility between the business and its employees, (Stubbs, 2006).
 
 
2.1 Company budget
             Significant expenditures will go to acquisition and marketing to help promote the business and make it successful. There are further plans to invest in sales and marketing in the next 12 months to help build the brand name to attain the sales and financial objectives of the institute. The huge capital expenditure is meant to help develop new technological systems for the institution and widen course products and services through internet and e-learning.
2.2 Company products
Vision business institute will offer a variety of internet based educational products for individuals and corporate firms. It will offer business trainings and consultancy services to corporations, government agencies and community organizations as well as distance learning and certification.
Institutes students can access courseware online via the pc connected to the internet. On completion of the course, the student will receive credit or certification.  It will also offer training through the media and classroom training, via diskette, CD-ROM and printed formats to the public and its customers. The success will depend on the use of high technology in online and internet infrastructure and continue to innovate and diversify its products  and services away from traditional form of class trainings, (Wan-Tzu et al, 2011).
2.3 Technology
Various key strategic technology partners have been identified and will be integrated to provide customers with excellent quality and efficient education, (Tonci & Pero, 2011).The institute will develop and install infrastructures such as hardware, software, content and technology which can be accessed 24/7 by the clients from anywhere with a pc and internet connection. Standard internet technologies such as Java and HTML have been incorporated into the content delivery system to facilitate smooth delivery of content to customers via the web browsers, (Orlikowski, 1992).
There is a high degree of interaction and collaboration among the peers, tutors and participants through the messaging software, chat rooms, e-mail and discussion boards. Comprehensive testing and assessment will be offered through the system by taking the form of multiple choice, multiple answer questions, tutor scored and commented exercises (Dirckinck, 2004). The institute’s strategy is to remain with flexibility to quickly adapt to the changing technologies and demands. The success of e-learning also depends on the perception as suggested by McVeigh, (2009).
3.0 Market analysis
The demand for business training has been on the rise in the global markets.The success of e-learning depends on four main factors:
a)      Preparation for e-learning
b)      Learning at work
c)      Learning at home
d)     Learner preferences, for instance conferences, print based learning materials, use of computer discs, telephone conference calls and online learning.
3.1 Analysis of UK legal system
Legal obligations and registration process
The company act 2006 of UK, the insolvency act of 1986, corporate governance code and European Union directives governs corporations formed and operating in the UK. According to this acts, company directors should abide by the powers invested upon them by the shareholders as stipulated in the memorandum and articles of associations.
Registration of Plc Company in the UK is handled by companies house. A plc company is required to have a minimum of two directors aged below seventy years or above sixteen years unless they are appointed or reappointed by the resolution of company general meeting. Director should not have been disqualified by a court of law from holding any office or declared bankrupt. The law also restricts the work of directors who are not citizens of UK which may exclude them from being directors. The law also stipulates the requirements for the appointments of company secretaries.
In terms of share capital, memorandum of association must clearly show the names of shareholders and their number of shares. The law sets minimum value of share capital allotment for a limited company at 50,000 British pounds of which 25% must be paid up before it can start business. in order to increase share capital, ordinary resolution must be passed or even extraordinary resolution if stated so in their articles of association. Companies may have different types of shares as it may wish, which are divided into five broad categories: redeemable, preference, ordinary, cumulative preference and bearer shares.
The formation may be done electronically through company formation agents. Necessary documents (memorandum of association, articles of association, form 1, and form 12) together with registration are sent to the registrar of companies. Annual returns should be delivered to companies house after every twelve months. The law provides for the conversion of private limited company to plc for companies with share capital by passing a special resolution. Likewise, the UK laws allows for conversion of plc to private limited company.
Consumer protection in the UK
The UK consumer laws aims to promote healthy competition and bans anti competitive agreements between firms, which may fix prices and unfairly influence the market.vbi company will engage in lawful agreements to avoid breaking theses laws and become a victim of anti-competitive practices. Heavy penalties are imposed to companies that infringe consumer laws, in form of fines, being disqualified from being a director and even jail terms.
In matters of advertising, the law requires that it should be clear and must use language that can be easily understood. Consumer protection from unfair trading regulations prohibits the use of false and misleading information to consumers. This will be adhered to by Vbi Company in all its advertisements. The BPRS act of 2008 sets out conditions for comparative advertising. a comparative advertising is one which explicitly or implicitly identifies a competitor or good and services provided by the competitor. They are allowed provided they do not mislead and meet conditions set out within the regulations, (OFT, n.d).
The laws protect consumers from unfair commercial practices. They give consumers confidence to shop in the UK. Our business will endeavor to treat consumers fairly by complying with stipulated laws and regulations in the CPRs. CPRs are all about how you act in relation to consumers. VBI will act with professional diligence and in accordance acceptable trading practice. All forms of prohibitive, misleading and aggressive practices such as withholding material information from consumers which may influence their decision making process will be avoided at al costs, (CPRs, n.d).
Business contracts with consumers will avoid the use of unfair terms to reduce complains. Online business laws in the UK requires that you give information in advance about the business, products, cancelling terms, prices and delivery arrangements. Seven day cooling –off period is required for which cancellation may be made. Finally, our business will sign the code of practice approved by OFT to enhance reputation in the UK market. This is a pledge to treat consumers fairly whenever they encounter problems, (OFT, n.d).
 
3.2 Analysis of UK business taxation laws
The provides that a new company must inform HM revenue & customs if the business is liable for corporate tax, pay any corporate tax that is due and file company tax return in time. Limited companies and some organizations are liable to corporate tax in the UK. VBI Company will strive to pay the correct amount of corporate tax. However, some business activities are exempted from this tax, they include profits generated from charities and related activities, agricultural exhibitions and health insurance. Businesses liable to this tax are subject to tax deadlines and requirements and file tax returns, (HM revenue & customs, n.d).
Central government is the only body mandated in the UK to levy corporate tax and companies with taxable profits of 15 million and above paying at highest tax rate in quarterly installments starting in the seventh month of their financial year. However, small and medium sized companies pay their corporate tax in one installment nine months after their accounting year.  Any income gained in the UK is subject to taxation irrespective of the citizenship and the place of residence or registration of the company.  UK has historically been known as country with relatively low tax rates by European standards.  According to ‘Corporate taxes’ (2010), VBI institute’s profit will be subjected to corporate tax in accordance with the UKs taxation policy.
There are also taxation on capital gains which applies to the companies and individuals. This applies to disposal of capital asset. In any given tax year, the firm will be required to aggregate all chargeable gains and losses and net gain is included in the company’s taxable income. However gains from disposal of substantial shareholdings are not treated as chargeable gains subject to some conditions. Stamp duty is charged on the transfer of shares and securities as well as real properties.
 3.3 Legal implications
The setting of VBI institute and its success will depend on its compliance with business laws and regulations. Registration of plc in the UK is much easier compared to many European nations which is the reason for choosing uk as the location of our business. The use of formation agents and electronic formation has reduced time wasting and bureaucracy associated with company registration.
Consumer protection laws and their enforcement will provide a competitive environment for the operation of our business in the UK. The business will comply will all laws and regulations which promotes fair competition and level playing field. In order to build reputation of the company, we intend to sign code of practice to assure as a commitment to offer fair services to our clients. Provision of accurate and relevant information to our customers will be done to enable them make informed choice of our products in the market.
Regarding taxation laws in the UK, VBI will abide by all taxation laws to promote its public image and enhance sound working relationships with government agencies and other stakeholders. Complying with legal requirements will help achieve the success of our business.
3.4 Business strategies
The objective is to be the leading provider of e-learning and e-training of business courses and management to corporations, government agencies and academiciansThe strategic elements to be used by the VBI are:
Streamline delivery: the institute will partner with other business firms and training institutions in the UK to help streamline content delivery and integrate technological platform with the clients. The company will outsource other services to cut down costs during initial years of business operation in the UK markets.
Boost and adapt courses menu: The institute will regularly update its curriculum to enhance quality of its products and services and this will be aided by research and development.
Develop customer loyalty: this will be achieved by using direct marketing and personal selling. The workers will visit selected clients in their locations which will help build strong relationships. Aggressive marketing will help build brand name, the institute will innovate products aligned with customers’ needs.
4.0 Financial plan
The institute, although is venturing in new business, it is basically an internet and e-learning venture which depends on financial forecast of internet and e-learning world. Additional capital will be required for the business venture to work successfully. The financial forecast predicts that the institute will turn profit within the first year of operations as shown the financial pro-forma summery below.
5.0 conclusions
The success of our business will depend on how well we shall implement business strategies stipulated in the plan. The legal requirements in the UK are favorable for the operation of e-learning business and the company is prepared to comply with all the legal requirements. Taxation laws are favorable compared to many other European countries and this is one of the reasons for choosing this new location. Advanced technological development in the UK will enable the VBI business to flourish and budgetary allocation is provided accordingly. The success of our business will benefit people and businesses seeking online trainings and consultancy in UK and other parts of the world.
6.0 REFERENCES
CPRs (n.d): consumer protection rights. Retrieved on 20.05.2012 from www.oft.gov.uk
‘Corporate taxes’ 2010, Country Commerce. United Kingdom, pp. 42-55, Business Source. Complete, EBSCOhost, viewed 11 April 2012.
Dirckinck-Holmfield, L, Sorensen, E. K, Ryberg, T. & Buus, L. (2004). A theoretical framework for designing online master communities of practice. In S. Banks, P. Goodyear, V. Hodgson.
Economic intelligence unit www.eiu.com (accessed on 11th April 2012)

HM revenue & customs, (n.d): Who is liable for Corporation Tax. Retrieved on 20.05.2012 from http://www.hmrc.gov.uk

 
McVeigh II. 2009. “Factors influencing the utilization e-learning in post registration nursing students. Nurse education today, 29, 1, 91-99
 
Milana, C 2010, ‘Widening the scope of entrepreneurial finance with flexible organization, e-working, and e-learning’, Strategic Change, 19, 5/6, pp. 275-279, Business Source Complete, EBSCOhost, viewed 12 April 2012.
 
OFT (n.d): A quick guide to competition and consumer protection laws that affect your business. retrieved on 20.05.2012 from http://www.oft.gov.uk
 
Onyeka K. Osuji. 2011. ‘Business-to-Consumer Harassment, Unfair Commercial Practices Directive and the UK—A Distorted Picture of Uniform Harmonization Retreived: 14 February 2011 Springer ScienceBusiness Media, LLC. 2011
Orlikowski, W. J. (1992). The duality of technology: rethinking the concept of technology in Organizations. Organization Science3, 398–427.
Stubbs, M.,Martin, I. & Endlar, L. (2006). The structuration of blended learning: putting holistic design principles into practice. British Journal of Educational Technology37, 163–175.
Tonci Mikac, and Pero Lucin. 2011 ‘Establishing an Institutional Framework for an E-learning Implementation’ – Experiences from the University of Rijeka, CroatiaJournal of Information Technology Education: Innovations in Practice. Volume 10, 2011
Wan-Tzu, W, & Neng-Tang Norman, H 2011, ‘The Effects of E-Learning System Service Quality and Users’ Acceptance on Organizational Learning’, International Journal Of Business & Information, 6, 2, pp. 205-225, Business Source Complete, EBSCOhost, viewed 12 April 2012.
 
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Village Roadshow/AOL Time Warner: Globalization of the theme park business

JUST ANSWER THE 2 QUESTIONS:
Refer to the attached Case Study – Village Roadshow/ AOL TimeWarner. In a brief (1-1.5 pages) essay provide answers to the following questions:
1. Based on which segmentation criteria should VR/AOL choose new markets for their future international expansion ? How should they position their offering on the new markets?
2. What are the internal and external factors that should affect VR/AOL choice of a market to enter?
please use GLOBAL MARKETING 6th ed by Svend Hollensen for reference
1
CASE
STUDY
II.5
Village Roadshow/AOL Time Warner:
Globalization of the theme park business
Based in Melbourne, Australia, Village
Roadshow is a leading international media
and entertainment company with its core
businesses in cinema, movie production,
film distribution, radio and theme parks.
Village Roadshow has now exported its
cinema development and management
expertise to 11 countries. Export of management
expertise in Radio and the group’s
movie production business means it now
has operations in 13 countries.
Village Roadshow’s assets include:
l An international cinema circuit of
around 1,139 screens in 134 separate
sites.
l A majority shareholding in Austereo Group Limited,
managing Australia’s leading radio networks –
Triple M and Today.
l A 50 per cent stakeholding in Warner Bros. Movie
World, Sea World and Wet ’n’ Wild Water World,
Australia’s most popular theme parks.
l A major movie production business based in Los
Angeles. In movie production, the company is one
of the most successful independent producers in
Hollywood with recent successes (e.g. ‘The Matrix
Reloaded’).
l A film distribution business with operations in
Australia, New Zealand, Singapore and Greece.
History
Village Roadshow commenced operating in 1954, owning
and managing one of the first drive-in cinemas in
Australia (Melbourne). From these modest beginnings
the company gradually expanded its drive-in
cinema circuit with the addition of more traditional
or ‘hardtop’ cinemas in major population centres. To
strengthen its position through business diversification
Village Roadshow entered the vertically related
businesses of film distribution in the 1960s and film
production in the 1970s.
In the 1980s Village Roadshow was a pioneer in
the development of state of the art multiplex cinema
complexes. The group’s developments raised cinema
exhibition standards to new levels by utilizing stadium
seating, the latest sound systems and advanced projection
technologies. These cinemas were the forerunners
of the high quality multiplexes that operate around the
world today.
In the 1990s Village Roadshow sought to further
strengthen its position by diversifying into entertainment
businesses. This included the purchase and
development of theme parks, which are at focus here.
Theme parks
With its three parks on Australia’s Gold Coast, Village
Roadshow is the country’s largest theme park operator.
Around 3 million people per annum visit the three
parks, Warner Bros. Movie World, Sea World and Wet
’n’ Wild Water World. The group is also a part owner
of Sea World Nara Resort, a 405-room hotel adjacent
to Sea World. A brief comment on each of the parks
follows:
Village Roadshow’s 50 per cent partner in the group’s
theme parks is AOL Time Warner. The combined business,
Village Roadshow and AOL Time Warner is here
abbreviated to VR/AOL.
Warner Bros. Movie World
Based on Warner Bros. successful movies and movie
characters, Warner Bros. Movie World is Australia’s
number one tourist attraction. Conveniently situated
just north of Australia’s Gold Coast, the park covers
over 100 hectares (252 acres), offering a full day of
entertainment for all. Warner Bros. Movie World
has consolidated its position as a worldwide leader
Source: www.movieworld.com.au. Reprinted by permission of Warner Village Theme Parks.
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Part II Deciding which markets to enter
in tourism and theme park marketing by winning
numerous state, national and international awards
in the past ten years, including its membership in the
coveted Australian Tourism Hall of Fame.
Employing approximately 800 staff, the park contains
a number of rides and attractions including behind
the scenes movie action, comedy stunts and animatronics
from Warner Bros. movies and cartoons and
an array of rides. Access to the attractions and rides
is available for a single entry fee. In addition, visitors
can take some of the magic home with them through
Warner Bros. souvenirs, vintage portraits, screen test
photos, video recordings, as well as photos of their
favourite movie stars and characters.
The Warner Roadshow Movie World Studios are
located next to the Warner Bros. Movie World theme
park. The Studios are purpose built – a one-stop shop
of studio and production facilities incorporating sound
stages, casting production offices, water tanks, editing
suites, wardrobe, make-up, construction workshops,
preview theatrette, visual effects studio, film processing,
post production, travel and freight services, and much
more.
Over the past ten years the studios have been home
to countless feature films, telemovies, TV series and
mini series.
For more information on the attractions of
Warner Bros. Movie World visit its website at
www.movieworld.com.au.
Sea World
Sea World originally opened in 1971 to showcase the
Water Ski Spectacular and has since grown to become
Australia’s premier marine park. For a single entry fee
visitors can experience all of the park’s attractions
covering 25 hectares (55 acres), a few minutes north of
Queensland’s Gold Coast.
Visitors to the park are able to participate in a range
of interactive activities including marine mammal
interactive programmes involving dolphins and seals, a
behind the scenes tour of Polar Bear Shores as well as a
range of watersports. Through Sea World Helicopters
the park also offers scenic helicopter flights around the
Gold Coast and hinterland.
Sea World Research and Rescue Foundation is an
independent, non-profit organization supported by Sea
World. The foundation has been responsible for countless
rescues of marine mammals, turtles and sea birds
throughout Australia and its expertise in the care of
these animals is sought worldwide. In addition to conducting
its own marine research, the Foundation also
funds a number of independent marine research projects.
Sea World employs over 600 staff and is a pioneer in
Gold Coast tourism. The first theme park in Australia
to be inducted into the Australian Tourism Hall of
Fame in 1992 and winner of Major Tourist Attraction
in the 2001 Queensland Tourism Awards, Sea World
has set the standards other Australian theme parks have
followed.
For more information about the attractions visit the
Sea World Website at www.seaworld.com.au.
Wet ’n’ Wild Water World
Located alongside Warner Bros. Movie World, Wet ’n’
Wild Water World is Australia’s premier water theme
park. The park comprises a wide range of water-based
fun, including Australia’s largest water slides, a giant
wave pool and a variety of leisure pools.
Wet ’n’ Wild Water World has been one of the
group’s most successful theme parks, with consistent
growth in attendances. The park relies to a large extent
on local visitors although the introduction of the
Three-Park Super Pass in conjunction with Warner
Bros. Movie World and Sea World has increased both
the awareness of the park and interstate attendances.
The park employs over 70 people with employee
numbers swelling to over 250 in peak periods. Wet ’n’
Wild Water World was judged Best Major Attraction
in the 2001 Brisbane Tourism Awards.
For more information visit the Wet ’n’ Wild Water
World Website at www.wetnwild.com.au.
Theme parks in international tourism
The theme park has several historical antecedents,
including the ride-based amusement parks of the early
twentieth-century United States and the garden parks
of Europe (e.g. the Tivoli in Copenhagen). The birth of
the modern theme park, however, is commonly recognized
as occurring with the opening of Disneyland
about 30 years ago.
Economics Research Associates (ERA) has completed
many assignments for the Walt Disney Company over
the years, and since Disneyland, theme parks have
multiplied throughout the world. And they all bear the
following primary characteristics:
l They have family appeal.
l They contain one or more themed environments.
l They have some form of ‘ambient entertainment’,
that is, strolling musicians, performers, costumed
characters and so on, who perform for ‘free’.
l They have a high investment level per unit of ride or
show capacity.
l They have high standards of service, maintenance
and cleanliness.
l They contain enough activities (entertainment
content) to create an average visitor length of stay of
typically five to seven hours.
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Case II.5 Village Roadshow/AOL Time Warner: Globalization of the theme park business
l They will usually, but not always, have a pay-oneprice
admission policy.
Recently there have been variations from the
formula. These include theme parks oriented around
one theme or towards one market, for example aquatic
parks and children’s parks. A second departure from
the traditional theme park is indoor theme parks
combined with retail shopping centres. The largest
examples of these are West Edmonton Mall in
Canada, Lotte World in Seoul and Mall of America
in Minneapolis.
State of the industry
The theme park industry has witnessed fairly rapid
international expansion in recent years, with growth
focused mostly in Europe and Japan. It is instructive to
compare industry development in the United States
with where other world markets stand.
The US industry has had about a 30-year growth to
maturity. This is characterized by an inception period
pioneered by Disney in the late 1950s and early 1960s,
rapid growth through the 1970s, and maturity in the
1980s. Europe and North Asia are currently in the rapid
growth phase of their theme park industries with the
developing countries in the inception period. While the
US experience cannot be directly translated to foreign
markets, we can be reasonably assured that Europe and
North Asia will continue to have fairly strong growth
over the next ten years or so, and it will be five years
or more before we see any significant growth in the
developing countries.
In the following the main theme park regions in
North America, Europe, North Asia and the developing
world will be discussed.
North America
The US theme park industry is by far the largest in
the world. There are approximately 40 large-scale
parks with annual attendance of over 1 million, and
approximately 55 moderate-scale parks with attendance
between 500,000 and 1 million. Annual attendance at
these attractions totals 159 million, with revenue of
$4.5 billion. The US industry dominates the world, in
scale, product innovation, marketing savvy, and operating
knowledge.
The United States has a mature industry. Growth has
been at a compounded annual rate of about 3 per cent
over the past ten years. About half of this growth has
come from the addition of new parks and not from
increased attendance in existing parks. Per capita
expenditure has slightly exceeded the rate of inflation,
reflecting admission price increases and strong growth
in merchandise sales and games revenue. When we
combine attendance growth with per capita expenditure
increases we see an annual revenue growth of
about 9 per cent over the past ten years.
The watchwords for the US industry are: (1) maturation,
(2) consolidation, (3) diversification and
(4) destination tourism.
1 Maturation
The majority of US markets capable of supporting
large-scale, outdoor theme parks already have them. It
is unlikely that a significant number of major regional
theme parks will be developed in the future. Growth in
this industry has stabilized, and there should not be
any huge fluctuations in attendance or development
activity. However, there are opportunities for adjusting
product to suit changing markets and to effectively
compete with other entertainment for consumers’
leisure time and expenditure.
2 Consolidation
Typical of a maturing industry, there have been numerous
changes in theme park ownership over the
last several years. This indicates a strong consolidation
trend. Much of the control of the industry is now
focused into a few multipark operating companies:
Disney, Time Warner/Six Flags, Paramount/KECO,
Anheuser Busch and MCA-Universal.
Three major corporations have left the industry
(Taft Broadcasting, Marriott Corporation and Harcourt
Brace Jovanovich (HBJ)). The Marriott Corporation
sold its two parks to divest itself of the industry. One
was in Santa Clara and is now owned by KECO, and the
other was in the Chicago area and is now owned by Six
Flags. HBJ, previous owners of the Sea World parks,
sold all its parks to Busch, which already owned two
parks. Busch’s theme park holdings now total seven,
with a planned attraction in Spain.
The seven Six Flags parks have been sold as a group
several times and are now owned by Time/Warner.
Four of the Six Flags parks were started by independent
operators.
Disney continues to increase its leadership in the
industry by building more attractions. Within the last
several years they have opened three: the Disney/
MGM Studio Tour, Typhoon Lagoon and Pleasure
Island. Disney has also announced plans for additional
attractions in Anaheim on property adjacent to
Disneyland.
3 Diversification
The US theme park industry is diversifying into new,
smaller-scale targeted products for ‘niche’ markets that
may not be covered by the large-scale theme parks.
ERA feels that this trend is being driven by market
opportunities such as those that drove expansion of the
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Part II Deciding which markets to enter
theme park industry several decades ago. The theme
park development boom in the 1970s represented a
massive, heavily capitalized response to the need to provide
baby boomers with family entertainment. Theme
parks fit into the urban fabric of the United States
by being located next to large, built-up metropolitan
markets, and on relatively inexpensive land.
The 1980s witnessed a narrowing of market and
product focus with the smaller investment waterparks.
This was the first major diversification of the industry.
Waterparks appealed to a narrower market, usually
teens and young families, and were suitable for smaller,
secondary markets.
The new entertainment attractions of the 1990s
represent a further diversification. These attractions
narrow the niche appeal even more, with smaller capital
investment, and an appeal usually to very specific
market groups such as children, teens, young singles,
etc. Many of these attractions tap the ‘baby boomlet’
sector, and respond to the need to regenerate underperforming
suburban real estate properties by locating
in shopping centres.
Examples of the new entertainment attractions
include the family entertainment centres being
developed in malls, the expansion of outdoor family
recreation and mini-golf attractions, entertainment
centres combined with urban mixed-use projects,
sports bars, themed restaurants, children’s attractions,
mini-aquariums, and a host of others.
Diversification should continue as entrepreneurs
attempt to seek out untapped entertainment markets.
4 Destination Tourism
Within the past ten years the only major parks
developed in the United States have been destination
market parks focusing on the tourist markets of the
sunbelt states of Florida and Texas. These attractions
have included Disney’s EPCOT Center, Disney’s MGM
Studio Theme Park, Universal Studios – Florida, and
Sea World Texas in San Antonio. One exception was
Marine World Africa USA, which was relocated from
one area of the San Francisco Bay region to another.
Additionally, the major planned attractions, Disney’s
new California attraction, Fiesta Texas in San Antonio,
and the possible Columbia Pictures attraction in
California, will all be destination in nature.
Theme park development in the United States has
changed from selling a seven-hour experience to a
seven-day experience. Disney, of course, is the pioneer
in this way of thinking. Developers have realized the
huge economic value created by the impact of a
tourism-oriented theme park on surrounding complementary
properties such as hotels, resorts and shopping
centres.
Europe
Europe has a number of parks spread throughout western
Europe, with a large concentration of attractions
in Germany, France, the Benelux countries and the
United Kingdom. Expansion of the industry into southern
Europe is now taking place, with several planned
or implemented projects in Spain, Italy, Turkey and
Greece. There are also a number of proposed projects in
North Africa and the Middle East.
Currently the European theme park industry consists
of 19 major attractions, with annual attendance
of over 1 million, and some 45 moderate-scale attractions
with attendance between 500,000 and 1 million.
Europe’s parks generate annual attendance of about
70 million, and revenue of around $1.5 billion. The
European industry is about one-third the size of the
US industry in terms of revenue.
The European market changed with the opening of
EuroDisney:
l EuroDisney (ED) will expand the overall European
theme park industry and focus the industry in
Paris by creating a multi park destination attraction
complex.
l Disney will educate the market as to the theme park
product, the quality of the theme park experience,
and the value of the pay-one-price admission for a
day of quality entertainment.
l Disney will provide price leadership in the market.
This will allow others to price up to Disney levels.
l EuroDisney will create marketing awareness through
its well-established and creative marketing programmes
and will also enlighten competitors as to
the use of effective marketing techniques.
l EuroDisney will improve management expertise in
the European theme park business. ED will train
and create a labour pool of experienced theme park
managers that will in the future help to enhance the
performance of the European theme park business
as a whole.
The key words for Europe are: (1) anticipation,
(2) repositioning, (3) expansion and (4) consolidation.
1 Anticipation
Wherever Disney theme parks enter new markets there
are significant structural changes to the indigenous
theme park industries. In the United States, Disney’s
first attraction, Disneyland, founded the industry. In
Florida Disney’s attraction converted an unknown swamp
into the United States’ premier tourist destination and
attraction market, and in Japan Tokyo Disneyland
spurred growth of the Japanese theme park industry. It
is believed Disney will have a significant impact on the
attractions’ industry in France and Europe.
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Case II.5 Village Roadshow/AOL Time Warner: Globalization of the theme park business
2 Repositioning
Many of the European parks have been expanding and
repositioning with a renewed emphasis on reinvestment
and marketing. Many have undertaken major
expansion programmes, increasing ride and show
capacity and expanding visitor services such as restaurants
and merchandise areas (areas where European
parks have traditionally lagged behind those in the
United States). Major expansion programmes have
occurred at, among others, Alton Towers in England,
De Efteling in Holland, Gardaland in Italy, Parc Asterix
in France, Walibi in Belgium.
Several European parks have repositioned themselves
in the marketplace. In the past the parks relied on
steady repeat business from the immediate resident
market. This market responded to the attraction’s low
admission prices, picnic areas and relatively passive
environments, which offered a quasi-public park experience.
Through recent reinvestment programmes parks
have repositioned themselves as more active and commercial
attractions with higher admission prices, thus
drawing from somewhat larger markets. EDL will create
the need for proper product positioning to complement
Disney in the market area.
3 Expansion
The European theme park industry has also been
marked by new development activity in recent years.
In the last four years new attraction development has
been focused primarily on France. EuroDisney opened
in 1992 but was preceded (perhaps unwisely) by four
other new attractions: Parc Asterix, The Smurf Park,
Mirapolis and Zygofolis.
Disney has yet to be well accepted by the French
market although it does quite well with tourists. The
other new French parks have struggled financially, due
to flaws in design, development and management. Two
(Mirapolis and Zygofolis) have gone bankrupt and
significantly damaged the enthusiasm of investors and
lenders. Busch is proceeding with its park in Tarragona,
Spain and several other new projects are proposed in
southern Europe.
Legoland is also expanding to several new key
markets, including United States, UK, Germany and
Japan.
4 Consolidation
A final trend in the European theme park business is
the consolidation of the industry into key ownership
groups. This occurs in industries as they mature and
has also been a trend in the United States. In Europe,
several attraction acquisitions have begun this process.
In 1990 Madame Tussauds purchased Alton Towers
(Madame Tussauds also owns several smaller attractions
on the continent and the Rock Circus attraction
in London). The Walibi organization purchased The
Smurf Park (now called Walibi Smurf), increasing its
theme park industry holdings to four parks. Finally,
Accor, France’s largest hotel operator, acquired a
controlling interest in Parc Asterix. With European
unification and the continuing maturation of the
European theme park industry this trend will continue.
It is too early to determine trends for eastern Europe
but a number of schemes have surfaced, including
theme parks oriented towards increasing tourism-based
foreign exchange. Because of the rapid changes in these
markets we may have to wait some time before we see
any significant development in the amusement and
theme park industry. However, we should keep our eye
on them.
North Asia
Asia is the world’s next leading international theme
park market. It includes a mature industry in Japan,
strong growth in Korea, strong performance in Hong
Kong, underserved markets in Taiwan, and a rapidly
changing China.
A substantial amusement park industry has been
established in Japan since the recovery from the
post-war period. A variety of themed attractions and
numerous amusement parks are located throughout
the country. The growth of this business has been
assisted by the presence of major amusement ride
manufacturers in Japan.
There are strong concentrations of amusement and
theme parks in the Kanto region around Tokyo and the
Kansai region near Osaka and Kobe. These are the two
main urban areas in Japan and they both have huge
population bases that support a variety of attractions.
A third concentration, now in the formative stages, is
on the southern island of Kyushu, which is developing
as a resort destination area and has several parks and
attractions, including Harmonyland.
Tokyo Disneyland, which opened in 1983, brought
the large-scale theme park product to Japan, and since
that time several large projects have been built, including
the $630 million Puroland in Tama, and Nippon
Space World in Kyushu. Several other large projects are
currently being planned or are under way.
The Japanese industry at present has about 29 large
parks with annual attendance over 1 million, and 30
moderate-scale parks with attendance between 500,000
persons and 1 million. As a whole, the Japanese industry
generates about 75 million attendees and about
$1.5 billion in annual revenue. This places the Japanese
industry at about 30 per cent of the US industry in
terms of revenue. On a revenue per capita basis, however,
they are reasonably close.
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Part II Deciding which markets to enter
The watchwords for Asia are: (1) selective growth
and (2) short-term retrenchment.
1 Growth
For the past five to seven years there has been strong
interest in theme park development in Japan and Korea.
Much of this was catalysed by the success of Tokyo
Disneyland. Other factors driving Japanese interest in
theme parks have been the high level of discretionary
income available for entertainment and a heightened
national interest in leisure. Also, the Japanese government,
until very recently, has provided strong incentives
for leisure development.
There are several large-scale theme park projects
under consideration at this time. These include a
second-gate attraction at Tokyo Disneyland, which may
be a movie studio park or the Disney Sea attraction
originally planned for Long Beach, California; a major
sea life park in the Awaji area near Osaka; a large-scale
theme park proposed for a landfill area in Kobe; MCA’s
Universal Studios Japan project; expansion of Yongin
Farmland in Korea; expansion of Ocean Park, Hong
Kong; several proposed projects in Taiwan; and a push
by China to encourage theme park investment. There
are also numerous other projects being discussed.
2 Retrenchment
In the past year or so there has been something of a
retrenchment of the theme park industry in Japan. In
the late 1980s major Japanese corporations entered the
industry with gusto. Unfortunately their efforts were
met in many cases with design, operating and financial
difficulties at some of the major projects. Several poorly
performing projects that have been financial drains on
the major corporations which developed them have
created an air of caution in Japan about the theme park
business. This, combined with economic ills being
faced in different segments of the country’s economy,
have slowed down the growth of the theme park industry
as the Japanese reassess what makes the industry
work, and what the model for Japan should be.
The developing world
Developing countries are concerned with many economic
and social development issues. Some see tourism
as a major force for economic improvement and look
to themed attractions as part of the tourism product.
There is also a growing resident market with the income
necessary to afford attractions.
It is instructive to look at the world’s population distribution.
Right now, 78 per cent of the world’s 5.4 billion
people, or 4.2 billion people, live in developing
countries. By the year 2010 82 per cent of the world’s
population will live in these countries. Even if 20 per
cent of these people are income qualified for a theme
park product, that is a market approaching 1 billion
people! And many of these economies, particularly in
Asia, are expanding and have rising income levels.
It will be some time before the developing countries
have major theme or amusement park industries, but
some countries should be seeing development activity
in the near future. Countries to keep an eye on are
Brazil, Mexico, India, Thailand, the Middle East, and
the south-east Asian growth triangle of Singapore,
Malaysia and Indonesia.
Theme parks and tourism
Let us turn now to the relationship of theme parks to
tourism. The relationship is complex and highly
dependent on the park’s scale, quality and uniqueness.
Typically residents (from within 1.5 to 2 hours travelling
distance) will account for 80 per cent of traditional
theme park visitation. Even the tourist visitors
are often in the area for other reasons (such as visiting
friends and relatives). Thus just having a theme park
does not automatically insure an influx of tourism.
Rather, to impact on destination tourism, a theme park
must meet the following criteria.
Be unique, a ‘must see’ destination
This can be accomplished through character development
(Mickey and his friends), architectural form,
natural features, special events and programming
(Opryland) or a combination thereof.
Have large-scale and a critical mass of attractions
Investment levels to impact on international tourism
generally must exceed $150 million. There should be a
combination of high technology with human scale and
quality service. Investments in the ‘thrill hardware’
must be combined with a high level of service from the
‘hosts and hostesses’ so that a unique local culture
and friendly human contact is balanced with the high
technology.
Encourage overnight stays
The principal economic benefits of tourism comes when
overnight stays are generated. Day visitors or tourists
who stay with friends and relatives generate only 20 per
cent of the economic impact of tourists staying in hotels
and motels ($50 versus $250 per day). Thus in designing
a theme park for tourism a multiple attraction destination
(with experiences that can occupy two or three
days) is more likely to have the desired impact.
Have complementary destination activities
Tourist-oriented theme parks should be part of a mix
of recreation and leisure activities. A true tourist
destination would also have supporting recreation uses
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Case II.5 Village Roadshow/AOL Time Warner: Globalization of the theme park business
such as high quality hotels, convention and conference
facilities, resorts, recreational shopping and dining
experiences, and sports activities including golf, tennis,
and water-related activities, and excursions into nearby
local tourism areas.
Support media (TV) coverage and exposure
As with many other things in life, future theme parks
must be designed for television. The use of theme parks
and resorts as backdrops for variety programmes,
celebrity games, sports competitions, and convention/
conference broadcasting is increasing rapidly and the
resultant TV exposure is very important in creating
awareness in tourism markets.
Given that these criteria are part of the theme park/
tourist destination programme, the results can be
dramatic and

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Marketing Management Report writing

Marketing Managemnt Report writing

Marketing Managemnt Report writing
Each student will work on a single case study that has been allotted to them. The questions are given at the end of the case study. Dates for individual coursework submissions will be provided by the programme administrator
Marketing strategy for growth
Introduction
Businesses must respond to change to remain competitive. Developing appropriate strategies which allow them to move forward is essential. Wilkinson is a prime example of a business that has responded to changing customer needs throughout its history. It is one of the UK’s long-established retailers of a wide range of food, home, office, garden and health and beauty products.
Growing the business
James Kemsey (JK) Wilkinson opened his first Wilkinson Store in Charnwood Street, Leicester in 1930. After the Second World War, the 1950s saw a rise in the use of labour-saving devices and DIY. Wilkinson responded by making this type of product the focus of its sales.
In the 1960s customers wanted more convenience shopping. Wilkinson started selling groceries and supermarket goods and created the Wilko brand. In the 1980s Wilkinson extended its range of low-cost products to include quality clothing, toys, toiletries and perfumes.
In 1995 it opened a central distribution centre in Worksop, serving stores in the north of England and in 2004, a new distribution centre opened in Wales. In 2005 Wilkinson launched its Internet shopping service, offering over 800,000 product lines for sale online. Wilkinson currently has over 300 stores, which carry an average of 25,000 product lines. 40% of these are Wilko ‘own-brand’ products. The company’s target is to see this element grow and to have over 500 stores by 2012.
Competition
Wilkinson’s growth places it in the top 30 retailers in the UK. Recently it has faced increasing challenges from competitors, such as the supermarket sector. Wilkinson needed to combat this and identify new areas for growth.
Over two years it conducted extensive market research. This has helped it create a marketing strategy designed to continue growing by targeting a new market segment – the student population. This case focuses on how Wilkinson created and implemented this strategy, using the findings of its market research to drive the strategy forward.
Marketing strategy
To grow, a business needs to give consumers what they want, at a price they are satisfied with, when they want it and make a profit for the company. Wilkinson commissioned market research which identified key potential for growth in the student sector. It had to develop a strategy for growth that not only covered the specific requirements of this target group, but also linked closely with the company’s overall aims and objectives.
The key elements that need to be in place for business planning are:
• aims – describe the overall goals of a business
• objectives – are steps which managers decide need to be taken in order to achieve the overall aims
• strategy – is a plan which outlines all the medium and long-term steps that need to be taken in order to achieve a given target
• tactics – are what the business does in the short-term – these respond to opportunities and threats identified when preparing the original strategy
Strategies may be to combat competition, to improve the position of the company in the market or to grow the business. The type of strategy required will depend upon several factors but the main influences include:
• number and power of competitors;
• company strengths;
• size of business;
• financial position;
• Government influences.
Ansoff’s matrix
Marketing strategy aims to communicate to customers the added-value of products and services. This considers the right mix of design, function, image or service to improve customer awareness of the business’ products and ultimately to encourage them to buy.
An important tool for helping develop an appropriate marketing strategy is Ansoff’s Matrix. This model looks at the options for developing a marketing strategy and helps to assess the levels of risk involved with each option.
Marketing strategies may focus on the development of products or markets. Doing more of what a business already does carries least risk; developing a completely new product for a new audience carries the highest risk both in terms of time and costs.
Based on its research, Wilkinson committed to a market development strategy to sell its products to a new audience of students. This is a medium risk strategy as it requires the business to find and develop new customers. It also carries costs of the marketing campaigns to reach this new group.
The main focus of the strategy was to increase awareness of the brand among students and encourage them to shop regularly at Wilkinson stores.
Market research
Market research is vital for collecting data on which to base the strategy. Market research takes one of two main forms primary research and secondary research.
• Primary research involves collecting data first hand. This can take many forms, the main ones being interview, questionnaires, panels and observation.
• Secondary research involves collecting data which already exists. This includes using information from reports, publications, internet research and company files.
Both methods have advantages and disadvantages. The advantages of primary research are that it is recent, relevant and designed specifically for the company’s intended strategy. The main disadvantage is that it is more expensive than secondary research and can be biased if not planned well.
Secondary research is relatively cheap, can be undertaken quickly and so enables decision-making sooner. However, secondary research can go out of date and may not be entirely relevant to the business’ needs.
Wilkinson undertook primary market research using questionnaires from students across the UK and secondary research using government and university admissions data. The statistics revealed that there were three million potential student customers. They had a combined annual spend of around £9 billion per year.
This research confirmed that the choice of focusing on the student market as a means of growth was valid. Wilkinson undertook further research to identify how to reach students and persuade them to start shopping at Wilkinson stores. This information was used to formulate a focus strategy. This was aimed specifically at the needs of the student market segment.
Marketing to students
Wilkinson involved 60 universities in research, using questionnaires distributed to students initially in Years 2 and 3 of a range of universities and then to ‘freshers’ (new students) through the University and Colleges Admission Service. This ensured the widest range of students was included to eliminate bias. It also gave a wide range of responses.
From this initial group, students were asked a second set of questions. Participants were rewarded with Amazon vouchers to encourage a good take-up. The research focused on two areas:
1. student awareness of the Wilkinson brand;
2. reasons why students were currently not using the stores regularly.
The market research enabled Wilkinson to put together its marketing strategy. The aim was to ensure the student population began shopping at Wilkinson stores early in their student experience. This would help to maintain their customer loyalty to Wilkinson throughout their student years and also to develop them as future customers after university. Repeat business is the key to sustained growth.
Promotional tactics
Wilkinson wanted to create satisfied customers with their needs met by the Wilkinson range of products. A marketing campaign was launched which focused on a range of promotional tactics, specifically designed to appeal to university students:
• Wilkinson attending freshers’ fairs and giving free goody bags with sample products directly to students;
• direct mail flyers to homes and student halls, prior to students arriving;
• advertisements with fun theme, e.g. showing frying pans as tennis racquets;
• web banners;
• offering discounts of 15% with first purchase using the online store;
• gift vouchers;
• free wall planners.
The challenge was to get students into Wilkinson stores. The opportunity was to capture a new customer group at an early stage and provide essential items all year round. This would lead to a committed customer group and secure repeat business.
Outcomes/evaluation
Wilkinson wanted to know what would inspire students to shop at Wilkinson more and what factors would help to attract non-customers. The research provided significant primary information to analyse the effects of the campaign.
Evaluation
Wilkinson used questionnaires collected from the first year undergraduates to gather qualitative data. In addition, Wilkinson obtained quantitative data from various other sources, including:
• redemption rates how many people used the discount vouchers when buying;
• sales analysis how much extra business did the stores handle;
• footfall in stores analysis how many extra people went into stores.
This information helped Wilkinson to develop its plans for future marketing campaigns.
It identified motivation factors for the student audience which would help to encourage future purchase. Key factors included products being cheaper than competitors and easy access to stores. The layout of the store was another major problem affecting repeat visits. 23% of students questioned gave ‘distance from university’ as a reason for not regularly visiting the store.
These findings have been taken on board by Wilkinson in its future planning of store locations and layouts.
Outcomes
Researching students’ opinions after the campaign showed that:
• Awareness of Wilkinson brand had significantly risen from 77% to 95% of those interviewed. This brought it in line with Morrison supermarkets, a key competitor.
• 17% of students who received a goody bag at freshers’ fairs used the 15% discount voucher. A further 58% intended to use the voucher. The campaign had either got students to enter the Wilkinson stores or increase their intention to visit the store.
• Of particular importance to Wilkinson was that the campaign had made the company more appealing to 67% of students interviewed. This fulfilled one of the main objectives of the campaign and was reinforced by figures from existing students. Prior to the campaign 13% shopped at Wilkinson at least once a month. After the campaign this had risen to 33%.
Interviews with fresher students after the campaign shows which marketing tactics Wilkinson used with the students had the greatest impact on their awareness.
Conclusion
Wilkinson marketing strategy began with its corporate aim to grow and increase stores across the UK. It was facing increased competition from supermarkets and needed to identify an area to focus on. To pursue a growth strategy, Wilkinson used market research to identify new target customers. This enabled it to prepare marketing strategies to fit the audience. Primary and secondary research was used to find out customer views regarding its brand. Data indicated the student market segment was a significant area to focus on to achieve market development.
A marketing campaign using data from a follow-up survey was put in place. The campaign showed significant increase in students’ levels of awareness about Wilkinson and its products. It encouraged them either to shop more or to try Wilkinson for the first time. The campaign helped to achieve many of the business’ aims, creating increased brand awareness and repeat visits. It also helped to inform the company’s future strategies for growth.
Market research gathered will help to formulate future plans for new stores in line with a commitment to providing communities with affordable products.
Questions
1. What marketing approaches might have been employed, apart from marketing research, for Wilkinson’s to use when examining its future growth strategy?
2. How might the company have applied the TOWS matrix when developing new marketing strategies?
3. Critically evaluate Wilkinson’s decision to base its future plans for new stores on the basis of its student survey.
4. Suggest and justify ways in which Wilkinson can ensure that it retains or improves its position in a fiercely competitive market place.

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